SoftBank Group Q3 2025 SoftBank Group Corp Earnings Call | AllMind AI Earnings | AllMind AI
Q3 2025 SoftBank Group Corp Earnings Call
Junichi Miyakawa: 皆さま、大変お待たせいたしました. Thank you for your patience. We will now begin a SoftBank Corp. Fiscal Year 2026 Third Quarter Earnings Results Briefing. はい. First, let me introduce today's presenters. Mr. Miyakawa, President and CEO of SoftBank Corp. Mr. Fujihara, Director, Executive Vice President, and CFO. Today's briefing is being streamed live on the internet. Thank you for tuning in. Now, Mr. Miyakawa will provide you an overview of SoftBank's consolidated financial and business performance. Good afternoon, ladies and gentlemen. My name is Miyakawa. Thank you very much for coming all the way to this venue despite the piled-up snow on the roadside. Now, the election was over yesterday. I was amazed that Takaichi-led LDP took such great strides. It was a historic win, and I hope that will trigger a turnaround of this country, Japan. Now I'd like to report our financial results for the third quarter.
Speaker #2: Thank you for your patience. We will now begin the SOFTBANK GROUP CORP. fiscal year 2026 third quarter earnings call.
Operator: [Operator] Thank you for your patience. We will now begin a SoftBank Corp. Fiscal Year 2026 Third Quarter Earnings Results Briefing. はい. First, let me introduce today's presenters. Mr. Miyakawa, President and CEO of SoftBank Corp. Mr. Fujihara, Director, Executive Vice President, and CFO. Today's briefing is being streamed live on the internet. Thank you for tuning in. Now, Mr. Miyakawa will provide you an overview of SoftBank's consolidated financial and business performance.
Speaker #2: Quarter earnings results. 皆様、大変お待たせいたしました。 Briefing. First, let me introduce today's presenters. Mr. Miyakawa, President and CEO, SoftBank Group Corp. Mr. Fujihara, Director and Executive Vice President. Today's briefing is being streamed live on the internet.
Speaker #2: CFO: Thank you for tuning in. Now, Mr. Miyakawa will provide you an overview of SoftBank's consolidated financial and business performance. Good afternoon.
Junichi Miyakawa: Good afternoon, ladies and gentlemen. My name is Miyakawa. Thank you very much for coming all the way to this venue despite the piled-up snow on the roadside. Now, the election was over yesterday. I was amazed that Takaichi-led LDP took such great strides. It was a historic win, and I hope that will trigger a turnaround of this country, Japan. Now I'd like to report our financial results for the third quarter. Revenue reached a record high of JPY 5,195 billion, representing an 8% increase year-on-year. The progress rate to the full-year forecast stands at 78%. Looking at the breakdown, revenue increased across all segments. Distribution financial showed particularly strong growth.
Speaker #2: Ladies and gentlemen, my name is Miyakawa. Thank you very much for coming all the way to this venue despite the roadside. Now, the election was over yesterday.
Speaker #2: I was amazed that Takeshi led LDP took such great strides. It was a historic, piled-up snow on the will trigger turnaround of this country, win, and I hope that Japan.
Speaker #2: Now, I'd like to report our financial results for the third quarter. Revenue reached a record high of ¥5.195 trillion, representing an 8% increase year on year.
Junichi Miyakawa: Revenue reached a record high of JPY 5,195 billion, representing an 8% increase year-on-year. The progress rate to the full-year forecast stands at 78%. Looking at the breakdown, revenue increased across all segments. Distribution financial showed particularly strong growth. Media & EC was essentially flat, or +1%. This was due to a system outage caused by a ransomware attack at ASKUL, which resulted in a revenue decrease of over JPY 60 billion in the third quarter. Operating income amounted to JPY 884.1 billion, an 8% increase year-on-year. The progress rate is 88%, and performance is tracking steadily toward our target of JPY 1 trillion. By segment, Media & EC posted a 2% decline in profit due to an approximately JPY 20 billion negative impact from ASKUL, while all other segments recorded profit growth.
Speaker #2: The progress rate to the full year forecast stands at breakdown. Revenue increased across all, 78%. Looking at the segments, financial showed particularly strong growth.
Junichi Miyakawa: Media & EC was essentially flat, or +1%. This was due to a system outage caused by a ransomware attack at ASKUL, which resulted in a revenue decrease of over JPY 60 billion in the third quarter. Operating income amounted to JPY 884.1 billion, an 8% increase year-on-year. The progress rate is 88%, and performance is tracking steadily toward our target of JPY 1 trillion. By segment, Media & EC posted a 2% decline in profit due to an approximately JPY 20 billion negative impact from ASKUL, while all other segments recorded profit growth.
Speaker #2: Media and EC was essentially flat or plus Distribution 1%. This was due to a system outage caused by a ransomware attack at ASCO, which resulted in a revenue decrease of over ¥60 billion in the third quarter.
Speaker #2: Operating income amounted to ¥884.1 billion, an 8% increase year on year. The progress rate is 88%, and performance is tracking steadily toward our target of ¥1 trillion.
Speaker #2: By segment, media and EC posted a 2% decline in profit due to an approximately ¥20 billion negative impact from ASCO, while all other segments recorded profit growth.
Speaker #2: Enterprise and distribution achieved double-digit growth in profit and, supported by strong performance at PayPay, the final segment delivered more than double growth. Net income was ¥485.5 billion, or 11% up year on year.
Junichi Miyakawa: Enterprise and distribution achieved double-digit growth in profit, and supported by strong performance at PayPay, the final segment delivered more than double growth. Net income was JPY 485.5 billion, or 11% up year-over-year. The progress is 90%, and this is also proceeding steadily. This is a summary of progress against our full-year forecast. Revenue, operating income, and net income stand at 78%, 88%, and 90% respectively, which we see as solid progress. As shown here, progress by segment is also steady, with all segments exceeding 80%. Based on this progress, we have decided to update our full-year earnings forecast for this fiscal year. The revised figures are shown here. Although there was an impact from ASKUL, we have made a modest update to reflect the latest situation, although we may have to expect some negative impact in the fourth quarter.
Junichi Miyakawa: Enterprise and distribution achieved double-digit growth in profit, and supported by strong performance at PayPay, the final segment delivered more than double growth. Net income was JPY 485.5 billion, or 11% up year-over-year. The progress is 90%, and this is also proceeding steadily. This is a summary of progress against our full-year forecast. Revenue, operating income, and net income stand at 78%, 88%, and 90% respectively, which we see as solid progress. As shown here, progress by segment is also steady, with all segments exceeding 80%. Based on this progress, we have decided to update our full-year earnings forecast for this fiscal year. The revised figures are shown here. Although there was an impact from ASKUL, we have made a modest update to reflect the latest situation, although we may have to expect some negative impact in the fourth quarter.
Speaker #2: The progress is 90%, and this is also proceeding steadily. This is a summary of progress against our full-year forecast. Revenue, operating income, and net income stand at 78%, 88%, and 90% progress, respectively.
Speaker #2: As also steady, with all segments exceeding 80%. Based on this progress, we have decided to update our full-year earnings forecast for this fiscal year.
Speaker #2: The revised figures are shown respectively, which we see as solid shown here, progress by segment is here. Although there was an impact ASCO, we have made a modest update to reflect the latest situation although we may have to expect some negative impact in the fourth from will continue working toward achieving quarter.
Speaker #2: We had a record high level of net income. Sorry, I have technical issues here, I will explain performance by segment. First is the revenue was in the consumer segment.
Junichi Miyakawa: We will continue working toward achieving a record high level of net income. Sorry, I have technical trouble. From here, I will explain performance by segment. First is the consumer segment. Revenue was JPY 2,253.2 billion, or up 3% year-on-year. Core mobile revenue continues to grow. Operating income was JPY 468.3 billion, an increase of 6%. The progress rate against the full-year forecast is 85%, and we are gaining confidence in achieving our target. The number of smartphone subscriptions reached 31.96 million, an increase of 2% year-on-year. Compared to the previous year, subscription increased. However, if you take a look at this chart, over the past three months, we recorded a net decrease of 100,000 subscriptions. I think it was the first time that we posted such a negative performance.
Junichi Miyakawa: We will continue working toward achieving a record high level of net income. Sorry, I have technical trouble. From here, I will explain performance by segment. First is the consumer segment. Revenue was JPY 2,253.2 billion, or up 3% year-on-year. Core mobile revenue continues to grow. Operating income was JPY 468.3 billion, an increase of 6%. The progress rate against the full-year forecast is 85%, and we are gaining confidence in achieving our target. The number of smartphone subscriptions reached 31.96 million, an increase of 2% year-on-year. Compared to the previous year, subscription increased. However, if you take a look at this chart, over the past three months, we recorded a net decrease of 100,000 subscriptions. I think it was the first time that we posted such a negative performance.
Speaker #2: Trillion 253.2 confidence in achieving our operating income target. The number of smartphone subscriptions forecast is reached 31.96 million, an increase of 2% year on year.
Speaker #2: Mobile revenue continues to grow. It was ¥468.3 billion, an increase of 3% year on year. Core was up 6%. The progress rate against the full year...
Speaker #2: Compared to the previous year, subscription increased. However, if you take a look, 85%, and we are gaining at this chart, over the past three months, first time that we posted such a negative performance.
Speaker #2: While it's embarrassing to say this, but this is something that we are doing—showing a chart like this deliberately—so I'd like to explain the background.
Junichi Miyakawa: While it's embarrassing to show a chart like this, this is something that we are doing deliberately, so I'd like to explain the background. Until now, the consumer segment has grown mainly, particularly through Y!mobile, by expanding subscriptions to compensate the decline of ARP. As we focused aggressively on subscription or acquisition, however, the number of so-called hopping users, or those who switch carriers in a short period of time, increased. Because those so-called hopping users tend to cancel quickly, we believe this situation is not sustainable for management. With a desire to change this situation, we began structural reforms in September last year.
Junichi Miyakawa: While it's embarrassing to show a chart like this, this is something that we are doing deliberately, so I'd like to explain the background. Until now, the consumer segment has grown mainly, particularly through Y!mobile, by expanding subscriptions to compensate the decline of ARP. As we focused aggressively on subscription or acquisition, however, the number of so-called hopping users, or those who switch carriers in a short period of time, increased. Because those so-called hopping users tend to cancel quickly, we believe this situation is not sustainable for management. With a desire to change this situation, we began structural reforms in September last year.
Speaker #2: Until now, the consumer segment has grown mainly. We recorded a net decrease, particularly through Y! Mobile, by expanding subscriptions to compensate ARPU. Y of 100,000 subscriptions—I think it was the subscriptions to compensate decline Mobile by expanding of ARPU.
Speaker #2: As we focused aggressively on subscription, or acquisition, however, the number of so-called hopping users, or those who switch carriers in a short period of time—those so-called hopping users tend to cancel quickly—increased.
Speaker #2: I believe this situation is not because of a decline of sustainable management. With a desire to change this situation, we began structural reforms in September last year.
Junichi Miyakawa: By focusing on users who will use our services over the long term and restraining the acquisition of users who cancel quickly, we aim to transform our business structure into one that can achieve both revenue and profit growth. Now I will explain the enterprise segment. Revenue was JPY 733.2 billion, a 9% year-on-year increase. Solutions continue to perform well, delivering 13% double-digit growth. Operating income was JPY 158.1 billion, an increase of 13%. The progress rate is 84%, and as with the consumer segment, we believe we can achieve the target. Next is the Media & EC segment. Revenue was JPY 1,226.1 billion, or up 1%. Excluding the JPY 63.6 billion negative impact from ASKUL, revenue would have increased by 7%. So I believe that business is performing well in general. Operating income was JPY 206.3 billion, down 2%.
