Softbank Group Corp. · TSE:9984
Softbank — Q1 FY2024 Earnings Presentation
106 slides from Softbank's earnings presentation, Aug 7, 2024
Slide 1: Earnings Results for the Three-month Period Ended June 30, 2024
Ver.1.2 Earnings Results for the Three-month Period Ended June 30, 2024 Investor Briefing August 7, 2024 SoftBank Group Corp.
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 FY2023 FY2024 Average during quarter Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1 USD 138.11 145.44 147.00 147.87 156.53 EOQ Jun 30 Sep 30 Dec 31 Mar 31 Jun 30 Sep 30 Dec 31 Mar 31 1 USD 151.41 161.07 Abbreviations Abbreviations used in Accounting and Finance section of this
Slide 4: Index
Index • Accounting • Finance • SoftBank Vision & LatAm Funds • Arm
Slide 5: Accounting
Accounting
Slide 6: Consolidated Results
Consolidated Results (¥ B) FY23Q1 FY24Q1 Change Change % Net sales 1,557.5 1,701.7 +144.2 +9.3% Income before -176.2 225.7 +401.9 ー income tax Net income (attributable to owners of the -477.6 -174.3 +303.3 ー parent) (Reference) Gain/loss on investments -699.0 559.7 +1,258.7 ー Investment Business of
Slide 7: Net Income & SVF Segment Income
Net Income & SVF Segment Income 3,033.6 950.0 (¥ B) 422.7 Net income 61.0 231.1 -57.6 -174.3 SVF segment income (income before income tax) -660.1 -96.7 -258.9 -204.3 -1,019.9 -297.5 -477.6 • Includes investment gain/loss in subsidiaries • After considering third-party interests -783.4 -931.1 -2,330.
Slide 8: Investment Business of Holding Companies Segment
Investment Business of Holding Companies Segment (¥ B) P/L item FY23Q1 FY24Q1 FY24Q1 main items Gain/loss on investments at Investment -689.7 567.9 Business of Holding Companies Realized gain/loss at asset management subsidiaries -0.1 0.2 Unrealized gain/loss on valuation at asset 0.9 -1.0 managemen
Slide 9: T-Mobile: Shareholding & Fair Values
T-Mobile: Shareholding & Fair Values $160.33 $163.22 Share price $176.18 $138.90 $140.05 Events in FY24Q1 Number of 43.3 43.3 92.1 92.1 ① 85.4 ①Sold 6.7M TMo shares for $670M shares held following DT’s partial exercise of call (M) +48.8 -6.7 options ① 670 ②DT’s call option for the remaining 28.2M TM
Slide 10: Transactions Related to T-Mobile Shares in FY24Q1
Transactions Related to T-Mobile Shares in FY24Q1 As of FY23Q4 Transactions in Q1 As of FY24Q1 Impact on Consolidated Financial Statements ($ M) (1) Sold 6.7M TMo P/L 92.1M TMo 85.4M TMo shares • Realized gain: +500 shares held shares following DT’s • Valuation loss (Reclassified to realized gain
Slide 11: Deutsche Telekom: Shareholding & Fair Values
Deutsche Telekom: Shareholding & Fair Values €23.48 €22.50 Acquired 225M Deutsche €21.75 Telekom shares in Sep 2021 Share price €19.98 €19.87 in return for the sale of TMo shares Number of 225.0 225.0 225.0 225.0 225.0 shares held (M) 5,407 5,469 +184 5,653 Fair value ($ M) 4,904 4,732 (i) DT shar
Slide 12: Alibaba Shares & Derivative Financial Assets/Liabilities
Alibaba Shares & Derivative Financial Assets/Liabilities (Amount Recorded in B/S) Value of Alibaba shares Derivative financial Investment securities (FVTPL) recorded in B/S assets/liabilities (net) considering prepaid Alibaba share price $72.36 $72.36 forward contracts: $72.00 $72.00 $28,463M ( A +
Slide 13: SoftBank Vision Funds Segment
SoftBank Vision Funds Segment (¥ B) P/L FY23Q1 FY24Q1 FY24Q1 ｍain items Includes gains and losses associated with investments in the Gain/loss on investments at SoftBank Vision Funds 159.8 1.9 Company’s subsidiaries Gain/loss on investments at SVF1, SVF2, and LatAm 134.7 15.9 ¥442.5B gain at SVF1, ¥
Slide 14: Investment Performance of SVF1 and SVF2
(Reference) Investment Performance of SVF1 and SVF2 ($ B) Since Inception FY24*1 Gain/loss Cost*2 Returns*2 Gain/loss Q1 SVF1 89.5 109.1 19.6 2.8 Exited investments 43.2 64.8 21.6 -4.4 Investments before exit 46.3 41.8 -4.5 2.6 Reversal of previously-recorded valuation gain/loss for exited investmen
Slide 15: WeWork Emergence from Chapter 11
WeWork Emergence from Chapter 11 of the U.S. Bankruptcy Code WeWork filed for protection under Chapter 11 of the U.S. Bankruptcy Code in Nov 2023 → Emerged from Chapter 11 in Jun 2024 Received 12.2% of new WeWork stocks; WeWork ceased to be an associate of the Company Recovered part of cash Re
