Softbank Group Corp. · TSE:9984
Softbank — Q2 FY2021 Earnings Presentation
114 slides from Softbank's earnings presentation, Nov 10, 2021
Slide 1: Earnings Results for the Six-month Period Ended September 30, 2021
Ver.1. Earnings Results for the Six-month Period Ended September 30, 2021 Investor Briefing November 10, 2021 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 FY2020 FY2021 Average during quarter Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1 USD 107.74 105.88 104.45 106.24 110.00 110.47 1 CNY 15.16 15.27 15.71 16.31 17.01 17.09 EOQ Jun 30 Sep 30 Dec 31 Mar 31 Jun 30 Sep 30 Dec 31 Mar 31 1 USD 110.71 111.92 1 CNY 16.84 17.30 Abbrevi
Slide 4: Index
Index • Accounting • Finance • SoftBank Vision Funds Update
Slide 5: Accounting
Accounting
Slide 6: Consolidated Results
Consolidated Results FY20 FY21 (¥ B) Q1-Q2 Q1-Q2 Change Change % Net sales 2,630.5 2,983.5 353.0 13.4% Income before 1,441.5 1,047.0 -394.5 -27.4% income tax Net income (attributable to owners of the 1,883.2 363.6 -1,519.6 -80.7% parent) (Reference) Gain on investments 2,033.3 -395.2 -2,428.5 ― Inve
Slide 7: Change in Reportable Segments
Change in Reportable Segments • From FY21Q1, Latin America Funds, which were previously included within “Other,” are newly presented as independent reportable segments. • In FY21Q2, “SoftBank Vision Funds Segment” was renamed from “SVF1 and Other SBIA-Managed Funds Segment.” FY20 Investment SVF1 and
Slide 8: Segment Income – Investment Business of Holding Companies
Segment Income – Investment Business of Holding Companies (¥ B) P/L item FY20 FY21 Items Q1-Q2 Q1-Q2 Gain on investments at Investment 579.6 279.7 Business of Holding Companies Gain relating to sales of T-Mobile shares 421.8 3.1 See page 6 for details of the sales of T-Mobile shares. Realized gain (
Slide 9: Partial Sale of T-Mobile Shares in September 2021
Partial Sale of T-Mobile Shares in September 2021 Number of shares held Procured Execution Deutsche Transaction amount T-Mobile shares timing Telekom shares ($ B) (millions) (millions) Borrowing made using 106.3 million T-Mobile a 4.4 Jul 2020 shares pledged as collateral (margin loan) Number of sha
Slide 10: T-Mobile Shares – Partial Exercise of Call Options by Deutsche Telekom
T-Mobile Shares – Partial Exercise of Call Options by Deutsche Telekom and Cumulative Loss since Partial Sale on June 26, 2020 • In September 2021, Deutsche FY20 FY21 Telekom partially exercised its call Jun 26 Q4-end Q1-end execution in Sep options. $144.83 （Breakdown of the exercised call options）
Slide 11: T-Mobile Shares – The Company's Holding and Fair Values
T-Mobile Shares – The Company’s Holding (including Unexercised Call Options Held by Deutsche Telekom) and Fair Values T-Mobile shares held by the FY20 FY21 Company as of FY21Q2-end: Jun 26 Q4-end Q1-end Q2-end 60.92 million shares ((i)+(ii) below) $144.83 (i) unexercised portion of call T-Mobile sha
Slide 12: T-Mobile Shares – Fair Value of Contingent Consideration
T-Mobile Shares – Fair Value of Contingent Consideration • Contingent consideration: $144.83 The Company’s right to $134.85 acquire 48.75 million $125.29 $127.76 T-Mobile shares for no T-Mobile share price $114.36 consideration if certain conditions are met $104.15 （$ B） • Conditions: $82.99 6.0 45-
Slide 13: Investment in WeWork
Investment in WeWork • In August 2021, SBG transferred SBWW, a wholly owned subsidiary Before transferring SBWW Present that holds WeWork common stock and preferred stock, to SVF2 in accordance with the policy for handling the investment portfolio. SBG SBG • On October 21, 2021, WeWork listed on NYS
Slide 14: Investment in Listed Stocks and Other Instruments: Impact on B/S and P/L
Investment in Listed Stocks and Other Instruments: Main Impact on B/S and P/L (Gain (Loss) on Investments) (¥ B) Consolidated B/S Consolidated P/L Consolidated B/S Consolidated P/L Cumulative gain (loss) Investor Investment type (Minuses show Amount recorded Account liabilities) Account since incept
Slide 15: Derivative Gain (Loss) on Alibaba Prepaid Forward Contracts
Derivative Gain (Loss) on Alibaba Prepaid Forward Contracts (Quarterly Trend) Alibaba share price Amendment of （Impact on P/L） contracts $226.73 $226.78 FY21 (¥ B) Q1-Q2 Amendment of $148.05 Income before income tax 625.1 contracts ($5.7B) Signing （¥ B） Net income 414.8 Day 1 gain on the amendment 6
Slide 16: Agreement for Sale of All Shares in Arm: Overview
