Softbank Group Corp. · TSE:9984
Softbank — Q3 FY2024 Earnings Presentation
110 slides from Softbank's earnings presentation, Feb 12, 2025
Slide 1: Earnings Results for the Nine-month Period Ended December 31, 2024
Ver.1.1 Earnings Results for the Nine-month Period Ended December 31, 2024 Investor Briefing February 12, 2025 SoftBank Group Corp.
Slide 2: Disclaimers
Disclaimers This presentation provides relevant information about SoftBank Group Corp. (“SBG”) and its subsidiaries (together with SBG, the “Company”) and its affiliates (together with the Company, the “Group”) and does not constitute or form any solicitation of investment including any offer to buy
Slide 3: Exchange rates and abbreviations
Exchange rates per JPY used for translation FY2023 FY2024 Average during quarter Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1 USD 138.11 145.44 147.00 147.87 156.53 150.26 151.32 EOQ Jun 30 Sep 30 Dec 31 Mar 31 Jun 30 Sep 30 Dec 31 Mar 31 1 USD 151.41 158.18 Abbreviations Abbreviations used in Accounting and Finance s
Slide 4: Index
Index • Accounting • Finance • SoftBank Vision & LatAm Funds • Arm
Slide 5: Accounting
Accounting
Slide 6: Consolidated Results
Consolidated Results FY23 FY24 (¥ B) Q1-Q3 Q1-Q3 Change Change % Net sales 5,001.9 5,302.6 +300.7 +6.0% Income before 264.1 1,270.9 +1,006.9 +381.3% income tax Net income (attributable to owners of the -458.7 636.2 +1,094.9 ー parent) (Reference) Gain/loss on investments -538.9 2,170.0 +2,709.0 ー Inv
Slide 7: Segment Income
Net Income & SVF + Investment Business of Holding Companies Segment Income 3,440.4 3,033.6 1,179.6 Net income (attributable to 960.1 (¥ B) owners of the parent) 950.0 999.5 SVF segment income + 231.1 Investment Business of Holding -57.6 Companies segment income -79.5 -174.3 (income before income tax
Slide 8: Investment Business of Holding Companies Segment
Investment Business of Holding Companies Segment (¥ B) FY23 FY24 P/L item FY24Q1-Q3 main items Q1-Q3 Q1-Q3 Gain/loss on investments at Investment -583.4 2,008.5 Business of Holding Companies Realized gain/loss at asset management subsidiaries -90.7 -41.6 Unrealized gain/loss on valuation at asset 33
Slide 9: T-Mobile: Shareholding & Fair Values
T-Mobile: Shareholding & Fair Values $220.73 $206.36 $176.18 Events in FY24Q1 Share price $160.33 $163.22 ①Sold 6.7M TMo shares for $670M following DT’s partial exercise of call options Number of 92.1 92.1 1 85.4 85.4 85.4 shares held ②DT’s call option for the remaining (M) -6.7 28.2M TMo shares exp
Slide 10: Deutsche Telekom: Shareholding & Fair Values
Deutsche Telekom: Shareholding & Fair Values €28.99 Acquired 225.0M Deutsche €26.39 €23.48 Telekom shares in Sep 2021 Share price €21.75 €22.50 in return for the sale of TMo shares Number of shares held 225.0 225.0 225.0 225.0 225.0 (M) Fair value ($ M) 6,633 6,730 5,407 5,469 5,653 $5,590M (i) DT
Slide 11: Alibaba Shares & Derivative Financial Assets/Liabilities
Alibaba Shares & Derivative Financial Assets/Liabilities (Amount Recorded in B/S) Value of Alibaba shares Derivative financial Investment securities (FVTPL)*1 assets/liabilities (net) recorded in B/S considering prepaid Alibaba share price $84.79 $84.79 forward contracts: $72.36 $72.36 $16,554M ( A
Slide 12: SoftBank Vision Funds Segment
SoftBank Vision Funds Segment (¥ B) FY23 FY24 P/L Q1-Q3 Q1-Q3 FY24Q1-Q3 ｍain items Includes gains and losses associated with investments in the Gain/loss on investments at SoftBank Vision Funds 781.9 257.6 Company’s subsidiaries Gain/loss on investments at SVF1, SVF2, and LatAm 745.3 287.3 ¥740.3B g
Slide 13: Investment Performance of SVF1 and SVF2
(Reference) Investment Performance of SVF1 and SVF2 ($ B) Since Inception FY24*1 Gain/loss Gain/loss Cost*2 Returns*2 Gain/loss Q3 Q1-Q3 SVF1 89.5 111.1 21.6 -1.0 4.8 Exited investments 44.5 66.5 22.0 0.4 -4.0 Investments before exit 45.0 42.1 -2.9 -1.2 4.3 Reversal of previously-recorded valuation
Slide 14: Investment Transfers from SBG to SVF2
Investment Transfers from SBG to SVF2 • As part of the ongoing portfolio reorganization of SBG and its key investment subsidiaries, 6 private investments have been approved for transfer to SVF2.*1 • In FY24Q3, 5 investments were transferred. In FY24Q4, 1 investment is planned for transfer, subject t
