Softbank Group Corp. · TSE:9984
Softbank — Q1 FY2021 Earnings Presentation
112 slides from Softbank's earnings presentation, Aug 11, 2021
Slide 1: Earnings Results for the Three-month Period Ended June 30, 2021
Ver.1. Earnings Results for the Three-month Period Ended June 30, 2021 Investor Briefing August 11, 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 1 CNY 15.16 15.27 15.71 16.31 17.01 EOQ Jun 30 Sep 30 Dec 31 Mar 31 Jun 30 Sep 30 Dec 31 Mar 31 1 USD 110.71 110.58 1 CNY 16.84 17.11 Abbreviations Abbrev
Slide 4: Index
Index Accounting Finance Consolidated Results P 2 Summary of FY2021 Q1 P 2 Financial Strategy for FY2021 P 33 Newly Established the Latin America Fund Segment P 3 Investment Activities of the Group P 4 Firmly Keeping Financial Policy P 34 Segment Income - Investment Business of P 5 Gain on Investmen
Slide 5: Accounting
Accounting
Slide 6: Consolidated Results
Consolidated Results (¥ B) FY20Q1 FY21Q1 Change YoY Net sales 1,280.0 1,479.1 199.1 15.6% Income before 834.1 1,292.5 458.4 55.0% income tax Net income (attributable to owners of the 1,255.7 761.5 -494.2 -39.4% parent) (Reference) Gain on investments 982.9 1,263.1 280.2 28.5% Investment Business of
Slide 7: Newly Established the Latin America Fund Segment: Change in Presentation
Newly Established the Latin America Fund Segment: Change in Presentation in Consolidated P/L P/L after the revision of the presentation Net sales Gross profit “Gain on investments at Latin America Fund,” Gain (loss) on investments which was previously included in “gain on other ・Gain (loss) on inves
Slide 8: Newly Established the Latin America Fund Segment: Reportable Segments
Newly established the Latin America Fund Segment: Change in Reportable Segments • In FY21Q1, Latin America Fund, which was previously included within “Other,” is newly presented as an independent reportable segment FY20 Investment SVF1 and Other Business of SoftBank Arm SBIA-Managed Other*1,2 Holdin
Slide 9: Segment Income - Investment Business of Holding Companies
Segment Income - Investment Business of Holding Companies (¥ B) P/L FY20Q1 FY21Q1 Items Gain on investments 650.5 741.4 Gain relating to sales of T-Mobile shares 421.9 - Realized gain on investments at asset - 65.4 management subsidiaries Results of investment activities by SB Northstar in listed st
Slide 10: Derivative Gain (Loss) Relating to T-Mobile Shares
Derivative Gain (Loss) Relating to T-Mobile Shares (Quarterly Trend) T-Mobile share price $144.83 1. Derivate gain due to an increase in the fair value of the (at each quarter–end) contingent consideration $134.85 Granted call options to $125.29 FY21Q1: ¥197.8B (FY20 cumulative: ¥264.4B) Deutsche Te
Slide 11: Investment in Listed Stocks and Other Instruments
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 Cumulative gain (loss) Consolidated B/S (Minuses show Consolidated P/L from the previous fiscal Investor Investment type liabilities) Amount recorded Acc
Slide 12: Derivative Gain (Loss) on Alibaba Prepaid Forward Contracts
Derivative Gain (Loss) on Alibaba Prepaid Forward Contracts (Quarterly Trend) Alibaba share price Amendment of contracts $226.78 (Impact on P/L) $226.73 (¥ B) FY21Q1 (¥ B) Income before -109.7 Signing Derivative gain 280.9 income tax (-$1.0B) ($2.7B) 184.4 Net income -113.8 ($1.7B) (-$1.03B) -18.5 (
Slide 13: Entry into Agreement for Sale of All Shares in Arm: Overview
Entry into Agreement for Sale of All Shares in Arm: Overview • In Sep 2020, the Company agreed to sell all of Arm shares to NVIDIA. • As the Company expects to hold approx. 6.7- 8.1% of NVIDIA shares, further upside can be enjoyed as the largest shareholder when the share price goes higher. ($ B) Tr
