SoftBank Group Q3 2025 SoftBank Group Corp Investor Briefing | AllMind AI Earnings | AllMind AI
Q3 2025 SoftBank Group Corp Investor Briefing
Speaker #1: 皆様、大変お待たせいたしました。
Operator: 皆様、会見をお待たせいたしました。
Operator: Thank you for waiting. We will now begin the investor meeting for the third quarter of the fiscal year 2026, hosted by SoftBank Corp. Let me start by introducing today's speakers: Mr. Fujihara, Director, Executive Vice President, and CFO SoftBank Corp.; Mr. Akiyama, Vice President, Head of Finance Unit; Mr. Onoguchi, Head of the Finance and Accounting Division, Finance Unit; Mr. Sasaki, Senior Director, Financial AI Promotion Office, Finance Unit. Today's meeting is also being streamed live online. Thank you for tuning in. Now, Mr. Fujihara will provide an overview of SoftBank's consolidated financial results.
Kazuhiko Fujihara: Thank you for waiting. We will now begin the investor meeting for the third quarter of the fiscal year 2026, hosted by SoftBank Corp. Let me start by introducing today's speakers: Mr. Fujihara, Director, Executive Vice President, and CFO SoftBank Corp.; Mr. Akiyama, Vice President, Head of Finance Unit; Mr. Onoguchi, Head of the Finance and Accounting Division, Finance Unit; Mr. Sasaki, Senior Director, Financial AI Promotion Office, Finance Unit. Today's meeting is also being streamed live online. Thank you for tuning in. Now, Mr. Fujihara will provide an overview of SoftBank's consolidated financial results. We announced the financial results earlier today, and I'd like to share with you more in detail about our financial performance. Once again, thank you very much for coming despite busy schedule. This is the executive summary. Revenue increased in all segments, and it hit record high. Revenue and profit increased.
Speaker #2: Thank you for waiting. We will now begin the investor briefing for the third quarter of the fiscal year 2026, hosted by SOFTBANK GROUP CORP. Let me start by introducing today's speakers.
Speaker #2: Mr. Fujihara, Director, Executive Vice President, and CFO, SOFTBANK CORP.; Mr. Akiyama, Vice President, Head of Finance Unit; Mr. Onoguchi, Head of the Finance and Accounting Division, Unit.
Speaker #2: Mr. Fujihara, Director, Executive Vice President, and CFO, SOFTBANK CORP.; Mr. Akiyama, Vice President, Head of Finance Unit; Mr. Onoguchi, Head of the Finance and Accounting Division, Finance Unit; Mr. Sasaki, Senior Promotion Office, Finance Director, Financial AI Unit.
Speaker #2: Today's meeting is also being streamed live online. Thank you for tuning in. Now, Mr. Fujihara will provide an overview of SoftBank's consolidated financial results.
Kazuhiko Fujihara: We announced the financial results earlier today, and I'd like to share with you more in detail about our financial performance. Once again, thank you very much for coming despite busy schedule. This is the executive summary. Revenue increased in all segments, and it hit record high. Revenue and profit increased. Accordingly, we revised the full-year forecast for fiscal year 2025. We want to give an update, especially because of the impact from ASKUL. Operating income in financial segment doubled, and we received high external ESG ratings. Okay, let me deep go into this. Results for the third quarter: revenue and profit increased. Steady progress toward full-year forecast for all segments, especially operating income: 88.4%, and net income: 89.9%. We see a high progress rate toward the full-year forecast. Let me give you a breakdown. Revenue increased by 8%, was JPY 383 billion. Progress toward full-year forecast of JPY 6.7 trillion was 77.5%. Financial and distribution achieved a more than 20% increase. For media, excluding ASKUL's third-quarter revenue decline of JPY 63 billion, media and EC represented an increase of 6.7%, so more of this contribution was there. Now, EBITDA. Again, we see steady growth, and we hit the record high.
Speaker #2: We announced the financial results earlier today. And, I'd like to share with our financial performance. Once again, thank you very much for coming despite busy you more in detail about schedule.
Speaker #2: Revenue increased. This is executive in all and hit record segments. Revenue and profit are high and increased. Accordingly, we revised our full-year forecast for fiscal year 2025.
Kazuhiko Fujihara: Accordingly, we revised the full-year forecast for fiscal year 2025. We want to give an update, especially because of the impact from ASKUL. Operating income in financial segment doubled, and we received high external ESG ratings. Okay, let me deep go into this. Results for the third quarter: revenue and profit increased. Steady progress toward full-year forecast for all segments, especially operating income: 88.4%, and net income: 89.9%. We see a high progress rate toward the full-year forecast. Let me give you a breakdown. Revenue increased by 8%, was JPY 383 billion. Progress toward full-year forecast of JPY 6.7 trillion was 77.5%. Financial and distribution achieved a more than 20% increase. For media, excluding ASKUL's third-quarter revenue decline of JPY 63 billion, media and EC represented an increase of 6.7%, so more of this contribution was there. Now, EBITDA. Again, we see steady growth, and we hit the record high.
Speaker #2: We want to give an update impact from ASCO. Operating income in, especially because of the, doubled. And we received high financial segment ratings. Okay, let me this.
Speaker #2: Results for the third quarter: revenue and profit forecast for all segments, especially operating. Steady progress toward full-year income—89.9%. We see a high progress rate.
Speaker #2: Toward full-year forecast. Let me give you a breakdown. Revenue increased 88.4%, and net income by 8%—was yen. Progress toward full-year forecast of ¥6.7 trillion, ¥383 billion distribution achieved—more than was increase.
Speaker #2: Media, for excluding ASCO's third quarter revenue decline of ¥63 billion, media saw an increase. Now, 6.7%, so a modest contribution to EBITDA. Again, we see 20%, and we hit the record high compared to last year.
Kazuhiko Fujihara: Compared to last year, we saw an increase of JPY 52 billion, or +3.8%. Progress toward full-year forecast is over 80%. Excluding media and EC, four segments contributed a lot. Due to ASCO's impact, media and EC present those numbers in terms of ASCO. Next, operating income. We increased JPY 62.3 billion, or 7.6%. Progress toward full-year forecast was 88.4%. Again, steady growth. Especially in the finance sector, we saw double growth. Each segment gave a contribution, but media and EC declined by 2.5%, or JPY 5 billion, because of the negative impact of ASCO, which was JPY 98.9 billion. Excluding that, however, we would have seen an increase of 7%. Now, by the segment consumer, mobile revenue continued to grow, and the revenue increased by JPY 72.2 billion, or 3.3%. Sales of goods and others increased significantly by JPY 73.2 billion, or 14.2%.
Kazuhiko Fujihara: Compared to last year, we saw an increase of JPY 52 billion, or +3.8%. Progress toward full-year forecast is over 80%. Excluding media and EC, four segments contributed a lot. Due to ASCO's impact, media and EC present those numbers in terms of ASCO. Next, operating income. We increased JPY 62.3 billion, or 7.6%. Progress toward full-year forecast was 88.4%. Again, steady growth. Especially in the finance sector, we saw double growth. Each segment gave a contribution, but media and EC declined by 2.5%, or JPY 5 billion, because of the negative impact of ASCO, which was JPY 98.9 billion. Excluding that, however, we would have seen an increase of 7%. Now, by the segment consumer, mobile revenue continued to grow, and the revenue increased by JPY 72.2 billion, or 3.3%. Sales of goods and others increased significantly by JPY 73.2 billion, or 14.2%.
Speaker #2: We saw our plus forecast is over 3.8%. Progress toward full-year is 80%. Excluding media, it contributed a lot. Due to ASCO's impact, steady growth. This represents an increase of ¥52 billion in media. EC—those numbers in terms of EC—four segments, ASCO.
