Main Q&A at Earnings Investor Briefing
for Q3 FY2025

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Date	Monday, February 9, 2026 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)

Regarding the operating income outlook for the fourth quarter, the Consumer segment is expected to see a profit decline, while Other businesses are projected to have increased losses. Could you explain the background behind this?

For the Consumer segment, as we are working on structural reforms, we intend to thoroughly prepare whatever is possible within the current fiscal year. Furthermore, as segment income of ¥550.0 billion is within reach for FY2025, this outlook reflects our desire to manage the fourth quarter with an eye toward the next fiscal year. Other businesses include uncertainties related to ASKUL Corporation and others, so we have factored in a certain level of provision. While these figures might seem excessive when viewed solely as research and development or upfront investments, please view them as numbers formulated with an awareness of the overall results, including these provisions.
The upward revision seems modest. Is there a possibility of expenses such as impairment losses occurring in the fourth quarter?

As you pointed out, the upward revision is small, but please understand that we updated the figures after absorbing the impact of the system outage at ASKUL Corporation. SoftBank Corp. has a slight buffer and is not concerned about any specific extraordinary items.
What specific costs are included in the preparations for the next fiscal year and beyond in the Consumer segment?

We are not referring to any single item; rather, we intend to work with various assumptions across all areas. Regarding customer acquisition activities, we do not view them as a taboo if they can be conducted efficiently during periods of high demand. We plan to address this firmly, including structural reforms.
What was the catalyst for the change in policy last September?

Initiatives began in September and became full-scale in the third quarter. We made this judgment based on the recognition that acquiring short-term users is not rational from the perspective of acquisition costs and LTV (Customer Lifetime Value). Since the Consumer segment has recovered from the impact of mobile price reductions and management has stabilized, we conducted a total review including acquisition costs in order to transform our business structure into one capable of delivering sustained revenue and profit growth over the medium to long term. We will continue to brush this up heading into the next fiscal year.
While the churn rate for KDDI Corporation decreased, why did the churn rate for SoftBank Corp. increase? Also, do you expect the countermeasures to be effective?

While acquisitions and net additions were steady in the second half of FY2024, cancellations by users acquired during that period are becoming apparent in the second and third quarters. Although acquisitions were strong compared to competitors, it cannot be denied that there was a subsequent reactionary impact. We discussed this internally to conduct a review, which resulted in the change in policy.
Regarding AI-related investments, how do you view the relationship between cash outlays and the depreciation burden from the next fiscal year onward?

We recognize this as a very important theme, but please wait for the announcement of the next Medium-term Management Plan for details. As a general approach, the Company categorizes primary free cash flow and long-term growth investments separately. For the former, it is important to demonstrate that dividend payments and the repayment of interest-bearing debt are covered by free cash flow generated from existing businesses. On the other hand, the latter represents investment in new business fields, making it essential to demonstrate the expected returns. Therefore, final investment decisions are made in conjunction with the returns that can be envisioned. Consequently, the discussion of what investments we will execute and what businesses we will create is at the heart of our deliberations for the next Medium-term Management Plan.
Generally, the first one to two years are the upfront investment phase, and returns are obtained four to six years later. How do you view the timeline for investment and recovery?

Since details are currently under review, we will refrain from commenting at this time. In addition to the accumulation of EBITDA, the Company is now able to raise funds through foreign bonds by obtaining international credit ratings. Our financing capacity has become more robust than before. If a story with appropriate returns can be formulated, an environment exists where we can create meaningful business opportunities. As management options increase, the theme is precisely what we will envision and present in the next Medium-term Management Plan, and we intend to enhance our discussions based on this point.
While the next Medium-term Management Plan proposes aggressive investment, it also suggests strengthening shareholder returns. As CFO Fujihara, do you have any financial concerns upon your retirement?

Since the time of our listing, our desire for SoftBank Corp. to be a company that can achieve both shareholder returns and growth has remained steadfast. Regarding returns, some may view the payout ratio as remaining somewhat high; however, the dividend per share has been maintained for six years even under inflation. We continue to hold internal discussions, including on the necessity of growth investments. From the perspective of financial soundness, we place importance on two metrics: free cash flow and the net leverage ratio. My successor, Akiyama, has extensive experience as the head of financial strategy and understands this well. Furthermore, beyond just finance, President Miyakawa is also discussing investment and growth strategies while considering the financial situation. A sufficient system is in place for the Company to derive responsible conclusions.

This document is intended to disclose the Company's financial results for Q3 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.