Softbank Group Corp. · TSE:9984
Softbank — Q3 FY2023 Earnings Presentation
81 slides from Softbank's earnings presentation, Feb 8, 2024
Slide 1: Earnings Results for the 9-month Period Ended December 31, 2023
Earnings Results for the 9-month Period Ended December 31, 2023 February 8, 2024
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: FY2023Q3 Highlights
FY2023Q3 Highlights Significant improvement in consolidated results 1 with ¥950.0B net income Acquired ¥1.1T T-Mobile shares for no additional 2 consideration NAV increased ¥2.8T QoQ to ¥19.2T driven by the 3 increased value of Arm Portfolio shift from Alibaba to AI, with Arm as the 4 core 5 Signifi
Slide 4: Consolidated Results
Consolidated Results Some figures in this presentation are rounded and may not add up to the figures presented as the total. 4
Slide 5: Consolidated Results (quarterly)
Consolidated Results (quarterly) (¥ B) FY2022 FY2023 Q3 Q3 Change Net sales 1,693.3 1,774.8 +81.5 Gain/loss on Investments -511.6 424.6 +936.2 Income before income tax -582.7 1,171.5 +1,754.2 Net income -783.4 950.0 +1,733.4 Net Income: Net income attributable to owners of the parent 5
Slide 6: Gain/Loss on Investments and Net Income (quarterly)
Gain/Loss on Investments and Net Income (quarterly) (¥ B) Gain/Loss on investments Investment gains Net income 950.0 drove substantial net income 526.1 424.6 improvement -57.6 -477.6 -264.6 -511.6 -783.4 -699.0 -931.1 Q3 Q4 Q1 Q2 Q3 FY2022 FY2023 Net Income: Net income attributable to owners of the
Slide 7: Gain/Loss on Investments (FY2023 quarterly trend)
Gain/Loss on Investments (FY2023 quarterly trend) (¥ B) Investment Business of Holding Companies SVF Others Consolidated 63.2 29.5 424.6 Returned to gain 531.3 276.2 3.8 -264.6 -169.9 -689.7 -570.2 -13.0 -699.0 FY2023 FY2023 FY2023 Q1 Q2 Q3 SVF: SoftBank Vision Funds 7
Slide 8: Acquired ¥1.1T T-Mobile shares for no additional consideration
Acquired ¥1.1T T-Mobile shares for no additional consideration Some figures in this presentation are rounded and may not add up to the figures presented as the total. 8
Slide 9: Acquisition of T-Mobile Shares
Acquisition of T-Mobile Shares Contingent Condition of a trailing 45-day VWAP ≧ $149.35 consideration (Part of consideration was met on Dec 22, 2023 for Sprint merger) Acquired 48.8M shares equivalent to ¥1.1T for no additional consideration Gain on investment recorded on P/L for FY2023Q3: ¥316.1B A
Slide 10: Investment Return on Sprint
Investment Return on Sprint ¥ 5.0T Equity IRR Borrowings 26% (repaid) MOIC 8.2X ¥2.1T (As of Dec 31, 2023) ¥3.4T Equity value The amounts of investment and return are calculated using forex rates on each transaction day or valuation date. ¥0.4T Equity IRR and MOIC are calculated based on equity
Slide 11: Investment Return on Sprint
Investment Return on Sprint ¥ 5.0T ¥ 5.1T Equity IRR Borrowings 26% (repaid) MOIC 8.5X ¥2.1T ¥3.4T ¥3.5T Equity value (As of Feb 7, 2024) The amounts of investment and return are calculated using forex rates on each transaction day or valuation date. ¥0.4T Equity IRR and MOIC are calculated base
Slide 12: Market Cap of U.S. Telecoms
Market Cap of U.S. Telecoms ($ B) Before Sprint acquisition by SBG 206 185 158 Largest telecom 127 120 by market cap in the U.S. 22 4.3 17.2 AT＆T Verizon T-Mobile AT＆T Verizon T-Mobile + Sprint Oct 12, 2012 Dec 31, 2023 (Source) Created by SBG based on data from Bloomberg Oct 12, 2012: Business day
Slide 13: Market Cap of U.S. Telecoms