Speaker #2: Income grew ¥7.6%, and next, operating progress toward the full-year forecast was 88.4%. Again, there was steady increased ¥62.3 billion growth. Especially in the finance sector, we saw double-digit contribution growth.
Speaker #2: Each segment gave by 2.5% or 5 EC declined billion. Because of that, it was $9.9 billion. Excluding that, however, we would have, but media, have been seeing an increase of 7%.
Speaker #2: Now, by the segment, consumer. Mobile revenue continued to grow, and the revenue increased by ¥72.2 billion, or 3.3%. Sales of goods and others increased significantly, ¥14.2 billion, or 14.2%.
Speaker #2: Unit price of mobile device increased significantly, and number of mobile devices also increased, resulting in substantial revenue negative impact of ASCO, which by 73.2% of diminished trading transactions, so revenue decreased.
Kazuhiko Fujihara: Unit price of mobile devices increased significantly, and the number of mobile devices also increased, resulting in substantial revenue growth. Electricity, because of diminished trading transactions, saw a revenue decrease. Broadband saw a continuous increase in subscribers. Mobile recorded JPY 26 billion, thanks to subscriber growth and improvement of ARPU. Mobile revenue, since Q3 FY 2023, we posted continuous revenue growth. We had a lot of questions about acquisition and others earlier today, but we want to grow both in revenue and profit. We continuously want to focus on increasing the top line. The consumer segment, waterfall chart. Excluding cost of goods and services, gross profit was JPY 37 billion, and expenses increased by JPY 36 billion, and acquisition cost increased by JPY 13.6 billion because of the increase of amortization. Promotion expenses increased mainly due to the more cost to support device purchase program.
Kazuhiko Fujihara: Unit price of mobile devices increased significantly, and the number of mobile devices also increased, resulting in substantial revenue growth. Electricity, because of diminished trading transactions, saw a revenue decrease. Broadband saw a continuous increase in subscribers. Mobile recorded JPY 26 billion, thanks to subscriber growth and improvement of ARPU. Mobile revenue, since Q3 FY 2023, we posted continuous revenue growth. We had a lot of questions about acquisition and others earlier today, but we want to grow both in revenue and profit. We continuously want to focus on increasing the top line. The consumer segment, waterfall chart. Excluding cost of goods and services, gross profit was JPY 37 billion, and expenses increased by JPY 36 billion, and acquisition cost increased by JPY 13.6 billion because of the increase of amortization. Promotion expenses increased mainly due to the more cost to support device purchase program.
Speaker #2: In subscribers, mobile saw continuous growth. Broadband saw an increase because of electricity.
Speaker #1: Thanks to 26 billion . and Recorded subscriber up improvement improvement . growth of app . And revenue of . through the quarter Since FY We posted 2023 .
Speaker #1: We had a lot of questions about acquisition and earlier, but we want to both grow in profit today and grow revenue continuously. We want to focus on top-line consumer growth, as well as revenue.
Speaker #1: Continuous—we had a lot of questions about acquisition and earlier, but we want both: to be in profit today and to grow revenue continuously. We want both revenue growth and top-line growth in the consumer segment.
Speaker #1: The Are waterfall on our cost of goods and . Excluding . So we Gross chart was . . promotion Of expenses 37 billion and increased service expenses by mobile and 36 billion acquisition cost by 13.6 billion .
Speaker #1: Because of increased promotional expenses to support device purchases, profit decreased due to the increase in electricity costs. As for electricity revenue, it was down, but the cost of electricity services improved by ¥35 billion.
Kazuhiko Fujihara: As for electricity, revenue down, but cost of electricity services improved by JPY 35 billion. Broadband saw a JPY 7.4 billion increase, and depreciation and others, net-net JPY 3.2 billion. Mobile increased by JPY 26 billion, and that's how it constitutes 6% of profit. Next, enterprise segment. Revenue and profit increased, steady growth. Revenue grew by 8.8%, or JPY 59 billion. Especially solutions were good, which posted a 13.1% growth, and we continue focusing on double-digit growth in this area. As for segment income, we saw an increase of JPY 17.7 billion, or 12.6%. Again, double-digit growth is our commitment. Progress to the full-year forecast is 84.1%. So enterprise continues to be driving forward for future growth. Business solutions and other revenue, especially recurring revenue, posted an 11% increase. Media and EC segment. System outage by ransomware attack at ASKUL posed a negative impact.
Kazuhiko Fujihara: As for electricity, revenue down, but cost of electricity services improved by JPY 35 billion. Broadband saw a JPY 7.4 billion increase, and depreciation and others, net-net JPY 3.2 billion. Mobile increased by JPY 26 billion, and that's how it constitutes 6% of profit. Next, enterprise segment. Revenue and profit increased, steady growth. Revenue grew by 8.8%, or JPY 59 billion. Especially solutions were good, which posted a 13.1% growth, and we continue focusing on double-digit growth in this area. As for segment income, we saw an increase of JPY 17.7 billion, or 12.6%. Again, double-digit growth is our commitment. Progress to the full-year forecast is 84.1%. So enterprise continues to be driving forward for future growth. Business solutions and other revenue, especially recurring revenue, posted an 11% increase. Media and EC segment. System outage by ransomware attack at ASKUL posed a negative impact.
Speaker #1: Broadband increased, so $7.4 billion increase in amortization.
Speaker #2: But there was
Speaker #2: in .
Speaker #1: Depreciation and others, net-net.
Speaker #1: 3.2 billion. Mobile increased by two. 26 billion.
Speaker #1: And that's consistent, at around 6% of the profit. And next, revenue increased, which constitutes steady growth in segment profit.
Speaker #1: grew revenue 8.8% . So or ¥59 billion . Especially solution was good posted , which 13.1% growth and by on double a in this area for segment income , we saw Again increase or of continue digit .
Speaker #1: ¥17.7 billion. We forecast full-year growth at 12.6%. The ratio is 84.1%. So, focusing on enterprise continues to be the driving force for digital growth in the future, as well as solutions and other revenue growth.
Speaker #1: Business 11%. Double and Media EC revenue segment at Asco, especially recurring negative outage impact. Commitment by ransomware attack in commerce saw post a loss, which was mainly due to third quarter impact of ¥9.6 billion. We posted a loss, mainly due to the impact.
Kazuhiko Fujihara: In commerce, we saw a loss of JPY 9.6 billion, which is mainly due to ASCO's third-quarter impact. But excluding that, we saw a modest growth. Media posted a slight growth in revenue, and strategy, thanks to M&A, we saw a steady growth. Segment income is shown on the right-hand side. Overall, we saw a decline by JPY 5 billion, or 2.5% year-on-year. There was some valuation gain from restructuring, which was a one-time impact. In ASCO, the negative impact was JPY 19 billion. Details were already disclosed by LINE and Yahoo, so I'm not going to go into detail here. Next, finance segment. Revenue expanded steadily. Increase of JPY 56.9 billion was 23.9%. PayPay posted double-digit growth, and income contributed JPY 32 billion, and that resulted in JPY 66 billion of segment income. Distribution segment and others.
Kazuhiko Fujihara: In commerce, we saw a loss of JPY 9.6 billion, which is mainly due to ASCO's third-quarter impact. But excluding that, we saw a modest growth. Media posted a slight growth in revenue, and strategy, thanks to M&A, we saw a steady growth. Segment income is shown on the right-hand side. Overall, we saw a decline by JPY 5 billion, or 2.5% year-on-year. There was some valuation gain from restructuring, which was a one-time impact. In ASCO, the negative impact was JPY 19 billion. Details were already disclosed by LINE and Yahoo, so I'm not going to go into detail here. Next, finance segment. Revenue expanded steadily. Increase of JPY 56.9 billion was 23.9%. PayPay posted double-digit growth, and income contributed JPY 32 billion, and that resulted in JPY 66 billion of segment income. Distribution segment and others.
