Softbank Group Corp. · TSE:9984
Softbank — Q3 FY2021 Earnings Presentation
112 slides from Softbank's earnings presentation, Feb 10, 2022
Slide 1: Earnings Results for the Nine-month Period Ended December 31, 2021
Earnings Results for the Nine-month Period Ended December 31, 2021 Investor Briefing February 10, 2022 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 FY2020 FY2021 Average during quarter Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1 USD 107.74 105.88 104.45 106.24 110.00 110.47 113.60 1 CNY 15.16 15.27 15.71 16.31 17.01 17.09 17.75 EOQ Jun 30 Sep 30 Dec 31 Mar 31 Jun 30 Sep 30 Dec 31 Mar 31 1 USD 110.71 115.02 1 CNY 16.84
Slide 4: FY21Q3: External Environments & SBG's Initiatives
FY21Q3: External Environments & SBG’s Initiatives External environments SBG’s initiatives Tightened regulations in China Arm to start preparations for a FY22 and elsewhere public offering Continue investing in unicorns: Heightened geopolitical risks SVF2 invested $36.3B including 165 Chang
Slide 5: Index
Index • Accounting • Finance • SoftBank Vision Funds Update
Slide 6: Accounting
Accounting
Slide 7: Consolidated Results
Consolidated Results FY20 FY21 (¥ B) Q1-Q3 Q1-Q3 Change Change % Net sales 4,138.0 4,580.8 442.8 10.7% Income before 3,361.5 1,234.7 -2,126.8 -63.3% income tax Net income (attributable to owners of the 3,055.2 392.6 -2,662.5 -87.1% parent) (Reference) Gain on investments 3,799.5 -551.8 -4,351.2 ― In
Slide 8: Change in Reportable Segments
Change in Reportable Segments • From FY21Q1, Latin America Funds, which were previously included within “Other,” are newly presented as independent reportable segments. • In FY21Q2, “SoftBank Vision Funds Segment” was renamed from “SVF1 and Other SBIA-Managed Funds Segment.” FY20 Investment SVF1 and
Slide 9: Subsequent Event: Termination of Agreement on Sale of All Shares in Arm
Subsequent Event: Termination of Agreement on Sale of All Shares in Arm - Accounting Treatment • Sep 2020: Agreed on a sale of all Arm shares to NVIDIA • Feb 2022: Terminated the sale agreement – $2.0B cash received in Sep 2020 $1.25B: SBGC received as a deposit* -> Recognize as profit in the FY21
Slide 10: Segment Income – Investment Business of Holding Companies
Segment Income – Investment Business of Holding Companies (¥ B) P/L item FY20 FY21 Items Q1-Q3 Q1-Q3 Gain on investments at Investment Business 846.5 15.8 of Holding Companies Gain relating to settlement of prepaid forward Gain relating to settlement of prepaid forward contracts using Alibaba shares
Slide 11: Partial Sale of T-Mobile Shares in September 2021
Partial Sale of T-Mobile Shares in September 2021 Number of shares held Procured Execution T-Mobile Deutsche Transaction amount timing shares Telekom shares ($ B) (millions) (millions) Borrowings made using 106.3 million T-Mobile shares pledged as a 4.38 Jul 2020 collateral (margin loan) Number of s
Slide 12: T-Mobile Shares – The Company's Holding & Fair Values
T-Mobile Shares – The Company’s Holding (incl. Deutsche Telekom’s Unexercised Call Options) & Fair Values T-Mobile shares held by the FY20 FY21 Company as of FY21Q3-end: Jun 26 Q4-end Q1-end Q2-end Q3-end 60.92 million shares ((i)+(ii) below) $144.83 (i) Unexercised portion of call T-Mobile share pr
Slide 13: Deutsche Telekom Shares – Holding & Fair Values
Deutsche Telekom Shares – The Company’s Holding & Fair Values In September 2021, FY21 the Company acquired Execution in Sep Q2-end Q3-end 225 million Deutsche Telekom shares in return for the sale of Deutsche Telekom share price €17.67 T-Mobile shares. €17.40 €16.30 Fair value ($ M) 4,665 4,537 4,17
Slide 14: T-Mobile Shares – Fair Values of Contingent Consideration
T-Mobile Shares – Fair Values of Contingent Consideration $144.83 • Contingent consideration: The Company’s right to $134.85 $125.29 $127.76 acquire 48.75 million T-Mobile shares for no $115.98 T-Mobile share price $114.36 additional consideration if $104.15 certain conditions are met • Conditions:
Slide 15: 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) (¥ B) Consolidated B/S Consolidated P/L Consolidated B/S Consolidated P/L Cumulative gain (loss) Investor Investment type (Minuses show amount recorded account liabilities) account since incept
Slide 16: Derivative Gain (Loss) on Alibaba Prepaid Forward Contracts
Derivative Gain (Loss) on Alibaba Prepaid Forward Contracts (Quarterly Trend) Alibaba share price (Impact on P/L) Amendment of contracts $226.73 $226.78 FY21 (¥ B) Q1-Q3 $148.05 Income before 1,058.2 Amendment income tax ($9.5B) Signing of contracts $118.79 Net income 684.9 ($6.1B) Day 1 gain on 63.
