Softbank Group Corp. · TSE:9984
Softbank — Q3 FY2019 Earnings Presentation
27 slides from Softbank's earnings presentation, February 2020
Slide 1: SoftBank Vision Fund I Update
QUARTER ENDED DECEMBER 31, 2019 SoftBank Vision Fund I Update NAVNEET GOVIL Managing Partner & Chief Financial Officer SoftBank Investment Advisers
Slide 2: 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
Slide 3: 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,
Slide 4: Topics
4 Topics 01- Progress & Highlights 02- Performance & Impact on SoftBank Group 03- In Focus: Valuations Update
Slide 5: Progress & Highlights
Progress & Highlights Investment Advisers
Slide 6: Key Developments
6 Investments Funded1 Acquisition Cost2 Recent IPOs3 PROGRESS & HIGHLIGHTS Key Developments Three-Month Period Ended 21 $4.2B December 31, 2019 Footnotes: 1. Investments Funded include follow-on investments and subsequent tranches of funding in Vision Fund I’s existing portfolio companies. 2. Acquis
Slide 7: SoftBank Vision Fund I: Snapshot
7 SoftBank SoftBank Vision Fund I Group Total Commitment Total Commitment $98.6B $28.1 B PROGRESS & HIGHLIGHTS Acquisition Cost1 SBG Paid-In Capital SoftBank $80.5B $22.9B Vision Fund I: Cumulative Investment Gains1 SBG Total Value3 Snapshot $9.5B $25.6B As of December 31, 2019 Distributions2 SBG Di
Slide 8: Growth of our Portfolio: Vision Fund I
8 91 INVESTMENTS 1 ,2 Cumulative $9.5B Investment Gains1 PROGRESS & HIGHLIGHTS 56 INVESTMENTS 1 ,2 Growth of $12.9B our Portfolio: $80.5B Acquisition Vision Fund I Cost1,2 $46.7B Dec 31, 2018 Dec 31, 2019 Footnotes: 1. Acquisition Cost, Number of Investments, and Cumulative Investment Gains are cumu
Slide 9: Growing Portfolio of Market Leaders
PROGRESS & HIGHLIGHTS 9 Growing Portfolio of Market Leaders As of December 31, 2019 Investments included herein were held by Vision Fund I as of December 31, 2019. The investments presented herein are solely for illustrative purposes, have been selected in order to demonstrate examples of Vision Fun
Slide 10: Portfolio Composition By Sector
PROGRESS & HIGHLIGHTS 10 Portfolio Composition By Sector As of December 31, 2019 Frontier Health Real Transportation Consumer Enterprise Fintech Tech Tech Estate & Logistics 19% 4% 7% 14% 6% 10% 40% COST $10.8B $2.5B $4.9B $10.8B $2.7B $10.1B $33.0B FAIR VALUE $15.4B $3.5B $5.6B $11.0B $4.8B $7.9B $
Slide 11: Portfolio Composition By Geography and Sector: Americas
PROGRESS & HIGHLIGHTS 11 Portfolio Composition By Geography and Sector As of December 31, 2019 Transportation Frontier Tech Health Tech Enterprise & Logistics Consumer Real Estate Fintech Americas 38% Information herein is presented solely for Vision Fund I and does not include investments in Flipka
Slide 12: Portfolio Composition By Geography and Sector: EMEA, Asia
PROGRESS & HIGHLIGHTS 12 Portfolio Composition By Geography and Sector As of December 31, 2019 Transportation & Consumer Transportation Logistics & Logistics Consumer Real Estate Enterprise Fintech Real Estate Fintech EMEA Asia Frontier Tech Health Tech 14% 48% Information herein is presented solely
Slide 13: Public Listings Since Inception
PROGRESS & HIGHLIGHTS 13 8 Public Listings Since Inception As of December 31, 2019 NASDAQ: GH HKG: 1833 NYSE: WORK NASDAQ: TXG STOCK PRICE1 $78.14 $56.85 HKD $22.48 $76.25 GROSS 7.1x 1.2x 2.5x 9.4x MOIC2 NYSE: UBER NASDAQ: VIR HKG: 6060 NYSE: OCFT STOCK PRICE1 $29.74 $12.58 $28.10 HKD $10.03 GROSS 0
Slide 14: Performance & Impact on SoftBank Group
14 Performance & Impact on SoftBank Group
Slide 15: Nine-Month Contribution to SBG