Slide 14: Entry into 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 continuing FY20 FY21 FY22 operations (until the closing of the transaction is deemed Sep 13 (execution of Purchase Agreement) Approx.18 months Closing (expected) highly probable, such as after o
Slide 15: Consolidated P/L Summary (IFRSs)
Consolidated P/L Summary (IFRSs) (¥ B) P/L item FY20Q1 FY21Q1 Change Continuing operations Net sales +1,280.0 +1,479.1 +199.1 Gain on investments at Investment Business of Holding Companies: +¥741.5B Gross profit (see page 5 for details) +697.5 +812.0 +114.5 • Unrealized gain on valuation related to
Slide 16: Consolidated B/S Summary: Assets
Consolidated B/S Summary (IFRSs) - 1 (¥ B) As of As of 1 B/S item Main items Change Current assets related to investments from SB Northstar Mar 2021 Jun 2021 A: Decrease mainly due to sales of listed stocks 10,820.2 10,101.4 -718.8 B: Decrease due to sales of investments and repayment of collaterali
Slide 17: Investment Securities on Consolidated B/S
Investment Securities on Consolidated B/S (Main Investments) (¥ B) As of As of Change Outline Mar 2021 Jun 2021 Investment securities 3,706.8 4,351.7 +644.9 FVTPL 3,187.6 3,836.2 +648.6 T-Mobile 1,474.4 1,702.3 +227.9 ・Increase in fair values of portfolio companies Latin America Fund 441.0 751.3 +31
Slide 18: Consolidated B/S Summary: Liabilities
Consolidated B/S Summary (IFRSs) - 2 (¥ B) B/S As of As of 1 Main items Change item Mar 2021 Jun 2021 SBG: 12,891.0 12,944.8 +53.8 Short-term borrowings +¥685.4B (mainly €2.40B temporary loan made in Jun 1 2021 ahead of the issuance of foreign currency-denominated senior notes in Jul Interest-bearin
Slide 19: Consolidated B/S Summary: Equity
Consolidated B/S Summary (IFRSs) - 3 (¥ B) B/S As of As of Items Change item Mar 2021 Jun 2021 11,955.6 12,491.1 +535.5 Common stock 238.8 238.8 - Capital surplus 2,618.5 2,601.1 -17.4 1 • Net income attributable to owners of the parent: +¥761.5B • Decreased following the retirement of treasury stoc
Slide 20: Consolidated C/F Summary (IFRSs)
Consolidated C/F Summary (IFRSs) (¥ B) C/F item FY20Q1 FY21Q1 Change Primary details for FY21Q1 C/F from operating activities: increased ¥353.4B yoy Subtotal of cash flows from operating (Major reasons) C/F from 1,226.8 activities • Increase in the amount of income taxes paid (cash outflow): ¥358.8B
Slide 21: Segment Income - SVF1 and Other SBIA-Managed Funds
Segment Income - SVF1 and Other SBIA-Managed Funds (¥ B) P/L FY20Q1 FY21Q1 Items Gain on investments at SVF1, SVF2, and others 296.6 391.6 SVF1: Entire sale of shares (share exchange) in 1 portfolio company and a partial sale of shares Realized gain on investments 111.4 406.6 in 6 listed portfolio c
Slide 22: Introduction of Co-investment to SVF2
Introduction of Co-investment to SVF2 Simplified Structure <Present> <After introduction> Masayoshi SBG SBG Son*1 100% 100% 83% 17% (Up to $2.6B) SVF2 SVF2 SVF2 LLC Unlisted shares as of Listed shares June 23*2 and new as of June 23 investments afterwards <Supplementary information from accounting p
Slide 23: Appendix
Appendix
Slide 24: 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 Jun 2021 Amortization exchange Others rate 4,684.4 4,691.6 Arm 2,621.6 2,618.5 - -3.1 - Excludes ISG businesses Goodwill SBKK 907.5 907.5 - - - ZOZO 212.9 212.9 - - - * Increased due to
Slide 25: Price Sensitivity of Derivatives at SB Northstar
Price Sensitivity of Derivatives at SB Northstar (FY21Q1-end) The below table shows the impact on income before income tax of changes in the market prices of the underlying assets from June 30, 2021 of options, total return swap contracts, and forward contracts related to listed stocks at SB Northst
Slide 26: SoftBank
SoftBank
Slide 27: 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 Fund, PayPay, Fortress, SB Energy, etc.
