Softbank Group Corp. · TSE:9984
Softbank — Q3 FY2023 Earnings Presentation
28 slides from Softbank's earnings presentation, February 2024
Slide 1: Investor Briefing: SoftBank Vision & LatAm Funds
QUARTER ENDED DECEMBER 31, 2023 Investor Briefing SoftBank Vision & LatAm Funds NAVNEET GOVIL CFO, SB Investment Advisers & 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: 2023 Year in Review
Slide 5: Progress & Highlights
5 Progress & Highlights
Slide 6: Looking Back at 2023
SVF1 SVF2 LATAM P RO G RE S S & H I G H L I G H T S 6 Looking Back at 2023 2023 IN REVIEW 2023 MARKET EXPECTATIONS No recession, projected soft landing in 2024 Probability of a US recession Inflation slowed but rates remained elevated High interest rates and inflation 90% of S&P 500 technology earni
Slide 7: Fund Performance Stabilized in 2023
SVF1 SVF2 LATAM P RO G RE S S & H I G H L I G H T S 7 Fund Performance Stabilized in 2023 Twelve-Month Period Ended December 31, 2023 2023 VISION & LATAM FUNDS PERFORMANCE Total Fair Value1 $146.6B Quarterly Fair Value Performance2 $140.3B $141.0B +$4.0B +$5.1B $138.0B Fair Value Gain Last 3 Quarter
Slide 8: Quarterly Performance +$4.0B
SVF1 SVF2 LATAM 8 QUARTERLY FAIR VALUE PERFORMANCE 1 +$4.0B +$2.1B +$1.6B +$0.3B PROGRESS & HIGHLIGHTS COMBINED SVF1 SVF2 LATAM Quarterly PERFORMANCE DRIVERS Performance Gains from both public (+$1.5B) and private (+$2.5B) portfolio companies As of December 31, 2023 SVF1 gains primarily driven by st
Slide 9: Performance Snapshot
SVF1 SVF2 LATAM 9 SoftBank SoftBank SoftBank Vision Fund 1 Vision Fund 2 LatAm Funds Combined Total Commitments1 $98.6B $59.8B $7.8B $166.2B PROGRESS & HIGHLIGHTS Acquisition Cost2 $87.8B $53.4B $7.4B $148.6B Performance Snapshot Cumulative Gross Investment Gains/(Losses)2 $18.9B $(19.8B) $(1.1B) $(
Slide 10: Distributions to Limited Partners Increased by $4.2B During 2023
SVF1 P RO G RE S S & H I G H L I G H T S 10 Distributions to Limited Partners Increased by $4.2B During 2023 Since Inception to December 31, 2023 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 P
Slide 11: Invested Across Diverse Sectors
SVF1 SVF2 LATAM P RO G RE S S & H I G H L I G H T S 11 Invested Across Diverse Sectors As of December 31, 2023 T O T A L F A I R V A L U E B Y S E C T O R 1,2 Consumer Frontier Tech Transportation Logistics Enterprise Fintech Health Tech Proptech Edtech $41.6B $24.3B $21.9B $17.8B $12.2B $10.1B $8.6
Slide 12: Our Globally Diversified Portfolio
SVF1 SVF2 LATAM P RO G RE S S & H I G H L I G H T S 12 Our Globally Diversified Portfolio As of December 31, 2023 T O T A L F A I R V A L U E & T O P 1 5 I N V E S T M E N T S B Y G E O G R A P H Y ( $ B ) 1,2,3 18% 19% $54.5 $26.4 37% USA & CANADA EMEA $27.3 CHINA $13.8 9% INDIA $5.9 $18.7 13% REST
Slide 13: Our China Portfolio Remains Resilient Despite Challenging Environment
SVF1 SVF2 LATAM P RO G RE S S & H I G H L I G H T S 13 Our China Portfolio Remains Resilient Despite Challenging Environment As of December 31, 2023 KEY 55 $27.3B +10% 0.9x METRICS Investments Total Fair Value1 Quarterly FV Performance2 Gross MOIC3 Portfolio Developments Recent Developments Top 3 In
Slide 14: Performance & Impact on SoftBank Group (SBG)
14 Performance & Impact on SoftBank Group (SBG)
Slide 15: SVF1 Contribution to SBG, Net of 3rd Party Interests
15 SVF1 2023 Inception to Dec 31 SVF1 Fund Net Profit2 $6.8 PERFORMANCE & IMPACT ON SBG Less: Change in 3rd Party Contribution to Interests in Fund (3.5) SBG, Net of 3rd SBG LP Income: 3.3 Share of Fund Net Profit Party Interests1,3 SBG GP Income: Amounts in USD Billions 1.1 Management & Performance
Slide 16: Contribution to SBG: SVF1
16 SBG Paid-In Capital1 $27.7B SVF1 PERFORMANCE & IMPACT ON SBG Contribution to SBG SBG Total Value2 As of December 31, 2023 $21.3B $31.0B Net Asset Value3 Distributions4 $9.7B Footnotes: 1. SBG Paid-In Capital represents SBG Commitment drawn down through capital calls less Return of Recallable unut
