Softbank Group Corp. · TSE:9984
Softbank — FY2020 Earnings Presentation
113 slides from Softbank's earnings presentation, May 12, 2021
Slide 1: Earnings Results for the Fiscal Year ended March 31, 2021
Earnings Results for the Fiscal Year ended March 31, 2021 May 12, 2021
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: Photo source: Nishi-Nippon Railroad Co., Ltd.
Photo source: Nishi-Nippon Railroad Co., Ltd. 2
Slide 4: Founding of SOFTBANK Zasshonokuma, 1981
1981 Founding of SOFTBANK Zasshonokuma Zasshonokuma No.2 level crossing (Minami-Fukuoka station front line), Dec. 1981, Photo source: Nishi-Nippon Railroad Co., Ltd. 3
Slide 5: Net Income JPY 4.99t
(USD 47.0bn) Net Income JPY 4.99t (Founded) 1981 ’84 ’87 ’90 ’93 ’96 '99 '02 '05 '08 '11 '14 '17 '20 (FY) USD 1 = JPY 106.17 (average rate during Apr. 2020-Mar. 2021) Prior to FY2011: JGAAP. Since FY2012: IFRS, net income attributable to owners of the parent 4
Slide 6: Net Income JPY 4.99t
(USD 47.0bn) Net Income JPY 4.99t (Founded) 1981 ’84 ’87 ’90 ’93 ’96 '99 '02 '05 '08 '11 '14 '17 '20 (FY) Photo source: Nishi-Nippon Railroad Co., Ltd. USD 1 = JPY 106.17 (average rate during Apr. 2020-Mar. 2021) Prior to FY2011: JGAAP. Since FY2012: IFRS, net income attributable to owners of the pa
Slide 7: Evaluation by Investors
Evaluation by Investors 6
Slide 8: Evaluation by Investors
Evaluation by Investors One-time gain from Sprint 7
Slide 9: Evaluation by Investors
Evaluation by Investors One-time gain Global stock from Sprint market rally 8
Slide 10: Evaluation by Investors: Only one-time?
Evaluation by Investors One-time gain Global stock Large scale from Sprint market rally IPOs Only one-time? 9
Slide 11: Many Regrets
Many Regrets 10
Slide 12: Many Regrets
Many Regrets Failed investments 11
Slide 13: Many Regrets
Many Regrets Missed Failed investment investments opportunities 12
Slide 14: Many Regrets: Issues to be addressed sincerely
Many Regrets Missed Lack of Failed investment systematic investments opportunities approach Issues to be addressed sincerely 13
Slide 15: One-time gain: Investment company
Investment company One-time gain The slides presented herein are solely for illustrative purposes to provide an example of SBG's overall strategy for the future. Nothing contained herein should be relied upon as a promise or representation as to future performance of SBG. 14
Slide 16: One-time gain vs Recurring gains
Investment company Producer of golden eggs One-time gain Recurring gains The slides presented herein are solely for illustrative purposes to provide an example of SBG's overall strategy for the future. Nothing contained herein should be relied upon as a promise or representation as to future perform
Slide 17: Producer of golden eggs
Producer of golden eggs Discovery and analysis The slides presented herein are solely for illustrative purposes to provide an example of SBG's overall strategy for the future. Nothing contained herein should be relied upon as a promise or representation as to future performance of SBG. 16
Slide 18: Producer of golden eggs
Producer of golden eggs Discovery Strengthen and analysis organization The slides presented herein are solely for illustrative purposes to provide an example of SBG's overall strategy for the future. Nothing contained herein should be relied upon as a promise or representation as to future performan
Slide 19: Producer of golden eggs
Producer of golden eggs Discovery Strengthen Financing and analysis organization Build system to generate recurring gains The slides presented herein are solely for illustrative purposes to provide an example of SBG's overall strategy for the future. Nothing contained herein should be relied upon as
