Softbank Group Corp. · TSE:9984
Softbank — Q2 FY2024 Earnings Presentation
108 slides from Softbank's earnings presentation, Nov 12, 2024
Slide 1: Earnings Results for the Six-month Period Ended September 30, 2024
Earnings Results for the Six-month Period Ended September 30, 2024 Investor Briefing November 12, 2024 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 EOQ Jun 30 Sep 30 Dec 31 Mar 31 Jun 30 Sep 30 Dec 31 Mar 31 1 USD 151.41 142.73 Abbreviations Abbreviations used in Accounting and Finance section
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-Q2 Q1-Q2 Change Change % Net sales 3,227.1 3,469.9 +242.9 +7.5％ Income before -907.4 1,461.1 +2,368.6 ー income tax Net income (attributable to owners of the -1,408.7 1,005.3 +2,414.0 ー parent) (Reference) Gain/loss on investments -963.6 2,651.0 +3,614.6 ー Inve
Slide 7: Net Income & SVF + Investment Business of Holding Companies Segment Income
Net Income & SVF + Investment Business of Holding Companies Segment Income 3,440.4 Net income (attributable to 3,033.6 (¥ B) 960.1 1,179.6 owners of the parent) 950.0 999.5 SVF segment income + Investment Business of Holding 231.1 -57.6 Company segment income (income before income tax) -79.5 -174.3
Slide 8: Investment Business of Holding Companies Segment
Investment Business of Holding Companies Segment (¥ B) FY23 FY24 P/L item FY24Q1-Q2 main items Q1-Q2 Q1-Q2 Gain/loss on investments at Investment -413.5 2,116.8 Business of Holding Companies Realized gain/loss at asset management subsidiaries -88.3 0.4 Unrealized gain/loss on valuation at asset 30.0
Slide 9: T-Mobile: Shareholding & Fair Values
T-Mobile: Shareholding & Fair Values $176.18 Share price $160.33 $163.22 $206.36 Events in FY24Q1 $140.05 ①Sold 6.7M TMo shares for $670M following DT’s partial exercise of call Number of 43.3 92.1 92.1 ① 85.4 85.4 options shares held (M) +48.8 -6.7 ① 670 ②DT’s call option for the remaining 28.2M TM
Slide 10: Transactions Related to T-Mobile Shares in FY24Q1-Q2
Transactions Related to T-Mobile Shares in FY24Q1-Q2 As of FY23Q4 Transactions in Q1-Q2 As of FY24Q2 Impact on Consolidated Financial Statements ($ M) ①Q1: Sold 6.7M TMo P/L 92.1M TMo 85.4M TMo shares • Realized gain: +500 shares following DT’s shares held partial exercise of call held • Valuation
Slide 11: Deutsche Telekom: Shareholding & Fair Values
Deutsche Telekom: Shareholding & Fair Values €26.39 Acquired 225.0M Deutsche €23.48 €22.50 Telekom shares in Sep 2021 Share price €19.87 €21.75 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 5,407 5,469 5,653 $5,925M (i) DT share
Slide 12: 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 $106.12 $106.12 considering prepaid Alibaba share price forward contracts: $72.36 $72.36 $24,947M (
Slide 13: SoftBank Vision Funds Segment
SoftBank Vision Funds Segment (¥ B) FY23 FY24 P/L Q1-Q2 Q1-Q2 FY24Q1-Q2 ｍain items Includes gains and losses associated with investments in the Gain/loss on investments at SoftBank Vision Funds 181.1 610.4 Company’s subsidiaries Gain/loss on investments at SVF1, SVF2, and LatAm 168.5 639.1 ¥896.4B g
Slide 14: (Reference) Investment Performance of SVF1 and SVF2
(Reference) Investment Performance of SVF1 and SVF2 ($ B) Since Inception FY24*1 Gain/loss Gain/loss Cost*2 Returns*2 Gain/loss Q2 Q1-Q2 SVF1 89.5 112.1 22.6 3.0 5.8 Exited investments 44.1 65.8 21.7 0.0 -4.4 Investments before exit 45.4 43.9 -1.5 2.8 5.6 Reversal of previously-recorded valuation ga
Slide 15: Arm Segment in SBG's Consolidated Financial Report
Arm Segment in SBG’s Consolidated Financial Report Bridge to Arm’s disclosure (FY24Q1-Q2 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 P/L item Change Q1-Q2 Q1-Q2 Net sales 3,227.1 3,469.9 +242.9 Gross profit 1,732.3 1,851.1 +118.8 1 ・¥1,280.1B investment gain on Alibaba shares ・¥566.2B investment gain on TMo shares (including derivative gains and Gain/loss on investments losses on investmen
