Softbank Group Corp. · TSE:9984
Softbank — Q1 FY2024 Earnings Presentation
27 slides from Softbank's earnings presentation, Aug 7, 2024
Slide 1: Earnings Results for the Three-month Period Ended June 30, 2024
Ver.1.1 Earnings Results for the Three-month Period Ended June 30, 2024 Investor Briefing August 7, 2024 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 FY2023 FY2024 Average during quarter Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1 USD 138.11 145.44 147.00 147.87 156.53 EOQ Jun 30 Sep 30 Dec 31 Mar 31 Jun 30 Sep 30 Dec 31 Mar 31 1 USD 151.41 161.07 Abbreviations Abbreviations used in Accounting section of this presentatio
Slide 4: Accounting
Accounting
Slide 5: Consolidated Results
Consolidated Results (¥ B) FY23Q1 FY24Q1 Change Change % Net sales 1,557.5 1,701.7 +144.2 +9.3% Income before -176.2 225.7 +401.9 ー income tax Net income (attributable to owners of the -477.6 -174.3 +303.3 ー parent) (Reference) Gain/loss on investments -699.0 559.7 +1,258.7 ー Investment Business of
Slide 6: Net Income & SVF Segment Income
Net Income & SVF Segment Income 3,033.6 950.0 (¥ B) 422.7 Net income 61.0 231.1 -57.6 -174.3 SVF segment income (income before income tax) -660.1 -96.7 -258.9 -204.3 -1,019.9 -297.5 -477.6 • Includes investment gain/loss in subsidiaries • After considering third-party interests -783.4 -931.1 -2,330.
Slide 7: Investment Business of Holding Companies Segment
Investment Business of Holding Companies Segment (¥ B) P/L item FY23Q1 FY24Q1 FY24Q1 main items Gain/loss on investments at Investment -689.7 567.9 Business of Holding Companies Realized gain/loss at asset management subsidiaries -0.1 0.2 Unrealized gain/loss on valuation at asset 0.9 -1.0 managemen
Slide 8: T-Mobile: Shareholding & Fair Values
T-Mobile: Shareholding & Fair Values $160.33 $163.22 Share price $176.18 $138.90 $140.05 Events in FY24Q1 Number of 43.3 43.3 92.1 92.1 ① 85.4 ①Sold 6.7M TMo shares for $670M shares held following DT’s partial exercise of call (M) +48.8 -6.7 options ① 670 ②DT’s call option for the remaining 28.2M TM
Slide 9: Transactions Related to T-Mobile Shares in FY24Q1
Transactions Related to T-Mobile Shares in FY24Q1 As of FY23Q4 Transactions in Q1 As of FY24Q1 Impact on Consolidated Financial Statements ($ M) (1) Sold 6.7M TMo P/L 92.1M TMo 85.4M TMo shares • Realized gain: +500 shares held shares following DT’s • Valuation loss (Reclassified to realized gain
Slide 10: Deutsche Telekom: Shareholding & Fair Values
Deutsche Telekom: Shareholding & Fair Values €23.48 €22.50 Acquired 225M Deutsche €21.75 Telekom shares in Sep 2021 Share price €19.98 €19.87 in return for the sale of TMo shares Number of 225.0 225.0 225.0 225.0 225.0 shares held (M) 5,407 5,469 +184 5,653 Fair value ($ M) 4,904 4,732 (i) DT shar
Slide 11: Alibaba Shares & Derivative Financial Assets/Liabilities
Alibaba Shares & Derivative Financial Assets/Liabilities (Amount Recorded in B/S) Value of Alibaba shares Derivative financial Investment securities (FVTPL) recorded in B/S assets/liabilities (net) considering prepaid Alibaba share price $72.36 $72.36 forward contracts: $72.00 $72.00 $28,463M ( A +
Slide 12: SoftBank Vision Funds Segment
SoftBank Vision Funds Segment (¥ B) P/L FY23Q1 FY24Q1 FY24Q1 ｍain items Includes gains and losses associated with investments in the Gain/loss on investments at SoftBank Vision Funds 159.8 1.9 Company’s subsidiaries Gain/loss on investments at SVF1, SVF2, and LatAm 134.7 15.9 ¥442.5B gain at SVF1, ¥
Slide 13: (Reference) Investment Performance of SVF1 and SVF2
(Reference) Investment Performance of SVF1 and SVF2 ($ B) Since Inception FY24*1 Gain/loss Cost*2 Returns*2 Gain/loss Q1 SVF1 89.5 109.1 19.6 2.8 Exited investments 43.2 64.8 21.6 -4.4 Investments before exit 46.3 41.8 -4.5 2.6 Reversal of previously-recorded valuation gain/loss for exited investmen
Slide 14: WeWork Emergence from Chapter 11 of the U.S. Bankruptcy Code
WeWork Emergence from Chapter 11 of the U.S. Bankruptcy Code WeWork filed for protection under Chapter 11 of the U.S. Bankruptcy Code in Nov 2023 → Emerged from Chapter 11 in Jun 2024 Received 12.2% of new WeWork stocks; WeWork ceased to be an associate of the Company Recovered part of cash Re
Slide 15: Arm Segment: Bridge to Arm's disclosure
Arm Segment in SBG’s Consolidated Financial Report Bridge to Arm’s disclosure (FY24Q1 P/L) Adjustment (1) Adjustment (2) Amortization expenses SBG Consolidated related to intangible Difference in Arm assets recognized in the Financial Report accounting Arm segment purchase price standard disclosure