Slide 16: Arm Segment: Bridge to Arm's disclosure
Arm Segment in SBG’s Consolidated Financial Report Bridge to Arm’s disclosure (FY24Q1 P/L) Adjustment (1) Adjustment (2) Amortization expenses SBG Consolidated related to intangible Difference in Arm assets recognized in the Financial Report accounting Arm segment purchase price standard disclosure
Slide 17: Consolidated P/L Summary
Consolidated P/L Summary (¥ B) P/L item FY23Q1 FY24Q1 Change Net sales 1,557.5 1,701.7 +144.2 1 ・¥235.7B investment gain on Alibaba shares Gross profit ・¥179.1B investment gain on TMo shares (including derivative gains and 832.1 920.6 +88.5 losses on investments and effects of foreign exchange trans
Slide 18: Consolidated B/S Summary – Non-current assets
Consolidated B/S Summary – 1 (¥ B) B/S Main items Mar 2024 Jun 2024 Change item 11,441.4 11,359.0 -82.4 Current assets Cash and cash equivalents 6,186.9 1 5,498.9 -687.9 1 Investment Business of Holding Companies segment (including SBG and Derivative financial assets 852.4 1,031.1 2 +178.8 wholly ow
Slide 19: Investment Securities in Consolidated B/S
Investment Securities in Consolidated B/S (Main Investments) (¥ B) Mar 2024 Jun 2024 Change Outline Investment securities 9,062.0 9,378.7 +316.7 FVTPL 8,321.5 8,495.0 +173.5 3,757.1 3,536.2 -220.9 Decreased mainly due to the physical settlement of a Alibaba $24,814M $21,954M -$2,860M portion of Alib
Slide 20: Breakdown of Goodwill/Intangible Assets
Breakdown of Goodwill/Intangible Assets (¥ B) Change B/S Main items Mar 2024 Jun 2024 Amorti- Changes in Outline Item Others zation FX rate 5,709.9 5,940.6 * Arm 3,585.0 3,813.8 ― +228.7 ― Goodwill SBKK 913.9 913.9 ― ― ― LY 478.3 478.3 ― ― ― ZOZO 214.0 214.0 ― ― ― Technologies 359.0 364.2 Main intan
Slide 21: Consolidated B/S Summary – Liabilities
Consolidated B/S Summary – 2 (¥ B) B/S Main items Mar 2024 Jun 2024 Change item 14,020.3 14,409.8 +389.5 Interest-bearing debt 8,271.1 1 9,141.3 +870.2 1 SBG Borrowings*: ¥465.6B (¥2.7B increase) Lease liabilities 149.8 161.3 +11.5 Current liabilities Corporate bonds*: ¥6,457.9B (¥310.3B increase) D
Slide 22: Consolidated B/S Summary – Equity
Consolidated B/S Summary – 3 (¥ B) B/S Mar Jun Main items Change Item 2024 2024 13,237.2 14,203.0 +965.9 Common stock 238.8 238.8 ― 1 ¥174.3B net loss attributable to owners of the parent Capital surplus 3,326.1 3,362.7 +36.6 2 ¥1,119.7B increase in exchange differences from the translation of forei
Slide 23: Impact of the Weaker Yen on P/L & B/S
Impact of the Weaker Yen on P/L & B/S (Illustration) P/L B/S Entities Components Foreign exchange Exchange differences gain (loss) from translation Foreign currency- denominated cash and cash equivalents/ SBG stand-alone + Loans receivable Foreign exchange gain Subsidiaries conducting (excl. investm
Slide 24: Impact of the Weaker Yen in FY24Q1
Impact of the Weaker Yen in FY24Q1 (from ¥151.41/$ to ¥161.07/$) Foreign exchange loss in consolidated P/L for FY24Q1: ¥443.9B At SBG stand-alone: Foreign exchange losses of ¥471.6B related to foreign currency-denominated borrowings from Group companies and ¥30.1 related to foreign currency-denomina
Slide 25: Consolidated C/F Summary
Consolidated C/F Summary (¥ B) C/F FY23Q1 FY24Q1 Primary details for FY24Q1 item +109.2 Subtotal of cash flows from operating activities 1 ¥43.0B net outflow, due to outlays for ¥149.8B income taxes and the C/F from acquisition of corporate bonds by SB Northstar operating -172.6 1 -43.0 -149.8 Incom
Slide 26: Income Taxes Paid on a Consolidated Basis
Income Taxes Paid on a Consolidated Basis (Net) (¥ B) FY24 FY19 FY20 FY21 FY22 FY23 Total Q1 Consolidated 757.4 324.5 589.3 525.9 816.8 3,013.9 106.4 Japan 696.3 189.5 551.2 469.7 717.0 2,623.7 92.7 SBG and intermediate holding companies 445.8 -85.3 200.0 214.2 443.3 1,218.0 13.8 (wholly owned subsi
Slide 27: Co-investment Program to SVF2: Related Party Transactions
