Softbank Group Corp. · TSE:9984
Softbank — Merger or Acquisition (April 2013)
26 slides from Softbank's merger presentation, April 2013
Slide 1: Cautionary Statement Regarding Forward Looking Statements
Cautionary Statement Regarding Forward Looking Statements This document includes “forward-looking statements” within the meaning of the securities laws. The words “may,” “could,” “should,” “estimate,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “target,” “plan,” “providing gu
Slide 2: Comparison of Value per Share Excluding Synergies
Detailed Calculations COMPARISON OF VALUE PER SHARE EXCLUDING SYNERGIES 1
Slide 3: SoftBank Transaction Support: PF Shares
SoftBank Transaction Support: PF Shares Pro Forma Sprint Shares: Sprint Shares Outstanding 3,015mm + $3.1bn First Primary1 590mm = Sprint Shares 3,605mm + $4.9bn Merger Primary2 988mm = Pro Forma Sprint Shares 4,593mm Source: Company filings and presentations Note: Totals may not sum due to rounding
Slide 4: SoftBank Transaction Support: $6.38 Value Excluding Synergies
SoftBank Transaction Support: $6.38 Value Excluding Synergies 55.2% of shares receive $7.30 cash 44.8% of shares receive equity in New Sprint $7.65 $6.38 $1.26 Stock $2.35 $5.25 PF Share Price x 44.8% (Stock Portion: 0.448) Cash $4.03 $7.30 PF Share Price x 55.2% Cash + New Sprint Equity SoftBan
Slide 5: DISH Proposal Support: PF DISH Shares
DISH Proposal Support: PF DISH Shares Pro Forma DISH Shares: Sprint Shares Outstanding 3,605mm x Exchange Ratio 0.05953 = DISH Shares Issued 215mm + DISH Shares Outstanding 453mm = Pro Forma DISH Shares 668mm Note: Totals may not sum due to rounding. 4 Source: Companies' filings and presentations
Slide 6: DISH Proposal Support: Per Share Calculation
DISH Proposal Support: Per Share Calculation Per PF DISH Share Calculation: ÷ Pro Forma Shares 668mm x Exchange Ratio 0.05953 Note: Totals may not sum due to rounding. 5 Source: Companies' filings and presentations
Slide 7: DISH Proposal Support: Cash and Equity
DISH Proposal Support: Cash and Equity Proposal Value ($0.72) per DISH Presentation $2.00 ($0.83) ($0.70) $6.75 Exchange Ratio 0.05953 $2.24 $4.76 x DISH Share Price (4/12/13) $37.63 $8.28 $7.00 $7.45 $4.76 Cash DISH Equity Sprint DISH Shares New Debt Cash Outlay Adjusted Equity Value Issues Headlin
Slide 8: DISH Proposal Support: Sprint Equity Value
DISH Proposal Support: Sprint Equity Value Proposal Value ($0.72) per DISH Presentation $2.00 ($0.83) ($0.70) $6.75 $2.24 $4.76 $22.4bn$8.28 Sprint Equity Value $7.00 $7.45 per PF DISH Share $4.76 (÷ 668mm x 0.05953) Cash DISH Equity Sprint DISH Shares New Debt Cash Outlay Adjusted Equity Value Issu
Slide 9: DISH Proposal Support: DISH Shares Issued
DISH Proposal Support: DISH Shares Issued Proposal Value ($0.72) per DISH Presentation $2.00 ($0.83) ($0.70) $6.75 $2.24 $4.76 DISH shares issued 215mm x DISH $8.28 share price $37.63 $7.00 $7.45 = Market value of new shares $8,076mm $4.76 per PF DISH Share (÷ 668mm x 0.05953) Cash DISH Equity Sprin
Slide 10: DISH Proposal Support: New Debt
DISH Proposal Support: New Debt Proposal Value ($0.72) per DISH Presentation $2.00 ($0.83) ($0.70) $6.75 $2.24 $4.76 $8.28 $9.3bn New Debt $7.00 $7.45 per PF DISH Share $4.76 (÷ 668mm x 0.05953) Cash DISH Equity Sprint DISH Shares New Debt Cash Outlay Adjusted Equity Value Issues Headline Value Note
Slide 11: DISH Proposal Support: Cash Outlay
DISH Proposal Support: Cash Outlay Proposal Value ($0.72) per DISH Presentation $2.00 ($0.83) ($0.70) $6.75 $2.24 $4.76 $8.28 $7.00 $7.45 $7.9bn Cash Outlay $4.76 per PF DISH Share (÷ 668mm x 0.05953) Cash DISH Equity Sprint DISH Shares New Debt Cash Outlay Adjusted Equity Value Issues Headline Valu
Slide 12: DISH Proposal Support: $6.75 Adjusted Proposal Value
DISH Proposal Support: $6.75 Adjusted Proposal Value Financing Dilution $(0.25) Proposal Value ($0.72) per DISH Presentation $2.00 ($0.83) ($0.70) $6.75 $2.24 $4.76 $8.28 $7.00 $7.45 $4.76 Cash DISH Equity Sprint DISH Shares New Debt Cash Outlay Adjusted Adjusted Equity Value Issues Headline Proposa
Slide 13: DISH Proposal Support: Transaction Fees and Expenses
