Softbank Group Corp. · TSE:9984
Softbank — FY2022 Earnings Presentation
112 slides from Softbank's earnings presentation, May 11, 2023
Slide 1: Earnings Results for the Fiscal Year Ended March 31, 2023
Ver.1.2 Earnings Results for the Fiscal Year Ended March 31, 2023 Investor Briefing May 11, 2023 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 FY2021 FY2022 Average during quarter Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1 USD 110.00 110.47 113.60 117.10 129.04 138.68 141.16 133.26 EOQ Jun 30 Sep 30 Dec 31 Mar 31 Jun 30 Sep 30 Dec 31 Mar 31 1 USD 122.39 133.53 Abbreviations Abbreviations used in Accounting and Fi
Slide 4: Index
Index • Accounting • Finance • SoftBank Vision & LatAm Funds
Slide 5: Accounting
Accounting
Slide 6: Consolidated Results
Consolidated Results (¥ B) FY21 FY22 Change Change % Net sales 6,221.5 6,570.4 +348.9 +5.6% Income before -869.6 -469.1 +400.4 - income tax Net income (attributable to owners of the -1,708.0 -970.1 +737.9 - parent) (Reference) Loss on investments -3,434.7 -835.1 +2,599.7 - Investment Business of Hol
Slide 7: Investment Business of Holding Companies Segment
Investment Business of Holding Companies Segment □：Alibaba-related □：TMo&DT-related □：WeWork-related (¥ B) P/L item FY21 FY22 FY22 Main Items Gain/loss on investments at Investment Business of 104.1 4,560.6 Holding Companies Gain/loss relating to settlement of prepaid forward 200.0 4,838.3 See p4-5
Slide 8: Alibaba: Transactions in FY2022
Alibaba: Transactions in FY2022 Scope of Ownership % consolidation As of Mar 31, 2022 24.4％*1 Procurement of $10.5B through prepaid forward contracts Apr-Jun Equity method Physical settlement of prepaid forward contracts associate Procurement of $6.8B through prepaid forward Jul contracts Early phys
Slide 9: Alibaba: Contribution to Income Before Income Tax
Alibaba: Contribution to Income Before Income Tax Recorded a total of ¥4.3T profit related to Alibaba shares in FY2022 (¥ B) Gains and losses while an associate Loss on equity method investment -25.4 Gain from changes in equity interest (net) 75.7 Gain on settlement of prepaid forward contracts usin
Slide 10: Alibaba (Amounts Recorded in B/S)
Alibaba (Amounts Recorded in B/S) Equity method Investment securities (FVTPL) investments Excluded from Recorded in “investment securities” as Alibaba share price associates financial assets at FVTPL with investment Increment by income on equity results measured at fair value method investments, etc
Slide 11: Alibaba Shares and Derivative Financial Assets/Liabilities
Alibaba Shares and Derivative Financial Assets/Liabilities (Amount Recorded in B/S) Value of Alibaba shares recorded in B/S Derivative financial Investment securities (FVTPL) assets/liabilities (net) considering prepaid forward contracts: Alibaba share price $102.18 $102.18 $33,214M ( A + B ) $79.99
Slide 12: Monetization of T-Mobile Shares
Monetization of T-Mobile Shares Number of shares held Procured (millions) Execution Transaction amount Deutsche timing T-Mobile ($ B) Telekom shares shares a Borrowings made using 106.3M T-Mobile shares pledged as collateral (margin loan) 4.38 Jul 2020 Number of shares held as of Jun 30, 2021 106.3
Slide 13: T-Mobile: Shareholding & Fair Values
T-Mobile: Shareholding & Fair Values includes shares subject to Deutsche Telekom’s call options T-Mobile $144.84 Sold 21.2M T-Mobile shares in Apr share price $144.83 $140.00 2022 $134.54 $134.17 $127.76 $128.35 following Deutsche Telekom's partial exercise of $125.29 call options, which were exerci
Slide 14: Deutsche Telekom: Shareholding & Fair Values
Deutsche Telekom: Shareholding & Fair Values Acquired 225M Deutsche Telekom shares in Sep 2021 in return for the sale of T-Mobile €22.35 shares. Deutsche Telekom share price €18.95 €18.64 €17.67 €17.40 €17.49 $1,231.0M (¥164.81B) €16.93 €16.30 valuation gain for FY22Q1-Q4 Fair value of Deutsche 5,46