Slide 28: Summary of FY2021 Q1
Summary of FY2021 Q1*1 Greater gain on investments vs. FY20Q1. Maintained a stable financial condition, while accelerating a pace of new investments. ⚫ Gain on investments totaled ¥1,263.1B - Investment businesses remained strong. Net income*2 totaled ¥761.5B. - Investment businesses other than SVF1
Slide 29: Results of Investment Businesses
- Results of Investment Businesses - Financial Condition - Financial Strategy - ESG Initiatives Finance 3
Slide 30: 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 82 companies in total etc. SVF2 SB Northstar Mainly listed stocks AI + Unicorns Amazon TSMC etc. Latin America Fund KE
Slide 31: Gain on Investments and Net Income
Gain on Investments and Net Income Gain on investments increased year on year Gain on investments Net income (attributable to owners of the parent) ■ Investment Business of Holding Companies ■ SVF1&2 ¥1,263.1B ■ Latin America Fund ¥1,255.7B ■ Other ¥982.9B Gain relating to loss of control of ¥761.5B
Slide 32: Gain on Investments: Trends and Breakdown
Gain on Investments: Trends and Breakdown A diversified portfolio has led to investment gains from multiple assets Quarterly trends Breakdown of FY21Q1 ¥3,729.6B Investments of Others ■Gain on investments at SVF1&2 holding companies ¥78.4B ■Gain on investments other than SVF1&2 (e.g. SoFi Technologi
Slide 33: Equity Value of Holdings
Equity Value of Holdings Equity value of holdings marked at ¥31.6T, remaining at high level Excluding asset- backed finance Composition 39% Alibaba (¥ T) 30.9 31.6 7% SBKK 29.8 20% SVF1 9% SVF2 26.9 2% Latin America Fund 6% T-Mobile 24.3 12.4 9% Arm 12.7 5% SB Northstar 18.6 13.1 3% Others 12.6 2.3
Slide 34: Increase of NAV per Share
Increase of NAV per Share Both NAV and NAV per share remain at the same level since FY20-end Net Asset Value NAV per share*1 and share price (¥ T) (¥) 26.1 +1.5% 26.5 Share price NAV per share 15,015 +2.9% 15,450 15,000 10,000 9,330 7,775 5,000 0 Mar 21 Jun 21 Mar 21 Jun 21 (Note) As of the end of e
Slide 35: Equity Value of Holdings: Diversification of Investment Portfolio
Equity Value of Holdings: Diversification of Investment Portfolio Further diversifying portfolio as SVF1&2’s value increased Excluding asset-backed finance March 31, 2021 June 30, 2021 Proportion of listed shares Proportion of listed shares (net of asset-backed finance) (net of asset-backed finance)
Slide 36: SVF1&2: Cumulative Investment Performance
SVF1&2: Cumulative Investment Performance (SBG Consolidated Basis, as of June 30, 2021) Public listings accelerated for investments in SVF1, while new investments increased for SVF2 SVF1 SVF2 ($ B) ($ B) 150 146.1 40 Exited*1 1.9x 30 100 87.8 25.0 Exited *1 3.0x Currently held 2.5x 20.2 and listed 2
Slide 37: SVF1&2: Gain (Loss) on Investments
SVF1&2: Gain (Loss) on Investments (SBG Consolidated Basis)*1 Recorded ¥0.3T gain on investments for FY21Q1 (¥ T) 3.6 1.4 1.1 (sum of SVF1&2) 0.4 0.3 ¥0.3T -0.2 -0.9 -1.1 FY19 FY19 FY19 FY19 FY20 FY20 FY20 FY20 FY21 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 *1 Gain and loss on investments at SVF1&2 Finance 11
Slide 38: Major Investment Activities of SVF1&2: New Listings and Recovery
Major Investment Activities of SVF1&2 (FY21Q1): New Listings and Recovery of Investments Large-scale IPOs and progress in recovery of investments New Listings Sales Fair value as of June 30, 2021 Partial sale IPO $13.7B SVF1 Partial sale IPO $4.0B SVF1 Partial sale IPO $1.7B and 3 other companies IP
Slide 39: Major Investment Activities of SVF1&2: New Investments
Major Investment Activities of SVF1&2 (FY21Q1): New Investments New and follow-on investments totaling $13.5B Fund Investments (alphabetical order) Sector AutoStore Logistics Better Fintech Content Square Enterprise Cybereason Enterprise Dingdong Consumer Made new investments SVF2 InMobi Consumer in
Slide 40: SVF1&2: Capital Commitment
SVF1&2: Capital Commitment (as of June 30, 2021) ($ B) *1 SVF1 33.1 (29.6) SVF2 65.5 98.6 40.0 (56.7) (86.3) (21.5) SBG Third-party limited partners * Numbers in brackets represent amounts contributed. *1 The presented SBG’s committed capital to SVF1 includes approximately $8.2B of an obligation sat
Slide 41: Introduction of Co-investment to SVF2
Introduction of Co-investment to SVF2 Co-investment by management in SVF2 together with SBG is intended to create a shared interest in SVF2 and instill a sense of ownership leading to enhanced focus on the fund, thereby contributing to SBG’s earnings growth. SVF2 (Present) SVF2 (After introduction)
Slide 42: Introduction of Co-investment and Change in SVF2 Structure
Introduction of Co-investment and Change in SVF2 Structure Supplementary information ◆ Introduction of the program will improve risk / return profile for SBG with thicker downside protection. ◆ Masayoshi Son and other management*1 will bear the losses up to their equity ownership amount. ◆ Distribut
Slide 43: Cycle of Investment and Recovery (FY21Q1)
Cycle of Investment and Recovery (FY21Q1) ¥725.9B invested capital was recovered and then funded SVF2’s investments Cash outflows for Cash inflows from investments recovery of investments Contribution to SVF1 Distribution from SVF1*1 ¥33.2B ($0.3B) ¥164.1B ($1.5B) Distribution from SVF2 ¥230.1B ($2.