Slide 17: Consolidated P/L Summary (IFRSs)
Consolidated P/L Summary (IFRSs) (¥ B) FY20 FY21 Gain on investments at Investment Business of Holding Companies: P/L item Change Q1-Q3 Q1-Q3 +¥16.0B (See page 5 for details.) Continuing operations • Gain related to settlement of prepaid forward contracts using Alibaba shares: Net sales +4,138.0 +4,
Slide 18: Consolidated B/S Summary – Assets
Consolidated B/S Summary (IFRSs) – 1 (¥ B) B/S As of As of Main items Change item Mar 2021 Dec 2021 1 10,820.2 9,588.3 -1,231.9 Current assets related to investments from SB Northstar A: Decrease primarily due to sale of listed stocks Cash and cash equivalents 4,662.7 4,618.8 -44.0 B: Decrease due t
Slide 19: Consolidated B/S (Main Investments)
Investment Securities on Consolidated B/S (Main Investments) (¥ B) As of As of Change Outline Mar 2021 Dec 2021 Investment securities 3,706.8 3,871.7 +164.9 FVTPL 3,187.6 3,378.0 +190.4 • New and follow-on investments and increase in fair values of investments Latin America Funds 441.0 976.7 +535.7
Slide 20: Consolidated B/S Summary – Liabilities
Consolidated B/S Summary (IFRSs) – 2 (¥ B) B/S As of As of Main items Change item Mar 2021 Dec 2021 1 12,891.0 11,956.6 -934.4 SB Northstar: Borrowings (current) -¥1,591.2B 1 Decrease in short-term borrowings of ¥935.7B and repayment of $6.0B margin Interest-bearing debt 7,735.2 7,262.3 -472.9 loans
Slide 21: Consolidated B/S Summary – Equity
Consolidated B/S Summary (IFRSs) – 3 (¥ B) B/S As of As of Items Change item Mar 2021 Dec 2021 11,955.6 12,846.1 +890.5 Common stock 238.8 238.8 ― 1 • Net income attributable to owners of the parent: +¥392.6B • Decreased following the retirement of treasury stock: -¥2,475.8B Capital surplus 2,618.5
Slide 22: Consolidated C/F Summary (IFRSs)
Consolidated C/F Summary (IFRSs) (¥ B) FY20 FY21 C/F item Change Primary details for FY21Q1-Q3 C/F from operating activities: +¥2,482.0B yoy Q1-Q3 Q1-Q3 • Sale of investments, etc. by SB Northstar: +¥1,907.4B (cash inflows) Subtotal of cash flows from C/F from 3,224.7 • Increase in income taxes paid
Slide 23: Segment Income – SoftBank Vision Funds
Segment Income – SoftBank Vision Funds (¥ B) FY20 FY21 P/L Q1-Q3 Q1-Q3 FY21 Items Gain (loss) on investments at SVF1, SVF2, and others 2,767.3 -579.7 SVF1: +¥1,016.7B (net) Entire sale of shares in 1 portfolio company and a partial sale of shares in 14 Realized gain on investments 205.3 1,127.6 port
Slide 24: Co-investment Program to SVF2: Related Party Transaction
Co-investment Program to SVF2: Related Party Transaction Masayoshi SBG Son* 1 Equity interests: 17.25% (B) (A) Distribution: $173M Equity acquisition amount: $2,923M 100% (Return of capital) (1) Acquisition costs: $2,594M (committed capital: $2.6B) (2) Adjustments etc.: $329M Equity interests: 82.75
Slide 25: Appendix
Appendix
Slide 26: Investment in WeWork
Investment in WeWork • In August 2021, SBG transferred SBWW, a wholly owned subsidiary that holds WeWork common stock and preferred stock, to SVF2 in accordance with the policy for handling the investment portfolio. • On October 21, 2021, WeWork listed on NYSE thorough a merger with a SPAC, BowX Acq
Slide 27: Main intangible assets
Breakdown of Goodwill / Intangible Assets (¥ B) Change B/S As of As of Main items Changes in Outline Item Mar 2021 Dec 2021 Amorti- exchange Others zation rate 4,684.4 4,720.9 * Arm 2,621.6 2,723.6 ― +102.1 ― Goodwill SBKK 907.5 907.5 ― ― ― Increased due to the revision of the provisional LINE 627.9
Slide 28: T-Mobile Shares – Partial Exercise of Call Options by Deutsche Telekom
T-Mobile Shares – Partial Exercise of Call Options by Deutsche Telekom & Loss on Partial Sale of T-Mobile Shares Related to the Exercise • In September 2021, Deutsche FY20 FY21 Telekom partially exercised its call Jun 26 Q4-end Q1-end execution in Sep options. $144.83 (Breakdown of the exercised cal
Slide 29: Finance
Finance SBG stand-alone 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, Latin America Funds, PayPay, Fortress, SB Energy, etc.
