Slide 1: Earnings Results for the Fiscal Year Ended March 31, 2019
v.2.1 Earnings Results for the Fiscal Year Ended March 31, 2019 Investor Briefing May 10, 2019 SoftBank Group Corp.
Slide 2: Disclaimer
DISCLAIMER This material was prepared based on information available and views held at the time it was made. Statements in this material that are not historical facts, including, without limitation, plans, forecasts and strategies are “forward-looking statements”. Forward-looking statements are by t
Slide 3: Accounting policy and exchange rates
Accounting policy SoftBank Group Corp. adopted the International Financial Reporting Standards (IFRSs) in fiscal 2013. Figures for fiscal 2012 have also been presented in accordance with IFRSs. Trademarks and registered trademarks, etc. The names of other companies, other logos, product names, servi
Slide 4: Index
Index Accounting P 5 Finance P 65 Consolidated Results P 6 SBG = Strategic Investment Holding Company P 66 Consolidated P/L Summary (IFRSs) P 7 FY2019 Finance Strategy P 67 Consolidated B/S Summary (IFRSs) P 8 Shift to SBG Standalone Based Financial Valuation P 68 Consolidated C/F Summary (IFRSs) P
Slide 5: Accounting
Accounting 5
Slide 6: Consolidated Results
Consolidated Results (JPY bn) FY17 FY18 Change YoY Net sales 9,158.8 9,602.2 +443.4 +4.8% Operating income 1,303.8 2,353.9 +1,050.1 +80.5% Net income (attributable to owners 1,039.0 1,411.2 +372.2 +35.8% of the parent) 6
Slide 7: Consolidated P/L Summary (IFRSs)
Consolidated P/L Summary (IFRSs) (JPY bn) P/L item FY17 FY18 Change Operating income from SoftBank Vison Fund and Delta Fund: 1,256.6 bn (+953.6 bn yoy) (See page 12) Net sales 9,158.8 9,602.2 443.4 ・Unrealized gain on valuation of continuing investments: 1,378.6 bn Operating income (Uber, Guardant
Slide 8: Consolidated B/S Summary (IFRSs) - Assets
Consolidated B/S Summary (IFRSs) - 1 (JPY bn) B/S As of As of Main items Change Recording of expected withholding tax refund on item Mar 2018 Mar 2019 dividends from Softbank Group Japan (to be refunded 6,874.9 7,758.0 +883.1 in July 2019 ) Current assets Cash and cash equivalents 3,334.7 3,858.5 +5
Slide 9: 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 2018 Mar 2019 6,728.8 8,681.7 1,952.9 Borrowings using NVIDIA shares through collar Short-term borrowings 957.6 499.2 -458.4 transactions: -360.5bn Current portion of long-term borrowings 1,093.7 718.0 -375.7 Cu
Slide 10: Consolidated B/S Summary (IFRSs) - Equity
Consolidated B/S Summary (IFRSs) - 3 (JPY bn) B/S As of As of Items Change item Mar 2018 Mar 2019 6,273.0 9,009.2 +2,736.2 Common stock 238.8 238.8 - 1 1 Increase of 1.2 tn on the disposal of SoftBank Capital surplus 256.8 1,467.8 +1,211.0 shares as changes in controlling interests of a subsidiary O
Slide 11: Consolidated C/F Summary (IFRSs)
Consolidated C/F Summary (IFRSs) C/F item FY18 Main breakdown (JPY bn) Cash flows 2,061.6 Subtotal of cash flows from operating activities ・Investment in affiliates of WeWork: -USD 1.5 bn from ・Investments initially acquired by SBG during the fiscal 1,171.9 -608.1 Interest paid year and sold to SVF:
Slide 12: Income and Loss Arising from SoftBank Vision Fund and Delta Fund Included in P/L
Income and Loss Arising from SoftBank Vision Fund and Delta Fund Included in P/L Income and loss arising from SoftBank Vision Fund and Delta Fund included in income before income tax in P/L are calculated by aggregating income and loss arising from SoftBank Vision Fund and Delta Fund, income and los
Slide 13: Difference in Tax Rate
Difference in Tax Rate FY17 FY18 Reconciliation Between Statutory Tax Rate and Effective Tax Rate Amount Amount Rate (%) Rate (%) (JPY bn) (JPY bn) Income before income tax 384.6 1,691.3 Statutory income tax rate 31.7% 121.9 31.5% 532.1 (main factors of difference) - Impact from U.S. tax reform -211
