Softbank Group Corp. · TSE:9984
Softbank — Q3 FY2023 Earnings Presentation
118 slides from Softbank's earnings presentation, Feb 8, 2024
Slide 1: Earnings Results for the Nine-month Period Ended December 31, 2023
Ver.1.3 Earnings Results for the Nine-month Period Ended December 31, 2023 Investor Briefing February 8, 2024 SoftBank Group Corp.
Slide 2: Disclaimers
Disclaimers This presentation provides relevant information about SoftBank Group Corp. (“SBG”) and its subsidiaries (together with SBG, the “Company”) and its affiliates (together with the Company, the “Group”) and does not constitute or form any solicitation of investment including any offer to buy
Slide 3: Exchange rates and abbreviations
Exchange rates per JPY used for translation FY2022 FY2023 Average during quarter Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1 USD 129.04 138.68 141.16 133.26 138.11 145.44 147.00 EOQ Jun 30 Sep 30 Dec 31 Mar 31 Jun 30 Sep 30 Dec 31 Mar 31 1 USD 133.53 141.83 Abbreviations Abbreviations used in Accounting and Finance s
Slide 4: Index
Index • Accounting • Finance • SoftBank Vision & LatAm Funds • Arm
Slide 5: Accounting
Accounting
Slide 6: Consolidated Results
Consolidated Results FY22 FY23 (¥ B) Q1-Q3 Q1-Q3 Change Change % Net sales 4,875.8 5,001.9 +126.1 +2.6% Income before -290.0 264.1 +554.1 ー income tax Net income (attributable to owners of the -912.5 -458.7 +453.8 ー parent) (Reference) Loss on investments -1,361.2 -538.9 +822.2 ー Investment Business
Slide 7: Net Income & SVF Segment Income
Net Income & SVF Segment Income 3,033.6 950.0 (¥ B) 422.7 Net income SVF segment income -57.6 61.0 (income before income tax) -660.1 • Includes investment gain in Arm shares -297.5 -258.9 • After considering third-party interests -1,019.9 -477.6 -783.4 -931.1 -2,330.8 -3,162.7 Q1 Q2 Q3 Q4 Q1 Q2 Q3 F
Slide 8: Investment Business of Holding Companies Segment
Investment Business of Holding Companies Segment (¥ B) FY22 FY23 P/L item FY23Q1-Q3 Main Items Q1-Q3 Q1-Q3 Gain/loss on investments at Investment 3,699.7 -583.4 Business of Holding Companies Gain relating to settlement of prepaid forward contracts using Alibaba shares 4,838.3 ― Gain/loss relating to
Slide 9: Acquisition of T-Mobile Shares for No Additional Consideration
Acquisition of T-Mobile Shares for No Additional Consideration Contingent consideration The condition of 45-day trailing VWAP of T-Mobile share (Part of consideration for the merger between Sprint and T-Mobile) ≧ $149.35 was satisfied on Dec 22, 2023 Acquired 48.8M T-Mobile shares for no additional
Slide 10: T-Mobile: Shareholding & Fair Values
T-Mobile: Shareholding & Fair Values includes shares subject to unexercised Deutsche Telekom’s call options Held 92.1M T-Mobile shares T-Mobile share price $160.33 at FY23Q3, up 52.3M shares $140.00 $144.84 $138.90 $140.05 from FY22Q4 Received 3.6M shares upon vesting contingent value rights (CVR)
Slide 11: Deutsche Telekom: Shareholding & Fair Values
Deutsche Telekom: Shareholding & Fair Values Acquired 225M Deutsche Deutsche Telekom share price Telekom shares in Sep 2021 €22.35 €21.75 in return for the sale of T-Mobile shares €19.98 €19.87 €18.64 -$56M (-¥3.0B) valuation loss for FY23Q1-Q3 Fair value of Deutsche Telekom shares ($ M) (i) DT sh
Slide 12: Alibaba Shares & Derivative Financial Assets/Liabilities
Alibaba Shares & Derivative Financial Assets/Liabilities (Amount Recorded in B/S) Value of Alibaba shares Derivative financial Investment securities (FVTPL) recorded in B/S assets/liabilities (net) considering prepaid Alibaba share price forward contracts: $102.18 $102.18 $31,384M ( A + B ) $77.51 $
Slide 13: SoftBank Vision Funds Segment
