Softbank Group Corp. · TSE:9984
Softbank — FY2021 Earnings Presentation
126 slides from Softbank's earnings presentation, May 13, 2022
Slide 1: Earnings Results for the Fiscal Year Ended March 31, 2022
Earnings Results for the Fiscal Year Ended March 31, 2022 Investor Briefing May 13, 2022 SoftBank Group Corp.
Slide 2: Disclaimers
Disclaimers This presentation provides relevant information about SoftBank Group Corp. (“SBG”) and its subsidiaries (including Arm Limited, together with SBG, the “Company”) and its affiliates (together with the Company, the “Group”) and does not constitute or form any solicitation of investment inc
Slide 3: Exchange rates and abbreviations
Exchange rates per JPY used for translation FY2020 FY2021 Average during quarter Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1 USD 107.74 105.88 104.45 106.24 110.00 110.47 113.60 117.10 1 CNY 15.16 15.27 15.71 16.31 17.01 17.09 17.75 18.43 EOQ Jun 30 Sep 30 Dec 31 Mar 31 Jun 30 Sep 30 Dec 31 Mar 31 1 USD 110.71 122.39
Slide 4: How We See the Current Environment
How We See the Current Environment Developments in U.S. monetary policy and increased geopolitical risks posed by the Russia-Ukraine issue 3.5 170 105 10 Year May 6, NASDAQ 2 Year 2022 S&P500 3.1% 160 May 6, 3 2022 100 -4.9% 150 ＋47% May 6, 2.3% -9.1% 2022 2.5 140 95 -13.5% 2.7% 130 2 90 120 +33% 2.
Slide 5: How We See the Current Environment: U.S.-listed Chinese stocks
How We See the Current Environment U.S.-listed Chinese stocks are sliding in the wake of regulatory developments in both U.S. and China ($) Announcement of policies & regulations 25,000 in U.S. and China Regulatory and policy development in China Jun 2021: Data Security Law was passed Aug 2021: ”Com
Slide 6: How We Act under the Current Environment
How We Act under the Current Environment Understanding of current environment SBG in FY21 ◆ External environment remains highly ◆ Equity value of holdings declined amid volatile with capital markets in a volatile market conditions broadly risk-off mode ◆ Firmly kept the financial policies: LTV maint
Slide 7: Index
Index • Accounting • Finance • SoftBank Vision & LatAm Funds
Slide 8: SoftBank
SoftBank
Slide 9: Accounting
Accounting
Slide 10: Consolidated Results
Consolidated Results (¥ B) FY20 FY21 Change Change % Net sales 5,628.2 6,221.5 593.4 10.5% Income before 5,670.5 -869.6 -6,540.0 ― income tax Net income (attributable to owners of the 4,988.0 -1,708.0 -6,696.0 ― parent) (Reference) Gain (loss) on 7,529.0 -3,434.7 -10,963.7 ― investments Investment B
Slide 11: Change in Reportable Segments
Change in Reportable Segments • From FY21Q1, SoftBank Latin America Funds, which were previously included within “Other,” are newly presented as an independent reportable segment. • In FY21Q2, “SoftBank Vision Funds Segment” was renamed from “SVF1 and Other SBIA-Managed Funds Segment.” FY20 Investme
Slide 12: Termination of Agreement on Sale of All Shares in Arm: Accounting Treatment
Termination of Agreement on Sale of All Shares in Arm: Accounting Treatment • Sep 2020: Agreed on a sale of all Arm shares to NVIDIA • Feb 2022: Terminated the sale agreement – $2.0B cash received in Sep 2020 ✓ $1.25B: SBGC received as a deposit -> Recognized ¥146,375M as profit in FY21Q4 as the dep
Slide 13: Segment Income: Investment Business of Holding Companies
Segment Income: Investment Business of Holding Companies (¥ B) P/L item FY20 FY21 Items Gain on investments at Investment Business of Holding Companies 946.1 104.1 Gain relating to settlement of prepaid forward contracts using Alibaba shares ― 200.0 Gain relating to a partial settlement of Alibaba p
Slide 14: Partial Sale of T-Mobile Shares in September 2021
Partial Sale of T-Mobile Shares in September 2021 Number of shares held Procured (millions) Execution Transaction amount Deutsche timing T-Mobile ($ B) Telekom shares shares a Borrowings made using 106.3M T-Mobile shares pledged as collateral (margin loan) 4.38 Jul 2020 Number of shares held as of J
Slide 15: T-Mobile Shares: The Company's Holding & Fair Values
T-Mobile Shares: The Company’s Holding (incl. Deutsche Telekom’s Unexercised Call Options) & Fair Values T-Mobile shares held by the FY20 FY21 Company as of FY21-end: Jun. 26 Q4-end Q1-end Q2-end Q3-end Q4-end 60.92M shares ((i)+(ii) below) $144.83 (i) Unexercised call options held by Deutsche Telek
Slide 16: Deutsche Telekom Shares: The Company's Holding & Fair Values
Deutsche Telekom Shares: The Company’s Holding & Fair Values In Sep 2021, the Company FY21 acquired 225M Deutsche At execution in Sep Q2-end Q3-end Q4-end Telekom shares in return for Deutsche Telekom share price the sale of T-Mobile shares. €17.67 €17.40 €16.93 €16.30 ¥48.5B unrealized valuation lo
