Q1 2021 SoftBank Group Corp Earnings Presentation

Classical can you at that senior Vice President and head of accounting unit.

Now, while you like to invite Mr. phone chairman and CEO to present to the earnings results and business overview.

Mr son, please.

My name is don't thank you very much for your attention today.

So worldwide now that though there are still.

Issue is not solved in a regarding gets to a cobot 19, and I believe that that we just see.

The signs up the Oh set of second wave in I believe that the everyday it's like a war.

And the we'd entrepreneurs.

Oh, we are also.

Fighting against the various types of challenges.

So when it comes the challenge.

As you can see these fixture of this presentation for today.

About 500 years ago.

This type of fighting what's happening here and there in Japan.

And this is the one.

Shopped from there.

So, but then the mounted do you need the Takeda.

Well Steve.

The so called strongest around Japan, and they were making Oh, one shot attack.

And to be against that.

No, but now that or that are prepared the gun unit.

And.

This gun unit was created with those soldiers.

And even such mounted unit comes.

To you.

And if you Miss the shop, then you'll be killed instead.

But because you are scared do you never be able to make the right shot and also.

It takes a quite a long time to load the gun.

And to so this issue.

No, but another order team actually created the whole spends a which help preventing the horse attacking you.

And by having said this fence.

You will be helped from this scary feeling that horses attacking you instill that you'd be able to be prepared the will to aim that shot.

Which means defense.

It's something always necessity to fight and that's always very important elements for the fighting.

And that can be Corbett 19, a under such pandemic situation Softbank group.

Had a transform to investment company under the Softbank to that all.

But for us as on the defense with lots of depend a debt excuse me I believe cash it's actually the defense for us so by having our cash on hand.

We'll be able to enhance our defense power.

With that.

When we have a big chaos obvious suffers wave of Corbett 19, actually our share price went down for a much study of course at the credibility the credit went down and bucklin ads of the end of much.

4.5 to the on yen in dollars $41 billion.

Our monetization program.

But.

Announced.

So this is a monetization program so called.

And this.

So sale or monetizing some assets held maximum 4.5 junior in yen or will be.

Monetize in one year and the many people got surprised with this announcement because in a short time period can you really makes such a.

Big size of money monetized.

In a in the year 4.5, chewed Union monetizing so this program.

Today extra the the progress so far is that the we have already made 4.3 trade Union monetize.

So for the target of four point type studio and then actually our programs has already achieved 95%. So 44.5 to the in any one year. After the only in 4.45 months, we have already monetize 4.3 trillion year monetization.

So I believe that there would be able to exceed our target the amount of 4.5 to union in terms of this monetization program. So our.

We will make sure to achieve this monetization.

Program looking back back in 2008, we experienced financial crisis.

At that moment Softbank was also up.

Cold that that they is pacing the bankruptcy risk. So many major media report does or a analyst investors actually are talking very bad about Softbank back then and but at the same time the we.

Actually he announced it to think as on the specific measure for the situation as a financial improvement target, we set a target for free cash flow generating one treaty and yet the other thing was net debt.

But then that the we did carry quite a large amount of debt a which was about 1.9 trillion yen. So this was.

Still we were very small companies are 1.92 Union was already very large dead.

About the late last three the yeah for then he.

He was about 100 video in yen.

And actually if we get school wise, we are trying to generate three times of that.

And when we said such targets. Many people actually said that you never be able to achieve such a big a target.

In the many people are very much skeptical about our target a net debt also we said to have the net debt and again and many people will skip skeptical about this target. So we said that though we would like to achieve this to target.

In three years and actually what happened was.

Well one point.

1.32 Union free cash flow.

Again, so once you do your own yen targets and also for the having our net debt reduction reduced by 75%. So those two target was achieved actually we overachieved our those two targets.

That was something that we were able to make that happen, which means softbank or myself. Once we make any comment we definitely achieved those.

So we are always varies.

Convinced that there will be able to achieve that's targets and determined to do so as well of course.

Sometimes or do we do need to change the of course, but when we changed of course, oh without any excuse or exit.

Excuse that the we still like to achieved a target or are we announced the other target instead, but in principle or we always.

Try to achieve what what they buy we said.

No what we what they buy we committed.

So this time 4.5 chewed Union program, a monetization program once again that will make sure to achieve that.

And consolidate did the results.

That dialectics elaborate a little bit from here.

As I mentioned earlier.

We are already transform to investment company.

So for us as an investment company net sales.

Is it really important for us as I could be I actually I.

Question about that and net income again.

As an investment company is a really important CPI for us.

But still I believe that those two KBR is.

And also this is the rule that though we announced these so that Oh, we would like to disclose as.

A regulated so.

As a.

Last quarter same yeah that he was a one point Fortunately union and that this these are these core days 1.4.

Five trade unions I believe that but this is quite a good progress so far as an first quarter last year of course later on in the second the quota and known especially a member of fourth quarter, we made a big loss.

And the actually he was the biggest laws ever since the foundation of the business and million people worried about softbank.

And once again.

Many people got worried and considered about softbank, especially because of salt won't be doing fund, making quite a big loss.

And our many people wonder that the mutual funds may not be able to recover and the I believe that there will be able to discuss that the later pages.

Net income.

Increased by 2%.

I've been to you last year.

Net sales and net income was on not only our Katie I will also announcing operating income or EBIT is about 500 beyond you know so and.

A little bit bigger.

Than we expected for the first quarter.

In the these numbers from accounting point of view that may not be too much important for a business going but still I would like to put some color on it.

So net income.

Last fiscal year first got Alaska fiscal year, we have ballantyne.

Gains due to de Adobe, but it was related to prepaid for constructs using only by bus. Yeah. This is not something that happens every year, but this is the one time.

Because of a pretty paid for contracts.

And the based on a share price a body Bubba because shep I suppose increasing.

About four years or so or are we being recording dairy, but they've lost.

So we from the accounting point they'll be we'd been recording a negative but does that comes back.

As an positive. So this is just the one time.