Junichi Miyakawa: By focusing on users who will use our services over the long term and restraining the acquisition of users who cancel quickly, we aim to transform our business structure into one that can achieve both revenue and profit growth. Now I will explain the enterprise segment. Revenue was JPY 733.2 billion, a 9% year-on-year increase. Solutions continue to perform well, delivering 13% double-digit growth. Operating income was JPY 158.1 billion, an increase of 13%. The progress rate is 84%, and as with the consumer segment, we believe we can achieve the target. Next is the Media & EC segment. Revenue was JPY 1,226.1 billion, or up 1%. Excluding the JPY 63.6 billion negative impact from ASKUL, revenue would have increased by 7%. So I believe that business is performing well in general. Operating income was JPY 206.3 billion, down 2%.
Speaker #2: By focusing on services over the long term, and restraining the acquisition of users who cancel quickly, we aim to structure into one that can achieve both revenue and profit growth.
Speaker #2: Now, to transform our business, I will explain the enterprise segment. Revenue was ¥733.2 billion, up 9% year-on-year. To perform well, increase. Solutions continue delivering 13% double-digit growth.
Speaker #2: Operating income was ¥158.1 billion, an increase of 13%. The progress rate is 84%, and as with the consumer segment, we believe we can achieve the target.
Speaker #2: Next is the Media and EC segment. Revenue was ¥1,226.1 billion, up 1%. Excluding the ¥63.6 billion ASCO, revenue would have had a negative impact, but increased by 7%.
Speaker #2: So, I believe that business is performing well in general. Operating income was ¥206.3 billion, down 2%. Excluding ASCO, operating income would have increased by approximately ¥20 billion, an impact of 7%.
Junichi Miyakawa: Excluding an approximately JPY 20 billion impact from ASKUL, operating income would have increased by 7%. ASKUL's service has now returned to normal operations. Going forward, ASKUL plans to implement large-scale promotional activities to accelerate its performance recovery, and we will support these efforts as a group. Next, I will explain the financial segment. Revenue was JPY 295.4 billion, representing a 24% increase. Operating income was JPY 66 billion, more than double year-on-year. Turning to PayPay, GMV reached JPY 14.3 trillion, up 24%. EBITDA increased by 83%. From here, I'd like to provide an update on our initiatives toward building next-generation social infrastructure. Looking ahead to a society that coexists with AI, we are building distributed AI data centers. Today, I'd like to explain progress at our brain data center.
Junichi Miyakawa: Excluding an approximately JPY 20 billion impact from ASKUL, operating income would have increased by 7%. ASKUL's service has now returned to normal operations. Going forward, ASKUL plans to implement large-scale promotional activities to accelerate its performance recovery, and we will support these efforts as a group. Next, I will explain the financial segment. Revenue was JPY 295.4 billion, representing a 24% increase. Operating income was JPY 66 billion, more than double year-on-year. Turning to PayPay, GMV reached JPY 14.3 trillion, up 24%. EBITDA increased by 83%. From here, I'd like to provide an update on our initiatives toward building next-generation social infrastructure. Looking ahead to a society that coexists with AI, we are building distributed AI data centers. Today, I'd like to explain progress at our brain data center.
Speaker #2: ASCO services have now returned to operations. Going forward, to accelerate its performance, ASCO plans to implement large-scale promotional activities as a recovery effort and will support these segments.
Speaker #2: Revenue was ¥295.4 billion, representing a 24% growth. Next, I will explain the financial increase. Operating income was ¥66 billion, more than double year on year.
Speaker #2: Turning reached ¥14.3 trillion, up 24%. EBITDA increased by PayPay. GMV from here, I'd like 83%. To provide an update on infrastructure, looking ahead to a society that coexists with AI, we are building distributed AI data centers as part of our initiatives toward building next-generation social infrastructure.
Speaker #2: Today, I'd like to center on progress at our brain data center. In order to build GPUs and AI training environments, we are using complex bioengineers with specialized expertise.
Junichi Miyakawa: In order to build AI training environments using GPUs, complex engineers with specialized expertise, with high-skilled engineers, and so-called Bare Metal Leasing. This is a special term for Bare Metal Leasing, GPU leasing. This process takes several weeks or even several months, depending on scale. In order to solve this, we have developed software called Infrinia AI Cloud OS. This provides GPU computing resources as a cloud service. With this, engineers at companies are able to use the computing infrastructure as a cloud service, just like existing cloud platforms. As a service provider, we can also efficiently deliver training and inference environments, maximizing utilization of our facilities. Please take a look at this. Only a limited number of infrastructure providers, such as hyperscalers like Microsoft, Google, AWS, and so-called NeoCloud providers such as CoreWeave and Nebius, currently have this kind of structure.
Junichi Miyakawa: In order to build AI training environments using GPUs, complex engineers with specialized expertise, with high-skilled engineers, and so-called Bare Metal Leasing. This is a special term for Bare Metal Leasing, GPU leasing. This process takes several weeks or even several months, depending on scale. In order to solve this, we have developed software called Infrinia AI Cloud OS. This provides GPU computing resources as a cloud service. With this, engineers at companies are able to use the computing infrastructure as a cloud service, just like existing cloud platforms. As a service provider, we can also efficiently deliver training and inference environments, maximizing utilization of our facilities. Please take a look at this. Only a limited number of infrastructure providers, such as hyperscalers like Microsoft, Google, AWS, and so-called NeoCloud providers such as CoreWeave and Nebius, currently have this kind of structure.
Speaker #2: With high-skilled engineers, in so-called bare metal leasing—this is a special term. For bare metal leasing, GPU leasing, this process takes several weeks or even several months depending on who has developed this. We have software called Infrenia AI Cloud Scale.
Speaker #2: OS, this provides, in order to solve GPU computing resources as a cloud service. With this, engineers at companies are able to use the computing infrastructure as a cloud service, just like existing cloud platforms.
Speaker #2: As a service provider, we can also efficiently utilize only a limited number of facilities. Please take a look at infrastructure providers such as Microsoft, Google, AWS, and so-called neo cloud providers such as CoreWeave and Nebulus.
Speaker #2: As hyperscalers, currently we have this kind of structure. Taking these environments, maximizing opportunity, we would like to—with agentic AI and physical AI becoming part of daily life—demand will increase.
Junichi Miyakawa: Taking this opportunity, we would like to with agentic AI and physical AI becoming part of daily life, demand for inference will further increase. We are proceeding with the construction of brain data centers where large-scale GPUs are installed mainly for training. By completing Infrinia, we'll be able to address not only training demand but also inference demand. Going forward, we will unify computing infrastructure across all layers, including regional brain and AI-RAN, using common software. So Japan is in short of power. This will allow us to integrate all distributed platforms from core to make and operate in coordination. We are not building mere data centers stacked with GPUs. Using Infrinia as a weapon for the future, we aim to provide a sovereign cloud that can compete with overseas operators.
Junichi Miyakawa: Taking this opportunity, we would like to with agentic AI and physical AI becoming part of daily life, demand for inference will further increase. We are proceeding with the construction of brain data centers where large-scale GPUs are installed mainly for training. By completing Infrinia, we'll be able to address not only training demand but also inference demand. Going forward, we will unify computing infrastructure across all layers, including regional brain and AI-RAN, using common software. So Japan is in short of power. This will allow us to integrate all distributed platforms from core to make and operate in coordination. We are not building mere data centers stacked with GPUs. Using Infrinia as a weapon for the future, we aim to provide a sovereign cloud that can compete with overseas operators.
Speaker #2: We are proceeding with the construction of brain inference. With further GPUs installed, mainly for Infrenia, we'll be able to address data centers where large-scale demand exists.
Speaker #2: Going forward, we training. By completing will unify computing also inference infrastructure across all layers including regional brain not only training demand but and ARN using common software.
Speaker #2: So, Japan is in short of power. This coordination—we are not building mere data centers stacked with GPUs—will allow us to provide a sovereign cloud that can compete with overseas operators. Using Infrenia as a weapon.
Speaker #2: With this, the foundation has finally been established, and as the next generation for the future, we aim, as a social infrastructure provider, we will to integrate all for sovereign cloud has services.
Junichi Miyakawa: With this, the foundation for a sovereign cloud has finally been established, and as a next-generation social infrastructure provider, we will begin offering cloud services. From here, I would like to provide an update on our future business enhancement related to optical fiber services. Just a brief announcement. We've established a joint venture with Sony Network Communications to jointly own and operate access facilities for optical fiber services. The equity ratio is 51/49, with SoftBank consolidating the results. Under a governance structure where both companies appoint an equal number of directors, we will streamline operations and enhance profitability. Let me elaborate on that. So I will briefly explain the business structure of SoftBank Hikari. We currently provide two models of optical fiber services. One model is provided by leasing optical fiber lines from entities and using entities' facilities, so-called FLET'S.
Junichi Miyakawa: With this, the foundation for a sovereign cloud has finally been established, and as a next-generation social infrastructure provider, we will begin offering cloud services. From here, I would like to provide an update on our future business enhancement related to optical fiber services. Just a brief announcement. We've established a joint venture with Sony Network Communications to jointly own and operate access facilities for optical fiber services. The equity ratio is 51/49, with SoftBank consolidating the results. Under a governance structure where both companies appoint an equal number of directors, we will streamline operations and enhance profitability. Let me elaborate on that. So I will briefly explain the business structure of SoftBank Hikari. We currently provide two models of optical fiber services. One model is provided by leasing optical fiber lines from entities and using entities' facilities, so-called FLET'S.
Speaker #2: From here, I would like to make and operate in distributed platforms. From the update on our future business, we will begin offering cloud to provide an optical fiber core to services.
Speaker #2: Just a brief announcement. We've established a joint venture with Sony Network Communications to jointly own and operate access facilities for optical enhancement related to fiber, consolidating the results.
Speaker #2: Under a governance structure where both companies appoint an equal number of directors, operations will be streamlined and profitability enhanced. Let me elaborate on that. I will briefly explain the business structure of SoftBank 51-49 with SoftBank Hikari.
Speaker #2: We currently service two models. One model is provided by leasing optical fiber lines from NTT and using NTT's facilities, so-called FRETs. The other one is provided using our own equipment and optical fiber installed within central offices to enterprise customers.
Junichi Miyakawa: The other one is provided using our own equipment installed within central offices, specially providing to enterprise customers. Through this collaboration, the joint venture will jointly own the equipment in these facilities, and both companies will pursue greater capital investment efficiency. Additionally, by jointly using optical fiber leased from entities, we will increase capacity utilization per line, reduce costs, and improve profitability. Please think of this initiative as the optical fiber version of what we achieved with KDDI. With 5G Japan, we've already reduced capital investment costs by approximately JPY 50 billion out of a JPY 120 billion target. So this is how we made this joint venture with Sony. Next, I would like to explain the transition to the next-generation management structure as announced on 29 January.
Junichi Miyakawa: The other one is provided using our own equipment installed within central offices, specially providing to enterprise customers. Through this collaboration, the joint venture will jointly own the equipment in these facilities, and both companies will pursue greater capital investment efficiency. Additionally, by jointly using optical fiber leased from entities, we will increase capacity utilization per line, reduce costs, and improve profitability. Please think of this initiative as the optical fiber version of what we achieved with KDDI. With 5G Japan, we've already reduced capital investment costs by approximately JPY 50 billion out of a JPY 120 billion target. So this is how we made this joint venture with Sony. Next, I would like to explain the transition to the next-generation management structure as announced on 29 January.
Speaker #2: Through this collaboration, they jointly own the equipment in this joint venture. And both companies will pursue greater capital investment by jointly using optical fiber leased from offices specially providing NTT. We will improve efficiency.
Speaker #2: Facilities. In Japan, we've already reduced capital investment costs by approximately $50 billion out of our $120 billion target. So, this is how we made this joint venture with Sony.
Speaker #2: Increase capacity utilization per line, reduce costs, and improve profitability. Please think of this initiative as the optical fiber version of what we achieved with KDDI.
Speaker #2: Next, I would like to explain the transition to the structure as announced in January, regarding next generation management and the appointment of a special advisor to the board.
Speaker #2: Chairman Imai will become director, executive vice president, and chairman. They are my comrades who have fought together since our COO Shimba will become broadband business director and continue growing sustainably. Passing management to the next generation is an important day.
