Softbank Group Corp. · TSE:9984
Softbank — Q2 FY2024 Earnings Presentation
28 slides from Softbank's earnings presentation, Nov 12, 2024
Slide 1: Earnings Results for the Six-month Period Ended September 30, 2024
Earnings Results for the Six-month Period Ended September 30, 2024 Investor Briefing November 12, 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 138.11 145.44 147.00 147.87 156.53 150.26 EOQ Jun 30 Sep 30 Dec 31 Mar 31 Jun 30 Sep 30 Dec 31 Mar 31 1 USD 151.41 142.73 Abbreviations Abbreviations used in Accounting section of this pres
Slide 4: Accounting
Accounting
Slide 5: Consolidated Results
Consolidated Results FY23 FY24 (¥ B) Q1-Q2 Q1-Q2 Change Change % Net sales 3,227.1 3,469.9 +242.9 +7.5％ Income before -907.4 1,461.1 +2,368.6 ー income tax Net income (attributable to owners of the -1,408.7 1,005.3 +2,414.0 ー parent) (Reference) Gain/loss on investments -963.6 2,651.0 +3,614.6 ー Inve
Slide 6: Net Income & SVF + Investment Business of Holding Companies Segment Income
Net Income & SVF + Investment Business of Holding Companies Segment Income 3,440.4 Net income (attributable to 3,033.6 (¥ B) 960.1 1,179.6 owners of the parent) 950.0 999.5 SVF segment income + Investment Business of Holding 231.1 -57.6 Company segment income (income before income tax) -79.5 -174.3
Slide 7: Investment Business of Holding Companies Segment
Investment Business of Holding Companies Segment (¥ B) FY23 FY24 P/L item FY24Q1-Q2 main items Q1-Q2 Q1-Q2 Gain/loss on investments at Investment -413.5 2,116.8 Business of Holding Companies Realized gain/loss at asset management subsidiaries -88.3 0.4 Unrealized gain/loss on valuation at asset 30.0
Slide 8: T-Mobile: Shareholding & Fair Values
T-Mobile: Shareholding & Fair Values $176.18 Share price $160.33 $163.22 $206.36 Events in FY24Q1 $140.05 ①Sold 6.7M TMo shares for $670M following DT’s partial exercise of call Number of 43.3 92.1 92.1 ① 85.4 85.4 options shares held (M) +48.8 -6.7 ① 670 ②DT’s call option for the remaining 28.2M TM
Slide 9: Transactions Related to T-Mobile Shares in FY24Q1-Q2
Transactions Related to T-Mobile Shares in FY24Q1-Q2 As of FY23Q4 Transactions in Q1-Q2 As of FY24Q2 Impact on Consolidated Financial Statements ($ M) ①Q1: Sold 6.7M TMo P/L 92.1M TMo 85.4M TMo shares • Realized gain: +500 shares following DT’s shares held partial exercise of call held • Valuation
Slide 10: Deutsche Telekom: Shareholding & Fair Values
Deutsche Telekom: Shareholding & Fair Values €26.39 Acquired 225.0M Deutsche €23.48 €22.50 Telekom shares in Sep 2021 Share price €19.87 €21.75 in return for the sale of TMo shares Number of shares held 225.0 225.0 225.0 225.0 225.0 (M) Fair value ($ M) 6,633 5,407 5,469 5,653 $5,925M (i) DT share
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)*1 assets/liabilities (net) recorded in B/S $106.12 $106.12 considering prepaid Alibaba share price forward contracts: $72.36 $72.36 $24,947M (
Slide 12: SoftBank Vision Funds Segment
SoftBank Vision Funds Segment (¥ B) FY23 FY24 P/L Q1-Q2 Q1-Q2 FY24Q1-Q2 ｍain items Includes gains and losses associated with investments in the Gain/loss on investments at SoftBank Vision Funds 181.1 610.4 Company’s subsidiaries Gain/loss on investments at SVF1, SVF2, and LatAm 168.5 639.1 ¥896.4B g
Slide 13: (Reference) Investment Performance of SVF1 and SVF2
(Reference) Investment Performance of SVF1 and SVF2 ($ B) Since Inception FY24*1 Gain/loss Gain/loss Cost*2 Returns*2 Gain/loss Q2 Q1-Q2 SVF1 89.5 112.1 22.6 3.0 5.8 Exited investments 44.1 65.8 21.7 0.0 -4.4 Investments before exit 45.4 43.9 -1.5 2.8 5.6 Reversal of previously-recorded valuation ga
Slide 14: Arm Segment: Bridge to Arm's disclosure
Arm Segment in SBG’s Consolidated Financial Report Bridge to Arm’s disclosure (FY24Q1-Q2 P/L) Adjustment (1) Adjustment (2) Amortization expenses SBG Consolidated related to intangible Difference in Arm assets recognized in Financial Report accounting Arm segment the purchase price standard disclosu
Slide 15: Consolidated P/L Summary
Consolidated P/L Summary (¥ B) FY23 FY24 P/L item Change Q1-Q2 Q1-Q2 Net sales 3,227.1 3,469.9 +242.9 Gross profit 1,732.3 1,851.1 +118.8 1 ・¥1,280.1B investment gain on Alibaba shares ・¥566.2B investment gain on TMo shares (including derivative gains and Gain/loss on investments losses on investmen
