Transcripción editada de 9984.T Llamada en conferencia o presentación de ganancias 20 de mayo 20 10:59 GMT

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Tokio, 29 de mayo de 2020 (Thomson StreetEvents) – Transcripción modificada de la conferencia telefónica o presentación de las ganancias de SoftBank Group Corp el miércoles 20 de mayo de 2020 a las 10:59:00 GMT

SoftBank Group Corp. – CEO

SoftBank Group Corp. – Vicepresidente Senior, CFO y CISO

Nomura Securities Co. Ltd., División de Investigación – Jefe del Equipo de Información y Telecomunicaciones, Japón y analista, Investigación de Telecomunicaciones, Japón

Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., División de Investigación – Analista Senior

UBS Investment Bank, División de Investigación – Director Ejecutivo y analista de software y telecomunicaciones

Nomura Securities Co. Ltd., División de Investigación – Estratega de Renta Fija

Daiwa Securities Co. Ltd., División de Investigación – Analista de Investigación

Buenos días damas y caballeros. Muchas gracias por esperar. Ahora nos gustaría comenzar la sesión informativa para inversionistas de SoftBank Group Corporation sobre los resultados de las ganancias para el año financiero que finalizó el 31 de marzo de 2020. En primer lugar, me gustaría presentarles a los representantes de SoftBank. Sr. Goto, vicepresidente senior y director financiero de SoftBank Group Corporation; Sra. Kimiwada, vicepresidenta senior y directora de contabilidad de SoftBank Group Corporation; Navneet Govil, socio gerente y director financiero de SoftBank Investment Adviser de los Estados Unidos

Esta sesión comienza con una descripción general de nuestros resultados consolidados de la Sra. Kimiwada, actualización financiera del Sr. Goto, seguido de la actualización del fondo regional del Sr. SoftBank Navneet Govil. Puede elegir inglés o japonés para esta reunión y podemos responder preguntas en inglés y japonés después de la presentación. Y esta reunión estará disponible en su – en nuestro sitio web más adelante.

Ahora me gustaría invitar a la Sra. Kimiwada a hablar sobre resultados consolidados.

Sra. Kimiwada, por favor.

Kazuko Kimiwada, SoftBank Group Corp. – CEO [2]

[Interpreted] Buenos días damas y caballeros. Mi nombre es Kimiwada, gerente de contabilidad del grupo SoftBank. Publicamos nuestros resultados de ganancias anteayer y me dejo acompañarlo desde el punto de vista contable.

Echa un vistazo a la diapositiva no. 2. Este es un resultado consolidado. Para los números, estoy seguro de que lo sabes. Solo tenga en cuenta que Sprint se unió a T-Mobile el 1 de abril. Anteriormente, era subsidiaria, pero con respecto a este resultado de ganancias, los tratamos como operaciones discontinuadas. Y los números para el año fiscal 18, hemos realizado cambios que esperamos (imperceptibles). Por lo tanto, los ingresos operativos y las ventas netas no incluyen los números de Sprint, solo para recordar.

Consulte la página 3, edite en nuestros segmentos para informar. Como dije antes, Sprint ahora está excluido de nuestros segmentos.

Página 4, fusión de Sprint / T-Mobile e impacto en las ganancias consolidadas. Este es un resumen del impacto. Una vez más, el 1 de abril, la fusión se completó y Sprint ya no se convirtió en una sucursal. Y el nuevo T-Mobile, en cambio, se ha convertido en un asociado del método de equidad. Y poseemos alrededor del 24% de la nueva compañía. Entonces, para el año fiscal 19, Sprint se clasifica como una operación descontinuada. Y para los activos y pasivos, se presentan como activos y pasivos mantenidos para la venta al final del ejercicio financiero ’19. Y para el año fiscal 20, planeamos registrar una ganancia relacionada con la pérdida de control entre las ganancias o pérdidas netas resultantes de la interrupción del negocio. Más específicamente, se representará la diferencia entre el valor total de las nuevas acciones móviles, las nuevas acciones de T-Mobile y el valor contable consolidado de Sprint. Estas cuotas también incluyen cuotas para apostar.

Página 5, hablando de WeWork, que tuvo un gran impacto en las ganancias del año 19. El valor razonable de WeWork cayó a $ 2.9 mil millones a fines de marzo. Esta es una empresa privada. Para la asignación del valor razonable, utilizamos un método de descuento de flujo de efectivo en el enfoque de ingresos. Como puede ver en la tabla, en octubre de 2019, firmamos algunos acuerdos con WeWork y estas declaraciones muestran los detalles de la actualización. Y si echa un vistazo al número 3, soporte de crédito y notas de compra. Para el número A, soporte de crédito. Y para B, notas sin garantía. Ni A ni B han sido utilizados o emitidos. Pero debido al deterioro del rendimiento, registramos números en consecuencia. Volveré al punto más tarde.

Página 6. Una vez más, WeWork. Inversión en WeWork por la filial de inversión WeWork. Esto es desde el punto de vista de SoftBank, lo que significa excluir las inversiones del SoftBank Vision Fund. Hablando de la inversión o garantía de calidad del grupo SoftBank. Si echas un vistazo, el extremo derecho, Q4, menos $ 1.777 mil millones en total. Esta fue la pérdida registrada para el año fiscal, lo siento, Q4. Y los detalles se muestran en la tabla.

Y pase a la diapositiva 7. Probablemente esto sea nuevo para usted, hablando del acuerdo de garantía financiera y el compromiso del préstamo, las responsabilidades asociadas con ellos. El crédito alrededor de WeWork se deterioró en el cuarto trimestre. En el tercer trimestre, la pérdida ya había sido registrada. Pero, sobre todo, debido al mal crédito hacia WeWork, decidimos contabilizar el suministro. En el tercer trimestre, ve a WeWork [not] fue alrededor del 12%. Y el cuarto trimestre, subió al 35%. Entonces la tarjeta de crédito empeoró en el cuarto trimestre. Como resultado, se han registrado disposiciones.

Por lo tanto, una vez que el crédito haya mejorado, volverán las provisiones adicionales. La provisión en el tercer trimestre volverá a medida que aumente, a menos que ocurra un evento significativo. En términos independientes, sobre una base japonesa, no hay necesidad de registrar una disposición. Pero para la base consolidada, que se basa en las NIIF, hemos registrado una provisión. Pero por nuestra cuenta, no hemos reconocido la provisión para el deterioro crediticio de WeWork.

En la página 8, la valoración cambió desde el tercer trimestre, pero no materialmente. E Página 9 habla sobre el resumen del estado de resultados consolidado basado en las NIIF. Si observa la ganancia o pérdida de línea del instrumento financiero FVTPL, menos 668 mil millones de yenes japoneses, que consiste principalmente en una pérdida relacionada con la reducción de WeWork. Y para Sprint, pérdida neta debido a la interrupción del negocio, este es Sprint.

Y en cuanto al presupuesto, en la página 10, no hay nada que destacar. Entonces, eche un vistazo al resumen B / S después solo.

Luego pasamos a, si es posible, ingresos y pérdidas de SVF y otros fondos administrados por SBIA. Por lo tanto, se muestran las ganancias o pérdidas antes de la línea impositiva, como lo hemos hecho en el pasado.

Y habla brevemente de impuestos. El beneficio antes de impuestos fue muy pequeño, llegando a JPY 35.5 mil millones. Y las tasas de impuestos son bastante complicadas. Por lo tanto, me gustaría tratar de explicar brevemente desde un punto de vista fiscal. La tasa efectiva del impuesto sobre la renta desde el punto de vista de la cantidad es de 797 mil millones de yenes, que incluye la vista actual y la diferida. Asuntos de Interior, SoftBank Corp. y Yahoo! o Z Holdings, son rentables. Se han registrado alrededor de 230 mil millones de yenes para la provisión actual. Para la sección diferida, los gastos del contrato de futuros de Alibaba desde una perspectiva diferida y las ganancias derivadas del cambio en las inversiones relacionadas con la cotización de Alibaba y las ganancias derivadas de nuestra propiedad son de aproximadamente 300 mil millones de yenes japoneses. En general, 797.7 mil millones de yenes japoneses es la tasa efectiva del impuesto sobre la renta y la tasa sabia, que es un poco loco, pero solo quiero prestarle atención: darle una perspectiva sobre la tasa impuesto.

Y la siguiente diapositiva, esos traspasos, cuánto poseemos se muestra en la tabla. En general, desde una perspectiva consolidada, tenemos alrededor de 1 billón de yenes japoneses en pérdidas arrastradas. Para nuestras actividades domésticas, la mayoría son propiedad de SoftBank Group. A menudo se nos solicitan tarifas asociadas con el programa de monetización de JPY 4.5 billones. Y, por supuesto, estamos considerando aprovechar estos traspasos. Después del 1 de abril, el financiamiento con las acciones de Alibaba, incluso si terminamos vendiéndolas, en términos de tiempo, será de 2 años por delante, de 3 años. Por lo tanto, no esperamos impuestos muy temprano. Y la renta imponible determina un monto de impuestos a pagar, pero nos beneficiaremos de tales traspasos de acuerdo con la legislación fiscal en los respectivos países: tratamiento fiscal en los respectivos países.

Todo esto es de mi parte. Gracias.

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Representante corporativo no identificado, [3]

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[Interpreted] Muchas gracias. A continuación, me gustaría invitar al Sr. Goto a darle una actualización financiera. Sr. Goto, por favor. Y por favor, denos un momento para cambiar a la diapositiva del Sr. Goto. Gracias.