And those that literally it's not a onetime gain was the agreed portion which is the Softbank segment, which is telecommunication business our subsidiary.

Telecom business.

And also stung become fund.

In the fall that this fiscal year, a first quarter Beach on front end Softbank segment.

Yeah, you can see on your right hand side.

Colored didn't green and yellow so that's a fiscal yeah. They don't find is doing well, but the because in second and third and fourth code that they had the difficulty. So there are a lot of lessons learnt but still for this first quarter fiscal rtwenty or they are showing some recovery on top of that.

No those.

Sprint and T mobile.

Well matched.

As a but April this year as they first Oh the April this year.

Oh officially the nature of these two companies were certified in except that and I look at least I imagine there we see a onetime.

Game, which is supposed to tier.

So these one time one though.

Gains, which will not recur in the coming yes on top of that Alibaba share is rising in value so the related to.

Yeah, they do but Dave bounty alone Sandy related.

Two.

Yeah T mobile.

Oh, Eva Alibaba share increase then negative deliberative.

The number shall be recorded.

But the.

Oh, the almost the same amount the on the cumulative basis.

Yeah, what is actually come on that if downside in blue color well. This amount will be reversed. So this is the accounting the and the process that we are going to it so the oh.

Well this year, so whenever we see the increase in the body already about the share of assets increase so we're happy to see the increase in I'd love I share, but share price, but in terms of the accounting process as you see it when the right inside both the a onetime derivative loss is to be recorded.

So last year this year.

Oh, Yeah, we have done cipro onetime factors onetime gains a onetime losses.

Right and the a 100 medium R&D increase up to 120.

But the what is more important is see a shareholder bodies.

Today. So those of you who are listening to this presentation some of you.

Must be industries.

And.

Also the other people analysts related to investment.

And also people in the media.

Other listeners today in investing at your money in the US yes, what do you sell.

Important if you are investing into issues what is the most important indicator for you both the among all the 10 names in your shareholding Oh, the total badu is it increasing or decreasing how much easier principal de stocking investment amount in the Uh huh.

John D., but do you you gained on top of that if you borrowed the money into the two interesting. She is you need to deduct the borrowing from the total body of you're holding and how much is the remaining Andy a value that is the most important an indicator to the interest us so the two as they invest in companies shareholder.

Thank you.

No the result of the investment.

4.5, Tweedy Union monetization is what we.

Conducting an analyst and the asset backed financing is the core of that and we do this as its finance in the non recourse Amanda.

So what is no recourse what is the asset financing I'd like to explain from now on.

First of all placed a big portion or the part is as I mentioned earlier Alibaba related prepaid forward contracts.

Some well do a few years from now on Alibaba shares.

I to be transpired.

And yes, they settlement shobi meat or.

The cash is to eat repeat.

To complete the settlement so it could be shares or cash.

We have auction to use their kids chess or cash for the settlement I buy shares.

Well. The this means that we sold about Bashir seen advance and we see cash but it is not that yeah, we sold the share, but the there's the possibility or the option to transfer it enough of them up cash.

So it is somewhere in between setting or the.

The transaction by a share so cash in the second one is a much in loan it is softer than KK in the T mobile or related to this the amount is 0.73 doing yen. So they're putting these two together HM 2.82, do again, but the majority is our prepaid for where the can.

Directly related to Alibaba.

But what he said come on to these two.

Is that there this year.

As the their target of this that transaction Oh, Dear to Softbank, though there will be a this is no recourse to soak to bank group So no more.

Obligation beyond.

This amount we received so deal wins it and then comes in a few years time.

We.

Oh, yes.

And what do we have to do it isn't just a transfer the.

Imbalance equivalent.

To the transaction from both and then they could the value of holding so yeah. There was no obligation beyond this amount over settlement in this kind of the transaction is go the pneumococcus.

And we have no no obligation beyond this amount it is no recourse to us so net debt.

And I said to me the buddies above the E assets, India, They actually deeley hold.

So the a 2.12 Union 0.7, so altogether 2.8 studio yen.

We deduct this amount from a assets as well as from our liabilities. So that is the correct the way to handle our net debt or.

200.

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Equity value of holding so this graph shows this idea.

So as the end of Oh, a much this year.

I think atrium is the total amount of the.

Equity so the U.S. and non strategic R&D or this is yes. So we have idea Bubba and sprint.

And also feel we have strategic.

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Yes, the essential to a business and the representative.

Entity here is the telecom company.

And then we have I'm and others like a vision fund Softbank they don't find.

Most of them.

And then ill be happy and the.

Probably kabaddi or the at the value based upon the listing so that leaves US do the total amount about 28 studio games and the 6.3 is the.

The portion so yeah, we show deducted. This 6.3, so that we.

Great the shareholder value of 21.72 Union I repeat the SEC regulation again, and again, so Amy I shall refrain from I explained this once again, but the.

Equity holding equity burden lists netted it gives us.

The shareholder value at the end up much.

So this is though.

Conservation.

Backed financing so their financing only based upon the at the body of this year, India. This calculation is with conservation of debt financing.

No as of the is it themselves Olga today as compared to the into March.

As of today.

28, what they used to be 28, 20 and increased up to 30.22 young and the net debt decreased from 6.3 to 5.8, Judy again. So did I think is 5.82 medium gives us a 24.4 trillion again, so 2.7 tweeting again increase from the end of much.

As I have been saying.

Operating income or net income rather than.

These are indicators.

Well the how much.

The value increase it to the English that I believe this is more important indicated to us.

So in that sense 2.72 union that he's the increase in the shareholder value and this is the only in the most important indicates to us.

So the two number or the about grabs by at least conservation of asset backed financing no without consideration of the assist the backed financing.

No just d. as of today it up as of August, but the a if we apply the same idea to the end up much.

Oh, the a there we'll see as its financing all but 1.42 young so the a 1.73 young Shelby deducted.

And from a they accretive idea of holding and also note that India. The shareholder value 21.72 Union in the previous US like analysts are getting me on this slide shareholder buddies ease that 21.72 medium. So this means that the a with or without the conservation of asset backed went missing.

