Softbank Group Corp. · TSE:9984
Softbank — H1 FY2021 Earnings Presentation
64 slides from Softbank's earnings presentation, Nov 8, 2021
Slide 1: Earnings Results for the 6-month Period ended September 30, 2021
Earnings Results for the 6-month Period ended September 30, 2021 November 8, 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: 2
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Slide 4: Net Income
Net Income (JPY bn) 1,883.2 (USD 3.3bn) 363.6 FY2020 H1 FY2021 H1 USD 1 = JPY 110.18 (average rate during Apr. 2021-Sep. 2021) Net income: net income attributable to owners of the parent 3
Slide 5: NAV (Net Asset Value) USD 187bn
NAV (Net Asset Value) USD 244bn (Jun. 30, 2021) USD 187bn (Sep. 30, 2021) Since FY2021Q2, the equity value of SBG's subsidiaries, etc., which were not included previously, has been included to calculate NAV. Accordingly, NAV from FY2018Q1 to FY2021Q1 have been retroactively revised. For the retroact
Slide 6: NAV (Net Asset Value) USD 187bn
NAV (Net Asset Value) USD 244bn (Jun. 30, 2021) USD 187bn (Sep. 30, 2021) 28% Others SBKK, Sprint/T-Mobile/Deutsche Telekom, Arm, SB Northstar 28% Vision Fund etc. 44% Each percentage is the proportionated share of holding equity value for each time period Since FY2021Q2, the equity value of SBG's s
Slide 7: NAV (Net Asset Value)
NAV (Net Asset Value) USD 264bn 59% Others 25% SBKK, T-Mobile, Deutsche Telekom, Arm, SB Northstar Vision Fund etc. 16% Each percentage is the proportionated share of holding equity value for each time period Since FY2021Q2, the equity value of SBG's subsidiaries, etc., which were not included previ
Slide 8: NAV (Net Asset Value)
NAV (Net Asset Value) USD 264bn USD 187bn 59% 28% 28% Others 25% SBKK, T-Mobile, Deutsche Telekom, Arm, SB Northstar 44% Vision Fund etc. 16% Each percentage is the proportionated share of holding equity value for each time period Since FY2021Q2, the equity value of SBG's subsidiaries, etc., which w
Slide 9: NAV (Net Asset Value) USD 187bn
NAV (Net Asset Value) USD 244bn (Jun. 30, 2021) USD 187bn (Sep. 30, 2021) China 36% Japan, Asia, Europe, etc. * *Asia excluding China 44% US: sum of T-Mobile(Sprint), SVF1(equivalent to US stocks), SVF2(equivalent to US stocks), SB Northstar (equivalent to US stocks), other US stocks China: sum of A
Slide 10: LTV (Net Debt / Equity Value of Holdings)
LTV (Net Debt / Equity Value of Holdings) USD 230bn 19% Manage LTV below 25% in normal times USD 43bn Equity value Net debt of holdings Share price: closing price as of Sep. 30, 2021 For details, see Appendix “Definition and Calculation Method of SBG’s NAV and LTV (as of Sep. 30, 2021)” 9
Slide 11: LTV (Net Debt / Equity Value of Holdings)
LTV (Net Debt / Equity Value of Holdings) 100% JPY 4.5 Trillion 90% IPO Program (Dec. 2018) (Mar. - Sep. 2020) 80% 70% 60% 50% 40% 30% 30% 35% 30% 18% 17% 25% 16% 17% 20% 11% 15% 12% 14% 12% 16% 19% Since FY2021Q2, the equity value of SBG's subsidiaries, etc., which were not 9% included previously,
Slide 12: Vision Fund etc.
