Softbank Group Corp. · TSE:9984
Softbank — Q1 FY2022 Earnings Presentation
110 slides from Softbank's earnings presentation, Aug 10, 2022
Slide 1: Earnings Results for the Three-month Period Ended June 30, 2022
Earnings Results for the Three-month Period Ended June 30, 2022 Investor Briefing August 10, 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 FY2021 FY2022 Average during quarter Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1 USD 110.00 110.47 113.60 117.10 129.04 1 CNY 17.01 17.09 17.75 18.43 19.60 EOQ Jun 30 Sep 30 Dec 31 Mar 31 Jun 30 Sep 30 Dec 31 Mar 31 1 USD 122.39 136.68 1 CNY 19.26 20.38 Abbreviations Abbrev
Slide 4: How We See the Market Environment
How We See the Market Environment Stock market correction undergoing with inflation and rising interest rates 10 3.5 105 10 year NASDAQ 2 year 3.0% S&P500 9.5 100 ＋9.1% 3 -4.9% 9 95 8.5 8.6 8.5 2.9% 2.5 2.3% 90 8.3 8 7.9 -20.6% 85 2.3% 7.5 7.5 2 -9.1% 80 7 7.0 1.5 75 6.5 70 6 1 -29.5% 5.5 65 5 0.5 6
Slide 5: How We See the China-related Environment
How We See the China-related Environment Uncertainty remains; with both positives and negatives in U.S.–China tension and China’s regulatory environment ($) 10,000 Environment surrounding Chinese NASDAQ Golden tech firms Dragon China Index (HXC) $7,955.51 Positives $7,064.73 May: China’s Vice Premie
Slide 6: Achievements in FY22Q1: Defensive financial management
Achievements in FY22Q1: Defensive financial management Global economy • Interest rate hikes accelerate to curb inflation; risk of entering recession smoldering • Correction on tech stock continued in Apr-Jun, followed by a sign of bottoming out Current environment Geopolitical risks • Uncertaint
Slide 7: Index
Index • Accounting • Finance • SoftBank Vision & LatAm Funds
Slide 8: Accounting
Accounting
Slide 9: Consolidated Results
Consolidated Results (¥ B) FY21Q1 FY22Q1 Change Change % Net sales 1,479.1 1,572.0 92.9 6.3% Income before 1,292.5 -3,292.5 -4,584.9 ― income tax Net income (attributable to owners of the 761.5 -3,162.7 -3,924.2 ― parent) (Reference) Gain (loss) on investments 1,263.1 -2,834.4 -4,097.5 ― Investment
Slide 10: Change in Reportable Segments
Change in Reportable Segments From FY22Q1, the Latin America Funds segment has been integrated into the “SoftBank Vision Funds segment.” FY21 Investment SoftBank Business of SoftBank Arm Latin America Vision Funds Other Holding Companies Segment Segment Funds Segment Segment Segment SoftBank Latin A
Slide 11: Integration of LatAm Funds Segment into SVF Segment
Integration of LatAm Funds Segment into SVF Segment Before/After restatement B/S, P/L items for FY22Q1 (¥ B) SVF segment (after integration) FY21Q1 P/L Before After Change Gain on investments at Account Account 287.9 507.3 219.4 SoftBank Vision Funds presented presented (Former) in P/L in B/S Gain o
Slide 12: Segment Income: SoftBank Vision Funds
Segment Income: SoftBank Vision Funds (¥ B) P/L FY21Q1 FY22Q1 FY22Q1 Items Gain (loss) on investments at SoftBank Vision Funds 610.9 -2,933.8 Gain (loss) on investments at SVF1, SVF2, and 610.9 -2,935.0 SVF1 -¥1,313.0B, SVF2 -¥1,297.1B, LatAm Funds -¥324.9B LatAm Funds SVF1 -¥30.5B (mainly monetizat
Slide 13: Realized and Unrealized Gain (Loss) on Investments by Fund
(Reference) Realized Gain (Loss) on Investments and Unrealized Gain (Loss) on Valuation of Investments by Fund (¥ B) 1 Unrealized gain (loss) on valuation of investments* Realized gain Change in valuation Reclassified to Funds (loss) on for the fiscal year (FY22Q1) realized gain (loss) Items investm
Slide 14: Segment Income: Investment Business of Holding Companies
Segment Income: Investment Business of Holding Companies (¥ B) P/L item FY21Q1 FY22Q1 FY22Q1 Items Gain on investments at Investment Business of Holding Companies 741.4 111.2 Gain relating to settlement of prepaid forward contracts using Alibaba shares ― 97.3 Gain relating to a partial settlement of
