Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. Japan
  4. Japan Exchange
  5. SoftBank Group Corp.
  6. News
  7. Summary
    9984   JP3436100006

SOFTBANK GROUP CORP.

(9984)
  Report
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

SoftBank : Summary of Earnings Results Briefing for FY2020

05/11/2021 | 05:24am EDT
Summary of Earnings Results Briefing
for FY2020

Date Tuesday, May 11, 2021 4:00 pm - 5:30 pm
Speakers SoftBank Corp.:
Junichi Miyakawa (President & CEO)
Jun Shimba (Representative Director & COO)
Yasuyuki Imai (Representative Director & COO)
Kazuhiko Fujihara (Board Director, Executive Vice President & CFO)
Summary

At the earnings results briefing, President Miyakawa discussed in addition to the consolidated results for FY2020 and the consolidated results forecast for FY2021, the mid- to long-term vision, SoftBank Corp.'s short-term strategy focus and the enhancement of disclosure to show our diverse business value.

1. Mid- to Long-term vision: Beyond Carrier strategy, second phase

For the next 10 years, my focus is to deliver growth through increasing revenue and value creation through new business expansion.

SoftBank now has collected and prepared for all the elements of what Mencius said 'Ten, Chi, Jin', that everything needs for the winning formula.

'Ten' - business timing, means opportunity is necessary. In the next 10 years, with the spread of 5G, the digitalization of society will progress rapidly, and many business opportunities will arise.

'Chi' - competitive strength, requires company's competence. Our strength is our business foundation with a compelling number of customer touchpoints: 38 million of users in mobile communication services, 80 million users in Yahoo! JAPAN - the information portal services, 39 million of users in PayPay - the smartphone payment service, and 88 million of users in LINE - the social media and communication services. Each of them has one of the largest customer bases in Japan in their respective business domain. In addition, the company holds corporate sales channels that have transactions with 95% of large corporations in Japan, consumer sales channels with 6,100 stores nationwide, and a resilient telecommunications infrastructure.

'Ten' and 'Chi' are important, but without a 'Jin', the collective strength of team, there is no success. Our group has 15,000 sales representatives, 10,000 engineers, and more than 300 subsidiaries. One of our key strengths lies in the prompt decisions made by our experienced management team. In addition, our company is in a superior position to create new businesses, as it is able to co-create with tech companies from around the world in which our parent company, SoftBank Group Corp. has invested, as well as with other leading companies inside and outside Japan.

Maximizing our enterprise value, we are on the journey to become 'the corporate group needed most by the people of the world', as we state for our group vision.

2. Consolidated Results for FY2020

Revenue for FY2020 increased by 7% year on year.

Operating income increased by 6% year on year. Segment income rose in every segment, with a notable increase of 29% in the Enterprise segment.

Net income attributable to owners of SoftBank Corp. increased by 4% year on year.

3. Consolidated Results Forecast for FY2021

For FY2021, we are forecasting growth in revenue and income, with revenue of ¥5.5 trillion, operating income of ¥975 billion, and net income attributable to owners of SoftBank Corp. of ¥500 billion.

We aim to increase operating income by ¥4.2 billion year on year with growth in mobile subscribers and a strong effort in operations centered on the Enterprise segment and the Yahoo segment to overcome the negative impact of more than ¥100 billion from mobile service price reduction and the business integration of LINE Corporation.

The annual dividend per share will remain at ¥86 to continue a high level of shareholder returns.

No changes have been made to the FY2022 targets announced in August 2020.

4. Short-term Strategy Focus Enterprise business evolution

With the completion of the business integration of Z Holdings Corporation and Line Corporation in March 2021, the Company evolved to become Japan's leading corporate groups with a broad range of platforms from telecommunications to e-commerce, mobile payment, and social media.

Going forward as our strategy for synergies, we will connect the powerful platform groups we hold to form a foundation for providing new value to users created jointly with various companies and municipalities.

Through these initiatives, the Enterprise business aims to generate operating income of ¥150 billion in FY2022.

Smartphones No. 1

In the Company's mobile business, we have implemented the multi-brand strategy to respond to all kinds of needs and provided added value at a low price in the form of group services, such as Yahoo! JAPAN. In this way, we have differentiated ourselves from other telecommunications carriers and increased our subscribers.

Looking ahead, we will accelerate the collaboration with LINE and pursue offering even further benefits for our mobile users.

For the number of cumulative smartphone subscribers we have a target of reaching 30 million by FY2023, and we aim to continue expanding beyond that.

E-Commerce No. 1

The Group's e-commerce business has room for improvement in terms of ease of use, such as search experience and delivery quality. There are also growth opportunities through collaboration with LINE and with the smartphone payment service PayPay.

Looking forward, we will strive to increase convenience and to expand transaction volume by strengthening collaborations across the entire Group. We aim to become No. 1 in e-commerce merchandise field in Japan in the first half of the 2020s.

Collaboration with LINE and NAVER

Through the business integration of Z Holdings and LINE, we aim to strengthen our alliance with NAVER Corporation of South Korea, which jointly holds shares of the parent company of the new Z Holdings.

NAVER Corporation is one of the largest technology platform companies in South Korea and has outstanding technological capabilities in various fields such as search engines, e-commerce, AI, and automated driving.

SoftBank Corp. and NAVER Corporation will set up steering committees for each field to drive synergies.

5G network enhancement

In February 2021, we started deploying 5G using our existing spectrum. As of March 2021, we had achieved nationwide deployment of 5G service provision in 47 prefectures.

