Softbank Group Corp. · TSE:9984
Softbank — H1 FY2020 Earnings Presentation
119 slides from Softbank's earnings presentation, Nov 9, 2020
Slide 1: Earnings Results for the 6-month Period ended September 30, 2020
Earnings Results for the 6-month Period ended September 30, 2020 November 9, 2020
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: Horse
5000 years ago Horse A chariot that has been portrayed in the ancient Egyptian relief. 2
Slide 4: Engine
100 years ago Engine 3
Slide 5: Sem
Sm d —_ x ” Sem © ® > = ® rs
Slide 6: Horse Engine AI
5000 years ago 100 years ago Few years later Horse Engine AI 5
Slide 7: Consolidated Results
Consolidated Results 6
Slide 8: Net Income
Net Income (USD 17.8bn) (JPY bn) 1,883.2 YoY 4.5x 421.6 FY19H1 FY20H1 USD 1 = JPY 105.80 (as of Sep. 30, 2020 TTM) Net income: net income attributable to owners of the parent 7
Slide 9: Gain and Loss on Investments (Cumulative)
Gain and Loss on Investments (Cumulative) (SVF Segment on a SBG Consolidated Basis) (JPY bn) 1,823.4 * (Sum of SVF1 and SVF2) 1,294.1 1,390.1 (USD 13.1bn) Return profit 911.6 On Apr. 1, 2020, Sprint ceased to be a subsidiary of the Company following the completion of the merger between Sprint and T-
Slide 10: What is SoftBank?
What is SoftBank? 9
Slide 11: The company investing in the Information Revolution
The company investing in the Information Revolution 10
Slide 12: The company investing in the AI Revolution
The company investing in the A I Revolution 11
Slide 13: May 8, 2008
Winners in the mobile Internet market are winners in the Internet market Winners in Asia are winners in the World sam OOftBank May 8, 2008
Slide 14: Winners in AI are winners in the future
Winners in A I are winners in the future Nov. 9, 2020 13
Slide 15: The company investing in the AI Revolution
The company investing in the A I Revolution 14
Slide 16: NAV
N AV 15
Slide 17: Shareholder value
Shareholder Equity value Net debt value of holdings 16
Slide 18: The most important KPI for an investment company
(Net Asset Value) Equity value Net debt NAV of holdings The most important KPI for an investment company 17
Slide 19: The most important KPI for an investment company
(Net Asset Value) Equity value Net debt NAV of holdings USD 258bn USD 292bn USD 34bn The most important KPI for an investment company • Share price: closing price as of Sep. 30, 2020 (Japan) closing price as of Sep. 30, 2020 (U.S.) For details, see “Definition and Calculation Method of SBG’s Sum-of-
Slide 20: NAV (Net Asset Value)
NAV (Net Asset Value) (USD bn) 258 Sep. 30, 2020 • Share price: closing price as of Sep. 30, 2020 (Japan) closing price as of Sep. 30, 2020 (U.S.) For details, see “Definition and Calculation Method of SBG’s Sum-of-the-parts Valuation” (as of Sep. 30, 2020) 19
Slide 21: NAV: USD +58bn in six months
NAV (Net Asset Value) (USD bn) 258 200 USD +58bn in six months Mar. 31, 2020 Sep. 30, 2020 • Share price: closing price as of Sep. 30, 2020 (Japan) closing price as of Sep. 30, 2020 (U.S.) For details, see “Definition and Calculation Method of SBG’s Sum-of-the-parts Valuation” (as of Sep. 30, 2020)
Slide 22: Index Comparison (past 18 years)
Index Comparison (past 18 years) 2.1x Nikkei 225 1 Financial crisis Abenomics Apr. 1, Sep. Jan. Sep. 30, 2002 2008 2013 2020 As of Apr. 1, 2002: closing price as of Apr. 1, 2002 (Japan) closing price as of Apr. 1, 2002 (U.S.) As of Sep. 30, 2020: closing price as of Sep. 30, 2020 (Japan) closing pri
Slide 23: Index Comparison (past 18 years)
Index Comparison (past 18 years) Investing in changes (interests, exchange rates, financial policy, corporate performance) 2.1x Nikkei 225 1 Financial crisis Abenomics Apr. 1, Sep. Jan. Sep. 30, 2002 2008 2013 2020 As of Apr. 1, 2002: closing price as of Apr. 1, 2002 (Japan) closing price as of Apr.
