Slide 1: Earnings Results for the Fiscal Year Ended March 31, 2024
Ver.1.3 Earnings Results for the Fiscal Year Ended March 31, 2024 Investor Briefing May 13, 2024 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 FY2022 FY2023 Average during quarter Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1 USD 129.04 138.68 141.16 133.26 138.11 145.44 147.00 147.87 EOQ Jun 30 Sep 30 Dec 31 Mar 31 Jun 30 Sep 30 Dec 31 Mar 31 1 USD 133.53 151.41 Abbreviations Abbreviations used in Accounting and Fi
Slide 4: Index
Index • Accounting • Finance • SoftBank Vision & LatAm Funds • Arm
Slide 5: Accounting
Accounting
Slide 6: Consolidated Results
Consolidated Results (¥ B) FY22 FY23 Change Change % Net sales 6,570.4 6,756.5 +186.1 +2.8% Income before -469.1 57.8 +526.9 ー income tax Net income (attributable to owners of the -970.1 -227.6 +742.5 ー parent) (Reference) Loss on investments -835.1 -559.4 +275.7 ー Investment Business of Holding Com
Slide 7: Net Income & SVF Segment Income
Net Income & SVF Segment Income 3,033.6 950.0 (¥ B) 422.7 Net income 61.0 231.1 -57.6 SVF segment income (income before income tax) -660.1 -96.7 -297.5 -258.9 • Includes investment gain/loss in Arm shares -1,019.9 -477.6 • After considering third-party interests -783.4 -931.1 -2,330.8 -3,162.7 Q1 Q2
Slide 8: Investment Business of Holding Companies Segment
Investment Business of Holding Companies Segment (¥ B) P/L item FY22 FY23 FY23 Main Items Gain/loss on investments at Investment Business of Holding Companies 4,560.6 -459.0 Gain relating to settlement of prepaid forward contracts using Alibaba shares 4,838.3 ― Gain/loss relating to sales of T-Mobil
Slide 9: Acquisition of T-Mobile Shares for No Additional Consideration
Acquisition of T-Mobile Shares for No Additional Consideration Contingent consideration The condition of 45-day trailing VWAP of T-Mobile share (Part of consideration for the merger between Sprint and T-Mobile) ≧ $149.35 was satisfied on Dec 22, 2023 Acquired 48.8M T-Mobile shares for no additional
Slide 10: T-Mobile: Shareholding & Fair Values
T-Mobile: Shareholding & Fair Values includes shares subject to unexercised Deutsche Telekom’s call options Held 92.1M T-Mobile shares T-Mobile share price $160.33 $163.22 at FY23Q4, up 52.3M shares $144.84 from FY22Q4 $138.90 $140.05 $1,036M Received 3.6M shares upon vesting (¥154.5B) contingent
Slide 11: Deutsche Telekom: Shareholding & Fair Values
Deutsche Telekom: Shareholding & Fair Values Acquired 225M Deutsche Deutsche Telekom share price Telekom shares in Sep 2021 €22.35 €21.75 €22.50 in return for the sale of T-Mobile shares €19.98 €19.87 $6M (¥6.1B) valuation gain for FY23 Fair value of Deutsche Telekom shares ($ M) (i) DT shares (ii
Slide 12: Alibaba Shares & Derivative Financial Assets/Liabilities
Alibaba Shares & Derivative Financial Assets/Liabilities (Amount Recorded in B/S) Value of Alibaba shares Derivative financial Investment securities (FVTPL) recorded in B/S assets/liabilities (net) considering prepaid Alibaba share price forward contracts: $102.18 $102.18 $30,462M ( A + B ) Of valua
Slide 13: SoftBank Vision Funds Segment
SoftBank Vision Funds Segment (¥ B) P/L FY22 FY23 FY23 Main Items In consolidated P/L, loss on investments at SoftBank Vision Gain/loss on investments at SoftBank Vision Funds -5,279.5 724.3 Funds was ¥167.3B (see p10) ¥768.9B gain at SVF1, ¥146.5B loss at SVF2 Gain/loss on investments at SVF1, SVF2
Slide 14: Difference between Segment Results and Consolidated P/L
Difference between Segment Results and Consolidated P/L (i) Investment gains/losses related to subsidiaries, mainly Arm and PayPay, are included in “gain/loss on investments at SoftBank Vision Funds” (segment information), but are eliminated in consolidations and excluded from “gain/loss on investme
Slide 15: Investment Performance of SVF1 and SVF2
(Reference) Investment Performance of SVF1 and SVF2 ($ B) Since Inception FY23*1 Gain/loss Gain/loss Cost*2 Returns*2 Gain/loss Q4 YTD SVF1 89.6 106.3 16.7 0.0 5.3 Exited investments 38.0 64.1 26.1 0.4 7.3 Investments before exit 51.6 39.9 -11.7 -0.1 -0.6 Reversal of previously-recorded valuation ga
Slide 16: Status of Investment and Financial Support for WeWork
Status of Investment and Financial Support for WeWork (Cumulative) ($ M) Cumulative acquisition cost as of Mar 2024 Cumulative cash flows (SBG consolidated basis) Cumulative loss Carrying other than acquisition as of Mar 2024 amount * Exchange from of investments as of (SBG consolidated Amount paid
Slide 17: Bridge to Arm's disclosure (FY23 P/L)
Arm Segment in SBG’s Consolidated Financial Report Bridge to Arm’s disclosure (FY23 P/L) Adjustment (1) Adjustment (2) Adjustment (3) Amortization expenses SBG Consolidated related to intangible Difference in assets recognized in accounting Arm Financial Report Arm segment the purchase price standar
Slide 18: Consolidated P/L Summary
