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1、A N N U A L R E P O R T 2 0 2 3SoftBank Group ReportDisclaimersThis Annual Report provides relevant information about SoftBank Group Corp.(“SBG”)and its subsidiaries(including together with SBG,the“Company”)and its affiliates(together with the Company,the“Group”)and does not constitute or form any s
2、olicitation of investment including any offer to buy or subscribe for any securities in any jurisdiction.In addition,this Annual Report does not constitute an offer to sell,or a solicitation of an offer to buy,any securities of Arm Limited.Any offers to sell,solicitations of offers to buy,or sales o
3、f securities will be made in accordance with the registration requirements of the U.S.Securities Act of 1933,as amended,and other applicable securities laws.This Annual Report contains forward-looking statements,beliefs or opinions regarding the Group,such as statements about the Groups future busin
4、ess,future position and results of operations,including estimates,forecasts,targets and plans for the Group.Without limitation,forward-looking statements often include the words such as“targets,”“plans,”“believes,”“hopes,”“continues,”“expects,”“aims,”“intends,”“will,”“may,”“should,”“would,”“could,”“
5、anticipates,”“estimates,”“projects”or words or terms of similar substance or the negative thereof.Any forward-looking statements in this Annual Report are based on the current assumptions and beliefs of the Group in light of the information currently available to it as of the date hereof.Such forwar
6、d-looking statements do not represent any guarantee by any member of the Group or its management of future performance and involve known and unknown risks,uncertainties and other factors,including but not limited to,the success of the Groups business model;the Groups ability to procure funding and t
7、he effect of its funding arrangements;key person risks relating to the management team of SBG;risks relating to and affecting the Groups investment activities;risks relating to SB Fund(defined as below),its investments,investors and investees;risks relating to SoftBank Corp.and the success of its bu
8、siness;risks relating to law,regulation and regulatory regimes;risks relating to intellectual property;litigation;and other factors,any of which may cause the Groups actual results,performance,achievements or financial position to be materially different from any future results,performance,achieveme
9、nts or financial position expressed or implied by such forward-looking statements.For more information on these and other factors which may affect the Groups results,performance,achievements or financial position,see“Risk Factors”on SBGs website at https:/group.softbank/en/ir/investors/management_po
10、licy/risk_factor.None of the Group nor its management gives any assurances that the expectations expressed in these forward-looking statements will turn out to be correct,and actual results,performance,achievements or financial position could materially differ from expectations.Persons viewing this
11、Annual Report should not place undue reliance on forward-looking statements.The Company undertakes no obligation to update any of the forward-looking statements contained in this Annual Report or any other forward-looking statements the Company may make.Past performance is not an indicator of future
12、 results,and the results of the Group in this Annual Report may not be indicative of,and are not an estimate,forecast or projection of,the Groups future results.The Company does not guarantee the accuracy or completeness of information in this Annual Report regarding companies(including,but not limi
13、ted to,those in which SB Funds have invested)other than the Group which has been quoted from public and other sources.Regarding TrademarksNames of companies,products and services that appear in this Annual Report are trademarks or registered trademarks of their respective companies.“Co.,Ltd.,”“Ltd.,
14、”“Corporation”and“Inc.”have been omitted from company names except in certain circumstances.Important Notice Trading of SBG Common Stock,Disclaimer Regarding Unsponsored American Depository ReceiptsSBG encourages anyone interested in buying or selling its common stock to do so on the Tokyo Stock Exc
15、hange,which is where its common stock is listed and primarily trades.SBGs disclosures are not intended to facilitate trades in,and should not be relied on for decisions to trade,unsponsored American Depository Receipts(“ADRs”).SBG has not and does not participate in,support,encourage or otherwise co
16、nsent to the creation of any unsponsored ADR programs or the issuance or trading of any ADRs issued thereunder in respect of its common stock.SBG does not represent to any ADR holder,bank or depositary institution,nor should any such person or entity form the belief,that(i)SBG has any reporting obli
17、gations within the meaning of the U.S.Securities Exchange Act of 1934(“Exchange Act”)or(ii)SBGs website will contain on an ongoing basis all information necessary for SBG to maintain an exemption from registering its common stock under the Exchange Act pursuant to Rule 12g3-2(b)thereunder.To the max
18、imum extent permitted by applicable law,SBG and the Group disclaim any responsibility or liability to ADR holders,banks,depositary institutions,or any other entities or individuals in connection with any unsponsored ADRs representing its common stock.The above disclaimers apply with equal force to t
19、he securities of any of the Group which are or may in the future be the subject of unsponsored ADR programs,such as SoftBank Corp.or Z Holdings Corporation.Notice Regarding Fund Information Contained in This Annual ReportThis Annual Report is furnished to you for informational purposes and is not,an
20、d may not be relied on in any manner as,legal,tax,investment,accounting or other advice or as an offer to sell or a solicitation of an offer to buy limited partnership or comparable limited liability equity interests in any fund managed by a subsidiary of SBG,including SB Global Advisers Limited(“SB
21、GA”),SB Investment Advisers(UK)Limited(“SBIA”)and any of their respective affiliates thereof(collectively,the“SB Fund Managers”and each an“SB Fund Manager”)(such funds together with,as the context may require,any parallel fund,feeder fund,co-investment vehicle or alternative investment vehicle colle
22、ctively,the“SB Funds”and each an“SB Fund”).For the avoidance of doubt,the SB Funds include,among other funds,SoftBank Vision Fund L.P.(together with,as the context may require,any parallel fund,feeder fund,co-investment vehicle or alternative investment vehicle,the“Vision Fund I”),which are managed
23、by SBIA and its affiliates;SoftBank Vision Fund II-2 L.P.(together with,as the context may require,any parallel fund,feeder fund,co-investment vehicle or alternative investment vehicle,the“Vision Fund II”),which are managed by SBGA and its affiliates;and SBLA Latin America Fund LLC(together with,as
24、the context may require,any parallel fund,feeder fund,co-investment vehicle or alternative investment vehicle,the“SoftBank Latin America Fund”),which are managed by SBGA and its affiliates.None of the SB Funds(including the Vision Fund I,Vision Fund II and SoftBank Latin America Fund),the SB Fund Ma
25、nagers,any successor or future fund managed by an SB Fund Manager,SBG or their respective affiliates makes any representation or warranty,express or implied,as to the accuracy or completeness of the information contained herein and nothing contained herein should be relied upon as a promise or repre
26、sentation as to past or future performance of the SB Funds or any other entity referenced in this presentation,or future performance of any successor or the future fund managed by an SB Fund Manager.Information relating to the performance of the SB Funds or any other entity referenced in this Annual
27、 Report has been included for background purposes only and should not be considered an indication of the future performance of the relevant SB Fund,any other entity referenced in this Annual Report or any future fund managed by an SB Fund Manager.References to any specific investments of an SB Fund,
28、to the extent included therein,are presented to illustrate the relevant SB Fund Managers investment process and operating philosophy only and should not be construed as a recommendation of any particular investment or security.The performance of individual investments of an SB Fund may vary,and the
29、performance of the selected transactions is not necessarily indicative of the performance of all of the applicable prior investments.The specific investments identified and described in this Annual Report do not represent all of the investments made by the relevant SB Fund Manager,and no assumption
30、should be made that investments identified and discussed therein were or will be profitable.The performance of an SB Fund in this Annual Report is based on unrealized valuations of portfolio investments.Valuations of unrealized investments are based on assumptions and factors(including,for example,a
31、s of the date of the valuation,average multiples of comparable companies,and other considerations)that the relevant SB Fund Manager believes are reasonable under the circumstances relating to each particular investment.However,there can be no assurance that unrealized investments will be realized at
32、 the valuations indicated in this Annual Report or used to calculate the returns contained therein,and transaction costs connected with such realizations remain unknown and,therefore,are not factored into such calculations.Estimates of unrealized value are subject to numerous variables that change o
33、ver time.The actual realized returns on the relevant SB Funds unrealized investments will depend on,among other factors,future operating results,the value of the assets and market conditions at the time of disposition,any related transaction costs and the timing and manner of sale,all of which may d
34、iffer from the assumptions and circumstances on which the relevant SB Fund Managers valuations are based.Past performance is not necessarily indicative of future results.The performance of an SB Fund or any future fund managed by an SB Fund Manager may be materially lower than the performance inform
35、ation presented in this Annual Report.There can be no assurance that each SB Fund or any future fund managed by the relevant SB Fund Manager will achieve comparable results as those presented therein.The actual realized return on unrealized investments by an SB Fund may differ materially from the pe
36、rformance information indicated in this Annual Report.No assumption should be made that investments identified and discussed in this Annual Report were or will be profitable,or that investments made in the future will be comparable in quality or performance to the investments described therein.Third
37、-party logos and vendor information included in this Annual Report are provided for illustrative purposes only.Inclusion of such logos does not imply affiliation with or endorsement by such firms or businesses.There is no guarantee that an SB Fund Manager,an SB Funds portfolio companies,any future p
38、ortfolio companies of a future fund managed by an SB Fund Manager or SBG will work with any of the firms or businesses whose logos are included in this Annual Report in the future.SBGA and SBIA manage separate and independent operations and processes from each other and those of SBG in the managemen
39、t of Vision Fund I,Vision Fund II and SoftBank Latin America Fund,respectively.Any SB Funds managed by SBGA or SBIA are solely managed by SBGA or SBIA respectively.For consolidated financial statements and notes,see“Financial Report 2023”on our website.Table of Contents 111 Major Subsidiaries and As
40、sociates 114 Stock Information 115 Corporate Data111 Corporate Information 12 Message from Our CEO 16 Message from Our CFOCompany NamesCompany names and abbreviations used in this Annual Report,unless otherwise stated or interpreted differently in the context,are as follows.Company names and abbrevi
41、ationsDefinitionSoftBank Group Corp.or SBGSoftBank Group Corp.(stand-alone basis)The CompanySoftBank Group Corp.and its subsidiariesThe GroupSoftbank Group Corp.,its subsidiaries and associatesSB Northstar or asset management subsidiariesSB Northstar LPSoftBank Vision Fund 1 or SVF1SoftBank Vision F
42、und L.P.and its alternative investment vehiclesSoftBank Vision Fund 2 or SVF2SoftBank Vision Fund II-2 L.P.SoftBank Latin America Funds or LatAm FundsSBLA Latin America Fund LLCSoftBank Vision Funds or SVFSVF1,SVF2,and LatAm FundsSBIASB Investment Advisers(UK)LimitedSBGASB Global Advisers LimitedArm