Co-investment Program to SVF2: Related Party Transactions Equity interests of third-party interests Masayoshi SBG FY24Q1: $― (¥―) Son* 1 FY23: $― (¥―) Equity interests: 17.25% (B) (A) Distribution: $173M Equity acquisition amount: $2,923M 100% (Return of capital) (i) Acquisition costs: $2,594M (comm
Slide 28: Co-investment Program to LatAm Funds
Co-investment Program to LatAm Funds & Management’s Investment in Asset Management Subsidiary Co-investment program to LatAm Funds Management’s investment in Equity interests of third-party investors asset management subsidiary FY24Q1: $59M ( ¥9.5B) FY23: $93M (¥14.1B) Masayoshi SBG Masayoshi Son SB
Slide 29: 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 such as LY Corporation and PayPay), Arm, SVF1, SVF2, LatAm Funds, etc
Slide 30: Financial soundness stays intact during market fluctuations
Impact of Recent Market Environments Financial soundness stays intact even during market fluctuations ◼ LTV level with a sufficient buffer ※ Pro forma ◼ Completed bond refinancing for FY2024 (as of Jun 30, 2024) Applying share prices and FX rate as of Aug 6, 2024 ◼ Maintain ample cash position NAV L
Slide 31: End of June – Our Perspective on Market Fluctuations
End of June – Our Perspective on Market Fluctuations Low LTV and ample cash position allows us to effectively absorb sudden market fluctuations Equity value of Net interest Cash position holdings -bearing debt (SBG stand-alone) (SBG stand-alone) ¥38.3T Net of asset backed finance LTV 7.8% Maintain 5
Slide 32: Pro forma: Our Perspective on Market Fluctuations
Pro forma (Jun end)- Our Perspective on Market Fluctuations: Short-term Share Price/ Foreign Exchange Fluctuations Managing LTV level with a sufficient buffer despite sudden market shifts Equity value of Net interest Cash position Pro forma holdings -bearing debt (SBG stand-alone) (as of Jun 30, 202
Slide 33: Our Perspective on Market Fluctuations
Our Perspective on Market Fluctuations Solid financial position unaffected by short-term market fluctuations Share price / Foreign exchange ◼ LTV ratio with sufficient buffer: • Significant buffer in LTV even during market turbulence • ¥6T of the listed shares* held is in telecommunication Short-ter
Slide 34: Difference from the 2020 COVID-19 Shock
Difference from the 2020 COVID-19 Shock CDS fluctuation is limited compared to COVID-19 shock. We now possess a solid financial foundation Mar 2020 Jun 2024 Historical SBG share price/CDS*1 • LTV 14.2% • LTV 7.8% • Cash position ¥1.8T*2 • Cash position ¥4.6T*3 (¥) 5-year CDS (bps) Concerns in 2020 N
Slide 35: Financials as an Investment Company
Financials as an Investment Company Adapt to all market changes (We have full control over the pace and scale of investments) Cash position ¥4.6T + monetization Source Normal times Times of emergency Capital Monetize Control allocation Growth investment Growth Shareholders Financial Bond Shareholder
Slide 36: FY2024Q1 Financial Summary
FY2024Q1 Financial Summary Achieved highest NAV and lowest LTV ever. Completed bond refinancing Continued strategic investments in AI NAV ¥35.3T (+¥7.5T QoQ) LTV 7.8％ (-0.6pt QoQ) NAV・LTV Net debt ¥3.0T (+¥0.4T QoQ) *1 Cash position ¥4.6T (-¥0.1T QoQ) Executed bond refinancing - Domestic bonds: rede
Slide 37: Historical NAV
Historical NAV Surge in Arm’s share price has been the main driver of NAV growth NAV ¥35.3T (as of Jun 30, 2024) NAV Pro forma (as of Jun 30, 2024) Applying share prices and FX rate as of Aug 6, 2024 ¥24.9T 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 (FY) （Note）As of each q
Slide 38: Historical NAV and Market Cap
Historical NAV and Market Cap NAV growth drives market cap expansion NAV ¥35.3T (as of June 30, 2024) Arm NAV pro forma SVF1/SVF2/ (as of Jun 30, 2024) LatAm Applying share prices and FX rate as of Aug 6, 2024 ¥24.9T Alibaba SBKK Market Cap 15T T-Mobile/ Deutsche Telekom ¥ Yahoo Japan (as of Jun 30,
Slide 39: 2000 vs 2024
2000 vs 2024 The evaluation of new technology undergoes cycles of hype and correction, ultimately being assessed based on its actual performance. Nasdaq-100 Index AI driven market # Name Market Cap. ($ B) 1 Apple 3,182 Market Cap. # Name 2 Microsoft 2,937 ($ B) 3 NVIDIA 2,471 1 Cisco Systems 552 17,
Slide 40: Major Listed Stocks: Price Trends
