Softbank Group Corp. · TSE:9984
Softbank — Q2 FY2020 Earnings Presentation
36 slides from Softbank's earnings presentation, November 2020
Slide 1: SoftBank Vision Funds Update
QUARTER ENDED SEPTEMBER 30, 2020 SoftBank Vision Funds 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: Monetization Strategy
Slide 5: Progress & Highlights
Progress & Highlights Investment Advisers
Slide 6: Update on SoftBank Vision Fund 2
PROGRESS & HIGHLIGHTS 6 Update on SoftBank Vision Fund 2 As of September 30, 2020 Total Commitment1 Acquisition Cost2 Total Fair Value3 Number of Investments4 CURRENT PORTFOLIO Transportation Health Tech Education Real Estate Consumer Enterprise & Logistics AV JV BEIKE Footnotes: 1. Total Commitment
Slide 7: SVF1: Key Developments
PROGRESS & HIGHLIGHTS 7 SVF1: Key Developments Three-Month Period Ended September 30, 2020 New Public Full Announced Listings1 Exits2 Transactions3 + + (Announced SPAC) Footnotes: 1. Relay Therapeutics – Source: Press release, “Relay Therapeutics Announces Pricing of Initial Public Offering”, July 1
Slide 8: SVF1: Portfolio Fair Value Changes
PROGRESS & HIGHLIGHTS 8 SVF1: Portfolio Fair Value Changes COVID-19 Cumulative Gain Cumulative Gain Inception to Dec 2019 Mar 2020 Jun 2020 Sep 2020 Inception to Sep 2020 ($8.9B) Quarterly Fair Value Uplifts & Write-Downs Fair Value Changes indicates the increase/decrease in Fair Value of unrealized
Slide 9: Performance Snapshot
9 SoftBank SoftBank Vision Fund 1 Group Total Commitment Total Commitment $98.6B $28.1B PROGRESS & HIGHLIGHTS Acquisition Cost1 SBG Paid-In Capital Performance $83.0B $24.1B Cumulative Investment Gains1 SBG Cumulative Increase in Value4 Snapshot $9.6B $2.0B As of September 30, 2020 Total Fair Value2
Slide 10: SVF1: Portfolio Companies
PROGRESS & HIGHLIGHTS 10 SVF1: Portfolio Companies As of September 30, 2020 PRIVATE Number of Investments1 Current Portfolio Companies2 PUBLIC Full Exits3 Footnotes: 1. Number of Investments includes investments in portfolio companies made by SoftBank Vision Fund 1 and joint-ventures with existing p
Slide 11: SVF1: Portfolio Composition By Sector
PROGRESS & HIGHLIGHTS 11 SVF1: Portfolio Composition By Sector As of September 30, 2020 Transportation Real Estate Consumer Fintech Enterprise Health Tech Frontier Tech & Logistics 7% 18% 6% 41% 5% 7% 16% COST $10.0B $11.4B $4.7B $34.0B $2.1B $2.2B $10.8B FAIR VALUE $5.3B $14.0B $4.5B $32.6B $3.5B $
Slide 12: SVF1: Measurable Value in Our Portfolio
PROGRESS & HIGHLIGHTS 12 SVF1: Measurable Value in Our Portfolio As of September 30, 2020 Total Acquisition Cost1 Cumulative Investment Gains1 Total Fair Value1,3 $83.0B $9.6B $92.6B Realized Investments2 Unrealized Investments FULL & PARTIAL PUBLIC PRIVATE $13.9B $12.0B $66.5B $66.7B $7.7B $8.8B Co
Slide 13: SVF1: 10 Public Listings Since Inception
PROGRESS & HIGHLIGHTS 13 SVF1: 10 Public Listings Since Inception As of September 30, 2020 2 NYSE: IPOB NASDAQ: RLAY NYSE: OCFT NASDAQ: VIR NYSE: UBER GROSS MOIC1 GROSS MOIC1 GROSS MOIC1 GROSS MOIC1 GROSS MOIC1 3.1x 4.0x 0.9x 3.9x 1.1x 3 3 NASDAQ: GH HKG: 1833 HKG: 6060 NASDAQ: TXG NYSE: WORK GROSS
Slide 14: SVF2: 1st Public Listing - Beike (KE Holdings Inc.)