43、Arm LimitedAlibabaAlibaba Group Holding LimitedSoftBankSoftBank Corp.SprintSprint CorporationT-MobileT-Mobile US,Inc.Adoption of IFRSsThe Company has prepared the consolidated financial statements in accordance with the International Financial Reporting Standards(IFRS)from the three-month period end
44、ed June 30,2013(the first quarter of the fiscal year ended March 31,2014).The date of transition to IFRS was April 1,2012.The financial data for the year ended March 31,2013,has also been presented based on IFRS.Definition of Terms“Fiscal 2022”refers to the fiscal year ended March 31,2023,and other
45、fiscal years are referred to in a corresponding manner in this Annual Report.“FYE”denotes the fiscal year-end.For example,“FYE2022”denotes March 31,2023,the last day of fiscal 2022.Notice Regarding PFIC StatusSee“IR Disclaimers”on our website for details.2 Who We Are 2 Our Unchanging 志 Kokorozashi(M
46、ission),Ever-Changing Areas of Investment Information RevolutionHappiness for Everyone 4 Our Vision for a Better World 6 A Business Model with Three Inputs 8 Our 志 Kokorozashi(Mission)is Consistent Our Investment Areas Continue to Evolve 10 SoftBanks Next 30-Year Vision:A Story of Value Creation20 G
47、rowth Assets 20 NAV(Net Asset Value)<V(Loan to Value)22 Message from SoftBank Vision Funds Management 25 SoftBank Vision Funds In Focus 30 Message from Arm CEO32 Foundation for Our Growth 32 Our Sustainability 36 Sustainability:Environment 40 Sustainability:Social 44 Sustainability:Governance 56 M
48、essage from External Board Director 58 Compliance 60 Risk Management 61 Message from Our Chief Risk Officer(CRO)62 Risk Factors 69 Calculation of Equity Value of Holdings and Net Debt70 Financial Section 71 Graphs:Key Consolidated Financial Data 72 Eleven-Year Key Consolidated Financial Data 74 NAV&
49、LTV 75 Managements Discussion and Analysis of Results of Operations,Financial Position,and Cash Flows SoftBank Group Report 20231Financial SectionCorporate InformationFoundation for Our GrowthGrowth AssetsMessage from Our CEOMessage from Our CFOTable of ContentsWho We AreInformation RevolutionHappin
50、ess for everyoneSBG has always remained true to its goal of making the world a happier place through the Information Revolution.Just what is happiness?Some might say happiness is to love and be loved in return,or to make the most of each day.Others might derive happiness from self-expression.Still o
51、thers might find happiness in something as simple as a smile.Above all,SBG equates happiness with inspiration.Through our business,we strive to bring emotional meaning and happiness to lives.In everything we do,we aim to drive the Information Revolution and build a more connected,empowered,and joyfu
52、l world.This unchanging kokorozashi(mission)is encapsulated in our philosophy,Information RevolutionHappiness for everyone.Humankind stands on the cusp of the digital Big Bang.Computing performance is increasing dramatically,and we are getting ever closer to an age of super-intelligent machines that
53、 will surpass the human brain.Our mission is to harness the raw,unlimited power of the Information Revolution and channel it in a direction that makes people happier.This aspiration will continue to drive our organization toward further growth for many years to come.Information RevolutionHappiness f
54、or EveryoneOur Unchanging 志 Kokorozashi(Mission),Ever-Changing Areas of Investment SoftBank Group Report 20232Financial SectionCorporate InformationTable of ContentsFoundation for Our GrowthGrowth AssetsMessage from Our CFOMessage from Our CEOWho We AreImagine a group of visionaries who share the sa
55、me unshakable spirit(kokorozashi).They act with one mind to achieve their ideals,braving all dangers to usher in a new era amid upheaval.SBG draws inspiration from one such groupthe Kaientai,an enterprising shipping company founded in 1865 by the visionary Sakamoto Ryoma.Supplied with the best intel
56、ligence and possessing abundant knowledge and wisdom,the Kaientai and its founder rejected age-worn feudalistic values in favor of free thinking and bold action.In this way,they led a revolution that resulted in the modernization of Japan.Our corporate logo derives from the Kaientais flag.It represe
57、nts our admiration for,and belief in,the Kaientais single-minded pursuit of their vision,which imagined a Japan 100 years in the future.SBG is a fleet of similar visionaries.Our vessels fly the banner of the 21st-century Kaientai,symbolizing our own single-minded pursuit of a vision:Information Revo
58、lutionHappiness for everyone.A two-line designthe banner of the Information Revolution that SBG hoists as we sail toward a new dawnKaientai bannerSoftBank Brand Symbol SoftBank Group Report 20233Financial SectionCorporate InformationFoundation for Our GrowthGrowth AssetsMessage from Our CEOTable of
59、ContentsWho We AreMessage from Our CFOTo realize our core philosophy and vision,we invest in the Information Revolution.The Information Revolution has entered a new stage with the use of AI.AI has the potential to create a safer,more prosperous,and all-round better future by addressing social and en
60、vironmental challenges,including climate change,the education gap,and economic inequality.SBG accelerates the Information Revolution,and in this role we are helping to realize the world we have always envisaged since our foundation.Our Vision for a Better WorldHelp shape the next 300 years for futur
61、e generations and for the planet SoftBank Group Report 2023Financial SectionCorporate InformationFoundation for Our GrowthGrowth AssetsMessage from Our CEOMessage from Our CFOTable of ContentsWho We Are4Autonomous driving for safer roadsMore creativity at workImagine a world of seamless commerce whe
62、re business transactions defy borders,a world of universal connectivity where all can access online content.Imagine a world of self-driving cars that travel to the destination without human input,a world where self-driving technology prevents road accidents by sensing blind spots and monitoring haza
63、rdous situations,enabling anyone to go from A to B with peace of mind.Imagine a world where all children can access a better education regardless of where they were born and raised,a world where remote learning programs are available everywhere,offering quality education to all.Imagine a world where
64、 workplaces are more humancentric and full of authentic,life-affirming experiences,a world where AI automates mundane and monotonous tasks,freeing up time for more creative pursuits.Imagine a world where technological innovation makes renewable and clean energy ubiquitous,a world where we have the t
65、echnology to reverse climate change and safeguard biodiversity.Imagine a world where we can predict and prevent any disease using AI-driven genetic data analysis,a world where AI accelerates the search for drug candidates,enabling early treatment.Remote learning for educational equalityUsing AI to c
66、ure deadly diseasesAn enriched life for allTechnological solutions to environmental issues SoftBank Group Report 20235Financial SectionCorporate InformationFoundation for Our GrowthGrowth AssetsMessage from Our CEOMessage from Our CFOTable of ContentsWho We AreBusiness ModelSBG describes itself as a
67、 Vision Capitalist for the Information Revolution.What exactly does this mean?It means providing capital to unicorns that will contribute to the Information Revolution and a happy future for all.Our unicorn partners have innovative ideas for truly world-changing goods and services.These ideas can so
68、lve social issues and make people happier.By providing them with capital,we accelerate their business growth and unleash the potential of our core philosophy and vision:Information RevolutionHappiness for everyone.SBG=A strategic investment holding companyCluster of No.1 strategyThree inputs that de
69、liver sustainable growthOur Cluster of No.1 strategy is designed to build a strategically synergized ecosystem of companies.The strategy envisages this group as a symbiotic ecosystem of companies with industry-leading technologies and business models.In this ecosystem,we work with visionary entrepre
70、neurs who pioneer new industries.Although we help these business leaders in their decision-making,we respect their autonomy and do not find it necessary to hold a majority stake in their companies.However,we do encourage our members to identify with our core philosophy and vision and to work with us
71、 in unlocking synergistic growth.Under this strategy,we have developed an ecosystem of entrepreneurial leaders in AI.These include nearly 500 portfolio companies within the SoftBank Vision Funds and other funds.They also include companies in which we have invested directly.Arm is one such company.Wh
72、en a company invests capital into business activities,the resulting value is expected to exceed the initial capital commitment.The company will then reinvest that capital for an even higher return.When this cycle occurs on an ever greater scale,capital will keep accumulating,generating sustainable g
73、rowth.We have three key sources of capital:an ecosystem of portfolio companies,financial capital,and human capital.This capital is both an input and an output.In implementing our business model,we“input”capital,and this capital is then“output”back to us in an amount larger than the initial input.A B
74、usiness Model with Three InputsSBG is a Strategic Investment Holding Company Driving the Information RevolutionBuilding an ecosystem of industry-leading businesses aiming to grow for the next 300 years SoftBank Group Report 20236Financial SectionCorporate InformationFoundation for Our GrowthGrowth A
75、ssetsMessage from Our CEOMessage from Our CFOTable of ContentsWho We AreThis input is the ecosystem we have developed in line with our Cluster of No.1 strategy.This ecosystem includes nearly 500 portfolio companies,subsidiaries such as Arm,and Group companies.Members of this ecosystem pursue growth
76、independently,but in doing so they produce a stream of innovation and unleash synergies that enable the ecosystem to grow as one.This input refers to the financial assets that fund our investments.We aim to grow our financial assets over the medium-to long-term,gaining high returns on investments an
77、d then reinvesting the profits.We measure the growth of our financial capital using Net Asset Value(NAV).*Our NAV has grown over the medium-to long-term in line with our investments and other activities.We aim to grow it even bigger.Financial capitalHuman capitalWe aim for sustainable growth by perp
78、etuating and accumulating our three capital inputs.123Ecosystem of portfolio companies*NAV=Equity value of holdings Net debtSee page 20 for details of NAV.This input is our talent.It includes our investment professionals who identify attractive investment opportunities.It also includes finance and a
79、ccounting staff,legal and compliance experts,and many other employees who support our activities.Our human capital grows as our diverse pool of employees pursue their own professional development while increasingly aligning themselves with our unique company culture,which emphasizes decisiveness and
80、 dedication.SoftBank Group Report 20237Financial SectionCorporate InformationFoundation for Our GrowthGrowth AssetsMessage from Our CEOMessage from Our CFOTable of ContentsWho We AreOur 志 Kokorozashi(Mission)is Consistent Our Investment Areas Continue to EvolveOur historyBroadbandInternetPC Software
81、1981Founded as a distributor of packaged software for PCs1982Launched a publishing business2004Acquired JAPAN TELECOM and entered fixed-line telecommunications2006Acquired Vodafone K.K.and entered mobile telecommunications in Japan2001Launched Yahoo!BB broadband service2000Invested in Alibaba1994Fou
82、nded SoftBank Holdings Inc.in the U.S.for the purpose of strategic investment in Internet companiesMobile1996Launched Yahoo!JAPAN80S80S80S90S80S00S SoftBank Group Report 20238Financial SectionCorporate InformationFoundation for Our GrowthGrowth AssetsMessage from Our CEOMessage from Our CFOTable of
83、ContentsWho We AreOur story begins in 1981,when Masayoshi Son founded SOFTBANK Japan.He envisaged the company as a“software bank”that would build infrastructure for the information-driven society.At the time,PC software led the Information Revolution,but the focus shifted to the Internet,later to br
