SoftBank touts leverage reduction after record loss in Vision Fund segment

By Steve Goldstein

Japanese investment group SoftBank on Thursday touted a reduction in leverage after a year in which its main Vision Fund suffered a record loss.

SoftBank said its loss in year ending March 31 narrowed to 970.1 billion yen ($7.2 billion) from 1.71 trillion yen, while sales rose to 6.57 trillion yen from 6.22 trillion yen.

Its Vision Fund segment lost 4.3 trillion yen, compared to 2.55 trillion yen the previous year.

SoftBank said it has been in "total defense" mode since early 2022, due to Russia's invasion of Ukraine, escalated U.S.-Chinese tensions and financial system instability. Even as its net asset value has dropped to 14.1 trillion yen, or $105.8 billion, from 18.5 trillion yen, or $150.8 billion, its net debt-to-equity value has decreased to 11% from 20.4%, and its cash position has grown to 5.1 trillion yen from 2.9 trillion yen.

SoftBank also said it's now more diversified. Alibaba (9988.HK) on March 31, 2021 represented 74% of its listed shares, and two years later that was down to 5%.

In a presentation, SoftBank said it's getting ready to go on the offensive with the AI revolution on the horizon, and it noted that microchip designed ARM made a step toward relisting with its draft submission to the Securities and Exchange Commission.

SoftBank shares have dropped 9% this year though are up 14% over the last 52 weeks.

-Steve Goldstein

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05-11-23 0532ET

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