SoftBank Vision Funds Segment (¥ B) FY22 FY23 P/L Q1-Q3 Q1-Q3 FY23Q1-Q3 Main Items In consolidated P/L, loss on investments at SoftBank Vision Gain/loss on investments at SoftBank Vision Funds -5,042.7 781.9 Funds was ¥52.0B (see p10) ¥767.4B gain at SVF1, ¥96.8B loss at SVF2 Gain/loss on investment
Slide 14: Difference between Segment Results and Consolidated P/L
Difference between Segment Results and Consolidated P/L (i) Investment gains/losses related to subsidiaries, mainly Arm and PayPay, are included in “gain/loss on investments at SoftBank Vision Funds” (segment information), but are eliminated in consolidations and excluded from “gain/loss on investme
Slide 15: Investment Performance of SVF1 and SVF2
(Reference) Investment Performance of SVF1 and SVF2 ($ B) Since Inception FY23*1 Gain/loss Gain/loss Cost*2 Returns*2 Gain/loss Q3 Q1-Q3 SVF1 89.6 106.3 16.7 1.9 5.3 Exited investments 36.1 61.7 25.6 0.6 6.9 Investments before exit 53.5 42.2 -11.3 1.7 -0.6 Reversal of previously-recorded valuation g
Slide 16: Status of Investment and Financial Support for WeWork
Status of Investment and Financial Support for WeWork (Cumulative) ($ M) Cumulative acquisition cost as of Dec 2023 Cumulative cash flows (SBG consolidated basis) Cumulative loss Carrying other than acquisition as of Dec 2023 amount * Exchange from of investments as of (SBG consolidated Amount paid
Slide 17: Arm Segment: Bridge to Arm's disclosure
Arm Segment in SBG’s Consolidated Financial Report Bridge to Arm’s disclosure (FY23 Q1-Q3 P/L) Adjustment (1) Adjustment (2) Adjustment (3) Amortization expenses SBG Consolidated related to intangible Difference in assets recognized in accounting Arm Financial Report Arm segment the purchase price s
Slide 18: Consolidated P/L Summary
Consolidated P/L Summary (¥ B) FY22 FY23 P/L item Change Q1-Q3 Q1-Q3 1 ・¥225.4B derivative gain on investments Net sales 4,875.8 5,001.9 +126.1 ・¥943.0B realized and unrealized valuation losses on Alibaba shares Gross profit 2,579.1 2,665.2 +86.1 (offset by ¥1,204.7B derivative gain related to Aliba
Slide 19: Consolidated B/S Summary – Non-current assets
Consolidated B/S Summary – 1 (¥ B) B/S Main items Mar 2023 Dec 2023 Change item 1 SBG and wholly owned subsidiaries conducting fund procurement, etc.: ¥3,354.5B (¥730.5B decrease) Current assets 10,586.5 10,927.1 +340.6 Cash and cash equivalents 6,925.2 1 6,163.7 -761.5 2 ・¥414.7B increase for Aliba
Slide 20: Investment Securities in Consolidated B/S
Investment Securities in Consolidated B/S (Main Investments) (¥ B) Mar 2023 Dec 2023 Change Outline Investment securities 7,706.5 8,619.9 +913.4 FVTPL 7,244.3 7,953.4 +709.1 4,842.3 3,769.8 -1,072.5 Decreased mainly due to lower share price and the physical Alibaba $36,264M $26,580M -$9,684M settlem
Slide 21: Breakdown of Goodwill/Intangible Assets
Breakdown of Goodwill/Intangible Assets (¥ B) Change B/S Main items Mar 2023 Dec 2023 Amorti- Changes in Outline Item Others zation FX rate 5,199.5 5,419.5 *1 Goodwill Arm 3,161.7 3,358.3 ― +196.6 ― SBKK 913.9 913.9 ― ― ― LY*2 647.4 647.4 ― ― ― ZOZO 214.0 214.0 ― ― ― Technologies 344.3 349.0 Main Ar
Slide 22: Consolidated B/S Summary – Non-current liabilities
Consolidated B/S Summary – 2 (¥ B) B/S Main items Mar 2023 Dec 2023 Change item 10,580.7 12,088.8 +1,508.1 Interest-bearing debt 5,129.0 1 6,624.0 +1,495.0 1 SBG Borrowings*: ¥446.4B (¥64.5B increase) Lease liabilities 184.1 152.7 -31.4 Current liabilities Corporate bonds*: ¥5,902.0B (¥149.0B increa
Slide 23: Consolidated B/S Summary – Equity
Consolidated B/S Summary – 3 (¥ B) Mar Dec Items Change 2023 2023 10,649.2 11,712.6 +1,063.4 1 Amount equivalent to the gain on the sale of Arm shares upon Common stock 238.8 238.8 ― its IPO :¥674.4B Capital surplus 2,652.8 3,322.6 1 +669.8 2 Redeemed $2.0B USD-denominated NC6 undated hybrid notes 3
Slide 24: Impact of the Weaker Yen on P/L & B/S