Consolidated P/L Summary (¥ B) P/L item FY22 FY23 Change Net sales 6,570.4 6,756.5 +186.1 Gross profit 3,328.0 3,542.4 +214.4 1 ・¥371.1B investment gain on TMo shares Gain/loss on investments ・¥959.9B realized and unrealized valuation losses on Alibaba shares Investment Business of Holding (offset b
Slide 19: Net Income Attributable to Owners of the Parent for FY23
Calculation from Income Before Income Tax to Net Income Attributable to Owners of the Parent for FY23 (¥ B) 209.2 57.8 -436.9 +580.5 -227.6 -429.1 Income before Current income Deferred tax Net Net income Net income income tax taxes expenses income attributable to attributable to owners non-controlli
Slide 20: Difference in Tax Rate
Difference in Tax Rate (Minuses show expenses) FY23 Rate (％) Amount (¥ B) Income before income tax 57.8 Effective statutory tax rate 31.5％ -18.1 (Main factors of difference) (i) Anti-tax haven taxation in Japan -309.8% 179.1 (ii) Permanent difference 211.3% -122.1 (iii) Recoverability of deferred ta
Slide 21: Loss Carryforwards
Loss Carryforwards (as of Mar 31, 2024) (¥ B) Valuation Carrying amounts Income base Tax base allowance in B/S Total of companies 2,611.6 835.5 -310.1 525.4 based in Japan Total of companies 362.2 84.0 -45.8 38.2 based outside of Japan Consolidated total 2,973.8 919.5 -355.9 563.6 Accounting 17
Slide 22: Income Taxes Paid on a Consolidated Basis
Income Taxes Paid on a Consolidated Basis (Net) (¥ B) FY18 FY19 FY20 FY21 FY22 FY23 Total Consolidated 415.4 636.3 445.5 589.3 525.9 816.8 3,429.2 Japan 284.3 575.2 310.5 551.2 469.7 717.0 2,907.9 SBG and holding companies (wholly 36.8 324.7 35.7 200.0 214.2 443.3 1,254.7 owned subsidiaries) Ope
Slide 23: Consolidated B/S Summary – Non-current assets
Consolidated B/S Summary – 1 (¥ B) B/S Main items Mar 2023 Mar 2024 Change item 1 SBG and wholly owned subsidiaries conducting fund procurement, etc.: ¥3,024.0B (¥1,061.0B decrease) Current assets 10,586.5 11,441.4 +854.9 Cash and cash equivalents 6,925.2 1 6,186.9 -738.3 2 ・¥644.1B increase for A
Slide 24: Investment Securities in Consolidated B/S
Investment Securities in Consolidated B/S (Main Investments) (¥ B) Mar 2023 Mar 2024 Change Outline Investment securities 7,706.5 9,062.0 +1,355.5 FVTPL 7,244.3 8,321.5 +1,077.2 4,842.3 3,757.1 -1,085.2 Decreased mainly due to lower share price and the physical Alibaba $36,264M $24,814M -$11,450M se
Slide 25: Breakdown of Goodwill/Intangible Assets
Breakdown of Goodwill/Intangible Assets (¥ B) Change B/S Main items Mar 2023 Mar 2024 Amorti- Changes in Outline Item Others zation FX rate 5,199.5 5,709.9 *1 Goodwill Arm 3,161.7 3,585.0 ― +423.3 ― SBKK 913.9 913.9 ― ― ― LY*2 647.4 647.4 ― ― ― ZOZO 214.0 214.0 ― ― ― Technologies 344.3 359.0 Main in
Slide 26: Consolidated B/S Summary – Non-current liabilities
Consolidated B/S Summary – 2 (¥ B) B/S item Main items Mar 2023 Mar 2024 Change 1 SBG 10,580.7 14,020.3 +3,439.6 Borrowings*: ¥463.0B (¥81.1B increase) Interest-bearing debt 5,129.0 1 8,271.1 +3,142.1 Corporate bonds*: ¥6,147.6B (¥394.6B increase) Wholly owned subsidiaries conducting fund procuremen
Slide 27: Consolidated B/S Summary – Equity
Consolidated B/S Summary – 3 (¥ B) B/S Mar Mar Items Change Item 2023 2024 10,649.2 13,237.2 +2,588.0 1 Amount equivalent to the gain on the sale of Arm shares upon Common stock 238.8 238.8 ― its IPO :¥674.4B Capital surplus 2,652.8 3,326.1 1 +673.3 2 Redeemed $2.0B USD-denominated NC6 undated hybri
Slide 28: Impact of the Weaker Yen on P/L & B/S
Impact of the Weaker Yen on P/L & B/S (Illustration) P/L B/S Entities Components Foreign exchange Exchange differences gain (loss) from translation Foreign currency- denominated cash and cash equivalents/ SBG stand-alone + Loans receivable Foreign exchange gain Subsidiaries conducting (excl. investm
Slide 29: Impact of the Weaker Yen in FY23
Impact of the Weaker Yen in FY23 (from ¥133.53/$ to ¥151.41/$) Foreign exchange loss in consolidated P/L for FY23: ¥703.1B At SBG stand-alone: Foreign exchange losses of ¥982.2B related to foreign currency-denominated borrowings from Group companies, ¥74.1B related to foreign currency-denominated bo
Slide 30: Consolidated C/F Summary
Consolidated C/F Summary (¥ B) 1 ¥250.5B net inflow, despite outlays for income taxes and the acquisition of C/F corporate bonds by SB Northstar FY22 FY23 Primary details for FY23 item ・¥885.6B income taxes paid +1,241.7 Subtotal of cash flows from operating activities SBG has paid ¥368.6B income ta
Slide 31: Co-investment Program to SVF2: Related Party Transactions
Co-investment Program to SVF2: Related Party Transactions Equity interests of third-party interests Masayoshi SBG FY23: $― (¥―) Son* 1 FY22: $― (¥―) Equity interests: 17.25% (B) (A) Distribution: $173M Equity acquisition amount: $2,923M 100% (Return of capital) (i) Acquisition costs: $2,594M (commit