Slide 14: Accounting Treatment for SoftBank IPO and After-tax Cash Proceeds
Accounting Treatment for SoftBank IPO and After-tax Cash Proceeds Disposal : 33.50% SoftBank Corp. remains a subsidiary of the Company after the listing (ownership ratio: 66.49%) (JPY bn) 5 Tax payables (estimate) 345.2 4 6 Taxes Recognized through P/L 1 345.2 (positive impact on net income) - Use o
Slide 15: Impairment Losses Relating to Sprint
Impairment Losses Relating to Sprint SBG does not recognize impairment losses related to Sprint as the recoverable amount of Sprint was higher than its carrying amount on SBG consolidated basis. Comparison: Sprint’s net asset value to its fair value / carrying amount of Sprint on consolidated basis
Slide 16: Derivative Gain and Loss Relating to Variable Prepaid Forward Contract for Alibaba Shares
Derivative Gain and Loss Relating to Variable Prepaid Forward Contract for Alibaba Shares (to be settled by Alibaba shares) Alibaba share price $184 Total gain to be $173 $182 $165 recorded at time of settlement in June 2019 $108 (+USD 11.3 bn) $77 Cumulative increase +USD 11.3 bn USD USD Gain on sa
Slide 17: Adoption of IFRS 16 - Leases
Adoption of IFRS 16 - Leases (FY19~) Primary changes in accounting treatment: ・Previous operating leases are reported on balance sheet, same as finance leases under IFRS 16 ・Intangible assets leases are excluded for adoption of IFRS 16 Accounting change to operating leases: <B/S> <P/L> Previous: N/A
Slide 18: Bridge from SBG and SVF/Delta Fund Disclosures
Bridge from SBG and SVF/Delta Fund Disclosures Reconciliation between SBG and SoftBank Vision Fund & Delta Fund: Snapshot (p.34) (USD bn) Total Commitments Acquisition Cost Investment Gains SBG disclosure 103 60.1 13.3（Only FY18 ） SVF & Delta Investment gains from SVF in the Sold investments +5.3 +3
Slide 19: Bridge from Income Before Income Tax Arising from the SVF/Delta Fund to SVF's Contribution
Bridge from Income Before Income Tax Arising from the SVF/Delta Fund to SVF’s Contribution to SBG, Net of 3rd Party Interests Income before income tax arising from the SoftBank Vision Fund 814.6 JPY bn SBG Consol and Delta Fund (net of 3rd Party Interests) 7.33 USD bn Taxes on investment gains paid/
Slide 20: Appendix
Appendix 20
Slide 21: Differences in Figures of Financial Results of the Company's SoftBank Segment and SoftBank
Differences in Figures of Financial Results of the Company’s SoftBank Segment and SoftBank ①Application of new standards ②Brand royalty payment Paid to SBG by SoftBank for use of SoftBank Application of IFRS 9 and 15 brand FY17 FY18 FY17 FY18 The Company’s The Company’s Not recorded Previous standar
Slide 22: SoftBank Vision Fund - Gain/Loss on Investments Transferred from the Company in P/L
SoftBank Vision Fund - Gain/Loss on Investments Transferred from the Company in P/L (Bridge Investments and Other Investments) Bridge Investments that were acquired by the Company on the premise of offering to SoftBank Vision Fund and that were in accordance with the investment eligibility criteria
Slide 23: Other Investments: Uber
SoftBank Vision Fund - Gain/Loss on Investments Transferred from the Company in P/L (Other Investments: Uber) Uber Fair value held FY18 Q2 at the Company Valuation Gain/loss from financial Acquisition cost gain at the instruments at FVTPL for the Company (Non-operating income) Company The The Compan
Slide 24: Adoption of IFRS 9 and IFRS 15 -1
Adoption of IFRS 9 and IFRS 15 -1 IFRS 9 (Financial Instruments) IFRS 15 (Revenue from Contracts with Customers) Primary changes in accounting treatment: Primary changes in accounting treatment: Recognition of changes in fair values of investment securities (1) Customer acquisition costs (SB/Sprint)
