Softbank Group Corp. · TSE:9984
Softbank — Q3 FY2022 Earnings Presentation
32 slides from Softbank's earnings presentation, February 2023
Slide 1: Investor Briefing: SoftBank Vision & LatAm Funds
QUARTER ENDED DECEMBER 31, 2022 Investor Briefing SoftBank Vision & LatAm Funds NAVNEET GOVIL CFO, Member of the Executive Committee SB Global 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 (SBG) 03- In Focus: Resilience & Discipline in a Challenging Market
Slide 5: Progress & Highlights
5 Progress & Highlights
Slide 6: Despite a Volatile Year, We Remain High-Conviction Investors in AI
PROGRESS & HIGHLIGHTS 6 Despite a Volatile Year, We Remain High-Conviction Investors in AI Portfolio Companies Continue $16B+ to Attract Investor Interest, MARKET DEVELOPMENTS Capital Raised Completing 80+ Funding 20222 Rounds in 2022 2022 Performance1 Nasdaq Tech 100 Refinitiv VC Index 94% Invested
Slide 7: Performance Snapshot
SVF1 SVF2 LATAM 7 SoftBank SoftBank SoftBank Vision Fund 1 Vision Fund 2 LatAm Funds Combined Total Commitment $98.6B $56.0B $7.6B $162.2B PROGRESS & HIGHLIGHTS Performance Acquisition Cost1 $87.9B $49.4B $7.3B $144.6B Snapshot Cumulative Gross $13.1B $(17.0B) $(0.9B) $(4.8B) Investment Gains/(Losse
Slide 8: Distributions to Limited Partners
SVF1 PROGRESS & HIGHLIGHTS 8 Distributions to Limited Partners Since Inception to December 31, 2022 Total Distributions (A) (B) (C) (D) (E) = (B)-(C) Fund Drawn Return of Pref Coupon / 3 Outstanding 2 Commitment Capital 1 Capital Equity Gains 4 Capital 5 Preferred Equity $40.0B $36.2B $18.6B $7.0B $
Slide 9: Our Portfolio Companies Raised $16B+ in 2022
SVF1 SVF2 LATAM PROGRESS & HIGHLIGHTS 9 Our Portfolio Companies Raised $16B+ in 2022 Twelve-Month Period Ended December 31, 2022 87 Equity Round Series E Series E Series E Series B Series C Series D Series B Series G Series D Funding Rounds1 Series D Series D Series C Series C Series C Series E Seri
Slide 10: A Maturing Portfolio Generating Sustainable Revenue Growth
SVF1 SVF2 LATAM 10 Investments by Revenue Stage By Fair Value (%)1 PROGRESS & HIGHLIGHTS 49% A Maturing Portfolio Generating Sustainable Revenue Growth 21% 17% As of December 31, 2022 13% Less Than $50mm $50mm - $250mm $250mm - $1,000mm More Than $1,000mm Footnotes: 1. Based on Fair Value of private
Slide 11: Invested Across Diverse Sectors (1/3)
SVF1 SVF2 LATAM PROGRESS & HIGHLIGHTS 11 Invested Across Diverse Sectors (1/3) As of December 31, 2022 FA I R VA L U E & I N V E S T M E N T C O U N T B Y S E C T O R Consumer Transportation Frontier Tech $38.8B | 88 Investments $21.0B | 25 Investments $20.2B | 33 Investments G UAZ I Footnotes: Cons
Slide 12: Invested Across Diverse Sectors (2/3)
SVF1 SVF2 LATAM PROGRESS & HIGHLIGHTS 12 Invested Across Diverse Sectors (2/3) As of December 31, 2022 FA I R VA L U E & I N V E S T M E N T C O U N T B Y S E C T O R Enterprise Logistics Health Tech $12.3B | 93 Investments $17.8B | 36 Investments $9.1B | 56 Investments Footnotes: Enterprise - SoftB
Slide 13: Invested Across Diverse Sectors (3/3)
