The four pillars of ASI, all under one roof

Research evidence excerpt

The four pillars of ASI, all under one roof

Macquarie Equity Research SoftBank Group

Key Risks to Investment Thesis Company Description

• The interest rate environment could improve at a slower- SoftBank Group is a holding company with a portfolio

than-expected pace, which could affect portfolio company spanning telecom and internet services in Japan,

valuations. semiconductor architecture licensing through Arm, and its

• Capital markets could worsen, reducing potential venture capital/ asset management business through the

monetisation opportunities, affecting liquidity, and reducing Vision Funds segment. It holds stakes in OpenAI and T-Mobile

ability to service debt and invest in new holdings. This in the US. Overall, the company has a two-pronged business

could also affect portfolio companies' liquidity positions, plan: broadband communications services and AI/ technology

impacting long-term viability, reducing equity value of investments. It was founded by Masayoshi Son in 1981 as a

holdings used to calculate overall net asset value. software distribution company.

• Macroeconomic headwinds including recession could

constrict portfolio company fundamentals.

SoftBank Group (9984 JP) JPY/(bn) unless otherwise noted

Income Statement Mar FY 2025A 2026E 2027E 2028E Q4/26A Q1/27E Balance Sheet 2025A 2026E 2027E 2028E

Revenue 7,244 7,799 8,345 8,929 2,079 1,948 Cash 3,713 5,362 2,802 1,412

Cost of Goods Sold 3,490 3,783 4,016 4,265 1,048 916.5 Receivables 3,008 3,303 3,534 3,781

Gross Profit 3,754 4,016 4,328 4,664 1,031 1,031 Inventories 198.3 240.2 285.9 285.9

EBITDA 1,597 914.0 1,033 1,164 (172.2) 456.8 Investments 550.4 0.0 0.0 0.0

Depreciation 866.8 918.8 1,007 1,104 252.1 236.9 Fixed Assets 3,688 4,368 4,456 4,546