Slide 25: Adoption of IFRS 9 and IFRS 15 -2
Adoption of IFRS 9 and IFRS 15 -2 Impact of adopting new standards on P/L: Net sales: + JPY 59.3bn, operating income: + JPY 304.6 bn Net sales Impact of Operating income adopting (JPY bn) (JPY bn) Impact of adopting new standards 9,542.9 9,602.2 new standards 2,353.9 9.158.8 +59.3 +304.6 2,049.3 1,3
Slide 26: Income on Equity Method Investments Related to Alibaba
Income on Equity Method Investments Related to Alibaba Alibaba SoftBank Group US GAAP IFRSs (CNY mn) (JPY bn) Net income Income on equity Income on equity Reconciliation attributable to Net income Ownership method Exchange rate method to IFRSs Alibaba investments investments 10,647 FY17Q1 -8,568 *1
Slide 27: Breakdown of Goodwill / Intangible Assets
Breakdown of Goodwill / Intangible Assets (JPY bn) B/S As of As of Change Main items Changes in Outline item Mar 2018 Mar 2019 Amortization Others exchange rate 4,302.6 4,321.5 Goodwill Arm 2,851.4 2,777.5 - -73.9 - SoftBank 907.5 907.5 - - - Sprint 312.8 326.8 - +14.0 - FCC licenses 3,960.6 4,155.1
Slide 28: SoftBank Vision Fund / Delta Fund Segment
SoftBank Vision Fund / Delta Fund Segment 28
Slide 29: SoftBank Vision Fund & Delta Fund Update
SoftBank Vision Fund & Delta Fund Update Navneet Govil Managing Partner & Chief Financial Officer, SoftBank Investment Advisers May 10, 2019 29
Slide 30: Important Information
IMPORTANT INFORMATION This presentation (this “Presentation”) is furnished to you on a confidential basis for informational purposes in connection with your limited partnership interests in SoftBank Vision Fund L.P. and SB Delta Fund (Jersey) L.P. (together with, as the context may require, any para
Slide 31: Topics
Topics 1. Progress & Highlights 2. Performance & Impact on SoftBank Group 3. In Focus: Investment & Valuation Processes 31
Slide 32: Progress & Highlights
Progress & Highlights 32
Slide 33: Why the Vision Fund? Shared Vision, Amplified Ambition
Why the Vision Fund? Shared Vision, Amplified Ambition Freedom-Level Capital Founder-Led Global Team Portfolio Poised To Global Reach, Local SoftBank Become Market Insight Vision Fund Leaders Unparalleled Global Focus on Growth Stage Ecosystem There can be no assurance that SBIA will be able to impl
Slide 34: SoftBank Vision Fund & Delta Fund: Snapshot
SoftBank Vision Fund & Delta Fund: Snapshot As of March 31, 2019 Total Cumulative Commitments Acquisition Cost1 Investment Gains1 SVF & Delta $103B $64.2B +$16.2B SBG SBG Paid-In Commitments Capital SBG Total Value2 SBG $32.5B $18.6B $26.2B Footnotes: Information herein is presented on an aggregated
Slide 35: Growth of Our Portfolio
Growth of Our Portfolio Number of Investments1,2 71 Cumulative $16.2B Investment Gains Number of Investments1,2 25 Acquisitio n Cost1 $64.2B $3.3B Acquisitio Cumulative n Cost1 Investment $28.5B Gains Mar 31, 2018 Mar 31, 2019 Footnotes: 1. Acquisition Cost and Number of Investments are cumulative f
Slide 36: Growing Portfolio of Market Leaders
Growing Portfolio of Market Leaders As of March 31, 2019 Investments included herein have been funded by the Vision Fund or Delta Fund as of March 31, 2019. The investments presented herein are solely for illustrative purposes, have been selected in order to demonstrate examples of Fund investments,
Slide 37: Portfolio Composition By Sector
Portfolio Composition By Sector Information herein is presented As of March 31, 2019 on an aggregated basis across the SoftBank Vision Fund and 44% 11% Delta Fund and does not include Cost $26.5B Cost $6.5B Flipkart and Nvidia which were exited in August 2018 and Fair Value $31.1B Fair Value $8.0B J
Slide 38: Portfolio Composition By Geography
