Softbank Group Corp. · TSE:9984
Softbank — Q3 FY2019 Earnings Presentation
84 slides from Softbank's earnings presentation, Feb 12, 2020
Slide 1: Earnings Results for the 9-month Period ended December 31, 2019
Earnings Results for the 9-month Period ended December 31, 2019 February 12, 2020
Slide 2: Disclaimers
Disclaimers This presentation provides relevant information about SoftBank Group Corp. (“SBG”) and its subsidiaries and associates (together with SBG, “we,” “us” or the “Group”) and does not constitute or form any solicitation of investment including any offer to buy or subscribe for any securities
Slide 3: Disclaimers regarding WeWork
Disclaimers regarding WeWork This presentation contains “forward-looking statements”, including statements about estimated and projected business, operational and financial metrics (including revenue, Adjusted EBITDA, profitability, liquidity, cash and cash flow metrics), plans (including WeWork’s f
Slide 4: Tide is turning
Tide is turning !2
Slide 5: T-Mobile and Sprint Won in Court
T-Mobile and Sprint Won in Court Moving to finalize merger All necessary federal approvals required for the Transaction to close have been obtained, including the federal regulatory approvals (approval from the Antitrust Division of the U.S. Department of Justice (DOJ) and the Federal Communications
Slide 6: Share price
Share EBIT Price 8.6 (USD) 8.52 (As of Feb. 11, 2020 0 Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. 2019 2020 (Source) S&P Capital IQ !4
Slide 7: EBIT (SVF segment)
EBIT (SVF segment) (JPY bn) 447.8 397.6 392.5 239.9 Begin turnaround 176.4 -225.1 (USD -2.1bn) -970.3 USD 1 = JPY 109.56 (as of Dec. 30, 2019 TTM) Q1 Q2 Q3 Q4 Q1 Q2 Q3 EBIT (SVF segment) = Operating Income of SoftBank Vision Fund and other SBIA-managed funds segment. For details, please refer to the
Slide 8: SVF1 Listed Portfolio Companies
SVF1 Listed Portfolio Companies (USD m) As of Dec. 31, 2019 As of Dec. 31, 2019 Investment cost Gross gain/(loss) Company Gross MOIC to SVF1 to SVF1 Guardant Health 308 +$1,863 7.1 x Uber 7,666 -$1,057 0.9 x Slack 334 +$489 2.5 x 10x Genomics 31 +$262 9.4 x Vir Biotechnology 199 +$86 1.4 x PingAn Go
Slide 9: SVF1 Listed Portfolio Companies
SVF1 Listed Portfolio Companies (USD m) As of Dec. 31, 2019 As of Feb. 11, 2020 As of Feb. 11, 2020 Investment cost Gross gain/(loss) Gross gain/(loss) Company Gross MOIC to SVF1 to SVF1 to SVF1 Guardant Health 308 +$1,863 +$1,875 7.1 x Uber 7,666 -$1,057 +$1,505 1.2 x Slack 334 +$489 +$578 2.7 x 10
Slide 10: SVF1 Listed Portfolio Companies: Increased USD +3.0bn
SVF1 Listed Portfolio Companies As of Dec. 31, 2019 As of Feb. 11, 2020 As of Feb. 11, 2020 (USD m) Investment cost Gross gain/(loss) Gross gain/(loss) Company Gross MOIC to SVF1 to SVF1 to SVF1 Guardant Health 308 +$1,863 +$1,875 7.1 x Uber 7,666 -$1,057 +$1,505 1.2 x Slack 334 +$489 +$578 2.7 x 10
Slide 11: EBIT (SVF segment)
EBIT (SVF segment) (JPY bn) 447.8 397.6 392.5 239.9 Begin turnaround 176.4 -225.1 (USD -2.1bn) -970.3 USD 1 = JPY 109.56 (as of Dec. 30, 2019 TTM) Q1 Q2 Q3 Q4 Q1 Q2 Q3 EBIT (SVF segment) = Operating Income of SoftBank Vision Fund and other SBIA-managed funds segment. For details, please refer to the
Slide 12: EBIT (SBG consolidated)
EBIT (SBG consolidated) (JPY bn) 715.0 705.7 688.8 494.9 Return profit 438.3 2.6 (USD 24m) -704.4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 ’18 ’19 USD 1 = JPY 109.56 (as of Dec. 30, 2019 TTM) !10
Slide 13: Consolidated SoftBank Results
Consolidated SoftBank Results
Slide 14: Consolidated Results
Consolidated Results (JPY bn) FY18 FY19 Q1-Q3 Q1-Q3 Change YoY Net sales 7,168.5 7,089.8 -78.7 -1.1% (USD 64.7bn) EBIT 1,859.0 -13.0 -1,872.0 - (USD -0.1bn) Net income 1,538.4 476.6 -1,061.8 -69.0% (USD 4.4bn) Net income: net income attributable to owners of the parent USD 1 = JPY 109.56 (as of Dec.
