Softbank Group Corp. · TSE:9984

Softbank — Q1 FY2020 Earnings Presentation

82 slides from Softbank's earnings presentation, Aug 11, 2020

  1. Slide 1: Earnings Results for the 3-month Period ended June 30, 2020

    Earnings Results for the 3-month Period ended June 30, 2020 August 11, 2020

  2. 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

  3. Slide 3: ©1980 TOHO CO., LTD.

    ee | ogee sata nin » ©1980 TOHO OQyETD; © Le fae “er,”

  4. Slide 4: © Bariston / https://upload.wikimedia.org/wikipedia/commons/8/82/Nagashinofestival.JPG?uselang=ja / CC-BY-SA4.0 (Crea…

    © Bariston / https://upload.wikimedia.org/wikipedia/commons/8/82/Nagashinofestival.JPG?uselang=ja / CC-BY-SA4.0 (Created by modifying) 3

  5. Slide 5: © Bariston / https://upload.wikimedia.org/wikipedia/commons/8/82/Nagashinofestival.JPG?uselang=ja / CC-BY-SA4.0 (Crea…

    © Bariston / https://upload.wikimedia.org/wikipedia/commons/8/82/Nagashinofestival.JPG?uselang=ja / CC-BY-SA4.0 (Created by modifying) 4

  6. Slide 6: Defense

    Defense © Bariston / https://upload.wikimedia.org/wikipedia/commons/8/82/Nagashinofestival.JPG?uselang=ja / CC-BY-SA4.0 (Created by modifying) 5

  7. Slide 7: Defense = Cash

    Defense = Cash © Bariston / https://upload.wikimedia.org/wikipedia/commons/8/82/Nagashinofestival.JPG?uselang=ja / CC-BY-SA4.0 (Created by modifying) 6

  8. Slide 8: Monetize in one year

    Sale and Monetization of Assets Held (announced on Mar. 23, 2020) Max. JPY 4.5t (USD 42bn) Monetize in one year One year: presented as “will be executed over the next four quarters” in SBG’s press release titled “JPY 4.5 trillion (USD 41 billion) Program to Repurchase Shares and Reduce Debt” as of M

  9. Slide 9: Monetized JPY 4.3t

    Sale and Monetization of Assets Held (announced on Mar. 23, 2020) Max. JPY 4.5t (USD 42bn) JPY 0.3t (USD 3bn) (USD 40bn) JPY 1.6t (USD 14.7bn) Monetized JPY 4.3t (95% progress) JPY 2.4t (USD 22bn) Actual results as of Aug. 3, 2020 SBKK: transfer price (JPY 310.2bn) for the transfer of a portion of S

  10. Slide 10: During the Financial Crisis

    2008 During the Financial Crisis 9

  11. Slide 11: Two targets announced

    Targets of Financial Improvement (announced on Apr. 30, 2009) FCF Net debt (USD 9.3bn) JPY 1.9t (USD 17.6bn) Generate JPY 1.0t Halve FY09 - FY11 (cumulative) FYE08 FYE11 Two targets announced USD 1 = JPY 107.74 (as of Jun. 30, 2020 TTM) *Net debt: excl. lease obligations 10

  12. Slide 12: Target achieved

    Targets of Financial Improvement (announced on Apr. 30, 2009) FCF Net debt JPY 1.3t (USD 12.1bn) JPY 1.9t FY11 JPY 364.5bn JPY 1t Down (Target) FY10 75% JPY 561.3bn FY09 JPY 390.8bn JPY 0.5t (USD 4.6bn) FY09 - FY11 (cumulative) FYE08 FYE11 Target achieved USD 1 = JPY 107.74 (as of Jun. 30, 2020 TTM)

  13. Slide 13: Consolidated Results

    Consolidated Results 12

  14. Slide 14: Consolidated Results

    Consolidated Results (JPY bn) FY19Q1 FY20Q1 Change YoY Net sales 1,480.3 1,450.1 -30.2 -2% (USD 13.5bn) Net income 1,121.7 1,255.7 134.0 +12% (USD 11.7bn) Net income: net income to attributable to owners of the parent USD 1 = JPY 107.74 (as of Jun. 30, 2020 TTM) 13