Slide 17: Consolidated B/S Summary – Non-current assets
Consolidated B/S Summary – 1 (¥ B) B/S Main items Mar 2024 Sep 2024 Change item 1 Investment Business of Holding Companies segment (including SBG and 11,441.4 10,358.3 -1,083.1 wholly owned subsidiaries conducting fund procurement, etc.): ¥2,254.5B Current assets (¥1,105.1B decrease) Cash and cash e
Slide 18: Investment Securities in Consolidated B/S (Main Investments)
Investment Securities in Consolidated B/S (Main Investments) (¥ B) Mar 2024 Sep 2024 Change Outline Investment securities 9,062.0 8,751.1 -310.8 FVTPL 8,321.5 7,924.1 -397.4 ・¥1,249.6B worth of Alibaba shares were reclassified to assets classified as held for sale, due to a decision made by Sep 30,
Slide 19: Breakdown of Goodwill/Intangible Assets
Breakdown of Goodwill/Intangible Assets (¥ B) Change B/S Main items Mar 2024 Sep 2024 Amorti- Changes in Outline Item Others zation FX rate 5,709.9 5,605.4 * Arm 3,585.0 3,379.6 ― -205.5 ― Goodwill SBKK 913.9 913.9 ― ― ― LY 478.3 478.3 ― ― ― ZOZO 214.0 214.0 ― ― ― Technologies 359.0 310.6 Main intan
Slide 20: Consolidated B/S Summary – Non-current liabilities
Consolidated B/S Summary – 2 (¥ B) B/S Main items Mar 2024 Sep 2024 Change item 14,020.3 15,162.9 +1,142.6 Interest-bearing debt 8,271.1 1 8,935.8 +664.6 1 SBG Borrowings*: ¥891.4B (¥428.4B increase) Lease liabilities 149.8 159.1 +9.3 Current liabilities Corporate bonds*: ¥6,321.1B (¥173.5B increase
Slide 21: Consolidated B/S Summary – Equity
Consolidated B/S Summary – 3 (¥ B) B/S Mar Sep Main items Change Item 2024 2024 13,237.2 12,807.2 -430.0 Common stock 238.8 238.8 ― 1 ¥1,005.3B net income attributable to owners of the parent Capital surplus 3,326.1 3,385.9 +59.8 2 ¥153.8B in share repurchase Other equity instruments 193.2 193.2 ― 3
Slide 22: Impact of the Stronger Yen on P/L & B/S (Illustration)
Impact of the Stronger 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 loss Subsidiaries conducting (excl. inves
Slide 23: Impact of the Stronger Yen in FY24Q1-Q2
Impact of the Stronger Yen in FY24Q1-Q2 (from ¥151.41/$ to ¥142.73/$) Foreign exchange gain in consolidated P/L for FY24Q1-Q2: ¥289.0B At SBG stand-alone: Foreign exchange gains of ¥319.6B related to foreign currency-denominated borrowings from Group companies and ¥22.2B related to foreign currency-
Slide 24: Restated: Impact of the Weaker Yen in FY24Q1
Restated: Impact of the Weaker Yen in FY24Q1 (from ¥151.41/$ to ¥161.07/$) Foreign exchange loss in consolidated P/L for FY24Q1: ¥443.9B At SBG stand-alone: Foreign exchange losses of ¥471.6B related to foreign currency-denominated borrowings from Group companies and ¥30.1B related to foreign curren
Slide 25: Impact of the Stronger Yen in FY24Q2
Impact of the Stronger Yen in FY24Q2 (from ¥161.07/$ to ¥142.73/$) Foreign exchange gain in consolidated P/L for FY24Q2: ¥733.0B At SBG stand-alone: Foreign exchange gains of ¥791.2B related to foreign currency-denominated borrowings from Group companies and ¥52.3B related to foreign currency-denomi
Slide 26: Consolidated C/F Summary
Consolidated C/F Summary (¥ B) C/F FY23 FY24 Primary details for FY24Q1-Q2 item Q1-Q2 Q1-Q2 +317.1 Subtotal of cash flows from operating activities 1 ¥179.5B net inflow, despite the acquisition of corporate bonds by SB Northstar C/F from ・¥196.2B income tax paid (primarily by SBKK) operating +88.8 1
Slide 27: Income Taxes Paid on a Consolidated Basis (Net)
Income Taxes Paid on a Consolidated Basis (Net) (¥ B) FY24 FY19 FY20 FY21 FY22 FY23 Total Q1-Q2 Consolidated 757.4 324.5 589.3 525.9 816.8 3,013.9 33.1 Japan 696.3 189.5 551.2 469.7 717.0 2,623.7 -4.5 SBG and intermediate holding companies 445.8 -85.3 200.0 214.2 443.3 1,218.0 -78.1 (wholly owned su
