Softbank Group Corp. · TSE:9984

Softbank — H1 FY2023 Earnings Presentation

126 slides from Softbank's earnings presentation, Nov 9, 2023

1. Slide 1: Earnings Results for the Six-month Period Ended September 30, 2023

   Ver.1.3 Earnings Results for the Six-month Period Ended September 30, 2023 Investor Briefing November 9, 2023 SoftBank Group Corp.

2. 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

3. Slide 3: Exchange rates and abbreviations

   Exchange rates per JPY used for translation FY2022 FY2023 Average during quarter Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1 USD 129.04 138.68 141.16 133.26 138.11 145.44 EOQ Jun 30 Sep 30 Dec 31 Mar 31 Jun 30 Sep 30 Dec 31 Mar 31 1 USD 133.53 149.58 Abbreviations Abbreviations used in Accounting and Finance section

4. Slide 4: Index

   Index • Accounting • Finance • SoftBank Vision & LatAm Funds • Arm

5. Slide 5: Accounting

   Accounting

6. Slide 6: Consolidated Results

   Consolidated Results FY22 FY23 (¥ B) Q1-Q2 Q1-Q2 Change Change % Net sales 3,182.5 3,227.1 +44.6 +1.4% Income before 292.6 -907.4 -1,200.1 ー income tax Net income (attributable to owners of the -129.1 -1,408.7 -1,279.6 ー parent) (Reference) Loss on investments -849.6 -963.6 -114.0 ー Investment Busin

7. Slide 7: Arm (2016-)

   Arm (2016-) Treated as a subsidiary SBG ownership SVF1 Non-controlling in SBG’s consolidated ownership interests financial statements (incl. third-party interests) Acquired Arm 100％ － － Sep 2016 Contributed 25% of Arm 75％ 25％ － Aug 2017- shares to SVF1 SVF segment: FVTPL Acquired 25% of Arm 100％ － －

8. Slide 8: Intra-Group Transaction of Arm Shares and Accounting Considerations

   Intra-Group Transaction of Arm Shares and Accounting Considerations  Prior to Arm’s IPO, in August 2023, SBG’s wholly owned subsidiary acquired substantially all of Arm shares held by SVF1 (equivalent to 24.99% of Arm’s outstanding shares) for $16.1B. The transaction consideration was established b

9. Slide 9: Arm IPO and Accounting Treatment

   Arm IPO and Accounting Treatment  In September 2023, SBG’s wholly owned subsidiary disposed 10%* of Arm shares in the IPO and received proceeds of $5.12B. The amount equivalent to the gain on the disposal was $4.65B.  Arm continues to be SBG’s consolidated subsidiary post-IPO as SBG holds 90%* of

10. Slide 10: Bridge to Arm's Form F-1 (FY22 P/L)

    Arm Segment in SBG’s Consolidated Financial Report Bridge to Arm’s Form F-1 (FY22 P/L) Adjustment (1) Adjustment (2) Adjustment (3) Amortization expenses SBG Consolidated related to intangible Difference in Reflecting the latest assets recognized in accounting available Arm Financial Report Arm segm

11. Slide 11: Bridge to Arm's disclosure (FY23H1 P/L)

    Arm Segment in SBG’s Consolidated Financial Report Bridge to Arm’s disclosure (FY23H1 P/L) Adjustment (1) Adjustment (2) Adjustment (3) Amortization expenses SBG Consolidated related to intangible Difference in assets recognized in accounting Arm Financial Report Arm segment the purchase price stand

12. Slide 12: Investment Business of Holding Companies Segment

    Investment Business of Holding Companies Segment (¥ B) FY22 FY23 P/L item FY23Q1-Q2 Main Items Q1-Q2 Q1-Q2 Gain/loss on investments at Investment 3,524.7 -413.5 Business of Holding Companies Gain/loss relating to settlement of prepaid forward 4,838.3 ― contracts using Alibaba shares Gain/loss relati

13. Slide 13: Alibaba Shares and Derivative Financial Assets/Liabilities

    Alibaba Shares and Derivative Financial Assets/Liabilities (Amount Recorded in B/S) Value of Alibaba shares Derivative financial recorded in B/S Investment securities (FVTPL) assets/liabilities (net) considering prepaid Alibaba share price forward contracts: $102.18 $102.18 $32,108M ( A + B ) $86.74

14. Slide 14: T-Mobile: Shareholding & Fair Values

    T-Mobile: Shareholding & Fair Values includes shares subject to unexercised Deutsche Telekom’s call options $144.84 $140.00 $138.90 $140.05 Held 43.3M T-Mobile $134.54 $134.17 shares at FY23Q2, up 3.6M shares from T-Mobile share price FY22Q4 -$181M (-¥24.6B) Received 3.6M T-Mobile shares valuation l

15. Slide 15: Deutsche Telekom: Shareholding & Fair Values

    Deutsche Telekom: Shareholding & Fair Values Acquired 225M Deutsche Telekom shares in Sep 2021 Deutsche Telekom share price €22.35 in return for the sale of T-Mobile €19.98 €19.87 -$731M (-¥102.2B) €18.95 shares. €18.64 valuation loss for €17.49 FY23Q1-Q2 5,463 4,904 4,732 Fair value of Deutsche 4,4

16. Slide 16: T-Mobile Shares: Fair Values of Contingent Consideration

    T-Mobile Shares: Fair Values of Contingent Consideration Closing price on Nov 7, 2023: $147.13 Contingent consideration $144.84 is the Company’s right $134.54 $134.17 $140.00 $138.90 $140.05 to acquire 48.8M T-Mobile shares for no consideration if: T-Mobile share price 45-day trailing VWAP of -$578M