15 Nine-Month 2018 2019 Period Ended December 31 December 31 Fund Net Profit (Loss)2 $6.49 $(6.20) PERFORMANCE & IMPACT ON SBG Less: Change in third party Contribution to interests in funds (4.43) 3.28 SBG, Net of 3rd SBG LP Income (Loss): $2.06 $(2.92) Share of Fund Net Profit (Loss) Party Interest
Slide 16: Fund Inception to Date Contribution to SBG
16 Fund 2019 Inception to December 31 Fund Net Profit2 $4.60 PERFORMANCE & IMPACT ON SBG Less: Change in third party Contribution to interests in funds (2.34) SBG, Net of 3rd SBG LP Income: $2.26 Share of Fund Net Profit Party Interests1 SBG GP Income: Amounts in USD Billions 0.72 Management Fees &
Slide 17: Total Value Contribution to SBG, Realized and Unrealized
17 Total Value PERFORMANCE & IMPACT ON SBG Paid-In Capital $25.6B Contribution to $22.9B SBG, Realized and Unrealized Values As of December 31, 2019 Net Asset Value1 Distributions2 Performance (Unrealized Value) (Realized Value) Fees3 $23.5B $1.7B $0.4B Footnotes: 1. Net Asset Value includes net cha
Slide 18: In Focus: Valuations Update
18 In Focus: Valuations Update
Slide 19: Vision Fund I: Measurable Value in Our Portfolio
IN FOCUS: VALUATIONS UPDATE 19 Vision Fund I: Measurable Value in Our Portfolio As of December 31, 2019 Realized Investments Unrealized Investments Gross Realized Gains1 Total Acquisition Cost1 Gross Unrealized Gains1,3 Total Fair Market Value1,3 $4.5B $74.8B $5.0B $79.8B Number of Portfolio Compani
Slide 20: Measurable Value in Our Portfolio (Year-over-Year)
IN FOCUS: VALUATIONS UPDATE 20 Vision Fund I: Measurable Value in Our Portfolio (Year-over-Year) Public Investment Value1 Private Investment Value1 $73.2B Cumulative $5.2B Investment Gains2 $52.4B $9.8B Acquisition $68.0B $16.8B Cost2 Cumulative $4.3B Investment $42.6B $7.2B Gains2 $12.5B Acquisitio
Slide 21: Portfolio Fair Value Changes
21 No. of Portfolio Companies1 Since Inception Three-Months Ended IN FOCUS: VALUATIONS UPDATE Portfolio Fair Value With Uplifts2,3 38 22 Changes As of December 31, 2019 With Writedowns2,3 31 27 Footnotes: 1. No. of Portfolio Companies with Uplifts and with Write Downs include Flipkart and Nvidia whi
Slide 22: Quarterly Valuation Process
IN FOCUS: VALUATIONS UPDATE 22 Quarterly Valuation Process 6-Week Parallel Workflows Between SBIA Valuations Team and Independent Valuers 1 Valuation Results for Vision Fund I Quarterly SBIA Valuation Process As of December 31, 2019 Management Calls Financial Model Independent Valuer Range1 Data wit
Slide 23: Triangulation of Valuation Methodologies
23 Income Approach Fundamental Analysis Discounted Cash Flows IN FOCUS: VALUATIONS UPDATE Triangulation of Valuation Valuation Methodologies Methodologies Market Approach Recent Transaction Comparable Company Multiples Approach Guideline Company Transactions Follow-On Rounds of Financing Footnotes:
Slide 24: Valuations Validated by Participating Co-Investors
24 IN FOCUS: VALUATIONS UPDATE 130+ Participating1 Co-Investors 96% at Same Valuations Validated or Higher Valuations by Participating Co-Investors 91 Initial 48 Follow-On Since Inception to Investments Rounds December 31, 2019 Footnotes: 1. Participating co-investors includes both institutional and
Slide 25: Examples of Third-Party Validation
IN FOCUS: VALUATIONS UPDATE 25 Examples of Third-Party Validation Pre-Money Valuations $15.0B $12.0B Series G Series G $10.0B $6.7B Series F Series F1 $3.8B $6.0B Series E Series F $0.9B Series D 2017 2018 2019 2018 2018 2019 2019 Sep Sep Nov Apr Aug Feb May Information is provided solely for illust
Slide 26: Wrap-Up
26 Wrap-Up 01- Progress & Highlights 02- Performance & Impact on SoftBank Group 03- In Focus: Valuations Update
Slide 27: Thank You
Thank You == SoftBank Investment Advisers