Summary of Earnings Results Briefing
for Q2 FY2021

Date	Thursday, November 4, 2021 4:00 pm – 5:20 pm
Speakers	SoftBank Corp. Junichi Miyakawa (President & CEO) Kazuhiko Fujihara (Board Director, Executive Vice President & CFO)

Summary

At the earnings results briefing, Mr. Junichi Miyakawa, President & CEO of SoftBank Corp., discussed consolidated results for Q2 FY2021.

Revenue for Q1-Q2 FY2021 was ¥2,724.2 billion, up 12% year on year. Revenue increased in all segments.
Operating income was ¥570.8 billion, down 3% year on year. Consumer segment income decreased by 10% due to the impact of mobile service price reduction, while there were steady increases in income in the Enterprise segment and Yahoo! JAPAN/LINE segment.
Net income attributable to owners of SoftBank Corp. was ¥307.3 billion, down 2% year on year.
The progress rates for Q1-Q2 on the full-year earnings forecasts were in line with the expectation, with revenue at 50%, operating income 59%, and net income attributable to owners of SoftBank Corp. 61%. Record-high profits are expected on a full-year basis, as initially planned.

Revenue increased by 6% year on year, and segment income decreased by 10%.
Profits were impacted by factors such as a decrease due to mobile service price reduction, despite an increase in revenue due to a recovery in mobile device sales.
Cumulative smartphone subscribers increased by 6% from the end of the same period last fiscal year.
The cumulative number of 5G plan subscribers surpassed 10 million as a total for all brands.

Revenue increased by 5% and segment income increased by 15% year on year.
Mobile revenue rose 6% and Business solution and others revenue increased by 10% year on year, indicating a continued steady growth.
Recurring revenue, which accounts for more than 70% of Business solution and others revenue, increased by 21% year on year.

Revenue increased by 35% year on year, and segment income increased by 18%.
Media business performed well, in addition to increased revenue due to the business integration of Z Holdings Corporation and LINE Corporation in March 2021.
EC merchandise transaction value increased by 10% year on year.

Cumulative registered users exceeded 43 million as of November 1. The number of payments for the first half year exceeded 1.66 billion.
Gross merchandise value (GMV) for Q1-Q2 was ¥2.4 trillion, up 68% year on year.
From October 2021, PayPay started to charge small and medium-sized merchants the payment system fee. The fee rate of 1.60%-1.98% is set at the lowest level in the cashless payment industry in Japan.
The charging of payment system fee has an immaterial impact on business performance. For merchants that cancelled their PayPay due to the start of charging payment system fees, their GMV totaled around ¥0.4 billion per month^*1, compared with monthly GMV of around ¥400 billion^*2. The share of merchants that cancelled their service remained at only around 0.1% of the whole.
Monthly charge-based merchant services that support the digital transformation (DX) of business establishments have been steadily launched.

An investment of US$ $222.5 million was made in U.S. company Treasure Data, Inc., which holds a share of more than 90% of the Customer Data Platform (CDP) market in Japan. Collaboration will be fostered between Treasure Data, which has excellent products, and the SoftBank Corp. Group, which has some of Japan's largest BtoC platforms such as Yahoo! JAPAN and LINE. Through this collaboration, we aim to expand CDP business in Asia Pacific market, which offers prospects for high growth.
We entered into a product partnership agreement with Axiata Group Berhad, one of the largest telecommunications groups in Southeast Asia^*3. Collaboration will be undertaken in fields such as digital marketing, payment, and data, to expand the digital transformation (DX) business in the Southeast Asian region.
The international QR code payment network provided by the U.S. company TBCASoft, Inc., which is an affiliate of SoftBank Corp., is set to expand. Discussions are currently under way with QR code payment service providers in South Korea, Taiwan, Thailand, and Malaysia on their participation in TBCASoft, Inc.'s network^*4.

[Notes]

*1
The sum of the average monthly GMV for the period July to September 2021 for those merchants that have cancelled the service due to the introduction of payment charges by October 2021.
*2
Average monthly GMV from July to September 2021.
*3
On November 2, 2021, SoftBank Corp. concluded a product partnership agreement with Axiata Business Services Sdn Bhd, which is engaged in business for enterprise customers as a member of the Axiata Group.
*4
Discussions are under way with Boost, which is a QR code payment service provider in Malaysia, with the aim of launching commercial service in 2022 over TBCASoft, Inc.'s international QR code payment network. In addition, discussions are currently being held with LINE Pay, which conducts a QR code payment business in Taiwan and Thailand, and NAVER Pay, which conducts a QR code payment business in South Korea, to pave the way for their participation in TBCASoft, Inc.'s network.