Slide 30: Summary of FY2021Q1-Q3
Summary of FY2021Q1-Q3*1 Continue steady investment activities while keeping financial policies Secured net income of ¥392.6B despite loss on investments due to Results falls in share prices of portfolio companies / NAV - While ¥551.8B investment loss was recorded, net income*2 held up at ¥392.6B -
Slide 31: Results of Investment Businesses, Financial Condition, Financial Strategy, ESG
- Results of Investment Businesses - Financial Condition - Financial Strategy - ESG Initiatives Finance 3
Slide 32: Investment Activities of the Group
Investment Activities of the Group Multiple investment entities are active in their focused fields, preparing for the full-scale AI era. SBG SVF1 AI ＆ Unicorns Existing investments 83 companies in total etc. SVF2 Latin America Funds AI & Unicorns AI & unicorns (Region: Latin America) etc. 84 compani
Slide 33: Investment Strategy of SoftBank Group
Investment Strategy of SoftBank Group SoftBank Group ＝ ”Vision Capitalist” for the Information Revolution Invest in unicorns globally through SVF and other investment entities Aim to realize our vision by driving innovation and disruption using AI through our portfolio companies Focus on maxim
Slide 34: Gain (Loss) on Investments & Net Income
Gain (Loss) on Investments & Net Income Secured net income of ¥392.6B despite loss on investments Gain (loss) on investments Net income (attributable to owners of the parent) ■ Investment Business of Holding Companies ¥3,799.5B ■ SVF1&2 ■ Latin America Funds ¥3,055.2B ■ Other Gain relating ● Total g
Slide 35: Equity Value of Holdings
Equity Value of Holdings Equity value of holdings decreased to ¥24.7T, yet remaining at high level Excluding asset-backed finance （¥ T） Composition (as of December 31, 2021) 32.1 24％ Alibaba 3％ T-Mobile 30.4 9％ SBKK 0.3％ Deutsche Telekom 28.1 21％ SVF1 11％ Arm 20％ SVF2 3% SB Northstar 25.7 12.4 24.7
Slide 36: NAV & NAV per Share
NAV & NAV per Share NAV and NAV per share both decreased NAV (Net Asset Value) NAV per share*1 and share price (¥ T) (¥) Share price NAV per share 15,000 20.9 19.3 12,191 11,363 10,000 6,480 5,434 5,000 0 Sep 21 Dec 21 Sep 21 Dec 21 (Note) As of the end of each quarter *1 NAV per share = NAV/Total n
Slide 37: Equity Value of Holdings: Diversification of Portfolio
Equity Value of Holdings: Diversification of Portfolio Greater asset diversification due to increased value of SVF1&2 Excluding asset- compared to March 31, 2020 backed finance March 31, 2020 December 31, 2021 Proportion of Proportion Proportion of of listed listed shares listed shares shares (net o
Slide 38: SVF1&2: Cumulative Investment Return
SVF1&2: Cumulative Investment Return (SBG Consolidated Basis, as of Dec 31, 2021) Cumulative investment return of $137.9B at SVF1 and $48.0B at SVF2 SVF1 SVF2 ($ B) ($ B) 150 137.9 75.0 Exited*1 2.1x 48.0 100 88.6 50.0 43.1 Exited*1 2.4x Currently held 1.4x Currently held 1.3x and listed and listed
Slide 39: SVF1&2 etc. Portfolio Companies Fair Value
SVF1&2 etc. Portfolio Companies Fair Value (as of Dec 31, 2021; unrealized value only) Invest in a wide range of regions Asia, Europe, US Latin America, 34% etc. 48% China 18% (Notes) 1. SVF1&2 etc.: SVF1, SVF2, LatAm Funds, other listed and unlisted investments by SBG (excluding Alibaba, T-Mobile,
Slide 40: SVF1&2: Average Investment Cost Scaled Down
SVF1&2: Average Investment Cost Scaled Down SVF2’s average investment cost per company is $0.2B SVF1 SVF2 Average investment cost Average investment cost per company per company $0.9B $0.2B Cumulative Cumulative investment cost $87B investment cost $37B Cumulative number Cumulative number of investm
Slide 41: Activities of SVF1&2 (FY21Q1-Q3): Investments
Activities of SVF1&2 (FY21Q1-Q3): Investments New and follow-on investments mainly at SVF2 totaling $39.2B Sale / Investment New listing Monetization Fund Investments (Alphabetical order) Sector SVF1 Investment cost: $2.9B AutoStore Logistics Jellysmack Consumer Revolut Fintech $39.2B SVF2 Swiggy Co
Slide 42: Activities of SVF1&2: New Listings