Slide 32: Co-investment Program to LatAm Funds & Management's Investment
Co-investment Program to LatAm Funds & Management’s Investment in Asset Management Subsidiary Co-investment program to LatAm Funds Management’s investment in Equity interests of third-party investors asset management subsidiary FY23: $93M ( ¥14.1B) FY22: $215M (¥28.7B) Masayoshi SBG Masayoshi Son SB
Slide 33: Appendix
Appendix
Slide 34: Arm IPO and Accounting Treatment
Arm IPO and Accounting Treatment In September 2023, SBG’s wholly owned subsidiary disposed 10%* of Arm shares in the IPO and received proceeds of $5.12B. The amount equivalent to the gain on the disposal was $4.65B. Arm continues to be SBG’s consolidated subsidiary post-IPO as SBG holds 90%* of
Slide 35: Bridge to Arm's Form F-1 (FY22 P/L)
Arm Segment in SBG’s Consolidated Financial Report Bridge to Arm’s Form F-1 (FY22 P/L) Adjustment (1) Adjustment (2) Adjustment (3) Amortization expenses SBG Consolidated related to intangible Difference in Reflecting the latest assets recognized in accounting available Arm Financial Report Arm segm
Slide 36: SoftBank
SoftBank
Slide 37: Finance
Finance SBG stand-alone financial figures are calculated by excluding those of self- financing entities from the consolidated figures, unless otherwise stated. Major self financing entities includes SBKK (including its subsidiaries such as LY Corporation and PayPay), Arm, SVF1, SVF2, LatAm Funds, et
Slide 38: Current Market Environment
Current Market Environment SoftBank Despite rising U.S. interest rates, stock indices, with the exception of Chinese high-tech stocks, are rising. JPY weakened against USD U.S. Interest Rates Stock Indices*1 Exchange Rate (USD/JPY) (%) FF Target Rate (upper bound) (JPY) 165 4 6.05 — US Treasury 2Y i
Slide 39: Impact of Market Environment on Our NAV
Impact of Market Environment on Our NAV SoftBank NAV nearly doubled due to the surge in Arm shares and depreciation of JPY “en Forex Impact* Others arm Other Assets Bod} -0.4 a 13.4% iati -4% appreciation 0.8 of USD ¥+13.71 Yoy ($1=¥133.53>151.41) Share price increase after IPO Time of listing (Sep
Slide 40: Historical Equity Value of Holdings
Historical Equity Value of Holdings SoftBank Large-scale portfolio reshuffling was facilitated by the monetization of Alibaba and the rise in Arm's value ¥30.4r ¥30.3r ¥28.6r V6 4 ¥26.9 ¥23.21 SVF1/SVF2/LatAm Telecommunication ¥ 1 5. or companies Others Alibaba Alibaba Group rr ad r mM < BEPPSo FY20
Slide 41: Historical NAV
Historical NAV SoftBank NAV increased significantly, recording its highest value NAV L M&A | | IPO | ome 6M VI7 8 SVF2. Sprint ) 10OT LatAm SoftBank SVF1 [M&A] arm LIPO EQ Alibaba croup [Launch | } JAPAN TELECOM SATCS. BB. [sa | [_1P0_| 6) Or Ez. ‘Alibaba.com “YaHQQ! vodafone FY2000 Fy2005 FY2010 Fy
Slide 42: FY2023 Summary
FY2023 Summary NAV doubled due to strong performance of listed shares, led by Arm NAV ¥27.8T (+¥13.7T YoY) LTV 8.4％ (-2.6 ppt YoY) NAV・LTV Net debt ¥2.6T (+¥0.8T YoY) *1 Cash position ¥4.7T (-¥0.5T YoY) Executed sizable monetization ⁻ Asset back finance using Alibaba shares ¥605.6B (Completed cumula
Slide 43: Historical Equity Value of Holdings
Historical Equity Value of Holdings SoftBank Significant increase in Arm's value nearly doubled the equity value of holdings 30.3 Net of asset-backed finace (¥T) aa OTM Share price $124.99 as of 31 Mar Alipaba croup 15,9 0.7 SVF1+2, LatAm SoftBank Corp. T-Mobile/ Deutsche Telekom Others Mar 2023 Jun
Slide 44: Proportion of Listed Shares
Proportion of Listed Shares SoftBank Proportion of listed shares is ~80%, resulting in the portfolio's liquidity being at an extremely high level Net of asset- Unlisted 26% 21% 48% 59% Listed FRZ0% 79% 52% 41% Mar 2021 Mar 2022 Mar 2023 Mar 2024 * Proportion of listed shares : Shares of Alibaba, Arm
Slide 45: Asset Concentration Risk
Asset Concentration Risk SoftBank Pursue long-term return by flexibly handling short-term volatility A defensive wall against short-term asset volatility Ample cash position (¥4.7T*) * Constantly maintain sufficient cash position to cover 2 years' worth of bond redemptions « Abundant cash position t
Slide 46: Historical Invested Amounts
. . SoftBank Historical Invested Amounts (SVF1i + SVF2 + LatAm Funds + SBG) Group Invested $3.9B in FY2023. Strategic investment committed capital stands at $5B ($B) $5B FY2022 total FY2023 total $4.0B $3.9B 2.5 SBG*! 1.8 1.5 SVF1+ 0.9 SVF2+ 05 05 tA *2 LatAm 0.5 i 0.3 0.3 fee ea ai Q2 Q3 a4 Qi Q2 Q
Slide 47: Historical LTV
Historical LTV*! SoftBank LTV decreased by 2.6ppt YoY, standing at one of the lowest levels in history Average LTV over the past two 10.6% 3 years*2 8.0% 8.4% Mar 2022) Jun2022 Sep2022 Dec2022 Mar2023 Jun2023 Sep2023 Dec2023 Mar 2024 *1 As of the end of each quarter *2 Incl. end of FY2022Q4 Fi ii *3
Slide 48: Cash Position and Future Bond Redemptions
