9984.T - Earnings call transcript Q2 2023

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Operator

Thank you very much for waiting everyone.

Now we would like to start SoftBank Group Corp. earnings results briefing for six-month period ended September 30, 2022.

First of all, I would like to introduce today's participants. From left, we have Yoshimitsu Goto, Board Director and CFO; Kazuko Kimiwada, Senior Vice President and Head of Accounting Unit; Navneet Govil, Managing Partner and Chief Financial Officer, SoftBank Investment Advisors; Ian Thornton, Investor Relations, Vice President, Arm. broadcast live is announcement over internet. Today's

would and CEO, I Mr. like make to Chairman Son, Masayoshi Mr. SoftBank remarks. invite opening Now Group to Corp

please. Son,

Masayoshi Son

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Ian Thornton

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to results like CFO, Now Mr. Director business and you invite to I and earnings Board the would present to Goto, overview.

Yoshimitsu Goto

for is much kind name Goto. very introduction. you Thank your My

Mr. think I

for But we communicate to the that as our year, X a everything. make last sure to covers job presentation Mr. facts months is the Son's

by Son mentioned earlier. Mr. And way, the

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bad, not not bad at all. it's So

did the said suffered time Sprint the made was So that Sprint. people the at time with that mistake. acquisition failure, experience we and a actually, And X you

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environment so changed, we the freely we beginning But power, ask And the many that with but the keep time financial our always financial words can and and once at that. the our change way. wisdom We is So our do to believe of not last that for of there we financial to to And announce on that that, in come commit strategy. we people's do top what we to we Masa on strategy. strategy changed, period, always market. based the to try this business. no least, same manage We like market

change dawn make reconfirm time financial we the to we at day. open Vision that later and to are market make looking of Fund same other these of distributions years' the also we would so you sometime that's in would we we that at -- and, the recurring normal times mode. redemption course, would be the below the and so to see keep keep under that questions. and in policies from would And there to forward floor like cash But the subsidiaries, that are that sure the defensive on maintaining to sure the of bond our me. we like X X such are that would have time, secure recovery dividend policy, able XX% X maintain circumstance, to we income we to day to like we come that to least so now the like from and these strategy, and And And and and all believe X worth to with just no loan-to-value

the all Ms. been capable, Vision and in with answers a the supporting he's the Navneet. been So we by fund. than has questions ARM. us She long of that working so inception but that Fund since And SoftBank history himself, of us at we from the He's Kimiwada. am me, I with Rajeev Masa have Ian, acquisition the not actually have

So Investor ARM, that been the after privatized actually of Relations he's company from supporting view. point the

So we have a great member actually ready for you.

if let have So you please any questions, know. us

Operator

take to questions. like we'd Now

like we'd [Operator now. take We floor. the are to Instructions]. from First, Instructions] starting floor from [Operator questions the

Unidentified Analyst

Maschio Two business. Nikkei questions. from

environment The year? bottom shares. from in on is on or and view long When the second, next year So Do see environment for what's mentioned in you months mid impact another year, outlook you First, you next year finance What's will think or market the the we this first, Alibaba market expect your market or bottom? will winter the recovered? your next term? long do your for be XX market environment. new

when P&L? you Alibaba an how impact we share going Alibaba You on expect it or Alibaba cash. PL? But course, sell shares, or should of settlement contract posted shares, you If clarify? a kind on will kind on you has what you remeasurement shares PL? what kind And of When on what forward, impact sell gain. of have But impact on Alibaba could impact holding keep of

Yoshimitsu Goto

Thank will the to your second very for I Maybe much questions. answer question. you ask Kimiwada-san

see to great. the But And outlook ball, the crystal so, beginning when change. or hit to we the first, honest we positive in have last if the month for are that a The know But be don't our we market. with would be we you, X bottom.

we it aisle in market. IPO to there. But about environment. light Companies like recently. be want market, tunnel, at Until are outlook don't a Why? we like geopolitical like wait presentation can't we Because IPO still pessimistic good the for we a getting end I example, positive are the tried of We the in the basically, see risks looks For have improved. timing. the rushed market mentioned, the and to expect mobile

Kazuko Kimiwada

measurement And you excuse if Page trillion look because -- about the loss. of quarter. XX, second the it's place valued the to we second the your of better, says. It's minus get at quarter, quarter. the how took When question, quarter. every fair at sold second of every between and shares, me we market quarter, positive. Alibaba XXth value we the at negative. second FVTPL were FVTPL bad, see valuation bottom, in middle end the And page, sell The end Alibaba the see latest we ¥X.X it you price the When gets we the price at the mark difference see. markets investment That's fair we If shares, share and value

Yoshimitsu Goto

Any in gray jacket. center with other questions? So the a person

Unidentified Analyst

any impact the FDX. digital fund Yamauchi Is possibility from any for is management that? buyout? There for And of rumors there that your Manage analysts. by the question, some the also, believe is results? News. are I what investing FDX, possibility for in And second