Slide 15: T-Mobile Shares: Fair Values of Contingent Consideration
T-Mobile Shares: Fair Values of Contingent Consideration Closing price on May 8, 2023: $144.18 $144.83 Contingent consideration is $140.00 $144.84 the Company’s right to T-Mobile $134.85 $134.54 $134.17 $127.76 $128.35 acquire 48.8M share price $125.29 T-Mobile shares for no $114.36 $115.98 $1,411.7
Slide 16: Status of Investment and Financial Support for WeWork
Status of Investment and Financial Support for WeWork (¥ B) P/L B/S Carrying amount Account Amount Changes since Apr 2023 on Mar 31, 2023 (as in the notes to the (Minus Account (Minus shows financial statements) shows loss) liabilities) Loss on investments at -340.4 Investments from SVF 43.1 SoftBan
Slide 17: SoftBank Vision Funds Segment
SoftBank Vision Funds Segment (¥ B) P/L FY21 FY22 FY22 Main Items Gain/loss on investments at SoftBank Vision Funds -3,434.5 -5,279.5 Gain/loss on investments at SVF1, SVF2, and LatAm -3,436.4 -5,298.5 ¥2,311.2B loss at SVF1, ¥2,445.4B loss at SVF2 Funds Realized gain/loss on investments* 1,345.6 78
Slide 18: Investment Performance of SVF1 and SVF2
(Reference) Investment Performance of SVF1 and SVF2 ($ B) Since Inception FY22*1 Gain/loss Gain/loss Cost*2 Returns*2 Gain/loss Q4 YTD SVF1 89.6 101.0 11.4 0.4 -17.3 Exited investments 24.0 42.7 18.7 0.3 0.6 Investments before exit 65.6 55.9 -9.7 0.2 -14.7 Reversal of previously-recorded valuation g
Slide 19: Consolidated P/L Summary
Consolidated P/L Summary (¥ B) P/L item FY21 FY22 Change Net sales 6,221.5 6,570.4 +348.9 1 ¥4,838.3B gain on settlement of Alibaba prepaid forward Gross profit 3,265.6 3,328.0 +62.5 contracts (see p4-5) Gain/loss on investments 2 Valuation loss (net) of ¥1,952.0B at SVF1 and ¥2,527.5B at Investment
Slide 20: Difference in Tax Rate
Difference in Tax Rate (Minuses show expenses) FY22 Rate (％) Amount (¥ B) Income before income tax (minus: loss) -469.1 Effective statutory tax rate 31.5％ *1 147.6 (Main factors of difference) (i) Permanent difference -307.1% -1,440.8 (ii) Recoverability of deferred tax assets 145.4% 682.2 (iii) Tem
Slide 21: Loss Carryforwards
Loss Carryforwards (as of Mar 31, 2023) (¥ B) Valuation Carrying amounts Income base Tax base allowance in B/S Total of companies 2,923.2 882.6 -314.0 568.6 based in Japan Total of companies 203.0 45.1 -21.2 23.9 based outside of Japan Consolidated total 3,126.2 927.7 -335.2 592.5 Accounting 17
Slide 22: Consolidated B/S Summary – Non-current assets
Consolidated B/S Summary – 1 (¥ B) B/S 1 SBG balance: ¥3,454.5B (¥951.8B increase) Main items Mar 2022 Mar 2023 Change item 2 ¥1,033.6B decrease due to the full settlement of Alibaba prepaid forward contracts Current assets 10,028.6 10,586.5 +557.9 outstanding at FY21Q4 Cash and cash equivalents 5,1
Slide 23: Investment Securities in Consolidated B/S
Investment Securities in Consolidated B/S (Main Investments) (¥ B) Mar 2022 Mar 2023 Change Outline Investment securities 3,085.4 7,706.5 +4,621.1 FVTPL 2,587.6 7,244.3 +4,656.7 Alibaba shares carrying amount at FY22 was ¥4,842.3B, mainly reflecting an increase in the 4,842.3 +4,842.3 Alibaba share
Slide 24: Breakdown of Goodwill/Intangible Assets
Breakdown of Goodwill/Intangible Assets (¥ B) Change B/S Main items Mar 2022 Mar 2023 Amorti- Outline Item Changes in Others zation FX rate 4,897.9 5,199.5 * Arm 2,898.1 3,161.7 ― +263.6 ― Goodwill SBKK 913.9 913.9 ― ― ― LINE 630.6 628.9 ― ― ― ZOZO 212.9 212.8 ― ― ― Technologies 357.7 344.3 Main Arm
Slide 25: Consolidated B/S Summary – Non-current liabilities
Consolidated B/S Summary – 2 (¥ B) B/S Main items Mar 2022 Mar 2023 Change 1 SBG item Borrowings*: ¥381.9B (¥873.3B decrease) 12,381.5 10,580.7 -1,800.8 Corporate bonds*: ¥5,753.0B (¥165.2B decrease) Interest-bearing debt 7,328.9 1 5,129.0 -2,199.8 Wholly owned subsidiaries conducting fund procureme