Market Cap of U.S. Telecoms ($ B) Before Sprint acquisition by SBG 206 185 183 158 World’s largest 127 120 telecom by market cap 22 4.3 17.2 AT＆T Verizon T-Mobile AT＆T Verizon T-Mobile China + Sprint Mobile Oct 12, 2012 Dec 31, 2023 (2 nd largest) (Source) Created by SBG based on data from Bloomberg
Slide 14: T-Mobile Share Price
T-Mobile Share Price (Jan 19, 2024) Record high since IPO ($) 165.16 Up 99% since the merger 150 (Dec 31, 2023) 160.33 125 100 (Apr 1, 2020) 75 82.99 Mar 31 Mar 31 Mar 31 Mar 31 Dec 31 2020 2021 2022 2023 2023 $82.99: Opening price on Apr 1, 2020 14
Slide 15: Key Indicators
Key Indicators Some figures in this presentation are rounded and may not add up to the figures presented as the total. 15
Slide 16: Key Indicators
Key Indicators Sep 30, 2023 Dec 31, 2023 NAV ¥16.4T ¥19.2T (Net Asset Value) ($109.7B) ($135.6B) LTV (Loan-to-Value) 10.6% 11.5% Cash position ¥5.1T ¥4.4T For details of NAV and LTV, see Appendix “Definition and Calculation Method of SBG’s NAV and LTV (as of Sep 30, 2023)” and “Definition and Calcul
Slide 17: Change in NAV
Change in NAV (¥ T) Share Up ¥2.8T price Forex driven by higher share prices Others despite negative forex + 4.2 - 1.1 - 0.3 19.2 NAV 16.4 +3.0：Arm +0.4：T-Mobile Sep 30, 2023 Dec 31, 2023 For details of NAV, see Appendix “Definition and Calculation Method of SBG’s NAV and LTV (as of Sep 30, 2023)” a
Slide 18: Arm Share Price
Arm Share Price (Jan 19, 2024) Record high since IPO ($) 80 (Dec 31, 2023) 75.15 78.58 Up 54.1 % (Since IPO) (Sep 30, 2023) 60 53.52 (IPO price) 51.00 40 Sep 30 Dec 31 2023 2023 18
Slide 19: Investment Return on Arm
Investment Return on Arm Equity IRR ¥11.0T Borrowings 21% (repaid) MOIC ¥10.0T Equity value 4.2X (As of Dec 31, 2023) ¥3.3T ¥2.3T The amounts of investment and return are calculated using forex rates on each transaction day or valuation date. Return Equity IRR and MOIC are calculated based on th
Slide 20: Investment Return on Arm
Investment Return on Arm ¥11.7T Equity IRR ¥11.0T Borrowings (repaid) 22% MOIC ¥10.0T ¥10.7T Equity value 4.5X (As of Feb 7, 2024) ¥3.3T ¥2.3T The amounts of investment and return are calculated using forex rates on each transaction day or valuation date. Return Return Equity IRR and MOIC are ca
Slide 21: SoftBank Corp. (9434) Share Price and Dividend
SoftBank Corp. (9434) Share Price and Dividend (Jan 22, 2024) Record high since IPO (¥) 1,991 Up 33% Dividend yield 2,000 (Since IPO) 4.9% (As of Dec 31, 2023) 1,750 1,760 (IPO price) (Dec 31, 2023) 1,500 1,500 SBG dividend income ¥966.3B 1,250 (Since IPO) 1,000 Mar 31 Mar 31 Mar 31 Mar 31 Mar 31 De
Slide 22: SVF: Gain/Loss on Investments (quarterly)
SVF: Gain/Loss on Investments (quarterly) USD basis (SVF Segment) 34,467 ($ M) Profit for the last 3 consecutive quarters 13,567 10,910 FY23Q3 4,087 4,607 5,554 FY23 2,869 3,549 3,768 Q1 2,285 2,969 FY21 FY23 958 785 Q2 630 715 Q3 1,157 -1,748 952 FY22 147 Q4 FY17 FY17 FY17 FY17 FY18 FY18 FY18 FY18
Slide 23: SVF: Gain/Loss on Investments (cumulative)
SVF: Gain/Loss on Investments (cumulative) USD basis (SVF Segment) 66,375 ($ M) 60,821 56,825 55,874 Cumulative investment losses 26,353 31,262 continue to improve 20,166 16,398 12,849 12,786 11,403 8,242 9,655 5,373 8,526 3,088 1,743 2,373 958 1,876 FY17 FY17 FY17 FY17 FY18 FY18 FY18 FY18 FY19 FY19
Slide 24: LTV
LTV Net of asset-backed finance 40% 35％ 30% 25％ 21.6% Remain at low 20% 18.2% 20.4% 14.5% 15.0% 11.0% 10.6% 11.5% level with 10% 8.0% sufficient funding capacity 0% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY2021 FY2022 FY2023 As of the end of each quarter For details of LTV, see Appendix "Definition and Calculat
