Softbank Group Corp. · TSE:9984
Softbank — FY2020 Earnings Presentation
130 slides from Softbank's earnings presentation, May 14, 2021
Slide 1: Earnings Results for the Fiscal Year Ended March 31, 2021
Ver.1.3 Earnings Results for the Fiscal Year Ended March 31, 2021 Investor Briefing May 14, 2021 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 used for translation; Abbreviations
Exchange rates used for translation FY2019 FY2020 Average during quarter Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1 USD 110.00 107.70 108.98 109.22 107.74 105.88 104.45 106.24 1 CNY 16.13 15.37 15.46 15.56 15.16 15.27 15.71 16.31 EOQ Jun 30 Sep 30 Dec 31 Mar 31 Jun 30 Sep 30 Dec 31 Mar 31 1 USD 108.83 110.71 1 CNY 1
Slide 4: Index
Index Accounting Finance Consolidated Results P 2 Summary of FY2020 P 2 Bond Redemption Schedule P 34 Change in Reportable Segments P 3 Increase in Gain on Investments P 4 Financial Strategy for FY2021 P 36 Investment Business of Holding Companies P 4 Main Investment Activities of SVF1 & SVF2 P 5 Fi
Slide 5: Accounting
Accounting
Slide 6: Consolidated Results
Consolidated Results (JPY bn) FY19 FY20 Change YoY Net sales 5,238.9 5,628.2 389.3 7.4% Income before 50.0 5,670.5 5,620.5 - income tax Net income (attributable to owners of -961.6 4,988.0 5,949.6 - the parent) (Reference) Gain on investments -1,410.2 7,529.0 8,939.2 - Investment Business of Holding
Slide 7: Change in Reportable Segments
Change in Reportable Segments • In Q1, “Investment Business of Holding Companies” was newly established. Segment income was revised to “income before income tax.” • In Q2, “Brightstar segment” was removed. “SoftBank Vision Fund and Other SBIA-Managed Funds” was renamed to “SVF1 and Other SBIA-Manage
Slide 8: Investment Business of Holding Companies Segment
Investment Business of Holding Companies Segment • Main businesses: Investment activities by SBG and its subsidiaries • Core companies: SBG, SBGC, SBGJ, and SB Northstar SBG By contract, two-thirds of gain/loss is attributable to SBG and the remaining one-third to non-controlling interests (Masayosh
Slide 9: Segment Income - Investment Business of Holding Companies
Segment Income - Investment Business of Holding Companies (JPY bn) P/L FY19 FY20 Items Gain on investments 484.3 946.1 (1) Gain of 280.3 bn on sales of T-Mobile shares (2) Gain of 296.0 bn on the revaluation of T-Mobile shares continued to be held by the Company Gain relating to sales of T-Mobile sh
Slide 10: Partial Sale of T-Mobile Shares and Evaluation at FY20-end
Partial Sale of T-Mobile Shares and Evaluation at FY20-end The Company sold (1) and (2) below in FY20Q1 and received JPY 1,830.4 bn. With additional sales of (3) and (4) in Q2, the Company received JPY 2,099.7 bn in aggregate for FY20Q1-Q2. P/L (FY20) (JPY bn) Evaluation at FY20-end Gain relating to
Slide 11: Investment in Listed Stocks and Other Instruments
Investment in Listed Stocks and Other Instruments • In order to diversify assets and manage surplus funds, investments were initially made directly by SBG and later by asset management subsidiary SB Northstar from Q2. • SB Northstar is engaged in acquiring and selling listed stocks and other instrum
Slide 12: Investment in Listed Stocks and Other Instruments: Main Impact on B/S and P/L
Investment in Listed Stocks and Other Instruments: Main Impact on B/S and P/L (Gain (Loss) on Investments) (JPY bn) Consolidated B/S Consolidated P/L Investor Investment type FY20-end Gain (loss) Account balance Account (minuses indicate liabilities) Q1 Q2 Q3 Q4 FY20 Realized gain on sales of invest
Slide 13: Price Sensitivity of Derivatives at SB Northstar
Price Sensitivity of Derivatives at SB Northstar (FY20-end) The below table shows the impact on income before income tax of changes in the market prices of the underlying assets from March 31, 2021 of options, total return swap contracts, and forward contracts related to listed stocks at SB Northsta
Slide 14: Details and Progress of the Agreement with WeWork
Details and Progress of the Agreement between the Company and WeWork in Oct 2019 and in FY20 Reduction of exercise price • The Company paid full amount of USD 1.5 bn in Oct 2019. Existing from USD110.00/share to • USD 200 mn was converted into preferred stock in Nov 2019, while the remaining USD 1.3
Slide 15: Investments and Debt Financing to WeWork-1
Investments and Debt Financing to WeWork from the WeWork Investment Subsidiary-1 Equity (USD mn) Consolidated Statement of Financial Position Consolidated Statement of Income Cumulative Gain (loss) Type Cumulative Carrying amount investment amount gain (loss) Account (Minuses show liabilities) Accou
Slide 16: Investments and Debt Financing to WeWork-2
Investments and Debt Financing to WeWork from the WeWork Investment Subsidiary-2 Debt (USD mn) Consolidated Statement of Financial Position Consolidated Statement of Income Cumulative Cumulative Type debt financing Carrying amount Gain (loss) gain (loss) Account (Minuses show liabilities) Account am
Slide 17: Derivative Gain (Loss) on Alibaba Prepaid Forward Contracts
Derivative Gain (Loss) on Alibaba Prepaid Forward Contracts (Impact on P/L) Amendment (JPY bn) of contracts FY20 cumulative Alibaba share price Income before -504.0 income tax (-$4.7 bn) Net income -732.9 Signing (JPY bn) (-$6.8 bn) Derivative gain 280.9 184.4 ($2.7 bn) ($1.7 bn) -18.5 Derivative lo
Slide 18: Structure After Business Integration of Z Holdings and LINE
Structure After Business Integration of Z Holdings Corporation and LINE Corporation Consolidated 40.9%*1 50% 50% Consolidated*2 JV Non-listed company 65.3% Listed company 100% 100% * The structure presented is simplified for illustrative purposes. *1 Holding ratio as of March 31, 2021 *2 SBKK holds
