Softbank Group Corp. · TSE:9984
Softbank — H1 FY2018 Earnings Presentation
100 slides from Softbank's earnings presentation, Nov 5, 2018
Slide 1: Earnings Results for the 6-month Period ended September 30, 2018
Earnings Results for the 6-month Period ended September 30, 2018 November 5, 2018
Slide 2: Important Information
IMPORTANT INFORMATION This presentation (this “Presentation”) is furnished to you as an investor in SoftBank Group Corp. (“SoftBank”) and is not, and may not be relied on in any manner as, legal, tax, investment, accounting or other advice or as an offer to sell or a solicitation of an offer to buy
Slide 3: Disclaimer
Disclaimer This material was prepared based on information available and views held at the time it was made. Statements in this material that are not historical facts, including, without limitation, plans, forecasts and strategies are “forward-looking statements”. Forward-looking statements are by t
Slide 4: a oo
a oo
Slide 5: Telecom Business, Strategic Holding Company
Strategic Telecom Holding Business Company 3
Slide 6: Cluster of No.1 Strategy Accelerating Growth
Cluster of No.1 Strategy Accelerating Growth No.1 No.1 No.1 No.1 No.1 No.1 No.1 No.1 No.1 4
Slide 7: EBIT
EBIT (JPY bn) 788.3 Others 2000 ’02 ’04 ’06 ’08 ’10 ’12 ’14 ’16 ’18 FY18 H1 includes new standards after applications of No. 9 and No.15 of IFRS H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 (FY) FY2013-14: excluding impact of GungHo & Supercell Japanese-GAAP IFRSs 5
Slide 8: EBIT 1,420.7
EBIT 1,420.7 (JPY bn) 874.8 SVF segment Up 62% Others 2000 ’02 ’04 ’06 ’08 ’10 ’12 ’14 ’16 ’18 FY18 H1 includes new standards after applications of No. 9 and No.15 of IFRS H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 (FY) FY2013-14: excluding impact of GungHo & Supercell Japanese-GAAP IFRSs SVF: SoftBank Vision Fu
Slide 9: Consolidated Results
Consolidated — softBank Results
Slide 10: Consolidated Results
Consolidated Results (JPY bn) FY17 FY18 H1 H1 Change YoY Net sales 4,411.1 4,653.9 +242.8 +6% EBIT 874.8 1,420.7 +545.9 +62% Net income 102.6 840.1 +737.5 +719% New standards (FY18 H1): after applications of IFRS 9 and IFRS 15 Net income: net income to attributable to owners of the parent Previous s
Slide 11: Net Sales
Net Sales 4,653.9 (JPY bn) 4,411.1 1,793.3 1,824.0 Sprint Up 6% 453.6 Yahoo Japan 421.4 1,795.1 SoftBank segment 1,706.6 489.8 581.2 Others FY17 H1 FY18 H1 New standards (FY18 H1): after applications of IFRS 9 and IFRS 15 Previous standards (FY17 H1): before applications of standards above (Previous
Slide 12: EBIT 1,420.7
EBIT 1,420.7 (JPY bn) 874.8 632.4 SVF segment Up 62% 186.2 53.4 Gain on spectrum license exchange 193.3 Sprint 148.8 70.4 Others 91.2 77.7 Yahoo Japan SoftBank 440.8 446.9 segment (Previous standards) (New standards) New standards (FY18 H1): after applications of IFRS 9 and IFRS 15 Previous standard
Slide 13: Financial Status
Financial Status SoftBank segment Other Businesses <Equity holdings> etc. Net interest- Net interest- JPY bearing debt JPY 3.1t bearing debt 7.0t Adjusted JPY 1.2t 2.6x Equity value of JPY 32% EBITDA holdings 21.7t *** Net interest-bearing debt as of September 30, 2018. Excluding financial liabiliti
Slide 14: SoftBank segment
em OOftBank x SoftBank segment
Slide 15: Domestic Telco EBIT
Domestic Telco EBIT (JPY bn) 446.9 408 (New standards) Up 9% (New standards) (FY) ’17 * ’18 * Number after application of the new standards for FY17 SoftBank Segment is referential information with an adjustment for internal management purpose, and it is non-audited. H1 H1 The increase in profit rat