Slide 44: SVF1&2 and LatAm Fund Portfolio Companies Fair Value
SVF1&2 and LatAm Fund, etc. Portfolio Companies Fair Value (As of July 30, 2021, Unrealized value only) Invest in a wide range of regions and sectors Country / Region Sector Edtech 1% Others 1% Health Tech Latin 3% America Enterprise 6% etc. Europe 5% Fintech Consumer 13% US 7% 28% Proptech 34% 7% C
Slide 45: SB Northstar: Cumulative Investment Gain (Loss)
SB Northstar: Cumulative Investment Gain (Loss)*1 ¥196.7B -¥491.2B ¥272.0B ¥98.2B*2 ¥75.7B*2 -¥22.5B Positive impact Impact on on net income due net income to losses borne by 現物株式 Stocks 現物株式 Stocks デリバティブ Derivatives 投資損益合計 Total investment attributable + gain (loss) Masayoshi Son to SBG +信用取引 Cred
Slide 46: SB Northstar: Assets Under Management
SB Northstar: Assets Under Management (as of June 30, 2021) Investments scaled down Stocks, etc. and derivatives (fair value) Notional principal of options (¥ B) ($ B) 44.3 Long call option 2,391.1 2,371.5 of listed stocks Stocks 1,741.0 13.4 11.2 and other instruments*1 2,281.7 2,198.1 1,501.3 -2.6
Slide 47: Financial Condition
- Results of Investment Businesses - Financial Condition - Financial Strategy - ESG Initiatives Finance 21
Slide 48: Main Financial Activities in FY2021
Main Financial Activities in FY2021 Diversified financing to ensure financial flexibility. Refinancing completed for the first call of domestic hybrid bonds. Issuance of corporate bonds Issued domestic hybrid bonds for retail investors (June) ¥405.0B Notice of optional redemption of domestic hybrid
Slide 49: Continue to maintain sufficient financial buffer (LTV trend)
LTV Trend Excluding asset-backed finance LTV trend *1 25% 18.0% 17.9% *2 16.2% 14.9% 11.8% 12.4% Continue to maintain 9.0% sufficient financial buffer ¥4.5T Moneti- Moneti- COVID-19 Program zation zation announced executed completed Dec 19 Mar 20 Jun 20 Sep 20 Dec 20 Mar 21 Jun 21 *1 As of the end o
Slide 50: Cash Position
Cash Position Always maintain ample cash position, more than sufficient for the bond redemptions for the next 2 years Cash position Bond redemption schedule*2 ¥2.1T *1 (¥ B) Bond redemption for the next 2 years (¥1.8T) Foreign currency- denominated senior notes issued in July 2021 2,095.2 ＞ 159.5 1,
Slide 51: 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: 2.6x) Maintain funds covering bond redemptions for the next 2 years Interest coverage ¥2.1T Dividends Distributi
Slide 52: Bond Redemption Schedule
Bond Redemption Schedule Refinancing of domestic hybrid bonds is completed (¥ B) ¥582.0B was raised 1,221.6 • Domestic hybrid bonds issued in February 2021 Domestic senior bonds • Domestic hybrid bonds issued in June 2021 1,128.7 Domestic subordinated bonds 1,021.2 Domestic hybrid bonds 193.7 455.6
Slide 53: Issuance of Domestic Retail Hybrid Bonds (June)
Issuance of Domestic Retail Hybrid Bonds (June) ¥405.0B retail bonds were sold out amid strong demand, following the successful issuance to institutional investors. Completed refinancing for ¥455.6B scheduled to be redeemed in September Issue amount (versus 2016) Total amount of ¥405.0B (¥ B) 582.0
Slide 54: Issuance of Foreign Currency-denominated Senior Notes (July)
Issuance of Foreign Currency-denominated Senior Notes (July) Secured financial flexibility through agile procurement by capturing the favorable market condition. Issue amount totaled $7.4B, record high for SBG / Reg S High Yield. (%) USD bond index yields*3 Total amount $7,360M (¥813.9B) 12 ハイイールド債利
Slide 55: SBG Stand-alone Interest-bearing Debt
SBG Stand-alone Interest-bearing Debt*1 Interest-bearing debt increased due to issuance of hybrid bonds Main variance factors from Mar 31, 2021 for refinancing and short-term borrowings, etc. • Change in bank loans +¥685.7B 14,033.4 • Issuance of domestic hybrid bonds +¥405.0B 13,023.3 • Repayment o
Slide 56: SBG Stand-alone Cash Position
