SoftBank Group Corp. · TSE:9984
SoftBank — Q1 FY2019 Earnings Presentation
26 slides from SoftBank's earnings presentation, Aug 9, 2019
Slide 1: Earnings Results for the Three-month Period Ended June 30, 2019
V1.1 Earnings Results for the Three-month Period Ended June 30, 2019 Investor Briefing August 9, 2019 SoftBank Group Corp.
Slide 2: Disclaimer
DISCLAIMER This material was prepared based on information available and views held at the time it was made. Statements in this material that are not historical facts, including, without limitation, plans, forecasts and strategies are “forward-looking statements”. Forward-looking statements are by t
Slide 3: Accounting policy, trademarks and exchange rates
Accounting policy SoftBank Group Corp. adopted the International Financial Reporting Standards (IFRSs) in fiscal 2013. Trademarks and registered trademarks, etc. The names of other companies, other logos, product names, service names, brands, etc., mentioned in this material are registered trademark
Slide 4: Accounting
Accounting 14
Slide 5: Consolidated Results
Consolidated Results (JPY bn) FY18Q1 FY19Q1 Change YoY Net sales 2,272.8 2,336.4 +63.6 +2.8% Operating income 715.0 688.8 -26.2 -3.7% Net income (attributable to owners 313.7 1,121.7 +808.0 +257.6% of the parent) 25
Slide 6: SoftBank Corp. Made Yahoo Japan a Subsidiary
SoftBank Corp. Made Yahoo Japan a Subsidiary ・ On June 27, 2019, Yahoo Japan issued 1,511 million new shares to SoftBank Corp. through a third-party allotment. ・ SBGJ, a wholly owned subsidiary of SBG, accepted a tender offer of share buyback by Yahoo Japan and sold its holdings of 1,793 million Yah
Slide 7: Change in Reportable Segments
Change in Reportable Segments ・ Revised segment classifications after SoftBank Corp. made Yahoo Japan a subsidiary ・ The results of operations for FY18 are restated retroactively according to the new reportable segments. FY18 SoftBank Vision SoftBank Yahoo Japan Sprint Arm Brightstar Fund and Delta
Slide 8: Sprint/T-Mobile Merger Approval Flow
Sprint/T-Mobile Merger Approval Flow ・ After acquiring approvals from FCC and DOJ, Sprint segment will be classified as discontinued operations. ・ On the merger date, Sprint shares will be converted into the shares of the combined company (“New T-Mobile US”), which will become an equity method assoc
Slide 9: Impact of Sprint Becoming Discontinued Operations on P/L
(Reference) Impact of Sprint Becoming Discontinued Operations on P/L Reported in Consolidated Financial Report When Sprint becomes discontinued operations (retrospectively revised) (JPY bn) FY18Q1 FY19Q1 (JPY bn) FY18Q1 FY19Q1 Change YoY (Continuing operations) Net sales 2,272.8 2,336.4 Net sales 1,
Slide 10: Impact of Sprint Becoming Discontinued Operations on B/S
(Reference) Impact of Sprint Becoming Discontinued Operations on B/S As reported in As if Sprint had become Consolidated Financial Report discontinued operations* (JPY bn) FY19Q1 FY19Q1 (Indicative) Change Current assets 6,600.5 5,503.7 -1,096.8 incl. Sprint 1,096.8 － -1,096.8 Assets classified as h
Slide 11: Adoption of new standards: IFRS 16 - Leases
Adoption of new standards: IFRS 16 - Leases Primary change in accounting treatment: Classification of finance and operating leases has been eliminated and “right-of-use assets*1” and “lease liabilities” are recognized on a balance sheet for all leases. -Leases previously classified as operating leas
Slide 12: Adoption of new standards: IFRS 16 - Leases, right-of-use assets
Adoption of new standards: IFRS 16 - Leases Items of right-of-use assets Opening B/S（April 1, 2019） (JPY bn) SoftBank Class of underlying assets Sprint Others Total Corp. Telecommunications equipment (wireless equipment, switching equipment and 1,079.0 21.9 117.5 1,216.6 other network equipment) Rec
Slide 13: Adoption of new standards: IFRS 16 - Leases (Example)
(Reference) Adoption of new standards: IFRS 16 - Leases Initial measurement for Right-of-use Assets and Lease Liabilities Lease Liabilities: Measured at the present value of total lease payments over the lease term Right-of-use Assets: Amount of the initial measurement of a lease liability plus any
Slide 14: Consolidated P/L Summary (IFRSs)