Slide 16: Consolidated P/L Summary
Consolidated P/L Summary (¥ B) P/L item FY23Q1 FY24Q1 Change Net sales 1,557.5 1,701.7 +144.2 1 ・¥235.7B investment gain on Alibaba shares Gross profit ・¥179.1B investment gain on TMo shares (including derivative gains and 832.1 920.6 +88.5 losses on investments and effects of foreign exchange trans
Slide 17: Consolidated B/S Summary – Non-current assets
Consolidated B/S Summary – 1 (¥ B) B/S Main items Mar 2024 Jun 2024 Change item 11,441.4 11,359.0 -82.4 Current assets Cash and cash equivalents 6,186.9 1 5,498.9 -687.9 1 Investment Business of Holding Companies segment (including SBG and Derivative financial assets 852.4 1,031.1 2 +178.8 wholly ow
Slide 18: Investment Securities in Consolidated B/S (Main Investments)
Investment Securities in Consolidated B/S (Main Investments) (¥ B) Mar 2024 Jun 2024 Change Outline Investment securities 9,062.0 9,378.7 +316.7 FVTPL 8,321.5 8,495.0 +173.5 3,757.1 3,536.2 -220.9 Decreased mainly due to the physical settlement of a Alibaba $24,814M $21,954M -$2,860M portion of Alib
Slide 19: Breakdown of Goodwill/Intangible Assets
Breakdown of Goodwill/Intangible Assets (¥ B) Change B/S Main items Mar 2024 Jun 2024 Amorti- Changes in Outline Item Others zation FX rate 5,709.9 5,940.6 * Arm 3,585.0 3,813.8 ― +228.7 ― Goodwill SBKK 913.9 913.9 ― ― ― LY 478.3 478.3 ― ― ― ZOZO 214.0 214.0 ― ― ― Technologies 359.0 364.2 Main intan
Slide 20: Consolidated B/S Summary – Non-current liabilities
Consolidated B/S Summary – 2 (¥ B) B/S Main items Mar 2024 Jun 2024 Change item 14,020.3 14,409.8 +389.5 Interest-bearing debt 8,271.1 1 9,141.3 +870.2 1 SBG Borrowings*: ¥465.6B (¥2.7B increase) Lease liabilities 149.8 161.3 +11.5 Current liabilities Corporate bonds*: ¥6,457.9B (¥310.3B increase) D
Slide 21: Consolidated B/S Summary – Equity
Consolidated B/S Summary – 3 (¥ B) B/S Mar Jun Main items Change Item 2024 2024 13,237.2 14,203.0 +965.9 Common stock 238.8 238.8 ― 1 ¥174.3B net loss attributable to owners of the parent Capital surplus 3,326.1 3,362.7 +36.6 2 ¥1,119.7B increase in exchange differences from the translation of forei
Slide 22: Impact of the Weaker Yen on P/L & B/S (Illustration)
Impact of the Weaker Yen on P/L & B/S (Illustration) P/L B/S Entities Components Foreign exchange Exchange differences gain (loss) from translation Foreign currency- denominated cash and cash equivalents/ SBG stand-alone + Loans receivable Foreign exchange gain Subsidiaries conducting (excl. investm
Slide 23: Impact of the Weaker Yen in FY24Q1
Impact of the Weaker Yen in FY24Q1 (from ¥151.41/$ to ¥161.07/$) Foreign exchange loss in consolidated P/L for FY24Q1: ¥443.9B At SBG stand-alone: Foreign exchange losses of ¥471.6B related to foreign currency-denominated borrowings from Group companies and ¥30.1 related to foreign currency-denomina
Slide 24: Consolidated C/F Summary
Consolidated C/F Summary (¥ B) C/F FY23Q1 FY24Q1 Primary details for FY24Q1 item +109.2 Subtotal of cash flows from operating activities 1 ¥43.0B net outflow, due to outlays for ¥149.8B income taxes and the C/F from acquisition of corporate bonds by SB Northstar operating -172.6 1 -43.0 -149.8 Incom
Slide 25: Income Taxes Paid on a Consolidated Basis (Net)
Income Taxes Paid on a Consolidated Basis (Net) (¥ B) FY24 FY19 FY20 FY21 FY22 FY23 Total Q1 Consolidated 757.4 324.5 589.3 525.9 816.8 3,013.9 106.4 Japan 696.3 189.5 551.2 469.7 717.0 2,623.7 92.7 SBG and intermediate holding companies 445.8 -85.3 200.0 214.2 443.3 1,218.0 13.8 (wholly owned subsi
Slide 26: Co-investment Program to SVF2: Related Party Transactions
Co-investment Program to SVF2: Related Party Transactions Equity interests of third-party interests Masayoshi SBG FY24Q1: $― (¥―) Son* 1 FY23: $― (¥―) Equity interests: 17.25% (B) (A) Distribution: $173M Equity acquisition amount: $2,923M 100% (Return of capital) (i) Acquisition costs: $2,594M (comm
Slide 27: Co-investment Program to LatAm Funds & Management's Investment
Co-investment Program to LatAm Funds & Management’s Investment in Asset Management Subsidiary Co-investment program to LatAm Funds Management’s investment in Equity interests of third-party investors asset management subsidiary FY24Q1: $59M ( ¥9.5B) FY23: $93M (¥14.1B) Masayoshi SBG Masayoshi Son SB