Softbank Group Corp. · TSE:9984
Softbank — Q1 FY2025 Earnings Presentation
41 slides from Softbank's earnings presentation, Aug 7, 2025
Slide 1: Q1 FY2025 Earnings Results Investor Briefing
Ver.1.1 Q1 FY2025 Earnings Results Investor Briefing August 7, 2025 SoftBank Group Corp. Three-month period ended June 30, 2025
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: Exchange rates and abbreviations
Exchange rates per JPY used for translation FY2024 FY2025 Average during quarter Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1 USD 156.53 150.26 151.32 152.95 145.19 EOQ Jun 30 Sep 30 Dec 31 Mar 31 Jun 30 Sep 30 Dec 31 Mar 31 1 USD 149.52 144.81 Abbreviations Abbreviations used in Accounting and Finance section of this
Slide 4: 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 include SBKK (including its subsidiaries), Arm, SVF1, SVF2, LatAm Funds, etc.
Slide 5: Market Environment
Market Environment Market rebounded recently, led by AI-related stocks. SBG and our portfolio’s share prices also performing steadily. JPY’s appreciation trend since the beginning of the year has paused SBG and Key Portfolio Stock Indices*1 FX Rate (USD/JPY) Companies*1 160 160 160 (JPY) March 31, 2
Slide 6: FY2025Q1 – Key Indicators
FY2025Q1 – Key Indicators NAV increased significantly. Managed LTV even with large-scale investments FY2024 FY2025 Primary factors behind the changes end Q1 Arm share price increase (+¥7.6T) and JPY appreciation NAV ¥25.7T ¥32.4T (-¥1.2T) (+¥6.7T) Arm share price increase (-3.9ppt), Sale of T-Mobile
Slide 7: FY2025Q1 – Financial Summary
FY2025Q1 – Financial Summary Executed funding through diversified channels in preparation for advancing strategic investments Track records (USD) (JPY) Debt funding Bridge loan*1 $8.5B ¥1,219.3B For OpenAI investment Domestic bond issuance $4.3B ¥620.0B ¥500.0B of redemption $1.7B of redemption (Jul
Slide 8: Historical Equity Value of Holdings
Historical Equity Value of Holdings Equity value of holdings reached a record high, transitioning to an AI- centric portfolio. Assets held increased due to the rise in Arm’s share price and follow-on investment in OpenAI Net of asset-backed 38.3 (¥ T) 39.0 finance 36.3 33.1 33.7 31.4 19.8 21.0 16.7
Slide 9: Historical NAV
Historical NAV NAV increased by ¥6.7T QoQ driven by the recovery in Arm‘s share price. NAV trending at approx. ¥30T Jun 30, 2025 ¥32.4T Pro forma* Sep 2023 (Aug 6, 2025) Arm IPO ¥29.6T Arm SVF1/SVF2/ LatAm Funds Alibaba SoftBank Corp. T-Mobile/ Deutsche Telekom Yahoo! Japan Others 1998 2000 2002 200
Slide 10: Historical LTV
Historical LTV LTV improved despite large-scale investments, mainly driven by the rise in Arm’s share price and monetization of T-Mobile shares 35% (times of emergency) 25% (normal times) 18.2% 18.0% *1 18.4% 15.0% 17.0% 14.5% 12.5% 12.9% 11.0% 11.5% 10.6% 8.0% 8.4% 7.8% Jun 2022 Sep 2022 Dec 2022 M
Slide 11: Investment Amounts (SBG+SVF)
Investment Amounts (SBG+SVF) Accelerating full-scale AI investments ($B) 8.4 Investments in OpenAI Up to $30B (Planned) 7.5 Of the 1st Closing $10B, 3.4 $7.5B was invested from SVF2* ($2.5B syndicated to co-investors) 1.9 2.0 0.6 Other 0.9 investments FY2024Q1 FY2024Q2 FY2024Q3 FY2024Q4 FY2025Q1 • S
Slide 12: Key Upcoming Investments
Key Upcoming Investments Promoting AI investments while maintaining financial soundness Key Investment Amounts (Announced, FY2025 onward) ($B) Bridge loan Q1 Q2 Q3 Q4 procured 7.5 - 22.5 - 7.5 *1 Up to 1st Closing 2 nd Closing*2 Bridge loan secured - - 6.5 6.5 In the second half of FY2025 (plan) Tot
Slide 13: SBG's Financing: Utilizing Assets Held
SBG’s Financing: Utilizing Assets Held Equity value of holdings exceeds 7x the investment capital Sequentially monetizing assets to facilitate reinvestment in the AI sector Debt funding Listed shares $205B Net of asset-backed finance capacity (Proportion of listed shares: 76%) Cash position Track re
Slide 14: SBG's Financing: Cash Position
SBG’s Financing : Cash Position Utilize ample cash position for investments Debt funding Net of asset-backed finance capacity Cash position $25B (¥3.7T) Source of investment capital (image) Maintain ample cash position Equity value of holdings $270B • Enhanced cash position through sales of T-Mobile
Slide 15: SBG's Financing: Utilizing Bonds and Loans
