Softbank Group Corp. · TSE:9984
Softbank — Q1 FY2023 Earnings Presentation
32 slides from Softbank's earnings presentation, August 2023
Slide 1: Investor Briefing: SoftBank Vision & LatAm Funds
QUARTER ENDED JUNE 30, 2023 Investor Briefing SoftBank Vision & LatAm Funds NAVNEET GOVIL CFO, SB Investment Advisers & CFO, Member of the Executive Committee, SB Global Advisers
Slide 2: 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 3: 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 4: Topics
4 Topics 01- Progress & Highlights 02- Performance & Impact on SoftBank Group (SBG) 03- In Focus: Innovation in the AI Era
Slide 5: Progress & Highlights
5 Progress & Highlights
Slide 6: Nuanced Market Rebound
SVF1 SVF2 LATAM PROGRESS & HIGHLIGHTS 6 Nuanced Market Rebound MARKET PERFORMANCE DRIVEN BY SELECT NAMES Broadening Horizon of Market Capitalization % Change – April to June 2023 AI Applications 20% Federal Reserve 15% +15.1% Rate Hike Cycle Ongoing +13.6% 10% Inflation Eases in 5% the US, Varies Gl
Slide 7: Performance Snapshot
SVF1 SVF2 LATAM 7 SoftBank SoftBank SoftBank Vision Fund 1 Vision Fund 2 LatAm Funds Combined Total Commitment $98.6B $60.0B $7.6B $166.2B PROGRESS & HIGHLIGHTS Performance Acquisition Cost1 $87.8B $51.5B $7.3B $146.6B Snapshot Cumulative Gross $14.2B $(19.2B) $(1.3B) $(6.3B) Investment Gains/(Losse
Slide 8: Quarterly Performance
SVF1 SVF2 LATAM 8 +$0.8B +$0.8B -$0.3B +$0.3B PROGRESS & HIGHLIGHTS COMBINED SV F 1 SV F 2 L ATA M Quarterly Performance As of June 30, 2023 Constructive AI exposure across the Vision & LatAm Funds, with large positions benefitting Broad & diverse portfolio demonstrating stabilization in valuations
Slide 9: Fair Value By Fund
SVF1 SVF2 LATAM 9 SVF1 SVF2 LATAM 94 $102.1B 274 $32.2B 105 $6.0B PROGRESS & HIGHLIGHTS Total # of Total Total # of Total Total # of Total Investments1 Fair Value2 Investments1 Fair Value2 Investments1 Fair Value2 Fair Value By Fund As of June 30, 2023 $37.5B $20.5B $44.2B $24.2B $4.9B $3.1B $5.2B $
Slide 10: Performance of Public Investments
SVF1 SVF2 LATAM 10 Public Investments By Fair Value1 $26.0B CURRENT FAIR VALUE2 +$0.7BQUARTERLY GAIN3 FAIR VALUE QUARTERLY GAIN FAIR VALUE QUARTERLY GAIN INVESTMENT4 INVESTMENT4 ($B) ($B) ($B) ($B) PROGRESS & HIGHLIGHTS $7.4 +$0.6 $0.6 +$0.2 $0.5 +$0.1 Performance of $2.9 -$0.8 $0.4 - $2.9 +$0.1 Pub
Slide 11: Performance of Private Investments by Sector
SVF1 SVF2 LATAM PROGRESS & HIGHLIGHTS 11 Performance of Private Investments by Sector Private Investments by Sector | As of June 30, 2023 KEY METRICS BY SECTOR Frontier Tech Enterprise Fintech Consumer Transportation Health Tech Edtech Logistics Proptech FV BY SECTOR1 $13.9B $8.4B $6.4B $23.6B $3.6B
Slide 12: Portfolio Evolution
12 Total Fair Value Exited & Public1 Private2 (Realized & Unrealized) SVF1 SVF2 LATAM PROGRESS & HIGHLIGHTS Exited & Public Exited & Public Exited & Public Fair Value Fair Value Fair Value Portfolio Evolution As of June 30, 2023 86% 75% 37% SVF1 SVF2 LATAM Footnotes: 1. Exited & Public Fair Value re
Slide 13: Portfolio Companies Continue to Be Well-Capitalized
