Softbank Group Corp. · TSE:9984
Softbank — H1 FY2022 Earnings Presentation
88 slides from Softbank's earnings presentation, Nov 14, 2022
Slide 1: Earnings Results for the Six-month Period Ended September 30, 2022
Ver.1.1 Earnings Results for the Six-month Period Ended September 30, 2022 Investor Briefing November 14, 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 110.00 110.47 113.60 117.10 129.04 138.68 1 CNY 17.01 17.09 17.75 18.43 19.60 20.19 EOQ Jun 30 Sep 30 Dec 31 Mar 31 Jun 30 Sep 30 Dec 31 Mar 31 1 USD 122.39 144.81 1 CNY 19.26 20.37 Abbrevi
Slide 4: Index
Index • Accounting • Finance • SoftBank Vision & LatAm Funds
Slide 5: Accounting
Accounting
Slide 6: Consolidated Results
Consolidated Results FY21 FY22 (¥ B) Q1-Q2 Q1-Q2 Change Change % Net sales 2,983.5 3,182.5 199.0 6.7% Income before 1,047.0 292.6 -754.3 -72.0% income tax Net income (attributable to owners of the 363.6 -129.1 -492.7 ― parent) (Reference) Loss on investments -395.2 -849.6 -454.4 ― Investment Busines
Slide 7: 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 8: No Impact on SBG from PayPay's Conversion into Subsidiary of SBKK
No Impact on SBG from PayPay’s Conversion into Subsidiary of SBKK PayPay became a subsidiary of SBKK and Z Holdings from Oct 2022. SBKK • PayPay’s conversion into a subsidiary: Plan to record remeasurement gain relating to business combination in FY22Q3. • Change in accounting policy: Plan to chan
Slide 9: Alibaba (Transactions in FY22Q2)
Alibaba (Transactions in FY22Q2) Scope of Ownership % consolidation As of Jun 30, 2022 Procurement through prepaid 23.7％ Jul forward contracts Equity method ($6.8B) associate Physical settlement of prepaid Jul forward contracts Aug – Early physical settlement of Exclusion from prepaid forward contra
Slide 10: Alibaba (Amounts Recorded in B/S)
Alibaba (Amounts Recorded in B/S) Equity method investments Investment securities (FVTPL) Alibaba share price Excluded from Recorded in “investment securities” $113.68 associates as financial assets at FVTPL with investment results measured at fair Increment by income on equity value method investme
Slide 11: Early Physical Settlement of Alibaba Prepaid Forward Contracts
Early Physical Settlement of Alibaba Prepaid Forward Contracts Corresponding to 242M ADRs Announced on Aug 10 • P/L: Recorded ¥5,371.6B in income before income tax for FY22Q2 → Recorded value of Alibaba shares that had not been counted in accounting • B/S: Reduced financial liabilities relating to p
Slide 12: Expected Cash Tax Related to Alibaba Shares
Expected Cash Tax Related to Alibaba Shares Expected cash tax of ¥203.7B at SBG’s wholly owned subsidiary mainly due to the realization of derivative gain related to the early physical settlement mentioned on the previous page (recorded in B/S as income taxes payable). Estimated as of Sep 30, 2022 t
Slide 13: Segment Income: SoftBank Vision Funds
Segment Income: SoftBank Vision Funds (¥ B) FY21 FY22 P/L Q1-Q2 Q1-Q2 FY22Q1-Q2 Items Loss on investments at SoftBank Vision Funds -549.1 -4,312.3 Loss on investments at SVF1, SVF2, and -549.8 -4,316.2 SVF1 -¥2,008.3B, SVF2 -¥1,934.4B, LatAm Funds -¥373.6B LatAm Funds SVF1 +¥3.3B (mainly monetizatio
Slide 14: Investment Performance of SVF1 and SVF2
(Reference) Investment Performance of SVF1 and SVF2 ($ B) Since Inception FY22*1 Investment Gain/loss Gain/loss Returns*2 Gain/loss cost*2 (Q2) (Q1-Q2) SVF1 89.4 102.9 13.5 -5.0 -15.2 (-¥695.2B) (-¥2,008.3B) Exited investments 21.8 39.9 18.1 0.2 0.0 Investments before exit 67.6 60.6 -7.0 -5.1 -14.0
Slide 15: Segment Income: Investment Business of Holding Companies
Segment Income: Investment Business of Holding Companies (¥ B) P/L item FY21 FY22 FY22Q1-Q2 Items Q1-Q2 Q1-Q2 Gain on investments at Investment Business of Holding Companies 279.7 3,524.7 Gain relating to settlement of prepaid forward contracts using Alibaba shares ― 4,838.3 See page 6 and 7 for det
Slide 16: 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 17: 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 6/26 Q4-end Q1-end Q2-end Q3-end Q4-end Q1-end Q2-end Telekom's partial exercise of its call options. (Num
Slide 18: Deutsche Telekom Shares: Holding & 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 Q2-end in Sep Telekom shares in return for the sale of T-Mobile shares. Deutsche Telekom share price €18.95 €17.67 €17.40 €17.49 €16.93 €16.