Slide 26: Consolidated B/S Summary – Equity
Consolidated B/S Summary – 3 (¥ B) Mar Mar Items Change 2022 2023 11,707.8 10,649.2 -1,058.5 1 Repurchased $0.75B (face value) of USD-denominated Undated Hybrid Notes*1 Common stock 238.8 238.8 ― 2 ・¥1,412.4B*2 was deducted following the retirement of treasury stock Capital surplus 2,634.6 2,652.8 +
Slide 27: 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 28: Impact of the Weaker Yen in FY22
Impact of the Weaker Yen in FY22 Foreign exchange loss in consolidated P/L for FY22: ¥772.3B At SBG stand-alone: Foreign exchange losses of ¥927.5B related to foreign currency-denominated borrowings from Group companies, ¥96.8B related to foreign currency-denominated bonds (incl. hybrid bonds) Mar 3
Slide 29: Consolidated C/F Summary
Consolidated C/F Summary (¥ B) C/F 1 ¥1,984.2B decrease in a net inflow yoy FY21 FY22 Primary details for FY22 ・¥1,918.4B decrease in SB Northstar’s cash inflows item +1,573.6 Subtotal of cash flows from operating activities ・¥235.6B decrease in outlay for income taxes compared to FY21 C/F from 1 op
Slide 30: Cash Tax
Cash Tax SBG’s wholly owned subsidiary paid ¥201.8B cash tax in FY22Q3 mainly due to the realization of derivative gain related to the early physical settlement of Alibaba prepaid forward contracts in Aug – Sep 2022 SBG will pay ¥225.6B cash tax in FY23Q1 mainly due to gain on sale of Alibaba shares
Slide 31: Income Taxes Paid on a Consolidated Basis (Net)
Income Taxes Paid on a Consolidated Basis (Net) (¥ B) FY19 FY20 FY21 FY22 Consolidated 636.3 445.5 589.3 525.9 Japan 575.2 310.5 551.2 469.7 SBG and holding companies (wholly 324.7 35.7 200.0 214.2 owned subsidiaries) Operating companies, mainly 250.5 274.8 351.2 255.5 SBKK and Yahoo Japan Overseas
Slide 32: Co-investment Program to SVF2: Related Party Transactions
Co-investment Program to SVF2: Related Party Transactions Equity interests of third-party interests Masayoshi SBG FY22: $― (¥―) Son* 1 FY21: $2,207M (¥270.1B) Equity interests: 17.25% (B) (A) Distribution: $173M Equity acquisition amount: $2,923M 100% (Return of capital) (i) Acquisition costs: $2,59
Slide 33: 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 FY22: $215M ( ¥28.7B) FY21: $659M (¥80.7B) Masayoshi SBG Masayoshi Son S
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 Z Holdings and PayPay), SVF1, SVF2, LatAm Funds, and Arm.
Slide 36: How We See the Current Environment
How We See the Current Environment Stock markets remained vulnerable and volatile in FY2022 due to rising interest rates. However, we now see a return to stability. U.S. Interest Rates U.S. Stock Price*1 Stock Volatility FF Target Rate (upper bound) S&P500 (%) US Treasury 2Y VIX Index May 8, 2023 US
Slide 37: Financial Management Focused on Defense
Financial Management Focused on Defense Enhanced financial stability while continuing shareholder returns Shareholder New Returns Financial ¥1.1T Investments Significant investment Stability share repurchase curbs (completed) Large scale monetization Debt reduction Finance 3
Slide 38: Historical NAV
Historical NAV NAV declined YoY due to challenging market conditions; but has slightly increased QoQ. NAV （¥ T） Decreased by ¥4.4T 18.5 18.5 YoY 16.7 13.9 14.1 Mar 2022 Jun 2022 Sep 2022 Dec 2022 Mar 2023 Finance 4
Slide 39: Net Debt and LTV
Financial Management Focused on Defense LTV significantly lower (improved) due to reduction in net debt Net Debt*1 LTV （¥ T） Reduced Declined 4.7 by ¥3.0T by 9.4pp YoY 20.4% YoY 18.2% 3.1 3.1 3.0 1.7 15.0% 14.5% 11.0% Mar 2022 Jun 2022 Sep 2022 Dec 2022 Mar 2023 Mar 2022 Jun 2022 Sep 2022 Dec 2022 M
Slide 40: Summary of FY2022
Summary of FY2022 Enhanced financial stability through large-scale monetization and substantial investment curbs NAV of ¥14.1T: -¥4.4T YoY LTV of 11.0％: -9.4pp YoY NAV・LTV Net debt of ¥1.7T: -¥3.0T YoY Cash position of ¥5.1T*1: +¥2.3T YoY Large scale monetization and debt reduction - Monetization of
