Softbank Group Corp. · TSE:9984
Softbank — Q2 FY2019 Earnings Presentation
37 slides from Softbank's earnings presentation, Nov 8, 2019
Slide 1: SoftBank Vision Fund & Delta Fund Update
1 SoftBank Vision Fund SoftBank I Fund I Vision & Delta Fund Update & Delta Fund Update Navneet Govil Managing Partner & Chief Financial Officer, SoftBank Investment Advisers November 8, 2019 Confidential
Slide 2: Important Information (1 of 2)
Important Information (1 of 2) 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)
Important Information (2 of 2) 3 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 1. Progress & Highlights 2. Performance & Impact on SoftBank Group 3. In Focus: Governance Confidential
Slide 5: Progress & Highlights
5 Progress & Highlights Confidential
Slide 6: WeWork Update
WeWork Update 6 Significant Vision Fund I Membership Growth1 Valuation2 timeline (Thousands) (USD Billions) 1 Sep 24th Adam Neumann steps down $33.1B as CEO of The We Company 527K $29.6B Independent Valuer Range 2 Sep 30th $27.2B S-1 Withdrawn. $9B Financing reduction = [$3B IPO + $6B Debt] 4X 74% 3
Slide 7: Key Developments - SoftBank Vision Fund I
Key Developments - SoftBank Vision Fund I 7 Three-month Period Ended September 30, 2019 End of Investment Investment Loss1 Recent IPOs2 Period -$8.8B Sep 12th Footnotes: 1. Investment Loss is before tax and expenses and based on valuations of unrealized investments. The valuations do not take into a
Slide 8: Key Developments - Delta Fund
Key Developments - Delta Fund 8 Three-month Period Ended September 30, 2019 Commitment Distribution1 Fund Status Transferred Out2 $5.0B $1.6B Inactive Footnotes: 1. Represents the distribution made to Limited Partners on July 22, 2019 in relation to the sale of Delta Fund’s holding in DiDi to the Vi
Slide 9: SoftBank Vision Fund I: Snapshot
SoftBank Vision Fund I: Snapshot 9 As of September 30, 2019 Cumulative Acquisition Cost1 Investment Gains1 Distributions2 $98.6B SVF I $76.3B $11.4B $9.9B SBG Paid-In Capital SBG Total Value3 SBG Distributions2 $28.1B SBG $21.8B $26.3B $1.7B Footnotes: 1. Include investments in Flipkart and Nvidia w
Slide 10: Delta Fund: Snapshot
Delta Fund: Snapshot 10 As of September 30, 2019 Cumulative Acquisition Cost1 Investment Gains1 Distributions2 $4.4B Delta $5.0B $0.0B $5.1B SBG Paid-In Capital SBG Total Value3 SBG Distributions2 $4.4B $3.8B $3.5B $3.5B SBG Footnotes: 1. Include solely the investment in DiDi which was transferred t
Slide 11: Growth of Our Portfolio
Growth of Our Portfolio 11 Number of Investments1,2 90 Cumulative $11.4B Investment Gains1 Number of Investments1,2 Acquisition 40 Cost1,2 $76.3B Cumulative Investment Gains1 $8.3B Acquisition Cost1,2 $34.3B Sep 30, 2018 Sep 30, 2019 Footnotes: 1. Acquisition Cost, Number of Investments, and Cumulat
Slide 12: Growing Portfolio of Market Leaders
Growing Portfolio of Market Leaders 12 As of September 30, 2019 Investments included herein were held by the Vision Fund I as of September 30, 2019. The investments presented herein are solely for illustrative purposes, have been selected in order to demonstrate examples of Fund investments, and do
Slide 13: Portfolio Composition By Sector
Portfolio Composition By Sector 13 As of September 30, 2019 40% 10% Cost $31.4B Cost $9.0B Information herein is presented on an Fair Value $31.1B Fair Value $7.5B aggregated basis across the Vision Fund I and Delta Fund and does not include Flipkart and Nvidia which were exited in August 2018 and J
Slide 14: Portfolio Composition By Geography