Slide 19: T-Mobile Shares: Fair Values of Contingent Consideration
T-Mobile Shares: Fair Values of Contingent Consideration (Ref.) Closing price on Nov 11, 2022: $146.19 • Contingent T-Mobile share price $144.83 consideration: $134.85 $134.54 The Company’s right $127.76 $134.17 $125.29 $128.35 to acquire 48.8M T-Mobile shares for $114.36 $115.98 no additional $104.
Slide 20: Consolidated P/L Summary (IFRSs)
Consolidated P/L Summary (IFRSs) (¥ B) FY21 FY22 P/L item Change Q1-Q2 Q1-Q2 Net sales +2,983.5 +3,182.5 +199.0 Gain on investments at Investment Business of Holding Companies (consolidated basis): +¥3,524.7B (See page 11 for details) Gross profit +1,635.0 +1,721.3 +86.3 • Gain relating to settlemen
Slide 21: Consolidated B/S Summary (IFRSs) – Non-current assets
Consolidated B/S Summary (IFRSs) – 1 (¥ B) 1 Cash and cash equivalents: ¥5,886.2B（+¥717.2B） B/S item Main items Mar 2022 Sep 2022 Change SBG ¥3,259.2B（+¥756.6B） -¥407.5B decrease in derivative financial assets related to Alibaba prepaid 10,028.6 10,187.8 +159.2 forward contracts (mainly due to the p
Slide 22: Investment Securities on Consolidated B/S
Investment Securities on Consolidated B/S (Main Investments) (¥ B) Mar 2022 Sep 2022 Change Outline Investment securities 3,085.4 7,362.6 +4,277.2 FVTPL 2,587.6 6,905.8 +4,318.2 4,484.8 +4,484.8 The carrying amount of Alibaba shares that continued to be held Alibaba ― ($30,970M) (+$30,970M) at FY22Q
Slide 23: Breakdown of Goodwill/Intangible Assets
Breakdown of Goodwill/Intangible Assets (¥ B) Change B/S Main items Mar 2022 Sep 2022 Outline Item Amorti- Changes in Others zation FX rate 4,897.9 5,459.2 * Arm 2,898.1 3,429.0 ― +530.9 ― Goodwill SBKK 907.5 907.5 ― ― ― LINE 630.6 630.6 ― ― ― ZOZO 212.9 212.9 ― ― ― Technologies 357.7 398.3 Main Arm
Slide 24: Consolidated B/S Summary (IFRSs) – Non-current liabilities
Consolidated B/S Summary (IFRSs) – 2 (¥ B) 1 SBG B/S Main items Mar 2022 Sep 2022 Change Borrowings (current and non-current) -¥843.0B item ・ Repaid borrowings under commitment lines: -$4.5B 12,381.5 9,467.8 -2,913.6 ・ Repaid entire senior loans: -¥325.2B (including ¥292.7B repaid before 1 maturity)
Slide 25: Consolidated B/S Summary (IFRSs) – Equity
Consolidated B/S Summary (IFRSs) – 3 (¥ B) B/S Items Mar 2022 Sep 2022 Change item 11,707.8 13,519.6 +1,811.8 1 Net loss attributable to owners of the parent: -¥129.1B Common stock 238.8 238.8 ― Capital surplus 2,634.6 2,653.8 +19.3 2 Shares repurchased under the total of up to ¥1 trillion authorize
Slide 26: 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 27: Impact of the Weaker Yen in FY22Q1-Q2
Impact of the Weaker Yen in FY22Q1-Q2 Foreign exchange loss in consolidated P/L for FY22Q1-Q2: ¥1,095.4B SBG stand-alone: Foreign exchange loss of ¥1,605.1B related to foreign currency-denominated borrowings from Group companies, ¥197.2B related to foreign currency-denominated bonds (incl. hybrid bo
Slide 28: Consolidated C/F Summary (IFRSs)
Consolidated C/F Summary (IFRSs) (¥ B) C/F from operating activities: -¥1,522.7B yoy FY21 FY22 • Decrease in SB Northstar’s cash inflows: -¥1,674.5B C/F item Change Primary details for FY22Q1-Q2 Q1-Q2 Q1-Q2 • Decrease in income taxes paid (cash outflows): +¥438.5B Subtotal of cash flows from FY21Q1-
Slide 29: Co-investment Program to SVF2: Related Party Transactions