17. Slide 17: SoftBank Vision Funds Segment

    SoftBank Vision Funds Segment (¥ B) FY22 FY23 P/L Q1-Q2 Q1-Q2 FY23Q1-Q2 Main Items In consolidated P/L, loss on investments at SoftBank Gain/loss on investments at SoftBank Vision Funds -4,312.3 181.1 Vision Funds was ¥583.3B ¥482.2B gain at SVF1, ¥347.1B loss at SVF2 Gain/loss on investments at SVF

18. Slide 18: Investment Performance of SVF1 and SVF2

    (Reference) Investment Performance of SVF1 and SVF2 ($ B) Since Inception FY23*1 Gain/loss Gain/loss Cost*2 Returns*2 Gain/loss Q2 Q1-Q2 SVF1 89.6 104.4 14.8 2.4 3.4 Exited investments 34.6 59.7 25.1 6.9 6.3 Investments before exit 55.0 42.3 -12.7 -1.6 -2.0 Reversal of previously-recorded valuation

19. Slide 19: Status of Investment and Financial Support for WeWork

    Status of Investment and Financial Support for WeWork (¥ B) P/L B/S Amount in Carrying amount Account FY23Q1-Q2 Account as of Sep 2023 (Minus shows loss) (Minus shows liabilities) Loss on investments at Investments from 17.2 -98.9 SoftBank Vision Funds SVF (FVTPL) ($115M) a WeWork stocks and warrant

20. Slide 20: Status of Investment and Financial Support for WeWork (Cumulative)

    Status of Investment and Financial Support for WeWork (Cumulative) ($ M) Cumulative acquisition cost as of Sep 2023 (SBG consolidated basis) Cumulative loss Cumulative cash Carrying amount as of Sep 2023 * Exchange from flows as of Sep 2023 (SBG consolidated as of Sep 2023 Cash Consideration (Minus

21. Slide 21: Consolidated P/L Summary

    Consolidated P/L Summary (¥ B) FY22 FY23 P/L item Change Q1-Q2 Q1-Q2 Net sales 3,182.5 3,227.1 +44.6 1 ・¥364.5B valuation loss due to declines in the share prices of Gross profit 1,721.3 1,732.3 +11.0 Alibaba, DT, and TMo Gain/loss on investments ・Of the above valuation loss, ¥237.6B loss on Alibaba

22. Slide 22: Consolidated B/S Summary – Assets

    Consolidated B/S Summary – 1 (¥ B) B/S Main items Mar 2023 Sep 2023 Change item Current assets 10,586.5 10,803.3 +216.8 1 SBG and wholly owned subsidiaries conducting fund procurement, etc.: ¥3,908.4B (¥107.7B decrease) Cash and cash equivalents 6,925.2 1 6,707.8 -217.3 Derivative financial assets 2

23. Slide 23: Investment Securities in Consolidated B/S (Main Investments)

    Investment Securities in Consolidated B/S (Main Investments) (¥ B) Mar 2023 Sep 2023 Change Outline Investment securities 7,706.5 8,139.1 +432.6 FVTPL 7,244.3 7,477.5 +233.2 4,842.3 4,604.7 -237.6 Decreased due to lower share price Alibaba $36,264M $30,784M -$5,480M Increased due to the receipt of 3

24. Slide 24: Breakdown of Goodwill/Intangible Assets

    Breakdown of Goodwill/Intangible Assets (¥ B) Change B/S Main items Mar 2023 Sep 2023 Amorti- Outline Item Changes in Others zation FX rate 5,199.5 5,601.6 * Arm 3,161.7 3,541.7 ― +380.0 ― Goodwill SBKK 913.9 913.9 ― ― ― LINE 628.9 628.9 ― ― ― ZOZO 214.1 214.1 ― ― ― Technologies 344.3 378.4 Main Arm

25. Slide 25: Consolidated B/S Summary – Liabilities

    Consolidated B/S Summary – 2 (¥ B) B/S Main items Mar 2023 Sep 2023 Change item 10,580.7 11,039.6 +458.8 Interest-bearing debt 5,129.0 1 5,751.4 +622.3 1 SBG Borrowings*: ¥459.9B (¥78.1B increase) Lease liabilities 184.1 161.2 -23.0 Current liabilities Corporate bonds*: ¥5,958.4B (¥205.4B increase)

26. Slide 26: Consolidated B/S Summary – Equity

    Consolidated B/S Summary – 3 (¥ B) Mar Sep Items Change 2023 2023 10,649.2 11,671.3 +1,022.1 1 Amount equivalent to the gain on the sale of Arm shares upon Common stock 238.8 238.8 ― IPO :¥674.4B Capital surplus 2,652.8 3,319.5 1 +666.7 2 Redeemed $2.00B USD-denominated NC6 undated hybrid notes Othe

27. Slide 27: Impact of the Weaker Yen on P/L & B/S (Illustration)

    Impact of the Weaker 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 gain Subsidiaries conducting (excl. investm

28. Slide 28: Impact of the Weaker Yen in FY23Q1-Q2

    Impact of the Weaker Yen in FY23Q1-Q2 Foreign exchange loss in consolidated P/L for FY23Q1-Q2: ¥648.1B At SBG stand-alone: Foreign exchange losses of ¥954.7B related to foreign currency-denominated borrowings from Group companies, ¥65.0B related to foreign currency-denominated bonds excl. USD-denomi

29. Slide 29: Consolidated C/F Summary

    Consolidated C/F Summary (¥ B) 1 ¥466.8B decrease yoy C/F FY22 FY23 ・¥251.4B increase in outlay for income taxes Primary details for FY23Q1-Q2 item Q1-Q2 Q1-Q2 SBG has paid ¥238.2B income taxes mainly due to gains +614.2 Subtotal of cash flows from operating activities from the sale of Alibaba share

