Main Q&A at Earnings Investor Briefing
for Q1 FY2025

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Date	Tuesday, August 5, 2025 6:00 pm - 6:50 pm
Speakers	SoftBank Corp.: Kazuhiko Fujihara (Board Director, Executive Vice President & CFO) Osamu Akiyama (Head of Finance Unit, Vice President) Wataru Onoguchi (Head of Finance and Accounting Division) Yudai Sasaki (Head of FP&A)

How do you evaluate the performance of each segment in the first quarter?

The Consumer segment performed as expected and the Enterprise segment also performed solidly. While the Distribution segment was very strong, its impact on consolidated earnings was limited. The Media & EC and Financial segments are progressing steadily toward their full-year forecasts. As LY Corporation has been reducing costs, revenue growth will be a key management issue going forward. The progress rate of consolidated operating income against the full-year forecast is a healthy 29%, and we are confident in achieving the full-year forecast.
What is the outlook for gross profit from mobile device sales and sales promotion expenses in the Consumer segment? In the first quarter, Sales of goods and others recorded double-digit growth in both unit price and number of mobile devices sold, while sales promotion expenses were kept under control despite strong net additions.

Regarding mobile device sales, the number of units grew on the back of steady subscriber acquisitions amid increased liquidity in the mobile market. Although performance was strong in the first quarter, we expect growth to become more moderate in the second half of the fiscal year. Unit prices are gradually rising, and we expect this trend to continue.
The increase in sales promotion expenses is mainly due to higher costs associated with device purchase support programs (such as the "New Top-value Support" program). In FY2024 Q4, we increased provisions following a rise in the exercise rate of the right to waive remaining mobile device payments. In the first quarter, we recorded provisions for new subscribers based on the same exercise rate, which resulted in a year-on-year increase in expenses. Also, the exercise rate for subscribers from previous fiscal years exceeded the assumption at the end of the previous fiscal year, which also led to an increase in expenses. Currently, the exercise rate has stabilized, and we are considering revising the program, so we aim to curb further expense increases.
In the first quarter, costs for device purchase support programs increased by approximately ¥10 billion, while gross profit from mobile device sales increased by about ¥7 billion, resulting in a net negative impact of about ¥3 billion. What is your approach to customer acquisition costs going forward? Also, to what extent do you expect mobile revenue growth to drive profit growth?

The Consumer segment is our core business, and we are strongly committed to achieving profit growth. We recognize that the growth of mobile revenue is the main driver supporting profit growth. Therefore, we will expand the business from the next fiscal year while carefully controlling costs, including sales promotion expenses. We acknowledge that some measures are necessary to address the increased cost burden of the device purchase support program, and we are considering options, including revisions of the program itself.
In the Consumer segment's mobile domain, the churn rate is rising and you are maintaining net additions through higher sales promotion expenses. If SoftBank Corp. raises prices, market liquidity could increase further, pushing up promotion costs and eroding profitability. Will you reconsider your strategy to curb this liquidity?

We are aware of the concerns regarding higher churn and intensifying competition. We have already taken measures to improve profitability and reduce the churn rate for the "Y!mobile" brand, such as strengthening set-discounts with broadband and card services as well as family discounts. We will continue to operate our business with a focus on profit growth while constantly verifying the effectiveness of these measures.
Are you committed to achieving one million annual smartphone net additions?

While we are not explicitly committed to it, the 1.05 million net additions over the past year represent our current level.
In the Enterprise segment, has the increase in mobile revenue, despite lower ARPU, come from the growth in the number of subscribers?

Since FY2024, we have acquired more subscribers than in FY2023, and this increase in numbers is contributing to revenue growth.
What are the factors behind the strong performance of the Distribution and Enterprise segments, and how sustainable are they?

The Distribution segment is building a solid earnings base through the expansion of recurring revenue products, in addition to temporary factors such as increased PC sales from "GIGA School Program Phase 2" and the start of sales of products that were stagnant in the same period last year. In the Enterprise segment, mobile revenue is expanding steadily due to an increase in the number of subscribers, while cloud and security services are driving the Business solution and others revenue. In the long term, we expect further growth, including in AI-related businesses.
Subtracting the approximately ¥100 billion acquisition cost for Sharp Corporation's Sakai Plant from the cumulative capital expenditure plan for AI data centers of ¥135 billion leaves only about ¥35 billion. Is this sufficient to build a 50 megawatt data center in Tomakomai, Hokkaido, and a 150 megawatt data center in Sakai, Osaka?

The ¥135 billion figure covers only the capital expenditures announced to date and may change with the expansion and development of the AI data centers in Tomakomai and Sakai. The investment amount will likely be revised in the next Medium-term Management Plan.

This presentation is intended to disclose the Company's financial results for FY2025 Q1, and does not constitute a solicitation of an offer to sell or purchase any securities in Japan or any other jurisdiction. 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.