SBG Stand-alone Cash Position Maintain ample cash position while expanding investments (¥ B) 4,601.6 Cash position of SB Northstar 3,589.6 2,175.0 3,437.5 Main variance factors from Mar 31, 2021 3,103.3 991.6 Increase Decrease 1,389.3 ・Distribution from SVF1&2 ・ SVF2 Capital Call 1,008.1 (+$3.6B) (-
Slide 57: SBG Stand-alone Net Interest-bearing Debt
SBG Stand-alone Net Interest-bearing Debt Continue adhering to financial policy while net interest-bearing debt is on the rise (¥ B) Excluding SB Northstar 10,513.7 8,558.8 Adjustments relating to finance 7,641.9 Asset-backed finance -¥ 5,085.9B 5,397.8 Hybrid finance -¥311.9B 6,528.9 5,645.5 4,849.
Slide 58: Financial Strategy
- Results of Investment Businesses - Financial Condition - Financial Strategy - ESG Initiatives Finance 32
Slide 59: Financial Strategy for FY2021
Financial Strategy for FY2021 Establish optimal financial strategy as an investment company Financial management Firmly keeping to enable reproduction at investment financial policy business on an expanded scale Finance 33
Slide 60: 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 61: 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 35
Slide 62: Financial Management to Enable Reproduction at Investment Business
Financial Management to Enable Reproduction at Investment Business on Expanded Scale Procure funds to capture Establish a cycle of attractive investment investment and recovery opportunities • Establish a cycle of “investment” → • Utilize leverage with LTV in mind “recovery and CF generation” → “rei
Slide 63: Cycle of Investment and Recovery (Illustrative)
Cycle of Investment and Recovery (Illustrative) Cash inflows from investment exits are the source of funds for new investments in the future. Investment Investment Value-up IPO Exit Distribution lifecycle Sources of funds for Creation of CF through new investments investment recovery Present Future
Slide 64: Cycle of Investment and Recovery (Illustrative)
Cycle of Investment and Recovery (Illustrative) To establish an investment cycle over the medium to long term Expand investment Fund A scale ¥ CF from investment Consider stakeholder recovery returns as appropriate Fund B ¥ Fund C ¥ Additional fund procurement as needed Finance 38
Slide 65: Capital Allocation Policy
Capital Allocation Policy Our top priority is to firmly keep the financial policy. Optimal mix of the three pillars is flexibly determined. Firmly keeping the financial policy Financial Shareholder Growth Improvement Return Investments Finance 39
Slide 66: ESG Initiatives
- Results of Investment Businesses - Financial Condition - Financial Strategy - ESG Initiatives Finance 40
Slide 67: E: Environment - Further Initiatives to Address Climate Change
E: Environment - Further Initiatives to Address Climate Change Promote tangible initiatives to reduce greenhouse gas emissions • Major Subsidiaries: Making steady progress toward achieving reduction targets Achieve Net Zero Carbon Achieve Carbon Neutral Convert 100% of electricity used by 2030 by FY
Slide 68: S: Society - COVID-19 Responses
S: Society - COVID-19 Responses Vaccination: Conducted large-scale vaccinations as a social contribution beyond the workplace • Started operation of vaccination sites at 8 locations nationwide on June 15 – Approx. 78,000 vaccinations are completed (as of August 2, 2021) – Target: Medical professiona
Slide 69: G: Governance
G: Governance Promoting diversity and inclusion in the Board of Directors • More diversified Board in terms of skills, gender, and nationality • External Directors compose 5 out of 9, reaching a majority Areas of expertise particularly expected by SBG (up to 3 areas) Name Position at SBG Corporate B
Slide 70: ESG Integration into the Investment Process
ESG Integration: Integration of E&S Factors into the Investment Process Revised “Portfolio Company Governance and Investment Guidelines Policy” (April 2021) – Integrated the Company’s ESG approaches into the investment process – Evaluate opportunities and risks arising not only from governance facto