Slide 24: Index Comparison (past 18 years)
Index Comparison (past 18 years) Dow Jones 2.7x industrial average Investing in changes (interests, exchange rates, financial policy, corporate performance) 2.1x Nikkei 225 1 Financial crisis Abenomics Apr. 1, Sep. Jan. Sep. 30, 2002 2008 2013 2020 As of Apr. 1, 2002: closing price as of Apr. 1, 200
Slide 25: Index Comparison (past 18 years)
Index Comparison (past 18 years) NASDAQ 6.0x composite index Dow Jones 2.7x industrial average 2.1x Nikkei 225 1 Apr. 1, Sep. Jan. Sep. 30, 2002 2008 2013 2020 As of Apr. 1, 2002: closing price as of Apr. 1, 2002 (Japan) closing price as of Apr. 1, 2002 (U.S.) As of Sep. 30, 2020: closing price as o
Slide 26: Index Comparison (past 18 years)
Index Comparison (past 18 years) 157x SBG NAV JPY 27.3t (USD 258bn) JPY 0.2t (USD 1.3bn) 6.0x NASDAQ composite index 2.7x Dow Jones industrial average 1 2.1x Nikkei 225 Apr. 1, Sep. Jan. Sep. 30, *SBG NAV (JPY 0.2t) as of Apr. 1, 2002: Calculated based on Yahoo Japan's market capitalization as of Ap
Slide 27: Investing in evolution
Index Comparison (past 18 years) 157x SBG NAV JPY 27.3t (USD 258bn) Investing in evolution JPY 0.2t (USD 1.3bn) 6.0x NASDAQ composite index 2.7x Dow Jones industrial average 1 2.1x Nikkei 225 Apr. 1, Sep. Jan. Sep. 30, *SBG NAV (JPY 0.2t) as of Apr. 1, 2002: Calculated based on Yahoo Japan's market
Slide 28: Investing in evolution
SBG NAV JPY 27.3t (USD 258bn) Unlisted stocks Investing in evolution Listed stocks Proportion of the equity value of holdings at each time Listed stocks: total of Yahoo Japan, Alibaba, T-Mobile (Sprint), SBKK (after FY18), Arm (FY20 only), SVF1 (listed stocks equivalent), SVF2 (listed stocks equival
Slide 29: Investing in evolution
SBG NAV JPY 27.3t (USD 258bn) AI Investing in evolution Internet Proportion of the equity value of holdings at each time Telco: SBKK + T-Mobile (Sprint) Telco AI: SVF1 + SVF2 + Arm (FY20 only) + investments in listed stocks 2002 '04 '06 '08 '10 '12 '14 '16 ’18 '20 (FY) SBG NAV: closing price as of S
Slide 30: Investing in evolution
SBG NAV Investing in evolution Proportion of the equity value of holdings at each time Telco: SBKK + T-Mobile (Sprint) AI: SVF1 + SVF2 + Arm (FY20 only) + investments in listed stocks 2002 '04 '06 '08 '10 '12 '14 '16 ’18 '20 (FY) SBG NAV: closing price as of Sep. 30, 2020 (Japan) closing price as of
Slide 31: SBG NAV
SBG NAV ? ? ? Proportion of the equity value of holdings at each time Telco: SBKK + T-Mobile (Sprint) AI: SVF1 + SVF2 + Arm (FY20 only) + investments in listed stocks 2002 '04 '06 '08 '10 '12 '14 '16 ’18 '20 (FY) SBG NAV: closing price as of Sep. 30, 2020 (Japan) closing price as of Sep. 30, 2020 (U
Slide 32: SBG NAV
SBG NAV Proportion of the equity value of holdings at each time Telco: SBKK + T-Mobile (Sprint) AI: SVF1 + SVF2 + Arm (FY20 only) + investments in listed stocks 2002 '04 '06 '08 '10 '12 '14 '16 ’18 '20 (FY) SBG NAV: closing price as of Sep. 30, 2020 (Japan) closing price as of Sep. 30, 2020 (U.S.) 3
Slide 33: Investing in evolution
This presentation is furnished to you for informational purposes regarding our future strategy and is not, and may not be relied on as, any representation or warranty of SBG NAV future performance of SBG.The performance may differ materially from the performance information indicated in this present
Slide 34: Three Concerns
Three Concerns Uncertainty Derivative Lot of debt around risk unlisted stocks 33
Slide 35: Three Facts