  15. Slide 15: Net Income (USD 11.7bn)

    Net Income (USD 11.7bn) (JPY bn) 1,255.7 1,121.7 Up 12% FY19Q1 FY20Q1 USD 1 = JPY 107.74 (as of Jun. 30, 2020 TTM) Net income: net income attributable to owners of the parent 14

  16. Slide 16: Net Income

    Net Income (JPY bn) 1,121.7 Derivative loss related to prepaid forward 1,218.5 contracts using Alibaba shares *1 *1 212.1 SVF *1 261.7 SoftBank Others -506.8 Income tax FY19Q1 *1 Before consideration of tax and non-controlling interests USD 1 = JPY 107.74 (as of Jun. 30, 2020 TTM) *SVF = SoftBank Vi

  17. Slide 17: Net Income

    Net Income (JPY bn) 1,121.7 (USD 12.0bn) Alibaba *1 gain on sale/ derivative gain 1,218.5 212.1 129.6 SVF *1 SoftBank *1 261.7 259.2 Others -506.8 FY19Q1 FY20Q1 *1 Before consideration of tax and non-controlling interests USD 1 = JPY 107.74 (as of Jun. 30, 2020 TTM) *SVF = SoftBank Vision Fund and o

  18. Slide 18: Net Income

    Net Income (JPY bn) Derivative gain related to T-Mobile’s 129.6 contingent consideration *1 *3 1,121.7 (USD 12.0bn) 736.4 Gain relating to loss of control of Sprint Alibaba *3 (related to the Apr. 1, 2020 merger) gain on sale/ derivative gain 1,218.5 421.9 Gain on sales of T-Mobile shares etc. *2 *3

  19. Slide 19: Net Income

    Net Income (JPY bn) Derivative gain related to T-Mobile’s 129.6 contingent consideration *1 *3 1,255.7 1,121.7 (USD 12.0bn) 736.4 Gain relating to loss of control of Sprint Alibaba *3 (related to the Apr. 1, 2020 merger) gain on sale/ derivative gain 1,218.5 421.9 Gain on sales of T-Mobile shares et

  20. Slide 20: Shareholder Value

    Shareholder Value 19

  21. Slide 21: Asset Finance

    Asset Finance 20

  22. Slide 22: Asset Finance (Non-recourse)

    Asset Finance (Non-recourse) 21

  23. Slide 23: Asset Finance (Non-recourse)

    Asset Finance (Non-recourse) Prepaid forward Can be settled with shares or cash contracts *1 JPY 2.1t (USD 19.3bn) in the future (Alibaba) USD 1 = JPY 105.95 (as of Aug. 11, 2020) *1 Forward contracts, floor contracts, collar contracts, and call spread using Alibaba shares. 22

  24. Slide 24: Asset Finance (Non-recourse)

    Asset Finance (Non-recourse) Prepaid forward Can be settled with shares or cash contracts *1 JPY 2.1t (USD 19.3bn) in the future (Alibaba) Margin loans Borrowing based only on JPY 0.7t (USD 7.0bn) the value of shares pledged as collateral (SBKK / T-Mobile) USD 1 = JPY 105.95 (as of Aug. 11, 2020) *1

  25. Slide 25: Asset Finance (Non-recourse)

    Asset Finance (Non-recourse) Prepaid forward Can be settled with shares or cash contracts *1 JPY 2.1t (USD 19.3bn) in the future (Alibaba) (non-recourse to SBG) Margin loans Borrowing based only on JPY 0.7t (USD 7.0bn) the value of shares pledged as collateral (non-recourse to SBG) *2 (SBKK / T-Mobi

  26. Slide 26: Asset Finance (Non-recourse)

    Asset Finance (Non-recourse) Prepaid forward Can be settled with shares or cash contracts *1 JPY 2.1t (USD 19.3bn) in the future (Alibaba) (non-recourse to SBG) Margin loans Borrowing based only on JPY 0.7t (USD 7.0bn) the value of shares pledged as collateral (non-recourse to SBG) *2 (SBKK / T-Mobi