Slide 71: Information Disclosure
Information Disclosure Selected for inclusion in ESG indexes through enhanced disclosure of ESG-related information Time of Index Evaluated point inclusion June 2021 FTSE4Good Index Series New Overall enhancement of ESG-related disclosure, including policies on June 2021 environment and human rights
Slide 72: Appendix
Appendix
Slide 73: LTV Calculation: SBG Stand-alone Equity Value of Holdings
LTV Calculation: SBG Stand-alone Equity Value of Holdings (L) Adjusted ¥5.12T SBG stand-alone net debt =16.2% (V) Adjusted SBG stand-alone equity value of holdings ¥31.58T (¥ T) Adjusted SBG stand- Interest of SBG in Other, investments alone equity value of Major shares SVF1&2 / Latin in listed stoc
Slide 74: LTV Calculation: SBG Stand-alone Net Debt
LTV Calculation: SBG Stand-alone Net Debt (L) Adjusted ¥5.12T SBG stand-alone net debt*1 (V) SBG stand-alone =16.2% ¥31.58T equity value of holdings (¥ T) Adjusted SBG Consolidated Net debt at self- Other stand-alone net debt = net debt - financing entities - adjustments 5.12 15.87 5.36 5.40 SoftBan
Slide 75: Direction of Financial Management (Illustrative)
Direction of Financial Management (Illustrative) Continue to procure funds to enable reproduction at investments at 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; Investment Enables bala
Slide 76: 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 12 JCR (A－) A- Outlook Stable BBB+11 BBB 10 BBB- 9 BB+ 8 S&P (BB+) Out
Slide 77: SVF1 Snapshot
SVF1 Snapshot (as of June 30, 2021) ($ B) *1 Gross Return to SVF1 is the sum of all external cash flows generated by investments and their related hedges, gross of taxes, transaction fees, investment-related financing and other fund-related expenses and liabilities, plus the market value of any unre
Slide 78: SVF1 Listed Portfolio Companies
SVF1 Listed Portfolio Companies (as of June 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 79: SVF2 Snapshot
SVF2 Snapshot (as of June 30, 2021) ($ B) 1.Gross Return to SVF2 is the sum of all external cash flows generated by investments and their related hedges, gross of taxes, transaction fees, investment-related financing and other fund-related expenses and liabilities, plus the market value of any unrea
Slide 80: SVF2 Listed Portfolio Companies
SVF2 Listed Portfolio Companies (as of June 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 81: Investment in Listed Stocks and Other Instruments
Investment in Listed Stocks and Other Instruments (as of June 30, 2021) ($ M) Fair value Amazon.com 5,653 TSMC ADR 812 PayPal Holdings 702 Pacific Biosciences of California 345 AbCellera Biologics 216 Century Therapeutics 59 Lyell Immunopharma 57 Stocks ironSource 53 Sana Biotechnology 52 Adaptive B
Slide 82: Entry into 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 val
Slide 83: Consolidated SBG: Interest-bearing Debt, Cash Position, Net Debt
Consolidated SBG: Interest-bearing Debt, Cash Position, and Net Interest-bearing Debt Consolidated Interest-bearing Debt*1 (\ B) Jun 20 Sep 20 Dec 20 Mar 21 Jun 21 SBG standalone 9,803.6 9,319.8 11,218.9 13,023.3 14,033.4 Incl. SB Northstar - 364.3 1,528.8 1,866.5 1,424.5 SVF1 and SVF2 159.1 156.3 2
Slide 84: SoftBank
SoftBank
Slide 85: SoftBank Vision Funds Update, Quarter Ended June 30, 2021
QUARTER ENDED JUNE 30, 2021 SoftBank Vision Funds Update NAVNEET GOVIL Managing Partner & Chief Financial Officer SoftBank Investment Advisers SoftBank Investment Advisers
Slide 86: Important Information (1 of 2)
Important Information ( or2) 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 paralle
Slide 87: 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 88: Topics
Topics O1- Progress & Highlights 02- Performance & Impact on SoftBank Group (SBG) 03- In Focus: Opportunities in the Al Revolution = SoftBank Investment Advisers
Slide 89: Progress & Highlights