Slide 19: Business Integration of Z Holdings Corporation and LINE Corporation
Business Integration of Z Holdings Corporation and LINE Corporation Identifiable intangible assets: JPY 407.0 bn in total Goodwill: JPY 617.1 bn * The above amounts are fair values based on the best estimate currently available; therefore may change in a year from the acquisition date when additiona
Slide 20: Agreement for Sale of All Shares in Arm – Overview
Entry into Agreement for Sale of All Shares in Arm – Overview • In Sep 2020, the Company agreed to sell all of Arm shares to NVIDIA. • As the Company expects to hold approx. 6.7- 8.1% of NVIDIA shares, further upside can be enjoyed as the largest shareholder when the share price goes higher. (USD bn
Slide 21: Agreement for Sale of All Shares in Arm – Accounting
Entry into Agreement for Sale of All Shares in Arm – Accounting • Arm will continue to be classified under continuing FY20 FY21 FY22 operations (until the closing of the transaction is deemed Sep 13 (execution of Closing Purchase Agreement) Approx.18 months highly probable, such as after obtaining r
Slide 22: SPACs Controlled by SBG’s Subsidiaries
SPACs Controlled by SBG’s Subsidiaries A Special Purpose Acquisition Company (“SPAC”) is an investment vehicle formed for the purpose of effecting business combination with an existing operating company. • A subsidiary of SBG, as a sponsor, establishes a SPAC with a small amount of capital. The SPAC
Slide 23: SPACs Controlled by SBG’s Subsidiaries
SPACs Controlled by SBG’s Subsidiaries Nine SPACs controlled by SBG’s subsidiaries raised USD 3,304 mn in total through IPO in FY20 SBIA: USD 1,154 mn Investment fund business in Latin America: USD 230 mn Fortress: USD 1,920 mn (of which USD 345 mn from one entity that completed De-SPAC) Impact of e
Slide 24: Consolidated P/L Summary (IFRSs)
Consolidated P/L Summary (IFRSs) (JPY bn) P/L item FY19 FY20 Change Continuing operations Gain on investments at Investment Business of Holding Companies: +945.9 bn (see pages 5 and 8 for details) Net sales 5,238.9 5,628.2 +389.3 • Gain relating to sales of T-Mobile shares: 421.8 bn Gross profit • U
Slide 25: Tax Rate Analysis
Tax Rate Analysis FY20 Tax rate analysis Amount Rate (%) (JPY bn) Net income before income tax 5,670.5 Effective statutory tax rate 31.5% 1,783.9 （Main factors of tax rate analysis） (1) Permanent difference (mainly tax rate differences) -22.0% -1,247.9 (2) Anti-tax heaven taxation in Japan 6.9% 392.
Slide 26: Consolidated B/S Summary - Non-current assets
Consolidated B/S Summary (IFRSs) - 1 (JPY bn) As of As of 1 B/S item Main items Change Current assets related to investments from SB Northstar Mar 2020 Mar 2021 A: The fair value of listed stocks 15,636.9 10,820.2 -4,816.7 B: Securities pledged as collateral C: Fair value of long call option of list
Slide 27: Consolidated B/S Summary - Non-current liabilities
Consolidated B/S Summary (IFRSs) - 2 (JPY bn) B/S As of As of Main items Change item Mar 2020 Mar 2021 14,191.1 1 12,891.0 -1,300.1 1 Interest-bearing debt 3,845.2 2 7,735.2 +3,890.0 Interest-bearing debt (current) of SB Northstar • Short-term borrowings to be used in transactions for listed stocks:
Slide 28: Consolidated B/S Summary - Equity
Consolidated B/S Summary (IFRSs) - 3 (JPY bn) B/S As of As of Items Change item Mar 2020 Mar 2021 • Changes in interests in subsidiaries resulting from the partial sale of SBKK shares: +932.4 bn 7,372.9 11,955.6 +4,582.7 • Changes in interests due to a decrease in the equity stake in the new company
Slide 29: Consolidated C/F Summary (IFRSs)
Consolidated C/F Summary (IFRSs) (JPY bn) C/F item FY19 FY20 Change Primary details for FY20Q1-Q3 C/F from operating activities: decreased 602.5 bn yoy (Major reasons for decrease) Subtotal of cash flows from operating • Decrease of Income taxes paid by 613.4 bn yoy 1,119.2 C/F from activities • Dec
Slide 30: Segment Income - SVF1 and Other SBIA-Managed Funds
Segment Income - SVF1 and Other SBIA-Managed Funds (JPY bn) P/L FY19 FY20 Items Gain on investments at SVF1, SVF2, and others -1,844.9 6,357.5 SVF1 Realized gain on sales of investments 58.3 419.6 Sale of a portion of shares in five portfolio companies and all shares in eight portfolio companies (in
Slide 31: Appendix
Appendix
Slide 32: Changes in Presentation of P/L
Changes in Presentation of P/L ➢ In FY20Q1, “Gain (loss) on investments” is newly P/L after the revision of the presentation presented ➢ Operating income is no longer used Net sales Gross profit • The importance of investment activities has increased in the consolidated results, following the comple
Slide 33: Investment in Listed Stocks by SB Northstar: Gain/Loss on Investments
Investment in Listed Stocks by SB Northstar: Gain/Loss on Investments Transferred from SBG in P/L In case that SB Northstar continues Fair value held to hold listed shares after the shares at SB Northstar are transferred from SBG Transfer value P/L accounts to SB Northstar Valuation gain at SB North
Slide 34: Impact of the Asset Management Subsidiaries on SBG Consolidated B/S
Impact of the Asset Management Subsidiaries on SBG Consolidated B/S*1 (JPY bn) March 31, March 31, 2021 2021 Cash and cash equivalents 221.3 Interest-bearing debt 1,866.5 Investments from asset management subsidiaries 755.3 Derivative financial liabilities in asset management subsidiaries 14.7 Secur
Slide 35: Breakdown of Goodwill / Intangible Assets
Breakdown of Goodwill / Intangible Assets (JPY bn) Change B/S As of As of Main items Changes in Outline Item Mar 2020 Mar 2021 Amortization exchange Others rate 3,998.2 4,684.4 Arm 2,554.1 2,632.7 - +78.6 - Includes ISG businesses Goodwill SBKK 907.5 907.5 - - - *1 ZOZO 212.9 212.9 - - - LINE - 617.