30. Slide 30: Income Taxes Paid on a Consolidated Basis (Net)

    Income Taxes Paid on a Consolidated Basis (Net) (¥ B) FY23 FY18 FY19 FY20 FY21 FY22 Total Q1-Q2 Consolidated 415.4 636.3 445.5 589.3 525.9 2,612.4 438.7 Japan 284.3 575.2 310.5 551.2 469.7 2,190.9 397.7​ SBG and holding companies (wholly 36.8 324.7 35.7 200.0 214.2 811.4 283.1​ owned subsidiaries) O

31. Slide 31: Co-investment Program to SVF2: Related Party Transactions

    Co-investment Program to SVF2: Related Party Transactions Equity interests of third-party interests Masayoshi SBG FY23Q2: $― (¥―) Son* 1 FY22: $― (¥―) Equity interests: 17.25% (B) (A) Distribution: $173M Equity acquisition amount: $2,923M 100% (Return of capital) (i) Acquisition costs: $2,594M (comm

32. Slide 32: 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 FY23Q2: $153M ( ¥22.9B) FY22: $215M (¥28.7B) Masayoshi SBG Masayoshi Son

33. Slide 33: 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 includes SBKK (including its subsidiaries such as Z Holdings(currently LY) and PayPay), SVF1, SVF2, LatAm Fund

34. Slide 34: Arm Listed on NASDAQ

    Listed on NASDAQ September 14, 2023 IPO Market Cap*1 $52B (¥7.8T*2) *1 Calculated by 1,025,234,000 shares, the number of Arm’s outstanding shares (before dilution.) as of Sep 30, 2023 multiplied by IPO price per ADS *2 Converted to JPY at 1$=¥149.58 Finance 2

35. Slide 35: Earnings presentation for the 9-month period ended December 31, 2020 (February 8, 2021)

    Earnings presentation for the 9-month period ended December 31, 2020 (February 8, 2021) Finance 3

36. Slide 36: Global Top Market Cap at IPO

    Global Top 15 Market Cap at IPO (Past 10 Years*1) Saudi Aramco $1,707B Alibaba $168B Life Insurance Corp of India Uber $75B Porsche Rivian Automotive DiDi $67B SBKK $64B SBG involved in 6 of the top 15 IPOs Kuaishou Technology Coupang $60B LG Energy Solution Japan Post Bank as a primary Arm $52B sha

37. Slide 37: SBG's Growth Strategy

    SBG’s Growth Strategy Expanding NAV through repeating investment cycle IPO is effective in realizing value and enhancing the flexibility for monetization, while it is just a milestone in a company’s growth NAV Expand Value IPO Monetize Invest through growth of Realization of value Creation of liquid

38. Slide 38: Historical NAV

    Historical NAV The success in investments as exemplified in Alibaba and Vodafone Japan led to further reinvestments, resulting in significant increase of NAV to 17x in approx. 22 years Launch M&A IPO NAV M&A Launch ¥16.4T IPO IPO M&A Investment M&A M&A IPO FY2000 FY2005 FY2010 FY2015 FY2020 Sep 2023

39. Slide 39: Historical Consolidated Total Assets

    Historical Consolidated Total Assets Consolidated total assets expanded to ¥46T Consolidated total asset ¥ 46.0T ¥1.1T FY2000 FY2005 FY2010 FY2015 FY2020 Sep 2023 (Note) From FY2000 to FY2022, as of the end of each fiscal year Finance 7

40. Slide 40: Historical Consolidated Interest-bearing Debt

    Historical Consolidated Interest-bearing Debt Pursuit group’s optimal leverage Consolidated interest-bearing debt (incl. non-recourse debt) increased along with the expansion of the overall group's assets Consolidated total asset Consolidated interest-bearing debt ¥21.4T FY2000 FY2005 FY2010 FY2015

41. Slide 41: Breakdown of Consolidated Interest-Bearing Debt

    Breakdown of Consolidated Interest-Bearing Debt Contrarily, debt for which SBG has a direct obligation of repayment remains at a low level Start financial management as an investment holding company Consolidated interest-bearing debt ¥21.4T Debt for self-financing entities ( , etc.) Asset-backed fin

42. Slide 42: History of Asset and Debt

    History of Asset and Debt Effectively utilizing financial leverage through non-recourse debt / financing (e.g., debt financing by self-financing entities and asset-backed finance) Realizing overall group growth while mitigating financial risks Consolidated total asset Consolidated interest-bearing d

43. Slide 43: Enhancement of Presence in the Financial Markets

    Enhancement of Presence in the Financial Markets Continue our efforts to divirsify our funding sources by leveraging our robust financial foundation. Highest trust from market participants in our history Before 2010 Current ¥145.0B (2000) ¥740.9B equiv. (2023) Commitment Facility Line 9 banks (prima

44. Slide 44: Historical LTV

    Historical LTV LTV reached an all-time low level Continue to grow and expand pursuing optimal leverage going forward 75% Historically the strongest financials 50% Investment Holding Company 25% LTV 10.6% Investment in domestic Investment in Sprint ¥4.5T Program telecom business 0% FY2005 FY2010 FY20

45. Slide 45: Current Market Environment

    Current Market Environment Persistently high US interest rates are weighing on the stock market U.S. Interest Rates Exchange Rate (USD/JPY) U.S. 米国株価 Stock Prices *1 *1 FF Target Rate (upper bound) US Treasury 2Y (%) (JPY) US Treasury 10Y FF Rate Upper Limit 6.0 160 120 5.50% 2Y ¥ 150.98 4.9% 5.0 15

46. Slide 46: Finance Summary in FY2023 Q2

    Finance Summary in FY2023 Q2 Completion of Arm IPO further strengthened our financial base. Continued proactive investments NAV of ¥16.4T: +¥0.9T QoQ LTV of 10.6％: +2.6pt QoQ NAV・LTV Net debt of ¥1.9T: +¥0.5T QoQ Cash position of ¥5.1T*1: -¥0.7T QoQ Purchased Arm shares from SVF1. Closing of Arm IPO