Progress & Highlights == OoftBank Investment Advisers
Slide 90: Key Developments
PROGRESS & HIGHLIGHTS Key Developments Three-Month Period Ended June 30, 2021 New Capital Fund New Public Investments’ Invested’ Distributions’ Listings’ 47 $14.2B $6.7B 7 Footnotes: ‘New Investments represents the numberof investments made by SoftBank Vision Fund 1 and SoftBank Vision Fund 2 from A
Slide 91: Listings Since Inception
PROGRESS & HIGHLIGHTS 7 ae . . coupans, Listings Since Inception a7 1x As of June 30, 2021 GROSS 2.4x 2.4x MOICt 10x > vooroash Om view = ©pibdi y) ( 10.9x 16.0x 1.9x 0.5x 11x @ cuarvant at slack ae OxA Opendoor SDL Ewin 20 COMPASS ¥ 8.8x 3.0x 0.5x 3.7x 2.9x 1.0x 1.2x 1.6x Total Listings Si I i ane
Slide 92: IPOs Continue to Unlock Value
PROGRESS & HIGHLIGHTS IPOs Continue to Unlock Value Three-Month Period Ended June 30, 2021 +$5.8B UNREALIZED GROSS GAIN? $22.3B SDLER Mi $16.5B Fair Value? oe@esa Costs cumulative from Fund inception to June 30, 2021 for portfolio companies that have listed via initial public offeringfrom Apzil 01,
Slide 93: Disciplined Monetization Strategy
PROGRESS & HIGHLIGHTS 9 Disciplined Monetization Strategy Inception to June 30, 2021 Portfolio Company Gross Realized Proceeds PUBLIC SALE Gross Realized Gain? Snvioia. $5.8B +$12.1B ; ae slack $1.0B Gross Realized Proceeds? Oxzste2 $0.8B 1O x ceromies $0.3B M&A / OTHER Cost! Flipkart (ie $3.9B $12.
Slide 94: Distributions to Limited Partners
PROGRESS & HIGHLIGHTS Distributions to Limited Partners Since Inception to June 30, 2021 (A) (B) Fund Drawn Commitment Capital’ Total Distributions Preferred Equity $40.0 B $3 5.6B Equity $58.6B $52.4B Total $98.6B $88.0B Footnotes: Drawn Capital includes Fund Commitment drawn down through capital c
Slide 95: Portfolio Evolution
11 $146.5B $86.1B 69% Represents Combined Exited & Public Fair Value* PROGRESS & HIGHLIGHTS | 2 7 (o) ~ Represents Combined Exited & Public Fair Value* Portfolio Evolution m Exited! 1 Public? lB Private* By Fair Value June 2020 June 2021 Pro Forma® Footnotes: 1. Bxited represents the Gross Realized
Slide 96: Our Portfolio Companies Continue to Attract Capital
PROGRESS & HIGHLIGHTS Three-Month Period Ended June 30, 2021 Capital Raised 12 Our Portfolio Companies Continue to Attract Capital PRE-MONEY VALUATIONS Rappi- DELHIVErY Gympass | © coltectvereath | Qrofers G ShipBob Series F Series H Series E Series F Series G Series E $4.8B $2.8B $2.1B $1.3B $1.0B
Slide 97: Performance Snapshot
PROGRESS & HIGHLIGHTS Performance Snapshot As of June 30, 2021 13 SoftBank SoftBank Vision Fund1 Vision Fund 2 Combined Total Commitment $98.6B $40.0B $138.6B Acquisition Cost! $86.2B $19.5B $105.7B Invostinent Gains! $60.3B $5.5B $65.8B Total Fair Value? $146.5B $25.0B $171.5B Distributions? $27.0B
Slide 98: Performance & Impact on SoftBank Group (SBG)
Performance & Impact on SoftBank Group (SBG) Investment Advisers
Slide 99: SVF Contribution to SBG, Three-Month Period
15 SVF 1 . 2020 2021 Three-Month Period Ended Jun 30 Jun 30 Fund Net Profit? $2.35 $1.99 Less: Chi in 3° Part Contribution to interests in Fund i (1.12) (0.96) SBG, Net of 34 SBG LP Income: Pa rty | nterests2 Share of Fund Net Profit 1.23 1.03 ; ali SBG GP I Amounts in USD billions Management & Perf
Slide 100: SVF1 Contribution to SBG, Inception to Date
16 SVF1 : 2021 Inception to Jun 30 Fund Net Profit $42.46 PERFORMANCE & IMPACT ON SBG . . Less: Change in 3 Party Contribution to Interests in Fund (20.75) SBG, Net of 3rd SBG LP Income: 21.71 Share of Fund Net Profit . Party Interests? F ani SBG GP Income: Amounts in USD billions Management & Perfo
Slide 101: SBG Paid-In Capital (SVF1)
17 SBG Paid-In Capital* PERFORMANCE & IMPACT ON SBG $ 7 . 3 [2 Contribution to SBG, Realized and SBC Total Value! . . otal Value Net Asset Valu: Unrealized Values (Unrealized Value) $46.0B As of June 30, 2021 $ 5 e) . ? Ce 4 (Rented value) $3.1B A d & Paid Performance Fees? $ 1 0 . 1 B Footnotes: 1.
