Softbank Group Corp. · TSE:9984
Softbank — Q1 FY2019 Earnings Presentation
37 slides from Softbank's earnings presentation, Aug 9, 2019
Slide 1: SoftBank Vision Fund & Delta Fund Update
V1.1 1 SoftBank Vision Fund Vision Fund SoftBank & Delta Fund Update & Delta Fund Update Navneet Govil Managing Partner & Chief Financial Officer, SoftBank Investment Advisers August 9, 2019
Slide 2: Important Information (1 of 2)
Important Information (1 of 2) 2 This presentation (this “Presentation”) is furnished to you on a confidential basis for informational due diligence purposes and is not, and may not be relied on in any manner as, legal, tax, investment, accounting or other advice or as an offer to sell or a solicita
Slide 3: Important Information (2 of 2)
Important Information (2 of 2) 3 Vision Fund performance is based in part on valuations of certain investments that were recently acquired by the Vision Fund as a portfolio from SoftBank Group Corp; accordingly, the performance information herein, which is based in part on valuations of unrealized i
Slide 4: Topics
4 Topics 1. Progress & Highlights 2. Performance & Impact on SoftBank Group 3. In Focus: Growth through Ecosystem Synergies & Geographic Expansion Confidential
Slide 5: Progress & Highlights
Progress & Highlights SoftBank Vision Fund
Slide 6: Launch of SoftBank Vision Fund 2
Launch of SoftBank Vision Fund 2 6 Shared Vision, Amplified Ambition – Announced on July 26, 2019 Expected Fund Size Expected Limited Partners $108B+ 12+ Existing and new Continued Diversified assets $108B acceleration of across sectors AI revolution Industry disruptors Market-leading, Based on MOUs
Slide 7: Highlights of SoftBank Vision Fund
Highlights of SoftBank Vision Fund1 7 Three-month Period Ended June 30, 2019 New & Additional Investment Acquisition Cost Investments2 Gains3 31 $7.2B $4B $45.00 $46.38 Public Offerings UBER (NYSE) Initial Jun 28, 2019 85% Offering Price (Invested + Legally Binding) $26.00 $37.50 (Total Commitments
Slide 8: SoftBank Vision Fund & Delta Fund: Snapshot
SoftBank Vision Fund & Delta Fund: Snapshot 8 As of June 30, 2019 Cumulative Acquisition Cost1 Investment Gains1 Distributions2 SVF & Delta $103B $71.4B +$20.2B $6.4B SBG Paid-In Capital SBG Total Value3 SBG Distributions2 $32.5B $20.5B $30.1B $1.6B SBG Footnotes: 1. Including investments in Flipkar
Slide 9: Growth of Our Portfolio
Growth of Our Portfolio 9 Number of Investments1,2 83 Cumulative $20.2B Investment Gains1 Number of Investments1,2 Cumulative 33 Acquisition Cost1,2 $71.4B Investment Gains1 $5.2B Acquisition Cost1,2 $30.9B Jun 30, 2018 Jun 30, 2019 Footnotes: 1. Acquisition Cost, Number of Investments, and Cumulati
Slide 10: Growing Portfolio of Market Leaders
Growing Portfolio of Market Leaders 10 As of June 30, 2019 Investments included herein were held by the Vision Fund as of June 30, 2019. The investments presented herein are solely for illustrative purposes, have been selected in order to demonstrate examples of Fund investments, and do not purport
Slide 11: Portfolio Composition By Sector
Portfolio Composition By Sector 11 As of June 30, 2019 40% 12% Cost $28.3B Cost $8.0B Information herein is presented on an Fair Value $33.0B Fair Value $9.9B aggregated basis across the Vision Fund and Delta Fund and does not include Flipkart and Nvidia which were exited in August 2018 and January
Slide 12: Portfolio Composition By Geography
Portfolio Composition By Geography 12 As of June 30, 2019 Health Tech Real Estate Transportation & Logistics Fintech Frontier Tech Enterprise AMERICAS 45% Consumer Information herein is presented on an aggregated basis across the Vision Fund and Delta Fund and does not include Flipkart and Nvidia wh
Slide 13: Portfolio Composition By Geography
