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SOFTBANK Next 30-Year Vision

June 25, 2010


Chairman & CEO
Masayoshi Son
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SOFTBANK
Next 30-Year Vision

3
Business
Principles
4
SOFTBANK works to
make people happy
through information revolution

5
6
SOFTBANK works to
comfort people
in their sorrow

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What would be
the saddest thing in your life?

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Death

Loneliness

Despair

Sorrow 9
Death of
loved one

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World Top Causes of Death
(2008)
No. of
Cause Deaths
1 Cardiac disease 9.3mil
2 Cancer 6.6mil
3 Apoplexy 6.0mil
Respiratory
4 disease 3.8mil
5 Lung disease 3.3mil

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Loneliness

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No. of the Elderly Living Alone (Japan)

(mil people)
800
8mil
8

600
6
4.7mil

4
400

2
200
0.88mil

00
1980 2010 2040 13
Despair 14
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(k people) Number of Suicides (Japan)
40

32k
30

21k
20

10

0
1980 1990 2000 2009 15
Death

Loneliness

Despair

Sorrow 16
Loneliness

Sorrow 17
The saddest thing
in people’s life is loneliness

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SOFTBANK works to
increase people’s joy

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What would be
the happiest thing in your life?

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Happy Touched
Everyday life,
life itself

Self-realization,
self-accomplishment

To love,
to be loved

To be needed
Smile

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Touched by seeing Touched by
learning

Touched by love

Touched by playing
Touched by interactions
etc… 22
SOFTBANK works to
make people happy
through information revolution

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30 years till now
&
the next 30 years

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SOFTBANK’s past 30 Years
(movie)

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We have overcome many obstacles
for information revolution

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Consolidated JPY 500bn
operating income
JPY 500bn at the 30th
year since foundation

▲ ▲
FY1981 FY2010
(forecast) 27
FY2009
Consolidated Operating Income Ranking
Rank Company Name Amount
1 NTT 1,117.6bn JPY
2 NTT DOCOMO 834.2bn JPY Top 3
3
4
SOFTBANK
INPEX
465.8bn JPY
461.6bn JPY
in Japan
5 KDDI 443.8bn JPY
6 Takeda Pharmaceutical 420.2bn JPY
7 Honda Motor 363.7bn JPY
8 Nintendo 356.5bn JPY
9 East Japan Railway 344.8bn JPY
10 NISSAN MOTOR 311.6bn JPY
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Endeavoring to benefit society and
the economy and maximize enterprise value
by fostering the sharing of
wisdom and knowledge
gained through the IT revolution.

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Vision

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Design corporate DNA
leading SOFTBANK’s growth
in the next 300 years

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This vision is designed
with the time span of 300 years
The next 3 decades is
merely the first step
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Look into the far distance
whenever you get lost

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We learn from the past
to determine
the future course

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World in
300 years ago

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The wealthy 39 years General
public 33 years
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Industrial Revolution
1705 Steam engine

1709 Iron-making
technology
1764 Spinning
technology
1807 Steam ship

1825 Steam engine


railway
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Riot by people
who feared machines
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World in
300 years from now

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Information
Big Bang

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No. of Calculations per USD 1000 per second Micro Processor
20 billion per second

3.5 quadrillion
times
in 100 yrs Transistor

Vacuum Tube
Analytical Engine Relay
0.000006 per second

1900 1920 1940 1960 1980 2000 2010 41


Synapse
Binary numeral- system

Number of brain cells Approx. 30bn


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Number of cells
(No. of transistors)
1 mil times in 30 yrs

30bn Exceeds
human brain
in 2018

2010 2018
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Number of cells
(No. of computer elements)
10 60
times

10 40
times
1020
times
1 time
2018 2100 2200 2300
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Number of brain cells

30bn
8bn
Chimpanzee

Insect
1mil
1
Ameba
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Hypothesis of number of
brain cells and computing elements

∼∼
300 yrs later
10 60 times

200 yrs later 1040 times

100 yrs later


1020 times

1 time (30bn brain cells)


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The greatest
paradigm shift of
human kind

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Future that
SOFTBANK works to realize