Slide 28: Co-investment Program to SVF2: Related Party Transactions
Co-investment Program to SVF2: Related Party Transactions Equity interests of third-party interests Masayoshi SBG FY24Q2: $― (¥―) 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 29: Co-investment Program to LatAm Funds & Management's Investment
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 FY24Q2: $69M ( ¥9.9B) FY23: $93M (¥14.1B) Masayoshi SBG Masayoshi Son SB
Slide 30: SoftBank
SoftBank
Slide 31: 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 32: Business environment surrounding SBG
Business environment surrounding SBG Financial management with the flexibility to respond to environmental changes Geopolitical risks Financial markets AI market trends Russia-Ukraine war Volatile stock market Generative AI evolution S&P500 0.25% Accelerated data center U.S.-China tension BOJ’s init
Slide 33: Market Environment
Market Environment Stock indices rebounded from the sharp decline in August. FX rate shifted from JPY appreciation through the end of September, to a current trend of JPY depreciation Stock Indices*1 FX Rate (USD/JPY) 180 170 VC Index*2 JPY161.07 160 162 160 SOX*2 JPY153.72 150 140 S&P500 140 150 NI
Slide 34: FY2024Q2 Financial Summary
FY2024Q2 Financial Summary Investment gains increased substantially driven by SVF. Partially adjusted direct/indirect financing ratio leveraging strong financial position NAV ¥29.0T (-¥6.3T QoQ) LTV 12.5％ (+4.7ppt QoQ) NAV・LTV Net debt ¥4.1T (+¥1.1T QoQ) *1 Cash position ¥3.8T (-¥0.8T QoQ) Reinforci
Slide 35: Historical NAV
Historical NAV Maintaining a high level (¥ T) 35.3 31.6 29.0 FY2000 FY2005 FY2010 FY2015 FY2020 Q1 Q2 (Q2*) (Note) As of the end of each fiscal year FY2024 Applying share prices • NAV (Net Asset Value) = Adj. SBG stand-alone equity value of holdings – adj. SBG stand-alone net interest-bearing debt a
Slide 36: NAV Fluctuation Breakdown
NAV Fluctuation Breakdown NAV decreased by JPY6.3T mainly due to forex impact (¥ T) Share price impact Forex -2.4 impact*2 Others Key share price -4.0 0.1 impact 11% depreciation Arm: -¥3.1T T-Mobile/DT: +¥0.4T of USD SVF*1: +¥0.4T ($1=¥161.07→¥142.73) 35.3 31.6 29.0 Jun 30, 2024 Sep 30, 2024 (Sep 3
Slide 37: Historical Arm Share Price
Historical Arm Share Price Analysts’ target share price rising steadily (USD) 200 $163.62 (Q1 end) $143.01 180 (Q2 end) 160 $124.99 Arm share price (FY23Q4 end) 140 Analysts’ target 120 share price (average) 100 80 60 40 20 0 Sep 23 Oct 23 Nov 23 Dec 23 Jan 24 Feb 24 Mar 24 Apr 24 May 24 Jun 24 Jul
Slide 38: Historical LTV
Historical LTV Keeping LTV with a significant buffer 25% 18.2% 15.0% Average LTV over the past 3 years: 11.0% 11.5% 12.5% * 13.7% 10.6% 8.0% 8.4% 7.8% Sep 2022 Dec 2022 Mar 2023 Jun 2023 Sep 2023 Dec 2023 Mar 2024 Jun 2024 Sep 2024 * As of the end of each quarter * For details, see Appendix “LTV Cal
Slide 39: Our Stance on Forex Risk
Our Stance on Forex Risk Pursuing long-term equity return, unaffected by short-term forex fluctuations JPY-based NAV fluctuation risk Financial risks from forex fluctuation from USD investments Focus on long-term equity value growth LTV control with forex risks in mind • Long-term returns are primar
Slide 40: Performance of Large-scale Investments and Exchange Rate Trends
Performance of Large-scale Investments and Exchange Rate Trends All previous large-scale investments benefited from USD appreciation Historical USD/JPY (since 2005) (USD/JPY) 180 160 Nov 11 JPY154 140 120 100 80 2006 2017 2019 Vodafone SVF1 SVF2 (JPY investment) 2013 2016 60 (USD investment) (GBP in
Slide 41: Historical Equity Value of Holdings