Yoshimitsu Goto

any second for been About markdown, that the of If, to And company. of the so such from past companies million have we That's in seeing is your such compared investment, of is $XXX in investments it are against very about very cryptocurrency Vision minor. total this in news addition still the is related. Vision that, amount investing FDX, for days. FDX us. -- And I've biggest with And cryptocurrency couple the related Fund. material for or about terms case not invested very Investing but of something in and for Fund. AI your vision I the -- small for person in reference, that we to cryptocurrencies in was current

a in So is different the from actually our currency bit vision. investing

need blockchain. can be we that But something of business the may That cryptocurrency, seriously. there be comes evolution to through the to AI. see a technology for that's like something that positive So

So about to including but an there investment of overall. Vision can make those, some be the still of and some indirect interpretations X.X% just Fund

no question, that. No No that the that not idea. cryptocurrency change That's for first answer. am for question. your And for for second I comments I So still have MBO. for for the that. for change

question? Next

Unidentified Analyst

News from questions. Two Nakagawa Peaks.

restructuring related about able and of to How question, First, human perspective? be XXX to company you or example. for continue restart market resizing back, resource Vision from of you investment for people talked to SVF when to through SVF And out But you like are a bounces investment may going venture get Fund. network. information have capital, investing want you keep XXX, to

investment what's maybe we early going you stage As want invest to by companies have to SVF? view later, and future your may forward? in So on

Yoshimitsu Goto

talk could Navneet, that? you about

Navneet Govil

the disruptive so that valuations, your artificial terms Thank we most question than the companies at as that first staff And attractive been at media intelligence. outlets, Vision the in intelligence. leverage the time We the investing more Funds, at in look right stage, artificial of reduction technology in early has the will of the the to to at reported XX%. That's about reduction companies continue leverage So some for look focus. in you. was

Yoshimitsu Goto

Any a gentleman. from me, questions? you. row Third other Thank

Unidentified Analyst

IPO. Matsuda question ARM from My ARM Nikkei is IPO. newspaper. about

shortage you the change on In may growth have and also fiscal for kind any and slowdown why? forward. that target in the world is report, IPO also market. of of the mentioned financial difficulties that some But depending Do 'XX you semiconductor going is of the that there that a be So before the market also is schedule timing. indicates

Yoshimitsu Goto

It's so Ian that for make like sure. I in to IPO, to ask preparation to answer would

Ian Thornton

want March as financial markets, economic we IPO the is earlier, given as and to happen year, this possible. that's current soon Goto-san to the of your given end Thank indicated fiscal happen you now in uncertainty, unlikely for the Clearly, of to as before state XXXX. question. the probably global Masa unlikely so But

calendar However, preparations the sometime for well. IPOing advanced. in are going They're we 'XX. the And fully to very are IPO in committed XXXX,

Yoshimitsu Goto

great Ian, to a has in too. ready, about that is don't we better, Group in the As but explanation we have market. rush. have course, of SoftBank change to is great have that We company, great to this asset, Once preparation the that, our sooner make like no sure would is is why That so switch. explained we market don't a by

you. other in floor? questions XXXX. sometime Thank of Any we that from think the that year So

Unidentified Analyst

Bloomberg. from Dee

that the future? to for the market? the end in hold mentioned you First, Or investment what's now. of the come practically, restructuring? there About you But reduction, more your that the entire XX%. Chinese Is position is to about headcount

Yoshimitsu Goto

you. Thank

answer. on in the fact. are China, The maybe That's question, But may first yes, politics in Navneet careful I general, investment-wise, that example, from we China assets we than assets my more in have before. again, add hold. commenting we the China, But on put been in to for refrain back damaged. have

When we new continue an careful So do. why answer monetization, may for than to be may uncertainties. suffer we the Chinese from to want And second second opportunity you question. it That's again, for to Navneet, comes some investments, time, more whenever question, will our assets the before. to

Navneet Govil

respect that than than we correct able greater And we given as them the been have to be with valuations, the pursue time, reported, our at investment organization rightsized opportunities posture at we when has XX%. We will defensive we the been With have support least. at we and reductions, attractive believe the portfolio has it have, see the right to more companies. now the to XXX team

Yoshimitsu Goto

much. very Thank you

the For have last floor. time, the a from just of like question to interest I

please. is gentleman, from row, there So front

Unidentified Analyst

also has of I the organization presentation, NHK. been please. X In Nagoshi have discussed. efficiency the from questions,

that secrets, be be to the specific in the going is second is policies I same So have but reduction Masa, about earnings, cost pursued. previous for to as policy? question But And the ideas Any that going no the Masa. or for reductions?

be to that he a touch management be on in not going that CEO? Is not of he authority the going his all? but is delegate -- management to somebody explanation involved So any so involved? some the going he's to to business he as going Is to of else, in at