Slide 36: Accounting Treatment for Partial Sale of SBKK Shares
Accounting Treatment for Partial Sale of SBKK Shares and After-tax Cash Proceeds • In May and Sep 2020, SBG sold a total of 1.27 bn shares of SBKK held through SBGJ (SoftBank Group Japan Corp.) and received a total of JPY 1.5 tn. ✓ May: 240 mn shares (shareholding ratio: 5.0%) sold for JPY 310.2 bn
Slide 37: Finance
Finance SBG standalone financial numbers are calculated by excluding numbers of self-financing entities from the consolidated numbers, unless otherwise stated. Major self-financing entities are SBKK, Arm, SVF1, SVF2, PayPay, Fortress, SB Energy, etc.
Slide 38: Summary of FY2020
Summary of FY2020*1 Investment businesses performed robustly, especially at SVF1 & SVF2. Completed shareholder return and financial improvement committed in ¥4.5T Program. Robust ⚫ Gain on investments totaled ¥7.5T, mainly from SVF1 & SVF2 investment - SVF1 & SVF2: Coupang, Auto1, etc. were listed i
Slide 39: Robust Investment Businesses
- Robust Investment Businesses - Status of Assets - Progress of ¥4.5T Program - Financial Condition - Financial Strategy - ESG Initiatives Finance 3
Slide 40: Increase in Gain on Investments
Increase in Gain on Investments Net income of ¥4,988.0B: Gain on investments at SVF1 & SVF2 increased significantly. Gain on investments Net income (attributable to owners of the parent) 持株会社投資事業 Investment Business of Holding Companies SVFおよびSVF2 SVF1 and SVF2 その他 Other investments Total gain (loss
Slide 41: Main Investment Activities of SVF1 & SVF2
Main Investment Activities of SVF1 & SVF2 (since Jan 2021) Large-scale IPO of Coupang and active new investments New listings New investments SVF1 SVF2 SVF2 Market Price Market Price (Gross)*3 (Gross)*2 IPO $26M IPO $28,039M Investment through SPACs*1 (IPO) IPO $2,301M SVF Investment Corp. A total o
Slide 42: SBG Share Price and Domestic Bond Yields
SBG Share Price and Domestic Bond Yields Share price continues to outperform the index. Domestic bond yields declined further. SBG share price*1 SBG domestic senior bond yield*2 (Since 2020) As of May 11 (%) (Since 2020) 5.0 225 200 200 (SBG) 4.0 175 3.0 149 (Nasdaq) 150 125 120 (Dow) 2.0 111 (TOPIX
Slide 43: Status of Assets
- Robust Investment Businesses - Status of Assets - Progress of ¥4.5T Program - Financial Condition - Financial Strategy - ESG Initiatives Finance 7
Slide 44: Equity Value of Holdings
Equity Value of Holdings Excluding asset-backed Equity value of holdings marked at ¥29.8T, finance driven by increase in SVF1 and SVF2’s equity value. Composition 30.9 (¥ T) 29.8 43％ Alibaba 8％ SBKK 26.3 26.9 21% SVF1 4％ SVF2 24.3 5％ T-Mobile (formerly Sprint) 12.7 9％ Arm 18.6 6％ Investments in list
Slide 45: Equity Value of Holdings: Increase despite Asset Monetization
Equity Value of Holdings Achieved an increase in value; Excluding asset-backed finance despite the large-scale asset monetization. (¥ T) ＋3.5T Breakdown of ¥3.5T increase 29.8 Increase in equity value, etc *1 + ¥8.0T 26.3 New and follow-on investments *2 + ¥1.6T 12.7 Alibaba Impact of Asset monetiza
Slide 46: Diversification of SBG’s Investment Portfolio
Diversification of SBG’s Investment Portfolio Further diversifying portfolio; as Alibaba’s proportion declined Excluding asset-backed and SVF1 & SVF2’s value increased finance March 31, 2020 March 31, 2021 Others Investment in Others listed stocks T-Mobile T-Mobile 5% 3% 6% 12% 5% Alibaba SBKK Aliba
Slide 47: Increase of NAV per Share
Increase of NAV per Share NAV per share is up 43%; due to increase in NAV and decrease in number of shares issued after share repurchases NAV NAV per Share and Share Price (¥ T) Increased 20％ (¥) Increased 43％ NAV increase 26.1 Share price + 15,015 15,000 NAV per share Effect of share repurchases 21
Slide 48: Investment Activities of SBG
Investment Activities of SBG Multiple investment entities are active in their focused fields, preparing for the full-scale AI era. Latin America SBG SVF1 SVF2 Fund SB Northstar Mainly AI management AI AI + Mainly of existing + + Unicorns Unicorns Unicorns Listed stocks investments (Region: Central a
Slide 49: SVF1 & SVF2: Gain (Loss) on Investments
SVF1 & SVF2: Gain (Loss) on Investments (SBG Consolidated Basis)*1 Recorded ¥3.6T gain on investments for FY20Q4, and cumulative ¥6.4T gain for FY20. ¥3.6T (¥ T) (sum of SVF1 and SVF2) 1.4 0.5 0.4 0.4 -0.2 1.1 0.3 -0.9 -1.1 FY18 FY18 FY19 FY19 FY19 FY19 FY20 FY20 FY20 FY20 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 50: SVF1 & SVF2: Cumulative Investment Performance
SVF1 & SVF2: Cumulative Investment Performance (SBG Consolidated Basis) Significant growth in asset values driven mainly by a greater demand for online services under COVID-19 and IPOs of portfolio companies. SVF1 SVF2 ($ B) ($ B) 150 140.7 bn 12 11.2 bn 10 Exited*1 1.8x 100 85.7 bn Currently held 4
Slide 51: SVF1: IRR results (SBG)