That's not influenced or they affect the number or the value of shareholder buddies no as of today.

I said financing is 2.82 young yen, so deducting gets amount from the equity badu, as well as and that debt and the shareholder value remains.

At the same level.

24.4 Tweedy again.

So I said financing from now on.

We are going to deduct nisa asset backed financing portion and to make this report simpler.

So as of today.

Net debt.

It's a threed with you again without conservation of asset backed financing and the 27.5, it really again for the a buddy of this year.

27 point.

Oh, Yes, we do you again for the and it did and I couldn't get 7.8.

Preview. So they are these other two numbers I want you to remember in the a in terms of the percentage of these too.

So the 24.4, which is still the bonus.

This is the most important a number which is the show what their bodies.

27.5 between deal Yang of asset.

And how much can be a niche that do we have so do you what is the percentage of these to be a net debt and equity ups, you're holding it is 11%.

So, let's say you have.

Then getting in other bank account that and maybe your exit that to happen and that you may have been the 11% the borrowing which is above the one me doing yen.

You may have older alone or some other types of by borrowing.

So the I guess to attend media again about it well media yen upped it ought to do simple medium again.

Assets against.

That above three doing yen, so that is about 10% the borrowing.

And I'm sure well the at that level of debt is quite down the unsettling and that makes people a little uncertain and nervous so usually that's supposed to bank group, 25% is the liberal that we.

It was always like to achieve as the the main thing at the upper limit, giving de novo period and even during the so called abnormal periods when the N D E. The stock market experienced the sudden drop and the yes, yeah prices dropped quite sharply even such a balloon.

Well the times well the yeah, we still maintain the upper threshold up 35% for LTV. So the this is the policy for the.

Sound management.

And even under the influence of a Corbett 19, though the or we will never make excuses, we want to make our financing healthy so that we will never make the excuse.

Saying that we may exceed 35%. So the yeah, we will always maintain this upper limit and the threshold and.

Against the four point.

The five to do you again, yeah, we already made the poulos above 4.32 yen monetization so under the ABL no more times the emergency environment. They try to remain defensive meaning that they are we would like to do that cash and we.

Well the our intention is to always take those are the cautious N D. A defensive actions to build up the cash we don't know whether the second wave, but third wave of covet 19, a me she does in the future, but the Oh, we can overcome this sometime in the future.

Yeah, we maybe able to come up we see the vaccination and the anti bodies and so until all these vaccination will be available to older people, we should the winning careful and cautious and always I try to manage our finance so that the we can maintain dissent low level all the LTV. So they are we supposed to bank will be a hooked up.

Group on a defensive posture at the time of the them.

The animal things certainly yeah, we.

The sometime and so we are adventurous and the taking risks, but even at the time about global financial crisis, I Lehman crisis and the other corporate 19, well then me a situation is a quite down the unstable, we only Sunday I try to.

The 10 cautious and conservative and that is the attitude do we like to take once again.

This thing so hoping fyfe Tweedy Union monetization.

If that is what we had to do.

Both the 27, two young or the 30 Treaty I'm glad you see a D. Buddy Opus, you're holding we have and we are talking about but these are the people again in other words the numbers on the paper and sometimes study some people quit as I said, if we try to sell then the device used to be crash. So the.

He some people may say that the these a buddy was I just the fictitious just the numbers reading on the paper then do you know what do I do they think about the people money incumbency Oh, they they always on the have the same glad you asked the at the body was that India will take a different ships, but if he tried to sale.

According then often people criticized that they are the into buddies crush and via the value that we have the is that people, but I do expect to Lisa.

So when you see the performance.

Our Eva.

So we mentioned the monetization ore body by Bashir and starting from April we've been executing that.

And.

For the monetization or.

Do you ever Bashir did it really dropped and as you can see from this graph on your left.

Even after the monetization program did you see any drop of shares.

Actually it's not.

T mobile shira.

We announced our sales of shares did it really dropped it's not really happening.

Softbank Corp, Telecom business, we announced to sell a portion of shares actually stays very study.

And stable.

So on the other call with 19 situation.

I said body or above all group is actually increasing.

So even though we monetize those assets.

It's a so that the even we sell or monetize.

And though we have already execute the up to 4.32 Union.

Still.

It's not really decreasing the loss, it's fun to you, but showing the increase enough its value.

One another announcement that the where he made at the time of 4.5.

Sure Union program.

And the purpose of abuse for that monetization, we have to object a one if the share buyback the other words D improvement of financials.

So share repurchase 2.5 June Union, we have announced a new spend about four months. So far we have already executed one to the on yen so far.

So this already being completed we'd be many 1.5 Jude union this to be executed going forward, but.

I don't want to be called US later on so I would like to make show here that.

At the time of shareholders meeting about though let me repeat one so again, that's remaining 1.5, but you do union and we will definitely do that so in total 2.5 chewed Union separate purchase we will definitely do that when whenever we make any commitment we watch she'd be as I mentioned in the beginning of this presents.

However, when it comes to the timing for completion of this program.

We.

Do we really complete really by the end of April next year. He meant in March it maybe Jim It may be September.

So.

We don't want to fit the final date to complete this target, but rather.

[music].

Sometime in near future that well you like to complete so when he comes to the.

Timing for completion, the where you would like to be a little bit flexible here.

Which is actually good for both Softbank and shareholders for our defense.

Well of course.

Next month for example, if we have a big exposure an uptick on the wave of Corbett 19.

Then we may need to rush and accelerate the program of share buyback.

Or if if we see that come down of situation in equity market.

And not being unstable anymore, then we may want to be flexible.

Oh, keeping some cash on hand, a little bit and dealer while also depending on the situation that the we want to be a little bit flexibility here, but of course 2.5 chewed Union if some.

It's something that we will definitely be achieved.

Sometime around next year are not too far away from what we have said before and.

Since we transformed to investment company.

Many people or are questioning about dollar shareholder study.

And with that.

[music].

Comments or feedback that we being.

