Softbank Group Corp. · TSE:9984
Softbank — FY2024 Earnings Presentation
52 slides from Softbank's earnings presentation, May 13, 2025
Slide 1: Earnings Results for the Fiscal Year Ended March 31, 2025
Ver.1.1 Earnings Results for the Fiscal Year Ended March 31, 2025 Investor Briefing May 13, 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 138.11 145.44 147.00 147.87 156.53 150.26 151.32 152.95 EOQ Jun 30 Sep 30 Dec 31 Mar 31 Jun 30 Sep 30 Dec 31 Mar 31 1 USD 151.41 149.52 Abbreviations Abbreviations used in Finance section o
Slide 4: 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), Arm, SVF1, SVF2, LatAm Funds, etc.
Slide 5: Stargate
Stargate Full-scale launch toward ASI realization Finance 2
Slide 6: Historical NAV
Historical NAV Expanded NAV through portfolio reshuffling at technology inflection points Internet Broadband Mobile AI Generative AI Started investing Launch SVF2 Launch LatAm Mar 31, 2025 SVF1 Acquisition ¥25.7T Arm Acquisition SVF1/SVF2/ LatAm Funds SoftBank Corp. T-Mobile/ Acquisition Deutsche Te
Slide 7: Shifts in Leading Companies in the Equity Market
Shifts in Leading Companies in the Equity Market Market leadership shifts with technological evolution. Embedding technology into social infrastructure is key to capturing growth opportunities. Nasdaq100 (Cloud) 4,311 (Smartphone) (SNS) (Internet) S&P500 1,121 (PC) 1995 1995 2000 2005 2010 2010 2015
Slide 8: Advantage of OpenAI: Growth accelerating
Advantage of OpenAI Weekly active users (global) (M users) 500 500 Growth accelerating 250 0 Nov Aug Oct Dec Feb Mar 2023 2024 2024 2024 2025 2025 (Source) OpenAI: OpenAI’s announcements Finance 5
Slide 9: Stargate: Toward further NAV expansion
Toward further NAV expansion AI Chip AI Data center AI model Stargate AI Robot Energy Drug discovery/ Application AI Service Autonomous driving Fintech Healthcare Cristal intelligence Finance 6 6 (Note) Cristal intelligence is a provisional name and not the official product name.
Slide 10: FY2024 Summary
FY2024 Summary Executing investments while leveraging a robust financial foundation Investments Financial Indicators FY2023 FY2024 Total investment amount*1 end end $16.1B ¥25.7T (incl. $8.2B installment payments for Arm NAV ¥27.8T (-¥2.1T) shares transaction consideration) ($2.2B) LTV 8.4% 18.0% +
Slide 11: FY2024 Financial Summary
FY2024 Financial Summary Accelerated AI investments by effectively utilizing leverage Executed new financing and upsized refinancing - Increased margin loans +¥1.0T (Arm +$5.0B, SoftBank Corp. +¥0.3T) ‒ Bond issuances ¥1.9T (Domestic bonds ¥1.6T, foreign bonds ¥0.3T equiv.*1) Financials - Large scal
Slide 12: Market Environment
Market Environment Toward end-FY24, stocks declined due to DeepSeek shock and tariff concerns. Post-enactment of reciprocal tariff, volatility increased. Recently, stocks have rebounded and the yen has weakened. Stock Indices*1 FX Rate (USD/JPY) 150 Apr 2nd 170 (JPY) Apr 2nd 140 Enactment of Enactme
Slide 13: Impact of Market Environment and Large-scale Investments Since April
Impact of Market Environment and Large-scale Investments since April LTV has risen due to large-scale investments, but will continue to be managed appropriately NAV LTV (¥ T) 35.3 27.8 29.0 29.3 27.4 25.7 35% 25% 25% 20.1% 18.0% Incl. investment in 8.4% 7.8% 12.5% 12.9% OpenAI ($8.5B) 0% ※ ※ Mar Jun
Slide 14: Factors of NAV and LTV Change (YoY)
Factors of NAV and LTV Change (YoY) NAV declined mainly due to fluctuations in Arm share price LTV increased due to investments NAV LTV (¥ T) Share price Investments Others 18.0% Forex *1 Others -1.0 -0.3 -0.3% -0.7 -2.5: Arm +0.2: SoftBank Corp. +1.4: TMUS/DT Share Forex *1 27.8 8.4% price 25.7 +9.