84、oadband,and then to smartphones.We have always stood on the frontlines of such shifts.Adjusting swiftly to market or industry changes,we have always partnered with the paradigm-defining companies of the time and redeployed capital into new investment areas.The Information Revolution has now entered
85、another new phase,with AI completely redefining every industry.We invest in AI businesses with world-changing ideas.The aim of such investments is to accelerate groundbreaking technological innovations that can build a more connected,empowered,and joyful world.Believing that the next few decades of
86、AI innovation will surpass all the technological progress of the last three centuries,we work with entrepreneurs around the world who share our aspiration to forge this exciting future.2010Announced SoftBanks Next 30-Year Vision2013Acquired U.S.-based carrier Sprint2020Sprint and T-Mobile merged2016
87、Acquired U.K.chip designer Arm2017Launched SVF12019Launched SVF2Data and AI80S10S80S20S SoftBank Group Report 20239Financial SectionCorporate InformationFoundation for Our GrowthGrowth AssetsMessage from Our CFOTable of ContentsMessage from Our CEOWho We AreSustainable development is an imperative f
88、or businesses.Companies are expected not to just make short-term profits but also to create social value for stakeholders.In 2010,we unveiled SoftBanks Next 30-Year Vision,which looks 100 years into the future.Five years later,the UN adopted the 17 Sustainable Development Goals.Thus,even before the
89、sustainable development agenda took off,we already had our own sustainability-focused philosophy and vision.We were also already integrating this philosophy and vision into our strategy and business model.Announcement of SoftBanks Next 30-Year Vision(2010)SoftBanks Next 30-Year Vision:A Story of Val
90、ue Creation10Financial SectionCorporate InformationFoundation for Our GrowthGrowth AssetsMessage from Our CEOMessage from Our CFOTable of ContentsWho We Are SoftBank Group Report 2023Ecosystem of portfolio companiesThe world in 30 yearsFinancial capitalFinancial outcomesManaging global risksHuman ca
91、pitalBuild an ecosystem of companies with industry-leading technologies and business modelsTechnological innovationsMore happiness,less sadnessA diverse funding toolboxContinued growth in Net Asset Value(NAV)The next 300 years for future generations and for the planetProfessionalism and a unique com
92、pany cultureStrategyStrategic synergy groupVisionTo become the worlds most essential corporate groupCore philosophyInformation RevolutionHappiness for everyoneFinancial SectionCorporate InformationFoundation for Our GrowthGrowth AssetsMessage from Our CFOMessage from Our CEOWho We AreTable of Conten
93、ts SoftBank Group Report 202311In autumn 2022,there was a moment when I started to wonder how many years I had left in my entrepreneurial journey.At times,these thoughts left me feeling somewhat empty.I realized that I did not want to spend the rest of my life as an entrepreneur carrying out tasks s
94、olely driven by a sense of obligation.When I asked myself what I most wanted to achieve,I came to re-realize my greatest ambition in life:to be an architect in support of the future of humanity.Even if I could play only a minor role in that capacity and if I stumbled along the way,I know this pursui
95、t would still be the noblest and most exhilarating.From that day on,I have contemplated the future of humanity,and how we ensure that future generations do not face hardships and instead live in a prosperous society.Going on the Offensive to Lead the Information RevolutionMessage from Our CEOAn arch
96、itect supporting the future of humanityFinancial SectionCorporate InformationFoundation for Our GrowthGrowth AssetsMessage from Our CEOMessage from Our CFOTable of ContentsWho We Are SoftBank Group Report 202312screening process,the top 11 ideas were presented to Dr.Yutaka Matsuo,a leading AI resear
97、cher and external director of SBG,and myself.We were delighted to find that many of the ideas exhibited excellence and some of them even had substantial business potential.If you look at AI in the context of the history of computing,I believe that AI is about to take computing to its next evolutiona
98、ry stage.Early computers were machines that could perform basic calculations.Computers then evolved into storage machines,capable of storing all kinds of information.The next phase saw computers become search engines,with people using Yahoo!and Google to swiftly search and retrieve this stored infor
99、mation.Now,with the advent of AI,computers have developed the ability to reason and infer.I myself challenge the limits of conventional wisdom every day in my interactions with GPT-4,and I feel that AI has limitless potential as an inferencing machine.Computers will continue to evolve.In their next
100、iteration,they will further enhance their capability to create.Many people think that the creative arts are the sole preserve of humans,but AI has already made inroads into this field.AI can now paint pictures,produce films,and create melodies and lyrics.It can even compose poetry and Back when I wa
101、s a 19 year-old student in the U.S.,I came up with nearly 250 inventions in a single year.During that period,the right side of my brainthe side that controls creativitywas remarkably active.In contrast,in the 42 years since I founded SBG,I have primarily relied on my left brains logical and analytic
102、al skills to manage the business.However,the turn of events in autumn 2022 reminded me of my lifes greatest ambition and reignited the right hemisphere of my brain.As a result,I have come up with approximately 630 inventions in the eight months since.Right now,I am working hard on inventions at the
103、core of how artificial intelligence(AI)will impact the future of humanity.Often,an idea will come to me in my sleep,and I will jump out of bed,scribble it down in my inventions notebook,take a picture of the page,and send it to my team.At this rate,I could rack up a thousand ideas in a year.Sure,mos
104、t of them will turn out to be duds.However,I firmly believe some of them will be real gems that could have a positive impact for future generations.Last year,I passed on more of the day-to-day running of the company,including the quarterly earnings calls,to my management team led by our CFO.This was
105、 to dedicate more time to unlocking my creativity to focus on strategizing for the future,not just for the company,but for all of humanity.Right now,nothing on Earth is more intelligent than the human brain.However,that is poised to change.Within create stories.The actions of learning,retaining,and
106、retrieving information involve knowledge.By contrast,reasoning or creating something original is a matter of intelligence.While humans can never claim to reason or create based on limitless knowledge,AI can make this claim,and it will never stop evolving.The superior ability of AI over humans will b
107、e a matter of debate for only another few years.I expect AI intelligence to eventually reach at least 10,000 times the sum of human intelligence.I believe this scenario is only a few decades away.When that day comes,AI will become superintelligent,linking all social systems together.AI will also hav
108、e begun to independently evolve and grow,continually designing and refining its own processing capabilities across an ever-broadening spectrum of use cases,such as robotics.It will reach an advanced level of intelligence and capabilities surpassing the limits of human comprehension.This superintelli
109、gent AI could solve many of the intractable problems we could never hope to deal with ourselves.It could,for example,develop accident-free and comfortable transportation solutions,increase our healthy life expectancy,and bolster social resilience against natural disasters.Data from IoT devices,inclu
110、ding thermometers,humidity meters,traffic lights,light bulbs,and sensors,will be analyzable by AI in real time,expediting the evolution of AI.With its integration into IoT the next decade,we will reach Singularity,meaning that AIs capabilities will surpass the collective intelligence of humans.We ar
111、e determined to position ourselves at the forefront of this AI revolutionthe Information Revolution.I believe this will ultimately lead to a substantial growth in our Groups profits.In November 2022,OpenAI,led by Sam Altman,spectacularly debuted ChatGPT,a form of generative AI.In just its first two
112、months,it attracted 100 million users worldwide.GPT-4 was released in March 2023,introducing multimodal capability.Unlike its predecessors,it processes multiple input simultaneously,including text,audio,image,and video inputs.While GPT-3.5 fell short of passing a college entrance exam,GPT-4 successf
113、ully passed the U.S.bar exam,with a grade roughly equivalent to the top 10%of applicants.It is no wonder then,why we as a Group have been working to harness the power of generative AI.In May and June 2023,we held a competition open to employees across the Group,inviting them to come up with ideas fo
114、r leveraging generative AI.The aim was to improve productivity,create new businesses,and address various social challenges.Over the course of a 10-day submission period,approximately 52,000 suggestions were collected.Following a pre-Beyond the boundaries of wisdom with GPT-4 AI continues to evolve t
115、owards superintelligenceFinancial SectionCorporate InformationFoundation for Our GrowthGrowth AssetsMessage from Our CEOMessage from Our CFOTable of ContentsWho We Are SoftBank Group Report 202313Emergence of humansAgricultural RevolutionIndustrial RevolutionTodayEvolution speed(illustrative)Emergen
116、ce of superhumansAIEvolution of computingSearchMemorizeCalculateInferCreatedevices,superintelligent AI has the potential to swiftly and accurately identify and warn of disasters,facilitating timely and secure evacuation alerts.This superintelligent AI will ensure that everyones basic needs like food
117、,clothing,and shelter could be readily and affordably fulfilled,and will protect us from disease and disaster.It will soon be with us.Most of the 630 invention ideas I mentioned earlier were on this subject.An invention is something that has never existed before,something that no one has ever seen,h
118、eard,or felt.Inventions happen when you imagine something that does not yet exist and then give it shape.I believe that my inventions can help accelerate AIs evolution and thereby pave the way for a more abundant and joyful world,with less suffering and greater happiness.I am fully aware of the risk
119、s involved,of course.If abused,unconstrained AI could have devastating consequences.That is precisely why the world needs to discuss regulation to prevent such abuse,so that the right rules are in place.That said,it would be unfortunate if an excessive fear of risk were to lead to over-regulation.We
120、 should boldly facilitate progress in AI while making the necessary calibrations and adjustments.Through this evolutionary journey,we have the opportunity to imbue AI with the capability of reasoning.By doing so,we can ensure the safe operation of AI and its exclusive use for peaceful endeavors.Arm
121、plays a crucial role at the very center of the evolution of AI.As of December 31,2022,a total of 258 billion chips based on Arm technology had been shipped.The growth of Arm-based chip shipments has continued as Arm-based chips are used in all kinds of devices.Following our acquisition of Arm in 201
122、6,we doubled the number of its engineers.While the decision incurred significant upfront costs for Arm,it has proven to be highly rewarding as it drove a period of rapid growth.Since our acquisition,Arm not only has maintained an impressive leadership position in the smartphone chip marketbut has al
123、so set its sight on broader horizons.With continuous advancements in CPUs and GPUs driving the computing landscape,we have witnessed Arm chips embedded in all kinds of devices,including a single integrated AI chip.I believe that Arm has continued room for growth in the years to come.The SoftBank Vis
124、ion Funds will also contribute to the evolution of AI.From the beginning,our investment decisions have prioritized AI,considering factors such as whether the prospective investments are AI-based or whether their application is the most suitable for leveraging AI.True,not all of these investments hav
125、e been successful.However,within the nearly 500 portfolio companies,there are some very impressive Arm has benefited from the growth in computingInformation RevolutionFinancial SectionCorporate InformationFoundation for Our GrowthGrowth AssetsMessage from Our CEOMessage from Our CFOTable of Contents