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Yoshimitsu Goto, SoftBank Group Corp. – Vicepresidente sénior, CFO y CISO [4]

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[Interpreted] Buenos días a todos. Este es Goto, nuestro CFO de SoftBank Group Corp. Muchas gracias por acompañarnos hoy en ciertas circunstancias que es una lástima que no podamos verlo en persona, pero creo que todos lo entienden. Ahora déjame ir a la presentación.

En la página 2, estos son los periódicos recientes, artículos muy simbólicos del periódico. Es un entorno sin precedentes y creo que esta dimensión de la pandemia mundial es la primera vez en 100 años, creo. Y la estructura industrial y los estilos de vida también son completamente diferentes a los de hace 100 años.

Y en la tabla de la izquierda, estas son las actividades financieras muy cautivadoras de varias compañías que hemos recopilado por nuestra cuenta. No hablaré de cada individuo, pero de esta tabla se puede decir que esta variedad de segmentos del sector, las compañías líderes necesitan recaudar fondos. Esta es la situación que enfrentamos en este momento. Y esto es lo mismo para todos nosotros en todo el mundo, y creo que el gobierno de cada país está tratando de hacer frente a la situación tanto como sea posible, así como a todas las sociedades.

Desde el punto de vista del grupo SoftBank, la seguridad de nuestro grupo es realmente muy alta, incluso bajo ciertas circunstancias. No es que estemos tratando de buscarnos a nosotros mismos y encontrar buenas noticias para hacer comentarios, pero mirando nuestro estado crediticio y también nuestro estado financiero, capacidad operativa, también mirando la liquidez neta, creo que estamos en una posición sólida. . Y esto se debe a que las empresas individuales del grupo se están centrando en el servicio de comunicación de información.

Como saben, Masa, nuestro fundador y CEO, incluso después de 40 años, todavía está al frente de la compañía y la administración de la compañía. Y cuando fundó el negocio, que a menudo escuchas, pero Masa, como dijiste con frecuencia, agrupó todo el sector y el segmento y pensó en qué segmento es el segmento o el negocio más duradero. Y borró uno por uno que pensó que no duró mucho.

Por ejemplo, las producciones, que parecen ser un sector muy robusto y estable, en particular la fabricación. Una vez que se adquiere la marca y también es líder del mercado, esta actividad de fabricación parece muy estable y sólida. Sin embargo, también existe un riesgo para la industria manufacturera cuando los productos ya no se venden o se produce un cambio de paradigma, por lo que otra persona liderará el mercado. Incluso en el mercado comercial, el comercio minorista siempre requiere CapEx porque deben distribuirse a las tiendas, etc.

Entonces, considerando todo esto, Masa eligió esta actividad como su actividad principal y esto también se indicó en nuestra filosofía corporativa. Por lo tanto, esta filosofía empresarial será apreciada durante mucho tiempo. Además, como equipo financiero, nos gustaría asegurarnos de que podamos administrar y administrar nuestra empresa de una manera saludable y sólida. Y creo que es por eso que hemos podido construir una base tan sólida para administrar la empresa incluso en una situación de crisis.

Página 3. En tales circunstancias, el valor de las acciones de las tenencias es de aproximadamente 28.5 billones de yenes, de los cuales el 70% son valores cotizados. Deuda neta, si alquila, menos deuda neta para calcular el valor del préstamo, lo que nos da un 14.2%. La posición de efectivo hasta la fecha es de alrededor de 3 billones de yenes japoneses. En cuanto a la posición de efectivo, a continuación puede ver un pequeño cuadro debajo del cual nuestra liquidez es, entre todas las empresas en Japón, que estamos en un nivel muy alto de posiciones de efectivo, sin duda.

La salud de la empresa es su balance y posición de efectivo. Estos 2 son los principales indicadores para medir la solidez de la empresa, creo. Y desde ese sentido, somos muy sólidos como negocio. Y como compañía de inversión, creo que hay muchas opiniones al respecto. Pero ser una compañía de inversión y ser una compañía operativa, que es más segura, es el tipo de argumento que la gente puede hacer. Pero si tiene actividades operativas y espera generar flujos de efectivo y si puede medir el valor de su empresa calculando el flujo de efectivo con descuento, esto es muy popular, por lo que muchas personas piensan que son muy seguros. Pero esto no siempre es cierto porque si ve que se trata de una situación de crisis, esto lo hace aún más claro que en el otro segmento, estamos aún más seguros. Y esto es algo que puedes ver en la situación actual.

Estamos en la página 4, una compañía tenedora de inversiones estratégicas. Esto significa que nuestro negocio principal actual es la inversión. Entonces, una vez más, observando el flujo de entrada y salida de liquidez, si la situación es grave, se vuelve más cauteloso con respecto a las nuevas inversiones, de modo que podamos administrar nuestro flujo de salida de flujos de efectivo. Así que esperemos y veamos dónde será el mejor momento para ser aún más agresivo o agresivo. Y este momento se puede medir sobre la base de varios indicadores clave de rendimiento que muestran la seguridad de la compañía de que podremos hacer nuestro próximo movimiento. Y eso es algo que se requiere para nuestro equipo financiero.

En la página 5, la mayor fuente de esto, que es el valor de la participación, actualmente se ubica en 28.5 billones de yenes japoneses. Esto se debe a que recibió algún impacto del coronavirus en los últimos meses. El impacto en realidad aumentó a 2 billones de yenes japoneses. Si observa este gráfico, que comienza en 1999, y esta es una tendencia en el valor de las acciones, burbuja de crisis, burbuja de Internet, crisis financiera en 2008, en comparación con eso, nuestro balance actual es aún más fuerte y más expandido. . Y con eso, creo que estamos teniendo una gestión muy segura. Y para los detalles, tocaré en las siguientes páginas, pero estos 28 billones de JPY están compuestos principalmente por títulos muy defensivos. Entonces, esta es otra razón por la que creemos que somos muy saludables.

En el pasado, cuando recién comenzamos Yahoo! Japón y solo contamos con Yahoo! Japón durante mucho tiempo, y desde entonces, después de la adquisición de Vodafone, ves la barra verde. Esta es la base móvil, que no se ha enumerado por un tiempo. Y la naranja es Alibaba, que ha contribuido dramáticamente en los últimos 6 años. Y, de hecho, nuestra inversión en Alibaba volvió en 2000, por lo que no se ha incluido en la lista desde hace mucho tiempo, pero estamos tratando de alentarlos a crecer. La barra verde, de hecho, la lista solo se publicó el año pasado. Parece que el valor ha disminuido ligeramente, pero debido a que hicimos una oferta pública y redujimos la propiedad, pero al mismo tiempo, hicieron una buena contribución en términos de dinero.

Página 6. Y esta es una comparación con la crisis financiera de 2008 y hoy. Por lo tanto, 2008, 2009 y 2020. En realidad, el valor de las acciones de las tenencias ha crecido aproximadamente 6 veces, de las cuales el 78% son valores cotizados. En el medio, préstamo sobre valor, actualmente 14,2%. En el momento de la crisis financiera estábamos en un 55%. Por supuesto, ese es el momento en que nuestra consolidación de negocios móviles no está en la lista. Así que estábamos en 1 equipo para la operación del negocio móvil. Por lo tanto, el EBITDA de este sector móvil, que es el margen EBITDA o la relación de apalancamiento, fue un KPI importante que ahora no es importante, pero luego fue un KPI muy importante.

Y también en el extremo derecho están los bonos que nos han emitido. Entonces, el CDS para bonos, y en marzo de 2009, superó los 2000 puntos básicos. Y ahora eso es actualmente alrededor de 500 puntos básicos. Entonces, incluso en la situación actual, todavía está en este nivel. Por lo tanto, nuestro nivel de crédito ha cambiado drásticamente desde 2009 y desde entonces hemos podido tener más confianza.

Página 7. En comparación con el trimestre anterior, en febrero, lo que sucedió en los últimos 3 meses y el impacto principal proviene del coronavirus, creo. Valor patrimonial de las explotaciones, alrededor de 2,6 billones de yenes menos, lo que refleja la situación del coronavirus. Sin embargo, fue bastante limitado en términos de impacto. Valor del préstamo, del 16,1% al 14,2%, por lo que aquí hay una mejora del 2%. En este nivel, creo que la mejora del 2% en el préstamo de valor es bastante importante. Y la posición de efectivo es actualmente de 3 billones de yenes japoneses. Hasta ahora hemos aumentado en 1 billón de yenes japoneses. Entonces, en comparación con el anuncio del trimestre anterior, la seguridad realmente ha aumentado durante 3 meses.

En la página 8. Entonces, ¿cómo enfrentamos el momento, que es una crisis sin precedentes, la primera vez en 100 años. Esperamos que sea temporal, pero podría durar mucho tiempo, por lo que tenemos que enfrentar la situación. También desde un punto de vista financiero, teniendo en cuenta la situación actual, como saben, la incertidumbre de la macroeconomía está aumentando, por lo tanto, la ansiedad de los inversores está aumentando. También por el precio de nuestra acción, bajamos un 53%. CDS también saltó a casi 400 puntos básicos. Esto es algo que hemos experimentado en los últimos 3 meses debido a este momento de crisis.