  27. Slide 27: Sum-of-the-parts shareholder value, Mar. 31, 2020

    • Share price: closing price as of Mar. 31, 2020 (Japan) closing price as of Mar. 31, 2020 (U.S.) • For details, see “Definition and Calculation Method of SBG’s Sum-of-the-parts Valuation” (as of Mar. 31, 2020) (USD bn) 258 58 Non-strategic listed shares 161 (Alibaba, Sprint, etc.) Strategic 200 lis

  28. Slide 28: Sum-of-the-parts with asset-backed financing

    • Share price: closing price as of Mar. 31, 2020 (Japan) closing price as of Mar. 31, 2020 (U.S.) • For details, see “Definition and Calculation Method of SBG’s Sum-of-the-parts Valuation” (as of Mar. 31, 2020) (USD bn) 258 58 Non-strategic listed shares 161 (Alibaba, Sprint, etc.) Strategic 200 lis

  29. Slide 29: Shareholder value Mar. 31 vs Aug. 11, 2020

    • Share price: closing price as of Mar. 31, 2020 (Japan) closing price as of Mar. 31, 2020 (U.S.) • Share price: closing price as of Aug. 7, 2020 (Japan) closing price as of Aug. 10, 2020 (U.S.) • For details, see “Definition and Calculation Method of SBG’s Sum-of-the-parts Valuation” • For details,

  30. Slide 30: Shareholder value with asset finance detail

    • Share price: closing price as of Mar. 31, 2020 (Japan) closing price as of Mar. 31, 2020 (U.S.) • Share price: closing price as of Aug. 7, 2020 (Japan) closing price as of Aug. 10, 2020 (U.S.) • For details, see “Definition and Calculation Method of SBG’s Sum-of-the-parts Valuation” • For details,

  31. Slide 31: Shareholder value without asset-backed financing

    • Share price: closing price as of Mar. 31, 2020 (Japan) closing price as of Mar. 31, 2020 (U.S.) • Share price: closing price as of Aug. 7, 2020 (Japan) closing price as of Aug. 10, 2020 (U.S.) • For details, see “Definition and Calculation Method of SBG’s Sum-of-the-parts Valuation” • For details,

  32. Slide 32: LTV

    • Net debt = SBG net interest-bearing debt = SBG gross debt - SBG cash positions, etc • LTV (Loan to value) = Net debt / Equity value of holdings • For details, see “Definition and Calculation Method of SBG’s Sum-of-the-parts Valuation” (as of Aug. 11, 2020) USD 259bn LTV 11% Manage at less than 25%

  33. Slide 33: If you sell, it will crash

    Equity of holdings paper gain If you sell, it will crash 32

  34. Slide 34: If you sell, it will crash …will it?

    Equity of holdings paper gain If you sell, it will crash …will it? 33

  35. Slide 35: Stock Performance

    Stock Performance (USD) (USD) (JPY) 280 120 1,600 210 90 1,200 140 60 800 Announced Announced sale of a Monetization 70 30 sale of shares 400 portion of shares on Jun. 22, 2020 * on May 21, 2020 0 0 0 Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Jan. Feb. Mar. Apr. M

  36. Slide 36: Share Repurchase

    Share Repurchase Max. JPY 2.5t (USD 23bn) Executed JPY 1.0t Max. JPY 2.5t: sum of (a) total repurchase amount announced on (USD 9bn) Mar. 13, 2020 (JPY 500.0bn), and (b) total repurchase amount mentioned in the announcement of JPY 4.5t (USD 41bn) program that released on Mar. 23, 2020 (max. JPY 2.0t

  37. Slide 37: Share Repurchase: Flexible implementation

    Share Repurchase Max. JPY 2.5t (USD 23bn) Flexible implementation Unexecuted in light of the uncertainty in market JPY 1.5t trend and other factors (USD 14bn) (Has possibility to take place after Apr. 2021) Executed JPY 1.0t Max. JPY 2.5t: sum of (a) total repurchase amount announced on (USD 9bn) Ma