Trying to be open about some of the parts value in corporate website and actually we are doing a daily basis. However.

Although we don't phones funds, our investments hub progressed and a number of private companies are increasing the gain and loss of private companies reevaluate it up every quarter and also result.

It may mislead the investors.

So we.

I'd like to disclose.

And update.

Timing of quarterly earnings announcement for this shareholder value going forward.

So instead of baby.

Disclosure like last time.

Huh.

When we had talked about we work or wild are those portfolio companies.

But.

Sometimes at the show a big loss in a us it further in quota they basis.

So.

We don't as a result want to.

Mislead or the investors by providing such a disclosure of they bases and we'd be in pointed out by the experts are so that this time, we have decided to.

This close on quarterly basis by it after the audit does audit.

And then make showed that the we have more accurate.

Numbers.

So we will stop disclosing in daily basis. So this is the changes that we have we are making.

So the I also like to share about the state of assets and I like to pick up the highlights the biggest one is Ali Baba.

As I mentioned are there.

Oh said, we hold is a paid by again.

[music].

In many people say that this is only on book. However, when you look at the performance of body Bubba is making steady.

Exponential a show an increase and even with the size of the business. They are making 35% increasing total revenue net income.

Decides the business saving making a 42% increase.

And making a very steady an exponential increase.

So a two point $19 billion.

You see that our share price of body by but it's not the bubble at all.

From my perspective, so they are making barrier stayed steady steps in net income free cash flow.

And the value has been created based on those results.

Second highlight.

It's a softbank scope or them, our domestic telecom business.

And they are separately this it and under the coffee 19 C.J. show many companies are facing with degrees in sales and revenue.

Our domestic telecom, it's actually increasing or maintaining its steady growth in revenue.

Operating income is actually he recording a its highest outbreak thinking some ever so without any excuse Ah that's always the score of Kobe 19 situation.

See you want me some yeah with GE has also announced to make sure that that they can increase in revenue and self.

Third highlights a is.

With $32 billion.

Well, Yes Korea this company about four years ago.

As of today, we Softbank group owns 75% and 25% is held by Softbank beyond fund.

Based on the investors it'll be a request that the 35% saw helped by visa funds in total of those too we have hundred percent in every Sunday the media is covering some because that's the banking.

2023.

We are planning to read.

The this thing so he was originally elicit company and the read this thing it's not that a difficult actually however are of course need to make a good.

Performance and also collecting a initial cost.

And that really listing is something that the we have.

Scheduled to react we listing so that's a sum.

Interest ore bodies company.

I was on the one of the option that the we made a study will you guys study you explore or the option upsetting apart or some awful of the company of course, another option is to bring Ford or the timing of IPO or this company.

So did that is another option that we can have so are we would like to closely study e. The best option of course, it's also a aptitude or the count up on that Phil So about a week back to export opportunities or options that though we should be choosing us on the best option.

Uh huh.

Along with that.

I O T service business service group has been spun off.

And.

The original plan.

Oh.

It's to focus on the original business or arms. So that's a wee arm has been.

Building because its plan.

So are the Bubba Softbank Corp, and those are the three main highlights in the fourth one is sprint.

At the time up a condition of company. We bought it was 2.5 trade union, but that's our strategy.

A number three players so number four players in the market and the evenly by this company a far behind those are big to pay us.

And that's only suffer so if we to enter into U.S. market.

Are we.

Wanted to.

Much those two companies between sprint and T mobile and we to become the shareholder that that was a big picture Big strategy.

To enter into years markets.

That was original plan and policy. However, after the coalition of this company was two point Fived Union, but then we didn't have that much money, but our Missouri. So that the majority of that is coming from the debt. So we use our cash position of thereby unfortunately union for this condition.

And that time.

Our cash that they used on the other pieces endpoint for trade unions are right after.

The announcement of this much Oh God condition actual share price of thought about group has dropped dramatically because we may need a consistent was done through that but at the same time after that condition. We had a very challenging moments to turned around the business of sprint so because of that.

Negative numbers and also big debt in sprint so.

Not only I wanted to fall down collision of sprint, but also spent itself also had a lot of dead on their book So actually it was a double gallons of that it. So that's concerned I understand that many people more concerned about the situation, but as you already know that the I'll just say pro.

We.

Happily able to received approval by the rig that we send a body has increased so that.

Sure about the of the new cost.

By Recalculating.

A lot.

0.4 trillion yen has increased to 1.9 should you again in total body has increased to 3.6 trillion yeah.

So oh the agreed devalued 0.4 became 1.9, so it's about five times.

Many he then you look at the many investments companies around the world.

In IR, our it's about 25%.

Compound.

Increase I every year.

Other than the record wise I believe not bad at all.

So for many investors point of view, 25%.

Our our.

When compounds.

It's.

Quite a good performance as a matter of fact and I believe this was as a result, one of that a good investments a bowers as well.

We have made initial investments in their business.

What about it will be.

I believe.

Investment in.

As being a great one.

And that's something that will you like to make it happen.

The next visual fund.

So we invested in 86 companies in among 86, there are successful companies and the other well not.

29 companies turned out to be successful well the Uh huh.

One point to one trade union in terms of the valuation gain in 0.72 in Union in terms of the realized gain when it comes the variation it is not up to us to evaluate that we are indeed, we have about L. P sand, the who are investors and the from these interest us.

The us.

GP.

Well the Softbank visual fund lets the performance of this fund, though they scrutinize N D. A study the performance of the fund so the yeah. We are.

Subject to their review and also the I've heard the party.

Variation institution also gives us the valuation in that so the a their valuation gains is calculated at 1.1, Tweedy again thinking and companies and realize gains.

Seven to your yen and when it comes to the evaluation valuation loss.

1.5 billion yen.

In the 48 companies generated incur that these losses so the yeah.

The thought though is here in the defense D. N. Between these two is point to the Tweedy again, which is the.

Investment.

And I'd like to give you more detailed explanation so out of 86 companies that to be in this at the end eight companies.

