Shareholder Value per Share

as of Dec. 13, 2019 16:00 (JST)

Shareholder
value
*1

11,378
yen/share

Equity value
of holdings
*2

13,568
yen/share

Net debt*3
 

2,190
yen/share

(Reference)

Share price 4,388 yen
LTV (Loan to value)*4 16 %

Details:

Equity value of holdings*2
Alibaba (updated daily) 6,767 yen/share
SoftBank Corp. (updated daily) 2,231 yen/share
Sprint (updated daily) 1,388 yen/share
Arm 1,290 yen/share
SoftBank Vision Fund (updated quarterly) 1,526 yen/share
Others (updated quarterly) 365 yen/share
Shares issued (excl. treasury shares) 2,071 million shares
USD/JPY 108.65
[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 30, 2019 by the share price of Alibaba (excluding the amount equivalent to the outstanding debt of asset-backed finance from both Net debt and Equity value of holdings)
    • 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: Value equivalent to SBG's portion of SVF's holding value + Performance Fee accrued, etc.
    • Others: calculated mainly based on fair value of unlisted shares, etc. held by SBG and adjusted the following
      Closing of the accelerated $1.5 billion payment commitment to The We Company from SBG (completed on October 30, 2019)
  • *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 (a), (b), (c), and (d) as follows
      (a) JPY Hybrid Bonds issued in September 2016: 50% of outstanding amount, which is recorded as debt in consolidated B/S, is treated as equity
      (b) USD Hybrid Notes issued in July 2017: 50% of outstanding amount, which is recorded as equity in consolidated B/S, is treated as debt
      (c) JPY Hybrid Loan executed in November 2017: 50% of outstanding amount, which is recorded as debt in consolidated B/S, is treated as equity
      (d) Exclusion of the amount of the outstanding debt of asset-backed finance
    • SBG cash position, etc: considering the impacts of (e) and (f) as follows
      (e) Estimated cash proceeds and capital call payment related to the assets transfer of SVF from SBG that had been already completed by the end of September 2019
      (f) Closing of the accelerated $1.5 billion payment commitment to The We Company from SBG (completed on October 30, 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 (excluding the amount equivalent to the outstanding debt of asset-backed finance from both net debt and equity value of holdings)
  • *
    SVF: valuation of fair value
    • The SVF's valuation process and governance reflect industry best practice and is supported by market-leading professionals. The valuations are prepared by the valuation team of SBIA in accordance with IFRSs, International Private Equity and Venture Capital Valuation (IPEV) Guidelines and the SBIA Global Valuation Policy on a quarterly basis, using the most appropriate valuation techniques and inputs that reflect the nature, characteristics and risks of the invested assets as financial instruments that are subject to fair value measurement. The valuation team of SBIA may engage external specialists with a high level of knowledge and experience as needed, in determining the fair value of certain complex financial instruments. The Investor Advisory Board (IAB) of the SVF has additionally appointed certain external firms to act as independent valuers for the SVF's assets. The independent valuers are engaged to determine the fair value of all portfolio companies held on the SVF's balance sheet as at the measurement date in accordance with IFRSs and IPEV. The valuations prepared by the valuation team of SBIA, as well as the fair value determinations made by the independent valuers, are then reviewed by the Valuation and Financial Risk Committee (VFRC), established as a committee of SBIA, which reports the result of their review to SBIA's Board of Directors on a quarterly basis. The VFRC reviews the reasonableness of significant inputs and assumptions as well as the valuation results. In addition, the VFRC considers the appropriateness of the choice of valuation methodology
    • Valuation Methodology: The applicable reporting framework of the SVF is IFRS (the “Standards”). Specifically, IFRS 13 (Fair Value Measurement) outlines the general framework for measuring fair values. The SVF is also compliant with the IPEV valuation guidelines. In line with the Standards, the SVF 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 September 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.