Impact of the Weaker Yen on P/L & B/S (Illustration) P/L B/S Entities Components Foreign exchange Exchange differences gain (loss) from translation Foreign currency- denominated cash and cash equivalents/ SBG stand-alone + Loans receivable Foreign exchange gain Subsidiaries conducting (excl. investm
Slide 25: Impact of the Weaker Yen in FY23Q1-Q3
Impact of the Weaker Yen in FY23Q1-Q3 (from ¥133.53/$ to ¥141.83/$) Foreign exchange loss in consolidated P/L for FY23Q1-Q3: ¥308.2B At SBG stand-alone: Foreign exchange losses of ¥456.7B related to foreign currency-denominated borrowings from Group companies, ¥47.1B related to foreign currency-deno
Slide 26: Impact of the Stronger Yen in FY23Q3
Impact of the Stronger Yen in FY23Q3 (from ¥149.58/$ to ¥141.83/$) Foreign exchange gain in consolidated P/L for FY23Q3: ¥339.9B At SBG stand-alone: Foreign exchange gains of ¥498.0B related to foreign currency-denominated borrowings from Group companies, ¥17.9B related to foreign currency-denominat
Slide 27: Consolidated C/F Summary
Consolidated C/F Summary (¥ B) C/F FY22 FY23 Primary details for FY23Q1-Q3 item Q1-Q3 Q1-Q3 1 ¥149.7B net inflow, despite income taxes and outlays for the acquisition of corporate and government bonds by asset management subsidiaries +1,077.6 Subtotal of cash flows from operating activities ・¥854.9B
Slide 28: Income Taxes Paid on a Consolidated Basis
Income Taxes Paid on a Consolidated Basis (Net) (¥ B) FY23 FY18 FY19 FY20 FY21 FY22 Total Q1-Q3 Consolidated 415.4 636.3 445.5 589.3 525.9 2,612.4 787.3 Japan 284.3 575.2 310.5 551.2 469.7 2,190.9 705.2 SBG and holding companies (wholly 36.8 324.7 35.7 200.0 214.2 811.4 432.9 owned subsidiaries) Ope
Slide 29: Co-investment Program to SVF2: Related Party Transactions
Co-investment Program to SVF2: Related Party Transactions Equity interests of third-party interests Masayoshi SBG FY23Q3: $― (¥―) Son* 1 FY22: $― (¥―) Equity interests: 17.25% (B) (A) Distribution: $173M Equity acquisition amount: $2,923M 100% (Return of capital) (i) Acquisition costs: $2,594M (comm
Slide 30: Co-investment Program to LatAm Funds & Management's Investment
Co-investment Program to LatAm Funds & Management’s Investment in Asset Management Subsidiary Co-investment program to LatAm Funds Management’s investment in Equity interests of third-party investors asset management subsidiary FY23Q3: $135M ( ¥19.1B) FY22: $215M (¥28.7B) Masayoshi SBG Masayoshi Son
Slide 31: Appendix
Appendix
Slide 32: Arm IPO and Accounting Treatment
Arm IPO and Accounting Treatment In September 2023, SBG’s wholly owned subsidiary disposed 10%* of Arm shares in the IPO and received proceeds of $5.12B. The amount equivalent to the gain on the disposal was $4.65B. Arm continues to be SBG’s consolidated subsidiary post-IPO as SBG holds 90%* of
Slide 33: Bridge to Arm's Form F-1 (FY22 P/L)
Arm Segment in SBG’s Consolidated Financial Report Bridge to Arm’s Form F-1 (FY22 P/L) Adjustment (1) Adjustment (2) Adjustment (3) Amortization expenses SBG Consolidated related to intangible Difference in Reflecting the latest assets recognized in accounting available Arm Financial Report Arm segm
Slide 34: SoftBank
SoftBank
Slide 35: Finance
Finance SBG stand-alone financial figures are calculated by excluding those of self- financing entities from the consolidated figures, unless otherwise stated. Major self financing entities includes SBKK (including its subsidiaries such as LY Corporation and PayPay), SVF1, SVF2, LatAm Funds, Arm, et
Slide 36: Current Market Environment
Current Market Environment With the decline in U.S. interest rates, the stock market remains robust, led by large-cap tech and semiconductor stocks. VC Index shows signs of recovery after being sluggish during the interest rate hike phase U.S. Interest Rates U.S. Stock Prices*1 Exchange Rate (USD/JP