SBG’s Financing: Utilizing Bonds and Loans Debt funding to be executed as needed by leveraging abundant funding capacity with LTV level in mind Debt funding Net of asset-backed finance capacity Bonds ◼ Retail bonds Cash position • Retail investor demand remains strong, supported by rising $25B domes
Slide 16: SBG's Financing: Summary
SBG’s Financing : Summary Balancing large-scale investments while adhering to our financial policy Leverage diversified funding channels and products with an optimally balanced approach Utilizing Utilizing Cash position assets held debt funding • Margin loan • Cash on hand • Domestic and • Collar, s
Slide 17: Cash Position and Future Bond Redemptions
Cash Position and Future Bond Redemptions Maintain ample cash position, over 2-year worth of bond redemptions, as illustrated in our financial policy Cash position Bond redemption schedule ¥ 3.7 T ($25B) * (¥ B) Undrawn Arm margin loan 724.1 borrowing capacity ＞ Bond redemptions for the next 2 years
Slide 18: SBG Stand-alone Interest-bearing Debt
SBG Stand-alone Interest-bearing Debt*1 Increased due to drawdown of bridge loan Main changes from Mar 31, 2025 Subsidiaries’ debt (¥ B) • Decrease of financial liabilities related to prepaid forward contracts -¥997.8B 14,328.8 SBG stand-alone interest-bearing debt 13,249.7 12,951.9 • Drawdown of br
Slide 19: SBG Stand-alone Cash Position
SBG Stand-alone Cash Position Despite executing large-scale investments, cash position increased primarily driven by asset sales (¥ B) SB Northstar*1 3,831.2 3,307.0 Main changes from Mar 2025 2,986.2 2,933.9 2,623.3 Increase Decrease ・Drawdown of bridge loan (+$8.5B) ・Investment in OpenAI (-$7.5B)
Slide 20: SBG Stand-alone Net Interest-bearing Debt
SBG Stand-alone Net Interest-bearing Debt Increased due to the progress in investments (¥ B) 10,515.1 10,275.3 9,662.0 9,516.0 9,392.2 Finance-related adjustments 2,750.1 Asset-backed finance, etc.: ¥2,358.2B 3,853.4 6,144.4 5,332.1 Hybrid finance: ¥391.9B 7,534.1 Adjusted 6,642.2 5,662.6 SBG stand-
Slide 21: LTV・NAV
Foundation of Creditworthiness Balance sheet Profitability soundness Current financial position Potential for future financial improvement In the case of Investment an investment company LTV・NAV return Finance 18
Slide 22: LTV-based Financial Discipline
Balance Sheet Soundness: LTV-based Financial Discipline LTV is the most suitable metric for assessing SBG’s creditworthiness Standard creditworthiness SBG’s LTV evaluation (Investment holding company) (Operating company) Assets with limited market visibility Asset value Marked to market (equity) (e.
Slide 23: Balance Sheet Soundness: Approach to LTV
Balance Sheet Soundness: Approach to LTV LTV<25% represents an extremely safe level that can withstand a significant drop in stock prices Dow Jones Industrial Average Decline rate Financial Crisis COVID-19 Shock Black Monday (2007-2009) (2020) (1987) NAV -37% -34% = equity buffer Equity value of hol
Slide 24: Profitability: Investment Track Record
Profitability: Investment Track Record Past large-scale investments have delivered strong returns, with many portfolio companies still positioned to generate further upside Future Pipeline (Deutsche Telekom) MOIC 1,340x MOIC 10.7x MOIC 9.3x IRR 57.2% IRR 25.9% IRR 28.5% IPO preparations (¥ T) (¥ T)
Slide 25: FY2025 Financial Strategy
FY2025 Financial Strategy In a highly uncertain environment, engage in financial activities with prudence and boldness to build a solid foundation for NAV growth. Fully leveraging SBG’s financial strengths - further cultivating the financial foundation developed over years of disciplined financial m
Slide 26: Share Buyback Track Record
Historical Share Price Performance and Share Buyback Track Record Promptly announced a share buyback program in response to last year’s market correction Share Price Performance (Since 2024) (JPY) Record high*1 14,000 Aug 7 close 12,000 ¥12,560 10,000 Average Purchase Price 8,000 ¥7,857*2 6,000 4,00
Slide 27: Bond Redemption Schedule
Bond Redemption Schedule Steadily execute refinancing for FY2025 (¥ B) 1,628.3 Domestic senior bonds Domestic subordinated bonds 377.2 1,283.9 Domestic hybrid bonds 1,256.2 Foreign currency-denominated senior bonds 1,096.9 86.2 222.0 Foreign currency-denominated hybrid bonds 999.0 363.9 164.0 229.4