Speaker #1: a that Asco's growth a posted slight growth in excluding revenue Increase saw and media saw strategy . segment to income shown on the we side ¥5 billion .
Speaker #1: , or M&A . 2.5% year Overall , year on growth We . a steady Thanks and right hand is saw by There were some evaluation decline came from was a one time And Asco .
Speaker #1: The negative impact on the system was ¥1.9 billion. And the restructuring details were already in line and disclosed, ya fu. So I'm not going to go into it by next.
Speaker #1: The segment expanded steadily but modestly, ¥56.9 billion. Finance was detailed here; revenue increased 23.9%. And PayPay posted double growth in income, contributing ¥32 billion.
Speaker #1: And in results and digit income segment, others distribution. Segment, and we see steady growth increased. That again, ¥157 billion, or 25.6% year, ¥66 billion of ¥7 billion.
Kazuhiko Fujihara: Again, we see steady growth and increased JPY 157 billion, or 25.6% year-on-year. Income increased by JPY 7 billion, or 29.2%. Progress toward full-year forecast was 96.3%. Others. Operating income. In up to Q3, we increased R&D investment by JPY 19 billion. Subsidiaries costed promotion expenses in the third quarter, but it's been recovering. For the full year, we should be able to show you a positive number. Net income. Thanks to the increase in operating income, overall, we saw an increase of JPY 48.9 billion, or 11.2% year-on-year. Progress toward full-year forecast was 89.9%. Other than operating income, financial income and loss, thanks to LOI, was JPY 15.7 billion. Absence of valuation loss of put options for equity methods associated in the previous year. Profit from sales of shares in Webtoon Entertainment Inc. That was last year's one-time event.
Kazuhiko Fujihara: Again, we see steady growth and increased JPY 157 billion, or 25.6% year-on-year. Income increased by JPY 7 billion, or 29.2%. Progress toward full-year forecast was 96.3%. Others. Operating income. In up to Q3, we increased R&D investment by JPY 19 billion. Subsidiaries costed promotion expenses in the third quarter, but it's been recovering. For the full year, we should be able to show you a positive number. Net income. Thanks to the increase in operating income, overall, we saw an increase of JPY 48.9 billion, or 11.2% year-on-year. Progress toward full-year forecast was 89.9%. Other than operating income, financial income and loss, thanks to LOI, was JPY 15.7 billion. Absence of valuation loss of put options for equity methods associated in the previous year. Profit from sales of shares in Webtoon Entertainment Inc. That was last year's one-time event.
Speaker #1: on year Or 29.2% . And full was 96.3% . progress Others . the to up operating toward the R&D 19 billion . third quarter , costed promotion .
Speaker #1: But it's been recovering and, in full, for the investment by year, we should be able to show you a positive number and net income. Thanks.
Speaker #1: To increase in operating overall, we saw an increase of ¥48.9 billion. Subsidiaries were at 11.2% year-on-year. Progress toward full-year or year forecast was 89.9%.
Speaker #1: Other than operating income , financial income and loss . Thanks to Loi expenses was third quarter , Absence of validation , loss 15.7 billion .
Speaker #1: Or put options for equity, the previous profit method income associated in from of, and company that sales last one time year's. Remember, shares to and event tax to relating pay bill also there, absence of tax restructuring in the previous. We was and improvement was year.
Kazuhiko Fujihara: Tax effects relating to PayPay were also there. SoftBank, absence of deferred tax impact from business restructuring in the previous year, we saw an improvement in income taxes. CapEx. Almost on plan. Consumer enterprise. This year's guidance was JPY 340 billion, and progress toward that full-year forecast is 67.3%. AI saw a decrease by JPY 10 billion. IFRS 16 impact increased due to the signing of lease contracts for data centers. AI computing will be described later in the slides. Since purchasing Sakai, including Tomakomai partly, also AI computing infrastructure. You can see, as of now, at the right button, total is JPY 257 billion. We are going to do the acceptance of the JPY 200 billion, and the payment is JPY 190 billion. This is funded by bond-type class shares.
Kazuhiko Fujihara: Tax effects relating to PayPay were also there. SoftBank, absence of deferred tax impact from business restructuring in the previous year, we saw an improvement in income taxes. CapEx. Almost on plan. Consumer enterprise. This year's guidance was JPY 340 billion, and progress toward that full-year forecast is 67.3%. AI saw a decrease by JPY 10 billion. IFRS 16 impact increased due to the signing of lease contracts for data centers. AI computing will be described later in the slides. Since purchasing Sakai, including Tomakomai partly, also AI computing infrastructure. You can see, as of now, at the right button, total is JPY 257 billion. We are going to do the acceptance of the JPY 200 billion, and the payment is JPY 190 billion. This is funded by bond-type class shares.
Speaker #1: Taxes SoftBank saw an impact from, CapEx deferred. Business almost on plan income enterprise. This year's guidance was ¥34 billion and in me ¥340 billion.
Speaker #1: Excuse me. And progress toward that affect our AI, by so decreased $10 billion, and I first due of least for centers. Full year or AI will computing described be later in the slides.
Speaker #1: signing contracts
Speaker #1: processing . Since
Speaker #3: Sakai including
Speaker #3: Partly Tomakomai infrastructure computing, and you can see as of now, at the bottom, total is the right.
Speaker #3: We are to do and an acceptance of ¥200 billion. And the payment, the ¥257 billion, ¥190 billion. So this is by.
Speaker #3: Going to shares class for the next long-term business meet and management type, and how we manage is, we are going to— we are funded— is bond discussion.
Kazuhiko Fujihara: For the next mid- and long-term business management plan, and how we are going to manage it, we are now in the discussion. We would like to announce in the next presentation. Regarding primary free cash flow. So as for the cash flow generation, it is our big target. So it has a steady progress. And operating cash flow increased in EBITDA, and investment cash flow also increased. As for the long-term growth investments, are funded and by the different things. So we have printed for the same reconciliation. So free cash flow and net leverage ratio are our focus. So let me explain about the net leverage ratio. First, left side, interest-bearing debt is 3.07 compared to the previous year. It's 0.12 increased year on year. And this is increased by JPY 120 billion year on year.
Kazuhiko Fujihara: For the next mid- and long-term business management plan, and how we are going to manage it, we are now in the discussion. We would like to announce in the next presentation. Regarding primary free cash flow. So as for the cash flow generation, it is our big target. So it has a steady progress. And operating cash flow increased in EBITDA, and investment cash flow also increased. As for the long-term growth investments, are funded and by the different things. So we have printed for the same reconciliation. So free cash flow and net leverage ratio are our focus. So let me explain about the net leverage ratio. First, left side, interest-bearing debt is 3.07 compared to the previous year. It's 0.12 increased year on year. And this is increased by JPY 120 billion year on year.
Speaker #3: Primary plan: free in the cash regarding announce in the next presentation for the flow generation is now. Big target. Has a progress.
Speaker #3: cash and steady 16 impact
Speaker #3: operating cash
Speaker #3: flow to So as increased in A Ebit , and the it flow our also flow increased cash . So for the investment term long as
Speaker #2: 20 .
Speaker #3: So, by the two funded growth, we are EBITDA free. So, leverage and things are different.
Speaker #3: Reconciliation: 3.07 compared to previous net 0.12 debt year on year. And year is. And this and by. And as you can see, ¥120 billion year on year, net flow leverage increased, almost flattish. Explain leverage ratio.
Speaker #3: Let me have by net, continued with cash interest.
Speaker #3: This ¥18.2 trillion compared to the last fiscal is increased by year. It's an end increase. So this is due to financial, including business M&A, you can.