SVF1: IRR results (SBG) <Valuation Process> SBIA is responsible for determining fair values of the investments in SVF1 on a quarterly basis in line with the requirements of the AIFM Directive (as issued by the FCA). The SBIA Portfolio Valuations team is functionally independent from portfolio manage
Slide 52: SVF2: IRR results (SBG)
SVF2: IRR results (SBG) <Valuation Process> SBIA is responsible for determining fair values of the investments in SVF2 on a quarterly basis in line with the requirements of the AIFM Directive (as issued by the FCA). The SBIA Portfolio Valuations team is functionally independent from portfolio manage
Slide 53: SVF1&2: combined IRR results (SBG)
SVF1&2: combined IRR results (SBG) <Valuation Process> SBIA is responsible for determining fair values of the investments in SVF1 and SVF2 (together, the “Funds”) on a quarterly basis in line with the requirements of the AIFM Directive (as issued by the FCA). The SBIA Portfolio Valuations team is fu
Slide 54: Investments in Listed Stocks: Cumulative Gain (Loss) for FY2020
Investments in Listed Stocks and Other Instruments: Cumulative Investment Gain (Loss) for FY2020 SBG SB Northstar (¥ B) 113.5 Valuation gain: 134.0 Realized loss: - 20.5 264.2 - 610.6 Valuation gain: 42.2 - 67.1 Realized gain: 222.0 - 232.9 165.8 Actual stocks Actual stocks Derivatives Total investm
Slide 55: Investments in Listed Stocks and Other Instruments
Investments in Listed Stocks and Other Instruments（as of March 31, 2021) ($ M) Fair Value Amazon.com 6,211 Facebook 3,182 TSMC ADR 1,320 PayPal Holdings 1,180 Microsoft 1,030 Alphabet Class C 575 Stocks salesforce.com 385 Netflix 382 Pacific Biosciences of California 328 AbCellera Biologics 265 SPAC
Slide 56: Investments in Listed Stocks: Options
Investments in Listed Stocks and Other Instruments: Options (as of Mar 31, 2021) Fair value Notional principal $44.3B Long call option $13.4B of listed stocks $1.7B $13.8B $1.6B (net) $1.5B $1.5B $10.8B (net) (net) (net) -$0.2B -$0.09B -$2.6B Short call option of listed stocks -$30.5B Dec 20 Mar 21
Slide 57: Progress of ¥4.5T Program
- Robust Investment Businesses - Status of Assets - Progress of ¥4.5T Program - Financial Condition - Financial Strategy - ESG Initiatives Finance 21
Slide 58: Results of ¥4.5T Program
Results of ¥4.5T Program Monetized ¥5.6T, exceeding the original plan. ¥1T in total of Financial • Lower corporate bond yields Improvements repayment of bonds • Decline in LTV and bank loans Original plan ¥4.5T Returns to ¥2T of • Rise in share price Shareholders share repurchases*1 • Reduced NAV di
Slide 59: Debt Reduction of ¥1T
Debt Reduction of ¥1T Bond repurchase and early repayment of borrowings Repurchase of domestic Total ¥167.6B (total face value) unsecured bonds (Jul 2020) *1 Repurchase of foreign currency- Total ¥224.9B (total face value) denominated senior notes (Mar 2021) Repaid ¥1T in total Repayment of bank loa
Slide 60: Financial Improvements: Repurchase of Bonds
Financial Improvements: Repurchase of Bonds Repurchased corporate bonds under ¥4.5T Program. Provided opportunity for both domestic and oversea bondholders to subscribe. Repurchase of foreign currency- denominated Repurchase of domestic bonds senior notes (Mar 2021) (Jul 2020) • Much larger than the
Slide 61: Returns to Shareholders (Share Repurchases)
Returns to Shareholders (Share Repurchases) Completed the share repurchase of ¥2.5 trillion. Share repurchases Share Price Performance (From Jan 6, 2020 to May 12, 2021) (¥) 12,000 Authorized amount ¥2.5T Share price 10,635 (of which under ¥4.5T Program) (¥2.0T) Average repurchase price 10,000 8,000
Slide 62: LTV Trend
LTV Trend Excluding asset-backed finance LTV trend*1 • Immediate and large-scale 25% monetization, taking full advantage of highly liquid assets 18.0% 17.9% 14.9% • Agile financial management in *2 response to market 11.8% 12.4% conditions as articulated in 9.0% the financial policy Moneti- Moneti-
Slide 63: Financial Condition
- Robust Investment Businesses - Status of Assets - Progress of ¥4.5T Program - Financial Condition - Financial Strategy - ESG Initiatives Finance 27
Slide 64: LTV
LTV Excluding asset-backed finance 17.9% 12.4% Secured a large financial cushion with the completion of ¥4.5T Program and the growth in SVF1 & SVF2 FY19Q4 FY20Q4 (Mar 20) (Mar 21) * Presented LTV ratios are as of the end of each quarter. * See "LTV Calculation: SBG Standalone Net Debt" and "LTV Calc
Slide 65: Main Financial Activities in FY2020 Q4
Main Financial Activities in FY2020 Q4 Flexibly conducted monetization using equity holdings, refinancing, and debt reductions Fund procurement Issuance of domestic hybrid notes*1 (Feb) : ¥177.0B Borrowing using Alibaba shares (Mar) : $8.1B Debt reduction Repurchase of foreign currency-denominated s
Slide 66: Cash Position
