Summary of Earnings
Results Briefing
for FY2024

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Date Thursday, May 8, 2025 4:00 pm - 5:25 pm
Speakers SoftBank Corp.
Junichi Miyakawa (President & CEO)
Jun Shimba (Representative Director & COO)
Kazuhiko Fujihara (Board Director, Executive Vice President & CFO)

Summary

At the earnings results briefing, Mr. Junichi Miyakawa, President & CEO of SoftBank Corp., discussed the consolidated results for FY2024 and upward revisions of financial targets of the Medium-term Management Plan and consolidated forecasts for FY2025. In addition, Mr. Miyakawa discussed efforts toward building Next-generation Social Infrastructure, status of individual shareholders and provided an update on ESG.

Consolidated Results
for FY2024

Company-wide Results

  • Revenue for FY2024 was ¥6,544.3 billion, up 8% year on year. Revenue increased in all segments. In addition, the revenue target (¥6,500 billion) of the Medium-term Management Plan announced in May 2023 was achieved one year ahead of schedule.
  • Operating income was ¥989.0 billion, up 13% year on year. Profit increased in all segments. The Media & EC and the Distribution segments achieved double-digit growth, and the Financial segment became profitable. The operating income target (¥970.0 billion) of the Medium-term Management Plan was achieved one year ahead of schedule.
  • Net income attributable to owners of SoftBank Corp. (hereinafter “net income”) was ¥526.1 billion, up 8% year on year.
  • Primary free cash flow*1 was ¥603.3 billion, maintaining a high level.
  • We plan to pay a year-end dividend per common share of ¥4.3*2 as committed at the beginning of the fiscal year (annual dividend per share of ¥8.6*3).

Upward Revisions of Financial Targets of the Medium-term Management Plan and Consolidated Forecasts for FY2025

  • We announced an operating income target of ¥970.0 billion for FY2025 when the Medium-term Management Plan was announced.
  • As a result of strong business performance, this operating income target was achieved one year ahead of schedule in FY2024, even with growth investments in generative AI and other areas.
  • The operating income target for FY2025 has been upwardly revised to ¥1 trillion, even after strengthening growth investment in generative AI and other areas.
  • In addition, the net income target has been upwardly revised to ¥540.0 billion, aiming for record-high profits.
  • Dividends per common share for FY2025 are forecast at ¥8.6 on an annual basis. We aim to maintain a high level of shareholder return.
  • Consolidated forecasts for FY2025 and operating income forecasts by segment are shown in the table below.
FY2024 result FY2025 forecast Change Percent change
Revenue ¥6,544.3 billion ¥6,700.0 billion +¥155.7 billion +2%
Operating income ¥989.0 billion ¥1,000 billion +¥11.0 billion +1%
Net income attributable to owners of SoftBank Corp. ¥526.1 billion ¥540.0 billion +¥13.9 billion +3%
FY2024 result FY2025 forecast Change Percent change
Consumer ¥530.4 billion ¥550.0 billion +¥19.6 billion +4%
Enterprise ¥170.3 billion ¥188.0 billion +¥17.7 billion +10%
Distribution ¥30.4 billion ¥32.0 billion +¥1.6 billion +5%
Media & EC*4 ¥258.8 billion (Excluding valuation gain*5, ¥215.6 billion) ¥330.0 billion +¥29.5 billion (Excluding valuation gain*5 in FY2024, +¥72.7 billion) +10% (Excluding valuation gain*5 in FY2024, +28%)
Financial*4 ¥41.7 billion
Subtotal ¥1,031.6 billion ¥1,100.0 billion +¥68.4 billion +7%
Other/growth investments -¥42.6 billion -¥100.0 billion -¥57.4 billion -
Total ¥989.0 billion ¥1,000.0 billion +¥11.0 billion +1%