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SOFTBANK’s commitment
to the future is
to achieve
information revolution
leading to
people’s happiness

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SOFTBANK works to obtain
cutting edge technology and
the most outstanding business model
with the times

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Bring
brain computer
to life

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Brain:
“A system which automatically
acquires data and algorithms”

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Learning computer
Automatic accumulation Automatic generation
of knowledge of wisdom
Data Algorithm


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Our biggest theme:
“Symbiosis between humankind
and computer”

1060
1 time 1 time
times

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Case: A car with AI learned to crush into
the driving course to drive faster
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Cloned sheep
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Function of
Human Brain

Emotion
(Goal)

Intelligence Wisdom
(Data) (Algorithm)

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Emotion
Pyramid Love
Self-
accomplishment

Intelligence&Wisdom

Physical needs
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Knowledge Intelligence Emotion

Realization of
extra-intelligence 59
Contribute to people’s happiness
through information revolution

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Average Life Expectancy (Japan)
200 yr-old
200

150

83 yr-old
100

50

1900 2010 2100 2200 2300 61


Generalization of
DNA treatment
and artificial organs

Towards the era of


life expectancy of 200 years 62
Spread of communication through
human bodies, and telepathy

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Spread of
completely-
automated
translation

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Disaster rescue

Nursing/ Emergency
house work medicine

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Type of Type of living
robot > organism

66
Most of new technologies
will be invented by computer 67
Coexistence with
intelligent robots

68
Natural disaster Terrorism

Unknown virus Meteor 69


Yet, people long for love,
and get hurt by love

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SOFTBANK works to
make people happy
through information revolution

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World in
30 years from now

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2010 2040

CPU 1mil times


Number of
transistors
3bn 3quadrillion
(100k times of
human brain)
 1mil times
Memory 32GB 32PB
3mil times
Network
speed
1Gbps 3Pbps
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Content Storable in a 30,000 yen Handset

2010 2040

6400 songs 500bn songs


4 yrs
equivalent
350mil yrs
equivalent

4 hours 30k yrs


equivalent
equivalent
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Content Downloadable Per Second
from Cloud

2010 2040

1 song 3mil
songs

1/4 day 2000


equivalent
years
equivalent 75
Unlimited storage
Unlimited cloud
Zero speed network

Change lifestyle
radically
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Life log

Everything integrates with cloud 77


*movie is
played here

迷子になっちゃった

I got lost.....
あらゆるものがクラウドと融合 78
Advanced and
fair education

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Advanced
telemedicine

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New work styles

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Evolution of
“Touched by sightseeing”
Now 30 yrs later 100 yrs later

VR Gather information
Sightseeing by just thinking
*Virtual Reality
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Evolution of
“Touched by learning”
Now 30 yrs later 100 yrs later

*movie is
played here

VR e-textbook Getting interested alone


*Virtual Reality enables learning 83
Evolution of
“Touched by interactions”
Now 30 yrs later 100 yrs later

Interact in VR Touch each other


in AR
*Virtual Reality *Augmented Reality
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Evolution of
“Touched by playing”
Now 30 yrs later 100 yrs later

*movie is
played here

VR game AR game
*Virtual Reality *Augmented Reality
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SOFTBANK works to make
cloud computing the greatest
human asset 86
SOFTBANK works to obtain
cutting edge technology and
the most outstanding business model
with the times

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Information Revolution
(movie)

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Strategy

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Difference from futurists:

SOFTBANK works
to turn our vision into reality

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SOFTBANK
works to become a company
needed by people around the world

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Market Cap Ranking
Approx. 100 Years ago 30 Years ago Present
(around 1900) ( 1985 ) (2010)

1 IBM Exxon Mobil


North Western Railway
2 Exxon Petrochina
Pennsylvania Railroad
3 AT&T Apple
Union Pacific Railroad
4 GE Microsoft
Southern Pacific Railroad
5 British Telecommunications Industrial and Commercial Bank
of China
U.S. Steel
6 Sumitomo Bank China Mobile
Standard Oil
7 Tokyo Electric China Construction Bank
Tennessee Coal
8 Deutsche Bank Berkshire Hathaway
JP Morgan and Company
9 Mitsubishi Bank Wal-Mart Stores
City Bank of New York
10 DuPont P&G
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In 30 years,
SOFTBANK aims to
be listed in the world top 10
with the market cap. of 200t yen