Slide 15: Arm Segment in SBG's Consolidated Financial Report
Arm Segment in SBG’s Consolidated Financial Report Bridge to Arm’s disclosure (FY24Q1-Q3 P/L) Adjustment (1) Adjustment (2) Amortization expenses SBG Consolidated related to intangible Difference in Arm assets recognized in Financial Report accounting Arm segment the purchase price standard disclosu
Slide 16: Consolidated P/L Summary
Consolidated P/L Summary (¥ B) FY23 FY24 1 ・¥902.9B investment gain on Alibaba shares P/L item Change Q1-Q3 Q1-Q3 ・¥751.9B investment gain on TMo shares (including derivative gains and Net sales 5,001.9 5,302.6 +300.7 losses on investments and effects of foreign exchange translation) Gross profit 2,
Slide 17: Consolidated B/S Summary – Assets
Consolidated B/S Summary – 1 (¥ B) B/S 1 Investment Business of Holding Companies segment (including SBG and its Main items Mar 2024 Dec 2024 Change item wholly owned subsidiaries conducting fund procurement, etc.): ¥1,960.7B 11,441.4 10,333.5 -1,107.9 (¥1,398.9B decrease) Current assets Cash and ca
Slide 18: Investment Securities in Consolidated B/S
Investment Securities in Consolidated B/S (Main Investments) (¥ B) Mar 2024 Dec 2024 Change Outline Investment securities 9,062.0 8,743.8 -318.1 FVTPL 8,321.5 7,837.0 -484.4 T-Mobile 2,275.8 2,980.4 +704.6 Increased mainly due to higher share price, despite SBG selling 6.7M TMo shares following DT's
Slide 19: Breakdown of Goodwill/Intangible Assets
Breakdown of Goodwill/Intangible Assets (¥ B) Change B/S Main items Mar 2024 Dec 2024 Amorti- Changes in Outline Item Others zation FX rate 5,709.9 5,991.2 * Arm 3,585.0 3,745.3 ― +160.3 ― Goodwill SBKK 913.9 913.9 ― ― ― LY 478.3 478.3 ― ― ― ZOZO 214.0 214.0 ― ― ― Technologies 359.0 332.3 ― ― ― Main
Slide 20: Consolidated B/S Summary – Liabilities
Consolidated B/S Summary – 2 (¥ B) B/S Main items Mar 2024 Dec 2024 Change item 14,020.3 13,506.9 -513.4 Interest-bearing debt 8,271.1 1 7,346.2 -924.9 1 SBG Borrowings*: ¥1,001.3B (¥538.3B increase) Lease liabilities 149.8 162.0 +12.2 Current liabilities Corporate bonds*: ¥6,810.5B (¥663.0B increas
Slide 21: Consolidated B/S Summary – Equity
Consolidated B/S Summary – 3 (¥ B) B/S Mar Dec Main items Change Item 2024 2024 13,237.2 14,574.6 +1,337.4 Common stock 238.8 238.8 ― 1 ¥636.2B net income attributable to owners of the parent Capital surplus 3,326.1 3,356.9 +30.8 2 ¥206.9B in share repurchase Other equity instruments 193.2 193.2 ― 3
Slide 22: Impact of the Weaker Yen on P/L & B/S
Impact of the Weaker Yen on P/L & B/S (Illustration) P/L B/S Entities Components Foreign exchange Exchange differences gain (loss) from translation Foreign currency- denominated cash and cash equivalents/ SBG stand-alone + Loans receivable Foreign exchange gain Subsidiaries conducting (excl. investm
Slide 23: Impact of the Weaker Yen in FY24Q1-Q3
Impact of the Weaker Yen in FY24Q1-Q3 (from ¥151.41/$ to ¥158.18/$) Foreign exchange loss in consolidated P/L for FY24Q1-Q3: ¥251.9B At SBG stand-alone: Foreign exchange losses of ¥275.4B related to foreign currency-denominated borrowings from Group companies and ¥16.8B related to foreign currency-d
Slide 24: Impact of the Weaker Yen in FY24Q3
Impact of the Weaker Yen in FY24Q3 (from ¥142.73/$ to ¥158.18/$) Foreign exchange loss in consolidated P/L for FY24Q3: ¥540.9B At SBG stand-alone: Foreign exchange losses of ¥595.0B related to foreign currency-denominated borrowings from Group companies and ¥39.0B related to foreign currency-denomin
Slide 25: Consolidated C/F Summary
Consolidated C/F Summary (¥ B) C/F FY23 FY24 1 ¥149.2B net inflow, despite the acquisition of corporate bonds by SB Northstar Primary details for FY24Q1-Q3 ・¥345.1B income tax paid (primarily by SBKK) item Q1-Q3 Q1-Q3 ・¥163.5B income tax refunded (SBG received ¥76.7B refund from a prior +530.5 Subto
Slide 26: Income Taxes Paid on a Consolidated Basis
Income Taxes Paid on a Consolidated Basis (Net) (¥ B) FY24 FY19 FY20 FY21 FY22 FY23 Total Q1-Q3 Consolidated 757.4 324.5 589.3 525.9 816.8 3,013.9 181.5 Japan 696.3 189.5 551.2 469.7 717.0 2,623.7 122.1 SBG and intermediate holding companies 445.8 -85.3 200.0 214.2 443.3 1,218.0 -49.1 (wholly owned
