Softbank Group Corp. · TSE:9984
Softbank — Q1 FY2021 Earnings Presentation
71 slides from Softbank's earnings presentation, Aug 10, 2021
Slide 1: Earnings Results for the 3-month Period ended June 30, 2021
Earnings Results for the 3-month Period ended June 30, 2021 August 10, 2021
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: SoftBank
= SoftBank
Slide 4: Total Investments in Unlisted AI Companies (Since 2017)
Total Investments in Unlisted A I Companies (Since 2017) SBG (SVF1, 2, LatAm etc.) 10% Provided 10% of capital raised by unlisted A I companies worldwide SBG estimates the total investments in unlisted AI companies based on the amount of funding raised by unlisted companies worldwide since 2017 (Sou
Slide 5: Consolidated Results
Consolidated Results 4
Slide 6: Net Income
Net Income (JPY bn) 1,255.7 (USD 6.9bn) 761.5 FY2020 Q1 FY2021 Q1 USD 1 = JPY 110.00 (average rate during Apr. 2021-Jun. 2021) Net income: net income attributable to owners of the parent 5
Slide 7: Gain and Loss on Investments of SVF (Cumulative)
Gain and Loss on Investments of SVF (Cumulative) (SVF Segment on an SBG Consolidated Basis) (JPY bn) 6,336.0 6,727.6 2,745.8 2,237.8 1,823.4 The information contained herein is provided solely for illustrative purposes on an SBG consolidated basis and individual investors' results may vary. Furtherm
Slide 8: NAV (Net Asset Value) USD 239bn
NAV (Net Asset Value) USD 239bn (Jun. 30, 2021) ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 ’19 ’20 ’21 (FY) Share price: closing price as of Jun. 30, 2021 (Japan and U.S.) 7
Slide 9: NAV (Net Asset Value) USD 239bn
NAV (Net Asset Value) USD 239bn (Jun. 30, 2021) SVF1+SVF2+LatAm etc. 34% 39% Others (SBKK, Sprint/T-Mobile, Arm, SB Northstar) 27% Each percentage is the proportionated share of holding equity value for each time period ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17
Slide 10: NAV (Net Asset Value) USD 239bn
NAV (Net Asset Value) USD 239bn (Jun. 30, 2021) Listed companies 87% Each percentage is the proportionated share of holding equity value for each time period Listed companies: The sum of Yahoo, Alibaba, T-Mobile (Sprint), SBKK (since FY2018Q3), Arm (since FY2020Q2), SVF1 (equivalent to listed compan
Slide 11: SVF1+2+LatAm etc. Listed Portfolio Companies + SPAC Merger Announced Companies
SVF1+2+LatAm etc. Listed Portfolio Companies + SPAC Merger Announced Companies Fair Value (Unrealized value only) SVF1+2+LatAm etc. listed companies + SPAC merger announced companies (Jun. 30, 2021) USD 88.2bn *1 SPAC merger USD 88.2bn Fair Value (unrealized value) SVF1+2+LatAm etc. SPAC merger anno
Slide 12: SVF1+2+LatAm etc. Listed Portfolio Companies + SPAC Merger Announced Companies
SVF1+2+LatAm etc. Listed Portfolio Companies + SPAC Merger Announced Companies Fair Value (Unrealized value only) SVF1+2+LatAm etc. listed companies + SPAC merger announced companies (Jun. 30, 2021) USD 88.2bn *1 SPAC merger USD 88.2bn Fair Value (unrealized value) SVF1+2+LatAm etc. SPAC merger anno
Slide 13: Capital for Investments (FY2021Q1)
Capital for Investments (FY2021Q1) JPY 1,658.7bn (USD 15.0bn) Contribution to SVF1 JPY 33.2bn (USD 0.3bn) Contribution to SVF2 JPY 1,625.5bn (USD 14.7bn) Investment USD 1 = JPY 110.58 (as of Jun. 30, 2021 TTM) Investment: the amount of contribution to SVF1 and SVF2 12
Slide 14: Capital for Investments (FY2021Q1)
Capital for Investments (FY2021Q1) JPY 1,658.7bn (USD 15.0bn) Contribution to SVF1 JPY 33.2bn (USD 0.3bn) Others (Financing and cash reserves) JPY 725.9bn Contribution to SVF2 JPY 1,625.5bn (USD 6.6bn) (USD 14.7bn) JPY 164.1bn (USD 1.5bn) Distribution from SVF1 JPY 230.1bn (USD 2.1bn) Distribution f
Slide 15: LTV (Net Debt / Equity Value of Holdings)
LTV (Net Debt / Equity Value of Holdings) USD 286bn 16% Manage LTV below 25% in normal times USD 46bn Equity value Net debt of holdings Share price: closing price as of Jun. 30, 2021 (Japan and U.S.) For details, see Appendix “Definition and Calculation Method of SBG’s Sum-of-the-parts Valuation (as
Slide 16: LTV remains stable