Por esta razón, debemos asegurarnos de que podemos mantener nuestras disciplinas financieras, por lo tanto, no hay cambios en nuestra política financiera. Y podemos decir eso porque nuestras disciplinas financieras no han cambiado desde hace mucho tiempo y creemos que podemos hacer lo mismo. Entonces, en este momento, nosotros, en tiempos de ser agresivos, ¿o no deberíamos estar haciendo algo? Creo que todos se enfrentan a una situación muy difícil. Tenemos una posición tan segura. Hay cosas que podemos hacer con una posición tan segura, que es algo escrito a las partes interesadas. Así que recientemente mencioné la liquidación o monetización de 4,5 billones de yenes japoneses, por lo que estos pueden ser buenos rendimientos para los accionistas y los tenedores de bonos. Y es algo que podemos hacer ahora. Y es gracias a SoftBank que podemos hacerlo.

Y otra cosa son las actividades agresivas como las nuevas inversiones. ¿No hacemos nada? ¿Deberíamos dormir en efectivo? Esto no es algo que no queremos hacer porque también debemos estar preparados para el crecimiento futuro durante este período para que lo que estamos comprometidos, como los interesados, los rendimientos y la mejora financiera, nos demos cuenta de todo eso, además de eso, nos gustaría considerar y, por supuesto, siendo cuidadosos y muy cautelosos, también nos gustaría considerar la nueva oportunidad de inversión. Así que ser conservador es, por supuesto, sin duda. Pero nuestro entorno actual también puede ser una buena oportunidad, por lo tanto, o nos gustaría asegurarnos de no perder ninguna oportunidad. Entonces la seguridad primero. Al mismo tiempo, nos gustaría desafiar incluso si hay posibilidades.

Página 9. JPY 4.5 billones de programas, acabamos de anunciar recientemente. Y en este momento, estamos procediendo o ejecutando. Y una vez más, para refrescar su memoria, monetizar 4.5 billones de yenes en ventas de activos es un programa que estamos tratando de hacer. Entonces, 2 billones de yenes japoneses para el retorno a los accionistas y 500 billones de yenes japoneses ya se han anunciado antes de 4.5 billones de yenes japoneses. Por lo tanto, en total, 2.5 billones de yenes japoneses representan el monto de las acciones: rendimientos de acciones o recompras de acciones. Y los 2 billones de yenes japoneses restantes de 4.5 billones de yenes japoneses, lo que nos da 2 billones de yenes japoneses, lo siento, 2.5 billones de yenes japoneses. Entonces esto nos da [JPY 5 trillion]. Es posible que tengamos que considerar algunas de las consideraciones impositivas y de otro tipo, pero excluyendo todas aquellas que nos gustaría utilizar para la mejora financiera, hay 3 elementos que debemos proceder. Una es: tenemos un préstamo en préstamo y también la emisión de bonos. Y tenemos una reserva de efectivo. Entonces esos 3.

Como deberíamos pagar un préstamo, lo que hará que los bancos estén más felices. Para los bonos, ¿qué tipo de programa de recompra se puede ejecutar para obtener buenos comentarios de los tenedores de bonos? ¿Cuánta reserva de liquidez debemos mantener? Por lo tanto, estamos explorando la mejor combinación de estos 3. Y, lo siento, se utilizarán 4.500 millones de yenes para el retorno a los accionistas y las mejoras financieras. O no estamos considerando usarlo para nuevas inversiones, como también se explicó en el anuncio anterior.

En la página 10, JPY 4.5 trillones de progreso del programa. Entonces, en la última llamada de ganancias, también explicó que usamos la cuota de Alibaba para la monetización en cierta medida. Luego, utilizando la transacción derivada, 3 tipos, las transacciones colectivas, la transacción del plan y las transacciones a plazo. Adelante, es algo que decidimos liquidar las acciones y recibir efectivo por adelantado. La transacción del plan es que configuramos el plan. Y por otro lado, podemos criarlos. Tenemos una opción para obtener esos aumentos, por lo que esta es una transacción de derivados al alza. La transacción de collar sirve para corregir el riesgo a la baja en la opción como una opción. Y también, en cierta medida, aún podríamos recibir la ventaja también.

Entonces, si el precio de la acción cae por debajo, o lo que les prometimos a los inversores que es un piso, de modo que ya hemos fijado el piso, esto limitará nuestra desventaja. Y al mismo tiempo, al alza, podremos ganar. Pero si el precio de la acción va más allá, eso será para los inversores. Este es el tipo básico de concepto para estas transacciones. Desde el punto de vista de la comercialización, creo que la transacción de collar tuvo el mercado más grande.

Entonces, en total, un monto de financiamiento de $ 11.5 mil millones para esta transacción. Entonces, en el yen japonés, son alrededor de 1,200 billones de yenes japoneses. Entonces, para los 4.5 billones de yenes japoneses, aproximadamente 1/4 ya ha sido financiado, para abril y mayo. Para la recompra de acciones, ya se han comprado aproximadamente JPY 250 mil millones. Hasta finales de abril, hemos estado haciendo este programa y durante más de 1 año totalizamos 2.5 billones de yenes japoneses. Así que todavía quedan 2,250 billones de yenes japoneses. Para que nos gustaría proceder constantemente. Y para el programa de 4.5 billones de yenes japoneses se ha cuestionado muy a menudo, pero dado nuestro estado de financiación, alrededor del 78% de nuestras tenencias son valores cotizados, por lo que no anunciaremos por adelantado en términos de transacciones que utilizan el nuestros valores listados Una vez hecho esto, lo compartiremos con usted cuando haya terminado.

En la página 11, por lo tanto, declaramos que estamos a la defensiva en términos de precio o acciones. Y probablemente, este cuadro te diga más. En comparación con Dow Jones, Nikkei 225, desde el comienzo de este año, este es el movimiento de ese precio. Y desde el 6 de mayo, Dow Jones ha caído aproximadamente un 14% y un 15% para Nikkei. En comparación con esto, nosotros, SoftBank KK, que es la empresa de telecomunicaciones doméstica, disminuimos solo un 3.6%. Y como grupo de SoftBank, el precio de la acción en sí solo cayó un 2,8%. Alibaba, por otro lado, está aumentando en un 1.5% y T-Mobile está aumentando en un 30%. Entonces, esto significa que nuestros recursos son muy constantes y puede decirlo desde este cuadro.

Y los valores adicionales no cotizados o valores privados restantes, como Arm, Vision Fund. Y así, en Arm, es algo que creemos que será el núcleo de [hurt] del mundo de TI o IA en el futuro. Y tienen una gran parte, y una buena parte de nuestra cuota de mercado. Así que creemos que estamos bastante convencidos de que su crecimiento es muy brillante en el futuro. Y las telecomunicaciones domésticas SoftBank también lo están haciendo bastante bien. Entonces, en la situación del coronavirus, en realidad no está dañando el principio mismo. De modo que para el futuro, todavía estamos buscando esta empresa o negocio a mediano y largo plazo.

Página 12. Esta es la composición del muy simple pero. Alibaba, S&P nivel AA + o superior; Telecomunicaciones caseras SoftBank, también en el sector doméstico, AA; T-Mobile, BB. Pero, en realidad, Sprint era soltero B antes de la fusión, de ahí la preocupación de que creemos que hemos sido muy estables en términos de crédito y también una alta liquidez e infraestructura aún han sido muy sólidos. E incluso el comercio electrónico, además, es realmente muy estable incluso en estas situaciones anormales o cambios anormales en el estilo de vida. Entonces, como sector o segmento, creo que este es el segmento más robusto. Y al mismo tiempo, son competitivos entre otros pares.

En la página 13, como Kimiwada-san mencionó anteriormente, esta es la fusión entre Sprint y T-Mobile. Como resultado, esto también contribuyó a nuestro valor de activo. Esta fusión, las 2 compañías, se convierte en uno de los 3 principales actores principales en los Estados Unidos en el mercado móvil. Esto nos da la seguridad del EBITDA incluso en general.

En la página 14, Vision Fund. En comparación con el año pasado, el valor razonable de las actividades de inversión se muestra en esta diapositiva. Por último, a partir del diciembre pasado, como el costo de adquisición, nosotros, había alrededor de $ 74 mil millones y aproximadamente, esta fue la ganancia de valoración del 7%. Pero a partir de marzo de este año, los costos de adquisición de $ 75 mil millones y una reducción del 7%. Pero por el contrario, si observa en detalle, en particular esas 8 compañías ya se han hecho públicas en la página 15. En la llamada de ganancias de ayer, le mostramos: solo le mostramos el valor de los valores listados a fines de marzo. Pero aquí, nos gustaría compartir con ustedes cómo se están moviendo estas acciones más recientemente. Entonces, a partir del 15 de mayo, que es el último viernes, el valor de estas 8 compañías es ahora de $ 3.4 mil millones. Eso es alrededor de 370 mil millones de yenes japoneses. Lo positivo ya se ha demostrado.

Como puede ver, Guardant Health está haciendo grandes progresos y nos está dando un buen retorno de la inversión. Y Uber, que es relativamente grande, y el precio de las acciones ha bajado dramáticamente una vez, y nos preocupamos un poco. Sin embargo, en las últimas semanas, se están recuperando en gran medida. No solo Uber, sino también DiDi en China o Grab en el sudeste asiático como actividad de refuerzo. Estas también son ofertas interesantes que estamos viendo. Por lo tanto, junto con el grupo Uber, esperamos que el valor de las compañías sea algo que esté creciendo a partir de nuestras expectativas.

En la página 16, este es un resumen de todo el año, todo el año. Desde el punto de vista de la actividad financiera para préstamos, bonos minoristas, bonos minoristas nacionales o bonos institucionales o para inversores que hemos emitido varias veces. Y tenemos muy buenas solicitudes y tenemos excelentes transacciones con inversores. Entonces hicimos un buen proyecto aquí. Además, poseíamos el 65% de las acciones nacionales de telecomunicaciones de SoftBank Corp. y recaudamos aproximadamente 500 mil millones de yenes japoneses, con un préstamo de margen con el uso de esta acción. Aparte de eso, hemos anunciado un programa de 4.5 billones de yenes japoneses, como expliqué anteriormente.