  38. Slide 38: Shareholder value per share no longer posted daily

    Shareholder value per share will no longer be posted daily on SBG website Although SVF1’s investments have progressed and the number of private companies are increasing, the gain and loss of private companies are reevaluated at every quarter-end. As a result, it may mislead the investors. Will be up

  39. Slide 39: Status of Assets

    Status of Assets 38

  40. Slide 40: Alibaba Total Revenue (Apr.-Mar. cumulative)

    Total Revenue (Apr.-Mar. cumulative) (USD) 73.2bn USGAAP 54.1bn Up 35% Apr. ’11 Apr. ’13 Apr. ’15 Apr. ’17 Apr. ’19 (Source) Created by SoftBank Group Corp. based on publicly available historical information published by Alibaba Group Holding Limited -Mar. ’12 -Mar. ’14 -Mar. ’16 -Mar. ’18 -Mar. ’20

  41. Slide 41: Alibaba Non-GAAP Net Income (Apr.-Mar. cumulative)

    Non-GAAP Net Income (Apr.-Mar. cumulative) (USD) 19.0bn USGAAP Non-GAAP (Excluding the gains and losses related to share based compensation expenses, amortization of intangible assets, revaluation of investments etc.) 13.4bn Up 42% Apr. ’11 Apr. ’13 Apr. ’15 Apr. ’17 Apr. ’19 (Source) Created by Sof

  42. Slide 42: Revenue (SBKK consolidated)

    Revenue (USD 10.9bn) (SBKK consolidated) (JPY bn) 1,164.9 1,172.6 Up 1% FY19Q1 FY20Q1 (Source) Created by SoftBank Group Corp. based on publicly available information published by SoftBank Corp. USD 1 = JPY 107.74 (as of Jun. 30, 2020 TTM) 41

  43. Slide 43: Operating Income (SBKK consolidated)

    Operating Income (SBKK consolidated) (USD 2.6bn) (JPY bn) 268.9 279.9 Up 4% FY19Q1 FY20Q1 (Source) Created by SoftBank Group Corp. based on publicly available information published by SoftBank Corp. USD 1 = JPY 107.74 (as of Jun. 30, 2020 TTM) 42

  44. Slide 44: Arm-based Chips Shipped (cumulative)

    Arm-based Chips Shipped (cumulative) (chips) 172bn 148bn (Source) Arm, as of June, 2020. Relating to shipments of Arm-based chips in cumulative counting on every Q1 (end of June). The information herein is provided for illustrative purposes only and is based on company data. There can be no assuranc

  45. Slide 45: Arm proposes to spin-off IoT Services Group

    Proposes to spin-off * IoT Services Group to focus on semiconductor IP business The transfer of the ISG businesses is subject to, amongst others, further Arm’s board review, customary closing conditions, consultation with local staff representatives (where applicable). The information herein is prov

  46. Slide 46: Investment Result on Sprint

    Investment Result on Sprint 45

  47. Slide 47: Investment in Sprint

    Investment in Sprint (JPY) 2.1t Borrowings 0.4t Equity value Acquisition cost 46

  48. Slide 48: Investment in Sprint: IRR

    Investment in Sprint (JPY) 3.6t Borrowings IRR 2.1t 25% • USD 1 = JPY 105.59 (as of Aug. 7, 2020 TTM) • Current = (a) equity value of common stock of T-Mobile US, Inc. (“T-Mobile”) sold and + (b) equity value of the shares subject to call options + (c) equity value of shares that are not subject to

  49. Slide 49: SoftBank Vision Fund

    SoftBank Vision Fund 48

  50. Slide 50: SVF1 portfolio companies

    + JVs / affiliates etc. (14 companies) The investments presented herein are solely for illustrative purposes, have been selected in order to demonstrate examples of SVF1 investments, and do not purport to be a complete list thereof. References to investments included herein should not be construed a

