The SOFTBANK Group has set a target to reduce the outstanding net interest-bearing debt*1 of 1.9 trillion yen as of March 31, 2009 by half over the three years, and to zero over the six years to March 31, 2015. The net interest-bearing debt decreased to approximately 0.7 trillion yen as of December 31, 2011. The target to reduce net interest-bearing debt to zero by March 31, 2015 remains unchanged.
To this end, the Group has worked to generate total free cash flow*2 of 1 trillion yen over the three-year period from fiscal 2009 to fiscal 2011 (from April 1, 2009 to March 31, 2012). The free cash flow generated in the end of December, 2011 totaled 1.18 trillion yen, achieving the target.
For the first time since its foundation SOFTBANK CORP. has announced a mid-term profit target. The target is to aim to generate “consolidated operating income of 1 trillion yen in fiscal 2016”. We set two strategies to achieve this target: customer base enhancement and network enhancement.
The SOFTBANK Group has been focusing on selling smartphones and tablets prior to any other mobile operators in Japan. iPhone 4S, the mainstay product of SOFTBANK MOBILE, keeps recording strong sales backed by high level of customer satisfaction. SOFTBANK MOBILE recorded cumulative net additions of 2.43 million for the April to December 2011 period, achieving No.1*3 for five consecutive years.
Another key to customer base enhancement is WILLCOM*4, which has come under the umbrella of the Group. WILLCOM's PHS net additions hit the 500,000 mark for the first time in six years for the April to December 2011 period and the total of PHS and 3G service cumulative subscribers reached 4.5 million (of which 4.31 million from PHS). Since becoming a part of the Group, WILLCOM attained a v-shaped recovery of its number of subscribers, fully benefiting from the synergies between WILLCOM and SOFTBANK MOBILE.
As a result, the number of cumulative subscribers, both SOFTBANK MOBILE and WILLCOM combined, has more than doubled since the acquisition of Vodafone K.K.
The Group believes that “connectivity” and “speed” are crucial for customer satisfaction on SOFTBANK MOBILE's network.
The number of base stations*5 increased 2.3 times in a year to 180,000 as of December 2011. As a result, SOFTBANK MOBILE caught up with competitors in terms of connectivity ratio*6 at the 98% mark (as of January 2012). Another network enhancement measure is the femtocell installation service for households based on the network enhancement survey, which has started from January 2012 nationwide. Also, the number of SoftBank Wi-Fi Spots increased to about 200,000 (as of January 31, 2012), the largest number among three major mobile operators in Japan. Besides, SoftBank Wi-Fi Spots have been made available in all subway stations of Tokyo Metro in addition to Toei Subway lines since November 2011. SOFTBANK MOBILE will continue to expand the service to key subway stations in major cities around Japan through collaboration with various train service operators. SOFTBANK received the license of 900MHz, so called Platinum Band, which is the most suitable band for the mobile communication service in March 2012. Recognizing the significant responsibility for maintaining lifeline infrastructure, we will proactively spend capex on our network to provide communication network that customers find stress-free and reliable.
In February 24, 2012, SOFTBANK MOBILE launched the next generation high-speed communication service SoftBank 4G service. In addition, SOFTBANK MOBILE launched a mobile data communication device capable of the 4G service ULTRA Wi-Fi 4G SoftBank 101SI. With the device, the down link speed of ULTRA Wi-Fi 4G will reach 76Mbps, the fastest in the industry, overwhelming the speed of other next generation communication services provided by competitors.
The Great East Japan Earthquake of March 11, 2011 rendered the Group's telecommunications services difficult or impossible to use in some areas. We sincerely apologize for the great inconvenience caused to customers.
Moving ahead, the Group will look at countermeasures to allow it to continue providing telecommunications services even in the event of a major disaster, and for speeding recovery from service disruptions caused by damage. It will also review its business continuity plan to prepare for disasters of a larger scale than previously imagined.
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