Slide 41: Main Financing Activities since FY2022Q4
Main Financing Activities since FY2022Q4 Continued defensive financial management. Fully refinanced Hybrid bonds Jan - Mar (FY2022Q4)*1 Alibaba forward transactions (Jan-Mar) +$11.0B +¥1,471.2B Asset-backed equivalent finance etc. Refinance of SBKK margin loan (Feb) $3.8B ¥500.0B equivalent Apr - Ma
Slide 42: Financing Activities Results (FY2022)
Financing Activities Results (FY2022) Effectively used funds from asset-backed finance to reduce debt and repurchase shares +5.7 (¥ T) -0.4 SVF investments Debt -2.4 repayment Monetization Share 5.1 -1.1 repurchase 0.6 Undrawn commitment -0.1 line Undrawn 2.9 -3.8 commitment 0.1 line 4.5 2.7 Cash po
Slide 43: Invested Amounts (SVF1+2)
Invested Amounts (SVF1+2) Significantly curtailed investments FY2021 $44.3B ($B) 15.6 14.1 9.6 5.0 FY2022 $3.1B 2.2 0.3 0.3 0.4 FY2021Q1 FY2021Q2 FY2021Q3 FY2021Q4 FY2022Q1 FY2022Q2 FY2022Q3 FY2022Q4 (Note) The sum of new and follow-on investments, including those through share exchanges Finance 9
Slide 44: Debt Reduction (FY2022)
Debt Reduction (FY2022) Redemption / repurchase of bonds Total ¥442.0B*1 Repayment of Total ¥1,007.8B*2 Total ¥2.4T margin loans reduction Repayment of Total ¥915.9B bank loans (Note) Exchange rates: translated to JPY by using average exchange rate for each quarter *1 Face value. Net of ¥385.0B incr
Slide 45: Historical Share Repurchases
Historical Share Repurchases Repurchased ~¥4.5T worth of shares in the last 5 years (¥ B) 2,226.2 Repurchase based on 1,055.4 ¥4.5T program*1 602.4 384.1 232.0 FY2018 FY2019 FY2020 FY2021 FY2022 *1 Repurchase for ¥4.5T program is ¥1,742.2B in FY2020 and ¥257.8B in FY2021. Finance 11
Slide 46: Monetization of Alibaba Shares
Monetization of Alibaba Shares Large scale monetization of $35.5B in FY2022 Totaling $35.5B in FY2022 ($B) 11.0 10.5 7.9 6.1 4.1 Q1 Q2 Q3 Q4 Q1 FY2022 FY2023 as of May 11, 2023 Finance 12
Slide 47: Beneficial Ownership of Alibaba Shares
Beneficial Ownership of Alibaba Shares Largely completed monetization through prepaid forward contracts Beneficial 23.7% ownership Used for prepaid forward 14.6% 13.7% 13.7% 13.5% contracts *5 *1 *2 *3 *4 *4 Jun 2022 Sep 2022 Dec 2022 Mar 2023 As of 本日時点 May 11, 2023 *1 Calculated based on 21,357,32
Slide 48: Monetizing Alibaba Shares
Monetizing Alibaba Shares Completed a large-scale ~¥10T*1 monetization ¥9.7T IRR 57% *2 (From 2000 to May 11, 2023) ¥7.4B Invested 投資総額 Monetized 資金化総額 (Note) The total amount of investment and the total amount of monetization are calculated using historical foreign exchange rates. *1 The total amou
Slide 49: Equity Value of Holdings: Diversified Portfolio
Equity Value of Holdings: Diversified Portfolio Continued diversification of portfolio excl. asset-backed finance Mar 31, 2022 Mar 31, 2023 % of listed shares*1 % of listed 41% shares *1 (net of asset-backed finance) (net of asset-backed finance) Others Alibaba 52% Others 41% Arm 8% Alibaba 8% 5% SB
Slide 50: Diversified Portfolio
Diversified Portfolio The proportion of China investments decreased significantly; leading to greater geographical diversification of assets % by regions of assets held excl. asset-backed finance 14% China 30% 50% 18% Japan 11% 12% APAC （excluding Japan and China） 9% 8% 20% 27% EMEA 8% 12% 4% 5% Lat
Slide 51: Arm Offering Plans
Arm Offering Plans Arm has confidentially submitted a draft registration statement on Form F-1 to the U.S. Securities and Exchange Commission. The size and price range for the proposed offering have yet to be determined. The initial public offering is subject to market and other conditions and the c
Slide 52: Liquidity of Portfolio
Liquidity of Portfolio Maintained high proportion of listed shares + cash position even after monetization of listed shares excl. asset-backed finance 100% 80% Expect Unlisted shares Monetization of Unlisted shares further upside with listing of 60% listed shares shares held Cash position Listed Cas