  51. Slide 51: SVF1 Investment Highlights (1)

    SVF1 Investment Highlights (1) (SBG Consolidated basis) * (From SVF1 inception through Jun. 30, 2020) USD 16.5bn Realized gain USD 6.3bn Valuation gain USD 10.2bn Mark up (29 investments) ** SVF1 highlights are provided solely for illustrative purposes and individual investors' results may vary. Pas

  52. Slide 52: SVF1 Investment Highlights (2)

    SVF1 Investment Highlights (2) (SBG Consolidated basis) * (From SVF1 inception through Jun. 30, 2020) USD 16.5bn USD -14.5bn Realized gain Realized loss USD 6.3bn USD -0.5bn Valuation loss Valuation gain USD -13.9bn USD 10.2bn Mark up Mark down (29 investments) ** (48 investments) SVF1 highlights ar

  53. Slide 53: SVF1 Investment Highlights (3)

    SVF1 Investment Highlights (3) (SBG Consolidated basis) * (From SVF1 inception through Jun. 30, 2020) USD 16.5bn USD 2.0bn USD -14.5bn Investment market uplift Realized gain Realized loss + USD 6.3bn USD -0.5bn realized gains Valuation loss Valuation gain USD -13.9bn USD 10.2bn Mark up Mark down (29

  54. Slide 54: SVF1 Listed Portfolio Companies (1) (as of Jun. 30, 2020)

    SVF1 Listed Portfolio Companies (1) (as of Jun. 30, 2020) (USD m) (a) Investment cost Company to SVF1 Guardant Health 308 Vir Biotechnology 199 Slack 334 PingAn Good Doctor 400 10x Genomics 31 OneConnect 100 ZhongAn 550 Uber 7,666 *1 (A) Listed company total (Gross) $9,587 *3 (B) SVF1 private & exit

  55. Slide 55: SVF1 Listed Portfolio Companies (2) (as of Jun. 30, 2020)

    SVF1 Listed Portfolio Companies (2) (as of Jun. 30, 2020) (USD m) (a) (b) *3 Investment cost Gross return Company to SVF1 to SVF1 Guardant Health 308 2,265 Vir Biotechnology 199 927 Slack 334 1,012 PingAn Good Doctor 400 836 10x Genomics 31 326 OneConnect 100 81 ZhongAn 550 356 Uber 7,666 6,907 *1 (

  56. Slide 56: SVF1 Listed Portfolio Companies (3) (as of Jun. 30, 2020)

    SVF1 Listed Portfolio Companies (3) (as of Jun. 30, 2020) (USD m) (a) (b) (c) = (b) - (a) (d) = (b) / (a) *3 Investment cost Gross return Gross gain/(loss) *4 Company Gross MOIC to SVF1 to SVF1 to SVF1 Guardant Health 308 2,265 +$1,957 7.4x Vir Biotechnology 199 927 +$728 4.7x Slack 334 1,012 +$678

  57. Slide 57: SVF1 Listed Portfolio Companies (1) (as of Aug. 10, 2020)

    SVF1 Listed Portfolio Companies (1) (as of Aug. 10, 2020) (USD m) (a) Investment cost Company to SVF1 Guardant Health 308 Vir Biotechnology 199 Relay Therapeutics 300 Slack 334 PingAn Good Doctor 400 10x Genomics 31 OneConnect 100 ZhongAn 550 Uber 7,666 *1 Listed company total (Gross) $9,887 *3 1. L

  58. Slide 58: SVF1 Listed Portfolio Companies (2) (as of Aug. 10, 2020)

    SVF1 Listed Portfolio Companies (2) (as of Aug. 10, 2020) (USD m) (a) (b) *2 Investment cost Gross return Company to SVF1 to SVF1 Guardant Health 308 2,332 Vir Biotechnology 199 1,203 Relay Therapeutics 300 1,147 Slack 334 1,006 PingAn Good Doctor 400 861 10x Genomics 31 336 OneConnect 100 90 ZhongA