Cash Position and Future Bond Redemptions Maintain ample cash position, well over 2-year worth of bond redemptions Cash position Bond redemption schedule*3 ¥4.7 T *1 (¥ B) 749.5 Undrawn commitment line*2 Bond redemptions 3,934.0 for the next 2 years (¥1.7T) ＞ 700.5 999.0 1,097.2 506.1 Mar 2024 Apr 2
Slide 49: Currency Breakdown and Yield of Cash Position
Currency Breakdown and Yield of Cash Position soitBank Continuing high yield operations primarily with USD deposits. Annual interest income in FY2023 was ~¥160.0B*! Breakdown of cash position*2 Yield for SBG USD deposits, etc. fey (#7) (%) 5.5% FF Rate (Upper Limit) 5.5% 5.5% Yield"? a 4.2%us 10Y a
Slide 50: Impact of Currency Exchange
Impact of Currency Exchange Weaker JPY against USD increases NAV, while decreasing consolidated net income Quarter Year (FY23Q4) （FY22Q4-FY23Q4） Forex change Weaker by ¥10 Weaker by ¥18 (Forex change in USD/JPY) (6.8%) (13.4%) Impact on NAV* +¥1.8T +¥3.3T Impact on consolidated net -¥0.4T -¥0.7T inc
Slide 51: Bond Redemption Schedule
Bond Redemption Schedule SoftBank Group Bond issuances will be managed with due consideration for cash position and market environment (¥ B) 1,555.4 1,097.2 999.0 700.5 588.0 506.1 FY2024 FY2025 FY2026 FY2027 FY2028 FY2029 + Outstanding balance as of Mar 31, 2024. However, incl. domestic senior bond
Slide 52: Issuance of Domestic Senior Bonds in March and April 2024
Issuance of Domestic Senior Bonds in March and April 2024 SoftBank Completed large bond offerings for retail and institutional investors. Symbolic deals confirming support from investors for our credit profile March 2024: Senior retail bonds April 2024: Senior institutional bonds ¥550.0B ¥100.0B in
Slide 53: Household Financial Assets in Japan
SoftBank Household Financial Asset (Bank of Japan Flow of Funds) rus Household financial assets continue to increase and exceed ¥2,000T Dec 31, 2005 ome, Total ¥1,631T ¥Olt \ Insurance, pension and standardized guarantees | Currency and deposit ¥4827 ¥/997 Investment trust ¥51T Equity, etc. ¥208T De
Slide 54: Growth of Investments in Corporate Bonds
Growth of Investments in Corporate Bonds Investments in corporate bonds by households significantly expanded, ranking as the second largest category after government bonds / FILP Dec 31, 2005 Dec 31, 2023 Balance of corporate bonds ¥1.2T ¥8.0T (Ref) Balance of ¥26.8T ¥13.5T government bonds / FILP %
Slide 55: Historical Issuance and Redemption of SBG Retail Bonds
SoftBank Historical Issuance and Redemption of SBG Retail Bonds rus Continuing large-scale issuance. The cumulative issuance amount has reached ¥8T. The cycle of issuance and redemption continues. 1 ete («B) 772.0 7,899.5 Annual Issuance Amount Cumulative Issuance Amount | 900.0 Hawks Bond initial y
Slide 56: SBG Leads the Retail Bond Market
SBG Leads the Retail Bond Market SoftBank SBG's continuous offering of retail bonds has significantly contributed to the expansion of the retail bond market Outstanding retail bonds per issuer (as of the end of Mar 2024) *1 | Top 10 issuers by outstanding retail bond | 10 issuers by outstanding reta
Slide 57: SBG Retail Bonds vs. Bank Time Deposits Balance
SBG Retail Bonds vs. Bank Time Deposits Balance Softbank SBG retail bonds have grown to a scale comparable to the time deposits of major regional banks Balance of major Japanese banks’ time deposit*! and SBG retail bonds*2 (¥T) Japan Post Bank { 75.2 Japan Post Bank MUFG 29.8 “Mega” Banks Mizuho FG
Slide 58: Initiatives to Provide Financial Products to Retail Investors
Initiatives to Provide Financial Products to Retail Investors Encourage a "shift from savings to investment" through continuous offerings of a wide range of mid-risk/mid-return products Low risk/ Mid-risk / Mid-return High risk/ Low return High return Balance First year of Investment Outstanding*1 o
Slide 59: Short-term Financing Balance Track Record
Short-term Financing Balance Track Record SoftBank Diversifying product lineup to meet short-term investment needs from a wide range of investors s < Mar 2024 Short-term financing Balance cP for financial markets 176.5 money trusts for corporate 118.2 money trusts for retail investors 189.5 Rind Ss
Slide 60: Funding and Fund Management Plans for FY2024
Funding and Fund Management Plans for FY2024 Flexibly select methods and scale while closely monitoring market conditions Products Plans Primarily anticipated for refinancing Domestic Bond (¥450.0B to be redeemed in FY2024) Foreign Currency Primarily anticipated for refinancing Bond ($1.9B equiv. to
Slide 61: SBG Stand-alone Interest-bearing Debt
SBG Stand-alone Interest-bearing Debt*! SoftBank Interest-bearing debt excl. non-recourse increased due to forex impact and domestic bond issuance Main changes from December 31, 2023 + Increase in financial liabilities relating to prepaid forward contracts +¥172.1B*2 (¥ B) - Forex impact on financia
Slide 62: SBG Stand-alone Cash Position