En el balance en el medio, una vez más, incluso con la crisis del coronavirus, nuestro valor patrimonial de las tenencias sigue siendo de 28,5 billones de yenes. El segmento de Vision Fund completó las nuevas inversiones. Entonces, se trata de JPY 100 mil millones, JPY 100 mil millones de fondo. Y desde el principio, planeamos invertir alrededor del 80% al 85%. Así que ahora nos estamos centrando en 1 inversión y también hemos preferido inversores. Entonces, tenemos un cupón para pagar los que preferimos usar los ahorros para el resto. Y la fusión de Sprint se completó con T-Mobile.

Y SoftBank Corp., telecomunicaciones nacionales, durante el año pasado desarrollaron una estrategia muy agresiva, una tras otra, una tras otra. El primero es hacer de Z Holding una subsidiaria y también el negocio integrado con LINE, que fue un evento bastante favorable para los negocios. Por lo tanto, esto agrega más valor a las telecomunicaciones domésticas que los colegas. En los indicadores financieros, como ya he dicho, existe una seguridad sólida y segura.

Un pequeño detalle en la página 17. Esta es la deuda autónoma que genera intereses de SBG. En los últimos 3 meses, la financiación de 500 mil millones de yenes del préstamo de margen con las acciones de SoftBank Corp. se ha incrementado en este monto neto.

La página 18 es la posición de caja. Sobre JPY 3 billones hasta hace poco. Y también mencioné la monetización utilizando la cuota de Alibaba, equivalente a 1.3 billones de yenes japoneses. A parte questo, abbiamo qualche programma. Ad esempio, alcuni provengono dall’uscita di Vision Fund o dal riacquisto di azioni fino alla fine di marzo, con un esercizio di 230 miliardi di yen giapponesi. E azzerando quelli, che la nostra attuale posizione in contanti è di circa 3 trilioni di yen giapponesi.

Pagina 19, questa posizione in contanti come disciplina finanziaria. Rispetto al nostro debito di servizio equivalente di 2 anni, l’attuale trilione di JPY copre in realtà l’equivalente di rimborso di 4 anni, di fatto. Ovviamente faremo anche dei riacquisti. E allo stesso tempo, ci sono altre cessioni di attività o monetizzazione in corso, quindi rispetto all’equivalente di 2 anni del rimborso del debito, credo che stiamo mantenendo un livello molto sicuro di posizione in contanti e saremo in grado di condividere con te ogni trimestre quanto è sicuro.

Pagina 20 è il debito fruttifero netto dopo la posizione di cassa. Ciò che è stato migliorato è il denaro raccolto in arrivo. Inoltre, questo è un prestito in valore nell’altro metodo di calcolo. Quindi anche il mancato recupero dell’attività nel rimborso del prestito è stato inferiore da lì. Pertanto, in base a tale definizione, dal punto di vista del prestito al valore, è stato molto migliorato.

Pagina 21. A marzo, il prestito in valore è del 14%. Quindi, ciò che abbiamo condiviso con te come disciplina finanziaria, che è di gestire il prestito per valutare meno del 25% e stiamo ottenendo risultati molto positivi.

Pagina 22 è un programma di riscatto, che è molto familiare. Il bilancio fiscale ’21 ha una redenzione piuttosto elevata. Questo è il motivo per cui stiamo cercando di accumulare una posizione di liquidità relativamente elevata. La domanda frequente è che le obbligazioni ibride che stiamo emettendo, chiameremo come da programma. E mentre ci impegniamo con l’investitore, manterremo le nostre parole.

Pagina 23. Questo è come per quest’anno 4 anni, 2 grandi programmi per la finanza. Quindi la nostra massima priorità come società di investimento, la politica finanziaria è una priorità assoluta per la strategia dell’azienda. Quindi vorremmo assicurarci di mantenere sempre le nostre parole sulla nostra politica finanziaria. Allo stesso tempo, a causa di circostanze così incerte, vorremmo agile anche la gestione finanziaria per affrontare immediatamente i cambiamenti.

E la politica finanziaria da mantenere, a pagina 24. Nessun cambiamento. Gestire il prestito al valore, meno del 25% a periodi normali. Anche in caso anomalo, nel 35%. Inoltre, mantiene la posizione in contanti a copertura del rimborso di obbligazioni equivalenti a 2 anni e garantisce anche una distribuzione sostenibile e un reddito da dividendi da Vision Fund e altri. Inoltre, la crisi di WeWork, il cosiddetto, a causa dell’impatto negativo per noi, e ci sono lezioni apprese da quell’evento.

E decidiamo su queste 2 politiche a pagina 25, la nuova politica. Quindi un finanziamento di una società di portafoglio sarà autofinanziato, sono indipendenti da solo. E non forniamo alcun programma di salvataggio. Inoltre, le società partecipate del SoftBank Vision Fund dovrebbero essere decise dal Vision Fund se effettueranno o meno investimenti successivi. Quindi sono le decisioni del comitato d’investimento del fondo Vision su qualsiasi investimento successivo da investire. Quindi è separato dalle nostre decisioni.

A pagina 26, nell’ultimo anno, questo è da ricapitolare. JPY 4.5 trilioni di programma. Ritengo sia uno dei programmi più importanti sia per i detentori di azioni sia per gli obbligazionisti, quindi vorremmo assicurarci di procedere e raggiungere questo obiettivo e, allo stesso tempo, controllare adeguatamente l’equilibrio tra nuovi investimenti e uscite. So on top of JPY 4.5 trillion, which means after we executing JPY 4.5 trillion, once we have any new raising or new monetization, if we have some excess above JPY 4.5 trillion, we would like to manage appropriately but to be prepared for the next investment opportunities. And because of such circumstance, dialogue with market is going to be even more important. We would like to focus more on the dialogue with the investors. So both equity market and bond market, we would like to make sure to have a frequent communication with markets.

Page 27, last but not least, this is the direction of financial management. As an investment company, investment asset value may goes up and down, so by collecting the investment that will be used for new investment, so that the total value should be improved. When you look at the loan-to-value, we do need to keep our financial policy in terms of loan-to-value, and at the same time, improve value in safely manner. So that cycle, we would like to make sure to proceed. And by keeping our financial policy and also improving the asset value, I believe rating is one of the important indicator for the market. And for us, also it’s important. S&P and JCR is the rating agency that we’re asking for the rating, and we will keep aiming for the improvement of the rating as well. That is all from me. Thank you very much.

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Unidentified Company Representative, [5]

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[Interpreted] Gracias. So last but not least, we would like to invite Mr. Navneet Govil, CFO of Softbank Investment Advisers, to give you an update on SoftBank Vision Fund. As the CFO of SoftBank Vision Fund, he will explain to you the accounting structure of Vision Fund. Now Navneet, please unmute yourself and please start your presentation. Gracias.

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Navneet Govil, SoftBank Investment Advisers (UK) Limited – Managing Partner & CFO [6]

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Hello, everyone. I’m glad to be here with you today. Before we begin, I’d like to draw your attention to SBIA legal disclaimers on Slide 2 related to the information you’ll receive in this presentation. Please refer to the hard copy for more details.

Today, as you will see on Slide 4, I will summarize full year performance and discuss the impact of the unprecedented pandemic we are all experiencing. I’ll then discussion the fund’s financial impact on SoftBank. Finally, my in-focus section demonstrates how the Vision Fund was designed for long-term resilience and explain how we are supporting our portfolio company in today’s volatile environment.

Moving on to Slide 6. During today’s presentation, I’ll answer 4 important questions, which I’m sure are on your mind. They are: what is the impact of the pandemic on our portfolio? Have we considered the impact of the public market on our private assets? What is the liquidity position of our investments? How are we helping our portfolio company?

I’d like to first provide an update on our activities over the last 12 months. On Slide 7, you will see that during the last fiscal year, we made investments in 20 new portfolio companies and 25 follow-ons, deploying $17.1 billion. During this time, we distributed an additional $5 billion in capital to LP. As previously announced, we fully exited one of our consumer companies and partially exited Guardant Health, Ping An, Roivant and Slack. Also, 5 more of our portfolio companies went public last year, bringing the total value of our marketable securities to $11.6 billion as of May 15, 2020. Over the last year, the overall fair value of the portfolio has declined by $15.6 billion. This write-down is a result of mark-to-market valuation adjustments, which are driven by current market volatility and are in line with our triangulating approach to valuations.

Moving on to Slide 8. We’ve responded quickly to the COVID-19 crisis and are prepared for a challenging year. This pandemic is having an unprecedented impact on individuals, communities, businesses and the economy. Keeping people safe is critical, and our portfolio companies are prioritizing the right thing at this moment: the health of their employees and customers. Billions of people have been asked to shelter in place, preventing them from traveling, working and spending time in their community. Many of our portfolio companies do best where cities are vibrant and society is moving forward. Sadly, this is still not the current situation in much of the world.