Vision Fund etc. Vision Fund etc.: SVF1, SVF2, LatAm Funds, other listed and unlisted investments by SBG (excluding Alibaba, T-Mobile, Deutsche Telekom, SBKK, Arm, and SB Northstar) 11
Slide 13: Gain and Loss on Investments of Vision Fund etc. (Cumulative)
* Gain and Loss on Investments of Vision Fund etc. (Cumulative) (JPY bn) 7,094.7 6,483.8 5,934.3 2,821.9 2,237.8 1,823.4 1,431.4 1,294.1 1,103.5 1,404.8 911.6 The information contained herein is provided solely for illustrative purposes on an SBG consolidated basis 591.6 and individual investors' re
Slide 14: Gain and Loss on Investments of Vision Fund etc. (Cumulative)
* Gain and Loss on Investments of Vision Fund etc. (Cumulative) (JPY bn) 7,094.7 873.8 625 5,934.3 762.8 Vision Fund 2 etc. 6,220.9 5,858.7 605.9 5,171.5 Vision Fund 1 Vision Fund 2 etc.: sum of SVF2 and LatAm Funds Vision Fund 1: SVF1 2,237.8 9.1 543.5 2,216.1 The information contained herein is pr
Slide 15: Gain and Loss on Investments of Vision Fund etc. (Cumulative)
* Gain and Loss on Investments of Vision Fund etc. (Cumulative) (JPY bn) 7,094.7 922.1 1,476.8 5,934.3 132.1 China ** 3,092.3 2,960.8 Asia, Europe, Latin America, etc. 3,205.2 510.7 112.8 363.2 685.5 527.5 492.6 291.9 2,356.5 2,525.6 2,841.4 US Countries and regions: Based on the headquarters of por
Slide 16: Provide capital in a wide range of regions
Vision Fund etc. Portfolio Companies Fair Value (as of Sep. 30, 2021, unrealized value only) Provide capital in US a wide range of regions * Asia, Europe, Latin America etc. 35% 46% China 19% Vision Fund etc.: SVF1, SVF2, LatAm Funds, other listed and unlisted investments by SBG (excluding Alibaba,
Slide 17: Provide capital in a wide range of sectors
Vision Fund etc. Portfolio Companies Fair Value (as of Sep. 30, 2021, unrealized value only) Edtech Others Health Tech 1% 2% 4% Enterprise 6% Provide capital in Proptech Consumer a wide range of sectors 8% 26% Frontier Tech 9% Logistics Fintech 10% 17% Transportation Vision Fund etc.: SVF1, SVF2, La
Slide 18: Investment Process of Vision Fund
Investment Process of Vision Fund 2 Preliminary Screening Investment Committee Managing Partners and Underwriting Due Diligence Vision Fund 2 Advanced Pipeline Approval Review over 3,000 companies 213 companies ( incl. 33 companies post investment committee approval but pre investment closing ) Inve
Slide 19: Investment Amount (average per company)
Investment Amount (average per company) (as of Sep. 30, 2021, incl. realized value) USD 943mm USD 192mm Vision Fund 1 Vision Fund 2 Cumulative investment amounts do not reflect current valuations associated with such investments and are not indicative of Vision Fund 1: SVF1 actual performance. Past
Slide 20: Ownership (weighted average per company)
Ownership (weighted average per company) (as of Sep. 30, 2021, incl. realized value) 22% 15% Vision Fund 1 Ownership percentage calculated as a percentage of the fully diluted outstanding shares at of the most recent reporting period, Vision Fund 2 Vision Fund 1: SVF1 or in the case of exited and pa
Slide 21: Unicorns
Unicorns SoftBank AI Group of A I unicorns 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 the SBG. 20
Slide 22: Unicorns Listed
Unicorns Listed SoftBank AI Group of A I unicorns 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 the SBG. 21
Slide 23: Unicorns Listed: Capital for Investment, Exit / Monetize
Unicorns Listed SoftBank AI Capital for Group of A I unicorns Exit / Monetize investment 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 t
Slide 24: Capital for Investments (FY2021H1)
Capital for Investments (FY2021H1) JPY 3.2tr (USD 29.5bn) JPY 33.2bn (USD 0.3bn) Contribution to Vision Fund etc. Investment Calculations are converted into JPY at the average rate for each period, etc. Contribution to Vision Fund etc.: the amount of contribution to SVF1 (USD 0.3bn), SVF2 (USD 27.1b
Slide 25: Capital for Investments (FY2021H1)
Capital for Investments (FY2021H1) JPY 3.2tr (USD 29.5bn) JPY 3.0tr JPY 33.2bn (USD 0.3bn) (USD 27.0bn) Cash in from Vision Fund, Contribution to sale of listed stocks, Vision Fund etc. asset finance, etc. Investment Capital Calculations are converted into JPY at the average rate for each period, et
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Slide 27: SoftBank Vision Fund IPOs / Divestments
Number of IPOs / Divestments of Vision Fund etc. Portfolio Companies (companies) SoftBank Vision Fund (Apr. - Nov.) 18 14 Listed (Nov. 5, 2021) 6 4 3 2 2 2 2 1 1 1 1 1 1 1 1 1 1 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 ’19 ’20 ’21 (FY) Vision Fund e
Slide 28: SoftBank Vision Fund IPOs / Divestments
Number of IPOs / Divestments of Vision Fund etc. Portfolio Companies (companies) (Apr. - Nov.) 31 Announced IPO filings 8 (Nov. 5, 2021) SoftBank Vision Fund 5 Announced SPAC mergers (Nov. 5, 2021) 14 18 Listed (Nov. 5, 2021) 6 4 3 2 2 2 2 1 1 1 1 1 1 1 1 1 1 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05
Slide 29: SoftBank Vision Fund etc. 368 total companies
SoftBank Vision Fund etc. 368 total companies (incl. 33 companies post investment committee approval but pre investment closing) SoftBank Latin America Funds 1 SoftBank Vision Fund 1 advised by SBIA SoftBank Vision Fund 2 advised by SBIA, SBGA (213 total companies: 158 portfolio companies as of Sep.