Slide 15: Net Sales
Net Sales (USD 64.7bn) (JPY bn) 7,168.5 7,089.8 2,794.4 2,615.7 Sprint segment 3,449.6 3,617.8 SoftBank segment 924.5 856.3 Others FY18 Q1-Q3 FY19 Q1-Q3 USD 1 = JPY 109.56 (as of Dec. 30, 2019 TTM) Others = Arm + Brightstar + “Others” + reconciliations !13
Slide 16: EBIT
EBIT (JPY bn) One-time gain from 1,859.0 Arm China (176.3) 255.3 808.8 137.8 Sprint segment SoftBank 754.9 804.9 segment Others -13.0 (USD -0.1bn) -136.3 -157.9 -797.8 SVF segment USD 1 = JPY 109.56 (as of Dec. 30, 2019 TTM) One-time gain from Arm China: On Jun. 26, 2018, Arm sold 51% of its equity
Slide 17: Net Income
Net Income (JPY bn) 1,538.4 476.6 (USD 4.4bn) FY18 Q1-Q3 FY19 Q1-Q3 USD 1 = JPY 109.56 (as of Dec. 30, 2019 TTM) Net income: net income attributable to owners of the parent !15
Slide 18: SoftBank Vision Fund
SoftBank Vision Fund !16
Slide 19: SVF1 portfolio companies
+ JVs / affiliates etc. (15 companies) The investments presented herein are solely for illustrative purposes, have been selected in order to demonstrate examples of SVF1 investments, and do not purport to be a complete list thereof. References to investments included herein should not be construed a
Slide 20: SVF1 Cumulative Investment Highlights
SVF1 Cumulative Investment Highlights (as of Dec. 31, 2019) USD 17.2bn Realized gain Investment USD 4.7bn market uplift USD 9.5bn Valuation gain USD 12.5bn Mark up (38 companies) SVF1 highlights are provided solely for illustrative purposes and individual investors' results may vary. Past performanc
Slide 21: SVF1 Cumulative Investment Highlights
SVF1 Cumulative Investment Highlights (as of Dec. 31, 2019) USD 17.2bn Realized gain USD 4.7bn Valuation gain USD -7.7bn Realized USD 12.5bn loss USD -0.2bn Valuation loss USD -7.5bn Mark up Mark down (38 companies) (31 companies) SVF1 highlights are provided solely for illustrative purposes and ind
Slide 22: SVF1 Cumulative Investment Highlights
SVF1 Cumulative Investment Highlights (as of Dec. 31, 2019) USD 17.2bn USD 9.5bn Realized gain Investment USD 4.7bn market uplift + realized gains Valuation gain USD -7.7bn Realized USD 12.5bn loss USD -0.2bn Valuation loss USD -7.5bn Mark up Mark down (38 companies) (31 companies) SVF1 highlights a
Slide 23: SVF1 Cumulative Investment Highlights
SVF1 Cumulative Investment Highlights (as of Dec. 31, 2019) Investment USD 9.5bn market uplift + realized gains Cumulative USD 80.5bn investment cost (Since SVF1 inception) * Cumulative investment cost and aggregate market uplift include Flipkart and Nvidia, which were exited in August 2018 and Janu
Slide 24: SVF1 Listed Portfolio Companies: Increased USD +3.0bn
SVF1 Listed Portfolio Companies As of Dec. 31, 2019 As of Feb. 11, 2020 As of Feb. 11, 2020 (USD m) Investment cost Gross gain/(loss) Gross gain/(loss) Company Gross MOIC to SVF1 to SVF1 to SVF1 Guardant Health 308 +$1,863 +$1,875 7.1 x Uber 7,666 -$1,057 +$1,505 1.2 x Slack 334 +$489 +$578 2.7 x 10
