Slide 1: Earnings Results for the Fiscal Year Ended March 31, 2020
Ver.1.1 Earnings Results for the Fiscal Year Ended March 31, 2020 Investor Briefing May 20, 2020 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 used for translation FY2018 FY2019 Average during quarter Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1 USD 108.71 111.55 112.83 110.46 110.00 107.70 108.98 109.22 1 GBP 147.54 145.84 144.48 143.99 140.88 132.73 139.55 140.20 1 CNY 16.97 16.40 16.31 16.37 16.13 15.37 15.46 15.56 EOQ Jun 30 Sep 30 Dec 31
Slide 4: Index
Index Accounting Finance SoftBank Vision Fund I Update Consolidated Results P 2 Global Companies under the Influence of Important Information P 2 Change in Reportable Segments P 3 COVID-19 P 2 Topics P 4 Sprint/T-Mobile Merger and Impact on SBG Finance Condition P 3 Progress & Highlights P 5 Consoli
Slide 5: Accounting
Accounting
Slide 6: Consolidated Results
Consolidated Results (JPY bn) FY18 FY19 Change YoY Net sales 6,093.5 6,185.1 91.6 1.5% Operating income 2,073.6 -1,364.6 -3,438.2 - Net income (attributable to owners 1,411.2 -961.6 -2,372.8 - of the parent) Accounting 2
Slide 7: Change in Reportable Segments
Change in Reportable Segments • Revised segment classifications after SBKK made Yahoo Japan (currently Z Holdings) a subsidiary. • Renamed to the “SoftBank Vision Fund and Other SBIA-Managed Funds segment.” • Sprint business is classified as discontinued operations and excluded from the reportable s
Slide 8: Sprint/T-Mobile Merger and Impact on Consolidated Earnings
Sprint/T-Mobile Merger and Impact on Consolidated Earnings Completion of the Merger Upon completion of the merger, from Apr 1, 2020 Sprint is no longer a subsidiary of the Company New T-Mobile*1 instead became an equity method associate The Company has an approximately 24%*2 shareholding FY19:
Slide 9: WeWork
WeWork The fair value of WeWork’s entire equity • A significant decline from USD 7.3 bn (as of Dec 31, 2019) to USD 2.9 bn (as of Mar 31, 2020) • The fair value is calculated using the income approach (discounted cash flow method). • The significant decline was due to, in light of the COVID-19 outbr
Slide 10: Investments in WeWork by WeWork Investment Subsidiary - 1
Investments in WeWork by WeWork Investment Subsidiary - 1 As of Mar 31, 2020 (USD mil) Cumula- Gain (loss) Recorded in Carrying Consolidated P/L tive Cumula- Account in Account in Amounts Investment Type Invest- tive Gain Consolidated Consolidated B/S in ment (Loss) P/L Q1 Q2 Q3 Q4 FY19 FY19-End Amo
Slide 11: Investments in WeWork by WeWork Investment Subsidiary - 2
Investments in WeWork by WeWork Investment Subsidiary - 2 Liabilities related to financial guarantee contract and loan commitment As of Mar 31, 2020 (USD mil) Cumula- Gain (loss) Recorded in Carrying tive Cumula- Account in Consolidated P/L Account in Amounts Investment Type Invest- tive Gain Consol
Slide 12: Investments in WeWork by SVF
Investments in WeWork by SVF As of Mar 31, 2020 (USD mil) Cumula- Carrying Gain (loss) Recorded in Cumula- Account in Consolidated P/L tive Invest- Account in Amounts Investee Investment Type tive Gain Consolidated ment Consolidated B/S in FY19- (loss) P/L Q1 Q2 Q3 Q4 FY19 Amount End Common stock 52
Slide 13: Consolidated P/L Summary (IFRSs)
Consolidated P/L Summary (IFRSs) P/L item FY18 FY19 Change (JPY bn) Continuing operations FY18: Recognized gain relating to loss of control over subsidiaries of 176.3 bn as a result of Arm’s Chinese subsidiary becoming a JV. Net sales 6,093.5 6,185.1 91.6 Operating income Operating income from SVF a
Slide 14: Consolidated B/S Summary (IFRSs) - Assets
Consolidated B/S Summary (IFRSs) - 1 B/S As of As of (JPY bn) Main items Change item Mar 2019 Mar 2020 Decrease of 422.6 bn due to a refund of withholding income tax on dividends paid in FY18 from SoftBank 7,758.0 15,636.9 +7,878.9 Group Japan (SBGJ) to SBG Current assets Cash and cash equivalents 3
