Softbank Group Corp. · TSE:9984
Softbank — Q1 FY2020 Earnings Presentation
35 slides from Softbank's earnings presentation, August 2020
Slide 1: SoftBank Vision Funds Update
QUARTER ENDED JUNE 30, 2020 SoftBank Vision Funds Update NAVNEET GOVIL Managing Partner & Chief Financial Officer SoftBank Investment Advisers
Slide 2: 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 3: 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 4: Topics
4 Topics 01- Progress & Highlights 02- Performance & Impact on SoftBank Group 03- In Focus: Accelerating Technological Shifts
Slide 5: Progress & Highlights
Progress & Highlights Investment Advisers
Slide 6: Update on SoftBank Vision Fund 2
PROGRESS & HIGHLIGHTS 6 Update on SoftBank Vision Fund 2 As of June 30, 2020 CURRENT PORTFOLIO 1 Acquisition Cost AMERICAS EMEA ASIA Digital pharmacy platform Communication monitoring Online optical marketplace system BEIKE Genomic diagnostics company Residential real estate platform Number of Inves
Slide 7: SVF1: Key Developments
PROGRESS & HIGHLIGHTS 7 SVF1: Key Developments Three-Month Period Ended June 30, 2020 Capital Invested 1 Follow-On Investments2 Fair Value Uplift3 Sale Proceeds4 Distributions5 Debt Repayment6 Footnotes: 1. Post the end of the Investment Period, SoftBank Vision Fund 1 is not permitted to invest in a
Slide 8: Performance Snapshot
8 SoftBank SoftBank Vision Fund 1 Group Total Commitment Total Commitment PROGRESS & HIGHLIGHTS $98.6B $28.1B Performance Acquisition Cost 1 SBG Paid-In Capital Snapshot $82.6B $24.1B 1 3 Cumulative Investment Gains SBG Total Value As of June 30, 2020 $3.5B $23.4B 2 2 Distributions SBG Distributions
Slide 9: SVF1: Portfolio Companies
PROGRESS & HIGHLIGHTS 9 SVF1: Portfolio Companies As of June 30, 2020 PRIVATE 4 Number of Investments1 Current Portfolio Companies2 PUBLIC Exits3 Footnotes: 1. Number of Investments includes investments in portfolio companies made by SoftBank Vision Fund 1 and joint-ventures with existing portfolio
Slide 10: SVF1: Portfolio Composition By Sector
PROGRESS & HIGHLIGHTS 10 SVF1: Portfolio Composition By Sector As of June 30, 2020 Transportation Real Estate Consumer Fintech Enterprise Health Tech Frontier Tech & Logistics 6% 19% 7% 42% 4% 6% 16% COST $9.9B $11.5B $4.9B $33.8B $2.2B $2.3B $10.9B FAIR VALUE $4.6B $13.7B $4.9B $30.6B $2.9B $4.5B $
Slide 11: SVF1: Measurable Value in Our Portfolio
PROGRESS & HIGHLIGHTS 11 SVF1: Measurable Value in Our Portfolio As of June 30, 2020 Realized Investments Unrealized Investments Gross Realized Gains1 Total Acquisition Cost1 Gross Unrealized Losses1,3 Total Fair Market Value1,3 $5.8B $75.5B ($2.3B) $73.2B Number of Portfolio Companies : 1,2 11 8 78
Slide 12: SVF1: Public Listings Since Inception
PROGRESS & HIGHLIGHTS 12 SVF1: 8 Public Listings Since Inception As of June 30, 2020 NASDAQ: GH HKG: 1833 NYSE: WORK NASDAQ: TXG STOCK PRICE1 $81.13 $117.90 HKD $31.09 $89.31 GROSS 7.4x 2.1x 3.0x 10.5x MOIC2 NYSE: UBER NASDAQ: VIR HKG: 6060 NYSE: OCFT STOCK PRICE1 $31.08 $40.97 $38.35 HKD $18.26 GRO
Slide 13: SVF1: 9th Public Listing - Relay Therapeutics, Inc.