Investment Activities of SVF1&2 (FY21Q1-Q3): New Listings Multiple large-scale listings with favorable pipeline Sale/ Investment New listing Monetization Companies to be listed Fund Companies listed (Q1-Q3) (Q4 onwards)*1 SVF1 11 companies with a total fair value of $21.0B 3 companies in total as of
Slide 43: Activities of SVF1&2: Sale/Monetization
Investment Activities of SVF1&2 (FY21Q1-Q3): Sale/Monetization A total of $22.2B of sales & monetization*1 Sale/ Investment New listing Monetization Fund Sale/Monetization*1 SVF1 partial sale of 14 investments incl. above $16.0B in total*1 （partial） KE Holdings SVF2 (Beike) plus entire sale of 1 inv
Slide 44: Cycle of Investment and Recovery (FY21Q1-Q3)
Cycle of Investment and Recovery (FY21Q1-Q3) Approx. ¥2.0T invested capital was recovered and funded for new investments. Share repurchase has started. Contribution to SVF1 Investments/ ¥57.5B ($0.5B) Return to shareholders Source of investments Distribution SVF1からの分配 from *1 1,641億円 &2 SVF1*2($1.5B
Slide 45: SVF1&2: Capital Commitment
SVF1&2: Capital Commitment (as of Dec 31, 2021) ($ B) 2.6 *1 SVF1 33.1 SVF2 65.5 （29.8） 48.4 （57.3） 98.6 51.0 (87.1) (43.3) SBG Third-party limited partners Management, etc.*2 * Numbers in brackets represent amounts drawn. (Notes) *1 The presented SBG’s committed capital to SVF1 includes approximate
Slide 46: Arm: Aim for Listing in FY2022
Arm: Aim for Listing in FY2022 Agreed with NVIDIA to terminate the sale of Arm Arm to aim for listing in FY2022 (Note) See the press release dated February 8, 2022, "Termination of Agreement to Sell All Shares in Subsidiary Arm and Preparation for Arm Public Offering” for details. Finance 18
Slide 47: Arm: Revenue and Adjusted EBITDA (annual)
Arm: Revenue and Adjusted EBITDA (annual) Revenue*1 (annual) Adjusted EBITDA*2 (annual) （$M） $2.5B （$M） 1,980 1,823 1,788 1,809 1,689 $900M 827 596 436 371 365 FY16 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY18 FY19 FY20 FY21 （予想） (forecast) （予想） (forecast) (Notes) 1. Source: Arm 2. All numbers are unaudi
Slide 48: Arm Will Prepare for the Most Significant IPO in Semiconductor History
Arm Will Prepare for the Most Significant IPO in the History of the Semiconductor Industry World’s leader in mobile, gaining share in large and growing markets including automotive and infrastructure Forecasting revenues to grow 26%*1 in FY21 and Adj. EBITDA up 2.5x from trough*2 Highly profitable a
Slide 49: Results of Investment Businesses, Financial Condition, Financial Strategy, ESG
- Results of Investment Businesses - Financial Condition - Financial Strategy - ESG Initiatives Finance 21
Slide 50: Main Financial Activities in FY21Q3
Main Financial Activities in FY21Q3 Diversified financing to enhance financial flexibility Redemption of domestic subordinated bonds at maturity Corporate bonds Domestic subordinated bonds issued in -¥361.6B (-$3.1B) 2014 Alibaba shares Forward transactions +¥254.2B ($2.2B) Repayment of existing Rep
Slide 51: LTV Trend
LTV Trend Excluding asset-backed finance LTV trend*1 25% *2 21.6% 18.7% 17.5% 17.5% 15.9% Continue to 14.3% maintain sufficient 11.6% 12.2% financial buffer 8.8% Dec 19 Mar 20 Jun 20 Sep 20 Dec 20 Mar 21 Jun 21 Sep 21 Dec 21 (Notes) *1 As of the end of each quarter *2 See “LTV Calculation: SBG Stand
Slide 52: Cash Position
Cash Position Maintain ample cash position, more than sufficient for bond redemptions for the next 2 years Cash position Bond redemption schedule*2 ¥2.1T *1 (¥ B) Bond redemptions for the next 2 years (¥1.3T) 2,099.0 ＞ 830.4 453.0 1,039.8 1,084.5 Dec 21 Jan 22 - Dec 22 Jan 23 - Dec 23 Jan 24 - Dec 2
Slide 53: Management of Cash Position
Management of Cash Position Maintain cash position more than sufficient for bond redemptions for the next 2 years. Distributions from SVF1&2 contribute to cashflows (interest coverage: 6.4x). Maintain funds covering bond redemptions for the next 2 years Interest coverage ¥2.1T Distributions Financia
Slide 54: Bond Redemption Schedule
Bond Redemption Schedule Completed refinancing of domestic subordinated/hybrid bonds for the current fiscal year Domestic senior bonds Domestic subordinated bonds (¥ B) Domestic hybrid bonds 1,131.4 Foreign currency-denominated senior notes 1,021.2 196.4 Foreign currency-denominated hybrid notes Red