Looking across our portfolio, our various sectors are being affected differently. Some of our companies have seen revenues decline significantly, such as those in real estate. Many, however, are outperforming. Vir Biotechnology and Roivant Sciences are working on disease prevention and treatment. DoorDash and Uber are helping restaurants survive with meal deliveries and are providing work opportunities for many people. Uber Eats, for example, saw bookings increase more than 50% compared to the same period last year. Moreover, growth is accelerated. And in April, bookings were up nearly 90%. Uber Eats restaurant platform is now working with 4,000 partners in 45 countries. Overall, this opportunity is greater than we expected. In the enterprise sector, flat growth has accelerated too. From February 1 to March 25 of this year, which includes the period of early shelter-in-place orders, Slack added 9,000 new paid customers, an 80% increase over the full quarterly total for the preceding 2 quarters.

Other examples of our portfolio companies doing well include ByteDance in entertainment, which continues to see strong user growth around the world; Coupang in e-commerce, where business has accelerated in the current environment; Grofers in online grocery delivery, which continues to double the size of its business each year; Ping An Good Doctor in telemedicine, which experienced a ninefold increase in usage from December 2019 to January 2020; REEF has any portfolio companies that are providing goods and services to customers at home. These are also the businesses that are outperforming in this environment. In difficult times, our entrepreneurs are stepping up. COVID-19 has had substantial economic impact, but many of our portfolio companies have used this time to both support their community and maintain or accelerate growth. We expect many of our companies to come out of this crisis stronger than before.

On Slide 9, we present the same sectors by cost and share value. 4 of our 7 sectors remained in positive territory. Our enterprise, frontier tech and health tech portfolios are performing particularly well in the current environment.

Looking on Slide 10 at our portfolio by geography, 18% of our investments are held in EMEA, while 46% are held in Asia. While societies and economies are being adversely affected in many countries around the world, our portfolio companies were impacted in phases. As we’ve seen, many Asian economies suffered first but are now rebounding. We’re cautiously optimistic that economies in Europe and U.S. will also respond positively as national and local governments begin to reopen their community.

Of the 36% of our investments held in the Americas, shown on Slide 11, many are headquartered in California. Elected officials along the West Coast of the United States responded early and decisively and ordered citizens to shelter in place. These decisions saved many lives. We are hopeful that the speed of the regional response will enable faster economic recoveries.

You will see on Slide 12 total capital commitments for Vision Fund 1 are $98.6 billion. In the nearly 3 years following our initial close of the Vision Fund, we’ve invested $81.3 billion. We’ve also distributed $10.7 billion on a cumulative basis back to our limited partners from both realized exits and portfolio financing. Of the firm’s total commitments of $98.6 billion, SoftBank’s portion is $28.1 billion. SoftBank has contributed $24.4 billion to date, which has declined to $22.5 billion in total value, including distributions of $1.6 billion.

Moving on to Slide 13. Since the inception of the Vision Fund less than 3 years ago, we’ve made 91 investments and have realized value from 7 investments. This includes 3 full exits and 4 partial exits.

Here, you can see on Slide 14 the realized gains from these exits. Realized values of our exited investments and fair market value of our public holdings are both above our cost at the end of March. Indeed, our public company represents an additional $10.1 billion of available liquidity on our balance sheet. However, fair value is below cost in our private portfolio.

Our private portfolio valuations reflect the new realities that other investors are also experiencing. I’d like to remind this group, however, that we are long-term patient investors. Since the inception of the Vision Fund, 8 portfolio companies have listed publicly. These listings, shown on Slide 15, reflect our progress to date as a relatively new fund. Each demonstrates the appeal of our companies to the public market and provide valuation transparency. Now that we’re already halfway through the current quarter, our public portfolio continues to show signs of recovery.

Moving on to Slide 16. Last July, we announced our portfolio financing facility, which is designed to enhance performance and accelerate distribution. Given current market conditions, we felt it was prudent to delever this facility and we repaid $1.2 billion such that the outstanding amount is now $2.3 billion.

Separately, as you can see on Slide 17, we increased the size of our fund level facility, which serves as our line of credit from $3.1 billion to $3.4 billion. The world’s leading bank continued to back this facility, demonstrating the capital market’s ongoing support for our investment strategy. This facility allows us to move quickly from signing an agreement to investing in the company. In addition, it ensures we can meet funding time lines and help founders focus attention on growing their businesses.

Let’s now discuss the impact of the fund’s financial performance on SoftBank. As you can see on Slide 19, for the full year ended March 31, 2020, SoftBank share of the fund’s net loss was $7.08 billion. Combined with management fees and the change in accrued performance fees for the period, the sum of net loss in fees to SoftBank is negative $9.43 billion. This compares to $5.9 billion in net profit and fees to SoftBank for the same period last year. This net loss is mostly driven by the significant unrealized loss we took in the September quarter due to the WeWork write-down as well as the March quarter write-down in response to COVID-19.

Moving on to Slide 20. Cumulatively, from Vision Fund inception through March 31, SoftBank’s share of the fund’s net loss was $1.91 billion as an investor. Factoring in an additional $360 million in management fee income, the total amount is negative $1.55 billion in net loss and fees from the fund.

On Slide 21, from a balance sheet perspective, as of March 31, SoftBank contributed $24.4 billion in capital to the fund. This amount has declined in total value to $22.5 billion, which includes $1.6 billion in distribution.

I’d now like to turn your attention to this quarter’s In Focus section, starting on Slide 23. While no one anticipated a crisis of this magnitude, we’ve built our portfolio to weather the storm. In today’s In Focus section, I’ll tell you how, focusing on 6 critical points: one, our role as a long-term investor; two, our focus on the path to profitability; three, portfolio liquidity and leverage; four, our dry powder; five, our operational support; and six, our ecosystem.

We are long-term patient investors. As you can see on Slide 24, the Vision Fund is a 12-year investment vehicle and has 2 offshore 1-year extension, meaning that the fund could operate for up to 14 years. In setting up a long-term fund, it was important to be realistic about the potential risk based in that window of time. Indeed, we anticipated multiple downturns. We believe tech and tech-enabled businesses, those that rely on artificial intelligence and data, will be significant long-term economic drivers in the years ahead. With more than 10 years remaining in fund we can look past short-term situations and focus on generating long-term sustainable returns.

Moving on to Slide 25. Many of our companies are well positioned because we’ve been helping them build leaner and more profitable businesses for some time. For the last year, we’ve been communicating the importance of positive unit economics as the foundation of lasting businesses. In September, you may recall that we held our inaugural [Stoneville] CEO summit. It was there that Son-san urged our founders to accelerate their path to profitability. Shortly after, we helped our portfolio companies bolster their governance practices based on lessons learned from WeWork. Because of our counsel, founders had several months to build stronger, more economically sustainable businesses before COVID-19 hit.

In a downturn, companies with heavily indebted balance sheets struggle. Refinancing costs rise as cash flow falls. In contrast, as you can see on Slide 26, we our portfolio companies are well capitalized. As a group, equity exceeds debt by more than 30x and cash is nearly 5x total debt. This is enough capital to last the next 18 months to 2 years. These key metrics show our companies are relatively well positioned. The well-capitalized balance sheet with limited to no debt enabled much needed flexibility during times like these. Our portfolio companies are actively limiting cash burn and extending their runway with the goal of reaching profitability and some are already there.

Moving on to Slide 27. As we have discussed in prior meetings, the investment period ended for Vision Fund 1 last September after having invested about 80% of our committed capital. Our remaining $13.4 billion of undrawn capital will be used for follow-on investments and paying management fees, fund expenses and the preferred equity coupon. This, in combination with our liquid public assets, means our available capital is also 5x our total debt.

This dry powder is significant and give our founders comfort that we can provide additional financial support where the incremental investments meet our risk-adjusted return threshold. It also shows our limited partners that we can continue to provide additional distribution to them. In fact, during the March quarter, we continued to invest in our existing companies to help them navigate through this crisis, and we continue to seek attractive opportunities to partner with remarkable entrepreneurs.

Moving on to Slide 28. We offer our portfolio companies more than capital. In these volatile times, we are providing substantial operational support and guidance. We have a dedicated operating group that is deeply engaged with our companies on multiple levels to provide the support our company’s needs.

To reduce liquidity risk, we are working closely with company leaders by providing strategy and guidance on how to manage costs and reduce cash burn. In addition, we are helping our companies mitigate future risk, scenario plans and explore potential financing solutions. Downturns are challenging, especially given their unpredictable nature of a pandemic, but hard times build resilient companies and set them up for future success. We are here to support our portfolio as they move forward through volatility.

In challenging times, we believe businesses have an obligation to pitch in and support their communities. We want to share examples on Slide 29 of how our portfolio companies are advancing relief efforts. These include contributing resources, harnessing expertise and innovating to help their local and global communities respond to the virus’ impact.

In addition to the direct impact of our health portfolio companies I mentioned earlier. Here are other examples. Fanatics, a sports apparel maker in normal times, has pivoted operations to mass produce personal protective equipment. Others like Flexport and OYO are providing critical medical supplies, donated meals, transportation and housing to frontline health care workers. Companies like ByteDance and Slack are addressing new [needs] by offering free video and collaboration tools to help students study at home and small businesses to continue operations remotely.

I’m providing a link so you can visit our website and see the full list. We are proud of the goodwill and ingenuity of the people working at our portfolio companies. More than ever, we are confident in the positive impact of technology on society.

Thank you for listening. Today, I discussed our performance and our contribution to SoftBank. I also shared ways in which the Vision Fund is resilient. I hope you feel as I do that we are well positioned to weather the storm and come out stronger on the other side. I look forward to sharing our progress in future quarters. Please stay healthy. Gracias.