Historical Equity Value of Holdings Equity value of holdings decreased from June end due to the depreciation of Arm shares. Values of other assets trending steadily Net of asset-backed 38.3 finace 35.7 33.1 (¥ T) 30.3 21.0 17.6 21.7 14.4 16.5 $143.01 $141.965 Most recent 18.4 Share price as of Sep 3
Slide 42: Proportion of Listed Shares
Proportion of Listed Shares Controlled portfolio’s liquidity through Alibaba monetization and Arm IPO, etc. Portfolio’s liquidity remains at a high level 79% 79% 76% Proportion of 74% 74% listed shares* 7.0 Others (unlisted) 5.3 6.5 52% 3.7 Listed shares 4.0 2.7 2.7 41% 2.7 8.3 16.5 14.4 12.7 13.0 2
Slide 43: Historical Invested Amounts (SVF + SBG)
Historical Invested Amounts (SVF + SBG) Invested $2.0B in Q2 ($ B) FY2022 FY2023 FY2024H1 2.5 $4.0B $3.9B $3.9B SBG*1 0.2 2.0 1.8 1.9 1.5 0.9 1.4 1.2 SVF*2 2.3 1.1 0.5 0.5 0.5 0.1 0.1 0.2 0.9 0.3 0.3 0.6 0.6 0.4 0.4 0.4 0.2 0.3 0.3 0.1 0.1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY2022 FY2023 FY2024 *1 Invest
Slide 44: 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*3 ¥3.8 T *1 (¥ B) 815.6 Undrawn commitment line*2 Bond redemptions for the next 2 years (¥2.1T) 2,974.4 ＞ 885.6 1,204.6 559.7 999.7 Sep 2024 Oct 2
Slide 45: Currency Breakdown and Yield of Cash Position
Currency Breakdown and Yield of Cash Position Continuing to maintain high-yield investments primarily in USD deposits Breakdown of cash position*1 Yield for SBG USD deposits, etc. (¥ T) 3.0 5.5% 5.5% 5.5% 5.4% 5.2% FF Rate Subsidiaries 0.5 4.9% (Upper Limit) 4.5% 4.9% Yield*2 JPY 0.5 US 10Y 3.8% Tre
Slide 46: Adjusting Direct/Indirect Financing Ratio
Utilizing Indirect Finance: Adjusting Direct/Indirect Financing Ratio Executed new term loan. Refinanced hybrid loan with an upsized amount Renewed New term loan Hybrid loan (Medium-long term commitment lines investment funds) (Refinance) Amount $5.5B+¥35.6B $2.9B ¥135.0B ($750M increase) (¥413.9B*)
Slide 47: Historical Loans and Commitment Lines Balances
Historical Loans and Commitment Lines Balances Arranged new term loan for the first time in three years after the term loan repayment (¥ B) 1,417.6 1,241.2 1,176.6 New term loan 1,101.1 413.9 (Medium-long term investments) 390.2 324.9 845.7 188.1 * 792.6 Term loan 84.0 782.6 137.1 (Acquisition 84.0
Slide 48: Role and Positioning of Debt Financing
Role and Positioning of Debt Financing Leveraging debt financing to capture investment opportunities and maximize returns, while reinforcing investor confidence through the repetition of investment and monetization cycles Investment opportunities Debt finance Bonds/loans, etc. Cycle of Commitment to
Slide 49: Historical NAV
Historical NAV Expanded NAV significantly while reshuffling our portfolio IPO M&A IPO Acquisition Monetization Arm SVF1/SVF2/ Acquisition LatAm Funds SBKK T-Mobile/ Acquisition Deutsche Telekom capital contribution Alibaba Yahoo Japan Others FY1998 FY2005 FY2010 FY2015 FY2020 FY2024 • NAV (Net Asset
Slide 50: FY2024 Funding and Fund Management Policy
FY2024 Funding and Fund Management Policy Completed bond/loan refinancing for FY2024. Future financing to be considered while closely monitoring market conditions Products Policy Progress status Domestic bond Primarily anticipated for refinancing Completed refinancing Considering financing options F
Slide 51: 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 1,626.7 (¥ B) Domestic senior bonds Domestic subordinated bonds 375.6 Domestic hybrid bonds Foreign currency-denominated
Slide 52: 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. Recourse debt increased due to borrowing of new term loan Main changes from June 30, 2024 • Decrease of financial liabilities relating to prepaid forward
Slide 53: Financial Liabilities Relating to Prepaid Forward Contracts