Entry into Agreement for Sale of All Shares in Arm: Overview • In September 2020, the Company agreed to sell all of Arm shares to NVIDIA. • The Company expects to hold approx. 6.7- 8.1% of NVIDIA shares. Further upside can be enjoyed as the largest shareholder when the share price goes higher. ($ B)
Slide 17: Agreement for Sale of All Shares in Arm: Accounting
Entry into Agreement for Sale of All Shares in Arm: Accounting • Arm will continue to be classified under Sep 13, 2020 continuing operations (until the closing of the (execution of Purchase Agreement) Closing transaction is deemed highly probable, such as after obtaining regulatory approvals). A sub
Slide 18: Consolidated P/L Summary (IFRSs)
Consolidated P/L Summary (IFRSs) (¥ B) FY20 FY21 P/L item Q1-Q2 Q1-Q2 Change Gain on investments at Investment Business of Holding Companies: +¥279.9B (See page 4 for details.) Continuing operations • Gain related to a partial sales of T-Mobile shares in Sep 2021: +¥3.1B Net sales +2,630.5 +2,983.5
Slide 19: Consolidated B/S Summary – Assets
Consolidated B/S Summary (IFRSs) – 1 (¥ B) B/S As of As of 1 Current assets related to investments from SB Northstar Main items Change item Mar 2021 Sep 2021 A: Decrease mainly due to sales of listed stocks B: Decrease due to sales of investments and repayment of collateralized debt 10,820.2 8,979.6
Slide 20: Consolidated B/S (Main Investments)
Investment Securities on Consolidated B/S (Main Investments) (¥ B) As of As of Change Outline Mar 2021 Sep 2021 Investment securities 3,706.8 3,898.4 +191.6 FVTPL 3,187.6 3,413.0 +225.4 • New and follow-on investments and increase in Latin America Funds 441.0 889.1 +448.1 fair values of investments
Slide 21: Consolidated B/S Summary – Liabilities
Consolidated B/S Summary (IFRSs) – 2 (¥ B) B/S As of As of Main items Change item Mar 2021 Sep 2021 1 SB Northstar: borrowings (current) -¥1,580.3B yoy 12,891.0 11,201.4 -1,689.6 1 Repayment of a margin loan of $6.0B using Alibaba shares and short-term Interest-bearing debt 7,735.2 7,123.0 -612.2 bo
Slide 22: Consolidated B/S Summary – Equity
Consolidated B/S Summary (IFRSs) – 3 (¥ B) B/S As of As of Items Change item Mar 2021 Sep 2021 11,955.6 12,339.5 +383.9 Common stock 238.8 238.8 ― 1 • Net income attributable to owners of the parent: +¥363.6B Capital surplus 2,618.5 2,595.6 -22.9 • Decreased following the retirement of treasury stoc
Slide 23: Consolidated C/F Summary (IFRSs)
Consolidated C/F Summary (IFRSs) (¥ B) C/F from operating activities: +¥1,546.3B yoy FY20 FY21 (Major reasons) C/F item Change Primary details for FY21Q1-Q2 Q1-Q2 Q1-Q2 • Sale of investments, etc. by SB Northstar: +¥1,768.4B (positive impact on cash Subtotal of cash flows from inflows) C/F from 2,67
Slide 24: Segment Income – SoftBank Vision Funds
Segment Income – SoftBank Vision Funds (¥ B) FY20 FY21 P/L Q1-Q2 Q1-Q2 FY21 Items Gain (loss) on investments at SVF1, SVF2, and others 1,411.6 -743.2 SVF1: +¥757.2B (net) Entire sale of shares in 1 portfolio company and a partial sale of shares in 9 portfolio Realized gain on investments 141.4 862.5
Slide 25: Co-investment Program to SVF2: Related Party Transaction
Co-investment Program to SVF2: Related Party Transaction Masayoshi SBG Son* 1 Equity interests: 17.25% (B) (A) Distribution: $173M Equity acquisition amount: $1,638M 100% (Return of Capital) (1) Initial acquisition costs: $1,448M (committed capital: $2.6B) (2) Adjustments: $190M Equity interests: 82
Slide 26: Appendix
Appendix
Slide 27: Breakdown of Goodwill / Intangible Assets
Breakdown of Goodwill / Intangible Assets (¥ B) Change B/S As of As of Main items Changes in Outline Item Mar 2021 Sep 2021 Amorti- exchange Others zation rate 4,684.4 4,706.2 * Arm 2,621.6 2,650.2 ― +28.6 ― Goodwill SBKK 907.5 907.5 ― ― ― Increased due to the revision of the provisional LINE 627.9
Slide 28: Price Sensitivity of Derivatives at SB Northstar
Price Sensitivity of Derivatives at SB Northstar (FY21Q2-end) The below table shows the impact on income before income tax of changes in the market prices of the underlying assets from September 30, 2021 of long call options, total return swap contracts, and forward contracts related to listed stock
Slide 29: Finance
Finance SBG stand-alone financial numbers are calculated by excluding numbers of self-financing entities from the consolidated numbers, unless otherwise stated. Major self-financing entities are SBKK, Arm, SVF1, SVF2, Latin America Funds, PayPay, Fortress, SB Energy, etc.