Slide 16: Domestic Telco Adjusted Free Cash Flow
Domestic Telco Adjusted Free Cash Flow (JPY bn) 366.0 * 330.7 Up 11% (*Excluding YJ shares acquisition JPY 221.0bn) ’17 ’18 Free Cash Flow = operating cash flow + investing cash flow H1 H1 (including the impact of proceeds from securitization of installment receivables and their repayment) Excluding
Slide 17: Steady expansion
Net Additions (smartphone) 950k 810k 590k Steady expansion 320k ’15 ’16 ’17 ’18 (FY) H1 H1 H1 H1 Net Additions = net additions of cumulative smartphone subscribers (including upgrades) 15
Slide 18: Ymobile subs reached 20%
Cumulative Subs (smartphone) EBIT Ymobile subs reached 20% (FY) ’14 ’15 ’16 ’17 ’18 Q2 Q2 Q2 Q2 Q2 16
Slide 19: Multi-brand Strategy
Multi-brand Strategy Large capacity data plans Low price + Requires more data for Light users stress-free use Address various needs 17
Slide 20: JPY 1,480~ per month
JPY 1,480~ per month *1 *2 (3GB) *1 Smartphone Plan S / JPY 1,980 Discount / Home Bundle Discount Hikari Set required, price for the first year, tax excluded. Fixed-line telecommunication fee applies. *2 When Extra Data Free Campaign applied, customers who signed up for Extra Data Option are eligibl
Slide 21: Low-cost Smartphone Market Share
Low-cost Smartphone Market Share No.1 Drive low-cost smartphone market (Source) Created based on MMD Labo “Low-cost smartphone market usage report Sep., 2018” 19
Slide 22: Ultra GIGA MONSTER Plus
Ultra GIGA MONSTER Plus Unlimited streaming & SNS plan JPY 3,480~ per month (50GB) *1 Smartphone Plan S / JPY 1,980 Discount / Home Bundle Discount Hikari Set required, price for the first year, tax excluded. Fixed-line telecommunication fee applies. *2 When Extra Data Free Campaign applied, custome
Slide 23: Cost per GB
Data Price per 1GB (JPY) 814 Cost per GB 300 1 / 10 100 80 2015 2016 2017 2018 White Plan GIGA MONSTER Ultra GIGA MONSTER (JPY 5,700 / 7GB) (JPY 6,000 / 20GB) (JPY 7,000 / 50GB)* (JPY 5,980 / 50GB) * * Including family discount (4 people) 21
Slide 24: Ultra GIGA MONSTER Plus Unlimited streaming & SNS plan
Ultra GIGA MONSTER Plus Unlimited streaming & SNS plan <Applicable services> Cost per GB JPY 0 22
Slide 25: Price Plan
Price Plan Smartphone plan L Ultra GIGA MONSTER Plus Smartphone plan M Mini MONSTER Smartphone plan S Simple price model 23
Slide 26: Handset Cost and Service Fee Separation Plan
Handset Cost and Service Fee Separation Plan Launched in To be launched September 2018 next FY Keep pursuing services to meet customer needs 24
Slide 27: Domestic Market of Smartphone Possession
Domestic Market of Smartphone Possession (among population) Non-smartphones 61% Continuously in growth market Smartphones (Source) Ministry of Internal Affairs and Communications (FY) 2014 2015 2016 2017 Year 2018 - White Paper on Information and Communications 25
Slide 28: Domestic Market of Smartphone Subs Ratio (enterprises)
Domestic Market of Smartphone Subs Ratio (among enterprises) Non-smartphones High potential 39% for growth Smartphones (FY) 2014 2015 2016 2017 (Source) Fuji Chimera 26
Slide 29: Beyond Carrier Strategy
Beyond Carrier Strategy Expand customer base Generate new businesses Differentiation / strengthening relationship with customers Aim for continuous growth with strategies 27
Slide 30: Collaboration with SoftBank Vision Fund