Slide 37: Equity Value of Holdings: Stock Performance
Equity Value of Holdings：Stock Performance Our core assets stock prices performing steadily. Arm and Softbank KK outperformed the benchmark Stock Price Changes（Oct 2023 to date) 50% +44% 40% 30% +19% 20% +16% +15% +16% +10% 10% 0% NASDAQ NASDAQ総合 Arm TOPIX SBKK S&P500 T Mobile Tモバイル (Note) Created b
Slide 38: Historical NAV
Historical NAV NAV increased for four consecutive quarters (¥ T) 19.2 +¥5.3T 16.4 15.5 13.9 14.1 Q3 Q4 Q1 Q2 Q3 FY2022 FY2023 （Note）NAV (Net Asset Value) = Adj. SBG stand-alone equity value of holdings – adj. SBG stand-alone net interest-bearing debt Finance 4
Slide 39: Finance Summary in FY2023 Q3
Finance Summary in FY2023 Q3 Strong performance of listed assets contributed to NAV expansion. Financial stability remains unchanged NAV ¥19.2T (+¥2.8T QoQ) LTV 11.5％ (+0.9ppt QoQ) NAV・LTV Net Debt ¥2.5T (+¥0.5T QoQ) *1 Cash Position ¥4.4T (-¥0.7T QoQ) Financial No major financing activities activit
Slide 40: Breakdown of NAV Increase
Breakdown of NAV Increase Equity value of holdings, primarily listed stocks, has increased. No significant change in net interest-bearing debt QoQ (¥T) +¥2.8T *1 Arm ： +3.0 SVF1+2 ： +0.6 T-Mobile ： +0.4 Others ： +0.4 （Decrease of Interest-bearing debt） （Note）NAV (Net Asset Value) = Adj. SBG stand-al
Slide 41: Investment Return on Sprint
Investment Return on Sprint Achieved significant return. Holding equity value equiv. to ¥1.9T* (¥ T) Equity IRR MOIC 26% 8.2x (Deutsche Telekom) (As of Dec 31, 2023) 5.0 5.0 Monetization, etc. 3.1 (Sales, Asset-backed financing, etc.) 2.1 3.4 Borrowings 1.9 Equity value of holdings* (As of Dec 31, 2
Slide 42: Equity Value of Holdings (FY2022Q3-FY2023Q3)
Equity Value of Holdings (FY2022Q3-FY2023Q3) Value of Arm increased by ¥4.3T over the past year. Telecom sector stocks are also performing strongly. All assets steadily achieved growth in value 21.7 (¥ T) Net of asset-backed Completion of finace Alibaba monetization 18.4 16.9 16.9 6.9 15.9 4.3 2.0 0
Slide 43: Portfolio's Core Asset Shifts from Alibaba to Arm
Portfolio’s Core Asset Shifts from Alibaba to Arm Alibaba monetization and the rise in Arm value contributed. Simultaneously, portfolio diversification progressed compared to the end of 2020, and geopolitical risks also decreased Net of asset- Proportion of 75% 57% 44% 73% backed finance listed shar
Slide 44: Proportion of Listed Shares
Proportion of Listed Shares Proportion of listed assets has recovered greatly through Arm IPO. Liquidity of portfolio is at an extremely high level Net of asset- backed finance Unlisted 25% 27% 43% 56% Listed 75% 73% 57% 44% Dec 2020 Dec 2021 Dec 2022 Dec 2023 *Proportion of listed shares includes s
Slide 45: Shifting to AI with a focus on Arm
SBG Share Price From China related to Semiconductor / AI May 11 148 Semiconductor Stocks (SOX) (Q4 Earnings Results) Announced completion of 143 SBG Alibaba monetization 127 Nikkei 225 Shifting to AI with 100 a focus on Arm 82 Chinese Stocks (MSCI China) May 2023 Jul 2023 Sep 2023 Nov 2023 Jan 2024
Slide 46: Invested Amounts (SVF1 + SVF2 + LatAm Funds + SBG)
Invested Amounts (SVF1 + SVF2 + LatAm Funds + SBG) Resumed investment, focused on uncovering superior opportunities ($B) 2.5 SBG 0.2 1.8 1.5 0.9 SVF1+ SVF2+ 2.3 LatAm 1.1 0.5 0.5 0.5 0.1 0.1 0.2 0.9 0.3 0.4 0.4 0.4 0.2 0.3 0.1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 (Note) FY2022 FY2023 Invested amounts by SBG: Invest
Slide 47: Cash Position and Coming Bond Redemptions
Cash Position and Coming Bond Redemptions Maintain ample cash position, well over 2-year worth of bond redemptions Cash position Bond redemption schedule ¥4.4 T *1 (¥ B) Undrawn commitment line*2 704.3 Bond redemptions 3,742.4 for the next 2 years (¥1.9T) ＞ 1,036.2 885.6 1,204.8 528.0 Dec 2023 Jan 2