47. Slide 47: Summary of Arm IPO

    Summary of Arm IPO The largest IPO ever for a semiconductor company*1 Participation of numerous strategic investors symbolizes Arm's core significance in the semiconductor sector Sep 2016 Acquired 100% (approx. $32B) IPO Price $51.00 per ADS (Upper limit of the expected price range of $47.00~$51.00）

48. Slide 48: Portfolio Replacement

    Portfolio Replacement Improved portfolio quality: asset diversification, recovery in proportion of listed assets and reducing geopolitical risk Net of asset- Proportion of 81% 62% 44% 69% backed finance listed shares 15% 24% 28% 16% 59% 15% 11% SBKK 11% 8% T-Mobile 9% 7% Deutsche Telekom 5% 17% 18%

49. Slide 49: Geographical Portfolio Diversification

    Geographical Portfolio Diversification The proportion of China decreased significantly Net of asset-backed finance 15% 9% China 31% 17% Japan 18% 12% APAC 11% 12% (excluding Japan and China） 9% 27% 35% EMEA 20% 4% 5% 5% Latin America 25% 24% 22% North America Mar 2022年 Mar 2023年 Sep 2023年 2022 3月末 2

50. Slide 50: Invested Amounts (SVF1+2+LatAm+SBG/Others)

    Invested Amounts（SVF1+2+LatAm+SBG/Others） Resuming investments from Q1; expanding investments cautiously ($ B) 2.5 SBG/Others 0.2 1.8 1.5 0.9 SVF1+ SVF2+ 2.3 LatAm 1.1 0.5 0.5 0.5 0.1 0.1 0.9 0.2 0.4 0.4 0.4 0.3 Q1 Q2 Q3 Q4 Q1 Q2 (Note) FY2022 FY2023 Invested amounts by SBG/Others: Investment by SBG

51. Slide 51: Status of WeWork

    Status of WeWork SB group has fulfilled all its credit support obligations Oct 2021 Oct 2023 WeWork SPAC listing WeWork withheld interest payments on series of notes Completed fulfillment of credit support from SVF2 in its entirety through cash collateral Nov 6 WeWork’s filing for relief under Chapt

52. Slide 52: Cash Position and Coming Bond Redemptions

    Cash Position and Coming Bond Redemptions Maintain ample cash position, well over 2-year worth of bond redemptions Cash position Bond redemption schedule ¥5.1T *1 (¥ B) 740.9 Undrawn commitment line*2 Bond redemptions 4,357.0 for the next 2 years (¥1.9T) Sep 2023 ＞ 1,036.8 Oct 2023 889.1 Oct 2024 1,

53. Slide 53: Breakdown and Yield of Cash Position

    Breakdown and Yield of Cash Position Continuing high-yield operations primarily with US dollar deposits Average yield*2 for Breakdown of cash position*1 SBG USD deposits, etc. 6.0% (¥ T) 4.4 5.2% 5.4% Yield 4.9% US 2-year 5.0% Subsidiaries 0.4 4.5% 5.0% treasury yield US 10-year JPY 0.6 4.0% 4.6% tr

54. Slide 54: Response to Interest Rate Hike

    Response to Interest Rate Hike Possess considerable financial flexibility, a result of ample cash position built up through accelerated monetization Ample Cash Position Various Funding Options SBG to determine Select from various funding the timing of funding methods ¥5.1T ＞ ¥1.9T Products × Terms C

55. Slide 55: Impact of Rise in Interest Rate: Floating Rate Debt

    Impact of Rise in Interest Rate: Floating Rate Debt No risk of surge in interest payments amid short-term interest rate rise Fixed/Floating Ratio of SBG Stand-alone Interest-bearing Debt*1 Floating rate; USD Floating rate; JPY*4 1 percentage point rise in USD 15% 10% ¥8.2B interest payment interest

56. Slide 56: Impact of Rise in Interest Rate: Fixed Rate Debt

    Impact of Rise in Interest Rate: Fixed Rate Debt Assuming current interest rate environment remains for 2 years Majority of bonds due within 2 years consist of low-interest domestic bonds Breakdown of Bonds Outstanding*1 Domestic bonds ¥1.3T ≦2 years Bonds USD bonds ¥0.3T outstanding ¥6.0T EUR bonds

57. Slide 57: Breakdown by Currency

    Breakdown by Currency Investment and monetization flows are mainly in dollars, while debt refinancing are principally in the same currency Investments and monetization Debt composition Cash position: ¥4.4T*1 Equity value of holdings: ¥18.4T*2 Debt*3: ¥6.7T Subsidiaries EUR Net of asset- JPY backed f

58. Slide 58: Impact of Forex (FY2023H1)

    Impact of Forex（FY2023H1） Weaker JPY increased NAV and equity FX losses are recorded mainly related to foreign currency-denominated borrowings from group companies On NAV On accounting Equity ＋¥1.8T + ¥1.9T Consolidated net income -¥0.6T Finance 26

59. Slide 59: Bond Redemption Schedule

    Bond Redemption Schedule Bond issuances will be managed with due consideration for cash position and market environment. (¥ B) Domestic senior bonds 1,554.0 Domestic subordinated bonds Domestic hybrid bonds 302.9 Foreign currency-denominated senior notes 1,102.1 Foreign currency-denominated hybrid n

60. Slide 60: Funding and Fund Management Plans in FY2023

    Funding and Fund Management Plans in FY2023 Funding: Mainly for refinancing Surplus fund management: Propelling diversification The current focus is on refinancing. No plans to be active Bond in funding Domestic: ~¥400.0B of bonds to be redeemed in Mar 2024 International: $1.9B equiv. of senior bond