They said no they used to be unlisted when the industry initially, but then in the coming during the past few years. They got at least at eight companies. So together and 9.9 point 5 billion that we'll see.

The company total Buddy.

It was a 9.5 billion.

And the increased to.

12.7.

Some of them tend to negative net increase but they are looking at the Oh the whole total.

But you are producing listed companies the a into the original investment among the was 9.5.

Beauty and then when you find that median data and the 3.1 medium.

The increase so 1.3 times increase.

It's a couple of months as of the end of June.

No.

Looking at the since Oh best performance.

How about the performance so between the end of June.

Ooh dozens of the oldest actually another company got Alistair.

Hey, therapeutics and delight the blue color indicated here, but at least at the in July. So if we add this company ended their bodies.

$1.1 billion. So that is the increment increased in the value additional buddy.

That's the American, but you 1.1 video so.

Holding Oh, I mentioned that the increase was a 3 billion, but the the increase increment.

Well the increased up to 4.6 in the idea I mentioned that the increase.

Well, that's a 1.3 times, but as of today increases 1.5 times.

So this is the performance about Softbank vision funds.

In terms of the bad breath.

Well the 8.92 billion in Asia at the end of June <unk>.

<unk> agreement, though the investment amount and D. and many of them Oh listed but the I want to Union portion. This is the listed company pot.

And also cumulative but the gross gain of listed company is appointed feet with young.

The cumulative gross loss over public companies is.

Minus a 0.1 treaty again.

So the a point too because appointed me list pulling to one is appointed two so this is the.

Valuation gain of a vision fund and ASIL D. Tens of August. So 0.3 0.1. These the game and the Lewis in June and no. It has increased to these numbers 0.52 young as of the tense about August studies.

Yeah go skiing in the gross loss is point minus 1.1 trillion.

So.

As for the year Softbank Vision fund.

Performance is improving.

So the I hope you understand this many people say the original fund ease up in the total LOE Sunday Baidu has there been reduce it to one half that is what many people used to say, but in reality 0.5 lists 0.1 trillion meeting that point the 1.42.

Yes that is the increased in the bodies of the.

The holding about vision fund and on the 60 sub July This company got listed we they said acoustics.

Oh, the yeah, we have about 52% of this company we are the largest down the holder of this company. So they are there any systems boom and drug discovery process to protein motion and am I in the too.

I'd say cancer drugs for human usage.

The F C and D. Clinical study has always keeping started.

This company.

Not yet generating profit batteries d., so to cancer drugs, they already into the into the clinical.

Oh study phase.

For the attune cancer drugs, and the 1.5 years ago.

We invested.

Okay to BT again, and it has grown up to 110 23 be again 3.8 times in the increase in Beijing.

So I happened to a few.

Michael Oh, the how many people didn't lose about where they therapeutics did their softbank Oh a company like this so that was the level of understanding about this company with it a few things but no.

Oh, the a investment among increase from a 32 BT again 210, 23 media again a value in this company increased by 3.8 times.

So this is the most recent the at the company that I got listed among all the portfolio companies of the Softbank Vision fund so including all these companies.

In the faster too yes.

And the a one quota.

So to a nine quotas what would the eye.

I'd like to show you the performance of additional funds. So starting from the other scored the 20 Eighteentwo first quick.

The Eattwenty 19, they remained positive but last year it down to post the close it.

But as of today, it has weakened and it turned around.

296.6 video again of the valuation gain was a generally did you say you listed company added to the list.

So of course this is not perfect because the second the way above the corporate 19.

And then it is not over yet.

So it is not that we can guarantee that the this Sunday performance of a vision fund will remain in positive the profitability.

I can say, so, but yes, it is getting better and Rick recovering and be a five to six companies on the portfolio. They already started making preparations for the upcoming list Inc. So they are this means that the Buffalo myself that sort of bank of Beijing found is improving.

There are other topics that I like to talk about which is outside of the substantially on fund. This is nothing additional fund, but this is what well Dsos Banco group interested in about the Turkey ABT again, it has gone up to about a 90 billion. This isn't a company called lemonade. The multiple is that 2.6.

On time, so as of today.

Then sell bogus. This is the number most the recent number in the recently the second up to light.

Well, the where they therapeutics that I mentioned the idea and the eliminated this company both of them.

Well the I went ahead with IP Oh in July.

Quite recently.

And the performance of this company a and also the the body of this company increased by 2.7 times. So this is up a four months about study our investment in the this and this is another announcement I'd like to make this is about establishment of investment the management subsidiary I have been talking about the monetize it.

On a before going to fight between the yen or even more than 4.5. Today again, we have visibility that we'll be able to achieve that liberal or monetization know how about the Allah borrowings.

But the Kelly corporate debt corporate bond.

We already issued corporate bonds.

And Oh by the sudden Oh, the redemption, we will not come immediately so the a in next year. The after that in five years six years. So these that corporate bonds will be redeemed in the future.

In the meantime.

We will have excess cash.

So if the bank group.

Well, we are going to see the excess cash.

We borrow money and we deposit money and they are both there would be a it time from now on when we have been the books of the study a envious of our liquidity. So the I missed the Goto pizza I keep us additional comments I if it is adequate.

So there how much is illegal Oklahoma city debone the debentures.

160 billion Boe, D. and that well against the 200 billion for the domestic bonds and 400 500 to be doing in that he's D and the magnitude of the redemption or the size of the issued corporate bonds.

The.

Prepayment or the a we go to the market to purchase the these bonds from the market, but if we try to do so.

The the investor So one to keep their bondholders Inc.

So.

We are 22 by as much as possible.

From the market.

You know that do reduce the unit the debt.

If on the redemption doesn't come immediately then there would be a remaining corporate bonds, but at the same time, we have to catch kept at the bank.

And.

At the same 10 idea I talked about 11% LTV and for the cash and liquidity visual fund. The yeah. We will go ahead with the investment.

In D.S. Softbank ambition fund.

And there are other listed companies.

We saw a highly liquid down the publicly listed stocks. So we hope to start the management of the sound the resources liquidity I see a testing purpose 30 issues, but to get the AG related companies.

