Softbank Group Corp. · TSE:9984
Softbank — Q1 FY2021 Earnings Presentation
24 slides from Softbank's earnings presentation, Aug 11, 2021
Slide 1: Earnings Results for the Three-month Period Ended June 30, 2021
Earnings Results for the Three-month Period Ended June 30, 2021 Investor Briefing August 11, 2021 SoftBank Group Corp.
Slide 2: Disclaimers
Disclaimers This presentation provides relevant information about SoftBank Group Corp. (“SBG”) and its subsidiaries (together with SBG, the “Company”) and its affiliates (together with the Company, the “Group”) and does not constitute or form any solicitation of investment including any offer to buy
Slide 3: Exchange rates and abbreviations
Exchange rates per JPY used for translation FY2020 FY2021 Average during quarter Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1 USD 107.74 105.88 104.45 106.24 110.00 1 CNY 15.16 15.27 15.71 16.31 17.01 EOQ Jun 30 Sep 30 Dec 31 Mar 31 Jun 30 Sep 30 Dec 31 Mar 31 1 USD 110.71 110.58 1 CNY 16.84 17.11 Abbreviations Abbrev
Slide 4: Accounting
Accounting
Slide 5: Consolidated Results
Consolidated Results (¥ B) FY20Q1 FY21Q1 Change YoY Net sales 1,280.0 1,479.1 199.1 15.6% Income before 834.1 1,292.5 458.4 55.0% income tax Net income (attributable to owners of the 1,255.7 761.5 -494.2 -39.4% parent) (Reference) Gain on investments 982.9 1,263.1 280.2 28.5% Investment Business of
Slide 6: Newly Established the Latin America Fund Segment: Change in Presentation in Consolidated P/L
Newly Established the Latin America Fund Segment: Change in Presentation in Consolidated P/L P/L after the revision of the presentation Net sales Gross profit “Gain on investments at Latin America Fund,” Gain (loss) on investments which was previously included in “gain on other ・Gain (loss) on inves
Slide 7: Newly Established the Latin America Fund Segment: Change in Reportable Segments
Newly established the Latin America Fund Segment: Change in Reportable Segments • In FY21Q1, Latin America Fund, which was previously included within “Other,” is newly presented as an independent reportable segment FY20 Investment SVF1 and Other Business of SoftBank Arm SBIA-Managed Other*1,2 Holdin
Slide 8: Segment Income - Investment Business of Holding Companies
Segment Income - Investment Business of Holding Companies (¥ B) P/L FY20Q1 FY21Q1 Items Gain on investments 650.5 741.4 Gain relating to sales of T-Mobile shares 421.9 - Realized gain on investments at asset - 65.4 management subsidiaries Results of investment activities by SB Northstar in listed st
Slide 9: Derivative Gain (Loss) Relating to T-Mobile Shares (Quarterly Trend)
Derivative Gain (Loss) Relating to T-Mobile Shares (Quarterly Trend) T-Mobile share price $144.83 1. Derivate gain due to an increase in the fair value of the (at each quarter–end) contingent consideration $134.85 Granted call options to $125.29 FY21Q1: ¥197.8B (FY20 cumulative: ¥264.4B) Deutsche Te
Slide 10: Investment in Listed Stocks and Other Instruments: Main Impact on B/S and P/L
Investment in Listed Stocks and Other Instruments: Main Impact on B/S and P/L (Gain (Loss) on Investments) (¥ B) Consolidated B/S Consolidated P/L Cumulative gain (loss) Consolidated B/S (Minuses show Consolidated P/L from the previous fiscal Investor Investment type liabilities) Amount recorded Acc
Slide 11: Derivative Gain (Loss) on Alibaba Prepaid Forward Contracts (Quarterly Trend)
Derivative Gain (Loss) on Alibaba Prepaid Forward Contracts (Quarterly Trend) Alibaba share price Amendment of contracts $226.78 (Impact on P/L) $226.73 (¥ B) FY21Q1 (¥ B) Income before -109.7 Signing Derivative gain 280.9 income tax (-$1.0B) ($2.7B) 184.4 Net income -113.8 ($1.7B) (-$1.03B) -18.5 (
Slide 12: Entry into Agreement for Sale of All Shares in Arm: Overview
Entry into Agreement for Sale of All Shares in Arm: Overview • In Sep 2020, the Company agreed to sell all of Arm shares to NVIDIA. • As the Company expects to hold approx. 6.7- 8.1% of NVIDIA shares, further upside can be enjoyed as the largest shareholder when the share price goes higher. ($ B) Tr