SVF1 SVF2 LATAM PROGRESS & HIGHLIGHTS 13 Invested Across Diverse Sectors (3/3) As of December 31, 2022 FA I R VA L U E & I N V E S T M E N T C O U N T B Y S E C T O R Fintech Proptech Edtech $9.8B | 79 Investments $6.8B | 25 Investments $1.5B | 16 Investments BEIKE Footnotes: Fintech - SoftBank Visi
Slide 14: A Cautious Approach to Investing in the Blockchain & Crypto Sector
SVF1 SVF2 LATAM PROGRESS & HIGHLIGHTS 14 A Cautious Approach to Investing in the Blockchain & Crypto Sector As of December 31, 2022 TOTAL EXPOSURE % O F AUM 1 # INVESTMENTS Our Sector Approach Potential for multi- Technology TO TAL FAIR VALUE G RO S S MO IC 2 industry applications infrastructure foc
Slide 15: Performance & Impact on SoftBank Group (SBG)
15 Performance & Impact on SoftBank Group (SBG)
Slide 16: SVF1 Contribution to SBG, Net of 3rd Party Interests
16 SVF1 2022 Inception to Dec 31 SVF1 Fund Net Profit2 $2.8 PERFORMANCE & IMPACT ON SBG Less: Change in 3rd Party Contribution to Interests in Fund (1.6) SBG, Net of 3rd SBG LP Income: 1.2 Share of Fund Net Profit Party Interests1,3 Amounts in USD Billions SBG GP Income: Management & Performance Fee
Slide 17: Contribution to SBG: SVF1
17 SBG Paid-In Capital1 SVF1 PERFORMANCE & IMPACT ON SBG Contribution to SBG SBG Total Value2 As of December 31, 2022 Net Asset Value3 Distributions4 Footnotes: 1. SBG Paid-In Capital represents SBG Commitment drawn down through capital calls less Return of Recallable unutilized Contributions. 2. SB
Slide 18: Contribution to SBG: SVF2
18 SBG Paid-In Capital1 SVF2 PERFORMANCE & IMPACT ON SBG Contribution to SBG SBG Total Value2 As of December 31, 2022 Net Asset Value3 Distributions4 Footnotes: 1. SBG Paid-In Capital represents SBG Commitment drawn down through capital calls less Return of Recallable unutilized Contributions. SBG P
Slide 19: Contribution to SBG: LatAm
19 SBG Paid-In Capital1 LATAM PERFORMANCE & IMPACT ON SBG Contribution to SBG SBG Total Value2 As of December 31, 2022 Net Asset Value3 Distributions4 Footnotes: 1. SBG Paid-In Capital represents SBG Commitment drawn down through capital calls less Return of Recallable unutilized Contributions. SBG
Slide 20: In Focus: Resilience & Discipline in a Challenging Market
20 In Focus: Resilience & Discipline in a Challenging Market
Slide 21: A High-Conviction Portfolio Supported by Defensive Measures
RESILIENCE & DISCIPLINE IN A CHALLENGING MARKET 21 A High-Conviction Portfolio Supported by Defensive Measures Portfolio Diversification Select Disciplined Focus and Defensive Approach to Monetization Measures Distributions Strategic Opportunities Operational & Select Financial Resilience Defensive
Slide 22: Portfolio Companies Pursuing Consolidation Opportunities
SVF1 SVF2 LATAM RESILIENCE & DISCIPLINE IN A CHALLENGING MARKET 22 Portfolio Companies Pursuing Consolidation Opportunities Twelve-Month Period Ended December 31, 2022 Benefits of Economies of Expansion to Product Access to Diversification Consolidation Scale & Scope New Markets Innovation Talent of
Slide 23: Partnerships Forged During Periods of Uncertainty
SVF1 SVF2 LATAM RESILIENCE & DISCIPLINE IN A CHALLENGING MARKET 23 Partnerships Forged During Periods of Uncertainty Twelve-Month Period Ended December 31, 2022 Benefits of Strategic Partnerships Portfolio Company Partner(s) Description Acquired in-venue retail rights for the 2028 Olympics Access to