Major Listed Stocks: Price Trends (Since Sep 30, 2023) Although Arm and SBKK share prices have recently declined, major stocks reached new record highs since their listings All-time High All-time High All-time High ($) Jul 10 $186.46 (¥) Jul 10 ¥2,088.5 ($) Aug 6 $189.86 200 200 2,500 2,000 150 150
Slide 41: Historical Equity Value of Holdings
Historical Equity Value of Holdings Significant growth in Arm’s value boosted the equity value of holdings by over ¥20T (~2.3x) in a year 38.3 Net of asset-backed finace 30.3 21.0 (¥ T) 27.9 0.01 Alibaba $163.62 Share price 21.7 as of Jun 30 14.4 12.2 16.9 18.4 6.9 0.0 4.3 3.7 9.2 8.3 8.8 8.3 SVF1+2
Slide 42: Historical LTV
Historical LTV*1 Managed with a significant buffer 25% 18.2% 14.5% 15.0% 14.0％ Average LTV over the 11.0% 10.6% 11.5% 10.9% past three years 8.0% 8.4% 7.8% *2 Jun 2022 Sep 2022 Dec 2022 Mar 2023 Jun 2023 Sep 2023 Dec 2023 Mar 2024 Jun 2024 Pro forma 試算値 • Pro forma (as of Jun 2024): Based on the ass
Slide 43: Cash Position and Future Bond Redemptions
Cash Position and Future Bond Redemptions Maintain ample cash position, well over 2-year worth of bond redemptions Cash position Bond redemption schedule*3 ¥4.6 T *1 (¥ B) 795.0 Undrawn commitment line*2 Bond redemptions 3,813.7 for the next 2 years (¥1.4T*4) ＞ Completed refinancing 301.9 861.6 693.
Slide 44: Currency Breakdown and Yield of Cash Position
Currency Breakdown and Yield of Cash Position Continuing high yield operations primarily with USD deposits Breakdown of cash position*1 Yield for SBG USD deposits, etc. (¥ T) (%) 3.8 5.2% 5.5% 5.5% 5.5% 5.4% FF Rate (Upper Limit) Yield*2 4.9% Subsidiaries 0.9 4.4% US 10Y Treasury 4.5% yield JPY 0.8
Slide 45: Historical Invested Amounts (SVF + SBG)
Historical Invested Amounts (SVF + SBG) Invested $1.9B in Q1 ($ B) FY2022 total FY2023 total 2.5 $4.0B $3.9B SBG*1 0.2 1.8 1.9 1.5 0.9 1.2 SVF*2 2.3 1.1 0.5 0.5 0.5 0.1 0.2 0.1 0.9 0.3 0.3 0.6 0.4 0.4 0.4 0.2 0.3 0.3 0.1 0.1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY2022 FY2023 FY2024 *1 Investment by SBG and it
Slide 46: Bond Redemption Schedule
Bond Redemption Schedule Bond issuances are managed with due consideration for cash position and market environment. Completed refinancing for bond redemptions in FY24 (¥ B) 1,640.9 Domestic senior bonds 389.8 Domestic subordinated bonds Domestic hybrid bonds Foreign currency-denominated senior note
Slide 47: Bond Issuances in 2024
Bond Issuances in 2024 Already secured ¥1.5T equiv. in funding, completing FY2024 bond refinancing. Next redemption is in April 2025 March April June July Foreign Domestic Domestic Domestic currency- institutional retail bonds retail bonds denominated bonds notes ¥550.0B ¥100.0B ¥550.0B ¥301.9B equi
Slide 48: Issuance of Foreign Currency-denominated Senior Notes (July)
Issuance of Foreign Currency-denominated Senior Notes (July) First foreign currency-denominated senior notes issuance in three years since 2021. Issued amid continuous tightening of our credit spread Spread of SBG foreign currency denominated senior notes*3 Total size ~$1.9B (¥301.9B equiv.)*1 bps P
Slide 49: Issuance of Domestic Retail Senior Bonds (June)
Issuance of Domestic Retail Senior Bonds (June) Following the retail bonds issued in March, strong appetite was observed #63 Senior retail bonds Issuance spreads (Fukuoka SoftBank HAWKS Bond) (Comparison with recent domestic bonds) The spread over government 259bp Amount ¥550.0B 260 bp bonds (7-year
Slide 50: Investor Engagement
Investor Engagement Aim to establish and deepen trust through active engagement with investors and analysts. Consider every stakeholder and reflect in corporate actions Investor engagement structure Major events Issuance of SoftBank report Three-hub system: Japan, US, and UK) • General meetings of (
Slide 51: SBG Stand-alone Interest-bearing Debt
SBG Stand-alone Interest-bearing Debt*1 While non-recourse debt decreased due to settlement of financial liabilities relating to prepaid forward contracts, interest-bearing debt slightly increased due to domestic bond issuances Main changes from March 31, 2024 (¥ B) • Settlement of prepaid forward t
Slide 52: SBG Stand-alone Cash Position