Slide 15: Monetization of T-Mobile Shares
Monetization of T-Mobile Shares 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 Jun. 30, 2021 106.3
Slide 16: T-Mobile Shares: Holding and Fair Values
T-Mobile Shares: The Company’s Holding (incl. Deutsche Telekom’s Unexercised Call Options) & Fair Values • In Apr 2022, the Company sold 21.2M FY20 FY21 FY22 T-Mobile shares, following Deutsche Jun 26 Q4-end Q1-end Q2-end Q3-end Q4-end Q1-end Telekom's partial exercise of its call options. $144.83 (
Slide 17: Deutsche Telekom Shares: Holding and Fair Values
Deutsche Telekom Shares: The Company’s Holding & Fair Values In Sep 2021, the Company FY21 FY22 acquired 225M Deutsche At execution Q2-end Q3-end Q4-end Ｑ1-end in Sep Telekom shares in return for the sale of T-Mobile shares. Deutsche Telekom share price €18.95 €17.67 €17.40 €16.93 $213.9M (¥27.6B) €
Slide 18: T-Mobile Shares: Fair Values of Contingent Consideration
T-Mobile Shares: Fair Values of Contingent Consideration (Ref.) Closing price on Aug. 8, 2022: $144.58 • Contingent T-Mobile share price $144.83 consideration: $134.85 $134.54 $127.76 $128.35 The Company’s right $125.29 to acquire 48.8M $114.36 $115.98 T-Mobile shares for $104.15 no additional $551.
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) $226.78 $232.73 (¥ B) FY22Q1 $215.70 $226.73 Income before -333.6 $148.05 income tax (-$2.6B) $118.79 $108.80 $113.68 Net income -248.0 (-$1.9B) Day 1 gain
Slide 20: Consolidated P/L Summary (IFRSs)
Consolidated P/L Summary (IFRSs) (¥ B) P/L item FY21Q1 FY22Q1 Change Gain on investments at Investment Business of Holding Companies Net sales +1,479.1 +1,572.0 +92.9 (consolidated basis): +¥111.2B (See page 7 for details) • Loss on investments at asset management subsidiaries: -¥67.6B Gross profit
Slide 21: Consolidated B/S Summary (IFRSs) – Assets
Consolidated B/S Summary (IFRSs) – 1 (¥ B) 1 Cash and cash equivalents: ¥6,070.7B（+¥901.7B） B/S item Main items Mar 2022 Jun 2022 Change SBG ¥3,578.0B（+¥1,075.4B） 10,028.6 10,398.2 +369.6 -¥351.2B decrease in derivative financial assets related to Alibaba prepaid Current assets 1 6,070.7 forward con
Slide 22: Investment Securities on Consolidated B/S
Investment Securities on Consolidated B/S (Main Investments) (¥ B) Mar 2022 Jun 2022 Change Outline Investment securities* 3,085.4 2,939.8 -145.6 FVTPL 2,587.6 2,469.5 -118.1 Mainly due to the sale of 21.2 million T-Mobile shares to Deutsche Telekom T-Mobile 957.1 731.4 -225.7 due to Deutsche Teleko
Slide 23: Consolidated B/S Summary (IFRSs) – Liabilities
Consolidated B/S Summary (IFRSs) – 2 (¥ B) B/S 1 Main items Mar 2022 Jun 2022 Change SBG item Borrowings (current and non-current) -¥555.8B 12,381.5 11,206.7 -1,174.8 Repaid borrowings under commitment lines: -$4.5B 1 Interest-bearing debt 7,328.9 6,587.8 -741.0 Corporate bonds (current and non-curr
Slide 24: Consolidated B/S Summary (IFRSs) – Equity
Consolidated B/S Summary (IFRSs) – 3 (¥ B) B/S Items Mar 2022 Jun 2022 Change item 11,707.8 10,174.6 -1,533.2 1 Net loss attributable to owners of the parent: -¥3,162.7B Common stock 238.8 238.8 ― Capital surplus 2,634.6 2,644.9 +10.3 2 Shares repurchased under the total of up to ¥1 trillion authori
Slide 25: 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 26: Impact of the Weaker Yen in FY22Q1
Impact of the Weaker Yen in FY22Q1 Foreign exchange loss in consolidated P/L for FY22Q1: -¥820.0B (of which 90% from SBG stand-alone) SBG stand-alone: Foreign exchange loss of -¥1,075.7B related to foreign currency-denominated borrowings from Group companies, -¥132.3B related to foreign currency-den
Slide 27: Consolidated C/F Summary (IFRSs)