Slide 53: Historical SBG Stand-alone Cash Position
Historical SBG Stand-alone Cash Position The largest cash position in the last 5 years (¥ T) 5.1 *1 Undrawn 0.6 commitment line*2 2.9 2.9 0.3 0.1 4.5 1.8 1.8 1.4 0.2 2.6 2.7 1.6 1.8 1.4 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 *1 Cash and cash equivalents + short term investments record
Slide 54: Cash Position
Cash Position Maintain ample cash position, well over 2-year worth of bond redemptions Cash position Bond redemption schedule ¥5.1T *1 (¥ B) 649.8 Undrawn commitment line*2 ＞ 4,486.5 Bond redemptions for the next 2 years (¥1.5T) 803.7 999.4 1,089.7 689.6 Mar 2023 Apr 2023 Apr 2024 Apr 2025 Apr 2026
Slide 55: Status of Cash Deposit
Status of Cash Deposit Surplus funds are deposited across several credible banks and mainly managed in USD Average interest rates*2 for Breakdown of cash position*1 SBG USD deposits, etc. 4.5 (¥ T) 5.00% 4.92% Investment 4.46% return 4.03% Subsidiaries’ 1.0 US 2-year 4.00% cash position 3.47% treasu
Slide 56: Debt Fixed/Floating Ratio
Debt Fixed/Floating Ratio (No Financial Risk from Interest Rate Hike） Minimal impact on interest payment from interest rate swings Fixed/Floating Ratio • Only 23% of SBG Debt is at floating rates of SBG Stand-alone Debt*1 • Impacts on USD are offset by higher Floating rate; Floating rate; interest i
Slide 57: Bond Redemption Schedule
Bond Redemption Schedule Redemptions will be funded by carefully managed bond issuance with due consideration for cash position and market environment Domestic senior bonds （¥ B） 1,544.6 Domestic subordinated bonds Domestic hybrid bonds 293.5 Foreign currency-denominated senior notes Refinance Forei
Slide 58: Replacement of Hybrid bonds
Replacement of Hybrid bonds Completed refinance in preparation for early redemption of USD-denominated Hybrid bonds in July 2023 2 nd Hybrid Loan $750M Mizuho Bank Sumitomo Mitsui Banking Corporation (Repurchased Participating MUFG Bank in Oct 2022) banks Sumitomo Mitsui Trust Bank SBI Shinsei Bank
Slide 59: Refinancing of Domestic Bonds
Refinancing of Domestic Bonds Remain committed to maintaining a cash position > 2 years of bond redemptions. In addition, the virtuous cycle of issuance and redemption of domestic bonds has sustained (¥ B) Domestic bonds issued 1,550.0 1,455.0 971.0 1,000.0 450.0 470.0 450.0 385.0 177.0 205.0 120.0
Slide 60: Funding Plan in FY2023
Funding Plan in FY2023 In FY2023, funding will be mainly for refinancing The principal focus is on refinancing. No plans for active fundraising in sight at this moment Domestic: Refinancing of domestic senior retail bonds maturing at the Bonds end of FY2023 International: Completed refinancing of Hy
Slide 61: SBG Stand-alone Interest-bearing Debt
SBG Stand-alone Interest-bearing Debt*1 Reduced debts by ~¥2.2T from Mar 2022 (incl. non-recourse debts) Main changes from Dec 2022 (¥ B) 15,842.9 14,918.7 • New conclusion of Alibaba prepaid forward contracts +$11.0B Breakdown (Mar 31, 2023) (¥ B) 12,691.7 SBG borrowings vs. Dec 31 12,065.7 11,250.
Slide 62: SBG Stand-alone Cash Position
SBG Stand-alone Cash Position ¥1.4T increase from Mar 2022, even after significant debt reduction (¥ B) 4,528.4 41.9 Cash position of 3,944.8 SB Northstar 127.1 3,637.4 76.6 3,173.4 3,079.9 35.6 Main changes from December 2022 330.0 Increase Decrease ・New conclusion of Alibaba ・Repayment of SBKK mar
Slide 63: SBG Stand-alone Net Interest-bearing Debt
SBG Stand-alone Net Interest-bearing Debt Adjusted net debt significantly decreased to a low-level of ¥1.7T (¥ B) excl. SB Northstar 12,135.3 12,021.0 8,504.9 8,112.2 8,205.2 7,411.2 8,871.8 5,549.1 5,030.2 Finance-related adjustments 6,458.2 Asset-backed finance, etc. ¥6,329.0B Hybrid finance ¥129.
