Shareholder Value per Share
Daily updates on shareholder value per share will no longer be posted on SBG website after
earnings results briefing for FY2020/Q1.
The most recent shareholder value per share disclosed is posted in this page.
From SBG Earnings Results Briefing for FY2020/Q1, we have changed the definition of equity value of holdings and net debt to “without consideration of asset-backed financing.”
Please see the notes in this page for more details.
as of August. 11, 2020 8:00 (JST)
Equity value of holdings*2
Share price 6,521yen LTV (Loan to value)*4 11 %
|Equity value of holdings*2|
|Non-strategic listed shares (Alibaba, T-Mobile, etc.)||9,264 yen/share|
|Strategic listed shares (SBKK)||2,013 yen/share|
|Other (unlisted shares)||464 yen/share|
|Total number of shares issued (excl. treasury stock)*5||1,883 million shares|
- Shareholder value
- Shareholder value = Equity value of holdings - Net debt
- Shareholder value per share = Shareholder value / Total number of shares issued (excl. treasury stock)
- Equity value of holdings *without consideration of asset-backed financing
- Non-strategic listed shares (Alibaba, T-Mobile, etc.): the sum of (a) to (c) below
(a) Alibaba: calculated by multiplying the number of Alibaba shares held by SBG as of March 31, 2020 by the share price of Alibaba and deducting (i) below.
(i) the sum of the amount to be settled at the maturity (calculated by using the share price of Alibaba) of the several prepaid forward contracts using Alibaba shares, such as forward contracts, floor contracts, collar contracts and call spread. These contracts were executed by July 31, 2020.
(b) T-Mobile: the sum of (ii) and (iii) less (iv) and (v) below.
(ii) calculated by multiplying the number of shares held by SBG (including the number of shares subject to call options (101,491,623 shares) received by Deutsche Telekom AG) by the share price of T-Mobile.
(iii) Fair value of SBG’s right to acquire T-Mobile shares (48,751,557 shares) for no additional consideration if certain conditions are met.
(iv) the amount of derivative financial liabilities relating to the call options received by Deutsche Telekom AG.
(v) the loan amount that is considered as asset-backed financing non-recourse to SBG, which is a portion of the total borrowing amount from the margin loan using T-Mobile shares pledged as collateral. (SBG has, as an exception, guaranteed a portion of the $4.38bn margin loan which is secured by the T-Mobile shares. We consider $2.30bn, the amount not guaranteed by SBG, as a non-recourse loan amount obtained by asset-backed financing. Please note that as a precondition for SBG to fulfill its guarantee obligations, the lenders are obligated to first recover to the maximum extent possible from Alibaba shares that have been provided by SBG as a collateral for the margin loan.)
(c) Other (listed shares): calculated by multiplying the number of shares held by SBG as of June 30, 2020 by the share price of each listed share (shares of companies that were newly listed during July 1 to August 11, 2020, were calculated by multiplying the latest number of each share held by SBG, that can be obtained during the period, by the share price of each share.)
- Strategic listed shares (SBKK): calculated by multiplying the number of SBKK shares held by SBG by the share price of SBKK, and deducting (d) below.
(d) the amount equivalent to the outstanding margin loan backed by SBKK shares
- Arm: calculated based on the acquisition cost, excluding the number of Arm shares held by SVF1
- Other (unlisted shares): calculated based on the fair value of unlisted shares, etc. held by SBG. The shares of companies that were newly listed during July 1 to August 11, 2020 are excluded.
- SoftBank Vision Fund: value equivalent to SBG's portion of SVF1's holding value + performance fees accrued, etc.
- Non-strategic listed shares (Alibaba, T-Mobile, etc.): the sum of (a) to (c) below
- Net debt *without consideration of asset-backed financing
- 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) to (j) below
(e) JPY Hybrid Bonds issued in September 2016: deducting 50% of outstanding amount, recorded as debt in consolidated B/S, that is treated as equity
(f) USD Hybrid Notes issued in July 2017: adding 50% of outstanding amount, recorded as equity in consolidated B/S, that is treated as debt
(g) JPY Hybrid Loan executed in November 2017: deducting 50% of outstanding amount, recorded as debt in consolidated B/S, that is treated as equity
(h) deducting the sum of the financial liabilities relating to several prepaid forward contracts using Alibaba shares, such as forward contracts, floor contracts, and collar contracts. These contracts were executed by June 30, 2020.
Note that the derivative liabilities relating to the call spread are not included in SBG gross debt.
(i) deducting the amount equivalent to the outstanding margin loan backed by SBKK shares
(j) deducting the total face value of Domestic Corporate Bonds repurchased in July 2020
- SBG cash position, etc.: considering the impacts (k) to (p) below
(k) the outlays relating to the repayment of the margin loan backed by Alibaba shares, which were executed in July 2020
(l) the loan amount that is considered as asset-backed financing non-recourse to SBG, which is a portion of the margin loan using T-Mobile shares pledged as collateral, as above-mentioned (b)-(v) under “Equity value of holdings“ section.
(m) deducting the total amount of SBG’s share repurchase from July 1 to August 3, 2020
(n) adding the amount procured through collar contracts using Alibaba shares, which was executed in July 2020.
(o) deducting the total face value of Domestic Corporate Bonds repurchased in July 2020
(p) the amount of cash proceeds from the sales of shares that were transferred to the shareholders in the rights offering by T-Mobile executed in August 2020
- Consolidated gross debt = Consolidated gross interest-bearing debt: excluding deposits for banking business of 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, SVF1, Arm, etc.
- LTV (Loan to value)
- LTV (Loan to value) = Net debt / Equity value of holdings
- Total number of shares issued (excl. treasury stock)
- Excluding the number of treasury stock as of June 30, 2020 and the total number of shares repurchased by SBG from July 1 to August 3, 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 June 30, 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.