Slide 17: T-Mobile Shares: Fair Values of Contingent Consideration
T-Mobile Shares: Fair Values of Contingent Consideration • Contingent consideration: $144.83 The Company’s right to T-Mobile share price $134.85 $125.29 $127.76 $128.35 acquire 48.75M T-Mobile shares for no $114.36 $115.98 additional consideration if $104.15 certain conditions are met ¥93.0B derivat
Slide 18: Investment in Listed Stocks and Other Instruments
Investment in Listed Stocks and Other Instruments: Main Impact on B/S and P/L (Gain (Loss) on Investments) (¥ B) Consolidated B/S Consolidated P/L Cumulative Consolidated B/S Consolidated P/L Investor Investment type (Minuses show liabilities) amount recorded gain (loss) account account since incept
Slide 19: Derivative Gain (Loss) on Alibaba Prepaid Forward Contracts
Derivative Gain (Loss) on Alibaba Prepaid Forward Contracts (Quarterly Trend) $293.98 Alibaba share price (at each quarter end) (Impact on P/L) (¥ B) FY21 $226.78 $232.73 Income before 1,133.0 $226.73 income tax ($10.1B) $215.70 $148.05 Net income 705.1 $118.79 $108.80 ($6.3B) Day 1 gain on 63.8 the
Slide 20: Consolidated P/L Summary (IFRSs)
Consolidated P/L Summary (IFRSs) (¥ B) P/L item FY20 FY21 Change Continuing operations Gain on investments at Investment Business of Holding Companies: Net sales +5,628.2 +6,221.5 +593.4 +¥104.4B (See page 5 for details.) • Loss on investments in listed stocks and other instruments: -¥229.5B Gross p
Slide 21: Difference in Tax Rate
Difference in Tax Rate (Minuses show expenses) FY21 Rate (％) Amount (¥ B) Income before income tax (minus: loss) -869.6 *1 Effective statutory tax rate 31.5％ 273.6 (Main factors of difference) (i) Permanent difference (mainly tax rate differences) -127.1% -1,105.2 (ii) Income taxes related to interc
Slide 22: Loss Carryforwards (as of Mar. 31, 2022)
Loss Carryforwards (as of Mar. 31, 2022) (¥ B) Valuation Carrying amounts Income base Tax base allowance in B/S Total of companies 3,551.7 1,128.8 -1,083.2 45.6 based in Japan Total of companies 335.1 47.8 -21.6 26.2 based outside of Japan Consolidated total 3,886.8 1,176.6 -1,104.8 71.8 Accounting
Slide 23: Consolidated B/S Summary: Non-current assets
Consolidated B/S Summary (IFRSs) – 1 (¥ B) B/S 1 Main items Mar 2021 Mar 2022 Change Current assets related to investments from SB Northstar item A: Decrease primarily due to sale of listed stocks 10,820.2 10,028.6 -791.6 B: Decrease due to sale of investments C: Decrease in the fair value of long c
Slide 24: Investment Securities on Consolidated B/S
Investment Securities on Consolidated B/S (Main Investments) (¥ B) Mar 2021 Mar 2022 Change Outline Investment securities 3,706.8 4,208.6 +501.8 FVTPL 3,187.6 3,730.9 +543.3 • New and follow-on investments and increase in fair values of investments Latin America Funds 441.0 1,123.2 +682.2 • 101 inve
Slide 25: Consolidated B/S Summary: Non-current liabilities
Consolidated B/S Summary (IFRSs) – 2 (¥ B) B/S item Main items Mar 2021 Mar 2022 Change 1 12,891.0 12,381.5 -509.5 SB Northstar: Borrowings (current) -¥1,833.0B 1 ¥1,170.4B decrease in short-term borrowings and repayment of $6.0B margin Interest-bearing debt 7,735.2 7,328.9 -406.4 loans using Alibab
Slide 26: Consolidated B/S Summary: Equity
Consolidated B/S Summary (IFRSs) – 3 (¥ B) B/S Items Mar 2021 Mar 2022 Change item 1 • Net income attributable to owners of the parent: -¥1,708.0B 11,955.6 11,707.8 -247.8 • Decrease following the retirement of treasury stock: -¥2,475.8B 366,860,600 shares were retired in May 2021 (equivalent to Com
Slide 27: Impact of the Weaker Yen on P/L & B/S
Impact of the Weaker Yen on P/L & B/S (Illustration) P/L B/S Entities Components Foreign exchange Exchange differences gain (loss) from translation Foreign currency- denominated cash and cash equivalents/ SBG stand-alone + Loans receivable Foreign exchange gain Subsidiaries conducting (excl. investm
Slide 28: Impact of the Weaker Yen in FY21
Impact of the Weaker Yen in FY21 Foreign exchange loss in consolidated P/L in FY21: ¥706.1B (of which <90% from SBG stand-alone) ・SBG stand-alone: ¥708.4B foreign exchange loss related to foreign currency-denominated borrowings from foreign subsidiaries ・SBG stand-alone: ¥146.0B foreign exchange los
Slide 29: Consolidated C/F Summary (IFRSs)
Consolidated C/F Summary (IFRSs) (¥ B) C/F item FY20 FY21 Change Primary details for FY21 C/F from operating activities: +¥2,168.2B yoy Subtotal of cash flows from • +¥2,044.5B incremental impact from sales of investments, etc. by SB Northstar C/F from 3,659.3 • Increase in income taxes paid: -¥285.
