Forecasts

Forecasts for Consolidated Results

For the consolidated results forecasts for the fiscal year ending March 31, 2024, while the Consumer segment will be affected by mobile service price reductions, the Company continues to expect an increase in revenue led by the growth of the Enterprise segment, the Media & EC segment, and the Financial segment. The Company expects decreases in operating income and net income attributable to owners of the Company due to the absence of gain on step acquisition in connection with the conversion of PayPay Corporation into a subsidiary, which was recorded in the fiscal year ended March 31, 2023. On the other hand, the Company expects an increase in operating income excluding the gain on step acquisition in connection with the conversion of PayPay Corporation into a subsidiary, due to more than 10% year on year growth in operating income by segment in the Enterprise segment, the Distribution segment, and the Media & EC segment.
In February 2024, the Company has upwardly revised each of its forecasts of revenue from ¥6,000.0 billion to ¥6,060.0 billion, operating income from ¥780.0 billion to ¥840.0 billion, and net income attributable to owners of the Company from ¥420.0 billion to ¥462.0 billion.

(Billions of yen)

FY2022
Actual		 FY2023
Forecast*3		 Year on year Year on year %
Revenue 5,912.0 6,060.0 +148.0 +2.5%
Adjusted EBITDA*1 1,566.4 1,610.0 +43.6 +2.8%
Operating income 1,060.2 840.0 -220.2 -20.8%
Net income*2 531.4 462.0 -69.4 -13.1%

Forecasts for the Operating Income by Segment

In the Consumer segment, the Company expects an increase in operating income mainly due to an increase in smartphone subscribers and a decrease in depreciation and amortization, despite the impact of mobile service price reductions. In the Enterprise segment, the Company expects an increase in operating income related to mobile, cloud and other solution services through promoting digitalization of enterprise customers. In the Distribution segment, the Company forecasts an increase in operating income from the expansion of subscription services. In the Media & EC segment, the Company forecasts an increase in operating income due to cost optimization and the promotion of a selection and focus strategy. In the Financial segment, although there is a negative effect of not including PayPay Corporation's operating loss for the six months ended September 30, 2022 in the consolidated results for the fiscal year ended March 31, 2023 due to PayPay Corporation's consolidation on October 1, 2022, the Company expects an increase in operating income due to the streamlining of sales promotion expenses.

(Billions of yen)

FY2022
Actual		 FY2023
Forecast*3		 Year on year Year on year %
Consumer segment 462.4 490.0 +27.6 +6.0%
Enterprise segment 135.1 152.5 +17.4 +12.9%
Distribution segment 24.3 26.7 +2.4 +10.0%
Media & EC segment 159.7 195.0 +35.3 +22.1%
Financial segment -12.4 -10.0 +2.4 -
Other*4 -3.9 -14.2 -10.3 -
Subtotal 765.3 840.0 +74.7 +9.8%
Gain on step acquisition in connection with the conversion of PayPay Corporation into a subsidiary 294.8 - -294.8 -
Total 1,060.2 840.0 -220.2 -20.8%
[Notes]
  1. *1
    Adjusted EBITDA = operating income + depreciation and amortization (including loss on disposal of non-current assets) + stock compensation expenses ± other adjustments
  2. *2
    Net income: net income attributable to owners of SoftBank Corp.
  3. *3
    Revision to forecasts announced in February 2024
  4. *4
    Other includes information not included in any of the Consumer, Enterprise, Distribution, Media & EC, and Financial segments, and adjustments including eliminations of intersegment transactions and expenses not allocated to each reportable segment. Excludes “Gain on step acquisition in connection with the conversion of PayPay Corporation into a subsidiary”.
  5. *
    From FY2023, segment name of Yahoo! JAPAN/LINE has been changed to Media & EC. Accordingly, the five reportable segments became Consumer segment, Enterprise segment, Distribution segment, Media & EC segment, and Financial segment. This change only pertains to the segment name, and there are no changes to the segment classification, scope, or measurement methods.