Portfolio Composition By Geography As of March 31, 2019 Real Estate & Transportation + Health Tech Construction Logistics Fintech Frontier Tech Enterprise AMERICAS 46% Consumer Information herein is presented on an aggregated basis across the SoftBank Vision Fund and Delta Fund and does not includes
Slide 39: Portfolio Composition By Geography
Portfolio Composition By Geography As of March 31, 2019 Transportation + Frontier Tech Fintech Logistics EMEA 14% Fintech Consumer Health Tech Transportation + Logistics ASIA 40% Information herein is presented on an aggregated basis across the SoftBank Vision Fund and Delta Fund and does not includ
Slide 40: IPOs & Exits in the First Two Years
3 IPOs & 2 Exits in the First Two Years Since Inception to March 31, 2019 EXIT Exits Flipkart, Nvidia SEP 2017 MAY 2018 EXIT AUG 2018 Gross MOIC1: 1.8X Recent IPOs OCT 2018 Investment Cost: $5.3B Gross Proceeds1: $9.7B ZhongAn, PingAn, JAN 2019 Gross Realized Gains1: Guardant Health $4.4B Gross MOIC
Slide 41: Performance & Impact on SoftBank Group
Performance & Impact on SoftBank Group 41
Slide 42: Contribution to SBG, Net of 3rd Party Interests
Contribution to SBG, Net of 3 rd Party Interests Amounts in USD Billions Eleven-month Period from Fund Inception to Year Ended March 31, 20183 March 31,20193 SVF & Delta SVF & Delta Fund Net Profit1 $2.08 $8.58 Less: Change in 3rd Party Interests in Funds -0.74 -4.87 SBG LP Income: Share of Fund Net
Slide 43: Contribution to SBG, Realized and Unrealized Values
Contribution to SBG, Realized and Unrealized Values As of March 31, 2019 $26.2B $1.6B LP Distributions – Realized Value $2.6B Manager Undistributed & Accrued Performance Fee LP NAV – Unrealized $22.0B Value $18.6B Paid-In Total Capital Value Footnotes: 1. Net Asset Value includes net changes in fair
Slide 44: Subscription Credit Facility Creates Flexibility
Subscription Credit Facility Creates Flexibility As of March 31, 2019 $3.08B 4 Yrs. $2.75B Facility Size Tenor Available to draw Global Coordinator Global Coordinator Mandated Lead Mandated Mandated Mandated Lead Mandated Lead Arranger Lead Arranger Lead Arranger Arranger Arranger Bookrunner Bookrun
Slide 45: In Focus: Investment & Valuation Processes
In Focus: Investment & Valuation Processes 45
Slide 46: Our Criteria for Investments
Our Criteria for Investments Evaluate Investment Opportunities Horizontally Consumer Enterprise Fintech Frontier Health Tech Transportation Real Estate Tech + Logistics & Construction The Market The The Opportunity Business Founders There can be no assurance that SBIA will be able to implement its i
Slide 47: Highly Selective Investment Process
Highly Selective Investment Process Since Inception to March 31, 2019 2,257 Investment Pipeline 3% Preliminary Screening and Underwriting (market opportunity, business model, management team, etc.) Advanced Due Diligence Of opportunities have led (commercial, legal and technical due diligence, etc.)
Slide 48: Investment Due Diligence & Approval Process
Investment Due Diligence & Approval Process Investment Professionals 130+ Idea + Term Sheet Full / Advanced Deal Deal Pipeline Signed Due Diligence Execution Local & Global Early Stage IC Meeting Deal Meetings Due Diligence & Approval 48
Slide 49: Valuation Process
Valuation Process 49
Slide 50: A Balance of Widely Accepted Valuation Methodologies
A Balance of Widely Accepted Valuation Methodologies Triangulation of methodologies enhances precision Discounted Cash Flows Fundamental Analysis Income Approach Market Recent Approach Transactions Comparable Company Multiples Financing & Follow-On Guideline Company Transactions Rounds All
Slide 51: Hypothetical Valuation Example