Slide 55: Issuance of Domestic Retail Subordinated Bonds
Issuance of Domestic Retail Subordinated Bonds (February) Issued record-high ¥550.0B domestic subordinated bonds amid strong demand from retail investors Completed refinancing of domestic subordinated bonds 1,050.0 (¥ B) Total amount ¥550.0B (record-high over of issue 2019 (¥500.0B)) 766.0 To retail
Slide 56: SBG Stand-alone Interest-bearing Debt
SBG Stand-alone Interest-bearing Debt*1 Interest-bearing debt excl. non-recourse Main variance factors from Sep 30, 2021 items remains stable. • Partial repayment of margin loans using Alibaba shares -$4.0B • Collar transactions using Deutsche Telekom shares +€2.6B 14,033.4 13,967.4 13,860.4 • Entry
Slide 57: SBG Stand-alone Cash Position
SBG Stand-alone Cash Position Cash position decreased due to progress on investments and repayment of debt. (¥ B) 3,589.6 3,437.5 3,357.9 Cash position of SB Northstar 3,103.3 991.6 595.9 1,389.3 2,681.1 1,008.1 582.1 Main variance factors from Sep 30, 2021 Increase Decrease ・Distribution from SVF1&
Slide 58: SBG Stand-alone Net Interest-bearing Debt
SBG Stand-alone Net Interest-bearing Debt Adjusted net interest-bearing debt increased due to continued investments and partial repayment of non-recourse debt. 11,486.0 10,919.2 Excluding SB Northstar 10,513.7 (¥ B) 8,558.8 Adjustments relating to finance 6,163.8 Asset-backed finance -¥6,076.3B 7,64
Slide 59: Adjustment for Asset-backed Finance
Adjustment for Asset-backed Finance Non-recourse finance using assets is deducted from debt, and asset value required for settlement is deducted from assets. Collar/Forward/Put transactions 29.2 (¥ T) Share Alibaba/T-Mobile/Deutsche Telekom 3.1 Adjusted for asset- Fund procurement based on variable
Slide 60: Results of Investment Businesses, Financial Condition, Financial Strategy, ESG
- Results of Investment Businesses - Financial Condition - Financial Strategy - ESG Initiatives Finance 32
Slide 61: Financial Strategy for FY2021
Financial Strategy for FY2021 Establish optimal financial strategy as an investment company Financial management to Firmly keeping enable reproduction financial policy at investment business on an expanded scale Finance 33
Slide 62: 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 SVF1&2 and other subsidiaries Finance
Slide 63: 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 35
Slide 64: Financial Management to Enable Reproduction at Investment Business
Financial Management to Enable Reproduction at Investment Business on Expanded Scale Procure funds to Establish a cycle of capture attractive investment and investment recovery opportunities • Establish a cycle of “investment” → • Utilize leverage with LTV in mind “recovery and CF generation” → “rei
Slide 65: Share Repurchase
Share Repurchase Total repurchase amount: ¥1T (maximum) Details Repurchase period: From Nov. 9, 2021 to Nov. 8, 2022 1. Firm commitment to A flexible approach to the financial policies purchase shares 2. Investment opportunities considering these factors 3. Level of NAV discount Policies Depending o
Slide 66: Results of Investment Businesses, Financial Condition, Financial Strategy, ESG
- Results of Investment Businesses - Financial Condition - Financial Strategy - ESG Initiatives Finance 38
Slide 67: ESG Initiatives
ESG Initiatives Development of a group-wide ESG policy • Launched discussion on a group-wide ethical AI policy, to be formulated in FY2022 Environment: Climate change disclosure in line with the TCFD • Developing climate change strategy and actions, to be disclosed by late June 2022 Society: Respons
Slide 68: Investments in Environmental and Social Areas
Investments in Environmental and Social Areas Continue active investment in start-ups tackling environment and social issues Contribute to eliminating disparity and discrimination in the technology and venture capital communities ※This slide shows examples of portfolio companies SVF2 SB Opportunity
Slide 69: Appendix
Appendix
Slide 70: LTV Calculation: SBG Stand-alone Equity Value of Holdings