Cash Position Always maintain ample cash position, more than sufficient for the bond redemptions for the next 2 years Cash position Bond redemption schedule*3 （¥ B) ¥2.9T *1, 2 310.0 undrawn commitment line Bond redemptions for the next 2 years (¥1.6T) 2,598.0 ＞ 1,221.6 426.0 841.1 542.0 Mar' 21 Apr
Slide 67: SBG Standalone Interest-bearing Debt
SBG Standalone Interest-bearing Debt*1 SBG standalone interest-bearing debt Main variance factors from Dec 31, 2020 (excluding non-recourse debt) remains flat. Issuance of domestic hybrid bonds (Feb): +¥177.0B Borrowing using Alibaba shares (Mar): +$8.1B 13,023.3 Repurchase of foreign currency-denom
Slide 68: SBG Standalone Cash Position
SBG Standalone Cash Position Maintain ample cash while balancing shareholder returns and investment expansion (¥ B) 4,601.6 3,589.6 3,437.5 2,175.0 SB Northstar (Cash and deposits and investments from asset management subsidiaries) 991.6 Cash position decreased due to increase in securities pledged
Slide 69: SBG Standalone Net Interest-bearing Debt
SBG Standalone Net Interest-bearing Debt Remained at a constant level under strict LTV Excluding SB Northstar management 8,558.8 (¥ B) 7,641.9 6,463.0 6,528.9 Adjustments relating to finance 4,849.0 Asset-backed finance ( -¥4,735.9B) 5,645.5 3,624.4 Hybrid finance ( -¥113.1B) 2,877.0 2,887.1 2,628.1
Slide 70: Bond Redemption Schedule
Bond Redemption Schedule Exploring various redemption options with refinancings as a main option (¥ B) Domestic straight bonds Procured (through domestic Domestic subordinated bonds hybrid bonds issued in Feb 2021) 177.0 Domestic hybrid bonds 1,044.6 1,021.2 Foreign currency-denominated senior notes
Slide 71: Financial Strategy
- Robust Investment Businesses - Status of Assets - Progress of ¥4.5T Program - Financial Condition - Financial Strategy - ESG Initiatives Finance 35
Slide 72: Financial Strategy for FY2021
Financial Strategy for FY2021 Establish optimal financial strategy as an investment company Financial management Firmly keeping to enable reproduction at investment financial policy business on an expanded scale Finance 36
Slide 73: Firmly Keeping Financial Policy (1/2)
Firmly Keeping Financial Policy (1/2) 1. Manage LTV below 25% in normal times (upper threshold of 35% even in times of emergency) 2. Maintain funds covering bond redemptions for at least the next 2 years 3. Secure recurring distribution and dividend income from SVF and other subsidiaries Finance 37
Slide 74: Firmly Keeping Financial Policy (2/2)
Firmly Keeping Financial Policy (2/2): Our Policy on Supporting Portfolio Companies Portfolio company finances to be No rescue self-financing package Finance 38
Slide 75: Financial Strategy for FY2021
Financial Strategy for FY2021 Establish optimal financial strategy as an investment company Financial management Firmly keeping to enable reproduction at investment financial policy business on an expanded scale Finance 39
Slide 76: Financial Management to Enable Reproduction at Investment Business
Financial Management to Enable Reproduction at Investment Business on Expanded Scale Procure funds to capture Establish a cycle of attractive investment investment and recovery opportunities • Establish a cycle of “investment” → • Utilize leverage with LTV in mind “recovery and CF generation” → “rei
Slide 77: Cycle of Investment and Recovery (Illustrative)
Cycle of Investment and Recovery (Illustrative) Cash inflows from investment exits are the source of funds for new investments in the future. Investment Investment Value-up IPO Exit Distribution lifecycle execution Sources of funds for Creation of CF through new investments investment recovery Now F
Slide 78: Cycle of Investment and Recovery (Illustrative)
Cycle of Investment and Recovery (Illustrative) To establish an investment cycle over the medium to long term Fund A Expand investment ¥ scale CF from investment Consider stakeholder recovery returns as appropriate Fund B ¥ Fund C ¥ Additional fund procurement as needed Finance 42
Slide 79: Direction of Financial Management (Illustrative)
Direction of Financial Management (Illustrative) Continue to procure funds to enable reproduction at investments at an expanded scale, while maintaining financial discipline and managing net debt increase to be more moderate than asset growth. Value increases in the mid-term; Enables balancing finan
Slide 80: Performance of Financial Management (Mar 2020 – Mar 2021)
Performance of Financial Management (Mar 2020 – Mar 2021) Under COVID-19, conducted large-scale monetization of assets and returns to stakeholders while controlling LTV (¥ T) 30.9 29.8 26.3 26.9 Investment 24.3 asset value 17.9% 14.9% LTV % 12.4% 11.8% 9.0% *1 4.7 4.0 3.6 3.7 Net debt 2.2 *1 Mar 20
Slide 81: ESG Initiatives
- Robust Investment Businesses - Status of Assets - Progress of ¥4.5T Program - Financial Condition - Financial Strategy - ESG Initiatives Finance 45