126、Who We Are SoftBank Group Report 202314asleep,my head is filled with ideas,sparking one action after another.It is thrilling.A few years ago,I thought about handing over to a successor.But in all honesty,I am enjoying the work so much that I am not yet willing to relinquish the reins.What is the Inf
127、ormation Revolution about?It is a revolution to empower happiness for everyone.That is where I am devoting my efforts,and I sincerely hope I can rely on your continued panies where AI will play a crucial role in disrupting existing industries and creating new ones.We believe these companies will als
128、o play a central role in the evolution of AI and the future success of our Group.AIespecially superintelligent AIwill undoubtedly be at the core of the Information Revolution.If you think of a computer as nothing more than a calculating,storing,and retrieving machine,then I encourage you to think ag
129、ain.Superintelligent AI will go beyond the realm of knowledge into the world of creative intelligence,helping us build a richer,happier,and brighter future.As such,the time has come for our Group to go on the offensive.We could not be more ready.In fiscal 2022,we took a defensive stance by monetizin
130、g assets and massively curtailing investments.As a result,as of March 31,2023,our cash position*1 topped 5 trillion,while our LTV*2(loan-to-value:adjusted net interest-bearing debt divided by the equity value of investments)stood at 11%.In other words,we now have the solid financial footing we need
131、to play offense.Fiscal 2023 will be critical.Weekdays and weekends,awake and Empowering happiness through the Information Revolution*1 Cash and cash equivalents+short-term investments recorded as current assets+undrawn commitment lines.SBG stand-alone basis.Excludes SB Northstar*2 See page 21 for de
132、tails.Masayoshi SonRepresentative Director,Corporate Officer,Chairman&CEOFinancial SectionCorporate InformationFoundation for Our GrowthGrowth AssetsMessage from Our CEOMessage from Our CFOTable of ContentsWho We Are SoftBank Group Report 202315In the SoftBank Group Report 2022,I reiterated our comm
133、itment to stand firm on our financial policy even in the face of volatile circumstances,as well as our primary focus for the time being to implement a prudent financial management approach of steadfast defense.Reflecting on the past year,we encountered continued turbulence,marked by significant geop
134、olitical risks in Russia and China that showed no sign of abating,and interest rates continued to rise in both the U.S.and Europe.The latter half of the year brought other unexpected events such as the collapse of Silicon Valley Bank,fueling concerns of another financial crisis.Throughout these adve
135、rsities,we played all-out defenserestricting investments and rigorously monetizing assetsto ensure our unwavering financial stability.We believe our steadfastness was well received and supported by our stakeholders.While we fortified our defense,we continued to devise strategies under the leadership
136、 of Mr.Son,our Representative Director,Corporate Officer,Chairman&CEO.The dynamics of the Information Revolution differ greatly from those of the financial markets.Currently,we are witnessing remarkable advancements in the development of revolutionary technologies,such as generative AI represented b
137、y ChatGPT.Personally,I feel a similar sense of excitement and opportunity as I did during the emergence of the internet in the 1990s.At SBG,we define ourselves as a lifestyle company aiming to improve lives through the Information Revolution.We believe that now is the time to demonstrate foresight a
138、nd take bold steps forward in our management approach.While we remain mindful of the market environment and continue to exercise A new phase of the Information Revolution Leveraging a Solid Financial Base for Both Defense and Offense Message from Our CFOBoard Director,Corporate Officer,Senior Vice P
139、resident,CFO&CISOHead of Finance Unit,Head of Administration UnitYoshimitsu Goto*CISO:Chief Information Security OfficerFinancial SectionCorporate InformationFoundation for Our GrowthGrowth AssetsMessage from Our CEOMessage from Our CFOTable of ContentsWho We Are16 SoftBank Group Report 2023prudent
140、judgement,we also plan to resume necessary investments.With unwavering confidence in our financial stability established through our defensive strategy in fiscal 2022,we are well-positioned to transition into a balanced defense-offense approach in fiscal 2023.I sincerely hope that our stakeholders s
141、hare my excitement about the developments and progress that the coming year will bring.improved by 9.4 percentage points year on year to a safer level of 11.0%.However,our NAV declined to 14.1 trillion,down 4.4 trillion from a year ago.This decrease primarily resulted from a decline in the value of
142、our assets caused by a downturn in the stock market.Throughout the years,we have managed our business with a clear focus on offense and defense phases.In this respect,I take great pride in the solid financial performance of our defensive strategy in fiscal 2022.In summarizing fiscal 2022,I am please
143、d to highlight our significant accomplishments in bolstering defensive capabilities,both through continuous monetization and by curbing new investments.This is evident in our key financial figures as of March 31,2023.Net debt*1 was 1.7 trillion(down 3.0 trillion yoy),cash position*2 was 5.1 trillion
144、(up 2.3 trillion yoy),and LTV,one of our key indicators,On the asset monetization front,in order to maintain a balanced and secure investment portfolio,we have strategically reduced our exposure to Chinese equities,which have a significantly higher country risk.In fiscal 2022,this was demonstrated b
145、y the reduction of Translated to yen using the average rate for each quarterMonetization:$1.8 billion distributions from SVF1,$0.5 billion distributions from SVF2,$0.1 billion distributions from LatAm Funds,$0.9 billion return of funds from SB Northstar,$35.5 billion raised through prepaid forward c
146、ontracts using Alibaba shares,$0.5 billion raised through asset-backed financing using Arm shares,$2.4 billion sale of T-Mobile shares,$0.7 billion sale of SoFi Technologies sharesSVF investments:$3.1 billion contributed to SVF1,SVF2,and LatAm FundsShare buybacks:1,055.4 billion of share repurchases
147、 under programs approved by the Board on November 8,2021 and August 8,2022Debt repayment:$4.5 billion repayment of SBG commitment line,325.2 billion repayment of SBG senior loan,$337.0 billion redemption of SBG domestic straight bonds,$2.1 billion foreign currency-denominated bonds repurchased,$0.75
148、 billion SBG USD-denominated undated Hybrid Notes repurchased,$6.0 billion repayment of margin loans using Alibaba shares,$2.1 billion repayment of margin loans using T-Mobile shares.Debt repayment amount is net of 385.0 billion of domestic straight bonds issued by SBG during the period.*1 Consolida
149、ted net interest-bearing debt(excluding PayPay Banks deposits for the banking business and cash and equivalents),net of net interest-bearing debt of self-financing entities,etc.and other adjustments*2 Cash and cash equivalents+short-term investments recorded as current assets+undrawn commitment line
150、.SBG stand-alone basis.Excludes SB Northstar.Undrawn commitment line was equivalent to 649.8 billion as of March 31,2023.Fiscal 2022 overviewFinancial activities in fiscal 2022Enhanced financial security through large-scale monetization and significantly restraining investmentEffective use of funds
151、raised through asset-backed financing to reduce debt and return to shareholders NAV and LTVNAV:14.1 trillion (4.4)trillion yoyLTV:11.0%(9.4)ppt yoyNet interest-bearing debt:1.7 trillion*1 (3.0)trillion yoyCash position:5.1 trillion*2 up 2.3 trillion yoyFinancing activitiesLarge-scale monetization an
152、d debt reductionAsset monetization:$39.0 billion Including$35.5 billion asset-backed financing using Alibaba sharesDebt reduction:2.4 trillionInvesting activitiesSignificant curbing of investmentsInvested$3.1 billion vs.$44.3 billion in fiscal 2021Share buybacksBought back 1.1 trillion sharesFully c
153、ompleted share buybacks as resolved in November 2021(with a 1 trillion limit)and August 2022(with a 400 billion limit)(tn)Cash position(March 31,2022)Cash position*2(March 31,2023)Undrawn commitment lineUndrawn commitment line+5.75.13.80.14.50.60.42.41.1IncreaseMonetizationDebt repaymentsSVF investm
154、entsShare buybacksDecreaseOther2.90.12.7Looking back on fiscal 2022Continuous monetization and curbing new investmentsSee pages 20-21 for definitions of NAV and LTV.Financial SectionCorporate InformationFoundation for Our GrowthGrowth AssetsMessage from Our CEOMessage from Our CFOTable of ContentsWh
155、o We Are SoftBank Group Report 202317an unwavering commitment to increase value for both our shareholders and bond investors.We will continue to leverage share buybacks as one of the measures to showcase the true value of our company.As a result of our initiatives over the past year,our cash positio
156、n amounted to 5.1 trillion as of March 31,2023,a significant increase from the previous year.Of the total cash position,4.5 trillion was in cash and cash equivalents,while the cash balance attributable to SBG,excluding subsidiaries,was 3.5 trillion.Of this balance,77%(2.7 trillion)is denominated in
157、U.S.dollars.Our investment business now primarily focuses on investment opportunities denominated in U.S.dollars,making it the main currency for the business,and the majority of monetized assets were also denominated in U.S.dollars.As a result,our reserved cash in U.S.dollars has benefited from the
158、strong dollar and the substantial rise in U.S.interest rates over the past year.In the fourth quarter of fiscal 2022,the average yield on our U.S.dollar deposits was 4.92%.As of March 31,2023,77%of our outstanding interest-bearing debt*10 had fixed interest rates,providing a degree of stability in o
159、ur our ownership in Alibaba from 24.4%to 13.7%.This reduction was primarily driven by the early physical settlement of the prepaid forward contracts using Alibaba shares.As of May 2023,we have used nearly all of our shareholding in the company for such contracts and other financing schemes,effective
160、ly completing the process of monetizing the shares.Since our initial investment in Alibaba back in 2000,we have invested a total of 7.4 billion.The investment has delivered remarkable results,generating a total return of 9.7 trillion*3 over the past 23 years.This impressive performance translates to
161、 an internal rate of return(IRR)of 57%.*4 It is important to note that when Mr.Son decided to invest in Alibaba,the company had zero revenue.Under the exceptional management skills of Mr.Jack Ma,the company flourished in the Chinese market.The partnership between Masa(Masayoshi Son)and Jack has been
162、 a monumental win-win relationship that will be remembered in history.We thank Alibaba for its significant contributions to our investment success.Capital relationships are just one part of our Cluster of No.1 strategy,so we will continue to work with Alibaba as a like-minded partner.Furthermore,we
163、substantially reduced new investments made through SoftBank Vision Funds to$3.1 billion in fiscal 2022 from$44.3 billion in the previous year.This shift demonstrated our heightened investment discipline and defensive strategy.interest payments in the face of interest rate increases.Furthermore,when
164、looking at the balance between funds managed and fund raised,we effectively manage the impact of higher interest payments,given that our interest income also increases as interest rates rise.We are proud of our successful navigation of these volatile financial market conditions.In addition,we active
165、ly repurchased our outstanding fixed-rate foreign bonds and perpetual subordinated notes,when their prices declined due to rising interest rates.As a result of these actions,we achieved a gain on redemption of corporate bonds*11 of 44.1 billion in fiscal 2022.This result reinforces our confidence th
166、at there is little cause for concern regarding the financial risks to SBG associated with rising interest rates.SoftBank Vision Funds recorded another year of losses in fiscal 2022,bringing the cumulative investment loss since inception to$8.5 billion.While we are disappointed that the value of our
167、investments is below the cost of investment,we are encouraged that the deficit has started to recover on a quarterly basis.In SVF1,where the investment period has concluded,an investment of$89.6 billion has yielded a total investment return Concurrent with our monetization strategy,we actively reduc