Slide 15: Consolidated B/S Summary (IFRSs) - Liabilities
Consolidated B/S Summary (IFRSs) - 2 B/S As of As of (JPY bn) Main items Change item Mar 2019 Mar 2020 8,681.7 14,191.1 +5,509.4 Impact of the adoption of IFRS 16 at the beginning of FY19 Interest-bearing debt 3,481.0 3,845.2 +364.2 ・Lase obligations of 892.5 bn previously included in interest-beari
Slide 16: Consolidated B/S Summary (IFRSs) - Equity
Consolidated B/S Summary (IFRSs) - 3 (JPY bn) B/S As of As of Items Change item Mar 2019 Mar 2020 9,009.2 7,372.9 -1,636.3 Common stock 238.8 238.8 － Increased due to a decrease in SBG’s economic interests in Yahoo Capital surplus 1,467.8 1,490.3 22.5 Japan (currently Z Holdings) Other equity instru
Slide 17: Consolidated C/F Summary (IFRSs)
Consolidated C/F Summary (IFRSs) (JPY bn) C/F item FY19 ・A wholly owned subsidiary of the Company acquired preferred stock and 2,423.3 Subtotal of cash flows from operating activities common stock of WeWork totaling USD 2.0 bn in Q1, and paid USD 1.5 bn C/F from related to existing commitment of WeW
Slide 18: Income and Loss Arising from SVF and Other SBIA-Managed Funds
Income and Loss Arising from SVF and Other SBIA-Managed Funds (JPY bn) P/L FY18 FY19 Items Gain and loss on investments at 1,302.8 -1,844.9 SVF and other SBIA-Managed Funds FY18: Gain on sale of Flipkart shares and NVIDIA shares Realized gain and loss on sales of investments 296.5 58.3 FY19: Sale of
Slide 19: Difference in Tax Rate
Difference in Tax Rate FY18 FY19 Reconciliation between statutory tax rate and effective tax rate Amount Amount Rate (%) Rate (%) (JPY bn) (JPY bn) Income before income tax 1,682.7 35.5 Statutory income tax rate 31.5% 529.4 31.5% 11.2 (main factors of difference) - Permanent difference (mainly from
Slide 20: Loss Carryforwards (as of Mar 31, 2020)
Loss Carryforwards (as of Mar 31, 2020) (JPY Bn) Valuation Carrying amounts Income base Tax base allowance in B/S Total of companies 3,116.3 1,007.1 -998.9 8.2 based in Japan Total of companies 292.1 67.2 -46.6 20.6 based outside of Japan Consolidated total 3,408.4 1,074.3 -1,045.5 28.8 Accounting 1
Slide 21: Appendix
Appendix
Slide 22: Breakdown of Goodwill / Intangible Assets
Breakdown of Goodwill / Intangible Assets (JPY bn) Change B/S As of As of Main items Outline item Mar 2019 Mar 2020 Amortization Changes in Others exchange rate 4,321.5 3,998.2 Arm 2,777.5 2,554.1 - -223.4 - Goodwill SBKK 907.5 907.5 - - - Transferred to “Assets classified as held for sale” subseque
Slide 23: Consolidation of Yahoo Japan by SBKK, ZOZO by Z Holdings
Consolidation of Yahoo Japan by SBKK, ZOZO by Z Holdings • On June 27, 2019, Yahoo Japan (currently Z Holdings) issued 1,511 mil. new shares to SBKK through a third-party allotment. • SoftBank Group Japan (SBGJ), a wholly owned subsidiary of SBG, accepted a tender offer of share buyback by Yahoo Jap
Slide 24: Consolidation of ZOZO by Z Holdings
Consolidation of ZOZO by Z Holdings • Z Holdings implemented a tender offer of ZOZO with the aim of strengthening its e-commerce business. • Completed the tender on Nov 13, 2019 and acquired 50.1% of voting rights; ZOZO became a subsidiary of Z Holdings. Increase of assets of SBG B/S by ZOZO consoli
Slide 25: Adoption of new standards: IFRS 16 - Leases
(Reference) Adoption of new standards: IFRS 16 - Leases Initial measurement for Right-of-use Assets (ROU) and Lease Liabilities Lease Liabilities: Measured at the present value of total lease payments over the lease term Right-of-use Assets: Amount of the initial measurement of a lease liability plu
Slide 26: Adoption of new standards: IFRS 16 - Leases