Slide 25: Cash Position
Cash Position (¥ T) 6.0 5.8 Maintain 5.1 5.1 5.0 4.6 4.4 high level 4.3 4.0 3.8 3.0 2.9 2.1 2.0 1.0 0.0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY2022 FY2023 As of the end of each quarter Cash position: Cash and cash equivalents + short term investments recorded as current assets + undrawn commitment line + bond
Slide 26: Impact of Forex (FY2023Q3)
Impact of Forex (FY2023Q3) QoQ appreciation of yen negatively impacted NAV and equity (Sep 30, 2023) (Dec 31, 2023) $1 = ¥149.58 → ¥141.83 On NAV On accounting Equity -¥0.9T -¥1.1T Consolidated net income +¥0.3T For details of NAV, see Appendix “Definition and Calculation Method of SBG’s NAV and LTV
Slide 27: Shift from Alibaba to AI
Shift from Alibaba to AI Some figures in this presentation are rounded and may not add up to the figures presented as the total. 27
Slide 28: Change in Composition of Assets Held
Change in Composition of Assets Held Equity value of holdings basis Net of asset-backed finance Dec 31, 2019 Dec 31, 2023 Others Others Alibaba T-Mobile/ Deutsche Telekom 5% T-Mobile/ 0.02% 7% Deutsche Telekom 8% Alibaba 9% Arm SoftBank Corp. SoftBank 32% 16% Corp. 13% 50% 12% SVFs 9% 38% Arm SVFs C
Slide 29: Change in Composition of Assets Held = Shifting to AI-centric Portfolio
Change in Composition of Assets Held = Shifting to AI-centric Portfolio Equity value of holdings basis Net of asset-backed finance Dec 31, 2019 Dec 31, 2023 Core of 5% 0.02% AI shift 7% Others 8% Alibaba 9% Others T-Mobile/ Deutsche Telekom T-Mobile/ Arm Deutsche Telekom 32% 16% Alibaba SoftBank Cor
Slide 30: Change in Regional Composition
Change in Regional Composition Equity value of holdings basis Net of asset-backed finance Dec 31, 2019 Dec 31, 2023 North America China China North America Latin 8% 14% 21% America 1% Japan 54% 15% EMEA 11% Latin America 4% Other APAC 3% 9% Other APAC 17% 43% Japan China-centric EMEA risk mitigated
Slide 31: Change in NAV Composition
Change in NAV Composition (¥ T) 19.2 18.5 Shifted from 3.8 16.7 15.5 16.4 Alibaba to a 6.1 2.6 13.9 14.1 3.9 focus on Arm 2.5 0.6 3.4 2.7 1.7 2.6 2.2 7.3 Alibaba 7.6 9.9 Arm 7.2 9.3 9.2 8.3 8.3 SVF1/SVF2/LatAm Funds 7.7 7.6 7.3 7.3 SoftBank Corp. 6.0 6.3 T-Mobile/Deutsche Telekom 2.4 2.5 Other 2.0 1
Slide 32: NAV
NAV ¥27.9T ¥19.2T (Dec 31, 2023) Rising for the last four consecutive quarters 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2023 (FY) As of the end of each quarter For details of NAV, see Appendix “Definition and Calculation Method of SBG’s NAV and LTV (as of Dec 31, 2023)” Infor
Slide 33: NAV and Market Cap
NAV and Market Cap ¥27.9T (Dec 31, 2023) NAV ¥19.2T -52% Market cap ¥9.2T 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2023 (FY) As of the end of each quarter For details of NAV, see Appendix “Definition and Calculation Method of SBG’s NAV and LTV (as of Dec 31, 2023)” Informatio
Slide 34: Arm
Arm Some figures in this presentation are rounded and may not add up to the figures presented as the total. 34
Slide 35: >280 billion Arm-based Chips Shipped
Arm-based Chips Shipped (cumulative) (Billion) Cumulative to Sep 2023 >280 billion 1990 2023 (As of the end of Sep each year) (Source) Arm The number of Arm-based chips shipped on this page is the actual shipments of royalty units (chips incorporating Arm technology) by Arm licensees up to Sep 30, 2
Slide 36: Progress in Strategy with Industry Leaders