Consolidated C/F Summary (IFRSs) (¥ B) C/F item FY21Q1 FY22Q1 Change Primary details for FY22Q1 C/F from operating activities: -¥366.6B yoy Subtotal of cash flows from • Decrease in SB Northstar’s cash inflows: -¥663.2B C/F from +413.0 • Decrease in income taxes paid (cash outflows): +¥449.9B operat
Slide 28: Appendix
Appendix
Slide 29: Co-investment Program to SVF2: Related Party Transaction
Co-investment Program to SVF2: Related Party Transaction Masayoshi Equity interests (third-party interests) SBG Son* 1 FY22Q1-end: $682M (¥93.2B) FY21-end: $2,207M (¥270.1B) Equity interests: 17.25% (B) (A) Distribution: $173M Equity acquisition amount: $2,923M 100% (Return of capital) (i) Acquisiti
Slide 30: How the Weaker Yen Moves Fair Values of Investment Assets
How the Weaker Yen Moves Fair Values of Investment Assets at Foreign Subsidiaries/Associates Year-end rate Year-average rate Year-end rate ¥110/$ ¥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 31: Main intangible assets
Breakdown of Goodwill/Intangible Assets (¥ B) Change B/S Main items Mar 2022 Jun 2022 Outline Item Amorti- Changes in Others zation FX rate 4,897.9 5,242.0 * Arm 2,898.1 3,236.5 ― +338.4 ― Goodwill SBKK 907.5 907.5 ― ― ― LINE 630.6 630.6 ― ― ― ZOZO 212.9 212.9 ― ― ― Technologies 357.7 387.7 Main Arm
Slide 32: SoftBank
SoftBank
Slide 33: 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, LatAm Funds, Arm, and PayPay, etc.
Slide 34: Summary of FY22Q1
Summary of FY22Q1*1 Heightened investment discipline and continued monetization resulted in a large improvement in LTV Net loss of ¥3,162.7B, NAV of ¥18.5T (flat from end-Mar 2022) - Recorded investment loss of ¥2,834.4B and net loss*2 of ¥3,162.7B due to a decrease Results in the fair value of SVF’
Slide 35: Gain (Loss) on Investments & Net Income (Loss)
Gain (Loss) on Investments & Net Income (Loss) Investment loss of ¥2,834.4B and net loss of ¥3,162.7B Gain (loss) on investments Net income (loss) (attributable to owners of the parent) ■ Investment Business ¥1,263.1B of Holding Companies ■ SVF segment*1 ■ Other ¥761.5B ● Total gain (loss) on invest
Slide 36: Impact of Foreign Exchange for FY22Q1
Impact of Foreign Exchange for FY22Q1 Positive impact of the weaker yen on both accounting and NAV Decrease in Increase in equity consolidated net income (Increase in accumulated other accounting Impact on (Recording of foreign exchange loss) comprehensive income) -¥820.0B ＋¥2,096.7B Foreign exchang
Slide 37: NAV & NAV per Share
NAV & NAV per Share NAV remained flat from end-Mar 2022 NAV (Net Asset Value) NAV per share*1 and share price (¥ T) (¥) Share price Decrease in NAV per share equity value 23.2 of holdings 1.5 21.7 15,000 4.7 Decrease in net debt 3.1 11,206 11,640 1.6 10,000 NAV 5,559 5,235 18.5 flat 18.5 5,000 0 Mar
Slide 38: LTV Trend
LTV Trend*1 Monetization lowered LTV significantly Excl. asset-backed finance 100％ LTV 35% (in times of emergency) 25% (in normal times) 21.6% 20.4% 15.9% 18.7% 14.3% 14.5%*2 11.6% 12.2% Sep 20 Dec 20 Mar 21 Jun 21 Sep 21 Dec 21 Mar 22 Jun 22 *1 As of the end of each quarter *2 See “LTV Calculation:
Slide 39: Cycle of Investment and Recovery in FY22Q1
Cycle of Investment and Recovery in FY22Q1 Cash position increased by ¥1.1T as a result of new investments with heightened disciplines and continued monetization SB Northstar (¥ T) Sale/ monetization monetization*1 SVF *2 investment Share 4.6 repurchase Undrawn commitment line 0.7 SVF*2 distribution
Slide 40: Results of Investment Businesses, Financial Condition, Financial Strategy
- Results of Investment Businesses - Financial Condition - Financial Strategy - ESG Initiatives Finance 8
Slide 41: Investment Strategy of SoftBank Group
Investment Strategy of SoftBank Group SoftBank Group ＝ “Vision Capitalist” for the Information Revolution Two important drivers SVF Arm Finance 9
Slide 42: Equity Value of Holdings