SBG Stand-alone Cash Position Continue to maintain ample cash position (¥ B) SB Northstar 5,171.3 29.6 4,397.6 40.6 3,956.1 3,771.1 3,831.2 22.2 28.7 17.6 Main changes from March 2024 5,141.6 Increase Decrease 4,357.0 ・Cash settlement of collar transaction 3,742.4 3,934.0 3,813.7 ・Domestic bond issu
Slide 53: SBG Stand-alone Net Interest-bearing Debt
SBG Stand-alone Net Interest-bearing Debt Adjusted net interest bearing-debt increased mainly due to rise in SBG stand-alone gross interest-bearing debt (¥ B) 10,363.5 10,515.1 9,978.8 10,023.3 8,941.6 Finance-related adjustments 7,534.1 Asset-backed finance, etc. ¥7,167.0B 7,536.8 7,810.2 Hybrid fi
Slide 54: Funding and Fund Management Plans for FY2024
Funding and Fund Management Plans for FY2024 Flexibly select methods and scale while closely monitoring market conditions Products Plans Domestic bond Primarily anticipated for refinancing Completed refinancing for FY2024 Foreign currency note Primarily anticipated for refinancing Bank loan/ Commitm
Slide 55: Historical Credit Ratings
Historical Credit Ratings First upgrade in 12 years Acquisition of Acquisition Acquisition Acquisition Listing Listing JCR A Japan Telecom of Vodafone KK of Sprint of Arm of SBKK of Arm A+ 14 A 13 A- 12 (Stable) A- BBB+ 11 BBB10 BBB-9 S&P BB+ 8 BB 7 BB+ （Stable） BB BB- 6 Upgraded B+ 5 in just 1 year
Slide 56: FY24 Financial Strategy
FY24 Financial Strategy Steadfast financial principles Flexibly respond to all environmental changes Maintain LTV below 25% in normal times 1 (upper threshold of 35% even in times of emergency) Adhering to financial policy 2 Maintain at least 2-year worth of bond redemptions in cash 3 Secure recurri
Slide 57: Newly Authorized Share Repurchase Program
Newly Authorized Share Repurchase Program Total amount (maximum) ¥500B Repurchase period: From Aug 8, 2024 to Aug 7, 2025 (Note) For details, refer to the press release dated Aug 7, 2024, "Resolution regarding Share Repurchase” Finance 29
Slide 58: Appendix
Appendix
Slide 59: SBG Credit Spread
SBG Credit Spread Spread of SBG foreign currency- denominated senior notes SBG 5-year CDS bps 500 bps 700 USD 1.9Y USD 3.9Y USD 6.9Y SBG 5Y CDS (JPY) EUR 2.4Y EUR 4.9Y EUR 7.9Y 450 600 400 500 350 300 400 250 300 200 200 150 100 100 50 0 0 Dec 2022Mar 2023 Jun 2023 Sep 2023 Dec 2023 Mar 2024 Jun 202
Slide 60: Calculation of Equity Value of Holdings
Calculation of Equity Value of Holdings as of Jun 30, 2024 $1 = ¥161.07 ¥44.4T （unadjusted） Equity value of holdings Adjustment for (¥ T) Equity value of holdings ー ＝ asset-backed finance (adjusted) （unadjusted） Prepaid Forward Contracts, etc. Payable 923M Share price ¥21.0T ＝ 4.3 amount for Margin
Slide 61: LTV Calculation: Equity Value of Holdings
LTV Calculation: SBG Stand-alone Equity Value of Holdings (L) Adjusted ¥2.98T SBG stand-alone net debt =7.8% (V) Adjusted SBG stand-alone equity value of holdings*1 ¥38.26T (¥ T) Adjusted SBG Major SBG’s interest in Other investments = + + stand-alone equity value of holdings assets SVF1&2 & LatAm F
Slide 62: LTV Calculation: Details of Equity Value (1/2)
LTV Calculation: Details of SBG Stand-alone Equity Value of Holdings (1/2) (¥ T) Assets Value Calculation method (a) Arm 21.02 Before adjustment for asset-backed finance and deduction of payable Multiplying the number of Arm ADSs equivalent to the number of shares held by SBG by the amount of the co
Slide 63: LTV Calculation: Details of Equity Value (2/2)
LTV Calculation: Details of SBG Stand-alone Equity Value of Holdings (2/2) (¥ T) Assets Value Calculation method (g) T-Mobile 2.42 Number of T-Mobile shares held by SBG × the share price*1 (h) Deutsche Telekom 0.37 Before adjustment 0.91 Number of DT shares held by SBG × the share price Adjustment f
Slide 64: LTV Calculation: SBG Stand-alone Net Debt
LTV Calculation: SBG Stand-alone Net Debt (L) Adjusted SBG stand-alone net debt*1 ¥2.98T (V) Adjusted SBG stand-alone ¥38.26T =7.8% equity value of holdings (¥ T) Adjusted SBG Consolidated Net debt at self- Other stand-alone net financing entities, debt = net debt - etc. - adjustments 2.98 15.62 5.1