Slide 82: Summary of ESG Initiatives for FY2020
Summary of ESG Initiatives for FY2020 Worked to build a foundation, reinforce initiatives, and enhance information disclosure 1. Build a ・Appointed the Chief Sustainability Officer (CSusO) Foundation ・Established the Sustainability Committee <Environment> ・Established the Environmental Policy ・Addre
Slide 83: E: Environment - Climate Change Responses
E: Environment - Climate Change Responses Proactive promotion of greenhouse gas reduction ・Set greenhouse gas reduction targets for each business area. ・Continue to reduce greenhouse gas emissions through renewable energy businesses. Committing to Declared “FY2023 Announced 5 mega solar farms Net Ze
Slide 84: S: Society - Diversity and Inclusion Initiatives
S: Society - Diversity and Inclusion Initiatives SB Opportunity Fund Emerge ・The largest venture fund ($100M) ・An accelerator program to support in the U.S. for racial minorities under-represented entrepreneurs ・Invested in 28 companies (as of May 12, 2021) ・Invested in 13 companies among the progra
Slide 85: S: Society - COVID-19 Responses
S: Society - COVID-19 Responses (as of May 12, 2021) Established SB Coronavirus Inspection Center Corp. Provide immediate and maximum support for the unprecedented pandemic ・PCR testing center: 3 locations (Tokyo, Sapporo, Fukuoka) ・Number of companies applied (total): Approx. 7,100 companies*1 *1 I
Slide 86: G: Governance
G: Governance Achievements in FY20 Improved transparency in Established and held the Nominating & Integrate governance the process of determining Compensation Committee; and enhanced its the Directors’ renumeration functions (expansion of scope of deliberation) appropriate for a strategic investment
Slide 87: Sustainability Integration into Investments
Sustainability Integration into Investments Past activities ・Under the corporate philosophy of “Information Revolution — Happiness for everyone,” we have implemented environmentally and socially friendly investments and businesses. ・ESG assessment has also been conducted in the investment process of
Slide 88: Appendix
Appendix
Slide 89: SBG Credit Rating Trend
SBG Credit Rating Trend Aim to improve credit rating under the investment holding company rating criteria Acquisition of Acquisition of Acquisition Acquisition Listing Japan Telecom Vodafone KK of Sprint of Arm of SBKK A+ 14 A 13 A- 12 JCR (A－) Outlook Stable BBB+11 BBB 10 BBB- 9 BB+ 8 S&P (BB＋) Out
Slide 90: LTV Calculation: SBG Standalone Net Debt
LTV Calculation: SBG Standalone Net Debt (L) Adjusted SBG standalone net debt*1 ¥3.71T (V) SBG standalone = 12.4% ¥29.81T equity value of holdings = - - (¥ T) Adjusted SBG Consolidated Net debt at self- Other adjustments standalone net debt net debt financing entities 3.71 14.02 5.46 4.85 SoftBank s
Slide 91: LTV Calculation: SBG Standalone Equity Value of Holdings
LTV Calculation: SBG Standalone Equity Value of Holdings (L) Adjusted ¥3.71T SBG Standalone Net Debt (V) SBG Standalone = 12.4% Equity Value of Holdings ¥29.81T (¥ T) SBG standalone Interest of SBG in Other, investments in holdings = Major shares + SVF1/SVF2 + listed stocks, etc. 29.81 19.24 7.51 3.
Slide 92: SVF1: Capital Commitment
SVF1: Capital Commitment (as of March 31, 2021) ($ B) 98.6 (85.4) * Numbers in brackets represent amounts contributed. SBG 33.1*1 (29.3) 65.5 (56.1) Third-party limited partners *1 The presented SBG’s committed capital to SVF1 includes approximately $8.2 billion of an obligation satisfied by using A
Slide 93: SVF1 Snapshot
SVF1 Snapshot (as of March 31, 2021) 1. Gross Return to SVF1 is the sum of the cumulative Gross Realized Proceeds from exited and partially exited investments, realized dividend income related to portfolio companies, and Fair Market Value of unrealized investments held by SVF1 as of March 31, 2021.
Slide 94: SVF1 Listed Portfolio Companies
SVF1 Listed Portfolio Companies (as of March 31, 2021) ※3 1. Listed company total only includes companies that have become publicly listed on or after the date SVF1 made its initial investment in the companies. The companies indicated as fully exited are fully exited companies that became publicly l
Slide 95: SVF2 Snapshot
SVF2 Snapshot (as of March 31, 2021) 1. Gross Return to SVF2 is Fair Market Value of unrealized investments held by SVF2 as of March 31, 2021. Gross Gain/(Loss) to SVF2 is the difference between the Gross Return to SVF2 and Investment Cost to SVF2. Gross Realized Proceeds are before tax and expenses
Slide 96: SVF2 Listed Portfolio Companies
SVF2 Listed Portfolio Companies (as of March 31, 2021) 1. Listed company total only includes companies that have become publicly listed after SVF2 made its initial investment in the companies. 2. Gross Return = Unrealized value. SBG’s return on any SVF2 portfolio company is not the full return amoun
Slide 97: Entry into Agreement for Sale of Shares in Arm to NVIDIA