Slide 27: Co-investment Program to SVF2: Related Party Transactions
Co-investment Program to SVF2: Related Party Transactions Equity interests of third-party interests Masayoshi SBG FY24Q3: $― (¥―) Son* 1 FY23: $― (¥―) Equity interests: 17.25% (B) (A) Distribution: $173M Equity acquisition amount: $2,923M 100% (Return of capital) (i) Acquisition costs: $2,594M (comm
Slide 28: Co-investment Program to LatAm Funds
Co-investment Program to LatAm Funds & Management’s Investment in Asset Management Subsidiary Co-investment program to LatAm Funds Management’s investment in Equity interests of third-party investors asset management subsidiary FY24Q3: $55M ( ¥8.7B) FY23: $93M (¥14.1B) Masayoshi SBG Masayoshi Son SB
Slide 29: Finance
Finance SBG stand-alone financial figures are calculated by excluding those of self- financing entities from the consolidated figures, unless otherwise stated. Major self financing entities include SBKK (including its subsidiaries such as LY Corporation and PayPay), Arm, SVF1, SVF2, LatAm Funds, etc
Slide 30: ASI: Powering realization with Group-wide efforts
AI AI Chip Data center ASI Artificial Super Intelligence AI Robot Energy Powering realization with Group-wide efforts Finance 2 2
Slide 31: Stargate
Stargate Finance 3 3
Slide 32: Cristal intelligence
"Cristal intelligence" is a provisional name and not the official product name. The information contained in this document is based on the current plans and is subject to change, including specifications and other conditions, before the official release. Finance 4
Slide 33: Historical Share Prices (Since 2024)
Historical Share Prices (Since 2024) Outperforming U.S. and Japanese stock indices as interest towards AI related shares heightens 260 240 220 210 Arm 200 180 160 151 SBG 145 Magnificent 7* 140 127 S&P500 120 116 NIKKEI 100 80 Jan 2024 Apr 2024 Jul 2024 Oct 2024 Jan 2025 (Note) Created by SBG based
Slide 34: Interest Rates and FX Rate (Since 2024)
Interest Rates and FX Rate (Since 2024) FX volatility is amplified by uncertainty surrounding U.S. interest rates and policies. Yen interest rates continue to rise due to expectations of additional rate hikes by BoJ Japan-U.S. Interest Rates FX Rate (USD/JPY) (%) (JPY) 6.0 165 米国債… U.S. Treasury (10
Slide 35: FY2024Q3 Financial Summary
FY2024Q3 Financial Summary LTV remains at a low level. Increased cash position through expanded margin loan capacity and retail bond issuance NAV ¥29.3T (+¥0.3T QoQ) LTV 12.9％ (+0.4ppt QoQ) NAV・LTV Net debt ¥4.3T (+¥0.2T QoQ) *1 Cash position ¥5.0T (+¥1.2T QoQ) Expanded margin loan capacity and hybr
Slide 36: Historical NAV
Historical NAV Maintaining a high level. Currently at a record high (¥ T) level due to the rise in Arm’s share price 35.3 33.5 29.3 29.0 FY2000 FY2005 FY2010 FY2015 FY2020 Q1 Q2 Q3 (Q3*) FY2024 Applying share prices (Note) As of the end of each fiscal year and FX rate • NAV (Net Asset Value) = Adj.
Slide 37: Historical LTV
Historical LTV Maintaining with a significant buffer 25% 18.2% 15.0% 14.5% * 12.5% 12.9% 13.3% Average LTV over the past 3 years 11.0% 10.6% 11.5% 8.0% 8.4% 7.8% Jun 2022 Sep 2022 Dec 2022 Mar 2023 Jun 2023 Sep 2023 Dec 2023 Mar 2024 Jun 2024 Sep 2024 Dec 2024 * As of the end of each quarter * For d
Slide 38: Historical Equity Value of Holdings
Historical Equity Value of Holdings While Arm’s value decreased from Sep end, equity value of holdings remains unchanged mainly due to JPY depreciation; however, has expanded since the beginning of 2025 due to the rise in Arm’s share price Net of asset-backed 38.3 37.8 finace 33.1 33.7 (¥ T) 30.3 21
Slide 39: Historical Invested Amounts (SVF + SBG)
Historical Invested Amounts (SVF + SBG) Invested $0.6B in Q3 FY2023 FY2024Q1～Q3 $3.9B $4.5B ($ B) 2.0 1.9 1.8 1.5 SBG*1 0.9 1.4 1.2 1.1 Follow-on investment 1.5 0.6 in OpenAI 0.05 SVF*2 0.9 0.3 0.3 0.6 0.6 0.5 0.4 0.2 0.3 0.1 0.1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Jan 2025 invested FY2023 FY2024 *1 Invested amoun
Slide 40: Margin Loan Utilizing Arm Shares