Generate New Business Collaboration with SoftBank Vision Fund Collaborations are subject to regulatory and contractual approvals, and there is no guarantee that any collaboration will be consummated on the terms expressed herein or at all, or that the joint venture will be successful. 28
Slide 31: Deploy cutting-edge business models to Japan
Deploy cutting-edge business models to Japan + Ping An HealthKonnect (Full Truck Alliance) © Coupang. All rights reserved. (Ping An Good Doctor) Utilize SoftBank’s platform> Mobile subs Contracts with Stores Business platform 16k *3 Sales approx. Approx. 43m 94% of major Approx. 6,000 Network, IT, *
Slide 32: WeWork Japan
WeWork Japan Memberships * 6,000 6,000 Seek to accelerate business in Japan 0 Mar. 2018 Jun. Sep. (Photo credits) WeWork There can be no assurances that historical trends will continue throughout the life of the Fund. *Figures are as of the last month of the quarter, on a beginning-of-month basis (S
Slide 33: Collaboration with Other Portfolio Companies
Generate New Business Collaboration with Other Portfolio Companies Collaborations are subject to regulatory and contractual approvals, and there is no guarantee that any collaboration will be consummated on the terms expressed herein or at all, or that the joint venture will be successful. 31
Slide 34: DiDi Mobility Japan
DiDi Mobility Japan For DiDi logo: DiDi Mobility Japan Corp. Launched service in Osaka (from September 27) >1,000 taxis (active) (Note) This page is updated information from the press release announced on September 10, 2018. Investments in DiDi are held by SB Delta Fund (Jersey) L.P. and other subsi
Slide 35: Expand membership stores nationwide
(JV between SoftBank Corp. and Yahoo Japan) Expand membership stores nationwide (Launched from October 5) Some of the memberships listed above are still in progress for deployment. Service may not be used for certain memberships 33
Slide 36: Strengthen Alliance with Yahoo Japan
Strengthen Alliance with Yahoo Japan Integrate JV for Capital Collaboration customer strategy alliance base business Yahoo! JAPAN Brand Guideline サービスロゴデータ ●1行ロゴ プロモーション利用の場合は原則このロゴを使用してください。 ショッピング ショッピング Acquisition of YJ shares 10x loyalty＜赤＞ PANTONE 185 ＜グレー＞ PANTONE Cool Gray 11 by SBKK points
Slide 37: Strategic Partnership with Toyota
Strategic Partnership with Toyota Invest- Invest- ment ment (50.25 ) (49.75 ) 35
Slide 38: Accelerate Growth Strategy
Expansion of New Business Domains For DiDi logo: *DiDi Mobility Japan Corp. For WeWork logo: *WeWork Japan GK FinTech Robotics Sharing economy Security JV Collabo- JV ration JV JV Collabo- ration JV Subsidiary Investment (smartphone-based securities trading market) Collabo- TBCASoft Investment Inves
Slide 39: Structural Reformation Project
Structural Reformation Project Internal AI / RPA Projects >2,000 For more efficient management Customer Employee support support Enterprise Maintenance sales SB stores Driving operation shift to AI / RPA as a company 37
Slide 40: Shift human resources to growth area
Half & Twice * Beyond Carrier Reduce 40% of Increase in profit of human resource telco business related to Generate new telco business revenue source Shift human resources to growth area “Half & Twice”: Internally used slogan, which SBKK aims to double the productivity / creativity of employees, whi
Slide 41: Growth fueled by telco and new business
Growth fueled by telco and new business New business development AI led by collaboration with SB group portfolio companies IoT Big data Telco business Efficient deployment Provide & operations of Smart Phone Efficient additional value network (incl. 5G) Subs Growth Operations 39