Slide 30: Summary of FY2021 Q1-Q2
Summary of FY2021Q1-Q2*1 Positive investment cycle while keeping financial policy Secured net income of ¥363.6B despite loss on investments due to fall in Results share prices of portfolio companies / NAV - While ¥395.2B investment loss was recorded, net income*2 held up at ¥363.6B. - NAV: ¥20.9T (¥
Slide 31: Results of Investment Businesses, Financial Condition, Financial Strategy, ESG
- Results of Investment Businesses - Financial Condition - Financial Strategy - ESG Initiatives Finance 3
Slide 32: Investment Activities of the Group
Investment Activities of the Group Multiple investment entities are active in their focused fields, preparing for the full-scale AI era. SVF1 SBG AI & Unicorns Existing investments 81 companies in total etc. SVF2 SB Northstar Mainly listed stocks AI & Unicorns Latin America Funds KE Holdings AI & un
Slide 33: Gain (Loss) on Investments & Net Income
Gain (Loss) on Investments & Net Income Recorded consolidated net income of ¥363.6B despite investment losses Gain (loss) on investments Net income (attributable to owners of the parent) ¥2,033.3B ■ Investment Business of Holding ¥1,883.2B Companies ■ SVF1&2 ■ Latin America Funds Gain relating ■ Oth
Slide 34: Gain (Loss) on Investments: Trends and Breakdown
Gain (Loss) on Investments: Trends and Breakdown Recorded investment loss of ¥395.2B mainly due to the decline in share prices of SVF’s listed portfolio companies 四半期推移 Quarterly trends Breakdown of FY21Q1-Q2 ¥3,729.6B ■ Gain (loss) on investments at SVF1&2 ■ Gain on investments other than SVF1&2 Ga
Slide 35: Equity Value of Holdings
Equity Value of Holdings Equity value of holdings decreased to ¥25.7T yet remaining at high level. (¥ T) Excluding asset-backed finance 31.5 32.1 Composition (as of September 30, 2021) 30.4 28％ Alibaba 3％ T-Mobile 28.1 9％ SBKK 2％ Deutsche Telekom 26.9 20％ SVF1 11％ Arm 25.７ 16％ SVF2 3% SB Northstar 1
Slide 36: NAV & NAV per Share
NAV & NAV per Share NAV and NAV per share both decreased, but recently improved. NAV (Net Asset Value) NAV per share*1 and share price (¥ T) (¥) Share price 27.0 NAV per share 15,755 22.1 15,000 20.9 12,914 12,191 10,000 7,775 6,480 6,161 5,000 0 *2 Jun 21 Sep 21 Nov. 8, 21 *3 Jun 21 Sep 21 Nov. 8,
Slide 37: Equity Value of Holdings: Diversification of Portfolio
Equity Value of Holdings: Diversification of Portfolio Further diversifying portfolio compared to the end of March last year, Excluding asset- as SVF1&2’s value increased backed finance March 31, 2020 September 30, 2021 Proportion of listed Proportion of listed shares shares SB Northstar (net of ass
Slide 38: SVF1&2: Cumulative Performance
SVF1&2: Cumulative Performance (SBG Consolidated Basis, as of Sep. 30, 2021) Cumulative investment return of $137.0B at SVF1 and $37.9B at SVF2 SVF1 SVF2 ($ B) ($ B) 150 137.0 50 Exited*1 2.0x 37.9 33.9 Exited*1 2.3x 100 88.2 Currently held 1.0x Currently held 1.9x and listed and listed 25 50 Curren
Slide 39: SVF1&2 Portfolio Companies Fair Value
SVF1&2 etc. Portfolio Companies Fair Value (As of Sep. 30, 2021, unrealized value only) Invest in a wide range of regions and sectors by Country / Region by Sector Edtech Others 1% 2% Health Tech 4% Enterprise 6% Consumer Asia, Europe, US US Proptech 26％ Asia, Europe, 8％ Latin America, Latin America
Slide 40: SVF1&2: Average Investment Cost Scaled Down
SVF1&2: Average Investment Cost Scaled Down SVF2’s average investment cost per company is $0.2B SVF1 SVF2 Average investment cost Average investment cost per company per company $0.9B $0.2B Cumulative investment cost $87B Cumulative investment cost $29B Cumulative number of investments 92 Cumulative
Slide 41: Activities of SVF1&2: Investments
Activities of SVF1&2 (FY21Q1-Q2): Investments New and follow-on investments mainly at SVF2 totaling $29.7B Sale/ Investment New listing Monetization Fund Investments (alphabetical order) Sector SVF1 Investment cost (follow-on investments): $2.5B AutoStore Logistics InMobi Consumer Jellysmack Consume
Slide 42: Activities of SVF1&2: New Listings
Activities of SVF1&2 (FY21Q1-Q2): New Listings Large-scale listings with rich pipeline Sale/ Investment New listing Monetization Companies to be listed Fund Companies listed (Q1-Q2) (Q3 onwards)*1 SVF1 4 companies with 8 companies in total a total fair value of $8.1B as of Sep. 30, 2021 (of which 3
Slide 43: Activities of SVF1&2: Sale/Monetization
Activities of SVF1&2 (FY21Q1-Q2): Sale/Monetization A total of $15.7B of sales & monetization*1 Sale/ Investment New listing Monetization Fund Sale/Monetization*1 SVF1 partial sale of 9 investments incl. above $13.4B in total*1 (partial) KE Holdings SVF2 (Beike) plus entire sale of 1 investment $2.3