61. Slide 61: SBG Stand-alone Interest-bearing Debt

    SBG Stand-alone Interest-bearing Debt*1 Exchange rate effects slightly increased SBG's stand-alone interest- bearing debt Main changes from June 30, 2023 (¥ B) • Impact of Forex (incl. non-recourse debt) +¥233.1B*2 14,083.3 14,335.8 Breakdown (September 30, 2023) (¥ B) 12,691.7 SBG borrowings Vs, Ju

62. Slide 62: SBG Stand-alone Cash Position

    SBG Stand-alone Cash Position Maintain ample cash position (¥ B) 5,171.3 29.6 4,528.4 4,397.6 SB Northstar 41.9 40.6 3,637.4 76.6 3,173.4 35.6 Main changes from June 2023 5,141.6* 4,486.5 4,357.0* Increase Decrease ・Proceeds from Arm IPO ・Bond buyback and early 3,560.8 3,137.8 (+$5.1B) redemption (-

63. Slide 63: SBG Stand-alone Net Interest-bearing Debt

    SBG Stand-alone Net Interest-bearing Debt Adjusted net interest-bearing debt remains at a low level (¥ B) 9,978.8 8,941.6 8,504.9 8,112.2 8,205.2 Finance-related adjustments 8,034.6 Asset-backed finance, etc. ¥7,667.8B 5,549.1 5,030.2 Hybrid finance ¥366.8B 6,458.2 7,588.6 2,955.7 3,082.0 Adjusted 1

64. Slide 64: Historical Credit Ratings and Financial Condition

    Historical Credit Ratings and Financial Condition Strongest financials in history backed by ample assets and low leverage level However, S&P rating is at its lowest in the past 15 years NAV SBG Stand-alone Interest Bearing Debt LTV BBB A- Rating （JCR） BB BB BB+ Rating （S&P） FY2005 FY2010 FY2015 FY20

65. Slide 65: There is a gap between the credit rating and creditworthiness

    There is a gap between the credit rating and creditworthiness Continuing dialogue with credit rating agencies to obtain a fair evaluation Finance 33

66. Slide 66: LTV Management Policy

    LTV Management Policy Continue to leverage for NAV expansion Continue LTV management with a comfortable buffer, even after resuming investments 25% 25％ LTV To an appropriate level of leverage 14.7％ Average LTV over the past four years 10.6% 0% Sep Dec Mar Jun Sep Dec Mar Jun Sep 2021 2021 2022 2022

67. Slide 67: Adhering to Financial Policy

    Adhering to Financial Policy Maintain LTV below 25% in normal times 1 (upper threshold of 35% even in times of emergency) 2 Maintain at least 2-year worth of bond redemptions in cash Secure recurring distributions and dividend income from 3 SVF and other subsidiaries Finance 35

68. Slide 68: Our Policy on Supporting Portfolio Companies

    Adhering to Financial Policy Our Policy on Supporting Portfolio Companies Portfolio company finances to be No rescue self-financing package Finance 36

69. Slide 69: FY2023 Financial Strategy

    FY2023 Financial Strategy Financial management Adhering to adaptable to financial policy both Defense and Offence Finance 37

70. Slide 70: Respond to Both Defense and Offence

    Respond to Both Defense and Offence Invest in the Defense Information against further downside Revolution, while maintaining financial stability Maintain LTV below 25% in normal times （LTV = 10.6% as of Sep 30, 2023） Maintain at least 2-year worth of bond redemptions in cash （Cash position = ¥5.1T a

71. Slide 71: Capital Allocation

    Capital Allocation New Shareholders investments return* Endeavor to strike a Financial policy balance (Financial stability) * The level of NAV discount is also considered Finance 39

72. Slide 72: Appendix

    Appendix

73. Slide 73: Historical SBG Credit Rating

    Historical SBG Credit Rating Acquisition of Acquisition Acquisition Acquisition Listing A+ 14 Japan Telecom of Vodafone KK of Sprint of Arm of SBKK A 13 JCR(A-) A- 12 Outlook Stable BBB+ 11 (since Jan 2023) BBB10 S&P Downgrade BBB-9 （May 2023） S&P (BB) BB+ 8 Outlook Positive BB 7 (since Sep 2023) BB

74. Slide 74: SBG Credit Spread

    SBG Credit Spread Spread of SBG foreign currency- SBG 5-year CDS denominated senior notes 700 USD 1.2Y USD 2.7Y 500 bps bps SBG 5Y CDS (JPY) USD 4.7Y USD 7.7Y EUR 0.7Y EUR 3.2Y 450 600 EUR 5.7Y EUR 8.7Y 400 500 350 300 400 250 300 200 200 150 100 100 50 0 0 Dec 2022 Mar 2023 Jun 2023 Sep 2023 Dec 20

75. Slide 75: LTV Trend

    LTV Trend*1 Controlled within financial discipline Net of asset-backed finance 100％ LTV 35% (in times of emergency) 25% （in normal times） 18.7% 21.6% 20.4% *2 18.2% 10.6% 14.5% 15.0% 11.0% 8.0% Sep 21 Dec 21 Mar 22 Jun 22 Sep 22 Dec 22 Mar 23 Jun 23 Sep 23 *1 As of the end of each quarter *2 For det

76. Slide 76: Calculation of Equity Value of Holdings as of Sep 30, 2023

    Calculation of Equity Value of Holdings as of Sep 30, 2023 $1 = ¥149.58 ¥25.7T （unadjusted） Equity value of holdings Adjustment for (¥ T) Equity value of holdings ー ＝ asset-backed finance (adjusted) （unadjusted） Prepaid Forward Payable 923M Share price amount for Contracts, etc. 5.6 ¥4.3T ＝ ¥5.6T sh

