Softbank Group Corp. · TSE:9984
Softbank — Q2 FY2023 Earnings Presentation
31 slides from Softbank's earnings presentation, November 2023
Slide 1: Investor Briefing: SoftBank Vision & LatAm Funds
QUARTER ENDED SEPTEMBER 30, 2023 Investor Briefing SoftBank Vision & LatAm Funds NAVNEET GOVIL CFO, SB Investment Advisers & SB Global Advisers
Slide 2: Important Information (1 of 2)
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 par
Slide 3: Important Information (2 of 2)
3 Important Information (2 of 2) Vision Fund I 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,
Slide 4: Topics
4 Topics 01- Progress & Highlights 02- Performance & Impact on SoftBank Group (SBG) 03- In Focus: Driving Future Success
Slide 5: Progress & Highlights
5 Progress & Highlights
Slide 6: Arm & the AI Revolution
SVF1 6 PROGRESS & HIGHLIGHTS September 2016 $8.2B Arm & the AI SBG Investment Date1 SVF1 Acquisition Cost2 Revolution 25% IN G SVF1 Ownership E ST “ Stake1 V IN V AL UE CREATIO We have long admired Arm as a world-renowned and highly respected technology company Vision Fund 1 that is by some distance
Slide 7: AI Runs on Arm
SVF1 PROGRESS & HIGHLIGHTS 7 AI Runs on Arm As of September 30, 2023 KEY SEGMENTS & 2022 MARKET SHARE 1 NG Mobile IoT Automotive Cloud TI ES Higher smartphone Continued expansion Providing the brains Performance-optimized V V compute tailwind for into consumer and for demanding CPUs driving growth I
Slide 8: Fifth Largest US Technology IPO of All Time
SVF1 PROGRESS & HIGHLIGHTS 8 Fifth Largest US Technology IPO of All Time1 As of September 30, 2023 LISTING HIGHLIGHTS 4 $65B $52B ING ES T $32B V V IN SVF1 AL Monetization 2 UE C $8.6B Gross Gain REAT Acquisition IPO Day 1 Close Cost Valuation Market Cap 2.0x Gross MOIC3 IO MO N E N TI STRATEGIC IPO
Slide 9: 50 Listings Since Inception, with a Significant Late-Stage Pipeline
SVF1 SVF2 LATAM PROGRESS & HIGHLIGHTS 9 50 Listings Since Inception, with a Significant Late-Stage Pipeline As of September 30, 2023 PUBLIC LISTINGS SINCE INCEPTION1 LATE-STAGE PORTFOLIO2 $29B+ Late-Stage Portfolio Company Holdings SVF1 Total Fair Value SELECT PORTFOLIO COMPANIES SVF1 BEIKE SVF2 SVF
Slide 10: SVF1 Liquidity Profile Strengthened by Arm Transaction
10 Total Fair Value Private1 Exited & Public2 (Realized & Unrealized) SVF1 PROGRESS & HIGHLIGHTS 24% SVF1 Liquidity 37% Profile Strengthened by Arm Transaction 63% 76% As of September 30, 2023 June 2023 September 2023 Footnotes: 1. Private Fair Value represents the fair value of Unrealized Investmen
Slide 11: Performance Snapshot
SVF1 SVF2 LATAM 11 SoftBank SoftBank SoftBank Vision Fund 1 Vision Fund 2 LatAm Funds Combined Total Commitments1 $98.6B $60.0B $7.6B $166.2B PROGRESS & HIGHLIGHTS Performance Acquisition Cost2 $87.8B $51.8B $7.4B $147.0B Snapshot Cumulative Gross $16.8B $(21.4B) $(1.4B) $(6.0B) Investment Gains/(Lo
Slide 12: Quarterly Performance
SVF1 SVF2 LATAM 12 QUARTERLY FAIR VALUE PERFORMANCE 1 +$0.3B +$2.5B -$2.1B -$0.1B PROGRESS & HIGHLIGHTS COMBINED SVF1 SVF2 LATAM Quarterly Performance PERFORMANCE DRIVERS As of September 30, 2023 Elevated rate environment continues to drive market volatility SVF1 gain primarily driven by Arm transac
Slide 13: Distributions to Limited Partners
SVF1 PROGRESS & HIGHLIGHTS 13 Distributions to Limited Partners Since Inception to September 30, 2023 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 $19.7B $7.9B $
Slide 14: Deleveraging and Managing Risk
SVF1 SVF2 LATAM 14 LOAN PRINCIPAL BY FUND1 TOTAL $9.9B PROGRESS & HIGHLIGHTS SVF1 Deleveraging and $4.1B Managing Risk TOTAL As of September 30, 2023 $3.6B SVF2 SVF2 $5.8B $3.6B June 30, 2023 September 30, 2023 Footnotes: 1. Represents the total outstanding loan principal balance of SoftBank Vision
Slide 15: Performance & Impact on SoftBank Group (SBG)
15 Performance & Impact on SoftBank Group (SBG)
Slide 16: SVF1 Contribution to SBG, Net of 3rd Party Interests
16 SVF1 2023 Inception to Sept 30 SVF1 Fund Net Profit2 $5.1 PERFORMANCE & IMPACT ON SBG Less: Change in 3rd Party Contribution to Interests in Fund (2.7) SBG, Net of 3rd SBG LP Income: 2.4 Share of Fund Net Profit Party Interests1,3 SBG GP Income: Amounts in USD Billions 1.1 Management & Performanc
Slide 17: SVF1 Contribution to SBG
17 SBG Paid-In Capital1 $27.7B SVF1 PERFORMANCE & IMPACT ON SBG Contribution to SBG SBG Total Value2 As of September 30, 2023 $20.4B $30.1B Net Asset Value3 Distributions4 $9.7B Footnotes: 1. SBG Paid-In Capital represents SBG Commitment drawn down through capital calls less Return of Recallable unu