Co-investment Program to SVF2: Related Party Transactions Masayoshi Equity interests (third-party interests) SBG Son* 1 FY22Q2-end: $― (¥―) FY21-end: $2,207M (¥270.1B) Equity interests: 17.25% (B) (A) Distribution: $173M Equity acquisition amount: $2,923M 100% (Return of capital) (i) Acquisition cos
Slide 30: Income Taxes Paid on a Consolidated Basis (Net)
Income Taxes Paid on a Consolidated Basis (Net) (¥ B) FY19 FY20 FY21 Consolidated 636.3 445.5 589.3 Japan 575.2 310.5 551.2 SBG and holding 324.7 35.7 200.0 companies Operating companies, mainly SBKK and 250.5 274.8 351.2 Yahoo Japan Overseas 61.1 135.0 38.1 Notes: • The amounts are the net amount o
Slide 31: Characteristics of SoftBank Group's Taxation
Characteristics of SoftBank Group’s Taxation • Income on the consolidated P/L Illustration for calculation of SBG’s non-consolidated is not directly connected to income before income tax and income taxes SBG’s non-consolidated tax Calculation of non- payment amount. consolidated income before income
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 FY22Q2
Summary of FY22Q2*1 Actively reduced debts and repurchased shares, funded by continued monetization of investments NAV of ¥16.7T, LTV of 15.0%, cash position of ¥4.3T*2 NAV/LTV - LTV remained stable despite the decrease in value of equity holdings; contributed by continued monetization & curtailed i
Slide 35: LTV Trend
LTV Trend*1 Maintain sufficient financial buffer excl. asset-backed finance 100％ LTV 35% (in times of emergency) 25% (in normal times) 21.6% 20.4% *2 15.9% 18.7% 15.0% 14.3% 14.5% 11.6% 12.2% Sep 20 Dec 20 Mar 21 Jun 21 Sep 21 Dec 21 Mar 22 Jun 22 Sep 22 *1 As of the end of each quarter *2 See Appen
Slide 36: Equity Value of Holdings: Diversified Portfolio
Equity Value of Holdings: Diversified Portfolio Maintain well diversified portfolio excl. asset-backed finance Mar. 31, 2022 Sep. 30, 2022 % of listed shares*1 % of listed shares *1 (net of asset-backed finance) (net of asset-backed finance) 52% 44% Others Others T-Mobile/ 8% T-Mobile/ 8% Deutsche T
Slide 37: Impact of Forex on NAV and Accounting
Impact of Forex On NAV*1 On accounting Increase in NAV Increase in equity +¥2.6T +¥2.9T Consolidated net income -¥1.1T Weaker JPY increased NAV and equity (Note) As of Sep 2022 *1 NAV (Net Asset Value) = Adjusted SBG stand-alone equity value of holdings - Adjusted SBG stand-alone net interest-bearin
Slide 38: Main Financing Activities in FY22Q2
Main Financing Activities in FY22Q2 Used ample cash on hand for significant debt reduction Senior loans Bank loans Repaid senior loans (Sep) -$2.3B (-¥325.2B) Bonds Bonds Redeemed foreign currency-denominated notes -$0.7B (-¥86.3B) upon maturity (Jul) Alibaba shares Forward transactions +$7.9B (+¥1,
Slide 39: Cash Position
Cash Position Maintain ample cash position, well over 2 years worth of bond redemptions Cash position Bond redemption schedule*2 ¥4.3T *1 (¥ B) 701.7 Undrawn commitment line*3 Bond redemptions 3,560.8 for the next 2 years (¥1.9T) ＞ 871.9 1,046.5 915.0 1,221.8 Sep 2022 Oct 22 - Sep 23 Oct 23 - Sep 24
Slide 40: Bond Redemption Schedule
Bond Redemption Schedule Redemptions will be funded by carefully managed bond issuance with due consideration for cash position and market environment (¥ B) 1,354.6 304.6 1,096.3 Domestic senior bonds 999.4 161.3 Domestic subordinated bonds Domestic hybrid bonds 826.2 322.4 Foreign currency-denomina
Slide 41: SBG Credit Spread