SBG Stand-alone Cash Position SoftBank Cash position increased mainly from forex impact and domestic bond issuance (¥B) 5,171.3 SB Northstar 29.6 415284 4,397.6 " 40.6 3,956.1 3,771.1 2.2 28.7 3,934.0 Mai es from Dec 2023 -Domestic bonds issuance -Domestic bonds redemption (+¥550.0B) (-¥399.9B) «Imp
Slide 63: SBG Stand-alone Net Interest-bearing Debt
SBG Stand-alone Net Interest-bearing Debt Softbank Adjusted net interest-bearing debt on par with previous quarter (¥ B) 9,978.8 10,023.3 10,363.5 . 8,941.6 8,205.2 - wal 7,536.8 7,810.2 > | Asset-backed finance, etc. ¥7,443.1B 8,034.6 r . Hybrid finance ¥367.1B 6,458.2 7,588.6 Adjusted SBG stand-al
Slide 64: Historical Credit Ratings
Historical Credit Ratings ~ SoftBank First upgrade in 12 years Acquisition of Acquisition Acquisition | Acquisition Listing Listing J CR A+ Japan Telecom || of Vodafone KK of Sprint of Arm of SBKK of Arm 1 1 1 1 1 ys A i— 1 ' t I 1 I A- 1 1 ra wml, (Stable) BBB+ toa 1 1 ' t I 1 BBB oI ' \ t ! t ' S&
Slide 65: Approach to Financial Strategy
Approach to Financial strategy SoftBank Formulation of financial strategies to execute investment strategies — Financial Financial management . synchronized with Philosophy investment strategy ys _ ssi“ Ce ‘Adhering to financial policy Financial *Flexibly respond to all environmental changes . q «Bu
Slide 66: Evolution of Financial Strategy
Evolution of Financial Strategy SoftBank Executed financial strategies tailored to environmental changes Emergence of Geopolitical Equity Value of Holdings* Start of US interest rate Semiconductor hikes Bankruptcy of Silicon Valley Bank JCR Financial Strategies Based on Financial Philosophy and Fina
Slide 67: Financial Management as an Investment Holding Company: Interest-Bearing Debt
Financial Management as an Investment Holding Company: SoftBank Breakdown of Consolidated Interest-Bearing Debt Grow Debt for which SBG has direct obligation of repayment is maintained at a low level Consolidated interest-bearing debt ¥21.47 Debt for self-financing entities SoftBank.. SWFLSVF2, etc.
Slide 68: Financial Management as an Investment Holding Company: Historical Asset and Debt
Financial Management as an Investment Holding Company: SoftBank Historical Asset and Debt Srow Achieved group-wide growth through effective asset utilization, while keeping SBG’s directly obligated net interest-bearing debt low . | Leverage management through Phase of business expansion through leve
Slide 69: Historical Equity Value of Holdings and LTV
Financial Management as an Investment Holding Company: Historical Equity Value of Holdings and LTV Equity value of holdings 25% |—— = ee eee ee ee ee ee ee ee Controlling LTV to a low level even when the equity value of holdings declines ef a FY2018 FY2019 (Note) As of each quarter Q2. O38 QF Qt FY2
Slide 70: Evaluation from Market
Evaluation from Market SoftBank Our share price and credit spreads performing steadily ont News article on domestic Spread of SBG foreign currency- 1 (JPY) Significantly (bps) Historically low level 12,000 — Share price recovered 1,000 —..UspD 3.4Y — Analyst target price — USD 3.9Y 11,000 (average)
Slide 71: FY24 Financial Strategy
FY24 Financial Strategy = SoftBank * . Financial management Financial synchronized with . investment strate Philosophy oy . . -Adhering to financial policy Financial -Flexibly respond to all environmental changes . . -Building trust with each stakeholder Pri ncl ples (Pursuing the optimal balance be
Slide 72: Adhering to Financial Policy
Adhering to Financial Policy Maintain LTV below 25% in normal times 1 (upper threshold of 35% even in times of emergency) 2 Maintain at least 2-year worth of bond redemptions in cash Secure recurring distributions and dividend income from 3 SVF and other subsidiaries Finance 36
Slide 73: Promoting Sustainability
Promoting Sustainability
Slide 74: Addressing the Top Priority Issues in Sustainability
SoftBank Addressing the Top Priority Issues in Sustainability rus Responsible AI Climate change Human capital Established Group GHG Emissions Reduction Plan for SBG and its major Attracting autonomous : subsidiaries (Scope1,2) and professional talent Established an eso) ‘ and supporting their AI G 6
Slide 75: Revision of Material Issues
Revision of Material Issues SoftBank Material issues relating to sustainability (“Material Issues”) updated according to changes in social and business environment € 2 g Responsible Al oO Be Hi i on a uman capil <£ [J x o¢ Pe Q £ Conservation of “Some 5 = natural capital 2 ie} a E c 2 8 E (Important
Slide 76: Promoting sustainability through investment: ESG integration
Promoting sustainability through investment: ESG SoftBank integration Sioa As an investment company, SBG promotes sustainability through its investments Developed and operating a framework for assessing risks and opportunities arising from sustainability in the investment process Pre-investment Inve
