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DISCLOSURES
THIS PRESENTATION IS INTENDED TO ONLY BE USED IN CONNECTION WITH DISCUSSIONS WITH SOCIAL CAPITAL THAT PROVIDE NECESSARY CONTEXT TO THE INFORMATION CONTAINED HEREIN. THIS
PRESENTATION SHOULD NOT BE VIEWED OR RELIED UPON OUTSIDE OF SUCH DISCUSSIONS.
THE OPINIONS EXPRESSED IN THIS PRESENTATION, WHICH IS BEING PROVIDED ON A CONFIDENTIAL BASIS, ARE CURRENT OPINIONS OF SOCIAL CAPITAL AS APRIL 19, 2018 ONLY, AND MAY CHANGE AS
SUBSEQUENT CONDITIONS VARY. ANY PROJECTIONS, MARKET OUTLOOKS OR ESTIMATES IN THIS PRESENTATION ARE FORWARD LOOKING STATEMENTS AND ARE BASED UPON CERTAIN ASSUMPTIONS.
OTHER EVENTS WHICH WERE NOT TAKEN INTO ACCOUNT MAY OCCUR AND MAY SIGNIFICANTLY AFFECT RETURN OR PERFORMANCE. ANY PROJECTIONS, OUTLOOKS OR ASSUMPTIONS SHOULD NOT BE
CONSTRUED TO BE INDICATIVE OF THE ACTUAL EVENTS WHICH WILL OCCUR.
THIS PRESENTATION MAY CONTAIN “FORWARD-LOOKING STATEMENTS” WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995, AS AMENDED. BECAUSE SUCH FORWARD-
LOOKING STATEMENTS INVOLVE RISKS AND UNCERTAINTIES, ACTUAL RESULTS MAY DIFFER MATERIALLY FROM ANY EXPECTATIONS, PROJECTIONS OR PREDICTIONS MADE OR IMPLICATED IN SUCH
FORWARD-LOOKING STATEMENTS. INVESTORS ARE THEREFORE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON SUCH FORWARD-LOOKING STATEMENTS.
THIS PRESENTATION IS CONFIDENTIAL AND IS NOT INTENDED FOR PUBLIC USE OR DISTRIBUTION. THIS PRESENTATION MAY NOT BE REPRODUCED IN WHOLE OR IN PART, AND MAY NOT BE DELIVERED TO
ANY PERSON WITHOUT THE PRIOR WRITTEN CONSENT OF SOCIAL CAPITAL.
IN CONSIDERING THE PRIOR PERFORMANCE INFORMATION CONTAINED IN THIS PRESENTATION, INVESTORS SHOULD BEAR IN MIND THAT PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE
RESULTS, AND THERE CAN BE NO ASSURANCE THAT ANY ACCOUNTS MANAGED BY SOCIAL CAPITAL WILL ACHIEVE RESULTS COMPARABLE TO THOSE OF ANY PRIOR OR EXISTING FUND. SECURITIES
IDENTIFIED IN THIS PRESENTATION ARE INCLUDED SOLELY TO ILLUSTRATE SOCIAL CAPITAL’S INVESTMENT PROCESS AND STRATEGY AND TO EXPLAIN SOCIAL CAPITAL’S VIEW OF THE RELEVANT MARKETS.
RECIPIENTS SHOULD NOT ASSUME THAT SECURITIES IDENTIFIED IN THIS PRESENTATION, OR OTHERWISE RELATED TO THE INFORMATION IN THIS PRESENTATION, ARE, HAVE BEEN OR WILL BE, INVESTMENTS
HELD BY ACCOUNTS MANAGED BY SOCIAL CAPITAL.
THESE MATERIALS DO NOT PURPORT TO BE ALL-INCLUSIVE OR TO CONTAIN ALL THE INFORMATION THAT AN INVESTOR MAY DESIRE. THESE MATERIALS ARE MERELY FOR DISCUSSION ONLY AND MAY NOT
BE RELIED UPON FOR MAKING ANY INVESTMENT DECISION. THE INFORMATION PROVIDED HEREIN MAY BE MODIFIED OR SUPPLEMENTED AT ANY TIME.
INVESTORS SHOULD NOT CONSTRUE THE CONTENTS OF THIS PRESENTATION OR ANY PRIOR OR SUBSEQUENT COMMUNICATION FROM SOCIAL CAPITAL OR ANY OF ITS REPRESENTATIVES OR AFFILIATES,
AS LEGAL, TAX, OR INVESTMENT ADVICE.