Alibaba Monetization Related Financial Liabilities Relating to Prepaid Forward Contracts All transactions to be settled by June 2025 Balance of financial liabilities relating to prepaid forward contracts using Alibaba shares (quarterly basis) ($B) Projection* 33 33 32 31 29 25 Completion of settleme
Slide 54: SBG Stand-alone Cash Position
SBG Stand-alone Cash Position While new funding was secured, cash position decreased due to forex impact, investments, and installments for Arm shares transaction consideration (¥ B) SB Northstar 4,397.6 3,771.1 3,956.1 3,831.2 2,986.2 Main changes from Jun 2024 Increase Decrease 4,357.0 ・Installmen
Slide 55: SBG Stand-alone Net Interest-bearing Debt
SBG Stand-alone Net Interest-bearing Debt Adjusted net debt increased due to installments for Arm shares transaction consideration and new investments (¥ B) 10,363.5 10,515.1 10,275.3 9,978.8 10,023.3 Finance-related adjustments 6,144.4 Asset-backed finance, etc. ¥5,777.1B 7,534.1 Hybrid finance ¥36
Slide 56: Historical Credit Ratings
Historical Credit Ratings Acquisition of Acquisition Acquisition Acquisition Listing Listing JCR A A+ 14 Japan 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 57: Historical SBG Share Price
Historical SBG Share Price Promptly launched the share repurchase program in response to sudden market upheaval Historical SBG and NIKKEI 225 share prices (JPY) Aug 7 Total share repurchase (JPY) 14,000 Resolved share amount as of Oct 31: 55,000 repurchase JPY174.8B program (Maximum amount: 12,000 J
Slide 58: FY24 Financial Strategy
FY24 Financial Strategy Prioritizing growth investments for future NAV expansion • Effective use of ample cash position • Active use of non-recourse financing to support strategic investments • Enhanced monitoring of portfolio → monetization and reinvestment Steadfast financial principles Adhering t
Slide 59: Appendix
Appendix
Slide 60: SBG Credit Spread
SBG Credit Spread Spread of SBG foreign currency- denominated senior notes SBG 5-year CDS bps USD 1.7Y USD 3.7Y USD 4.7Y 500 bps 700 USD 6.7Y USD 6.7Y EUR 2.2Y SBG 5Y CDS (JPY) EUR 4.7Y EUR 4.2Y EUR 7.7Y 450 EUR 7.7Y 600 400 500 350 300 400 250 300 200 150 200 100 100 50 0 0 Mar 2023 Jun 2023 Sep 20
Slide 61: Calculation of Equity Value of Holdings
Sep 30, 2024: Calculation of Equity Value of Holdings $1 = ¥142.73 ¥39.7T （unadjusted） Equity value of holdings Adjustment for (¥ T) Equity value of holdings ー ＝ asset-backed finance (adjusted) （unadjusted） Prepaid Forward Contracts, etc. Payable 923M Share price 4.9 ¥16.5T ＝ amount for Margin loan
Slide 62: LTV Calculation: SBG Stand-alone Equity Value of Holdings
LTV Calculation: SBG Stand-alone Equity Value of Holdings (L) Adjusted ¥4.13T SBG stand-alone net debt =12.5% (V) Adjusted SBG stand-alone equity value of holdings*1 ¥33.14T (¥ T) Adjusted SBG Major SBG’s interest in Other investments = + + stand-alone equity value of holdings assets SVF1&2 & LatAm
Slide 63: 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 16.50 Multiplying the number of Arm ADSs equivalent to SBG's holdings by the ADS price (¥18.83T) - Before adjustment 17.70 payable amount of the consideration for Arm shares acqui
Slide 64: 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 2.51 Number of T-Mobile shares held by SBG × the share price (h) Deutsche Telekom 0.37 Before adjustment 0.95 Number of DT shares held by SBG × the share price Adjustment for
Slide 65: LTV Calculation: SBG Stand-alone Net Debt
LTV Calculation: SBG Stand-alone Net Debt (L) Adjusted SBG stand-alone net debt*1 ¥4.13T (V) Adjusted SBG stand-alone ¥33.14T =12.5% equity value of holdings (¥ T) Adjusted SBG Consolidated Net debt at self- Other stand-alone net financing entities, debt = net debt - etc. - adjustments 4.13 15.43 5.