Slide 77: Investments that help address sustainability related issues
Investments that help address sustainability related SoftBank issues crew Aiming to address environmental and social challenges through investment == Flock Freight OLA ELECTRIC ll ENERGY VAULT . _E EXEGER ln... swell IONQ © mapbox Enpal. Qa Circular economy flexport Plenty Environment &) CAMBRIDGE M
Slide 78: Noto earthquake recovery aid
Noto earthquake recovery aid SoftBank Various relief efforts made for those affected by the 2024 Noto peninsula earthquake Image source : The NGO Collaboration Center for HANSHIN QUAKE Rehabilitation Finance 42 Image source : Civic Force
Slide 79: MSCI rank-up
MSCI rank-up: 2 consecutive years Achieved an 'AA' rating after consecutive upgrades over two years Earned a perfect score in the environmental assessment of CO2 emissions for two consecutive years Score progression THE USE BY SoftBank Group Corp. OF ANY MSCI ESG RESEARCH LLC OR ITS AFFILIATES (“MSC
Slide 80: Appendix
Appendix
Slide 81: SBG Credit Spread
SoftBank SBG Credit Spread rus Spread of SBG foreign currency- SBG 5-year CDS denominated senior notes 700 —USD 1.2Y —-USD 2.7Y —SBG SY CDS (JPY bps —USD 4.7Y —-USD 7.7Y PY) —EUR 0.7Y —EUR 3.2Y 450” 600 —EUR 5.7Y —EUR8.7Y 400 500 350 300 400 250 300 200 200 150 100 100 50 0 ) Dec 2022Mar 2023 Jun 20
Slide 82: Calculation of Equity Value of Holdings as of Mar 31, 2024
Calculation of Equity Value of Holdings as of Mar 31, 2024 SoftBank ¥36.9T (¥T) (unadjusted) _ Equity value of holdings _ Equity value of holdings Adjustment for (adjusted) (unadjusted) b - Payable t a rt 923M Share price amount for 1 Margin I i i © _ _ _ rgin loan: ——— O¥14.4T= | ¥25-6T shares hela
Slide 83: LTV Calculation: SBG Stand-alone Equity Value of Holdings
SoftBank LTV Calculation: SBG Stand-alone Equity Value of Holdings Group (L) Adjusted SBG stand-alone net debt ¥2.55T (V) Adjusted SBG stand-alone equity value of holdings”: Adjusted SBG stand-alone equity value of holdings SBG‘s interest in =8.4% Other investments 1.89 SVF1 +3.44 SVF2 +4.42 LatAm F
Slide 84: 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 0.01 Multiplying the number of Alibaba ADSs equivalent to the number of shares held by SBG by the Before adjustment 3.76 ADS price Sum of the outstanding maturity settlement am
Slide 85: 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 (g) T-Mobile 1.76 Value of SBG’s shareholding (92,089,766 shares as of Mar 31, 2024) (incl. the number of shares subject to call options held by Deutsche Telekom (DT): 34,971,809 shares a
Slide 86: LTV Calculation: SBG Stand-alone Net Debt
LTV Calculation: SBG Stand-alone Net Debt SoftBank (L) Adjusted SBG stand-alone net debt*! (V) Adjusted SBG stand-alone equity value of holdings Adjusted SBG Consolidated Net debt at self- Other els inet net debt financing entities adjustments 14.89 SBKK +4,53 LatAm Funds -0.003 Adjustments for hybr
Slide 87: 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 - net interest-bearing debt (before adjustment) 10.36 at self-financing entities*1 For hybrid bonds and hybrid loans with maturity dates, deduct 50% from interest-bearing debt;
Slide 88: Adjustment for Asset-backed Finance
Adjustment for Asset-backed Finance in LTV and NAV Calculation SoftBank Non-recourse asset-backed finance is deducted from debt. Value of assets required for settlement is deducted from assets. 1) Forward/Collar transactions (2) Margin loan 1 ie Alibaba SBKK, Arm Asset-backed GES finance Funding thr
Slide 89: Geographical Portfolio Diversification
Geographical Portfolio Diversification SoftBank Proportion of China decreased significantly Proportion of EMEA increased significantly due to growth of Arm’s value China finance Japan APAC (excluding China and Japan) EMEA 24% North America Mar 2022 Mar 2023 Mar 2024 (Note) Classification of regions
Slide 90: Portfolio's Core Asset Shifts from Alibaba to Arm
SoftBank Portfolio’s Core Asset Shifts from Alibaba to Arm Alibaba monetization and the rise in Arm value contributed. Geopolitical risks decreased arm Eo vtibaba Group 5 MEEPS SBKK SVF1 (68 investees) SVF2 (272 investees) 1% LatAm (89 investees) Others Mar 2021 Mar 2022 Mar 2023 Mar 2024 Proportion
Slide 91: Fixed/Floating Ratio of Interest-bearing Debt
Debt Fixed/Floating Ratio of Interest-bearing Debt SontBank No risk of surge in interest payments from short-term interest rate rise Fixed /Floating Ratio of SBG Stand-alone Interest-bearing Debt*! Floating rate; JPY*+ ¥8.1B interest payment increase with 1 ppt rise in JPY interest rate*5 Floating r
Slide 92: Breakdown by Currency
Breakdown by Currency SoftBank Investment and monetization flows are mainly in USD, while debt refinancing is principally in the same currency (— Investments and monetization > fl Debt composition \\ Cash position: ¥3.9T*! Equity value of holdings: ¥30.3T*2 Debt*?: ¥6.8T Subsidiaries Net of asset- b