Slide 25: WeWork
SBG and SVF1 investment WeWork Case studies presented herein are for illustrative purposes only, have been selected in order to provide examples of the types of investments made by SBIA and do not purport to be a complete list thereof. It should not be assumed that investments made in the future wil
Slide 26: WeWork: ~100 Days Past
EBIT ~100 Days Past Significant opportunity in large, fast 1 growing market 2 Developed 5-year growth-led plan Fully funded business plan with 3 USD 2.8bn in liquidity for future growth 4 Newly appointed world-class leadership (Source) WeWork The information herein is provided for illustrative purpo
Slide 27: Large, Fast-Growing Market
AEBIT Large, Fast-Growing Market USD Co-working and Space as a 1.7t 15x Market growth compared to Service (SaaS) TAM *1 commercial office industry *2 140 Cities with 37 Countries with ~1K WeWork Buildings by WeWork offices *3 WeWork offices *3 2021 *4 1 Co-working and Space-as-a-Service TAM + Cost S
Slide 28: 5-Year Strategic and Financial Plan
EBIT Strategic and Financial Plan 5-Year 2020 First USD 1bn revenue quarter *1 ’21 Adj. EBITDA positive *2 ’22 Free Cash Flow positive *3 ’23 1 million memberships *4 ’24 Approx. USD 1bn+ of FCF *3 Not projections; these are goals / targets and are forward-looking, subject to significant business, e
Slide 29: Fully Funded Business Plan (1)
EBIT Funded Business Plan (1) Fully (USD bn) 5.3 +2.2 +1.1 +0.8 1.2 Cash and Release of Secured Unsecured Total available cash equivalents restricted cash *1 facility*2 Notes*3 as of Dec. 31, 2019 liquidity Assumes full borrowing and availability of facilities. Figures exclude China *1 In connection
Slide 30: Fully Funded Business Plan (2)
EBIT Funded Business Plan (2) Fully (USD bn) 5.3 +2.2 -2.5 +1.1 +0.8 1.2 Cash and Release of Secured Unsecured Total available Cash flows to cash equivalents restricted cash *1 facility*2 Notes*3 break-even as of Dec. 31, 2019 liquidity (2022) *4 Assumes full borrowing and availability of facilities
Slide 31: Fully Funded Business Plan (3)
EBIT Funded Business Plan (3) Fully (USD bn) 5.3 +2.2 -2.5 2.8 +1.1 +0.8 1.2 Cash and Release of Secured Unsecured Total available Cash flows to Available cash equivalents restricted cash *1 facility*2 Notes*3 break-even liquidity as of Dec. 31, 2019 liquidity (2022) *4 post Assumes full borrowing a
Slide 32: Experienced Leadership: Sandeep Mathrani
EBIT Experienced Leadership Sandeep Mathrani Newly appointed Chief Executive Officer • Deep real estate subject matter expertise • Recognized turnaround executive • Led turnaround of General Growth Properties (GGP) out of bankruptcy; from USD 27bn in debt to an Enterprise Value of USD 42bn (Source)
Slide 33: Domestic business
Domestic business Domestic business = SoftBank segment !31
Slide 34: Revenue (SBKK consolidated)