Equity Value of Holdings Decreased to ¥21.7T as a result of Alibaba shares Excl. asset- backed finance monetization and refreshed valuation of SVF portfolio 32.1 (¥ T) Composition (as of Jun 30, 2022) 21％ Alibaba 5％ T-Mobile 11％ SBKK 0.8％ Deutsche Telekom 16％ SVF1 14％ Arm 25.7 12.4 24.7 21％ SVF2 2%
Slide 43: Equity Value of Holdings: Diversification of Portfolio
Equity Value of Holdings: Diversification of Portfolio Maintained a well-diversified portfolio Excl. asset- backed finance Mar 31, 2022 Jun 30, 2022 Proportion of listed shares Proportion of (net of asset-backed finance) listed shares (net of asset-backed finance) 49%*1 SB Northstar Others SB Norths
Slide 44: Overview of Investments through Funds
Overview of Investments through Funds Investing in unicorns globally through SVF1&2 and LatAm Funds As of June 30, 2022 SoftBank Vision Fund 1 SoftBank Vision Fund 2 SoftBank （SVF1） （SVF2） Latin America Funds Committed capital $98.6B $56.0B $7.6B Start of investments/ 2017 2019 2019 Value creation &
Slide 45: SVF1&2: Cumulative Investment Return
SVF1&2: Cumulative Investment Return (SBG Consolidated Basis, as of Jun 30, 2022) Cumulative investment return of $107.8B at SVF1 and $39.7B at SVF2 SVF1 SVF2 ($ B) ($ B) 120 75 107.8 90 89.2 Exited*1 2.0x 49.6 50 39.7 Exited*1 1.8x 60 Public companies Public companies currently held*2 0.7x currentl
Slide 46: SVF1&2: Invested Amounts
SVF1&2: Invested Amounts（FY21-FY22Q1） Significantly slowing down investments yoy （$ B） 2.1 0.4 SVF1＆2 invested a total of $2.2B in FY22Q1 0.4 13.5 13.7 9.2 0.5 SVF1 4.5 0.06 2.1 SVF2 FY21Q1 FY21Q2 FY21Q3 FY21Q4 FY22Q1 Finance 14
Slide 47: SVF1&2: IPOs and Monetization
SVF1&2: IPOs and Monetization (FY22Q1) Three IPOs and monetization* of $4.1B IPO: 3 companies SVF1 SVF2 Sales and monetization*: $3.8B by SVF1 and $0.3B by SVF2 SVF1: entire sale of 2 investments and SVF2: entire sale of 1 investment partial sale of 5 investments etc. *Includes asset-backed finan
Slide 48: Arm: Revenue (Quarterly)
Arm: Revenue (Quarterly) （$ M） $719M 675 419 426 429 378 398 FY16Q1 FY17Q1 FY18Q1 FY19Q1 FY20Q1 FY21Q1 FY22Q1 (Notes) • Source: Arm • After FY17Q1: excl. ISG revenues • ISG: Internet-of-Things Services Group • Based on, but not necessarily conformity with IFRS • All numbers are unaudited and provide
Slide 49: Results of Investment Businesses, Financial Condition, Financial Strategy
- Results of Investment Businesses - Financial Condition - Financial Strategy - ESG Initiatives Finance 17
Slide 50: Main Financing Activities in FY22Q1
Main Financing Activities in FY22Q1 Prudent defensive financial management with monetization mainly through asset-backed finance Short-term borrowings Bank loan Repaid borrowings under commitment line (Apr) -$4.5B (-¥580.7B) Arm shares Asset-backed finance (upsize) (Jun) +$0.5B (+¥64.5B) Alibaba sha
Slide 51: Cash Position
Cash Position Maintain ample cash position, more than sufficient for bond redemptions for the next 2 years Cash position Bond redemption schedule 社債償還スケジュール *2 *2 *1 ¥4.6T ( Well in excess of bond redemptions for the next 4 years ) (¥ B) 739.8 Undrawn commitment line*3 Bond redemptions 3,817.6 for t
Slide 52: Bond Redemption Schedule
Bond Redemption Schedule Redemptions will be funded by carefully managed bond issuance with due consideration for cash position and market environment. 1,377.5 (¥ B) 1,147.5 327.5 Domestic senior bonds 1,018.3 212.5 Domestic subordinated bonds 912.5 Domestic hybrid bonds 341.3 Foreign currency-denom
Slide 53: SBG Credit Spread
SBG Credit Spread SBG’s credit spreads have been on a widening trend but currently tightening Spread of SBG foreign currency- SBG 5 years CDS denominated notes 900 600 bps bps 800 500 700 600 400 500 300 400 300 200 200 EUR 1.9Y USD 2.4Y USD 3.9Y 100 USD 8.9Y USD 5.9Y EUR 4.4Y 100 SBG 5Y CDS (JPY) E
Slide 54: SBG Stand-alone Interest-bearing Debt