Slide 93: Consolidated Interest-bearing Debt/ Cash Position/ Net Debt
Consolidated Interest-bearing Debt/ Cash Position/ Net Interest-bearing Debt Consolidated Interest-bearing Debt*1 (¥ B) Mar 2023 Jun 2023 Sep 2023 Dec 2023 Mar 2024 SBG stand-alone 12,691.7 14,083.3 14,335.8 13,765.7 14,297.5 Incl. SB Northstar - - - - - SVF1&2 and LatAm Funds 1,322.7 1,419.9 542.2
Slide 94: SoftBank
SoftBank
Slide 95: SoftBank Vision & LatAm Funds Investor Briefing
QUARTER ENDED MARCH 31, 2024 Investor Briefing SoftBank Vision & LatAm Funds NAVNEET GOVIL CFO, SB Investment Advisers & SB Global Advisers
Slide 96: 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 97: Important Information (2 of 2)
3 Important Information (2 of 2) Vision Fund 1 performance herein is based on unrealized valuations of portfolio investments. Valuations of unrealized investments are based on assumptions and factors (including, for example, as of the date of the valuation, average multiples of comparable companies,
Slide 98: VC Funding Remains Low Amid Macro Uncertainty
SVF1 SVF2 LATAM PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT SOFTBANK VISION & LATAM FUNDS: INVESTOR BRIEFING 4 VC Funding Remains Low Amid Macro Uncertainty Inflation Has Moderated, Yet History Suggests Caution Venture Capital Deal Funding Remains Subdued US CONSUMER PRICE INDEX, YoY % CHANGE1 DEC
Slide 99: FY2023 Combined Funds Performance
SVF1 SVF2 LATAM PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT SOFTBANK VISION & LATAM FUNDS: INVESTOR BRIEFING 5 FY2023 Combined Funds Performance Fiscal Year Ended March 31, 2024 FY2023 VISION & LATAM FUNDS PERFORMANCE Quarterly Fair Value Performance1 +$4.0B +$4.5B Fair Value Gain FY2023 +$0.8B +$
Slide 100: Quarterly Performance
SVF1 SVF2 LATAM PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT 6 QUARTERLY FAIR VALUE PERFORMANCE1 +$0.0B $(0.5B) $(0.0B) $(0.5B) SOFTBANK VISION & LATAM FUNDS: SVF1 SVF2 LATAM COMBINED INVESTOR BRIEFING Quarterly PUBLIC +$0.2B $(0.4B) +$0.1B $(0.1B) Performance PRIVATE $(0.1B) $(0.1B) $(0.2B) $(0.4B
Slide 101: Public Investments Overview
SVF1 SVF2 LATAM PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT SOFTBANK VISION & LATAM FUNDS: INVESTOR BRIEFING 7 Public Investments Overview Top 10 Public Investments by Fair Value | As of March 31, 2024 SVF1 SVF2 QUARTERLY FV NTM CONSENSUS CURRENT PEAK MARKET INVESTMENT FV ($B)2 CHANGE ($MM)4 REVEN
Slide 102: Private Investments Overview
SVF1 SVF2 LATAM PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT SOFTBANK VISION & LATAM FUNDS: INVESTOR BRIEFING 8 Private Investments Overview As of March 31, 2024 SVF1 SVF2 LATAM # Current Investments1 Unrealized Unrealized Unrealized $25.8B $26.0B $4.8B 382 FV2 FV2 FV2 Quarterly FV Quarterly FV Qua
Slide 103: Performance Snapshot
SVF1 SVF2 LATAM PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT 9 SoftBank SoftBank SoftBank Vision Fund 1 Vision Fund 2 LatAm Funds Combined Total Commitments1 $98.6B $59.8B $7.8B $166.2B SOFTBANK VISION & LATAM FUNDS: INVESTOR BRIEFING Acquisition Cost2 $87.8B $53.6B $7.4B $148.8B Performance Snapsh
Slide 104: ByteDance Update
SVF1 PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT SOFTBANK VISION & LATAM FUNDS: INVESTOR BRIEFING 10 ByteDance Update As of May 7, 2024 OUR OBSERVATIONS T I ME L INE O F K E Y R E GU L AT O R Y D E VE L O P ME NT S 1 Significant uncertainty remains with respect to US AUGUST SEPTEMBER JUNE MARCH AP
Slide 105: Portfolio Companies Focused on Capital Efficient Growth
SVF1 SVF2 LATAM PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT SOFTBANK VISION & LATAM FUNDS: INVESTOR BRIEFING 11 Portfolio Companies Focused on Capital Efficient Growth As of March 31, 2024 CAPITAL EFFICIENT GROWTH STRONG CASH POSITION Portfolio Companies Revenue Growth Portfolio Companies with 12+
Slide 106: M&A is Enabling Growth & Exits
SVF1 SVF2 LATAM PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT SOFTBANK VISION & LATAM FUNDS: INVESTOR BRIEFING 12 M&A is Enabling Growth & Exits As of March 31, 2024 S T R AT E GI C E X I T S M&A TRANSACTIONS TRANSACTION HIGHLIGHTS 14 1.7x + Combined Company Valued at $7B # S TR AT E GI C E X I T S
Slide 107: A Strong Pipeline for Future Listings
SVF1 SVF2 LATAM PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT SOFTBANK VISION & LATAM FUNDS: INVESTOR BRIEFING 13 A Strong Pipeline for Future Listings As of March 31, 2024 ROBUST LATE-STAGE PIPELINE Value of Late-Stage Portfolio2 $32B CURRENT FAIR VALUE, SERIES E OR LATER2 SVF1 SVF2 LATAM 50 LISTIN
Slide 108: Continued Conviction in our India Portfolio
SVF1 SVF2 PERFORMANCE UPDATE PORTFOLIO UPDATE SPOTLIGHT SOFTBANK VISION & LATAM FUNDS: INVESTOR BRIEFING 14 Continued Conviction in our India Portfolio As of March 31, 2024 KEY METRICS 23 Investments $11.7B Total Acquisition Cost 1 $13.9B Total Fair Value 2 VISION FUND COMPANIES LEAD CAPITAL SVF1 MA