Revenue (SBKK consolidated) (JPY bn) 3,618.0 (USD 33.0bn) 3,454.5 Up 5% USD 1 = JPY 109.56 (as of Dec. 30, 2019 TTM) FY18 Q1-Q3 FY19 Q1-Q3 Actuals for FY2018 have been restated retrospectively to have consolidated Z Holdings Corporation (hereafter “ZHD”, previous Yahoo Japan Corporation) from April
Slide 35: Operating Income (SBKK consolidated)
Operating Income (SBKK consolidated) (JPY bn) 795.1 (USD 7.3bn) 729.5 Up 9% USD 1 = JPY 109.56 (as of Dec. 30, 2019 TTM) FY18 Q1-Q3 FY19 Q1-Q3 Actuals for FY2018 have been restated retrospectively to have consolidated Z Holdings Corporation (hereafter “ZHD”, previous Yahoo Japan Corporation) from Ap
Slide 36: Net Income (SBKK consolidated)
Net Income (SBKK consolidated) (JPY bn) 423.3 436.6 (USD 4.0bn) Up 3% USD 1 = JPY 109.56 (as of Dec. 30, 2019 TTM) FY18 Q1-Q3 FY19 Q1-Q3 Actuals for FY2018 have been restated retrospectively to have consolidated Z Holdings Corporation (hereafter “ZHD”, previous Yahoo Japan Corporation) from April 1,
Slide 37: Smartphone Cumulative Subscribers
Smartphone EBIT Cumulative Subscribers (m) 23.48 21.46 Up 9% Net adds for all brands ’16 ’17 ’18 ’19 (FY) Q3 Q3 Q3 Q3 Including enterprise subscribers !35
Slide 38: Operating Income (Yahoo)
Operating Income (JPY bn) Jun. 2019, 47.9 (USD 0.4bn) consolidation of ZHD Improved after SoftBank consolidated ZHD ’18 ’19 ’19 ’19 (FY)(FY) Q4 Q1 Q2 Q3 USD 1 = JPY 109.56 (as of Dec. 30, 2019 TTM) !36
Slide 39: PayPay Cumulative Registered Users
Cumulative Registered Users 25 (m) 20 Exceeded 24m Feb. 2, 2020 15 10 5 0 Oct. 2018 Feb. 2020 (Source) Data by PayPay Corporation, collected from Oct. 5, 2018 to Feb. 2, 2020, including registrations from PayPay app and via Yahoo! JAPAN app !37
Slide 40: PayPay Number of Payments per Month
Number of Payments per Month 100m+ 2.5x in three months since Sep. 2019 42m Jan. 2019 Apr. Jul. Oct. Dec. (FY) (Source) Data by PayPay Corporation !38
Slide 41: Alibaba
Alibaba !39
Slide 42: Alibaba Revenue
Total EBIT Revenue (Apr.-Sep. cumulative) (USD) 33.4bn USGAAP 23.7bn Up 41% 2011 ’13 ’15 ’17 ’19 (Source) Created by SoftBank Group Corp. based on publicly available historical information published by Alibaba Group Holding Limited Apr.-Sep. Apr.-Sep. Apr.-Sep. Apr.-Sep. Apr.-Sep. USD 1.00 = RMB 7.0
Slide 43: Alibaba Non-GAAP Net Income
Non-GAAP Net Income (Apr.-Sep. cumulative) (USD) 9.1bn USGAAP Non-GAAP (Excluding the gains and losses related to share based compensation expenses, amortization of intangible assets, revaluation of investments etc.) 6.2bn Up 46% 2011 ’13 ’15 ’17 ’19 (Source) Created by SoftBank Group Corp. based on
Slide 44: Alibaba Free Cash Flow
Free EBIT Cash Flow (Apr.-Sep. cumulative) 8.1bn USGAAP (USD) Non-GAAP Up 34% 6.0bn 2013 ’15 ’17 ’19 (Source) Created by SoftBank Group Corp. based on publicly available historical information published by Alibaba Group Holding Limited Apr.-Sep. Apr.-Sep. Apr.-Sep. Apr.-Sep. USD 1.00 = RMB 7.007 !42
Slide 45: Alibaba Market Cap.