Slide 30: Rising Buds
Rising Buds 29
Slide 31: Rising Buds
Rising Buds Qrm wWPayPay
Slide 32: NAV Discount
NAV Discount 31
Slide 33: NAV (Net Asset Value) as of Sep. 30, 2021
NAV (Net Asset Value) as of Sep. 30, 2021 USD 230bn USD 65bn Others USD 64bn SBKK, T-Mobile, Deutsche Telekom, Arm, SB Northstar Vision Fund etc. USD 101bn Equity value of holdings Share price: closing price as of Sep. 30, 2021 32 Vision Fund etc.: SVF1, SVF2, LatAm Funds, other listed and unlisted
Slide 34: NAV (Net Asset Value) as of Sep. 30, 2021
NAV (Net Asset Value) as of Sep. 30, 2021 USD 230bn USD 43bn USD 65bn Others USD 64bn SBKK, T-Mobile, Deutsche Telekom, Arm, SB Northstar Vision Fund etc. USD 101bn Equity value Net debt of holdings Share price: closing price as of Sep. 30, 2021 33 Vision Fund etc.: SVF1, SVF2, LatAm Funds, other l
Slide 35: NAV (Net Asset Value) as of Sep. 30, 2021
NAV (Net Asset Value) as of Sep. 30, 2021 USD 230bn USD 43bn USD 65bn Others USD 64bn SBKK, T-Mobile, Deutsche Telekom, Arm, SB Northstar USD 187bn Vision Fund etc. USD 101bn Equity value Net debt NAV of holdings Share price: closing price as of Sep. 30, 2021 34 Vision Fund etc.: SVF1, SVF2, LatAm
Slide 36: NAV (Net Asset Value) as of Sep. 30, 2021
NAV (Net Asset Value) as of Sep. 30, 2021 USD 230bn USD 43bn USD 65bn Discount Others USD 64bn 47% SBKK, T-Mobile, Deutsche Telekom, Arm, SB Northstar USD 187bn Vision Fund etc. USD 101bn USD 99bn Equity value Net debt NAV Market cap of holdings Share price: closing price as of Sep. 30, 2021 Market
Slide 37: NAV (Net Asset Value)
NAV (Net Asset Value) JPY 20.9tr (Sep. 30, 2021) (USD 187bn) USD 1 = JPY 111.92 (as of Sep. 30, 2021 TTM) ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 ’19 ’20 ’21 (FY) NAV: closing price as of Sep. 30, 2021 For details, see Appendix “Definition and Calculation
Slide 38: NAV (Net Asset Value)
NAV (Net Asset Value) JPY 22.1tr (Nov. 8, 2021) (USD 194bn) JPY 20.9tr (Sep. 30, 2021) (USD 187bn) USD 1 = JPY 113.78 (as of Nov. 5, 2021 TTM) ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 ’19 ’20 ’21 (FY) NAV: (Japan) closing price as of Nov. 8, 2021, (Other th
Slide 39: Net Asset Value (NAV) and Market Cap
Net Asset Value (NAV) JPY 22.1tr (Nov. 8, 2021) (USD 194bn) JPY 20.9tr (Sep. 30, 2021) (USD 187bn) Discount 52% Market cap JPY 10.6tr (Nov. 8, 2021) (USD 93bn) USD 1 = JPY 113.78 (as of Nov. 5, 2021 TTM) NAV: (Japan) closing price as of Nov. 8, 2021, (Other than Japan) closing price as of Nov. 5, 20
Slide 40: NAV per share
NAV per share JPY 12,914 (Nov. 8, 2021) (USD 114) JPY 12,191 (USD 109) (Sep. 30, 2021) Discount 52% Share price JPY 6,161 (Nov. 8, 2021) (USD 54) USD 1 = JPY 113.78 (as of Nov. 5, 2021 TTM) NAV: (Japan) closing price as of Nov. 8, 2021, (Other than Japan) closing price as of Nov. 5, 2021 NAV per sha
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Slide 42: Share Repurchase
Share Repurchase 41
Slide 43: Share Repurchase JPY 1.0 trillion
Share Repurchase JPY 1.0 trillion Repurchase period : 1 year (from Nov. 9, 2021 to Nov. 8, 2022) Shares will be repurchased in consideration of financial policy, investment opportunities and NAV discount, among others. (the repurchase amount may not reach JPY 1.0 trillion within one year) For detail