LTV Calculation: SBG Stand-alone Equity Value of Holdings (L) Adjusted ¥5.32T SBG stand-alone net debt =21.6% (V) Adjusted SBG stand-alone equity value of holdings*1 ¥24.66T (¥ T) Adjusted SBG stand- Interest of SBG in Other, Major = 11.91 + + alone equity value of SVF1&2&Latin America investments i
Slide 71: 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 5.97 Before adjustment 9.13 Multiplying the number of Alibaba ADSs equivalent to the number of shares held by SBG by the ADS price Deducting (a) and (b) below (amount required
Slide 72: 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 (f) T-Mobile 0.74 summing • Value of SBG’s shareholding (incl. the number of shares subject to call options held by Deutsche Telekom (DT):56,124,954 shares as of Dec 31, 2021) × the share
Slide 73: LTV Calculation: SBG Stand-alone Net Debt
LTV Calculation: SBG Stand-alone Net Debt (L) Adjusted SBG stand-alone net debt*1 ¥5.32T (V) Adjusted SBG stand-alone ¥24.66T =21.6% equity value of holdings (¥ T) Adjusted SBG Consolidated Net debt at self- Other = - - stand-alone net debt net debt financing entities adjustments 5.32 16.75 5.26 6.1
Slide 74: 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, 11.49 (before adjustment) net of interest-bearing debt at self-financing entities - Add 50% to interest-bearing debt (to treat it a liability) for USD Hybrid Notes issued in Ju
Slide 75: 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 financ
Slide 76: 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 14 A+ Japan Telecom Vodafone KK of Sprint of Arm of SBKK 13 A 12 JCR (A－) A- Outlook Positive 11 BBB+ 10 On November 2, 2021, JCR BB
Slide 77: SB Northstar: Cumulative Investment Gain (Loss)
SB Northstar: Cumulative Investment Gain (Loss)*1 -¥77.3B ¥284.3B -¥487.0B -¥280.0B -¥91.9B＊2 ¥188.1B＊2 Impact on Positive impact net income Stocks Stocks + credit Derivatives Total investment on net income attributable due to losses borne by transactions loss Masayoshi Son to SBG SBG SB Northstar ×
Slide 78: SB Northstar: Assets Under Management
SB Northstar: Assets Under Management (as of Dec 31, 2021) Significant downsizing of investments Stocks, etc. and derivatives (fair value) Notional principal of options (¥ B) ($ B) 44.3 Long call option 2,391.1 2,371.5 of listed stocks 1,741.0 13.4 11.2 Stocks & other 4.9 4.4 instruments*1 2,281.7 2
Slide 79: Consolidated SBG: Interest-bearing Debt, Cash Position
Consolidated SBG: Interest-bearing Debt, Cash Position, and Net Interest-bearing Debt Consolidated Interest-bearing Debt*1 （\ B） Dec 20 Mar 21 Jun 21 Sep 21 Dec 21 SBG standalone 11,218.9 13,023.3 14,033.4 13,967.4 13,860.4 Incl. SB Northstar 1,528.8 1,866.5 1,424.5 286.3 275.4 SVF1 and SVF2 260.3 4
Slide 80: Introduction of Co-investment Program to SVF2
Introduction of Co-investment Program to SVF2 Co-investment by management in SVF2 together with SBG, sharing both the profits and risks associated with investments, will lead to enhanced focus on the fund and contribute to SBG’s earnings growth. Masayoshi Son & SBG other Management, etc.*1 Equity Pr
Slide 81: 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 Consider stakeholder CF from investment recovery returns as appropriate Fund B ¥ Fund C ¥ Additional fund procurement as needed Finance 53
Slide 82: SoftBank Vision Funds Update
QUARTER ENDED DECEMBER 31, 2021 SoftBank Vision Funds Update NAVNEET GOVIL Managing Partner & Chief Financial Officer SoftBank Investment Advisers
Slide 83: 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 84: 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 85: Topics
4 Topics 01- Progress & Highlights 02- Performance & Impact on SoftBank Group (SBG) 03- In Focus: IPOs & Value Creation in a Maturing Portfolio
Slide 86: Progress & Highlights
Progress & Highlights == OoftBank Investment Advisers
Slide 87: Performance Snapshot
SVF1 SVF2 6 SoftBank SoftBank Vision Fund 1 Vision Fund 2 Combined Total Commitment $98.6B $51.0B $149.6B PROGRESS & HIGHLIGHTS Performance Acquisition Cost1 $87.2B $42.4B $129.6B Snapshot Cumulative $51.3B $5.6B $56.9B Investment Gains1 As of December 31, 2021 Total Fair Value2 $138.5B $48.0B $186.