Slide 30: Segment Income: SoftBank Vision Funds
Segment Income: SoftBank Vision Funds (¥ B) P/L FY20 FY21 FY21 Items Gain (loss) on investments at SVF1, SVF2, and others 6,357.5 -3,547.4 SVF1: +¥1,226.1B Entire sale of shares in 3 portfolio companies and a partial sale of shares in 13 portfolio Realized gain on investments* 419.6 1,354.7 companie
Slide 31: Co-investment Program to SVF2: Related Party Transaction
Co-investment Program to SVF2: Related Party Transaction Masayoshi SBG Son* 1 Equity interests: 17.25% (B) (A) Distribution: $173M Equity acquisition amount: $2,923M 100% (Return of capital) (i) Acquisition costs: $2,594M (committed capital: $2.6B) (ii) Adjustments etc.: $329M Equity interests: 82.7
Slide 32: Appendix
Appendix
Slide 33: How the Weaker Yen Moves Fair Values of Investment Assets
How the Weaker Yen Moves Fair Values of Investment Assets at Foreign Subsidiaries/Associates Year-end rate Year-average rate Year-end rate ¥110/$ ¥115/$ ¥120/$ Equity (B/S): Changes in fair values Increase/decrease in of investment assets exchange differences at foreign from the translation of subsi
Slide 34: Investment in WeWork
Investment in WeWork • In Aug 2021, SBG transferred SBWW, a wholly owned subsidiary that holds WeWork common stock and preferred stock, to SVF2 in accordance with the policy for handling the investment portfolio. • On Oct. 21, 2021, WeWork listed on NYSE through a merger with a SPAC, BowX Acquisitio
Slide 35: Breakdown of Goodwill/Intangible Assets
Breakdown of Goodwill/Intangible Assets (¥ B) Change B/S Main items Mar 2021 Mar 2022 Outline Item Amorti- Changes in Others zation FX rate 4,684.4 4,897.9 * Arm 2,621.6 2,898.1 ― +276.6 ― Goodwill SBKK 907.5 907.5 ― ― ― Increased due to the revision of the provisional LINE 627.9 630.6 ― ― +2.7 amou
Slide 36: T-Mobile Shares: Partial Exercise of Call Options by Deutsche Telekom
(FY21) T-Mobile Shares: Partial Exercise of Call Options by Deutsche Telekom & Loss on Partial Sale of T-Mobile Shares Related to the Exercise • In Sep 2021, Deutsche Telekom FY20 FY21 partially exercised its call options. Jun. 26 Q4-end Q1-end At execution in Sep (Breakdown of the exercised call op
Slide 37: Finance
Finance SBG stand-alone financial figures are calculated by excluding those of self- financing entities from the consolidated figures, unless otherwise stated. Major self-financing entities are SBKK (including its subsidiaries such as Z Holdings), SVF1, SVF2, SoftBank Latin America Funds, Arm, and P
Slide 38: Summary of FY21
Summary of FY21*1 Steadily continued investment activities and shareholder returns, while firmly keeping financial policies even under the volatile market environment Recorded net loss of ¥1,708.0B mainly due to falls in share prices of listed Results portfolio companies / NAV - Recorded ¥3,434.7B i
Slide 39: Results of Investment Businesses, Financial Condition, Financial Strategy, ESG
- Results of Investment Businesses - Financial Condition - Financial Strategy - ESG Initiatives Finance 3
Slide 40: Investment Activities of the Group
Investment Activities of the Group Multiple investment entities are active in their focused fields, preparing for the arrival of full-scale AI era SBG SVF1 AI ＆ Unicorns Existing investments 82 companies in total etc. SVF2 Latin America Funds AI & Unicorns AI & Unicorns (in Latin America) etc. 101 c
Slide 41: Investment Strategy of SoftBank Group
Investment Strategy of SoftBank Group SoftBank Group ＝ “Vision Capitalist” for the Information Revolution ◼ Drive the Information Revolution with portfolio companies and group companies by providing capital to bring the vision to life ◼ Focus on maximizing investment return from a mid- to long- term
Slide 42: Gain (Loss) on Investments & Net Income
Gain (Loss) on Investments & Net Income Investment loss of ¥3,434.7B and net loss of ¥1,708.0B Gain (loss) on investments Net income (attributable to owners of the parent) ■ Investment Business of Holding Companies ■ SVF1&2 ¥7,529.0B ■ Latin America Funds ■ Other ¥4,988.0B ● Total gain (loss) on inv
Slide 43: Calculation of NAV (Net Asset Value)
Calculation of NAV (Net Asset Value) (as of Mar. 31, 2022) NAV = ¥18.5T (¥ T) Adjustment for SBG stand-alone interest-bearing debt ¥14.9T*3 asset-backed finance － SBG stand-alone cash position ¥2.7T*3 5.8 （V） （L） NAV 4.7 （V）-（L） 12.1 29.0 23.2 7.4 【19.4】兆円 Adjustment for asset-backed finance ¥7.3T 1
Slide 44: NAV & NAV per Share
NAV & NAV per Share NAV decreased by 31% YoY NAV (Net Asset Value) NAV per share*1 and share price (¥ T) (¥) Share price 26.7 NAV per share 15,353 15,000 18.5 11,204 10,000 9,330 5,559 5,000 0 Mar 21 Mar 22 Mar 21 Mar 22 (Note) As of the end of each fiscal year *1 NAV per share = NAV/Total number of
Slide 45: Equity Value of Holdings
Equity Value of Holdings Equity value of holdings decreased to ¥23.2T Excl. asset-backed finance Composition (as of March 31, 2022) (¥ T) T-Mobile 23％ Alibaba 4％ 32.1 10％ SBKK 0.4％ Deutsche Telekom 30.4 17％ SVF1 12％ Arm 21％ SVF2 3% SB Northstar 25.7 5％ Latin America Funds 6％ Other 24.7 23.2 12.4 See
Slide 46: Equity Value of Holdings: Diversification of Portfolio
Equity Value of Holdings: Diversification of Portfolio Greater asset diversification mainly due to investment progress Excl. asset-backed finance in SVF2. March 31, 2021 March 31, 2022 Proportion of Proportion of listed shares SB Northstar listed shares (net of asset-backed finance) (net of asset-ba
Slide 47: SVF1&2: Cumulative Investment Return
SVF1&2: Cumulative Investment Return (SBG Consolidated Basis, as of Mar. 31, 2022) Cumulative investment return of $117.9B at SVF1 and $47.6B at SVF2 SVF1 SVF2 ($ B) ($ B) 150 75 117.9 47.5 47.6 100 89.2 Exited*1 2.1x 50 Exited*1 1.9x Currently held 1.1x Currently held 0.9x and listed and listed 50