SBG Stand-alone Interest-bearing Debt*1 Interest-bearing debt excluding non-recourse Main variance factors from Mar 31, 2022 debts decreased • Asset-backed finance using Arm shares (upsize) +$0.5B • Entry into prepaid forward contracts using Alibaba shares +$10.5B (¥ B) 15,842.9 • Physical settlemen
Slide 55: SBG Stand-alone Cash Position
SBG Stand-alone Cash Position Cash position increased mainly due to fund procurement by asset- backed finance (¥ B) 3,944.8 127.1 Cash position of SB Northstar 3,589.6 3,357.9 3,103.3 3,079.9 991.6 595.9 2,681.1 330.0 1,008.1 Main variance factors from Mar 31, 2022 582.1 Increase Decrease ・Asset-bac
Slide 56: SBG Stand-alone Net Interest-bearing Debt
SBG Stand-alone Net Interest-bearing Debt Adjusted net interest-bearing debt decreased due to accelerated monetization (¥ B) Excl. SB Northstar 12,135.3 12,021.0 11,486.0 10,919.2 10,513.7 8,558.8 6,163.8 7,411.2 Finance-related adjustments 5,397.8 6,110.4 Asset-backed finance -¥8,784.1B 8,871.8 Hyb
Slide 57: Adjustment for Asset-backed Finance in LTV and NAV Calculation
Adjustment for Asset-backed Finance in 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. 29.6 transactions Alibaba- related Shares Alibaba, T-Mobile, Deut
Slide 58: Results of Investment Businesses, Financial Condition, Financial Strategy
- Results of Investment Businesses - Financial Condition - Financial Strategy - ESG Initiatives Finance 26
Slide 59: 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 27
Slide 60: 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 28
Slide 61: 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 62: Share Repurchase
Share Repurchase Progress of repurchase based on the Resolution by the Board of Directors resolution of the Board of Directors on on Aug 8, 2022 November 8, 2021 Establishment of ¥400B repurchase limit Total repurchase amount ¥1T* ¥400B (maximum) Remaining repurchase ¥295.2B Repurchase period Fr
Slide 63: Results of Investment Businesses, Financial Condition, Financial Strategy, ESG
- Results of Investment Businesses - Financial Condition - Financial Strategy - ESG Initiatives Finance 31
Slide 64: Enhancement of Sustainability Promotion Structure
Enhancement of Sustainability Promotion Structure Reinforcement of the structure • Established the Sustainability Department as an independent department • Head of IR and Sustainability Departments serves as CSusO for greater agility • Yoshimitsu Goto, CFO, remains committed as the board member in c
Slide 65: Summary of Initiatives in FY22: Environment
Summary of Initiatives in FY22: Environment TCFD Disclosure • SBG, SBKK: Disclosed climate-related information in accordance with TCFD recommendations (June 2022) • SBIA, Arm: Preparing for disclosure in 2024 Group target for GHG reduction and greater group collaboration • Set Group target (June 202
Slide 66: Summary of Initiatives in FY22: Social and Governance
Summary of Initiatives in FY22: Social and Governance Promote human rights initiatives • Conduct training and monitoring etc. to risk areas identified in the human rights survey • Initiated monitoring of business partners, and expand it to subsidiaries hereafter FY21 FY22 FY23 SBG human rights surve
Slide 67: Publication of SoftBank Group Report
Publication of SoftBank Group Report • Renewed the existing Annual Report as “SoftBank Group Report" integrating non-financial information • Show the relationship between the SoftBank Group‘s investment activities and its philosophy/vision/strategy to further boost engagements with stakeholders and
Slide 68: Appendix
Appendix
Slide 69: Calculation of Equity Value of Holdings as of Jun 30, 2022
Calculation of Equity Value of Holdings as of Jun 30, 2022 1USD = ¥136.68 ¥29.6T (non-adjusted) (¥ T) Equity value of holdings Equity value of holdings Adjustment for ＝ ー asset-backed finance Alibaba 4.5 (adjusted) (non-adjusted) shown in the dotted box T-Mobile 0.4 Collar contracts, Share price ¥4.
