Softbank Group Corp. · TSE:9984
Softbank — Q1 FY2021 Earnings Presentation
28 slides from Softbank's earnings presentation, August 2021
Slide 1: SoftBank Vision Funds Update
QUARTER ENDED JUNE 30, 2021 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 (SBG) 03- In Focus: Opportunities in the AI Revolution
Slide 5: Progress & Highlights
Progress & Highlights Investment Advisers
Slide 6: Key Developments
SVF1 SVF2 PROGRESS & HIGHLIGHTS 6 Key Developments Three-Month Period Ended June 30, 2021 New Capital Fund New Public Investments1 Invested2 Distributions3 Listings4 47 $14.2B $6.7B 7 Footnotes: 1. New Investments represents the number of investments made by SoftBank Vision Fund 1 and SoftBank Visio
Slide 7: Listings Since Inception
SVF1 SVF2 PROGRESS & HIGHLIGHTS 7 Listings Since Inception 8.7x As of June 30, 2021 GROSS 2.4x 2.4x MOIC 1 24 10.9x 16.0x 1.9x 0.5x 1.1x B IK 8.8x 3.0x 0.5x 3.7x 2.9x 1.0x 1.2x 1.6x Total Listings Since Inception of the Funds2 0.8x 2.1x 1.5x 5.4x 0.8x 3.4x 1.3x 1.6x 2.6x 2017 2018 2019 2020 2021 LIS
Slide 8: IPOs Continue to Unlock Value
SVF1 SVF2 PROGRESS & HIGHLIGHTS 8 IPOs Continue to Unlock Value Three-Month Period Ended June 30, 2021 Portfolio IPO Market Listing Company Proceeds4 Capitalization5 Exchange $0.5B $5.2B NYSE $0.6B $4.0B NASDAQ SVF1 $4.4B $68.2B NYSE UNREALIZED GROSS GAIN 2 $22.3B 6 $1.6B $22.1B NYSE $3.7B $33.7B HK
Slide 9: Disciplined Monetization Strategy
SVF1 PROGRESS & HIGHLIGHTS 9 Disciplined Monetization Strategy Inception to June 30, 2021 Portfolio Company Gross Realized Proceeds Gross Realized Gain2 PUBLIC SALE $5.8B $1.0B Gross Realized Proceeds3 $0.8B $24.2B $0.3B M&A / OTHER Cost1 $3.9B $2.4B Other Undisclosed Full & Partial Exits $10.0B Tot
Slide 10: Distributions to Limited Partners
SVF1 PROGRESS & HIGHLIGHTS 10 Distributions to Limited Partners Since Inception to June 30, 2021 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 $35.6B $15.4B $5.3B $20.
Slide 11: Portfolio Evolution
11 $146.5B $34.6B $86.1B SVF1 Represents $12.9B Combined Exited & PROGRESS & HIGHLIGHTS Public Fair Value4 $10.0B $66.4B Represents Portfolio Combined Exited & Public Fair Value4 Evolution Exited1 Public2 $63.2B By Fair Value Private3 $45.5B June 2020 June 2021 Pro Forma5 Footnotes: 1. Exited repres
Slide 12: Our Portfolio Companies Continue to Attract Capital
SVF1 SVF2 PROGRESS & HIGHLIGHTS 12 Our Portfolio Companies Continue to Attract Capital Three-Month Period Ended June 30, 2021 PRE-MONEY VALUATIONS 11 3 Funding Rounds1 Series F Series H Series E Series F Series G Series E $2.0B+ $4.8B $2.8B $2.1B $1.3B $1.0B $1.1B Capital Raised Investors: $10.5B+ T
Slide 13: Performance Snapshot
SVF1 SVF2 13 SoftBank SoftBank Vision Fund 1 Vision Fund 2 Combined Total Commitment $98.6B $40.0B $138.6B PROGRESS & HIGHLIGHTS Performance Acquisition Cost1 $86.2B $19.5B $105.7B Snapshot Cumulative $60.3B $5.5B $65.8B Investment Gains1 As of June 30, 2021 Total Fair Value2 $146.5B $25.0B $171.5B
Slide 14: Performance & Impact on SoftBank Group (SBG)
14 Performance & Impact on SoftBank Group (SBG)
Slide 15: SVF1 Contribution to SBG, Net of 3rd Party Interests
15 SVF1 2020 2021 Three-Month Period Ended Jun 30 Jun 30 SVF1 Fund Net Profit2 $2.35 $1.99 PERFORMANCE & IMPACT ON SBG Less: Change in 3rd Party Contribution to Interests in Fund (1.12) (0.96) SBG, Net of 3rd SBG LP Income: 1.23 1.03 Share of Fund Net Profit Party Interests1 SBG GP Income: Amounts i
Slide 16: SVF1 Contribution to SBG, Net of 3rd Party Interests
16 SVF1 2021 Inception to Jun 30 SVF1 Fund Net Profit2 $42.46 PERFORMANCE & IMPACT ON SBG Less: Change in 3rd Party Contribution to Interests in Fund (20.75) SBG, Net of 3rd SBG LP Income: 21.71 Share of Fund Net Profit Party Interests1,3 SBG GP Income: Amounts in USD billions 10.71 Management & Per