Slide 48: SVF1&2 etc. Fair Value of Portfolio Companies
SVF1&2 etc. Fair Value of Portfolio Companies (as of Mar. 31, 2022; unrealized value only) Regional composition remained almost unchanged from the end of December 2021 Asia, Europe, U.S. Investments in China (fair value) Latin America, etc. 34% decreased from December-end, while fair value of invest
Slide 49: SVF1&2: Average Investment Cost Scaled Down
SVF1&2: Average Investment Cost Scaled Down SVF2’s average investment cost per company is $0.2B SVF1 SVF2 Average investment cost Average investment cost per company per company $0.9B $0.2B Cumulative Cumulative investment cost $87B investment cost $41B Cumulative number Cumulative number of investm
Slide 50: Activities of SVF1&2 (FY21): Investments
Activities of SVF1&2 (FY21): Investments New and follow-on investments by SVF1&2 totaled $44.2B, mainly by SVF2 Sale / Investment New listing Monetization ($ B) SVF2 made new & follow-on investments of $40.8B in FY21, including new investments in 2.1 207 companies 0.4 0.4 13.5 13.7 9.2 0.5 SVF1 Tota
Slide 51: Activities of SVF1&2 (FY21): New Listings
Investment Activities of SVF1&2 (FY21): New Listings A total of 21 companies listed; with multiple large listings Sale/ Investment New listing Monetization Fund Companies listed *1 *1 SVF1 12 companies with a total fair value of $13.9B as of Mar. 31, 2022 (Dingdong) *1 *1 SVF2 (JD Logistics) 11 comp
Slide 52: Activities of SVF1&2 (FY21): Sale/Monetization
Investment Activities of SVF1&2 (FY21): Sale/Monetization A total of $24.6B of sales & monetization*1*2 Sale/ Investment New listing Monetization Fund Sale/Monetization*1 SVF1 Partial sale of 13 investments incl. above and entire sales of 2 investments*1 $16.5B in total*1*2 （partial） SVF2 KE Holding
Slide 53: Cycle of Investment and Recovery (FY21)
Cycle of Investment and Recovery (FY21) Approx. ¥2.2T invested capital was recovered and funded for new investments. Share repurchase continued. Investments/ Contribution to SVF1 ¥65.4B ($0.6B) Return to shareholders Source of funds Distribution from SVF1*1 & 2 ¥1,708.0B Distribution from ($15.2B) S
Slide 54: SVF1&2: Capital Commitment
SVF1&2: Capital Commitment (as of Mar. 31, 2022) ($ B) 2.6 *1 SVF1 33.1 （29.9） SVF2 53.4 65.5 98.6 56.0 （57.3） (87.2) (48.2) SBG Third-party limited partners Management, etc.*2 * Numbers in brackets represent amounts drawn. *1 The presented SBG’s committed capital to SVF1 includes approximately $8.2
Slide 55: Arm: Revenue and Adjusted EBITDA
Arm: Revenue and Adjusted EBITDA Revenue*1 (annual) Adjusted EBITDA*2 (annual) ($ M) $2,665M ($ M) 1,980 1,823 1,788 1,809 1,689 $999M 827 596 436 371 365 FY16 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY18 FY19 FY20 FY21 (Notes) 1. Source: Arm 2. Based on, but not necessarily in conformity with IFRS 3. Al
Slide 56: Arm: Preparation for IPO
Arm: Preparation for IPO Arm-based chips shipped (annual)*1 Market share*2 29.0B Mobile IoT Powering the 95% 63% Information Revolution Becoming the key player in growth industries Automotive Cloud 24% 5% ‘90 ‘90'90 ‘94 ’94 ‘98 ’98 ‘02 ’02 ‘06 ’06 ‘10 ’10 ‘14 ’14 ‘18 ’18 Arm will prepare for an IPO
Slide 57: Results of Investment Businesses, Financial Condition, Financial Strategy, ESG
- Results of Investment Businesses - Financial Condition - Financial Strategy - ESG Initiatives Finance 21
Slide 58: Main Financing Activities in FY21Q4
Main Financing Activities in FY21Q4 Executed asset-backed finance with agility Domestic subordinated bonds Corporate Issued domestic subordinated bonds (Feb) +¥550.0B (+$4.7B) bonds Redeemed domestic subordinated bonds at -¥404.4B ( -$3.5B) maturity (Feb) Arm shares Asset-backed finance (Mar) +$8.0B
Slide 59: LTV Trend
LTV Trend*1 Continue to maintain ample financial buffer Excluding asset-backed finance 25% 21.6% 18.7% *2 17.5% 20.4% 15.9% 14.3% 11.6% 12.2% 8.8% Mar 20 Jun 20 Sep 20 Dec 20 Mar 21 Jun 21 Sep 21 Dec 21 Mar 22 *1 As of the end of each quarter *2 See “LTV Calculation: SBG Stand-alone Net Debt” and “L
Slide 60: Cash Position
Cash Position Maintain ample cash position, more than sufficient for bond redemptions for the next 2 years Cash position Bond redemption schedule*2 ¥2.9T *1 (¥ B) 124.7 Undrawn commitment line*3 Bond redemptions 2,749.9 for the next 2 years (¥1.3T) ＞ 426.0 873.2 711.8 1,021.2 Mar 22 Apr 22 - Mar 23
Slide 61: Bond Redemption Schedule
Bond Redemption Schedule Redemptions were funded by carefully managed bond issuance with due consideration for the market environment. Domestic senior bonds (¥ B) 1,378.8 Domestic subordinated bonds Domestic hybrid bonds 1,140.6 328.8 Foreign currency-denominated senior notes Foreign currency-denomi
Slide 62: SBG Credit Spread
SBG Credit Spread SBG’s credit has been softening since the beginning of the year against a backdrop of deteriorating credit market Spread of SBG foreign currency- denominated notes SBG 5 years CDS bps bps 650 450 600 400 550 500 350 450 300 400 350 250 300 200 250 150 200 150 100 100 EUR 2.2Y USD 2
Slide 63: Asset-backed Finance Using Arm Shares (March 2022)
Asset-backed Finance Using Arm Shares (March 2022) Monetization of Arm shares ahead of planned IPO, contributing to improved financial flexibility Participating financial Financing terms institutions Total JP Morgan financing $8.0B Mizuho Bank amount Goldman Sachs Collateral Arm shares held by SBG (
Slide 64: SBG Stand-alone Interest-bearing Debt
SBG Stand-alone Interest-bearing Debt*1 Interest-bearing debt excl. non-recourse items remained stable Main variance factors from Dec. 31, 2021 • Issuance of domestic subordinated bonds +¥550.0B (¥ B) 14,918.7 • Redemption of domestic subordinated bonds on maturity -¥404.4B 14,033.4 13,967.4 13,860.