Slide 70: Calculation of Equity Value of Holdings as of Mar 31, 2022
(Reference) Calculation of Equity Value of Holdings as of Mar 31, 2022 1USD = ¥122.39 ¥29.0T (non-adjusted) (¥ T) Equity value of holdings Equity value of holdings Adjustment for ＝ ー asset-backed finance Alibaba 2.7 Collar contracts, (adjusted) (non-adjusted) shown in the dotted box T-Mobile 0.4 Deu
Slide 71: LTV Calculation: SBG Stand-alone Equity Value of Holdings
LTV Calculation: SBG Stand-alone Equity Value of Holdings (L) Adjusted ¥3.15T SBG stand-alone net debt (V) Adjusted SBG stand-alone =14.5% equity value of holdings*1 ¥21.66T (¥ T) Adjusted SBG Major Other Interest of SBG in = + + stand-alone equity Investments in value of holdings assets SVF1&2 & La
Slide 72: 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 4.48 Multiplying the number of Alibaba ADSs equivalent to the number of shares held by SBG by Before adjustment 9.84 the ADS price Deducting (a) and (b) below (amount required
Slide 73: 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 1.00 summing - Value of SBG’s shareholding (incl. the number of shares subject to call options held by Deutsche Telekom (DT): 34,971,809 shares as of Jun 30, 2022) × the shar
Slide 74: LTV Calculation: SBG Stand-alone Net Debt
LTV Calculation: SBG Stand-alone Net Debt (L) Adjusted SBG stand-alone net debt*1 ¥3.15T (V) Adjusted SBG stand-alone =14.5% ¥21.66T equity value of holdings (¥ T) Adjusted SBG Consolidated Net debt at self- Other = - - stand-alone net debt net debt financing entities adjustments 3.15 17.92 5.90 8.8
Slide 75: 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, 12.02 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 76: 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 77: SBG Credit Rating Trend
SBG Credit Rating Trend 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 JCR revised its outlook to “positive” BBB on November 2, 2021 9 BBB- BB+ 8 S&P (BB＋) Outlook Stable 7 BB 6 BB
Slide 78: Cycle of Investment and Recovery in FY2021
(Reference) 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
Slide 79: SVF1&2: Capital Commitment
SVF1&2: Capital Commitment (as of Jun 30, 2022) ($ B) 2.6 *1 SVF1 33.1 （29.8） SVF2 53.4 65.5 98.6 56.0 （57.3） (87.1) (49.6) 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 $8.2B
Slide 80: Consolidated Interest-bearing Debt / Cash Position / Net Debt
Consolidated Interest-bearing Debt/ Cash Position/ Net Interest-bearing Debt *1 Consolidated Interest-bearing Debt (\ B) Jun 21 Sep 21 Dec 21 Mar 22 Jun 22 SBG stand-alone 14,033.4 13,967.4 13,860.4 14,918.7 15,842.9 Incl. SB Northstar 1,424.5 286.3 275.4 33.5 4.2 SVF1&2 and LatAm Funds 545.0 835.6
Slide 81: Investor Briefing: SoftBank Vision & LatAm Funds
QUARTER ENDED JUNE 30, 2022 Investor Briefing SoftBank Vision & LatAm Funds NAVNEET GOVIL Managing Partner & Chief Financial Officer SoftBank Investment Advisers
Slide 82: 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 83: 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 84: Topics
4 Topics 01- Progress & Highlights 02- Performance & Impact on SoftBank Group (SBG) 03- In Focus: Conviction & Resilience in Times of Uncertainty
Slide 85: Progress & Highlights
Progress & Highlights == OoftBank Investment Advisers
Slide 86: Public Markets are Undergoing a Historic Correction
P RO G RE S S & H I G H L I G H T S 6 Public Markets are Undergoing a Historic Correction MARKET BACKDROP SEVERE BEAR MARKETS SINCE LATE 1800s S&P 500 Total Return Index: Real Annual Returns1 60% 40% 20% 0% -20% Post Dot-Com Bust 2022 -40% Great WWII YTD1 Depression Oil Global WWI Shock Financial Cr
Slide 87: Performance Snapshot