Market Cap. USD 582.7bn * Listed in NYSE (Sep. 19, 2014) USD 231.4bn *Closing price as of Feb.11, 2020 2014 ’15 '16 ’17 ’18 ’19 '20 (CY) (Source) S&P Capital IQ !43
Slide 46: Progress on the Merger of Sprint and T-Mobile
Progress on the Merger of Sprint and T-Mobile !44
Slide 47: T-Mobile and Sprint Won in Court
T-Mobile and Sprint Won in Court Moving to finalize merger All necessary federal approvals required for the Transaction to close have been obtained, including the federal regulatory approvals (approval from the Antitrust Division of the U.S. Department of Justice (DOJ) and the Federal Communications
Slide 48: Benefits of the New T-Mobile
Benefits of the New T-Mobile America’s first transformational nationwide 1 5G network and services Expanding access and bridging 2 the digital divide with #5GForAll Better service and lower prices 3 for ALL Americans 4 Alternative to in-home broadband 5 Job creation nationwide !46
Slide 49: Shareholder Value
Shareholder Value !47
Slide 50: Sum-of-the-parts as of Sep. 30, 2019
• Net debt = SBG net interest-bearing debt = SBG gross debt - SBG cash positions, etc • For details, see “Definition and Calculation Method of SBG’s Sum-of-the-parts Valuation” As of Sep. 30, 2019 (USD bn) Other 238 7.0 SVF 29.1 24.6 21.3 43.2 112.7 Equity value of USD 1 = JPY 107.93 holdings Share
Slide 51: Sum-of-the-parts as of Sep. 30, 2019
• Net debt = SBG net interest-bearing debt = SBG gross debt - SBG cash positions, etc • For details, see “Definition and Calculation Method of SBG’s Sum-of-the-parts Valuation” As of Sep. 30, 2019 (USD bn) Other 238 7.0 SVF 29.1 24.6 21.3 43.2 238 112.7 Equity value of Equity value of USD 1 = JPY 10
Slide 52: Sum-of-the-parts as of Sep. 30, 2019
• Net debt = SBG net interest-bearing debt = SBG gross debt - SBG cash positions, etc • For details, see “Definition and Calculation Method of SBG’s Sum-of-the-parts Valuation” As of Sep. 30, 2019 (USD bn) Other 238 7.0 SVF 29.1 Net debt 51 24.6 21.3 43.2 112.7 Equity value of Shareholder USD 1 = JP
Slide 53: Sum-of-the-parts as of Sep. 30, 2019
• Net debt = SBG net interest-bearing debt = SBG gross debt - SBG cash positions, etc • For details, see “Definition and Calculation Method of SBG’s Sum-of-the-parts Valuation” As of Sep. 30, 2019 (USD bn) Other 238 7.0 SVF 29.1 Net debt 51 24.6 21.3 43.2 Shareholder value 187 112.7 Equity value of
Slide 54: Sum-of-the-parts as of Feb. 12, 2020
• Net debt = SBG net interest-bearing debt = SBG gross debt - SBG cash positions, etc • For details, see “Definition and Calculation Method of SBG’s Sum-of-the-parts Valuation” As of Feb. 12, 2020 (USD bn) 283 238 Other 10.3 SVF 28.7 24.6 29.4 43.6 146.3 Equity value of USD 1 = JPY 109.88 holdings S
Slide 55: Sum-of-the-parts as of Feb. 12, 2020
• Net debt = SBG net interest-bearing debt = SBG gross debt - SBG cash positions, etc • For details, see “Definition and Calculation Method of SBG’s Sum-of-the-parts Valuation” As of Feb. 12, 2020 (USD bn) 283 238 Other 10.3 SVF 28.7 24.6 29.4 43.6 283 146.3 Equity value of Equity value of USD 1 = J
Slide 56: Sum-of-the-parts as of Feb. 12, 2020
• Net debt = SBG net interest-bearing debt = SBG gross debt - SBG cash positions, etc • For details, see “Definition and Calculation Method of SBG’s Sum-of-the-parts Valuation” As of Feb. 12, 2020 (USD bn) 283 238 Other 10.3 Net debt SVF 28.7 55 24.6 29.4 43.6 146.3 Equity value of Shareholder USD 1