Slide 48: Cash position: Currency Breakdown and Yield
Cash position: Currency Breakdown and Yield Continuing high yield operations primarily with USD deposits. Securing yields through efficient cash management Yield for Breakdown of cash position*1 SBG USD deposits, etc. 6.0% (¥ T) 5.5% 5.5% 5.2% Yield*2 3.7 5.0% 4.9% 4.5% Subsidiaries 0.2 4.3% US 2Y T
Slide 49: Currency Exchange Impact
Currency Exchange Impact Strong JPY against USD decreases NAV, while increasing consolidated net income FY22 Q4 FY23 Q1 FY23 Q2 FY23 Q3 Forex change since previous quarter end (Forex change in Weaker by Weaker by Weaker by Stronger by USD/JPY) ¥1 (0.6%) ¥11 (8.6%) ¥5 (3.2%) ¥8 (5.2%) Impact on NAV (
Slide 50: Bond Redemption Schedule
Bond Redemption Schedule Bond issuances will be managed with due consideration for cash position and market environment 1,548.0 (¥ B) Domestic senior bonds 296.9 Domestic subordinated bonds Domestic hybrid bonds 1,096.5 Foreign currency-denominated senior notes 222.0 999.0 Foreign currency-denominat
Slide 51: Funding and Fund Management Plans in FY2023
Funding and Fund Management Plans in FY2023 Funding: Mainly for refinance Surplus fund management: Propelling diversification FY2023 is primarily anticipated for refinancing Domestic: Redemption of ~¥400.0B in March 2024 Bond <Reference> Redemptions in FY2024 • Domestic : ¥450.0B (June) • Internatio
Slide 52: SBG Stand-alone Interest-bearing Debt
SBG Stand-alone Interest-bearing Debt*1 Interest-bearing debt (incl. non-recourse) decreased mainly due to decrease in financial liabilities relating to prepaid forward contracts Main changes from September 30, 2023 (¥ B) • Decrease in financial liabilities relating to prepaid forward contracts -¥42
Slide 53: SBG Stand-alone Cash Position
SBG Stand-alone Cash Position Maintain ample cash position 5,171.3 (¥ B) 29.6 4,528.4 41.9 4,397.6 40.6 SB Northstar 3,771.1 28.7 3,173.4 35.6 5,141.6 4,486.5 4,357.0 Main changes from Sep 2023 3,742.4 Increase Decrease 3,137.8 ・Distribution from SVF2, LatAm Funds ・Contribution to SVF2 (-$1.7B)*1 (+
Slide 54: SBG Stand-alone Net Interest-bearing Debt
SBG Stand-alone Net Interest-bearing Debt Adjusted net interest-bearing debt increased but remains at a low level (¥ B) 9,978.8 10,023.3 8,941.6 8,112.2 8,205.2 Finance-related adjustments Asset-backed finance, etc. ¥7,169.9B 7,536.8 8,034.6 Hybrid finance ¥366.9B 5,030.2 6,458.2 7,588.6 Adjusted 3,
Slide 55: 2023 Financial Policy: Prepared For All Market Scenarios
2023 Financial Policy : Prepared For All Market Scenarios Earnings Results for the 9-month period ended December 31, 2022 (Feb 7, 2023) material P15 plotted with S&P 500 index Prospects As of Feb 7, 2023 Scenario 1 Linear early recovery Feb 7 130* Scenario 2 Instability followed by recovery from H2
Slide 56: 2023 Results
2023 Results Controlled LTV at a low level under the financial policy to be prepared for all scenarios. The equity value of holdings increased across all assets, with Arm at its core LTV Track Record*1 Equity Value of Holdings (¥ T) 21.7 16.9 6.9 18.2% 2.0 2.6 11.0% 11.5% 8.3 SVF1+2, LatAm 10.6% 8.0
Slide 57: LTV Track Record
LTV Track Record*1 Secured ample financial reserves through financial management on “defense” in response to the market environment. Moving forward, entering a phase of effectively utilizing leverage for growth-oriented investments Shift towards financial management excelling in both offense and def
Slide 58: Adhering to Financial Policy
Adhering to Financial Policy Maintain LTV below 25% in normal times 1 (upper threshold of 35% even in times of emergency) 2 Maintain at least 2-year worth of bond redemptions in cash Secure recurring distributions and dividend income from 3 SVF and other subsidiaries Finance 24