Slide 42: FY2018 Forecast
FY2018 Forecast 1 Increase in revenue / profit (aim to achieve increase in profit in FY19 and after) Generate stable FCF (over JPY 500bn) Excl. impact of YJ shares acquisition 2 ** Promote “Beyond Carrier” strategy & 3 enhance collaboration with SVF 4 Preparation for IPO * Comparison based on new ac
Slide 43: SoftBank Corp. IPO
SoftBank Corp. IPO SBG to secure a way to access ample funding through the listing 41
Slide 44: Sprint
Sprint »
Slide 45: Cost Reduction (CoS + SG&A)
Cost Reduction (CoS + SG&A) USGAAP (USD bn) 10.5 7.1 USD 3bn reduction 2013 ’14 ’15 ’16 ’17 ’18 (FY) CoS: Cost of service + selling, general, and administrative H1 H1 H1 H1 H1 H1 FY18 H1 is calculated by new standards after applications of IFRS 9 and IFRS 15 43
Slide 46: Adjusted EBITDA
Adjusted EBITDA USGAAP (USD bn) 6.5 * More than doubled 2.7 in 5 years 2013 ’14 ’15 ’16 ’17 ’18 (FY) H1 H1 H1 H1 H1 H1 FY18 H1 is calculated by new standards after applications of IFRS 9 and IFRS 15 * USD 417m of positive impact of the new revenue standards 44
Slide 47: Operating Income
Operating Income USGAAP (USD bn) 1.6 * Gain on spectrum license exchange, etc. 1.4 Positive for 5 consecutive years 2013 ’14 ’15 ’16 ’17 ’18 H1 H1 H1 H1 H1 H1 FY18 H1 is calculated by new standards after applications of IFRS 9 and IFRS 15 * USD 417m of positive impact of the new revenue standards 45
Slide 48: National Average Download Speed
National Average Download Speed 27Mbps 20Mbps Improved by 31.5% Sep. 2017 Sep. 2018 Analysis by Ookla® of Speedtest Intelligence® data comparing average download speeds from September 2017 to September 2018 for all mobile results. 46
Slide 49: FY2018 Forecast
FY2018 Forecast 1 Adjusted EBITDA: USD 12.4-12.7bn 2 Cash CAPEX: USD 5.0-5.5bn * *Excluding leased devices 47
Slide 50: First and best nationwide 5G
First and best nationwide 5G Job creation Enhanced rural connection Lower prices 48
Slide 51: Yahoo Japan
YAHOO! JAPAN
Slide 52: Advertising Revenue
Advertising Revenue (JPY bn) 79.3 74.3 37.8 38.0 Display ads Up 7 (up 13% in search ads) 41.3 Search ads 36.5 (FY) (FY) 2014 ’15 ’16 ’17 ’18 Q2 Q2 Q2 Q2 Q2 50
Slide 53: Yahoo! Premium Member IDs
Yahoo! Premium Member IDs 20.93m 17.93m Up 17 Yahoo! Premium 2014 ’15 ’16 ’17 ’18 (FY) Q2 Q2 Q2 Q2 Q2 51 Yahoo! Premium includes SoftBank members and Y!mobile members, etc. who are eligible for Yahoo! Premium privileges excluding overlaps in IDs.
Slide 54: Shopping Transaction Value
Shopping Transaction Value ショッピング (JPY bn) 173.5 ＜赤＞ PANTONE 185 DIC 156 M91%+Y76% R255・G0・B51 ＜グレー＞ PANTONE Cool Gray 11 DIC 541 BL80% #545454 Gray ●2行ロゴ リンク用ロゴなどスペースが狭い場合に使用できます。 Up 23 140.7 ショッピング ショッピング ●その他色指定 白抜き利用の場合（背景色は任意） ※紫ロゴは原則使用しないでください ＜紫＞ ショッピング PANTONE 259 DIC 227 C65%+M100%+K15% R12
Slide 55: Arm
arm
Slide 56: Arm-based Chips Shipped
based Chips Shipped 11.1bn 9.7bn Up 14% 1990 ’93 ’96 ’99 ’02 ’05 ’08 ’11 ’14 ’18 (H1 of each CY) 54
Slide 57: Arm is #1 for Market Share in Infrastructure
is #1 for Market Share in Infrastructure * 30% 27% No.1 Cellular base stations Top-of-rack Servers switches 0% WAN routers Gateways *Processors for infrastructure equipment 2011 ’12 ’13 ’14 ’15 ’16 ’17 ’18 **Jan.-Jun. (Source) Arm estimates 55
Slide 58: Family of high performance processors for cloud to edge
High performance, secure IP and architectures Diverse solutions and ecosystems Scalable from hyperscale to the edge Announced family of high performance processors for cloud to edge infrastructure foundation 56