Slide 64: Historical SBG Credit Rating
Historical SBG Credit Rating Acquisition of Acquisition of Acquisition Acquisition Listing A+ 14 Japan Telecom Vodafone KK of Sprint of Arm of SBKK A 13 JCR (A－) A- 12 Outlook Stable (Since Jan 2023) BBB+11 BBB 10 BBB- 9 S&P (BB＋) BB+ 8 Outlook Negative (Since Nov 2022) BB 7 BB- 6 B+ 5 4 '03 '04 '05
Slide 65: Communication with Rating Agencies
Communication with Rating Agencies Improved our financials enough to eliminate credit rating agencies’ concerns, with our management team in close communication Rating agencies’ concerns Our current status The proportion is expected to recover significantly when Arm’s proposed initial public offerin
Slide 66: SBG Credit Spread
SBG Credit Spread Temporarily widened in March 2023 due to concerns about US financial system Spread of SBG foreign currency- SBG 5-year CDS denominated senior notes 800 600 bps bps 700 500 600 400 500 400 300 300 200 200 SBG 5Y CDS (JPY) USD 3.0Y USD 4.5Y USD 6.5Y USD 9.5Y 100 100 EUR 2.5Y EUR 5.0Y
Slide 67: FY2023 Financial Strategy
FY2023 Financial Strategy Financial management Adhering to adaptable to financial policy both defense and offense Finance 33
Slide 68: Adherence to Financial Policy
Adherence to Financial Policy Maintain LTV below 25% in normal times 1 (upper threshold of 35% even in times of emergency) Maintain at least 2-year worth of bond redemptions 2 in cash Secure recurring distributions and dividend 3 income from SVF and other subsidiaries Finance 34
Slide 69: Respond to Both Defense and Offense
Respond to Both Defense and Offense Invest in the Defense against Information further downside Revolution, while maintaining financial stability Maintain LTV below 25% in normal times (LTV＝11.0% as of Mar 31, 2023) Maintain at least 2-year worth of bond redemptions in cash (Cash position＝¥5.1T as of
Slide 70: Appendix
Appendix
Slide 71: Calculation of Equity Value of Holdings as of Mar 31, 2023
Calculation of Equity Value of Holdings as of Mar 31, 2023 $1 = ¥133.53 (¥ T) Equity value of holdings Equity value of holdings Adjustment for ＝ ー (adjusted) （unadjusted） asset-backed finance ¥22.5T （unadjusted） ¥0.7T ＝ ¥4.8T 355M shares held*1 × Share price ＄102.18*1 ー Prepaid forward contract, etc
Slide 72: LTV Calculation: SBG Stand-alone Equity Value of Holdings
LTV Calculation: SBG Stand-alone Equity Value of Holdings (L) Adjusted ¥1.75T SBG stand-alone net debt =11.0% (V) Adjusted SBG stand-alone equity value of holdings*1 ¥15.87T (¥ T) Adjusted SBG Major SBG’s interest in Other Investments = + + stand-alone equity in listed stocks, etc. value of holdings
Slide 73: 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 0.71 Multiplying the number of Alibaba ADSs equivalent to the number of shares held by SBG by Before adjustment 4.84 the ADS price Sum of the outstanding maturity settlement a
Slide 74: 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 1.23 summing - Value of SBG’s shareholding (incl. the number of shares subject to call options held by Deutsche Telekom (DT): 34,971,809 shares as of Mar 31, 2023) × the shar
Slide 75: LTV Calculation: SBG Stand-alone Net Debt
LTV Calculation: SBG Stand-alone Net Debt (L) Adjusted SBG stand-alone net debt*1 ¥1.75T (V) Adjusted SBG stand-alone ¥15.87T =11.0% equity value of holdings (¥ T) Adjusted SBG Consolidated Net debt at self- Other stand-alone net debt = net debt - financing entities - adjustments 1.75 13.59 5.38 6.4
Slide 76: 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, (before adjustment) 8.21 net of interest-bearing debt at self-financing entities - Add 50% to interest-bearing debt (to treat it as liability) for USD Hybrid Notes issued in Ju
Slide 77: 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 22.5 (¥ T) Collar/Forward/Put 1 2 Margin loan, etc. transactions 1 Main shares 5.0 Asset-backed Alibaba SBKK, Arm us
Slide 78: (Ref.) Forward Transaction / Collar Transaction
(Ref.) 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 • Settleme
Slide 79: Consolidated Interest-bearing Debt/ Cash Position/ Net Debt
Consolidated Interest-bearing Debt/ Cash Position/ Net Interest-bearing Debt Consolidated Interest-bearing Debt*1 (\ B) Mar 2022 Jun 2022 Sep 2022 Dec 2022 Mar 2023 SBG stand-alone 14,918.7 15,842.9 12,065.7 11,250.0 12,691.7 Incl. SB Northstar 33.5 4.2 - - - SVF1&2 and LatAm Funds 1,077.3 1,413.4 1