LTV (Net Debt / Equity Value of Holdings) 100% JPY 4.5 Trillion IPO Program 90% (Dec. 2018) (Mar. - Sep. 2020) 80% 70% 60% Remains stable 50% 40% 30% 30% 30% 17% 18% 17% 17% 25% 20% 15% 11% 15% 12% 12% 16% 9% (Jun. 30, 2021) 10% JPY 4.5 Trillion Program: The period is based on the date of announceme
Slide 17: SoftBank Vision Fund 1, 2 + LatAm Fund total companies
SoftBank Vision Fund 1, 2 + LatAm Fund 301 total companies (incl. 43 companies post investment committee approval but pre investment closing) SoftBank Latin America Fund SoftBank Vision Fund 1 advised by SBIA SoftBank Vision Fund 2 advised by SBIA (161 total companies: 91 portfolio companies as of J
Slide 18: Provide capital in a wide range of regions
SVF1+2+LatAm etc. Portfolio Companies Fair Value (As of Jul. 30, 2021, Unrealized value only) Latin America etc. 5% Provide capital in Europe 13% a wide range of regions US 34% China 23% Asia (excl. China) 25% Fair Value: Calculated based on closing price as of Jul. 30, 2021 for listed stocks and fa
Slide 19: Provide capital in a wide range of sectors
SVF1+2+LatAm etc. Portfolio Companies Fair Value (As of Jul. 30, 2021, Unrealized value only) Edtech Others Health Tech 1% 1% 3% Enterprise 6% Provide capital in Fintech 7% Consumer a wide range of sectors Proptech 28% 7% Frontier Tech 10% Transportation Logistics 20% 17% Sector categorization for S
Slide 20: AI is revolutionizing every industry
A I is revolutionizing every industry 19
Slide 21: AI × Travel
SVF2 Investment A I × Travel 20
Slide 22: Korea's No.1 travel platform
SVF2 Investment Travel Super App Hospitality Solutions Accommodation Self check-in Transportation Smart locks Leisure / Property Restaurant management Korea’s No.1 travel platform Korea' s No.1: In terms of Yanolja apps' registered users and GMV, according to Yanolja press release. The investment he
Slide 23: Yanolja video (illustrative information)
The information contained herein is provided for illustrative purposes only. The information herein was prepared by Yanolja. None of SBG, SVF2, the general partner of SVF2 or SBIA make any representation regarding the accuracy of the information and are under no obligation to update the information.
Slide 24: Use of AI
SVF2 Investment Use of A I Number of searches Dynamic pricing AI Inventory Events information Personalized travel plans Seasonality Benefits both hotels and travelers The investment herein is presented solely for illustrative purposes and has been selected to provide an example of the types of inves
Slide 25: 2X Greatly improves revenue
SVF2 Investment Effects of A I use Number of Rooms Sold GMV per Paying User (Monthly) 2.1mm 1.4X USD 117 2X in 3 years in 3 years USD 82 990k Jul. 2018 Jul. 2021 Jul. 2018 Jul. 2021 Greatly improves revenue GMV per Paying User per month: Average GMV on Yanolja apps per month / average number of Yano
Slide 26: 3X in 3 years
SVF2 Investment Registered Users 17.3mm 13.5mm 3X in 3 years 7.0mm 5.8mm 2018 2019 2020 2021 (As of the end of Jul. each year) Registered Users: Yanolja apps' registered users The investment herein is presented solely for illustrative purposes and has been selected to provide an example of the types
Slide 27: Strong growth despite the pandemic
SVF2 Investment GMV USD 1,324mm USD 968mm Strong growth despite the pandemic USD 729mm USD 474mm 2018 2019 2020 2021 (Annualized) (Annualized) (Annualized) (Annualized) GMV is calculated by dividing the actual aggregate Yanolja apps' GMV from Jan. to Jul. by 7 (months), and then re-multiplied the va
Slide 28: AI × Fintech
SVF2 Investment A I × Fintech 27
Slide 29: Fastest growing community of shoppers in the world
SVF2 Investment Global shoppers Retailers 90mm 250k+ Physical stores Purchases / day 78k+ 2mm Fastest growing community of shoppers in the world Global shoppers: Number of users who, in the last 12 months, have logged in to Klarna App and/or made a payment and/or placed an order via Klarna, Sofort o
Slide 30: Klarna video (illustrative information)
The information contained herein is provided for illustrative purposes only. The information herein was prepared by Klarna. None of SBG, SVF2, the general partner of SVF2 or SBIA make any representation regarding the accuracy of the information and are under no obligation to update the information.