Slide 109: Our Investing Principles
SVF1 SVF2 LATAM 15 Our Investing V AL UE CREATI ON Principles TOP 10 INVESTMENTS BY TOTAL FV1 Vision Conviction SVF1 2031 ION 7-10 Years of INV SVF2 2034 Patience Remaining Fund Life5 AT LATAM 2034 ES IZ TI ET N N G O M 64 # Public Listings & Strategic Exits2 $32B Late-Stage Pipeline3 $72B+ Gross Pr
Slide 110: Appendix
16 Appendix == OoftBank Investment Advisers
Slide 111: SVF1 Distributions to Limited Partners
SVF1 SOFTBANK VISION & LATAM FUNDS: INVESTOR BRIEFING 17 SVF1 Distributions to Limited Partners Since Inception to March 31, 2024 Total Distributions (A) (B) (C) (D) (E) = (B)-(C) Fund Drawn Return of Pref Coupon / 3 Outstanding 2 Commitment Capital 1 Capital Equity Gains 4 Capital Preferred Equity
Slide 112: SVF1 Contribution to SBG, Net of 3rd Party Interests
SVF1 18 SVF1 2024 Inception to Mar 31 SOFTBANK VISION & LATAM FUNDS: Fund Net Profit2 $6.5 INVESTOR BRIEFING Less: Change in 3rd Party Contribution to Interests in Fund (3.3) SBG, Net of 3rd SBG LP Income: 3.2 Share of Fund Net Profit Party Interests1,3 SBG GP Income: Amounts in USD Billions 1.2 Man
Slide 113: SVF1 Contribution to SBG
SVF1 19 SBG Paid-In Capital1 SOFTBANK VISION & LATAM FUNDS: INVESTOR BRIEFING Contribution $27.7B to SBG SBG Total Value2 As of March 31, 2024 $21.2B $30.9B Net Asset Value3 Distributions4 $9.7B Footnotes: 1. SBG Paid-In Capital represents SBG Commitment drawn down through capital calls less Return
Slide 114: SVF2 Contribution to SBG
SVF2 20 SBG Paid-In Capital1 SOFTBANK VISION & LATAM FUNDS: INVESTOR BRIEFING Contribution $55.7B to SBG SBG Total Value2 As of March 31, 2024 $26.3B $35.3B Net Asset Value3 Distributions4 $9.0B Footnotes: 1. SBG Paid-In Capital represents SBG Commitment drawn down through capital calls less Return
Slide 115: LatAm Contribution to SBG
LATAM 21 SBG Paid-In Capital1 SOFTBANK VISION & LATAM FUNDS: INVESTOR BRIEFING Contribution $7.1B to SBG SBG Total Value2 As of March 31, 2024 $5.7B $6.1B Net Asset Value3 Distributions4 $0.4B Footnotes: 1. SBG Paid-In Capital represents SBG Commitment drawn down through capital calls less Return of
Slide 116: Thank You
22 Thank You SoftBank Vision & LatAm Funds Investor Briefing Presentations Available at visionfund.com/presentations
Slide 117: Arm Holdings plc SoftBank Investor Briefing
Arm Holdings plc SoftBank Investor Briefing Jason Child, Executive Vice President and Chief Financial Officer AI-generated image May 2024 © 2024 Arm
Slide 118: Nomenclature difference between Arm and SoftBank Group
Nomenclature difference between Arm and SoftBank Group Fiscal year ending March 31, 2024 Fiscal year ending March 31, 2024 FY2023 FYE24 2 © 2024 Arm
Slide 119: Q4 FYE24: From Revenues to Profits to Cash
Q4 FYE24: From Revenues to Profits to Cash 97% 42% 69% Non-GAAP Non-GAAP Revenue Gross Margin Operating to Cash $928m $26m $902m $511m Margin Conversion License Revenue $637m $391m Royalty Revenue Revenue Non-GAAP Non-GAAP Non-GAAP Non-GAAP Non-GAAP Cost of Sales Gross Profit Operating Expenses Oper
Slide 120: Monthly Semiconductor Industry Revenue
Semiconductor industry recovered after inventory correction Semiconductor industry has recovered from the 2022 inventory correction, now seeing normal seasonality Industry demand driven by AI and consumer. Automotive and industrial electronics seeing some weakness. Q4 smartphone sales up 7.8% year o
Slide 121: All major hyperscalers and NVIDIA have built Arm-based chips
All major hyperscalers and NVIDIA have built Arm-based chips Alibaba Yitian 710 Amazon Graviton4 Google Axion 128 Neoverse-N2 cores 96 Neoverse-V2 cores Neoverse-V2 cores Armv9 based Armv9 based Armv9 based Microsoft Cobalt 100 Ampere Altra One NVIDIA Grace Blackwell 128 Neoverse-N2 cores 192 Neover
Slide 122: All major hyperscalers and NVIDIA have built Arm-based chips
All major hyperscalers and NVIDIA have built Arm-based chips Alibaba Yitian 710 Amazon Graviton4 Google Axion 50%less energy 60% less energy 60%less energy Microsoft Cobalt 100 Ampere Altra One NVIDIA Grace Blackwell 40% more performance 60% less energy 95%less energy 6 © 2024 Arm
Slide 123: Energy efficiency is a requirement if AI is to become reality
Energy efficiency is a requirement if AI is to become reality Using Arm CPUs could save >15% 126TWh 3x increase in energy used by data centers is forecasted due to AI Today 2030 7 © 2024 Arm Sources: Boston Consulting Group (BCG)
Slide 124: Guidance
Guidance Arm has good visibility of its licensing pipeline although timing, deal size, etc. can change Royalty revenue can be influenced by industry wide trends, inventory corrections, changes in market share, changes in chip ASPs, and changes to Arm’s royalty rate. Q1 FYE 25 FYE 25 Revenue $875m -
Slide 125: To be replaced
To be replaced 9 © 2024 Arm
Slide 126: SoftBank
SoftBank