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Investor Relations

Shareholder Value per Share

as of August. 7, 2020 16:00 (JST)


  • Shareholder value*1

    13,237
    yen/share

  • Equity value of holdings*2

    16,676
    yen/share


  • Net debt*3

    3,439
    yen/share

(Reference)
Share price 6,521yen
LTV (Loan to value)*4

Excluding asset backed financing

12 %
 

Details:

Equity value of holdings*2
Alibaba (updated daily)9,614 yen/share
SoftBank Corp. (updated daily)2,182 yen/share
T-Mobile (updated daily)1,796 yen/share
Arm1,321 yen/share
SoftBank Vision Fund (updated quarterly)1,312 yen/share
Others (updated quarterly)451 yen/share
Shares issued (excl. treasury shares)*51,965 million shares
USD/JPY105.54
 
 
  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 December 31, 2019 by the share price of Alibaba
    • SoftBank Corp.: calculated by multiplying the number of SoftBank Corp. shares held by SBG by the share price of SoftBank Corp. (reflected the transfer of a portion of SBKK shares executed in May 2020)
    • T-Mobile: the sum of (a), (b), (c), and (d) as follows
      (a) Equity value of common stock of T-Mobile to be sold: aggregate sale price of the shares to be sold (USD 20,115 million) before deducting underwriting discount and commission and certain other expenses, as announced in “Number of Shares to be Transferred and Purchase Price for the Transfer of Shares of Equity Method Associate (T-Mobile US, Inc.)” dated June 24, 2020
      (b) Equity value of shares subject to call options: calculated by multiplying the number of shares subject to call options that Deutsche Telekom AG to receive (101,491,623 shares) by the share price of T-Mobile
      (c) Equity value of shares that are not subject to sale or call options: calculated by multiplying the number of shares held by SBG at April 1, 2020 that are not subject to (a) or (b) mentioned above (4,800,000 shares), by the share price of T-Mobile
      (d) Fair value of the right to have common stock of T-Mobile (48,751,557 shares) re-issued to SBG by T-Mobile for no additional consideration under certain conditions
    • Arm: calculated based on the acquisition cost, excluding the number of Arm shares held by SVF1
    • SoftBank Vision Fund: Value equivalent to SBG's portion of SVF1's holding value + Performance fees accrued, etc.
    • 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 = Consolidated gross debt - Gross debt of subsidiaries (Non-recourse)
    • SBG gross debt: adjusting (e), (f), (g), and (h) as follows
      (e) JPY Hybrid Bonds issued in September 2016: 50% of outstanding amount, which is recorded as debt in consolidated B/S, is treated as equity
      (f) USD Hybrid Notes issued in July 2017: 50% of outstanding amount, which is recorded as equity in consolidated B/S, is treated as debt
      (g) JPY Hybrid Loan executed in November 2017: 50% of outstanding amount, which is recorded as debt in consolidated B/S, is treated as equity
      (h) The sum of the amount (before deducting cost) procured through several prepaid forward contracts using Alibaba shares, such as a forward contract, a floor contract, and a collar contract. The contracts were entered into in April and May 2020.
    • SBG cash position, etc.: considering the impacts (i), (j), (k) and (l) as follows
      (i) Estimated cash proceeds and capital call payment related to the assets transfer of SVF1 from SBG that had been already completed by the end of March 2020
      (j) The sum of the amount procured through several prepaid forward contracts using Alibaba shares, such as a forward contract, a floor contract, and a collar contract. The contracts were entered into in April and May 2020.
      (k) The total amount of SBG’s share repurchase from April 1, 2020 to June 15, 2020
      (l) Transfer price for the transfer of a portion of SBKK shares executed in May 2020
    • Consolidated gross debt = Consolidated gross interest-bearing debt: 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, SVF1, Arm, etc.
  4. LTV (Loan to value)
    • LTV (Loan to value) = Net debt / Equity value of holdings
      Net Debt : excluding (m), (n), and (o) as follows
      (m) The sum of the amount equivalent to the outstanding margin loan backed by Alibaba shares and the financial liabilities relating to the variable prepaid forward contract (collar contract) using Alibaba shares (entered into in November 2019)
      (n) The sum of the amount (before deducting cost) procured through several prepaid forward contracts using Alibaba shares, such as a forward contract, a floor contract, and a collar contract. The contracts were entered into in April and May 2020
      (o) The sum of the amount equivalent to the outstanding margin loan backed by SBKK shares

      Equity value of holdings : excluding (p), (q), and (r) as follows
      (p) The sum of the amount equivalent to the outstanding margin loan backed by Alibaba shares and the amount to be settled at the maturity of the variable prepaid forward contract (collar contract) using Alibaba shares (entered into in November 2019) calculated based on the share price
      (q) The sum of the amount to be settled at the maturity of the several prepaid forward contracts using Alibaba shares, such as a forward contract, a floor contract, and a collar contract, calculated based on the share price of Alibaba. The contracts were entered into in April and May 2020
      (r) The sum of the amount equivalent to the outstanding margin loan backed by SBKK shares
  5. Shares issued (excl. treasury shares)
    • Excluding the number of treasury shares at March 31, 2020 and the total number of shares repurchased by SBG from April 1 to June 15, 2020
  • SVF1: valuation of fair value
    • 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 Portfolio Valuations team is functionally independent from portfolio management and may engage external specialists with a high level of knowledge and experience as needed, in determining the fair value of equity investments and certain complex financial instruments. In parallel, the Investor Advisory Board of the SVF1 has appointed certain external firms as Independent Valuers to perform semi-annual independent valuation for the SVF1’s investments. Valuation results, as determined by the SBIA Portfolio Valuations team, are reviewed and approved by the SBIA Valuation and Financial Risk Committee (”VFRC”), with due consideration of the Independent Valuer’s reports. The VFRC comprises the SBIA CEO, CFO, CRO, General Counsel, Deputy CFO and senior Investment Professionals. Once approved by the VFRC, valuation results are subject to a financial statement audit by the SVF1’s independent auditors (Deloitte). The valuation results are presented to the SBIA UK Board for final approval.
    • Valuation Methodology: The applicable reporting framework of the SVF1 is IFRS (the “Standards”). Specifically, IFRS 13 (Fair Value Measurement) outlines the general framework for measuring fair values. The SVF1 is also compliant with the International Private Equity and Venture Capital (IPEV) valuation guidelines. In line with the Standards, the SVF1 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 Flow 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. Furthermore, we recognize the senior-subordinate capital structure of the companies in which we invest, i.e., senior shares are valued more highly than junior-ranking shares.
  • SBG = SoftBank Group Corp., SBKK = SoftBank Corp., T-Mobile = T-Mobile US, Inc., SVF1 = SoftBank Vision Fund, SBIA = SB Investment Advisers (UK) Limited
  • Before considering tax unless otherwise stated
  • Based on data as of March 31, 2020 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.