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SOFTBANK CORP.

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Review of Operations

Overview of the SOFTBANK Group's Main Businesses

With its full-fledged entry into the mobile phone business with the acquisition of Vodafone K.K., sales have come increasingly from mobile communications and other infrastructure businesses. A balanced structure has been achieved, however, with non-infrastructure businesses generating 35.3% of the Group's operating income. This is the point on which the SOFTBANK Group differentiates itself from others in the industry.

The infrastructure business spans from mobile to broadband and fixed-line telecommunications, while portal and search, and a wide range of various broadband content and services are being developed as non-infrastructure businesses. In addition to cross-selling, this creates cost synergies, and as a result all business segments are showing continuous growth in cash flow and rising profit margins.

Portion of Net Sales and Operating Income Generated by Each Segment

Net Sales Breakdown

Three telecommunications segments—80.8% vs.
Non-telecommunications segments—19.2%

Operating Income Breakdown

Three telecommunications segments—64.7% vs.
Non-telecommunications segments—35.3%

[Note]
  • *Net sales and operating income breakdown calculated based on the total of the 5 segments' (excluding the Others segment) net sales and operating income.

Segment Performance

Mobile Communications

Increases over past 2 years*1: EBITDA—1.3-fold;
EBITDA margin—3.5 points

Broadband Infrastructure

Increases over past 3 years: EBITDA—1.5-fold;
EBITDA margin—12.0 points

Fixed-line Telecommunications

Increases over past 3 years: EBITDA—3.0-fold;
EBITDA margin—11.6 points

Internet Culture

Increases over past 3 years: EBITDA—1.7-fold;
EBITDA margin—1.7 points

e-Commerce

Increases over past 3 years: EBITDA—1.0-fold;
EBITDA margin—0.3 points

Consolidated Total

Increases over past 3 years: EBITDA—4.5-fold;
EBITDA margin—11.9 points

[Notes]
  • *1Operating results consolidated from May 2006 (11 months).
  • *EBITDA = operating income + depreciation and amortization (including amortization of goodwill), and loss on disposal of fixed assets included in operating expenses. EBITDA margin = EBITDA / net sales.
  • *In addition to the above, there is also an Others segment, which comprises the Technology Services, Media & Marketing, Overseas Funds, and Other businesses.
  • * The content of this page is based on information included in the “Annual Report 2009”.