On May 10, 2023, SoftBank Corp. (TOKYO: 9434) President & CEO Junichi Miyakawa presented earnings results for the full fiscal year that ended on March 31, 2023 (FY2022). At the press conference held in Tokyo, Miyakawa began his presentation with a review of consolidated results for FY2022.
Revenue (5,912.0 billion JPY), operating income (1,060.2 billion JPY), and net income (531.4 billion JPY) increased year-on-year (YoY) by 4%, 10% and 3%, respectively. These results represented record-high levels for SoftBank since its listing in December 2018.
FY2022 results exceed forecasts, medium-term targets achieved
Miyakawa compared SoftBank’s performance against the Medium-term Management Targets first announced in August 2020 and noted that the business result targets of 5,500 billion JPY in revenue, 1,000 billion yen in operating income and 530 billion yen in net income were all achieved. SoftBank also met its shareholder return commitment by providing an annual dividend per share amount of 86 yen for FY2020 and FY2021, and a scheduled dividend of 86 yen for FY2022.
Vision to provide next-generation social infrastructure unveiled
Before explaining the next Medium-term Management Plan for FY2023 to FY2025, Miyakawa outlined SoftBank’s Long-term Vision that goes to FY2030. He noted that for SoftBank to realize its vision of becoming a provider of next-generation social infrastructure, which will contribute to Japan’s development as a digital society, three phases must be completed.
Miyakawa said that as AI becomes increasingly sophisticated, demand for data processing and electricity requirements will rapidly increase. “We want to become an indispensable presence that supports a variety of future digital services, including the provision of next-generation social infrastructure that can meet these demands,” he noted.
A fundamental issue facing Japan’s digital infrastructure is the heavy concentration of data processing and power consumption in urban areas. By building super-distributed computing infrastructure evenly across Japan’s regions and by utilizing green energy, Miyakawa said that a “super digitalized society” can be realized.
New medium-term management plan aims to achieve record-high net income
While the previous medium-term targets focused on revenue, operating income and net income, going forward, a record-high consolidated net income of 535 million JPY will be the primary financial target focus, Miyakawa explained.
While operating income in FY2022 was impacted by mobile service price reductions, which was offset by a remeasurement gain of 294.8 billion JPY through the consolidation of PayPay, the FY2025 operating income target of 970.0 billion JPY assumes a return to previous operating income levels before mobile service price reductions occurred.
By business segment, Miyakawa said that the Consumer segment is targeting a return to growth in mobile service revenues after a bottoming out in FY2023, the Enterprise segment will pursue a double-digit compound annual growth rate from FY2023 to FY2025 for business solution and other revenue, and the Financial segment, which includes PayPay, will target profitability by FY2025.
Procuring renewable energy for telecommunication business needs
Miyakawa revealed that, as a new initiative, SoftBank will be working to procure all the electricity needed for its telecommunications business from renewable energy sources. This electricity, which is needed to power telecommunications infrastructure like base stations, network centers and data centers, will be purchased from power producers and not generated by SoftBank itself. To procure power at lower prices and decrease its exposure to potential price hikes, SoftBank will enter long-term commitments with power producers, Miyakawa said.
Also as part of this initiative, SoftBank is aiming to achieve a virtually renewable energy ratio of 100% by FY2030, with more than half the energy coming from renewable energy sources. This will help contribute to realization of a decarbonized society while making SoftBank’s business structure less susceptible to electricity price hikes.
(Updated on May 15, 2023)
by SoftBank News Editors