SBG Credit Spread Credit spreads on widening trend, but recently getting tightened Spread of SBG foreign currency- SBG 5 years CDS denominated senior notes 800 bps 600 bps 700 500 600 400 500 400 300 300 200 200 USD 2.2Y USD 3.7Y USD 5.7Y USD 8.7Y 100 100 SBG 5Y CDS (JPY) EUR 1.7Y EUR 4.2Y EUR 6.7Y
Slide 42: Repurchase of Foreign Bonds (FY22Q1-Q3)
Repurchase of Foreign Bonds (FY22Q1-Q3) Repurchased bonds using cash on hand, amid the highly volatile market. Reduced gross debt and secured marginal gains from redemptions, while providing liquidity to the market Tender offer (Oct) USD-denominated hybrid notes (first call in Jul 2023) FY22 $750M Q
Slide 43: Debt Reduction (FY22Q1-Q2 + bond repurchase in Oct 2022)
Debt Reduction (FY22Q1-Q2 + bond repurchase in Oct 2022) Redemption/repurchase of Bonds Total ¥456.5B*1 (incl. bond repurchase in Oct 2022) (equivalent to $3.5B) Repayment of Total ¥1,007.8B*2 Total margin loans ¥2.4T (equivalent to $7.6B) reduction Repayment of Total ¥886.0B bank loans (equivalent
Slide 44: SBG Stand-alone Interest-bearing Debt
SBG Stand-alone Interest-bearing Debt*1 Large debt reduction, cutting both Main changes from Jun 30, 2022 non-recourse and recourse debts • Physical settlement of prepaid forward contracts -$28.6B (Alibaba shares) • Entry into prepaid forward contracts +$7.9B (Alibaba shares) (¥ B) 15,842.9 • Repaym
Slide 45: Change in Non-recourse Debt to SBG Stand-alone
Change in Non-recourse Debt to SBG Stand-alone*1 Reduced over ¥3T in non-recourse debt (¥ T) 15.84 12.07 Decrease in non-recourse debt 8.8 • Financial liabilities relating to prepaid forward contracts, etc.: 5.4 -¥2,555.2B (net) • Margin loans: -¥828.4B 7.1 6.7 Decrease in recourse debt • Bank loans
Slide 46: SBG Stand-alone Cash Position
SBG Stand-alone Cash Position Maintain ample liquidity after significant debt reduction (¥ B) 3,944.8 127.1 3,637.4 76.6 Cash position of SB Northstar 3,357.9 3,079.9 595.9 2,681.1 330.0 Main changes from Jun 30, 2022 Increase Decrease 582.1 ・Conclusion of new prepaid ・Repaid margin loans forward co
Slide 47: SBG Stand-alone Net Interest-bearing Debt
SBG Stand-alone Net Interest-bearing Debt Adjusted net interest-bearing debt decreased by approx. ¥1.8T from Mar 2022 (¥ B) 12,135.3 12,021.0 excl. SB Northstar 11,486.0 10,919.2 8,504.9 6,163.8 7,411.2 6,110.4 8,871.8 Finance-related adjustments 5,549.1 Asset-backed finance -¥5,461.4B Hybrid financ
Slide 48: 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. Value of assets required for settlement is deducted from assets 23.8 (¥ T) Collar/Forward/Put 1 2.4 Asset-backed 1 2 Margin loan, etc. transactions finance Main shares 1.7 ¥4.1T Al
Slide 49: Asset-backed Finance Using Alibaba Shares
Asset-backed Finance Using Alibaba Shares Decrease in beneficial holdings after early physical settlement of prepaid forward contracts Beneficial holding ratio 23.7% Used for prepaid forward 14.6% contracts Monetization in Q2 ・Total $7.9B through forward transactions *1 *2 Jun 22 Sep 22 *1 Ownership
Slide 50: Share Repurchases
Share Repurchases ¥1T program*1 ¥400B program*2 （Nov 9, 2021 - Nov 8, 2022） （Aug 9, 2022 - Aug 8, 2023） Completed Completed （on Oct 17, 2022) （on Nov 10, 2022) *1 Share repurchase program based on the Board resolution on Nov 8, 2021 *2 Share repurchase program based on the Board resolution on Aug 8,
Slide 51: Appendix
Appendix
Slide 52: Calculation of Equity Value of Holdings as of Sep 30, 2022
