Softbank Group Corp. · TSE:9984
Softbank — Q3 FY2024 Earnings Presentation
27 slides from Softbank's earnings presentation, Feb 12, 2025
Slide 1: Earnings Results for the Nine-month Period Ended December 31, 2024
Ver.1.1 Earnings Results for the Nine-month Period Ended December 31, 2024 Investor Briefing February 12, 2025 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 138.11 145.44 147.00 147.87 156.53 150.26 151.32 EOQ Jun 30 Sep 30 Dec 31 Mar 31 Jun 30 Sep 30 Dec 31 Mar 31 1 USD 151.41 158.18 Abbreviations Abbreviations used in Accounting section of th
Slide 4: Accounting
Accounting
Slide 5: Consolidated Results
Consolidated Results FY23 FY24 (¥ B) Q1-Q3 Q1-Q3 Change Change % Net sales 5,001.9 5,302.6 +300.7 +6.0% Income before 264.1 1,270.9 +1,006.9 +381.3% income tax Net income (attributable to owners of the -458.7 636.2 +1,094.9 ー parent) (Reference) Gain/loss on investments -538.9 2,170.0 +2,709.0 ー Inv
Slide 6: Segment Income
Net Income & SVF + Investment Business of Holding Companies Segment Income 3,440.4 3,033.6 1,179.6 Net income (attributable to 960.1 (¥ B) owners of the parent) 950.0 999.5 SVF segment income + 231.1 Investment Business of Holding -57.6 Companies segment income -79.5 -174.3 (income before income tax
Slide 7: Investment Business of Holding Companies Segment
Investment Business of Holding Companies Segment (¥ B) FY23 FY24 P/L item FY24Q1-Q3 main items Q1-Q3 Q1-Q3 Gain/loss on investments at Investment -583.4 2,008.5 Business of Holding Companies Realized gain/loss at asset management subsidiaries -90.7 -41.6 Unrealized gain/loss on valuation at asset 33
Slide 8: T-Mobile: Shareholding & Fair Values
T-Mobile: Shareholding & Fair Values $220.73 $206.36 $176.18 Events in FY24Q1 Share price $160.33 $163.22 ①Sold 6.7M TMo shares for $670M following DT’s partial exercise of call options Number of 92.1 92.1 1 85.4 85.4 85.4 shares held ②DT’s call option for the remaining (M) -6.7 28.2M TMo shares exp
Slide 9: Deutsche Telekom: Shareholding & Fair Values
Deutsche Telekom: Shareholding & Fair Values €28.99 Acquired 225.0M Deutsche €26.39 €23.48 Telekom shares in Sep 2021 Share price €21.75 €22.50 in return for the sale of TMo shares Number of shares held 225.0 225.0 225.0 225.0 225.0 (M) Fair value ($ M) 6,633 6,730 5,407 5,469 5,653 $5,590M (i) DT
Slide 10: 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 considering prepaid Alibaba share price $84.79 $84.79 forward contracts: $72.36 $72.36 $16,554M ( A
Slide 11: SoftBank Vision Funds Segment
SoftBank Vision Funds Segment (¥ B) FY23 FY24 P/L Q1-Q3 Q1-Q3 FY24Q1-Q3 ｍain items Includes gains and losses associated with investments in the Gain/loss on investments at SoftBank Vision Funds 781.9 257.6 Company’s subsidiaries Gain/loss on investments at SVF1, SVF2, and LatAm 745.3 287.3 ¥740.3B g
Slide 12: (Reference) Investment Performance of SVF1 and SVF2
(Reference) Investment Performance of SVF1 and SVF2 ($ B) Since Inception FY24*1 Gain/loss Gain/loss Cost*2 Returns*2 Gain/loss Q3 Q1-Q3 SVF1 89.5 111.1 21.6 -1.0 4.8 Exited investments 44.5 66.5 22.0 0.4 -4.0 Investments before exit 45.0 42.1 -2.9 -1.2 4.3 Reversal of previously-recorded valuation
Slide 13: Investment Transfers from SBG to SVF2
Investment Transfers from SBG to SVF2 • As part of the ongoing portfolio reorganization of SBG and its key investment subsidiaries, 6 private investments have been approved for transfer to SVF2.*1 • In FY24Q3, 5 investments were transferred. In FY24Q4, 1 investment is planned for transfer, subject t
Slide 14: Arm Segment in SBG's Consolidated Financial Report