Portfolio Composition By Geography 13 As of June 30, 2019 Consumer Real Estate Frontier Tech Transportation & Logistics Fintech EMEA 13% Health Tech Consumer Fintech Transportation & Logistics ASIA 42% Enterprise Real Estate Information herein is presented on an aggregated basis across the Vision Fu
Slide 14: Public Offerings & Exits in the First Two Years
5 Public Offerings & 2 Exits in the First Two Years 14 Since Inception to June 30, 2019 OFFERINGS Expected PUBLIC Upcoming IPOs2 Sep 2017 May 2018 Oct 2018 May 2019 June 2019 Aug 2018 Jan 2019 Recent Public Offerings EXITS Uber, Slack Gross MOIC1: 1.5X Investment Cost: $8.0B Fair Value1: $11.7B Gros
Slide 15: Public Portfolio Increases in Value
Public Portfolio Increases in Value 15 As more investments became publicly listed 2.6x Public Investments Value1 $71.3B Private Investments1 $29.0B +$11.6B Public $18.8B Investments1 $7.2B June 30, 2018 June 30, 2019 Footnotes: 1. Public and Private Investments’ values include Fair Market Value of u
Slide 16: SoftBank Vision Fund - Portfolio Financing Facility
SoftBank Vision Fund - Portfolio Financing Facility1 16 Potential to Enhance Performance & Accelerate Distributions $4.1B Maximum Facility Size Mandated Mandated Mandated Mandated Lead Arranger Lead Arranger Lead Arranger Lead Arranger 3 Years Tenor Lead Arranger Lead Arranger Lead Arranger 33% Init
Slide 17: SoftBank Vision Fund – Expected End of Investment Period
SoftBank Vision Fund – Expected End of Investment Period 17 Effects on SoftBank Group as Limited Partner and Manager 85% (Invested + Legally Binding) (Total Commitments) $0 Total Commitments Investment Period Expected to End1 Limited Partners Capital Calls Unpaid Manager Distributions No New Investm
Slide 18: Performance & Impact on SoftBank Group
18 Performance & Impact on SoftBank Group
Slide 19: Contribution to SBG, Net of 3rd Party Interests
Contribution to SBG, Net of 3rd Party Interests 19 Amounts in USD Billions Three-month Period Three-month Period ended ended June 30, 2018 June 30, 2019 SVF & Delta SVF & Delta Fund Net Profit1 $0.94 $2.71 Less: Change in 3rd Party Interests in Funds -0.84 -1.35 SBG LP Income: Share of Fund Net Prof
Slide 20: Contribution to SBG, Net of 3rd Party Interests
Contribution to SBG, Net of 3rd Party Interests 20 Amounts in USD Billions Period from Fund Inception to June 30, 2019 SVF & Delta Fund Net Profit1 $13.37 Less: Change in 3rd Party Interests in Funds -6.96 SBG LP Income: Share of Fund Net Profit $6.41 SBG Manager Income: Management & Performance Fee
Slide 21: Contribution to SBG, Realized and Unrealized Values
Contribution to SBG, Realized and Unrealized Values 21 As of June 30, 2019 $30.1B $1.6B LP Distributions – Realized Value $3.2B Manager Undistributed & Accrued Performance Fee3 $25.3B $20.5B LP NAV1 – Unrealized Value Paid-In Total Value 2 Capital Footnotes: 1. Net Asset Value includes net changes i
Slide 22: In Focus: Growth through Ecosystem Synergies & Geographic Expansion
22 In Focus: Growth through Ecosystem Synergies & Geographic Expansion
Slide 23: Creating Significant Value via Capital & Growth
Creating Significant Value via Capital & Growth 23 Capital and SoftBank ecosystem help portfolio companies unleash their full potential Capital • World’s Largest Private Investment Fund • Freedom-level capital Capital Ecosystem Synergies • Growth • Value creation and synergies Value • Partnerships G
Slide 24: Ecosystem Synergy Case Study: Uber and Fair Create Mutual Benefits
Ecosystem Synergy Case Study: 24 Uber and Fair Create Mutual Benefits 75,000 Rideshare companies need new Cars with Uber expected drivers with cars to address by December 20191 growing demand Alternative Car Ownership Platform enables used car leases & flexible terms Footnotes: 1. Source: Fair. Ther
Slide 25: Ecosystem Synergy Case Study: Uber, Fair, Getaround, REEF, DoorDash