Margin Loan Utilizing Arm Shares Increased non-recourse financing by $5B $13.5B （¥2.1T*1） Achieved capacity increase Incremental amount is and maturity extension fully $8.5B undrawn*2 One of the largest ever Increased capacity single-stock margin loans +$5.0B Support from financial institutions has
Slide 41: Cash Position and Future Bond Redemptions
Cash Position and Future Bond Redemptions Maintain ample cash position, well over 2-year worth of bond redemptions Cash position Bond redemption schedule*2 (¥ B) ¥5.0 T *1 Undrawn commitment line 900.1 ＞ Undrawn Arm margin loan borrowing capacity 790.9 Bond redemptions for the next 2 years (¥2.1T) *
Slide 42: Currency Breakdown of Cash Position
Currency Breakdown of Cash Position Manage cash position by capturing higher interest rates Cash position ¥3.3T*1 (+ undrawn borrowing capacity: ¥1.7T*2) Subsidiaries*3 USD ¥0.6T ¥1.8T USD average yield 4.8% *4 EUR, etc. ¥0.1T 3％ Deposit Bonds 56% 4.3% 5.3% JPY 22% (Reference*5) FF Target Rate (uppe
Slide 43: Issuance of Domestic retail senior bonds
Issuance of Domestic retail senior bonds Robust demand from retail investors confirmed 64 th Domestic retail senior bonds NIKKEI VERITAS (Fukuoka SoftBank HAWKS Bond) Deal of the Year 2024 Amount ¥350.0B 63rd Domestic retail senior Issue bonds ¥550.0B Issued in June Dec 11th, 2024 Date Awarded Best
Slide 44: FY2024 Funding and Fund Management Policy
FY2024 Funding and Fund Management Policy Financing from FY2025 and beyond to be considered while closely monitoring market conditions Products Policy Progress status Domestic bond Primarily anticipated for refinancing Completed refinancing. Implemented cash position buildup Foreign currency through
Slide 45: Bond Redemption Schedule
Bond Redemption Schedule Completed refinancing for bond redemptions in FY2024. Future bond issuances to be managed with due consideration for cash position and market environment Domestic senior bonds (¥ B) 1,638.6 Domestic subordinated bonds Domestic hybrid bonds Foreign currency-denominated senior
Slide 46: SBG Stand-alone Interest-bearing Debt
SBG Stand-alone Interest-bearing Debt*1 Interest-bearing debt decreased due to settlements of prepaid forward contracts using Alibaba shares, etc. SBG stand-alone interest-bearing debt increased due to domestic bond issuance and forex impact Main changes from Sep 30, 2024 • Decrease of financial lia
Slide 47: SBG Stand-alone Cash Position
SBG Stand-alone Cash Position Cash position increased due to forex impact and retail bond issuance (¥ B) SB Northstar 3,956.1 3,771.1 3,831.2 3,307.0 2,986.2 Main changes from Sep 2024 Increase Decrease 3,742.4 3,934.0 3,813.7 ・Investments/contribution to SVF, etc. *2 ・Bond issuance (+¥350.0B) 3,289
Slide 48: SBG Stand-alone Net Interest-bearing Debt
SBG Stand-alone Net Interest-bearing Debt Adjusted net debt increased due to the increase in interest-bearing debt (¥ B) 10,363.5 10,515.1 10,275.3 10,023.3 9,662.0 Finance-related adjustments 6,144.4 5,332.1 Asset-backed finance, etc. ¥4,940.5B 7,534.1 7,536.8 7,810.2 Hybrid finance ¥391.6B Adjuste
Slide 49: Historical Credit Ratings
Historical Credit Ratings Acquisition of Acquisition Acquisition Acquisition Listing Listing JCR A A+ 14Japan Telecom of Vodafone KK of Sprint of Arm of SBKK of Arm A 13 A- 12 (Stable) BBB+ 11 BBB10 BBB-9 S&P BB+ 8 BB 7 BB+ (Stable) BB- 6 B+ 5 4 (CY) '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '
Slide 50: Share Repurchase
Share Repurchase Maximum ¥500B (Until Aug 7, 2025) ¥209.9B Repurchased 42% Progress (Aug 2024 to Jan 2025) (Note) Maximum ¥500B: Share repurchase program authorized by the Board of Directors on Aug 7, 2024. For details, refer to the press release dated Aug 7, 2024, "Resolution regarding Share Repurc
Slide 51: Stargate Project: Building AI infrastructure for OpenAI
Stargate Project Building AI infrastructure for OpenAI Stargate Lead partners Chairman Masayoshi Son Finance Operation Joint investors Key technology partners (Note) Joint investors and key technology partners: as of the timing of project announcement (Jan 21, 2025). For details, see the press relea
Slide 52: Stargate Project: Illustration