Slide 88: SVF2 Continues to Invest in the AI Revolution
SVF2 P RO G RE S S & H I G H L I G H T S 7 SVF2 Continues to Invest in the AI Revolution Inception to As of December 31, 2021 December 31, 2021 Total Fair Select New Investments1 Value2 Cumulative $5.6B Investment Gains3 Total $42.4B Acquisition Cost3 Footnotes: 1. Select New Investments logos are f
Slide 89: SVF2 Portfolio Overview
SVF2 P RO G RE S S & H I G H L I G H T S 8 SVF2 Portfolio Overview As of December 31, 2021 PORTFOLIO COST BY SECTOR (%) 209 1 Logistics Frontier Tech Consumer Transportation Enterprise Total Investment Investments1 Exited2 Edtech Proptech Health Tech Fintech PORTFOLIO COST BY GEOGRAPHY ($B) 195 13 $
Slide 90: A Broad & Diverse Set of New Listings
SVF1 SVF2 P RO G RE S S & H I G H L I G H T S 9 A Broad & Diverse Set of New Listings Three-Month Period Ended December 31, 2021 SVF1 NE W L I S T I NG S B Y G E O G RA P H Y 1 SVF2 SVF1 SVF1 New Listings SVF2 SVF2 AMERICAS EUROPE ASIA New Listings Footnotes: 1. New Listings by Geography categorized
Slide 91: A Series of IPO Milestones
SVF1 SVF2 P RO G RE S S & H I G H L I G H T S 10 A Series of IPO Milestones Three-Month Period Ended December 31, 2021 Develops transformative medicines faster by building technologies5 Actively applies AI to precision engineer medicines more rapidly5 1st publicly traded Norway’s most PolicyBazaar r
Slide 92: Listings Continue to Unlock Value
SVF1 SVF2 P RO G RE S S & H I G H L I G H T S 11 Listings Continue to Unlock Value Portfolio IPO Market Listing Company Proceeds4 Capitalization5 Exchange Three-Month Period Ended December 31, 2021 $0.4B $6.9B NASDAQ $1.0B $12.7B NASDAQ $0.8B $5.7B NSE SVF1 $2.5B $11.6B NSE SVF1 SVF2 $22.4B $4.5B $2
Slide 93: Portfolio Evolution
12 Exited1 Public2 Private3 TOTAL FAIR VALUE $138.5B (REALIZED & UNREALIZED) $34.0B SVF2 SVF1 PROGRESS & HIGHLIGHTS $48.0B Represents Portfolio $1.4B $47.7B Combined Exited & Public Fair Value4 Evolution $11.6B Represents Combined Exited & Public Fair Value4 As of December 31, 2021 $35.0B $56.8B SVF
Slide 94: Our Portfolio Companies Continue to Attract Capital
SVF1 SVF2 P RO G RE S S & H I G H L I G H T S 13 Our Portfolio Companies Continue to Attract Capital Three-Month Period Ended December 31, 2021 10 Funding Rounds1 Series H (Common) Extended & Secondaries Series E/F Series H Series D Series D $3.2B Capital Raised UNDISCLOSED INVESTMENT $22B+ Series E
Slide 95: Combination with Symbotic, an AI-Enabled Supply Chain Platform
SVF2 PROGRESS & HIGHLIGHTS 14 Combination with Symbotic, an AI-Enabled Supply Chain Platform SVF Investment Corp. 3 (SVFC)1 Announced a Definitive Merger Agreement on December 13, 2021 Pro Forma Total SVF2 Expected Transaction Enterprise Value Proceeds Commitment3 Closing Date Overview1 $4.8B $725mm
Slide 96: Performance & Impact on SoftBank Group (SBG)
15 Performance & Impact on SoftBank Group (SBG)
Slide 97: SVF1 Contribution to SBG, Net of 3rd Party Interests
16 SVF1 2021 Inception to Dec 31 SVF1 Fund Net Profit2 $34.4 PERFORMANCE & IMPACT ON SBG Less: Change in 3rd Party Contribution to Interests in Fund (16.8) SBG, Net of 3rd SBG LP Income: 17.6 Share of Fund Net Profit Party Interests1,3 SBG GP Income: Amounts in USD Billions 8.9 Management & Performa
Slide 98: Contribution to SBG – SVF1
17 SBG Paid-In Capital4 SVF1 PERFORMANCE & IMPACT ON SBG Contribution to SBG SBG Total Value5 Net Asset Value1 As of December 31, 2021 Distributions2 Accrued & Paid Performance Fees3 Footnotes: 1. Net Asset Value includes net changes in fair value of financial assets at fair value through profit or
Slide 99: Contribution to SBG – SVF2
18 SBG Paid-In Capital4 SVF2 PERFORMANCE & IMPACT ON SBG Contribution to SBG SBG Total Value5 Net Asset Value1 As of December 31, 2021 Distributions2 Accrued Performance Fees3 Footnotes: 1. Net Asset Value includes net changes in fair value of financial assets at fair value through profit or loss (F
Slide 100: In Focus: IPOs & Value Creation in a Maturing Portfolio
19 In Focus: IPOs & Value Creation in a Maturing Portfolio
