Constraints on investment exits due to worsening global political and economic conditions and financial markets
First written in FY2019. 2 of 6 entries say "Materialised", first in FY2021-Q1. Latest entry: FY2024-Q3.
SoftBank Group Corp. moved to the "Worse" side of this theme in 2020, 2 years before the typical company in this theme (2022).
0 other companies' latest entry also says "Mitigated".
- FY2024-Q3MitigatedAnnual report
「Listed portfolio companies (Note 4): Up 2.7% from the end of the previous quarter. Share prices of companies including DiDi rose. - Private portfolio companies (Note 4): Up 5.4% from the end of the previous quarter. Fair values increased, led mainly by ByteDance, which delivered strong performance.」
Regarding the risk of constrained investment realization and valuation declines due to deteriorating global financial markets, the fair values of SVF1's listed and private portfolio companies increased at the end of the third quarter compared with the end of the previous quarter. Differences in valuation among portfolio companies remained, however. - FY2023-Q2WorsenedAnnual report
「Against a backdrop of a global downward trend in share prices, the share prices of many listed portfolio companies declined, and the fair values of many private portfolio companies also fell.」
Inflation, recession concerns, higher interest rates and global share price declines broadly emerged as valuation losses at listed and private portfolio companies. - FY2023-Q1MaterialisedAnnual report
「Against a backdrop that included growing concerns about an economic recession due to rising inflation and a global downward trend in share prices driven by higher interest rates, share prices of many listed portfolio companies declined, while the fair values of private portfolio companies (Note 1) also fell, reflecting declines in the share prices of comparable listed companies.」
Global inflation, recession concerns, higher interest rates and falling share prices materialized as declines in the fair values of SVF's listed and private portfolio companies and investment losses exceeding ¥2 trillion. - FY2021-Q3WorsenedAnnual report
「There is still no sign that the spread of COVID-19 is coming to an end. Infections began to rise again worldwide from October 2020, and as of 1 February 2021 (Japan time), cumulative cases worldwide had exceeded 102.92 million and deaths had exceeded 2.23 million.」
The disclosure described the continuing spread of infections and the large cumulative numbers of cases and deaths worldwide as the risk of global political and economic conditions and financial markets deteriorating. - FY2021-Q1MaterialisedAnnual report
「As the spread of COVID-19 affected the global economy and financial markets, SoftBank Vision Fund was affected to a significantly varying extent depending on the sectors in which its portfolio companies operated.」
The risk of global economic and financial market deterioration materialized as the spread of COVID-19, with adverse effects on travel, hospitality and other sectors and positive effects on online businesses emerging differently across portfolio companies. - FY2019First statedAnnual report
「In addition, for investments in illiquid, unlisted companies, if market conditions deteriorate rapidly, the Group may be unable to sell its investment interests at the timing, scale or terms it desires.」
The risk was newly identified that global political and economic conditions, trade friction and conflicts, and deteriorating financial markets could reduce the value of unlisted investments and make it difficult to realize investments on the desired terms.