Main Q&A at Earnings Investor Briefing
for Q2 FY2025

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Date	Wednesday, November 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 second quarter?

Operating income was slightly above our internal expectations. We see this as expanding our strategic options for the second half, given the many initiatives we would like to pursue. The Media & EC segment benefited significantly from temporary factors, and the Financial segment achieved growth exceeding our expectations. Although we had been cautious about the Consumer and Enterprise segments as the first half of the previous year was strong, both performed roughly in line with the plan. Overall, it was a record high for the first half.
Regarding user acquisition, how do you expect the shift in policy to focus on long-term users to affect acquisition costs (Sales commissions and sales promotion expenses) and churn rate in the second half, as well as acquisitions for the next fiscal year onwards?

We are already implementing initiatives to focus on long-term users. We are differentiating measures between bundled contracts and SIM-only contracts, and this has started to have a negative impact on net additions in the second quarter. We expect this to intensify in the third quarter, but we don't see it as permanent and expect a recovery from the fourth quarter onwards.
Regarding acquisition costs, from the perspective of balancing with LTV (Lifetime Value), we believe the business is moving in a healthier direction. On the other hand, regarding the device purchase support programs ("Tokusapo" program), the exercise rate of the right to waive remaining device payments is trending upward, and we may make additional provisions in the second half. While some impacts from past measures remain, we believe the current balance between acquisition costs and user acquisition is improving.
What is your approach to future price revisions? Which brands (SoftBank and Y!mobile brand) are being considered?

We are considering price revisions from all angles, but I will refrain from specific comments at this time. We want to proceed while carefully considering the market situation and customer satisfaction.
What was the Mobile Number Portability (MNP) trend from July to October? Was there an impact from the policy change?

Overall, MNP is solid. However, net additions have been facing somewhat challenging conditions since October. We recognize that our initiative to focus on long-term users has had a certain impact on net additions.
Please tell us the breakdown of net additions (individual/enterprise, SoftBank / Y!mobile brand, long-term/short-term) and the future outlook.

While enterprise contracts are stable, the impact of short-term churn has become apparent in individual contracts, and we expect a more challenging outlook for net additions in the third quarter. This is affecting not only the Y!mobile brand but also the SoftBank brand to some extent, and absorbing this impact is an important and immediate task. On the other hand, mobile revenue remains solid, and we expect the revenue-increasing effects from price plan revisions for Y!mobile and administrative fee revisions to gradually take effect.
The outlook appears positive, with the possibility of additional price revisions next fiscal year and what appears to be a limited negative impact from SB OAI Japan. That said, are there any risks related to profit and loss for the next fiscal year and beyond?

While we are not expecting significant upside in the Consumer segment, we expect steady performance. Currently, all segments are achieving revenue and profit growth, and if we can continue this trend next year, we believe we can further expand our management options as a unified team. We are proceeding with R&D, mainly in AI, but there are many variables involved, and the extent to which we can recover costs and monetize outcomes remains uncertain at this point. However, we position this as a critical initiative that will determine our future growth, and the key will be on how much progress we can demonstrate in the next Medium-term Management Plan.
Regarding AI data center investment, the first half was ¥6.1 billion and the full-year forecast is ¥7.0 billion, which means the outlook for the second half is about ¥0.9 billion. This seems low if construction is progressing at the Sakai and Tomakomai data centers. Could you comment on this?

The development of AI data centers will proceed sequentially from this fiscal year into the next. The ¥7.0 billion full-year forecast includes projects for which decisions have been made at this time. The second half figure appearing suppressed is a matter of timing; it does not mean our commitment to development has become passive. We are considering AI data center investment as part of a medium-term development plan and expect to make larger investments in the future.
The Distribution segment is performing well. Is the increase in PC demand related to the end of Windows 10 support? If so, what is the profit margin and do you anticipate any post-demand decline?

PC demand related to the end of Windows 10 support and the GIGA School Program Phase 2 is contributing to the revenue increase. However, profit margins are not high, and profit growth is supported by recurring revenue products. While sales revenue may fluctuate temporarily, profit remains solid, and we aim to continue profit growth next fiscal year.
Could you provide specifics on the recurring revenue products in the Distribution segment?

We are expanding SaaS products that are used continuously every month, rather than just packaged sales. While the Enterprise segment focuses on account sales for large enterprises, the Distribution segment has a wide range of contact points, including resellers and SMEs. Although they are separate segments, we want to position both businesses to grow in the AI era.
What is the current AI-related revenue contribution in the Enterprise and Distribution segments, and what is its expected impact on the company-wide plan going forward?

Current AI-related revenue is limited. In the Distribution segment, there are some AI server-related deals in the tens of billions of yen, but full-scale deployment of AI in the Enterprise segment is yet to come. We expect the combined revenue of both segments to be about ¥2 trillion, but AI-related revenue is almost not factored into this. Our approach is to first grow existing businesses organically and then stack AI-related revenue on top of that. We plan to nurture the AI domain as a pillar of growth in the next Medium-term Management Plan, so we will refrain from commenting on a specific sales target at this time.
You mentioned that SoftBank Corp.'s usage fee for "Crystal intelligence" is pay-for-use. Could you explain how these costs are incurred?

We are currently in the development phase, so we will refrain from providing details. The general concept is that costs will be incurred in correlation with the outcomes achieved from using "Crystal intelligence." It will not have a negative impact on our profits.

This document is intended to disclose the Company's financial results for H1 FY2025, 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.