Three Facts Ratio of Derivative ratio LTV (Net debt/equity value of holdings) unlisted stocks (Fair value of the option (Value of unlisted stocks/ /equity value of holdings) equity value of holdings) 12% 8% 1% “Value of unlisted stocks” includes fair value of unlisted stocks held directly by SBG and
Slide 36: LTV (Net Debt / Equity Value of Holdings)
LTV (Net Debt / Equity Value of Holdings) (USD bn) 292 12% Manage at less than 25% during “normal” periods 34 Equity value Net debt of holdings • Share price: closing price as of Sep. 30, 2020 (Japan) closing price as of Sep. 30, 2020 (U.S.) For details, see “Definition and Calculation Method of SBG
Slide 37: Ratio of Unlisted Stocks
Ratio of Unlisted Stocks (Value of Unlisted Stocks / Equity Value of Holdings) (USD bn) 292 8% Target around 10% 24 “Value of unlisted stocks” includes fair value of unlisted stocks held directly by SBG and the pro forma liquidation value to SBG, on a consolidated basis, of all unlisted investments
Slide 38: Derivative Ratio
Derivative Ratio (Fair Value of the Option / Equity Value of Holdings) (USD bn) 292 1.2% Manage at less than 10% in principle 3.4 Equity value Fair value of of holdings the option • • Fair value of the option: as of Sep. 30, 2020, net of fair value of long call option of listed stocks held by the as
Slide 39: The future of humanity is in AI
The future of humanity is in AI 38
Slide 40: Six Phases of Computing
Six Phases of Computing Calculate 39
Slide 41: Six Phases of Computing
Six Phases of Computing Calculate Memorize 40
Slide 42: Six Phases of Computing
Six Phases of Computing Calculate Memorize Search 41
Slide 43: Six Phases of Computing
Six Phases of Computing Calculate Memorize Search Understand 42
Slide 44: Six Phases of Computing
Six Phases of Computing Calculate Memorize Search Understand Infer 43
Slide 45: Six Phases of Computing
Six Phases of Computing Calculate Memorize Search Understand Infer Create 44
Slide 46: Evolution is accelerating
Computing Power of CPU (Number of transistors installed per chip) 10 (bn units) 9.0bn Evolution is 7.5 accelerating 5.3bn 5 2.3bn 2.5 730m 2,250 134k 3.1m Third-party logos included herein are provided for illustrative 0 purposes only. Inclusion of such logos does not imply affiliation with or endor
Slide 47: Arrival of AI era
Arrival of A I era CPU GPU DPU GPU: NVIDIA RTX A6000 Third-party logos included herein are provided for illustrative purposes only. Inclusion of such logos does not imply affiliation with or endorsement by such firms or businesses. There is no guarantee that SoftBank will work with any of the firms
Slide 48: GPU Performance: 9x in 4 years
GPU Performance (throughput for top HPC apps) (Assuming 2016’s throughput as 1) 9x 9x in 4 years 4x 3x 2x 1x Third-party logos included herein are provided for illustrative purposes only. Inclusion of such logos does not imply affiliation with or endorsement by such firms or businesses. There is no
Slide 49: Efficiency of Learning Algorithm: 8x in a year
Efficiency of Learning Algorithm (A I model learning speed) (Assuming 2018’s algorithmic performance as 1) 8x 8x in a year 1x Jan. 2018 Feb. 2019 (Source) ARK Investment Management LLC, Stanford DAWN Deep Benchmark 48
Slide 50: Cost of Inference
Cost of Inference (cost to classify one billion images) USD 10,000 1/330,000 in 2 years USD 0.03 2017 2019 (CY) (Source) ARK Investment Management LLC, Stanford DAWN Deep Benchmark 49
Slide 51: Training Time
Training Time (time required for A I to learn neural network ResNet-50) 1/900 25 days in 5 years 40 min Third-party logos included herein are provided for illustrative purposes only. Inclusion of such logos does not imply affiliation with or endorsement by such firms or businesses. There is no guara