Stargate Project: Illustration Equity funding Stargate Lenders/ Equity funding Debt investors Project finance (e.g.) Project 1 Project 2 Project 3 Project 4 ・・・・・ • Banks • Insurances • Pension Build and own funds Data centers Data centers Data centers Data centers • Investment ・・・・・ funds etc. (Not
Slide 53: Track Record of the Group's Project Finance
Track Record of the Group’s Project Finance Broadly expanded with a focus on Japan, U.S., and India U.S. Japan India Originator SB Energy SB Energy Japan*1 SB Energy India*1 Total project size $4,438M ¥218.6B $2,119M*2 Number of 10 16 8 projects SBG equity 8-18%*3 5-10%*4 16-21% contribution rate Ty
Slide 54: Case Study of Project Finance
Case Study of Project Finance Equity contribution ratio is generally low, ranging from 5-20% Total project size Originator SB Energy $1,029M Timing 2024 Location U.S. Texas Capacity Solar 904MWDC Project $901M finance, etc. * Equity $128M (12%) * Incl. Tax equity investments (Tax credit investment:
Slide 55: Journey of the Groups' Funding Activities
Journey of the Groups’ Funding Activities (1995~) Implement diverse financing strategies by fully leveraging asset portfolio. Funding channels expanded from domestic banks to a global scale Business 2013~ Project finance Securitization Around 1998~ 2006 securitization utilizing Lease (consolidated)
Slide 56: Adherence to Financial Policy
Adherence to Financial Policy 1 Maintain LTV below 25% in normal times (upper threshold of 35% even in times of emergency) Maintain at least 2-year worth of bond 2 redemptions in cash １ Secure recurring distributions and 3 dividend income from SVF and other subsidiaries Finance 28
Slide 57: FY24 Financial Strategy
FY24 Financial Strategy Financial management Financial synchronized with investment strategy Philosophy ・Adhering to financial policy Financial ・Flexibly respond to all environmental changes ・Building trust with each stakeholder Principles （Pursuing the optimal balance between shareholder returns an
Slide 58: Appendix
Appendix
Slide 59: SBG Credit Spread
SBG Credit Spread Spread of foreign currency- denominated senior notes 5-year CDS bps USD 1.4Y USD 3.4Y USD 4.4Y 350 bps 700 USD 6.4Y USD 6.4Y EUR 1.9Y SBG 5Y CDS (JPY) EUR 4.4Y EUR 3.9Y EUR 7.4Y EUR 7.4Y 300 600 500 250 400 200 300 150 200 100 100 50 0 0 Jun 2023 Sep 2023 Dec 2023Mar 2024 Jun 2024
Slide 60: Calculation of Equity Value of Holdings
Dec 31, 2024: Calculation of Equity Value of Holdings $1 = ¥158.18 ¥38.7T （unadjusted） Equity value of holdings Adjustment for (¥ T) Equity value of holdings ー ＝ asset-backed finance Prepaid forward (adjusted) （unadjusted） contracts, etc. 3.2 Payable 923M Share price ¥15.4T ＝ amount for Margin loan
Slide 61: LTV Calculation: SBG Stand-alone Equity Value of Holdings
LTV Calculation: SBG Stand-alone Equity Value of Holdings (L) Adjusted ¥4.33T SBG stand-alone net debt =12.9% (V) Adjusted SBG stand-alone equity value of holdings*1 ¥33.66T (¥ T) Adjusted SBG Major SBG’s interest in Other investments = + + stand-alone equity value of holdings assets SVF1&2 & LatAm
Slide 62: Details of SBG Stand-alone Equity Value of Holdings (1/2)
LTV Calculation: Details of SBG Stand-alone Equity Value of Holdings (1/2) (¥ T) Assets Value Calculation method (a) Arm 15.42 Multiplying the number of Arm ADSs equivalent to SBG's holdings by the ADS price (¥18.01T) - Before adjustment 16.75 payable amount of the consideration for Arm shares acqui
Slide 63: Details of SBG Stand-alone Equity Value of Holdings (2/2)
LTV Calculation: Details of SBG Stand-alone Equity Value of Holdings (2/2) (¥ T) Assets Value Calculation method (g) T-Mobile 2.98 Number of T-Mobile shares held by SBG × share price (h) Deutsche Telekom 0.38 Before adjustment 1.07 Number of DT shares held by SBG × share price Adjustment for asset-b
Slide 64: LTV Calculation: SBG Stand-alone Net Debt
LTV Calculation: SBG Stand-alone Net Debt (L) Adjusted SBG stand-alone net debt*1 ¥4.33T (V) Adjusted SBG stand-alone ¥33.66T =12.9% equity value of holdings (¥ T) Adjusted SBG Consolidated Net debt at self- Other stand-alone net financing entities, debt = net debt - etc. - adjustments 4.33 14.63 4.