THIS PRESENTATION IS NOT AN OFFER TO SELL OR THE SOLICITATION OF ANY OFFER TO BUY WHICH MAY ONLY BE MADE AT THE TIME A QUALIFIED OFFEREE RECEIVES A CONFIDENTIAL PRIVATE OFFERING
MEMORANDUM OR CONFIDENTIAL EXPLANATORY MEMORANDUM (EACH, AN “OFFERING MEMORANDUM”) DESCRIBING THE OFFERING AND RELATED SUBSCRIPTION AGREEMENT AND IN THE CASE OF
ANY INCONSISTENCY BETWEEN THE DESCRIPTIONS OR TERMS IN THIS PRESENTATION AND THE OFFERING MEMORANDUM, THE APPLICABLE OFFERING MEMORANDUM SHALL CONTROL. THIS
PRESENTATION IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH DOCUMENTATION, INCLUDING THE RISK FACTORS AND POTENTIAL CONFLICTS OF INTEREST DISCLOSURES SET FORTH THEREIN. AN
INVESTMENT IN ACCOUNTS MANAGED BY SOCIAL CAPITAL IS SPECULATIVE AND INVOLVES A HIGH DEGREE OF RISK.
WHILE ALL THE INFORMATION CONTAINED IN THIS PRESENTATION IS BELIEVED TO BE ACCURATE, SOCIAL CAPITAL MAKES NO EXPRESS WARRANTY AS TO THE COMPLETENESS OR ACCURACY NOR CAN IT
ACCEPT RESPONSIBILITY FOR ERRORS APPEARING IN THE PRESENTATION. IN PARTICULAR, CERTAIN FACTUAL INFORMATION CONTAINED HEREIN HAS BEEN OBTAINED FROM PUBLISHED SOURCES PREPARED
BY OTHER PARTIES AND SOCIAL CAPITAL HAS NOT INDEPENDENTLY VERIFIED SUCH INFORMATION.
LOGOS PRESENTED REPRESENT THE PAST EMPLOYERS OF SELECT PAST AND PRESENT EMPLOYEES, ENTREPRENEURS IN RESIDENCE AND BOARD PARTNERS OF SOCIAL CAPITAL. THE CONTENT IN THIS
PRESENTATION IS NOT ENDORSED BY THE COMPANIES REPRESENTED BY THE LOGOS. THE LOGOS USED IN THIS PRESENTATION BELONG TO THEIR RESPECTIVE TRADEMARK OWNERS.
SLIDE 7:
54% INTERNAL RATE OF RETURN, REFLECTS THE ANNUALIZED RATE OF RETURN HAD ANY INVESTOR PURCHASED AMAZON SHARES BASED ON THEIR MAY 4, 2016 CLOSING STOCK PRICE. INTERNAL RATE OF
RETURN DOES NOT REFLECT THE DEDUCTION OF FEES AND EXPENSES THAT WOULD BE APPLICABLE HAD THE INVESTMENT BEEN MADE THROUGH A VEHICLE ADVISED BY SOCIAL CAPITAL.
SLIDE 9:
26% INTERNAL RATE OF RETURN, REFLECTS THE ANNUALIZED RATE OF RETURN HAD ANY INVESTOR PURCHASED WORKDAY SHARES BASED ON THEIR OCTOBER 5, 2016 CLOSING STOCK PRICE. INTERNAL RATE OF
RETURN DOES NOT REFLECT THE DEDUCTION OF FEES AND EXPENSES THAT WOULD BE APPLICABLE HAD THE INVESTMENT BEEN MADE THROUGH A VEHICLE ADVISED BY SOCIAL CAPITAL.
SLIDE 11:
3% INTERNAL RATE OF RETURN, REFLECTS THE ANNUALIZED RATE OF RETURN HAD ANY INVESTOR PURCHASED A COMBINATION OF THE 2021 (1.25%) AND 2022 (2.375%), $250 AND $327 TESLA SENIOR
CONVERTIBLE NOTES BASED ON THEIR RESPECTIVE MAY 8, 2017 CLOSING BOND PRICES. INTERNAL RATE OF RETURN DOES NOT REFLECT THE DEDUCTION OF FEES AND EXPENSES THAT WOULD BE APPLICABLE
HAD THE INVESTMENT BEEN MADE THROUGH A VEHICLE ADVISED BY SOCIAL CAPITAL.
