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SoftBank Rings Up Record $37B Profit

May 12, 2021

Japan's SoftBank Group reported results for FY2020.

SoftBank set profit records for a listed Japanese company. The form made 1.93 trillion yen ($17.7 billion) in three months ended March 31, totaling fiscal-year profit to $46 billion.

The IPOs of Coupang (delivered $24.5 billion in paper profit), DoorDash and others drove the Vision Fundsí $21 billion in earnings for the quarter. SoftBank increased it's contributions to its second Vision Fund three fold , to $30 billion.

Gain on investments of •7,529.0 billion

Gain on investments of •7,529.0 billion

 

- Gain on investments at SVF1, SVF2, and others of •6,292.0 billion
  • SVF1 recorded realized gain on sales of investments (net) of •423.7 billion, resulting from the sales of investments in Guardant Health (partial), OSIsoft, Uber (partial), and others. In addition, SVF1 recorded unrealized gain on valuation totaling •4,285.1 billion for listed portfolio companies (including gains of •2,597.8 billion for Coupang and •661.1 billion for DoorDash). Unrealized gain on valuation (net) for unlisted portfolio companies totaled •1,193.0 billion.
  • SVF2 recorded unrealized gain on valuation (net) of •490.3 billion, mainly due to strong stock performance of listed portfolio companies such as KE Holdings.
 

- Gain on investments at Investment Business of Holding Companies of •945.9 billion: Gain relating to sales of T-Mobile shares of •421.8 billion, unrealized gain on valuation of investments of •219.6 billion related to T-Mobile shares continued to be held by the Company, and derivative gain of •264.4 billion resulting from an increase in the fair value of a contingent consideration were recorded. Conversely, investment loss from investments in listed stocks and other instruments of •232.9 billion was recorded.

  • Income before income tax of •5,670.5 billion

     
    Income before income tax of •5,670.5 billion

     

  • Net income attributable to owners of the parent of •4,988.0 billion

     
    Net income attributable to owners of the parent of •4,988.0 billion

     

Continued strong performance of investment business

  • SVF1: During the fourth quarter, AUTO1, Coupang, and View were listed, bringing the total number of listings for the fiscal year to six. As of the fiscal year-end, 11 out of a total of 81 portfolio companies were listed.
  • SVF2: During the fourth quarter, Qualtrics was listed. As of the fiscal year-end, three out of a total of 44 portfolio companies were listed.
  • SPACs: During the fourth quarter, seven special purpose acquisition companies (SPACs) controlled by subsidiaries were listed, including three controlled by SBIA, bringing the total number of listed SPACs at the fiscal year-end to nine. One of the SPACs completed a merger with an operating company.

Completion of the •4.5 trillion program

  • Sale or monetization of assets: The Company completed sale or monetization of assets totaling •5.6 trillion over the six months from April to September 2020, through the partial sale or monetization of shares of T-Mobile, Alibaba, and SoftBank Corp.
  • Share repurchase: The size of the share repurchase was set at a total of up to •2.0 trillion. Of this, the Company repurchased shares for a cumulative total of •1.742.2 billion by March 31, 2021 and a cumulative total of •1,950.2 billion by April 30, 2021. The Company will continue repurchasing shares to the upper limit of the program.
  • Debt reduction: The Company reduced debt by a total of •1 trillion by the fiscal year-end through repurchasing domestic corporate bonds and foreign currency-denominated corporate bonds, as well as repaying senior loans and borrowings made under the commitment line.
  • The rest of the proceeds has been invested in highly liquid listed stocks in readiness for future investment opportunities.

Dividend per share for the fiscal year decided to be •44 by the Board of Directors

Business integration of Z Holdings Corporation and LINE Corporation completed on March 1, 2021

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