Slide 44: Cycle of Investment and Recovery
Cycle of Investment and Recovery (FY21Q1-Q2) ¥1.5T invested capital was recovered and funded for new investments. Contribution to SVF1 Investments Source of investments ¥33.6B ($0.3B) Distribution from SVF1からの分配 *1 SVF1 &2 *2 1,641億円($1.5B) ¥979.5B ($8.7B) ¥1,454.5B ($12.9B) Return from SB Northstar
Slide 45: SVF1&2: Capital Commitment
SVF1&2: Capital Commitment (as of Sep. 30, 2021) ($ B) 2.6 *1 SVF1 33.1 (29.6) SVF2 39.4 65.5 98.6 42.0 (56.7) (86.3) (33.9) SBG Third-party limited partners Management, etc.*2 * Numbers in brackets represent amounts drawn. *1 The presented SBG’s committed capital to SVF1 includes approximately $8.2
Slide 46: Introduction of Co-investment Program to SVF2
Introduction of Co-investment Program to SVF2 Co-investment by management in SVF2 together with SBG, sharing both the profits and risks associated with investments, will lead to enhanced focus on the fund and contribute to SBG’s earnings growth. Masayoshi Son & SBG other Management, etc.*1 Equity Pr
Slide 47: Equity Share Swap Agreement with Deutsche Telekom
Equity Share Swap Agreement with Deutsche Telekom regarding T-Mobile Shares Agreed with long-term strategic partnership & equity share swap. Received 225M DT shares in exchange for T-Mobile shares Diversification Japan: SBKK 41％ of exposure in Europe: Deutsche Telekom 4.5％ telecom business U.S.: T-M
Slide 48: SB Northstar: Cumulative Investment Gain (Loss)
SB Northstar: Cumulative Investment Gain (Loss)*1 ¥96.7B ¥273.1B -¥534.5B -¥164.7B ¥145.9B＊2 -¥18.7B＊2 Positive impact Impact on on net income net income due to losses attributable Stocks Stocks Stocks + Stocks + credit credit Derivatives Derivatives Total investment Total investment borne by to SBG
Slide 49: SB Northstar: Assets Under Management
SB Northstar: Assets Under Management (as of Sep. 30, 2021) Significant downsizing of investments Stocks, etc. and derivatives (fair value) Notional principal of options (¥ B) ($ B) 44.3 Long call option 2,391.1 2,371.5 of listed stocks 1,741.0 13.4 11.2 Stocks & other 4.9 instruments*1 2,281.7 2,19
Slide 50: Results of Investment Businesses, Financial Condition, Financial Strategy, ESG
- Results of Investment Businesses - Financial Condition - Financial Strategy - ESG Initiatives Finance 22
Slide 51: Main Financial Activities in FY2021 Q2
Main Financial Activities in FY2021 Q2 Diversified financing to ensure financial flexibility Issuance: refinancing & enhancing cash reserves Foreign currency-denominated senior notes (Jul) ¥814.0B ($7.3B) Corporate Retail: ¥450.0B ($4.0B) Domestic subordinated bonds (Sep) Wholesale: ¥50.0B ($0.4B) b
Slide 52: LTV Trend
LTV Trend Excluding asset-backed finance LTV trend*1 25% *2 18.7% 17.5% 17.5% 15.9% 14.3% 11.6% 12.2% Continue to 8.8% maintain sufficient financial buffer Dec 19 Mar 20 Jun 20 Sep 20 Dec 20 Mar 21 Jun 21 Sep 21 *1 As of the end of each quarter *2 See “LTV Calculation SBG Stand-alone Net Debt” and “
Slide 53: Cash Position
Cash Position Maintain ample cash position, more than sufficient for the bond redemptions for the next 2 years Cash position Bond redemption schedule*2 ¥2.8T *1 (¥ B) Bond redemptions for the next 2 years (¥1.6T) 2,762.0 ＞ 854.9 781.5 1,039.3 905.8 Sep 21 Oct 21 - Sep 22 Oct 22 - Sep 23 Oct 23 - Sep
Slide 54: Management of Cash Position
Management of Cash Position Maintain cash position more than sufficient for the bond redemptions for the next 2 years. Distributions from SVF1&2 contribute to cashflows (interest coverage: 4.6x). Maintain funds covering bond redemptions for the next 2 years Interest coverage ¥2.8T Dividends paid Dis
Slide 55: Bond Redemption Schedule
Bond Redemption Schedule Refinanced domestic subordinated bonds ahead of schedule Domestic senior bonds Domestic subordinated bonds (¥ B) 1,128.4 Domestic hybrid bonds Foreign currency-denominated senior notes 1,021.2 193.4 Foreign currency-denominated hybrid notes 455.6 Redeemed 844.4 818.4 344.2 7
Slide 56: SBG Stand-alone Interest-bearing Debt
SBG Stand-alone Interest-bearing Debt*1 Interest-bearing debt excl. non-recourse Main variance factors from June 30, 2021 portion remains flat. SBNS’s debt decreased. • Change in financial liabilities relating to prepaid forward contracts +¥856.7B • Issuance of foreign currency-denominated senior no
Slide 57: SBG Stand-alone Cash Position