Adoption of new standards: IFRS 16 - Leases Primary change in accounting treatment: Classification of finance and operating leases has been eliminated and “right-of-use assets*1” and “lease liabilities” are recognized on a balance sheet for all leases. -Leases previously classified as operating leas
Slide 27: Adoption of new standards: IFRS 16 - Leases
Adoption of new standards: IFRS 16 - Leases Breakdown of right-of-use assets Opening B/S (Apr 1, 2019) (JPY bn) Class of underlying assets SBKK Sprint Others Total Telecommunications equipment (wireless equipment, 1,079.0 21.9 117.5 1,216.6 switching equipment and other network equipment) Reclassifi
Slide 28: SVF - Gain/Loss on Investments Purchased from SBG in P/L
SVF - Gain/Loss on Investments Purchased from SBG in P/L Investments purchased from SBG other than “Bridge investments” shown below. Examples include investments that were made without the premise of offering to the SVF at the time of acquisition, or, investments that were made with the premise of o
Slide 29: Differences in Financial Results of SoftBank Segment and SBKK
Differences in Figures of Financial Results of SoftBank Segment and SBKK (1) Depreciation and amortization for non-current assets at SBKK (formerly Vodafone K.K.) SBG’s consolidated financial statements SBKK’s consolidated financial statements When Vodafone K.K.’s controlling Depreciation & amortiza
Slide 30: Settlement of Prepaid Forward Contract using Alibaba Shares
Settlement of Prepaid Forward Contract using Alibaba Shares At signing of contract 3 years total At settlement （June 2016） （June 2019） Derivative liabilities USD 6.8 bn Gain relating to settlement of variable prepaid forward contract Amortized Interest expense using Alibaba cost USD 0.3 bn shares Fi
Slide 31: Finance
Finance SBG standalone financial measures are calculated by excluding self-financing entities from consolidated group, unless otherwise stated. Self-financing entities are SBKK, Sprint, Arm, SVF, Brightstar, PayPay, Fortress, SB Energy, etc.
Slide 32: Global Companies under the Disruption of COVID-19
Global Companies under the Disruption of COVID-19 Large financing by global companies (Credit facility and bond issue etc.) Boeing* $25bn BP* $17bn Coca-Cola* $6.5bn Delta Air Lines* $5.6bn Display prevented Toyota ¥1.25tn due to protection rights ANA ¥950bn Bridgestone* ¥300bn Ricoh ¥297bn Japan Ai
Slide 33: SBG Financial Condition: Extremely solid
SBG Financial Condition Equity Value JPY 28.5tn of Holdings*1 LTV*1 14.2% Cash Position*2 JPY 3.0tn Extremely Top 10 cash rich companies in Japan*3 Toyota SBG standalone HONDA 2.7 3.0 (JPY tn) 4.2 solid Rakuten 1.7 SONY 1.5 Seven & i Holdings 1.4 Mitsubishi 1.3 AEON 1.2 NISSAN 1.2 FAST RETAILING 1.2
Slide 34: Strategic Investment Holding Company
Ver1.1 ＝Strategic Investment Holding Company Finance 4
Slide 35: Equity Value of Holdings
Equity Value of Holdings Holds overwhelming amount of assets that did not exist at the past crises (JPY tn) COVID-19 28.5 Dot-com bubble Financial crash crisis SVF arm Others 99/3 00/3 01/3 02/3 03/3 04/3 05/3 06/3 07/3 08/3 09/3 10/3 11/3 12/3 13/3 14/3 15/3 16/3 17/3 18/3 19/3 20/5 *1 Equity value
Slide 36: Comparison with Conditions in 2008 Financial Crisis
Comparison with Conditions in 2008 Financial Crisis Our capability to deal with crises improved significantly *2 *3 SBG CDS*4 Equity Value of Holdings LTV (at its peak in the crisis) JPY 28.5tn 55.6% 2,220bp Listed Shares 14.2% 78% 555bp JPY 4.5tn Listed Shares 33% Mar' 08 May' 20 Mar' 08 May' 20 Ma
Slide 37: Financial Indicators
Financial Indicators Further strengthening the balance sheet The previous quarter The current quarter (Feb 12, 2020) (May 18, 2020) Equity Value JPY 31.1tn JPY 28.5tn of Holdings -JPY 2.6tn LTV 16.1％ 14.2% -1.9pp Cash Position JPY 1.9tn JPY 3.0tn*1 +JPY 1.0tn *1 Cash Position= cash and cash equivale
Slide 38: Response to Current Market Environment
