Softbank Group Corp. · TSE:9984
Softbank — Q4 FY2019 Earnings Presentation
31 slides from Softbank's earnings presentation, Mar 31, 2020
Slide 1: 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 2: 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 3: 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 4: Topics
4 Topics 01- Progress & Highlights 02- Performance & Impact on SoftBank Group 03- In Focus: Built For Resilience
Slide 5: Progress & Highlights
Progress & Highlights Investment Advisers
Slide 6: 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 7: 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 8: 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 9: 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 10: Portfolio Composition By Geography and Sector: Asia, 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 11: 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 12: 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 13: 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 14: 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 15: 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 16: Deleveraging and Managing Risk in Volatile Markets
16 $3.5B 1 PROGRESS & HIGHLIGHTS $2.3B 1 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 17: 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 18: Performance & Impact on SoftBank Group
18 Performance & Impact on SoftBank Group
Slide 19: 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 SBG G
Slide 20: 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 SBG GP Income: Amounts in USD billions 0.35 Management Fees & Performance
Slide 21: 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 22: In Focus: Built For Resilience
22 In Focus: Built For Resilience
Slide 23: 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 24: 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 25: 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 26: 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 as of Dec 31, 2019 $50.0B Low Leverage Cash/Debt Ratio 3 5 Debt Balance as of Dec 31, 2019 $10.4B Footnotes: 1. Information herein is
Slide 27: 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 3 Total Debt as of Mar 31, 2020 $5.4B
Slide 28: 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 29: 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 30: Wrap-Up
30 Wrap-Up 01- Progress & Highlights 02- Performance & Impact on SoftBank Group 03- In Focus: Built For Resilience
Slide 31: Thank You
Thank You == SoftBank Investment Advisers