Junichi Miyakawa: Chairman Imai will become Director and Special Advisor to the Board, and Executive Vice President and COO Shimba will become Director and Chairman. They are my comrades who have fought together since our broadband business days. For SoftBank to continue growing sustainably, passing management to the next generation is an important theme. At enterprise, under the leadership of Chairman Imai, we have achieved record profits over the past two years and successfully passed the baton to the next generation. Now, the consumer segment, led by Shimba, will also transition to the next generation. With this change in management structure, we are achieving a significant generation shift. The average age of retiring directors is 62, while the average age of newly appointed directors is 52. We've also appointed executives in their 40s, with Miyazawa aged 44 responsible for AI.
Junichi Miyakawa: Chairman Imai will become Director and Special Advisor to the Board, and Executive Vice President and COO Shimba will become Director and Chairman. They are my comrades who have fought together since our broadband business days. For SoftBank to continue growing sustainably, passing management to the next generation is an important theme. At enterprise, under the leadership of Chairman Imai, we have achieved record profits over the past two years and successfully passed the baton to the next generation. Now, the consumer segment, led by Shimba, will also transition to the next generation. With this change in management structure, we are achieving a significant generation shift. The average age of retiring directors is 62, while the average age of newly appointed directors is 52. We've also appointed executives in their 40s, with Miyazawa aged 44 responsible for AI.
Speaker #2: For SoftBank to enterprise, under the leadership theme, at of Chairman Imai, we have achieved record profits over the past two years. And successfully passed the segment, led by Shimba, will consumer generation.
Speaker #2: Now the also transition generation. And baton to the next with this change in management structure to the next significant generation shift. we are achieving a retiring directors is 62 while the average age of newly appointed The average age of 52.
Speaker #2: Directors in their 40s, with Miyazawa—who's also aged 44—responsible for AI. Under this rejuvenated executive structure, we intend to push our growth strategy more strongly than ever.
Junichi Miyakawa: Under this rejuvenated executive structure, we intend to push our growth strategy more strongly than ever. Finally, I would like to talk about ESG initiatives. Last November, we were selected for the prime seat for the second consecutive year at the Nikkei SDGs Management Hours. We ranked first for the third consecutive year in Nikkei's decarbonization management ranking, GX 500. This places us first among 830 companies in Japan, and achieving this for three consecutive years is unprecedented. We were selected for the A-list, the highest rating by CDP, for the first time. Let me summarize today's presentation. In the third quarter, we continued to achieve both revenue and profit growth, and we updated our full-year forecast for revenue, operating income, and net income.
Junichi Miyakawa: Under this rejuvenated executive structure, we intend to push our growth strategy more strongly than ever. Finally, I would like to talk about ESG initiatives. Last November, we were selected for the prime seat for the second consecutive year at the Nikkei SDGs Management Hours. We ranked first for the third consecutive year in Nikkei's decarbonization management ranking, GX 500. This places us first among 830 companies in Japan, and achieving this for three consecutive years is unprecedented. We were selected for the A-list, the highest rating by CDP, for the first time.
Speaker #2: Finally, I would like appointed executives to talk about ESG initiatives. Last November, we were selected for the prime seat for the second consecutive year at the Nikkei SDGs Management Hours.
Speaker #2: We ranked first for the third consecutive decarbonization management ranking year in Nikkei's This Places First GX500. So, companies in Japan achieving this for three consecutive years is unprecedented.
Speaker #2: Among 830 for the A list, the highest rating by CDP—for which we were selected for the first time. Let me summarize today's presentation. In the third quarter, growth.
Junichi Miyakawa: Let me summarize today's presentation. In the third quarter, we continued to achieve both revenue and profit growth, and we updated our full-year forecast for revenue, operating income, and net income. We also discussed our collaboration with Sony to strengthen optical fiber service Infrinia as a key element toward providing a sovereign cloud, changes to our management structure to ensure generational succession, and our strong external ESG evaluations. That concludes my presentation. Thank you so much. Now, we'd like to move on to the Q&A session.
Speaker #2: full-year forecast for And we updated our revenue, operating income, and net we continued to achieve both income. We also discussed our collaboration with Sony revenue and profit service Infrenia as a key element toward providing a sovereign cloud.
Junichi Miyakawa: We also discussed our collaboration with Sony to strengthen optical fiber service Infrinia as a key element toward providing a sovereign cloud, changes to our management structure to ensure generational succession, and our strong external ESG evaluations. That concludes my presentation. Thank you so much. Now, we'd like to move on to the Q&A session. We will begin with questions from the venue, followed by members of the press on Zoom, and then analysts and institutional investors joining via Zoom. If you wish to ask a question via Zoom, please join using the instructions provided in advance and click the raise hand button to indicate your interest. To avoid feedback, we kindly ask that you turn off the live board webcast after joining Zoom. We'd like to take as many questions as possible, so we ask that each person limit to a maximum of two questions.
Speaker #2: Changes to our management structure to strengthen optical fiber to ensure generational succession, and our strong external ESG evaluations. That concludes my presentation. Thank you so much.
Speaker #2: Now, we'd like to move on to the session. We will begin with questions from the venue, followed by members of the press, analysts, and institutional investors joining via Zoom.
Operator: We will begin with questions from the venue, followed by members of the press on Zoom, and then analysts and institutional investors joining via Zoom. If you wish to ask a question via Zoom, please join using the instructions provided in advance and click the raise hand button to indicate your interest. To avoid feedback, we kindly ask that you turn off the live board webcast after joining Zoom. We'd like to take as many questions as possible, so we ask that each person limit to a maximum of two questions. When you are called upon, please state your company name and your name before asking your question. The first question.
Speaker #2: If you wish to ask a question via Zoom, please join on Zoom, and then, using the instructions provided in the Q&A, use the Raise Hand button to indicate your interest.
Speaker #2: To avoid feedback, we kindly ask that you turn off the live board webcast after joining Zoom. We'd like to take as many questions in advance and ask that each person submit a maximum of two questions.
Speaker #2: When limited to a maximum, you are called upon. Please state your company name and your name as early as possible before asking your question.
Junichi Miyakawa: When you are called upon, please state your company name and your name before asking your question. The first question. My name is Kaneko, IT Media. You revised the commission, eSIM free of charge, and SIM card JPY 1,100. So I wonder why you did that and used a different rate for different products. And going forward, do you plan to raise your pricing, or why did you not decide to raise price plan now? Thank you very much. eSIM and SIM, we made a decision from the perspective of physical goods cost. We started with charging, but after we got feedback from users, we made that decision about raising price. We have not said at all that we are not going to raise price in the future forever. As you know, in general, we are looking at increasing the cost.
Speaker #2: First, the question—my name is Kaneko, IT Media. You revised the commission: eSIM is now free of charge, and the SIM card is ¥1,100. So I wonder why you did that, and used different rates for different products.
[Analyst]: My name is Kaneko, IT Media. You revised the commission, eSIM free of charge, and SIM card JPY 1,100. So I wonder why you did that and used a different rate for different products. And going forward, do you plan to raise your pricing, or why did you not decide to raise price plan now?
Speaker #2: And going forward, do you plan to raise your prices? Why did you not decide to raise your price plan now? Thank you very much. For eSIM and SIM, we made a decision from the perspective of physical cost.
Junichi Miyakawa: Thank you very much. eSIM and SIM, we made a decision from the perspective of physical goods cost. We started with charging, but after we got feedback from users, we made that decision about raising price. We have not said at all that we are not going to raise price in the future forever. As you know, in general, we are looking at increasing the cost. So at some point, we may have to raise price. So we will discuss further to come to a conclusion eventually.
Speaker #2: We started goods with charging, but after we got feedback from users, we made that decision. About raising price, we have not said at all that we are not going to raise price in the future forever.
Speaker #2: As you increasing the general, we are looking at have to raise price. So we will to a conclusion eventually. Thank discuss further to come you.
Junichi Miyakawa: So at some point, we may have to raise price. So we will discuss further to come to a conclusion eventually. Thank you. My name is Susano, freelancer. Two questions. First, regarding the strategy perspective. In the previous earnings results presentation, we also mentioned, compared to Entity, Mr. Maeda mentioned that competition hasn't really changed, and KDDI, Mr. Matsuda also mentioned that they haven't really increased the cost for GNS cost or acquisition cost or promotion cost. So what do you see for the competition environment? And the second question is that towards the RAC10, Mr. Miyakawa mentioned some comments. So would you like to comment on that as well? So regarding the competition environment, I don't see it has changed much. We have changed how to acquire new customers. And as for those who may have the possibility for hopping, then we do not really accept.
Susan O: Thank you. My name is Susano, freelancer. Two questions. First, regarding the strategy perspective. In the previous earnings results presentation, we also mentioned, compared to Entity, Mr. Maeda mentioned that competition hasn't really changed, and KDDI, Mr. Matsuda also mentioned that they haven't really increased the cost for GNS cost or acquisition cost or promotion cost. So what do you see for the competition environment? And the second question is that towards the RAC10, Mr. Miyakawa mentioned some comments. So would you like to comment on that as well? So regarding the competition environment, I don't see it has changed much. We have changed how to acquire new customers. And as for those who may have the possibility for hopping, then we do not really accept.
Speaker #2: My name is Sano Cost. So at some point, we may freeride. Two questions, first. Regarding the strategy perspective, in the previous earnings results, Mr. Maida mentioned compared to NTT, that competition hasn't really changed, and in the presentation, we also saw KDI. Mr. Matsuda also increased the cost for GNS cost or mentioned that they haven't really changed acquisition cost or promotion. So for the competition question, is it cost?
Speaker #2: So, towards that—what do you think about the Rakuten environment? And secondly, Mr. Miyakawa mentioned some comments. Would you like to comment on that as well?
Speaker #2: So, regarding the competition environment, I don't see that it has changed much. We have changed how we acquire new customers. And as for those who may have the possibility of hopping, we do not really accept it.
Speaker #2: So for that, the number has not been included; therefore, it's the big decrease in the net, so as a result, what we are looking at is that this is expected.
Junichi Miyakawa: So for that number, it has not been included. Therefore, it shows the big decrease in the net. So as a result, what we are looking at is that this is what we had expected. Compared to the other carriers, acquisition cost, we haven't really made big differences. And it's almost the same. So Rakuten, who is good at acquisition, renewals, and maybe they are a little bit ahead. As for Rakuten, they have achieved 10 million. I think it's a break-even point. So I also admire that, well, the founder is the one who actually makes it happen. So they have achieved 10 million. So I would like to congratulate him. Well, I have many to say. But since there is the fourth carrier emerged, so in order to strengthen Japan's network so when we were doing with three carriers, so the power was three-fold.
Junichi Miyakawa: So for that number, it has not been included. Therefore, it shows the big decrease in the net. So as a result, what we are looking at is that this is what we had expected. Compared to the other carriers, acquisition cost, we haven't really made big differences. And it's almost the same. So Rakuten, who is good at acquisition, renewals, and maybe they are a little bit ahead. As for Rakuten, they have achieved 10 million. I think it's a break-even point. So I also admire that, well, the founder is the one who actually makes it happen. So they have achieved 10 million. So I would like to congratulate him. Well, I have many to say. But since there is the fourth carrier emerged, so in order to strengthen Japan's network so when we were doing with three carriers, so the power was three-fold.
Speaker #2: What we had with carriers—compared to the other acquisition cost, we haven't really made big differences, and it's almost the same. So Rakuten, who is good at acquisition and renewals, maybe they are a little bit ahead.
Speaker #2: As for million, I think it's Rakuten; they have achieved ten break-even points. So, I also admire that. Well, the founder is the one who actually makes it happen.
Speaker #2: So they have achieved 10 million. So I would like to congratulate him. Well, I have many things to say. But since there is the fourth carrier emerged, so in order to strengthen Japan's network.
Speaker #2: So when we were dealing with three carriers, the power was threefold. Now with four, it becomes fourfold. So we welcomed the coming of the fourth carrier.