77. Slide 77: LTV Calculation: SBG Stand-alone Equity Value of Holdings

    LTV Calculation: SBG Stand-alone Equity Value of Holdings (L) Adjusted ¥1.94T SBG stand-alone net debt =10.6% (V) Adjusted SBG stand-alone equity value of holdings*1 ¥18.35T (¥ T) Adjusted SBG Major SBG’s interest in Other investments = + + stand-alone equity value of holdings assets SVF1&2 & LatAm

78. Slide 78: LTV Calculation: Details of Equity Value of Holdings (1/2)

    LTV Calculation: Details of SBG Stand-alone Equity Value of Holdings (1/2) (¥ T) Assets Value Calculation method Alibaba 0.01 Multiplying the number of Alibaba ADSs equivalent to the number of shares held by SBG by the Before adjustment 4.60 ADS price Sum of the outstanding maturity settlement amoun

79. Slide 79: LTV Calculation: Details of 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 1.27 summing - Value of SBG’s shareholding (incl. the number of shares subject to call options held by Deutsche Telekom (DT): Before adjustment 1.70 34,971,809 shares as of S

80. Slide 80: LTV Calculation: SBG Stand-alone Net Debt

    LTV Calculation: SBG Stand-alone Net Debt (L) Adjusted SBG stand-alone net debt*1 ¥1.94T (V) Adjusted SBG stand-alone ¥18.35T =10.6% equity value of holdings (¥ T) Adjusted SBG Consolidated Net debt at self- Other stand-alone net debt = net debt - financing entities - adjustments 1.94 14.68 4.70 8.0

81. Slide 81: LTV Calculation: 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) 9.98 at self-financing entities*1 For hybrid bonds and hybrid loans with maturity dates, deduct 50% from interest-bearing debt; A

82. Slide 82: 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) 1 Forward/Collar/Put 2 Margin loan 25.7 transactions Main shares Alibaba SBKK, Arm used 1 5.6 Asset-backed fi

83. Slide 83: Beneficial Ownership of Alibaba Shares

    Beneficial Ownership of Alibaba Shares Fully monetized Alibaba shares through prepaid forward contracts Beneficial ownership 14.6% 13.5% 13.7% 13.8% 13.9% Used for prepaid forward contracts Sep 2022 *1 Dec 2022*2 Mar 2023*3 Jun 2023*4 Sep 2023*5 *1 Calculated based on 21,185,107,544 ordinary shares

84. Slide 84: Forward Transaction / Collar Transaction

    Forward Transaction / Collar Transaction Objective Non-recourse financing using derivatives • Transaction where parties agree to settle at a pre-specified price or price range at a specific date in the future • Finance through pledged shares and derivatives referencing them Outline • Settlement at m

85. Slide 85: 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 2022 Dec 2022 Mar 2023 Jun 2023 Sep 2023 SBG stand-alone 12,065.7 11,250.0 12,691.7 14,083.3 14,335.8 Incl. SB Northstar - - - - - SVF1&2 and LatAm Funds 1,481.1 1,319.9 1,322

86. Slide 86: SoftBank

    SoftBank

87. Slide 87: Investor Briefing: SoftBank Vision & LatAm Funds

    QUARTER ENDED SEPTEMBER 30, 2023 Investor Briefing SoftBank Vision & LatAm Funds NAVNEET GOVIL CFO, SB Investment Advisers & SB Global Advisers

88. Slide 88: Important Information (1 of 2)

    2 Important Information (1 of 2) This presentation (this “Presentation”) is furnished to you for informational purposes in connection with the interests of SoftBank Group Corp. (together with its affiliates, “SoftBank”) in SoftBank Vision Fund L.P. (together with, as the context may require, any par

89. Slide 89: Important Information (2 of 2)

    3 Important Information (2 of 2) Vision Fund I performance herein is based on unrealized valuations of portfolio investments. Valuations of unrealized investments are based on assumptions and factors (including, for example, as of the date of the valuation, average multiples of comparable companies,

90. Slide 90: Topics

    4 Topics 01- Progress & Highlights 02- Performance & Impact on SoftBank Group (SBG) 03- In Focus: Driving Future Success

91. Slide 91: Progress & Highlights

    5 Progress & Highlights

92. Slide 92: Arm & the AI Revolution

    SVF1 6 PROGRESS & HIGHLIGHTS September 2016 $8.2B Arm & the AI SBG Investment Date1 SVF1 Acquisition Cost2 Revolution 25% IN G SVF1 Ownership E ST “ Stake1 V IN V AL UE CREATIO We have long admired Arm as a world-renowned and highly respected technology company Vision Fund 1 that is by some distance

93. Slide 93: AI Runs on Arm

    SVF1 PROGRESS & HIGHLIGHTS 7 AI Runs on Arm As of September 30, 2023 KEY SEGMENTS & 2022 MARKET SHARE 1 NG Mobile IoT Automotive Cloud TI ES Higher smartphone Continued expansion Providing the brains Performance-optimized V V compute tailwind for into consumer and for demanding CPUs driving growth I

94. Slide 94: Fifth Largest US Technology IPO of All Time

    SVF1 PROGRESS & HIGHLIGHTS 8 Fifth Largest US Technology IPO of All Time1 As of September 30, 2023 LISTING HIGHLIGHTS 4 $65B $52B ING ES T $32B V V IN SVF1 AL Monetization 2 UE C $8.6B Gross Gain REAT Acquisition IPO Day 1 Close Cost Valuation Market Cap 2.0x Gross MOIC3 IO MO N E N TI STRATEGIC IPO

95. Slide 95: Listings Since Inception, with a Significant Late-Stage Pipeline

    SVF1 SVF2 LATAM PROGRESS & HIGHLIGHTS 9 50 Listings Since Inception, with a Significant Late-Stage Pipeline As of September 30, 2023 PUBLIC LISTINGS SINCE INCEPTION1 LATE-STAGE PORTFOLIO2 $29B+ Late-Stage Portfolio Company Holdings SVF1 Total Fair Value SELECT PORTFOLIO COMPANIES SVF1 BEIKE SVF2 SVF