Slide 20: Producer of Golden Eggs
— SoftBank Producer of Golden Eggs
Slide 21: Consolidated Results
Consolidated Results 20
Slide 22: NAV (Net Asset Value) USD 236bn
NAV (Net Asset Value) USD 236bn USD 200bn YoY USD +36bn Mar. 31, 2020 Mar. 31, 2021 Share price: closing price as of Mar. 31, 2021 (Japan and U.S.) For details, see “Definition and Calculation Method of SBG’s Sum-of-the-parts Valuation (as of Mar. 31, 2021)” 21
Slide 23: NAV (Net Asset Value) USD 236bn
NAV (Net Asset Value) USD 236bn (Mar. 31, 2021) ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 ’19 ’20 (FY) Share price: closing price as of Mar. 31, 2021 (Japan and U.S.) 22
Slide 24: NAV (Net Asset Value) USD 236bn
NAV (Net Asset Value) USD 236bn (Mar. 31, 2021) 43% SVF1+SVF2 25% Others (SBKK, Sprint/T-Mobile, Arm, Listed stocks, etc.) 32% ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 ’19 ’20 (FY) SBKK refers to SoftBank Corp. (and hereinafter) Each percentage is the propo
Slide 25: LTV (Net Debt / Equity Value of Holdings)
LTV (Net Debt / Equity Value of Holdings) USD 269bn 12% Manage LTV below 25% in normal times USD 34bn Equity value Net debt of holdings Share price: closing price as of Mar. 31, 2021 (Japan and U.S.) For details, see “Definition and Calculation Method of SBG’s Sum-of-the-parts Valuation (as of Mar.
Slide 26: Share Repurchase Max. JPY 2.5t
Share Repurchase Max. JPY 2.5t Max. JPY 2.5t: The total of the share repurchase program (up to JPY 500bn) resolved by the Board of Directors on Mar. 13, 2020 and the share repurchase program (up to JPY 2t), which was mentioned in the JPY 4.5 Trillion Program announced on Mar. 23, 2020 and subsequent
Slide 27: Share Repurchase: To retire JPY 2.5t of treasury stock
Share Repurchase Max. JPY 2.5t To retire JPY 2.5t of treasury stock Repurchased JPY 2.5t (Avg. repurchased price JPY 6,815) Repurchased JPY 2.5t: The total amount of share repurchases from Mar. 16, 2020 to May 12, 2021 as stated in the press release dated May 12, 2021, "Status and Completion of Shar
Slide 28: Share price JPY 9,330
JPY 9,330 (Share price as of Mar. 31, 2021) • Earnings: net income attributable to owners of the parent • NAV per share and Earnings per share: dividing NAV as of Mar. 31, 2021 and earnings for FY2020, respectively, by the total number of shares outstanding (excluding treasury stock) after consideri
Slide 29: Earnings per share JPY 2,869
JPY 9,330 (Share price as of Mar. 31, 2021) JPY 2,869 Earnings per share • Earnings: net income attributable to owners of the parent • NAV per share and Earnings per share: dividing NAV as of Mar. 31, 2021 and earnings for FY2020, respectively, by the total number of shares outstanding (excluding tr
Slide 30: NAV per share JPY 15,015
JPY 15,015 JPY 9,330 (Share price as of Mar. 31, 2021) JPY 2,869 Earnings per share NAV per share • Earnings: net income attributable to owners of the parent • NAV per share and Earnings per share: dividing NAV as of Mar. 31, 2021 and earnings for FY2020, respectively, by the total number of shares
Slide 31: SoftBank Vision Fund
SoftBank Vision Fund SoftBank Vision Fund: SVF1 and Other SBIA-Managed Funds Segment 30
Slide 32: Gain and Loss on Investments (Quarterly)
Gain and Loss on Investments (Quarterly) (SVF Segment on a SBG Consolidated Basis) (JPY bn) 3,590.2 1,355.7 1,115.0 519.8 From the first quarter of FY2020, “operating income” will no longer be presented in the consolidated statement 392.0 414.4 of income. Instead, “gain on investments” will be used
Slide 33: Gain and Loss on Investments (12-month Cumulative)