PROGRESS & HIGHLIGHTS 14 SVF2: 1st Public Listing - Beike (KE Holdings Inc.) As of September 30, 2020 TICKER SVF1 - Cost3 Post - IPO Trading Activity4 NYSE: BEKE SEP 30 AUG 13 GROSS MOIC +87% NOV 2019 IPO – AUG 13 2020 Footnotes: 1. IPO Price represents KE Holdings Inc.’s listing price of publicly t
Slide 15: SVF1: Valuations in Recent Funding Rounds
PROGRESS & HIGHLIGHTS 15 SVF1: Valuations in Recent Funding Rounds Pre-Money Valuations Aug 2020 $5.8B Sept 2020 $4.0B Sept 2020 $3.5B Sept 2020 $700M Prior Round: Prior Round: Prior Round: Prior Round: Series E $3.7B Series E $2.5B Series F $1.7B Series E $1.4B Lead Lead Lead Lead Investors: Invest
Slide 16: Performance & Impact on SoftBank Group (SBG)
16 Performance & Impact on SoftBank Group (SBG)
Slide 17: SVF1 Contribution to SBG, Net of 3rd Party Interests
17 SVF1 2019 2020 Six-Month Period Ended Sep 30 Sep 30 Fund Net Profit (Loss)2 ($4.87) $7.87 PERFORMANCE & IMPACT ON SBG Less: Change in 3rd Party Contribution to Interests in Fund 2.57 (4.02) SBG, Net of 3rd SBG LP Income (Loss): (2.30) 3.85 Share of Fund Net Profit (Loss) Party Interests 1 SBG GP
Slide 18: SVF1 Contribution to SBG, Net of 3rd Party Interests
18 SVF1 2020 Inception to Sep 30 Fund Net Profit2 $3.86 PERFORMANCE & IMPACT ON SBG Less: Change in 3rd Party Contribution to Interests in Fund (1.91) SBG, Net of 3rd SBG LP Income: 1.95 Share of Fund Net Profit Party Interests 1 SBG GP Income: Amounts in USD billions 0.48 Management Fees & Performa
Slide 19: Contribution to SBG, Realized and Unrealized Values (SVF1)
19 SBG Paid-In Capital SVF1 PERFORMANCE & IMPACT ON SBG Contribution to SBG, Realized and SBG Total Value3 Unrealized Values Net Asset Value1 (Unrealized Value): As of September 30, 2020 Distributions2 (Realized Value): Footnotes: 1. Net Asset Value includes net changes in Fair Value of financial as
Slide 20: Contribution to SBG, Realized and Unrealized Values (SVF2)
20 SBG Paid-In Capital SVF2 PERFORMANCE & IMPACT ON SBG Contribution to SBG, Realized and SBG Total Value3 Unrealized Values Net Asset Value1 (Unrealized Value): As of September 30, 2020 Accrued Performance Fees2: Footnotes: 1. Net Asset Value includes net changes in Fair Value of financial assets a
Slide 21: In Focus: Monetization Strategy
21 In Focus: Monetization Strategy
Slide 22: SVF1: Investment Approach
22 EARLY STAGE GROWTH/EXPANSION LATE STAGE Growth & Equity Capital Required capital to scale Have proven unit economics Poised to become cash flow positive MONETIZATION STRATEGY SVF1: Investment Approach Cost by Revenue Stage Revenue Up0-50 to $50M $50M to $250M 50-250 $250M to $1B 250-1B Over 1B+ $
Slide 23: SVF1: Fund Life Cycle
MONETIZATION STRATEGY 23 SVF1: Fund Life Cycle Illustrative Timeline Investment Period Value Creation Period Monetization Period There can be no assurance that the operations and/or processes of SBIA and SoftBank Vision Fund 1 described in this Presentation will continue throughout the life of SoftB
Slide 24: SVF1: Disciplined Approach to Monetization
MONETIZATION STRATEGY 24 SVF1: Disciplined Approach to Monetization PUBLIC EXITED3 PUBLIC EXITED3 PUBLIC EXITED3 2 EXITED $13.9B $10.1B EXITED 2 $3.9B EXITED 2 SVF1 PUBLIC 1 Launch $9.9B PUBLIC 1 $12.0B $8.3B PUBLIC 1 MAY 2017 2017 Sep 2018 Sep 2019 Sep 2020 Footnotes: 1. Public includes the Fair Va
Slide 25: Exit Decision Considerations