Slide 18: SVF2 Contribution to SBG
18 SBG Paid-In Capital1 $53.4B SVF2 PERFORMANCE & IMPACT ON SBG Contribution to SBG SBG Total Value2 As of September 30, 2023 $23.4B $32.4B Net Asset Value3 Distributions4 $9.0B Footnotes: 1. SBG Paid-In Capital represents SBG Commitment drawn down through capital calls less Return of Recallable unu
Slide 19: LatAm Funds Contribution to SBG
19 SBG Paid-In Capital1 $7.0B LATAM PERFORMANCE & IMPACT ON SBG Contribution to SBG SBG Total Value2 As of September 30, 2023 $5.6B $5.7B Net Asset Value3 Distributions4 $0.1B Footnotes: 1. SBG Paid-In Capital represents SBG Commitment drawn down through capital calls less Return of Recallable unuti
Slide 20: In Focus: Driving Future Success
20 In Focus: Driving Future Success
Slide 21: Our Platform
SVF1 SVF2 LATAM DRIVING FUTURE SUCCESS 21 Our Platform As of September 30, 2023 SVF1 SVF2 LATAM Total # of Total # of Total # of Total Number of Investments1 Investments1 94 Investments1 276 Investments1 105 475 Total Fair Value2 $104.6B Total Fair Value2 $30.5B Total Fair Value2 $5.9B Total Fair Va
Slide 22: Unlocking Portfolio Value Across Our Platform
SVF1 SVF2 LATAM DRIVING FUTURE SUCCESS 22 Unlocking Portfolio Value Across Our Platform As of September 30, 2023 PORTFOLIO HIGHLIGHTS 50 $29B+ 1.8x $43.9B Public Listings Value of Late-Stage Gross MOIC, Value of Top 25 Since Inception1 Portfolio2 Realized Investments3 Investments4 Footnotes: 1. List
Slide 23: Disciplined Monetization Strategy
SVF1 SVF2 LATAM DRIVING FUTURE SUCCESS 23 Disciplined Monetization Strategy As of September 30, 2023 LARGEST FULL EXITS BY GROSS PROCEEDS 1 BEIKE $16.9B $9.2B $5.8B $3.9B2 $2.7B $2.5B $2.4B $2.3B $1.0B 1.8x 3 Gross MOIC Footnotes: 1. Represents top full Monetizations by Gross Realized Proceeds acros
Slide 24: Our Largest Investments
SVF1 SVF2 LATAM DRIVING FUTURE SUCCESS 24 Our Largest Investments Largest Private & Public Investments by Fair Value | As of September 30, 2023 KEY METRICS $43.9B 57% $15.8B Fair Value – Largest Investments1 % of Total Portfolio Fair Value2 Cumulative Gross Gain Since Inception3 TOP 15 PRIVATE PORTF
Slide 25: Driving Future Success: Key Investment Themes
SVF1 SVF2 LATAM DRIVING FUTURE SUCCESS 25 Driving Future Success KEY INVESTMENT THEMES AI Strong Strength of Sustainable Leadership Product-Market Execution Financial Fit Performance Consumer Edtech Enterprise Fintech Frontier Tech Health Tech Logistics Proptech Transportation The information herein
Slide 26: AI Leadership
SVF1 SVF2 LATAM AI LEADERSHIP DRIVING FUTURE SUCCESS 26 AI Leadership As of September 30, 2023 IM PA CT OF A I A DOPTION Deploys AI algorithms to power the delivery Uses generative AI techniques to build Projected Global GDP Uplift1 of personalized content to ~2B monthly active products and services
Slide 27: Strong Product-Market Fit
SVF1 SVF2 LATAM STRONG PRODUCT- MARKET FIT DRIVING FUTURE SUCCESS 27 Strong Product-Market Fit As of September 30, 2023 Digital Payments Raw Material Market in Japan Market in India Tech-enabled platform facilitating raw Smartphone-powered digital payments material procurement and credit for SMEs To
Slide 28: Strength of Execution
SVF1 SVF2 LATAM STRENGTH OF EXECUTION DRIVING FUTURE SUCCESS 28 Strength of Execution As of September 30, 2023 Expanding into new verticals through acquisitions and forming SELECT GROWTH STRATEGIES partnerships to enhance growth in existing business lines Innovation of new & existing products to exp
Slide 29: Sustainable Financial Performance
SVF1 SVF2 LATAM SUSTAINABLE FINANCIAL DRIVING FUTURE SUCCESS PERFORMANCE 29 Sustainable Financial Performance Top 10 Public Investments by Fair Value | As of September 30, 2023 NTM CONSENSUS CURRENT PEAK INVESTMENT FAIR VALUE ($B)3 REVENUE GROWTH4 MARKET CAP ($B)5 MARKET CAP ($B)6 2023 METRIC IMPROV
Slide 30: Looking Ahead
SVF1 SVF2 LATAM DRIVING FUTURE SUCCESS 30 Looking Ahead As of September 30, 2023 SELECT INVESTMENT THEMES DRIVING FUTURE SUCCESS AI Leadership Strong Product-Market Fit Strength of Execution Sustainable Financial Performance PORTFOLIO HIGHLIGHTS $29B+ $43.9B 475 Value of Late-Stage Portfolio1 Value
Slide 31: Thank You
31 Thank You SoftBank Vision & LatAm Funds Investor Briefing Presentations Available at visionfund.com/presentations