Gain and Loss on Investments (12-month Cumulative) (SVF Segment on a SBG Consolidated Basis) JPY 6,357.5bn JPY 1,480.2bn From the first quarter of FY2020, “operating income” will no longer be presented in the consolidated statement of income. Instead, “gain on investments” will be used in order to s
Slide 34: SVF1 Investment: Coupang
SVF1 Investment Investment Results for Coupang (as of Mar. 31, 2021) IPO on Mar. 11, 2021 USD 28,039m Korea’s No.1 E-commerce company * 10.3x *Korea’s No.1 E-commerce company in the number of E-commerce app users: (Source) Mobile Index Insight report of 2020 Korea mobile app landscape, dated Jan. 20
Slide 35: SVF1 Investment: View
SVF1 Investment Listed on Mar. 9, 2021 Investment Results for View (as of Mar. 31, 2021) (SPAC merger*) USD 1,175m Smart windows for smart buildings 0.4x USD 490m *View merged with CF Finance Acquisition Corp.Ⅱ on Mar. 8, 2021, and began trading on Nasdaq on Mar. 9, 2021 under the new ticker symbol
Slide 36: SVF1 Investment: Compass
SVF1 Investment Investment Results for Compass (as of May 11, 2021) IPO on Apr. 1, 2021 USD 2,042m Leading end-to-end agent platform for US residential transactions 1.9x USD 1,082m Because Compass was a private company as of Mar. 31, 2021, the investment results shown are the latest performance at t
Slide 37: SVF1 Investment: Zymergen
SVF1 Investment Investment Results for Zymergen (as of May 11, 2021) IPO on Apr. 22, 2021 USD 910m Innovative material development utilizing A I 2.3x USD 404m Because Zymergen was a private company as of Mar. 31, 2021, the investment results shown are the latest performance at the SBG earnings prese
Slide 38: SVF1 and SVF2 Listed Portfolio Companies (1/2)
SVF1 Listed Portfolio Companies (1/2) SVF2 Listed Portfolio Companies (1/2) 150 (USD bn) 150 (USD bn) $80.3bn SVF1 private companies, etc. (from SVF1 inception to Mar. 31, 2021) $70.1bn $60.4bn SVF1 listed companies (from SVF1 inception to Mar. 31, 2021) SVF2 private companies 0 $15.7bn 0 $5.1bn $5.
Slide 39: SVF1 and SVF2 Listed Portfolio Companies (2/2)
SVF1 Listed Portfolio Companies (2/2) SVF2 Listed Portfolio Companies (2/2) 65 (USD bn) SVF1 listed companies 65 (USD bn) $60.4bn (from SVF1 inception to Mar. 31, 2021) $0.5bn $0.4bn View ZhongAn $0.1bn OneConnect $0.3bn 10x Genomics $0.8bn Ping An Good Doctor $1.0bn Relay Therapeutics $1.0bn Slack
Slide 40: Commitment Structure of SVF1
Commitment Structure of SVF1 (as of May 11, 2021) USD 98.6bn Preferred Equity Other LPs 7% fixed distribution USD 40.0bn Other LPs Equity Performance-based USD 58.6bn SBG distribution USD 28.1bn * 48% of equity Fixed distribution is subject to the terms and conditions of the SVF1 Limited Partnership
Slide 41: SoftBank Vision Fund 1: Net IRR
SoftBank Vision Fund 1 (Inception to March 31, 2021) (Entire Fund) LP Net Equity LP Net Preferred LP Net Blended IRR Equity IRR IRR 30% 7% 22% <Valuation Process> SBIA is responsible for determining fair values of the investments in SVF1 on a quarterly basis in line with the requirements of the AIFM
Slide 42: SoftBank Vision Fund 1: Net Equity IRR
SoftBank Vision Fund 1 (Inception to March 31, 2021) (SBG (LP) + Manager’s performance fee) Net Equity IRR <Valuation Process> 39% SBIA is responsible for determining fair values of the investments in SVF1 on a quarterly basis in line with the requirements of the AIFM Directive (as issued by the FCA
Slide 43: Commitment Structure of SVF2
Commitment Structure of SVF2 (as of May 11, 2021) USD 30.0bn Equity SBG is SBG the only LP The information included herein is made for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy limited partnership interests in any fund, including SVF2.
