Softbank Group Corp. · TSE:9984
Softbank — Q1 FY2023 Earnings Presentation
26 slides from Softbank's earnings presentation, Aug 8, 2023
Slide 1: Earnings Results for the Three-month Period Ended June 30, 2023
Earnings Results for the Three-month Period Ended June 30, 2023 Investor Briefing August 8, 2023 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 FY2022 FY2023 Average during quarter Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1 USD 129.04 138.68 141.16 133.26 138.11 EOQ Jun 30 Sep 30 Dec 31 Mar 31 Jun 30 Sep 30 Dec 31 Mar 31 1 USD 133.53 144.99 Abbreviations Abbreviations used in Accounting section of this presentatio
Slide 4: Accounting
Accounting
Slide 5: Consolidated Results
Consolidated Results (¥ B) FY22Q1 FY23Q1 Change Change % Net sales 1,572.0 1,557.5 -14.5 -0.9% Income before -3,292.5 -176.2 +3,116.3 - income tax Net income (attributable to owners of the -3,162.7 -477.6 +2,685.1 - parent) (Reference) Loss on investments -2,834.4 -699.0 +2,135.5 - Investment Busine
Slide 6: Investment Business of Holding Companies Segment
Investment Business of Holding Companies Segment (¥ B) P/L item FY22Q1 FY23Q1 FY23Q1 Main Items Gain/loss on investments at Investment Business of 111.2 -689.7 Holding Companies Gain/loss relating to settlement of prepaid forward 97.3 ― contracts using Alibaba shares Gain/loss relating to sales of T
Slide 7: Alibaba Shares and Derivative Financial Assets/Liabilities
Alibaba Shares and Derivative Financial Assets/Liabilities (Amount Recorded in B/S) Value of Alibaba shares Derivative financial recorded in B/S Investment securities (FVTPL) assets/liabilities (net) considering prepaid Alibaba share price forward contracts: $102.18 $102.18 $31,784M ( A + B ) $83.35
Slide 8: T-Mobile: Shareholding & Fair Values
T-Mobile: Shareholding & Fair Values includes shares subject to unexercised Deutsche Telekom’s call options $144.84 $140.00 $138.90 Held 43.3M T-Mobile $134.54 $134.17 $231M (¥31.9B) shares at FY23Q1, valuation loss for up 3.6M shares from T-Mobile share price FY23Q1 of which FY22Q4 (i) $236M (¥32.6
Slide 9: Deutsche Telekom: Shareholding & Fair Values
Deutsche Telekom: Shareholding & Fair Values Acquired 225M Deutsche Telekom shares in Sep 2021 Deutsche Telekom share price €22.35 in return for the sale of T-Mobile €19.98 $559M (¥77.2B) €18.95 shares. €18.64 valuation loss €17.49 for FY23Q1 5,463 4,904 Fair value of Deutsche 4,446 4,473 3,859 Tele
Slide 10: T-Mobile Shares: Fair Values of Contingent Consideration
T-Mobile Shares: Fair Values of Contingent Consideration Closing price on Aug 4, 2023: $134.60 Contingent $144.84 consideration is the $134.54 $134.17 $140.00 $138.90 Company’s right to acquire 48.8M T-Mobile share T-Mobile shares for no price consideration if: 45-day trailing VWAP $763M (¥105.4B) d
Slide 11: SoftBank Vision Funds Segment
SoftBank Vision Funds Segment (¥ B) P/L FY22Q1 FY23Q1 FY23Q1 Main Items In consolidated P/L, loss on investments at Gain/loss on investments at SoftBank Vision Funds -2,933.8 159.8 SoftBank Vision Funds was ¥13.0B Gain/loss on investments at SVF1, SVF2, and LatAm -2,935.0 134.7 ¥131.2B gain at SVF1,
Slide 12: Difference between Segment Results and Consolidated P/L
Deference between Segment Results and Consolidated P/L (i) Investment gains/losses related to subsidiaries (mainly Arm and PayPay) are included in “gain/loss on investments at SoftBank Vision Funds” (segment information), but are eliminated in consolidations and excluded from “gain/loss on investmen
Slide 13: (Reference) Investment Performance of SVF1 and SVF2
(Reference) Investment Performance of SVF1 and SVF2 ($ B) Since Inception FY23*1 Gain/loss Cost*2 Returns*2 Gain/loss Q1 SVF1 89.6 102.0 12.4 0.9 Exited investments 25.2 43.3 18.1 -0.7 Investments before exit 64.4 56.3 -8.1 0.9 Reversal of previously-recorded valuation gain/loss for exited investmen
Slide 14: Status of Investment and Financial Support for WeWork