With a high level of liquidity.

Amazon Apple.

Facebook.

So these are the names.

Generally recognized the widely.

Hi, how many people these are highly liquid.

Names that we can still be quite easily in the market. So the yeah. We are.

Purchasing these issues. So we purchase I directly from the market, which is that depicting basement and in addition to that.

The minimize the risk.

We use.

They do that Dave that transaction so smell.

And I guess the volatility in the market, we hope to hedge the risk so to give you some idea or the in age if you remember two to three years ago.

Nvidia.

So the yeah, we had 100 billion yen Wes above the equivalent of a Nvidia shift back then and then share price increased.

Significantly and we enjoyed.

Yeah, I realized gain and when we have the unrealized gain.

Oh, we both the put as a derivative from the market. So at that system price well, we purchased the right to mow the S too.

At the outset in price and so the a boat the put in there so the colo.

So that.

To fix the I realize study gains.

And the by sitting the coal.

We enhanced the efficiency of the the capital.

And.

In the end, we actually enjoyed the real nice that getting above hundreds of billions of yen well at the time that there was a year commotion or the the the story about the bitcoin Nvidia share searched in and then dipped no. It became almost stayed stable.

And the no Softbank you made the so much oney unless the game of Nvidia, but the it dipped to once again it was just a pie in the sky.

Many people's it so how would the actually beat the boot the a foot.

Okay.

Oh the of the book the security.

I.

Minimize the decrease in the value. So yes. Some people said that the yeah that was the way smooth to use that there's nothing in order to.

Fix the buddies that we can enjoy so that is the image of the dairy, but if that we would like to.

Continue to implement in addition to direct investment we would like to use the derivatives in order to fix the bodies, which is a still unrealized.

And by using derivative product without spending much amount of money, we will be able to minimize the risk and the proceed with the investment so that he said type of activities, we would like to promote.

I suppose this accompany the investment management subsidiary the purpose is to manage the excess cash in the diversification of assets idea I talked about the Alibaba Softbank KK into T mobile.

We have bus yes in these companies.

No we have become de emphasizing company and a decent just that we names.

And.

It is not the a diversified yet sufficiently having only three main.

Investment company some portfolio in the supplement we open received from the analysts or the industry. So we need to diversify more with good data so as so we announced.

Oh, Yeah, we will conduct asset backed financing you know that the monetize some of the assets.

Future growth Oh, the it is not that we do not trust the future growth of these companies. Most recently for example.

I'd Bubba coal.

We both agree about buckle recently.

Including these activities. We will go ahead with the monetization, but yeah, we buy call option that's though.

So that.

We remain confident for the future growth.

But yeah.

Especially on the back.

In the managing excess cash. So these are the purpose.

Oh this I knew subsidiary Andy and they kept the investment on the 555 media and give US another shareholding took the bank group has done the.

To assess and I myself.

The one third of these the investment of managing management company, but what do you usually the asset manager received the contingent fee.

But.

Well I'm not the.

During this STR, they corporate that they manager, but the as an investor we.

I'd like to see the incentive.

Well take the risk on the I want.

The well I don't think it is a good idea to just a one to the contingency fee without taking risk. So the out of the kept the investment or the I.

Take a one third of that shareholding undertake risk by myself and established is saying dismissed management subsidiary so the.

If I well this company become successful then the I will be able to get via the gain out of the successful results of this investment the management company and one third of that and I continue.

Managing Softbank group so.

Oh, the Oh of course, and I have to be mindful about the conflicts of interest. So at the board meeting and also the I disclose everything to the board Acevedo, a study and the or the comedy and without spending one third and then they I.

Is it better to ask the asset manager to handle everything HM might be hub or is it better.

I will be more engaged in the actual investment management pull one third of this company. So together with the outside to make that so we had the discussion which is better and actually the to the shareholders and the benefit of the showed us up Softbank Oh. This format is most Uh huh.

The board and the beneficial to the investors and the shareholder so bus of tobacco. So the highly liquid down the shifts like a cash. So there that is the main focus of this a investment the company about 30 companies altogether for testing experimental purposes Sunday, Yeah, we already started investing aimed at energy names.

So this is the outlying Oh this oh I know some and so no I'd like to give you the conclusion office.

So we need to be have a good the defense and that means sandy to have sufficient cash. So the out about 4.5 to the union, we already achieved monetization of 4.3 tweaking yen.

In three months time, and Oh, a shahada well they agree devalued Oh the a.

24.4 Treaty again is the its current.

Asia, where their budgets.

The Softbank, Michael Kim is a 13 trade Union also so in that sense.

Both to the Sasha what about you.

Well, what do we see a discount the says shareholder value.

Share price.

Well it seems T.N. dotcom bubble of Ah.

Yes 2000.

Well the sees them both the share price has come up to the high level, but still the east discount that.

And the netted it has been decreased to three to deal yet so sofa. Both young people had concerns about softbank first to concern is that the a we have excess debt. If it's a deficit. This big India. So if the bank on the vision fund and also a decline in equity Buddy.

Oh holdings. These other three main concerns people have.

About the bank, but in reality.

Really D is like this so we had been able to reduce our net debt by 1.6, we do again it has come down to just the three.

Treaty again, 11% upped the ante ethics and the into finance became more.

He was here in the phone and Dsos and then collision fun turns around no he became profitable and as of the end of a much. It was yeah totally rent in the deficit, but the turnaround has already started.

And if that's the point is a show whether Buddy which is the most important that indicate that the show the budget for the shareholders into 2.72, you know again increased from the end up much in just four months a.

Time period.

When treating again increased pool in the value for the shareholders looking just at this from a much longer perspective, it looks like this since our listing of the company who recently.

Our shareholder value has been on the increase SCUSA fleet.

In exponentially the body shareholder value increased like this.

So to maximize the show who their bodies.

That is the main focus Oh bust and we became the investment company Softbank Cooperative Group Corporation, and we'd like to systems and other capability to defend ourselves.