  59. Slide 59: SVF1 Listed Portfolio Companies (3) (as of Aug. 10, 2020)

    SVF1 Listed Portfolio Companies (3) (as of Aug. 10, 2020) (USD m) (a) (b) (c) = (b) - (a) (d) = (b) / (a) *2 Investment cost Gross return Gross gain/(loss) *3 Company Gross MOIC to SVF1 to SVF1 to SVF1 Guardant Health 308 2,332 +$2,024 7.6x Vir Biotechnology 199 1,203 +$1,004 6.1x Relay Therapeutics

  60. Slide 60: SVF1 Investment Highlights (1)

    SVF1 Investment Highlights (1) (SBG Consolidated basis) * (From SVF1 inception through Jun. 30, 2020) (as of Jun. 30, 2020) Cumulative investment cost to Cumulative investment cost and aggregate market uplift include Flipkart and Nvidia, which were exited in August 2018 and January 2019 respectively

  61. Slide 61: SVF1 Investment Highlights (2)

    SVF1 Investment Highlights (2) (SBG Consolidated basis) * (From SVF1 inception through Jun. 30, 2020) (as of Jun. 30, 2020) Cumulative investment cost to SVF1 listed companies USD 9.6bn Listed company total only includes companies that have become publicly listed after SVF1 made its initial investme

  62. Slide 62: SVF1 Investment Highlights (3)

    SVF1 Investment Highlights (3) (SBG Consolidated basis) * (From SVF1 inception through Jun. 30, 2020) (as of Jun. 30, 2020) Cumulative gross gain to SVF1 listed companies USD 3.1bn Cumulative investment cost to SVF1 listed companies USD 9.6bn Listed company total only includes companies that have be

  63. Slide 63: SVF1 Investment Highlights (4)

    SVF1 Investment Highlights (4) (SBG Consolidated basis) * (From SVF1 inception through Aug. 10, 2020) Cumulative gross gain to SVF1 listed companies USD 4.7bn Cumulative investment cost to SVF1 listed companies USD 9.9bn (From SVF1 inception through Aug. 10, 2020) Listed company total only includes

  64. Slide 64: SVF1 owns 32% of Relay Therapeutics

    IPO on Jul. 16 SVF1 owns 32% of shares outstanding as of Jul. 20, 2020 Aims to transform the drug discovery process through protein motion and A I (currently two anticancer drugs in a clinical trial phase) 3D image of full-length protein The investment herein is presented solely for illustrative pur

  65. Slide 65: Investment Result on Relay (as of Aug. 10, 2020)

    Investment Result on Relay (as of Aug. 10, 2020) IPO on Jul.16 (USD) 1,147m 3.8x 300m Past performance is not necessarily indicative of future results. Select investment presented herein is solely for illustrative purposes, has been selected for illustrative purposes to show the public securities he

  66. Slide 66: Gain and Loss on Investments (SVF Segment)

    Gain and Loss on Investments (SVF Segment on a SBG Consolidated Basis) (JPY bn) 519.8 (USD 2.8bn) 414.4 Return profit 392.0 296.6 320.0 248.4 -199.7 On Apr. 1, 2020, Sprint ceased to be a subsidiary of the Company following the completion of the merger between Sprint and T-Mobile US, Inc. Given that

  67. Slide 67: IPO of Portfolio Companies Outside of SVF1

    IPO of Portfolio Companies Outside of SVF1 66

  68. Slide 68: Investment Result on Lemonade

    Investment Result on Lemonade IPO on Jul.2 (USD) SBG investment 808m Delightful insurance powered by A I 300m 2.7x Invested amount SBG holding value (Source) Invested amount: Lemonade Form S-1 (Mar. ’18, Jun. & Sep. ’19) (Aug. 10, 2020) SBG holding value: S&P Capital IQ 67

  69. Slide 69: Establishment of investment management subsidiary

    Establishment of investment management subsidiary Purpose: Managing excess cash and diversification of assets Capital investment: USD 555m Shareholding: SBG 67% Masayoshi Son 33% Investment criteria: Primarily highly liquid public listed stocks, etc. Investment method: Direct investments, derivative