Progress in Strategy with Industry Leaders Renesas Electronics Adopted Arm-based technology for RA8M1, high-performance microcontroller which delivers real-time operation Media Tek Adopted Arm-based CPU and GPU for Dimensity 9300, chip for high-performing smartphones Microsoft Developed its first CP
Slide 37: Quarterly Revenue (US-GAAP)
Quarterly Revenue (US-GAAP) ($ M) License and other revenue Royalty revenue 806 824 Revenue continues 724 692 675 to reach record high 630 354 388 299 Highest-ever 258 188 275 quarterly royalty 470 revenue 434 442 425 400 418 Q1 Q2 Q3 Q1 Q2 Q3 (Source) Arm FY2022 FY2023 For details, see Arm Investor
Slide 38: Quarterly Non-GAAP Operating Income (US-GAAP)
Quarterly Non-GAAP Operating Income (US-GAAP) ($ M) 381 338 297 289 272 Up 17% yoy 198 Q1 Q2 Q3 Q1 Q2 Q3 (Source) Arm See the end of Arm’s FYE24-Q3 Shareholder Letter for a reconciliation of Non-GAAP Operating Income FY2022 FY2023 to the most directly comparable GAAP metric. For details, see Arm Inv
Slide 39: Annual Revenue (US-GAAP)
Annual Revenue (US-GAAP) ($ M) 3,155 - Annual revenue License and other revenue 3,205 guidance announced by Arm Royalty revenue 2,703 2,679 2,027 1,004 Steady performance 1,141 1,017 714 Q1-Q3 actual 2,305 1,562 1,675 1,313 1,288 2020 2021 2022 2023 (FY) (Source) Arm For details, see Arm Investor Re
Slide 40: Guidance (US-GAAP)
Guidance (US-GAAP) Revised full year guidance Revenue upwards FY2023 FY2023 Q4 (E) (E) Revenue $850M - $900M $3,155M - $3,205M (Reference: Prior guidance) - ($2,960M - $3,080M) Non-GAAP operating expense ~$490M ~$1,700M Non-GAAP fully diluted earnings per share $0.28 - $0.32 $1.20 - $1.24 (Source) A
Slide 41: Arm's Growth Drivers
Arm’s Growth Drivers Growth from Growth from Growth from royalty revenue subsystems compute for AI Increasing demand Reduces development cost Energy efficient compute driving royalty revenue and improve time-to-market and AI capability World’s largest ecosystem consisting of companies related to Arm
Slide 42: Growth from Royalty Revenue
Growth from Royalty Revenue Increase in chip shipment and higher royalty rates per chip will increase royalty revenue Semiconductor industry growth Market share gains in new areas Chips with more Arm technology will lead to higher royalty rates per chip (Source) Arm 42
Slide 43: Growth from Subsystems
Growth from Subsystems In addition to IP components, Arm provides integrated and verified configurations of Arm IP (subsystem) Reduces development cost and accelerates time-to-market for specific end-markets and use cases Microsoft’s Azure Cobalt CPU for cloud servers, are developed using Arm ba
Slide 44: Growth from Compute for AI
Growth from Compute for AI From cloud to edge using AI requires energy-efficient, high- performing, cost-effective chips Energy-efficient, and high in compute performance Demonstrated generative AI and LLM capabilities including image creation and live translation AI is already run on Arm-base
Slide 45: World's Largest Ecosystem
World’s Largest Ecosystem Arm has built out the world’s largest collection of companies who work together to make Arm-based chip design successful ~70% World population using Arm-based +15M products +1,000 Software developers Partner companies involved in developing involved in shipping Arm-based ch
Slide 46: "AI is everywhere"
“AI is everywhere” “You can’t run AI without Arm” Rene Haas, Arm CEO CES 2024 Photo: Fortune Brainstorm TECH/Flickr 46
Slide 47: Investment Strategy / SVF