Slide 59: Our Policy on Supporting Portfolio Companies
Adhering to Financial Policy Our Policy on Supporting Portfolio Companies Portfolio company finances to be No rescue self-financing package Finance 25
Slide 60: FY2023 Financial Strategy
FY2023 Financial Strategy Financial management Adhering to adaptable to financial policy both Defense and Offence Finance 26
Slide 61: Respond to Both Defense and Offence
Respond to Both Defense and Offence Invest in the Defense Information against further downside Revolution, while maintaining financial stability Maintain LTV below 25% in normal times （LTV = 11.5% as of Dec 31, 2023） Maintain at least 2-year worth of bond redemptions in cash （Cash position = ¥4.4T a
Slide 62: Capital Allocation
Capital Allocation New Shareholders investments return* Endeavor to strike a Financial policy balance (Financial stability) * The level of NAV discount is also considered Finance 28
Slide 63: Share Price Movers
Share Price Movers NAV NAV (Net Asset Value) Discount Confidence in NAV Track record of growth growth trajectory (investment strategy) Finance 29
Slide 64: Share Buyback and Share Price (SBG vs. Nikkei 225)
Share Buyback and Share Price (SBG vs. Nikkei 225) 300 200 +72% +67% (Dec 31, 2023) SBG 100 Nikkei 225 ¥0.6T (Feb to May 2019) ¥2.5T (Mar 2020 to May 2021) ¥1.4T (Nov 2021 to Nov 2022) ¥4.5T share buyback in total 0 Jan 2019 Jan 2020 Jan 2021 Jan 2022 Jan 2023 (Note) Indexed with Jan 1, 2019 as 100
Slide 65: NAV and Market Cap
NAV and Market Cap (Dec 31, 2023) NAV growth NAV = most important driver ¥19.2T Market cap ¥9.2T 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 (FY) (Note) As of the end of each quarter For details of NAV, see Appendix “Definition and Calculation Method of SBG’s NAV and LTV (as of
Slide 66: Actions We Need Now
Actions We Need Now Cash position Growth investment NAV is driven by ¥4.4T Reinvestment growth Monetization investments Leveraging debt capacity Financial Shareholders improvement return Q3 LTV remained at low level ¥4.5T returned FY2023 in the past 5 years (Note) Cash position: Cash and cash equiva
Slide 67: Appendix
Appendix
Slide 68: SBG Credit Spread
SBG Credit Spread Spread of SBG foreign currency- SBG 5-year CDS denominated senior notes 700 USD 1.2Y USD 2.7Y 500 SBG 5Y CDS (JPY) bps USD 4.7Y USD 7.7Y bps EUR 0.7Y EUR 3.2Y 450 600 EUR 5.7Y EUR 8.7Y 400 500 350 300 400 250 300 200 200 150 100 100 50 0 0 Dec 2022 Mar 2023 Jun 2023 Sep 2023 Dec 20
Slide 69: Historical Credit Ratings and Financial Condition
Historical Credit Ratings and Financial Condition Acquisition of Acquisition Acquisition Acquisition Listing A+ 14 Japan Telecom of Vodafone KK of Sprint of Arm of SBKK A 13 JCR(A-) A- 12 Outlook Stable BBB+ 11 (since Jan 2023) BBB10 S&P Downgrade BBB-9 （May 2023） S&P (BB) BB+ 8 Outlook Positive BB
Slide 70: Calculation of Equity Value of Holdings as of Dec 31, 2023
Calculation of Equity Value of Holdings as of Dec 31, 2023 $1 = ¥141.83 ¥28.2T （unadjusted） Equity value of holdings Adjustment for (¥ T) Equity value of holdings ー ＝ asset-backed finance (adjusted) （unadjusted） Prepaid Forward Payable Contracts, etc. 923M Share price amount for 4.8 ¥6.9T ＝ ¥8.1T sh
Slide 71: LTV Calculation: SBG Stand-alone Equity Value of Holdings
LTV Calculation: SBG Stand-alone Equity Value of Holdings (L) Adjusted ¥2.49T SBG stand-alone net debt =11.5% (V) Adjusted SBG stand-alone equity value of holdings*1 ¥21.72T (¥ T) Adjusted SBG Major SBG’s interest in Other investments = + + stand-alone equity value of holdings assets SVF1&2 & LatAm
Slide 72: LTV Calculation: Details of Equity Value of Holdings (1/2)
