Shareholder Value per Share

as of Oct. 18, 2019 16:00 (JST)

Shareholder
value
*1

11,145
yen/share

Equity value
of holdings
*2

13,501
yen/share

Net debt*3
 

2,356
yen/share

(Reference)

Share price 4,299 yen
LTV (Loan to value)*4 17 %

Details:

Equity value of holdings*2
Alibaba (updated daily) 6,261 yen/share
SoftBank Corp. (updated daily) 2,292 yen/share
Sprint (updated daily) 1,505 yen/share
Arm 1,292 yen/share
SoftBank Vision Fund (updated quarterly) 1,707 yen/share
Others (updated quarterly) 444 yen/share
Shares issued (excl. treasury shares) 2,071 million shares
USD/JPY 108.80
[Notes]
  • *1
    Shareholder value
    • Shareholder value = Equity value of holdings - Net debt
    • Shareholder value per share = Shareholder value / Shares issued (excl. treasury shares)
  • *2
    Equity value of holdings
    • Alibaba: calculated by multiplying the number of Alibaba shares held by SBG at June 3, 2019 by the share price of Alibaba
    • SoftBank Corp.: calculated by multiplying the number of SBKK shares held by SBG by the share price of SBKK
    • Sprint: calculated by multiplying the share price of T-mobile US, Inc. by the exchange ratio: 0.10256 on the premise of a future merger
    • Arm: calculated based on the acquisition cost, excluding the number of Arm shares held by SVF
    • Softbank Vision Fund: calculated by the sum of (a) and (b) as follows
      (a) SVF: Value equivalent to SBG's portion of SVF's holding value + Performance Fee accrued, etc.
      (b) Transfer Assets to SVF from SBG: Value of unlisted shares, which are currently held by SBG and planning to be transferred to SVF after July 2019, is calculated by the estimated value equivalent to SBG's portion of SVF's future holding value at completion of the respective transfer
    • Others: calculated mainly based on fair value of unlisted shares, etc. held by SBG
  • *3
    Net debt
    • Net debt = SBG net interest-bearing debt
    • SBG net interest-bearing debt = SBG gross debt - SBG cash position, etc.
    • SBG gross debt = SBG gross interest-bearing debt = Gross debt (Consolidated) - Gross debt of subsidiaries (Non-recourse)
    • SBG gross debt: adjusting (c), (d), and (e) as follows
      (c) JPY Hybrid Bonds issued in September 2016: 50% of outstanding amount, which is recorded as debt in consolidated B/S, is treated as equity
      (d) USD Hybrid Notes issued in July 2017: 50% of outstanding amount, which is recorded as equity in consolidated B/S, is treated as debt
      (e) JPY Hybrid Loan executed in November 2017: 50% of outstanding amount, which is recorded as debt in consolidated B/S, is treated as equity
    • SBG cash position, etc: considering the estimated impacts of (f), (g), (h), (i), (j), and (k) as follows
      (f) Refund of withholding income tax related to dividends within the group companies (refunded in July 2019)
      (g) Estimated cash proceeds and capital call payment related to the assets transfer to SVF from SBG after July 2019
      (h) Future proceeds from sale of Supercell shares
      (i) Estimated cash proceeds and capital call payment related to the assets transfer of SVF from SBG and Delta Fund that are already completed by the end of June 2019
    • Gross debt (Consolidated) = Gross interest-bearing debt (Consolidated): excluding cash position of banking business (The Japan Net Bank)
    • Gross debt of subsidiaries (Non-recourse) = Gross interest-bearing debt of subsidiaries (Non-recourse): Total amount of gross interest-bearing debt of SBKK, Sprint, SVF, Arm, etc.
  • *4
    LTV (Loan to value)
    • LTV (Loan to value) = Net debt / Equity value of holdings
  • *
    SoftBank Vision Fund: valuation of fair value
    • Valuation Process: SBIA is responsible for determining fair values on a quarterly basis in line with the requirements of the AIFM Directive (as issued by the FCA). The SBIA Valuation team is functionally independent from portfolio management and is supported by third party valuers (KPMG and PwC). In parallel, Ernst & Young and Duff & Phelps are Independent Valuers appointed by the Vision Fund's Investor Advisory Board to perform semi-annual independent valuation. Valuation results as determined by the SBIA Valuation team, with due consideration of the Independent Valuer's reports, are reviewed and approved by the SBIA Valuation and Financial Risk Committee (“VFRC”). The VFRC comprises the SBIA CEO, CFO, CRO, General Counsel and senior Investment Professionals. Once approved by the VFRC, valuation results are subject to a financial statement audit by the Vision Fund's independent auditors (Deloitte).
    • Valuation Methodology: The applicable reporting framework of the Vision Fund is IFRS (the “Standards”). Specifically, IFRS 13 (Fair Value Measurement) outlines the general framework for measuring fair values. The Vision Fund is also compliant with the International Private Equity and Venture Capital (IPEV) valuation guidelines. In line with the Standards, the Vision Fund uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs (market share price, etc.) and minimising the use of unobservable inputs. For companies that are publicly listed in an active market, quoted prices are used without adjustment to measure fair value. For companies that are privately held, the market and income approaches are widely used valuation techniques. The market approach includes the use of Guideline Public Company multiples, industry valuation benchmarks and available market prices. The income approach, otherwise known as the Discounted Cash Flows method, derives the value of a business by calculating the present value of expected future cash flows. The price of a recent transaction, if resulting from an orderly transaction, generally represents fair value as of the transaction date. In applying the recent transaction method, we consider relevant factors including, but not limited to, the participation of new outside investors, the level of sophistication of investors and the size of the investment round. Further, we recognize the senior-subordinate structure of the companies we invest in i.e. senior shares are worth more than junior ranking shares.
  • *
    SBG = SoftBank Group Corp., SBKK = SoftBank Corp., SVF = SoftBank Vision Fund, SBIA = SB Investment Advisers (UK) Limited
  • *
    Before considering tax unless otherwise stated
  • *
    Based on data as of June 30, 2019 unless otherwise stated
  • *
    The information herein is based on assumptions made by the Company and is not indicative of the price of the Company's common shares or any securities held by the Company and should not form the basis of any investment decisions.