Slide 52: Understand Infer Create
Understand Infer Create Reading comprehension Drug discovery simulation Programming Score Prediction speed Machine learning model (compared to avg. human) (compared to conventional method) code +24% 1,000x Generated by AI (Source) NVIDIA (NVIDIA Megatron BERT) (Source) NVIDIA (Caltech OrbNet) (Sourc
Slide 53: SoftBank Vision Fund (96 companies)
SoftBank Vision Fund (96 companies) SoftBank Vision Fund 1 SoftBank Vision Fund 2 (83 companies) (13 companies) (Zuoyebang) (Beike) (Full Truck Alliance) + JVs / affiliates etc. (PingAn Good Doctor) (13 companies) The investments presented herein are solely for illustrative purposes, have been selec
Slide 54: AI × Delivery Vehicle
SVF1 Investment AI × Delivery Vehicle Third-party logos included herein are provided for illustrative purposes only. Inclusion of such logos does not imply affiliation with or endorsement by such firms or businesses. There is no guarantee that SoftBank will work with any of the firms or businesses w
Slide 55: Understand Infer
SVF1 Investment Understand Infer Recognize Infer risk of road signs and obstacles traffic accident The investment herein is presented solely for illustrative purposes, has been selected to provide an example of the types of investments made by SBIA. References to it should not be construed as a reco
Slide 56: Building strategic partnerships with the world's leading companies
Building strategic partnerships SVF1 Investment with the world’s leading companies across all key verticals There can be no assurances that any plans described herein will be realized on the terms expressed herein or at all, and all such plans are subject to uncertainties and risks. Third-party logo
Slide 57: AI × Autonomous Driving
SVF1 Investment AI × Autonomous Driving 56
Slide 58: AI × Logistics
SVF1 Investment (Full Truck Alliance) AI × Logistics 57
Slide 59: SVF1 Investment: Full Truck Alliance
SVF1 Investment Market Share (China) (Full Truck Alliance) No.1 Total heavy-duty truckers Competitors freight-truck matching platform in China >90% *1 >4.4mn *2 (Monthly Active Truckers) Past performance is not indicative of future results.There can be no assurances that historical trends will conti
Slide 60: Cluster of Leading Companies Strategy in Mobility Industry
Aim to create Cluster of Leading Companies Strategy in Mobility Industry (transportation / logistics) SBG * (SVF1 and SVF2) * SBG stands for the SoftBank Group, which does not invest in the above portfolio companies. Please refer to www.visionfund.com/portfolio for a more complete list of SVF1 and S
Slide 61: Cluster of Leading Companies Strategy in Mobility Industry
Aim to create Cluster of Leading Companies Strategy in Mobility Industry (transportation / logistics) SBG (SVF1 and SVF2) * SBG stands for the SoftBank Group, which does not invest in the above portfolio companies. Please refer to www.visionfund.com/portfolio for a more complete list of SVF1 and SVF
Slide 62: Cluster of Leading Companies Strategy in Mobility Industry
Aim to create Cluster of Leading Companies Strategy in Mobility Industry (transportation / logistics) SBG (SVF1 and SVF2) *1 Alto is the investment from SVF2 *2 SBG stands for the SoftBank Group, which does not invest in the above portfolio companies. Please refer to www.visionfund.com/portfolio for
Slide 63: GDP of Mobility Industry
GDP of Mobility Industry (transportation / logistics) 11% 62
Slide 64: AI × Housing Transactions and Services