Hypothetical Valuation Example Amounts in USD Billions Concluded Valuation $36B 40 41 38 34 34 30 Recent Transactions Income Approach Market Approach (Discounted Cash Flows) (Comparable Company Multiples) 51 Hypothetical valuation example is provided solely for illustrative purposes and does not rep
Slide 52: Our Robust Valuation Process
Our Robust Valuation Process 400+ 300+ 3,000+ 50+ Companies KPIs Reports Technology Valuation Tracked Analysed Analysed Professionals 52
Slide 53: Fair Valuations
Fair Valuations In line with IFRS 13 Fair Value Measurement and IPEV guidelines Valuations Specialized Firms International Accounting Firms LP Appointed Independent Valuers SVF Auditor All investments, except Arm Holdings , were independently valued at December 31, 2018. 53
Slide 54: Valuations Validated by Participating Co-Investors
Valuations Validated by Participating Co-Investors Since Inception to March 31, 2019 120+ Participating1 Co-Investors 71 28 100% Initial Investments led Follow-On Rounds Investments with by SoftBank Vision Fund Follow-On Rounds at Same or Higher Valuations 1. Participating co-investors includes both
Slide 55: Examples of Financing Rounds
Examples of Financing Rounds $4.0B Series F $1.7B Series E $0.9B Series D Apr-2016 Apr‐2016 Apr-2017 Apr-2018 Sep‐2018 Jan‐2018 Apr-2019 $6.7B Series F $3.8B Series E $0.9B Series D Jun-2018 Apr‐2018 Sep-2018 Aug‐2018 Dec-2018 Mar-2019 Feb‐2019 Information is provided solely for illustrative purpose
Slide 56: Selected Follow-on Rounds
Selected Follow-on Rounds Since Inception to March 31, 2019 Total Round Pre-Money Transaction Investment Series Size Valuation Key Investors in Round Month ($mm) ($mm) Nov 2018 Series F, G, H $1,081 $6,000 Oct 2018 Class E $750 $12,500 Jul 2018 Secondary $600 $59,125 Sep 2018 Series E $550** $4,000
Slide 57: Wrap-Up
Wrap-Up 1. Progress & Highlights 2. Performance & Impact on SoftBank Group 3. In Focus: Investment & Valuation Processes 57
Slide 58: Thank You
Thank You 58
Slide 59: Appendix
Appendix 59
Slide 60: SoftBank Vision Fund: Snapshot
SoftBank Vision Fund: Snapshot As of March 31, 2019 Total Commitments Acquisition Cost1 Cumulative Investment Gains1 $97B $64.2B +$16.2B SVF SBG Commitments SBG Paid-In Capital SBG Total Value2 SBG $28.1B $14.8B $22.6B Footnotes: 1. Including investments in Flipkart and Nvidia which were Fund highli
Slide 61: Delta Fund: Snapshot
Delta Fund: Snapshot As of March 31, 2019 Total Commitments Acquisition Cost1 Cumulative Investment Gains1 Delta $6B $5.0B +$0.0B SBG Commitments SBG Paid-In Capital SBG Total Value2 SBG $4.4B $3.8B $3.6B Footnotes: 1. Including the Fund’s sole investment, DiDi which was Fund highlights are provided
Slide 62: Contribution to SBG, Net of 3rd Party Interests
Contribution to SBG, Net of 3 rd Party Interests Amounts in USD Billions Eleven-month Period from Year Ended Fund Inception to March 31, 20183 March 31, 2019 SVF Delta Total SVF Delta Total Fund Net Profit1 $2.13 -$0.05 $2.08 $8.67 -$0.09 $8.58 Less: Change in 3rd Party Interests in Funds -0.73 -0.0
Slide 63: SoftBank Vision Fund: Contribution to SBG, Realized and Unrealized Values
SoftBank Vision Fund: Contribution to SBG, Realized and Unrealized Values As of March 31, 2019 $22.6B $1.6B LP Distributions – Realized Value $2.6B Manager Undistributed & Accrued Performance Fee LP NAV – Unrealized Value $18.4B $14.8B Paid-In Total Capital Value Footnotes: 1. Net Asset Value includ
Slide 64: Delta Fund: Contribution to SBG, Realized and Unrealized Values
Delta Fund: Contribution to SBG, Realized and Unrealized Values As of March 31, 2019 LP NAV – Unrealized Value $3.8B $3.6B Paid-In Total Capital Value Footnotes: 1. Net Asset Value includes net changes in fair value of financial assets at fair value through profit or loss (FVTPL) and investment Past
Slide 65: Finance