SBG Stand-alone Cash Position Maintain ample cash position while investment in SVF progresses (¥ B) 4,601.6 Cash position of SB Northstar 3,589.6 3,437.5 3,357.9 2,175.0 Main variance factors from June 30, 2021 3,103.3 991.6 595.9 Increase Decrease 1,389.3 ・Distribution from SVF1&2 ・SVF2 Capital Cal
Slide 58: SBG Stand-alone Net Interest-bearing Debt
SBG Stand-alone Net Interest-bearing Debt Continue to invest through financing using share holdings. Net interest-bearing debt decreased. Excluding SB Northstar 10,919.2 (¥ B) 10,513.7 8,558.8 Adjustments relating to finance 7,641.9 Asset-backed finance -¥6,022.8B 5,397.8 6,110.4 Hybrid finance -¥87
Slide 59: Results of Investment Businesses, Financial Condition, Financial Strategy, ESG
- Results of Investment Businesses - Financial Condition - Financial Strategy - ESG Initiatives Finance 31
Slide 60: Financial Strategy for FY2021
Financial Strategy for FY2021 Establish optimal financial strategy as an investment company Financial management to Firmly keeping enable reproduction financial policy at investment business on an expanded scale Finance 32
Slide 61: Firmly Keeping Financial Policy (1/2)
Firmly Keeping Financial Policy (1/2) 1. Manage LTV below 25% in normal times (upper threshold of 35% even in times of emergency) 2. Maintain funds covering bond redemptions for at least the next 2 years 3. Secure recurring distribution and dividend income from SVF1&2 and other subsidiaries Finance
Slide 62: Firmly Keeping Financial Policy (2/2)
Firmly Keeping Financial Policy (2/2): Our Policy on Supporting Portfolio Companies Portfolio company finances to be No rescue self-financing package Finance 34
Slide 63: Financial Management to Enable Reproduction at Investment Business
Financial Management to Enable Reproduction at Investment Business on Expanded Scale Procure funds to Establish a cycle of capture attractive investment and investment recovery opportunities • Establish a cycle of “investment” → • Utilize leverage with LTV in mind “recovery and CF generation” → “rei
Slide 64: Share Repurchase
Share Repurchase Total Total repurchase amount: ¥1T (maximum) amount & period Repurchase period: From Nov 9, 2021 to Nov 8, 2022 1. Firm commitment to the financial policies Flexible share repurchase Share 2. Investment opportunities considering these factors repurchase 3. Level of NAV discount poli
Slide 65: Results of Investment Businesses, Financial Condition, Financial Strategy, ESG
- Results of Investment Businesses - Financial Condition - Financial Strategy - ESG Initiatives Finance 37
Slide 66: ESG Initiatives: Integrating E&S Factors into Investment Process
ESG Initiatives in 1st Half of FY21: Integrating E&S Factors into Investment Process Revision of the “Portfolio Company Governance and Investment Guidelines Policy” Clearly state in the Group policy that environmental and social risks and opportunities shall be assessed in the investment process Pre
Slide 67: Investments in Environmental and Social Areas
Investments in Environmental and Social Areas Actively invest in start-up companies tackling ESG issues such as climate change, D&I, disparities and discrimination SVF2 SB Opportunity Fund Providing solar power and energy storage systems through leasing Providing a student transportation etc. with l
Slide 68: ESG Initiatives 1st Half of FY21: Others
ESG Initiatives 1st Half of FY21: Others Establishment of ESG-related policies to promote sustainability initiatives throughout the Group • Established the “Environmental Policy,” revised the “Human Rights Policy,” and established the “Supplier Code of Conduct” • Established and revised the Group po
Slide 69: ESG Plans for 2nd Half of FY21
ESG Plans for 2nd Half of FY21 Transition from foundation building to activity promotion – Promote tangible measures in each area by utilizing systems and policies that have been developed to date. 1st half of FY21 2nd half of FY21 • Revisied the “Portfolio Company • Establish an operating process f
Slide 70: Appendix
Appendix Finance 42
Slide 71: LTV Calculation: SBG Stand-alone Equity Value of Holdings
LTV Calculation: SBG Stand-alone Equity Value of Holdings (L) Adjusted ¥4.81T SBG stand-alone net debt =18.7% (V) Adjusted SBG stand-alone equity value of holdings ¥25.70T (¥ T) Adjusted SBG stand- Interest of SBG in alone equity value of Major SVF1&2&Latin Other, investments in + + shares = holding
Slide 72: LTV Calculation: SBG Stand-alone Net Debt
LTV Calculation: SBG Stand-alone Net Debt (L) Adjusted ¥4.81T SBG stand-alone net debt*1 (V) Adjusted SBG stand-alone =18.7% ¥25.70T equity value of holdings (¥ T) Adjusted SBG stand- Consolidated Net debt at self- = - - Other alone net debt net debt financing entities adjustments 4.81 16.07 5.15 6.