Junichi Miyakawa: Now with four, it becomes four-fold. So we welcomed the coming of the fourth carrier. However, if that has really contributed in this industry or not, if they were to do as they would like to do as the business, then it's different from what I see. So it's a little bit disappointing. Next. Suzuki, Freelance/Journalist. First question is about AI data center. You mentioned that currently, training is the main, but it's going to be shifted to inference. However, still, a lot of computing is used for training. So when do you think that kind of turning point comes, a shift from training to inference? Well, overseas, I think from CapEx perspective, they spend more to get prepared for inference. And in Japan, we have tried to do as much training as possible.
Junichi Miyakawa: Now with four, it becomes four-fold. So we welcomed the coming of the fourth carrier. However, if that has really contributed in this industry or not, if they were to do as they would like to do as the business, then it's different from what I see. So it's a little bit disappointing. Next. Suzuki, Freelance/Journalist.
Speaker #2: Industry or not, if they were to do as they would like to do as the business, then it's different from 'contributed' in this, what I see.
Speaker #2: So it's a little bit disappointing. Next, Suzuki. Freedom. However, if that has really—journalist, first question is about AI data center. You mentioned that currently training is the main, but it's going to be shifted to inference.
Junichi Miyakawa: First question is about AI data center. You mentioned that currently, training is the main, but it's going to be shifted to inference. However, still, a lot of computing is used for training. So when do you think that kind of turning point comes, a shift from training to inference? Well, overseas, I think from CapEx perspective, they spend more to get prepared for inference. And in Japan, we have tried to do as much training as possible.
Speaker #2: However, still, a lot of computing is used for training. So when do you think that kind of turning point comes? A shift from training to inference?
Speaker #2: Well, overseas, from a CapEx perspective, they, I think, spent more to get prepared for inherence. And in Japan, we have tried to do as much training as possible.
Speaker #2: Looking at OpenAI and parameters would be 10 trillion, while in our case, Gemini, the number was 100 billion. So I think it depends on how much financial capacity you have.
Junichi Miyakawa: Looking at OpenAI and Gemini, the number of parameters would be 10 trillion, while our case was 100 billion. So I think it depends on how much financial capacities you have. We try to charge ahead, but at some point, we have learned a lot of expertise, and we have great resources. So at some point, we want to try harder to be on par with overseas big guys in the area of training and inference, while the computing that we have built, that resources can be used not only for training but also inference as well. For example, physical AI, as the fundamental AI model is established, then each and every enterprise can start using that resources for inference. And maybe use case would be physical AI. So we've been trying hard to catch up with the trend. Next, PayPay's IPO. The timing, please.
Junichi Miyakawa: Looking at OpenAI and Gemini, the number of parameters would be 10 trillion, while our case was 100 billion. So I think it depends on how much financial capacities you have. We try to charge ahead, but at some point, we have learned a lot of expertise, and we have great resources. So at some point, we want to try harder to be on par with overseas big guys in the area of training and inference, while the computing that we have built, that resources can be used not only for training but also inference as well. For example, physical AI, as the fundamental AI model is established, then each and every enterprise can start using that resources for inference. And maybe use case would be physical AI. So we've been trying hard to catch up with the trend. Next, PayPay's IPO. The timing, please.
Speaker #2: We try to charge ahead point. We have learned a lot, but at some of expertise and we have great resources. So at some point, we want to overseas big guys in the area of training.
Speaker #2: And inference, well, the computing that we have built will be on par with that. Resources can be used not only for training but also well.
Speaker #2: For example, physical AI as that is established, fundamental AI model inference as then each and every use case would be—enterprise can start using physical AI.
Speaker #2: So we've been trying that—resources for, too hard to catch inference—and maybe keep up with the trend. Next, pay-based, please. Well, my simple answer is we cannot IPO—the timing, progress in terms of preparation for IPO.
Junichi Miyakawa: Well, my simple answer is we cannot say. But we are in good progress in terms of preparation for IPO at this moment. However, we have nothing to disclose with you. First, as you mentioned about the results. And you also mentioned that it could be the trigger for Japan to recover the power. So why do you think so? Yeah. This is my personal opinion. So the high popularity of Ms. Takaichi's regime, and I admire her strength. And so the Japanese government's aim, which I agree with. And so especially one of their strategies to reinforce AI investment, especially in the AI domain, we also like to contribute to it as much as possible. So for the nation's growth and for further happiness for the people, we also like to realize, and we would like to also support as much as possible.
Junichi Miyakawa: Well, my simple answer is we cannot say. But we are in good progress in terms of preparation for IPO at this moment. However, we have nothing to disclose with you. First, as you mentioned about the results. And you also mentioned that it could be the trigger for Japan to recover the power. So why do you think so? Yeah. This is my personal opinion. So the high popularity of Ms. Takaichi's regime, and I admire her strength. And so the Japanese government's aim, which I agree with. And so especially one of their strategies to reinforce AI investment, especially in the AI domain, we also like to contribute to it as much as possible. So for the nation's growth and for further happiness for the people, we also like to realize, and we would like to also support as much as possible.
Speaker #2: At this moment, however, we have nothing to say. But we are in good to disclose with you. Transfest. As you mentioned, about the results of that, it could be the or race.
Speaker #2: And you also mentioned a trigger for Japan to recover the power. So why do you think so? Yeah, this is a personal opinion. My admiration is high for Takaichi's regime, and I admire her strength.
Speaker #2: Popularity of Ms. And so the Japan's government I agree with. And so especially one of their strategies to reinforce AI investment, especially in the AI domain, we also like to contribute to it as much as possible.
Speaker #2: For the nation's growth and for further happiness for the people, we realize and we would like to also support as much as possible. So even though I said that it could be the trigger, I am sorry if I misled you, but it could be a trigger too for Japan to recover the power.
Junichi Miyakawa: So even though I said that it could be the trigger, I'm sorry if I misled you, but I wish or I hope that it could be a trigger for Japan to recover the power. So the Prime Minister Takaichi has great potential. I would like to expect highly. And the second question regarding AI. So Prime Minister Takaichi also announced to reinforce the AI as one of the core strategies of the government. So regarding the domestic AI development, how you're going to get involved in? As for domestic general purpose-based model, as I've mentioned a couple of times, I totally agree with that direction. And to establish in a collaboration manner, I would like to also play some role too. So in Japan, there is a vast amount of critical data which is not available or which is not seen on the web.
Junichi Miyakawa: So even though I said that it could be the trigger, I'm sorry if I misled you, but I wish or I hope that it could be a trigger for Japan to recover the power. So the Prime Minister Takaichi has great potential. I would like to expect highly. And the second question regarding AI. So Prime Minister Takaichi also announced to reinforce the AI as one of the core strategies of the government. So regarding the domestic AI development, how you're going to get involved in? As for domestic general purpose-based model, as I've mentioned a couple of times, I totally agree with that direction. And to establish in a collaboration manner, I would like to also play some role too. So in Japan, there is a vast amount of critical data which is not available or which is not seen on the web.
Speaker #2: So the Prime Minister Takaichi has great potential. I would like to wish, or I hope that it is expected to—so regarding highly. And the second question, AI, Takaichi also announced to—so Prime Minister reinforce the AI as one of the core strategies of—also like to the government.
Speaker #2: So, regarding the domestic AI development, how are you going to get involved in? As for domestic general-purpose based model, as I've mentioned a couple of times, I totally agree with that direction. In a collaboration manner, I would like to establish and also play some role in Japan; there is a, too.
Speaker #2: A vast amount of SO is not available or is not seen on the web. So we would like to collaborate with the government on critical data, which is an opportunity.
Junichi Miyakawa: So we would like to collaborate with the government, and we would like to pursue this opportunity. Thank you. Thank you. Next question, please. Ishikawa Freelance Journalist. NTT Docomo made a financial results announcement. Device purchase support program hit NTT Docomo hard. How about you in your case? As I think we take great control. So any plan to change sales practice? Well, I think that the government is talking about upper limit of JPY 40,000. And as for discount of devices, I think only global suppliers can win if carriers compete each other in device discount. I think center of the discussion is so-called hopping users. Our money is used as sort of incentive for those hopping users. So I hope that other carriers will follow us to address that kind of situation.
Junichi Miyakawa: So we would like to collaborate with the government, and we would like to pursue this opportunity. Thank you. Thank you. Next question, please. Ishikawa Freelance Journalist. NTT Docomo made a financial results announcement. Device purchase support program hit NTT Docomo hard. How about you in your case? As I think we take great control. So any plan to change sales practice? Well, I think that the government is talking about upper limit of JPY 40,000. And as for discount of devices, I think only global suppliers can win if carriers compete each other in device discount. I think center of the discussion is so-called hopping users. Our money is used as sort of incentive for those hopping users. So I hope that other carriers will follow us to address that kind of situation.
Speaker #2: And we would like to pursue this. Thank you.
Speaker #1: Thank you. Next question, please. Ishikawa, freelance journalist. Entity Tokomo made a financial result announcement. Purchase device purchase support program hit Entity Tokomo hard. How about you?
Speaker #1: In your case, as I think of it—take 'and great,' any plan to change sales control. So, practice? Well, I think that the government is talking about an upper limit of 40,000 yen.
Speaker #1: And as for discount of devices, I think only global suppliers can win if carriers compete each other discount. I think center of so-called hopping in device users.
Speaker #1: Our money is used as some sort of incentive. The discussion is for those hopping users, so I hope carriers will follow us to address that kind of situation.
Speaker #1: But if the government sets a rule to control that kind of situation, that's also welcome. Personally, from a customer's perspective, if we offer discounts over the long run, I think that would be more beneficial to users.
Junichi Miyakawa: But if the government sets a rule to control that kind of situation, that's also welcome. Personally, from a customer's perspective, if we offer discount over the long run, I think that'll be more beneficial to users. In the past, we just wanted to take customers from competitors. And that's why the competitive environment is as we see now. But again, if you stand from the user's perspective, service should be beneficial over the long run, which is available in different sectors. So that's what I think. When Docomo announced that satellite connectivity will be launched early 2026, how about you, SoftBank? We will do. We will do direct communication between the land and the satellite. So we are looking at next year. Can you differentiate by satellite business? I don't think so.
Junichi Miyakawa: But if the government sets a rule to control that kind of situation, that's also welcome. Personally, from a customer's perspective, if we offer discount over the long run, I think that'll be more beneficial to users. In the past, we just wanted to take customers from competitors. And that's why the competitive environment is as we see now. But again, if you stand from the user's perspective, service should be beneficial over the long run, which is available in different sectors. So that's what I think. When Docomo announced that satellite connectivity will be launched early 2026, how about you, SoftBank? We will do. We will do direct communication between the land and the satellite. So we are looking at next year. Can you differentiate by satellite business? I don't think so.
Speaker #1: In the take customers from past, we just wanted to know why the competitive environment is as we see now. But again, if you stand from the user's perspective, service should be beneficial over the long run.
Speaker #1: Which is available in different sectors. So that's what I—computers, and that's I think. And, Tokomo, that satellite connectivity will be launched early 2026. How about you, SOFTBANK?
Speaker #1: announced satellite, to be used to provide connectivity, and to business? I don't think that would be great. not found solution yet for Hopefully, if we support terrestrial network, that.
Speaker #1: Will do. We will do. Direct communication between the land and satellite. So we are looking at next year. Can you differentiate by satellite so.
Junichi Miyakawa: Hopefully, if we have Japan-made satellites to be used to provide connectivity and to support terrestrial network, that'll be great. But we have not found a solution yet for that. But of course, we will strike a good balance of users and service availability. But we'll try different approaches in mid-long term. My name is Sekiguchi, Keitai Watch. I have two questions. First is about optical fiber services. As you pursue this and how you're going to differentiate with this service, and it is all about FTTH, or it could impact the backbone in terms of the investment efficiency. And the second question is about, as last week, NTT Docomo announced the earnings results. They are going to maintain the base station pace as it is and to catch up with others in the following fiscal year.