Slide 65: LTV Calculation: Details of 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) 10.52 at self-financing entities*1 For hybrid bonds and hybrid loans with maturity dates, deduct 50% from interest-bearing debt;
Slide 66: Adjustment for Asset-backed Finance in LTV and NAV
Adjustment for Asset-backed Finance in LTV and NAV Calculation Non-recourse asset-backed finance is deducted from debt. Value of assets required for settlement is deducted from assets (¥ T) Forward/Collar 1 transactions 2 Margin loan 44.4 Main shares Alibaba SBKK, Arm 1 Asset-backed used 4.3 finance
Slide 67: Geographical Portfolio Diversification
Geographical Portfolio Diversification Proportion of China decreased significantly. Proportion of EMEA increased significantly due to growth of Arm’s value Net of asset-backed finance 10% 6% China 10% Japan 29% 17% 6% APAC (excluding China and Japan） 12% 13% 9% 32% 62% EMEA 20% 4% 5% 25% 2% Latin Am
Slide 68: Breakdown of Equity Value of Holdings
Breakdown of Equity Value of Holdings Net of asset- backed finance 21% 22% 39% 14% 14% 55% 11% 8% 8% 5% 7% 18% 6% 16% 8% SBKK 19% 7% T-Mobile / Deutsche Telekom 24% 10% SVF1(64 investments) 21% 9% 2% 4% 5% 11% SVF2(271 investments) 3% LatAm (89 investments) 9% 8% 8% 5% Others Jun 2021 Jun 2022 Jun 2
Slide 69: Proportion of Listed Shares
Proportion of Listed Shares Proportion of listed shares is 82%, resulting in the portfolio's liquidity being at an extremely high level Net of asset- backed finance 18% Unlisted 27% 51% 64% 82% Listed 73% 49% 36% Jun 2021 Jun 2022 Jun 2023 Jun 2024 * Proportion of listed shares: Shares of Alibaba, A
Slide 70: Breakdown by Currency
Breakdown by Currency Investment and monetization flows are mainly in USD, while debt refinancing is principally in the same currency Investments and monetization Debt composition Cash position: ¥3.8T*1 Equity value of holdings: ¥38.3T*2 Debt*3: ¥7.1T Subsidiaries EUR Net of asset- JPY backed financ
Slide 71: Increase/Decrease in Cash Position (FY2024Q1)
Increase/Decrease in Cash Position (FY2024Q1) Maintained ample cash position*1 through monetization and funding despite new investments and cash settlement, etc. (¥ T) Financing, repayment, etc.*2 0.2 Cash settlement of collar Monetization through 0.5 transactions using T-Mobile shares*4 sale of ass
Slide 72: Consolidated Interest-bearing Debt/ Cash Position
Consolidated Interest-bearing Debt/ Cash Position/ Net Interest-bearing Debt Consolidated Interest-bearing Debt*1 (¥ B) Jun 2023 Sep 2023 Dec 2023 Mar 2024 Jun 2024 SBG stand-alone 14,083.3 14,335.8 13,765.7 14,297.5 14,328.8 Incl. SB Northstar - - - - - SVF1&2 and LatAm Funds 1,419.9 542.2 513.2 54
Slide 73: SoftBank Vision & LatAm Funds Investor Briefing
QUARTER ENDED JUNE 30, 2024 Investor Briefing SoftBank Vision & LatAm Funds NAVNEET GOVIL CFO, SB Investment Advisers & SB Global Advisers
Slide 74: 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 75: Important Information (2 of 2)
3 Important Information (2 of 2) Vision Fund 1 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 76: Venture Capital Cycle Remains Under Pressure
PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT S O F T B A NK V I S I O N & L A T A M F U ND S : I NV E S T O R B RI E F I NG 4 Venture Capital Cycle Remains Under Pressure Private Valuations, Excluding AI, Challenged Exit Environment Distributions Hit Decade Low Remain Subdued Median Late-Stage VC V
Slide 77: Quarterly Fair Value Performance
SVF1 SVF2 LATAM PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT 5 QUARTERLY FAIR VALUE PERFORMANCE 1 +$2.8B $(2.6B) $(0.1B) +$0.2B SVF1 SVF2 LATAM COMBINED SOFTBANK VISION & LATAM FUNDS: INVESTOR BRIEFING Quarterly PUBLIC +$1.4B $(1.1B) +$0.0B +$0.4B Performance PRIVATE +$1.4B $(1.5B) $(0.1B) $(0.2B)
Slide 78: Performance Snapshot
SVF1 SVF2 LATAM PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT 6 SoftBank SoftBank SoftBank Vision Fund 1 Vision Fund 2 LatAm Funds Combined5 Total Commitments1 $98.6B $59.8B $7.8B $166.2B SOFTBANK VISION & LATAM FUNDS: INVESTOR BRIEFING Acquisition Cost2 $87.8B $54.2B $7.4B $149.4B Performance Snaps
Slide 79: Public Investments Overview