SVF2 Investment AI × Housing Transactions and Services 63
Slide 65: Understand Infer
SVF2 Investment Understand Infer Analyze housing information Predict contract Understand Recommend the best house customer preferences The investment herein is presented solely for illustrative purposes, has been selected to provide an example of the types of investments made by SBIA. References to
Slide 66: Beike's scale and efficient housing transaction
SVF2 Investment Efficient Housing Transaction Beike’s scale *1 Contract prediction Price prediction 226m *2 Home 39m AI *3 MAU Intelligent Smart house agent assistant recommendation 456k *4 Agents 2.2m # of *5 Transactions (2019) AI-powered housing transactions and services *6 (GTV USD 300bn) *1 Bei
Slide 67: Investment Result on Beike
SVF2 Investment Investment Result on Beike (as of Nov. 6, 2020) IPO on Aug. 13 USD 7,908m China’s No.1 platform for housing transactions and services * 5.9x USD 1,350m *China’s No.1 platform for housing transactions and services in terms of Gross Transaction Value, 2019: (Source) China Insights Cons
Slide 68: AI × Digital Therapeutics
SVF2 Investment AI × Digital Therapeutics 67
Slide 69: Understand Infer
SVF2 Investment Understand Infer Deterioration prediction Analyze (heart failure etc.) biosensor / clinical data Optimal dose recommendation The investment herein is presented solely for illustrative purposes, has been selected to provide an example of the types of investments made by SBIA. Referenc
Slide 70: Patient Management
SVF2 Investment Patient Management Biosensor / Clinical data Deterioration prediction AI (heart failure etc.) Optimal dose recommendation AI-powered digital therapeutics platform The investment herein is presented solely for illustrative purposes, has been selected to provide an example of the types
Slide 71: AI analysis based on 4.1m patients' data
SVF2 Investment Database Clinicians Patients generated data Partners (Physiology biomarkers, symptoms, etc.) generated data (Real World Evidence (RWE) , EMR etc. ) (Diagnosis, intervention, dose / medication change etc. ) AI analysis based on 4.1m patients’ data * The investment herein is presented
Slide 72: Heart Failure Prediction and Cardiac Arrhythmia Detection
SVF2 Investment Heart Failure Prediction Cardiac Arrhythmia Detection Sensitivity Specificity (True positive rate) (True negative rate) 91% 95% 98% 86% Cardiologists Cardiologists 14 days in advance Outperforms (99% accuracy) human cardiologists (Source) ClinicalTrials.gov (Identifier : NCT02391987)
Slide 73: Benefits from Leveraging AI
SVF2 Investment Benefits from Leveraging AI Optimal dosage Reduction in Reduction in re-hospitalization cost of care Increase in utilization of all categories of heart failure medication Re-hospitalization Cost of care +21% -70% -38% The investment herein is presented solely for illustrative purpose
Slide 74: Cluster of Leading Companies Strategy in Medical Industry
Aim to create Cluster of Leading Companies Strategy in Medical Industry *1 *2 SBG *1 (SVF1 and SVF2) *1 *1 *1 *1 Alto, XtalPi, Biofourmis, Encoded Therapeutics and Karius are the investments from SVF2 *2 SBG stands for the SoftBank Group, which does not invest in the above portfolio companies. Pleas
Slide 75: GDP of Medical Industry
GDP of Medical Industry 10% 74
Slide 76: AI × Material Innovation
SVF1 Investment AI × Material Innovation 75
Slide 77: Understand Infer / Create