Slide 24: Embedding Operational & Financial Resilience
SVF1 SVF2 LATAM RESILIENCE & DISCIPLINE IN A CHALLENGING MARKET 24 Embedding Operational & Financial Resilience As of December 31, 2022 SELECT AREAS OF FOCUS Portfolio Companies Continue to Moderate Operating Expenses Rationalizing Sales & Marketing costs % of Portfolio Companies Increasing Sales &
Slide 25: Portfolio Companies Continue to Be Well-Capitalized
SVF1 SVF2 LATAM 25 By Fair Value1 RESILIENCE & DISCIPLINE IN A CHALLENGING MARKET SVF1 SVF2 LATAM Portfolio Companies Continue to Be Well-Capitalized 99% 90% 79% As of December 31, 2022 Footnotes: 1. Source: SBGA/SBIA Analysis. Based on portfolio company fair value. Excludes portfolio companies wher
Slide 26: A High-Conviction Portfolio Supported by Defensive Measures
RESILIENCE & DISCIPLINE IN A CHALLENGING MARKET 26 A High-Conviction Portfolio Supported by Defensive Measures Portfolio Diversification Select Portfolio Diversification Disciplined Focus and Defensive Approach to Monetization Measures Select Distributions Disciplined Focus and Defensive Approach to
Slide 27: Disciplined & Focused Approach to Monetization
SVF1 SVF2 LATAM RESILIENCE & DISCIPLINE IN A CHALLENGING MARKET 27 Disciplined & Focused Approach to Monetization MONETIZ A TI O N D R IVER S MONETIZ A TI O N F AC TOR S Strategic Asset-Specific Market & Fund Factors Factors Performance Expectations Sector & Geographic Outlook Position Size & Liquid
Slide 28: Our Monetization Approach Continues to Drive Optimal Outcomes
SVF1 SVF2 LATAM RESILIENCE & DISCIPLINE IN A CHALLENGING MARKET 28 Our Monetization Approach Continues to Drive Optimal Outcomes As of December 31, 2022 M O N E T I Z AT I O N H I G H L I G H T S C U M U L AT I V E P R O C E E D S S I N C E I N C E P T I O N Cumulative Proceeds3 ($B) NASDAQ Performa
Slide 29: Portfolio Companies Poised to List Publicly
SVF1 SVF2 LATAM RESILIENCE & DISCIPLINE IN A CHALLENGING MARKET 29 Portfolio Companies Poised to List Publicly As of December 31, 2022 $37B+ Public Listing Readiness Value of Late-Stage Portfolio Company Holdings Strong Fundamentals Total FV, Series E or Later1 Resilient Business Models Select Portf
Slide 30: Consistent Ability to Return Capital
SVF1 SVF2 LATAM RESILIENCE & DISCIPLINE IN A CHALLENGING MARKET 30 Consistent Ability to Return Capital As of December 31, 2022 LATAM SVF2 SVF1 Years since Launch 3+ 3+ 5+ % of Capital 1% 18% 50% $53.4B Returned2 $44.2 Total Distributions1 Distributions ($B)1 $9.1 $0.1 Footnotes: 1. Distributions in
Slide 31: We Remain Relentlessly Focused on Artificial Intelligence
31 RESILIENCE & DISCIPLINE IN A CHALLENGING MARKET Projected Contribution of AI to the Global Economy – 2030E1 We Remain Relentlessly Focused on Artificial Intelligence Increase in AI Adoption Globally, 2017 – 20222 IN V ESTING VA L U E C R E AT I O N M O N E T I Z AT I O N AI Chip Market CAGR3 The
Slide 32: Thank You
32 Thank You SoftBank Vision & LatAm Funds Investor Briefing Presentations Available at visionfund.com/presentations