Softbank Group Corp. · TSE:9984
Softbank — Q1 FY2020 Earnings Presentation
22 slides from Softbank's earnings presentation, Aug 12, 2020
Slide 1: Earnings Results for the Three-month Period Ended June 30, 2020
Ver.1 Earnings Results for the Three-month Period Ended June 30, 2020 Investor Briefing August 12, 2020 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 used for translation and Abbreviations
Exchange rates used for translation FY2019 FY2020 Average during quarter Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1 USD 110.00 107.70 108.98 109.22 107.74 1 CNY 16.13 15.37 15.46 15.56 15.16 EOQ Jun 30 Sep 30 Dec 31 Mar 31 Jun 30 1 USD 108.83 107.74 1 CNY 15.31 15.23 Abbreviations Abbreviations used in Accounting se
Slide 4: Accounting
Accounting
Slide 5: Consolidated Results
Consolidated Results (JPY bn) FY19Q1 FY20Q1 Change YoY Net sales 1,480.3 1,450.1 -30.2 -2.0% Income before 1,695.0 833.0 -862.0 -50.9% income tax Net income (attributable to owners 1,121.7 1,255.7 134.0 11.9% of the parent) Accounting 2
Slide 6: Changes in Presentation of P/L
Changes in Presentation of P/L ➢ “Gain (loss) on investments” is newly presented P/L after the revision of the presentation ➢ Operating income is no longer used Net sales • The importance of investment activities has increased in Gross profit the consolidated results, following the completion of Spr
Slide 7: Change in Reportable Segments
Change in Reportable Segments • In FY20Q1, “Investment Business of Holding Companies” is established as a new segment. • Segment income was revised to “income before income tax, from "operating income", to include income (loss) on equity method investments. FY19 SoftBank Vision Fund and Other SoftBa
Slide 8: Investment Business of Holding Companies Segment
Investment Business of Holding Companies Segment • Main businesses: Investment activities by SBG and its subsidiaries • Core companies: SBG, SoftBank Group Capital Limited(SBGC) and SoftBank Group Japan(SBGJ) SBG SBGC Subsidiaries SBGJ and others Indirect investment Direct investment Investments (Ap
Slide 9: Segment Income - Investment Business of Holding Companies
Segment Income - Investment Business of Holding Companies (JPY bn) P/L FY19Q1 FY20Q1 Items Gain on investments 1,226.3 650.5 (1) Gain of 280.3 bn on the partial sale of T-Mobile shares (2) Gain of 296.0 bn on the revaluation of T-Mobile shares continued to be held by the Company Gain relating to sal
Slide 10: Completion of the Merger of Sprint/T-Mobile US, Inc.
Completion of the Merger of Sprint/T-Mobile US, Inc. • On April 1, 2020, the merger of Sprint/T-Mobile US, Inc. was completed. • The Company received T-Mobile’s 304,606,049 shares and contingent consideration (the right to purchase T-Mobile’s 48,751,557 shares if certain conditions are met). • Sprin
Slide 11: Partial Sale of T-Mobile Shares and Evaluation at Q1-end
Partial Sale of T-Mobile Shares and Evaluation at Q1-end • The Company sold its T-Mobile share on June 26, 2020, and received JPY 1,830.4 bn. Deutsche Telekom received call options for T-Mobile shares held by the Company. • As a result of the decrease in the voting rights following the sale of share
Slide 12: Conclusion of Prepaid Forward Contracts Using Alibaba Shares
Conclusion of Prepaid Forward Contracts Using Alibaba Shares • From Apr to Jun 2020, SBG’s wholly owned subsidiaries* entered into several prepaid forward contracts using Alibaba shares and procured an aggregate amount of USD 13.7 bn. • B/S (at the signing of contracts): “Financial liabilities relat