168、ed our debt over the past year.Specifically,we repaid 1,007.8 billion in margin loans*5 and 915.9 billion in bank loans,and redeemed or repurchased 442.0 billion in bonds,*6 for a total debt reduction of 2.4 trillion.*7 In this regard,as we have monetized our assets into cash,we also made efforts to
169、 return funds to loan lenders and bond investors.We believe that these efforts have been highly appreciated and valued.At the same time,in fiscal 2022,we successfully implemented large-scale share buybacks totaling 1,055.4 billion.*8 It is widely acknowledged that in a challenging market environment
170、,the prudent approach would be to exercise restraint in both share buybacks and new investments.However,despite the prevailing market conditions,we executed the buyback program through fiscal 2022.This initiative was carried out in accordance with the 1 trillion program approved by the Board in fisc
171、al 2021,taking careful consideration of our financial balance.As evidenced by our substantial share buybacks totaling 4.5 trillion*9 over the past five years,we have demonstrated*3 Net of costs associated with the monetization,such as option premiums on derivative transactions and cash settlements.E
172、xcludes amounts not yet monetized as of May 11,2023*4 Calculated based on actual investments and monetization from 2000 to May 11,2023.Before tax consideration*5 Net of a$0.5 billion increase in asset-backed financing using Arm shares in the first quarter of fiscal 2022*6 Face value.Excludes the 58t
173、h series of unsecured bonds(385 billion)issued in the third quarter of fiscal 2022*7 Calculated based on the average exchange rate during each quarter*8 Total amount acquired in fiscal 2022 under the Board resolutions of November 8,2021 and August 8,2022.*9 See page 71 for the breakdown of 4.5 trill
174、ion buybacks.*10 Interest-bearing debt of SBG and fund procurement subsidiaries as of March 31,2023.Includes margin loans and excludes prepaid forward contracts*11 Excludes the difference of face value and purchase price associated with the$750 million buyback of U.S.dollar perpetual subordinated no
175、tes Gross debt reductionShare buybacksCash positionApproach to the risks of rising interest ratesPerformance of SoftBank Vision FundsFinancial SectionCorporate InformationFoundation for Our GrowthGrowth AssetsMessage from Our CEOMessage from Our CFOTable of ContentsWho We Are SoftBank Group Report 2
176、02318see clear signs of green shoots.Including the exited investments,the current value of SVF2s$50.2 billion investments stood at$31.9 billion*12 as of March 31,2023,reflecting challenging market conditions.In terms of the number of investments,SVF2 boasts a more diversified portfolio compared to S
177、VF1.The performance of SVF2 investments will therefore serve as a valuable reference for our future investment hypothesis when we resume investing.With this in mind,we will continue to closely monitor the growth of SVF2s portfolio companies.SoftBank Vision Funds currently hold a portfolio of late st
178、age and near-IPO investments,including Arm,worth over$37.0 billion.With the expectation of a recovering IPO market,we anticipate significant future growth.As we enter fiscal 2023,we remain fully committed to our existing financial policy.While some market turbulence has subsided,we remain mindful of
179、 ongoing geopolitical risks such as Russias invasion of Ukraine and Chinas foreign and domestic policies,which continue to pose challenges.Given the prevailing market conditions,we believe it is prudent to maintain a defensive approach.Simultaneously,the of$101.0 billion.Of this,$45.1 billion has be
180、en exited,and$20.6 billion has transitioned to the public market and can be monetized.We are assessing the potential upside of SVF1s remaining$35.3 billion in private investments,including Arm,which is currently preparing for an IPO.rapid evolution of technology demands our attention.Innovative tech
181、nologies,including generative AI,are advancing at an accelerated pace and surpassing our initial expectations.We recognize that these dynamics present an opportunity to invest in these groundbreaking technologies and we must seize the moment now.Considering these factors,we believe it is the right t
182、ime to cautiously resume investing.The prevailing financial market conditions do not inspire much optimism,and we anticipate a potential downturn.However,our strong financial position at the end of fiscal 2022 gives us confidence to adopt a balanced approach that encompasses both defensive and offen
183、sive strategies.Arm is growing faster than we expected in terms of revenue and adjusted EBITDA.We believe that,as AI technology advances,Arm chips are poised to gain wider adoption,driving further company growth.Arms IPO preparations are on track and,if completed,we expect this would improve the qua
184、lity of our portfolio.We have sufficient cash reserves,eliminating the need to actively raise new funds.Regarding bond redemption,our strategy is to refinance on an ongoing basis to allow investors to reinvest in SBG,while ensuring adequate funds for redemption.We have bolstered our financial positi
185、on to an unprecedented level of safety.We will maintain close communication with investors and rating agencies to ensure that our financial stability receives due recognition.On the other hand,many of SVF2s investments are still youngonly two or three years into the initial investmentand it feels as
186、 though we have sown nearly 270 seeds across a large field.As we entered 2023,the market environment showed signs of improvement,and we are beginning to Investment costCumulative investment return(Fair value+Sale price)89.6101.024.0 45.130.720.634.935.3SVF1:Cumulative investment return(as of March 3
187、1,2023)($bn)ExitedPublic(Investments before exit)Private(Investments before exit)Before deducting third-party interests,tax,and expenses.The public/private classification is as of March 31,2023.Exited investments include disposal(sale)through share exchanges,derivative gains and losses relating to i
188、nvestment(including unsettled derivatives),and interest and dividend income from investments.Public investments include investments in shares traded on the over-the-counter market.For a certain investment that was initially determined to be transferred from the Company to SVF1 but later cancelled,an
189、y unrealized valuation gains and losses incurred for the period leading up to the decision to cancel the transfer are not included in cumulative investment return.Investment costCumulative investment return(Fair value+Sale price)50.231.91.68.140.525.24.32.4SVF2:Cumulative investment return(as of Mar
190、ch 31,2023)($bn)ExitedPublic(Investments before exit)Private(Investments before exit)Before deducting third-party interests,tax,and expenses.The public/private classification is as of March 31,2023.Exited investments includes derivative gains or losses(including on unsettled derivatives)relating to
191、investments and interest and dividend income from investments.Public investments include investments in shares traded on the over-the-counter market.Investment cost and fair value of investments prior to the exit of SVF2 include those related to noncontrolling interests in other companies received a
192、s part of the acquisition consideration for the investment.*12 Includes sale price of exited investments.Note:The public/private classification of investments described herein is based on their status as of March 31,2023.Financial strategy for fiscal 2023Financial SectionCorporate InformationFoundat
193、ion for Our GrowthGrowth AssetsMessage from Our CEOMessage from Our CFOTable of ContentsWho We Are SoftBank Group Report 202319MobileData and AI15.9 tn1.7 tn14.1tnEquity valueof holdingsSVF1SVF2Deutsche TelekomLatAm FundsOthers1.3 tn2.4 tn0.7 tn2.8 tn3.5 tn2.9 tn0.3 tn1.2 tn0.8 tnSBGs net debtNAV(Ne
194、t Asset Value)NAV14.1trillionAs of March 31,20232013Acquired U.S.-based carrier Sprint2014Alibaba listed onthe New York Stock Exchange2016Acquired U.K.chip designer Arm2017Launched SVF12018SoftBank listed on the Tokyo Stock Exchange2019Launched SVF22000Invested in AlibabaBroadbandInternetPC Software
195、19811995/20002005201020152020(FY)See page 69 for the assumptions used to calculate the equity value of holdings and net debt.As of March 31,2023Boosting NAV Growth by Investing in the Information RevolutionNAV(Net Asset Value)<V(Loan to Value)Note:NAV data for each quarter-end.The NAV data are the
196、 Company estimates based on the information available to it,and the accuracy or completeness of the information is not guaranteed as the figures are not audited.NAV trends are not a guarantee of future figures and are not indicative of the price of SBGs common shares or any securities held by the Co
197、mpany and should not form the basis of investment decisions.The figures are based on data before considering taxes unless otherwise stated.In the calculation of NAV,the equity value of holdings excludes amounts to be settled at maturity or borrowings that are part of asset-backed finance.SBGs net de
198、bt excludes borrowings that are part of asset-backed finance.The calculation of SBGs net debt excludes interest-bearing debt and cash and cash equivalents,etc.,attributable to entities managed on a self-financing basis,such as SoftBank(including its subsidiaries such as Z Holdings and PayPay),SVF1,S
199、VF2,LatAm Funds,and Arm,as well as SB Northstar.NAV(Net Asset Value)is the most important indicator for assessing the value of SBG and is calculated as equity value of holdings minus SBGs adjusted net interest-bearing debt(net debt).SBG aims to maximize NAV over the medium-to long-term through an in
200、crease in the equity value of holdings.Strategic investment holding companyFinancial SectionCorporate InformationFoundation for Our GrowthGrowth AssetsMessage from Our CEOMessage from Our CFOTable of ContentsWho We Are SoftBank Group Report 20232011.0%LTV(Loan to Value)is a financial indicator that
201、is calculated as SBGs adjusted net interest-bearing debt(net debt)divided by the equity value of holdings.SBGs finance policy is to maintain LTV below 25%in normal times with an upper threshold of 35%even in times of emergency.An LTV below 25%is a very high level of safety indicating that the equity
202、 value of holdings is more than sufficient to repay the debt.Note:LTV data for each quarter-endNote:The equity value of holdings excludes amounts to be settled at maturity or borrowings that are part of asset-backed finance.SBGs net debt excludes borrowings that are part of asset-backed finance.The
203、calculation of SBGs net debt excludes interest-bearing debt and cash and cash equivalents,etc.,attributable to entities managed on a self-financing basis,such as SoftBank(including its subsidiaries such as Z Holdings and PayPay),SVF1,SVF2,LatAm Funds,and Arm,as well as SB Northstar.SBGs net debtEqui
204、ty value of holdingsLTV(Loan to Value)Equity value of holdingsSBGs net debtQ4FY2020FY2021FY2022Q4Q1Q1Q2Q2Q3Q3Q41.7tn35.0%100%100%90%80%70%60%50%40%30%20%10%0%25.0%11.0%15.9tnLTV as of March 31,2023LTV11.0%35.0%25.0%See page 69 for the assumptions used to calculate the equity value of holdings and ne
205、t debt.through effective defensive measuresLTV improved dramaticallyLarge-scalemonetizationSignificant investment curbsAn Important Indicator for Stable Financial Management:LTVNAV(Net Asset Value)<V(Loan to Value)Financial SectionCorporate InformationFoundation for Our GrowthGrowth AssetsMessage
206、from Our CEOMessage from Our CFOTable of ContentsWho We Are SoftBank Group Report 202321Investing in AI Generational GrowthMessage from SoftBank Vision Funds ManagementCo-CEO,SB Investment AdvisersRajeev Misra22of our capital deployment broadly across three levels.The first is the foundation layer,w
207、here our portfolio companies are developing AI architecture through chip design to underpin the raw processing power required for a generational change in computing.Second,the application layer represents the essential digital infrastructure to enable the widespread adoption of AI at the B2B level.F
208、inally,at the services layer,users interface with the technology directly to access new products and services across every sector,from digital health to financial services.The growing prevalence of these technologies will transform existing industries and create entirely new ones.According to PwC,AI