Kazuhiko Fujihara: As you can see, for the net leverage ratio, it's almost flattish. Here's the balance sheet. Our balance sheet, please pay attention to this JPY 18.2 trillion compared to the last fiscal year-end. It is increased by JPY 1.9 trillion. This is due to the financial business expansion, including M&A. As you can see, the equity attributable to owners of the company and equity, this one shows JPY 211.6 billion year-over-year. Over 7 years, it has grown greatly. When you look at equity, and since we do have dividend payout, it is good to see year-over-year compared to the previous year. It has increased by almost JPY 200 billion. From here, I would like to explain about KPI. First, telecom. Mobile subscribers grew by 0.69 million by 2.2%. Just before listing, it was 2.46 million.
Kazuhiko Fujihara: As you can see, for the net leverage ratio, it's almost flattish. Here's the balance sheet. Our balance sheet, please pay attention to this JPY 18.2 trillion compared to the last fiscal year-end. It is increased by JPY 1.9 trillion. This is due to the financial business expansion, including M&A. As you can see, the equity attributable to owners of the company and equity, this one shows JPY 211.6 billion year-over-year. Over 7 years, it has grown greatly. When you look at equity, and since we do have dividend payout, it is good to see year-over-year compared to the previous year. It has increased by almost JPY 200 billion. From here, I would like to explain about KPI. First, telecom. Mobile subscribers grew by 0.69 million by 2.2%. Just before listing, it was 2.46 million.
Speaker #3: . for the And First left here's the side sheet year ratio . balance bearing . It's our So balance sheet please pay is attention .
Speaker #3: expansion as And , the to Equity . owners of the attributable to company one is This . show equity and on year so over .
Speaker #3: Years, it has drastically, greatly. So when you look at, see equity since, have we do grown dividend to pay and compared, so is 211.6 billion, year 1.9 trillion.
Speaker #3: It was a good year. It increased from the previous by two, so you see it almost here. We’d like to say about our first year; Telecom ¥200 billion from it.
Speaker #3: Grew KPI by compared to So explain . 0.69 million mobile subscribers 2.2% . before . This listing was by Just It was 2.46 million .
Kazuhiko Fujihara: It has increased by 15 million or so. Looking at the right-sided churn rate, due to the electricity churn rate, it has increased to 1.45%, 0.15% year-on-year. We hope that we can announce improvement of the result in the next quarter. Next one is the net additions. Mr. Miyakawa mentioned in the previous presentation, so net losses were recorded. This corporate change would also lead as we focus on the increased revenue and income. Next up. Year-on-year, it's -10 JPY. On the right side, it shows it was -30 JPY. Now it's -10 JPY. When we look at consumer, it's turning to positive. Including enterprise, it still shows minus. However, our forecast was -30 JPY full year. At the end of the term.
Kazuhiko Fujihara: It has increased by 15 million or so. Looking at the right-sided churn rate, due to the electricity churn rate, it has increased to 1.45%, 0.15% year-on-year. We hope that we can announce improvement of the result in the next quarter. Next one is the net additions. Mr. Miyakawa mentioned in the previous presentation, so net losses were recorded. This corporate change would also lead as we focus on the increased revenue and income. Next up. Year-on-year, it's -10 JPY. On the right side, it shows it was -30 JPY. Now it's -10 JPY. When we look at consumer, it's turning to positive. Including enterprise, it still shows minus. However, our forecast was -30 JPY full year. At the end of the term.
Speaker #3: Increased looking right, so it has the 15 million or so churn generated. It has a churn rate due to its side, so by 1.45%.
Speaker #3: Increased to year that we at the hope the improvement of. So, so next one is the upgrade. Net mentioned in the Mr. previous. So net losses were 0.15% year on, we this corporate change, and also would lead us as can announce we increased.
Speaker #3: result revenue in the quarter So next next focus Apu and . Year on year , it's right side shows with Now it's minus ten .
Speaker #3: When we at look consumer it's . So turning including on the positive . So enterprise -¥30 . additions it still in the shows our minus minus -30 full .
Speaker #3: Year forecast was, however, at the end of the Miyakawa presentation. And, term full, so recorded. We would like to maintain this -30.
Kazuhiko Fujihara: Full year forecast of -30, we would like to maintain this. Next, electricity broadband. Compared to last year, it's increased by 0.1 million. Electricity is shifting the acquisition effort. It is improving gradually. Media and EC. Both EC transaction value and group total advertising revenue expanded. Next, PayPay. Users increased steadily. The number of users exceeded 70,000. The MAU also exceeded 40 million. The number of payments increased by 18.5%. Number of payments significantly outpaced the user growth. It means that the rise in payments per person. Next, GMV. This also is going steadily and increased at 23.7%. Since the number of payments was 18.5% increase, all the businesses are increasing in every manner. Next, the PayPay Bank's deposit and loan balances also showed steady growth.
Kazuhiko Fujihara: Full year forecast of -30, we would like to maintain this. Next, electricity broadband. Compared to last year, it's increased by 0.1 million. Electricity is shifting the acquisition effort. It is improving gradually. Media and EC. Both EC transaction value and group total advertising revenue expanded. Next, PayPay. Users increased steadily. The number of users exceeded 70,000. The MAU also exceeded 40 million. The number of payments increased by 18.5%. Number of payments significantly outpaced the user growth. It means that the rise in payments per person. Next, GMV. This also is going steadily and increased at 23.7%. Since the number of payments was 18.5% increase, all the businesses are increasing in every manner. Next, the PayPay Bank's deposit and loan balances also showed steady growth.
Speaker #3: And next to that, it increased to year by 0.1 million. And electricity, electricity ¥10. Shifting the last, so acquisition effort. So, so it is gradually.
Speaker #3: users . Also of And exceeded the number of payments increased 40 million . by 18.5% . number of payments m2 user . So it growth So that the rise in means payments significantly per person so , GMV next also going steadily , this and increased at 23.7% .
Speaker #3: Since the payments number, so the all the—so it and the manner next is, every was an 18.5% increase. PayPay is deposit and loan businesses also showed steady growth, increasing, and banks.
Kazuhiko Fujihara: So as for PayPay revenue, it increased by 26.3%. Right side shows EBITDA, shows great increase. So we are looking forward to its further growth. SB Payment Service. So this business is growing steadily. And the non-telecom area is growing as we make strategy. And next is about ESG topics. So we were recognized as a prime seed company this year as well. Also in other areas, we have received a very high rating. Please take a look at this slide for the details. Next, I would like to explain about our upward revision of full year forecast. This is the summary. From revenue to net income, all of them we revised upwardly. Revenue. All segments contributed, excluding impact from system outage at ASKUL. So we were at the pace of exceeding JPY 7 trillion due to the system outage at ASKUL.
Kazuhiko Fujihara: So as for PayPay revenue, it increased by 26.3%. Right side shows EBITDA, shows great increase. So we are looking forward to its further growth. SB Payment Service. So this business is growing steadily. And the non-telecom area is growing as we make strategy. And next is about ESG topics. So we were recognized as a prime seed company this year as well. Also in other areas, we have received a very high rating. Please take a look at this slide for the details. Next, I would like to explain about our upward revision of full year forecast. This is the summary. From revenue to net income, all of them we revised upwardly. Revenue. All segments contributed, excluding impact from system outage at ASKUL. So we were at the pace of exceeding JPY 7 trillion due to the system outage at ASKUL.
Speaker #3: Revenue at PayPay increased by 26.3%. On the right side, EBITDA shows great balance increases. So we are looking forward to its growth in the payment service.
Speaker #3: . So this growing business steadily to area is growing SB as we make So is topics as for . So is . ESG strategy recognized as a prime seed .