PROGRESS & HIGHLIGHTS 13 SVF1: 9th Public Listing - Relay Therapeutics, Inc. IPO Date: July 16, 2020 NASDAQ: RLAY 3 4 SVF1 - Cost Post-IPO Trading Activity AUG 10 IPO Price1 $20.00 +75% IPO – JUL 16 IPO Closing Share Price 2 $35.05 DEC 2018 2020 Footnotes: 1. IPO Price represents Relay Therapeutics,
Slide 14: SVF1: Valuations in Recent Funding Rounds
PROGRESS & HIGHLIGHTS 14 SVF1: Valuations in Recent Funding Rounds Pre-Money Valuations April 2020 $2.3B June 2020 $6.5B June 2020 $15.6B Series E Prior Round: $0.9B Series E Prior Round: $3.0B Series H Prior Round: $12.0B Footnote: Zuoyebang Pre-Money Valuation Source: Reuters article, “Chinese onl
Slide 15: SVF1: Distributions to Limited Partners
PROGRESS & HIGHLIGHTS 15 SVF1: Distributions to Limited Partners Since Inception to June 30, 2020 Total Distributions (A) (B) (C) (D) (E) = (B)-(C) Fund Drawn Return of Pref Coupon / 3 Outstanding 2 Commitment Capital 1 Capital Equity Gains 4 Capital 5 Preferred Equity $40.0B $34.0B $4.5B $3.5B $29.
Slide 16: SoftBank Vision Fund 1 Significant Liquid Assets and Dry Powder
16 SoftBank Vision Fund 1 1 Net Portfolio Value Net Portfolio Value PROGRESS & HIGHLIGHTS OVER TOTAL DEBT as of Jun 30, 2020 $73.2B Significant Dry Powder Liquid Assets to Invest Liquid Assets & and Dry Powder 2 as of Jun 30, 2020 $27.0B Dry Powder OVER TOTAL DEBT 3 Total Debt as of Jun 30, 2020 $1.
Slide 17: Performance & Impact on SoftBank Group (SBG)
17 Performance & Impact on SoftBank Group (SBG)
Slide 18: SVF1 Contribution to SBG, Net of 3rd Party Interests
18 SVF1 2019 2020 Three-Month Period Ended June 30 June 30 Fund Net Profit 2 $2.73 $2.35 PERFORMANCE & IMPACT ON SBG Less: Change in 3rd Party Contribution to Interests in Fund (1.35) (1.12) SBG, Net of 3rd SBG LP Income: 1.38 1.23 Share of Fund Net Profit Party Interests 1 SBG GP Income: Amounts in
Slide 19: SVF1 Contribution to SBG, Net of 3rd Party Interests (Inception to Date)
19 SVF1 2020 Inception to June 30 Fund Net Loss 2 $(1.67) PERFORMANCE & IMPACT ON SBG Less: Change in 3rd Party Contribution to Interests in Fund 1.00 SBG, Net of 3rd SBG LP Loss: (0.67) 1 Share of Fund Net Loss Party Interests SBG GP Income: Amounts in USD billions 3 0.42 Management Fees & Performa
Slide 20: Contribution to SBG, Realized and Unrealized Values
20 Paid-In Capital PERFORMANCE & IMPACT ON SBG Contribution to SBG, Realized and Total Value Unrealized Values Net Asset Value1 (Unrealized Value): (SVF1) Distributions2 As of June 30, 2020 (Realized Value): Footnotes: 1. Net Asset Value includes net changes in fair value of financial assets at fair
Slide 21: In Focus: Accelerating Technological Shifts
21 In Focus: Accelerating Technological Shifts
Slide 22: Technological Shifts are Accelerating
ACCELERATING TECHNOLOGICAL SHIFTS 22 Technological Shifts are Accelerating An Illustrative Timeline SVF1 Launch MAY 2017 Artificial Intelligence & Big Data Mobile Connectivity Internet Revolution Computing Revolution 1980 1990 2000 2010 2020 2050+ The information herein is provided solely for illust
Slide 23: COVID-19 Impact on Industries
ACCELERATING TECHNOLOGICAL SHIFTS 23 COVID-19 Impact on Industries HIGH IMPACT1 LOW IMPACT1 MODERATE IMPACT1 (NEGATIVE) (POSTIVE) Retail Non- Real Estate Paper & Business & Healthcare Retail Defense Tech Airlines Automotive Hotels Essentials (REITs) Packaging Consumer Services (Med Products) Essenti
Slide 24: COVID-19 Impact on Industries