SVF1 Investment Understand Infer / Create Automation enables Innovative many experiments and data material development The investment herein is presented solely for illustrative purposes, has been selected to provide an example of the types of investments made by SBIA. References to it should not be
Slide 78: AI-powered innovative material development
SVF1 Investment Innovative Novel Material Development Experiment automation AI Design of genetically modified microorganisms AI-powered innovative material development The investment herein is presented solely for illustrative purposes, has been selected to provide an example of the types of investm
Slide 79: Product Use Cases
SVF1 Investment Product Use Cases Optical films Natural High-performance films for electronic products for next generation electronics insect repellent Developing innovative materials in a wide range of fields The investment herein is presented solely for illustrative purposes, has been selected to
Slide 80: Low cost and quick development
SVF1 Investment * Material Development Cost Material Development Period USD 300m 10 years 1/10 1/2 5 years USD 30m 0 0 Traditional Traditional Low cost and quick development The investment herein is presented solely for illustrative purposes, has been selected to provide an example of the types of i
Slide 81: Internet Revolution / GDP
Internet Revolution / GDP Advertisement 1% 80
Slide 82: AI Revolution / GDP
AI Revolution / GDP Mobility (transportation / logistics) 11% Medical 10% 81
Slide 83: Status of Investment in Listed Stocks
Status of Investment in Listed Stocks 82
Slide 84: AI Revolution SBG
AI Revolution SBG 83
Slide 85: AI Revolution SBG
AI Revolution Unlisted stocks (Unicorns) SBG 84
Slide 86: AI Revolution SBG
AI Revolution Unlisted stocks (Unicorns) Company Company A Company K B Company Company J C Company I SBG Company D Company Company H E Company Company Listed stocks G F 85
Slide 87: Actual Stocks Held (as of Sep. 30, 2020)
Actual Stocks Held (as of Sep. 30, 2020) Amazon Microsoft Facebook TSMC Zoom Paypal Alphabet Salesforce Netflix NVIDIA Adobe Others (outside of U.S.) • • NVIDIA Corporation shares held by SBG are included in the table above. For details, see Consolidated Financial Report for the six-month period end
Slide 88: Methods for investing in Listed Stocks
Methods for investing in Listed Stocks Actual Derivative stocks (Mainly call option) (Blue chip listed stocks) 87
Slide 89: Status of Investment in Listed Stocks (as of Sep. 30, 2020)
Status of Investment in Listed Stocks (as of Sep. 30, 2020) USD 20.3bn Fair value of USD 3.4bn the option Actual Stocks USD 16.8bn 88 • Fair value of the option: as of Sep. 30, 2020, net of fair value of long call option of listed stocks held by the asset management subsidiary (USD 4,694m) and that
Slide 90: Call Option
Call Option Right to purchase shares in the future at current price Risk is limited to option premium 89
Slide 91: Changes to Management Structure
Changes to Management Structure 90
Slide 92: Changes to SBG Management Structure
Changes to SBG Management Structure Board of Directors Corporate Officers Representative Director Masayoshi Son Corporate Officer, Chairman & CEO Masayoshi Son Board Director Ronald D. Fisher Corporate Officer, Vice Chairman Ronald D. Fisher Corporate Officer, Executive Board Director Yoshimitsu Got
Slide 93: Conclusion
Conclusion 92
Slide 94: NAV: USD +58bn in six months
NAV (Net Asset Value) (USD bn) 258 200 USD +58bn in six months Mar. 31, 2020 Sep. 30, 2020 • Share price: closing price as of Sep. 30, 2020 (Japan) closing price as of Sep. 30, 2020 (U.S.) For details, see “Definition and Calculation Method of SBG’s Sum-of-the-parts Valuation” (as of Sep. 30, 2020)