Status of Investment and Financial Support for WeWork (¥ B) P/L B/S Carrying amount Amount on Jun 30, 2023 Account (Minus shows Account (Minus shows loss) liabilities) Loss on investments at Investments from 56.6 -58.9 SoftBank Vision Funds SVF (FVTPL) ($390M) a WeWork stocks and warrants held by SV
Slide 15: Consolidated P/L Summary
Consolidated P/L Summary (¥ B) P/L item FY22Q1 FY23Q1 Change Net sales 1,572.0 1,557.5 -14.5 Gross profit 883.8 832.1 -51.7 1 ・¥620.4B valuation loss due to declines in the share prices of Gain/loss on investments Alibaba, DT, and TMo Investment Business of Holding 111.2 1 -689.7 -800.9 ・¥553.4B los
Slide 16: Consolidated B/S Summary – Non-current assets
Consolidated B/S Summary – 1 (¥ B) B/S Main items Mar 2023 Jun 2023 Change item Current assets 10,586.5 10,977.4 +390.9 1 SBG balance: ¥4,528.4B (¥1,074.0B increase) Cash and cash equivalents 6,925.2 1 7,316.1 +391.0 2 ・¥84.9B increase for Alibaba prepaid forward contracts mainly due to a fall in De
Slide 17: Investment Securities in Consolidated B/S (Main Investments)
Investment Securities in Consolidated B/S (Main Investments) (¥ B) Mar 2023 Jun 2023 Change Outline Investment securities 7,706.5 7,491.1 -215.4 FVTPL 7,244.3 6,977.6 -266.7 4,842.3 4,289.0 -553.4 Decreased due to a fall in Alibaba share price Alibaba $36,264M $29,581M -$6,683M Increased due to the
Slide 18: Breakdown of Goodwill/Intangible Assets
Breakdown of Goodwill/Intangible Assets (¥ B) Change B/S Main items Mar 2023 Jun 2023 Amorti- Outline Item Changes in Others zation FX rate 5,199.5 5,467.4 * Arm 3,161.7 3,433.0 ― +271.3 ― Goodwill SBKK 913.9 913.9 ― ― ― LINE 628.9 628.9 ― ― ― ZOZO 212.8 212.8 ― ― ― Technologies 344.3 361.4 Main Arm
Slide 19: Consolidated B/S Summary – Non-current liabilities
Consolidated B/S Summary – 2 (¥ B) B/S Main items Mar 2023 Jun 2023 Change item 10,580.7 11,364.5 +783.8 1 SBG Interest-bearing debt 5,129.0 1 6,413.7 +1,284.7 Borrowings*: ¥429.0B (¥47.2B increase) Corporate bonds*: ¥5,950.4B (¥197.3B increase) Lease liabilities 184.1 170.6 -13.5 Current liabilitie
Slide 20: Consolidated B/S Summary – Equity
Consolidated B/S Summary – 3 (¥ B) (¥ B) Mar Jun Items Change 2023 2023 1 ¥477.6B net loss attributable to owners of the parent 10,649.2 11,449.8 +800.5 2 ¥1,257.0B increase in exchange differences from the translation of foreign operations due to the weaker yen Common stock 238.8 238.8 ― (increase
Slide 21: 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 22: Impact of the Weaker Yen in FY23Q1
Impact of the Weaker Yen in FY23Q1 Foreign exchange loss in consolidated P/L for FY23Q1: ¥464.6B At SBG stand-alone: Foreign exchange losses of ¥702.8B related to foreign currency-denominated borrowings from Group companies, ¥61.0B related to foreign currency-denominated bonds excl. perpetual hybrid
Slide 23: Consolidated C/F Summary
Consolidated C/F Summary (¥ B) C/F FY22Q1 FY23Q1 Primary details for FY23Q1 item 1 ¥313.4B decrease yoy +311.5 Subtotal of cash flows from operating activities ・¥236.3B increase in outlay for income taxes C/F from SBG has paid ¥229.2B income taxes mainly due to gains 1 operating +140.8 -172.6 -437.9
Slide 24: Income Taxes Paid on a Consolidated Basis (Net)
Income Taxes Paid on a Consolidated Basis (Net) (¥ B) FY18 FY19 FY20 FY21 FY22 Total FY23Q1 Consolidated 415.4 636.3 445.5 589.3 525.9 2,612.4 421.7 Japan 284.3 575.2 310.5 551.2 469.7 2,190.9 416.0 SBG and holding companies (wholly 36.8 324.7 35.7 200.0 214.2 811.4 289.6 owned subsidiaries) Operati
Slide 25: Co-investment Program to SVF2: Related Party Transactions
Co-investment Program to SVF2: Related Party Transactions Equity interests of third-party interests Masayoshi SBG FY23Q1: $― (¥―) Son* 1 FY22: $― (¥―) Equity interests: 17.25% (B) (A) Distribution: $173M Equity acquisition amount: $2,923M 100% (Return of capital) (i) Acquisition costs: $2,594M (comm
Slide 26: 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 FY23Q1: $191M ( ¥27.7B) FY22: $215M (¥28.7B) Masayoshi SBG Masayoshi Son