Response to Current Market Environment Transforms our financial management drastically in response to a rapid change of market conditions No change in our financial Growing uncertainty in the policy macro environment Enhance of shareholder returns and improve Increasing investor anxiety fina
Slide 39: JPY 4.5tn Program
JPY 4.5tn Program Large-scale returns to shareholders and creditors by asset monetization Asset sale and monetization up to JPY 4.5tn Preparing for future investment opportunities Returns to Financial New Shareholders Improvement Investments Share repurchase Debt repayment up to JPY 2tn Bond buyback
Slide 40: The Progress of JPY 4.5tn Program
The Progress of JPY 4.5tn Program Monetized assets and made shareholder returns Forward transactions using Alibaba shares (April and May) Collar Contract $8.5bn Floor Contract $1.5bn Forward Contract $1.5bn Total Funding Amount $11.5bn Share repurchase Total Amount of Repurchase JPY 250.6bn Repurcha
Slide 41: Price of Shares Held
Price of Shares Held Outperformed indexes even in COVID-19 crisis Share Price (YTD) 140 130 +30.0% : T-Mobile 120 110 +1.5% : Alibaba 100 ▲2.8% : SBG 90 ▲3.6% : SBKK 80 ▲13.8% : Dow Jones Average 70 ▲14.9% : Nikkei 225 60 50 1/1 1/15 1/29 2/12 2/26 3/11 3/25 4/8 4/22 5/6 * As of May 18, 2020. 100 =
Slide 42: Portfolio Composition
Portfolio Composition Our portfolio consists of high quality assets (JPY tn) 28.5 Market Cap：$578bn Average Trading Value*：$3,652mn High liquidity and credit Ratings : A+/A+ (S&P/Fitch) worthiness 14.7 Listed Shares Market Cap：JPY 6.7tn Stable business model 78％ Average Trading Value：JPY 10.7bn
Slide 43: Merger of Sprint and T-Mobile
Merger of Sprint and T-Mobile Merger completed on Apr 1, 2020; the new company became an equity-method associate 1 of the Big 3 getting closer to Merger strengthens the top 2 telecoms in the U.S. financial stability Number of Subscribers*1 (mil) Credit Ratings Verizon 120 AT&T 112 S&P： B BB Fitch： B
Slide 44: SVF1: Fair Value of Investment Assets
SVF1: Fair Value of Investment Assets (SBG Consolidated basis) ($ bn) ＋7.0％ -7.2％ 79.8 74.6 75.0 69.6 Acquisition cost Fair Value Dec' 19 Mar' 20 88 companies 88 companies *1 The presented acquisition cost and fair value of investment assets excludes exited investments. *2 Past performance is not in
Slide 45: SVF1 Listed Portfolio Companies (as of May 15, 2020)
SVF1 Listed Portfolio Companies (as of May 15, 2020) ($ mil) (a) (b) (c) = (b) - (a) (d) = (b) / (a) Investment cost Gross return*1 Gross gain/(loss) Company Gross MOIC*2 to SVF1 to SVF1 to SVF1 Guardant Health 308 2,615 +$2,307 8.5x Slack 334 1,002 +$668 3.0x Vir Biotechnology 199 686 +$488 3.5x Pi
Slide 46: Summary of FY2019
Summary of FY2019 Drastically transform to financial management optimized suitable for an investment company Major funding ⁃ Issued JPY 1tn of domestic retail bonds and wholesale bonds (Apr and Sep 2019) Financial ⁃ Borrowed JPY 500bn through margin loan using SBKK shares (Feb 2020) Activity Ann
Slide 47: SBG Standalone Interest-bearing Debt
SBG Standalone Interest-bearing Debt Funded in preparation for future bond redemptions (JPY bn) Main variance factors from the end of December 2019 Increase/decrease in bank loan and CP (-JPY156.2bn) 8,281.3 7,969.0 Margin loan backed by SBKK shares (+JPY491.2bn) 7,385.5 7,616.9 Breakdown as of the
Slide 48: SBG Standalone Cash Position
SBG Standalone Cash Position Significant increase mainly due to monetization using Alibaba shares (JPY bn) 2,953.1 Net proceeds expected from asset sale to SVF1 (+$1.1bn) *yet to be settled Monetization using Alibaba shares (+$11.5bn) 2,093.9 1,133.6 Amount of share repurchase (-JPY 234.6bn) 1,642.4
Slide 49: Cash Position
