Earnings Results for Q3 FY2022
Earnings Results for Q3 FY2022 ― February 7, 2023
SoftBank Group Corp. announced on February 7, 2023 its earnings results for the third quarter of the fiscal year ending March 31, 2023.
Highlights (5 minutes)
The Company recorded a total profit of ¥5,371.6 billion as a result of the early physical settlement*1 (the “Early Physical Settlement”) of prepaid forward contracts corresponding to 242 million American Depositary Receipts (ADRs) of Alibaba shares from August to September 2022. During the course of the Early Physical Settlement, the Company’s voting ownership in Alibaba fell below 20% and Alibaba was therefore excluded from the associates of the Company.
|Amount||Account in the Condensed Interim Consolidated Statement of Profit or Loss|
|Gain on settlement of prepaid forward contracts using Alibaba shares pertaining to the Early Physical Settlement||¥584.8 billion||Gain on investments at Investment Business of Holding Companies|
|Gain from remeasurement of Alibaba shares held upon exclusion from associates||¥3,996.7 billion|
|Derivative gain on prepaid forward contracts that are the subject of the Early Physical Settlement||¥790.1 billion||Derivative gain (excluding gain (loss) on investments)|
|Total (contribution to income before income tax)||¥5,371.6 billion|
Apart from the above, the Company recorded an unrealized valuation loss of ¥948.0 billion on Alibaba shares that continued to be held at the third quarter-end following a decrease in the share price that occurred from Alibaba’s exclusion from the associates of the Company up to the third quarter-end.
Gross performance since inception was a $11.0 billion gain in SVF1 and a $16.7 billion loss in SVF2.*2
3. Highlights of results for the nine-month period ended December 31, 2022
|Loss of ¥1,361.2 billion on investments (including a ¥511.6 billion loss for the third quarter)|
|Loss before income tax of ¥290.0 billion (deterioration of ¥1,524.8 billion yoy)|
reflecting the recordings of:
|Net loss attributable to owners of the parent of ¥912.5 billion (deterioration of ¥1,305.1 billion yoy)|
reflecting the recordings of:
4. Maintained prudent defensive financial management with continued monetization of and contraction in investments, resulting in an improvement in LTV (Loan-to-Value)*4 from the previous fiscal year-end.
|Continued monetization of investments|
|Contraction in investments|
SVF1 and SVF2 made new and follow-on investments (including those through share exchanges) totaling $2.76 billion in the period, a significant reduction from $39.24 billion in the same period of the previous fiscal year.
5. Reduced interest-bearing debt by ¥3,674.0 billion at SBG and its subsidiaries engaged in fund procurement, etc., from the previous fiscal year-end as a result of proactive debt repayment and the Early Physical Settlement
6. Completed share repurchase totaling ¥1.4 trillion
7. In February 2023, Z Holdings resolved on a merger policy among the company and mainly LINE and Yahoo Japan.
Z Holdings decided on a basic policy of implementing a merger by around the end of the fiscal year ending March 31, 2024, mainly around the three companies (Z Holdings and its core wholly owned subsidiaries: LINE and Yahoo Japan) to build an organization structure that puts more emphasis on products, to accelerate the expansion of synergies from the business integration.
Certain contracts that became due for settlement during the implementation period were also settled.
Gross amounts before deductions such as third-party interests and taxes.
Public portfolio companies are shares traded on stock exchanges or over-the-counter markets. Private portfolio companies are those that do not fall under the category of public portfolio companies. The same applies hereinafter.
The ratio of liabilities to holding assets, which is calculated as adjusted net interest-bearing debt divided by equity value of holdings. Equity value of holdings and adjusted net interest-bearing debt each exclude amounts to be settled at maturity or borrowings that are part of asset-backed finance. The calculation of adjusted net interest-bearing debt excludes interest-bearing debt and cash and cash equivalents, etc., attributable to entities managed on a self-financing basis, such as SoftBank Corp. (including its subsidiaries such as Z Holdings Corporation and PayPay Corporation), SVF1, SVF2, LatAm Funds, and Arm, as well as SB Northstar.
Refer to “Consolidated Financial Report for the nine-month period ended December 31, 2022” to find more details and definition of each company name and abbreviation.
The presentation and comments (including the posts from the official social media accounts) is made based on information available at the time it was made.
Statements in the webcasts that are not historical facts including, without limitation, our plans, forecasts and strategies are Forward-looking Statements.
Forward-looking Statements are subject to various risks and uncertainties, including, without limitation, general economic conditions, general market conditions, customer demand for products and services, increased competition, inherent risks in international operations and other important factors, which may cause actual results to differ materially from those expressed or implied in any Forward-looking Statement.
The presentation and comments contained in the webcasts (including the posts from the official social media accounts) regarding companies other than SBG and other companies within the SoftBank Group is quoted from public sources and others, and we have neither verified nor are we responsible for the accuracy of information.
SBG expressly disclaims any obligation or responsibility to update revise or supplement any Forward-looking Statement in any presentation material or generally to any extent. Use of or reliance on the information in the webcasts is at your own risk.
Video and audio difficulties may result depending on the communication and network environment.
Communication charges at the viewer's expense may be required to view SoftBank Group Corp.'s webcast, live streaming or video on demand.
A Wi-Fi environment is recommended for comfortable viewing on smartphones or tablets.
A notification will appear on this page if for some reason the live streaming cannot be provided.