209、 is expected to enable$15.7 trillion of economic growth by 2030.*1 Similarly,by 2025,global data volume is expected to have increased by more than 10 times from 10 years prior.*2 As more data become available,AIs impact will continue to grow and alter the trajectory of enterprise technology.Similarl
210、y,AI is revolutionizing health tech,accelerating the search for potential drug molecules up to a thousand times faster.The SoftBank Group has been investing ahead of major technology shifts for over 40 At the macro-level,volatility has been ever-present over the past 12 months.Challenging dynamics i
211、n geopolitics,regulations,and monetary policy led investors worldwide to pivot towards a more conservative approach following the high levels of capital deployment in fiscal 2021.Despite its challenges,fiscal 2022 was a tipping point for AI and its widespread adoption.People around the world watched
212、 with fascination and delight as generative AI wrote stories,told jokes,and created original art.The adoption rate of OpenAIs ChatGPT was unprecedented;it took only two months for the platform to reach 100 million unique users.By comparison,it took TikTok and Instagram nine months and 28 months,resp
213、ectively,to hit the same milestone.This is the latest in an incontrovertible and growing dataset proving that AI has transitioned to the mainstream.While a number of our portfolio companies are applying generative AI in novel applications,SoftBank Vision Funds are a diversified investment platform,m
214、eaning that we have been able to invest across the full stack of AI technology.AI spans an ever-widening spectrum of use cases,and we think years,and we have been ahead of the field in investing growth capital in AI at scale,first with the Groups acquisition of Arm in 2016 and subsequently with the
215、launch of SoftBank Vision Fund 1 in 2017.While cynics would argue there is a degree of hype around generative AI at present,remember Amaras Law.*3 AI is a generational technology that sits above market cycles.It is ushering in a wave of inevitable digital change.2022 will be recalled as a challengin
216、g time for global investing,but our portfolio is constructed upon a continued conviction in the AI revolution.We are confident our portfolio companies are primed to benefit as the potential of this technology becomes reality.On a personal note,as CEO of SB Investment Advisers,my role has modified to
217、 focus primarily on the performance and monetization of SoftBank Vision Fund 1.While I have passed day-to-day management for SoftBank Vision Fund 2 and LatAm Funds to my colleagues on the Executive Committee,I remain highly committed to the firm.It continues to be a privilege to serve the SoftBank G
218、roup and the Funds other Limited Partners;I am motivated and energized in striving to attain our investment objectives.*1 PwC,“Sizing the prize,PwCs Global Artificial Intelligence Study:Exploiting the AI Revolution”*2 Statista,“Volume of data/information created,captured,copied,and consumed worldwid
219、e from 2010 to 2020,with forecasts from 2021 to 2025”*3“We tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run,”coined by Roy Amara,past president of the Institute for the Future.Financial SectionCorporate InformationFoundation for Our Growth
220、Growth AssetsMessage from Our CEOMessage from Our CFOTable of ContentsWho We Are SoftBank Group Report 202322When Masa(Masayoshi Son,Representative Director,Corporate Officer,Chairman&CEO of SBG)addressed investors and the media at SBGs earnings in May 2022,he talked about the importance of strength
221、ening our defense in turbulent times.These remarks were well-timed,as global market instability increased over the course of the year.The continued escalation of the conflict in Ukraine prompted a spike in global energy prices while ongoing geopolitical tensions between the U.S.and China saw local r
222、egulators adopt a more interventionist stance with technology-led growth startups.Tightening monetary policy has also increased the cost of capital.In the face of persistent consumer inflation,central banks have taken action;since the beginning of 2022,the U.S.federal funds rate has climbed rapidly,
223、and as of March 2023 it was at 5%the highest since 2007.The pace of the rate hike cycle wrongfooted numerous financial institutions.Banking failures from Silicon Valley Bank,Signature Bank,and First Republic Bank remind us that we remain in volatile times.This macro instability translated as a sizab
224、le correction in global markets.The NASDAQ-100 Technology Sector Index fell as much as 40.2%in the first half,while Member of the Executive Committee,SB Global AdvisersCo-CEO,SB Investment AdvisersAlex ClavelCFO,Member of the Executive Committee,SB Global AdvisersCFO,SB Investment AdvisersNavneet Go
225、vilMember of the Executive Committee,SB Global AdvisersGreg MoonResilience and Discipline in a Challenging MarketMessage from SoftBank Vision Funds ManagementFinancial SectionCorporate InformationFoundation for Our GrowthGrowth AssetsMessage from Our CEOMessage from Our CFOTable of ContentsWho We Ar
226、e SoftBank Group Report 202323monetization strategy,which range from strategic and financial to opportunistic.First,we consider asset-specific factors,including performance expectations,position size and liquidity,and investment risk profile.Second,we review a broad spectrum of market and fund facto
227、rs,including sector and geographic outlook,macroeconomic outlook,and optimization of IRR and MOIC.This disciplined approach to monetization is the cornerstone of our consistent returns profile since inception,posting robust growth in cumulative proceeds year over year.Our strategic monetization duri
228、ng periods of market strength resulted in an approximate$30 billion increase in cumulative proceeds,from$16.5 billion in December 2020 to$46.0 billion in December 2021.Furthermore,this contributed to a gross realized gain of$22.9 billion.Maintaining a defensive posture extended beyond our investment
229、 activities and portfolio.We also took steps to improve our own operating efficiency.This included the consolidation of the SoftBank Groups international investment capabilities within SB Investment Advisers and SB Global Advisers.This has allowed us to concentrate our investment capabilities within
230、 a single,the year.Our investment teams engaged with management teams in every sector and geography to support their companies in becoming more operationally and financially resilient.In todays environment,businesses are learning to achieve more with less,whether that is to strengthen company govern
231、ance and culture,reexamine supply chains,or make core processes more efficient.A focus on the fundamentals has in part meant that our companies continue to attract capital from prestigious global investors,a source of encouragement in the face of sustained market uncertainty.As of March 31,2023,98%o
232、f SoftBank Vision Fund 1 private portfolio companies by fair value had over 12 months of cash runway,while 90%of private portfolio companies in SoftBank Vision Fund 2 and 84%of private portfolio companies in LatAm Funds have the same cash runway.The markets may continue to fluctuate,but our portfoli
233、o companies are prepared for the potential impact of todays conditions and are determined to grow sustainably.At the fund level,we continue to focus on maximizing value across our portfolio and returning capital to our LPs,including SBG.There are multiple drivers to our integrated team,as well as de
234、liver operational synergies across multiple functional teams.The benefits of this approach are immediately apparent,and we are working more closely with all parts of the firm as“One SoftBank.”Global markets continue to demand caution,but our portfolio continues to make progress behind the scenes.We
235、have a strong stable of late-stage companies in our mature portfolio,representing over$37 billion in fair value,which are primed for public listing when the time is right.While cautious and deliberate,we feel well-prepared for the changes that fiscal 2023 will bring.Through our selective investing a
236、pproach,value optimization,and disciplined monetization,we continue to evolve our investment platform to meet market opportunities.the Refinitiv Venture Capital Index was down 57.7%.Although this was a market phenomenon,not a SoftBank Group one,we were impacted.As of March 31,2023,collective markdow
237、ns for fiscal 2022 across SoftBank Vision Funds equated to 21%of assets.Looking at the more granular detail of performance since inception,SoftBank Vision Fund 1 remains in positive territory,posting$11.4 billion of cumulative gross investment gains*since launch.The vintage of SoftBank Vision Fund 2
238、 and LatAm Funds meant the impact on performance was more marked,with these funds currently marking a cumulative investment loss of$18.3 billion*and$1.7 billion,*respectively.In the face of growing market uncertainty,we pivoted our strategy to prioritize defense.Following high volumes of new investm
239、ents in fiscal 2021,we radically scaled back the rate of capital deployment in fiscal 2022,applying an increasingly high bar for any new investment approvals.The agility of this response means that we have been able to preserve capital through the present volatility and still have substantial dry po
240、wder to deploy when market conditions improve.Capital preservation was also a key feature in our portfolio management over*SBG consolidated basis.All other figures in this section are on an SVF stand-alone basis.Before deducting third-party interests,tax,and expenses.Financial SectionCorporate Infor
241、mationFoundation for Our GrowthGrowth AssetsMessage from Our CEOMessage from Our CFOTable of ContentsWho We Are SoftBank Group Report 202324A High Conviction Portfolio Supported by Defensive MeasuresSoftBank Vision Funds In FocusInvestment resultsAs of March 31,2023,SoftBank Vision Funds had investe
242、d in over 470 companies(including exited investments)across a diverse mix of geographies,sectors,and technologies.The total fair value*1 for funds on the platform stands at$138.7 billion.In SoftBank Vision Fund 1,we have made 94 investments at an acquisition cost of$89.6 billion.Total fair value*1 s
243、tood at$101.0 billion,representing a cumulative investment gain of$11.4 billion.By March 31,2023,30 of these companies had listed on major exchanges around the world.Fiscal 2022 saw GoTo Group list on the Indonesia Stock Exchange as the third largest IPO in Asia for the year,based on the total funds
244、 raised.Other public listings included Delhiverys IPO on the Bombay Stock Exchange and Getaround,which listed on the New York Stock Exchange via a SPAC merger.To give a more granular breakdown of the Funds capital construction by fair value,$35.3 billion is held in private companies;$20.6 billion is
245、 in liquid,publicly traded positions;and we have exited portfolio positions to a value of$42.7 billion.As a younger fund,SoftBank Vision Fund 2 comprises 274 investments,at a total fair value*1 of$31.9 billion.As mentioned in the previous section,the rate of new investing tapered substantially in fi
246、scal 2022.To put this in context,in fiscal 2021 we made 226 new and follow-on investments,deploying a total of$40.8 billion for new and follow-on investments.The equivalent figure for fiscal 2022 was 59 new and follow-on investments for a total of$2.7 billion deployed,a reduction in capital allocati
247、on of 93%.The Funds capital construction by asset type stands at$25.2 billion in private positions,$4.3 billion in publicly traded companies,and$2.7 billion of exits.LatAm Funds meanwhile posted fair value*1 of$5.7 billion across 107 investments as of March 31,2023.A portfolio company,Satellogic,lis
248、ted on NASDAQ in 2022,taking the Funds number of listed assets to three.$5.1 billion of the Funds assets are in private companies,with$0.4 billion in public listings and$0.2 billion of assets already exited.Turning to our SPAC strategy,in June 2022,SVF Investment Corp.3 merged with Symbotic,an autom
249、ation technology leader,using AI-powered robotics and software to reimagine the global supply chain.As of March 31,2023,our gross MOIC was 2.3x and Symbotics market cap was$12.7 billion.For our other SPACs,while we evaluated many companies,the absence of a suitable target partner within our criteria
250、 meant that the respective Boards elected to redeem the SPACs assets in the fourth quarter of fiscal 2022.It is important to remember that as a long-term investor in secular technology trends,SoftBank Vision Funds are designed to traverse market cycles.Optionality and diversification are valuable du