Cash Position Maintain ample cash position which can covers the future bond redemption for 4 years Cash Position Bond Redemption Schedule JPY0.03.0tn*1 (JPY bn) Net proceeds expected from asset sale to SVF1 (+$1.1bn) Monetization using Alibaba shares (+$11.5bn) 1,133.6 Amount of share repurchase (-J
Slide 50: SBG Standalone Net Interest-bearing Debt
SBG Standalone Net Interest-bearing Debt Decreased due to a large increase in cash position Excl. Asset Finance *for Mar’ 20 data only 6,461.8 6,212.4 6,228.0 (JPY bn) Adjustment on Financing 5,522.9 Hybrid Finance: -JPY 25.0bn 5,080.5 Asset-backed finance: -JPY 1,718.3bn 2,877.0 Subsequent Events N
Slide 51: LTV
LTV Excl. Asset Finance 25% 17.2% 16.8% 16.1% 14.5% 14.2% Manages at less than 25% May 9, 2019 Aug 7, 2019 Nov 6, 2019 Feb 12, 2020 May 18, 2020 * See “LTV Calculation: SBG Standalone Equity Value of Holdings” and “LTV Calculation: Adjusted SBG Standalone Net Debt” in Appendix for details. Finance 2
Slide 52: Redemption Schedule
Redemption Schedule Planning various redemption options with refinancing as the main option (JPY bn) 1,305.6 Domestic straight notes Domestic subordinated notes Domestic hybrid notes 455.6 Foreign currency-denominated senior notes 949.5 924.1 Foreign currency-denominated hybrid notes 299.3 424.1 583
Slide 53: Financial Strategy for FY2020
Financial Strategy for FY2020 Flexible financial management adapting to any change Agile financial Firmly keeping management in financial policy response to market conditions Finance 23
Slide 54: Firmly Keeping Financial Policy (1/2)
Firmly Keeping Financial Policy (1/2) 1. Manage LTV at less than 25% during “normal” periods (upper threshold of 35% even during “abnormal” periods) 2. Maintain cash position covering bond redemptions for at least the next 2 years 3. Secure sustainable distribution and dividend income from SVF and o
Slide 55: Firmly Keeping Financial Policy (2/2)
Firmly Keeping Financial Policy (2/2): Our Policy on Supporting Portfolio Companies Portfolio company finances to be No rescue self-financing package Finance 25
Slide 56: Agile Financial Management in Response to the Market
Agile Financial Management in Response to the Market Achieving both shareholder return and financial improvement by implementing the JPY 4.5tn program Appropriately control the balance between new investments and exits (prepare for future investment opportunities) Financial management focused on dia
Slide 57: Direction of Financial Management (illustrative)
Direction of Financial Management (illustrative) Manage finance conservatively under COVID-19; monetizing assets Securing financial stability and preparing for future investment opportunities Value increases in the mid-term Improving LTV Enables balancing elevated leverage with by monetizing assets
Slide 58: Appendix
Appendix
Slide 59: LTV Calculation: Adjusted SBG Standalone Net Debt
LTV Calculation: Adjusted SBG Standalone Net Debt (L) Adjusted SBG Standalone Net Debt JPY 3.58tn (V) SBG Standalone = 14.2% JPY 25.25tn Equity Value of Holdings (JPY tn) = - - Adjusted SBG Consolidated Net Debt at Self- Other Standalone Net Debt Net Debt financing Entities Adjustments 3.58 11.03 4.
Slide 60: LTV Calculation: SBG Standalone Equity Value of Holdings
LTV Calculation: SBG Standalone Equity Value of Holdings (L) Adjusted JPY 3.58tn SBG Standalone Net Debt (V) SBG Standalone = 14.2% Equity Value of Holdings JPY 25.25tn (JPY tn) = + + SBG Standalone Investment Assets Major Shares Others Holdings Under SVF 25.25 21.76 2.61 0.88 Alibaba 14.68 SBKK 4.4
Slide 61: Equity Value of Holdings
Equity Value of Holdings Decreased JPY 1.4tn QoQ, but increased JPY 1.7tn YoY (JPY tn) 29.5 28.0 26.4 26.2 25.7 Composition Ratio 15.9 51％ 14.2 13.4 12.3 12.2 4.5 4.7 4.6 4.4 16％ Alibaba 4.0 SBKK 3.2 3.5 3.1 2.7 10％ SVF (equity value for SBG) 3.1 3.2 12％ Sprint 2.2 2.4 2.3 2.0 Arm 2.7 2.6 2.7 2.7 2.