Arm Segment in SBG’s Consolidated Financial Report Bridge to Arm’s disclosure (FY24Q1-Q3 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 1 ・¥902.9B investment gain on Alibaba shares P/L item Change Q1-Q3 Q1-Q3 ・¥751.9B investment gain on TMo shares (including derivative gains and Net sales 5,001.9 5,302.6 +300.7 losses on investments and effects of foreign exchange translation) Gross profit 2,
Slide 16: Consolidated B/S Summary – Non-current assets
Consolidated B/S Summary – 1 (¥ B) B/S 1 Investment Business of Holding Companies segment (including SBG and its Main items Mar 2024 Dec 2024 Change item wholly owned subsidiaries conducting fund procurement, etc.): ¥1,960.7B 11,441.4 10,333.5 -1,107.9 (¥1,398.9B decrease) Current assets Cash and ca
Slide 17: Investment Securities in Consolidated B/S (Main Investments)
Investment Securities in Consolidated B/S (Main Investments) (¥ B) Mar 2024 Dec 2024 Change Outline Investment securities 9,062.0 8,743.8 -318.1 FVTPL 8,321.5 7,837.0 -484.4 T-Mobile 2,275.8 2,980.4 +704.6 Increased mainly due to higher share price, despite SBG selling 6.7M TMo shares following DT's
Slide 18: Breakdown of Goodwill/Intangible Assets
Breakdown of Goodwill/Intangible Assets (¥ B) Change B/S Main items Mar 2024 Dec 2024 Amorti- Changes in Outline Item Others zation FX rate 5,709.9 5,991.2 * Arm 3,585.0 3,745.3 ― +160.3 ― Goodwill SBKK 913.9 913.9 ― ― ― LY 478.3 478.3 ― ― ― ZOZO 214.0 214.0 ― ― ― Technologies 359.0 332.3 ― ― ― Main
Slide 19: Consolidated B/S Summary – Liabilities
Consolidated B/S Summary – 2 (¥ B) B/S Main items Mar 2024 Dec 2024 Change item 14,020.3 13,506.9 -513.4 Interest-bearing debt 8,271.1 1 7,346.2 -924.9 1 SBG Borrowings*: ¥1,001.3B (¥538.3B increase) Lease liabilities 149.8 162.0 +12.2 Current liabilities Corporate bonds*: ¥6,810.5B (¥663.0B increas
Slide 20: Consolidated B/S Summary – Equity
Consolidated B/S Summary – 3 (¥ B) B/S Mar Dec Main items Change Item 2024 2024 13,237.2 14,574.6 +1,337.4 Common stock 238.8 238.8 ― 1 ¥636.2B net income attributable to owners of the parent Capital surplus 3,326.1 3,356.9 +30.8 2 ¥206.9B in share repurchase Other equity instruments 193.2 193.2 ― 3
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 FY24Q1-Q3
Impact of the Weaker Yen in FY24Q1-Q3 (from ¥151.41/$ to ¥158.18/$) Foreign exchange loss in consolidated P/L for FY24Q1-Q3: ¥251.9B At SBG stand-alone: Foreign exchange losses of ¥275.4B related to foreign currency-denominated borrowings from Group companies and ¥16.8B related to foreign currency-d
Slide 23: Impact of the Weaker Yen in FY24Q3
Impact of the Weaker Yen in FY24Q3 (from ¥142.73/$ to ¥158.18/$) Foreign exchange loss in consolidated P/L for FY24Q3: ¥540.9B At SBG stand-alone: Foreign exchange losses of ¥595.0B related to foreign currency-denominated borrowings from Group companies and ¥39.0B related to foreign currency-denomin
Slide 24: Consolidated C/F Summary
Consolidated C/F Summary (¥ B) C/F FY23 FY24 1 ¥149.2B net inflow, despite the acquisition of corporate bonds by SB Northstar Primary details for FY24Q1-Q3 ・¥345.1B income tax paid (primarily by SBKK) item Q1-Q3 Q1-Q3 ・¥163.5B income tax refunded (SBG received ¥76.7B refund from a prior +530.5 Subto
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-Q3 Consolidated 757.4 324.5 589.3 525.9 816.8 3,013.9 181.5 Japan 696.3 189.5 551.2 469.7 717.0 2,623.7 122.1 SBG and intermediate holding companies 445.8 -85.3 200.0 214.2 443.3 1,218.0 -49.1 (wholly owned
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 FY24Q3: $― (¥―) 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 FY24Q3: $55M ( ¥8.7B) FY23: $93M (¥14.1B) Masayoshi SBG Masayoshi Son SB