SVF1 SVF2 LATAM PROGRESS & HIGHLIGHTS 13 Portfolio Companies Continue to Be Well-Capitalized As of June 30, 2023 P O R T F O L I O C O M P A N I E S W I T H 1 2 + M O N T H S C A S H R U N W AY By Fair Value1 97% SVF1 90% SVF2 88% LATAM Footnotes: 1. Source: SBIA Analysis. Based on the fair value of
Slide 14: LatAm Funds Update
LATAM PROGRESS & HIGHLIGHTS 14 LatAm Funds Update Total Fair Value1 Total # of Investments2 As of June 30, 2023 $6.0B 105 PUBLIC INVESTMENTS PERFORMANCE DURING THE JUNE QUARTER3 SIGNIFICANT M&A EXIT4 Share Performance – April 1 to June 30, 2023 120% 100% 98% 84% 80% Acquired by 66% 60% 40% 26% 25% G
Slide 15: SoftBank - Gateway to the Japan Market
SVF1 SVF2 LATAM PROGRESS & HIGHLIGHTS 15 SoftBank - Gateway to the Japan Market Leveraging our differentiated local ecosystem to drive portfolio company expansion into Japan. O U R C O R E C A PA B I L I T I E S Strategic Introductions Growth & Customer Acquisition Legal & Regulatory Advisory Human
Slide 16: Performance & Impact on SoftBank Group (SBG)
16 Performance & Impact on SoftBank Group (SBG)
Slide 17: SVF1 Contribution to SBG, Net of 3rd Party Interests
17 SVF1 2023 Inception to Jun 30 SVF1 Fund Net Profit2 $3.0 PERFORMANCE & IMPACT ON SBG Less: Change in 3rd Party Contribution to Interests in Fund (1.7) SBG, Net of 3rd SBG LP Income: 1.3 Share of Fund Net Profit Party Interests1,3 Amounts in USD Billions SBG GP Income: Management & Performance Fee
Slide 18: Contribution to SBG: SVF1
18 SBG Paid-In Capital1 SVF1 PERFORMANCE & IMPACT ON SBG Contribution to SBG SBG Total Value2 As of June 30, 2023 Net Asset Value3 Distributions4 Footnotes: 1. SBG Paid-In Capital represents SBG Commitment drawn down through capital calls less Return of Recallable unutilized Contributions. 2. SBG To
Slide 19: Contribution to SBG: SVF2
19 SBG Paid-In Capital1 SVF2 PERFORMANCE & IMPACT ON SBG Contribution to SBG SBG Total Value2 As of June 30, 2023 Net Asset Value3 Distributions4 Footnotes: 1. SBG Paid-In Capital represents SBG Commitment drawn down through capital calls less Return of Recallable unutilized Contributions. SBG Paid-
Slide 20: Contribution to SBG: LatAm
20 SBG Paid-In Capital1 LATAM PERFORMANCE & IMPACT ON SBG Contribution to SBG SBG Total Value2 As of June 30, 2023 Net Asset Value3 Distributions4 Footnotes: 1. SBG Paid-In Capital represents SBG Commitment drawn down through capital calls less Return of Recallable unutilized Contributions. SBG Paid
Slide 21: In Focus: Innovation in the AI Era
21 In Focus: Innovation in the AI Era
Slide 22: Marking Six Years of Investing & Advancing SoftBank's AI Strategy
INNOVATION IN THE AI ERA 22 Marking Six Years of Investing & Advancing SoftBank’s AI Strategy ART I F I CI AL I N T E LLI GENCE I S T R AN S F O RM I NG E V E RY I N D UST RY SIGNIFICANT ADVANCEMENTS IN AI SINCE THE LAUNCH OF VISION FUND 1 2017 Today AI Tech Patents Issued1 3,200 18,700+ Number of C
Slide 23: The Age of AI
INNOVATION IN THE AI ERA 23 The Age of AI Total AI Economic Potential1 T H E AG E O F T H E AG E O F COMPUTING ARTIFICIAL INTELLIGENCE Economic Impact of New Generative AI Use Cases1 Calculate Memorize Search Infer Create Revenue Growth CAGR of AI Leaders vs. Others2 THEN Footnotes: 1. McKinsey. The