Junichi Miyakawa: Hopefully, if we have Japan-made satellites to be used to provide connectivity and to support terrestrial network, that'll be great. But we have not found a solution yet for that. But of course, we will strike a good balance of users and service availability. But we'll try different approaches in mid-long term. My name is Sekiguchi, Keitai Watch. I have two questions. First is about optical fiber services. As you pursue this and how you're going to differentiate with this service, and it is all about FTTH, or it could impact the backbone in terms of the investment efficiency. And the second question is about, as last week, NTT Docomo announced the earnings results. They are going to maintain the base station pace as it is and to catch up with others in the following fiscal year.
Speaker #1: have Japan made a But of course, we will strike a good But we have users and service availability. But we'll balance of ll try different approaches in mid-long term.
Speaker #1: My name is Sekiguchi, KT Watch. I have two questions. First, it's about optical fiber services. As you pursue this and how you're going to differentiate with this, and is it all about FDT8 or could the service impact the backbone in terms of investment efficiency?
Speaker #1: And the second question is about—as last week, Entity Tokomo announced the earnings results. They are going to maintain the base station pace as is and to catch up with others in the following fiscal year.
Speaker #1: So now, the quality is not limited to the number of base stations, but the Entity is aggressively achieving that. And so, what about SoftBank's view towards fiscal year '26? Actually, regarding the optical fiber, how will we differentiate?
Junichi Miyakawa: So the quality is not limited to the number of base stations, but NTT is actually aggressive achieving that. And so what about SoftBank view towards fiscal year 2026 onwards regarding the optical fiber services? How to differentiate this time with NURO and SoftBank Hikari's collaboration this time? So this is just like as I explained, it's 5G. And so rather than two different companies invest, one company should invest to improve efficiency. So it's a simple facility integration. So from the service perspective, we two companies as competitors as this, and we would be operating. So on the actual sales field, we will be competing with each other. So at the end of the day, when we're looking at the long term, so fixed network service, this will become more important in the future. So as the traffic increases with AI.
Junichi Miyakawa: So the quality is not limited to the number of base stations, but NTT is actually aggressive achieving that. And so what about SoftBank view towards fiscal year 2026 onwards regarding the optical fiber services? How to differentiate this time with NURO and SoftBank Hikari's collaboration this time? So this is just like as I explained, it's 5G. And so rather than two different companies invest, one company should invest to improve efficiency. So it's a simple facility integration. So from the service perspective, we two companies as competitors as this, and we would be operating. So on the actual sales field, we will be competing with each other. So at the end of the day, when we're looking at the long term, so fixed network service, this will become more important in the future. So as the traffic increases with AI.
Speaker #1: This time, onwards? With neural collaboration this time, so this is just, it’s a 5G, and so rather than two different companies invest to improve, like as I explained, efficiency.
Speaker #1: So it's a simple invest—one company should facilitate integration. And SOFTBANK Hikari's—so from the service perspective, we have two companies as competitors, as is, and we would be operating so on the actual sales, other.
Speaker #1: So, at the end of the day, when we're looking at the so-called fixed network service, this will become more important in the future.
Speaker #1: So, as the traffic increases with the field, we will be competing—each AI and so broadband—just like when they pushed forward with 5G and optical fiber, and they will be strengthening infrastructure.
Junichi Miyakawa: So just like when the broadband spread, moving forward, 5G and Hikari optical fiber, and they will be the strong weapons for strengthening infrastructure. So there are 4,000 base stations of NTT we are utilizing. And if we can expand this, we would be able to increase our service as well. We would like to take more initiatives proactively. So KDDI with the base of the power infrastructure, and we would like to work together with them. So we would like to offer more options to the users. And we have established the base for us to be able to invest more. So whether that would be used for base stations, yes, we will because the investment efficiency will be lower further. So we should be able to select what to use. So we will be proactively doing this.
Junichi Miyakawa: So just like when the broadband spread, moving forward, 5G and Hikari optical fiber, and they will be the strong weapons for strengthening infrastructure. So there are 4,000 base stations of NTT we are utilizing. And if we can expand this, we would be able to increase our service as well. We would like to take more initiatives proactively. So KDDI with the base of the power infrastructure, and we would like to work together with them. So we would like to offer more options to the users. And we have established the base for us to be able to invest more. So whether that would be used for base stations, yes, we will because the investment efficiency will be lower further. So we should be able to select what to use. So we will be proactively doing this.
Speaker #1: Spreaded, moving. So there are 4,000 base stations of Entity we are utilizing, and if we can expand Hikari this end, we would be able to increase our service as well.
Speaker #1: We would like to be the strong weapons to take more initiatives, proactively. So KDDI, with the base of infrastructure, and we would like the power with them.
Speaker #1: So, we would like to provide more—offer more options to the users. And we have established the base that would be used for base, because the investment efficiency will further.
Speaker #1: So we should be able to select what to proactively do in this. To work together. And it's not going to be spread or be gradual.
Speaker #1: So we will be starting with the low band, and we have designed the base stations for scale well. So speaking of enhanced, at once.
Junichi Miyakawa: It's not going to be spread or enhanced at once. It will be gradually. So, regarding Docomo's base stations, your second question. So, for SoftBank, we would like to combine frequencies, and we have established different stations, starting with the low band. And we have designed the base stations for low band as well. So, speaking of the scale of Docomo, and they should be able to catch up in the next fiscal year. If they are too, then they should be able to do so. But as for the radio and how the traffic should be carried and considering the traffic as well, and we do also have good experience and know-how. So, we would like to keep working on and improving that. And we are now planning to enhance SE.
Junichi Miyakawa: It's not going to be spread or enhanced at once. It will be gradually. So, regarding Docomo's base stations, your second question. So, for SoftBank, we would like to combine frequencies, and we have established different stations, starting with the low band. And we have designed the base stations for low band as well. So, speaking of the scale of Docomo, and they should be able to catch up in the next fiscal year. If they are too, then they should be able to do so. But as for the radio and how the traffic should be carried and considering the traffic as well, and we do also have good experience and know-how. So, we would like to keep working on and improving that. And we are now planning to enhance SE.
Speaker #1: So, regarding Tokomo's base, for us to be able to invest more—so, weather stations? Yes, we will be lowering stations. Your second question—so, for SOFTBANK, we would like to combine frequencies, and we have established different stations.
Speaker #1: Be able to catch up in the, it will, of Tokomo, and they should, they are two, then they should be able to do so.
Speaker #1: But as for the radio and how the traffic should be carried, and considering the traffic as well, and what we do next fiscal year, if we also have good experience and know-how, we would like to keep working on and improving that.
Speaker #1: And we are now planning to enhance SC and to focus on this, for we were 5G, but we had to consider the budget not only for 5G.
Junichi Miyakawa: We were to focus on this for 5G, but we had to consider the budget not only for 5G. So therefore, we would like to roll out SA more so that it could be connected to 6G as well. Next question, please. Otsubo. You said double growth or financial business. Could you elaborate on that? And how much more you want to get the financial business increased? That's the first question. And second. Docomo announced that they will utilize storefronts to support financial business. So I wonder, you have a similar idea to utilize physical assets like retail shops to support financial business growth? Those are two questions about financial, which is my background. I don't know if I can answer to your question because I'm not familiar with addressing financial questions. The first. Again, we are in the process of IPO preparation.
Junichi Miyakawa: We were to focus on this for 5G, but we had to consider the budget not only for 5G. So therefore, we would like to roll out SA more so that it could be connected to 6G as well. Next question, please. Otsubo. You said double growth or financial business. Could you elaborate on that? And how much more you want to get the financial business increased? That's the first question. And second. Docomo announced that they will utilize storefronts to support financial business. So I wonder, you have a similar idea to utilize physical assets like retail shops to support financial business growth? Those are two questions about financial, which is my background. I don't know if I can answer to your question because I'm not familiar with addressing financial questions. The first. Again, we are in the process of IPO preparation.
Speaker #1: So therefore, we would like to roll out low band as SE more, and so that it could be connected to well.
Speaker #1: a 6G as
Speaker #2: And next question,
Speaker #2: Please, Otsubo—growth or financial business—could you elaborate on that? And how much more do you want to get the financial business increased? That's the first question.
Speaker #2: And second, Tokomo announced that they will utilize storefronts business. So I wonder, do you have a similar idea to utilize physical assets like retail shops?
Speaker #2: To support financial business growth. Those are two questions about finance, which is my background. I don't know if I'm not familiar with addressing financial questions.
Speaker #2: We can answer three questions because I’m first. Again, we are in the process of IPO preparation. We don’t want to be interpreted as soliciting the public.
Junichi Miyakawa: We don't want to be interpreted as soliciting public. But again, we posted a 200% growth in finance services, and there is still an opportunity for them to grow further. The second question, whether we're going to utilize our retail shops to grow a PayPay business? Again, it's hard for us to address that question because it may be considered as a solicitation. Not only QR code-based payment. Online, a payment solution is growing as well. So since PayPay is a subsidiary of LY Corporation, I think they are supporting each other to further enhance PayPay's business and corporate value. I am sorry that I cannot elaborate too much about the financial business, but at the right point of time, we'd like to share with you our strategies in financial business. Ono from Yomiuri Newspapers. One question. About Docomo, we'll be ending the 3G network.
Junichi Miyakawa: We don't want to be interpreted as soliciting public. But again, we posted a 200% growth in finance services, and there is still an opportunity for them to grow further. The second question, whether we're going to utilize our retail shops to grow a PayPay business? Again, it's hard for us to address that question because it may be considered as a solicitation. Not only QR code-based payment. Online, a payment solution is growing as well. So since PayPay is a subsidiary of LY Corporation, I think they are supporting each other to further enhance PayPay's business and corporate value. I am sorry that I cannot elaborate too much about the financial business, but at the right point of time, we'd like to share with you our strategies in financial business. Ono from Yomiuri Newspapers. One question. About Docomo, we'll be ending the 3G network.
Speaker #2: But again, we posted a 200% growth in financial business, and there is still an opportunity for them to grow further. And the second question, whether we're going to utilize our retail shops to grow—it's hard for us to address that question because it may be considered as a solicitation.
Speaker #2: QR, not only code-based payment, online payment solution is growing as well. So since PayPay is a subsidiary, I think they are supporting each other to further enhance PayPay's business, Lanyafu, I, and corporate value.
Speaker #2: I am sorry that I cannot elaborate too much about the financial business, but at the right point of time, we'd like to share with you our strategies in the financial business.
Speaker #2: Owner from Yomiuri Newspapers, one question. About Docomo, will they be ending their 3G network? So are you also explaining that you will change? You have to sell towards the 3G special support customers.
Junichi Miyakawa: So you also explained that you will change how to sell towards the 3G customers. Device special support was also applied. So can you tell us your view towards the 3G? And regarding the hopping users, we now have a different way of looking at the potential customers or users under the hopping users. So you think that 3G users will be your high potential customers? So because we see them as a little different type of customers as hopping users, so we would like to also consider them as well. Next questions. MJ from Bloomberg. About AI investment. You mentioned that you want to accelerate investment going forward. So could you share your investment plan and strategy of AI data centers? And what's the progress so far against your plan?
Junichi Miyakawa: So you also explained that you will change how to sell towards the 3G customers. Device special support was also applied. So can you tell us your view towards the 3G? And regarding the hopping users, we now have a different way of looking at the potential customers or users under the hopping users. So you think that 3G users will be your high potential customers? So because we see them as a little different type of customers as hopping users, so we would like to also consider them as well. Next questions. MJ from Bloomberg. About AI investment. You mentioned that you want to accelerate investment going forward. So could you share your investment plan and strategy of AI data centers? And what's the progress so far against your plan?
Speaker #2: Also applied. So can you tell us the view towards the 3G and, regarding the hopping users, devices now have a different way of looking at the potential customers or users under the hopping users.
Speaker #2: So you think that 3G users will be—and that we view your high potential, them as little customers? So, because we see different types of customers as hopping users.
Speaker #2: So we would like to also consider them as well. Next question: MJ from Bloomberg, about AI investment. You mentioned that you want to accelerate investment going forward.