Slide 44: SoftBank Vision Fund 2: Net Equity IRR
SoftBank Vision Fund 2 (Inception to March 31, 2021) (SBG (LP) + Manager’s performance fee) Net Equity IRR 119% <Valuation Process> SBIA is responsible for determining fair values of the investments in SVF2 on a quarterly basis in line with the requirements of the AIFM Directive (as issued by the FC
Slide 45: SoftBank Vision Fund 1+2: Net Equity IRR
SoftBank Vision Fund 1+2 (Inception to March 31, 2021) (SBG (LP) + Manager’s performance fee) Net Equity IRR <Valuation Process> 43% SBIA is responsible for determining fair values of the investments in SVF1 and SVF2 (together, the “Funds”) on a quarterly basis in line with the requirements of the A
Slide 46: LatAm Fund
LatAm Fund 45
Slide 47: SoftBank Latin America Fund Investment Highlights
SoftBank Latin America Fund Investment Highlights (as of Mar. 31, 2021) USD 4.0bn USD +1.4bn USD 2.6bn (from LatAm Fund inception in Oct. 2019 to Mar. 2021) Investment Cost Fair value The inception date of LatAm Fund (Oct. 2019) is based on the date that the Limited Partnership Agreement (LPA) and I
Slide 48: Top 10 Unicorn Companies in Latin America
The comparables provided herein were selected by SBLA for illustrative purposes because SBLA believes that they present the most direct comparables in the industry within the relevant time period. Selection of such Top 10 Unicorn Companies in Latin America criteria is inherently subjective and other
Slide 49: Commitment Structure of SoftBank Latin America Fund
Commitment Structure of SoftBank Latin America Fund (as of Mar. 31, 2021) USD 5.0bn Equity SBG SBG is the only LP The information included herein is provided for illustrative purposes only to reflect the commitment structure and equity composition of the LatAm fund as of March 31, 2021. None of SBG,
Slide 50: SoftBank Latin America Fund Net Equity IRR
SoftBank Latin America Fund (Inception to March 31, 2021) (SBG (LP) + Manager’s performance fee) Net Equity IRR 62% Net Equity IRR means the internal rate of return of Class A Equity Interests after taking account managed fees, performance fees (carried interest), operational expenses, organizationa
Slide 51: The A I Revolution has just begun
The A I Revolution has just begun 50
Slide 52: Keys to the A I Revolution: Evolution of Computing
Keys to the A I Revolution Evolution of Computing 51
Slide 53: GPU Performance
GPU Performance (throughput for top HPC apps) (Assume throughput in 2016 as 1) 13x 9x 13x in 5 years 4x 3x 2x 1x 2016 2017 2018 2019 2020 2021 *GPU Performance Geometric mean of application speedups measured by multiple (P100) (V100) (V100) (V100) (A100) (A100) Benchmark applications, assume through
Slide 54: Operation Speed of Autonomous Vehicle Processors
Operation Speed of Autonomous Vehicle Processors (Assume operation speed in 2018 as 1) 1,000 Aim 1,000x in 6 years 254 1 30 2018 2020 2022 2024 (Parker) (Xavier) (Orin) (Atlan) Third-party logos included herein are provided for illustrative purposes only. Inclusion of such logos does not imply affil
Slide 55: Training Time
Training Time (time required to fine-tune a 1 trillion parameter model) 30 days NVIDIA’s first Arm-based data center CPU 1/10 Grace 3 days Traditional CPU (X86) Grace CPU *Training time Comparison of fine-tuning training time of 1T parameter model + A100 GPU + A100 GPU between the Traditional CPU+GP
Slide 56: A I is disrupting every industry
A I is disrupting every industry 55
Slide 57: SoftBank Vision Fund 1, 2 + LatAm Fund: 224 total companies
SoftBank Vision Fund 1, 2 + LatAm Fund 224 total companies (incl. 30 companies post investment committee approval but pre investment closing) SoftBank Vision Fund 1 advised by SBIA SoftBank Vision Fund 2 advised by SBIA SoftBank Latin America Fund advised (95 total companies: 44 portfolio companies
Slide 58: A I × Delivery
SVF1 Investment A I × Delivery 57
Slide 59: SVF1 Investment: Gopuff
SVF1 Investment SKUs: 3,000 Delivery time: 20-25min Delivery fee: $1.95 Unlimited free delivery for $5.95 per month Delivery time: average time The investment herein is presented solely for illustrative purposes and has been selected to provide an example of the types of investments in relation to A
Slide 60: Gopuff video disclaimer
The information contained herein is provided for illustrative purposes only. The information herein was prepared by Gopuff. None of SBG, SVF1, the general partner of SVF1 or SBIA make any representation regarding the accuracy of the information and are under no obligation to update the information.