Slide 28: Historical Credit Ratings
Historical Credit Ratings JCR A Acquisition of Acquisition Acquisition Acquisition Listing Listing A+ 14Japan Telecom of Vodafone KK of Sprint of Arm of SBKK of Arm A 13 A- 12 (Negative) BBB+ 11 BBB10 S&P BB+ BBB-9 BB+ 8 BB 7 (Stable) Jul 2025 BB- 6 Rating unchanged B+ 5 Outlook: stable 4 (CY) '03 '
Slide 29: Appendix
Appendix
Slide 30: SBG Credit Spreads
SBG Credit Spreads Spread of foreign currency- denominated senior bonds 5-year CDS bps USD 2.9Y USD 3.7Y USD 3.9Y USD 5.4Y 450 bps 700 USD 5.9Y USD 5.9Y USD 6.9Y USD 9.9Y SBG 5Y CDS (JPY) EUR 1.4Y EUR 3.9Y EUR 3.4Y EUR 4.2Y EUR 5.9Y EUR 6.9Y EUR 6.9Y EUR 7.9Y 400 600 350 500 300 400 250 200 300 150
Slide 31: Calculation of Equity Value of Holdings
Jun 30, 2025: Calculation of Equity Value of Holdings $1 = ¥144.81 ¥41.6T (unadjusted) Equity value of holdings Adjustment for (¥ T) Equity value of holdings ー ＝ asset-backed finance Prepaid Forward Contracts, etc. 0.5 (adjusted) (unadjusted) Margin loans 2.0 Payable 923M Share price ¥19.8T ＝ amount
Slide 32: LTV Calculation: SBG Stand-alone Equity Value of Holdings
LTV Calculation: SBG Stand-alone Equity Value of Holdings (L) Adjusted ¥6.64T SBG stand-alone net debt =17.0% (V) Adjusted SBG stand-alone equity value of holdings*1 ¥39.05T (¥ T) Adjusted SBG Major SBG’s interest in Other investments = + + stand-alone equity value of holdings assets SVF1&2 & LatAm
Slide 33: 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) Arm 19.83 Multiplying the number of Arm ADSs equivalent to SBG's holdings by the ADS price ($149.2B; Before adjustment 21.06 ¥21.61T) - payable amount of the consideration for Arm sha
Slide 34: 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 2.20 Number of T-Mobile shares held by SBG × share price (h) Deutsche Telekom 0.35 Before adjustment 0.87 Number of DT shares held by SBG × share price Adjustment for asset-b
Slide 35: LTV Calculation: SBG Stand-alone Net Debt
LTV Calculation: SBG Stand-alone Net Debt (L) Adjusted SBG stand-alone net debt*1 ¥6.64T (V) Adjusted SBG stand-alone ¥39.05T =17.0% equity value of holdings (¥ T) Adjusted SBG Consolidated Net debt at self- Other stand-alone net financing entities, debt = net debt - etc. - adjustments 6.64 14.75 5.
Slide 36: 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 - net interest-bearing debt (before adjustment) 9.39 at self-financing entities For hybrid bonds and hybrid loans with maturity dates, deduct 50% from interest-bearing debt; Adj
Slide 37: Breakdown of Equity Value of Holdings and Geographical Diversification
Breakdown of Equity Value of Holdings and Geographical Portfolio Diversification Net of asset-backed finance Geographical Portfolio Breakdown of Equity Value of Holdings*1 Diversification*3 (Jun 2025) 21% 22% APAC (excl. China Others and Japan) 51% 3% EMEA 14% 14% 55% China 6% 6% 11% 8% Japan 5% 18%
Slide 38: Breakdown by Currency
Breakdown by Currency Investment and monetization flows are primarily in USD, while debt refinancing is principally in the same currency Investments and monetization Debt composition Cash position: ¥2.9T*1 Equity value of holdings: ¥39.0T*2 Interest-bearing debt*3: ¥9.9T EUR, etc. JPY EUR, etc. Net
Slide 39: Breakdown of NAV・LTV Change (QoQ)
Breakdown of NAV・LTV Change (QoQ) NAV LTV (¥T) Share Price FX * Share Sale of Others 18.0% Price T-Mobile Investments Others 17.0% -1.2 -0.6 FX -1.7% +1.4% +8.5 +3.1% -4.4% +0.5% +7.6：Arm +2.8%：OpenAI +0.3：SBKK +0.3%：Others +0.6：Others 32.4 25.7 Mar 2025 Jun 2025 Mar 2025 Jun 2025 * The difference i
Slide 40: Increase/Decrease in Cash Position
Increase/Decrease in Cash Position (¥ T) +2.1 0.1 Financing and Share repurchase 3.7 debt repayment 1.2 3.4 1.4 SVF+SBG investments Arm margin loan 0.7 Arm margin loan undrawn capacity 0.7 0.8 -1.3 0.5 undrawn capacity Monetization, etc. Corporate income tax: -0.3 2.6 2.9 Cash position Increase Decr
Slide 41: Consolidated Interest-bearing Debt/Cash Position/Net Debt
Consolidated Interest-bearing Debt/Cash Position/ Net Interest-bearing Debt Consolidated Interest-bearing Debt*1 (¥ B) Jun 2024 Sep 2024 Dec 2024 Mar 2025 Jun 2025 SBG stand-alone 14,328.8 13,249.7 12,951.9 12,139.2 12,326.1 SVF1&2 and LatAm Funds 583.1 508.3 540.4 501.3 460.9 SoftBank Segment 6,642