Slide 44: Information Revolution Happiness for everyone
Information Revolution Happiness for everyone 43
Slide 45: SoftBank
SoftBank
Slide 46: Appendix
Appendix
Slide 47: Definition and Calculation Method of SBG's NAV and LTV (as of Sep. 30, 2021)
Definition and Calculation Method of SBG’s NAV and LTV (as of Sep. 30, 2021) 1. NAVNet Asset Value ◦ NAV = Equity value of holdings - Net debt 2. Equity value of holdings (after adjusting asset-backed financing) ◦ Alibaba: calculated by multiplying the number of Alibaba ADSs equivalent to the number
Slide 48: Definition and Calculation Method of SBG's NAV and LTV (as of Nov. 8, 2021)
Definition and Calculation Method of SBG’s NAV and LTV (as of Nov. 8, 2021) ※ Items other than listed share prices and FX rate are based on data as of September 30, 2021 unless otherwise stated. 1. NAVNet Asset Value ◦ NAV = Equity value of holdings - Net debt 2. Equity value of holdings (after adju
Slide 49: Gain and Loss on Investments of SVF (Cumulative)
Gain and Loss on Investments of SVF (Cumulative) (SVF Segment on an SBG Consolidated Basis) (JPY bn) 6,727.6 6,336.0 5,592.8 2,745.8 2,237.8 The information contained herein is provided solely for illustrative purposes on an SBG 1,823.4 consolidated basis and individual investors' results may vary.
Slide 50: Gain and Loss on Investments of SVF (Quarterly)
Gain and Loss on Investments of SVF (Quarterly) (SVF Segment on an SBG Consolidated Basis) (JPY bn) 3,590.2 1,355.7 The information contained herein is provided solely for 1,115.0 illustrative purposes on an SBG consolidated basis and individual investors' results may vary. Furthermore, past perform
Slide 51: SVF1 Investment Highlights (SBG consolidated basis)
SVF1 Investment Highlights (SBG consolidated basis) * (From SVF1 inception to Sep. 30, 2021) USD 65.3bn USD 48.7bn Realized gain USD 16.8bn Investment market uplift + realized gains Valuation gain USD 48.5bn USD -16.6bn Realized loss USD -0.5bn Valuation loss USD -16.1bn Mark up ** Mark down (50 inv
Slide 52: SVF1 Listed Portfolio Companies (as of Sep. 30, 2021)
SVF1 Listed Portfolio Companies (as of Sep. 30, 2021) (a) (b) (c) = (b) - (a) (d) = (b) / (a) (USD mm) Investment cost *2 Gross return *3 Gross gain (loss) Company Gross MOIC *4 to SVF1 to SVF1 to SVF1 Coupang 2,729 15,928 +$13,199 5.8x DoorDash 680 12,098 +$11,418 17.8x Fully Exited NVIDIA 2,878 5,
Slide 53: SVF1 Listed Portfolio Companies (as of Nov. 5, 2021)
SVF1 Listed Portfolio Companies (as of Nov. 5, 2021) (a) (b) (c) = (b) - (a) (d) = (b) / (a) (USD mm) Investment cost *1 Gross return *2 Gross gain (loss) Company Gross MOIC *3 to SVF1 to SVF1 to SVF1 Coupang 2,729 16,991 +$14,262 6.2x DoorDash 680 11,821 +$11,141 17.4x Uber 7,666 10,773 +$3,107 1.4
Slide 54: SVF1 Snapshot (as of Sep. 30, 2021)
SVF1 Snapshot (as of Sep. 30, 2021) (a) (b) (c) = (b) - (a) (USD bn) *1 *2 Investment cost Gross return Gross gain (loss) to SVF1 to SVF1 to SVF1 (A) Listed company total $33.8 $67.5 +$33.7 (B) Private company, etc. total $52.7 $67.7 +$15.0 (C)=(A)+(B) SVF 1 Total (SBG consolidated basis) *3 $86.5 $
Slide 55: SVF2 Investment Highlights (SBG consolidated basis)