Slide 61: On-demand delivery of everyday essentials
SVF1 Investment Micro-fulfillment centers Partner brands Acquired in December 2020 Micro-fulfillment Center Distribution Center Covering 650 US cities & expanding globally Collaborate with global companies On-demand delivery of everyday essentials Third-party logos included herein are provided for i
Slide 62: Use of A I (Gopuff)
SVF1 Investment Use of A I Geography User Proper inventory attributes Customer demand AI Efficient delivery routes Delivery Optimal micro-fulfillment Weather location center location Delivery in 20-25 minutes Delivery time: average time The investment herein is presented solely for illustrative purp
Slide 63: A I × Mortgage
SVF2 Investment A I × Mortgage Better expects their supervised learning network (rules engine-driven AI) to be able to morph into a true unsupervised learning network (true AI) as they gain trust of consumers to help them shop for houses, get matched with realtors and loan experts, and trust of inve
Slide 64: Mortgage Process: Conventional
SVF2 Investment Mortgage Process Conventional Document submission to multiple banks Interaction with loan officers More than Comparison of loan estimates Lender selection 10 complicated Loan contract application processes Comparison of related insurance products Insurance purchase The investment her
Slide 65: Mortgage Process: One-stop automated process
SVF2 Investment Mortgage Process Conventional better Document submission to multiple banks Interaction with loan officers Comparison of loan estimates One-stop Lender selection automated Loan contract application process Comparison of related insurance products Insurance purchase The investment here
Slide 66: Use of A I (Better)
SVF2 Investment Use of A I Customer Data Mortgage Process Basic information Lender matching Credit information AI Loan estimate comparison Real estate information Loan application Automate and improve the efficiency of the mortgage process Better expects their supervised learning network (rules engi
Slide 67: Benefits: Greatly shortens mortgage processing time
SVF2 Investment Benefits Hours per Loan Estimate Hours per Funded Loan 1/22 1/3 Industry average Industry average Greatly shortens mortgage processing time Better's best estimate based on publicly available information. The investment herein is presented solely for illustrative purposes and has been
Slide 68: Benefits: Greatly improves productivity
SVF2 Investment Benefits Loans per Month Labor Cost (per licensed salesperson) (per loan) 2.5x 1/3 Industry average Industry average Greatly improves productivity Better's best estimate based on publicly available information. Labor cost: Labor cost per loan (sum of operation cost and sales labor co
Slide 69: Results: Achieving strong growth
SVF2 Investment Results Origination Amount Net Revenue USD 24.2bn USD 876m 5x 10x in one year in one year USD 4.9bn USD 89m 2019 2020 2019 2020 Achieving strong growth The investment herein is presented solely for illustrative purposes and has been selected to provide an example of the types of inve
Slide 70: A I × Creator Economy
SVF2 Investment A I × Creator Economy 69
Slide 71: SVF2 Investment (Jellysmack video)
SVF2 Investment The information contained herein is provided for illustrative purposes only. The information herein was prepared by Jellysmack. None of SBG, SVF2, the general partner of SVF2 or SBIA make any representation regarding the accuracy of the information and are under no obligation to upda
Slide 72: A platform for video creators to increase revenue
SVF2 Investment Detect and qualify creators Expand the creators’ platform A platform for video creators to increase revenue Third-party logos included herein are provided for illustrative purposes only. Inclusion of such logos does not imply affiliation with or endorsement by such firms or businesse