Speaker #3: Next, I would like to explain about our upward revision of full year forecasts. Also, in other areas, we have received a very high rating. Please take a look at the slide for this. As you can see, the company has increased well this year as well.
Speaker #3: This is the summary from revenue to net non income . Of them . We revised upwardly revenue to is all segments contributed excluding impact from system at Asco were at pace of ¥7 trillion due to exceeding the system So we the outage at revised Asco .
Kazuhiko Fujihara: So we revised the variance by JPY 250 billion for revenue. As for EBITDA, mainly due to distribution and improvement in R&D and other costs. Operating income, I will explain in detail later. Net income, mainly due to the upward revision of operating income and so on. This is the details of the operating income. Upfront investment and R&D expenses were the major reasons. This concludes my presentation. Now we would like to move on to the Q&A session. Thank you. Now we will move on to the Q&A session. We will start by taking questions from the audience here in the venue, followed by participants joining us via Zoom. For those attending via Zoom, please access the meeting using the method we shared in advance and click the raise hand button if you wish to ask questions.
Kazuhiko Fujihara: So we revised the variance by JPY 250 billion for revenue. As for EBITDA, mainly due to distribution and improvement in R&D and other costs. Operating income, I will explain in detail later. Net income, mainly due to the upward revision of operating income and so on. This is the details of the operating income. Upfront investment and R&D expenses were the major reasons. This concludes my presentation. Now we would like to move on to the Q&A session. Thank you.
Speaker #3: the outage . So we ¥250 billion for for As EBITDA mainly due and improvement in distribution R&D revenue . and other variance by to , operating will income , I detail explain later .
Speaker #3: And net income, mainly due to the revision of operating income and on costs. And the details of the upward operating income, this is to.
Speaker #3: Upfront investment and R&D expenses were the major points. This concludes my remarks. Now we would move on to the Q&A session. Thank you.
Operator: Now we will move on to the Q&A session. We will start by taking questions from the audience here in the venue, followed by participants joining us via Zoom. For those attending via Zoom, please access the meeting using the method we shared in advance and click the raise hand button if you wish to ask questions. After joining via Zoom, kindly turn off the live stream from other websites to avoid audio feedback. In order to take as many questions as possible, we ask each participant to limit their questions to two per person. Tokunaga from Daiwa Securities.
Speaker #3: .
Speaker #1: Now we'll move on to the Q&A.
Speaker #1: Session reason. We start by taking audience questions from the venue, followed by participants joining us via Zoom. For those attending via Zoom, please access the session using the method we shared in advance.
Kazuhiko Fujihara: After joining via Zoom, kindly turn off the live stream from other websites to avoid audio feedback. In order to take as many questions as possible, we ask each participant to limit their questions to two per person. Tokunaga from Daiwa Securities. Today is the last investor briefing for Fujihara-san. I just want to say thank you, Fujihara-san. With that, I have two questions. I want to hear from Fujihara-san and the new CFO, Akiyama-san. Fujihara-san, what's your expectation for next-generation SoftBank? And second, Akiyama-san, do you have any resolution that you want to share with us? So I'm going to ask Akiyama-san to give you a few words lastly. From myself, Fujihara, I said goodbye at the end of earnings results announcement earlier. And SoftBank increased both in revenue and profit, and we hit the milestone of JPY 10 trillion.
Speaker #1: The Raise Hand button is for those who wish to ask a question on Zoom, after joining via Zoom.
Speaker #1: Kindly turn off the advanced and live stream likes from others.
Speaker #1: Avoid feedback. You here take as many questions as we meeting participant to limit the click. In order, question to person, ask each.
Kazuki Tokunaga: Today is the last investor briefing for Fujihara-san. I just want to say thank you, Fujihara-san. With that, I have two questions. I want to hear from Fujihara-san and the new CFO, Akiyama-san. Fujihara-san, what's your expectation for next-generation SoftBank? And second, Akiyama-san, do you have any resolution that you want to share with us? So I'm going to ask Akiyama-san to give you a few words lastly.
Speaker #1: Tokunaga from Diverse Securities is the
Speaker #1: investor possible , my
Speaker #1: for briefing Fujihara . Sam , I just want presentation to say thank you . Fujihara two per . With that , I San two questions .
Speaker #1: I want to hear from Fujihara-san today, and from Akiyama-san, the CFO. What are your expectations for the next generation of SoftBank? Do you have a second view, San?
Speaker #1: any resolution that you want to share us ? with So I'm ask Akimasa to give you a few Akiyama . Lastly , from going to myself , Jahara words new .
Kazuhiko Fujihara: From myself, Fujihara, I said goodbye at the end of earnings results announcement earlier. And SoftBank increased both in revenue and profit, and we hit the milestone of JPY 10 trillion.We are ready for our next leap. Talking about AI, in the last 10, 20 years, we have been transforming ourselves, and AI will bring us even greater changes. I think AI will determine the next 10 years of SoftBank. So again, I have high expectations from the new leadership team, and whatever I can help, I will do my best. Thank you, Fujihara-san. Second question. More in short term. Looking at the plan for operating income Q4, Consumer expected a little bit of loss, and the other segment also a loss. So I think others are expected to lose money in the Q4. So Consumer would lose profit a little bit, and also you expect others to suffer from revenue loss. Well, Consumer, we are working on restructuring, and whatever we can do by the end of this fiscal year, we will try to implement.
Speaker #1: I said goodbye at the Sun end earnings results announcement earlier, and the SoftBank increased both in revenue. Profit, we hit the milestone of ¥10 trillion.
Kazuhiko Fujihara: We are ready for our next leap. Talking about AI, in the last 10, 20 years, we have been transforming ourselves, and AI will bring us even greater changes. I think AI will determine the next 10 years of SoftBank. So again, I have high expectations from the new leadership team, and whatever I can help, I will do my best. Thank you, Fujihara-san. Second question. More in short term. Looking at the plan for operating income Q4, Consumer expected a little bit of loss, and the other segment also a loss. So I think others are expected to lose money in the Q4. So Consumer would lose profit a little bit, and also you expect others to suffer from revenue loss. Well, Consumer, we are working on restructuring, and whatever we can do by the end of this fiscal year, we will try to implement.
Speaker #1: We are ready for a leap. Talking about AI in the last, next of 10, 20 years, we have been transforming ourselves and will bring us an even more greater transformation.
Speaker #1: And I think AI will determine the next ten years of SoftBank. So again, I have high expectations from the new leadership team changes and help.
Speaker #1: I will do my whatever best I can Fujihara will . Thank Second question . In short San . term . Looking more the operating , fourth quarter consumer expected bit loss and other at segment .
Speaker #1: Also plan you . . A loss . So I income think others is expected to lose money in the fourth quarter . would profit a little bit .
Speaker #1: And you expect also others to suffer from revenue. Well, we lost consumers for on restructuring and end of fiscal year to try working, whatever we, and so lose 150 billion by this year is consumer a little definitely possible are.
Kazuhiko Fujihara: JPY 150 billion by this year is definitely possible. The other segment. There are a lot of uncertainties, including Asuko's potential lingering impact. So others and investment may seem big numbers, but we have some buffer included to get ready for next year. The consumer's preparation in terms of preparation. Consumer, in which area you prepare for? Network, marketing expenses, or what? This is not a thing specific, but in general, we want to get ready. When it comes to acquisition cost, for example, if we can spend the cost efficiently, we wouldn't mind spending acquisition cost, but we just want to make sure that our plan is doable. Thank you. Next, Daisaku Masuno from Nomura Securities. Please unmute and ask your questions. Thank you. Sorry, my microphone setting previously was wrong. First of all, Mr. Fujihara, thank you so much for all your contribution.