Portfolio Composition By Geography 14 As of September 30, 2019 Health Tech Real Estate Transportation & Logistics Fintech Frontier Tech Enterprise AMERICAS 40% Consumer Information herein is presented on an aggregated basis across the Vision Fund I and Delta Fund and does not include Flipkart and Nv
Slide 15: Portfolio Composition By Geography
Portfolio Composition By Geography 15 As of September 30, 2019 Consumer Frontier Tech Real Estate Transportation & Logistics Fintech EMEA 14% Health Tech Consumer Fintech Transportation & Logistics ASIA 46% Enterprise Real Estate Information herein is presented on an aggregated basis across the Visi
Slide 16: Public Listings Since Inception
16 7 Public Listings Since Inception Inception to Jun 2019 Jul – Sep 2019 Post Sep 2019 Gross MOIC1: 6.2X Gross MOIC1: 1.8X Footnotes: 1. Gross MOIC (Multiple of Invested Capital) presented includes valuation uplifts that reflect unrealized estimated amounts, does not take into account taxes or expe
Slide 17: Performance & Impact on SoftBank Group
17 Performance & Impact on SoftBank Group Confidential
Slide 18: Contribution to SBG, Net of 3rd Party Interests
Contribution to SBG, Net of 3rd Party Interests 18 Amounts in USD Billions Six-month Period Six-month Period ended ended September 30, 2018 September 30, 2019 SVF I & Delta SVF I & Delta Fund Net Profit (Loss)1 $2.86 -$4.90 Less: Change in 3rd Party Interests in Funds -1.74 2.49 SBG LP Income: Share
Slide 19: Contribution to SBG, Net of 3rd Party Interests
Contribution to SBG, Net of 3rd Party Interests 19 Amounts in USD Billions Period from Fund Inception to September 30, 2019 SVF I & Delta Fund Net Profit1 $5.76 Less: Change in 3rd Party Interests in Funds -3.12 SBG LP Income: Share of Fund Net Profit $2.64 SBG Manager Income: Management & Performan
Slide 20: Contribution to SBG, Realized and Unrealized Values
Contribution to SBG, Realized and Unrealized Values 20 As of September 30, 2019 $29.8B $1.5B Manager Undistributed & Accrued Performance Fee3 $28.3B $25.6B LP Total Value = NAV1 (Unrealized Value) + Distributions (Realized Value) Paid-In Capital Total Value2 Footnotes: 1. Net Asset Value includes ne
Slide 21: In Focus: Governance
21 In Focus: Governance Confidential
Slide 22: Why The Focus on Governance
Why The Focus on Governance 22 Our three objectives Fiduciary duty to Limited Partners, including SBG Compliance with Laws & Regulations in multiple jurisdictions we operate in Going beyond minimal requirements by aligning with industry best practices Footnotes: There can be no assurance that the op
Slide 23: SBIA – A Global Organization
SBIA – A Global Organization 23 LONDON SILICON VALLEY TOKYO RIYADH MUMBAI SHANGHAI ABU DHABI HONG KONG SINGAPORE 480+ Employees 150+ Investment Professionals 330 Functional Approximate headcount as of September 30, 2019. Small number of executives in Miami, New York, Chicago and Massachusetts not in
Slide 24: Subject to Global Financial Services Regulatory Bodies
Subject to Global Financial Services Regulatory Bodies 24 5 Regulatory Bodies Singapore recently received its capital markets license from the Monetary Authority of Singapore. Mumbai, India has recently received approval from the India Department of Economic Affairs to undertake certain investment a
Slide 25: SBIA Governance: Three Areas of Focus
SBIA Governance: Three Areas of Focus 25 Vision Fund I Governance 3 Key Areas of Focus Investment Manager Portfolio Company Governance Governance Footnotes: There can be no assurance that the operations and/or processes of SBIA and the Vision Fund I described in this Presentation will continue throu
Slide 26: SBIA Governance Framework