25 Strategic Competitive Position Geopolitical Uncertainty Macroeconomic Volatility Risk Exposure MONETIZATION STRATEGY Exit Decision Long-term Investor Value Maximization Considerations Returning Capital to LPs Financial Opportunistic Profitability Goals IPO Window Future Growth Inbound Offers Mult
Slide 26: Exit Strategies
26 Public Markets IPO, DPO, SPAC MONETIZATION STRATEGY Strategic Exit Strategies Mergers & Acquisitions Restructuring & Recovery There can be no assurance that the operations and/or processes of SBIA and SoftBank Vision Fund 1 described in this Presentation will continue throughout the life of SoftB
Slide 27: Exit Strategies
27 Public Markets1 IPO, DPO, SPAC MONETIZATION STRATEGY Strategic Exit Strategies Mergers & Acquisitions Restructuring & Recovery 1. Opendoor not publicly listed as of September 30, 2020, the company is expected to become publicly listed via a SPAC acquisition by December 31, 2020. There can be no a
Slide 28: Public Markets
MONETIZATION STRATEGY 28 Public Markets INITIAL PUBLIC OFFERING DIRECT PUBLIC OFFERING SPECIAL PURPOSE ACQUISITION (IPO) (DPO) COMPANY (SPAC) MOIC MOIC MOIC GROSS REALIZED GROSS REALIZED COST1 COST1 COST1 MARKET VALUE4 PROCEEDS2 PROCEEDS3 $334M $450M $31M Dec 2018 Sep 2020 Oct 2017 Sep 2020 Aug 2018
Slide 29: Exit Strategies
29 Public Markets IPO, DPO, SPAC MONETIZATION STRATEGY Strategic Exit Strategies Mergers & Acquisitions Restructuring & Recovery There can be no assurance that the operations and/or processes of SBIA and SoftBank Vision Fund 1 described in this Presentation will continue throughout the life of SoftB
Slide 30: Strategic – Mergers & Acquisitions
MONETIZATION STRATEGY 30 Strategic – Mergers & Acquisitions ENTERPRISE VALUE1 INVESTMENT MOIC2 STRATEGIC RATIONALE ACQUIRED BY Transform Walmart’s position in country with 1.3+ billion people and significant runway for eCommerce penetration ANNOUNCED Help customers accelerate their digital ACQUISITI
Slide 31: Exit Strategies
31 Public Markets IPO, DPO, SPAC MONETIZATION STRATEGY Strategic Exit Strategies Mergers & Acquisitions Restructuring & Recovery OTHER UNDSICLOSED PORTFOLIO COMPANIES There can be no assurance that the operations and/or processes of SBIA and SoftBank Vision Fund 1 described in this Presentation will
Slide 32: SVF1: Performance on Fully Monetized Exits
MONETIZATION STRATEGY 32 SVF1: Performance on Fully Monetized Exits As of September 30, 2020 SVF1 Fully Exited Investments1 Investment MOIC2 1.8x Gross Blended IRR3 95% Gross Realized Proceeds4 $11.2B Footnotes: 1. SVF1 Fully Exited Investments reflects all investments for which 100% of position has
Slide 33: SVF1: Portfolio Evolution
33 Exited2 $13.9B $10.1B Public3 Private4 $9.9B $12.0B $3.9B MONETIZATION STRATEGY $67.7B $66.7B SVF1: Portfolio $8.3B Evolution SVF1 $26.2B Inception Fair Value1 2017 Sep 2018 Sep 2019 Sep 2020 Footnotes: 1. Amounts shown are the Fair Value of each cohort of investments. 2. Exited includes the Gros
Slide 34: SVF1: Portfolio Evolution
34 Exited & Public2 $25.9B Private3 $39.6B of our portfolio will be Exited & Public FV Public $10.1B Exited $9.9B and Public MONETIZATION STRATEGY $3.9B $66.7B SVF1: Portfolio $8.3B $67.7B $53.3B Evolution $26.2B Private Fair Value1 Sep 20204 Sep 2020 Sep 2018 Sep 2019 Pro-Forma5 Footnotes: 1. Amoun
Slide 35: Wrap-Up
35 Wrap-Up 01- Progress & Highlights 02- Performance & Impact on SoftBank Group 03- In Focus: Monetization Strategy
Slide 36: Thank You
36 Thank You == SoftBank Investment Advisers