Slide 57: Sum-of-the-parts as of Feb. 12, 2020
• Net debt = SBG net interest-bearing debt = SBG gross debt - SBG cash positions, etc • For details, see “Definition and Calculation Method of SBG’s Sum-of-the-parts Valuation” As of Feb. 12, 2020 (USD bn) 283 238 Other 10.3 Net debt SVF 28.7 55 24.6 29.4 43.6 Shareholder value 228 146.3 Equity valu
Slide 58: USD 41bn increased
• Net debt = SBG net interest-bearing debt = SBG gross debt - SBG cash positions, etc • For details, see “Definition and Calculation Method of SBG’s Sum-of-the-parts Valuation” As of Feb. 12, 2020 (USD bn) 283 238 Other 10.3 Net debt SVF 28.7 55 24.6 29.4 43.6 Shareholder value USD 41bn 228 increase
Slide 59: LTV
LTV 16% Equity value of holdings: excluding the sum of the amount equivalent to the outstanding margin loan backed by Alibaba shares and the amount to be settled at the maturity of collar financing on Alibaba shares calculated based on the share price Net Debt: excluding the sum of the amount equiva
Slide 60: Firmly Maintain Financial Policy
Firmly Maintain Financial Policy Manage LTV at less than 25% during “normal” periods (upper threshold of 35% even during “abnormal” periods) Maintain cash position covering bond redemptions for at least next 2 years Secure sustainable distribution and dividend income from SVF and other subsidiaries
Slide 61: Our policy on portfolio companies' support
Our policy on portfolio companies’ support Portfolio company finances to be No rescue self-financing package !59
Slide 62: !60
!60
Slide 63: EBIT / Shareholder Value
Shareholder EBIT Value !61
Slide 64: EBIT (SVF Segment)
EBIT (SVF Segment) JPY -225.1bn (USD -2.1bn) Q1 Q2 Q3 Q4 Q1 Q2 Q3 ’18 ’19 USD 1 = JPY 109.56 (as of Dec.30, 2019 TTM) !62
Slide 65: SVF1 Listed Portfolio Companies: Increased USD +3.0bn
SVF1 Listed Portfolio Companies As of Dec. 31, 2019 As of Feb. 11, 2020 As of Feb. 11, 2020 (USD m) Investment cost Gross gain/(loss) Gross gain/(loss) Company Gross MOIC to SVF1 to SVF1 to SVF1 Guardant Health 308 +$1,863 +$1,875 7.1 x Uber 7,666 -$1,057 +$1,505 1.2 x Slack 334 +$489 +$578 2.7 x 10
Slide 66: EBIT (SBG Consolidated)
EBIT (SBG Consolidated) JPY 2.6bn (USD 24m) Q1 Q2 Q3 Q4 Q1 Q2 Q3 ’18 ’19 USD 1 = JPY 109.56 (as of Dec.30, 2019 TTM) !64
Slide 67: Equity value of holdings
Equity value of holdings (USD bn) 283 10.3 Other 2387.0 28.7 24.6 SVF 29.1 29.4 24.6 21.3 43.6 43.2 146.3 112.7 As of Sep. 30, 2019 As of Feb. 12, 2020 USD 1 = JPY 109.88 Share price: closing price as of Feb. 12 (Japan) closing price as of Feb. 11 (U.S.) !65
Slide 68: Shareholder Value USD +41bn
Shareholder Value USD +41bn USD 228bn USD 187bn As of Sep. 30, 2019 As of Feb. 12, 2020 USD 1 = JPY 109.88 Share price: closing price as of Feb. 12 (Japan) closing price as of Feb. 11 (U.S.) !66
Slide 69: EBIT and Shareholder Value
EBIT (SBG Consolidated) Shareholder Value USD +41bn USD 228bn JPY 2.6bn (USD 24m) USD 187bn As of Sep. 30, 2019 As of Feb. 12, 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 USD 1 = JPY 109.88 ’18 ’19 USD 1 = JPY 109.56 (as of Dec.30, 2019 TTM) Share price: closing price as of Feb. 12 (Japan) closing price as of Feb. 11
Slide 70: EBIT and Shareholder Value
Shareholder EBIT Value JPY 2.6bn USD +41bn (USD 24m) USD 1 = JPY 109.56 (as of Dec.30, 2019 TTM) *Equity value of holdings - net debt SBG Consolidated EBIT for FY19Q3 Changes from Sep. 30, 2019 to Feb. 12, 2020 !68
Slide 71: Uber, etc. / Alibaba, etc.