Slide 62: SVF1: Capital Commitment
SVF1: Capital Commitment Capital Commitment (as of the end of March 2020) ($ bn) 98.6 (78.3) SBG 33.1 (8.0) 65.5 (28.6) (49.7) Third-party Limited partners * Numbers in brackets represent amounts contributed *1 SBG’s committed capital to SVF1 includes approximately $8.2 billion of an obligation sati
Slide 63: SVF1 Listed Portfolio Companies (as of Mar. 31, 2020)
SVF1 Listed Portfolio Companies (as of Mar. 31, 2020) (a) (b) (c) = (b) - (a) (d) = (b) / (a) ($ mil) Investment cost Gross return*1 Gross gain/(loss) Company Gross MOIC*2 to SVF1 to SVF1 to SVF1 Guardant Health 308 1,975 +$1,667 6.4x Slack 334 939 +$605 2.8x Vir Biotechnology 199 775 +$576 3.9x 10x
Slide 64: SVF1 Snapshot (as of Mar. 31, 2020)
SVF1 Snapshot (as of Mar. 31, 2020) ($ bn) (a) (b) (c) = (b) - (a) Investment cost*2 Gross return*1 Gross gain/(Loss) to SVF1 to SVF1 to SVF1 (A) Listed company total $9.6 $11.0 +$1.4 (B) Private & exited company total $71.4 $69.2 -$2.2 (C)=(A)+(B) SVF 1 total (SBG consolidated basis) $81.0 $80.2 -$
Slide 65: SBG Credit Rating Trend
SBG Credit Rating Trend Aim to improve credit rating evaluation under the investment holding company rating criteria Acquisition of Acquisition of Sprint Arm SBKK Japan Telecom Vodafone KK Acquisition Acquisition Listing 14 A/A2 13 12 JCR (A－) A－/A3 Outlook Stable 11 BBB+/Baa1 10 BBB/Baa2 9 8 BB+/Ba
Slide 66: Consolidated Interest-bearing Debt
Consolidated Interest-bearing Debt Interest-bearing debt ＋ (JPY bn) 19,250.0 Lease liabilities 18,088.6 17,329.6 15,685.1 7,969.0 14,272.2 7,616.9 7,385.5 6,722.9 SBG 307.1 283.5 721.3 Others (Arm, etc.) 283.6 8,281.3 127.4 624.3 480.4 SVF 36.6 Variable prepaid forward contract*2 730.6 4,635.9 4,727
Slide 67: Consolidated Cash Position
Consolidated Cash Position (JPY bn) 4,005.9 3,629.1 3,553.2 3,244.6 2,724.2 2,093.9 1,642.4 1,741.0 SBG 1,819.5 1,173.0 Others (Arm, etc.) 322.9 SVF 572.2 416.5 263.2 245.6 SoftBank segment*2 273.8 140.5 118.1 406.9 358.3 Sprint segment*3 645.1 876.9 900.1 197.2 782.4 821.1 524.8 466.5 355.1 Mar' 19
Slide 68: Consolidated Net Interest-bearing Debt
Consolidated Net Interest-bearing Debt Interest-bearing debt (JPY bn) 15,696.8 ＋Lease liabilities – Cash position 14,605.3 14,082.7 12,056.0 6,228.0 6,212.4 11,027.6 5,522.9 SBG 5,080.5 20.4 580.8 Others (Arm, etc.) 9.4 378.7 6,461.8 SVF 730.6 4,451.0 Variable prepaid forward contract*3 3,990.9 3,85
Slide 69: SoftBank Vision Fund I Update
QUARTER ENDED MARCH 31, 2020 SoftBank Vision Fund I Update NAVNEET GOVIL Managing Partner & Chief Financial Officer SoftBank Investment Advisers
Slide 70: 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 71: 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 72: Topics
4 Topics 01- Progress & Highlights 02- Performance & Impact on SoftBank Group 03- In Focus: Built For Resilience
Slide 73: Progress & Highlights
Progress & Highlights Investment Advisers
Slide 74: Key Considerations Across the Portfolio
PROGRESS & HIGHLIGHTS 6 Key Considerations Across the Portfolio COVID-19 Market Portfolio Impact Liquidity Impact Support 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, as
Slide 75: Key Developments
PROGRESS & HIGHLIGHTS 7 Key Developments Twelve-Month Period Ended March 31, 2020 New Investments1 Follow-On Investments1 Public Listings3 Capital Invested1 Distributions2 LTM Investment Loss4 Footnotes: 1. Capital Invested refers to the dollar amount invested in new and pre-existing portfolio compa
Slide 76: Global COVID-19 Impact Across Sectors