Results by Segment

  • Our Medium-term Management Plan targets by segment and the progress made toward them are outlined in the table below.
Medium-term management plan targets
(FY2023 - FY2025)		 Progress in FY2024
Consumer segment Mobile service revenue:
To hit bottom in FY2023 and return to growth		 Expect revenue increase for three consecutive years since FY2023
Segment income:
To hit bottom in FY2022 and return to growth		 Expect profit increase for three consecutive years since FY2023
Enterprise segment Business solution and others revenue:
Double-digit compound annual growth rate (“CAGR”)		 Increased 27% year on year
Segment income:
Double-digit CAGR		 Increased 12% (CAGR for FY2023 and FY2024)
Distribution segment Segment income:
¥30.0 billion (FY2025)		 Achieved one year ahead of schedule (¥30.4 billion in FY2024 (increased 16% year on year))
Media & EC segment Improvement of business efficiency and renewed growth of Media, Search, and Commerce Business from FY2024 and beyond Increased 20% year on year, even after excluding one-time factors
Financial segment Segment income:
Turn profitable by FY2025		 Achieved (¥33.2 billion in FY2024)

(1) Consumer segment

  • Net additions to cumulative smartphone subscribers were 1.04 million in FY2024, for a cumulative total of 31.77 million subscribers.
  • The balance of brand conversion*6 from Y!mobile and other brands to the SoftBank brand was positive in both the H1 and H2 periods. This positive trend is expected to continue.
  • SoftBank Corp.'s mobile network initiatives were explained. Despite the rising ratio of 5G handsets, we have achieved a high 5G connectivity rate, in addition to handling rapidly growing 5G traffic data volume while maintaining high-quality communications. We aim to further enhance quality through the rapid expansion of 5G standalone (SA) areas in major cities nationwide.

(2) Enterprise segment

  • We aim to drive further growth in the Enterprise segment through initiatives to support AI transformation, in addition to existing initiatives to support the digital transformation of companies.
  • In January 2025, Gen-AX Corp., a wholly owned subsidiary of SoftBank Corp., announced “X-Boost,” an in-house developed Software as a Service (SaaS) that boosts the efficiency of customer support activities using generative AI. In the future, Gen-AX Corp. aims to automate call center operations through AI.

(3) Media & EC segment and Financial segment

  • PayPay Corporation has started preparations for an IPO.
  • Consequently, operating income forecast for FY2025 of the Media & EC segment and the Financial segment will be disclosed as a combined total. We aim for double-digit profit growth in both segments combined.
  • PayPay Corporation's consolidated gross merchandise value (GMV)*7 in FY2024 was ¥15.4 trillion, up 23% year on year. Growth exceeding 20% was continued.
  • Consolidated EBITDA*8 was ¥45.6 billion, marking a profit for the second consecutive year. Consolidated operating income*9 turned positive, exceeding ¥30.0 billion for the full year.
  • The reorganization of the financial business was completed in April 2025. PayPay Corporation has converted PayPay Securities Corporation and PayPay Bank Corporation into subsidiaries. The strategy is to accelerate the growth of banking and securities services under PayPay Corporation's leadership.
  • SB Payment Service Corp.'s GMV for FY2024 was ¥9.8 trillion, up 22% year on year. The company will continue to pursue growth, primarily in the non-telecommunications area.

Efforts Toward Building Next-generation Social Infrastructure

  • In March 2025, we acquired the land and buildings of Sharp Corporation's Sakai Plant for approximately ¥100.0 billion for the construction of a large-scale AI data center.
  • “Sarashina mini” (with 70 billion parameters), a homegrown Japanese-language large language model (LLM) currently developed in-house, is expected to be commercially launched within FY2025.
  • The direction of our cloud business is “Sovereign Cloud” and “Sovereign AI” with emphasis on data, technology, and operational sovereignty; we plan to start providing these services sequentially from FY2026 onward.
  • SoftBank Corp. will work on the development of next-generation memory with high processing capacity and low power consumption in anticipation of an era in which inference will be at the core of AI. We expect to invest approximately ¥3 billion over the next two years in the development of samples for the core portion.
  • Continued discussions with OpenAI for the development of “Cristal intelligence*10”. Explained the Company's policy of aiming for a product that not only optimizes each business individually, but also optimizes and transforms the entire management through the collaboration of AI in each department.