Slide 17: Contribution to SBG: SVF2
17 SBG Paid-In Capital1 $55.1B SVF2 PERFORMANCE & IMPACT ON SBG Contribution to SBG SBG Total Value2 As of December 31, 2023 $26.5B $35.5B Net Asset Value3 Distributions4 $9.0B Footnotes: 1. SBG Paid-In Capital represents SBG Commitment drawn down through capital calls less Return of Recallable unut
Slide 18: Contribution to SBG: LatAm
18 SBG Paid-In Capital1 $7.1B LATAM PERFORMANCE & IMPACT ON SBG Contribution to SBG SBG Total Value2 As of December 31, 2023 $5.7B $6.0B Net Asset Value3 Distributions4 $0.3B Footnotes: 1. SBG Paid-In Capital represents SBG Commitment drawn down through capital calls less Return of Recallable unutil
Slide 19: In Focus: 2023 Year in Review
19 In Focus: 2023 Year in Review
Slide 20: AI Momentum Builds in 2023
SVF1 SVF2 LATAM 2 0 2 3 YE A R I N RE V I E W 20 AI Momentum Builds in 2023 As of December 31, 2023 Select AI Milestones – 20231 Our AI Investing Stack JAN & partnership announced Applications Applying AI to foster next-generation human interactions at the device level. From specialist industry tool
Slide 21: 2023 Key Accomplishments
SVF1 SVF2 LATAM 2 0 2 3 YE A R I N RE V I E W 21 2023 Key Accomplishments Balanced Achieved Listings Portfolio Portfolio Companies Monetized $21B+ Approach to & Expanded Companies Raised Focused on Capital from Investments1 Offense & Defense IPO Pipeline $8B+ Capital1 Efficient Growth Footnotes: 1.
Slide 22: Balanced Approach to Offense & Defense
SVF1 SVF2 LATAM 2 0 2 3 YE A R I N RE V I E W 22 Balanced Approach to Offense & Defense As of December 31, 2023 Our 2023 Activity Deep engagement Selective investing Focused Disciplined 300+ Companies Studied1 with companies in companies portfolio and consistent across AI verticals demonstrating key
Slide 23: Achieved Listings & Expanded IPO Pipeline in a Volatile Market
SVF1 SVF2 LATAM 2 0 2 3 YE A R I N RE V I E W 23 Achieved Listings & Expanded IPO Pipeline in a Volatile Market As of December 31, 2023 CUMULATIVE PUBLIC LISTINGS $31B+ SINCE INCEPTION1 50 Late-Stage Portfolio2 45 SELECT COMPANIES +5 38 Listings SVF1 1 Retained Share SVF2 13 8 LATAM 1 3 2017 2018 20
Slide 24: Monetized $21B+ From Investments
SVF1 SVF2 LATAM 24 2023 NOTABLE GROSS PROCEEDS EXITS4 BY TYPE Monetization Metrics $21.4B $21.4B 2023 YEAR IN REVIEW GROSS PROCEEDS1 Monetized $21B+ Deferred From Investments 49 $12.3B Proceeds6 FULL & PARTIAL EXITS2 Twelve-Month Period Ended December 31, 2023 1.6x 5 Proceeds $9.1B Received GROSS MO
Slide 25: Our Portfolio Companies Raised $8B+ in 2023
SVF1 SVF2 LATAM 2 0 2 3 YE A R I N RE V I E W 25 Our Portfolio Companies Raised $8B+ in 2023 Twelve-Month Period Ended December 31, 2023 41 AV JV Funding Rounds1 Series I Series F Series F Series F Series F Series F Equity Series G Series E Series C 48% % Up Rounds2 Series D Equity Series C++ Series
Slide 26: Portfolio Companies Focused on Capital Efficient Growth
SVF1 SVF2 LATAM 2 0 2 3 YE A R I N RE V I E W 26 Portfolio Companies Focused on Capital Efficient Growth As of December 31, 2023 C AP ITAL EF F IC IENT GR OWTH STR ONG CASH POSITION S Portfolio Companies with Significant Revenue Growth Portfolio Companies with 12+ Months Cash Runway By Fair Value1 B
Slide 27: Our 2024 Priorities
SVF1 SVF2 LATAM 2 0 2 3 YE A R I N RE V I E W 27 Our 2024 Priorities AI TODAY Revolution Information Revolution Industrial Agricultural Revolution Revolution 01 - 02 - 03 - Investing in the Unlocking Disciplined & Consistent AI Revolution Portfolio Value Monetization The graphic is provided solely f
Slide 28: Thank You
28 Thank You SoftBank Vision & LatAm Funds Investor Briefing Presentations Available at visionfund.com/presentations