Entry into Agreement for Sale of Shares in Arm to NVIDIA Remain committed to the long-term success of NVIDIA as a major shareholder (approximately 6.7- 8.1% ownership expected). Received by the Company as a deposit*1 Cash $2.0B Cash $10.0B To be received by the Company*2 Transaction upon closing val
Slide 98: Consolidated SBG: Interest-bearing Debt, Cash Position, Net Debt
Consolidated SBG: Interest-bearing Debt, Cash Position, and Net Interest-bearing Debt Consolidated Interest-bearing Debt *1 (\ B) Mar.20 Jun.20 Sep.20 Dec.20 Mar.21 SBG standalone 8,281.3 9,803.6 9,319.8 11,218.9 13,023.3 Incl. SB Northstar - - 364.3 1,528.8 1,866.5 SVF1 and SVF2 581.5 159.1 156.3 2
Slide 99: SoftBank Vision Funds Update – Quarter Ended March 31, 2021
QUARTER ENDED MARCH 31, 2021 SoftBank Vision Funds Update NAVNEET GOVIL Managing Partner & Chief Financial Officer SoftBank Investment Advisers SoftBank Investment Advisers
Slide 100: Important Information (1 of 2)
Important Information (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 paralle
Slide 101: Important Information (2 of 2)
Important Information ¢ of 2) Vision Fund | 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, an
Slide 102: Topics
Topics O1- Progress & Highlights 02- Performance & Impact on SoftBank Group (SBG) 03- In Focus: Unlocking Portfolio Value = SoftBank Investment Advisers
Slide 103: Progress & Highlights
Progress & Highlights Investment Advisers
Slide 104: Performance Snapshot
PROGRESS & HIGHLIGHTS Performance Snapshot As of March 31, 2021 Va SVF1 & SVF2 COMBINED METRICS Total Fair Value? Cumulative Investment Gains” . Total Cumulative ‘ Total Commitment Acquisition Cost? Investment Gains? Total Fair Value! Distributions? $154.0B $62.1B $22.3B Distributions? SVF1 $98.6B $
Slide 105: A Broad and Diverse Portfolio
PROGRESS & HIGHLIGHTS A Broad and Diverse Portfolio... As of March 31, 2021 PRIVATE? Encoded® MindTickle? oe xralPi Alkle- Qm iv.e er KARIUS ebiofourmis pF tessera Bunacademy — BEHAVOX ss rdermark. PTEMPO FORWARD MDIDiAutonomous WHOOP VIVIDION elevatebia Bo me ©& ShipBob STANDARD = =. Cameo @sendbir
Slide 106: Invested Across Disruptive Sectors
PROGRESS & HIGHLIGHTS ...Invested Across Disruptive Sectors As of March 31, 2021 $ a a Bs Consumer Enterprise Health Tech Transportation Frontier Tech Logistics Proptech 15% 5% T% 21% 8% 9% A% 9% 22% $0.2B $0.9B | $0.3B $0.5B $0.5B $1.4B $1.3B $0.5B $0.6B ACQUISITION COST BY SECTOR? == SoftBank Inve
Slide 107: Measurable Value in Our Portfolio
PROGRESS & HIGHLIGHTS Measurable Value in Our Portfolio As of March 31, 2021 Total Acquisition Cost* Cumulative Investment Gains? Total Fair Value? $85.7B $57.1B $142.8B Realized Investments? Unrealized Investments FULL & PARTIAL fg PUBLIC | PRIVATE $69.0B $62.2B $54.0B $19.8B $10.5B $13.0B Cost Gro
Slide 108: Coupang IPO Drives Substantial Valuation Uplift
PROGRESS & HIGHLIGHTS Coupang IPO Drives Substantial Valuation Uplift As of May 07, 2021 10 Gross MOIC* Gross Unrealized Gain? Current Market Cap® weeerse — COUPANS 8.1x | $19.4B | $66.8B Cost* Trading Activity® ~~ MAY 07, 2021 $38.93 IPO - MAR 11, 2021 $35.00 ‘SEP 28, 2018 $4.80 e XR Footnotes: fle
Slide 109: Additional IPOs Continue to Unlock Value
PROGRESS & HIGHLIGHTS 11 a 1 . Additional |POs* Continue to Unlock Value As of May 07, 2021 , i i Gross MOIC? Gross MOIC? i ngXM ETR: AGL NASDAQ: XM ualtrics’ GROUP 3.1x q 1.2x Cost? Trading Activity* Cost? Trading Activity* MAY 07,2021 er 88S "$35.61 IPO- FEB 04,2021 ? €38.00 | . Qossessescsessesq
Slide 110: Active Public Listings
PROGRESS & HIGHLIGHTS Active Public Listings As of March 31, 2021 12 >) >) a coupang “> voorvasn | | @GUARDANT azeua || Opendoor g RELAY y A ETR: AGL NYSE: CPNG NYSE: DASH NASDAQ: GH NYSE: OCFT NASDAQ: OPEN NASDAQ: RLAY GROSS MOIC! GROSS MOIC! GROSS MOIC! GROSS MoICc? GROSS MOIC? GROSS MOIC! GROSS M
Slide 111: Recent Funding Rounds
PROGRESS & HIGHLIGHTS Recent Funding Rounds Pre-Money Valuations 13 goPuff = . . CLUISe © Fanatics Jan 2021 $25.88 Mar 2021 $12.5B i Prior Round: 9 ester‘ Series G feel Series F ran found: Lead Lead Investors: HEMcosot | GM Investor; SILVERLAKE nf, | ackscone fA OLS S SoftBank W Walmart >< o_o Fidel
Slide 112: Additional SPAC Launches
PROGRESS & HIGHLIGHTS Additional SPAC Launches Over $1.1B Raised to Accelerate Growth in Target Companies ia - he asdAg CONGPATULar | i | ys cONGRATIL | gif INVESTMENT Copp {\ fINVESTMENT Con t ON THEIR IPO! Fi { ON THEIR IPO! Ul 1 = SoftBank = SoftBank SVFB NasdaqListed SVFC NasdaqListed Nasdaq Nas
Slide 113: Performance & Impact on SoftBank Group (SBG)
Performance & Impact on SoftBank Group (SBG) Investment Advisers
Slide 114: Performance & Impact on SBG: SVF1
PERFORMANCE & IMPACT ON SBG Contribution to SBG, Net of 3 Party Interests" Amounts in USD billions Footnotes: 1. Contributio the Fund t SVF1 16 . 2020 2021 Twelve-Month Period Ended Mar 31 Mar 31 Fund Net Profit (Loss)? ($14.81) $44.48 Less: Ch: in 3 Part interests in Fund “y 7.74 (21.64) SBGLP| (Lo