LTV Calculation: Details of SBG Stand-alone Equity Value of Holdings (1/2) (¥ T) Assets Value Calculation method (a)Alibaba 0.01 Multiplying the number of Alibaba ADSs equivalent to the number of shares held by SBG by the Before adjustment 3.84 ADS price Sum of the outstanding maturity settlement am
Slide 73: LTV Calculation: Details of Equity Value of Holdings (2/2)
LTV Calculation: Details of SBG Stand-alone Equity Value of Holdings (2/2) (¥ T) Assets Value Calculation method (g) T-Mobile 1.62 - Value of SBG’s shareholding (92,089,766 shares as of Dec 31, 2023) (incl. the number of shares subject to call options held by Deutsche Telekom (DT): 34,971,809 shares
Slide 74: LTV Calculation: SBG Stand-alone Net Debt
LTV Calculation: SBG Stand-alone Net Debt (L) Adjusted SBG stand-alone net debt*1 ¥2.49T (V) Adjusted SBG stand-alone ¥21.72T =11.5% equity value of holdings (¥ T) Adjusted SBG Consolidated Net debt at self- Other stand-alone net debt = net debt - financing entities - adjustments 2.49 14.76 4.74 7.5
Slide 75: LTV Calculation: Details of SBG Stand-alone Net Debt
LTV Calculation: Details of SBG Stand-alone Net Debt (¥ T) SBG stand-alone net debt Consolidated net interest-bearing debt - net interest-bearing debt (before adjustment) 10.02 at self-financing entities*1 For hybrid bonds and hybrid loans with maturity dates, deduct 50% from interest-bearing debt;
Slide 76: Adjustment for Asset-backed Finance in LTV and NAV Calculation
Adjustment for Asset-backed Finance in LTV and NAV Calculation Non-recourse asset-backed finance is deducted from debt. Value of assets required for settlement is deducted from assets. (¥ T) Forward/Collar/Put 1 transactions 2 Margin loan 28.2 Main shares Alibaba SBKK, Arm used 1 4.8 Asset-backed fi
Slide 77: Forward Transaction / Collar Transaction
Forward Transaction / Collar Transaction Objective Non-recourse financing using derivatives • Transaction where parties agree to settle at a pre-specified price or price range at a specific date in the future • Finance through pledged shares and derivatives referencing them Outline • Settlement at m
Slide 78: Beneficial Ownership of Alibaba Shares
Beneficial Ownership of Alibaba Shares Fully monetized Alibaba shares through prepaid forward contracts Beneficial 13.5% 13.7% 13.8% 13.9% 13.8% ownership Used for prepaid forward contracts Dec 2022 *1 Mar 2023 *2 Jun 2023 *3 Sep 2023 *4 Dec 2023 *5 *1 Calculated based on the number of ordinary shar
Slide 79: Geographical Portfolio Diversification
Geographical Portfolio Diversification Proportion of China decreased significantly Proportion of EMEA increased significantly due to growth of Arm’s value Net of asset-backed finance 8% China 15% 31% 15% Japan 18% APAC 9% (excluding China and Japan） 11% 12% 9% EMEA 43% 27% 20% 4% 5% 4% Latin America
Slide 80: Fixed/Floating Ratio of Interest-bearing Debt
Debt Fixed/Floating Ratio of Interest-bearing Debt No risk of surge in interest payments from short-term interest rate rise Fixed/Floating Ratio of SBG Stand-alone Interest-bearing Debt*1 Floating rate; USD Floating rate; JPY*4 14% 10% 1 ppt rise in USD interest rate ¥8.2B interest payment results i
Slide 81: Breakdown by Currency
Breakdown by Currency Investment and monetization flows are mainly in dollars, while debt refinancing is principally in the same currency Investments and monetization Debt composition Cash position: ¥3.7T*1 Equity value of holdings: ¥21.7T*2 Debt*3: ¥6.5T Subsidiaries EUR Net of asset- JPY backed fi
Slide 82: Consolidated Interest-bearing Debt/ Cash Position/ Net Debt
Consolidated Interest-bearing Debt/ Cash Position/ Net Interest-bearing Debt Consolidated Interest-bearing Debt*1 (¥ B) Dec 2022 Mar 2023 Jun 2023 Sep 2023 Dec 2023 SBG stand-alone 11,250.0 12,691.7 14,083.3 14,335.8 13,765.7 Incl. SB Northstar - - - - - SVF1&2 and LatAm Funds 1,319.9 1,322.7 1,419.