Slide 80: SoftBank
SoftBank
Slide 81: Investor Briefing: SoftBank Vision & LatAm Funds
QUARTER ENDED MARCH 31, 2023 Investor Briefing SoftBank Vision & LatAm Funds NAVNEET GOVIL CFO, Member of the Executive Committee, SB Global Advisers Deputy CEO, SB Investment Advisers
Slide 82: 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 83: 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 84: Topics
4 Topics 01- Progress & Highlights 02- Performance & Impact on SoftBank Group (SBG) 03- In Focus: A Diversified Global Portfolio
Slide 85: Progress & Highlights
5 Progress & Highlights
Slide 86: Challenging Market Backdrop
SVF1 SVF2 LATAM PROGRESS & HIGHLIGHTS 6 Challenging Market Backdrop As of March 31, 2023 Tightening Sustained Financial Sector Monetary Policy Market Volatility Instability Federal Funds Target Rate1 Chicago Board Options Exchange's Volatility Index2 January 2022 – March 2023 January 2022 – March 20
Slide 87: Impact of SVB Insolvency Mitigated by Regulatory Action
SVF1 SVF2 LATAM PROGRESS & HIGHLIGHTS 7 Impact of SVB Insolvency Mitigated by Regulatory Action As of March 31, 2023 OUR RESPONSE Immediate portfolio company engagement to MARCH 12, 20231 support risk assessments and contingency planning The Treasury, Federal Reserve, Evaluation of bridge financing
Slide 88: Portfolio Companies Continue to Be Well-Capitalized
SVF1 SVF2 LATAM PROGRESS & HIGHLIGHTS 8 Portfolio Companies Continue to Be Well-Capitalized As of March 31, 2023 PORTFOLIO COMPANIES WITH 12+ MONTHS CASH RUNWAY By Fair Value1 98% SVF1 90% SVF2 84% LATAM Footnotes: 1. Source: SBIA Analysis. Based on the fair value of private portfolio companies with
Slide 89: A Deliberate & Selective Approach to Investing
SVF2 9 SELECT NEW INVESTMENTS – LAST TWELVE MONTHS1 Healthcare analytics software The world’s first SaaS buying platform2 Provides shoppable video and livestreaming commerce capabilities PROGRESS & HIGHLIGHTS AI-enabled and autonomous robotics-powered movement technology platform A Deliberate & Sele
Slide 90: Remaining Steadfast Investors in the AI Revolution
SVF1 SVF2 LATAM PROGRESS & HIGHLIGHTS 10 …While Remaining Steadfast Investors in the AI Revolution AI REACHES THE MAINSTREAM1 SELECT INVESTMENTS BY AI LAYER 2 ChatGPT is estimated to have hit 100mm users in January 2023, two months after launch. 70 61 55 41 30 9 2 Months Taken to Reach 100mm MAUs Fo
Slide 91: Performance Snapshot
SVF1 SVF2 LATAM 11 SoftBank SoftBank SoftBank Vision Fund 1 Vision Fund 2 LatAm Funds Combined Total Commitment $98.6B $60.0B $7.6B $166.2B Effective May 10, 2023 PROGRESS & HIGHLIGHTS Performance Acquisition Cost1 $87.9B $49.9B $7.3B $145.1B Snapshot Cumulative Gross $13.5B $(18.9B) $(1.7B) $(7.1B)
Slide 92: SoftBank-Sponsored SPACs Update
SVF2 LATAM PROGRESS & HIGHLIGHTS 12 SoftBank-Sponsored SPACs Update Three SoftBank-sponsored SPACs redeemed during the quarter. Our fourth SPAC, SVFC, closed its business combination with Symbotic in June 2022. 1 2 An AI-enabled and autonomous Gross MOIC Market Cap robotics-powered product SOFTBANK-
Slide 93: Performance & Impact on SoftBank Group (SBG)
13 Performance & Impact on SoftBank Group (SBG)
Slide 94: SVF1 Contribution to SBG, Net of 3rd Party Interests
14 SVF1 2023 Inception to Mar 31 SVF1 Fund Net Profit2 $2.7 PERFORMANCE & IMPACT ON SBG Less: Change in 3rd Party Contribution to Interests in Fund (1.5) SBG, Net of 3rd SBG LP Income: 1.2 Share of Fund Net Profit Party Interests1,3 SBG GP Income: Amounts in USD Billions 1.0 Management & Performance
Slide 95: Contribution to SBG: SVF1
15 SBG Paid-In Capital1 SVF1 PERFORMANCE & IMPACT ON SBG Contribution to SBG SBG Total Value2 As of March 31, 2023 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. SBG T
Slide 96: Contribution to SBG: SVF2
16 SBG Paid-In Capital1 SVF2 PERFORMANCE & IMPACT ON SBG Contribution to SBG SBG Total Value2 As of March 31, 2023 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 Paid
Slide 97: Contribution to SBG: LatAm
17 SBG Paid-In Capital1 LATAM PERFORMANCE & IMPACT ON SBG Contribution to SBG SBG Total Value2 As of March 31, 2023 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 Pai
Slide 98: In Focus: A Diversified Global Portfolio
18 In Focus: A Diversified Global Portfolio
Slide 99: Our Platform