ACCELERATING TECHNOLOGICAL SHIFTS 24 COVID-19 Impact on Industries HIGH IMPACT1 LOW IMPACT1 MODERATE IMPACT1 (NEGATIVE) (POSITIVE) Retail Non- Real Estate Paper & Business & Healthcare Retail Defense Tech Airlines Automotive Hotels Essentials (REITs) Packaging Consumer Services (Med Products) Essent
Slide 25: Sectors Benefiting from Technological Shifts
25 ACCELERATING TECHNOLOGICAL SHIFTS Food Education Delivery Sectors Benefiting from Technological Healthcare SoftBank Entertainment Shifts Vision Fund 1 Enterprise E-Commerce Solutions Information herein reflects current beliefs of SBIA as of the date hereof and are based on a variety of assumption
Slide 26: E-Commerce
26 ACCELERATING TECHNOLOGICAL SHIFTS E-Commerce Online Retail Market Share In Korea4 GMV5 Unique Users5 U.S. E-Commerce Penetration1 27% 30% +11pp 4 Coupang Market Share 20% (Korea Online Retail) Of Rocket orders are delivered within 24hrs6 16% 6% 10% 10 years 10 Weeks Logistics & delivery hubs oper
Slide 27: Entertainment
27 ACCELERATING TECHNOLOGICAL SHIFTS Entertainment Babe TikTok / Douyin Helo Lark Toutiao Xigua Video 1 Top Apps Worldwide TikTok Year-over-Year Growth Zoom Facebook Whatsapp 2 3 4 TikTok TikTok Douyin Instagram App Downloads Monthly Active Users Avg Time Spent/User Google Meet 615M+ (1H 2020)2 480M
Slide 28: Enterprise Solutions
28 ACCELERATING TECHNOLOGICAL SHIFTS Enterprise Solutions PRE-COVID-19 27% Digital Collaboration Robotic Process Automation 5G, Network & Faster Processing Power Of Workforce Was Fully Remote1 COVID-19 58% Organizations using Slack Digital Workers Graviton2 Transitioned to Working Remotely1 incl. 65
Slide 29: Healthcare
29 ACCELERATING TECHNOLOGICAL SHIFTS Healthcare Tests to Clinical Tests to Biopharma Customers4 Customers4 “Exploring the feasibility of developing our own high throughput diagnostic test for COVID-19” Integrating leading-edge experimental and Accumulated Accumulated New Daily Consultations by New c
Slide 30: Education
30 ACCELERATING TECHNOLOGICAL SHIFTS Education $64B Student Traffic and Enrollment Main App MAU (mm) YoY Growth Most Used Online China EdTech Market1 Monthly Active Users4 Education App5 YoY Growth 195M Online Education Users in China2 Monthly Active YoY Growth Users6 Full-Price Enrollments7 4x Apr
Slide 31: Food Delivery
ACCELERATING TECHNOLOGICAL SHIFTS 31 Food Delivery Dark Kitchens Food & Grocery Delivery Autonomous Delivery Kitchens U.S. Market Gross Bookings Increase in Demand for Contactless Deployed1 Share as of May3 Annual Run-Rate4 Delivery Services During Pandemic5 Monthly Gross Faster Than Industry YoY Gr
Slide 32: Sectors Benefiting from Technological Shifts
ACCELERATING TECHNOLOGICAL SHIFTS 32 Sectors Benefiting from Technological Shifts Enterprise Food Education Healthcare Entertainment E-Commerce Solutions Delivery Information herein reflects current beliefs of SBIA as of the date hereof and are based on a variety of assumptions and estimates that ar
Slide 33: Introducing Our Emerge Program
ACCELERATING TECHNOLOGICAL SHIFTS 33 Introducing Our Emerge Program Powering the Next Generation of Underrepresented Innovative Founders The information presented herein is provided for illustrative and informational purposes only and should not be relied upon in any way. The information provided he
Slide 34: Wrap-Up
34 Wrap-Up 01- Progress & Highlights 02- Performance & Impact on SoftBank Group 03- In Focus: Accelerating Technological Shifts
Slide 35: Thank You
Thank You == SoftBank Investment Advisers