Calculation of Equity Value of Holdings as of Sep 30, 2022 $1 = ¥144.81 (¥ T) Equity value of holding Equity value of holdings Adjustment for ＝ ー (adjusted) （unadjusted） asset-backed finance ¥23.8T ¥3.0T ＝ ¥4.5T 387M shares held*1 × Share price ＄80.0*1 ー Collar contract, etc. ¥1.5T （unadjusted） ¥2.2
Slide 53: LTV Calculation: SBG Stand-alone Equity Value of Holdings
LTV Calculation: SBG Stand-alone Equity Value of Holdings (L) Adjusted ¥2.96T SBG stand-alone net debt =15.0% (V) Adjusted SBG stand-alone equity value of holdings*1 ¥19.68T (¥ T) Adjusted SBG Major SBG’s interest in Other Investments = + + stand-alone equity value of holdings assets SVF1&2 & LatAm
Slide 54: LTV Calculation: Details of 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 3.03 Multiplying the number of Alibaba ADSs equivalent to the number of shares held by SBG by Before adjustment 4.48 the ADS price Sum of the outstanding maturity settlement a
Slide 55: LTV Calculation: Details of 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 1.15 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 Sep 30, 2022) × the shar
Slide 56: LTV Calculation: SBG Stand-alone Net Debt
LTV Calculation: SBG Stand-alone Net Debt (L) Adjusted SBG stand-alone net debt*1 ¥2.96T (V) Adjusted SBG stand-alone ¥19.68T =15.0% equity value of holdings (¥ T) Adjusted SBG Consolidated Net debt at self- Other stand-alone net debt = net debt - financing entities - adjustments 2.96 14.13 5.63 5.5
Slide 57: LTV Calculation: 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, (before adjustment) 8.50 net of interest-bearing debt at self-financing entities - Add 50% to interest-bearing debt (to treat it as liability) for USD Hybrid Notes issued in Ju
Slide 58: Forward Transaction / Collar Transaction
(Ref.) Forward Transaction / Collar Transaction Objective Non-recourse financing using derivatives • Transaction where parties agree to settle at a pre-specified price or price range at a specific date in the future • Finance through pledged shares and derivatives referencing them Outline • Settleme
Slide 59: SBG Credit Rating Trend
SBG Credit Rating Trend Acquisition of Acquisition of Acquisition Acquisition Listing A+ 14 Japan Telecom Vodafone KK of Sprint of Arm of SBKK A 13 JCR (A－) A- 12 Outlook Positive BBB+11 BBB 10 JCR revised its outlook to “positive” BBB- 9 on November 2, 2021 BB+ 8 S&P (BB＋) Outlook Stable BB 7 BB- 6
Slide 60: Consolidated Interest-bearing Debt / Cash Position / Net Debt
Consolidated Interest-bearing Debt/ Cash Position/ Net Interest-bearing Debt Consolidated Interest-bearing Debt*1 (\ B) Sep 21 Dec 21 Mar 22 Jun 22 Sep 22 SBG stand-alone 13,967.4 13,860.4 14,918.7 15,842.9 12,065.7 Incl. SB Northstar 286.3 275.4 33.5 4.2 - SVF1&2 and LatAm Funds 835.6 1,208.6 1,077
Slide 61: Investor Briefing: SoftBank Vision & LatAm Funds
QUARTER ENDED SEPTEMBER 30, 2022 Investor Briefing SoftBank Vision & LatAm Funds NAVNEET GOVIL Executive Managing Partner
Slide 62: 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 63: 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 64: Topics
4 Topics 01- Progress & Highlights 02- Performance & Impact on SoftBank Group (SBG) 03- In Focus: Investing in AI-Powered Generational Growth
Slide 65: Progress & Highlights
Progress & Highlights == OoftBank Investment Advisers
Slide 66: Continued Market Selloff as Economic Outlook Deteriorates