96. Slide 96: SVF1 Liquidity Profile Strengthened by Arm Transaction

    10 Total Fair Value Private1 Exited & Public2 (Realized & Unrealized) SVF1 PROGRESS & HIGHLIGHTS 24% SVF1 Liquidity 37% Profile Strengthened by Arm Transaction 63% 76% As of September 30, 2023 June 2023 September 2023 Footnotes: 1. Private Fair Value represents the fair value of Unrealized Investmen

97. Slide 97: Performance Snapshot

    SVF1 SVF2 LATAM 11 SoftBank SoftBank SoftBank Vision Fund 1 Vision Fund 2 LatAm Funds Combined Total Commitments1 $98.6B $60.0B $7.6B $166.2B PROGRESS & HIGHLIGHTS Performance Acquisition Cost2 $87.8B $51.8B $7.4B $147.0B Snapshot Cumulative Gross $16.8B $(21.4B) $(1.4B) $(6.0B) Investment Gains/(Lo

98. Slide 98: Quarterly Performance

    SVF1 SVF2 LATAM 12 QUARTERLY FAIR VALUE PERFORMANCE 1 +$0.3B +$2.5B -$2.1B -$0.1B PROGRESS & HIGHLIGHTS COMBINED SVF1 SVF2 LATAM Quarterly Performance PERFORMANCE DRIVERS As of September 30, 2023 Elevated rate environment continues to drive market volatility SVF1 gain primarily driven by Arm transac

99. Slide 99: Distributions to Limited Partners

    SVF1 PROGRESS & HIGHLIGHTS 13 Distributions to Limited Partners Since Inception to September 30, 2023 Total Distributions (A) (B) (C) (D) (E) = (B)-(C) Fund Drawn Return of Pref Coupon / 3 Outstanding 2 Commitment Capital 1 Capital Equity Gains 4 Capital Preferred Equity $40.0B $36.2B $19.7B $7.9B $

100. Slide 100: Deleveraging and Managing Risk

     SVF1 SVF2 LATAM 14 LOAN PRINCIPAL BY FUND1 TOTAL $9.9B PROGRESS & HIGHLIGHTS SVF1 Deleveraging and $4.1B Managing Risk TOTAL As of September 30, 2023 $3.6B SVF2 SVF2 $5.8B $3.6B June 30, 2023 September 30, 2023 Footnotes: 1. Represents the total outstanding loan principal balance of SoftBank Vision

101. Slide 101: Performance & Impact on SoftBank Group (SBG)

     15 Performance & Impact on SoftBank Group (SBG)

102. Slide 102: SVF1 Contribution to SBG, Net of 3rd Party Interests

     16 SVF1 2023 Inception to Sept 30 SVF1 Fund Net Profit2 $5.1 PERFORMANCE & IMPACT ON SBG Less: Change in 3rd Party Contribution to Interests in Fund (2.7) SBG, Net of 3rd SBG LP Income: 2.4 Share of Fund Net Profit Party Interests1,3 SBG GP Income: Amounts in USD Billions 1.1 Management & Performanc

103. Slide 103: SVF1 Contribution to SBG

     17 SBG Paid-In Capital1 $27.7B SVF1 PERFORMANCE & IMPACT ON SBG Contribution to SBG SBG Total Value2 As of September 30, 2023 $20.4B $30.1B Net Asset Value3 Distributions4 $9.7B Footnotes: 1. SBG Paid-In Capital represents SBG Commitment drawn down through capital calls less Return of Recallable unu

104. Slide 104: SVF2 Contribution to SBG

     18 SBG Paid-In Capital1 $53.4B SVF2 PERFORMANCE & IMPACT ON SBG Contribution to SBG SBG Total Value2 As of September 30, 2023 $23.4B $32.4B Net Asset Value3 Distributions4 $9.0B Footnotes: 1. SBG Paid-In Capital represents SBG Commitment drawn down through capital calls less Return of Recallable unu

105. Slide 105: LatAm Contribution to SBG

     19 SBG Paid-In Capital1 $7.0B LATAM PERFORMANCE & IMPACT ON SBG Contribution to SBG SBG Total Value2 As of September 30, 2023 $5.6B $5.7B Net Asset Value3 Distributions4 $0.1B Footnotes: 1. SBG Paid-In Capital represents SBG Commitment drawn down through capital calls less Return of Recallable unuti

106. Slide 106: In Focus: Driving Future Success

     20 In Focus: Driving Future Success

107. Slide 107: Our Platform

     SVF1 SVF2 LATAM DRIVING FUTURE SUCCESS 21 Our Platform As of September 30, 2023 SVF1 SVF2 LATAM Total # of Total # of Total # of Total Number of Investments1 Investments1 94 Investments1 276 Investments1 105 475 Total Fair Value2 $104.6B Total Fair Value2 $30.5B Total Fair Value2 $5.9B Total Fair Va

108. Slide 108: Unlocking Portfolio Value Across Our Platform

     SVF1 SVF2 LATAM DRIVING FUTURE SUCCESS 22 Unlocking Portfolio Value Across Our Platform As of September 30, 2023 PORTFOLIO HIGHLIGHTS 50 $29B+ 1.8x $43.9B Public Listings Value of Late-Stage Gross MOIC, Value of Top 25 Since Inception1 Portfolio2 Realized Investments3 Investments4 Footnotes: 1. List

109. Slide 109: Disciplined Monetization Strategy

     SVF1 SVF2 LATAM DRIVING FUTURE SUCCESS 23 Disciplined Monetization Strategy As of September 30, 2023 LARGEST FULL EXITS BY GROSS PROCEEDS 1 BEIKE $16.9B $9.2B $5.8B $3.9B2 $2.7B $2.5B $2.4B $2.3B $1.0B 1.8x 3 Gross MOIC Footnotes: 1. Represents top full Monetizations by Gross Realized Proceeds acros