Slide 17: Contribution to SBG, Realized and Unrealized Values
17 SBG Paid-In Capital4 SVF1 PERFORMANCE & IMPACT ON SBG Contribution to SBG, Realized and SBG Total Value5 Net Asset Value1 Unrealized Values (Unrealized Value) Distributions2 As of June 30, 2021 (Realized Value) Accrued & Paid Performance Fees3 Footnotes: 1. Net Asset Value includes net changes in
Slide 18: Contribution to SBG, Realized and Unrealized Values
18 SBG Paid-In Capital4 SVF2 PERFORMANCE & IMPACT ON SBG Contribution to SBG, Realized and SBG Total Value5 Net Asset Value1 Unrealized Values (Unrealized Value) Distributions2 As of June 30, 2021 (Realized Value) Accrued Performance Fees3 Footnotes: 1. Net Asset Value includes net changes in fair v
Slide 19: In Focus: Opportunities in the AI Revolution
19 In Focus: Opportunities in the AI Revolution
Slide 20: Continued Conviction in the Artificial Intelligence Revolution
SVF1 SVF2 OPPORTUNITIES IN THE AI REVOLUTION 20 Continued Conviction in the Artificial Intelligence Revolution Our Thesis The Market The The Investment opportunities are evaluated by… Opportunity Business Founders Market Cap Growth2 2020 US GDP $21T Non-AI3 100% 1994 Footnotes: 1. Source: Statista.
Slide 21: Building an AI-Enabled Portfolio
SVF2 OPPORTUNITIES IN THE AI REVOLUTION 21 Building an AI-Enabled Portfolio As of June 30, 2021 PRIVATE PORTFOLIO4 SOFTBANK COST BY GEOGRAPHY (IN USD BILLIONS) VISION FUND 2 Acquisition Cost5 Fair Value6 % COST BY SECTOR $5.6 Number of Portfolio $0.8 Companies1 Consumer Fintech Logistics $7.0 $1.7 $
Slide 22: Disruptive Opportunities within Each Sector
SVF2 OPPORTUNITIES IN THE AI REVOLUTION 22 Disruptive Opportunities within Each Sector Alternative Lending Payments WealthTech Warehouse Automation & Management SoftBank +14 Vision Fund 2 Digital Health Genomics & Proteomics Medical Technology Creator Economy Therapeutics The information herein is p
Slide 23: Consumer: Powering the Creator Economy
SVF2 OPPORTUNITIES IN THE AI REVOLUTION 23 Consumer: Powering the Creator Economy As of June 30, 2021 Global Influencer Marketing Spend ($B)1 2016 1.7 52% Creating a digital Connecting fans directly with Using technology to identify CAGR playground and community their favorite pop culture icons and
Slide 24: Logistics: Optimizing Warehouse Automation & Management
SVF2 OPPORTUNITIES IN THE AI REVOLUTION 24 Logistics: Optimizing Warehouse Automation & Management As of June 30, 2021 $3.6B Total Amount Invested1 Projected Reduction in Labor Spend via Robotic Picking & Intelligent Mobility2 World’s Fastest Growing Among the largest & most Best Fulfillment Large m
Slide 25: Fintech: Broadening Access to Financial Platforms
SVF2 OPPORTUNITIES IN THE AI REVOLUTION 25 Fintech: Broadening Access to Financial Platforms As of June 30, 2021 Alternative Lending Payments WealthTech Digital mortgage origination platform AI-driven platform providing Retail bank, alternative Multi-asset online social financing for ecommerce busin
Slide 26: Health Tech: Investing in Groundbreaking Technologies
SVF2 OPPORTUNITIES IN THE AI REVOLUTION 26 Health Tech: Investing in Groundbreaking Technologies As of June 30, 2021 Genomics & Medical Digital Proteomics Therapeutics Technology Health Total Investments1 Footnotes: 1. Total Investments includes Investments in portfolio companies made by SoftBank Vi
Slide 27: An Enduring Investing Platform
SVF1 SVF2 OPPORTUNITIES IN THE AI REVOLUTION 27 An Enduring Investing Platform As of June 30, 2021 Assets Under Portfolio Investment Global Management Companies1 Professionals Offices Footnotes: 1. Portfolio Companies represents the total number of unique investments made in portfolio companies by S
Slide 28: Thank You
28 Thank You SoftBank Vision Funds Investor Briefing Presentations Available at visionfund.com/presentations