Slide 15: Historical NAV (YoY)
Historical NAV (YoY) Maintaining a high level. (¥ T) Recovery underway due to rise in Arm’s share price 27.4 25.7 FY2000 FY2005 FY2010 FY2015 FY2020 FY2024 Pro forma* Share prices and FX as of May 12, (Note) As of the end of each fiscal year 2025 + $8.5B follow-on OpenAI • NAV (Net Asset Value) = Ad
Slide 16: Historical LTV
Historical LTV Shift from defensive to offensive financial management. Accelerating growth investments within the bounds of financial policy 35% (times of emergency) 25% (normal times) 21.6% *2 20.4% 20.1% 18.7% 18.2% 15.9% 18.0%*1 Incl. investment 14.5% 15.0% in OpenAI ($8.5B) 12.2% 12.5% 12.9% 11.
Slide 17: Historical Equity Value of Holdings
Historical Equity Value of Holdings Equity value of holdings has recently increased due to the rise in Arm’s share price. Telecom equities performing steadily Net of asset-backed 38.3 34.3 finace 33.1 33.7 (¥ T) 30.3 31.4 21.0 15.0 16.5 15.4 12.9 $124.81 14.4 $106.79 Most recent Share price share pr
Slide 18: Historical Invested Amounts
Historical Invested Amounts FY2025 Q1 Accelerating the pace of investment in earnest Follow-on investment Syndication*4 progressing in OpenAI (as of May 9, 2025） First closing: $10B SVF2: $8.5B*3 SVF2: $8.16B (co-investors: $1.5B) (co-investors: $1.84B) ($B) FY2023 FY2024 $3.9B $7.9B 8.5 3.4 1.2 1.8
Slide 19: Large-scale Investment Bridge Loans Arrangement
Large-scale Investment Bridge Loans Arrangement Secured support from global leading banks (Total demand of over $27B) Breakdown of participating financial OpenAI Ampere institutions by region (amount) investment loan acquisition loan UK, EU Facility $8.5B $6.5B (10 banks) Japan amount (drawn) (undra
Slide 20: SBG Credit Spread Reactions
SBG Credit Spread Reactions Spreads, though widened in connection with large-scale investment announcements and market turmoil, are showing signs of stabilization Foreign currency denominated Domestic senior bond 5-year CDS senior bond spreads*1 spreads*2 (bp) 600 SBG 5Y CDS (JPY) EUR 1.6Y EUR 4.1Y
Slide 21: Issuance of Domestic Senior Retail Bonds
Issuance of Domestic Senior Retail Bonds Confirmed robust retail demand even in volatile market conditions. Simultaneously issued whole-sale bond for pricing*1 Retail Bond (#65) (Fukuoka SoftBank HAWKS Bond) Continuously offering Amount ¥600.0B attractive products to investors Pricing Apr 18, 2025 I
Slide 22: Historical Issuance and Redemption of SBG Retail Bonds
Historical Issuance and Redemption of SBG Retail Bonds For 20 years, the Hawks Bond has been continuously issued and redeemed, establishing a stable funding base resilient to external conditions Cumulative issuance amount* (¥ B) 600.0 900.0 9,399.5 Annual issuance amount 772.0 385.0 Cumulative issua
Slide 23: Retail Bonds and Bank Time Deposits
Retail Bonds and Bank Time Deposits SBG retail bonds now on par with major regional banks’ time deposits Outstanding balances of bank time deposits*1 and retail bonds*2 (¥ T) Japan Post Bank 68.4 MUFG 29.6 Mizuho FG 22.8 Sumitomo Mitsui Trust HD 20.1 SMFG 16.6 Resona HD 12.1 Fukuoka FG 4.7 SBI Shins
Slide 24: Cash Position and Future Bond Redemptions
Cash Position and Future Bond Redemptions Maintain ample cash position, over 2-year worth of bond redemptions Cash position Bond redemption schedule (¥ B) ¥3.4 T * Undrawn Arm margin loan ＞ borrowing capacity 747.6 Bond redemptions for the next 2 years (¥2.1T) Refinance 2,623.2 completed 572.4 1,631
Slide 25: Currency Breakdown of Cash Position
Currency Breakdown of Cash Position Manage cash position by capturing higher interest rates Cash position ¥2.6T*1 (+ undrawn borrowing capacity: $5.0B (¥0.7T equiv.)*2) SBG+SB Northstar EUR, etc. ¥0.1T USD expected yield 4.8% *4 JPY 3% USD ¥0.5T 18% ¥1.5T Deposit Bonds 4.3% 5.3% 3％ (Reference*5) 58%
Slide 26: Bond Redemption Schedule