Slide 31: Features
SVF2 Investment Features Easy sign up email & zip code No credit card required 3 or 4 payments Try before you buy Pay now (Interest-free) (Interest-free) Financing Offers all relevant payment methods for consumers The investment herein is presented solely for illustrative purposes and has been selec
Slide 32: Use of AI
SVF2 Investment Use of A I Credit score Set credit limit Purchase history AI Brands / shops Browsing history recommendation Personalized shopping experience The investment herein is presented solely for illustrative purposes and has been selected to provide an example of the types of investments rel
Slide 33: Effect of AI use
SVF2 Investment Effect of A I use Customer Cohorts Average Order Value (Transaction / year) Consistent increase +40% in frequency 27 20 18 16 14 11 9 2013 '14 '15 '16 '17 '18 '19 '20 (Year start using Klarna) Large increase in purchase frequency and amount Customer Cohorts: A cohort is the consumers
Slide 34: GMV USD 57bn, 2x in 2 years
SVF2 Investment GMV USD 57bn 2x USD 39bn in 2 years USD 30bn 2018 2019 2020 (Year) (Source) Klarna The investment herein is presented solely for illustrative purposes and has been selected to provide an example of the types of investments related to AI made by SBIA. References to it should not be co
Slide 35: AI × Robotic Warehouse
SVF2 Investment A I × Robotic Warehouse 34
Slide 36: AutoStore video (illustrative information)
The information contained herein is provided for illustrative purposes only. The information herein was prepared by AutoStore. None of SBG, SVF2, the general partner of SVF2 or SBIA make any representation regarding the accuracy of the information and are under no obligation to update the informatio
Slide 37: Features: Grid Warehouse
SVF2 Investment Features Grid Warehouse • Space utilization: 90 • >50% greater floor space utilization vs alternatives • Flexible layout The investment herein is presented solely for illustrative purposes and has been selected to provide an example of the types of investments related to AI made by S
Slide 38: Features: Robot Transport & Picking Utilizing AI
SVF2 Investment Features Robot Transport & Picking Utilizing A I • Optimize placement and routes • Picking accuracy: 99.9 • Greatly improves throughput The investment herein is presented solely for illustrative purposes and has been selected to provide an example of the types of investments related
Slide 39: Customers: Partnership with over 500 global companies
SVF2 Investment Customers Apparel Electronics Food Industrial Logistics Automotive Other Partnership with over 500 global companies Third-party logos included herein are provided for illustrative purposes only. Inclusion of such logos does not imply affiliation with or endorsement by such firms or b
Slide 40: Global Network: 700 installations in 38 countries
SVF2 Investment Global Network # of installations 1-3 4-15 15-50 >50 Partners Achieved 700 installations in 38 countries Third-party logos included herein are provided for illustrative purposes only. Inclusion of such logos does not imply affiliation with or endorsement by such firms or businesses.
Slide 41: AI × Delivery
SVF2 Investment A I × Delivery 40
Slide 42: Large scale delivery platform in India
SVF2 Investment Food Users Everyday items Large scale delivery platform in India The investment herein is presented solely for illustrative purposes and has been selected to provide an example of the types of investments related to AI made by SBIA. References to it should not be (Source) Swiggy 41 c
Slide 43: Swiggy video (illustrative information)
The information contained herein is provided for illustrative purposes only. The information herein was prepared by Swiggy. None of SBG, SVF2, the general partner of SVF2 or SBIA make any representation regarding the accuracy of the information and are under no obligation to update the information.