Slide 73: Direction of Financial Management (Illustrative)
Direction of Financial Management (Illustrative) Continue to procure funds to enable reproduction at investments on an expanded scale, while maintaining financial discipline and managing net debt increase to be more moderate than asset growth Value increases in the mid-term; Enables balancing financ
Slide 74: SBG Credit Rating Trend
SBG Credit Rating Trend Aim to improve credit rating under the investment holding company rating criteria Acquisition of Acquisition of Acquisition Acquisition Listing A+ 14 Japan Telecom Vodafone KK of Sprint of Arm of SBKK A 13 JCR (A－) A- 12 Outlook Positive BBB+11 BBB 10 On November 2, 2021, JCR
Slide 75: SVF1 Snapshot
SVF1 Snapshot (as of Sep. 30, 2021) ($ B) *1 Investment Cost to SVF1 is the sum of all external cash flows, including investment-related financing, directed towards the purchase of investments, plus net premiums paid for investment-related hedges. *2 Gross Return to SVF1 is the sum of all external c
Slide 76: SVF1 Listed Portfolio Companies
SVF1 Listed Portfolio Companies (as of Sep. 30, 2021) ($ M) ※3 ※3 *1 SBG Consolidated basis: includes the impact from hedges on the public securities and the effect of consolidating inter-company transactions. For a certain investments that were originally to be transferred from SBG to SVF1 but canc
Slide 77: SVF2 Snapshot
SVF2 Snapshot (as of Sep. 30, 2021) ($ B) *1 Investment Cost to SVF2 is the sum of all external cash flows, including investment-related financing, directed towards the purchase of investments, plus net premiums paid for investment-related hedges. *2 Gross Return to SVF2 is the sum of all external c
Slide 78: SVF2 Listed Portfolio Companies
SVF2 Listed Portfolio Companies (as of Sep. 30, 2021) ($ M) *1 SBG Consolidated basis: Cumulative investment performance is presented on net basis. *2 Investment Cost is the sum of all external cash flows, including investment-related financing, directed towards the purchase of investments, plus net
Slide 79: Investment in Listed Stocks and Other Instruments
Investment in Listed Stocks and Other Instruments (as of Sep. 30, 2021) ($ M) Fair value AbCellera Biologics 197 Arqit Quantum 10 Doma Holdings 20 Lyell Immunopharma 52 Pacific Biosciences of California 208 Stocks Sana Biotechnology 50 SomaLogic 27 Sema4 Holdings 68 SPACs*1 311 Others 2,568 NVIDIA*2
Slide 80: Agreement for Sale of Shares in Arm to NVIDIA
Entry into Agreement for Sale of Shares in Arm to NVIDIA Remain committed to the long-term success of NVIDIA as a major shareholder (approximately 6.7- 8.1% ownership expected) Received by the Company as a deposit*1 Cash $2.0B Cash $10.0B To be received by the Company*2 Transaction upon closing valu
Slide 81: Net Interest-bearing Debt
Consolidated SBG: Interest-bearing Debt, Cash Position, and Net Interest-bearing Debt *1 Consolidated Interest-bearing Debt （\ B） Sep 20 Dec 20 Mar 21 Jun 21 Sep 21 SBG standalone 9,319.8 11,218.9 13,023.3 14,033.4 13,967.4 Incl. SB Northstar 364.3 1,528.8 1,866.5 1,424.5 286.3 SVF1 and SVF2 156.3 2
Slide 82: Cycle of Investment and Recovery (Illustrative)
Cycle of Investment and Recovery (Illustrative) To establish an investment cycle over the medium to long term Fund A Expand investment ¥ scale CF from investment Consider stakeholder recovery returns as appropriate Fund B ¥ Fund C ¥ Additional fund procurement as needed Finance 54
Slide 83: SoftBank Vision Funds Update
QUARTER ENDED SEPTEMBER 30, 2021 SoftBank Vision Funds Update NAVNEET GOVIL Managing Partner & Chief Financial Officer SoftBank Investment Advisers SoftBank Investment Advisers
Slide 84: Important Information (1 of 2)
Important Information (of) 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 parallel f
Slide 85: Important Information (2 of 2)
Important Information ( of 2) Vision Fund | 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, an
Slide 86: Topics