SVF1 SVF2 LATAM A DIVERSIFIED GLOBAL PORTFOLIO 19 Our Platform As of March 31, 2023 SVF1 SVF2 LATAM Total Fair Value1 Total Fair Value1 $101.3B Total Fair Value1 $31.0B Total Fair Value1 $5.7B $138.0B Total # of Total # of Total # of 94 274 105 473 Total Number Investments2 Investments2 Investments2
Slide 100: Quarterly Performance
SVF1 SVF2 LATAM 20 -$2.3B +$0.3B -$1.9B -$0.7B COMBINED SVF1 SVF2 LATAM A DIVERSIFIED GLOBAL PORTFOLIO Quarterly Performance Public investments demonstrating resilience and benefiting from modest recovery in global markets As of March 31, 2023 Majority of private investment losses experienced in Con
Slide 101: Public Markets Show Modest Gains
SVF1 SVF2 LATAM 21 Public Investments By Fair Value1 $25.3B CURRENT FAIR VALUE2 +$2.1B QUARTERLY GAIN3 FAIR VALUE QUARTERLY GAIN FAIR VALUE QUARTERLY GAIN INVESTMENT4 INVESTMENT4 ($MM) ($MM) ($MM) ($MM) $6,819 +$550 $460 +$43 A DIVERSIFIED GLOBAL PORTFOLIO $3,680 +$600 $457 +$218 Public Markets $2,8
Slide 102: Asian Markets Continue to Demonstrate Resilience & Growth Prospects
SVF1 SVF2 LATAM A DIVERSIFIED GLOBAL PORTFOLIO 22 Asian Markets Continue to Demonstrate Resilience & Growth Prospects Public Investments by Region | As of March 31, 2023 CHINA INDIA REST OF ASIA 9 Investments 4 Investments 3 Investments CURRENT FAIR VALUE1 QUARTERLY GAIN2 CURRENT FAIR VALUE1 QUARTER
Slide 103: Mixed Performance Across Markets in the Americas & Europe
SVF1 SVF2 LATAM A DIVERSIFIED GLOBAL PORTFOLIO 23 Mixed Performance Across Markets in the Americas & Europe Public Investments by Region | As of March 31, 2023 AMERICAS EMEA 27 Investments 4 Investments CURRENT FAIR VALUE1 QUARTERLY GAIN2 CURRENT FAIR VALUE1 QUARTERLY GAIN2 DoorDash reported an 11th
Slide 104: A Strong Pipeline for Future Listings
SVF1 SVF2 LATAM A DIVERSIFIED GLOBAL PORTFOLIO 24 A Strong Pipeline for Future Listings As of March 31, 2023 LISTINGS $37B+ Late-Stage Portfolio LISTINGS SINCE INCEPTION 1 Total FV, Series E or Later2 LATAM SVF2 SVF1 LISTINGS LISTINGS 2017 & 2018 2019 & 2020 2021 & 2022 Footnotes: 1. Listings since
Slide 105: A Diverse Portfolio of Private Investments
SVF1 SVF2 LATAM A DIVERSIFIED GLOBAL PORTFOLIO 25 A Diverse Portfolio of Private Investments Private Investments | As of March 31, 2023 F A I R V A L U E B Y RE G I O N ( $ B ) I NV E S T M E NT S B Y RE V E NU E S T A G E 391 BY FAIR VALUE (%)3 Current Private Investments1 $15.8 56% $14.8 $24.8 $5.
Slide 106: Performance by Sector (1/3)
SVF1 SVF2 LATAM A DIVERSIFIED GLOBAL PORTFOLIO 26 Performance by Sector (1/3) Private Investments by Sector | As of March 31, 2023 SECTOR LARGEST INVESTMENTS BY TEQV1 SECTOR HIGHLIGHTS KEY METRICS QUARTERLY # INVESTMENTS FAIR VALUE FV GAIN Bytedance 2022 profits reach $25B, outpacing Tencent, Kuaish
Slide 107: Performance by Sector (2/3)
SVF1 SVF2 LATAM A DIVERSIFIED GLOBAL PORTFOLIO 27 Performance by Sector (2/3) Private Investments by Sector | As of March 31, 2023 SECTOR LARGEST INVESTMENTS BY TEQV1 SECTOR HIGHLIGHTS KEY METRICS QUARTERLY # INVESTMENTS FAIR VALUE FV GAIN Arm Announced confidential submission of draft registration
Slide 108: Performance by Sector (3/3)
SVF1 SVF2 LATAM A DIVERSIFIED GLOBAL PORTFOLIO 28 Performance by Sector (3/3) Private Investments by Sector | As of March 31, 2023 SECTOR LARGEST INVESTMENTS BY TEQV1 SECTOR HIGHLIGHTS KEY METRICS QUARTERLY # INVESTMENTS FAIR VALUE FV GAIN PayPay 45% of the QR code payments market in Japan2 Klarna 6
Slide 109: Our Disciplined Approach to Monetization
SVF1 SVF2 LATAM A DIVERSIFIED GLOBAL PORTFOLIO 29 Our Disciplined Approach to Monetization Inception to March 31, 2023 15940 CUMULATIVE PROCEEDS SINCE INCEPTION Monetized Public & Private Investments1 13940 16,057 Cumulative Proceeds2 ($B) 11940 SVF1 NASDAQ Performance5 9940 56.5 55.3 7940 46.0 5940
Slide 110: An Enduring Portfolio Positioned for the Future
SVF1 SVF2 LATAM A DIVERSIFIED GLOBAL PORTFOLIO 30 An Enduring Portfolio Positioned for the Future As of March 31, 2023 1 2 3 4 Invested in Prudent Valuations Portfolio Companies Disciplined Well-Capitalized in-line with Poised to and Consistent Companies IFRS 13 List Publicly Monetization Strategy T
Slide 111: Thank You
31 Thank You SoftBank Vision & LatAm Funds Investor Briefing Presentations Available at visionfund.com/presentations
Slide 112: SoftBank
SoftBank