Slide 65: SBG Stand-alone Cash Position
SBG Stand-alone Cash Position Cash position increased due to asset-backed finance (¥ B) 3,589.6 3,357.9 Cash position of SB Northstar 3,103.3 3,079.9 991.6 595.9 2,681.1 330.0 1,008.1 Main variance factors from Dec. 31, 2021 582.1 Increase Decrease ・Asset-backed finance using Arm shares ・SVF2 capita
Slide 66: SBG Stand-alone Net Interest-bearing Debt
SBG Stand-alone Net Interest-bearing Debt Adjusted net interest-bearing debt decreased due to accelerated monetization 12,135.3 11,486.0 Excl. SB Northstar 10,919.2 (¥ B) 10,513.7 8,558.8 Adjustments relating to finance Asset-backed finance -¥7,323.6B 6,163.8 7,411.2 Hybrid finance -¥87.6B 5,397.8 6
Slide 67: Adjustment for Asset-backed Finance for LTV and NAV Calculation
Adjustment for Asset-backed Finance for LTV and NAV Calculation Non-recourse asset-backed finance is deducted from debt, and value of assets required for settlement is deducted from assets Collar/Forward/Put (¥ T) 1 2 Margin loan, etc. transactions 29.0 Shares Alibaba/T-Mobile/Deutsche Alibaba/T-Mob
Slide 68: (Reference) Forward / Collar Transaction
(Reference) Forward / Collar Transaction Objective Non-recourse financing using derivatives • Transaction in which parties agree to settle at a pre-specified price or price range at a specific date in the future • Fund procurement through pledged shares and derivative referencing them Outline • Sett
Slide 69: Results of Investment Businesses, Financial Condition, Financial Strategy, ESG
- Results of Investment Businesses - Financial Condition - Financial Strategy - ESG Initiatives Finance 33
Slide 70: Financial Strategy for FY22
Financial Strategy for FY22 Already established optimal financial management structure as an investment company (2) Flexible and agile (1) Firmly keeping financial management financial policy that can respond to any changes Finance 34
Slide 71: (1) Firmly Keeping Financial Policy
(1) Firmly Keeping Financial Policy 1. Manage LTV below 25% in normal times (upper threshold of 35% even in times of emergency) 2. Maintain funds covering bond redemptions for at least the next 2 years 3. Secure recurring distribution and dividend income from SVF1&2 and other subsidiaries Finance 35
Slide 72: (2) Flexible and agile financial management
(2) Flexible and agile financial management that can respond to any changes ◆ Already established a cycle of “investment” → “value realization /monetization” → ”reinvestment (partially to shareholder returns)” as an investment company ◆ Investment activities/shareholder returns continue while firmly
Slide 73: Cycle of Investment and Recovery in FY2020
Cycle of Investment and Recovery in FY2020: Breakdown of Investment and Monetization Allocated capital generated by ¥4.5T Program mainly to share repurchase and financial improvements. Started to manage surplus funds through investment in SB Northstar (¥ T) ¥4.5T Program Invest- ment*1 Share repurch
Slide 74: Cycle of Investment and Recovery in FY2021
Cycle of Investment and Recovery in FY2021: Breakdown of Investment and Monetization Allocated capital generated by various means primarily to new investments SB Northstar monetization Invest- (¥ T) Sale/ monetization*1 *3 ment*2 *3 SVF1&2 distribution Bond issuance/ redemption, Interest Share payme
Slide 75: Direction of Financial Management for FY2022
Direction of Financial Management for FY2022 (Illustrated) Flexible and agile response to any changes in the external environment LTV (％) Scenario Assumption Action to be taken 25 External Uncertainty in the Continue new Firmly committed to the financial policy of environment external environment in
Slide 76: Share Repurchase
Share Repurchase Total repurchase amount: ¥1T (maximum) Details Repurchase period: From Nov. 9, 2021 to Nov. 8, 2022 1. Firm commitment to the financial policies A flexible approach to purchase shares considering 2. Investment opportunities these factors Policies 3. Level of NAV discount Depending o
Slide 77: Results of Investment Businesses, Financial Condition, Financial Strategy, ESG
- Results of Investment Businesses - Financial Condition - Financial Strategy - ESG Initiatives Finance 41
Slide 78: Summary of ESG Initiatives in FY21: Governance
Summary of ESG Initiatives in FY21: Governance Promoting diversity in the Board of Directors • More diversified Board in terms of skills, gender, and nationality • 5 out of 9 directors are External Directors, composing a majority Development of Group ESG policies • Developed Group policies on ESG ar
Slide 79: Summary of ESG Initiatives in FY21: Environment