Slide 24: Generative AI is One Component of AI
24 AR TIF IC IAL INTELLIGENC E E XP E R T SY STEMS MAC HINE LEAR NING INNOVATION IN THE AI ERA OTHER SUBF IE LDS Generative AI is One DEEP LEAR NING NATUR AL LANGUAGE Component of AI P R OC ESSING Sources: IDC & Others1 GENER ATIVE AI & LAR GE LANGUAGE MODELS C OMP UTER VISION Footnotes: 1. The illu
Slide 25: AI Covers a Spectrum of Applications Within Our Portfolio
SVF1 SVF2 LATAM INNOVATION IN THE AI ERA 25 AI Covers a Spectrum of Applications Within Our Portfolio As of June 30, 2023 A I S PA N S D I S PA R AT E S E C T O R S , G E O G R A P H I E S , & B U S I N E S S S TA G E S Percentage of Portfolio Companies Leveraging AI, By Application1 37% 28% 18% 14%
Slide 26: The Expansion of AI
SVF1 SVF2 LATAM INNOVATION IN THE AI ERA 26 The Expansion of AI Use Cases by Sector Frontier Tech Enterprise Consumer Health Tech Logistics Proptech FinTech Transportation EdTech Processor IP Code Writing Customer Service Drug Discovery Automated Building Credit Scoring & Self-Driving Dynamic Manage
Slide 27: Examples of Diverse AI Use Cases by Sector (1/3)
SVF1 SVF2 LATAM INNOVATION IN THE AI ERA 27 Examples of Diverse AI Use Cases by Sector (1/3) Frontier Tech Enterprise Consumer Recommender Systems Generative AI Computer Vision Virtual Agents Deep Learning Develops AI-based algorithms to drive the Personalizes job recommendations, Offers text to ima
Slide 28: Examples of Diverse AI Use Cases by Sector (2/3)
SVF1 SVF2 LATAM INNOVATION IN THE AI ERA 28 Examples of Diverse AI Use Cases by Sector (2/3) Health Tech Logistics Prop Tech Predictive Analytics Predictive Analytics Deep Learning Virtual Agents Recommender Systems Develops remote patient monitoring systems Optimizes demand forecasting, warehouse A
Slide 29: Examples of Diverse AI Use Cases by Sector (3/3)
SVF1 SVF2 LATAM INNOVATION IN THE AI ERA 29 Examples of Diverse AI Use Cases by Sector (3/3) FinTech Transportation EdTech Image Recognition Predictive Analytics Predictive Analytics Virtual Agents Virtual Agents Recommender Systems Detects fraud, onboards new users & merchants, Optimizes car pricin
Slide 30: SoftBank Leading the AI Era
SVF1 SVF2 LATAM INNOVATION IN THE AI ERA 30 SoftBank Leading the AI Era 1980s 1990s 2000s RISE OF PC RISE OF INTERNET RISE OF MOBILE 2010s & Beyond Total Capital Late-Stage Invested1 Portfolio2 Vision Fund 1 Established in 2017 Total Dry Powder to Invest Cumulative Distributions Vision Fund 2 & LatA
Slide 31: AI will go beyond the realm of knowledge into creative intelligence
AI will go beyond the realm of knowledge into the world of creative intelligence, helping us build a richer, happier, and brighter future. – M A S AYO S H I S O N – The information is provided for illustrative purposes only. There can be no assurances that SBIA’s investment strategy or objectives wi
Slide 32: Thank You
32 Thank You SoftBank Vision & LatAm Funds Investor Briefing Presentations Available at visionfund.com/presentations