P RO G RE S S & H I G H L I G H T S 6 Continued Market Selloff as Economic Outlook Deteriorates Elevated & Persistent Rising & Volatile Interest Increased Corporate Declining Business Inflation Rate Environment Earnings Risk Confidence YTD PERFORMANCE BY INDEX Jan-22 Mar-22 May-22 Jul-22 Sep-22 0% -
Slide 67: Long-Term Investor Through Multiple Economic Cycles
SVF1 SVF2 LATAM P RO G RE S S & H I G H L I G H T S 7 Long-Term Investor Through Multiple Economic Cycles For Illustrative Purposes Investing in the AI Revolution Remaining Fund Life COVID-19, Monetary Market Policy, & Acceleration of Volatility Digital Shift C 2017 2019 2020 2021 2022 2031 2034 SVF
Slide 68: Performance Snapshot
SVF1 SVF2 LATAM 8 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 $49.2B $7.3B $144.2B Snapshot Cumulative Gross Investment Gains/(Losses)1 $15.4B $(13.9B) $(0.5B) $1.0
Slide 69: Portfolio Overview
SVF1 SVF2 LATAM P RO G RE S S & H I G H L I G H T S 9 Portfolio Overview As of September 30, 2022 $145.2B SVF1 SVF2 LATAM Total Fair Value1 $103.1B 94 $35.3B 274 $6.8B 104 472 Total Total Total Total Total Total Total Investments2 Fair Value1 Investments2 Fair Value1 Investments2 Fair Value1 Investm
Slide 70: Our Globally Diversified Portfolio
SVF1 SVF2 LATAM P RO G RE S S & H I G H L I G H T S 10 Logistics Our Globally Diversified Portfolio As of September 30, 2022 PORTFOLIO FAIR VALUE BY GEOGRAPHY ($B) $62.7 $19.8 14% $23.8 EMEA 16% $13.2 CHINA 43% $6.6 9% USA & CANADA IND IA 5% $19.1 LATIN AMERICA 13% REST OF ASIA Footnotes: SoftBank V
Slide 71: Invested Across Diverse Sectors
SVF1 SVF2 LATAM P RO G RE S S & H I G H L I G H T S 11 Invested Across Diverse Sectors As of September 30, 2022 Enterprise Consumer Fintech Health Tech Logistics Frontier Tech Proptech Transportation Edtech 9% 28% 7% 7% 13% 14% 6% 15% 1% Footnotes: SoftBank Vision Fund 1 % Fair Value by Sector: Cons
Slide 72: Evolving Our Investment Platform
12 OUR PLATFORM PROGRESS & HIGHLIGHTS Evolving Our Opportunity Emerge SBGI SVF1 SVF2 LATAM Fund Accelerator Investment Platform Aligning our operating model with our centralized investment platform Retaining world-class investing and functional capabilities, operating within our global regulatory fr
Slide 73: Performance & Impact on SoftBank Group (SBG)
13 Performance & Impact on SoftBank Group (SBG)
Slide 74: SVF1 Contribution to SBG, Net of 3rd Party Interests
14 SVF1 2022 Inception to Sep 30 SVF1 Fund Net Profit2 $5.4 PERFORMANCE & IMPACT ON SBG Less: Change in 3rd Party Contribution to Interests in Fund (2.8) SBG, Net of 3rd SBG LP Income: 2.6 Share of Fund Net Profit Party Interests1,3 SBG GP Income: Amounts in USD Billions 0.9 Management & Performance
Slide 75: Contribution to SBG: SVF1
15 SBG Paid-In Capital1 SVF1 PERFORMANCE & IMPACT ON SBG Contribution to SBG SBG Total Value2 As of September 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. S
Slide 76: Contribution to SBG: SVF2
16 SBG Paid-In Capital1 SVF2 PERFORMANCE & IMPACT ON SBG Contribution to SBG SBG Total Value2 As of September 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. SBG
Slide 77: Contribution to SBG: LatAm
17 SBG Paid-In Capital1 LATAM PERFORMANCE & IMPACT ON SBG Contribution to SBG SBG Total Value2 As of September 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. SBG
Slide 78: In Focus: Investing in AI-Powered Generational Growth