Slide 59: World of 1t intelligent devices
IoT edge devices Communications infrastructure Cloud Cortex The cloud to edge infrastructure foundation for a world of 1t intelligent devices 57
Slide 60: FY2018 Forecast
FY2018 Forecast 1 Create new IoT opportunities 2 Gain more share in long-term growth markets 3 Accelerate investment in new technology 58
Slide 61: Case studies disclaimer
Case studies presented herein are for informational purposes only and are intended to illustrate sourcing experience of SoftBank Investment Advisers (“SBIA”) and the profile and types of investments previously pursued by SBIA. It should not be assumed that investments made in the future will be comp
Slide 62: Cluster of No.1 AI Strategy
Cluster of No.1 A I Strategy 60
Slide 63: 67 companies
67 companies Ping An HealthKonnect (Full Truck Alliance) © Coupang. All rights reserved. + (Ping An Good Doctor) Pipeline, etc As of Nov. 5, 2018 61 Certain "SoftBank Vision Fund" investments described herein have not yet been acquired by SVF and are subject to pending regulatory approvals. The inve
Slide 64: WeWork Total Memberships
Total Memberships * (k) 268k 260 Total membership CAGR from June 2016 to June 2018 113% 0 2016 2017 2018 (CY) Jun. Jun. Jun. The information herein is provided for illustrative purposes only and is based on company data. There can be no assurances that historical trends will continue throughout the
Slide 65: Enterprise Member Ratio
Enterprise Member Ratio * (%) ** 25% 3x 25 growth in percentage of enterprise memberships in 2 years 17% 9% 0 2016 ’17 ’18 *Enterprise member ratio: enterprise as a % of total WeWork members (CY) **Represents the percentage of total desks that were occupied by enterprise Jun. Jun. Jun. members as of
Slide 66: Countries, Cities, Locations
Countries Cities Locations 80 77 287 25 23 300 growth in countries 8x 10x growth in cities 12x growth in locations in 3.5 years in 3.5 years in 3.5 years 0 0 0 ’14 ’15 ’16 ’17 Jun. ’18 ’14 ’15 ’16 ’17 Jun. ’18 ’14 ’15 ’16 ’17 Jun. ’18 The information herein is provided for illustrative purposes only
Slide 67: Utilizing AI
Utilizing AI Utilize A I for Busine- sses new site selection Neighbor- hood amenities Sectors/ profession Business size AI analysis Input Output The information contained herein is provided for illustrative purposes only. The information presented herein was provided by WeWork. Nothing herein should
Slide 68: Coupang Revenue
Revenue 4.5 (USD bn) 4.2 >2x © Coupang. All rights reserved. growth in revenue in past 2 years Sep. ’16 Sep. ’17 Sep. ’18 (CY) (Annualized) (Annualized) (Annualized) Annualized: 12 times the revenue of September The information herein is provided for illustrative purposes only and is based on compan
Slide 69: Utilizing AI to Create Consumer Value
Utilizing A I to Create Consumer Value Spend Personalized © Coupang. All rights reserved. Search recommendations data data Optimization of Supply / merchant lending demand data Optimization of ad spend Sales Shipp- ing Merchant operations data data improvement AI analysis Input Output The informatio
Slide 70: Largest eCommerce platform in Indonesia
B2B, B2C, and C2C marketplace Digital goods Digital wallet Merchants / partners Financial products Users Largest eCommerce platform in Indonesia (Source) Tokopedia The information contained herein is provided for illustrative purposes only. The information presented herein was provided by Tokopedia.