Slide 115: Performance & Impact on SBG: SVF1 Inception to Date
17 SVF1 2021 Inception to Mar 31 — Fund Net Profit? $40.47 PERFORMANCE & IMPACT ON SBG Less: Change in 3Part Contribution to Interests in Fund (19.79) SBG, Net of 3K SBG LP Income: 20.68 Pa rty Interests?? Share of Fund Net Profit : ali SBG GP Income: Amounts in USD billions Management & Performance
Slide 116: SBG Paid-In Capital
18 SBG Paid-In Capital* PERFORMANCE & IMPACT ON SBG $ ) . | Pe Contribution to SBG, Realized and SBG Total Value’ . . otal Value’ Net Asset Valu: Unrealized Values (Unrealized Value) $46.1B As of March 31, 2021 $ 5 [ . 4 e — Realized value) $1.7B Accrued & Paid Performance Fees® $ 9 . 6 B Footnotes:
Slide 117: SBG Paid-In Capital
19 SBG Paid-In Capital® PERFORMANCE & IMPACT ON SBG $ 6 . s) Pe Contribution to SBG, Realized and Unrealized Values et [— Uneaizedvre $10.7B As of March 31, 2021 1 1 8 P 4 e Ls Accrued $1 1B Performance Fees” SBG Total Value* Footnotes: 1 Net Asset Value includes net changes in fir value of financia
Slide 118: In Focus: Unlocking Portfolio Value
In Focus: Unlocking Portfolio Value == OoftBank Investment Advisers
Slide 119: Our Philosophy
UNLOCKING PORTFOLIO VALUE Our Philosophy Limited 21 SoftBank Vision Funds Portfolio Long-term, Companies Patient Investor “osha pntnnsnnngunnie = SoftBank Investment Advisers
Slide 120: Disciplined Monetization and Distributions
UNLOCKING PORTFOLIO VALUE 22 Disciplined Monetization and Distributions PORTFOLIO COMPANIES SOFTBANK VISION FUNDS $ Strategic Exit Strategy Growth & Expansion ~ Public Listing rl M&A =) ipo, OPO. or SPAC & »S Financial Opportunistic Monetization Factors PHASE 3 Monetization = SoftBank tions sno sroc
Slide 121: Steadily Growing Distributions to Investors
UNLOCKING PORTFOLIO VALUE 23 Steadily Growing Distributions to Investors Inception to March 31, 2021 Cumulative Distributions” $22.3B $10.7B $5.7B $0.2B — 2017 Mar2018 Mar 2019 Mar2020 Mar 2021 Fund incept Wincludes he Retun of Recall tized Contibutions and the Return af = SoftBank Investment Advise
Slide 122: Preferred Equity Investors: Distribution Waterfall
24 PREFERRED EQUITY INVESTORS Payment of Preferred Equity Coupon PREFERRED EQUITY INVESTORS UNLOCKING PORTFOLIO VALUE Key Steps of the Distribution Waterfall NANCE Return of Equity Contributions Return of Preferred Equity Contributions EQUITY INVESTORS Distribution of Equity Gains to LPs = SoftBank
Slide 123: Net Proceeds Distributed Through Waterfall
Net Proceeds Distributed Through Waterfall Payment of Preferred Equity Coupon UNLOCKING PORTFOLIO VALUE . . . Return of Preferred Distributions Through Equity Contributions the Waterfall Inception to March 31, 2021 Return of Equity Contributions Distribution of Equity Gains to LPs the respective dat
Slide 124: Distributions Have Significantly Reduced Ongoing Coupon Payments
UNLOCKING PORTFOLIO VALUE 26 Distributions Have Significantly Reduced Ongoing Coupon Payments Inception to March 31, 2021 Steps 2&3 Distribution Waterfall (A) (B) (C) (D) = (8)-(C) Fund Drawn Return of Outstanding Commitment Capital’ Capital? Capital® Preferred Equity $40.0B $35.2B $14.0B Equity $58
Slide 125: Continued Focus on Value and Distributions
UNLOCKING PORTFOLIO VALUE 27 Continued Focus on Value and Distributions Inception to March 31, 2021 Value Maximization & Distributions through Public Listings and M&A Track Record Cumulative Distributions to our Investors Fund Inception Year 4 12-Year Fund Life May 20, 2017 March 31, 2021 + 2-Year E
Slide 126: Significant Portfolio Value Unlocked Through Public Listings
28 mm Exited" $142.8B lm Public? Private® Demonstrated Track Record f Exits and Public Listi UNLOCKING PORTFOLIO VALUE $85.7B $54.0B ONSET aaa” Significant Portfolio | sisce_| a Value Unlocked — Through Public Listings As of March 31, 2021 $62.2B $69.0B Unrealized Future Potential Cost* Fair Value*
Slide 127: Portfolio Evolution
29 58% Combined Exited & Public Fair Value* $81.9B re 26% UNLOCKING PORTFOLIO VALUE L Combined Exited & $10.1B | Public Fair Value* Portfolio Evolutio 1 M Exited’ ©) Public? $61.0B $59.3B Private? Mar 2020 Mar 2021 Pro-Forma® Footnotes: 1. Exited reprosents the Gross Realized Proceeds for full and p
Slide 128: Maximizing Value for Our Investors
UNLOCKING PORTFOLIO VALUE 30 Maximizing Value for Our Investors Value Creation Monetization Distributions = SoftBank 1 dota ofthis precetatin There cn ben sxsrance thatthe operation andor processes of BIA snd SoBe Vian Fund 1 descents Peseta wil eantiuthaughat theif of Slane Vian Fund 1 ay Investmen
Slide 129: Thank You
31 Thank You SoftBank Vision Funds Investor Briefing Presentations Available at visionfund.com/presentations = SoftBank Investment Advisers
Slide 130: SoftBank
SoftBank