SVF1 SVF2 LATAM PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT S O F T B A NK V I S I O N & L A T A M F U ND S : I NV E S T O R B RI E F I NG 7 Public Investments Overview Top 10 Public Investments by Fair Value | As of June 30, 2024 QUARTERLY FV NTM CONSENSUS CURRENT PEAK MARKET SVF1 SVF2 LATAM INVE
Slide 80: Coupang & DiDi Update
SVF1 PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT S O F T B A NK V I S I O N & L A T A M F U ND S : I NV E S T O R B RI E F I NG 8 Coupang & DiDi Update As of June 30, 2024 $1.7B $7.3B 20% $12.1B $4.0B 20% Unrealized Cost1 Unrealized Fair Value2 Ownership3 Unrealized Cost1 Unrealized Fair Value2 Ow
Slide 81: Grab & AutoStore Update
SVF1 SVF2 PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT S O F T B A NK V I S I O N & L A T A M F U ND S : I NV E S T O R B RI E F I NG 9 Grab & AutoStore Update As of June 30, 2024 $1.7B $1.4B 10% $2.8B $1.6B 38% Unrealized Cost1 Unrealized Fair Value2 Ownership3 Unrealized Cost1 Unrealized Fair Val
Slide 82: Private Investments Overview
SVF1 SVF2 LATAM PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT S O F T B A NK V I S I O N & L A T A M F U ND S : I NV E S T O R B RI E F I NG 10 Private Investments Overview As of June 30, 2024 SVF1 SVF2 LATAM # Current Investments1 Unrealized Unrealized Unrealized FV2 $27.0B FV2 $25.0B FV2 $4.7B 384
Slide 83: Key Drivers of Private Investment Performance
SVF1 SVF2 LATAM PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT S O F T B A NK V I S I O N & L A T A M F U ND S : I NV E S T O R B RI E F I NG 11 Key Drivers of Private Investment Performance As of June 30, 2024 ByteDance Outperformance Moderating Consumer Sentiment FinTech Re-Rating Revenue ($B) & Re
Slide 84: Revenue Growth of Key Sub-Sectors
SVF1 SVF2 LATAM PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT S O F T B A NK V I S I O N & L A T A M F U ND S : I NV E S T O R B RI E F I NG 12 Revenue Growth of Key Sub-Sectors Top Three Largest Sub-Sectors by Fair Value | As of June 30, 2024 DIGITAL MEDIA ECOMMERCE PAYMENTS Unrealized Cost2 Unreal
Slide 85: Portfolio Companies Continue to be Well-Capitalized
SVF1 SVF2 LATAM PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT 6% 13 <12 Months 9% 12-24 Months SOFTBANK VISION & LATAM FUNDS: INVESTOR BRIEFING Portfolio Companies 17% Portfolio 69% 94% Continue to be >24 Months Companies Cash FCF+ or Sufficient to Portfolio Runways Achieve Well-Capitalized By Fair
Slide 86: A Strong Pipeline for Future Listings
SVF1 SVF2 LATAM PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT S O F T B A NK V I S I O N & L A T A M F U ND S : I NV E S T O R B RI E F I NG 14 A Strong Pipeline for Future Listings As of June 30, 2024 ROBUST LATE-STAGE PIPELINE 51 Cumulative Public Listings Since Inception 1 Value of Late-Stage Por
Slide 87: New Investing Activity Last 12 Months
SVF2 PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT S O F T B A NK V I S I O N & L A T A M F U ND S : I NV E S T O R B RI E F I NG 15 New Investing Activity Last 12 Months Twelve-Month Period1 Ended June 30, 2024 SERIES E SERIES C Offering an AI-powered SERIES E Powering generative AI market and indu
Slide 88: GenAI Adoption is Growing Across the Portfolio
SVF1 SVF2 LATAM PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT S O F T B A NK V I S I O N & L A T A M F U ND S : I NV E S T O R B RI E F I NG 16 GenAI Adoption is Growing Across the Portfolio As of June 30, 2024 SELECT EXAMPLES OF GEN AI USE CASES 3 Rise of Leveraging a GenAI assistant Launched an ad
Slide 89: Operating as One SoftBank
PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT S O F T B A NK V I S I O N & L A T A M F U ND S : I NV E S T O R B RI E F I NG 17 Operating as One SoftBank RECENT SBG INVESTMENTS Shared Vision Common Artificial Intelligence focus Collective Expertise Sharing knowledge and operational capabilities Glob
Slide 90: Appendix
18 Appendix
Slide 91: SVF1 Distributions to Limited Partners
SVF1 S O F T B A NK V I S I O N & L A T A M F U ND S : I NV E S T O R B RI E F I NG 19 SVF1 Distributions to Limited Partners Since Inception to June 30, 2024 Total Distributions (A) (B) (C) (D) (E) = (B)-(C) Fund Drawn Return of Pref Coupon / 3 Outstanding 2 Commitment Capital 1 Capital Equity Gain