Finance In this section, Softbank Corp. is referred to as SBKK and SoftBank Vision Fund is referred to as SVF. 65
Slide 66: SBG = Strategic Investment Holding Company
SBG = Strategic Investment Holding Company Shifted to enterprise valuation based on SBG standalone financial indices and equity value of its holdings Investment Holding Operating Company (SBG) Company Consolidated financial SBG standalone indicators financial indicators* - Net debt leverage - LTV -
Slide 67: FY2019 Finance Strategy
FY2019 Finance Strategy Pursue both financial stability and flexibility as an investment company Well-protected financial management to be invulnerable to any environmental change 1. Manage balance between investment asset value and debt size • Manage LTV under 25% with upper threshold of 35% •
Slide 68: Shifted to SBG Standalone Based Financial Valuation
Shifted to SBG Standalone Based Financial Valuation SBG net debt at JPY4.4tn Debts sitting at self-financing entities are non-recourse to SBG (JPY) Net debt 4.4tn Investment SVF Others asset value 13.1tn 4.5tn 2.8tn 0.6tn 3.2tn 2.7tn 0.5tn 27.3tn Listed Listed Listed Listed *1 Market value as of May
Slide 69: LTV
LTV Manage LTV under 25% with upper threshold of 35% (JPY) 27.3 tn （8.0） （8.0） LTV 16.3% (Debt cover 6x) 4.4 tn Investment SBG net debt asset value (As of May 9) * Debt cover = Investment asset value divided by net debt 69
Slide 70: Direction of Financial Management (illustrative)
Direction of Financial Management (illustrative) Maximize enterprise value by maintaining optimal leverage through LTV management LTV to improve in the long run as investment assets appreciate in value Balance elevated leverage Divestment during with improvement in financial bull market; position du
Slide 71: Debt Financing as Investment Company
Debt Financing as Investment Company Maximize enterprise value by using leverage to pursue an agile investment strategy Investment / Exercise agile new investments and Divestment Timing divestments Investment Make the most of investment Opportunity opportunities High capital efficiency through low-
Slide 72: Maintaining Abundant Cash Position
Maintaining Abundant Cash Position Maintain a liquidity level that covers bond redemptions for at least next 2 years (JPY bn) JPY 2.4tn Undrawn portion of commitment line 178.5 - Net proceeds expected for investment transfer to SVF; In addition to maintaining abundant cash 615.8 - Payments for tax o
Slide 73: Financial Policy
Financial Policy — SoftBank Manage LTV less than | 25% (upper threshold of 35%) Maintain cash position covering | bond redemptions for at least next 2 years | from SVF and other subsidiaries a Secure SuStainable distribution and dividend income |
Slide 74: Financial Position
（8.0） （8.0） Financial Position 74
Slide 75: Main Activities in FY2018
Main Activities in FY2018 Event Amount Timing Proceeds from the disposal Listing of shares of SBKK on Tokyo Stock Exchange Dec 2018 JPY 2.35tn Debt Restructuring Consent solicitation and exchange offer for 2015 USD and EUR-denominated senior notes Apr 2018 Early redemption of 2013 USD and EUR-denomi
Slide 76: SBG Standalone Interest-bearing Debt
SBG Standalone Interest-bearing Debt Continuous reduction Main variance factors from Dec. 31, 2018 to Mar. 31, 2019 Margin loan repayment ($4.37bn) Buyback of foreign currency notes ($1.0bn) (JPY bn) 9,252.6 9,265.1 Breakdown of SBG debt as of Mar. 31, 2019 Borrowings （JPY bn） 8,116.5 Bank loan 1,05
Slide 77: SBG Standalone Cash Position
SBG Standalone Cash Position Used cash for debt repayment, new investment, and share buyback (JPY bn) 2,258.1 2,158.8 615.8 Transfer of investments to SVF, etc. （＋ JPY 961.0bn ） Expected tax on SBKK IPO proceeds（▲ JPY 345.2bn） 1,642.4 1,392.3 1,281.7 Main variance factors from Dec. 31, 2018 to Mar.