251、ring times of uncertainty.Disciplined portfolio construction allows for strategic optionality.We embed diversification throughout the portfolio in dimensions of fund life cycle,geographies,and across the nine sectors we track.At the geographic level,the footprint of our portfolio across all funds ha
252、s evolved to be a balanced global exposure with the majority of assets deployed in the U.S.,which continues to lead the market in the penetration of AI technologies within growth startups.Similarly,our investments are organized across nine key sectors where AI and innovative applications of big data
253、 are powering secular growth.AI is a general-purpose technology that will influence every industry globally.This diversification ensures that we maintain exposure to growth opportunities across consumer and Resilience through diversificationSee SoftBank Vision Funds website for further details.Perfo
254、rmance snapshotInvestment costCumulativeinvestment return(Fair value+Sale price)As of March 31,2023$31.9bn$50.2bn$5.7bn$7.3bn$101.0bn$89.6bn$138.7bn$147.1bnLatAm FundsSVF2SVF1*1 Includes sale price of exited investments.Note:The figures in this section are on an SBG consolidated basis.Figures in the
255、 following sections are on an SVF stand-alone basis.Before deducting third-party interests,tax,and expenses.The public/private classification is as of March 31,2023.Some figures have been rounded and may not add up to the totals presented.Financial SectionCorporate InformationFoundation for Our Grow
256、thGrowth AssetsMessage from Our CEOMessage from Our CFOTable of ContentsWho We Are SoftBank Group Report 202325enterprise businesses,from digital commerce and logistics automation to data analytics and financial inclusion.To look at a few examples in more detail,digital commerce has brought an unpre
257、cedented number of consumers online,many of whom are increasingly expecting a seamless digital-first retail experience.Industry analysis indicates that e-commerce has been steadily growing its influence in global retail sales,rising from 7%in 2015 to 20%in 2022.*2 AI is driving the shift to e-commer
258、ce by delivering customers an optimized,online retail experience.It is also helping retailers unlock commercial potential through new monetization opportunities and operational capabilities.To observe this in action at the portfolio company level,Contentsquare is an insights optimization platform de
259、signed to help businesses understand digital user interactions.Through data and AI,it not only offers automatic recommendations but also measures content performance,explains consumer decisions,and uncovers preference trends that lead to actionable business insights.Another example is the short-form
260、 video sharing platform ByteDance,which has approximately 3 billion active users.Through its AI-powered recommendations engine,it has evolved into an e-commerce powerhouse,opening endless possibilities for small and large businesses to reach end-consumers.Technological innovation is only made possib
261、le through data.Since 2012,AI computing power has increased exponentially,doubling roughly every three and a half months.The ability for companies to optimize performance is improving radically on a global commercial scale.As the volume of data we create and consume worldwide has multiplied in the p
262、ast decade,we have invested in a raft of companies leveraging AI to crystallize next-level commercial insights,optimize data management,and protect data for consumers and enterprises globally.To share an example of a company in the cybersecurity space,Arkose Labs has an e-CAPTCHA mechanism that leve
263、rages proprietary algorithms to create sophisticated cyber-barriers against identity fraud.Its authentication system identifies attackers using behavioral analytics,stratifies risk Note:The information herein is provided solely for illustrative purposes and reflects the current beliefs of SBIA/SBGA
264、as of the date hereof.Geographical and sector characterizations have been determined by SBIA/SBGA,and although SBIA/SBGA believe that such determinations are reasonable,they are inherently subjective in nature.Fair value includes sale price of exited investments.*2 Statista,“E-commerce as percentage
265、 of total retail sales worldwide from 2015 to 2026”INVESTED ACROSS DIVERSE SECTORSPortfolio fair value by sectorAs of March 31,2023Portfolio fair value by geographyAs of March 31,2023($bn)8%7%13%6%28%6%15%15%1%EnterpriseFintechLogisticsProptechConsumerHealth TechFrontier TechTransportationEdtech$55.
266、8$20.041%U.S.and CANADA4%LATIN AMERICA14%EMEA19%CHINA13%REST OF ASIA9%INDIA$12.4$26.0$18.2$5.5GLOBALLY DIVERSIFIED PORTFOLIOSoftBank Vision Funds In FocusFinancial SectionCorporate InformationFoundation for Our GrowthGrowth AssetsMessage from Our CEOMessage from Our CFOTable of ContentsWho We Are So
267、ftBank Group Report 202326levels,and adapts security friction based on risk.Though it is still an early-stage start up,Arkose Labs has already secured over 30 blue-chip enterprise customers.Our portfolio company,MinIO,meanwhile serves as a data lake for enterprise applications,aligning data across o
268、n-premise and public cloud environments.The platform can assimilate differences between multiple hardware architectures,enabling data to be growing revenue streams and a clear and addressable market.76%of our private portfolio companies are now late-stage companies that generate over$250 million in
269、annual revenue.Despite an environment that has become increasingly capital scarce,our portfolio continued to attract interest from leading third-party investors.Fiscal 2022 saw our portfolio companies complete 60 funding stored and deployed in high-performance use cases in AI and Machine Learning.It
270、 is also important to observe the portfolio maturing over time.We look for companies that combine innovation with steady,rounds,80%of which were up rounds.These rounds raised total proceeds of over$16.3 billion,attracting capital from 1,000+institutional investors.The net effect is remarkable balanc
271、e sheet strength across the portfolio as we work with companies to ensure they have ample runway to weather the effects of a potentially sustained downturn.Turning to the potential IPO pipeline,in A STRONG PIPELINE FOR FUTURE LISTINGSAs of March 31,2023*3 Listings since inception include companies i
272、nvested in on IPO/public listing date.WeWork and Full Truck Alliance are both SVF1 and SVF2 investments.*4 Source:SBIA/SBGA Analysis.As of March 31,2023.Arm and ByteDance are SVF1 investments.Flipkart and PayPay are SVF2 investments.QuintoAndar and Kavak are LatAm Funds investments.Note:Select inves
273、tments presented herein are solely for illustrative purposes and have been selected in order to provide examples of investments made by SVF 1,SVF 2,and LatAm Funds that have gone public or,in the opinion of SBIA,may go public in the future and do not purport to be a complete list of investments.Refe
274、rences to investments included herein should not be construed as a recommendation of any particular investment or security.It should not be assumed that investments made in the future will be comparable in quality or performance to the investments described herein.Past performance is not indicative
275、of future results.A maturing portfolio generating sustainable revenue growth2017 and 20183LISTINGS45LISTINGS SINCE INCEPTION*310LISTINGS32LISTINGS2019 and 20202021 and 2022Looking AheadLatAm FundsSVF2SVF1$37bn+Late-Stage PortfolioTotal fair value,Series E or Later*4SoftBank Vision Funds In FocusFina
276、ncial SectionCorporate InformationFoundation for Our GrowthGrowth AssetsMessage from Our CEOMessage from Our CFOTable of ContentsWho We Are SoftBank Group Report 202327the past two years,our portfolio has seen 32 public listings,with a total of 45 listings since inception.When evaluating public list
277、ing readiness,our portfolio companies consider four key factors to ensure a successful market entry:strong fundamentals,resilient business models,sustainable growth,and a disciplined approach to governance,operations,and financial management.We have a strong stable of late-stage companies in our mat
278、ure portfolio,representing over$37 billion in fair value.This includes companies like Arm,ByteDance,and PayPay.This provides a stable foundation on which to base future monetizations.As of March 31,2023,we had returned$56.5 billion to LPs,representing a gross realized MOIC of 2x.We have exited 30%of
279、 our public investments and 7%of our private investments.To break this down at the fund level,this equates to 51%of capital returned for SoftBank Vision Fund 1,while as younger funds,the equivalent figure for SoftBank Vision Fund 2 and LatAm Funds stands at 18%and 1%,respectively.We continue to take
280、 a strategic approach to monetization,with the aim of maximizing value across our portfolio and consistently returning capital to investors.DISCIPLINED APPROACH TO MONETIZATIONAs of March 31,2023*5 Monetized Public and Private Investments logos include fully exited portfolio companies and do not inc
281、lude undisclosed or partially exited portfolio companies.*6 Cumulative Gross Realized Proceeds represent proceeds received for fully and partially realized investments,related hedges,and dividend income from inception to March 31,2023.The$30 billion figure represents growth in proceeds from December
282、 31,2020,to December 31,2021.*7 Gross Investment Multiple of Invested Capital(“MOIC”)is Gross Realized Proceeds divided by investment cost.Gross Realized Proceeds are defined as the sum of all external cash flows derived from investments,gross of taxes,transaction fees,investment-related financing,a
283、nd other fund-related expenses.Investment Cost is defined as the sum of all external cash flows directed toward Portfolio Companies,principal amounts borrowed as directly related to investments,and net premiums paid by SVF1 for investment-related hedges.*8 Gross Realized Gain represents the differen
284、ce between Gross Realized Proceeds and Cost for fully and partially exited investments as of March 31,2023.*9 Source:S&P Capital IQNote:There can be no assurance that the operations and/or processes of SoftBank Vision Fund 1,SoftBank Vision Fund 2,and SoftBank LatAm Funds described in this report wi
285、ll continue throughout the life of SoftBank Vision Fund 1,SoftBank Vision Fund 2,and SoftBank LatAm Funds or any successor Fund managed by the Manager,and such processes and operations may change.Select investments presented herein are solely for illustrative purposes and do not purport to be a comp
286、lete list of SoftBank Vision Fund 1,SoftBank Vision Fund 2,and SoftBank LatAm Funds investments.References to investments included herein should not be construed as a recommendation of any particular investment or security.It should not be assumed that investments made in the future will be comparab
287、le in quality or performance to the investments described herein.See pages 93-96 for a more complete list of SoftBank Vision Fund 1,SoftBank Vision Fund 2,and SoftBank LatAm Funds investments.Net performance for individual investments cannot be calculated without making arbitrary assumptions about a
288、llocations of fees and expenses,and for that reason is not included herein.Past performance is not indicative of future results.Monetized Public and Private Investments*5CUMULATIVE PROCEEDS SINCE INCEPTION Other Undisclosed Full and Partial ExitsSVF1SVF2Other Undisclosed Full and Partial ExitsMar 20
289、23Dec 2022Dec 2021Dec 2020$16.5$46.0$55.3$56.5$22.9bn2.0 x$30bnGross Realized Gain*8Gross Investment MOIC*7Increase in Proceeds during Period of Market Strength,2020 to 2021*6MonetizationHighlightsCumulative proceeds*6($bn)NASDAQ*916,057SoftBank Vision Funds In FocusFinancial SectionCorporate Inform
290、ationFoundation for Our GrowthGrowth AssetsMessage from Our CEOMessage from Our CFOTable of ContentsWho We Are SoftBank Group Report 202328As of March 31,2023,unless otherwise statedSVF1 SVF2 LatAm FundsTotal committed capital$98.6 billion$56.0 billion*1$7.6 billionLimited partnerSBG,External invest
291、orsSBG,management*2SBG,management*2Fund managerSB Investment Advisers(UK)Limited(SBGs wholly owned foreign subsidiary)SB Global Advisers Limited(SBGs wholly owned foreign subsidiary)SB Global Advisers Limited(SBGs wholly owned foreign subsidiary)Start of operation201720192019Fund lifeUntil 2029+Up t
292、o two 1-year extensions by SBIAUntil 2032+Up to two 1-year extensions by SBGAUntil 2032+Up to two 1-year extensions by SBGACurrent cycleValue creation and realization period(&follow-on investment)Investment periodInvestment period*1 As of June 21,2023,the total committed capital for SVF2 is$60.0 bil