Slide 102: SBG Paid-In Capital (SVF2)
18 SBG Paid-In Capital* PERFORMANCE & IMPACT ON SBG $ 7 7 | 1B Contribution to SBG, Realized and SBC Total Value! ; . otal Value Net Asset Valu: Unrealized Values (Unrealized Value) $24.6B As of June 30, 2021 $ ? { ; 2) P | datinaion? $2.1B A d a Performance Fees? $ 1 . 2 B Footnotes: 1. Net Asset V
Slide 103: In Focus: Opportunities in the AI Revolution
In Focus: Opportunities in the Al Revolution == OoftBank Investment Advisers
Slide 104: Continued Conviction in the Artificial Intelligence Revolution
OPPORTUNITIES IN THE Al REVOLUTION 20 Continued Conviction in the Artificial Intelligence Revolution Our Thesis The Market The © The Opportunity Business Founders Investment opportunities are evaluated by... Market Cap Growth? AL Wholesale Ed. Services, Finance, Insurance, Value of Al-enabled Health
Slide 105: Building an AI-Enabled Portfolio
OPPORTUNITIES IN THE Al REVOLUTION 21 Building an Al-Enabled Portfolio As of June 30, 2021 PRIVATE PORTFOLIO* VINER A $16 6B $18 OB COST BY GEOGRAPHY (in uso B11 Acquisition Cost® Fair Value® 9 1 % COST BY SECTOR Number of Portfolio. Ww 22% fj 16% 19% Companies’ Consumer == Fintech Logistics oe, BG
Slide 106: Disruptive Opportunities within Each Sector
OPPORTUNITIES IN THE Al REVOLUTION Disruptive Opportunities within Each Sector Better ‘Klara. ‘etoro Alternative Lending A Pi Fintech Wectirecn LUmsecKS Ale +14 49 seer @ TESSERA Digital Health ienomics & Proteomics Health Te ical Technology Therapeutics SoftBank Vision Fund 2 22 & ShipBob BG ec SS!
Slide 107: Consumer: Powering the Creator Economy
OPPORTUNITIES IN THE Al REVOLUTION Consumer: Powering the Creator Economy As of June 30, 2021 Global Influencer Marketing Spend ($B) 2018 2019 2020 Footnotes: 4. Statista, Inluencer marketing market size worldwide from 2026 to 2021. Asof 30 June 2021 ‘ompany website Jly 2021 1k company website. June
Slide 108: Logistics: Optimizing Warehouse Automation & Management
OPPORTUNITIES IN THE Al REVOLUTION 24 Logistics: Optimizing Warehouse Automation & Management As of June 30, 2021 $3.6B Total Amount Invested! AutoStore JDL RR wR G ShipBob BS | exsnre 600+ 32 Ranked $280B+ Projected Reduction in Labor Spend vi Installations Logistics Parks #1 TAM Robotic Picking &
Slide 109: Fintech: Broadening Access to Financial Platforms
OPPORTUNITIES IN THE Al REVOLUTION Fintech: Broadening Access to Financial Platforms As of June 30, 2021 Alternative Lending ayments Retail bank, alternative payments provider, and shopping service Better Digital mortgage origination platform Al-driven platform providing financing for ecommerce busi
Slide 110: Health Tech: Investing in Groundbreaking Technologies
OPPORTUNITIES IN THE Al REVOLUTION 26 Health Tech: Investing in Groundbreaking Technologies As of June 30, 2021 Genomics & : Medical Digital Proteomics Therapeutics Technology Health 1 oO KARIUS elevatebia — @Exscientia LS Als- Total Investments? 4g seer Encoded> insitro LUMEEKS FORWARD rd TESSERA b
Slide 111: An Enduring Investing Platform
OPPORTUNITIES IN THE Al REVOLUTION 27 An Enduring Investing Platform As of June 30, 2021 Shared Vision, Amplified Ambition Assets Under Portfolio Investment Management Companies? Professionals $170B+ 183 145+ 10 = SoftBank Investment Advisers
Slide 112: Thank You
Thank You SoftBank Vision Funds Investor Briefing Presentations Available at visionfund.com/presentations = SoftBank Investment Advisers