Q3 2021 SoftBank Group Corp Earnings Presentation

You'll see a need to go talk about director and CFO.

Yeah.

Okay.

Kind of walking me, whether corporate officers senior Vice President and head of accounting unit.

Today's announcement is lead broadcast over the Internet.

Nobody would like to invite Mr son, Chairman and CEO to present, you the earnings results on a and business overview.

And he starts on please.

[noise] My name is son from Softbank group. Thank you very much for joining today.

So right now.

Amongst the world.

We are.

Offering from this.

Very difficult stage with pandemic.

And then we haven't.

So the peak it actually that so many people are facing difficult it is challenging.

And also.

Maybe go what goes on.

We're working very hard worldwide.

But last summer and also fall.

And also this fall.

I believe that the situation will change quite dramatically.

About the same time last year.

It was just the beginning of pandemic, we didn't really know what the COVID-19 is but they much in April.

We start understanding that this can be this could be quite.

A big thing.

Softbank group.

Around March timeframe last year, we thought that this was quite an emergency.

Status not only for the world, but also for the company so that we need to be defensive.

And I predict from any attack. So that's why I like the way he became a completely defensive mode in the AR announced to raise a $4 five trillion yen.

By monetizing our own assets. So that we can have a very strong defensive status, which was announced last month and as a matter of fact for five Judy on your on monetization.

Has already achieved an upset that we over achieved and the many people told me that they use so too much of your assets. So some people concerned and I'm worried that the we saw too much and monetize too much.

I imagine that no. So use the example of a defensive mode at the earnings results I.

This is to make sure and be a solid defense for any attack.

But there are in between.

There are many.

Other attacks other majors are coming in so that.

Not only to avoid Daniel talked about those are from inside that the way you set the defensive mode.

We can actually attack not on the defense.

So offense and defense, even on something that I was.

<unk> back then and.

I actually was in the was looking on this vision fund two operations, but.

If you don't find one at the latter half of vision fund, one, especially the I B O bupa.

It wasn't a surprise as we expected so that the we had.

If he got it is there and also there are where you work situation that we have received from any criticism and also we learned a lot of lessons and but at the same time I mentioned back then that we have learned a lesson, but I don't want to be true hesitating to work out.

Uh huh.

Even that we are unpopular back then, but the only with our own money that we've started and launched a beach on fun too.

Operate the business.

Yeah.

But the vision or strategy itself never changed.

Sales of stays the same.

And that's something that they believe in has been also executed.

And as a result, we were able to see and also announced quite a good number for you. So now that I would like to go into.

Uh huh.

Details of our financial results.

So for todays presentation numbers not only the numbers financial numbers, but also I want to remind you once again what is softbank.

Softbank group, that's something probably more important than the number itself. So that's the way that I would like to start with is about six years ago.

At the same or gauge on novartis, because there's lots of announcements.

I said Softbank group is the goose.

That's a good example.

So we that's on the booth.

Which I would like to but even more color on this story.

Yeah.

But before I go into that that let me quickly.

Quickly.

The cover the numbers.

So as you may have already seen the consolidated financial reports that the three trillion yen, we have achieved and exceed three trillion year on net income.

This number.

It's just that accounting.

Measurements and its good but doesn't really make too much sense that I've been talking about three junior Union, which is quite a good number here, but at the same time I'm not that excited but I'm not that sad either so for me.

We have.

I was on business person.

I was on the entrepreneur.

This is not a satisfactory level yet.

We have still.

Room to grow so in 40 years, we'd be running the company actually that I'm very sorry that this is the only achievement that we have done.

But even more important on net income its NAV net asset value.

This is also something competitor that's much in nine months that we were able to increase by one two trillion yen.

This was also quite a big number.

And as of today.

$22 nine to the Union is now as of today 25, something so are we have already grown by three to union. So net asset value due to the one three trillion yen can be moved up and down in tier three.

And so we cannot be too happy about this change.

So.

Compared to last much.

About four trillion yen increase so net income has increased by three trillion yen. So on net asset value by three to four trillion increase.

Doesn't make sense here.

The Bubba and hunt.

Has been a big concern from the market and we have also experienced and seen the share price down nobody Bubba and I understand that many people have voted but these states has regained and at the last week earnings.

<unk> also announced that the 50%.

Increased Ah in net income so the business itself is actually its the mercury operating and growing our Sydney.

That's how I understand.

At.

Last.

Number of the financial numbers.

Numbers.

So and then there is more important on net income, but that should be even more important if the loan to value, which is net debt or equity value of holdings.

How much percentage that we have.

The on net debt Oh, the equity Buddy Holdings and this is something that we calculate and are you.