Slide 66: 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) 10.28 at self-financing entities*1 For hybrid bonds and hybrid loans with maturity dates, deduct 50% from interest-bearing debt;
Slide 67: 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 transactions 2 Margin loan 39.7 Main shares Asset-backed Alibaba, Deutsche Telekom SBKK, Arm
Slide 68: Breakdown of Equity Value of Holdings
Breakdown of Equity Value of Holdings Net of asset- 15% backed finance 28% 24% 16% 50% 15% 11% 11% 9% 8% 7% 5% 17% 18% 9% SBKK 20% 9% T-Mobile / Deutsche Telekom 21% 21% 11% SVF1(62 investments) 16% 12% SVF2 (273 investments) 5% 3% 5% 3% LatAm Funds (89 investments) 8% 8% 9% 6% Others Sep 2021 Sep 2
Slide 69: Geographical Portfolio Diversification
Geographical Portfolio Diversification Proportion of China decreased significantly. Proportion of EMEA increased significantly due to growth of Arm’s value Net of asset-backed finance 10% 7% China 23% 11% Japan 35% 17% 7% APAC (excl. China and Japan） 13% 12% 10% 10% 9% 32% 57% EMEA 25% 21% 23% 23% 2
Slide 70: Breakdown by Currency
Breakdown by Currency Investment and monetization flows are mainly in USD, while debt refinancing is principally in the same currency Investments and monetization Debt composition Cash position: ¥3.0T*1 Equity value of holdings: ¥33.1T*2 Debt*3: ¥7.4T Subsidiaries JPY EUR Net of asset- EUR USD backe
Slide 71: FY2024Q2: Increase/Decrease in Cash Position
FY2024Q2: Increase/Decrease in Cash Position Cash position decreased mainly due to installments for Arm shares transaction consideration and forex impact （¥ T） Debt financing- related +0.6 -1.0 -0.2 -0.3 Increase in +0.1 Investment- Share commitment line related repurchase New term loan +0.4 Forex i
Slide 72: 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) Sep 2023 Dec 2023 Mar 2024 Jun 2024 Sep 2024 SBG stand-alone 14,335.8 13,765.7 14,297.5 14,328.8 13,249.7 Incl. SB Northstar - - - - - SVF1&2 and LatAm Funds 542.2 513.2 547.9 583.1
Slide 73: SoftBank Vision & LatAm Funds Investor Briefing
QUARTER ENDED SEPTEMBER 30, 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: Fed Lowered Rates for First Time Since March 2020
PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT Fed Lowered Rates for First Time Since March 2020 Additional Rate Cuts Implied by Fed Fund Futures IPOs Below 10-Year Average But Green Shoots Emerge Federal Funds Rate With Forward Market Expectations1 Global IPO Volumes And Ten-Year Average2 2017 to 20
Slide 77: Positive Developments in China and India
PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT Positive Developments in China and India China Announces Wide-Ranging Stimulus Package1 India Public Markets Show Continued Momentum KEY INDICES PERFORMANCE2 NIFTY 50 INDEX PERFORMANCE3 INDIA IPO VOLUMES4 Reduction in required January 2024 – September 20
Slide 78: Quarterly Performance
SVF1 SVF2 LATAM PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT QUARTERLY FAIR VALUE PERFORMANCE 1 +$3.1B +$0.9B +$0.2B +$4.3B SVF1 SVF2 LATAM COMBINED Quarterly PUBLIC +$2.9B $(0.0B) +$0.1B +$2.9B Performance PRIVATE +$0.2B +$0.9B +$0.2B +$1.3B As of September 30, 2024 Interest rate cuts and Public i
Slide 79: Performance Over the Last Four Quarters
SVF1 SVF2 LATAM PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT VISION & LATAM FUNDS FAIR VALUE PERFORMANCE 1 +$4.3B Performance Over +$7.9B the Last Four +$3.6B Quarters As of September 30, 2024 TOTAL December 2023 – September Last Four Quarters June 2024 2024 Footnotes: 1. Fair Value Performance is
Slide 80: Performance Snapshot
SVF1 SVF2 LATAM PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT SoftBank SoftBank SoftBank Vision Fund 1 Vision Fund 2 LatAm Funds Combined5 Total Commitments1 $98.6B $60.8B $7.8B $167.2B Acquisition Cost2 $87.8B $54.8B $7.4B $150.1B Performance Snapshot Cumulative Gross Investment Gains/(Losses)2 $24
Slide 81: Public Investments Overview
SVF1 SVF2 LATAM PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT Public Investments Overview Top 10 Public Investments by Fair Value | As of September 30, 2024 QUARTERLY FV QUARTERLY STOCK SVF1 SVF2 LATAM INVESTMENT FV ($B)2 COMMENTARY6 CHANGE ($MM)4 MOVEMENT5 New in Top 10 This Quarter +$1,258 $8.6
Slide 82: Private Investments Overview
SVF1 SVF2 LATAM PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT Private Investments Overview As of September 30, 2024 # Current Investments1 Consumer Sentiment Mixed Positive FinTech Developments6 382 UNIVERSITY OF MICHIGAN CONSUMER SENTIMENT INDEX5 Unrealized FV – Private2 Valued at $45B in latest se