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Business
Domain
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SOFTBANK focuses on
information industry

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SOFTBANK does not
limit ourself to
one particular technology
nor one business model

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Technologies and
hardware change
over time

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SOFTBANK Group works to
bring revolutionary changes
into people’s lifestyles
with best partners

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A company growing
in the next 300 years

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History of the earth:
4.6bn years
100bn species have emerged,
100mil species have survived

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5 Greatest Extinctions Scale Cause
440mil yrs ago End of Ordovician 85% Cooling of the earth

360mil yrs ago End of Devonian 82% Impact of 2 meteors

250mil yrs ago End of Permian 96% Volcanic activity

210mil yrs ago End of Triassic 76% Meteor impact

60mil yrs ago End of Cretaceous 70% Meteor impact

5 Greatest
extinction crises
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Turning Points
1981 Big bet after one month of business foundation

1983 Fight against illness

1994 IPO, ventured into US

2001 Start broadband business

2006 Acquired Vodafone KK

5 turning points of SOFTBANK


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Species’ survival ratio
Extant species are
only 0.1%

絶滅 Extinct

99.9% of species went extinct


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Companies’ survival ratio 0.02% is surviving
(for 30 years)

Banckrupted
Liquidated
Acquired

99.98% can not survive


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Design
corporate DNA leading
SOFTBANK’s growth
in the next 300 years

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Strategic Synergy Group

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20th Century type 21st Century type
Low cost, technology Competitiveness Variety, safety

Mass production Strategy Multiple variety of


small quantity 107
20th Century type 21st Century type
Single brand Brand Multi brand

Slow Speed of Fast


Evolution 108
20th Century type 21st Century type
Pyramid Organization Web
Structure
Balanced between
Centralized Decision making centralization and decentralization 109
20th Century type 21st Century type
Supervision/ Autonomous/
control style Management harmonious style
over 50% % of Stakes Mainly 20 - 40% 110
20th Century type 21st Century type

In-house R&D
Technology Partnership
Strategy (joint venture)
111
×
*multiplied by

Ties based on
Ties based on
Buddy-like
Capital
Relations 112
Image of strategic synergy group
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Autonomy × Decentralization × Harmony
*multiplied by *multiplied by

Self-evolution + Self-multiplication

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In 30 years

5,000
companies

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50-Year Life Plan

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50-Year Life Plan
20s Get acknowledged
30s Finance war chest
40s Take on a challenge
50s Complete business
60s Hand over business
    to next generation

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60s 
Hand over business to
next generation

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SOFTBANK Academia

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Word Origin of Academia

“Akademeia”
Founded by Plato in
387 BC

Trained future leaders

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Start in July 2010

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Training of Practical Supreme
successors training responsibility

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SOFTBANK Values
1)Focus on information revolution and
contribute to people’s happiness
2)Be ambitious and tenacious of justice
3)Commit to be an overwhelming No.1
4)Think till our brains crush
5)No revolutions are down to the earth
・・・

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To be
the Plato academy
in the 21 century

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SOFTBANK
Next 30-Year Vision

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SOFTBANK works to obtain
cutting edge technology &
the most outstanding business model
with the times

126
SOFTBANK works to
make people happy
through information revolution

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We exist for our fellow-men
- in the first place
for those on whose smiles and welfare
all our happiness depends,
and next for all those unknown to us
personally with whose destinies
we are bound up by the tie of sympathy.

-Albert Einstein

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The most terrible poverty is
loneliness and the feeling of
being unloved.

- Mother Teresa

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My Beloved Grandmother

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We
(movie)

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Disclaimer
This material is made based on information available at the time of writing.
Statements in this material that are not historical facts including, without limitation,
our plans, forecasts and strategies are Forward-looking Statements.