Slide 71: GMV 77x growth in 4 years
GMV (Gross Merchandise Volume) 6.5 (USD bn) 77x growth in 4 years 0 Sep. ’14 Sep. ’15 Sep. ’16 Sep. ’17 Sep. ’18 (Annualized) (Annualized) (Annualized) (Annualized) (Annualized) (Source) Tokopedia The information herein is provided for illustrative purposes only and is based on company data. There c
Slide 72: AI Utilization
A I Utilization Personalized Payment Seller recommendations info inventory Customized financial products Purchase history Logistics optimization Credit Ratings history Marketing automation A I analysis Input Output (Source) Tokopedia The information contained herein is provided for illustrative purp
Slide 73: Total Payment Volume
Total Payment Volume * 28x 40 (USD bn) growth in total payment volume in 3 years Leader in payments in India 0 2016 H1 ’17 H1 ’18 H1 ’19 H1 (Annualized) (Annualized) (Annualized) (Annualized) *Total payment volume: Total volume of payments settled through PayTM (FY ended March) The information herei
Slide 74: Utilizing AI to Seek to Supercharge Payments
Utilizing A I to Seek to Supercharge Payments Personalization of app Merchant Transac- tions Stocking data recommendations Real-time fraud prevention User Underwriting of loans Product behaviour and insurance catalo- gue Customer care automation AI analysis Input Output The information contained her
Slide 75: Comprehensive liquid biopsy utilizing AI
Blood test Digital AI Early detection (Liquid biopsy) sequencing analysis & cancer (Big data) management Comprehensive liquid biopsy utilizing A I The information contained herein is provided for illustrative purposes only. The information presented herein was provided by Guardant Health. (Source) G
Slide 76: Conventional tissue biopsy vs liquid biopsy
Conventional Tissue biopsy Liquid biopsy Costly, slow, risky Affordable, quick, safe The information contained herein is provided for illustrative purposes only. The information presented herein was provided by Guardant Health. (Source) Guardant Health 74 Nothing herein should be construed as a reco
Slide 77: Adopted by all 27 NCCN centers
Select Adoption Rate (U.S.) Adopted by all 27 NCCN centers * 100% * (Source) Guardant Health Form S-1 as filed with Securities and Exchange Commission on Sep. 5th, 2018. *Adoption rate of Guardant 360. The metrics regarding select aspects of the company’s operations were selected by SBIA on a subjec
Slide 78: Investment Track Record
Investment Track Record (USD bn) 1.0 Valued 3.5X 0.3 ** Amount of SVF Value of SVF (As of November 2) *(Source) Guardant Health Form S-1 as filed with Securities and Exchange Commission investment ownership The information herein is provided for illustrative purposes only and is based on company dat
Slide 79: Real estate transaction platform
Fast and simple experience AI-driven home assessment One-stop services (mortgage, title, etc.) Sellers Buyers Real estate transaction platform The information contained herein is provided for illustrative purposes only. The information presented herein was provided by Opendoor. Nothing herein should
Slide 80: Resale GMV
Resale GMV (Gross Merchandise Volume) 2.1 (USD bn) Resale GMV CAGR from September 2015 to September 2018 +158% 0 Sep. ’15 Sep. ’16 Sep. ’17 Sep. ’18 (Annualized) (Annualized) (Annualized) (Annualized) (Source) Opendoor The information herein is provided for illustrative purposes only and is based on
Slide 81: AI-driven Home Assessment
A I -driven Home Assessment Property Real-time Automated home home visit data condition feature valuation Home feature Predictive demand data models Location Sales and Highly accurate characteristics transaction data pricing engine A I analysis Input Output The information contained herein is provid
Slide 82: Transaction Value
Transaction Value * 30 (USD bn) Transaction value CAGR from September 2015 to September 2018 131% Real estate technology platform 0 Sep. ’15 Sep. ’16 Sep. ’17 Sep. ’18 (CY) (Annualized) (Annualized) (Annualized) (Annualized) *Transaction value: transaction value settled through Compass platform The
Slide 83: Utilizing AI to Improve Efficiency in Real Estate Sales
Utilizing A I to Improve Efficiency in Real Estate Sales Search Recommend marketing data actions to help agents find Site the right buyers faster data Open house data Listing / valuation data AI analysis Input Output The information contained herein is provided for illustrative purposes only. The in
Slide 84: Optimize shade with IoT x AI