Kazuhiko Fujihara: JPY 150 billion by this year is definitely possible. The other segment. There are a lot of uncertainties, including Asuko's potential lingering impact. So others and investment may seem big numbers, but we have some buffer included to get ready for next year. The consumer's preparation in terms of preparation. Consumer, in which area you prepare for? Network, marketing expenses, or what? This is not a thing specific, but in general, we want to get ready. When it comes to acquisition cost, for example, if we can spend the cost efficiently, we wouldn't mind spending acquisition cost, but we just want to make sure that our plan is doable.
Speaker #1: And other segment . are a lot of There uncertainties , including Asco's potential , can do by the this lingering impact . So will .
Speaker #1: Others and investment big implement numbers, but we have some buffer included to be ready for next. The consumers' preparation in terms may get preparation of—in which area you foresee are marketing expenses, or what?
Speaker #1: There's not a specific thing to prepare, but in general, we want the network to get ready when it comes to acquisition costs. For example.
Speaker #1: If we can spend the cost efficiently, we wouldn't be spending costs on acquisition. But, mind, to make sure that what we want is just that our plan is doable.
Operator: Thank you. Next, Daisaku Masuno from Nomura Securities. Please unmute and ask your questions.
Speaker #1: Thank .
Daisaku Masuno: Thank you. Sorry, my microphone setting previously was wrong. First of all, Mr. Fujihara, thank you so much for all your contribution.
Speaker #3: Sensei, must now move on from Next, Nomura Securities. Please unmute and ask your questions. Thank you. Previously, there was a microphone setting issue.
Speaker #3: Sorry . My wrong First of all , Mr. Fujihara , thank you was . you so much your for contribution . Even after your retirement , you all be staying in a will certain position .
Kazuhiko Fujihara: Even after your retirement, you will be staying in a certain position. So I'm looking forward to still communicating with you. So my question: The earnings results of the midterm last September, already you. So after September to December, over that three months, how did you change the direction? Since the churn rate increased, you drastically changed the direction. So you made quite a drastic change. So what made you do so? Since September, we started looking ahead. And in Q3, we started shifting our direction. Acquisition cost and lifetime value, the balance between these two, actually, it does not really make sense. So we objectively reviewed the situation to shift our direction. So as for the consumer segment, it's been stable, the business. Therefore, our approach. So we changed our approach, including the acquisition as well.
Daisaku Masuno: Even after your retirement, you will be staying in a certain position. So I'm looking forward to still communicating with you. So my question: The earnings results of the midterm last September, already you. So after September to December, over that three months, how did you change the direction? Since the churn rate increased, you drastically changed the direction. So you made quite a drastic change. So what made you do so?
Speaker #3: I'm looking forward to communicating with you. My question is about the earnings results of mid-term last September. Already at that time, you addressed the rate change. So, after September, over the three months from September to December, how did you change direction since the rate you addressed changed?
Speaker #3: So you direction quite the drastic change. So what made you do so? Since September, we started to look at churn and saw it increased. The third quarter, we started shifting our direction.
Kazuhiko Fujihara: Since September, we started looking ahead. And in Q3, we started shifting our direction. Acquisition cost and lifetime value, the balance between these two, actually, it does not really make sense. So we objectively reviewed the situation to shift our direction. So as for the consumer segment, it's been stable, the business. Therefore, our approach. So we changed our approach, including the acquisition as well.
Speaker #3: made Acquisition and lifetime value . The balance between these two it does . Actually , not sense . So make we reviewed the shift our situation .
Speaker #3: as objectively for the consumer direction been it's stable . The therefore cost our And approach to is so we we changed approach our , including the acquisition as well .
Kazuhiko Fujihara: We need to continue brushing up towards the next fiscal year as well. The churn rate, 1.38%. The churn rate in the third quarter, it could have exceeded even 1.4%. Just by looking at the churn rate, the figure itself, it could have even exceeded further. What happened within SoftBank? ESIM users canceled in a very short term. Is there anything unique? And what is the countermeasure that you have? Going back to the last second half of the last year, our acquisition was doing well with the good net additions. Those users' cancellation actually appeared more clearly in this quarter. So far, our acquisition was doing really well. Therefore, it showed quite a big negative figure. Our intention is to take actions when we see the challenges.
Kazuhiko Fujihara: We need to continue brushing up towards the next fiscal year as well. The churn rate, 1.38%. The churn rate in the third quarter, it could have exceeded even 1.4%. Just by looking at the churn rate, the figure itself, it could have even exceeded further. What happened within SoftBank? ESIM users canceled in a very short term. Is there anything unique? And what is the countermeasure that you have? Going back to the last second half of the last year, our acquisition was doing well with the good net additions. Those users' cancellation actually appeared more clearly in this quarter. So far, our acquisition was doing really well. Therefore, it showed quite a big negative figure. Our intention is to take actions when we see the challenges.
Speaker #3: need the churn And even just so , by looking the at look third quarter , the 1.4% . rate , the figure churn itself , it could have even further .
Speaker #3: continue to have . So brushing towards we up fiscal year as well . So business rate 1.38 , the in the it could exceeded next four .
Speaker #3: What percent of churn happened within SoftBank? Is there anything unique about users who canceled in a very short term? So, the churn rate exceeded—what was it?
Speaker #3: And what countermeasure do they have? Going back to the last—our second half of the doing last was with the well, good net additions, acquisition seems those year, and in the users.
Speaker #3: Cancellation appeared more in the is the clearly you quarter . So our . acquisition was well . far So . So Therefore really quite a So doing negative intention take we see challenges .
Kazuhiko Fujihara: So that's why we decided to shift our direction to this. Those who purchased a number of lines and those who have a very short-term contract, so it was the bottleneck. What did you actually change? We made it more strict for those potential users. We reviewed our policies. Thank you. Next, Kikuchi-san, SMBC Nikko Securities. You confidently explained the reasons behind net loss. From my perspective, it was amazing. Like Masuno-san earlier asked you, ARPU is not really going steadily, and you see increase in churn. And in Q4. Well, even though you revised your forecast a little bit, still very small upgrade. Again, in Q4, are there any reasons why you have to cost?
Kazuhiko Fujihara: So that's why we decided to shift our direction to this. Those who purchased a number of lines and those who have a very short-term contract, so it was the bottleneck. What did you actually change? We made it more strict for those potential users. We reviewed our policies.
Speaker #3: So the shift it figure . is to our decided to this . big So those who are a of that's lines why we and to our those who purchase has a short very term contract .
Speaker #3: So, actions—what's the bottleneck? When, so what actually? So, we made it more—did you change the number, made it more strict for potential users?
Operator: Thank you. Next, Kikuchi-san, SMBC Nikko Securities. You confidently explained the reasons behind net loss. From my perspective, it was amazing. Like Masuno-san earlier asked you, ARPU is not really going steadily, and you see increase in churn. And in Q4. Well, even though you revised your forecast a little bit, still very small upgrade. Again, in Q4, are there any reasons why you have to cost? Or you just operate a business in a very healthy manner, or there are any things that you may have to cost a lot in the fourth quarter? So again, to me, your upward revision was still very small.
Speaker #3: Our policies—those are reviewed and direction.
Speaker #1: Explained perspective, it was an annual amazing loss. Behind, like emotional, asked you up. Thank you, really going steadily. And you see, in churn earlier.
Speaker #1: in the fourth quarter sound Well , even though you . forecast your a little bit not , still very small . Grade . So in the are there fourth quarter , any why you voiced have .
Kazuhiko Fujihara: Or you just operate a business in a very healthy manner, or there are any things that you may have to cost a lot in the fourth quarter? So again, to me, your upward revision was still very small. Yes, a slight increase, that's for sure. So maybe it's too small to call it upward revision. But on the other hand, Asuko's impact needs to be absorbed to share with you updated forecast. So that's how it happened. And the upward revision is rather conservative. In other words, we are having our business under control. And Fujihara-san, I have trusted you a lot. So I always wonder how you operate as CFO while looking at potential dividend and looking at investment. But in the next mid-long-term plan, you may want to aggressively invest, and you may want to aggressively return to shareholders.