PROGRESS & HIGHLIGHTS 8 Global COVID-19 Impact Across Sectors Three-Month Period Ended March 31, 2020 Transportation Real Estate Consumer Fintech Enterprise Health Tech Frontier Tech & Logistics -41% -21% -15% -9% 6% 6% 7% SVF I PORTFOLIO FAIR VALUE Information herein is presented on an aggregated b
Slide 77: Portfolio Composition By Sector
PROGRESS & HIGHLIGHTS 9 Portfolio Composition By Sector As of March 31, 2020 Transportation Real Estate Consumer Fintech Enterprise Health Tech Frontier Tech & Logistics 6% 18% 7% 40% 5% 7% 17% COST $10.1B $11.5B $4.9B $33.1B $2.3B $2.5B $10.9B FAIR VALUE $4.6B $12.8B $4.8B $28.8B $3.4B $4.8B $11.9B
Slide 78: Portfolio Composition By Geography and Sector: Asia and EMEA
PROGRESS & HIGHLIGHTS 10 Portfolio Composition By Geography and Sector As of March 31, 2020 Consumer Transportation Transportation & Logistics & Logistics Consumer Real Estate Enterprise Fintech Real Estate Fintech Asia Health Tech EMEA Frontier Tech 46% 18% Information herein is presented solely fo
Slide 79: Portfolio Composition By Geography and Sector: Americas
PROGRESS & HIGHLIGHTS 11 Portfolio Composition By Geography and Sector As of March 31, 2020 Transportation Frontier Tech Health Tech Enterprise & Logistics Consumer Real Estate Fintech Americas 36% Information herein is presented solely for Vision Fund I and does not include investments in Flipkart
Slide 80: Performance Snapshot
12 SoftBank SoftBank Vision Fund I Group Total Commitment Total Commitment PROGRESS & HIGHLIGHTS $98.6B $28.1B Performance Acquisition Cost1 SBG Paid-In Capital Snapshot $81.3B $24.4B Cumulative Investment Gains1 SBG Total Value3 As of March 31, 2020 $0.6B $22.5B Distributions2 SBG Distributions2 $1
Slide 81: SoftBank Vision Fund I Portfolio Companies
PROGRESS & HIGHLIGHTS 13 SoftBank Vision Fund I Portfolio Companies As of March 31, 2020 PRIVATE Number of Investments1 Current Portfolio Companies2 PUBLIC Exits3 Footnotes: 1. Number of Investments includes investments in portfolio companies made by the Vision Fund I and joint-ventures with existin
Slide 82: Vision Fund I: Measurable Value in Our Portfolio
PROGRESS & HIGHLIGHTS 14 Vision Fund I: Measurable Value in Our Portfolio As of March 31, 2020 Realized Investments Unrealized Investments Gross Realized Gains1 Total Acquisition Cost1 Gross Unrealized Losses1,3 Total Fair Market Value1,3 $4.8B $75.3B -$4.2B $71.1B Number of Portfolio Companies1,2:
Slide 83: 8 Public Listings Since Inception
PROGRESS & HIGHLIGHTS 15 8 Public Listings Since Inception As of March 31, 2020 NASDAQ: GH HKG: 1833 NYSE: WORK NASDAQ: TXG STOCK PRICE1 $69.60 $72.30 HKD $26.84 $62.32 GROSS 6.4x 1.4x 2.8x 7.7x MOIC2 NYSE: UBER NASDAQ: VIR HKG: 6060 NYSE: OCFT STOCK PRICE1 $27.92 $34.27 $25.60 HKD $10.15 GROSS 0.8x
Slide 84: Deleveraging and Managing Risk in Volatile Markets
16 1 $3.5B PROGRESS & HIGHLIGHTS 1 $2.3B Deleveraging and Managing Risk in Volatile Markets Portfolio Financing Dec 31, 2019 Mar 31, 2020 Footnotes: 1. Represents the total outstanding balance of loans drawn under the Portfolio Financing Facility as of each measurement date. The information herein i
Slide 85: Increasing Liquidity in Volatile Markets
PROGRESS & HIGHLIGHTS 17 Increasing Liquidity in Volatile Markets Subscription Credit Facility Upsized by $300M in March 2020 Increase in Maturity: Facility Size: February 2023 $3.4B Broad Support of Banking Partners: $3.1B $3.1B1 $3.1B1 Utilized Utilized Dec 31, 2019 Mar 31, 2020 Footnotes: 1. Repr
Slide 86: Performance & Impact on SoftBank Group
18 Performance & Impact on SoftBank Group
Slide 87: Contribution to SBG: Twelve-Month Period
19 Twelve-Month 2019 2020 Period Ended March 31 March 31 Fund Net Profit (Loss)2 $8.67 $(14.81) PERFORMANCE & IMPACT ON SBG Less: Change in 3rd Party Contribution to Interests in Fund (4.89) 7.74 SBG, Net of 3rd SBG LP Income (Loss): 3.78 (7.07) Share of Fund Net Profit (Loss) Party Interests1 Amoun