Speaker #2: So, could you share with us your investment plan and strategy for AI data centers? And what's the progress so far against your plan? Well, in fact, when we communicate with you—our mid-term plan, the second half of the mid-term plan—I will talk more about that.
Junichi Miyakawa: Well, in fact, when we communicate with you our mid-term plan, second half of mid-term plan, I will talk more about that. So please bear with us and wait until then. I'm Ishino, freelancer. You also mentioned about 100,000 net losses. So that will be improved by changing the structure and also reducing the number of hopping users. You said that it would improve. So how far you are expecting to see the improvement? You're not going to go after net additions? The second question is about device discount. So you mentioned about preventing hopping users from joining more. So with the price plan, those who have higher price program and will be providing. So what is your view? To answer your first question, so how long the net losses would continue? So I'm not particularly focusing on the net additions. So this is my strong intention.
Junichi Miyakawa: Well, in fact, when we communicate with you our mid-term plan, second half of mid-term plan, I will talk more about that. So please bear with us and wait until then. I'm Ishino, freelancer. You also mentioned about 100,000 net losses. So that will be improved by changing the structure and also reducing the number of hopping users. You said that it would improve. So how far you are expecting to see the improvement? You're not going to go after net additions? The second question is about device discount. So you mentioned about preventing hopping users from joining more. So with the price plan, those who have higher price program and will be providing. So what is your view? To answer your first question, so how long the net losses would continue? So I'm not particularly focusing on the net additions. So this is my strong intention.
Speaker #2: So please bear with us and wait until then. Ishino, freelancer. You also mentioned about—so that will be improved by changing the structure and also reducing the number of hopping users.
Speaker #2: You said that it would improve, so how far are you expecting to see the improvement? You're not going to go after net additions? The second question is about device discount.
Speaker #2: So you mentioned about preventing hopping users from joining more. So with the price plan, those who have a higher price program and will be providing—so what is your view?
Speaker #2: To answer your first question, losses would continue, so I'm not sure how long the net—particularly focusing on the net additions. Strong intention to pursue. So this is my—however, we would like to increase revenue and income.
Junichi Miyakawa: However, we would like to pursue increased revenue and income. And that also strongly related to acquisition cost. We need to keep good balance among those. So next fiscal year, we can even say that flat result would be sufficient. So it will be challenging for net additions. So we would like to make we may see the similar result bar graph as this time. But we would like to see how and when it can. Churn, especially the churn rate. So it may take six months or so. So we may see the positive impact of churn rate decrease in the next quarter. So we hope that we can catch up on Docomo, and we would like to improve our structure. So since we do have the good foundation to do so, we would like to focus on that. As for the price plan discussion.
Junichi Miyakawa: However, we would like to pursue increased revenue and income. And that also strongly related to acquisition cost. We need to keep good balance among those. So next fiscal year, we can even say that flat result would be sufficient. So it will be challenging for net additions. So we would like to make we may see the similar result bar graph as this time. But we would like to see how and when it can. Churn, especially the churn rate. So it may take six months or so. So we may see the positive impact of churn rate decrease in the next quarter. So we hope that we can catch up on Docomo, and we would like to improve our structure. So since we do have the good foundation to do so, we would like to focus on that. As for the price plan discussion.
Speaker #2: Also, strongly related. And that, to keep good balance among those. So next fiscal year, we can even say that flat would be sufficient. The result will—so it will be challenging for net additions.
Speaker #2: So, we would like to make sure we may see a similar result bar graph as this time. But we would like to see how and when it can turn, especially the churn rate. So it may take six months or so.
Speaker #2: So, we may see the positive impact rate decrease in the next quarter. So, we hope that we can catch up to Docomo, and we would like to improve our structure.
Speaker #2: So, since we do have the good foundation to do so, we would like for churn to focus on that. As for the price plan discussion, I'm accepting what's been discussed right now.
Junichi Miyakawa: So I'm accepting what's been discussed right now. From SoftBank perspective, the higher APU with the higher royalty customers, we would like to give benefit. And for short term, those with lower APU, and we would like to also keep balance for acquisition cost among those. And we are also looking for, if any, other way to improve this. Thank you. Well, in the interest of time, we take two more questions from the venue and close the question from the venue. First one. Matsumoto from Business Insider Japan. I have two questions. First, about APU. Looking at your data sheet, APU looks growing. And what's the driver? And do you think that this trend continues next year onwards? That's the first question to you, Miyakawa. I think looking at the competitor.
Junichi Miyakawa: So I'm accepting what's been discussed right now. From SoftBank perspective, the higher APU with the higher royalty customers, we would like to give benefit. And for short term, those with lower APU, and we would like to also keep balance for acquisition cost among those. And we are also looking for, if any, other way to improve this. Thank you. Well, in the interest of time, we take two more questions from the venue and close the question from the venue. First one. Matsumoto from Business Insider Japan. I have two questions. First, about APU. Looking at your data sheet, APU looks growing. And what's the driver? And do you think that this trend continues next year onwards? That's the first question to you, Miyakawa. I think looking at the competitor.
Speaker #2: From SOFTBANK’s perspective, with the higher royalty customers, we would like to give higher ARPU benefit, and for the short term, like those with lower ARPU, we would also like to keep a balance for acquisition cost among those.
Speaker #2: And we are also looking for if there is any other way to improve this. Thank you.
Speaker #2: you. Well, in the interest
Speaker #1: Of time, we take two more questions from the venue and close the questions from the venue. First one. Matsumoto from Business Insider Japan. I have two questions. First,
Speaker #1: About APU. Looking at your data sheet, APU looks growing, and what's the driver? And do you think that this trend continues next year onwards?
Speaker #1: That's the first question to you, Miyakawa. I think, looking at the competitor, thinking of shifting brand or device discount program, which is based upon our integration with PayPay Business Key.
Junichi Miyakawa: Think shifting brand is key, like a Pay-toku or device discount program, which is based upon our integration with PayPay business and users who need more volume. So, integration with PayPay business and users who need more volume. So, depending on the user profile, we encourage users from one brand to the other. And I think that's one reason why APU is going up. So, upgrading a brand from low-end to high-end. For low APU users, if I may put it bluntly, those tend to leave us to other competitors. So, the remaining high APU users help us to increase the APU absolute amount. And we expect the similar trend in the fourth quarter and the next year as well. So again, we want to pursue quality versus quantity when it comes to acquisition. So, I think we can give you a positive result in the future as well.
Junichi Miyakawa: Think shifting brand is key, like a Pay-toku or device discount program, which is based upon our integration with PayPay business and users who need more volume. So, integration with PayPay business and users who need more volume. So, depending on the user profile, we encourage users from one brand to the other. And I think that's one reason why APU is going up. So, upgrading a brand from low-end to high-end. For low APU users, if I may put it bluntly, those tend to leave us to other competitors. So, the remaining high APU users help us to increase the APU absolute amount. And we expect the similar trend in the fourth quarter and the next year as well. So again, we want to pursue quality versus quantity when it comes to acquisition. So, I think we can give you a positive result in the future as well.
Speaker #1: And, like, Peitoku users who need more volume. So, operation with PayPay business and users who need more volume. So, depending on the user profile, we encourage users from one brand to the other, and I think that's one reason why APU is going up.
Speaker #1: So, upgrading of brand from low end to high end. For low APU users, if I may put it bluntly, those tend to leave us to other competitors, so the remaining users help us to increase APU. High APU—expect the similar trend in the fourth quarter and the next year as well.
Speaker #1: So again, we want absolute amount, and we want to pursue quality versus quantity when it comes to acquisition. So I think we can give you a positive result in the future as well.
Speaker #1: And next, regarding the telecom question about whether the market is saturated and maybe there's no opportunity to grow further. I disagree. There are a lot of things that you can do in the telecom business.
Junichi Miyakawa: Next question is about whether a telecom market is saturated and maybe there's no opportunity to grow further. I disagree. There are a lot of things that you can do in the telecom business. For example, 5G network, once we turn our network into standalone basis, I think that would give us more options to do. And local 5G is maybe technology that we can leverage to offer more services. But finance, by chance, is growing thanks to PayPay. And initially, we supported PayPay, but recently, I think PayPay started supporting us. So I think we are looking at a good synergy effect. So not only financial sector, but also as long as there's opportunity, we want to seek collaboration opportunity with not only financial business but also other areas as well. My name is Chayama from Toyo Keizai. I have two questions.
Junichi Miyakawa: Next question is about whether a telecom market is saturated and maybe there's no opportunity to grow further. I disagree. There are a lot of things that you can do in the telecom business. For example, 5G network, once we turn our network into standalone basis, I think that would give us more options to do. And local 5G is maybe technology that we can leverage to offer more services. But finance, by chance, is growing thanks to PayPay. And initially, we supported PayPay, but recently, I think PayPay started supporting us. So I think we are looking at a good synergy effect. So not only financial sector, but also as long as there's opportunity, we want to seek collaboration opportunity with not only financial business but also other areas as well. My name is Chayama from Toyo Keizai. I have two questions.
Speaker #1: For example, 5G network—once we turn the network into standalone basis, I think that will do. And the local gives us more options too. 5G is maybe technology that we can leverage to offer more services.
Speaker #1: For finance, by chance, is growing thanks to PayPay. And initially, we supported PayPay, but recently, I think PayPay started supporting us. So, I think we are looking at a good synergy effect.
Speaker #1: So not only financial sector, but also as long as there's opportunity, we want to seek collaboration opportunity with not only financial business, but also other areas as well.
Speaker #2: My name is Chairman from
Speaker #2: Toyo Kesai. I have two, well, questions. First is about SBG's acquisition of the Digital Grip in the US. Under that, the Bandage data centers and those who are doing the business in Japan for the data centers as well.
Junichi Miyakawa: First is about SBG's acquisition of the DigitalBridge in the US. Under that, and AI data centers and those who are doing the business in Japan for the data centers as well. So for SoftBank, utilizing that DigitalBridge's assets, you think that you can do so? Or have you ever really discussed about leveraging that with the SBG? The second is about organization structure. KDDI announced the fictitious transactions recently. So including the new businesses, the acquisitions, and you have more group companies. So what is your view towards the governance? The first question is about DigitalBridge acquisition by SBG. As you said, this is our parent company's transaction. So therefore, it is too early for me to make any comments. However, right now, they are still working towards the regulatory approvals. So prior to that regulatory approvals, there is nothing that we can discuss.
Junichi Miyakawa: First is about SBG's acquisition of the DigitalBridge in the US. Under that, and AI data centers and those who are doing the business in Japan for the data centers as well. So for SoftBank, utilizing that DigitalBridge's assets, you think that you can do so? Or have you ever really discussed about leveraging that with the SBG? The second is about organization structure. KDDI announced the fictitious transactions recently. So including the new businesses, the acquisitions, and you have more group companies. So what is your view towards the governance? The first question is about DigitalBridge acquisition by SBG. As you said, this is our parent company's transaction. So therefore, it is too early for me to make any comments. However, right now, they are still working towards the regulatory approvals. So prior to that regulatory approvals, there is nothing that we can discuss.
Speaker #2: So for SoftBank, utilizing that DigitalBridge asset, do you think that you can do so, or have you ever really discussed leveraging that with SBG?
Speaker #2: The second is about organization structure. KDDI announced the fictitious transactions recently. So, including the new business acquisitions, and you have more group companies. So what is your view towards the
Speaker #2: governance? The first question is
Speaker #1: About Digital Bridge acquisition by SBG. As you said, this is our parent company's transaction. It is too early for me to make any comments. Therefore, I will refrain from commenting.
Speaker #1: However, right now, they are still working towards the regulatory approvals. So, prior to those regulatory approvals, there is nothing that we can discuss, so we haven't started our consideration yet.
Junichi Miyakawa: We haven't started our consideration yet. Once they concluded the transactions, I've asked Mr. Son that we would also like to have some time to discuss about that for collaboration. The second question is about governance. We cannot say that there is no risk for any company. It can happen to any of us. We need to do so with that assumption, so we have organized internal governance to check our group companies. If those companies are listed and they have their own rules, it is a bit difficult in terms of parent and child listed. However, whether that function is working or not is what I, as the president, need to oversee and also, yeah, supervise as well. I would like to keep that in mind. Now, we'd like to take questions from the press participating via Zoom.