Slide 73: How it works
SVF2 Investment How it works YouTube Facebook Snapchat IGTV (Instagram) Reduce video length Optimization of Promotion through (10 minutes→3 minutes) thumbnails and subtitles paid advertisements Optimize the performance of video content Third-party logos included herein are provided for illustrative
Slide 74: Case study
SVF2 Investment Case study Followers 4x 9.7M 10x 4.5M in one year in one year Facebook Snapchat Brad Mondo 2.3M YouTube 450K '20Q1 '20Q2 '20Q3 '20Q4 '21Q1 '20Q1 '20Q2 '20Q3 '20Q4 '21Q1 Significantly increased # of followers in a short period of time Third-party logos included herein are provided for
Slide 75: Use of A I (Jellysmack)
SVF2 Investment Use of A I Identify creators Video editing Original data from in-house creators AI Marketing Evaluation Maximize revenue of video creators The investment herein is presented solely for illustrative purposes and has been selected to provide an example of the types of investments in re
Slide 76: Number of Viewers
SVF2 Investment Number of Viewers Monthly Video Viewers Total Followers Monthly Views (US) more than 360 million 125 million 10 billion (45% of US population) Already achieves a large social audience Data as of Mar. 2021 Monthly viewers (US): Number of viewers across YouTube and Facebook cross-platf
Slide 77: Number of Viewers: US media
SVF2 Investment Number of Viewers 143m 138m 125m 116m 108m 107m 98m US media 58m 79m 94m #3 Data (Top US-based media companies) as of Sep. 2020 Third-party logos included herein are provided for illustrative purposes only. Inclusion of such logos does not imply affiliation with or endorsement by suc
Slide 78: A I × Shelf Management
SVF2 Investment A I × Shelf Management 77
Slide 79: Real-time shelf management
SVF2 Investment Stockout Correct Shelf image data Digitalize prevention price display Shelving Appropriate Recognize optimization promotion Classify Analyze Real-time shelf management Third-party logos included herein are provided for illustrative purposes only. Inclusion of such logos does not impl
Slide 80: Trax video disclaimer
The information contained herein is provided for illustrative purposes only. The information herein was prepared by Trax. None of SBG, SVF2, the general partner of SVF2 or SBIA make any representation regarding the accuracy of the information and are under no obligation to update the information. Th
Slide 81: Cost of Inference
Cost of Inference (cost to classify one billion images) USD 10,000 1/330,000 in 2 years USD 0.03 2017 2019 (CY) (Source) ARK Investment Management LLC, Stanford DAWN Deep Benchmark 80
Slide 82: Use of A I (Trax)
SVF2 Investment Use of A I Monthly Brand Package Category AI product recognitions 260million Size Price Amount Accurate analysis of product images in high volume Third-party logos included herein are provided for illustrative purposes only. Inclusion of such logos does not imply affiliation with or
Slide 83: Effects of A I use
SVF2 Investment Effects of A I use # of stores per Stockout duration Shelf audit time Revenue sales team 45h 20min 1/25 1.2x 117 1/100 3.6x 180k 100 50k 30min 46sec Traditional Traditional Traditional Traditional Significant contribution to profitability Above statistics from actual US and European
Slide 84: Customers: Implemented by leading global companies
SVF2 Investment Customers Implemented by leading global companies Third-party logos included herein are provided for illustrative purposes only. Inclusion of such logos does not imply affiliation with or endorsement by such firms or businesses. There is no guarantee that the Group will work with any
Slide 85: A I × Job Matching
SVF2 Investment A I × Job Matching 84
Slide 86: Hiring temporary workers: Traditional
