Main Q&A at Earnings Results Briefing
for FY2025

Since net income is linked to dividends, we formulated the plan with a strong determination to achieve net income of at least ¥700.0 billion. The Company intends to work toward further upside. If net income reaches ¥800.0 billion, we would like to consider a dividend per share outlook of ¥11.

In addition to the declining population and the recent competitive environment, considering our response to the customer segment with a high possibility of short-term cancellation ("hopping users"), it is extremely difficult to forecast five years ahead. Therefore, SoftBank Corp. has not disclosed targets for the number of contracts. We believe we are taking proactive measures against "hopping users." Even in an uncertain environment, we intend to continue increasing mobile service revenue and profit.

SoftBank Corp. expects a level in the mid-tens of billions of yen in FY2026. In the first half, the effect will be offset by the impact of deferring acquisition costs, so the effect will become manifest from the second half.

The specific uses of the ¥100.0 billion have not all been decided. We intend to utilize this as a buffer for unforeseen circumstances and as a framework for upfront investments toward enhancing corporate value in the future.

We do not assume that all AI-related investments will be made solely on our own balance sheet. SoftBank Corp. intends to ensure financial discipline by flexibly selecting the optimal scheme, including off-balance sheet arrangements such as collaboration with partners and utilization of external capital.
Demand for AI data centers is very robust. We want to make the Osaka Sakai AI data center, which we are planning to launch, have a computing capacity of 110 ExaFLOPS (equivalent to 100,000 units in terms of NVIDIA H200 GPUs), and the Hokkaido Tomakomai AI data center several times greater than that. While these are not excessive by global standards, the rollout of AI infrastructure in Japan is slightly lagging. Therefore, we intend to carefully determine the timing to accelerate investment in earnest.
The direction the Company is aiming for is what is known as "Neo Cloud." In the conventional data center business, land is acquired, buildings are prepared and then leased to hyperscalers, with the hyperscalers themselves bringing in chips and systems. However, as this model results in low gross profit margins, we intend to pursue higher added value and profitability by deploying chips and systems within our data centers ourselves and providing them as cloud services.

We are considering various businesses at the "AX Factory" and "GX Factory" in the Osaka Sakai AI data center, and there is a possibility of investing in these businesses in the short term. Although there are multiple candidate businesses, we believe the investment scale would be less than ¥100 billion even in aggregate. The Company intends to make decisions through discussions at Board of Directors meetings with a focus on investment efficiency. Since M&A is also an option for our future growth strategy, we intend to consider it within this framework.

The main factors include increasing investment in submarine cables, for which demand is very robust, and reinforcing base station equipment for a resilient network. "AI-RAN" is in the preparation stage and full-scale deployment is further ahead, so no large amounts are included in the investment figure.

To promote the optimization of energy supply and demand across Japan, a vast amount of batteries will be required in the future. Since current mainstream lithium-ion batteries depend on overseas sources for raw materials, it would become a risk if there are major changes in the supply chain. The innovative batteries that SoftBank Corp. is working on are significant in that they can be manufactured using materials that can be procured domestically. We intend to proceed with this as a business that leads to future growth within an investment scale that the Company can handle.
While we have grown centered on domestic demand until now, in the future, we intend to manufacture these innovative batteries domestically and make it a business that can generate foreign currency earnings.

We have been conducting various studies under the concept of making AI data centers into "industrial clusters," creating a structure where various industries gather around AI which acts as the "brain." Since the Osaka Sakai AI data center has vast land, we decided to start the manufacturing of these innovative batteries as the first initiative. We plan to have multiple initiatives in the future. We believe that industries can be evolved through AI, and we intend to pursue opportunities.

I believe the concept of "distributed AI infrastructure" is something any telecommunications carrier would naturally think of. Our advantage lies in the fact that we have been working on this for over five years and have developed "Infrinia AI Cloud OS," a software stack for AI data centers. We intend to provide this not merely as a data center business, but as a high-value-added cloud service.

As demand for AI increases, particularly for companies, the need for "sovereign" features is rising due to concerns over cross-border data transfer. Since SoftBank Corp. possessed an AI computing infrastructure that could be provided immediately in Japan, it led to the collaboration with Microsoft Japan Co., Ltd..

We are considering it, but nothing has been decided at this point.

We are not considering a price increase at this point. As an online-exclusive brand, LINEMOt has a role in countering other companies' services. Since it is not a brand experiencing rapid user growth, we intend to discuss how to proceed, including the segmentation with SoftBank and Y!mobile.