Speaker #2: .
Speaker #1: Or are you just in to operate a business in a healthy manner, or are there any things that you may have to look at in the fourth quarter?
Kazuhiko Fujihara: Yes, a slight increase, that's for sure. So maybe it's too small to call it upward revision. But on the other hand, Asuko's impact needs to be absorbed to share with you updated forecast. So that's how it happened. And the upward revision is rather conservative. In other words, we are having our business under control. And Fujihara-san, I have trusted you a lot. So I always wonder how you operate as CFO while looking at potential dividend and looking at investment. But in the next mid-long-term plan, you may want to aggressively invest, and you may want to aggressively return to shareholders.
Speaker #1: again , cost a to So me a , you are . Revision was still very small there a slight increase , that's for .
Speaker #1: So it's maybe small to call, too, yes, revision upward. But on the other hand, it is upward. Asco's impact—need to.
Speaker #1: share with you updated forecast sure . So that's how it . upward In the revision . In other words is rather . be conservative to are absorbed having our business control .
Speaker #1: Happened under Fujihara some, and I have trusted you a lot. So, I always wonder how, as while dividend, and looking at you at.
Speaker #1: Investment . meeting plan . But in invest CFO and you may want aggressively return to So sounds like very want to , long term , stretchy financial operation .
Kazuhiko Fujihara: So it sounds like a very stretchy, stretchy financial operation you may have to do going forward. So Fujihara-san, what's your view while you are retiring? I don't expect you to say anything at this moment, but I wonder if you have any concerns before you retire. We have had very healthy, productive discussions internally with the senior management team, including CEO. Shareholder return and growth, we want to achieve both. And this remains the same. As for shareholder return, dividend ratio may look a little bit high, but in the inflationary environment, we have kept the dividend ratio same. So we want to be comfortable and confident before sharing our view with you. Net reverse ratio and free cash flows are very important from a CFA perspective. And in fact, my successor, Akiyama-san, has been looking at them for a long time in the finance team.
Kazuhiko Fujihara: So it sounds like a very stretchy, stretchy financial operation you may have to do going forward. So Fujihara-san, what's your view while you are retiring? I don't expect you to say anything at this moment, but I wonder if you have any concerns before you retire. We have had very healthy, productive discussions internally with the senior management team, including CEO. Shareholder return and growth, we want to achieve both. And this remains the same. As for shareholder return, dividend ratio may look a little bit high, but in the inflationary environment, we have kept the dividend ratio same. So we want to be comfortable and confident before sharing our view with you. Net reverse ratio and free cash flows are very important from a CFA perspective. And in fact, my successor, Akiyama-san, has been looking at them for a long time in the finance team.
Speaker #1: You may have to do the forward, Fujihara. San, so going next, you may aggressively—your, what's your view on retiring? I don't expect you to say at this while you are anything, but I have any shareholders.
Speaker #1: If you wonder, concerns—it’s stretchy. The moment you retire, we had very productive discussions internally before, including with the management team and regarding shareholder return growth.
Speaker #1: We want achieve both . healthy , And this remains the to for as shareholder may same bit high dividend ratio environment we a little look the the ratio same kept return with the .
Speaker #1: to comfortable dividend confident before We sharing and our you view with average . ratio and be free flows are very want cash perspective CFA looking successor them for a fact , my .
Speaker #1: Net finance . , but in inspirational at been long time in Team . So knowledge good flow net and leverage ratio . has a growth strategy investment we have internally to make sure that we can a very present responsible The he performance .
Speaker #1: And in .
Kazuhiko Fujihara: So he has good knowledge, cash flow, and net leverage ratio. The growth strategy and investment, we have been again discussing internally to make sure that we can present a very responsible performance. Thank you. Are there anyone who have questions? Please do so. Raise your hand or press raise your hand button. Daisaku Masuno from Nomura Securities. I would like to take this opportunity to ask you one more question about investment for the next fiscal year. So you mentioned that you did not include the investment for Sakai Data Center as well as for the GPUs. So the depreciation for our data center is quite long, but for GPUs, it's usually a 5-year depreciation. So it would impact. So with the Sovereign Cloud together with Oracle, you're going to prepare a large cloud. And I believe that you need to have your own GPU as an asset.
Kazuhiko Fujihara: So he has good knowledge, cash flow, and net leverage ratio. The growth strategy and investment, we have been again discussing internally to make sure that we can present a very responsible performance.
Speaker #1: has raise
Speaker #1: and
Operator: Thank you. Are there anyone who have questions? Please do so. Raise your hand or press raise your hand button. Daisaku Masuno from Nomura Securities.
Speaker #1: Thank you. Thank you again for discussing. So important, cash you from.
Speaker #3: Are there anyone who, please do so. Raise your—
Speaker #3: Hand—have your questions? So, hand.
Speaker #3: button or press
Daisaku Masuno: I would like to take this opportunity to ask you one more question about investment for the next fiscal year. So you mentioned that you did not include the investment for Sakai Data Center as well as for the GPUs. So the depreciation for our data center is quite long, but for GPUs, it's usually a 5-year depreciation. So it would impact. So with the Sovereign Cloud together with Oracle, you're going to prepare a large cloud. And I believe that you need to have your own GPU as an asset.
Speaker #2: You .
Speaker #3: Nelson numerous securities Must would like I . opportunity to to take question about ask you one more . Investment for fiscal year . next this that you do not mentioned include the So the for data center .
Speaker #3: Investment and Sakai for the GPUs—how is that so? The depreciation data center is from quite long ago. But GPUs are usually for the... So it would impact.
Speaker #3: So sovereign with the with do you are Oracle going to large for . And you your GPUs . asset Cloud . So depreciation .
Speaker #3: I believe for sovereign cloud, especially for the cash out plan, AI, particularly fiscal, for your view and cloud for next year.
Kazuhiko Fujihara: So especially for Sovereign Cloud, the cash-out plan for AI, particularly for next fiscal year, what is your view? And overall, primary cash flow and the upfront investment for midterm plan. For free cash flow, primary free cash flow, including dividend. And for the rate, we will make sure to handle properly. And for the investment for midterm, mid-long-term, so what is the return? So we need to also show that clearly. So how we are going to take it back, then we need to also make a proper decision. So for the next mid-long-term business management plan, so what kind of businesses we would like to plan and establish needs to be well considered. So that will be our core discussion moving forward. As CEO Miyakawa also mentioned in the presentation, so he mentioned that for you to kindly wait until our next midterm and long-term management plan presentation.
Daisaku Masuno: So especially for Sovereign Cloud, the cash-out plan for AI, particularly for next fiscal year, what is your view? And overall, primary cash flow and the upfront investment for midterm plan. For free cash flow, primary free cash flow, including dividend. And for the rate, we will make sure to handle properly. And for the investment for midterm, mid-long-term, so what is the return? So we need to also show that clearly.
Speaker #3: Primary cash flow: what is it, and prepare an investment plan for free cash, including the upfront and rate. Free—make sure to handle cash properly.
Speaker #3: And for that flow have for mid-term Above all dividend term . what is the for the return ? So we need to show that clearly .
Kazuhiko Fujihara: So how we are going to take it back, then we need to also make a proper decision. So for the next mid-long-term business management plan, so what kind of businesses we would like to plan and establish needs to be well considered. So that will be our core discussion moving forward. As CEO Miyakawa also mentioned in the presentation, so he mentioned that for you to kindly wait until our next midterm and long-term management plan presentation.