Junichi Miyakawa: We haven't started our consideration yet. Once they concluded the transactions, I've asked Mr. Son that we would also like to have some time to discuss about that for collaboration. The second question is about governance. We cannot say that there is no risk for any company. It can happen to any of us. We need to do so with that assumption, so we have organized internal governance to check our group companies. If those companies are listed and they have their own rules, it is a bit difficult in terms of parent and child listed. However, whether that function is working or not is what I, as the president, need to oversee and also, yeah, supervise as well. I would like to keep that in mind. Now, we'd like to take questions from the press participating via Zoom.
Speaker #1: So once they concluded the transactions, I’ve asked Mr. Sun that we would also like to have some time to discuss about that for collaborations.
Speaker #1: So the second question is about governance. So we cannot say that there is no risk for any company. It can happen to any of us.
Speaker #1: So we need to, so with that assumption, we have organized internal governance to check our group companies. So, if those companies are listed and they have their own rules, it is a bit difficult in terms of parent and listed.
Speaker #1: So, however, whether that function is working or not is what I, as the president, need to oversee and also supervise as well. So I would like to keep that in mind.
Speaker #2: Now we'd like to take questions from the press participating via Zoom. If you have a question, please click the 'Raise Hand' button. First, Mr. Morai, a diamond, please.
Junichi Miyakawa: If you have a question, please click the raise hand button. First, Mr. Murai Diamond, please. I have two questions. First, about the new management structure starting 1 April. Shimba-san will become the chairman. I believe successor would be a younger person. Also, as of June, Mr. Imai and Mr. Fujihara will retire, according to the press release. Since SoftBank business, Yahoo BB business, Yahoo! Japan, Japan Telecom acquisition, I think SoftBank's telecom business pretty soon over 20 years and longer, those legendary managers are at the top of the management team. Miyakawa-san has been CEO for the last 5 years. Finally, your management team's succession plan is announced. In other words, it sounds like it took slow time to really rejuvenate the senior managers. Yes, Murai-san, you are very well aware of how we have been growing.
Junichi Miyakawa: If you have a question, please click the raise hand button. First, Mr. Murai Diamond, please. I have two questions. First, about the new management structure starting 1 April. Shimba-san will become the chairman. I believe successor would be a younger person. Also, as of June, Mr. Imai and Mr. Fujihara will retire, according to the press release. Since SoftBank business, Yahoo BB business, Yahoo! Japan, Japan Telecom acquisition, I think SoftBank's telecom business pretty soon over 20 years and longer, those legendary managers are at the top of the management team. Miyakawa-san has been CEO for the last 5 years. Finally, your management team's succession plan is announced. In other words, it sounds like it took slow time to really rejuvenate the senior managers. Yes, Murai-san, you are very well aware of how we have been growing.
Speaker #1: I have two questions. First, about the new management structure starting April 1st. Shinba-san will become the chairman. And I, Younger. And also, as of, I believe the successor would be June. Mr. Imai and Mr. Fujihara will retire, according to the press release.
Speaker #1: Since SoftBank business, Yahoo BB business, Waterfront Japan, Japan Telecom acquisition, I think SoftBank's telecom business—pretty soon, over 20 years, and longer—those legendary managers are at the top of the management team.
Speaker #1: And Miyakasan has been CEO for the last five years, and finally your management team's succession plan is announced. In other words, it sounds like it took a slow time to really rejuvenate the senior managers.
Speaker #1: Yes, Moraisan, you are very well growing. Imai-san, Shinba-san, and Fujihara-san, when we launched Yahoo BB 20-something years ago, those key people have been running respective businesses at the top, and we know each other very well, and it's comfortable working as the senior management team.
Junichi Miyakawa: Imai-san, Shimba-san, and Fujihara-san. When we launched Yahoo BB 20-something years ago, those key people have been running respective businesses at the top. We know each other very well, and it's comfortable working as the senior management team. But Shimba-san is in the mid-50s, excuse me, Shimba-san, 63 years old, and I am over 60. Imai-san is also in his 60s as well. This kind of senior management structure will not go forever. When I became CEO, we thought about completely changing the senior managers' structure very quickly. The first year of my CEO was when we aggressively reduced device price. We couldn't afford that back then because we needed to have those key senior managers who have expertise and experiences. We kept someone like Imai-san despite his role. Now, they are going to retire as chairman.
Junichi Miyakawa: Imai-san, Shimba-san, and Fujihara-san. When we launched Yahoo BB 20-something years ago, those key people have been running respective businesses at the top. We know each other very well, and it's comfortable working as the senior management team. But Shimba-san is in the mid-50s, excuse me, Shimba-san, 63 years old, and I am over 60. Imai-san is also in his 60s as well. This kind of senior management structure will not go forever. When I became CEO, we thought about completely changing the senior managers' structure very quickly. The first year of my CEO was when we aggressively reduced device price. We couldn't afford that back then because we needed to have those key senior managers who have expertise and experiences. We kept someone like Imai-san despite his role. Now, they are going to retire as chairman.
Speaker #1: But Shinbasan is in the mid-50s—excuse me, 60. Shinbasan, 63 years old. And I am over 60, and Imai-san is also in his 60s as well.
Speaker #1: So this kind of senior management structure will not go forever. When I became CEO, completely change the senior managers', we thought about structure very quickly.
Speaker #1: But the first year of my CEO was when we aggressively reduced device price. So we couldn't afford that back then, because we needed to have those key senior managers who have expertise and experience.
Speaker #1: So we kept someone like Imai-san despite his role. But now they are going to retire as chairman. We have been trying to figure out the best—see in our financial results, we timing and as you can—are already team and I consulted with Mr. Sun for advice, because Mr. Sun was one of our shareholders and he disagreed first, and he was like, "I didn't know those younger to change the executive guys." And I said that it's not a matter of you know them or not.
Junichi Miyakawa: We have been trying to figure out the best timing. As you can see in our financial results, we are ready to change the executive team. I consulted with Mr. Son for advice because Mr. Son was one of our shareholders. He disagreed first. He was like, "I didn't know those younger guys." I said that it's not a matter of you know them or not. While I am still at the realm of the SoftBank senior management team, I would like to have those younger executives to get prepared. So again, now is the time to change the senior management team. That's my simple answer. So Fujihara-san, you have been building SoftBank telecom business from scratch. Can I hear from Fujihara-san? Well, actually, I'm going to ask Fujihara-san to give you a few words later.
Junichi Miyakawa: We have been trying to figure out the best timing. As you can see in our financial results, we are ready to change the executive team. I consulted with Mr. Son for advice because Mr. Son was one of our shareholders. He disagreed first. He was like, "I didn't know those younger guys." I said that it's not a matter of you know them or not. While I am still at the realm of the SoftBank senior management team, I would like to have those younger executives to get prepared. So again, now is the time to change the senior management team. That's my simple answer. So Fujihara-san, you have been building SoftBank telecom business from scratch. Can I hear from Fujihara-san? Well, actually, I'm going to ask Fujihara-san to give you a few words later.
Speaker #1: While I am still at the realm of the SoftBank senior management team, I would like to have those younger executives get prepared. So again, now is the time to change the senior management team.
Speaker #1: That's my simple answer. So, Fujihara-san, you have been building SOFTBANK telecom business from scratch, so can I hear from Fujihara-san? Well, actually, I'm going to ask Fujihara-san to give you a few words later, so then my cloud business, next question.
Junichi Miyakawa: So then my next question about cloud business. You're going to launch the cloud business in April 2026, you said. Could you elaborate on that? Sovereign AI is, I think, what you're talking about by keeping data centers in Japan. I wonder what kind of potential customers are you looking at? Or have you already signed a deal with any companies? And also, how do you work with OpenAI? Because you are going to have OpenAI's, sorry, SoftBank's and OpenAI joint venture. Yes, like I said, we are looking at launching cloud service sometime next year. And now, our OS is ready. We're talking about sovereign data center, sovereign cloud, and sovereign AI. Those are the tools that we build next-generation social infrastructure. And we have been preparing for a long time to do this. And who would be the potential customers? Well, we don't assume any potential enterprise customers.
Junichi Miyakawa: So then my next question about cloud business. You're going to launch the cloud business in April 2026, you said. Could you elaborate on that? Sovereign AI is, I think, what you're talking about by keeping data centers in Japan. I wonder what kind of potential customers are you looking at? Or have you already signed a deal with any companies? And also, how do you work with OpenAI? Because you are going to have OpenAI's, sorry, SoftBank's and OpenAI joint venture. Yes, like I said, we are looking at launching cloud service sometime next year. And now, our OS is ready. We're talking about sovereign data center, sovereign cloud, and sovereign AI. Those are the tools that we build next-generation social infrastructure. And we have been preparing for a long time to do this. And who would be the potential customers? Well, we don't assume any potential enterprise customers.
Speaker #1: You're going to launch the cloud business in April 2026, you said? Could you elaborate on that? So I think what you're talking about by keeping data centers in Japan—I wonder, what kind of potential customers are you looking at, or have you already signed a deal with any companies?
Speaker #1: Also, how do you and work with OpenAI? Because you are going to have OpenAI's—sorry, SoftBank and OpenAI joint venture. Yes, like I said, we are looking at launching cloud service sometime next year.
Speaker #1: And now our OS is ready. While talking about sovereign data centers, sovereign cloud, and sovereign AI, those are the tools that we build for next-generation social infrastructure.
Speaker #1: And we have been preparing for a long time to do this. And who would be the potential customers? Well, we don't have to assume any potential enterprise customers.
Speaker #1: In Japan, at the moment, in general, enterprise services—and I would like them to look at us as one of the options. In 2001, when we started Yahoo BB and SOFTBANK, and I was CTO then.
Junichi Miyakawa: In Japan at the moment, in general, enterprises use overseas cloud services. I would like them to look at us as one of the options. In 2001, when we started Yahoo BB and SoftBank, and I was CTO then, and cloud would be the key competitive market we understood, but we didn't get started. We were really busy building telecom business even though we expected cloud to come. I think now is the last opportunity to do this. Two years ago, we started building software. Finally, we are ready. Test result shows very positive. That's why we made this announcement. Going forward, we want to present as a cloud operator even in Japan. About collaboration with OpenAI in crystal intelligence. Well, that's a different story. OpenAI is doing agentic AI. The SoftBank KK, SoftBank Corp., is looking at sovereign data center and sovereign cloud.
Junichi Miyakawa: In Japan at the moment, in general, enterprises use overseas cloud services. I would like them to look at us as one of the options. In 2001, when we started Yahoo BB and SoftBank, and I was CTO then, and cloud would be the key competitive market we understood, but we didn't get started. We were really busy building telecom business even though we expected cloud to come. I think now is the last opportunity to do this. Two years ago, we started building software. Finally, we are ready. Test result shows very positive. That's why we made this announcement. Going forward, we want to present as a cloud operator even in Japan. About collaboration with OpenAI in crystal intelligence. Well, that's a different story. OpenAI is doing agentic AI. The SoftBank KK, SoftBank Corp., is looking at sovereign data center and sovereign cloud.
Speaker #1: Cloud would be the key competitive use. Overseas, cloud was understood, but we didn't get started. We were really market— we were busy building the telecom business, even though we expected cloud to come.
Speaker #1: I think now is the last opportunity to do this. And two years ago, we started building software, and finally we are ready. And test results show very positive—that's why we made this announcement.
Speaker #1: Going forward, we want to present as a cloud operator even in Japan. About collaboration with OpenAI in crystal intelligence—well, that's a different front.
Speaker #1: Story . OpenAI is doing Asian chick AI and the SoftBank . SoftBank Corp is looking at sovereign data center and sovereign cloud . We are in the different SoftBank , K.K.