DISH Proposal Support: Transaction Fees and Expenses $6.75 $6.05 ($0.09) ($0.61) Breakup Fee $600mm + Bank & Advisor Fees $400mm $6.66 = $6.05 Fees Transaction $1,000mm Per PF DISH Share (÷ 668mm x 0.05953) Adjusted Proposal Value Transaction Time Present Value Excluding Fees and Value Synergies Exp
Slide 14: DISH Proposal Support: Time Value Discount
DISH Proposal Support: Time Value Discount $6.75 $6.05 ($0.09) ($0.61) $6.66 1 Year Discount at 10% $6.05 per PF DISH Share (÷ 668mm x 0.05953) Adjusted Proposal Value Transaction Time Present Value Excluding Fees and Value Synergies Expenses Discount Note: Totals may not sum due to rounding. Time v
Slide 15: DISH Proposal Support: $6.05 Value Excluding Synergies
DISH Proposal Support: $6.05 Value Excluding Synergies $6.75 $6.05 ($0.09) ($0.61) $6.66 $6.05 Adjusted Proposal Value Transaction Time Present Value Excluding Fees and Value Synergies Expenses Discount Note: Totals may not sum due to rounding. 14 Source: Companies' filings, presentations and Manage
Slide 16: SoftBank Transaction is Superior
SoftBank Transaction is Superior (Present Value, Excluding Synergies) $7.65 $6.38 +5% $6.05 $6.31 ($0.47) $0.75 w ueSprint Pro Forma SoftBank Spectrum Deployment Synergies Pro Forma DISH Proposal es ergies) Merger Value Costs Note: Totals may not sum due to rounding. 15 Source: Companies' filings, p
Slide 17: Comparison of Value per Share Including Synergies
Detailed Calculations COMPARISON OF VALUE PER SHARE INCLUDING SYNERGIES 16
Slide 18: DISH Proposal Support: Synergies
DISH Proposal Support: Synergies $0.75 $6.31 $6.05 ($0.47) $(0.03) NPV of Cost Synergies $11.0bn (Per DISH) NPV of Integration Costs ─ ($2.6bn) (Per average of industry transactions) = NPV of Net Cost Synergies $8.4bn Per PF DISH Share (÷ 668mm x 0.05953) Present Value Synergies Spectrum Time Value
Slide 19: DISH Proposal Support: Spectrum Deployment Costs
DISH Proposal Support: Spectrum Deployment Costs $0.75 $6.31 $6.05 ($0.47) $(0.03) NPV of $6.0bn Capex spread over 3 years discounted at 10% per PF DISH Share (÷ 668mm x 0.05953) Present Value Synergies Spectrum Time Value Discount DISH Proposal Value Deployment Costs & Spectrum Costs Note: Totals m
Slide 20: DISH Proposal Support: $6.31 Value Including Synergies
DISH Proposal Support: $6.31 Value Including Synergies $0.75 $6.31 $6.05 ($0.47) $(0.03) Present Value Synergies Spectrum Time Value Discount DISH Proposal Value Deployment Costs Note: Totals may not sum due to rounding. Time value adjustment applied to sum of Synergies and Spectrum Deployment Costs
Slide 21: SoftBank Transaction Support: Synergies
SoftBank Transaction Support: Synergies $7.65 $6.38 $1.27 $2.35 NPV of $2bn run-rate synergies ÷ Sprint PF Shares Outstanding 4,593mm $4.03 x Stock Portion 0.448 Cash +Merger: SoftBank New Sprint CashEquity + New Synergies SoftBank + New Sprint Pro Forma SoftBank Sprint Equity Synergies Merger Value
Slide 22: SoftBank Transaction Delivers $7.65 Value Including Synergies
SoftBank Transaction Delivers $7.65 Value Including Synergies $7.65 $6.38 $1.27 $2.35 $4.03 Cash +Merger: SoftBank New Sprint CashEquity + New Synergies SoftBank + New Sprint SoftBank Pro Forma SoftBank Transaction Value Sprint Equity Synergies Merger Value Note: Totals may not sum due to rounding.
Slide 23: SoftBank Transaction is Superior
SoftBank Transaction is Superior (Present Value, Including Synergies) $7.65 + 21% $6.31 ($0.47) $0.75 w ueSprint Pro Forma SoftBank Spectrum Deployment Synergies Pro Forma DISH Proposal es ergies) Merger Value Costs Note: Totals may not sum due to rounding. 22 Source: Companies' filings, presentatio
Slide 24: Comparison of Leverage
Detailed Calculations COMPARISON OF LEVERAGE 23
Slide 25: DISH Pro Forma Net Debt
DISH Pro Forma Net Debt Commentary $41.6 1 Current Net Debt as of 12/31/2012: $10.6 A — Sprint $21.5bn Debt (excluding SoftBank convertible) less $8.2bn Cash B — Clearwire $4.5bn Debt less $0.9bn Cash $9.3 C — DISH $14.2bn Debt less $9.5bn Cash $4.7 2 — $9.3bn incremental debt to be raised at Sprin
Slide 26: Superior Capital Structure
Superior Capital Structure 2 1 3.0x 5.9x 7.6x 6.0x Net Debt / EBITDA Net Debt / EBITDA Gross Debt / EBITDA Gross Debt / EBITDA excl. synergies excl. synergies excl. synergies excl. synergies (2012 EBITDA: (2012 EBITDA: (2012 EBITDA: (2012 EBITDA: $4,646mm) $7,010mm) $4,646mm) $2,364mm) $ 41.6bn $ 35