SVF2 Investment Highlights (SBG consolidated basis) (From SVF2 inception to Sep. 30, 2021) USD 5.4bn USD 4.0bn Realized gain USD 1.0bn Investment market uplift Valuation gain USD -1.3bn + USD 4.4bn Valuation loss USD -1.3bn realized gains Mark up Mark down (29 investments) (9 investments) SVF2 highl
Slide 56: SVF2 Listed Portfolio Companies (as of Sep. 30, 2021)
SVF2 Listed Portfolio Companies (as of Sep. 30, 2021) (USD mm) (a) (b) (c) = (b) - (a) (d) = (b) / (a) Investment cost *2 Gross return *3 Gross gain (loss) Company Gross MOIC *4 to SVF2 to SVF2 to SVF2 Beike 1,350 2,686 +$1,336 2.0x Berkshire Grey 115 461 +$346 4.0x Full Truck Alliance 250 354 +$104
Slide 57: SVF2 Listed Portfolio Companies (as of Nov. 5, 2021)
SVF2 Listed Portfolio Companies (as of Nov. 5, 2021) (USD mm) (a) (b) (c) = (b) - (a) (d) = (b) / (a) Investment cost *1 Gross return *2 Gross gain (loss) Company Gross MOIC *3 to SVF2 to SVF2 to SVF2 AutoStore 2,800 6,139 +$3,339 2.2x Beike 1,350 2,695 +$1,345 2.0x WeWork 2,444 3,511 +$1,067 1.4x B
Slide 58: SVF2 Snapshot (as of Sep. 30, 2021)
SVF2 Snapshot (as of Sep. 30, 2021) (a) (b) (c) = (b) - (a) (USD bn) *1 *2 Investment cost Gross return Gross gain (loss) to SVF2 to SVF2 to SVF2 (A) Listed company total $3.0 $4.6 +$1.6 (B) Private company, etc. total $30.9 $33.3 +$2.4 (C)=(A)+(B) SVF 2 Total (SBG consolidated basis) *3 $33.9 $37.9
Slide 59: Investment Results for IonQ
SVF2 Investment Listed on Oct. 1, 2021 Investment Results for IonQ (as of Nov. 5, 2021) (SPAC merger*) USD 118mm Building the world’s * most powerful quantum computer 2.0x USD 61mm *Building the world’s most powerful quantum computer as measured by QED-C’s (Quantum Economic Development Consortium) a
Slide 60: Investment Results for Exscientia
SVF2 Investment Investment Results for Exscientia (as of Nov. 5, 2021) IPO on Oct. 1, 2021 USD 425mm Use A I to develop the best possible drugs in a faster and more effective manner USD 284mm 1.5x Past performance is not necessarily indicative of future results. The selected investment presented her
Slide 61: Investment Results for Roivant
SVF1 Investment Listed on Oct. 1, 2021 Investment Results for Roivant (as of Nov. 5, 2021) (SPAC merger*) USD 919mm Development of USD 769mm novel therapeutic medicines 0.8x Investment cost to SVF1 excludes USD 116mm which was realized in Mar. 2020, prior to Roivant’s public listing. *Roivant merged
Slide 62: Investment Results for AutoStore
SVF2 Investment Investment Results for AutoStore (as of Nov. 5, 2021) IPO on Oct. 20, 2021 USD 6,139mm Industry-leading automated storage and retrieval system using smart robots 2.2x USD 2,800mm Past performance is not necessarily indicative of future results. The selected investment presented herei
Slide 63: Investment Results for WeWork
SVF1, SVF2 Investment Listed on Oct. 21, 2021 Investment Results for WeWork (as of Nov. 5, 2021) (SPAC merger*) USD 5,913mm Flexible space and workplace management solutions USD 2,444mm USD 4,416mm 0.7x SVF2 USD 3,511mm investment USD 3,468mm This slide shows the cumulative investment results on SVF
Slide 64: Investment Results for Aurora
SVF1 Investment Listed on Nov. 4, 2021 Investment Results for Aurora (as of Nov. 5, 2021) (SPAC merger*) USD 385mm Next-generation self-driving USD 333mm development 1.2x *Aurora merged with Reinvent Technology Partners Y on Nov. 3, 2021, and began trading on Nasdaq on Nov. 4, 2021 under the new tic