Main Q&A at Earnings Results Briefing
for Q1 FY2026

First, the Company will proceed with monetizing AI infrastructure, and on top of that, expand revenue and profit by adding the provision of software and services. Over the past five years or so, SoftBank Corp. has been building AI infrastructure that requires time to prepare, including upgrading the fiber-optic network, developing AI data centers, and securing power supply. Currently, monetization of this AI infrastructure has begun. Based on this AI infrastructure, the Company intends to build out its services. SoftBank Corp. aims to secure a gross profit margin of at least 30% in the Cloud & AI domain.

The outlook disclosed this time consists primarily of revenue centered on the provision of AI infrastructure, such as contracted AI computing platforms and AI data centers. Revenue associated with service provision, such as "Patching as a Service" (hereinafter "PaaS") and sovereign cloud, is not materially included. The Company views these services as potential upside to the current outlook.

I personally consider the plan through FY2030 presented in the Medium-term Management Plan to be conservative, and the Company intends to pursue further upside through "PaaS," GPU cloud software "Infrinia AI Cloud OS" (hereinafter "Infrinia"), sovereign cloud, and other offerings.

Business negotiations have begun with many customers. The Company recognizes this as a field where customers have a strong sense of urgency.
SoftBank Corp. positions "PaaS" as an important area toward realizing "Crystal intelligence." While there are various services the Company wishes to offer as "Crystal intelligence," "PaaS" is being deployed with priority.

The Company has already begun providing paid services, and the number of applications is increasing. Since information regarding customers and terms is not disclosed, details will not be discussed.
Management also refrains from commenting on the future business scale outlook. Because "PaaS" is not heavily factored into current financial forecasts, it should be viewed as potential upside.

While there was an impact from curbing the acquisition of users who repeat short-term cancellations and focusing on customers who use services over the long term, the churn rate in June improved year-on-year. The Company intends to return to net subscriber additions as soon as possible.

The Company is not considering following suit at present. SoftBank Corp. believes it maintains sufficient competitiveness by combining option packages such as additional data allowances.

Due to soaring memory prices and other factors, sales prices of some models may be impacted from the second half. On the other hand, because inventory was kept relatively high for low-end models, no major impact is expected for FY2026. If handset prices rise significantly, there is a limit to reducing customer burden. Management believes it is necessary to establish rules that can return value to customers who use services over the long term.

The Company expects to be able to secure the necessary computing resources, and there are multiple options for the types of computing resources to be used. Discussions with potential customers including hyperscalers are progressing, but long-term contracts will be worked out going forward. Utilizing "Infrinia," the Company aims for a structure capable of providing a single computing platform to multiple customers. In principle, non-recourse financing is assumed, and if it cannot be established, prioritizing domestic business opportunities is also an option.

Contract structures will be considered on a case-by-case basis. If long-term commitments are expected, it is advantageous from a financing perspective, so those will be prioritized. On the other hand, if it is a transaction of around several tens of megawatts, providing computing resources as a cloud service while the Company assumes a certain level of risk itself is also an option. Various forms will be evaluated.

Investments are proceeding while maintaining financial discipline. While the investment in Seven & i Holdings Co., Ltd. (hereinafter "Seven & i HD") and the investment in SP.LINKS Co., Ltd. overlapped during the same period, capital recovery is also expected through the sale of its interest in Energy Global, LP (SB Energy). There is no change to the policy of continuing strategic investments while maintaining financial discipline.

Management refrains from answering regarding when consideration of the investment began or the background of the proposal, as it may invite speculation. This is not a partnership decided in a short period of time.
Numerical targets for synergies are not presented. While Seven & i HD utilizes the total ¥300.0 billion (the combined investment amount of Sumitomo Mitsui Card Co., Ltd., PayPay Corporation, and SoftBank Corp.), including the ¥100.0 billion invested by the Company, toward investments aimed at realizing future-oriented convenience stores, SoftBank Corp. will cooperate as a business partner by providing various technologies and solutions.

A. The main entity for store operations is Seven & i HD, and the Company has no intention to become directly involved in store operations. As a digital business partner, SoftBank Corp. will propose introducing robots to backroom operations, autonomous driving for inter-store deliveries, and various initiatives utilizing "PayPay." Additionally, through the introduction of town-wide energy management systems utilizing batteries, the Company wishes to propose mechanisms where convenience stores become central community lifelines during disasters.

A joint press conference had been scheduled, but we decided not to hold it in light of the situation in the areas affected by the 2026 Kumamoto Earthquake that occurred on July 28, 2026. Under the idea of wishing to support the digitization of the retail industry as a whole, SoftBank Corp. intends to participate as a business partner of Seven & i HD and does not aim for management involvement in Seven & i HD, which is why the investment ratio was set at approximately 2% (the investment ratio planned by the Company).

The Company has no intention of making stores a testing ground for AI robots. As a business partner, SoftBank Corp. intends to propose technologies and services according to needs and support business model transformation.

Management has the impression that it has finally begun, and views it positively. To utilize the know-how accumulated by Japan's manufacturing industry domestically, a platform combining domestic AI models and domestic data centers is necessary. From a medium- to long-term perspective, this is a highly meaningful initiative.
Domestic companies and research institutions engaged in AI development are participating in Noetra Inc., which is responsible for developing domestic multimodal foundation models, and development will be pursued by combining each company's human resources and expertise. SoftBank Corp. also has personnel who have developed the homegrown generative AI "Sarashina." The Company intends to contribute as much as possible to the development effort, including assigning these personnel.

Noetra Inc. plans to procure 27,500 "NVIDIA Rubin GPUs" for use in development, and these GPUs will be deployed as part of an AI computing infrastructure owned by the government. Meanwhile, AI data centers and AI computing platforms established by SoftBank Corp. will mainly be utilized for providing its own services.

Uses are assumed primarily for inference rather than training. Specifically, these include security services, development support for proprietary AI models for individual companies, and implementation support for industry-specific AI.

Management does not view that the Company's network was resilient compared to other carriers solely because this restoration was fast. Since a maximum of 22 base stations experienced service interruption, more than 300 personnel were deployed to the affected area to strive for early restoration.
This time, "JAPAN Roaming™" (a mechanism enabling communication by switching to another mobile carrier's equipment when the subscribed mobile carrier's network becomes unusable due to disasters or other events), enabled operators to provide mutual network backup as intended. In addition, four carriers divided responsibility for evacuation shelters in the affected area and were able to share roles to provide support. Management recognizes that accumulated past discussions were applied to actual disaster responses. The communication industry as a whole will continue building even more resilient disaster response systems.

"SoftBank Starlink Direct" was utilized in this disaster and was effective in securing communication. Management recognizes the need for a system capable of deploying HAPS more quickly during disasters, and going forward, wishes to advance building a system that can be launched from within Japan in a short period. By commercializing HAPS, the Company intends to accelerate preparations to provide networks capable of video transmission during disasters.