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Analysis of Operating Results

Consolidated Results

Revenue

  • For the fiscal year ended March 31, 2020, revenue increased across all segments by ¥204.4 billion (4.4%) year on year to ¥4,861.2 billion. Revenue increased by ¥16.2 billion in the Consumer segment, ¥18.4 billion in the Enterprise segment, ¥65.1 billion in the Distribution segment, and ¥98.5 billion in the Yahoo segment.

Operating income

  • For the fiscal year ended March 31, 2020, operating income increased across all segments by ¥93.5 billion (11.4%) year on year to ¥911.7 billion. Operating income increased by ¥19.8 billion in the Consumer segment, ¥7.3 billion in the Enterprise segment, ¥2.0 billion in the Distribution segment, and ¥16.4 billion in the Yahoo segment. Operating income under Others increased by ¥46.4 billion. This increase was mainly due to the recording of less operating loss than in the previous year related to PayPay Corporation, which was accounted for as a subsidiary at that time, and the recording of a gain on loss of control due to the reclassification of Cybereason Japan Corp. from subsidiary of the Company to an equity method affiliate in the period under review.

Net income attributable to owners of the Company

  • Net income attributable to owners of the Company increased by ¥10.7 billion (2.3%) year on year to ¥473.1 billion. Although there was an increase in the share of losses of associates accounted for using the equity method incurred by initiatives to expand business at PayPay Corporation, which has been accounted for as an equity method affiliate since May 2019, and an increase in income tax related to an intergroup transfer of shares of Z Holdings Corporation (“Z Holdings”), net income attributable to owners of the Company resulted in an increase due to the increase in operating income.

Adjusted free cash flow*1

  • In the fiscal year ended March 31, 2020, adjusted free cash flow was positive ¥379.5 billion, a decrease of ¥70.3 billion year on year. This mainly reflects an increase in cash flow from operating activities and a decrease in cash flow from investing activities due to the acquisition of ZOZO, Inc.
    Adjusted free cash flow excluding Z Holdings and IFRS 16 impact was ¥524.2 billion and achieved the full year forecast of ¥520.0 billion.

[Notes]
  1. *1
    Adjusted free cash flow = free cash flow ± total cash flows relating to non recurring transactions with SoftBank Group Corp. + (proceeds from the securitization of installment sales receivables ‐ repayments thereof)
  2. *2
    Excludes Z Holdings group and the impact of adopting IFRS 16
  3. *3
    Sum of Z Holdings' disclosed free cash flow and dividend payments from Z Holdings to SoftBank Corp. ¥5.4 bn, including impact of IFRS 16 in Z Holdings

Revenue by segment

Revenue by segment
Revenue by segment

Consumer segment

  • Revenue increased by ¥16.2 billion (0.6%) year on year to ¥2,696.7 billion.
    Mobile communications revenue increased by ¥48.2 billion (3.0%) year on year. This increase was mainly due to an increase in smartphone subscribers and a decrease in monthly discounts in line with an increase in subscribers to a so called unbundled price plan that separates handset payments and service fees and longer installment contract periods for devices under this plan, despite a decline in service fees due to the introduction of the unbundled price plan and family discounts and a decline in average unit price due to increases in the number of Y!mobile and LINE MOBILE subscribers.
    Broadband revenue increased by ¥22.8 billion (6.3%) year on year. This increase was mainly due to an increase in subscribers to the SoftBank Hikari fiber optic service.
    Revenues from sales of goods and others decreased by ¥54.7 billion (7.9%) year on year to ¥636.1 billion. This decrease was mainly due to a decrease in mobile device sales reflecting decreases in the unit prices and sales volume of mobile devices, while there was an increase in sales from the Ouchi Denki service in connection with an expansion in service areas.

Enterprise segment

  • Revenue increased by ¥18.4 billion (3.0%) year on year to ¥638.9 billion. Mobile revenue increased by ¥7.0 billion (2.6%) to ¥275.1 billion, fixed-line revenue decreased by ¥12.8 billion (6.2%) to ¥194.6 billion, and business solution and others revenue increased by ¥24.2 billion (16.7%) to ¥169.2 billion.
    The increase in mobile revenue was mainly due to an increase in smartphone subscribers.
    The decrease in fixed-line revenue was mainly due to a decline associated with a decrease in the unit price of telephone services and a large contract related to network construction that expired in the previous fiscal year.
    The increase in business solution and others revenue was mainly from increased revenue from cloud services, sales of goods and sales of outsourcing and professional services.

Distribution segment

  • Revenue increased by ¥65.1 billion (15.6%) year on year to ¥482.4 billion. This was mainly due to firm sales of existing products such as PCs and servers for enterprise customers, and an increase in stable revenue sources such as growth in the number of licenses for cloud services.

Yahoo segment

  • Revenue increased by ¥98.5 billion (10.3%) year on year to ¥1,052.9 billion. Commerce revenue increased by ¥94.0 billion (14.5%) to ¥740.5 billion, media revenue increased by ¥5.8 billion (1.9%) to ¥307.7 billion, and other revenue decreased by ¥1.3 billion (21.3%) to ¥4.8 billion. The increase in commerce revenue was mainly due to consolidation of ZOZO, Inc. and an increase in revenue associated with an increase in transaction value in existing commerce services.

[Notes]
  1. *
    SoftBank Corp. has adopted IFRS 15 from the fiscal year ended March 31, 2019
  2. *
    SoftBank Corp. has adopted IFRS 16 from the fiscal year ended March 31, 2020
  3. *
    Transactions under common control are accounted for as if such transactions were executed by SoftBank Corp. and its subsidiaries on the later of the acquisition date of the transferred companies by SoftBank Group Corp. or the opening balance sheet date of the comparative period

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