Slide 44: Leading convenience delivery platform in India
SVF2 Investment Monthly Active Users Restaurant Partners Orders per Day Delivery Executives 20mm+ 125k+ ~1.5mm 200k+ Leading convenience delivery platform in India Monthly active users, orders per day: Monthly result for Jun. 2021 Restaurant partners and delivery executives: as of Jun. 2021 The inve
Slide 45: Use of AI
SVF2 Investment Use of A I Vehicle allocation efficiency Time Location Historical data AI Recommendation Day of Preference the week Achieving high efficiency and profitability The investment herein is presented solely for illustrative purposes and has been selected to provide an example of the types
Slide 46: Rapid growth in both orders and revenue
SVF2 Investment Effects of A I use Orders per Day Revenue 2.5x 2.8x in one year in one year Jun. 2020 Jun. 2021 Jun. 2020 Jun. 2021 Rapid growth in both orders and revenue The investment herein is presented solely for illustrative purposes and has been selected to provide an example of the types of
Slide 47: Co-investment to SVF2
Co-investment to SVF2 46
Slide 48: Introduction of Co-investment to SVF2
Introduction of Co-investment to SVF2 Co-investment by management in SVF2 together with SBG is intended to create a shared interest in SVF2 and instill a sense of ownership leading to enhanced focus on the fund, thereby contributing to SBG’s earnings growth. SVF1 *4 SVF2 SVF2 (Approved by Board of D
Slide 49: Conclusion
Conclusion 48
Slide 50: AI Revolution
A I Revolution Vision Group of A I Entrepreneurs × Capitalist Shape the future with a shared vision 49
Slide 51: Total Investments in Unlisted AI Companies (Since 2017)
Total Investments in Unlisted A I Companies (Since 2017) SBG (SVF1, 2, LatAm etc.) 10% Provided 10% of capital raised by unlisted A I companies worldwide SBG estimates the total investments in unlisted AI companies based on the amount of funding raised by unlisted companies worldwide since 2017 (Sou
Slide 52: SoftBank
= SoftBank
Slide 53: Information Revolution: Happiness for everyone
Information Revolution Happiness for everyone 52
Slide 54: SoftBank
SoftBank
Slide 55: Appendix
Appendix
Slide 56: Definition and Calculation Method of SBG's Sum-of-the-Parts Valuation
Definition and Calculation Method of SBG’s Sum-of-the-Parts Valuation (as of June 30, 2021) 1. NAV Net Asset Value ◦ NAV = Equity value of holdings - Net debt 2. Equity value of holdings (after deducting asset-backed financing) ◦ Alibaba: calculated by multiplying the number of Alibaba ADSs (equival
Slide 57: Gain and Loss on Investments of SVF (Quarterly)
Gain and Loss on Investments of SVF (Quarterly) (SVF Segment on an SBG Consolidated Basis) (JPY bn) 3,590.2 1,355.7 1,115.0 106.9 248.4 320.0 519.8 392.0 414.4 296.6 391.6 87.5 71.0 77.8 The information contained herein is provided solely for illustrative purposes on an SBG consolidated basis and in
Slide 58: SVF1 Investment Highlights (SBG Consolidated basis)
SVF1 Investment Highlights (SBG Consolidated basis) * (From SVF1 inception to Jun. 30, 2021) USD 70.3bn USD 58.2bn Realized gain USD 12.5bn Investment market uplift + Valuation gain realized gains USD 57.8bn USD -12.1bn Realized loss Valuation loss USD -0.5bn USD -11.6bn Mark up Mark down (48 invest
Slide 59: SVF1 Listed Portfolio Companies (as of Jun. 30, 2021)
SVF1 Listed Portfolio Companies (as of Jun. 30, 2021) (a) (b) (c) = (b) - (a) (d) = (b) / (a) (USD mm) Investment cost *2 Gross return *3 Gross gain (loss) Company Gross MOIC *4 to SVF1 to SVF1 to SVF1 Coupang 2,729 23,760 +$21,031 8.7x DoorDash 680 10,861 +$10,181 16.0x Uber 7,666 11,308 +$3,642 1.