Slide 83: Revolut Achieves Key Milestones
SVF2 PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT Revolut Achieves Key Milestones As of September 30, 2024 KEY 38mm DEVELOPMENTS 1 Revenue ($) $45B Profit Before Tax ($) # Customers 26mm August 2024 $2.2B Secondary Valuation 16mm 95% 11mm $1.1B YoY Revenue Growth 8mm $877mm $545mm UK Banking Licens
Slide 84: Additional IPOs Continue to Unlock Value
SVF1 SVF2 PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT Additional IPOs1 Continue to Unlock Value As of September 30, 2024 2 3 4 2 3 4 Total Cost Total FV Gross MOIC Total Cost Total FV Gross MOIC $0.4B $1.2B 3.1x $0.6B $1.0B 1.7x Cost5 & Trading Activity6 Cost5 & Trading Activity6 SEP 30, 2024 INR
Slide 85: Continued Listings and Strong Late-Stage Portfolio
SVF1 SVF2 LATAM PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT Continued Listings and Strong Late-Stage Portfolio As of September 30, 2024 $34B 61% Cumulative Public Listings Since Inception1 % of Total Private Fair Unrealized Fair 53 Value2 Value2 SELECT COMPANIES: SERIES E AND ONWARDS 3 50 45 SVF1
Slide 86: Sustained Focus on Driving the AI Revolution
SVF2 PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT Sustained Focus on Driving the AI Revolution Three-Month Period Ended September 30, 2024 Select New Investments1 Bringing Work AI to every team member Accelerating software development Shaping the future of AI adoption in an enterprise through best-
Slide 87: OpenAI Investment Overview
SVF2 PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT OpenAI Investment Overview As of September 30, 2024 $500mm $157B $6.6B $17.9B SVF2 Post-Money Total Amount Raised Investment Valuation1 Round Size1 to Date2 Ensuring artificial general intelligence benefits all of humanity New Funding Round Septembe
Slide 88: OpenAI's Technology Sets Another Benchmark for the Industry
SVF2 PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT OpenAI’s Technology Sets Another Benchmark for the Industry As of September 30, 2024 HIGHLIGHTS LLM LEADERBOARD1 Top three highest ranked LLMs Company Model Arena Score1 per LMSYS Chatbot Arena1 ChatGPT-o1 Preview 1339 Released Model o1, first in a
Slide 89: OpenAI's Momentum Continues to Build
SVF2 PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT OpenAI’s Momentum Continues to Build As of September 30, 2024 KEY METRICS Reported Revenue1 $3.7B 2022 to 2024E 250mm Weekly Active Users2 Seeking to ensure $1.6B 1.7B Avg. Monthly Website Visits3 artificial general intelligence benefits all of huma
Slide 90: Backing Innovative Technology Ahead of the Curve
PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT Backing Innovative Technology Ahead 2010s AND BEYOND Rise of AI SVF1 SVF2 LATAM of the Curve The future of Masayoshi Son humanity lies in AI. Chairman & CEO, SoftBank Group Corp.1 AI INVESTING STACK Investments by Highest Total Equity Value2 Application
Slide 91: Appendix
Appendix m= OOftBank 1 Investment Advisers
Slide 92: SVF1 Distributions to Limited Partners
SVF1 SVF1 Distributions to Limited Partners Since Inception to September 30, 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 $28.1B $8.9B $8.1B Equity $58.6B $
Slide 93: SVF1 Contribution to SBG, Net of 3rd Party Interests
SVF1 SVF1 2024 Inception to Sep 30 Fund Net Profit2 $12.0 Less: Change in 3rd Party Contribution to Interests in Fund (6.0) SBG, Net of 3rd SBG LP Income: 6.0 Share of Fund Net Profit Party Interests1,3 SBG GP Income: Amounts in USD Billions 1.2 Management & Performance Fees3 Contribution to SBG, Ne
Slide 94: SVF1 Contribution to SBG
SVF1 SBG Paid-In Capital1 Contribution $27.7B to SBG SBG Total Value2 As of September 30, 2024 $24.0B $33.7B 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. SBG T
Slide 95: SVF2 Contribution to SBG
SVF2 SBG Paid-In Capital1 Contribution $56.7B to SBG SBG Total Value2 As of September 30, 2024 $25.3B $34.3B 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 Paid
Slide 96: LatAm Contribution to SBG
LATAM SBG Paid-In Capital1 Contribution $7.1B to SBG SBG Total Value2 As of September 30, 2024 $5.9B $6.3B Net Asset Value3 Distributions4 $0.4B Footnotes: 1. SBG Paid-In Capital represents SBG Commitment drawn down through capital calls less Return of Recallable unutilized Contributions. SBG Paid-I
Slide 97: Portfolio Companies Continue to be Well-Capitalized
SVF1 SVF2 LATAM 3% <12 Months 7% 12-24 Months Portfolio Companies 17% >24 Months Portfolio 72% 97% 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 September 30, 2024 Footnotes: 1.