SBIA Governance Framework 26 Five facets of governance framework Policies & Legal & Regulatory Standards Compliance 1 2 GOVERNANCE FRAMEWORK Risk & Performance 5 3 Board of Directors Management & Committees 4 Accountability & Transparency Footnotes: There can be no assurance that the operations and/
Slide 27: Vision Fund I Governance
Vision Fund I Governance 27 The three layers of governance: Investment Manager, General Partner, and Limited Partners The Investment Manager’s Board of Directors GP Board of Directors & Investor Advisory Board oversees the Fund’s activities & monitors compliance provide additional layers of governan
Slide 28: Investment Manager Governance
Investment Manager Governance 28 Board of Internal Internal Directors Compliance Compliance Audit Audit Investment Manager Committees Operating Conduct Committee Committee Regional & Global Data Protection New Product Weekly Deal Calls New Activities Operations Committee Committee Committee Footnote
Slide 29: SBIA Senior Leadership Regulatory Accountability
SBIA Senior Leadership Regulatory Accountability 29 The Senior Managers Certification Regime (SMCR)1 outlines accountability and underscores compliance and governance as core components of our culture MANAGEMENT Senior Managers Regime CONDUCT SENIOR RULES Board Executive Member Other Senior Managers
Slide 30: Accountable for Key Controls
Accountable for Key Controls 30 The Japanese Financial Instruments and Exchange Act regulation (J-SOX) requires the review and testing of key controls annually Company Level Controls1 (“CLC”) SVF I and SBIA governance related internal controls 42 “CLC” Financial Reporting Controls1 Business Process
Slide 31: SBIA GIPS Compliance – Increased Transparency to Limited Partners
SBIA GIPS Compliance – Increased Transparency 31 to Limited Partners Independently Verified, SBIA Entity-wide Adoption of the Global Investment Performance Standards GIPS® 2020 Increased transparency to Limited Partners Comparability of performance metrics Consistent approach to presentation Strengt
Slide 32: Thank You
Thank You = SoftBank Investment Advieers
Slide 33: Appendix
Appendix == SoftBank Investment Advisers
Slide 34: Contribution to SBG, Net of 3rd Party Interests
Contribution to SBG, Net of 3rd Party Interests 34 Amounts in USD Billions Six-month Period Six-month Period ended ended September 30, 2018 September 30, 2019 SVF I Delta Total SVF I Delta Total Fund Net Profit (Loss)1 $ 2.90 -$ 0.04 $ 2.86 -$ 4.87 -$ 0.03 -$ 4.90 Less: Change in 3rd Party Interests
Slide 35: Contribution to SBG, Net of 3rd Party Interests
Contribution to SBG, Net of 3rd Party Interests 35 Amounts in USD Billions Period from Fund Inception to September 30, 2019 SVF I Delta Total Fund Net Profit (Loss)1 $5.93 -$ 0.17 $5.76 Less: Change in 3rd Party Interests in Funds -3.05 -0.07 -3.12 SBG LP Income: Share of Fund Net Profit (Loss) $ 2.
Slide 36: SoftBank Vision Fund I: Contribution to SBG, Realized & Unrealized Values
SoftBank Vision Fund I: Contribution to SBG, Realized & 36 Unrealized Values As of September 30, 2019 $26.3B $1.5B Manager Undistributed & Accrued Performance Fee3 $24.8B $21.8B LP Total Value = NAV1 (Unrealized Value) + Distributions (Realized Value) Footnotes: Paid-In Capital Total Value2 1. Net A
Slide 37: Delta Fund: Contribution to SBG, Realized & Unrealized Values
Delta Fund: Contribution to SBG, Realized & Unrealized Values 37 As of September 30, 2019 $3.8B $3.5B LP Total Value = Distributions (Realized Value) Paid-In Capital Total Value1 Footnotes: 1. Total Value reflects SBG’s Limited Partner interest in the Fund. As of September 30, 2019, the Delta Fund h