Bond Redemption Schedule Bond issuances to be managed with cash position and market environment in mind Domestic senior bonds (¥ B) 1,631.9 Domestic subordinated bonds Domestic hybrid bonds Foreign currency-denominated senior bonds 380.8 Foreign currency-denominated hybrid bonds 1,170.0 1,186.1 1,09
Slide 27: FY2025 Funding Policy
FY2025 Funding Policy Steadily execute refinancing. Funding for investments will be raised with a focus on financial policy and credit ratings Investments Funding Closely monitor market conditions and Ampere acquisition Bonds actively pursue additional funding $6.5B opportunities OpenAI investment B
Slide 28: 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 the borrowing of commitment lines Main changes from Dec 31, 2024 Interest-bearing debt (¥ B) • Dec
Slide 29: SBG Stand-alone Cash Position
SBG Stand-alone Cash Position While cash position increased due to commitment lines and increase in margin loan using SBKK shares, cash position decreased due to new investments and installments for Arm shares transaction consideration (¥ B) SB Northstar*1 3,956.1 3,831.2 3,307.0 2,986.2 2,623.3 Mai
Slide 30: SBG Stand-alone Net Interest-bearing Debt
SBG Stand-alone Net Interest-bearing Debt Adjusted net debt increased due to the progress in investments (¥ B) 10,363.5 10,515.1 10,275.3 9,662.0 9,516.0 Finance-related adjustments 3,853.4 Asset-backed finance, etc.: ¥3,461.7B 6,144.4 5,332.1 Hybrid finance: ¥391.7B 7,534.1 7,810.2 Adjusted 5,662.6
Slide 31: Historical Credit Ratings
Historical Credit Ratings Acquisition of Acquisition Acquisition Acquisition Listing Listing Japan Telecom of Vodafone KK of Sprint of Arm of SBKK of Arm JCR A A+ 14 A 13 A- 12 (Negative) In April 2025, the rating was BBB+ 11 affirmed at “A”, while the outlook was revised from “Stable” to “Negative.
Slide 32: Share Repurchase
Share Repurchase Maximum ¥500.0B (Until Aug 7, 2025) Repurchased ¥286.2 B 57% Progress (Aug 2024 to Apr 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 Rep
Slide 33: FY2025 External Environment and Investment Policy
FY2025 External Environment and Investment Policy Continue investing in evolution PC Software Internet Broadband Smartphone Global trade AI Recession risk barriers Advances in AI デジタルシフトを牽引 Technology and Policy and 1 Structural Changes regulatory risks across Industries Risk of short- to < Irrevers
Slide 34: Emphasis on Investment Opportunities
Emphasis on Investment Opportunities AI is entering a phase where it is fundamentally transforming industrial structures. AI investment will define the path of future growth Internet Broadband Mobile AI ASI SVF1 Arm SVF1/SVF2/ LatAm Funds SoftBank Corp. T-Mobile/ Deutsche Telekom Alibaba Yahoo Japan
Slide 35: Pursuing Offense While Fortifying Defense: Financial Policy Unchanged
Pursuing Offense While Fortifying Defense: Financial Policy Unchanged Ensuring full readiness to promptly shift to a more defensive financial operation when necessary Maintain LTV below 25% at normal times (upper threshold of 35% even in times of emergency) Maintain at least 2-year worth of bond red
Slide 36: FY2025 Financial Strategy
FY2025 Financial Strategy In a highly uncertain environment, engage in financial activities with prudence and boldness to build a solid foundation for NAV growth. Fully leveraging SBG’s financial strengths - further cultivating the financial foundation developed over years of disciplined financial m
Slide 37: Appendix
Appendix
Slide 38: SBG Credit Spread
SBG Credit Spread Spread of foreign currency- denominated senior bonds 5-year CDS bps USD 1.1Y USD 3.1Y USD 4.2Y 450 bps 700 USD 6.2Y USD 6.1Y EUR 1.6Y SBG 5Y CDS (JPY) EUR 4.1Y EUR 3.7Y EUR 7.1Y EUR 7.2Y 400 600 350 500 300 400 250 200 300 150 200 100 100 50 0 0 Sep 23 Dec 23 Mar 24 Jun 24 Sep 24 D
Slide 39: Calculation of Equity Value of Holdings