Slide 16: Consolidated B/S Summary – Non-current assets
Consolidated B/S Summary – 1 (¥ B) B/S Main items Mar 2024 Sep 2024 Change item 1 Investment Business of Holding Companies segment (including SBG and 11,441.4 10,358.3 -1,083.1 wholly owned subsidiaries conducting fund procurement, etc.): ¥2,254.5B Current assets (¥1,105.1B decrease) Cash and cash e
Slide 17: Investment Securities in Consolidated B/S (Main Investments)
Investment Securities in Consolidated B/S (Main Investments) (¥ B) Mar 2024 Sep 2024 Change Outline Investment securities 9,062.0 8,751.1 -310.8 FVTPL 8,321.5 7,924.1 -397.4 ・¥1,249.6B worth of Alibaba shares were reclassified to assets classified as held for sale, due to a decision made by Sep 30,
Slide 18: Breakdown of Goodwill/Intangible Assets
Breakdown of Goodwill/Intangible Assets (¥ B) Change B/S Main items Mar 2024 Sep 2024 Amorti- Changes in Outline Item Others zation FX rate 5,709.9 5,605.4 * Arm 3,585.0 3,379.6 ― -205.5 ― Goodwill SBKK 913.9 913.9 ― ― ― LY 478.3 478.3 ― ― ― ZOZO 214.0 214.0 ― ― ― Technologies 359.0 310.6 Main intan
Slide 19: Consolidated B/S Summary – Non-current liabilities
Consolidated B/S Summary – 2 (¥ B) B/S Main items Mar 2024 Sep 2024 Change item 14,020.3 15,162.9 +1,142.6 Interest-bearing debt 8,271.1 1 8,935.8 +664.6 1 SBG Borrowings*: ¥891.4B (¥428.4B increase) Lease liabilities 149.8 159.1 +9.3 Current liabilities Corporate bonds*: ¥6,321.1B (¥173.5B increase
Slide 20: Consolidated B/S Summary – Equity
Consolidated B/S Summary – 3 (¥ B) B/S Mar Sep Main items Change Item 2024 2024 13,237.2 12,807.2 -430.0 Common stock 238.8 238.8 ― 1 ¥1,005.3B net income attributable to owners of the parent Capital surplus 3,326.1 3,385.9 +59.8 2 ¥153.8B in share repurchase Other equity instruments 193.2 193.2 ― 3
Slide 21: Impact of the Stronger Yen on P/L & B/S (Illustration)
Impact of the Stronger 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 loss Subsidiaries conducting (excl. inves
Slide 22: Impact of the Stronger Yen in FY24Q1-Q2
Impact of the Stronger Yen in FY24Q1-Q2 (from ¥151.41/$ to ¥142.73/$) Foreign exchange gain in consolidated P/L for FY24Q1-Q2: ¥289.0B At SBG stand-alone: Foreign exchange gains of ¥319.6B related to foreign currency-denominated borrowings from Group companies and ¥22.2B related to foreign currency-
Slide 23: Restated: Impact of the Weaker Yen in FY24Q1
Restated: Impact of the Weaker Yen in FY24Q1 (from ¥151.41/$ to ¥161.07/$) Foreign exchange loss in consolidated P/L for FY24Q1: ¥443.9B At SBG stand-alone: Foreign exchange losses of ¥471.6B related to foreign currency-denominated borrowings from Group companies and ¥30.1B related to foreign curren
Slide 24: Impact of the Stronger Yen in FY24Q2
Impact of the Stronger Yen in FY24Q2 (from ¥161.07/$ to ¥142.73/$) Foreign exchange gain in consolidated P/L for FY24Q2: ¥733.0B At SBG stand-alone: Foreign exchange gains of ¥791.2B related to foreign currency-denominated borrowings from Group companies and ¥52.3B related to foreign currency-denomi
Slide 25: Consolidated C/F Summary
Consolidated C/F Summary (¥ B) C/F FY23 FY24 Primary details for FY24Q1-Q2 item Q1-Q2 Q1-Q2 +317.1 Subtotal of cash flows from operating activities 1 ¥179.5B net inflow, despite the acquisition of corporate bonds by SB Northstar C/F from ・¥196.2B income tax paid (primarily by SBKK) operating +88.8 1
Slide 26: 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-Q2 Consolidated 757.4 324.5 589.3 525.9 816.8 3,013.9 33.1 Japan 696.3 189.5 551.2 469.7 717.0 2,623.7 -4.5 SBG and intermediate holding companies 445.8 -85.3 200.0 214.2 443.3 1,218.0 -78.1 (wholly owned su
Slide 27: Co-investment Program to SVF2: Related Party Transactions
Co-investment Program to SVF2: Related Party Transactions Equity interests of third-party interests Masayoshi SBG FY24Q2: $― (¥―) 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 28: Co-investment Program to LatAm Funds & Management's Investment in Asset Management Subsidiary
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 FY24Q2: $69M ( ¥9.9B) FY23: $93M (¥14.1B) Masayoshi SBG Masayoshi Son SB