Investment Strategy / SVF SVF: SoftBank Vision Funds Segment. Includes SVF1, SVF2, and LatAm Funds. Some figures in this presentation are rounded and may not add up to the figures presented as the total. 47
Slide 48: SVF: Gain/Loss on Investments (FY2023Q3)
SVF: Gain/Loss on Investments (FY2023Q3) USD basis (SVF Segment) SVF1 SVF2 LatAm Funds Combined +$1,940M +$1,703M +$281M +$4,087M Strong ByteDance • Share price rise in public assets Share price rise in +¥600.7B performance public assets • Private up rounds Other investments +$163M Gain/Loss on Inve
Slide 49: SVF2: Gain/Loss on Investments (quarterly)
SVF2: Gain/Loss on Investments (quarterly) USD basis (SVF2) ($ M) FY2023Q2 FY2023Q3 +$1,136M (54 co) +$2,919M (96 co) Markup +1,158 (8 co) Share price rise Public companies +151 (7 co) Private companies +984 (47 co) +1,761 (88 co) Up rounds, etc. -929 (74 co) Private companies -1,546 (95 co) -287 (9
Slide 50: SVF: Gain/Loss on Investments (quarterly)
SVF: Gain/Loss on Investments (quarterly) USD basis (SVF Segment) 34,467 ($ M) Profit for the last 3 consecutive quarters 13,567 10,910 FY23Q3 4,087 4,607 5,554 FY23 2,869 3,549 3,768 Q1 2,285 2,969 FY21 FY23 958 785 Q2 630 715 Q3 1,157 952 FY22 147 -1,748 Q4 FY17 FY17 FY17 FY17 FY18 FY18 FY18 FY18
Slide 51: SVF: Gain/Loss on Investments (cumulative)
SVF: Gain/Loss on Investments (cumulative) USD basis (SVF Segment)c 66,375 ($ M) 60,821 56,825 55,874 Cumulative investment losses 26,353 31,262 continue to improve 20,166 16,398 12,849 12,786 11,403 8,242 9,655 5,373 8,526 3,088 1,743 2,373 958 1,876 FY17 FY17 FY17 FY17 FY18 FY18 FY18 FY18 FY19 FY1
Slide 52: SVF1: Cumulative Investment Return (as of Dec 31, 2023)
SVF1: Cumulative Investment Return (as of Dec 31, 2023) ($ B) 106.3 89.6 Exited 36.1 64.1 Public companies (investments 28.2 before exit) 18.0 Private companies (investments 25.3 24.2 before exit) Investment cost Cumulative investment return The information contained herein is provided solely for il
Slide 53: SVF2: Cumulative Investment Return (as of Dec 31, 2023)
SVF2: Cumulative Investment Return (as of Dec 31, 2023) ($ B) 52.3 Exited 2.8 Public companies 8.6 (investments before exit) 33.3 3.2 4.4 Private companies (investments 40.9 before exit) 25.7 Investment cost Cumulative investment return The information contained herein is provided solely for illustr
Slide 54: Funding Rounds of Private Portfolio Companies
Funding Rounds of Private Portfolio Companies Private portfolio companies raised $8B+ in 2023 Main funding rounds in 2023 41 Funding rounds 48% AV JV % Up rounds $8.2B Capital raised As of Dec 31, 2023. (Source) SBIA Analysis. Based on calendar year 2023 funding rounds. Funding Rounds includes the n
Slide 55: Invested Amounts (SVF1 + SVF2 + LatAm Funds + SBG)
Invested Amounts (SVF1 + SVF2 + LatAm Funds + SBG) ($ B) 2.5 SBG 0.2 1.8 Resumed investment 1.5 Focused on SVF1+ 0.9 uncovering superior opportunities SVF2+ 2.3 LatAm Funds 1.1 0.5 0.5 0.5 0.1 0.1 0.2 0.9 0.3 0.4 0.4 0.4 0.2 0.3 0.1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY2022 FY2023 Invested amounts by SBG: Investm
Slide 56: SVF2: Select Recent Investments
SVF2: Select Recent Investments SVF2 led the funding round totaling $65M SVF2 participated in a funding round (FY2023Q2) totaling $238M (FY2023Q2) Remote World Wide Global Web Cloud SaaS Mobile WFH WAN optimization SASE Platform Firewall Antivirus Secure web gateway Headquarters Domestic office Over
Slide 57: Financial Strategy
Financial Strategy 57
Slide 58: FY2023 Financial Strategy