Mar 31, 2025: Calculation of Equity Value of Holdings $1 = ¥149.52 ¥35.7T (unadjusted) Equity value of holdings Adjustment for (¥ T) Equity value of holdings ー ＝ asset-backed finance Prepaid Forward (adjusted) (unadjusted) Contracts, etc. 2.3 Payable 923M Share price ¥12.9T ＝ Margin loans 2.1 amount
Slide 40: LTV Calculation: SBG Stand-alone Equity Value of Holdings
LTV Calculation: SBG Stand-alone Equity Value of Holdings (L) Adjusted ¥5.66T SBG stand-alone net debt =18.0% (V) Adjusted SBG stand-alone equity value of holdings*1 ¥31.38T (¥ T) Adjusted SBG Major SBG’s interest in Other investments = + + stand-alone equity value of holdings assets SVF1&2 & LatAm
Slide 41: 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 12.90 Multiplying the number of Arm ADSs equivalent to SBG's holdings by the ADS price (¥14.73T) - Before adjustment 14.16 payable amount of the consideration for Arm shares acqui
Slide 42: 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 3.40 Number of T-Mobile shares held by SBG × share price (h) Deutsche Telekom 0.41 Before adjustment 1.14 Number of DT shares held by SBG × share price Adjustment for asset-b
Slide 43: LTV Calculation: SBG Stand-alone Net Debt
LTV Calculation: SBG Stand-alone Net Debt (L) Adjusted SBG stand-alone net debt*1 ¥5.66T (V) Adjusted SBG stand-alone ¥31.38T =18.0% equity value of holdings (¥ T) Adjusted SBG Consolidated Net debt at self- Other stand-alone net financing entities, debt = net debt - etc. - adjustments 5.66 14.41 4.
Slide 44: 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) 9.52 at self-financing entities For hybrid bonds and hybrid loans with maturity dates, deduct 50% from interest-bearing debt; Adj
Slide 45: 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 35.7 Main shares Alibaba, Deutsche Telekom SBKK, Arm 1 2.3 Asset-b
Slide 46: 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 Alibaba monetization (quarterly basis) ($B) 33 33 32 31 29 25 17 Completion of settlements* (planned) 7 0 Jun 2023 Sep 2023 Dec 20
Slide 47: Breakdown of Equity Value of Holdings
Breakdown of Equity Value of Holdings Net of asset- 5% backed finance 23% 18% 41% 47% 12% 15% 10% 10% 5% 10% SBKK 10% 17% 18% 12% T-Mobile / Deutsche Telekom 7% 11% 12% SVF1 (57 investments) 21% 22% 15% 15% SVF2 (283 investments) 5% 5% 3% 3% LatAm Funds (88 investments) 8% 8% 6% 7% Others Mar 2022 M
Slide 48: Geographical Portfolio Diversification
Geographical Portfolio Diversification Net of asset-backed finance 7% 8% China 14% 30% 12% 12% Japan 17% 7% 7% APAC (excl. China and Japan) 11% 10% 9% 54% 48% EMEA 31% 21% 24% 23% 16% 22% North America 5% 6% 4% 4% Others Mar 2022 Mar 2023 Mar 2024 Mar 2025 (Note) Classification of regions based on t
Slide 49: 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: ¥2.6T*1 Equity value of holdings: ¥31.4T*2 Interest-bearing debt*3: ¥8.6T EUR, etc. JPY EUR, etc. Net
Slide 50: Factors of NAV and LTV Change (QoQ)
Factors of NAV・LTV Change (QoQ) NAV declined mainly due to fluctuations in share prices. LTV increased due to investments NAV LTV (¥ T) Share price Investments Others Forex*1 18.0% Others -1.5 +1.1% -1.6 -0.6 Share Forex *1 -2.4: Arm 12.9% price +4.8% +0.2: SoftBank Corp. +0.8% +0.6: TMUS/DT +0.7% +
Slide 51: Increase/Decrease in Cash Position (YoY)
Increase/Decrease in Cash Position (YoY) While executing debt financing, cash position decreased mainly due to installments for Arm shares transaction consideration and new investments Financing and debt repayment 0.2 Share repurchase (¥ T) 2nd and 3rd installment payments for Arm shares 1.2 2.2 tra
Slide 52: Consolidated Interest-bearing Debt/Cash Position/Net Interest-bearing Debt
Consolidated Interest-bearing Debt/Cash Position/ Net Interest-bearing Debt Consolidated Interest-bearing Debt*1 (¥ B) Mar 2024 Jun 2024 Sep 2024 Dec 2024 Mar 2025 SBG stand-alone 14,297.5 14,328.8 13,249.7 12,951.9 12,139.2 Incl. SB Northstar - - - - - SVF1&2 and LatAm Funds 547.9 583.1 508.3 540.4