Slide 98: Thank You
Thank You SoftBank Vision & LatAm Funds Investor Briefing Presentations Available at visionfund.com/presentations 26
Slide 99: Arm Holdings plc SoftBank Investor Briefing
Arm Holdings plc SoftBank Investor Briefing Ian Thornton Vice President, Investor Relations AI-generated image November 2024 © 2024 Arm
Slide 100: 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 © 2024 Arm 2
Slide 101: Q2 FYE25: From Revenues to Profits
Q2 FYE25: From Revenues to Profits 97% 39% Non-GAAP Non-GAAP Gross Margin Operating Margin $844m $24m $820m License Revenue $330m $494m $326m $317m Royalty Revenue $514m Revenue Non-GAAP Non-GAAP Non-GAAP Non-GAAP Non-GAAP COS Gross Profit Operating Operating Net Income Expense Income Notes: 1. Depr
Slide 102: Semiconductor industry recovered after inventory correction
Semiconductor industry recovered after inventory correction After slow start to the year, semiconductor industry has recovered, growing 23% YoY in September to record levels Industry demand driven by AI and consumer. Automotive and industrial electronics are weaker. Smartphone market grew 4.0% YoY i
Slide 103: Armv9 adoption driving royalty growth
Armv9 adoption driving royalty growth Royalty Revenue by Architecture 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% FYE16 FYE17 FYE18 FYE19 FYE20 FYE21 FYE22 FYE23 FYE24 Q1 FYE25* Q2 FYE25* Armv7 & older Armv8 Armv9 Armv9 commands a higher royalty per chip than prior architectures Armv9 adoption has s
Slide 104: Compute Subsystems are further increasing royalty per chip
Compute Subsystems are further increasing royalty per chip Arm’s Compute Subsystems (CSS) are being Arm is building an ecosystem adopted across all target markets to support CSS customers Partners have taped out multiple chips and chiplets combining Arm CSS with products and services across the ecos
Slide 105: Accelerating AI on Arm-based devices (Smartphone)
Accelerating AI on Arm-based devices (Smartphone*) Prompt Processing Token Generation Llama 3.2 3B WikiText-2 PPL (prompt = 128 tokens) (output = 128 tokens) 100 18 10 90 16 9 Small 80 14 8 degradation ~5x improvement 70 from Arm CPU ~3x improvement 7 12 60 optimized kernel 6 Perplexity token/sec to
Slide 106: Accelerating AI on Arm-based devices (Server)
Accelerating AI on Arm-based devices (Server*) Prompt Processing Token Generation Llama 3 70B WikiText-2 PPL (prompt = 128 tokens) (output = 128 tokens) 120 120 4 3.5 Small 100 100 degradation 3 80 80 2.5 tokens/sec tokens/sec >5x improvement ~3x improvement Perplexity 60 from Arm CPU 60 optimized k
Slide 107: Near-Term Guidance
Near-Term Guidance Q3 FYE 25 FYE 25 Revenue ($m) $920m - $970m $3.80b - $4.10b Non-GAAP Operating Expense ($m)1 ~$525m ~$2.05b Non-GAAP fully diluted earnings per share ($)1 $0.32 - $0.36 $1.45 - $1.65 (1) For more information and definitions of the non-GAAP measures see the “Key Financial and Opera
Slide 108: To be replaced
To be replaced © 2024 Arm 10