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Questions and Answers

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Operator [1]

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[Interpreted] (Operator Instructions) We’d like to remind you that we will not be able to answer any questions regarding SoftBank regional fund strategy, performance, IPO status of portfolio companies or exit strategy. Now we’d like to take your questions. (Operator Instructions)

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Satoru Kikuchi, SMBC Nikko Securities Inc., Research Division – Senior Analyst [2]

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[Interpreted] Kikuchi from SMBC and Nikko Securities. First, with regards to Alibaba shares, the collar for contracts using Alibaba shares, what the impact be on PL, and what timing should we expect impacts on P&L?

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Unidentified Company Representative, [3]

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[Interpreted] Gracias. I’m sure you’re talking about $11.5 billion. We have not sold them yet in the period. We value at fair value as derivative transaction. So any changes will be reflected on P&L. It’s like what we have done with the collar transaction before. After the contract is closed and when it comes to settlement, then we will recognize — proceed a loss from the sales. But up until then, we don’t do anything, and we might end up just repaying debt associated with some option transactions.

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Satoru Kikuchi, SMBC Nikko Securities Inc., Research Division – Senior Analyst [4]

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[Interpreted] I wonder for 3 contract — I wonder if there are any difference in terms of the period or the term for the 3 transactions.

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Yoshimitsu Goto, SoftBank Group Corp. – Senior VP, CFO & CISO [5]

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[Interpreted] Gracias. Sorry, we can’t disclose the details of each of 3 transactions. Gracias.

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Satoru Kikuchi, SMBC Nikko Securities Inc., Research Division – Senior Analyst [6]

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[Interpreted] The price at the timing of sales, maybe you can’t tell. I mean the price at the time of sales, has it been fixed? I’m sure a price is already determined at which sales will be carried out.

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Unidentified Company Representative, [7]

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[Interpreted] Well, it’s not necessarily the case. For example, for collar transaction, like we have done in the past.

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Satoru Kikuchi, SMBC Nikko Securities Inc., Research Division – Senior Analyst [8]

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[Interpreted] If the current share price is $100 and later, stock price goes up or down, option to fix the bottom and to have certain percentage of upside, that’s a collar transaction. So the question is, finally, when — how much would be the stock price, then whatever reflected on the P&L will be made accordingly?

Second question regards to COVID-19 impact. In fact, some several questions around that. You decreased the fair value of WeWork, and maybe yield will be calculated technically and also, DCF is changed. I wonder if it’s associated with the impact from COVID-19 or if there’s any changes in operations or impact from any changes in operations, not only WeWork, but also other investees.

When you calculate the value of your investees, what kind of assumption you used or criteria when you calculated fair value of your investees? And for the foreseeable future, we have some challenging period. And you mentioned, I think that you will continue supporting them from operations perspective to a certain extent. But nonetheless, from your finance policy perspective, you will not rescue them at all, no matter — whatever circumstance will be.

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Kazuko Kimiwada, SoftBank Group Corp. – Managing Executive Officer [9]

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[Interpreted] Gracias. My name is Kimiwada. About WeWork, of course, impact on COVID-19 was huge, but we can’t separate impact from COVID-19 and impact from other factors. Impact from COVID-19, well, of course, when you calculate DCF, sometimes, we expect that decrease in cash flow or sometimes we make an adjustment using discount rate. So there are several ways, and we pick method case by case. But for this term’s earnings, as of March end, we believe that we factored in every possible factor we could think of as of end of March.

And with regards to your question around the rescue for the investees, maybe I should have explained more clearly. I’m sure you’re looking at Page 21. It says no rescue package. That’s our principle. And investees may face some difficulties, but if it’s invested by [SFP], SBG, SoftBank Group, we will not rescue them, if those investees are invested by SoftBank Vision Fund. That’s our policy principle.

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Satoru Kikuchi, SMBC Nikko Securities Inc., Research Division – Senior Analyst [10]

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[Interpreted] Todo bien. If I may, follow-up question. Talking about impact from COVID-19 again, your assumption is when things will get back to normal or post COVID-19. So again, any view on assumption with regards to when do you expect things will get back to normal or…

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Unidentified Company Representative, [11]

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[Interpreted] Depend on investees, maybe 3 times — sorry, 3 months or 6 months, it’s case by case.

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Daisaku Masuno, Nomura Securities Co. Ltd., Research Division – Head of Information & Telecommunication Team, Japan & Analyst, Telecommunications Research, Japan [12]

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[Interpreted] My name is Masuno from Nomura Securities. My first question is JPY 4.5 trillion program. And I’d like to ask you for the priority, JPY 2.5 trillion buyback will be your own share and fund repay and service debt, and the remaining, Vision Fund 1 capital core. I believe there are about JPY 500 billion left. Is there going to be also use from here? And the remaining is going to be on cash on balance sheet? Is my understanding correct? And regarding Vision Fund 1, I believe that the coupon payments for the [fee paid] is going to be continued. I believe in the last, that is going to be JPY 40 billion, but 7%. And how much distribution per year is necessary? Probably maximum JPY 2 billion. But for that, I believe that you can only call your capital to pay the distribution. But how much room do you have to pay the coupons for the preferred based on your capital call?

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Yoshimitsu Goto, SoftBank Group Corp. – Senior VP, CFO & CISO [13]

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[Interpreted] Sì. Goto speaking. Thank you very much. First of all, JPY 4.5 trillion program, the way — how we use the JPY 4.5 trillion has been clearly communicated on our press release. So we are not thinking to use the proceeds other than what we have wrote on the press release. So we will be raising more than JPY 4.5 trillion and the 2 — as for JPY 2.5 trillion will be used for the JPY 2 trillion buyback and also remaining JPY 2.5 trillion of which, after less some necessary cost that’s going to be used for improvement of our balance sheet, which includes service debt, buyback of bonds, remaining for the cash reserve.

So we will be trying to achieve the best combination of those, and this will be executing and that’s going to be — we’re taking over 1 year to March next year. So within a year, some may go first. Some may go later. That’s something that we would like to keep as flexibility and let us address that.

And also for the Vision Fund, they have already completed the new investment stage so that the remaining will be used for the follow-on investments, payments for coupon for preferred in the meantime and also some cost for funds, and not everything is going to be paid from here. So we cannot — it’s not that we can discuss how much room they are dividing by the coupon payment and so on. But for the future numbers, we don’t disclose so that I believe you can calculate every time when you see the numbers disclosed.

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Daisaku Masuno, Nomura Securities Co. Ltd., Research Division – Head of Information & Telecommunication Team, Japan & Analyst, Telecommunications Research, Japan [14]

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[Interpreted] Masuno once again. Let me confirm. So JPY 2.5 trillion buyback. So after JPY 4.5 trillion monetization, so this is not going to use for the capital call for Vision Fund 1, not for Vision Fund 1. In the Vision Fund 1 call capital will be used from the other source.

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Yoshimitsu Goto, SoftBank Group Corp. – Senior VP, CFO & CISO [15]

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[Interpreted] Sì. Goto speaking, we will be having another option for the raising. So that’s going to be the money to be used for the call of capital.

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Daisaku Masuno, Nomura Securities Co. Ltd., Research Division – Head of Information & Telecommunication Team, Japan & Analyst, Telecommunications Research, Japan [16]

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[Interpreted] Masuno once again. As of today, payments of the coupon for preferred is being using the call capital. Are you going to continuously do that? And will you be able to cover your coupons based on capital call? I would like to hear sometime when you have chance that we would like to hear the status of the coupon payments. Now would you be able to share the status of the coupon payments? Are you going to be paying only by the capital call? Do you have any other sources for payment coupons?

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Navneet Govil, SoftBank Investment Advisers (UK) Limited – Managing Partner & CFO [17]

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Sicuro. Thank you for the questions. So a couple of things. You’re correct. The total of $98.6 billion in capital commitments to the Vision Fund, $40 billion is preferred equity capital, which earns 7% annual coupon. However, the 7% coupon is only on the capital that has been drawn, not on the total commitment. Your amount of approximately $2 billion in preferred equity coupon payment is correct. We will be paying those from $13.6 billion of uncalled capital that we have left in Vision Fund 1.

So even if you take the next couple of years of preferred equity coupon payment, there is substantial uncalled capital left both to pay the preferred equity coupons as well as to support our portfolio companies with follow-on investments. So we will be using that to — the uncalled capital for the return equity coupons. We’re not raising any other cash for that. Gracias.

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Atul Goyal, Jefferies LLC, Research Division – Senior Analyst & Equity Analyst [18]

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My name is Atul Goyal from Jefferies. 2 questions. Firstly, Goto-san, if we look at the loan-to-value ratio and the asset value that you show on early pages, it compares JPY 28.5 trillion to 14.2%. This is on Page #3. Is that a fair thing to show? Because JPY 28.5 trillion is — includes all the shareholdings you have and 14.2% is after adjusting for the margin loans. So if you look at another slide on your presentation, which is, I think, on Page #29, there, you compare the low adjusted net debt of JPY 3.58 trillion to the equity value holdings of JPY 25 trillion.

The reason I’m asking this is because by this calculation, what you can do is take more margin loan against your Alibaba or T-Mobile shares and reduce to take more loan and reduce the net debt because your cash will increase. So you can reduce the net debt to 0 and show the loan-to-value ratio of 0% or 2% or 5%. So this starts to lose credibility. This amount and the number that you show starts to lose credibility if this kind of margin loan is not even included in the total debt. How do you respond to that? And then I have another question for Navneet.