PLEASE REFER TO THE FOLLOWING PROSPECTUS FOR FURTHER DETAILS:
https://www.sec.gov/Archives/edgar/data/1318605/000119312517086226/d535687d424b5.htm
SLIDE 12:
36% INTERNAL RATE OF RETURN AS OF APRIL 19, 2018. THIS REFLECTS THE BLENDED ANNUALIZED RATE OF RETURN FOR THE SECURITIES SPECIFIED ON SLIDE 7, SLIDE 9, AND SLIDE 11. INTERNAL RATE OF RETURN
DOES NOT REFLECT THE DEDUCTION OF FEES AND EXPENSES THAT WOULD BE APPLICABLE HAD THE INVESTMENT BEEN MADE THROUGH A VEHICLE ADVISED BY SOCIAL CAPITAL.
15% INTERNAL RATE OF RETURN AS OF APRIL 19, 2018. THIS REFLECTS THE BLENDED ANNUALIZED RATE OF RETURN FOR THE S&P 500, BASED ON THE DATES SPECIFIED ON SLIDE 7, SLIDE 9, AND SLIDE 11. INDEX
INFORMATION IS INCLUDED MERELY TO SHOW THE GENERAL TREND IN THE U.S. LARGE CAP EQUITY MARKET. IT IS NOT INTENDED TO IMPLY THAT ANY PORTFOLIO MANAGED BY SOCIAL CAPITAL WAS OR WILL BE
SIMILAR TO SUCH INDEX EITHER IN COMPOSITION OR RISK.
SEE DISCLOSURES FOR ADDITIONAL DETAIL. © 2018 Social Capital. All rights reserved. 7
October 2016
SEE DISCLOSURES FOR ADDITIONAL DETAIL. © 2018 Social Capital. All rights reserved. 9
May 2017
SEE DISCLOSURES FOR ADDITIONAL DETAIL. © 2018 Social Capital. All rights reserved. 11
36%
Sohn Basket
SEE DISCLOSURES FOR ADDITIONAL DETAIL. © 2018 Social Capital. All rights reserved. 12
What is artificial intelligence?
Training algorithm
Model
Training algorithm
Observation Model
Model Prediction
Algorithms
Infrastructure
Compute
Algorithms
Infrastructure
Compute
CPU
GPU
CPU
Algorithms
Infrastructure
Compute
Algorithms
Infrastructure
Compute
Algorithms
Infrastructure
Compute
Algorithms
Infrastructure
Compute
96k
28k 27k
23k
14k
8k 7k
52k
21k
5k
770k
400k
120k
45k
Algorithms
Infrastructure
Compute
Algorithms
Infrastructure
Compute
$44
$36
$33
$27
$22
69%
67%
65%
64% 64%
63%
60%
59% 59%
56%
52%
51%
50%
Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18
Compliance
Governance
On-Premise BOX
Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18
15
10
3
2
$547
$440
$340
$251
Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18
$50
$22
$7
$2
Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18
($16)
($50)
($78)
($112)
($124)
($136) ($133)
($139)
($144)
$98.4
$32.3
$28.9
$12.3
$3.3
11% 11%
10% 10% 10% 10%
8%
7% 7% 7%
6%
5% 5% 5%
4% 4%
3%
NOW WDAY ULTI BOX CSOD TWLO COUP NEWR OKTA APTI PCTY CRM SEND ZUO EVBG ZEN RNG XERO DBX HUBS
SOCIAL CAPITAL ESTIMATED FIGURES © 2018 Social Capital. All rights reserved. 97
CY'19 EV / Revenue
9.8x
9.0x
8.7x 8.6x
7.9x
7.5x
7.0x 7.0x
6.8x 6.8x
6.3x 6.2x 6.1x 6.0x 5.9x 5.9x
NOW OKTA WDAY COUP DBX XERO NEWR HUBS ZEN RNG PCTY CRM SEND EVBG ULTI TWLO CSOD APTI BOX
Security
Compliance
Governance
On-Premise BOX
$1,548
$3,096
$750
CY'19 CY'29
SOCIAL CAPITAL ESTIMATED FIGURES © 2018 Social Capital. All rights reserved. 100
Revenue Multiple
6.0x
4.3x
CY'19 CY'29
SOCIAL CAPITAL ESTIMATED FIGURES © 2018 Social Capital. All rights reserved. 101
Market Cap ($mm)
$32,581
$3,378
CY'19 CY'29
SOCIAL CAPITAL ESTIMATED FIGURES © 2018 Social Capital. All rights reserved. 102
Applications ?
Algorithms
Infrastructure
Compute