Junichi Miyakawa: We are in different areas, if you will. But keeping data in Japan, which is what we call sovereign AI or sovereign data center, that's very important in Japan for mid-long term. Of course, global companies may have a different view globally. But as a SoftBank Corp., building next-generation social infrastructure in Japan is the theme. So there are things that we can work with OpenAI in that respect or maybe not in other respect. Now, we would like to take questions from analysts and institutional investors joining via Zoom. Masunose, Nomura Securities, please unmute and ask your questions, please. We would like to take questions from Tokunaga Son, Daiwa Securities. Please unmute and ask your questions, please. I have two questions. First is about the upwardly revised results. So I believe there was a comment that you would like to also use it for the shareholders' return.
Junichi Miyakawa: We are in different areas, if you will. But keeping data in Japan, which is what we call sovereign AI or sovereign data center, that's very important in Japan for mid-long term. Of course, global companies may have a different view globally. But as a SoftBank Corp., building next-generation social infrastructure in Japan is the theme. So there are things that we can work with OpenAI in that respect or maybe not in other respect. Now, we would like to take questions from analysts and institutional investors joining via Zoom. Masunose, Nomura Securities, please unmute and ask your questions, please. We would like to take questions from Tokunaga Son, Daiwa Securities. Please unmute and ask your questions, please. I have two questions. First is about the upwardly revised results. So I believe there was a comment that you would like to also use it for the shareholders' return.
Speaker #1: , SoftBank Corp is looking at data sovereign center and sovereign cloud . We are in the different . Areas , if you will .
Speaker #1: Keeping the data in Japan is what we, which AI sovereign call, or sovereign data center. That's very important in Japan for mid to long term.
Speaker #1: Of course , global companies . May have different view globally , but as a SoftBank Corp social building next infrastructure , social are the theme .
Speaker #1: Infrastructure in, with... is-- So, there we can, OpenAI work, that respect, or maybe Japan are not other in respect.
Speaker #2: We would like to take questions from now. We invite analysts and institutional investors joining via Zoom. Some number of securities—please unmute and ask your questions.
Speaker #2: are We would like to take questions from Tokunaga San Dimas Securities . Please unmute and ask Please questions . . I have two questions .
Speaker #2: Please Please .
Speaker #3: you looking That .
Speaker #2: First is about to your revised the upwardly results . your So there I believe you would like there comment that to was a also for use it the .
Junichi Miyakawa: So if there was no ASKUL incident, and you would have considered shareholders' return as well? At the end of second quarter, we had expected that we would have better results. So therefore, we were just about to start discussion about shareholders' return. And once the figure catches up, then we would like to proactively do that if there was possibility. Yes, there was. The second question is about cloud business. And you said that you would like to play big and also looking at the overseas business. However, looking at overseas, and already overseas players are going ahead. So overseas, you mentioned, is about Southeast Asia or the US? From now on, even if we try to compete with GAFA with the same model, we are not going to win. Therefore, we would like to take a different way.
Junichi Miyakawa: So if there was no ASKUL incident, and you would have considered shareholders' return as well? At the end of second quarter, we had expected that we would have better results. So therefore, we were just about to start discussion about shareholders' return. And once the figure catches up, then we would like to proactively do that if there was possibility. Yes, there was. The second question is about cloud business. And you said that you would like to play big and also looking at the overseas business. However, looking at overseas, and already overseas players are going ahead. So overseas, you mentioned, is about Southeast Asia or the US? From now on, even if we try to compete with GAFA with the same model, we are not going to win. Therefore, we would like to take a different way.
Speaker #2: Holders' return. So if there is no Usko incident and you would have considered your shareholders' return as well.
Speaker #3: Q2 .
Speaker #2: At the end of the second quarter, we had expected that we would have better results. So, therefore, we were just about to start discussions about returns to shareholders, and once that was up, then we would.
Speaker #2: I'd like to proactively catch if there was a possibility. Yes, there was. Second, to do that is to think about business. And you said that you would like to go big and are also looking at the overseas business; however, looking at it, players are going ahead.
Speaker #2: play So overseas , you is about the already Southeast Asia overseas or the US . mentioned From now on . Even try we doing to to compete with if with the same model , we are not going to win .
Junichi Miyakawa: And we are in a better position in terms of understanding the telecommunications field and distributed data centers or AI around at the base stations. So that kind of unique approach is what we have taken this time. With that view, so there are industries welcoming this approach, not from the consumer segment, but we would like to approach to the B2B so that we can leverage our strengths. So from the B2B, we would like to approach to. As for the GPUs, Sakai, Tomakomai, you think it's sufficient for these two data centers? Of course. Sakai is a big investment for us, plus Tomakomai. And for AI-RAN, we would like to also allocate GPUs as the same number of base stations means that we will be using more AI-RAN. And also, we are preparing for building. Thank you. That concludes Q&A session.
Junichi Miyakawa: And we are in a better position in terms of understanding the telecommunications field and distributed data centers or AI around at the base stations. So that kind of unique approach is what we have taken this time. With that view, so there are industries welcoming this approach, not from the consumer segment, but we would like to approach to the B2B so that we can leverage our strengths. So from the B2B, we would like to approach to. As for the GPUs, Sakai, Tomakomai, you think it's sufficient for these two data centers? Of course. Sakai is a big investment for us, plus Tomakomai. And for AI-RAN, we would like to also allocate GPUs as the same number of base stations means that we will be using more AI-RAN. And also, we are preparing for building. Thank you. That concludes Q&A session.
Speaker #2: Therefore, we would like to take a GAFA, overseas way, and are we in a better position in terms of understanding the telecommunications field and.
Speaker #2: Distributed data, like centers or AI, run at different base stations. So that kind of unique approaches we have taken this time.
Speaker #2: With that view . So there are industries welcoming this approach not from the consumer . Segment . But like to we approach to the B2B we can leverage our would strengths .
Speaker #2: from So the B2B so that . We would like to approach to . For the GPUs , Sakai , it's Tomakomai , you for think sufficient these two data centers ?
Speaker #2: Of course, Sakai is a big investment for us. Plus Tomakomai, and for AI run. We would like to also allocate the GPUs. The same number of base stations means that we will be using more AI, run, and also we are preparing for.
Speaker #2: building
Junichi Miyakawa: Last but not the least, Mr. Miyakawa would like to say a few words. Fujihara has been CFO for 22 years, such a long time. He'll not be on the stage at the next earnings call. The new CFO will be here with me next time. Fujihara will be in SoftBank as senior advisor. But this is the last stage for him to stand on the podium for earnings call. Fujihara, would you like to say a few words? Fujihara, CFO. Today's earnings announcement will be my last stage. As Miyakawa introduced, I have served as CFO for 22 years. But including my parent company days, today is the 95th time I have appeared on the stage of earnings announcement.
Junichi Miyakawa: Last but not the least, Mr. Miyakawa would like to say a few words. Fujihara has been CFO for 22 years, such a long time. He'll not be on the stage at the next earnings call. The new CFO will be here with me next time. Fujihara will be in SoftBank as senior advisor. But this is the last stage for him to stand on the podium for earnings call. Fujihara, would you like to say a few words? Fujihara, CFO. Today's earnings announcement will be my last stage. As Miyakawa introduced, I have served as CFO for 22 years. But including my parent company days, today is the 95th time I have appeared on the stage of earnings announcement.
Speaker #1: Thank you .
Speaker #1: Q&A concludes the session. Last but not least, Miyakawa would like to say a few words. Fujihara-san, thank you. He has been CFO, Mr. Fujihara, for years.
Speaker #1: Time, 22, for such a— And he'll not be on the stage at the next earnings call. And the new CEO will be here with me next time.
Speaker #1: And Fujihara will be at SoftBank as Senior Advisor. But this is the last stage for him. To stand on the podium for the earnings call, Fujihara-san would like to say a few words.
Speaker #1: Fujihara CFO: Today's earnings announcement will be my last stage as an introducer. I have served as CFO for 22 years, but including the parent company, my days...
Junichi Miyakawa: When I took office as CFO, I was in a situation with an operating deficit of JPY 100 billion at ADSL, Nippon Telecom, Vodafone Japan, Viewcom, eAccess, and Yamphi Japan, LINE, PayPay. They became members of SoftBank together with those teams. Under the leadership of President Miyakawa, we have grown into a company that can achieve an operating profit of JPY 1 trillion this fiscal year. This year is the last year of the current medium-term plan. We were able to celebrate the milestone of JPY 10 trillion in total market cap. For myself, I see it as the closure of one chapter. Next year is the starting year of the next mid-long-term plan. I am confident that SoftBank will be able to achieve further growth by focusing on AI. I trust my successor, Akiyama, to steer the wheel.
Junichi Miyakawa: When I took office as CFO, I was in a situation with an operating deficit of JPY 100 billion at ADSL, Nippon Telecom, Vodafone Japan, Viewcom, eAccess, and Yamphi Japan, LINE, PayPay. They became members of SoftBank together with those teams. Under the leadership of President Miyakawa, we have grown into a company that can achieve an operating profit of JPY 1 trillion this fiscal year. This year is the last year of the current medium-term plan. We were able to celebrate the milestone of JPY 10 trillion in total market cap. For myself, I see it as the closure of one chapter. Next year is the starting year of the next mid-long-term plan. I am confident that SoftBank will be able to achieve further growth by focusing on AI. I trust my successor, Akiyama, to steer the wheel.
Speaker #1: Today is the 95th time I have appeared on stage earning an announcement. When I took office as CFO, I was in an operating deficit of ¥100 billion at an ADSL situation with Nippon Telecom. Vodafone Japan will calm access and Japan Line PayPay.
Speaker #1: They became members of SoftBank together with those teams under the leadership of Mikawa. We have a company that can achieve an operating profit of ¥1 trillion this fiscal year, grown into a year.
Speaker #1: Of the current year, as we planned, we celebrate a medium-term market milestone: the total of cap. For myself, I am able to see the closure of the next chapter as the next year, the long-term plan, is one year out.
Speaker #1: I am confident that SoftBank will be able to achieve further growth by focusing on AI. I trust my successor, Akiyama-san, to steer the wheel, and I believe that he will support President Miyakawa and realize his vision for SoftBank's next growth.
Junichi Miyakawa: I believe that he will support President Miyakawa and realize his next growth. Finally, I'd like to say I have received a lot of inspiration from everyone through the earnings announcement. That helped me to grow. That helped SoftBank to grow. I truly appreciate your support. I look forward to working with SoftBank in the future. Your support continuously would be highly appreciated. Thank you. You would achieve 100th earnings announcement with five more. But joking aside, thank you very much, Fujihara-san. Thank you very much for you coming to SoftBank Corp., FY 2026, Q3 earnings announcement. This presentation will be distributed on demand on our corporate website. Once again, thank you very much for joining us at FY 2026 Q3 earnings results announcement. Thank you.
Junichi Miyakawa: I believe that he will support President Miyakawa and realize his next growth. Finally, I'd like to say I have received a lot of inspiration from everyone through the earnings announcement. That helped me to grow. That helped SoftBank to grow. I truly appreciate your support. I look forward to working with SoftBank in the future. Your support continuously would be highly appreciated. Thank you. You would achieve 100th earnings announcement with five more. But joking aside, thank you very much, Fujihara-san. Thank you very much for you coming to SoftBank Corp., FY 2026, Q3 earnings announcement. This presentation will be distributed on demand on our corporate website. Once again, thank you very much for joining us at FY 2026 Q3 earnings results announcement. Thank you.
Speaker #1: Finally, I would like to say that I have received a lot of inspiration from everyone through the earnings announcement, and that has helped me to grow.
Speaker #1: And helped SoftBank to grow . I truly appreciate your support that and I look forward to working with SoftBank in the future . And your support continuously would be highly appreciated .
Speaker #1: Thank you, would achieve. You 100 100th earnings as with five more, but joking aside, thank you very much. For, thank you very much, Jerusalem.
Speaker #1: for you coming to SoftBank Corp. FY 2026 , third quarter earnings announcement . This presentation will be on demand on website . corporate our Once again , thank you very much for joining us at FY 26 .