Slide 13: Accounting Treatment for Partial Sale of SBKK Shares and After-tax Cash Proceeds
Accounting Treatment for Partial Sale of SBKK Shares and After-tax Cash Proceeds • In May 2020, SBG sold 240 mil. shares (shareholding ratio: 5.0%) of SBKK held through SBGJ for JPY 310.2 bn. • Shareholding ratio after the sale is 62.1%. (JPY bn) (5)Accrued cash tax 37.9 (The amount of taxes expecte
Slide 14: Consolidated P/L Summary (IFRSs)
Consolidated P/L Summary (IFRSs) P/L item FY19Q1 FY20Q1 Change (JPY bn) Continuing operations Net sales 1,480.3 1,450.1 -30.2 Gross profit 667.6 707.8 +40.3 Gain on investments Gain on investments at Investment Gain on investments at Investment Business Holding of Companies: +650.5 bn Business of Ho
Slide 15: Consolidated B/S Summary (IFRSs) - Assets
Consolidated B/S Summary (IFRSs) - 1 B/S As of As of (JPY bn) Main items Change item Mar 2020 Jun 2020 15,636.9 9,371.0 -6,265.9 1 Current assets 3,369.0 1 Increased mainly due to the sale and monetization of assets under the JPY 4.5 trillion Cash and cash equivalents 6,181.3 +2,812.3 program. Trade
Slide 16: Consolidated B/S Summary (IFRSs) - Liabilities
Consolidated B/S Summary (IFRSs) - 2 B/S As of As of (JPY bn) Main items Change item Mar 2020 Jun 2020 1,4191.1 7,625.1 -6,566.0 Interest-bearing debt 3,845.2 3,525.3 -319.9 Lease liabilities 378.4 357,2 -21.2 Current liabilities Deposits for banking business 873.1 982.2 +109.1 Increased due to the
Slide 17: Consolidated B/S Summary (IFRSs) - Equity
Consolidated B/S Summary (IFRSs) - 3 (JPY bn) B/S As of As of Items Change item Mar 2020 Jun 2020 7,372.9 7,576.8 +203.9 Common stock 238.8 238.8 － Changes in interests in subsidiaries in conjunction with the partial sale of Capital surplus 1,490.3 1,666.1 +175.8 SBKK shares: +194.7 bn Other equity
Slide 18: Consolidated C/F Summary (IFRSs)
Consolidated C/F Summary (IFRSs) (JPY bn) C/F item FY20Q1 C/F from 504.2 Subtotal of cash flows from operating activities Payments for acquisition of investments: -1,100.2 bn operating 154.0 -66.5 Interest paid Acquisition of highly liquid listed shares using funds procured as part of the activities
Slide 19: Segment Income - SVF and Other SBIA-Managed Funds
Segment Income - SVF and Other SBIA-Managed Funds (JPY bn) P/L FY19Q1 FY20Q1 Items Gain on investments 414.4 296.6 Sale of a portion of shares in 4 listed portfolio companies and all of shares in 3 unlisted portfolio Realized gain on sales of investments ― 111.4 companies (includes share exchanges)
Slide 20: Appendix
Appendix
Slide 21: Breakdown of Goodwill / Intangible Assets
Breakdown of Goodwill / Intangible Assets (JPY bn) Change B/S As of As of Main items Outline item Mar 2020 Jun 2020 Changes in Amortization Others exchange rate 3,998.2 4,013.3 Goodwill Arm 2,554.1 2,562.1 - 8.0 - SBKK 907.5 907.5 - - - ZOZO 212.9 212.9 - - - Technologies 395.6 387.2 Arm 387.8 379.8
Slide 22: Business Results of PayPay and Treatment in Segment Information
Business Results of PayPay and Treatment in Segment Information (1) Consolidation of the results of PayPay FY18 FY19 FY20 SBKK: 50% May 15, 2019 SBG: 50% Shareholding ratio SBKK: 25% Yahoo Japan (currently Z Holdings): 50% Z Holdings: 25% SBG Subsidiary (Other segment) Subsidiary (Other segment) Rep