SVF1 SVF2 LATAM 7 SoftBank SoftBank SoftBank Vision Fund 1 Vision Fund 2 LatAm Funds Combined Total Commitment $98.6B $56.0B $7.6B $162.2B PROGRESS & HIGHLIGHTS Performance Acquisition Cost1 $87.7B $49.1B $7.2B $144.0B Snapshot Cumulative Investment $20.4B $(9.3B) $(0.1B) $11.0B Gains/(Losses)1 As o
Slide 88: Valuation Framework for Private Assets
8 Comparable Company Multiples SVF1 SVF2 LATAM PROGRESS & HIGHLIGHTS Valuation Framework for Triangulation Private Assets of Valuation Methodologies Discounted Cash Flows Initial & Follow-On Rounds of Financing There can be no assurance that the operations and/or processes of the Managers and SoftBa
Slide 89: Key Valuation Considerations
SVF1 SVF2 LATAM P RO G RE S S & H I G H L I G H T S 9 Key Valuation Considerations Market Income Recent Transaction Approach Approach Approach Geographic Market Sizing Market Share Recency of Institutional vs. Retail Sector Performance Comparability Analysis Analysis Transaction Investors Business M
Slide 90: Strong Track Record of Public Listings Since Inception
SVF1 SVF2 LATAM P RO G RE S S & H I G H L I G H T S 10 Strong Track Record of Public Listings Since Inception As of June 30, 2022 SVF1 SVF2 LATAM 47 Total Listings BEIKE Since Inception of the Funds1,2 Footnotes: 1. 10x Genomics fully exited on August 18, 2020. Slack Technologies fully exited on Sep
Slide 91: GoTo is Indonesia's Most Valuable Tech Company
SVF1 P RO G RE S S & H I G H L I G H T S 11 GoTo is Indonesia’s Most Valuable Tech Company As of June 30, 2022 1 2 3 Gross MOIC Gross Gain Market Cap IDX: GOTO 3.2x $1.9B $30.8B Cost4 Trading Activity5 JUNE 30, 2022 +13% IPO – APRIL 11, 2022 NOVEMBER 21, 2018 2022 Footnotes: 1. Gross MOIC (Gross Mul
Slide 92: Delhivery IPO Amongst Largest-Ever Tech Listings in India
SVF1 P RO G RE S S & H I G H L I G H T S 12 Delhivery IPO Amongst Largest-Ever Tech Listings in India As of June 30, 2022 1 2 3 Gross MOIC Gross Gain Market Cap NSE: DELHIVERY 2.3x $0.5B $4.6B Cost4 Trading Activity5 JUNE 30, 2022 +10% IPO – MAY 24, 2022 MARCH 05, 2019 2022 Footnotes: 1. Gross MOIC
Slide 93: Symbotic Continues to Reinvent the Supply Chain
SVF2 P RO G RE S S & H I G H L I G H T S 13 Symbotic Continues to Reinvent the Supply Chain SVFC1 completed its merger with Symbotic on June 7, 2022, raising $450mm in primary proceeds Our Approach Path to Profitability Strong Unit Economics AI-Powered Highlights Recent Performance Cost & Trading Ac
Slide 94: Recent Significant Exits
SVF1 SVF2 P RO G RE S S & H I G H L I G H T S 14 Recent Significant Exits1 As of July 31, 2022 Gross Realized Proceeds5 Portfolio Company Cost / Share2 Avg. Sale Price / Share2 $11.05 Gross Realized Gross Investment Gain4 IRR7 JV $1,025 +$5.6B SVF1 $6.11 Gross Investment Cost3 MOIC6 $34.50 $9.8B SVF
Slide 95: Performance & Impact on SoftBank Group (SBG)
15 Performance & Impact on SoftBank Group (SBG)
Slide 96: SVF1 Contribution to SBG, Net of 3rd Party Interests
16 SVF1 2022 Inception to Jun 30 SVF1 Fund Net Profit2 $10.8 PERFORMANCE & IMPACT ON SBG Less: Change in 3rd Party Contribution to Interests in Fund (5.4) SBG, Net of 3rd SBG LP Income: 5.4 Share of Fund Net Profit Party Interests1,3 SBG GP Income: Amounts in USD Billions 0.9 Management & Performanc
Slide 97: Contribution to SBG: SVF1
17 SBG Paid-In Capital1 SVF1 PERFORMANCE & IMPACT ON SBG Contribution to SBG SBG Total Value2 As of June 30, 2022 Net Asset Value3 Distributions4 Footnotes: 1. SBG Paid-In Capital represents SBG Commitment drawn down through capital calls less Return of Recallable unutilized Contributions. 2. SBG To
Slide 98: Contribution to SBG: SVF2