18 In Focus: Investing in AI-Powered Generational Growth
Slide 79: SoftBank Has Identified Major Technology Shifts Early On
I NV E S T I NG I N A I -P O WE RE D G E NE RA T I O NA L G RO WT H 19 SoftBank Has Identified Major Technology Shifts Early On STAGES OF THE INFORMATION REVOLUTION Rise of PC Rise of Internet Rise of Mobile SVF1 SVF2 LATAM SBGI FOUNDED 1980s 1990s 2000s Information herein reflects current beliefs o
Slide 80: Our Unwavering Conviction in the Rise of AI
SVF1 SVF2 LATAM I NV E S T I NG I N A I -P O WE RE D G E NE RA T I O NA L G RO WT H 20 Our Unwavering Conviction in the Rise of AI Increase in global data Additional Annual Value of AI & Reduction in Accident Rates Rise of AI volume, 2015 to 20252 Analytics for Global Banking3 Enabled by AVs4 Higher
Slide 81: Investing in AI-Powered Companies Driving New Secular Trends
SVF1 SVF2 LATAM I NV E S T I NG I N A I -P O WE RE D G E NE RA T I O NA L G RO WT H 21 Investing in AI-Powered Companies Driving New Secular Trends Digital Commerce Financial Inclusion Supply Chain Transformation AI-Powered Disruptor Large Addressable Market Sustainable Exceptional Data Analytics Ta
Slide 82: Shifting Commerce to the Digital World
SVF1 SVF2 LATAM I NV E S T I NG I N A I -P O WE RE D G E NE RA T I O NA L G RO WT H 22 Shifting Commerce to the Digital World CONTINUED GROWTH IN GLOBAL E-COMMERCE SALES1 Delivering a digital-first Unlocking new 8,000 retail experience commercial potential 40% 6,000 4,000 23% 24% 20% Dianxiaomi 22%
Slide 83: Reimagining the Global Supply Chain
SVF1 SVF2 LATAM I NV E S T I NG I N A I -P O WE RE D G E NE RA T I O NA L G RO WT H 23 Reimagining the Global Supply Chain SIGNIFICANT OPPORTUNITY FOR FURTHER WAREHOUSE AUTOMATION GLOBAL AUTOMATION (ASRS) MARKET OPPORTUNITY Modernizing the distribution of Automating critical processes in goods throu
Slide 84: Democratizing Access to Financial Services
SVF1 SVF2 LATAM I NV E S T I NG I N A I -P O WE RE D G E NE RA T I O NA L G RO WT H 24 Democratizing Access to Financial Services FINTECH POISED FOR CONTINUED GROWTH TRANSACTION VALUE BY $16 SEGMENT1 ($T) $14 Creating a frictionless Providing new services to Supporting investment transaction experie
Slide 85: Navigating a New Frontier in Labor Markets
SVF1 SVF2 LATAM I NV E S T I NG I N A I -P O WE RE D G E NE RA T I O NA L G RO WT H 25 Navigating a New Frontier in Labor Markets HISTORICALLY HIGH JOB OPENINGS US JOB OPENINGS – MILLIONS1 12 Transforming hiring and onboarding Fostering employee 11 across industries engagement and retention 10 10.7
Slide 86: Managing, Analyzing, and Protecting the World's Data
SVF1 SVF2 LATAM I NV E S T I NG I N A I -P O WE RE D G E NE RA T I O NA L G RO WT H 26 Managing, Analyzing, and Protecting the World’s Data WORLDWIDE DATA FORECASTED TO GROW EXPONENTIALLY GLOBAL VOLUME OF DATA CREATED AND CONSUMED 1 200 180 Optimizing performance Unlocking next-level Protecting data
Slide 87: Maintaining a Defensive Posture in the Current Market
27 I N V E S T I N G I N A I- P O W E R E D G E N E R A T I O N A L G R O WT H Maintaining a Defensive Our Posture in the Approach Current Market The information herein is provided solely for illustrative purposes, reflects the current beliefs of SBIA as of the date hereof. There can be no assurance
Slide 88: Thank You
28 Thank You SoftBank Vision & LatAm Funds Investor Briefing Presentations Available at visionfund.com/presentations