SVF2 Investment Hiring temporary workers Traditional Face-to-face interviews Paperwork processing De-centralized information Inefficient manual process The investment herein is presented solely for illustrative purposes and has been selected to provide an example of the types of investments in relat
Slide 87: Hiring temporary workers: One-stop digital process
SVF2 Investment Hiring temporary workers Traditional Face-to-face interviews Paperwork processing De-centralized information Inefficient manual process One-stop digital process The investment herein is presented solely for illustrative purposes and has been selected to provide an example of the type
Slide 88: Use of A I (Jobandtalent)
SVF2 Investment Use of A I Skill set Performance Workers Worker Employers satisfaction 95k+ 1,000+ Matching workers and employers with A I … The investment herein is presented solely for illustrative purposes and has been selected to provide an example of the types of investments in relation to AI m
Slide 89: Effects of A I use
SVF2 Investment Effects of A I use Worker Satisfaction Worker Retention (NPS) (1st month) 56 66% 41% 18 Industry average Industry average Happier workers and higher productivity Worker satisfaction: Industry average in 2020 Staffing Industry NPS® Benchmarks Clearlyrated, NPS: Net Promoter Score Work
Slide 90: Customers: Adopted by many global companies
SVF2 Investment Customers Logistics E-commerce Industry Adopted by many global companies Third-party logos included herein are provided for illustrative purposes only. Inclusion of such logos does not imply affiliation with or endorsement by such firms or businesses. There is no guarantee that the G
Slide 91: SoftBank Vision Fund 1, 2 + LatAm Fund: 224 total companies
SoftBank Vision Fund 1, 2 + LatAm Fund 224 total companies (incl. 30 companies post investment committee approval but pre investment closing) SoftBank Vision Fund 1 advised by SBIA SoftBank Vision Fund 2 advised by SBIA SoftBank Latin America Fund advised (95 total companies: 44 portfolio companies
Slide 92: Conclusion
Conclusion 91
Slide 93: Net Income JPY 4.99t
(USD 47.0bn) Net Income JPY 4.99t (Founded) 1981 ’84 ’87 ’90 ’93 ’96 '99 '02 '05 '08 '11 '14 '17 '20 (FY) Photo source: Nishi-Nippon Railroad Co., Ltd. USD 1 = JPY 106.17 (average rate during Apr. 2020-Mar. 2021) Prior to FY2011: JGAAP. Since FY2012: IFRS, net income attributable to owners of the pa
Slide 94: Evaluation by Investors: Only one-time?
Evaluation by Investors One-time gain Global stock Large scale from Sprint market rally IPOs Only one-time? 93
Slide 95: Many Regrets: Issues to be addressed sincerely
Many Regrets Missed Lack of Failed investment systematic investments opportunities approach Issues to be addressed sincerely 94
Slide 96: One-time gain vs Recurring gains
Investment company Producer of golden eggs One-time gain Recurring gains The slides presented herein are solely for illustrative purposes to provide an example of SBG's overall strategy for the future. Nothing contained herein should be relied upon as a promise or representation as to future perform
Slide 97: Producer of golden eggs
Producer of golden eggs Discovery Strengthen Financing and analysis organization Build system to generate recurring gains The slides presented herein are solely for illustrative purposes to provide an example of SBG's overall strategy for the future. Nothing contained herein should be relied upon as
Slide 98: Producer of Golden Eggs
— SoftBank Producer of Golden Eggs
Slide 99: The A I Revolution has just begun
The A I Revolution has just begun 98
Slide 100: Information Revolution Happiness for everyone
Information Revolution Happiness for everyone 99
Slide 101: SoftBank
SoftBank
Slide 102: Appendix
Appendix
Slide 103: Definition and Calculation Method of SBG's Sum-of-the-Parts Valuation (Mar. 2021)