18 SBG Paid-In Capital1 SVF2 PERFORMANCE & IMPACT ON SBG Contribution to SBG SBG Total Value2 As of June 30, 2022 Net Asset Value3 Distributions4 Footnotes: 1. SBG Paid-In Capital represents SBG Commitment drawn down through capital calls less Return of Recallable unutilized Contributions. 2. SBG To
Slide 99: Contribution to SBG: LatAm
19 SBG Paid-In Capital1 LATAM PERFORMANCE & IMPACT ON SBG Contribution to SBG SBG Total Value2 Net Asset Value3 As of June 30, 2022 Distributions4 Accrued & Paid Performance Fees5 Footnotes: 1. SBG Paid-In Capital represents SBG Commitment drawn down through capital calls less Return of Recallable u
Slide 100: In Focus: Conviction & Resilience in Times of Uncertainty
20 In Focus: Conviction & Resilience in Times of Uncertainty
Slide 101: Conviction & Resilience in Times of Uncertainty
SVF1 SVF2 LATAM C O NV I C T I O N & RE S I L I E NC E I N T I M E S O F U NC E RT A I NT Y 21 Conviction & Resilience in Times of Uncertainty OUR INVESTMENT THESIS 01 – 02 – AI-Powered Continued Embedded Conviction Resilience Disruptor The Power of the Highly Diversified Portfolio, Large Addressabl
Slide 102: Disciplined Focus on Monetization
SVF1 SVF2 LATAM C O NV I C T I O N & RE S I L I E NC E I N T I M E S O F U NC E RT A I NT Y 22 Disciplined Focus on Monetization Inception to June 30, 2022 Cumulative Distributions Since Inception1 $51.6B 2019 SVF2 LAUNCH LATAM LAUNCH 2017 $29.1B SVF1 LAUNCH $11.6B $6.3B $2.3B 2018 2019 2020 2021 Ju
Slide 103: Portfolio Companies Poised to List Publicly
SVF1 SVF2 LATAM C O NV I C T I O N & RE S I L I E NC E I N T I M E S O F U NC E RT A I NT Y 23 Portfolio Companies Poised to List Publicly Inception to June 30, 2022 NUMBER OF GLOBAL DEAL LISTINGS PER QUARTER 1 800 600 Total FV, Series E or Later2 400 Public Listing Readiness Strong Fundamentals Sus
Slide 104: Disruptive Business Models to Unlock Significant Value
SVF1 C O NV I C T I O N & RE S I L I E NC E I N T I M E S O F U NC E RT A I NT Y 24 Disruptive Business Models to Unlock Significant Value As of June 30, 2022 Long-Term Value Creation TOTAL F A I R V A L U E 10 Chips Shipped2 Monthly Active Users3 # of Sports Partnerships4 Market Share – Instant Nee
Slide 105: Portfolio Companies Continue to Achieve Strong Revenue Growth
25 Our portfolio companies are achieving healthy top-line growth SVF2 LATAM CONVICTION & RESILIENCE IN Percentage of Portfolio Companies Achieving >50% Annual Revenue Growth 1 TIMES OF UNCERTAINTY Portfolio Companies Continue to Achieve Strong Revenue Growth 76% 78% As of June 30, 2022 SVF2 LATAM Fo
Slide 106: Portfolio Companies are Well-Capitalized with Ample Cash Runway
SVF1 SVF2 LATAM C O NV I C T I O N & RE S I L I E NC E I N T I M E S O F U NC E RT A I NT Y 26 Portfolio Companies are Well-Capitalized with Ample Cash Runway As of June 30, 2022 Portfolio Companies with 12+ Months Cash Runway Portfolio Companies Continue to Access By Fair Value1 Capital via Broad I
Slide 107: Highly Diversified Portfolio of 469 Companies
SVF1 SVF2 LATAM C O NV I C T I O N & RE S I L I E NC E I N T I M E S O F U NC E RT A I NT Y 27 Highly Diversified Portfolio of 469 Companies As of June 30, 2022 % COST BY SECTOR1 COST BY GEOGRAPHY2 Frontier Tech Proptech Transportation Enterprise Health Tech (IN USD BILLIONS) 12% 12% 22% 8% 5% Inter
Slide 108: Conviction in the AI Revolution & Our Resilient Platform
SVF1 SVF2 LATAM C O NV I C T I O N & RE S I L I E NC E I N T I M E S O F U NC E RT A I NT Y 28 Conviction in the AI Revolution & Our Resilient Platform Market Cap Growth1 01 – 02 – Continued Embedded Conviction Resilience The AI Highly Diversified Revolution Portfolio Strong Portfolio Portfolio Comp
Slide 109: Thank You
29 Thank You SoftBank Vision & LatAm Funds Investor Briefing Presentations Available at visionfund.com/presentations
Slide 110: SoftBank
SoftBank