Slide 95: Investing in evolution
Index Comparison (past 18 years) 157x SBG NAV JPY 27.3t (USD 258bn) Investing in evolution JPY 0.2t (USD 1.3bn) 6.0x NASDAQ composite index 2.7x Dow Jones industrial average 1 2.1x Nikkei 225 Apr. 1, Sep. Jan. Sep. 30, *SBG NAV (JPY 0.2t) as of Apr. 1, 2002: Calculated based on Yahoo Japan's market
Slide 96: Investing in evolution
SBG NAV JPY 27.3t (USD 258bn) Unlisted stocks Investing in evolution Listed stocks Proportion of the equity value of holdings at each time Listed stocks: total of Yahoo Japan, Alibaba, T-Mobile (Sprint), SBKK (after FY18), Arm (FY20 only), SVF1 (listed stocks equivalent), SVF2 (listed stocks equival
Slide 97: Investing in evolution
SBG NAV JPY 27.3t (USD 258bn) AI Investing in evolution Internet Proportion of the equity value of holdings at each time Telco: SBKK + T-Mobile (Sprint) Telco AI: SVF1 + SVF2 + Arm (FY20 only) + investments in listed stocks 2002 '04 '06 '08 '10 '12 '14 '16 ’18 '20 (FY) SBG NAV: closing price as of S
Slide 98: SBG NAV
SBG NAV Proportion of the equity value of holdings at each time Telco: SBKK + T-Mobile (Sprint) AI: SVF1 + SVF2 + Arm (FY20 only) + investments in listed stocks 2002 '04 '06 '08 '10 '12 '14 '16 ’18 '20 (FY) SBG NAV: closing price as of Sep. 30, 2020 (Japan) closing price as of Sep. 30, 2020 (U.S.) 9
Slide 99: Investing in evolution
This presentation is furnished to you for informational purposes regarding our future strategy and is not, and may not be relied on as, any representation or warranty of SBG NAV future performance of SBG.The performance may differ materially from the performance information indicated in this present
Slide 100: Winners in AI are winners in the future
Winners in A I are winners in the future Nov. 9, 2020 99
Slide 101: The company investing in the AI Revolution
The company investing in the A I Revolution 100
Slide 102: Information Revolution, Happiness for everyone
Information Revolution Happiness for everyone 101
Slide 103: SoftBank
SoftBank
Slide 104: Appendix
Appendix
Slide 105: 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 September 30, 2020) 1. NAV Net Asset Value ◦ NAV = Equity value of holdings - Net debt 2. Equity value of holdings *without consideration of asset-backed financing ◦ SBKK: calculated by multiplying the number of SBKK shares
Slide 106: 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. NAV Net Asset Value ◦ NAV = Equity value of holdings - Net debt 2. Equity value of holdings *without consideration of asset-backed financing ◦ SBKK: calculated by multiplying the number of SBKK shares hel
Slide 107: Gain and Loss on Investments (SVF Segment)
Gain and Loss on Investments (SVF Segment on a SBG Consolidated Basis) (USD 10.5bn) (JPY bn) 1,115.0 * (sum of SVF1 and SVF2) 519.8 248.4 320.0 392.0 414.4 Return profit 296.6 -199.7 On Apr. 1, 2020, Sprint ceased to be a subsidiary of the Company following the completion of the merger between Sprin
Slide 108: SVF1 Investment Highlights (SBG Consolidated basis)
SVF1 Investment Highlights (SBG Consolidated basis) * (From SVF1 inception through Sep. 30, 2020) USD 20.6bn USD 7.4bn Investment Realized gain market uplift USD 6.7bn USD -13.2bn + Realized realized gains loss USD -0.7bn Valuation gain Valuation loss USD 13.9bn USD -12.5bn Mark up Mark down (38 inv
Slide 109: SVF1 Listed Portfolio Companies (as of Sep. 30, 2020)
