Investor Presentaiton
Investment in Listed Stocks and Other Instruments
SoftBank
Group
• In order to diversify assets and manage surplus funds, investments were initially made directly by SBG
and later by asset management subsidiary SB Northstar from Q2.
•
SB Northstar is engaged in acquiring and selling listed stocks and other instruments, derivative and
credit transactions related to listed stocks.
•
Accounts in B/S, P/L and C/F are as follows.
SBG (FY20Q1-)
SB Northstar (FY20Q2-)
Non-current assets
B/S
Investment securities
Gain (loss) on investments at
B/S
P/L
C/F
Investment Business of
Holding Companies
• Realized gain (loss) on sales of
investments
• Unrealized gain (loss) on
valuation of investments
C/F from investing activities
• Payments for acquisition of
investments
Proceeds from sale/redemption
•
of investments
P/L
C/F
Current assets
• Investments from asset management subsidiaries (stocks)
• Securities pledged as collateral in asset management subsidiaries
Derivative financial assets in asset management subsidiaries
• Other financial assets (margin deposits and restricted cash)
Non-current assets
• Other financial assets (investments from asset management subsidiaries (convertible bonds))
* Since no repetitive trading is expected.
Current liabilities
.
• Derivative financial liabilities in asset management subsidiaries
•
Other financial liabilities (borrowed securities)
Gain (loss) on investments at Investment Business of Holding Companies
Realized gain (loss) on sales of investments at asset management subsidiaries
• Unrealized gain (loss) on valuation of investments at asset management subsidiaries
• Derivative gain (loss) on investments at asset management subsidiaries
C/F from operating activities
→As SB Northstar's primary business is to frequently trade marketable securities, investments
made by the company are recorded under C/F from operating activities.
C/F from investment activities
→Cash flows from acquisition of convertible bonds, which are not expected to be traded
repeatedly, are recorded under C/F from investment activities.
Accounting 7View entire presentation