Consolidated financial report for the six-month period ended September 30, 2024
Consolidated financial report for the six-month period ended September 30, 2024
Consolidated financial report for the six-month period ended September 30, 2024
@financepresentations1 month ago
This English translation of the financial report was prepared for reference purposes only and is qualified in its entirety by the original Japanese version.
SoftBank Group Corp. Consolidated Financial Report For the Six-Month Period Ended September 30, 2024 (IFRS)
Tokyo, November 12, 2024
1. Financial Highlights
(1) Results of Operations
(Percentages are shown as year-on-year changes)
(2) Financial Position
2. Dividends
Notes:
- 1. On October 21, 2024, the Company announced that the interim dividend for the fiscal year ending March 31, 2025 was determined under the resolution passed at the Board of Directors meeting held on the same date.
- 2. Revision of the latest forecasts on the dividends: No
(Millions of yen; amounts are rounded to the nearest million yen)
- (1) Significant changes in scope of consolidation during the period: Yes
- (2) Changes in accounting policies and accounting estimates
- [1] Changes in accounting policies required by IFRS: No
- (3) Number of shares issued (common stock)
- [1] Number of shares issued (including treasury stock):
- [2] Number of shares of treasury stock:
- [3] Number of average shares outstanding during the six-month period (April-September):
- * This condensed interim consolidated financial report is not subject to interim review procedures by certified public accountants or an audit firm.
- - ¥2,116.8 billion investment gain at Investment Business of Holding Companies
- · Investment gains of ¥1,280.1 billion on Alibaba shares and ¥566.2 billion *1 on T-Mobile shares Investment gain of ¥1,280.1 billion on Alibaba shares was offset by a derivative loss of ¥1,405.4 billion, which arose from prepaid forward contracts using Alibaba shares (recorded separately under 'derivative loss (excluding gain (loss) on investments)').
- - ¥599.8 billion investment gain at SoftBank Vision Funds (excluding gains associated with SVF's investments in the Company's subsidiaries)
- · The fair values of a portion of investments, including ByteDance and Coupang, increased.
- · Since inception, the gross performance has been a gain of $22.6 billion for SVF1 and a loss of $21.0 billion for SVF2. *2
- - Selling, general and administrative expenses of ¥1,433.1 billion
- - Finance cost of ¥283.7 billion
- - Foreign exchange gain of ¥289.0 billion. This was due to the yen's appreciation in exchange rates used for translation at the second quarter-end compared with the previous fiscal year-end, amid a net excess of U.S. dollar-denominated liabilities over U.S. dollar-denominated cash and cash equivalents and loans receivable, primarily within SBG.
- - Derivative loss (excluding gain (loss) on investments) of ¥1,478.0 billion. This arose from a loss relating to prepaid forward contracts using Alibaba shares following an increase in Alibaba's share price. This loss offset the investment gain on Alibaba shares as mentioned above.
- - Increase in third-party interests in SVF of ¥421.2 billion. This was mainly due to the recording of an investment gain of ¥896.4 billion at SVF1 (on an SVF segment basis), where the proportion of third-party interests is significant, resulting in an increase in third-party interests of ¥363.1 billion (attributable to investors entitled to performance-based distribution).
- - Income taxes of ¥223.8 billion
- - Net income attributable to non-controlling interests of ¥232.0 billion
- - Investment in Wayve Technologies, a U.K. company developing autonomous driving platforms based on data learning using AI
- - Acquisition of additional interests in equity method associate SBE Global, which constructs and operates solar power plants in the U.S., converting it to a subsidiary
- - Acquisition of U.K.-based company Graphcore, a designer and developer of semiconductor chips specialized for AI and machine learning, also converting it to a subsidiary
* Notes
As of September 30, 2024:
1,469,995,230 shares
As of March 31, 2024:
1,469,995,230 shares
As of September 30, 2024:
22,932,129 shares
As of March 31, 2024:
4,069,831 shares
As of September 30, 2024:
1,463,279,788 shares
As of September 30, 2023:
1,464,122,067 shares
Newly consolidated: 81 companies (SBE Global, LP and its 80 subsidiaries)
Excluded from consolidation: 427 companies (Fortress Investment Group LLC and its 426 subsidiaries)
[2] Changes in accounting policies other than those in [1]: No
[3] Changes in accounting estimates: No
* Note to forecasts on the consolidated results of operations and other items
Descriptions regarding the future are estimated based on the information that the Company is able to obtain at the present point in time and assumptions, which are deemed to be reasonable. However, actual results may be different due to various factors.
On November 12, 2024 (JST), the Company will hold an earnings results briefing for the media, institutional investors, and financial institutions. This earnings results briefing will be broadcasted live on the Company's website in both Japanese and English at https://group.softbank/en/ir. The data sheet will also be posted on the website on the same date at the same site.
(Appendix)
Contents
Disclaimer
This material does not constitute an offer to sell, or a solicitation of an offer to buy, limited partnership interests or comparable limited liability equity interests in any funds (including SoftBank Vision Fund 1, SoftBank Vision Fund 2, and SoftBank Latin America Funds) managed by any of the subsidiaries of SoftBank Group Corp. ('SBG'), including SB Global Advisers Limited, SB Investment Advisers (UK) Limited, or their respective affiliates, or any securities in any jurisdiction, nor should it be relied upon as such in any way.
Notice Regarding PFIC Status
It is possible that SBG (and certain subsidiaries of SBG) may be a 'passive foreign investment company' ('PFIC') under the U.S. Internal Revenue Code of 1986, as amended, for its current fiscal year due to the composition of its assets and the nature of its income. We recommend that U.S. holders of SBG's shares consult their tax advisors with respect to the U.S. federal income tax consequences to them if SBG and its subsidiaries are classified as PFICs. SBG is not responsible for any tax treatments or consequences thereof with respect to U.S. holders of SBG's shares.
Definition of Company Names and Abbreviations Used in This Appendix
Company names and abbreviations used in this appendix, unless otherwise stated or interpreted differently in the context, are as follows:
Exchange Rates Used for Translations
1. Results of Operations
(1) Overview of Results of Operations
1. Results highlights
â Â¥2,651.0 billion investment gain (Â¥963.6 billion loss for the same period of the previous fiscal year)
Note: Changes in the fair value of the shares of consolidated subsidiaries, including Arm and SoftBank Corp., are not recorded in the Company's consolidated statement of profit or loss.
â Â¥1,461.1 billion income before income tax (improvement of Â¥2,368.6 billion YoY)
reflecting the recordings of:
â Â¥1,005.3 billion net income attributable to owners of the parent (improvement of Â¥2,414.0 billion YoY)
reflecting the recordings of:
2. Sequentially implement investments for growth
â SBG and its wholly owned subsidiaries
Total investment of ¥419.5 billion *3
Examples of investments during the period:
â SVF
Total investment of $1.23 billion, *4 primarily in the Enterprise and Frontier Tech sectors, net of follow-on investments in the Company's subsidiaries that were eliminated in consolidation