Slide 101: Consistent Demand for Public Listings
I P O S & V A L U E C RE A T I O N I N A M A T U RI NG P O RT F O L I O 20 Consistent Demand for Public Listings NUMBER OF GLOBAL VISION FUNDS DEAL LISTINGS PER QUARTER 1 PORTFOLIO COMPANIES Well Capitalized Strong Fundamentals 800 Established Track Record 600 400 200 0 2001 2010 2020 2021 Global Fi
Slide 102: Growing Track Record of Public Listings
SVF1 SVF2 I P O S & V A L U E C RE A T I O N I N A M A T U RI NG P O RT F O L I O 21 Growing Track Record of Public Listings As of December 31, 2021 36 SVF1 Total Listings Since Inception of the Funds2 SVF2 Total Listings Since 36 Inception of the Funds1 B IK LISTING YEAR 2017 2018 2019 2020 2021 Fo
Slide 103: Unlocking Investment Gains in Our Public Portfolio
22 TOTAL REALIZED & UNREALIZED GAIN (PUBLIC PORTFOLIO) SVF1 SVF2 $87.0B SVF1 SVF2 +$33.6B IPOS & VALUE CREATION IN A MATURING PORTFOLIO $13.0B CUMULATIVE Unlocking INVESTMENT GAINS 1 $53.4B Investment Gains in $8.6B Our Public Portfolio $74.0B Since Inception to December 31, 2021 $44.8B Cost1 Fair V
Slide 104: IPOs and the Value Creation Flywheel
I P O S & V A L U E C RE A T I O N I N A M A T U RI NG P O RT F O L I O 23 IPOs and the Value Creation Flywheel As of December 31, 2021 SVF1 SVF2 OTHER UNDISCLOSED INVESTMENTS Total FV, Series E or Later OTHER UNDISCLOSED INVESTMENTS The information herein is provided solely for illustrative purpose
Slide 105: Empowering the Next Generation
I P O S & V A L U E C RE A T I O N I N A M A T U RI NG P O RT F O L I O 24 Empowering the Next Generation Portfolio Company Holistic & In-Depth Knowledge of the Businesses IPO Support Patient Unparalleled Capital Ecosystem Insights Across Multiple Guidance on Paths to Listing Sectors & Geographies I
Slide 106: Maximizing Long-Term Shareholder Value
25 Broader Access to Long-Term Capital IPOS & VALUE CREATION IN A MATURING Strong PORTFOLIO Operating & Corporate Financial Discipline Governance Maximizing Long-Term Shareholder Value Future Growth & Reputation Trajectory & Brand Transparency & Financial Reporting There can be no assurance that the
Slide 107: Raising Capital Drives a Virtuous Cycle of Growth and Progress
I P O S & V A L U E C RE A T I O N I N A M A T U RI NG P O RT F O L I O 26 Raising Capital Drives a Virtuous Cycle of Growth and Progress Inception to December 31, 2021 AI-Powered Business Models and Strong Fundamentals Track Record of Capital Raising via Listings, Supported by are a Potent Combinat
Slide 108: Going Public Provides Flexible and Efficient Capital
I P O S & V A L U E C RE A T I O N I N A M A T U RI NG P O RT F O L I O 27 Going Public Provides Flexible and Efficient Capital Broader Access to Long-Term Capital Debt Offering All Stock M&A 1 2 Convertible Senior Note Acquisition of Use of Proceeds Strategy Net proceeds to be used for To build a g
Slide 109: Strong Governance Enhances Shareholder Confidence
IPOS & VALUE CREATION IN A MATURING PORTFOLIO 28 Strong Governance Enhances Shareholder Confidence Number of Independent Directors Added Post-IPO Board Composition STRONG to the Board prior to IPO1 (2010 -2018) GOVERNANCE Majority Independent n=47 3 (within 12 months of IPO) 27% Average Gender Diver
Slide 110: Operational & Financial Discipline for a Sustainable Business
I P O S & V A L U E C RE A T I O N I N A M A T U RI NG P O RT F O L I O 29 Operational & Financial Discipline for a Sustainable Business Operational & Financial Enable Better Mitigate Optimize Discipline Pre and Post IPO1 Decision-Making Risks Performance Business Model Strength Efficient Financial
Slide 111: FinConnect: Empowering the Next Generation of Listed Companies
I P O S & V A L U E C RE A T I O N I N A M A T U RI NG P O RT F O L I O 30 FinConnect: Empowering the Next Generation of Listed Companies A Global Network for CFOs of SoftBank Vision Fund Portfolio Companies Our 2nd Annual CFO Summit was held in Los Angeles, CA in November 2021 FINCONNECT 2021 THEME
Slide 112: Thank You
31 Thank You SoftBank Vision Funds Investor Briefing Presentations Available at visionfund.com/presentations