Summary of ESG Initiatives in FY21: Environment Established GHG emission reduction targets and promoted reduction actions • Major subsidiaries are on track to achieve GHG targets Achieve Net Zero Carbon Achieve Carbon Neutrality Achieve Carbon Neutrality Convert 100% of electricity by 2030 by FY2030
Slide 80: Summary of ESG Initiatives in FY21: Society
Summary of ESG Initiatives in FY21: Society Promotion of human rights initiatives • SBG – Conducted an assessment targeting all officers and employees and identified areas of human rights risk to consider countermeasures – Aiming to expand human rights initiatives to suppliers and group companies in
Slide 81: Summary of ESG Initiatives in FY21: ESG Promotion through Investment
Summary of ESG Initiatives in FY21: ESG Promotion through Investment Actively invest in start-ups that address ESG issues by providing services that contribute to climate change mitigation, circular economy, D&I, and elimination of disparity and discrimination ※This slide shows examples of portfolio
Slide 82: Expansion of Disclosure/Status of Major ESG Indices
Expansion of Disclosure/Status of Major ESG Indices Expansion of disclosure • Increased non-financial information in the Annual Report and the Sustainability Report – Extensively increased the number of group companies and measures subject to disclosure and will continue to expand disclosure Status
Slide 83: Appendix
Appendix
Slide 84: Equity Value of Holdings (Calculation Method)
Equity Value of Holdings (Calculation Method) 1USD = ¥122.39 ¥29.0T (non-adjusted) Adjustment for (¥ T) Equity value of holdings; Equity value of holdings; asset-backed finance Alibaba 2.7 adjusted ＝ non-adjusted ー Collar contracts, shown in the dotted box T-Mobile 0.4 Deutsche Telekom etc. 3.5 Shar
Slide 85: LTV Calculation: SBG Stand-alone Equity Value of Holdings
LTV Calculation: SBG Stand-alone Equity Value of Holdings (L) Adjusted ¥4.72T SBG stand-alone net debt (V) Adjusted SBG stand-alone =20.4% equity value of holdings*1 ¥23.18T (¥ T) Adjusted SBG Interest of SBG in Other Major = + + stand-alone equity SVF1&2 & Latin Investments in value of holdings ass
Slide 86: Details of SBG Stand-alone Equity Value of Holdings (1/2)
LTV Calculation: Details of SBG Stand-alone Equity Value of Holdings (1/2) (¥ T) Assets Value Calculation method (a) Alibaba 5.23 Multiplying the number of Alibaba ADSs equivalent to the number of shares held by SBG by Before adjustment 8.67 the ADS price Deducting (a) and (b) below (amount required
Slide 87: Details of SBG Stand-alone Equity Value of Holdings (2/2)
LTV Calculation: Details of SBG Stand-alone Equity Value of Holdings (2/2) (¥ T) Assets Value Calculation method (g) T-Mobile 0.96 summing - Value of SBG’s shareholding (incl. the number of shares subject to call options held by Deutsche Telekom (DT): 56,124,954 shares as of Mar. 31, 2022) × the sha
Slide 88: LTV Calculation: SBG Stand-alone Net Debt
LTV Calculation: SBG Stand-alone Net Debt (L) Adjusted SBG stand-alone net debt*1 ¥4.72T (V) Adjusted SBG stand-alone =20.4% ¥23.18T equity value of holdings (¥ T) Adjusted SBG Consolidated Net debt at self- Other = - stand-alone net - debt net debt financing entities adjustments 4.72 17.10 4.97 7.4
Slide 89: LTV Calculation: Details of SBG Stand-alone Net Debt
LTV Calculation: Details of SBG Stand-alone Net Debt (¥ T) SBG stand-alone net debt Consolidated net interest-bearing debt, 12.14 net of interest-bearing debt at self-financing entities (before adjustment) - Add 50% to interest-bearing debt (to treat it as liability) for USD Hybrid Notes issued in J
Slide 90: SBG Credit Rating Trend
SBG Credit Rating Trend Aim to improve credit rating under the investment holding company rating criteria Acquisition of Acquisition of Acquisition Acquisition Listing 14 A+ Japan Telecom Vodafone KK of Sprint of Arm of SBKK 13 A 12 JCR (A－) A- Outlook Positive 11 BBB+ 10 On November 2, 2021, JCR BB
Slide 91: SB Northstar: Cumulative Investment Gain (Loss)
SB Northstar: Cumulative Investment Gain (Loss)*1 ¥283.9B -¥225.0B -¥213.6B＊2 -¥521.2B -¥462.4B Impact on net income ¥248.7B＊2 attributable to SBG Positive impact Stocks Stocks + credit Derivatives Total investment on net income due to losses borne transactions loss by Masayoshi Son SBG SB Northstar
Slide 92: SB Northstar: Assets Under Management
SB Northstar: Assets Under Management (as of Mar. 31, 2022) Significant downsizing of investments Stocks, etc. and derivatives (fair value) Notional principal of options （¥ B） $44.3B Long call option 2,371.5 of listed stocks 1,741.0 $13.4B $11.2B Stocks & other $4.9B $4.4B instruments*1 $1.4B 2,198.