FY2023 Financial Strategy Financial management Adhering to adaptable to both financial policy Defense and Offense 58
Slide 59: Adhering to Financial Policy
Adhering to Financial Policy Maintain LTV below 25% in normal times 1 (upper threshold of 35% even in times of emergency) 2 Maintain at least 2-year worth of bond redemptions in cash Secure recurring distributions and dividend income from 3 SVF and other subsidiaries 59
Slide 60: Respond to Both Defense and Offense
Respond to Both Defense and Offense Invest in the Defense against Information further downside Revolution, while maintaining financial stability Maintain LTV below 25% in normal times (LTV = 11.5% as of Dec 31, 2023) Maintain at least 2-year worth of bond redemptions in cash (Cash position = ¥4.4T a
Slide 61: Capital Allocation
Capital Allocation New Shareholders investments return* Endeavor to strike a Financial policy balance （Financial stability） * The level of NAV discount is also considered 61
Slide 62: Share Price Movers
Share Price Movers NAV NAV (Net Asset Value) Discount Confidence in NAV Track record of growth trajectory growth (investment strategy) 62
Slide 63: Share Buyback and Share Price (SBG vs. Nikkei 225)
Share Buyback and Share Price (SBG vs. Nikkei 225) 300 200 +72% +67% (Dec 31, 2023) SBG 100 Nikkei 225 ¥0.6T (Feb to May 2019) ¥2.5T (Mar 2020 to May 2021) ¥1.4T (Nov 2021 to Nov 2022) ¥4.5T share buyback in total 0 Jan 2019 Jan 2020 Jan 2021 Jan 2022 Jan 2023 Indexed with Jan 1, 2019 as 100 Share b
Slide 64: NAV and Market Cap
NAV and Market Cap NAV growth (Dec 31, 2023) NAV = most important driver ¥19.2T Market cap ¥9.2T 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2023 (FY) As of the end of each quarter For details of NAV, see Appendix “Definition and Calculation Method of SBG’s NAV and LTV (as of De
Slide 65: Actions We Need Now
Actions We Need Now Cash NAV is driven by Growth growth position investment ¥4.4T Reinvestment investments Monetization Leveraging debt capacity Shareholders Financial return improvement ¥4.5T returned Q3 FY2023 LTV remained at low level in the past 5 years Cash position: Cash and cash equivalents +
Slide 66: Summary
Summary Significant improvement in consolidated results 1 with ¥950.0B net income Acquired ¥1.1T T-Mobile shares for no additional 2 consideration NAV increased ¥2.8T QoQ to ¥19.2T driven by the 3 increased value of Arm Portfolio shift from Alibaba to AI, with Arm as the 4 core 5 Significant improve
Slide 67: Information Revolution - Happiness for Everyone
“Information Revolution －Happiness for Everyone” 67
Slide 68: SoftBank
SoftBank
Slide 69: Appendix
Appendix Some figures in this presentation are rounded and may not add up to the figures presented as the total. 69
Slide 70: Gain/Loss on Investment at SVF: Difference between P/L and Segment Results
Gain/Loss on Investment at SVF: Difference between P/L and Segment Results FY2023 (¥ B) Q1 Q2 Q3 (Consolidated P/L) SVF -13.0 -570.2 531.3 Reconciliations Gain on investments in 172.8 591.6 69.4 subsidiaries, etc. (Segment results) SVF 159.8 21.4 600.7 SVF: SoftBank Vision Funds 70
Slide 71: Value Changes in Portfolio (cumulative)
Value Changescin Portfolio (cumulative) USD basis (SVF Segment) Mar 31, 2023 Dec 31, 2023 No change No change 26 co Gain 13 co Gain (6%) +$46.4B (3%) +$56.0B 101 co 115 co (21%) (24%) 346 co 349 co (73%) (73%) Loss Loss -$54.8B -$59.0B -$8.4B (473 co) -$3.0B (477 co) The information contained herein
Slide 72: SVF: Gain/Loss on Investments