Slide 13: Entry into Agreement for Sale of All Shares in Arm: Accounting
Entry into Agreement for Sale of All Shares in Arm: Accounting • Arm will continue to be classified under continuing FY20 FY21 FY22 operations (until the closing of the transaction is deemed Sep 13 (execution of Purchase Agreement) Approx.18 months Closing (expected) highly probable, such as after o
Slide 14: Consolidated P/L Summary (IFRSs)
Consolidated P/L Summary (IFRSs) (¥ B) P/L item FY20Q1 FY21Q1 Change Continuing operations Net sales +1,280.0 +1,479.1 +199.1 Gain on investments at Investment Business of Holding Companies: +¥741.5B Gross profit (see page 5 for details) +697.5 +812.0 +114.5 • Unrealized gain on valuation related to
Slide 15: Consolidated B/S Summary (IFRSs) - Assets
Consolidated B/S Summary (IFRSs) - 1 (¥ B) As of As of 1 B/S item Main items Change Current assets related to investments from SB Northstar Mar 2021 Jun 2021 A: Decrease mainly due to sales of listed stocks 10,820.2 10,101.4 -718.8 B: Decrease due to sales of investments and repayment of collaterali
Slide 16: Investment Securities on Consolidated B/S (Main Investments)
Investment Securities on Consolidated B/S (Main Investments) (¥ B) As of As of Change Outline Mar 2021 Jun 2021 Investment securities 3,706.8 4,351.7 +644.9 FVTPL 3,187.6 3,836.2 +648.6 T-Mobile 1,474.4 1,702.3 +227.9 ・Increase in fair values of portfolio companies Latin America Fund 441.0 751.3 +31
Slide 17: Consolidated B/S Summary (IFRSs) - Liabilities
Consolidated B/S Summary (IFRSs) - 2 (¥ B) B/S As of As of 1 Main items Change item Mar 2021 Jun 2021 SBG: 12,891.0 12,944.8 +53.8 Short-term borrowings +¥685.4B (mainly €2.40B temporary loan made in Jun 1 2021 ahead of the issuance of foreign currency-denominated senior notes in Jul Interest-bearin
Slide 18: Consolidated B/S Summary (IFRSs) - Equity
Consolidated B/S Summary (IFRSs) - 3 (¥ B) B/S As of As of Items Change item Mar 2021 Jun 2021 11,955.6 12,491.1 +535.5 Common stock 238.8 238.8 - Capital surplus 2,618.5 2,601.1 -17.4 1 • Net income attributable to owners of the parent: +¥761.5B • Decreased following the retirement of treasury stoc
Slide 19: Consolidated C/F Summary (IFRSs)
Consolidated C/F Summary (IFRSs) (¥ B) C/F item FY20Q1 FY21Q1 Change Primary details for FY21Q1 C/F from operating activities: increased ¥353.4B yoy Subtotal of cash flows from operating (Major reasons) C/F from 1,226.8 activities • Increase in the amount of income taxes paid (cash outflow): ¥358.8B
Slide 20: Segment Income - SVF1 and Other SBIA-Managed Funds
Segment Income - SVF1 and Other SBIA-Managed Funds (¥ B) P/L FY20Q1 FY21Q1 Items Gain on investments at SVF1, SVF2, and others 296.6 391.6 SVF1: Entire sale of shares (share exchange) in 1 portfolio company and a partial sale of shares Realized gain on investments 111.4 406.6 in 6 listed portfolio c
Slide 21: Introduction of Co-investment to SVF2
Introduction of Co-investment to SVF2 Simplified Structure <Present> <After introduction> Masayoshi SBG SBG Son*1 100% 100% 83% 17% (Up to $2.6B) SVF2 SVF2 SVF2 LLC Unlisted shares as of Listed shares June 23*2 and new as of June 23 investments afterwards <Supplementary information from accounting p
Slide 22: Appendix
Appendix
Slide 23: Breakdown of Goodwill / Intangible Assets
Breakdown of Goodwill / Intangible Assets (¥ B) Change B/S As of As of Main items Changes in Outline Item Mar 2021 Jun 2021 Amortization exchange Others rate 4,684.4 4,691.6 Arm 2,621.6 2,618.5 - -3.1 - Excludes ISG businesses Goodwill SBKK 907.5 907.5 - - - ZOZO 212.9 212.9 - - - * Increased due to
Slide 24: Price Sensitivity of Derivatives at SB Northstar (FY21Q1-end)
Price Sensitivity of Derivatives at SB Northstar (FY21Q1-end) The below table shows the impact on income before income tax of changes in the market prices of the underlying assets from June 30, 2021 of options, total return swap contracts, and forward contracts related to listed stocks at SB Northst