Slide 92: SVF1 Contribution to SBG, Net of 3rd Party Interests
SVF1 20 SVF1 2024 Inception to Jun 30 SOFTBANK VISION & LATAM FUNDS: Fund Net Profit2 $9.1 INVESTOR BRIEFING Less: Change in 3rd Party Contribution to Interests in Fund (4.6) SBG, Net of 3rd SBG LP Income: 4.5 Share of Fund Net Profit Party Interests1,3 SBG GP Income: Amounts in USD Billions 1.2 Man
Slide 93: SVF1 Contribution to SBG
SVF1 21 SBG Paid-In Capital1 SOFTBANK VISION & LATAM FUNDS: INVESTOR BRIEFING Contribution $27.7B to SBG SBG Total Value2 As of June 30, 2024 $22.5B $32.2B Net Asset Value3 Distributions4 $9.7B Footnotes: 1. SBG Paid-In Capital represents SBG Commitment drawn down through capital calls less Return o
Slide 94: SVF2 Contribution to SBG
SVF2 22 SBG Paid-In Capital1 SOFTBANK VISION & LATAM FUNDS: INVESTOR BRIEFING Contribution $56.0B to SBG SBG Total Value2 As of June 30, 2024 $24.0B $33.0B Net Asset Value3 Distributions4 $9.0B Footnotes: 1. SBG Paid-In Capital represents SBG Commitment drawn down through capital calls less Return o
Slide 95: LatAm Contribution to SBG
LATAM 23 SBG Paid-In Capital1 SOFTBANK VISION & LATAM FUNDS: INVESTOR BRIEFING Contribution $7.1B to SBG SBG Total Value2 As of June 30, 2024 $5.7B $6.1B Net Asset Value3 Distributions4 $0.4B Footnotes: 1. SBG Paid-In Capital represents SBG Commitment drawn down through capital calls less Return of
Slide 96: Thank You
24 Thank You SoftBank Vision & LatAm Funds Investor Briefing Presentations Available at visionfund.com/presentations
Slide 97: Arm Holdings plc SoftBank Investor Briefing
Arm Holdings plc SoftBank Investor Briefing Ian Thornton Vice President, Investor Relations AI-generated image August 2024 © 2024 Arm
Slide 98: Nomenclature difference between Arm and SoftBank Group
Nomenclature difference between Arm and SoftBank Group Fiscal year ending March 31, 2025 Fiscal year ending March 31, 2025 FY2024 FYE25 2 © 2024 Arm
Slide 99: FYE25-Q1: From Revenues to Profits
FYE25-Q1: From Revenues to Profits 97% 48% Non-GAAP Non-GAAP Gross Margin Operating Margin $939m $24m $915m License Revenue $472m $467m $448m $419m Royalty Revenue $467m Revenue Non-GAAP Non-GAAP Non-GAAP Non-GAAP Non-GAAP COGS Gross Profit Operating Operating Net Income Expense Margin Notes: 1. Dep
Slide 100: Monthly Semiconductor Industry Revenue
Semiconductor industry recovered after inventory correction Semiconductor industry has recovered from the 2022 inventory correction, now seeing normal seasonality Industry demand driven by AI and consumer. Automotive and industrial electronics seeing some weakness. Q1 smartphone sales up 2.9% year o
Slide 101: Armv9 adoption driving royalty growth
Armv9 adoption driving royalty growth Royalty Revenue by Architecture 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% FYE16 FYE17 FYE18 FYE19 FYE20 FYE21 FYE22 FYE23 FYE24 Q1 FYE25 Armv7 & older Armv8 Armv9 Armv9 commands a higher royalty per chip than prior architectures Armv9 adoption started in smart
Slide 102: Diversification in multiple long-term growth markets
Diversification in multiple long-term growth markets Royalties by End Market - FYE16 Royalties by End Market - FYE24 IoT / Embedded 20% Other Automotive 8% Smartphone AP 40% Mobile Cloud Compute and networking 10% Other mobile 7% Consumer electronics 15% Arm is increasing revenue from markets beyond
Slide 103: Gaining Share in a Massive Market
Gaining Share in a Massive Market Market Share1 Market Value1 FYE22 to FYE24 FYE22 to FYE24 MOBILE APPLICATIONS >99% >99% $30bn $33bn OTHER MOBILE Client 64% 67% $16bn $16bn CONSUMER ELECTRONICS 24% 30% $65bn $50bn CLOUD Infrastructure COMPUTE 9% 15% $16bn $21bn NETWORKING EQUIPMENT 23% 28% $15bn $1
Slide 104: Near-Term Guidance
Near-Term Guidance Q2 FYE 25 FYE 25 Revenue ($m) $780m - $830m $3.80b - $4.10b Non-GAAP Operating Expense ($m)1 ~$500m ~$2.05b Non-GAAP fully diluted earnings per share ($)1 $0.23 - $0.27 $1.45 - $1.65 (1) For more information and definitions of the non-GAAP measures see the “Key Financial and Opera
Slide 105: To be replaced
To be replaced 9 © 2024 Arm
Slide 106: SoftBank
SoftBank