Softbank Group Corp. · TSE:9984
Softbank — Q2 FY2024 Earnings Presentation
26 slides from Softbank's earnings presentation, November 2024
Slide 1: Investor Briefing: SoftBank Vision & LatAm Funds
QUARTER ENDED SEPTEMBER 30, 2024 Investor Briefing SoftBank Vision & LatAm Funds NAVNEET GOVIL CFO, SB Investment Advisers & SB Global Advisers
Slide 2: Important Information (1 of 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 paral
Slide 3: Important Information (2 of 2)
Important Information (2 of 2) Vision Fund 1 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, a
Slide 4: Fed Lowered Rates for First Time Since March 2020
PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT Fed Lowered Rates for First Time Since March 2020 Additional Rate Cuts Implied by Fed Fund Futures IPOs Below 10-Year Average But Green Shoots Emerge Federal Funds Rate With Forward Market Expectations1 Global IPO Volumes And Ten-Year Average2 2017 to 20
Slide 5: Positive Developments in China and India
PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT Positive Developments in China and India China Announces Wide-Ranging Stimulus Package1 India Public Markets Show Continued Momentum KEY INDICES PERFORMANCE2 NIFTY 50 INDEX PERFORMANCE3 INDIA IPO VOLUMES4 Reduction in required January 2024 – September 20
Slide 6: Quarterly Performance
SVF1 SVF2 LATAM PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT QUARTERLY FAIR VALUE PERFORMANCE 1 +$3.1B +$0.9B +$0.2B +$4.3B SVF1 SVF2 LATAM COMBINED Quarterly PUBLIC +$2.9B $(0.0B) +$0.1B +$2.9B Performance PRIVATE +$0.2B +$0.9B +$0.2B +$1.3B As of September 30, 2024 Interest rate cuts and Public i
Slide 7: Performance Over the Last Four Quarters
SVF1 SVF2 LATAM PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT VISION & LATAM FUNDS FAIR VALUE PERFORMANCE 1 +$4.3B Performance Over +$7.9B the Last Four +$3.6B Quarters As of September 30, 2024 TOTAL December 2023 – September Last Four Quarters June 2024 2024 Footnotes: 1. Fair Value Performance is
Slide 8: Performance Snapshot
SVF1 SVF2 LATAM PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT SoftBank SoftBank SoftBank Vision Fund 1 Vision Fund 2 LatAm Funds Combined5 Total Commitments1 $98.6B $60.8B $7.8B $167.2B Acquisition Cost2 $87.8B $54.8B $7.4B $150.1B Performance Snapshot Cumulative Gross Investment Gains/(Losses)2 $24
Slide 9: Public Investments Overview
SVF1 SVF2 LATAM PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT Public Investments Overview Top 10 Public Investments by Fair Value | As of September 30, 2024 QUARTERLY FV QUARTERLY STOCK SVF1 SVF2 LATAM INVESTMENT FV ($B)2 COMMENTARY6 CHANGE ($MM)4 MOVEMENT5 New in Top 10 This Quarter +$1,258 $8.6
Slide 10: Private Investments Overview
SVF1 SVF2 LATAM PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT Private Investments Overview As of September 30, 2024 # Current Investments1 Consumer Sentiment Mixed Positive FinTech Developments6 382 UNIVERSITY OF MICHIGAN CONSUMER SENTIMENT INDEX5 Unrealized FV – Private2 Valued at $45B in latest se
Slide 11: Revolut Achieves Key Milestones
SVF2 PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT Revolut Achieves Key Milestones As of September 30, 2024 KEY 38mm DEVELOPMENTS 1 Revenue ($) $45B Profit Before Tax ($) # Customers 26mm August 2024 $2.2B Secondary Valuation 16mm 95% 11mm $1.1B YoY Revenue Growth 8mm $877mm $545mm UK Banking Licens
Slide 12: Additional IPOs Continue to Unlock Value
SVF1 SVF2 PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT Additional IPOs1 Continue to Unlock Value As of September 30, 2024 2 3 4 2 3 4 Total Cost Total FV Gross MOIC Total Cost Total FV Gross MOIC $0.4B $1.2B 3.1x $0.6B $1.0B 1.7x Cost5 & Trading Activity6 Cost5 & Trading Activity6 SEP 30, 2024 INR
Slide 13: Continued Listings and Strong Late-Stage Portfolio
SVF1 SVF2 LATAM PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT Continued Listings and Strong Late-Stage Portfolio As of September 30, 2024 $34B 61% Cumulative Public Listings Since Inception1 % of Total Private Fair Unrealized Fair 53 Value2 Value2 SELECT COMPANIES: SERIES E AND ONWARDS 3 50 45 SVF1
