Value Creation Process
Maximizing corporate value, centered on the Beyond Carrier strategy
SoftBank works to sustainably grow its communications business while proactively developing businesses across a wide range of information and technology fields, beyond the framework of a communications carrier, to maximize its corporate value. By serving as a catalyst for digitalization across society and solving social issues, we aim to become the Corporate Group needed most by people around the world.
Sources of competitive advantage and results
(inputs and outcomes)
The Group has wide-ranging capital, built up through its businesses, that offers competitive advantages. In particular, we boast one of the largest user bases in Japan, a crucial factor for promoting society-wide digitalization. Spanning a wide range of fields, including communications, e-commerce, payments and social media, our enormous domestic customer base will contribute greatly to the Group’s future business development and corporate value enhancement. We will continue working to create new social value and, through such efforts, achieve sustainable corporate growth.
Inputs
Financial Capital
| Total (equity attributable to owners of the parent) | ¥2,224.9 billion (FY2022) |
|---|---|
| Adjusted free cash flow (excluding Z Holdings, etc.)*1 | ¥618.6 billion (FY2022) |
| Long-term ratings | R&I: A+; JCR: AA–*2 (as of August 23, 2023) |
Financial soundness
SoftBank focuses on adjusted free cash flow (FCF), which is calculated as operating cash flow less capital expenditures and growth investment. To maintain high shareholder returns while investing in growth, we will continue to generate a stable annual adjusted FCF and strive to maintain a sound financial standing.
Manufactured Capital
| Capital expenditures | ¥407.5 billion*3 (FY2022) |
|---|---|
| Growth investment | ¥15.8 billion (FY2022) |
Investment in growth
SoftBank undertakes capital expenditure to build high-quality communications networks. We conduct efficient capital expenditure to further develop 5G technologies while also making ongoing investments in new businesses, mainly though M&A.
Intellectual Capital
| Cutting-edge technologies and business models of the SoftBank Group’s portfolio companies | |
| Value of the SoftBank brand | Best Japan Brands 2023: USD 5,295 million*4 |
|---|---|
Collaboration and synergy within the SoftBank Group
As a member of the SoftBank Group, SoftBank Corp. collaborates with the SoftBank Group’s global unicorns, including the portfolio companies of the parent, to incorporate cutting-edge technologies and business models with relatively low up-front investment.
Human Capital
| Consolidated Group employees | 54,986 (as of March 31, 2023) |
|---|
Group sales and technological abilities
The Group boasts a large force of sales personnel, primarily in the Enterprise segment, who engage in sales of solutions (consulting), going beyond sales of products alone. Furthermore, our numerous engineers back up the Group’s diverse businesses.
Social and Relationship Capital
| User base*5 |
|
|---|
Unrivaled business foundation
SoftBank has one of the largest user bases in Japan, which is a major strength in its businesses. As we aim for society-wide digitalization that leaves no one behind, we will leverage the customer contact points we have developed through our businesses and utilize the Group’s business platforms to the fullest to create new value.
Natural Capital
| Electricity use | 2,278,902 MWh (FY2022) |
|---|
Working toward Net-Zero*6
Under its Carbon-Neutral 2030 Declaration, SoftBank aims to reduce greenhouse gas emissions from its own business processes and energy consumption to zero by FY2030. On top of this, the Group is working toward our Net-Zero goal of reducing greenhouse gas emissions associated with all business activities (supply chain emissions) to net-zero by FY2050.
Outcomes
Corporate Value Enhancement
FY2022
| Operating income | ¥1,060.2 billion |
|---|---|
| Net income*7 | ¥531.4 billion |
| Employee satisfaction | 3.62 out of 5 |
Social Value Creation
FY2022
| Dividends*8 | ¥405.6 billion returned to shareholders |
|---|---|
| Taxes*8 | ¥265.7 billion returned to society |
| Personnel costs*9 | ¥501.1 billion returned to employees |
- [Notes]
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- *1Adjusted free cash flow = Free cash flow + (proceeds from the securitization of installment sales receivables − repayments thereof) ; Excludes free cash flow of the Z Holdings Group, PayPay, etc., as well as loans to Board Directors, etc.; includes dividend payments received from A Holdings Corporation. PayPay, etc. includes A Holdings Corporation, B Holdings Corporation, PayPay Corporation and PayPay Card Corporation.
- *2R&I: Japan Rating & Investment Center; JCR: Japan Credit Rating Agency
- *3Capital expenditures of the Consumer and Enterprise segments Acceptance basis. Excludes investments in devices for rental services, shared equipment (contributions by other operators), and the impact of adopting IFRS 16 “Leases.”
- *4Brand value calculated by Interbrand Japan
- *5The figure for Yahoo! JAPAN is average monthly users from January to October 2022, based on Nielsen’s “TOPS OF 2022: DIGITAL IN JAPAN, Top 10 by Total Digital Reach in Japan.” Does not include overlap of smartphone and personal computer users.
The figure for LINE is active monthly users (MAU in Japan) (as of March 2023)
The figure for PayPay is registered users (as of March 2023) - *6Carbon-Neutral 2030 Declaration applies to Scope 1 and 2; Net-Zero applies to Scope 1, 2 and 3; Each scope continues to expand from SoftBank Corp. to its Group companies (consolidated subsidiaries).
- *7Net income attributable to owners of the Company
- *8Dividends and taxes paid are presented on a consolidated cash flow basis.
- *9Personnel costs are wages and benefits for employees and officers (on the basis of the Consolidated Statement of Income breakdown of expenses by nature).
- *1