Uber, etc. Alibaba, etc. (Equity shares held by SVF) (Equity shares held by SBG) * Change in fair value Change in equity value of holdings is recorded is not recorded in EBIT in EBIT *Excl. equity shares held by SVF !69
Slide 72: Key KPI: Shareholder Value
Key KPI of SoftBank Group Corp. Shareholder Value (Equity value of holdings - net debt) !70
Slide 73: Market cap. JPY 12t
JPY 12t (USD 108bn) Market cap. USD 1 = JPY 109.88 ’95 ’97 ’99 ’01 ’03 ’05 ’07 ’09 ’11 ’13 ’15 ’17 ’19 (FY) SBG Market cap.: closing price as of Feb. 12 !71
Slide 74: Shareholder value vs market cap discount
Shareholder value JPY 25t (USD 228bn) Discount 52% JPY 12t (USD 108bn) Market cap. USD 1 = JPY 109.88 ’95 ’97 ’99 ’01 ’03 ’05 ’07 ’09 ’11 ’13 ’15 ’17 ’19 (FY) SBG Market cap.: closing price as of Feb. 12 Shareholder value: closing price as of Feb. 12 (Japan) !72 closing price as of Feb. 11 (U.S.)
Slide 75: Shareholder value per share vs share price
SBG JPY 12,097 shareholder (USD 110) value per share Discount 52% JPY 5,751 (USD 52) Share price USD 1 = JPY 109.88 ’95 ’97 ’99 ’01 ’03 ’05 ’07 ’09 ’11 ’13 ’15 ’17 ’19 (FY) SBG Market cap.: closing price as of Feb. 12 Shareholder value: closing price as of Feb. 12 (Japan) !73 closing price as of Feb
Slide 76: Tide is turning
Tide is turning !74
Slide 77: Return profit, Shareholder Value, Moving to finalize merger
Shareholder Return Moving to Value finalize profit USD +41bn *1 merger*2 *1 Compared from Sep. 30, 2019 *2 All necessary federal approvals required for the Transaction to close have been obtained, including the federal regulatory approvals (approval from the Antitrust Division of the U.S. Department
Slide 78: To Maximize Shareholder Value
To Maximize Shareholder Value !76
Slide 79: SoftBank
SoftBank
Slide 80: Appendix
Appendix
Slide 81: SVF1 Listed Portfolio Companies (as of Dec. 31, 2019)
SVF1 Listed Portfolio Companies (as of Dec. 31, 2019) (USD m) (a) (b) (c) = (b) - (a) (d) = (b) / (a) Investment cost Gross return *5 Gross gain/(loss) *7 Company Gross MOIC to SVF1 to SVF1 to SVF1 *1 Guardant Health 308 2,171 +1,863 7.1 x Slack 334 823 +489 2.5 x 10x Genomics 31 293 +262 9.4 x *2 *
Slide 82: SVF1 Listed Portfolio Companies (as of Feb. 11, 2020)
SVF1 Listed Portfolio Companies (as of Feb. 11, 2020) (USD m) (a) (b) (c) = (b) - (a) (d) = (b) / (a) Investment cost Gross return *8 Gross gain/(loss) *9 Company Gross MOIC to SVF1 to SVF1 to SVF1 Guardant Health *1 308 2,183 +$1,875 7.1 x Uber 7,666 9,171 +$1,505 1.2 x Slack *2 334 912 +$578 2.7 x
Slide 83: SVF1 Snapshot (as of December 31, 2019)
SVF1 Snapshot (as of December 31, 2019) (USD billion) (a) (b) (c) = (b) - (a) *2 *1 *1 Investment cost Gross return Gross gain/(loss) to SVF1 to SVF1 to SVF1 *3 (A) Listed company total $9.6 $11.0 +$1.4 (B) Private & exited company total $70.9 $79.0 +$8.1 (A)+(B) SVF1 total (Gross) $80.5 $90.0 +$9.5
Slide 84: Definition and Calculation Method of SBG's Sum-of-the-parts Valuation
Definition and Calculation Method of SBG’s Sum-of-the-parts Valuation i. Net debt • Net debt = net interest-bearing debt (SBG) = Net debt (SBG) • Net debt (SBG) = gross debt (SBG) - cash position, etc (SBG) • gross debt (SBG) = gross interest-bearing debt (SBG) = Gross debt (Consolidated) - Gross de