Slide 65: Details of SBG Stand-alone Net Debt
LTV Calculation: Details of SBG Stand-alone Net Debt (¥ T) SBG stand-alone net debt Consolidated net interest-bearing debt - net interest-bearing debt (before adjustment) 9.66 at self-financing entities*1 For hybrid bonds and hybrid loans with maturity dates, deduct 50% from interest-bearing debt; A
Slide 66: Adjustment for Asset-backed Finance in LTV and NAV Calculation
Adjustment for Asset-backed Finance in LTV and NAV Calculation Non-recourse asset-backed finance is deducted from debt. Value of assets required for settlement is deducted from assets (¥ T) Forward/Collar 1 2 Margin loan transactions 38.7 Main shares Alibaba, Deutsche Telekom SBKK, Arm Asset-backed
Slide 67: Financial Liabilities from Prepaid Forward Contracts
Alibaba Monetization Related Financial Liabilities from Prepaid Forward Contracts All transactions to be settled by June 2025 Balance of financial liabilities related to prepaid forward contracts using Alibaba shares (quarterly basis) ($B) Projection* 33 33 32 31 29 25 17 Completion of settlements (
Slide 68: Breakdown of Equity Value of Holdings
Breakdown of Equity Value of Holdings Net of asset- 12% backed finance 24% 32% 16% 46% 11% 14% 9% 13% 3% 8% 9% 10% SBKK 21% 16% 15% 10% T-Mobile / Deutsche Telekom 12% 22% SVF1(61 investments) 20% 19% 13% SVF2 (284 investments) 4% 5% 4% 3% LatAm Funds (91 investments) 7% 8% 8% 6% Others Dec 2021 Dec
Slide 69: Geographical Portfolio Diversification
Geographical Portfolio Diversification Net of asset-backed finance 9% 7% China 20% 32% 11% Japan 15% 7% APAC 16% 9% (excl. China and Japan） 10% 10% 10% 40% 53% EMEA 26% 21% 22% 22% 21% 18% North America 5% 6% 5% 3% Others Dec 2021 Dec 2022 Dec 2023 Dec 2024 (Note) Classification of regions based on
Slide 70: Breakdown by Currency
Breakdown by Currency Investment and monetization flows are primarily in USD, while debt refinancing is principally in the same currency Investments and monetization Debt composition Cash position: ¥3.3T*1*2 Equity value of holdings: ¥33.7T*3 Interest-bearing debt*4: ¥7.9T Subsidiaries*2 JPY EUR, et
Slide 71: FY2024Q3: Increase/Decrease in Cash Position
FY2024Q3: Increase/Decrease in Cash Position Cash position increased mainly due to an increase in margin loan using Arm shares and bond refinancing & issuance （¥ T） Increase in Arm margin loan capacity Forex impact, etc. (incremental amount undrawn) +0.1 Net amount of bond issuance and +0.8 -0.1 -0.
Slide 72: Net Interest-bearing Debt
Consolidated Interest-bearing Debt/Cash Position/ Net Interest-bearing Debt Consolidated Interest-bearing Debt*1 (¥ B) Dec 2023 Mar 2024 Jun 2024 Sep 2024 Dec 2024 SBG stand-alone 13,765.7 14,297.5 14,328.8 13,249.7 12,951.9 Incl. SB Northstar - - - - - SVF1&2 and LatAm Funds 513.2 547.9 583.1 508.3
Slide 73: SoftBank Vision & LatAm Funds Investor Briefing
QUARTER ENDED DECEMBER 31, 2024 Investor Briefing SoftBank Vision & LatAm Funds NAVNEET GOVIL CFO, SB Investment Advisers & SB Global Advisers
Slide 74: Important Information (1 of 2)
Important Information (1 of 2) This presentation (this “Presentation”) is furnished to you for informational purposes in connection with the interests of SoftBank Group Corp. (together with its affiliates, “SoftBank”) in SoftBank Vision Fund L.P. (together with, as the context may require, any paral
Slide 75: Important Information (2 of 2)
Important Information (2 of 2) Vision Fund 1 performance herein is based on unrealized valuations of portfolio investments. Valuations of unrealized investments are based on assumptions and factors (including, for example, as of the date of the valuation, average multiples of comparable companies, a
Slide 76: Long-Term Investor In AI Revolution
SVF1 SVF2 LATAM PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT Long-Term Investor In AI Revolution 7+ Y E AR S OF CAPITAL D E PL OY M E N T 5- 10 Y E AR S R E M AIN IN G FU N D L IFE 2 Key Milestones & Select Investments1 SVF2 LATAM SVF1 Funds 2024 Launch We want to contribute to the Fund Launch 2019
Slide 77: 2024 Look Back
PERFORMANCE UPDATE 2024 Look Back GLOBAL MARKETS US Inflation2 Interest Rates3 Moderating inflation and start of Fed rate cut cycle Year-over-Year Change in Midpoint of the Federal Funds the US Consumer Price Index Target Range Soft landing realized in major economies 4.4% IPO and M&A activity remai
Slide 78: Stable Growth in Total Fair Value
SVF1 SVF2 LATAM PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT Stable Growth in Total Fair Value Twelve-Month Period Ended December 31, 2024 2024 VISION & LATAM FUNDS PERFORMANCE $151.9B $151.2B Total Fair Value1 Quarterly Fair Value Change2 $147.0B +$4.3B +$1.5B $146.2B Fair Value Gain Last 4 Quarte
Slide 79: Performance Snapshot
SVF1 SVF2 LATAM PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT SoftBank SoftBank SoftBank Vision Fund 1 Vision Fund 2 LatAm Funds Combined4 Total Commitments $98.6B $65.8B $7.8B $172.2B Acquisition Cost1 $87.8B $56.3B $7.5B $151.7B Performance Snapshot Cumulative Gross Investment Gains/(Losses)1 $23.