110. Slide 110: Our Largest Investments

     SVF1 SVF2 LATAM DRIVING FUTURE SUCCESS 24 Our Largest Investments Largest Private & Public Investments by Fair Value | As of September 30, 2023 KEY METRICS $43.9B 57% $15.8B Fair Value – Largest Investments1 % of Total Portfolio Fair Value2 Cumulative Gross Gain Since Inception3 TOP 15 PRIVATE PORTF

111. Slide 111: Driving Future Success

     SVF1 SVF2 LATAM DRIVING FUTURE SUCCESS 25 Driving Future Success KEY INVESTMENT THEMES AI Strong Strength of Sustainable Leadership Product-Market Execution Financial Fit Performance Consumer Edtech Enterprise Fintech Frontier Tech Health Tech Logistics Proptech Transportation The information herein

112. Slide 112: AI Leadership

     SVF1 SVF2 LATAM AI LEADERSHIP DRIVING FUTURE SUCCESS 26 AI Leadership As of September 30, 2023 IM PA CT OF A I A DOPTION Deploys AI algorithms to power the delivery Uses generative AI techniques to build Projected Global GDP Uplift1 of personalized content to ~2B monthly active products and services

113. Slide 113: Strong Product-Market Fit

     SVF1 SVF2 LATAM STRONG PRODUCT- MARKET FIT DRIVING FUTURE SUCCESS 27 Strong Product-Market Fit As of September 30, 2023 Digital Payments Raw Material Market in Japan Market in India Tech-enabled platform facilitating raw Smartphone-powered digital payments material procurement and credit for SMEs To

114. Slide 114: Strength of Execution

     SVF1 SVF2 LATAM STRENGTH OF EXECUTION DRIVING FUTURE SUCCESS 28 Strength of Execution As of September 30, 2023 Expanding into new verticals through acquisitions and forming SELECT GROWTH STRATEGIES partnerships to enhance growth in existing business lines Innovation of new & existing products to exp

115. Slide 115: Sustainable Financial Performance

     SVF1 SVF2 LATAM SUSTAINABLE FINANCIAL DRIVING FUTURE SUCCESS PERFORMANCE 29 Sustainable Financial Performance Top 10 Public Investments by Fair Value | As of September 30, 2023 NTM CONSENSUS CURRENT PEAK INVESTMENT FAIR VALUE ($B)3 REVENUE GROWTH4 MARKET CAP ($B)5 MARKET CAP ($B)6 2023 METRIC IMPROV

116. Slide 116: Looking Ahead

     SVF1 SVF2 LATAM DRIVING FUTURE SUCCESS 30 Looking Ahead As of September 30, 2023 SELECT INVESTMENT THEMES DRIVING FUTURE SUCCESS AI Leadership Strong Product-Market Fit Strength of Execution Sustainable Financial Performance PORTFOLIO HIGHLIGHTS $29B+ $43.9B 475 Value of Late-Stage Portfolio1 Value

117. Slide 117: Thank You

     31 Thank You SoftBank Vision & LatAm Funds Investor Briefing Presentations Available at visionfund.com/presentations

118. Slide 118: SoftBank

     SoftBank

119. Slide 119: Arm Holdings plc SoftBank Investor Briefing

     Arm Holdings plc SoftBank Investor Briefing Ian Thornton, Head of Investor Relations investor.relations@arm.com https://investors.arm.com November 2023 © 2023 Arm

120. Slide 120: © 2023 Arm

     Peres Lt! 0.20 $174.01 Nasdaq100 027 $96.66 Nasdaqi00 40.31 SU5.16

121. Slide 121: Nomenclature difference between Arm and SoftBank Group

     Nomenclature difference between Arm and SoftBank Group Fiscal year ending March 31, 2024 Fiscal year ending March 31, 2024 FY2023 FYE24 3 © 2023 Arm

122. Slide 122: From Revenues to Profits to Cash

     From Revenues to Profits to Cash (based on Q2 FYE24 results) 97% 47% 21% NG GP Margin Non-GAAP Revenue Operating to Cash $806m $26m $780m $399m Margin Conversion Royalty Revenue $1,180m $381m License $595m Data from Revenue Q2 FYE24 $169m Revenue Non-GAAP Non-GAAP Non-GAAP Non-GAAP Non-GAAP1 Cost of

123. Slide 123: Annualized Contract Value

     Annualized Contract Value Annualized contract value (ACV) smooths out license revenue, which can be highly variable from quarter to quarter $450m $1,200m Annualized Contract Value ($) $1,080m $1,108m $1,030m $1,052m $1,030m $1,048m $400m $1,009m $388m $1,000m $350m License revenue ($) $300m $800m $2

124. Slide 124: Semiconductor industry recovering after inventory correction

     Semiconductor industry recovering after inventory correction Semiconductor industry recovering with consumer spending Smartphone sales up 7% sequentially, PC sales up 8% sequentially $25bn 40% 28% 28% 28% 28% 30% 26% 24% 25% $20bn 26% 20% 24% 24% 22% 19% 20% 17% 15% 17% 16% 15% 15% 14% 13% 10% 12% 1

125. Slide 125: AI is being designed into every end product

     AI AI is being designed into every end product. From servers to sensors Arm announced new products and partnerships to accelerate Cloud time to market for new server chips Auto Renesas and NXP both announced new automotive product families Google new Generative AI model optimized for Arm’s latest Mo

126. Slide 126: Guidance

     Guidance Arm has good visibility of its licensing pipeline although timing, deal size, etc. can change Analysts forecast that the semiconductor industry will continue to recover although trajectory is unclear Q3 FYE 24 FYE 24 Revenue ($m) $720m - $800m $2,960m - $3,080m Non-GAAP Operating Expense ($

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