SVF: Gain/Loss on Investments USD basis (SVF Segment) FY2023Q2 (Total +$147M) FY2023Q3 (Total +$4,087M) Markup +$6,180M (89 companies) +$7,403M (153 companies) +557 +404 +242 +989 +3,990 +598 +2,790 +706 +2,731 +577 (16 co) (26 co) (15 co) (20 co) (12 co) (12 co) (25 co) (68 co) (25 co) (23 co) Incl
Slide 73: SVF1: Gain/Loss on Investments
SVF1: Gain/Loss on Investments USD basis (SVF1) FY2023Q2 (Total +$2,413M) FY2023Q3 (Total +$1,940M) Markup +$4,924M (18 companies) +$3,880M (21 companies) +217 +15 +41 +767 +3,884 +10 +2,177 +170 +1,197 +327 (4 co) (1 co) (2 co) (9 co) (2 co) (2 co) (2 co) (4 co) (10 co) (3 co) Incl. Arm Performance
Slide 74: SVF2: Gain/Loss on Investments
SVF2: Gain/Loss on Investments USD basis (SVF2) FY2023Q2 (Total -$2,084M) FY2023Q3 (Total +$1,703M) Markup +$1,136M (54 companies) +$2,919M (96 companies) +318 +376 +185 +151 +105 +560 +587 +418 +1,158 +196 (7 co) (22 co) (11 co) (7 co) (7 co) (8 co) (19 co) (50 co) (8 co) (11 co) Public Performance
Slide 75: SVF1 Public Portfolio Companies (as of Dec 31, 2023)
SVF1 Public Portfolio Companies (as of Dec 31, 2023) (a) (b) (c) = (b) - (a) (d) = (b) / (a) (a) (b) (c) = (b) - (a) (d) = (b) / (a) ($ M) Investment cost *2 Gross return*3 Gross gain (loss) *4 Investment cost *2 Gross return *3 Gross gain (loss) *4 Company Gross MOIC Company Gross MOIC to SVF1 to S
Slide 76: SVF2 Public Portfolio Companies (as of Dec 31, 2023)
SVF2 Public Portfolio Companies (as of Dec 31, 2023) (a) (b) (c) = (b) - (a) (d) = (b) / (a) (a) (b) (c) = (b) - (a) (d) = (b) / (a) ($ M) Investment cost *2 Gross return*3 Gross gain (loss) *4 Investment cost *2 Gross return *3 Gross gain (loss) *4 Company Gross MOIC Company Gross MOIC to SVF2 to S
Slide 77: Monetization and Capital Allocation (FY2023Q1-Q3)
Monetization and Capital Allocation (FY2023Q1-Q3) (¥ T) Sale of Arm shares -0.6 5.1 0.7 1st installment for Arm shares acquired SVF’s investment and SBG’s strategic -0.5 4.4 Undrawn investment 0.6 0.8 commitment line -0.6 Contribution to SVF2 Monetization Debt repayment Undrawn 1.5 -0.2 0.7 commitme
Slide 78: Equity Value of Holdings: Diversified Portfolio
Equity Value of Holdings: Diversified Portfolio Net of asset-backed finance 0.02% 5% Alibaba 23% 18% 32% Arm 12% 45% 439 38% SVF1+SVF2+ LatAm Funds 43% investments 432 435 investments investments 15% 13% SoftBank Corp. 10% 5% 10% 9% T-Mobile/Deutsche Telekom 8% 8% 8% Others Mar 31 Mar 31 Dec 31 2022
Slide 79: Equity Value of Holdings: Diversified Portfolio
Equity Value of Holdings: Diversified Portfolio Net of asset-backed finance 15% 8% China 31% 15% Japan 18% 9% Other APAC 11% 12% 9% 43% 27% EMEA 20% 4% 5% 4% Latin America 25% 24% 21% North America Mar 31 Mar 31 Dec 31 2022 2023 2023 Classification of regions based on the location of each portfolio
Slide 80: Definition and Calculation Method of SBG's NAV and LTV (as of Dec 31, 2023)
Definition and Calculation Method of SBG’s NAV and LTV (as of Dec 31, 2023) 1. NAV (Net Asset Value) • NAV = Equity value of holdings - Net debt 2. Equity value of holdings (after adjustment for asset-backed financing) • Alibaba: the number of Alibaba ADSs equivalent to the number of shares held by
Slide 81: Definition and Calculation Method of SBG's NAV and LTV (as of Sep 30, 2023)
Definition and Calculation Method of SBG’s NAV and LTV (as of Sep 30, 2023) 1. NAV (Net Asset Value) • NAV = Equity value of holdings - Net debt 2. Equity value of holdings (after adjustment for asset-backed financing) • Alibaba: the number of Alibaba ADSs equivalent to the number of shares held by