SVF1 Listed Portfolio Companies (as of Sep. 30, 2020) (USD m) (a) (b) (c) = (b) - (a) (d) = (b) / (a) Investment cost Gross return *3 Gross gain/(loss) *4 Company Gross MOIC to SVF1 to SVF1 to SVF1 Guardant Health 308 2,695 +$2,387 8.8x Relay Therapeutics 300 1,188 +$888 4.0x Fully Exited Slack 334
Slide 110: SVF1 Listed Portfolio Companies (as of Nov. 6, 2020)
SVF1 Listed Portfolio Companies (as of Nov. 6, 2020) (USD m) (a) (b) (c) = (b) - (a) (d) = (b) / (a) Investment cost Gross return *2 Gross gain/(loss) *3 Company Gross MOIC to SVF1 to SVF1 to SVF1 Guardant Health 308 2,627 +$2,320 8.5x Uber 7,666 9,971 +$2,305 1.3x Relay Therapeutics 300 1,219 +$919
Slide 111: SVF1 Investment Highlights (1)
SVF1 Investment Highlights (1) (SBG Consolidated basis) * (From SVF1 inception through Sep. 30, 2020) Cumulative gross gain to SVF1 private companies Cumulative gross gain to USD 1.9bn SVF1 listed companies USD 5.5bn Cumulative investment cost to SVF1 listed companies USD 9.9bn Listed company total
Slide 112: SVF1 Investment Highlights (2)
SVF1 Investment Highlights (2) (SBG Consolidated basis) * Cumulative gross gain to SVF1 private companies (From SVF1 inception through Sep. 30, 2020) Cumulative gross gain to USD 1.9bn SVF1 listed companies (From SVF1 inception through Nov. 6, 2020) USD 7.3bn Cumulative investment cost to SVF1 liste
Slide 113: SVF1 Snapshot (as of Sep. 30, 2020)
SVF1 Snapshot (as of Sep. 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 *3 $9.9 $15.4 +$5.5 (B) Private & exited company total $72.8 $74.7 +$1.9 (C)=(A)+(B) SVF 1 total (SBG consolidated basis) *4
Slide 114: SVF2 Investment Highlights
SVF2 Investment Highlights (From SVF2 inception through Sep. 30, 2020) Valuation gain USD 5.1bn USD 5.0bn Valuation loss Investment USD -0.1bn market uplift Mark up Mark down (1 investment) (1 investment) SVF2 highlights are provided solely for illustrative purposes and individual investors' results
Slide 115: SVF2 Listed Portfolio Companies (as of Sep. 30, 2020)
SVF2 Listed Portfolio Companies (as of Sep. 30, 2020) (USD m) (a) (b) (c) = (b) - (a) (d) = (b) / (a) *2 Investment cost Gross return Gross gain/(loss) *3 Company Gross MOIC to SVF2 to SVF2 to SVF2 Beike 1,350 6,408 +$5,058 4.7x *1 (A) Listed company total (Gross) $1,350 $6,408 +$5,058 4.7x (B) SVF2
Slide 116: SVF2 Listed Portfolio Companies (as of Nov. 6, 2020)
SVF2 Listed Portfolio Companies (as of Nov. 6, 2020) (USD m) (a) (b) (c) = (b) - (a) (d) = (b) / (a) *2 Investment cost Gross return Gross gain/(loss) *3 Company Gross MOIC to SVF2 to SVF2 to SVF2 Beike 1,350 7,908 +$6,558 5.9x *1 Listed company total (Gross) $1,350 $7,908 +$6,558 5.9x *3 1. Listed
Slide 117: SVF2 Investment Highlights (1)
SVF2 Investment Highlights (1) (From SVF2 inception through Sep. 30, 2020) Cumulative gross gain to SVF2 listed companies USD 5.1bn Listed company total only includes companies that have become publicly listed after SVF2 made its initial investment in the companies. Aggregate Market Uplift is before
Slide 118: SVF2 Investment Highlights (2)
SVF2 Investment Highlights (2) Cumulative gross gain to SVF2 listed companies USD 6.6bn (From SVF2 inception through Nov. 6, 2020) Listed company total only includes companies that have become publicly listed after SVF2 made its initial investment in the companies. Aggregate Market Uplift is before
Slide 119: SVF2 Snapshot (as of Sep. 30, 2020)
SVF2 Snapshot (as of Sep. 30, 2020) (USD billion) (a) (b) (c) = (b) - (a) *2 *1 Investment cost Gross return Gross gain/(Loss) to SVF2 to SVF2 to SVF2 SVF 2 total $2.6 $7.6 +$5.0 (d) (e) Paid-in capital Total value SBG total (Net) $2.8 $7.7 *3 (Breakdown) Net asset value $6.5 *4 Distributions - *5 P