Topics O1- Progress & Highlights 02- Performance & Impact on SoftBank Group (SBG) 03- In Focus: Powering the Innovation Supercycle = SoftBank Investment Advisers
Slide 87: Progress & Highlights
Progress & Highlights Investment Advisers
Slide 88: Steady Growth in Assets Under Management
PROGRESS & HIGHLIGHTS Steady Growth in Assets Under Management Assets Under Management Since Inception SEP 2021 AUM* Regulatory MisvFi $138.18 Developments Misvr2 $37.98 SEP 2021 COvID-19 Pandemic TOTAL AUM? Launch of SVF1 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Sep-21 Footnot
Slide 89: Key Developments
PROGRESS & HIGHLIGHTS Key Developments Three-Month Period Ended September 30, 2021 New Private Capital Fund Investments’ Up-Rounds® Invested’ Distributions* 6/7 11 $14.0B $9.8B SVF1 SVF2 SVF1 SVF2 SVF1 SVF2 SVF1 SVF2 - 67 4 7 $0.3B $13.7B $8.7B $1.1B Footnotes: ‘New Investments represents the number
Slide 90: SVF2 Continues to Invest in the AI Revolution
PROGRESS & HIGHLIGHTS SVF2 Continues to Invest in the Al Revolution As of September 30, 2021 Inception to September 30, 2021 Total Fair Select New Investments! $ 3 7 . 9 B Value? O seo1carning BN acuerosors {"pAndela. Rf stoexoatnon chime: Cumulative . Investment cenbradex Ms ContractPodAi @®corapo
Slide 91: SVF2 Portfolio Overview
PROGRESS & HIGHLIGHTS 9 SVF2 Portfolio Overview Since Inception to September 30, 2021 PORTFOLIO COST BY SECTOR (%) 1 58 1 Peal 23% 15% By 13% 4% & 6% Consumer Fintech Logistics Edtech Frontier Tech Total Investment Bs 13% & 14% se 8% i 4% Investments! Exited? Proptech Enterprise Health Tech Transpor
Slide 92: Listings Since Inception
PROGRESS & HIGHLIGHTS 10 ae . . coupans, Listings Since Inception - OX As of September 30, 2021 am Om GROSS 4.0x 1.8x 2.0x MOICt 10x “> voonDAsH Om view Opipi 10.9x 17.8x 1.4x 0.3x 0.6x 2 5 @ cuarvant at slack ae, Q2A Opendoor SDL Ewin Ee) 2 Total Listings 8.8x 3.0x 0.2x 2.0x 3.1x 0.8x 0.3x 0.9x Sin
Slide 93: Portfolio Evolution by Fair Value
11 @ Exited’ © Public? $138.1B © Private® $92.6B 28% 54% () PROGRESS & HIGHLIGHTS. Represents J Combined . Represents Exited & Public Combined | Fair Value* Ortrollo Exited & Public Fair Valuet Evolution By Fair Value Sep 2020 Sep 2021 Footnotes: 1. Exited represents the Gross Realized Proceeds fr f
Slide 94: Subsequent Listings
Ps | PROGRESS & HIGHLIGHTS Subsequent Listings As of November 05, 2021 ‘epresents the respective market cap co: Bloomberg, TICKER IPO DATE MARKET CAP! TICKER IPO DATE MARKET CAPL 12 cr ROIVANT SCIENCES NASDAQ:ROIV October 1, 2021 Aurora NASDAQ:AUR November 4, 2021 wework (SVF1 & SVF2) NYSE:WE Octobe
Slide 95: Our Portfolio Companies Continue to Attract Capital
PROGRESS & HIGHLIGHTS 13 Our Portfolio Companies Continue to Attract Capital Three-Month Period Ended September 30, 2021 mt Specs WHOOP” — = Fanatics gopuff DELHIVErY Mp eer vr meesho | WHOOI! Rounds! oe Series H Series | Series C Series F Series F Capital Raised ° wv . . @ unacademy of()usiness eo,
Slide 96: Steadily Growing Distributions
PROGRESS & HIGHLIGHTS Steadily Growing Distributions Inception to September 30, 2021 $35.6B Cumulative Distributions” $13.4B $9.9B a e e@ e@ 2017 Sep Soi Sep 2019 Sep 2020 Sep 2021 14 je. includes the Return of Recall tized Contibutons and the Return of = SoftBank Investment Advisers
Slide 97: Distributions to Limited Partners
PROGRESS & HIGHLIGHTS Distributions to Limited Partners Since Inception to September 30, 2021 15 Total Distributions (A) (8) (c) (0) (E) = (8)(C) Fund Drawn Return of Pref Coupon’ / Outstanding Commitment Capital* Capital’ Equity Gains* Capital’ Preferred Equity $40.0B $35.7B $16.8B $5.4B $18.9B Equ
Slide 98: Performance Snapshot
PROGRESS & HIGHLIGHTS Performance Snapshot As of September 30, 2021 16 SoftBank SoftBank Vision Fund1 Vision Fund 2 Combined Total Commitment $98.6B __ 551.08 $149.6B Acquisition Cost? $86.7B $33.2B $119.9B Investment Gains! $51.48 $4.7B $56.1B Total Fair Value? $138.1B $37.9B $176.0B Distributions?