Definition and Calculation Method of SBG’s Sum-of-the-Parts Valuation (as of March 31, 2021) 1. NAV Net Asset Value ◦ NAV = Equity value of holdings - Net debt 2. Equity value of holdings (after deducting asset-backed financing) ◦ Alibaba: calculated by multiplying the number of Alibaba ADSs (equiva
Slide 104: Definition and Calculation Method of SBG's Sum-of-the-Parts Valuation (Mar. 2020)
Definition and Calculation Method of SBG’s Sum-of-the-Parts Valuation (as of March 31, 2020) 1. NAV Net Asset Value ◦ NAV = Equity value of holdings - Net debt 2. Equity value of holdings (after deducting asset-backed financing) ◦ SBKK: calculated by multiplying the number of SBKK shares held by SBG
Slide 105: Gain and Loss on Investments (Cumulative)
Gain and Loss on Investments (Cumulative) (SVF Segment on a SBG Consolidated Basis) (JPY bn) 6,336.0 2,745.8 2,237.8 From the first quarter of FY2020, “operating income” will no longer be presented in the consolidated statement of income. Instead, “gain on investments” will be used in order to show
Slide 106: SVF1 Investment Highlights (SBG Consolidated basis)
SVF1 Investment Highlights (SBG Consolidated basis) * (From SVF1 inception to Mar. 31, 2021) USD 68.9bn USD 54.9bn Realized gain USD 9.9bn Investment market uplift + Valuation gain realized gains USD 58.9bn USD -13.9bn Realized loss Valuation loss USD -0.7bn USD -13.2bn Mark up Mark down (44 investm
Slide 107: SVF1 Listed Portfolio Companies (as of Mar. 31, 2021)
SVF1 Listed Portfolio Companies (as of Mar. 31, 2021) (USD m) (a) (b) (c) = (b) - (a) (d) = (b) / (a) Investment cost Gross return *3 Gross gain (loss) Company Gross MOIC *4 to SVF1 to SVF1 to SVF1 Coupang 2,729 28,039 +$25,310 10.3x Doordash 680 8,258 +$7,578 12.1x Uber 7,666 12,074 +$4,408 1.6x Gu
Slide 108: SVF1 Listed Portfolio Companies (as of May 11, 2021)
SVF1 Listed Portfolio Companies (as of May 11, 2021) (a) (b) (c) = (b) - (a) (d) = (b) / (a) (USD m) Investment cost Gross return *2 Gross gain (loss) Company Gross MOIC *3 to SVF1 to SVF1 to SVF1 Coupang 2,729 20,596 +$17,867 7.5x Doordash 680 7,843 +$7,163 11.5x Uber 7,666 10,632 +$2,966 1.4x Guar
Slide 109: SVF1 Snapshot (as of Mar. 31, 2021)
SVF1 Snapshot (as of Mar. 31, 2021) (a) (b) (c) = (b) - (a) (USD bn) *2 *1 Investment cost Gross return Gross gain/(Loss) to SVF1 to SVF1 to SVF1 (A) Listed company total *3 $15.7 $60.4 +$44.7 (B) Private company, etc. total $70.1 $80.3 +$10.2 (C)=(A)+(B) SVF 1 total (SBG consolidated basis) *4 $85.
Slide 110: SVF2 Investment Highlights (SBG Consolidated basis)
SVF2 Investment Highlights (SBG Consolidated basis) (From SVF2 inception to Mar. 31, 2021) USD 5.0bn USD 4.5bn Investment Valuation gain market uplift + USD 5.0bn USD -0.5bn Realized loss USD -0.04bn Valuation loss USD -0.4bn realized gains Mark up Mark down (10 investments) (4 investments) SVF2 hig
Slide 111: SVF2 Listed Portfolio Companies (as of Mar. 31, 2021)
SVF2 Listed Portfolio Companies (as of Mar. 31, 2021) (USD m) (a) (b) (c) = (b) - (a) (d) = (b) / (a) Investment cost Gross return *2 Gross gain/(loss) Company Gross MOIC *3 to SVF2 to SVF2 to SVF2 Beike 1,350 5,956 +$4,606 4.4x Seer 205 257 +$52 1.3x Qualtrics 24 26 +$2 1.1x (A) Listed company tota
Slide 112: SVF2 Listed Portfolio Companies (as of May 11, 2021)
SVF2 Listed Portfolio Companies (as of May 11, 2021) (a) (b) (c) = (b) - (a) (d) = (b) / (a) (USD m) Investment cost Gross return *2 Gross gain (loss) Company Gross MOIC *3 to SVF2 to SVF2 to SVF2 Beike 1,350 5,044 +$3,694 3.7x Qualtrics 24 27 +$3 1.1x Seer 205 164 -$41 0.8x *1 3.3x Listed company t
Slide 113: SVF2 Snapshot (as of Mar. 31, 2021)
SVF2 Snapshot (as of Mar. 31, 2021) (a) (b) (c) = (b) - (a) (USD bn) *2 *1 Investment cost Gross return Gross gain/(Loss) to SVF2 to SVF2 to SVF2 (A) Listed company total *3 $1.6 $6.2 +$4.7 (B) Private company, etc. total $5.1 $5.0 -$0.1 (C)=(A)+(B) SVF 2 total (SBG consolidated basis) $6.7 $11.2 +$