  70. Slide 70: Conclusion

    Conclusion 69

  71. Slide 71: Monetized JPY 4.3t

    Sale and Monetization of Assets Held (announced on Mar. 23, 2020) Max. JPY 4.5t (USD 42bn) JPY 0.3t (USD 3bn) (USD 40bn) JPY 1.6t (USD 14.7bn) Monetized JPY 4.3t (95% progress) JPY 2.4t (USD 22bn) Actual results as of Aug. 3, 2020 SBKK: transfer price (JPY 310.2bn) for the transfer of a portion of S

  72. Slide 72: Shareholder value without asset-backed financing

    • Share price: closing price as of Mar. 31, 2020 (Japan) closing price as of Mar. 31, 2020 (U.S.) • Share price: closing price as of Aug. 7, 2020 (Japan) closing price as of Aug. 10, 2020 (U.S.) • For details, see “Definition and Calculation Method of SBG’s Sum-of-the-parts Valuation” • For details,

  73. Slide 73: Concerns about SoftBank

    Concerns about SoftBank Excessive debt Deficit in SVF * Decline in equity value of holdings *SVF = SoftBank Vision Fund and other SBIA-managed funds segment 72

  74. Slide 74: Fact

    Fact (FY20/Q1) *1 Reduced USD 14bn of net debt *2 SVF turnaround Increased shareholder value by USD 31bn *1 *1 Comparison between Mar. 31, 2020 (USD 1 = JPY 108.62) and Aug. 11, 2020 (USD 1 = JPY 105.95) *2 SVF = SoftBank Vision Fund and other SBIA-managed funds segment 73

  75. Slide 75: Increased shareholder value

    SBG Shareholder Value USD 231bn Increased shareholder value 1995 ’97 ’99 ’01 ’03 ’05 ’07 ’09 ’11 ’13 ’15 ’17 ’19 '20 (FY) SBG Shareholder USD 1 = JPY 105.95 as of Aug. 11, 2020 Value: closing price as of Aug. 7 (Japan), closing price of Aug. 10 (U.S.) 74

  76. Slide 76: To Maximize Shareholder Value

    To Maximize Shareholder Value 75

  77. Slide 77: Information Revolution Happiness for everyone

    Information Revolution Happiness for everyone 76

  78. Slide 78: SoftBank

    SoftBank

  79. Slide 79: Appendix

    Appendix

  80. Slide 80: SVF1 Snapshot (as of Jun. 30, 2020)

    SVF1 Snapshot (as of Jun. 30, 2020) (USD billion) (a) (b) (c) = (b) - (a) *2 *1 Investment cost Gross return Gross gain/(Loss) to SVF1 to SVF1 to SVF1 (A) Listed company total $9.6 $12.7 +$3.1 (B) Private & exited company total $72.7 $71.6 -$1.1 (C)=(A)+(B) SVF 1 total (SBG consolidated basis) *3 $8

  81. Slide 81: Definition and Calculation Method of SBG's Sum-of-the-Parts Valuation

    Definition and Calculation Method of SBG’s Sum-of-the-Parts Valuation (as of August 11, 2020) 1. Net debt *without consideration of asset-backed financing ◦ Net debt = SBG net interest-bearing debt ◦ SBG net interest-bearing debt = SBG gross debt - SBG cash position, etc. ◦ SBG gross debt = SBG gros

  82. Slide 82: Definition and Calculation Method of SBG's Sum-of-the-Parts Valuation

    Definition and Calculation Method of SBG’s Sum-of-the-Parts Valuation (as of March 31, 2020) 1. Net debt *without consideration of asset-backed financing ◦ Net debt = SBG net interest-bearing debt = SBG Net debt ◦ SBG net debt = SBG gross debt - SBG cash position, etc ◦ SBG gross debt = SBG gross in

SoftBank Group — Q1 FY2020 Earnings Presentation on 6ix