Slide 99: Performance & Impact on SoftBank Group (SBG)
Performance & Impact on SoftBank Group (SBG) Investment Advisers
Slide 100: SVF1 Performance & Impact on SBG
SVF1 18 SVF1 PERFORMANCE & IMPACT ON SBG Contribution to Interests in Fund SBG, Net of 3rd SBG LP Income: Party Interests’? Amounts in USD Billions SBG GP Income: Net of 34 Party Interests? Footnotes: 1. Contrib Fund thro 2. Fund Net retur pont ofwh aM eros reflects the Income orl {BG's Limited Part
Slide 101: Contribution to SBG, Realized and Unrealized Values (SVF1)
PERFORMANCE & IMPACT ON SBG Contribution to SBG, Realized and Unrealized Values As of September 30, 2021 Footnotes: 1 Net Asset Value includes net changes in fir value of financial asset at fair value through profit returns experienced by investors, and should not be construed as indicative of actua
Slide 102: Contribution to SBG, Realized and Unrealized Values (SVF2)
PERFORMANCE & IMPACT ON SBG Contribution to SBG, Realized and Unrealized Values As of September 30, 2021 Footnotes: SBG Paid-In Capital* $34.8B 20 SBG Total Value® $39.3B Net Asset Value" (Unrealized Value) $35.2B Distributions? (Realized Valve) $3.2B A d Performance Fees* $0 9 B 1 Net Asset Value i
Slide 103: In Focus: Powering the Innovation Supercycle
In Focus: Powering the Innovation Supercycle == OoftBank Investment Advisers
Slide 104: Growth Equity is Today's Preferred Asset Class
POWERING THE INNOVATION SUPERCYCLE 22 Growth Equity is Today’s Preferred Asset Class Significant Growth in the Number of Unicorns Growth Funds Outpace Other Asset Classes Global Unicorn Count? % Growth in Dry Powder, 2020 vs. 2010? == SoftBank Investment Adviser RealEstate Buyout Distressed Infrastr
Slide 105: Accelerating Innovation
POWERING THE INNOVATION SUPERCYCLE 23 Accelerating Innovation We believe our growth equity platform is well-positioned to meet the demand for capital and expertise wm 2) # re o & & Consumer Edtech Enterprise Health Tech Transportation Frontier Tech Logistics Proptech New Businesses & Innovation Grow
Slide 106: Powering the Innovation Supercycle
POWERING THE INNOVATION SUPERCYCLE Powering the Innovation Supercycle GROWTH EQUITY INVESTMENT Early Growth Late STRATEGY Stage Stage Stage Development Early Growth Accelerated Growth Investment in New Products, Market Share PORTFOLIO Technology or Team COMPANY STATUS @ a Unit Economics Path to Prof
Slide 107: Innovative & Disruptive Opportunities
POWERING THE INNOVATION SUPERCYCLE 25 Innovative & Disruptive Opportunities trax Cybersecurity @ Arkose Labs WB cybereason Proptech Frontier Tech & eightfold.ai jobandtalent e Bskedulo Health Tech cal Consumer meesho teneva Berch Transportation Autotech CARS|) Talent Solutions = SoftBank Investment
Slide 108: Envisioning the Future of Retail and Supply Chains
POWERING THE INNOVATION SUPERCYCLE Envisioning the Future of Retail and Supply Chains As of September 30, 2021 Computer Vision & loT Applications in Retail + Retail Heat Maps Checkout-free Stores Shopper Measurement & = @) Inventory Management = Footfall Analysis ce) Personalized Ads Joo Loss Preven
Slide 109: Protecting Companies and Consumers
POWERING THE INNOVATION SUPERCYCLE Protecting Companies and Consumers As of September 30, 2021 Global Impact of Cybercrime $10.5T Est. Global Cybercrime Damage Costs, 2025! Ea —— 2025E OneTrust Manages company privacy, security and governance? #1 “Inc 500” Fastest Growing Company in America 10,000+
Slide 110: 20 8
20 8 18 7 16 6 14 12 5 10 4 8 3 6 2 4 2 1 0 0
Slide 111: Delivering Next Generation eCommerce
POWERING THE INNOVATION SUPERCYCLE Delivering Next Generation eCommerce As of September 30, 2021 meesho Global eCommerce Sales Worldwide ($T)* One of India’s leading social commerce platform? = $4.9 $4.3 $3.4 $750B+ $3.0 Retail Market Size $2.4 ~5% Online Penetration 15mm Monthly Transacting Users 2
Slide 112: Fueling Transformation in Autotech
POWERING THE INNOVATION SUPERCYCLE 30 Fueling Transformation in Autotech As of September 30, 2021 CARS|?) Southeast Asia’s largest India’s largest used automotive marketplace? car buying platform? Used Car Sales Outpace New Car Sales, with Autotech Platforms Offering a Differentiated, Digital Car-Bu
Slide 113: Our Investment Platform is Powering the Innovation Supercycle
Frontier Tech Internet of Things Construction Tech Housing Platforms Quantum Computing Smart Storage Workspace Solutions visunundcom/ pata fara more comple tof Schbrk Vien Fund 2 vena POWERING THE INNOVATION SUPERCYCLE Our Investment Platform is Powering the Innovation Supercycle Transportation Auto
Slide 114: Thank You
32 Thank You SoftBank Vision Funds Investor Briefing Presentations Available at visionfund.com/presentations = SoftBank Investment Advisers