Slide 60: SVF1 Listed Portfolio Companies (as of Aug. 9, 2021)
SVF1 Listed Portfolio Companies (as of Aug. 9, 2021) (a) (b) (c) = (b) - (a) (d) = (b) / (a) (USD mm) Investment cost *1 Gross return *2 Gross gain (loss) *3 Company Gross MOIC to SVF1 to SVF1 to SVF1 Coupang 2,729 22,436 +$19,707 8.2x DoorDash 680 11,126 +$10,446 16.4x Fully Exited NVIDIA 2,878 5,8
Slide 61: SVF1 Snapshot (as of Jun. 30, 2021)
SVF1 Snapshot (as of Jun. 30, 2021) (a) (b) (c) = (b) - (a) (USD bn) *2 *1 Investment cost Gross return Gross gain (Loss) to SVF1 to SVF1 to SVF1 (A) Listed company total $33.8 $83.4 +$49.6 (B) Private company, etc. total $52.1 $60.8 +$8.7 (C)=(A)+(B) SVF 1 total (SBG consolidated basis) *3 $85.9 $1
Slide 62: SVF2 Investment Highlights (SBG Consolidated basis)
SVF2 Investment Highlights (SBG Consolidated basis) (From SVF2 inception to Jun. 30, 2021) USD 5.3bn USD 4.8bn Realized gain USD 0.9bn Investment Valuation gain market uplift + USD 4.4bn USD -0.5bn Valuation loss USD -0.5bn realized gains Mark up Mark down (22 investments) (4 investments) SVF2 highl
Slide 63: SVF2 Listed Portfolio Companies (as of Jun. 30, 2021)
SVF2 Listed Portfolio Companies (as of Jun. 30, 2021) (USD mm) (a) (b) (c) = (b) - (a) (d) = (b) / (a) Investment cost *2 Gross return *3 Gross gain (loss) Company Gross MOIC *4 to SVF2 to SVF2 to SVF2 Beike 1,350 5,053 +$3,703 3.7x Full Truck Alliance 250 470 +$221 1.9x Dingdong Maicai 325 534 +$20
Slide 64: SVF2 Listed Portfolio Companies (as of Aug. 9, 2021)
SVF2 Listed Portfolio Companies (as of Aug. 9, 2021) (USD mm) (a) (b) (c) = (b) - (a) (d) = (b) / (a) Investment cost *1 Gross return *2 Gross gain (loss) Company Gross MOIC *3 to SVF2 to SVF2 to SVF2 Beike 1,350 2,930 +$1,580 2.2x Berkshire Grey 115 544 +$428 4.7x Full Truck Alliance 250 306 +$56 1
Slide 65: SVF2 Snapshot (as of Jun. 30, 2021)
SVF2 Snapshot (as of Jun. 30, 2021) (a) (b) (c) = (b) - (a) (USD bn) *2 *1 Investment cost Gross return Gross gain (Loss) to SVF2 to SVF2 to SVF2 (A) Listed company total $2.9 $7.0 +$4.2 (B) Private company, etc. total $17.3 $18.0 +$0.6 (C)=(A)+(B) SVF 2 total (SBG consolidated basis) *3 $20.2 $25.0
Slide 66: Investment Results for JD Logistics (as of Jun. 30, 2021)
SVF2 Investment Investment Results for JD Logistics (as of Jun. 30, 2021) IPO on May 28, 2021 USD 629mm China’s No.1 tech-driven integrated USD 601mm * supply chain logistics service provider 1.0x *China’s No.1 tech-driven integrated supply chain logistics service provider in the amount of warehouse
Slide 67: Investment Results for Zhangmen (as of Jun. 30, 2021)
SVF2 Investment Investment Results for Zhangmen (as of Jun. 30, 2021) IPO on Jun. 8, 2021 USD 123mm China’s No.1 online K-12 one-to-one * after-school tutoring service provider USD 105mm 1.2x *China’s No.1 online K-12 one-to-one after-school tutoring service provider in terms of gross billings betwe
Slide 68: Investment Results for Full Truck Alliance (as of Jun. 30, 2021)
SVF1, SVF2 Investment Investment Results for Full Truck Alliance (as of Jun. 30, 2021) IPO on Jun. 22, 2021 USD 4,486mm World’s largest USD 470mm SVF2 investment digital freight platform * 2.3x USD 1,950mm USD 250mm USD 4,015mm SVF1 investment USD 1,700mm *World’s largest digital freight platform in
Slide 69: Investment Results for Dingdong Maicai
SVF2 Investment Investment Results for Dingdong Maicai (as of Jun. 30, 2021) IPO on Jun. 29, 2021 USD 534mm Leading fresh grocery e-commerce platform in China 1.6x USD 325mm Past performance is not necessarily indicative of future results. The selected investment presented herein were selected solel
Slide 70: Investment Results for DiDi (as of Jun. 30, 2021)
SVF1 Investment Investment Results for DiDi (as of Jun. 30, 2021) IPO on Jun. 30, 2021 USD 13,694mm China’s No.1 USD 12,073mm shared mobility platform * 1.1x *China’s No.1 shared mobility platform in the number of annual active users and average daily transactions for the twelve month period ended M
Slide 71: Investment Results for Berkshire Grey (as of Aug. 9, 2021)
SVF2 Investment Listed on Jul. 22, 2021 Investment Results for Berkshire Grey (as of Aug. 9, 2021) (SPAC merger*) USD 544mm Provider of A I-enabled robotic solutions for warehouse automation 4.7x USD 115mm *Berkshire Grey merged with Revolution Acceleration Acquisition Corp. on Jul. 21, 2021, and be