Optimize shade with IoT x A I These videos linked herein are provided for illustrative purposes only and are not meant to be advertisements for the sale of View or as a recommendation for an investment in securities of View. None of SBG, SBIA or the Vision Fund are responsible for the content of the
Slide 85: Before
Before Indoor environment Harmonize with nature without natural light through AI & IoT The information contained herein is provided for illustrative purposes only. The information presented herein was prepared by View. None of SBG, the Vision Fund, the general partner of the Vision Fund or SBIA make
Slide 86: Revenue 2.7x
Revenue 1.1 (USD bn) End-to-end design & architecture technology platform 2.7x Growth in revenue from 2017 to 2018 0 Jul. - Sep. 2017 Jul. - Sep. 2018 (CY) (Annualized) (Annualized) The information herein is provided for illustrative purposes only and is based on company data. There can be no assura
Slide 87: SoftBank Group Corp.'s ride-sharing portfolio
SoftBank Group Corp.’s ride-sharing portfolio The information presented in this section regarding SBG’s past investments is provided solely for informational purposes only and is intended to illustrate SBG’s sourcing experience and the profile and types of investments previously pursued by SoftBank,
Slide 88: Aggregated Annual GMV
SBG investments Aggregated Annual GMV (Gross Merchandise Volume) * $90bn growth in annual GMV 7x in 3 years $62bn $33bn $13bn *Gross merchandise volume: the aggregate of all the ride-sharing transactions through the each company platform. 2015 ’16 ’17 ’18 The information contained herein is provided
Slide 89: Food Service Market
Food Service Market * Online delivery Online delivery Offline 1% *Includes restaurants, take-outs, etc. (Source) Goldman Sachs Equity Research, Euromonitor 87
Slide 90: On-demand food delivery platform
SBG investments Restaurants Users On-demand food delivery platform The information contained herein is provided for illustrative purposes only. The information presented herein was provided by Uber and DoorDash. Nothing herein should be construed as a recommendation of any investment or security. (N
Slide 91: Largest on-demand food delivery platform in China
In Advance Discussions Restaurants Users Largest scale on-demand food delivery platform in China The information contained herein is provided for illustrative purposes only. The information presented herein was provided by ele.me. Nothing herein should be construed as a recommendation of any investm
Slide 92: Annual active customers
In Advance Discussions Annual active Monthly active Registered customers * riders ** merchants *** >167m >666k 3.5m (Source) Alibaba *Deduped between Ele.me and Baidu Waimai for 12 months trailing June 30, 2018 (excluding orders from Koubei). The information herein is provided for illustrative purpo
Slide 93: Utilizing Alibaba's ecosystem
In Advance Discussions Annual active Annual active Monthly active customers * users ** users *** 576m 870m 167m Customer reviews and coupons Utilizing Alibaba’s ecosystem The information herein is provided for illustrative purposes only and is based on company data.There can be no assurances that hi
Slide 94: On-demand Food Delivery Market (China)
On-demand Food Delivery Market (China) 14 (JPY t) Revenue CAGR from 2017-2020 5 +42% 2017 2020 The information herein is provided for illustrative purposes only and is based on company data.There can be no (Estimated) assurances that historical trends will continue throughout the life of the Vision
Slide 95: Logistics Spend as % of GDP
Logistics Spend as % of GDP 15% Last mile delivery 12% seek to achieve 11% efficient logistics 8% U.S. Japan Global China average * Ratio of “Logistic & Warehousing Cost” to “Nominal GDP” * GDP of 2016 in USD trillion (IMF): U.S. 18.7t, China 11.2t, Japan 4.9t The information herein is provided for
Slide 96: Conclusion
Conclusion 94
Slide 97: EBIT 1,420.7
EBIT 1,420.7 (JPY bn) 874.8 SVF segment Up 62% Others 2000 ’02 ’04 ’06 ’08 ’10 ’12 ’14 ’16 ’18 FY18 H1 includes new standards after applications of No. 9 and No.15 of IFRS H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 (FY) FY2013-14: excluding impact of GungHo & Supercell Japanese-GAAP IFRSs SVF: SoftBank Vision Fu
Slide 98: Conclusion
Conclusion 1 Positive investment performance of SVF 2 Aim to increase SBKK’s profit for FY19 and after SBG to secure a way to access ample funding 3 through SBKK IPO, etc. Ecosystem that enables continuous and 4 diversified fundraising 96
Slide 99: Maximizing Shareholder Value
Maximizing Shareholder Value 97
Slide 100: SoftBank
SoftBank