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Yoshimitsu Goto, SoftBank Group Corp. – Senior VP, CFO & CISO [19]

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[Interpreted] This is Goto. Thank you very much. As you explained, with regards to allocation of our loan-to-value, for loan, from a corporate perspective, we look at the recourse loan when you calculate the balance of the loan. And when it comes to asset-backed finance, when redemption comes, the appropriate assets will be disposed. So it will be netted out. So I think that’s our way of thinking, which is reasonable. Based on the principle, we make this calculation as we show on Page 29.

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Atul Goyal, Jefferies LLC, Research Division – Senior Analyst & Equity Analyst [20]

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So you can actually see more margin loan and reduce your net debt to 0, it’s possible, right? You can — just like you’ve taken the asset-backed finance, if you take at JPY 3.5 trillion more asset-backed finance, then your net debt can be shown as 0. Is that correct?

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Yoshimitsu Goto, SoftBank Group Corp. – Senior VP, CFO & CISO [21]

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[Interpreted] Yes, you’re right. From a; calculation perspective, yes. Sì. So because we provide assets as non-recourse, which means source for repayment is locked, and at the time of redemption, we make sure that repayment will be done. So I think that our way of thinking is pretty reasonable.

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Atul Goyal, Jefferies LLC, Research Division – Senior Analyst & Equity Analyst [22]

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Todo bien. That’s one way to think. Now a question for you about the fees. So in one of the slides, you have shown that net of fees, the losses are where they are. And I think it’s Page #20 of your slide. The question is when it comes to performance fees, we have to start factoring in the benefits to SoftBank Group. We also need to understand when it starts to earn performance fees.

So I know some of these things are confidential, some of them, you can’t share. But is there some level of publicly — something that you can share publicly, which is about the performance level that you need to meet before you start getting this performance peak again, so we know that when those fees start accruing to you? Any color on that one, please?

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Navneet Govil, SoftBank Investment Advisers (UK) Limited – Managing Partner & CFO [23]

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Sì. Thank you, Atul, for the question. So I believe there are 2 parts to your question. If you look at Slide 19, you’ll see that in the current fiscal year, we have reversed the performance fee given the performance of the fund. And in terms of the level of which we earn the performance fees, this is something that Son-san had shared in the past that threshold is 8%. We have an 8% hurdle rate at the fund.

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Mitsunobu Tsuruo, Citigroup Inc, Research Division – VP and Analyst [24]

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[Interpreted] My name is Tsuruo from Citi Securities. I have first question about T-Mobile. Kimiwada-san’s material, Page 4. First quarter, so you are recording the gain relating to loss of control. So is it going to be end of June that you’re recording this? And also, you mentioned about the earnout share. Can you elaborate a little bit more regarding earnout share? And also, if you have, give us some rough ideas on the sides of this. That’s my first question, please.

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Kazuko Kimiwada, SoftBank Group Corp. – Managing Executive Officer [25]

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[Interpreted] Yes, Kimiwada speaking. So of when — as when of the share price, that you asked, I believe, and this is the — at the time of completion of merger, which is April 1, opening balance, our share price is going to be used for the calculation. And also regarding our note, as we already explained, not in details, but as long as we satisfy the certain level of the share price, we will be able to receive the share. So that’s the kind of the one option that we have.

So day 1, as of April 1, fair value base, we’ve been evaluating and recall that, and that amount will be part of the gain relating to loss of control, and after then, every quarter basis, we will evaluate, and fluctuation of valuation will be recorded on our P&L. And for the amount or size, we are still under calculation of those. So maybe at the time of first quarter, we will be able to disclose. If early here, we may be able to disclose the annual report — annual securities report. But for sure, we will be able to disclose that on the first quarter.

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Mitsunobu Tsuruo, Citigroup Inc, Research Division – VP and Analyst [26]

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[Interpreted] Sorry that I was mute. So I have another question. So about the share price of the earnout, you will be able to disclose at the — and reflect that at the end of the quarter.

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Kazuko Kimiwada, SoftBank Group Corp. – Managing Executive Officer [27]

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[Interpreted] Kimiwada speaking. It’s not going to be that direct, I believe. So once we meet, once we have higher chance of meeting the threshold and also share price is one of the elements, but we will be calculating the derivative. So that’s the things that we will do.

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Mitsunobu Tsuruo, Citigroup Inc, Research Division – VP and Analyst [28]

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Then my second question is to Goto-san. So Alibaba transaction, the amount that you have announced has been already done with the individual contract. So the detail of the transaction will not be shared with press release because this is the individual agreement, I believe.

And based on that assumption, so you have a JPY 3 trillion net of gross cash and also the way of using those proceeds that you relatively like to keep the cash high, cash level high. And at the same time, you are running your buyback program. So I understand that. And usually, you’ve been keeping about JPY 2 trillion level of the gross cash. But where is your kind of target for the gross cash level? And based on that, I believe we’ll be able to have a better understanding on the pace for the buybacks and the monetization of assets and so on.

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Yoshimitsu Goto, SoftBank Group Corp. – Senior VP, CFO & CISO [29]

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Thank you for your question. This is Goto speaking. And your first question, regarding disclosure on the Alibaba transactions, we — it’s not — it is not disclosed because this is the individual agreement, and this is a collar transaction so that it’s not like the convertible bonds are something like that.

And also for your second question regarding cash position target, we — as our financial policy or discipline that we keep our cash balance for 2 years equivalent of redemption of bonds regardless of JPY 4.5 trillion program that we would like to keep our financial disciplines. So it’s a bit difficult to specifically say the level of the cash.

But after we exercise all those JPY 4.5 trillion program, about JPY 2.5 billion to JPY 2 trillion less, some cost is going to be used for the loan repayment or the service debt and also added on to the cash balance. And this cash position part will be on top of the cash balance we will be keeping for 2-year equivalent debt redemption. It’s a bit difficult to identify a numerical way, but I think you can have a rough idea on that.

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Operator [30]

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[Interpreted] (Operator Instructions) Tanaka from Mitsubishi UFJ Morgan Stanley.

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Hideaki Tanaka, Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., Research Division – Senior Analyst [31]

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[Interpreted] Can you hear me?

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Unidentified Company Representative, [32]

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[Interpreted] Sì.

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Hideaki Tanaka, Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., Research Division – Senior Analyst [33]

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[Interpreted] I have 2 questions, if I may. First, to Goto-san. Page 7 of your part, finance part, LTV, et cetera. Value of shares held. Does that include the shares — Alibaba shares to be sold, whereas cash position includes the amount that you’re going to get after selling Alibaba shares?

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Yoshimitsu Goto, SoftBank Group Corp. – Senior VP, CFO & CISO [34]

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Thank you for your question. This is Goto speaking. Yes, the transaction that increased our cash position and the assets associated with that are deducted when we calculated LTV. However, our equity value of holding includes of course, details you may not be able to share. But if share price stay the same, for example, at certain point in the future, you will lose, let’s say, 10% of Alibaba shares. Yes, when a settlement is done, yes.

If I may repeat, for cash position up and equity value holding deducted because from an accounting prospective, it’s liabilities. But when you can calculate loan to value, since this is a pure recourse, so we will be — deducted it for calculation.

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Hideaki Tanaka, Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., Research Division – Senior Analyst [35]

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[Interpreted] And for Kimiwada-san, maybe other segments or Latin Am fund. JPY 5 billion was already invested, and you already incurred some losses. So Kimiwada-san, if you have, give us any view.

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Kazuko Kimiwada, SoftBank Group Corp. – Managing Executive Officer [36]

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[Interpreted] Kimiwada speaking. Our investment amount was so far JPY 1.5 billion roughly. With regards to loss, yes, we recognize loss. Fair value of investees and impact from foreign exchanges, all in all, about JPY 6 billion or so loss was incurred recognized from the investment by Latin America.

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Hideaki Tanaka, Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., Research Division – Senior Analyst [37]

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[Interpreted] So considering the market, maybe you will take some cautious approaches in investing for the future?

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Kazuko Kimiwada, SoftBank Group Corp. – Managing Executive Officer [38]

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[Interpreted] Sì.

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Kei Takahashi, UBS Investment Bank, Research Division – Executive Director and Telecom & Software Analyst [39]

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[Interpreted] My name is Takahashi from UBS Securities. I have 2 questions, please. First, regarding monetization or asset disposal. I believe you cannot mention about each company’s status, but one confirmation I would like to make regarding T-Mobile, you have lockup terms. And what is the status on lockup? There has been disclosure on lockup agreements. And is that still alive? Or has that been changed so that within a year or so, you’ll be able to sell the shares? Can you make any comment on that?

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Yoshimitsu Goto, SoftBank Group Corp. – Senior VP, CFO & CISO [40]

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[Interpreted] Gracias. Goto speaking. At the completion of merger, April 1, lockup time, still alive, and that stays the same.

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Kei Takahashi, UBS Investment Bank, Research Division – Executive Director and Telecom & Software Analyst [41]

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[Interpreted] Question again. So in the past few days, there are some media coverage on that. But in principle, you know there is no change in lockup.

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Yoshimitsu Goto, SoftBank Group Corp. – Senior VP, CFO & CISO [42]

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[Interpreted] Goto speaking. No change as of today.

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Kei Takahashi, UBS Investment Bank, Research Division – Executive Director and Telecom & Software Analyst [43]

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[Interpreted] My second question about Vision Fund. At the earnings call, Masa said out of 88 investees, 15 will go bankrupt. A high chance of going bankrupt that he mentioned that. And this time, fourth quarter announcement and evaluation loss has been made fully so that we have less chance of seeing additional loss going forward for the evaluation.