Well it is not for the Oh, the purpose of about the im putting money getting oh.

Our aim is to make sleep on people happy through information.

Evolution information, we evolution happiness for every well it'd be one so the yeah. We acquired the company Sac N D. A group grew them and also as the a food vishal infant really became the onus and hold us, although many companies and businesses and no. So on that this thing and the expanded Minto basis.

We started being dismissed the management company. So the information Revolution that is what we would like to initiate their lead us and entrepreneurs who are on the closing in creating the information we evolution and the we are.

They are putting them together in a group and the lead their information we evolution so that.

Reset combined to force just like the conductor open orchestra, we are promoting information of evolution.

So did you sell cooperate to could also be we have never change, though a cooper philosophy and live we never changed this since the inception, although company. This is the purpose.

Okay system company and with this in mind I founded this company and the without changing too. So basic philosophy I would like to promote the business and open as shown on this company. In this concludes my presentation. Thank you very much for your attention Anthony I always like to welcome your questions.

Now we go back to open for questions.

If you have any questions.

These proceeds raised hamed buttons and wait for your time.

If you like to withdraw your question. Please press lore him bottom.

To avoid any echoing.

Oh, please refrain from connecting to other lives stream, if you wish to make any questions.

Well you would like to take a up to one question per person. So that we can take questions from as many people as possible.

The first.

Mr Fan from router, so we would like to take your questions or please on mute yourself and my question. Thank you.

Do you think it's Ron risk.

Increasing the image of Softbank is being opaque and difficult BOLI or less transparency around numbers.

Yes. Thank you very much for your questions several times in the past.

For example, if our lead by Bhatia bother increased Oh gosh that volume decreased both of them are listed company. Both of them. We are just minority shareholders.

However, it was about share price increase then operating income in Greece.

And the Ali Baba share price increase about that spread income does not increase.

So this is a material.

We are not don't bridging about the why we need to show the operating income we are the investment company.

We are not Oh doing operationally, we just making our investments so sales operating income those measure is not really picked to a major our companies are starting from this fiscal year we.

Dropped.

Of course.

Tax income.

Those are from the disclosure regulation on point of view that the we will disclose my based cutting itself and net income.

Operating income that's not really makes sense, our thoughts on investment company from my understanding net income.

So it style block of onetime gain any onetime lost and.

Even that we see the increasing new about share price already by by surprise, but we would like to focus on the shareholder value.

Lists a I'll say the value that's the only E Korea, a indicate that two major our company and business. So that's the only one major that there will be using going forward.

Of course from the regulations point of view that the we need to disclose that the net sales and a net income movie continuously disclosed.

I got the only thing that's that.

Thank you very much.

No we like to take that question from missed the old stuff from Nikkei D.

You can ask a question so please UN mute yourself.

Thank you can you hear me yes.

[noise] I'd like to asking about the business model up on.

This may be a fundamental question, but the shipment of chip is increasing continuously explicitly from Iran. That's what you have shown that to sue.

It's not increasing exponentially.

Why is it.

And what makes the and its suicide grew exponentially as Phil if so theyll when can we expect the exponential growth in itself. So I'd like to invite your views about the.

Future a bomb.

Oh net sales in the a income what contributes to their performance is a shipment oh the chip for smartphone application. So both in terms of sales and the profit.

No the a they E.

<unk> chip for smartphone is the most important driver and they passed the one to two yes technology to fight for GE.

Yeah.

Will be a replacement from a fourg to Fiveg knows the time update a transition of the technology and also know most of the people have been smartphones. So to your shipment, though the chips. So it'd be useful smartphone application, that's being a decreasing and that is the reason why he.

Then itself so the sales up of homeless wasn't exponential, but they are they bought in the <unk>. The shipment of Bundy chips, the increased coal I O T application or for other applications. The chips for these purposes applications increased in the podium what number.

And most recently filed the GE smartphones.

Being launched two of them like it and being so the more.

And the unit price.

Oh about the upper chip is a lot Ya full five Gi and the profit contribution you so solid yet.

For and their twinkie Twentys resetting from Twentytwenty three.

Virtual nine.

Chip.

So that is the new generation of 'em chips.

To be introduced to enter the sold to the market.

So over the many companies.

Hi, I'm already.

<unk> assigned a licensee NDS thought that that designing their products for.

That the generation so once that the production starts well the Oh, we expected the but the full fledged to put a they production of that the generation two stuff in the Twentytwenty too and then Twentytwenty three.

Exponentially.

Virgil nothing.

Chips will be shipped and.

Well the Arista divergent security function a function will be open minded enhanced so completely de <unk> computing power it will be.

Hi, yes as well.

So the a this is Steve version that will be more profitable. So originally both the a tightening folio listing what was the sit at the Twentytwenty three and the this is a factor.

That that justifies that timing and another the gross driver is done.

Claims related to business unless only eight up U.S. is the logistically up and Amazon It up it is their cloud service.

They thought that the design.

Well the Oh, no recently, you know that too well they use the chips and the other companies Oh. So following suit. It is a more the EBITDA in terms of the Apollo consumption and efficiency. So they cloud the chips will replace other chips and the or the autonomous.

There are driving the a will be introduced those costs will be driven autonomously. So for these new technologies when we.

Acquired this company will de those aren't they chipset <unk> didn't have much I get share, but no. It has grown to almost done the 8% of the market. The day buckets share is expected to expand and grow in the future. So that's another growth driver. So the badu is expected to grow.

No further full so both in terms of the defense and offense.

Oh, the we how about the a different that within is it didn't send auctions about.

So there you tend to put 63 today today, you see a birthday and there's some people ask to the a they have condition and the are you mentioned that the you made a stay at the helm of this company owned the even beyond the 70 years of age. So the this does this mean that the yugo the a change to your.

Yes on the other commented that the you will we tell Ya HFT well the let's see what are the I wasn't sure about the of the hills, although the M.D. I mean, we tell ya both the when his condition, it's not good but the Oh the I My life a is the only for 50 years studies, what I expect that.

