Value Creation Process

Maximizing corporate value, centered on the Beyond Carrier strategy

We aim to maximize our corporate value by pursuing sustainable growth in our telecommunications business while going beyond just being a telecommunications carrier to actively roll out new businesses in the information and technology fields. 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.

Value Creation Process
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SoftBank's Strengths, 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
  • Manufactured Capital
  • Intellectual Capital
  • Human Capital
  • Social and Relationship Capital
  • Natural Capital

Overwhelming number of
customer touchpoints
Social and Relationship Capital

SoftBank Mobile
40 mil users*1
Yahoo! JAPAN Online media
85 mil users*2
PayPay Smartphone payment
Over 63 mil users*3
LINE Communication app
97 mil users*4

Generation of strong
cash flow
Financial Capital

Adjusted free cash flow
(excluding LY, PayPay, etc.)*5
¥532.8 billion (FY2023)
Shareholders' equity (equity attributable to owners of the Company)
¥2,377.1 billion (End of FY2023)
Long-term ratings
R&I A+, JCR AA-*6
(as of August 26, 2024)

High technology
capabilities
Intellectual CapitalHuman Capital

Approx. 14,000 engineers*7
Conducting cutting edge AI research with the University of Tokyo and other institutions
Implementing verification trials in various industries using 5G

Strong sales forceHuman Capital

Approx. 16,000 sales staff*8
Transaction with 93%*9of large corporations
6,400 stores nationwide*10

Continued investment
for growth
Manufactured Capital

Capital expenditures (FY2023)
¥312.8 billion*11
Growth investment (FY2023)
¥85.4 billion*12

Pushing forward to
achieve Net Zero*13
Natural Capital

Electricity use (FY2023)
2,435,781 MWh

Outcomes

Corporate Value
Enhancement (FY2023)
Corporate Value Enhancement

Operating income ¥876.1 billion
Net income*14 ¥489.1 billion
Engagement Survey*15 Scored 66 out of 100

Social Value
Creation (FY2023)
Social Value Creation

Dividends*16
returned to shareholders
¥406.8 billion
Taxes*16
returned to society
¥281.2 billion
Personnel costs*17
returned to employees
¥540.1 billion
[Notes]
  1. *1
    The figure for SoftBank is cumulative number of mobile main subscribers (as of March 31, 2024)
  2. *2
    The figure for Yahoo! JAPAN is average monthly users from January to September 2023, based on Nielsen's “TOPS OF 2023: DIGITAL IN JAPAN, Top 10 by Total Digital Reach in Japan.” Does not include overlap of smartphone and PC users
  3. *3
    The figure for PayPay is registered users (as of March 31, 2024)
  4. *4
    The figure for LINE is active monthly users (MAU in Japan) (as of March 31, 2024)
  5. *5
    Adjusted free cash flow = free cash flow + (proceeds from the securitization of installment sales receivables − repayments thereof); excludes free cash flow of the A Holdings Corporation, LY Corporation and its subsidiaries, B Holdings Corporation, PayPay Corporation, PayPay Card Corporation, PayPay Securities Corporation, etc., as well as loans to Board Directors, etc.; includes dividend payments received from A Holdings Corporation
  6. *6
    R&I: Japan Rating & Investment Center; JCR: Japan Credit Rating Agency
  7. *7
    Total of the engineers in SoftBank Corp., LY Corporation, PayPay Corporation, ZOZO, Inc., SB Technology Corp., etc. (as of April 1, 2024)
  8. *8
    Number of SoftBank Corp.'s sales staff (as of March 2024)
  9. *9
    The percentage of listed companies in Japan with annual sales exceeding ¥100 billion that conducted business with SoftBank Corp. in FY2023
  10. *10
    Total of SoftBank and Y!mobile brands' directly managed stores, agents, mass merchandisers and other retail channels (as of March 31, 2024)
  11. *11
    Capital 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”
  12. *12
    Includes ¥74.9 billion in long-term growth investments that will take a considerable time to recover (¥67.5 billion in investment in Cubic Telecom Ltd. and ¥7.3 billion in investment related to generative AI such as SuperPOD)
  13. *13
    “Carbon Neutral 2030” declaration applies to Scope 1, 2; “Net Zero” applies to Scope 1, 2, 3; each scope continues to expand from SoftBank Corp. to its Group companies (consolidated subsidiaries)
  14. *14
    Net income attributable to owners of the Company
  15. *15
    The Engagement Survey (formerly Employee Satisfaction) was redefined in FY2023 and is scored on a 100-point scale (up to 49: Low; 50-64: Normal; 65-74: High, 75+: Very high)
  16. *16
    Dividends and taxes paid are presented on a consolidated cash flow basis
  17. *17
    Personnel costs are wages and benefits for employees and officers (on the basis of the Consolidated Statement of Income breakdown of expenses by nature)
Value Creation Process