Consolidated P/L Summary (IFRSs) (JPY bn) P/L item FY18Q1 FY19Q1 Change ・FY18Q1: Recognized gain relating to loss of control over subsidiaries of 161.3 bn as a result of Arm’s Chinese subsidiary becoming a JV. Net sales 2,272.8 2,336.4 +63.6 Operating income Operating income from SoftBank Vison Fund
Slide 15: Consolidated B/S Summary (IFRSs) - Non-current assets
Consolidated B/S Summary (IFRSs) - 1 (JPY bn) B/S As of As of Main items Change Includes 422.6 bn of expected withholding tax refund on item Mar 2019 Jun 2019 dividends from SBGJ to SBG in FY18 7,758.0 6,625.5 -1,132.5 (refunded in July 2019 ) Current assets Cash and cash equivalents 3,858.5 2,932.5
Slide 16: Consolidated B/S Summary (IFRSs) - Non-current liabilities
Consolidated B/S Summary (IFRSs) - 2 B/S As of As of (JPY bn) Main items Change item Mar 2019 Jun 2019 8,681.7 7,415.9 -1,265.8 Impact of the adoption of IFRS 16 at the beginning of 1 FY19 Interest-bearing debt 3,481.0 3,277.8 -203.2 1 ・892.5 bn of lease obligations previously included in 1 2 Curren
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 2019 Jun 2019 9,009.2 9,445.3 +436.1 Common stock 238.8 238.8 － Due to decrease in SBG’s economic interests in Yahoo Japan Capital surplus 1,467.8 1,547.3 +79.5 1 Net income attributable to owners of the parent Other
Slide 18: Consolidated C/F Summary (IFRSs)
Consolidated C/F Summary (IFRSs) C/F item FY19Q1 Main breakdown (JPY bn) 1 Income taxes paid: -989.5 bn 559.8 Subtotal of cash flows from operating activities C/F from ・Income tax of 321.3 bn at SBGJ on a gain on sale of operating -547.2 -135.3 Interest paid SoftBank Corp. shares activities 1 ・Withh
Slide 19: Income and Loss Arising from SoftBank Vision Fund and Delta Fund Included in P/L
Income and Loss Arising from SoftBank Vision Fund and Delta Fund Included in P/L (JPY bn) P/L FY18Q1 FY19Q1 Items Gain and loss on investments at 247.2 414.4 SoftBank Vision Fund and Delta Fund Unrealized valuation gain of 603.8 bn: OYO and its affiliate, Slack, Doordash, Unrealized gain/loss on val
Slide 20: Settlement of Prepaid Forward Contract for Alibaba Shares
Settlement of Prepaid Forward Contract for Alibaba Shares At signing of contract 3 years total At settlement （June 2016） （June 2019） Derivative liabilities USD 6.8 bn Gain relating to settlement of variable prepaid forward contract Amortized Interest expense using Alibaba cost USD 0.3 bn shares Deri
Slide 21: Bridge from SBG Financial Report Disclosure to SVF & Delta Fund Update
Bridge from SBG Financial Report Disclosure to SoftBank Vision Fund & Delta Fund Update Disclosure (USD bn, otherwise stated) SBG Gain and loss on investments at SVF Committed capital, Total (p. 11） Committed capital, The Company (p. 11) Financial and Delta Fund (p. 10) SVF SVF Delta Delta Report*1
Slide 22: Bridge from Income before Income Tax of SVF and Delta Fund Segment to SVF's Contribution
Bridge from Income before Income Tax of SVF and Delta Fund Segment to SVF’s Contribution to SBG FY18Q1 FY19Q1 SBG JPY bn 162.9 212.3 Financial Income before income tax of SVF and Delta Report*1 Fund Segment （Net of 3rd part interests) USD bn 1.50 1.93 (p.10) Taxes on investment gains of SVF, paid/ac
Slide 23: Appendix
Appendix 20
Slide 24: SoftBank Vision Fund - Gain/Loss on Investments Transferred from the Company
SoftBank Vision Fund - Gain/Loss on Investments Transferred from the Company in P/L (Bridge Investments and Other Investments) Bridge Investments that were acquired by the Company on the premise of offering to SoftBank Vision Fund and that were in accordance with the investment eligibility criteria
Slide 25: Differences in Figures of the Company's SoftBank Segment and SoftBank
Differences in Figures of Financial Results of the Company’s SoftBank Segment and SoftBank (1) Depreciation and amortization for non-current assets at SoftBank (formerly Vodafone K.K.) SBG’s consolidated financial statements SoftBank’s consolidated financial statements When Vodafone K.K.’s controlli
Slide 26: Breakdown of Goodwill / Intangible Assets
Breakdown of Goodwill / Intangible Assets (JPY bn) B/S As of As of Change Main items Changes in Outline item Mar 2019 Jun 2019 Amortization Others exchange rate 4,321.5 4,152.8 Goodwill Arm 2,777.5 2,616.4 - -161.1 - SoftBank 907.5 907.5 - - - Sprint 326.8 317.4 - -9.4 - FCC licenses 4,155.1 4,035.6