The age about 19, Oh, that's the business our life the about the bucking when I was a 19 years of H., but no yeah. The medicine is getting better and the people are living longer today.

And the I play golf sometimes.

And the last Thea in the summertime well the I played down the pipe both meantime, Nastia and I was confused that I was Sunday and de fit enough and he'll be enough. So.

Oh, the I well the I.E., Andy I wanted to mention now that the I like to remain in the business and even beyond the 50 years of age and that is what I wanted to say.

Thank you very much.

Next question.

Mr. they go up from the gay unused space, but please UN mute yourself and start your question. Yes. My name is exhausted from he can you speak up.

Oh.

So strategic position a bomb and that they would like does skew Oh here you mentioned that they you may consider or the option can be selling all hold them ownership. But then you are a east strategy. I believe this is one of the important the company main keep a holding this share is it.

It's not there must option for you anymore.

Other than Nvidia.

Do you have many candidate or counterparts for negotiation for this.

For the name of the company for the negotiation I have no comments to that.

So I don't referred to any company name, but the I would say we are having a negotiation.

And within this negotiation.

There are several range.

For that but the basic idea is.

Not a selling hall.

In cash.

But.

Consideration candy.

Many way well many combinations. So it's not that simple cells, so anything but that will you would like to.

Continuously pursue the vision.

On the one of our option too.

Thank you.

Yeah.

So long hold.

It's not the option anymore for you.

Going public is one of the option.

Partial sale phase one of the option.

Selling and hall.

Or up.

Whatever it is that's a one of the option that's well.

And.

That does consideration option, if the combination of cashin share.

The when he comes through the counterpart.

I don't.

Many times at this moment I have no comment to that at this moment.

Thank you I got the only thing.

Thank you very much.

[laughter].

You said you got from a Bloomberg you can ask a question Oh, Please UN mute and the please ask your question.

Thank you very much this is hugo thrown up Bloomberg. Thank you very much for this opportunity 1.3 tweaking in open it income net profit.

So is this sustainable.

Oh sustainable or will they be that's my question well according to your presentation.

Yeah almost on the although then consists of about one time factor like on the asset sale Seville us the below the deduction of the text and the vision fund the too it's not the very active and that they may be a then it to the listing on the E O <unk>.

Companies have I wish ambition fund one so do you know what I believe that the you need another D. E. Gross opportunity now uses them say you asked a chain attention I dibaba share something some people say a voice their concern over the future of I'd Love US, yes, so I missed the phone.

Hello.

Well the eat what do you see a view regarding the sustainability of your profit.

Your next thing.

Yes.

Beyond the two.

We use our own fund.

Two separately.

Yeah actually continuing investment.

Individuals on the two we already invested in 10 companies altogether.

And the in the pipeline.

Uh huh.

Several companies already in the pipeline interesting companies emerging and they're in the pipeline.

Oh, a buck India Docomo bubble.

Well the they crushed the in the 2000 and the people across the world well very critical investing in the internet or they I T well deal with it supposed to be up a good very bad idea, how would that be defend that our position and the we invest it.

A limited amount of my money in some of these I'd companies and they want them once I'd Bubba and some others. So once again, the a unicorn bubble.

The people [noise].

Well, it's something that says Sunday in media, Yeah fed up with the idea about investing in unique one and it maybe because of the screen incidence we stick with it 19 pandemic, but there is a digital transformation is possible well industries that traditional industries.

Can introduce some more distill acquisitions by using a well attended the or due to deepen they make all the club 19, both the a that trend may accelerate even further.

So my belief in my idea, we remain solid and unchanged so by using Softbank. Some money we are continuing investment in the yourself the bank on the digital Fanta too.

But as I mentioned at the beginning of a crystal ball, we have to defend our position we need to be on a defensive and then at the same thing prepare for the next round of a gross.

So the idea I Oh, the I showed you that picture is about the old to worry us some de listed guns someday protected by the shield, but they are they on the E collected as many fire arms as possible to defend and also the take on the offensive.

Movements. So the it may not be a a big amount of money, but do we like to aren't very good companies on the up with what you did I answer your question next please.

Ah due to the time constraint, we would like to indecision after taking disks question.

Mr hooked up revenue getting his feet.

Please on mute and start your question.

Yes. This is hooked up Romney getting newspaper can you hear me okay. Yes.

I have one question.

Oh, Yeah, you mentioned about the investment management company you mentioned.

Under such circumstances, and you try to expand stuff that targets of the investment.

In the depending on the economy.

Situation.

Because you're focused on the unique on investment from.

For the your investment policy by exists to actually divides your investment policy not only investing in our unique on.

In the that's gonna be difficult to find a good opportunity because of this circumstance or is there anything else.

Basic obviously doesn't change.

You don't funds.

I will be keep.

Looking for all Unicom hunting and a I'd be jump on two and three that the obese stays the same but this time this investment management subsidiary because he has got close to a high liquidity a investments and also.

Oh, we have.

Sold or some that are those we have projects up the end of June so that the weekend with frequently.

How about Strom, how about transactions Ah you know quite does show a Tom so it's quite similar to the bank our deposit but that's quite.

Flexible in terms of liquidating and that has been very fight as well, so considering going with that I believe the management above our money.

And also a mid to long Tom information on Revolution.

Yeah, I sent us companies.

And I listed securities.

Our some are also the important in times of such information Revolutions, then we would like to expand our targets from that says but at the same time.

The company or business should be focused on the informational revolution. So that's always a domain strategy and also we are the most familiar with such a area and we have about corporate it feed off of the in there. That's why that would you like to focus on such philosophy.

So is this Colgate 19. This is not the onetime kind of by measurement, but are you going to manage this company for me to long term, yes, that's correct. Thank you.

Thank you very much at this concludes Softbank group called earnings results announcement call. It three month period ended June Thirtyth Twentytwenty.

That would be there stage of this meeting will be this distributed our on demand from a corporate website.

Thank you very much again for joining the first one group GAAP earnings results announcement for the three month period ended June Thirtyth Twentytwenty.