Status of Individual Shareholders

  • As of the end of March 2025, the number of shareholders had surpassed 1.36 million (an increase of 500,000 compared to the end of March 2024). In terms of the age profile of individual shareholders, the percentage of young shareholders aged 40s and under had increased to 41%*11 (up 14 points from the end of March 2024).

Update on ESG

  • We plan to change the composition of the Board of Directors. While maintaining the majority ratio of external directors, we will increase the ratio of female directors (from 27% to 36%).
  • The renewable energy ratio relative to our own electricity use*12 is expected to be 54% in FY2024. Accordingly, we upwardly revised the target for FY2025 laid out in the Medium-term Management Plan from 50% to 60%. We will continue to work toward achieving the target of 100% by FY2030 (of which, more than half is to be procured from power generated from renewable energy sources).
[Notes]
  1. *1
    Primary free cash flow is a measure calculated by adding back the amounts spent as long-term growth investments to adjusted free cash flow (free cash flow + (proceeds from the securitization of installment sales receivables - repayments thereof) - free cash flow of the LY Corporation Group, PayPay Corporation, etc. + other items such as dividends received from A Holdings Corporation and investment in PayPay Securities Corporation). Long-term growth investments include investments in AI computing infrastructure, AI data centers, and Cubic Telecom Ltd. Before deduction of repayment of lease liabilities (telecommunication equipment, real estate rent etc.), which is recorded as cash flows from financing activities. The actual amount of this expenditure in FY2024 is JPY 128.7 billion.
  2. *2
    The year-end dividend for FY2024 is scheduled to be submitted for approval to the Board of Directors of the Company at a meeting planned for May 20, 2025.
  3. *3
    The Company has conducted a stock split at a ratio of 10 shares per common share, with the effective date being October 1, 2024. The dividend per share prior to October 1, 2024 has been adjusted to reflect this stock split.
  4. *4
    From Q1 FY2025, PayPay Bank Corporation, which was previously classified under the Media & EC segment, will be transferred to the Financial segment following the conversion of PayPay Bank Corporation into a subsidiary by PayPay Corporation. As a result, the figures for Media & EC and Financial for FY2024 have been retrospectively adjusted by ¥8.5 billion each. Note that these retrospectively adjusted figures are currently under review.
  5. *5
    Gain on loss of control of IPX Corporation (formerly LINE Friends Corporation), LINE NEXT Corporation, and ValueCommerce Co., Ltd.
  6. *6
    Calculated by subtracting the number of users who converted from SoftBank brand to Y!mobile/LINE MOBILE/LINEMO brands from the number of users who converted from Y!mobile/LINE MOBILE/LINEMO brands to SoftBank brand.
  7. *7
    The use of the “Send/Receive” function of “PayPay Balance” between users is not included. Payments via Alipay, LINE Pay, etc. and payments through “PayPay Credit (formerly Atobarai)” are included. The figures represent the sum of GMVs of PayPay Corporation and PayPay Card Corporation, with internal transactions between the two companies eliminated.
  8. *8
    EBITDA is calculated by adding depreciation and loss on disposal of non-current assets to operating income. The figure is based on IFRS and is non-audited.
  9. *9
    Consolidated operating income of PayPay Corporation, PayPay Card Corporation, and Credit Engine Group Co., Ltd.
  10. *10
    “Cristal intelligence” is a provisional name and not the official product name.
  11. *11
    Estimated by the Company based on data provided by certain securities companies.
  12. *12
    The total for SoftBank Corp. and Wireless City Planning Inc.

This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities. Any offers, solicitations of offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended (“Securities Act”). The information on this presentation is being presented in accordance with Rule 135 under the Securities Act.