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Yoshimitsu Goto, SoftBank Group Corp. – Senior VP, CFO & CISO [44]

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[Interpreted] So Goto — this is Goto. Let me first answer that, and I would like to pass on to Navneet after then. And at the earnings this time, as all the valuation necessary has been reflected to our earnings. And based on that, Masa mentioned 15. So he made a specific number. That makes a big argument right now. But Masa after then mentioned a complementary comment that this is just one measure out of the — if we set 100 as the fund, 15 top is excess for — 15 bottom is failure or bankrupt and in the middle is so-so. That’s the kind of a rough idea that Masa is having. Navneet, do you have any additional comment on that?

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Navneet Govil, SoftBank Investment Advisers (UK) Limited – Managing Partner & CFO [45]

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Thank you, Goto-san. I agree with you. I wouldn’t focus so much on the 15 number. What Son-san was saying is that there is a distribution. Some companies will struggle. And during this pandemic, we’ll get to know which companies are not doing so well. And there’s a good portion of the companies that will do okay, and there are a few companies that are going to do exceedingly well. Some of the companies we are already seeing, which are doing exceedingly well, ByteDance has seen a lot of the daily active users.

Coupang, as Son-san said, the e-commerce business is doing really well and Coupang is doing well. And also, as Son-san said, a lot of the ride share companies are pivoting from ride share to food delivery. DoorDash has been doing well. And during the pandemic, companies like Zuoyebang, which is online education, those are doing very well. And of course, health technology companies are doing well.

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Naokazu Koshimizu, Nomura Securities Co. Ltd., Research Division – Fixed Income Strategist [46]

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[Interpreted] Koshi from Nomura Securities. Can you hear me well?

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Unidentified Company Representative, [47]

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[Interpreted] Yes, we can, clearly.

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Naokazu Koshimizu, Nomura Securities Co. Ltd., Research Division – Fixed Income Strategist [48]

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[Interpreted] I have 2 questions. First, about JPY 4.5 trillion monetization program. Goto-san mentioned earlier that — you mentioned purchasing bonds program. Of course, JPY 1.3 trillion of bonds, you need to be repaid in 2021. So those bonds are the ones that you’re looking at, when you talk about purchase of bond program?

And second, with regards to rating, Moody’s rating in particular, you mentioned — there was announcement on 26th of March with you of Moody’s rating. But it’s been 2 months since then, but we can see the rating by Moody’s on website. So I wonder whether you are still in discussion with Moody’s or eventually waiting from — by Moody’s will be gone. Then you have discussion with other rating agencies that you may use.

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Yoshimitsu Goto, SoftBank Group Corp. – Senior VP, CFO & CISO [49]

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[Interpreted] Gracias. Goto speaking. About bond buyback program, to improve our financial position, of course, we are looking at price of bonds in the market and figure out when and how we repurchase those bonds. I think 2 views here. When it comes to repurchase, if our bond price is under par, if there is a financial benefit, of course, we should repurchase them. But for bond investors, we should look at — from bond investors’ perspective, whether it’s beneficial to bond investors or not.

With regards to rating — excuse me, we need to also make sure that our action will be beneficial to securities firms as well. So we will take at a lot of angles when we decide approach of our bond repurchase.

With regards to rating, about Moody’s in particular, as we made a press release, we already terminated our deal with Moody’s. So we have not continued deal with Moody’s. And it’s unacceptable that they keep posting their rating on us, which is really outrageous, unacceptable. So let me reiterate. Moody’s comment about us are — whatever they say about our company is unacceptable for us. So please don’t take a look at that. I mean don’t refer to it, disregard it.

So again, I confirm that we don’t have any relation with Moody’s anymore. And we got advice actually, comments from other rating agencies. And most of the investors, most of analysts support our actions. That’s our understanding. So again, thank you for your understanding.

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Yoshio Ando, Daiwa Securities Co. Ltd., Research Division – Research Analyst [50]

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[Interpreted] My name is Ando from Daiwa Securities. I have 2 questions, please. First, you may not be feeling this way, but post corona and assuming that we are on the path to the recovery from coronavirus, do you change your strategy? In a year or 2-year span, SBG, would your strategy change post corona or the Vision Fund strategy, you may be going some exits or returning status how you look at your strategy to be changed or not after the coronavirus situation.

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Unidentified Company Representative, [51]

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[Interpreted] Thank you for your question. That’s difficult to tell, and we don’t feel that way yet that it’s so difficult to answer that question. But recovery from coronavirus may not be exactly the same timing with the investment environment recovery. If it’s the same, then Vision Fund 2, which we are kind of wait and see the situation — but may proceed the further study in explorer on the Vision Fund 2. So without recovery of the environment, it’s really difficult to do the marketing for LPs for the next fund. And in the meantime, we will be using our excess cash to continuously have investment activities.

And as for Vision Fund strategy, I would like to ask Navneet to explain, will that be changed after corona. But when it comes to the return, if you ask about the return, it’s not going to be the return to equity holders. Yes, if it’s the return to the equity holders, we have not changed on our policy.

If the situation be recovered and improved, JPY 4.5 trillion program is going to be used for the return to bondholders and equity holders. So that’s going to be the purpose of use for proceeds. But if the environment changes, then we may add new investment opportunity. So those 3 is going to be the 3 main pillar for the combination, then we seek for the best mix. So the purpose of proceeds for the KK offering was also the same, the 3 pillars. So that’s going to be the same.

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Yoshio Ando, Daiwa Securities Co. Ltd., Research Division – Research Analyst [52]

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[Interpreted] So Vision Fund strategy change, navneet, can you comment? Will you be changing your strategy after the coronavirus? Why — when we have a recovery from the coronavirus?

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Navneet Govil, SoftBank Investment Advisers (UK) Limited – Managing Partner & CFO [53]

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The Vision Fund strategy will continue on focusing on leveraging our companies that are leveraging artificial intelligence and big data. Of course, we are going to be looking at investments very judiciously. And in this environment, the size of the check that we will be making will be relatively small. Also, we will continue to ensure that our portfolio is very well diversified.

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Yoshio Ando, Daiwa Securities Co. Ltd., Research Division – Research Analyst [54]

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[Interpreted] My next question is about PayPay. So this is the SoftBank Corp. It sounds like there may be some changes in ownership in PayPay. And do you have any forecast in the meantime on PayPay? And also, how do you look at the ownership for the future of PayPay going forward?

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Unidentified Company Representative, [55]

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[Interpreted] About PayPay business, it’s not us that is the appropriate person to answer so that I believe it should be coming out from SoftBank Corp. management. As a group overall, PayPay’s value is something very promising, and we believe it’s — we are expecting a good upside out from there. So as a new business to become the key and I believe — we believe that the PayPay is going to grow as a leading company for payment services and also expecting good synergies out of this new payment service with our existing portfolios.

At this moment, we are not in a position of making any comments about the change of ownership. If there is any things that discussed and when the time comes for the disclosure, I believe the SoftBank Corp. management will be disclosing. Gracias.

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Shinji Moriyuki, SBI Securities Co., Ltd., Research Division – Analyst [56]

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[Interpreted] Moriyuki from SBI Securities. A question about LTV, JPY 4.5 trillion monetization program. As you proceed, LTV goes down. If security price goes well, maybe less than half of the target LTV level. Under the circumstance, I wonder if it’s acceptable or if you assume that stock price goes well, maybe you may want to stop monetization or return to shareholders. So what’s your view around that?

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Yoshimitsu Goto, SoftBank Group Corp. – Senior VP, CFO & CISO [57]

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[Interpreted] Gracias. This is Goto speaking. About loan-to-value, of course, this is our principle, and we keep our targeted LTV, but JPY 4.5 trillion monetization program, this is a message to our stakeholders. So it’s a separate issue.

Having said that, consequently, LTV should be better, should be improved. So — it’s not something that if it’s too good, it’s bad. LTV is not like that. Of course, shareholder value may go up with a certain leverage. But Moriyuki, as I mentioned earlier, that LTV may drop by half against the target level. But we will also do remember repurchase shares. Of course, LTV can be better, but it’s not that extremely. I would say that maybe 2% to 1 point improvement. Well, I thought that it should not — half of 25%.

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Shinji Moriyuki, SBI Securities Co., Ltd., Research Division – Analyst [58]

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[Interpreted] So JPY 4.5 trillion program is not going to be used for new investment. But when your financial position gets better, you have some leeway. And maybe you may consider something.

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Yoshimitsu Goto, SoftBank Group Corp. – Senior VP, CFO & CISO [59]

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[Interpreted] Well, Goto speaking. The source for new investment is outside JPY 4.5 trillion program. We are not saying that we are not going to finance beyond JPY 4.5 trillion at all. We will take advantage of asset-backed finance. And if there is a huge demand, we may issue bonds. So we will have several options.

If improvement is well enough, then you may have some excess or leeway for new investment. It could be happening. Once financial position gets better, then there might be more demands from investors for bonds.

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Shinji Moriyuki, SBI Securities Co., Ltd., Research Division – Analyst [60]

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Second question to Kimiwada-san maybe. Well, sales of Alibaba shares have not been made yet. Going forward, when it comes to selling, almost 0 tax payment?

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Kazuko Kimiwada, SoftBank Group Corp. – Managing Executive Officer [61]

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[Interpreted] Kimiwada speaking. We can’t expect how much tax payment will happen. But loss carryforward, the term is rather long for us to use our loss carried forward. We try to save as much as possible. Thank you very much.

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Operator [62]

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[Interpreted] Thank you very much, ladies and gentlemen. That concludes the SoftBank Group Corporation Investors Briefing.

[Portions of this transcript that are marked Interpreted were spoken by an interpreter present on the live call.]

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