Slide 80: Public Investments Overview
SVF1 SVF2 LATAM PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT Public Investments Overview Top 10 Public Investments by Fair Value | As of December 31, 2024 QUARTERLY FV QUARTERLY STOCK SVF1 SVF2 LATAM INVESTMENT FV ($B)2 COMMENTARY6 CHANGE ($MM)4 MOVEMENT5 New in Top 10 This Quarter +$370 $1.9 +24
Slide 81: Private Investments Overview
SVF1 SVF2 LATAM PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT Private Investments Overview As of December 31, 2024 SVF1 SVF2 LATAM 395 # CURRENT INVESTMENTS1 Unrealized FV2 $25.3B Unrealized FV2 $25.2B Unrealized FV2 $5.1B Quarterly FV Quarterly FV Quarterly FV Change4 $(0.7B) Change4 $(1.0B) Change
Slide 82: 2024 Year in Review
SVF1 SVF2 LATAM PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT 2024 Year in Review OUR 2024 PRIORITIES 2024 PROGRESS 01 Investing in the AI Revolution 22 $6.0B New Investments1 Increase in SVF2 Commitments 02 Unlocking Portfolio Value 20 $28.5B IPOs and Full Exits2 Raised by Portfolio Companies3 03 D
Slide 83: Investing Across the AI Stack
SVF2 LATAM PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT Investing Across the AI Stack Twelve-Month Period Ended December 31, 2024 AI Investing Stack Application Layer 22 $3.9B Infrastructure Layer N E W I N V ES T M EN T S 1 I N V ES T M EN T A M O U N T 2 Hardware Layer +UNDISCLOSED INVESTMENTS Fo
Slide 84: Additional Investment in OpenAI
SVF2 PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT Additional Investment in OpenAI JANUARY 2025 SEPTEMBER 2024 Follow-On Investment1 $500mm Initial Investment $1.5B Tender Offer $6.6B $157B Total Round Size Post-Money Valuation Opportunity to Continued conviction Sustained revenue increase stake in
Slide 85: Recent Investments Demonstrate Strong Progress
SVF2 PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT 1.8x Recent Investments 2.8x Demonstrate Strong Progress1 Series A AUG Series B NOV Series C MAY Series D NOV Twelve-Month Period Ended KEY UPDATES December 31, 2024 KEY UPDATES Publicly listed on January 31, 2025, raising $275mm in IPO proceeds2 Im
Slide 86: Our Portfolio Companies Raised $28B+ YTD
SVF1 SVF2 LATAM PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT Our Portfolio Companies Raised $28B+ YTD Twelve-Month Period Ended December 31, 2024 SVF1 SVF2 LATAM 74 Series D-2 Series F & H Series G Series E Series C Series E Series J Series E Series F Equity Funding Rounds1 Series B Series B Series
Slide 87: Continued Listings and Strong Late-Stage Portfolio
SVF1 SVF2 LATAM PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT Continued Listings and Strong Late-Stage Portfolio As of December 31, 2024 $33B 60% Cumulative Public Listings Since Inception1 % of Total Private Fair Unrealized Fair 54 Value2 Value2 SELECT COMPANIES: SERIES E AND ONWARDS 3 50 +4 45 SVF
Slide 88: Swiggy Raised $1.3B in Record IPO
SVF2 PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT Total Cost2 Total Fair Value3 Gross MOIC4 $0.4B $1.1B 2.4x Cost5 & Trading Activity6 Swiggy Raised $1.3B in Record IPO1 DEC 31, 2024 INR 541 As of December 31, 2024 LISTING – NOV 2024 INR 390 INVESTMENT – JUL 2021 INR 194 Footnotes: 1. Source: TechC
Slide 89: Vision Funds Support Leading Indian Tech IPOs
SVF1 SVF2 PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT Vision Funds Support Leading Indian Tech IPOs As of December 31, 2024 TOP INDIA TECH. IPOS SINCE 20211 By IPO Proceeds ($B) 2.5 SVF Investment2 Listed November 2024 1.3 1.3 0.8 0.7 0.7 0.7 0.5 INDIA PORTFOLIO OVERVIEW 3 23 $14.2B KEY 7/8 93% $7
Slide 90: Case Study: Unlocking Value Through Multi-Round Investments
SVF1 PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT Case Study: Unlocking Value Through Multi-Round Investments As of December 31, 2024 DOORDASH VALUATION HISTORY1 FULL EXIT METRICS $60.2 INVESTMENT OVERVIEW Food delivery and logistics platform Built position over Gross Gain2 connecting customers wit
Slide 91: Distributed $8.6B in CY24
SVF1 SVF2 LATAM PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT Distributed $8.6B in CY24 As of December 31, 2024 CUMULATIVE DISTRIBUTIONS SINCE INCEPTION1 $66.6B $58.0B CY24 DISTRIBUTIONS $53.4B +$8.6B $44.2B $15.2B $10.6B $5.7B $0.2B 2017 2018 2019 2020 2021 2022 2023 2024 Top Investment Exits by Gr
Slide 92: The AI Revolution is Here
SVF1 SVF2 LATAM PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT AI Edge Microprocessors The AI AI Revolution AI Data Centers EXPANDING OUR Computer & New Energy PORTFOLIO OF AI LEADERS Vision is Here [diandianxiaomi] [GOAT] Generative Autonomous AI Systems Invested Across the AI Stack Application Laye
Slide 93: Appendix
Appendix w= OOftBank 2 Investment Advisers
Slide 94: SVF1 Distributions to Limited Partners
