Earnings Results for Q1 FY2023

Earnings Results for Q1 FY2023 ― August 8, 2023

SoftBank Group Corp. announced on August 8, 2023 its earnings results for the first quarter of the fiscal year ending March 31, 2024.


Full-length (1:26:31)

5-minute highlight video is also available.

[Short Video] SoftBank Group Earnings : Q1 FY2023 by Yoshimitsu Goto, Board Director, Corporate Officer, Senior Vice President, CFO & CISO

Earnings Highlights

1.Results highlights
¥699.0 billion investment loss (¥2,834.4 billion loss for the same period of the previous fiscal year)
  1. ¥689.7 billion investment loss at Investment Business of Holding Companies, which includes realized gain of ¥17.7 billion, unrealized valuation loss of ¥620.4 billion, and derivative loss on investments of ¥97.0 billion
  • ¥553.4 billion unrealized valuation loss on Alibaba shares included in the unrealized valuation loss above was offset by derivative gain of ¥769.9 billion relating to prepaid forward contracts using Alibaba shares (recorded as derivative gain (excluding gain or loss on investments)).
  1. ¥13.0 billion investment loss at SoftBank Vision Funds (excluding gains associated with SVF’s investments in the Company’s subsidiaries)
    Note: The SoftBank Vision Funds segment recorded ¥159.8 billion gain on investments, however, this included gains associated with SVF’s investments in shares of the Company’s subsidiaries (mainly Arm).
  • ¥38.7 billion loss at SVF1, ¥46.9 billion loss at SVF2, and ¥47.5 billion gain at LatAm Funds
  • For the investments held at the first quarter-end, the fair value of public portfolio companies*1 increased due to rising share prices, while the fair value of private portfolio companies*1 decreased, mainly reflecting markdowns of weaker-performing companies.
Loss before income tax of ¥176.2 billion (improvement of ¥3,116.3 billion yoy)

reflecting the recordings of:

  1. Finance cost of ¥139.6 billion
  2. Foreign exchange loss of ¥464.6 billion due to the impact of the weaker yen amid an excess of U.S. dollar-denominated liabilities (net) mainly at SBG over its U.S. dollar-denominated cash and cash equivalents and loans receivable
  3. Derivative gain (excluding gain or loss on investments) of ¥849.6 billion due to recording a gain relating to prepaid forward contracts using Alibaba shares following a fall in the share price, which offset unrealized valuation loss on the shares
Net loss attributable to owners of the parent of ¥477.6 billion (improvement of ¥2,685.1 billion yoy)

reflecting the recordings of:

  1. Income tax of ¥140.0 billion
  2. Net income attributable to non-controlling interests of ¥161.4 billion
2. Balancing defense and offense
LTV*2 improved from the previous fiscal year-end as a result of continued monetization
  1. Raised $4.39 billion through prepaid forward contracts using Alibaba shares
  2. SVF sold investments for a total of $0.92 billion, including full exits of four portfolio companies and partial exits of several public portfolio companies.*3
Expanded investments
  1. SVF invested a total of $1.58 billion.
  2. SBG and its wholly owned subsidiaries invested a total of ¥120.0 billion, mainly in strategic investments.
3. SVF

Gross performance since inception was $12.4 billion in gain for SVF1 and $18.6 billion in loss for SVF2.*4

4. Completed replacement of USD-denominated NC6 undated hybrid notes

The Company issued domestic hybrid bonds of ¥222.0 billion in April 2023. Together with funds procured through the hybrid loan*5 of ¥53.1 billion in May 2023, the Company completed the replacement of USD-denominated NC6 undated hybrid notes ($2.0 billion) with the first voluntary call date in July 2023. The Company also plans to replace JPY-denominated hybrid bonds (¥15.4 billion) in September 2023 with the first voluntary call date in the same month.

5.Confidential submission of draft registration statement on Form F-1 by Arm

Arm announced in April 2023 that it had confidentially submitted a draft registration statement on Form F-1 to the U.S. Securities and Exchange Commission relating to the proposed initial public offering of American depositary shares representing Arm’s ordinary shares. The Company intends that Arm will continue to be a consolidated subsidiary following the completion of the proposed initial public offering. The Company does not expect that any such offering would have a material effect on its consolidated results or financial position.

  1. 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.

  2. Loan-to-Value; the ratio of liabilities to holding assets, calculated as adjusted net interest-bearing debt divided by the 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. Also excludes a part of SB Northstar’s interest-bearing debt and short-term investments included in its cash position.

  3. Includes disposals as a result of restructuring of portfolio companies.

  4. Gross amounts before deductions, such as third-party interests and taxes

  5. The hybrid loan is eligible for 50% equity treatment for the drawn down amount by Japan Credit Rating Agency, Ltd. and S&P Global Ratings Japan Inc.


FY2023Aug. 8, 2023
CFO Reflections
Quarterly Results
Data Sheet
FY2022Aug. 8, 2022Nov. 11, 2022Feb. 7, 2023May 11, 2023
CEO/CFO Reflections
Quarterly Results
Data Sheet

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