Slide 78: SBG Standalone Net Interest-bearing Debt
SBG Standalone Net Interest-bearing Debt Further decrease since the end of Dec. 2018 (JPY bn) 8,254.9 7,860.3 6,834.8 5,253.1 5,080.5 JPY 4,464.8bn* After consideration of - Transfer of investments to SVF - Expected tax on SBKK IPO proceeds etc. Mar' 18 Jun' 18 Sep' 18 Dec' 18 Mar' 19 * The differen
Slide 79: SBG Notes Redemption Schedule
SBG Notes Redemption Schedule Planning various redemption options with refinancing as the main option Domestic straight notes (JPY bn) Domestic subordinated notes Domestic hybrid notes 1,305.6 Foreign currency-denominated senior notes Foreign currency-denominated hybrid notes 455.6 955.4 305.2 700.0
Slide 80: Interest Expense
Interest Expense (JPY bn) Consolidated Consolidated Standalone • Dividend income from subsidiaries 608.1 Average coupon on standalone basis*2 JPY 255.0bn*3 2.41％ • Distribution from SVF Funded in JPY: 1.86％ Funded in foreign currencies: 3.79% Approx. JPY 220bn*4 • Asset disposition • Asset-backed fi
Slide 81: Equity Value of Holdings
Equity Value of Holdings Market value of listed shareholdings amounts to JPY 27tn 27.3 25.4 (JPY tn) 21.4 21.9 20.1 13.1 12.1 12.8 13.4 11.3 Alibaba 4.5 SBKK 4.3 Sprint 1.5 1.9 2.1 2.7 3.2 Arm 2.4 2.2 2.4 2.8 Others 2.7 3.0 2.7 2.8 SVF (equity value for SBG) 2.7 2.7 1.1 1.0 0.8 0.6 0.6 Yahoo Japan 0
Slide 82: Business Diversity of Investments
Business Diversity of Investments Diversification of investments through SVF’s investments On business sector basis, diversification has advanced even further Other 3% (March 2015) JP Telecom 11% US Telecom 14% Consumer (March 2019) 72% Real estate Other 2% 1% SVF Diversified to a variety of Became
Slide 83: Alibaba Shares
Alibaba Shares As of May 8, 2019 Market Cap Turnover Market cap JPY 51.1tn $464.3bn (USD bn) (USD bn) % owned by SBG Group 25.8%*2 600 16 Market cap of shares owned by JPY 13.1tn 550 14 SBG Group $118.7bn Affiliated company 500 12 Consolidation status accounted for using the equity method 450 10 PER
Slide 84: SBKK Shares
SBKK Shares As of May 9, 2019 Market Cap Turnover Market cap JPY 6.7tn (JPY tn) (JPY bn) % owned by SBG Group 66.5% 7.0 450 Market cap of shares owned by SBG Group JPY 4.5tn 6.8 400 Consolidation status Consolidated 6.6 350 14.0× PER (FY19 SBKK forecast basis) 6.4 300 Dividend per share (FY19 SBKK f
Slide 85: Yahoo Japan Shares
Yahoo Japan Shares As of May 9, 2019 Market Cap Turnover (JPY tn) (JPY bn) Market cap JPY 1.7tn % owned by SBG Group*2 48.2% 3.5 70 Market cap of SBG Group-owned shares*2 JPY 0.8tn 60 3.0 Consolidation status Consolidated 50 PER（FY19 market earnings forecast basis) 20.3× 2.5 40 30 2.0 20 • Aiming to
Slide 86: Sprint Shares
Sprint Shares As of May 8, 2019 Market Cap Turnover Market cap JPY 2.5tn $22.9bn (USD bn) (USD mn) % owned by SBG Group 84.4% 40 700 Market cap of shares owned by SBG Group JPY 2.1tn $19.4bn 600 35 Consolidation status Consolidated 500 PER（Last 12 months) 13.4× 30 400 300 25 • Continuing to monitor
Slide 87: SVF: Capital Commitment
SVF: Capital Commitment Capital Commitment (as of Mar. 31, 2019) Numbers in brackets represent amounts contributed 97.0 *1 (USD bn) (50.9) SBG 63.9 *1 33.1*2 （8.0） （17.5）*3 （33.4）* 3 Note: The discrepancy between the presented total capital commitment (USD 97.0bn) and the figure presented in the Thi
Slide 88: SVF: Fair Value for Investment Asset
SVF: Fair Value for Investment Asset ＋20％ (USD bn) 72.3 60.1 ＋11% Fair Value Total 33.0 29.7 Cumulative Acquisition Cost Mar' 18 Mar' 19 *1 Excluding exited investments. Includes Delta Fund, but Delta Funds has no investment holding as of March 31, 2019, due to the sale of its Didi holdings to SVF.