Slide 93: Consolidated Interest-bearing Debt / Cash Position
Consolidated Interest-bearing Debt/ Cash Position/ Net Interest-bearing Debt Consolidated Interest-bearing Debt *1 （\ B） Mar 21 Jun 21 Sep 21 Dec 21 Mar 22 SBG stand-alone 13,023.3 14,033.4 13,967.4 13,860.4 14,918.7 Incl. SB Northstar 1,866.5 1,424.5 286.3 275.4 33.5 SVF1 and SVF2 444.2 543.3 827.2
Slide 94: Introduction of Co-investment Program to SVF2
Introduction of Co-investment Program to SVF2 Co-investment by management in SVF2 together with SBG, sharing both the profits and risks associated with investments, will lead to enhanced focus on the fund and contribute to SBG’s earnings growth. Masayoshi Son & SBG other Management, etc.*1 Equity Pr
Slide 95: Investor Briefing: SoftBank Vision & LatAm Funds
QUARTER ENDED MARCH 31, 2022 Investor Briefing SoftBank Vision & LatAm Funds NAVNEET GOVIL Managing Partner & Chief Financial Officer SoftBank Investment Advisers
Slide 96: 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 97: 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 98: Topics
4 Topics 01- Progress & Highlights 02- Performance & Impact on SoftBank Group (SBG) 03- In Focus: A Broadening Investment Platform
Slide 99: Progress & Highlights
Progress & Highlights == OoftBank Investment Advisers
Slide 100: A Volatile & Uncertain Market Backdrop
P RO G RE S S & H I G H L I G H T S 6 A Volatile & Uncertain Market Backdrop Rising Inflation & PROGRESS & HIGHLIGHTS Geopolitical Energy Policy Responses Risks Shock Consumer Price Index1 Geopolitical Risk Index2 Price per Barrel - Oil ($)1 % Change YoY Index Level: +8.5% 1.27 $127.98 2010 2012 201
Slide 101: Market Impact on Assets Under Management
SVF1 SVF2 LATAM P RO G RE S S & H I G H L I G H T S 7 Market Impact on Assets Under Management AUM Since Inception COVID-19 & Regulatory Developments March 2022 AUM1 Digital Acceleration & Market Volatility SVF1 $118.5B SVF2 $47.7B LatAm $9.4B SVF2 & LatAm $0.0B March 2022 $175.6B TOTAL AUM2 SVF1 $0
Slide 102: Performance Snapshot
SVF1 SVF2 LATAM 8 SoftBank SoftBank SoftBank Vision Fund 1 Vision Fund 2 LatAm Funds Combined Total Commitment $98.6B $56.0B $7.6B $162.2B Effective April 13, 2022 PROGRESS & HIGHLIGHTS Performance Acquisition Cost1 $87.7B $46.9B $7.0B $141.6B Snapshot Cumulative $30.8B $0.8B $2.4B $34.0B Investment
Slide 103: Continued Conviction in the AI Revolution
SVF2 P RO G RE S S & H I G H L I G H T S 9 Continued Conviction in the AI Revolution As of March 31, 2022 Select New Investments1 $46.9B $4.5B Dec-21 to Mar-22 $42.4B Inception to Dec-21 Total Acquisition Cost1 Footnotes: 1. Total Acquisition Cost includes cumulative cost from Inception of SoftBank
Slide 104: Portfolio Overview
SVF2 P RO G RE S S & H I G H L I G H T S 10 Portfolio Overview As of March 31, 2022 PORTFOLIO COST BY SECTOR (%) 252 $46.9B Logistics Frontier Tech Consumer Transportation Enterprise Total Total Acquisition Investments1 Cost2 Edtech Proptech Health Tech Fintech PORTFOLIO COST BY GEOGRAPHY ($B) $11.9
Slide 105: Disciplined Monetization Strategy
SVF1 P RO G RE S S & H I G H L I G H T S 11 Disciplined Monetization Strategy Full & Partial Exits | Inception to March 31, 2022 Portfolio Gross Realized Gross Realized Holding Period Company Proceeds1 Gain2 (Years) Key Monetization PUBLIC SALE Metrics $5.8B $2.9B 1.3 Gross Realized $1.0B $0.7B 2.8
Slide 106: Distributions to Limited Partners
SVF1 P RO G RE S S & H I G H L I G H T S 12 Distributions to Limited Partners Since Inception to March 31, 2022 Total Distributions (A) (B) (C) (D) (E) = (B)-(C) Fund Drawn Return of Pref Coupon / 3 Outstanding 2 Commitment Capital 1 Capital Equity Gains 4 Capital 5 Preferred Equity $40.0B $36.2B $1
Slide 107: Portfolio Evolution
13 Total Fair Value (Realized & Unrealized) Exited & Public Fair Value Exited & Public1 Private2 LATAM SVF2 SVF1 PROGRESS & HIGHLIGHTS Exited & Public Fair Value Portfolio Evolution Exited & Public As of March 31, 2022 Fair Value 77% 42% 87% LATAM SVF2 SVF1 Footnotes: 1. Exited & Public Fair Value r
Slide 108: Portfolio Companies Maintain Healthy Access to Capital
SVF1 SVF2 LATAM P RO G RE S S & H I G H L I G H T S 14 Portfolio Companies Maintain Healthy Access to Capital Three-Month Period Ended March 31, 2022 20 Funding Series E Series E Series J-1 Series F Series B Series D Series E Rounds1 $6.0B Capital Series D Series C Series C Series C Series D Series
Slide 109: Performance & Impact on SoftBank Group (SBG)
15 Performance & Impact on SoftBank Group (SBG)
Slide 110: SVF1 Contribution to SBG, Net of 3rd Party Interests
16 SVF1 2022 Inception to Mar 31 SVF1 Fund Net Profit2 $19.1 PERFORMANCE & IMPACT ON SBG Less: Change in 3rd Party Contribution to Interests in Fund (9.4) SBG, Net of 3rd SBG LP Income: 9.7 Share of Fund Net Profit Party Interests1,3 SBG GP Income: Amounts in USD Billions 3.4 Management & Performanc