SVF1 SVF1 Distributions to Limited Partners Since Inception to December 31, 2024 Total Distributions (A) (B) (C) (D) (E) = (B)-(C) Fund Drawn Return of Pref Coupon / 3 Outstanding 2 Commitment Capital 1 Capital Equity Gains 4 Capital Preferred Equity $40.0B $36.2B $28.8B $9.0B $7.4B Equity $58.6B $5
Slide 95: SVF1 Contribution to SBG, Net of 3rd Party Interests
SVF1 SVF1 2024 Inception to Dec 31 Fund Net Profit2 $10.8 Less: Change in 3rd Party SVF1 Contribution Interests in Fund (5.4) to SBG, Net of 3rd SBG LP Income: 5.4 Share of Fund Net Profit Party Interests1,3 SBG GP Income: Amounts in USD Billions 1.3 Management & Performance Fees3 Contribution to SB
Slide 96: SVF1 Contribution to SBG
SVF1 SBG Paid-In Capital1 SVF1 Contribution $27.7B to SBG SBG Total Value2 As of December 31, 2024 $23.4B $33.1B Net Asset Value3 Distributions4 $9.7B Footnotes: 1. SBG Paid-In Capital represents SBG Commitment drawn down through capital calls less Return of Recallable unutilized Contributions. 2. S
Slide 97: SVF2 Contribution to SBG
SVF2 SBG Paid-In Capital1 SVF2 Contribution $58.2B to SBG SBG Total Value2 As of December 31, 2024 $25.6B $34.6B Net Asset Value3 Distributions4 $9.0B Footnotes: 1. SBG Paid-In Capital represents SBG Commitment drawn down through capital calls less Return of Recallable unutilized Contributions. SBG
Slide 98: LatAm Funds Contribution to SBG
LATAM SBG Paid-In Capital1 LatAm Funds $7.2B Contribution SBG Total Value2 to SBG $5.8B $6.3B Net Asset Value3 As of December 31, 2024 Distributions4 $0.5B Footnotes: 1. SBG Paid-In Capital represents SBG Commitment drawn down through capital calls less Return of Recallable unutilized Contributions.
Slide 99: Portfolio Companies Continue to be Well-Capitalized
SVF1 SVF2 LATAM 6% <12 Months 7% 12-24 Months Portfolio Companies 21% >24 Months Portfolio 67% 94% Continue to be Companies FCF+ or Sufficient to Portfolio Cash Runways Achieve Companies with Well-Capitalized By Fair Value1 Profitability2 12+ Months Cash Runway As of December 31, 2024 Footnotes: 1.
Slide 100: Thank You
Thank You SoftBank Vision & LatAm Funds Investor Briefing Presentations Available at visionfund.com/presentations 28
Slide 101: Arm Holdings plc SoftBank Investor Briefing
Arm Holdings plc SoftBank Investor Briefing Jason Child Executive Vice President and Chief Finance Officer February 2025 1
Slide 102: Nomenclature difference between Arm and SoftBank Group
Nomenclature difference between Arm and SoftBank Group Fiscal year ending March 31, 2025 Fiscal year ending March 31, 2025 FY2024 FYE25 2
Slide 103: Q3 FYE25: From Revenues to Profits
Q3 FYE25: From Revenues to Profits 98% 45% Non-GAAP Non-GAAP Gross Margin Operating Margin $983m $19m $964m $522m License Revenue $403m $442m $417m Royalty Revenue $580m Revenue Non-GAAP Non-GAAP Non-GAAP Non-GAAP Non-GAAP COS Gross Profit Operating Operating Net Income Expense Income Notes: 1. Depr
Slide 104: Semiconductor industry recovered after inventory correction
Semiconductor industry recovered after inventory correction • After slow start to the year, semiconductor industry has recovered, growing 13% YoY in December • Industry demand driven by AI and consumer. Automotive and industrial electronics are weaker Arm Addressable Semiconductor Market $ (Bs) Reve
Slide 105: Driving revenue today: Share gains in the data center
Driving revenue today: Share gains in the data center Graviton4 Axion Cobalt 100 Powered By Powered By Powered By Arm Neoverse V2 Arm Neoverse V2 Arm Neoverse CSS N2 5
Slide 106: Driving revenue today: Armv9 and CSS in latest smartphones
Driving revenue today: Armv9 and CSS in latest smartphones Oppo Find X8 Vivo Neo 10Pro Vivo X200 Pro 6
Slide 107: Driving revenue next year: NVIDIA DIGITS AI PC
Driving revenue next year: NVIDIA DIGITS AI PC • NVIDIA’s DIGITS AI PC targeting early model development • GB10 superchip combines 20 Armv9 CPU cores with Blackwell GPU • Also helping to develop AI developer ecosystem around Arm technology • AI is developed on Arm first 7
Slide 108: Driving future revenue: Software defined and autonomous vehicles
Driving future revenue: Software defined and autonomous vehicles • Software Defined Vehicles (SDV) need cloud and car parity. Only Arm can provide the same Neoverse technology running in both cloud and vehicles • Autonomous vehicles need high performance driving core count, and the new safety-critic
Slide 109: Near-Term Guidance
Near-Term Guidance Q4 FYE 25 FYE 25 Revenue ($m) $1,175m - $1,275m $3.94b - $4.04b Non-GAAP Operating Expense ($m)1 ~$590m ~$2.07b Non-GAAP fully diluted earnings per share ($)1 $0.48 - $0.56 $1.56 - $1.64 (1) For more information and definitions of the non-GAAP measures see the “Key Financial and
Slide 110: To be replace d
To be replace d 10