Ecosystem Synergy Case Study: Uber, Fair, Getaround, 25 REEF Technology1, & DoorDash Go Further with Synergies Urban Mobility Hubs Cloud Kitchens • Flexible car rentals, • Expand service to e-bikes, and scooters delivery for cloud kitchens • UberX staging areas 19% 93% • Provide data for scaling • E
Slide 26: Geographic Expansion Case Study: OYO
Geographic Expansion Case Study: 26 OYO Expands Network of Budget Hotels to New Regions China Japan - 2019 USA - 2019 Mexico - 2019 KSA - 2019 India Brazil - 2019 15 countries Footnotes: 17,000+ properties Source: OYO. Data is accurate as of June 30, 2019. There can be no assurances that any forward
Slide 27: Case Study: Katerra
Case Study: Katerra 27 Smarter Building. Better Communities. For Everyone. USA - 2019 End-to-end multi-family building projects Next generation factories KSA - 2019 Nearly $2B in orders Vision 2030 Signed 10-Year MOU: 500K units ($60B value) Faster construction Assembled a single family home in 48 h
Slide 28: Other Geographic Expansion Activities
Other Geographic Expansion Activities 28 Portfolio Company Expansion Region Portfolio Company Expansion Region South East Asia South East Asia South East Asia South East Asia Europe, LATAM, South East Asia, Middle East South East Asia Asia Pacific South East Asia Footnotes: The above information inc
Slide 29: Wrap-Up
29 Wrap-Up 1. Progress & Highlights 2. Performance & Impact on SoftBank Group 3. In Focus: Growth through Ecosystem Synergies & Geographic Expansion Confidential
Slide 30: Thank You
SoftBank Vision Fund Thank You 30
Slide 31: Appendix
SoftBank Vision Fund Appendix 31
Slide 32: SoftBank Vision Fund: Snapshot
SoftBank Vision Fund: Snapshot 32 As of June 30, 2019 Cumulative Acquisition Cost1 Investment Gains1 Distributions2 $97B $71.4B +$20.2B $6.3B SVF SBG Paid-In Capital SBG Total Value3 SBG Distributions2 $28.1B $16.7B $26.5B $1.6B SBG Footnotes: 1. Including investments in Flipkart and Nvidia which we
Slide 33: Delta Fund: Snapshot
Delta Fund: Snapshot 33 As of June 30, 2019 Cumulative Acquisition Cost1 Investment Gains1 Distributions2 $6B Delta $5.0B +$0.0B $0.1B SBG Paid-In Capital SBG Total Value3 SBG Distributions2 $4.4B $3.8B $3.6B $0.0B SBG Footnotes: 1. Including solely the investment in DiDi which was transferred to th
Slide 34: Contribution to SBG, Net of 3rd Party Interests
Contribution to SBG, Net of 3rd Party Interests 34 Amounts in USD Billions Three-month Period Three-month Period ended ended June 30, 2018 June 30, 2019 SVF Delta Total SVF Delta Total Fund Net Profit1 $ 0.95 -$ 0.01 $ 0.94 $ 2.73 -$ 0.02 $ 2.71 Less: Change in 3rd Party Interests in Funds -0.85 0.0
Slide 35: Contribution to SBG, Net of 3rd Party Interests
Contribution to SBG, Net of 3rd Party Interests 35 Amounts in USD Billions Period from Fund Inception to June 30, 2019 SVF Delta Total Fund Net Profit1 $13.53 -$ 0.16 $13.37 Less: Change in 3rd Party Interests in Funds -6.97 0.01 -6.96 SBG LP Income: Share of Fund Net Profit $ 6.56 -$ 0.15 $ 6.41 SB
Slide 36: SoftBank Vision Fund: Contribution to SBG, Realized and Unrealized Values
SoftBank Vision Fund: Contribution to SBG, Realized and 36 Unrealized Values As of June 30, 2019 $26.5B $1.6B LP Distributions – Realized Value Manager Undistributed & Accrued $3.2B Performance Fee3 $21.7B LP NAV1 – Unrealized Value $16.7B Paid-In Total Value 2 Capital Footnotes: 1. Net Asset Value
Slide 37: Delta Fund: Contribution to SBG, Realized and Unrealized Values
Delta Fund: Contribution to SBG, Realized and 37 Unrealized Values As of June 30, 2019 $3.8B $3.6B LP NAV1 – Unrealized Value Paid-In Total Value 2 Capital Footnotes: 1. Net Asset Value includes net changes in fair value of financial assets at fair value through profit or loss (FVTPL) and investment