Slide 111: SVF1 Contribution to SBG
17 SBG Paid-In Capital4 SVF1 PERFORMANCE & IMPACT ON SBG Contribution to SBG SBG Total Value5 Net Asset Value1 As of March 31, 2022 Distributions2 Accrued & Paid Performance Fees3 Footnotes: 1. Net Asset Value includes net changes in fair value of financial assets at fair value through profit or los
Slide 112: SVF2 Contribution to SBG
18 SBG Paid-In Capital3 SVF2 PERFORMANCE & IMPACT ON SBG Contribution to SBG SBG Total Value4 As of March 31, 2022 Net Asset Value1 Distributions2 Footnotes: 1. Net Asset Value includes net changes in fair value of financial assets at fair value through profit or loss (FVTPL) which is based on valua
Slide 113: LatAm Contribution to SBG
19 SBG Paid-In Capital3 LATAM PERFORMANCE & IMPACT ON SBG Contribution to SBG SBG Total Value4 As of March 31, 2022 Net Asset Value1 Accrued Performance Fees2 Footnotes: 1. Net Asset Value includes net changes in fair value of financial assets at fair value through profit or loss (FVTPL) which is ba
Slide 114: In Focus: A Broadening Investment Platform
20 In Focus: A Broadening Investment Platform
Slide 115: Our Global Platform Continues to Expand
SVF1 SVF2 LATAM A B RO A D E NI NG I NV E S T M E NT P L A T F O RM 21 Our Global Platform Continues to Expand Shared Vision, Amplified Ambition Assets under Management $175.6B1 Global Offices 14 Total Investments2 449 OUR THESIS SVF1 94 Large Addressable SVF2 252 Market SILICON VALLEY LONDON LATAM
Slide 116: The Evolution of Our Investing Platform
SVF1 SVF2 LATAM A B RO A D E NI NG I NV E S T M E NT P L A T F O RM 22 The Evolution of Our Investing Platform As of March 31, 2022 SVF1 SVF2 LATAM 2022: Integration of SVF1 SVF2 SoftBank LatAm Funds 2019: End of Investing Period for Vision Fund 1 Continued conviction in the AI revolution 2019: Laun
Slide 117: The SoftBank LatAm Funds
LATAM A B RO A D E NI NG I NV E S T M E NT P L A T F O RM 23 The SoftBank LatAm Funds OUR DIFFERENTIATORS Partnering with entrepreneurs defining the future of Latin America Regional GDP1 Brazil | Mexico | Miami Footnotes: 1. The World Bank. 2020 GDP - Latin America & Caribbean. The information provi
Slide 118: Our Investing Platform Spans Multiple Stages
LATAM A B RO A D E NI NG I NV E S T M E NT P L A T F O RM 24 Our Investing Platform Spans Multiples Stages As of March 31, 2022 Our multi-stage strategy is a EVOLVING INVESTMENT STRATEGY unique and powerful differentiator Global Investors lack local presence Growth Growth Equity Regional VCs Equity
Slide 119: Early Mover in a Market Ripe for Disruption
LATAM A B RO A D E NI NG I NV E S T M E NT P L A T F O RM 25 Early Mover in a Market Ripe for Disruption As of March 31, 2022 Annual VC Investment1 Active Global Investors 2019 $4.4B 2019 2021 $14.8B 2021 Footnotes: 1. Source: PitchBook. Why 2021 was a breakout year for Latin America's VC ecosystem.
Slide 120: The Leading Global Tech Investor in Latin America
26 # INVESTMENTS IN LATIN AMERICA, 2021 (SERIES A & UP) LATAM 30 A BROADENING INVESTMENT PLATFORM We are the partner of choice for LatAm The Leading Global entrepreneurs Tech Investor 18 in Latin America 14 11 As of March 31, 2022 10 8 6 6 6 6 5 Footnotes: Source: Pitchbook & SBIA Analysis. Includes
Slide 121: Invested in 32 Unicorns
LATAM 27 A BROADENING INVESTMENT PLATFORM Invested in 32 Unicorns As of March 31, 2022 1. Unicorns defined as investments with a value of over $1B. Undisclosed investments logos are not included. The Investments presented herein are solely for illustrative purposes, have been selected in order to de
Slide 122: SoftBank LatAm Funds Overview
LATAM A B RO A D E NI NG I NV E S T M E NT P L A T F O RM 28 SoftBank LatAm Funds Overview As of March 31, 2022 PORTFOLIO COST BY SECTOR (%) 103 $7.0B Logistics Consumer Transportation Enterprise Total Total Acquisition Investments1 Cost2 Edtech Proptech Fintech Other SELECT INVESTMENTS 7 32% Curren
Slide 123: Powering the Next Generation of Underrepresented Founders
A B RO A D E NI NG I NV E S T M E NT P L A T F O RM 29 Powering the Next Generation of Underrepresented Founders As of March 31, 2022 E M E R G E A C C E L E R AT O R Emerge Cohorts Total Investments1 VC Partners Footnotes: 1. Total Investments includes Investments from Fund Inception to March 31, 2
Slide 124: A Broadening Investment Platform
SVF1 SVF2 LATAM A B RO A D E NI NG I NV E S T M E NT P L A T F O RM 30 A Broadening Investment Platform Transportation Consumer [diandianxiaomi] Edtech Proptech [GOAT] Our Platform Health Tech Enterprise [Paypay] Logistics Fintech Frontier Tech The Investment logos presented herein are solely for il
Slide 125: Thank You
31 Thank You SoftBank Vision & LatAm Funds Investor Briefing Presentations Available at visionfund.com/presentations
Slide 126: SoftBank
SoftBank