Slide 83: SoftBank Vision & LatAm Funds Investor Briefing
QUARTER ENDED DECEMBER 31, 2023 Investor Briefing SoftBank Vision & LatAm Funds NAVNEET GOVIL CFO, SB Investment Advisers & SB Global Advisers
Slide 84: 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 85: 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 86: Topics
4 Topics 01- Progress & Highlights 02- Performance & Impact on SoftBank Group (SBG) 03- In Focus: 2023 Year in Review
Slide 87: Progress & Highlights
5 Progress & Highlights
Slide 88: 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 89: 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 90: Quarterly Performance
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 91: 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 92: 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 93: 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 94: 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 95: Our China Portfolio Remains Resilient
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 96: Performance & Impact on SoftBank Group (SBG)
14 Performance & Impact on SoftBank Group (SBG)
Slide 97: 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 98: SVF1 Contribution to SBG
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 99: SVF2 Contribution to SBG
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 100: LatAm Contribution to SBG
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 101: In Focus: 2023 Year in Review
19 In Focus: 2023 Year in Review
Slide 102: 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 103: 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 104: 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 105: Achieved Listings & Expanded IPO Pipeline
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 106: 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 107: 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 108: 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 109: 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 110: Thank You
28 Thank You SoftBank Vision & LatAm Funds Investor Briefing Presentations Available at visionfund.com/presentations
Slide 111: Arm Holdings plc SoftBank Investor Briefing
Ver1.2 Arm Holdings plc SoftBank Investor Briefing Ian Thornton, Head of Investor Relations investor.relations@arm.com https://investors.arm.com AI-generated image February 2024 © 2024 Arm
Slide 112: Nomenclature difference between Arm and SoftBank Group
Nomenclature difference between Arm and SoftBank Group Fiscal year ending March 31, 2024 Fiscal year ending March 31, 2024 FY2023 FYE24 2 © 2024 Arm
Slide 113: Q3 FYE24 – From Revenues to Profits to Cash
Q3 FYE24 – From Revenues to Profits to Cash 97% 41% 30% NG GP Margin Non-GAAP Revenue Operating to Cash $824m $27m $797m $459m2 Margin Conversion Royalty Revenue $338m2 $251m Data License from Revenue Q3 FYE24 Revenue Non-GAAP Non-GAAP Non-GAAP Non-GAAP1 Non-GAAP1 Cost of Sales Gross Profit Operatin
Slide 114: Monthly Semiconductor Industry Revenue
World Semiconductor Trade Statistics (WSTS) Semi Revenue Arm Addressable Semiconductor Revenue up +26% Y/Y in December, up +21% for December Quarter Arm Addressable Semiconductor Market $ (Bs) Y/Y Growth Monthly Semiconductor Industry Revenue [$bn] Revenue Industry Revenue Growth Y/Y [%] 2018 2019 2
Slide 115: Arm's new business model is driving more business
Arm’s new business model is driving more business Arm Total Access Long term subscription-based access to an extensive portfolio of more than 300 CPUs, GPUs and other IP including Arm’s latest products Cumulative number of extant Arm Total Access licenses signed 27 18 8 4 FYE21 FYE22 FYE23 YTD FYE24
Slide 116: Arm's Long-term growth drivers
Arm’s Long-term growth drivers Royalty revenue will drive growth as Royalty • Semiconductor industry grows, revenue •• Arm gains share in servers and automotive Arm receives a higher royalty rate for its latest technology such as Armv9 Energy- Generative AI and LLMs need: efficient • Energy efficien
Slide 117: Guidance
Guidance Q4 FYE 24 FYE 24 Revenue ($m) $850m - $900m $3,155m - $3,205m Non-GAAP Operating Expense ($m)1 ~$490m ~$1,700m Non-GAAP fully diluted earnings per share ($)1 $0.28 - $0.33 $1.20 - $1.24 Note 1: Excludes employer taxes related to equity-classified awards vesting within the quarter, net of th
Slide 118: SoftBank
SoftBank