Yoshimitsu Goto

you me your So the he change organization, for would no about be and come please role. of for the do -- involved. let regarding more asking we, the in from So to question the answer have And as to Navneet, on that? Masa, our we going Masa. Chairman second the expertise do efficiency first CEO, question probably one, the been that. things. He's to need But that actually also we've need many to because much better But we Masa too second each

he be to supervising So CEO develop role, a entrepreneur the see but business. and an that he's new as going as also to grow Group supervisor

been X roles. he's doing So

those So especially Kimiwada-san's And group have is for the companies company, each team. already have their public going independent functional management look they they myself their guidance. public, to own for and and team And after. portion, own me,

For those private enhance those governance. an Fund, and body the work to not Vision is close try something example, as for like even independent to but be a -- try company, public

go So question. first for the please Navneet,

Navneet Govil

across with the management levels, those we all the made and and reductions, reductions, were the middle when levels, across organization senior of levels, to were So geographies. all junior efficiency respect levels, the they

brought operations SoftBank's was of did outside we SoftBank. a under thing Japan, platform, One we other single them The

the had we Funds. So have Vision International, we SoftBank

and are now combined have SoftBank as operated them they We One team.

Vision the are for Japan, like X, of X, the teams human LatAm outside like Vision single the So areas others, they and teams investing functional legal, Fund Fund the investing for funds. resources supporting finance, of each all teams

So there is we significant efficiency made. as a that of organizational result changes these

Operator

Thank you very much.

Now Instructions] we from take Suchin]? from would [Operator questions Zoom [Kyoto to Nakajima-san participants. like

Unidentified Analyst

he Nakajima mentioned is and last, next this from it seems name the show which last. but have onwards, that I time, himself me. My question that ]. it Suchin thought the I was today Son-san's time [ would a about remarks. surprised He Kyoto was

the only forward, shareholders' where maybe Masa's forum see face. Going meeting is we can

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Yoshimitsu Goto

very question. much your Thank you for

took yes, he communicate we to will AGM when Masa what if we fact, for some himself is to our of like which But that announcement, he listen he continue have thought also might said he would with mentioned to you consideration to the lead But will carefully, course, show do. you into disadvantage. results and Of do. he job

the sure from at efforts his eventually, you, some releasing to Thank should announcement, opportunity. him forward more show we are he'll for example, you. that looking by But his efforts be earnings have I'm face able and to he time on to focus. real think into and results be happy to point, I

Operator

from from Nomura the Zoom Next participants. question Masuno-san Securities.

DaisakuMasuno

I have X Masuno. questions. is This Yes.

addressed, Alibaba. contract, the to forward. less Alibaba about need end I going the so do forward First as be but financial X don't that know that's And year share settle of September, That's first be of don't is believe At X my depending shares able or to than as Alibaba to over ¥X.X in how the end may trillion you I and question. -- you looking long cash. you you some see How steadiness see of of report we have in Alibaba price, repay, September, repay at year, that?

Yoshimitsu Goto

a hedge. basically say, to have transaction this you is trying As

when see shares. more can price believe the -- that having settling have price, already be volatile. share able option, positive we'll we decline in By with share we price settle that the benefit the so be price agreed So have share down, in we the goes share we when by flexible to we is when

that that's try to we us. the So it keep of kind with the benefit

DaisakuMasuno

And stand-alone question my second the cash runway. is

So credit at lines, March. of trillion end excluding the the ¥X.X

billion. and you ¥XXX So of bonds, and buybacks shares spent have buyback

share the years the for balance long would in keep see debt. the financial you that than you gives you that the the the that, as cash cannot redemptions, to to be any try and buyback otherwise, cash trillion. ¥X.X any position those redemptions a cash reserve going So Bonds the that -- is that How between service? equivalents have But to you to that going necessary then excess debt for for or it's ¥X.X keep the X-year you to you you like keep ¥X.X less trillion coverage to ¥X.X more do for bond give trillion bond How trillion. or if policy?

Yoshimitsu Goto

historically, of cash bond our redemption. at And closed, and believe So the kind time I those X than our the more long market and is because to bond of years policy coverage of financial cover did least are data that is maintaining the how X-year at the enough. Lehman bankruptcy,

and with base half plan policy. So next And year, there us. financing financial that fiscal our are that's for for the the are the several second

that's more such something I of So being believe plan executed. to be believe, us is position. is, the the that seeing for that enough defensive than I if And and market, circumstance, the going that financing then in gives acceptable the counterpart cash

DaisakuMasuno

case, increase so but does really a the may that you you have in that So position worried? net cash not debt,

Yoshimitsu Goto

the If we then that's divest going be to asset even positive.

the Alibaba So in that's contract, positive then believe you. shares if you I for also settle that, for

Operator

X be In of ended period XX, the you earnings for website. joining question. results session months September X-month XX, earnings footage the this XXXX. the This the Corp. uploaded once for The video on SoftBank SoftBank period the will briefing you, September briefing Corporation our interest results very the Group again much time, corporate concludes Thank XXXX. Thank last Group of Goto-san. was ended for

SoftBank (SFTBY) 11 Nov 222023 Q2 Earnings call transcript