SoftBank(SFTBY) - 2021 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company achieved a net sales increase from ¥1.4 trillion to ¥1.45 trillion, indicating good progress in the first quarter [15] - Net income increased by 12% compared to the previous year, with operating income around ¥500 billion, slightly exceeding expectations [17] - The total equity value increased from ¥28 trillion to ¥30.2 trillion, while net debt decreased from ¥6.3 trillion to ¥5.8 trillion, resulting in a shareholder value increase of ¥2.7 trillion [28][29] Business Line Data and Key Metrics Changes - The SoftBank Vision Fund showed signs of recovery in the first quarter, despite previous losses, with a valuation gain of ¥1.1 trillion from successful investments [52] - The domestic telecom business, SoftBank Corp., maintained steady growth in revenue and recorded its highest operating income ever during the COVID-19 pandemic [46] - The merger of Sprint and T-Mobile was officially certified, leading to a significant increase in the equity value of the new entity from ¥0.4 trillion to ¥1.9 trillion [50] Market Data and Key Metrics Changes - The company reported that the share price of Alibaba has been steadily increasing, contributing positively to the overall asset value [45] - The performance of the SoftBank Vision Fund improved, with a gross gain of ¥0.5 trillion as of August 10, 2020, indicating a turnaround from previous losses [55][56] Company Strategy and Development Direction - The company is focused on a monetization program targeting ¥4.5 trillion, with ¥4.3 trillion already achieved in just four months [9][10] - The strategy includes share buybacks totaling ¥2.5 trillion, with ¥1 trillion already executed [40] - The establishment of an investment management subsidiary aims to diversify assets and manage excess cash effectively [67][69] Management's Comments on Operating Environment and Future Outlook - The management emphasized a defensive posture in response to the ongoing COVID-19 pandemic, aiming to maintain a low level of loan-to-value (LTV) ratio [33][35] - There is cautious optimism regarding the recovery of the Vision Fund and the overall financial health of the company, despite uncertainties in the market [59] - The management is committed to achieving the monetization targets and maintaining shareholder value, despite market volatility [72] Other Important Information - The company plans to stop daily disclosures of private company valuations to avoid misleading investors, opting for quarterly updates instead [44] - The performance of the Vision Fund is improving, with several companies in the portfolio preparing for upcoming listings [59] Q&A Session Summary Question: What is the current status of the Vision Fund? - The Vision Fund has shown improvement, with a valuation gain of ¥0.5 trillion and several companies preparing for IPOs, indicating a positive trend [55][59] Question: How is the company managing its debt? - The company has successfully reduced net debt from ¥6.3 trillion to ¥5.8 trillion, maintaining a healthy financial position [28][73] Question: What are the plans for the monetization program? - The company is on track to exceed its ¥4.5 trillion monetization target, having already achieved ¥4.3 trillion in just four months [9][10]