293、lion.*2 A co-investment program has been introduced for SBGs management.An investment entity for the co-investment program participates in both funds.*3 Excludes committed capital for an incentive scheme related to SVF1.$98.6bn$40.0bn$58.6bn$28.1bn*3(48%of equity)Outstanding capital$17.5bn*3(48%of e
294、quity)$36.5bn$53.9bn$17.3bnCommitted capitalReturned more than half of the preferred drawn capital Ongoing coupon payment is significantly reduced SBG is positioned for a greater share of future returns$7.6bn$7.3bnCommitted capitalDrawn capitalCapital Structure of SVF1Outline of SoftBank Vision Fund
295、sPreferred equity(fixed distribution)A fixed rate of 7%on outstanding preferred equity contributions is distributed in proportion to the investment principal,regardless of the investment performance Prioritized over equity upon distributionEquity(performance-based distribution)Distribution to limite
296、d partners is fully dependent on investment performance Has lower priority during distribution,compared to preferred equity interestSBG has committed to equity interests$50.9bn$56.0bn*1Committed capitalDrawn capitalFor further details of the program,see“a.Co-investment program with restricted rights
297、 to receive distributions”in“(1)Related party transactions and balances”under“Note 45.Related party transactions”in“Notes to Consolidated Financial Statements”in“Financial Report 2023.”SoftBank Vision Funds In FocusFinancial SectionCorporate InformationFoundation for Our GrowthGrowth AssetsMessage f
298、rom Our CEOMessage from Our CFOTable of ContentsWho We Are SoftBank Group Report 202329current and future computing applications as the demands for compute performance are insatiable while the need for low power and efficiency remains critical.Arm licenses processor designs to semiconductor companie
299、s that incorporate the technology into their computer chips.Licensees pay a license fee to gain access to our technology and a royalty on every chip that uses one of our technology designs.Typically,the royalty is based on the selling price of the chip.Each Arm design is suitable for a range of end
300、applications and can be reused in a variety of chip families to address multiple markets.Each new chip family generates a new stream of royalties.An Arm design can be used in many different chips,and certain Arm-designed products continue to generate royalty revenue even 25 years after their initial
301、 development.Arm is a global leader in the development of semiconductor technology and is defining the future of computing.A future that is being built by one of the most successful technology ecosystems in the world combining Arm,the leading CPU designer,and over 1,000 companies that partner with A
302、rm to create billions of digital electronics products.We fueled the smartphone revolution and now we are redefining what is possible in cloud computing,transforming the automotive industry,enabling a thriving IoT economy,and making the metaverse a reality.Through our focus on energy efficiency and o
303、ur history of continuous innovation,we have enabled new categories of“smart”consumer electronics.Today,efficiency is not only important for business but also believed by many to be a critical component in achieving sustainability for our planet.This makes Arms CPU technology ideal for In our fast-pa
304、ced world,new applications,device categories,and markets are continually emerging,many of which require advanced semiconductors to provide their capabilities.In contrast,it can take many years to develop the technology that is used in these new devices.Arm is investing currently for products that it
305、 expects consumers and enterprises will start using in 510 years.Since being acquired by SBG in 2016,Arm has significantly increased investments in R&D to ensure that it can develop technology suitable for all these new opportunities.Arm has been investing to develop new processor technology to Gain
306、 or maintain share in long-term growth markets,such as smartphones,consumer electronics,automotive,and embedded computing.Increase the value of Arm processors in every smart device by providing Arm Technology is Defining the Future of ComputingMessage from Arm CEOBoard Director,SoftBank Group Corp.C
307、EO,Arm LimitedRene HaasLeading the world in semiconductor technologyInvesting for the long termArms business modelFinancial SectionCorporate InformationFoundation for Our GrowthGrowth AssetsMessage from Our CEOMessage from Our CFOTable of ContentsWho We Are SoftBank Group Report 202330additional fun
308、ctionality,higher performance,higher efficiency,and more specialized designs.Expand our product offerings to include more complete systems that further increase the value of our products to our customers.Invest in next-generation technologies such as artificial intelligence and machine learning.Expa
309、nd access to Arm products through our flexible business model,creating new ways for customers to include Arm technology in their products.It takes Arms customers time to develop the complex SoCs(system-on-chips)*1 that contain Arm technology.Licenses signed today are not expected to yield royalty re
310、venue for at least 23 years.However,if the chips are commercially successful,they can bring additional royalty revenue streams that could last for years,and even decades,to come.After several years of accelerated investments,in fiscal 2022 Arm saw further revenue growth as its new products continue
311、to come to market.Arms technology royalty revenue grew to record levels in fiscal 2022,up 16.1%from fiscal 2021 due to the following:The growth in revenue from chips used in premium smartphones,especially 5G smartphones,which use more Arm technology than 4G smartphones.The continuing ramp-up of Arm-
312、based chips in the data centers of some cloud service providers.The adoption of more Arm-based chips into automotive markets.This growth was despite a slowdown in the semiconductor industry,which declined 3.2%*2 during fiscal 2022 primarily due to a decline in sales of low-cost smartphones,Revenues
313、today are from investments made many years agoWe have made significant changes in Arms leadership.In November 2022,we welcomed Jason Child as Arms new CFO.Before joining Arm,he held multiple CFO positions.We have also expanded and diversified our Board by adding four new independent directors who br
314、ing a wealth of experience.In addition,I joined the SBG Board in June 2023.I am excited about being a part of SBGs journey to create the Information Revolution,and I am confident that I can serve the companys stakeholders by providing insights regarding emerging technologies trends such as artificia
315、l intelligence,advanced chip design and manufacturing,and the Internet of Things.And how SBG,and its investees,might be best able to benefit from these trends.In February 2022,SBG announced that Arm would start preparations for an Initial Public Offering(IPO)and in April 2023,we confidentially submi
316、tted a draft registration statement on Form F-1 to the U.S.Securities and Exchange Commission relating to the proposed IPO.consumer electronics,and PCs,partially offset by continuing growth in automotive and industrial electronics.Arms technology non-royalty revenue decreased 8.5%from fiscal 2021 pr
317、imarily due to the revenue associated with high-value,multiyear agreements being recognized in fiscal 2021 creating a challenging comparison,partly offset by recently introduced licenses such as the Arm Total Access licenses,which are high-value licenses providing the licensee with a portfolio of Ar
318、m products for many years.Preparing for the new chapter in Arms story*1 System-on-Chip:Where various functions such as microprocessors,graphics,and memory controllers are integrated on a single chip.*2 World Semiconductor Trade Statistics*3 Based on royalty reports received by Arm from its customers
319、 during each year.Revenue($mn)Fiscal 2020Fiscal 2021Fiscal 2022Technology royalty1,2781,5361,783Technology non-royalty7021,1291,034Total1,9802,6652,817Arm-based chips shipped(annual)*35.00.010.015.020.025.035.030.0(Billions)(CY)0202230.6billion chipsFinancial SectionCorporate InformationF
320、oundation for Our GrowthGrowth AssetsMessage from Our CEOMessage from Our CFOTable of ContentsWho We Are SoftBank Group Report 202331See Arms website for its latest information.(Top priority)Importance to the GroupNote:The colors of each materiality indicate its association with the six activity the
321、mes.Six activity themesOur direction1 Drive sustainable growth and innovation in society by uniting wisdom and knowledge2 Take responsibility by responding to emerging issues that come with technological advancement3 Ensure the growth of future generations and our business by creating higher-quality
322、 employment for all4 Leverage breakthrough technologies to resolve environmental issues,including energy problems5 Demonstrate highly transparent governance and integrity to win the further trust of our stakeholders6 Maximize our potential as a group by joining forces with people around the world to
323、 make a positive impact on society(Top priority)Importance to stakeholdersEnvironmental supply chainHuman rightsCorporate citizenshipSocial supply chainLabor standardsPollution and resourcesHealth and safetyRisk managementAccess to communicationStrategic Material IssuesEight Strategic Material Issue
324、s to be prioritizedSustainable financeMarket opportunityHuman capital developmentClimate changeCorporate governanceAnti-corruptionPrivacy and data securityInnovation managementIdentify issues surrounding the Groups main businesses by referring to external guidelines and the opinions of experts.Ident
325、ify issuesStep 1 Identification ofissuesAnalyze the importance on two axes:importance to stakeholders and importance to the Group.Analyze the importance of issues to stakeholders and the GroupIdentify Strategic Material Issues that the Group should prioritize.Identify material issues to be prioritiz
326、edSustainability Vision“Help Shape the Next 300 Years for Our Future Generations and the Planet”Our corporate philosophy,Information RevolutionHappiness for everyone,embodies our determination to bring happiness to everyone,even to future generations 300 years from now.To create a world where people
327、 can live in harmony with the earth,we will fulfill our responsibility as a leader of the Information Revolution to realize a sustainable society.SBG established the SoftBank Group Sustainability Principles as a guideline to appropriately advance sustainability activities.Based on these principles,w
328、e have identified our Strategic Material Issues reflecting the business characteristics and social demands of each Group company.We have also defined six activity themes for the Group to promote its sustainability initiatives autonomously.Identifying material issues(“Strategic Material Issues”)SBG h
329、as classified issues to be addressed from two perspectives:importance to stakeholders and importance to the Group.Among these issues,we identified eight key issues as Strategic Material Issues to be prioritized.Sustainability principlesStep 2 Materiality analysisStep 3 Identification ofmaterial issu
330、esOur SustainabilityFinancial SectionCorporate InformationFoundation for Our GrowthGrowth AssetsMessage from Our CEOMessage from Our CFOTable of ContentsWho We Are SoftBank Group Report 202332CooperateReportSuperviseSuperviseRespond/reportBoard of Directors of SBGMajor subsidiariesSecretariatSustain
331、ability DepartmentRelated departmentsSustainability CommitteeChairperson:Chief Sustainability Officer(CSusO)See page 60 for our risk management.SBGs Board of Directors has appointed the Chief Sustainability Officer(CSusO)and established the Sustainability Committee.The Committee is chaired by the CS
332、usO(head of Investor Relations Department&head of Sustainability Department)and composed of three members including Board Director,Corporate Officer,Senior Vice President,CFO&CISO(head of Finance Unit&head of Administration Unit);Corporate Officer,Senior Vice President(head of Accounting Unit);and C
333、orporate Officer,CLO&GCO(head of Legal Unit).The Committee discusses material ESG issues surrounding the Group and its promotion policies,while considering requests from our stakeholders,and reports to the Board for supervision.We incorporate sustainability risks into the corporate risk management process.See“Risk management”for further details of our risk management system and our risk management