Slide 89: SVF: Investment Portfolio
SVF: Investment Portfolio （8.0） （8.0） 89
Slide 90: Enhance Shareholder Returns
Enhance Shareholder Returns 90
Slide 91: Past Shareholder Return Measures
Past Shareholder Return Measures Share Price （JPY） 14,000 Share Share Share Share Share Share Buyback Buyback Buyback Buyback Buyback Buyback 2011/8 2011/9 2013/7 2015/8 2016/2 2019/2 JPY 20bn JPY 11.9bn JPY 32.5bn JPY 120bn JPY 500bn JPY 600bn 12,000 8x dividend 10,000 increase 2012/4 JPY 5→JPY 40
Slide 92: 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 14 Japan Telecom Vodafone KK Acquisition Acquisition Listing A/A2 13 JCR (A－) 12 A－/A3 11 BBB+/Baa1 10 BBB/Baa2 S&P (BB＋) 9 BBB－/Baa3 Moo
Slide 93: Domestic Retail Bonds
（8.0） （8.0） Domestic Retail Bonds 93
Slide 94: Our initiative: Issue of Domestic Retail Bonds
Our initiative: Issue of Domestic Retail Bonds Established as a funding tool to address retail investors’ needs in an era of lower investment returns • Continuously issued retail bonds since 2005 as “Fukuoka SoftBank Hawks Bond” • Total issue JPY 3.7tn; while redeemed JPY 1.2tn • Gained popularity b
Slide 95: Rationale Behind Issue of Straight Corporate Bond for Retail Market
Rationale Behind Issue of Straight Corporate Bond for Retail Market • Proportion of cash and deposit remains high at households • Growth rate of total financial assets at households significantly lower than in US and UK Financial assets at households Financial assets held by Japanese households in s
Slide 96: Outstanding Retail Bond
Outstanding Retail Bond Ranking by outstanding retail bond balance Rank Issuer Balance (JPY bn) Outstanding 1 SoftBank Group Retail Bond Share 3,730 （incl. FIG） 2 Mitsubishi UFJ FG 970 3 Mizuho FG 519 4 Sumitomo Mitsui FG 500 5 ORIX 265 SoftBank 6 CREDIT SAISON 180 49% Group 7 Mizuho Bank 143 51% 8
Slide 97: Issue of Straight Corporate Bond for Retail Market
Issue of Straight Corporate Bond for Retail Market Issued domestic bonds for retail investors at the largest scale ever <55th Unsecured Straight Corporate Bond> Total amount of issue JPY 500bn Issue date April 26, 2019 Tenor 6 years Coupon rate 1.64％ Refinance of bonds to be Use of proceeds redeemed
Slide 98: Our Stance on Corporate Bond for Retail Market
Our Stance on Corporate Bond for Retail Market Arguments by Our stance some media • Always diversifying its financing options SBG is too reliant on the retails market for • Bond issuance in domestic and overseas markets for financing institutional investors, banks loans that in total over 100 banks
Slide 99: Appendix
Appendix
Slide 100: LTV Calculation: Adjusted SBG Standalone Net Debt
LTV Calculation: Adjusted SBG Standalone Net Debt (L) Adjusted JPY 4.44tn SBG Standalone Net Debt = 16.3% (V) SBG Standalone Equity Value of Holdings JPY 27.30tn (JPY tn) = - - Adjusted SBG Consolidated Net Debt at Self- Other Standalone Net Debt Net Debt*1, *２ Financing Entities Adjustments 3.6 4.4
Slide 101: LTV Calculation: SBG Standalone Equity Value of Holdings
LTV Calculation: SBG Standalone Equity Value of Holdings (L) Adjusted SBG Standalone Net Debt JPY 4.44tn (V) SBG Standalone = 16.3% JPY 27.30tn Equity Value of Holdings (JPY tn) = + + + Investment Other SBG Standalone Major Listed Arm Shares *4 Assets Under Holdings Shares*1 (75% SBG-held) SVF *5 Sh
Slide 102: Consolidated Interest-bearing Debt
Consolidated Interest-bearing Debt SBG Others (Arm, YJ, etc.) SVF Variable prepaid forward contract SoftBank segment Sprint segment (Alibaba) (JPY bn) 17,987.8 17,042.2 17,349.0 17,053.8 15,685.1 8,116.5 7,411.9 9,252.6 9,265.1 6,722.9 501.1 472.0 635.9 480.4 SoftBank segment 3,286.2 629.3 432.3 741
Slide 103: Consolidated Cash Position
Consolidated Cash Position (JPY bn) 5,125.8 2,158.8 3,629.1 3,424.9 3,338.8 2,978.2 1,392.3 1,281.7 547.9 1,642.4 1,010.2 SBG 617.9 1,285.6 572.2 816.4 795.5 Others (Arm, YJ, etc.) 115.9 273.8 77.5 311.1 SVF 219.9 43.9 168.0 376.1 358.3 SoftBank segment 952.4 927.0 1,012.3 782.4 Sprint segment 757.4
Slide 104: Consolidated Net Interest-bearing Debt
Consolidated Net Interest-bearing Debt (JPY bn) 14,370.8 14,648.9 13,617.3 11,927.9 12,056.0 6,834.8 8,254.9 7,860.3 5,253.1 5,080.5 SBG 520.0 Others (Arm, YJ etc) 741.7 727.8 730.6 537.5 Variable prepaid forward 278.5 contract (Alibaba) 688.3 719.0 3,065.1 3,012.4 2,928.0 1,662.9 SVF 1,775.0 SoftBa