Looking ahead, we will start the Stand Alone deployment during fiscal 2021, aiming to achieve 90% population coverage by spring 2022.

Beyond Japan

We announced a capital and business alliance with a data and AI marketing subsidiary of Axiata Group Berhad, one of the largest telecommunications groups in Southeast Asia. We aim to expand our digital marketing domain in Southeast Asia.

Going forward, we aim to expand our global business by further strengthening the collaboration with companies outside of Japan such as the Axiata Group.

5. Show Diverse Business Value through Enhanced Disclosure

Going forward, we will make an even further effort to enhance our disclosure, in order to have the Company's diverse business value evaluated through the Sum-of-the-Parts valuation. Specifically, we will disclose our operating income forecasts by segment to provide a deeper insight into the growth potential of each business. We will also continuously disclose important KPIs for our leading subsidiaries and affiliates such as PayPay Corporation, thereby showing their potential business value.

Disclosure of operating income forecasts by segment

For the Consumer segment, we forecast a 3% year-on-year decrease in operating income, partly due to a mobile service price reduction. However, the Enterprise segment is expected to see dramatic growth in operating income of ¥20.3 billion, or 19% year on year.

Continuous disclosure of important KPIs for leading subsidiaries and affiliates 1) PayPay smartphone payment service

The smartphone payment service PayPay exceeded 39 million users in May 2021, available at 3.16 million locations nationwide. We will strengthen the FinTech services etc. and accelerate the process of evolving PayPay into a super app in the future.

The gross merchandise volume (GMV) that we are presenting here for the first time, was over ¥3.2 trillion in FY2020, representing significant year-on-year growth of 2.6 times.

PayPay Corporation is currently an equity method affiliate of the Company; however, from FY2022 onward, it can become a consolidated subsidiary through conversion of preferred stock we hold.

2) To foster new businesses following PayPay

Our wholly-owned subsidiary SB Payment Service Corp. provides payment processing services. This year, transaction value reached ¥4 trillion, up 14% year on year. Meanwhile, at SB Power Corp., another wholly owned subsidiary that provides electric power supply services, revenue was up 70% year on year to ¥130.9 billion.

Looking ahead, we will continue working to create new businesses in growth markets such as FinTech, healthcare, and mobility.

6. SoftBank's SDGs

We formulated the priority issues (materiality) in May 2020 and will pursue business growth while working to resolve social issues.

As our declaration of Carbon-neutral 2030, we aim to achieve carbon neutrality by FY2030, virtually eliminating greenhouse gas emissions to zero by switching to renewable energy for company-wide electric power consumption.

Disclaimer

SoftBank Group Corporation published this content on 11 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 May 2021 09:23:06 UTC.


ę Publicnow 2021
All news about SOFTBANK GROUP CORP.
05:14aSOFTBANK : Nomura Adjusts SoftBank Group's Price Target to 10,440 Yen From 10,64..
MT
04:00aSoftBank sells 45 million shares in Uber - source
RE
02:50aUBER TECHNOLOGIES : shares slide as SoftBank look to soften blow of Didi NYSE ch..
AQ
07/28SoftBank Group Plans to Sell Some of Its Uber Shares, CNBC Reports
DJ
07/28TOTAL SOFT BANK : SoftBank sells chunk of Uber stake to cover for Didi losses -C..
RE
07/28NIKKEI 225 : Down 1.4% on Wall Street Cues, Pandemic Outlook
MT
07/28SOFTBANK : Singapore's GIC joins Fortress bid for UK supermarket Morrisons
RE
07/28GENERAL ANNOUNCEMENT : :Issuance of Stock Acquisition Rights (Stock Options)
PU
07/28SOFTBANK : Issuance of Stock Acquisition Rights (Stock Options)
PU
07/28Nikkei slips on Wall Street retreat, record virus cases in Tokyo
RE
More news
Financials
Sales 2022 5 953 B 54 205 M 54 205 M
Net income 2022 1 045 B 9 517 M 9 517 M
Net Debt 2022 13 879 B 126 B 126 B
P/E ratio 2022 12,2x
Yield 2022 0,67%
Capitalization 11 554 B 105 B 105 B
EV / Sales 2022 4,27x
EV / Sales 2023 4,12x
Nbr of Employees 58 786
Free-Float 47,1%
Chart SOFTBANK GROUP CORP.
Duration : Period :
SoftBank Group Corp. Technical Analysis Chart | 9984 | JP3436100006 | MarketScreener
Technical analysis trends SOFTBANK GROUP CORP.
Short TermMid-TermLong Term
TrendsBearishBearishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 15
Last Close Price 6 745,00 JPY
Average target price 11 321,71 JPY
Spread / Average Target 67,9%
EPS Revisions
Managers and Directors
Masayoshi Son Chairman & Executive President
Yoshimitsu Goto CFO, Director & Senior Managing Executive Officer
Raul Marcelo Claure Chief Operating Officer & Executive Vice President
Tim Mackey Chief Legal Officer & Group Compliance Officer
Masami Iijima Independent Outside Director
Sector and Competitors
1st jan.Capi. (M$)
SOFTBANK GROUP CORP.-16.29%104 956
AT&T INC.-2.61%201 344
T-MOBILE US7.62%180 570
KDDI CORPORATION12.56%71 466
AMÉRICA MÓVIL, S.A.B. DE C.V.14.63%54 111
VODAFONE GROUP PLC-4.63%45 034