Slide 88: Contribution to SBG: Fund Inception to March 2020
20 Fund 2020 Inception to March 31 Fund Net Loss2 $(4.01) PERFORMANCE & IMPACT ON SBG Less: Change in 3rd Party Contribution to Interests in Fund 2.11 SBG, Net of 3rd SBG LP Loss: (1.90) Share of Fund Net Loss Party Interests1 Amounts in USD billions SBG GP Income: Management Fees & Performance Fees
Slide 89: Contribution to SBG, Realized and Unrealized Values
21 Paid-In Capital PERFORMANCE & IMPACT ON SBG Contribution to SBG, Realized and Total Value Unrealized Values Net Asset Value1 (Unrealized Value): As of March 31, 2020 Distributions2 (Realized Value): Footnotes: 1. Net Asset Value includes net changes in fair value of financial assets at fair value
Slide 90: In Focus: Built For Resilience
22 In Focus: Built For Resilience
Slide 91: SoftBank Vision Fund: Built for Resilience
23 Long-Term Investor Through Multiple Economic Cycles BUILT FOR RESILIENCE Our Ecosystem is Founders Focused on SoftBank Vision Mobilizing to Deliver Value to Society Path to Profitability Fund: Built for SoftBank Resilience Providing Operational Vision Fund Our Portfolio Companies Support & Strate
Slide 92: Long-Term Investor Through Multiple Economic Cycles
BUILT FOR RESILIENCE 24 Long-Term Investor Through Multiple Economic Cycles Illustrative Representation Steady Growth Deceleration Remaining Life (≥ 10 Years) COVID-19 2017 2020 2029 2030 2031 SVF I Launch Today 12-Yr Fund +1 Yr. +1 Yr. Life Extension Extension SVF is a 12-year fund with two Tech an
Slide 93: Founders Focused on Path to Profitability
BUILT FOR RESILIENCE 25 Founders Focused on Path to Profitability Increased Increased Focus Increased Focus on on Path to Focus on 18+ Months Unit Economics Profitability Governance Cash Runway COVID-19 2019 2020 // Summer September November December March The information herein is provided solely f
Slide 94: Our Portfolio Companies Have Strong Liquidity & Low Leverage
26 Private Investments1 Equity/Debt Ratio2 Equity Value4 BUILT FOR RESILIENCE as of Mar 31, 2020 $336.9B Our Portfolio Companies Have Cash Strong Liquidity & Balance5 $50.0B as of Dec 31, 2019 Low Leverage Cash/Debt Ratio 3 Debt Balance5 as of Dec 31, 2019 $10.4B Footnotes: 1. Information herein is
Slide 95: Significant Dry Powder to Invest
27 SoftBank Vision Fund I Net Portfolio Value1 BUILT FOR RESILIENCE Net Portfolio Value OVER TOTAL DEBT as of Mar 31, 2020 $70.0B Significant Dry Powder Liquid Assets to Invest Liquid Assets and Dry Powder2 as of Mar 31, 2020 $25.0B & Dry Powder OVER TOTAL DEBT Total Debt3 as of Mar 31, 2020 $5.4B F
Slide 96: Providing Support to our Portfolio Companies
28 BUILT FOR RESILIENCE 01 – 02 – Providing Support Operational Strategic to our Portfolio Support Guidance Companies Addressing liquidity Navigating government programs Cost management Financing solutions There can be no assurances that any plans described herein will be realized on the terms expre
Slide 97: Our Ecosystem is Mobilizing to Deliver Value to Society
29 BUILT FOR RESILIENCE Our Ecosystem is Mobilizing to Deliver Value to Society The information presented herein is provided for illustrative and informational purposes only and should not be relied upon in any way. The information provided herein is subject to change as well as uncertainties and ri
Slide 98: Wrap-Up
30 Wrap-Up 01- Progress & Highlights 02- Performance & Impact on SoftBank Group 03- In Focus: Built For Resilience
Slide 99: Thank You
Thank You == OoftBank Investment Advisers
Slide 100: SoftBank
SoftBank