SoftBank Results Presentation Deck
Early Physical Settlement of Alibaba Prepaid Forward Contracts
Corresponding to 242M ADRs Announced on Aug 10
●
(a) Gain on settlement
(Gain on settlement of prepaid forward contracts using Alibaba shares
pertaining to the Early Physical Settlement*¹)
P/L: Recorded ¥5,371.6B in income before income tax for FY22Q2
→ Recorded value of Alibaba shares that had not been counted in accounting
B/S: Reduced financial liabilities relating to prepaid forward contracts by ¥3,821.8B ($27.57B)
(b) Gain from remeasurement
(Gain from remeasurement of Alibaba shares held upon exclusion from
associates)
(c) Derivative gain
(Derivative gain on prepaid forward contracts that are the subject of
the Early Physical Settlement*¹)
Amount
recorded
=SoftBank
Group
Consolidated P/L
account
¥584.8B Gain on investments
at Investment
¥3,996.7B Companies
¥5,371.6B
Business of Holding
Derivative gain
¥790.1B (excl. gain (loss) on
investments)
Total (contribution to income before income tax)*2
*1 The early physical settlement of prepaid forward contracts corresponding to 242M ADRs of Alibaba shares from Aug to Sep 2022. Certain contracts that became
due for settlement during the implementation period were also settled.
*2 The difference from the estimated ¥4.6T in the Aug 10, 2022 press release is mainly due to (1) the difference between the Alibaba share price used in assumption
for the estimate ($91.19/ADR) and the actual share price at settlement (a and c) or upon exclusion from associates (b), and (2) the difference between the
exchange rate used in assumption (¥134.89/$) and the actual exchange rate.
Accounting 7View entire presentation