Speaker #3: How are we going mid-term to take it flow? We need to, so, properly make a decision. So, for the next long-term management business, long plan.
Speaker #3: So what kind of businesses do we would and plan establish to well considered. So that needs are our discussion will be moving core sure to.
Speaker #3: forward . So As president , CEO Miyakawa also mentioned in do we the presentation . he then So that kindly wait for until our you to next term and term long plan just up for follow a will be in more and a there more investment .
Kazuhiko Fujihara: So just for follow-up, in 4 to 6 years, there will be more and more return for the investment. But looking at the 4 to 6 years, normally first year or second year, it will be the upfront investment. And fifth or your final year, and it will be the one that you get a return. So that's how it normally works for the upfront investment and the return. So the details are still in consideration. We would like to give you a more clear answer to that question in our next presentation or briefing. So we have accumulated our plan, and also the funding is quite stable compared to before. So therefore, we should be able to once we can establish the good return base. So we have more and more options for our business strategies.
Kazuhiko Fujihara: So just for follow-up, in 4 to 6 years, there will be more and more return for the investment. But looking at the 4 to 6 years, normally first year or second year, it will be the upfront investment. And fifth or your final year, and it will be the one that you get a return. So that's how it normally works for the upfront investment and the return. So the details are still in consideration. We would like to give you a more clear answer to that question in our next presentation or briefing. So we have accumulated our plan, and also the funding is quite stable compared to before. So therefore, we should be able to once we can establish the good return base. So we have more and more options for our business strategies.
Speaker #3: At 4 to 6, normally first year it will be the end year final, and it will be, but the one that you meet, return.
Speaker #3: So, you get those years—how it normally works for the upfront investment, return, or so. So, second year is in management, still under consideration.
Speaker #3: We would like to give you a clear answer, and we would provide more answers to that question in our next investment presentation. So, or... so, we have.
Speaker #3: Accumulated details our fifth or your plan and . The . Is quite briefing stable 4 to 6 years , compared to therefore we So should be able once we we can establish big good base have more and more options the business .
Kazuhiko Fujihara: So therefore, how we would like to draw a map for the mid and long-term management plan. We do also understand your concerns, so we would like to also take concern. Thank you. That concludes SoftBank Corp. Investor Meeting for the fiscal year 2026 third quarter. Last but not the least, we're going to introduce the successor of Fujihara, Mr. Akiyama. First of all, thank you very much for your continued support for a long time, and really appreciate that. My successor is sitting next to me, Mr. Akiyama, as the head of finance unit. I think he is ready for taking over my role. So I'm going to ask Akiyama-san to give you a few words. Good evening. My name is Akiyama, SoftBank Corp. I am going to take over Fujihara-san's role as CFO. Let me briefly introduce myself.
Kazuhiko Fujihara: So therefore, how we would like to draw a map for the mid and long-term management plan. We do also understand your concerns, so we would like to also take concern. Thank you. That concludes SoftBank Corp. Investor Meeting for the fiscal year 2026 third quarter. Last but not the least, we're going to introduce the successor of Fujihara, Mr. Akiyama. First of all, thank you very much for your continued support for a long time, and really appreciate that. My successor is sitting next to me, Mr. Akiyama, as the head of finance unit. I think he is ready for taking over my role. So I'm going to ask Akiyama-san to give you a few words. Good evening. My name is Akiyama, SoftBank Corp. I am going to take over Fujihara-san's role as CFO. Let me briefly introduce myself.
Speaker #3: strategies . So we So for the how we would like to for the mid and long management . And I we understand concern .
Speaker #3: do also
Speaker #3: We would like to show concern. Thank you. Your draw a term.
Speaker #3: take also
Speaker #3: .
Speaker #4: .
Speaker #1: concludes Okay .
Speaker #1: SOFTBANK GROUP CORP.
Speaker #1: Fiscal. Thank you. And that year, 2026.
Speaker #1: But last but not least, we're gonna return. Mr. Akiyama, thank you for a long continued introduction and investor meeting time. And—
Speaker #1: support for
Speaker #1: My successor is sitting next to me, Mr. Fujihara, and I really appreciate that.
Speaker #1: Of finance. Therefore, unit, first of all, head think he is.
Speaker #1: for very much taking your over on map So I'm going to role . ask
Speaker #1: Akiyama-san plans a few words on the third quarter.
Speaker #2: So .
Speaker #1: My name is . Let me briefly introduce myself. Thank you, Nippon SoftBank. I joined from Japan, and my career has been spent in finance. In 2018, we were listed. Since then, I have been engaged in Telecom, and to give you a sense, I have been involved since then.
Speaker #1: Akiyama, I am from SOFTBANK GROUP CORP. I am going to take over San's role as CFO.
Kazuhiko Fujihara: I joined SoftBank from Japan Telecom, and most of my career was spent in finance. In 2018, when we listed, and since then, I have been engaged in fundraising and making plans of capital and finance to make sure that we can achieve both growth and shareholder return. For the last 12 months under Fujihara-san's leadership, I have been looking over what Fujihara-san does or does. I'm going to take much more bigger responsibility going forward. But again, I want to still make sure that we can both achieve growth and return. And through that, I would like to help growing corporate value. As Miyakawa-san indicated earlier today, the senior management team will be much younger. Then in May, we're going to announce the latter half of the mid-long-term plan. I hope that you will expect a lot from that.
Kazuhiko Fujihara: I joined SoftBank from Japan Telecom, and most of my career was spent in finance. In 2018, when we listed, and since then, I have been engaged in fundraising and making plans of capital and finance to make sure that we can achieve both growth and shareholder return. For the last 12 months under Fujihara-san's leadership, I have been looking over what Fujihara-san does or does. I'm going to take much more bigger responsibility going forward. But again, I want to still make sure that we can both achieve growth and return. And through that, I would like to help growing corporate value. As Miyakawa-san indicated earlier today, the senior management team will be much younger. Then in May, we're going to announce the latter half of the mid-long-term plan. I hope that you will expect a lot from that.
Speaker #1: and making of finance make My that both and last 12 months . the leadership , looking sure to or does achieve , and I'm gonna take much bigger responsibility shareholder forward again , I still make we achieve both growth .
Speaker #1: And like I said earlier, in May we announced that we're gonna be growing more, and going through to mid-term. But as we may have been, I want to make sure that we're going to be more corporate. Sam, do you have anything to add?
Kazuhiko Fujihara: Fujihara-san has given me very warm words, and I myself want to meet his expectations and your expectations. Once again, thank you very much for joining us today, and I appreciate your continued support. Thank you. This concludes the investor meeting for Q3 of fiscal year 2026. A recorded version of today's presentation will be made available on demand on our corporate website. Please feel free to review it at your convenience. Once again, thank you very much for coming to our investor meeting despite your very busy schedule.
Speaker #1: I plan, and you will hope that from Fujihara-san, who has given me today warm words. I, as a senior myself, management meet very—and much today—you very for help will your appreciate—continued younger value want. This meeting is for the year 2026. Thank you for that.
Kazuhiko Fujihara: Fujihara-san has given me very warm words, and I myself want to meet his expectations and your expectations. Once again, thank you very much for joining us today, and I appreciate your continued support.
Speaker #1: expectations . And your indicated expect a long expectations our website . lot Please feel free to , the that view it as your convenience .
Operator: Thank you. This concludes the investor meeting for Q3 of fiscal year 2026. A recorded version of today's presentation will be made available on demand on our corporate website. Please feel free to review it at your convenience. Once again, thank you very much for coming to our investor meeting despite your very busy schedule.
Speaker #1: Once again, once Fujihara, thank you team very much. Coming to our third quarter for investor meeting. Despite your very busy schedule, a recorded today's support was made.