Slide 14: Sustained Focus on Driving the AI Revolution
SVF2 PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT Sustained Focus on Driving the AI Revolution Three-Month Period Ended September 30, 2024 Select New Investments1 Bringing Work AI to every team member Accelerating software development Shaping the future of AI adoption in an enterprise through best-
Slide 15: OpenAI Investment Overview
SVF2 PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT OpenAI Investment Overview As of September 30, 2024 $500mm $157B $6.6B $17.9B SVF2 Post-Money Total Amount Raised Investment Valuation1 Round Size1 to Date2 Ensuring artificial general intelligence benefits all of humanity New Funding Round Septembe
Slide 16: OpenAI's Technology Sets Another Benchmark for the Industry
SVF2 PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT OpenAI’s Technology Sets Another Benchmark for the Industry As of September 30, 2024 HIGHLIGHTS LLM LEADERBOARD1 Top three highest ranked LLMs Company Model Arena Score1 per LMSYS Chatbot Arena1 ChatGPT-o1 Preview 1339 Released Model o1, first in a
Slide 17: OpenAI's Momentum Continues to Build
SVF2 PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT OpenAI’s Momentum Continues to Build As of September 30, 2024 KEY METRICS Reported Revenue1 $3.7B 2022 to 2024E 250mm Weekly Active Users2 Seeking to ensure $1.6B 1.7B Avg. Monthly Website Visits3 artificial general intelligence benefits all of huma
Slide 18: Backing Innovative Technology Ahead of the Curve
PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT Backing Innovative Technology Ahead 2010s AND BEYOND Rise of AI SVF1 SVF2 LATAM of the Curve The future of Masayoshi Son humanity lies in AI. Chairman & CEO, SoftBank Group Corp.1 AI INVESTING STACK Investments by Highest Total Equity Value2 Application
Slide 19: Appendix
Appendix m= OOftBank 1 Investment Advisers
Slide 20: SVF1 Distributions to Limited Partners
SVF1 SVF1 Distributions to Limited Partners Since Inception to September 30, 2024 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 Preferred Equity $40.0B $36.2B $28.1B $8.9B $8.1B Equity $58.6B $
Slide 21: SVF1 Contribution to SBG, Net of 3rd Party Interests
SVF1 SVF1 2024 Inception to Sep 30 Fund Net Profit2 $12.0 Less: Change in 3rd Party Contribution to Interests in Fund (6.0) SBG, Net of 3rd SBG LP Income: 6.0 Share of Fund Net Profit Party Interests1,3 SBG GP Income: Amounts in USD Billions 1.2 Management & Performance Fees3 Contribution to SBG, Ne
Slide 22: Contribution to SBG (SVF1)
SVF1 SBG Paid-In Capital1 Contribution $27.7B to SBG SBG Total Value2 As of September 30, 2024 $24.0B $33.7B Net Asset Value3 Distributions4 $9.7B Footnotes: 1. SBG Paid-In Capital represents SBG Commitment drawn down through capital calls less Return of Recallable unutilized Contributions. 2. SBG T
Slide 23: Contribution to SBG (SVF2)
SVF2 SBG Paid-In Capital1 Contribution $56.7B to SBG SBG Total Value2 As of September 30, 2024 $25.3B $34.3B Net Asset Value3 Distributions4 $9.0B Footnotes: 1. SBG Paid-In Capital represents SBG Commitment drawn down through capital calls less Return of Recallable unutilized Contributions. SBG Paid
Slide 24: Contribution to SBG (LatAm Funds)
LATAM SBG Paid-In Capital1 Contribution $7.1B to SBG SBG Total Value2 As of September 30, 2024 $5.9B $6.3B Net Asset Value3 Distributions4 $0.4B Footnotes: 1. SBG Paid-In Capital represents SBG Commitment drawn down through capital calls less Return of Recallable unutilized Contributions. SBG Paid-I
Slide 25: Portfolio Companies Continue to be Well-Capitalized
SVF1 SVF2 LATAM 3% <12 Months 7% 12-24 Months Portfolio Companies 17% >24 Months Portfolio 72% 97% Continue to be Companies FCF+ or Sufficient to Portfolio Cash Runways Achieve Companies with Well-Capitalized By Fair Value1 Profitability2 12+ Months Cash Runway As of September 30, 2024 Footnotes: 1.
Slide 26: Thank You
Thank You SoftBank Vision & LatAm Funds Investor Briefing Presentations Available at visionfund.com/presentations 26