Forward-looking Statements are subject to various risks and uncertainties, including,


without limitation, continuing decline in the general economic conditions, general
market conditions, customer demand for products and services, increased
competition, inherent risk in international operations and other important factors,
which may cause actual results to differ materially from those expressed or implied
in any Forward-looking Statements.

Information contained herein regarding companies other than SOFTBANK CORP.


and other companies of the SOFTBANK Group is quoted from public sources and
others, and we have not verified and we are not responsible for the accuracy of the
information.

SOFTBANK CORP. expressly disclaims any obligation or responsibility to update or


revise or supplement any Forward-looking Statement in any presentation material
or generally to any extent. Use of or reliance on the information in this material is
at your own risk.
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Reference
P9 Calculated by SOFTBANK based on survey conducted on Twitter during May 22 to 24, 2010.
P11 Source: WHO. Future trends in global mortality, 2008.
P13 Source: Annual Report on the Aging Society: 2009. The 2040 data was SOFTBANK’s estimation.
P15 Source: Metropolitan Police Department Community Safety Department. Heisei 21 nen ni okeru jisatsu no gaiyou shiryou. May 2010.
P16 Calculated by SOFTBANK based on survey conducted on Twitter during May 22 to 24, 2010.
P21 Calculated by SOFTBANK based on survey conducted on Twitter during May 23 to 24, 2010.
P28 Source: Bloomberg database (excluding the financial sector).
P36 Source: Clark, Gregory. A Farewell to Alms. A brief Economy History of the World.
P37 Source: Kinoshita, Yasuhiko; Kimura, Seiji and Yoshida, Tora. Syousetu Sekaishi kenkyu.
P41 Source: Kurzweil, Ray. The Singularity is Near: When Humans Transcend Biology. The number of calculation of a chip is FLOPS of Intel Core i7
X 980.
Barral, Bruno. Machine Analytique de Charles Babbage, exposée au Science Museum de Londres (Mai 2009).
P42 Source: Terasawa, Kouji. Nou no shikumi ga wakaru hon.
P43 Source: estimated by SOFTBANK based on Moore’s Law.
P44 Source: estimated by SOFTBANK based on Moore’s Law.
P45 The number of brain cells of a chimpanzee. Source: WEB Laboratory of Akichika Mikami in Chubugakuin University.
The number of brain cells of an insect. Source: Mizunami, Makoto. Koncyu: kyoui no bisyounou.
Note: an amoeba has no brain. “1” in page 45 is an example of monocellular organism.
P52 Source: Matsumoto, Gen. Ai ha nou wo kasseika suru (Love Activates the Brain) .
P55 Source: Brainvision Inc.
P61 Estimated by SOFTBANK based on United Nation World Population Prospect 2008
P73 Estimated by SOFTBANK based on the trend of past 30 years.
P74 Calculated by SOFTBANK based on the last 30-year trend of PC storage size assuming that a 30,000 yen handset has 32GB storage in
2010 and 2.6EB in 2040, with 5BM music per song, 20MB digital newspaper per day, and 9GB movie per hour.
P75 Calculated by SOFTBANK based on the communication speed on page 73 assuming that music is 5MB per song and digital newspaper is
20MB per day.
P92 Data of 100 years ago calculated by SOFTBANK. Source: Dimson, Elroy; Marsh, Paul and Staunton, Mike. Triumph of the Optimists :
101 Years of Global Investment Returns.
Approx. 30 years ago. Source: FACTSET database (as of end of Dec. 1985).
Present. Source: Nomura Securities database (as of June 23, 2010).
P101 Source: James, Lawrence,Powell. Night comes to the cretaceous.
P103 Source: Kauffman, Stuart. At Home in the universe: The Search for Laws of Self-Organization and Complexity.
P104 The data of National Tax Agency on Financial Japan (Tsuginoitte vol.25). May 2007 issue.
P115 The number of companies included in the corporate group as of 30 years later, which is SOFTBANK’s strategic synergy group.
P120 Source: Hirokawa, Yoichi. Puraton no gakuen akademeia.
P128 Source: Ekeren, Grenn. 12 Simple secrets of happiness.
P129 Source: Mother Teresa. Mother Teresa: In My Own Words.

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