In a normal time normal times that the way, we like to manage this loan to value below 25% that they even got abnormal case that we don't want to go exceed 35%. So we don't want to have a three times on net debt of our equity value of holdings, even even in abnormal or case.

As of December at about 15%.

Which is quite healthy state that's that we've been able to manage.

As of today actually we are even better.

And the numbers of alone to Buddy.

So maybe we are not aggressive enough from that is I would say.

Yes.

Whether or not.

Those are the numbers with regards to earnings resolved, but I'll come back to vision fund a later.

Before I talk about our vision fund, let me talk about arm.

Transaction, which we announced earlier.

Our plan is to sell arm at their unfortunately on the bot arm.

At around $3 two trailing him.

If the share price back then was about 100 per share so bought at $3 two trillion and sell up to four children, which is pretty good even after selling N V D M.

We would.

Ex change.

Two third of equity with Nvidia chairs.

Yeah.

We decided that transaction when Nvidia share.

It's about $488 per share and currently it's around $440 per share.

Taken into account.

We want to sell are on at around 45, but Liam.

Balance or something.

And we expect more from earn out perspective for example.

So once this deal is all about.

And do you know.

Most of CPU on smart forums are on the warrant or.

On the Beast.

Yeah.

After selling arm to N V D a.

N V D C E O Janssen.

As a committed chi.

Yeah.

Providing.

On license as the open platform.

And the N V D. S. G. P U N D. P you will be come.

Combined with on power.

So what would happen is at.

And the days of and are the most suitable chipset for AI will be made available.

So by combining and Nvidia together, we will have the chipset most suitable for AI.

Then what will happen is for example, when it comes to drug discovery cloud and your boss checks and.

Climate change is.

There are a lot of challenges or issues that we need to address.

And I should have played a leading role in issuing sorry addressing those issues.

Yeah.

So this transaction is not for money, but more important.

Lee.

We will make the most powerful computing company.

To contribute to the word.

And that your humankind, that's more important when it comes true arm and Nvidia transaction, so coming back to the first question what is softbank.

Let me remind you once again.

Yeah.

Softbank group.

Have softbank.

That upgrades.

Telecom business in Japan.

And Softbank group's.

As a holding company.

And Softbank group as an investment company, whereas a softbank KK as a telecom company and I have been keeping saying that for the last few years.

And that's that remains true.

But to from general publics.

Viewpoint.

Yeah.

Whether softbank group S. A traditional investment company or not well, we are a little bit different from on investment traditional investment company. In fact, Softbank group is a producer.

Softbank Group S. A investment company and Softbank group is in a producer.

Well.

Does that mean you may ask.

What are you producing.

We are producing Gordon ex the art goose that produces gold and ex U.

You may say that on what.

Are you talking about.

If softbank group is a goose.

This goes S.

Specializing and information Revolution.

And the schools will.

Produce a golden ex and those golden ex our produce not by chance, but those golden axle beam.

Yeah.

Produced.

Under certain plans.

This guth has been producing a lot of companies like Yahoo, and Alibaba.

And looking back the history.

Okay.

Well, you said that Softbank score business as telecom business and.

We are not happy that now you are saying your investment company, but in fact, it's only about 10 years ago, when a softbank start as a telecom business.

But looking back even further 25 years ago for example.

Softbank has been.

Sort of a practicing.

Gordon ex.

But on Internet.

Start it.

Yeah.

We invested a lot of startups.

Associated with Internet for example, we had the major shareholder of Yahoo, you asked and the trend micro them and other companies we have been.

Investing or E V are yielding Gordon ex.

So when we call.

Gordon ex those are companies that exhibit at the value of over 10.

Early on.

Yeah.

Or exhibit.

So every year, how many ex we have been producing for example on Renren Gung Ho and Alibaba, which was 2014 Alibaba was unless day in 2014.

He started investing Alibaba in 2000, and it took 14 years before Ali Baba.

It became a listed company.

14 years 13, Es of Alibaba kept losing money.

And from Softbank financial reports prospect ever.

Yeah.

Every year people say that you should have right off Alibaba as a value on your.

Financial book.

Book.

But in 10 to 14, Alibaba I P owed and since then six seven years later Alibaba as now.

One of the top 10 companies are on the Earth.

Yeah.

Before Alibaba I P O for 10 years or so.

Yeah.

Softbank as an investment company.

Was.

In stealth mode and.

In the meantime, we bought a Japan telecom or we bought depend on border from Japan.

And we started preparing for it.

We're running a telecom business.

Yeah.

V.

Focused on building infrastructure for Telus Communications.

Building a network and.

Discovering or developing customers in developing products I spent all of a time on air force doing that.

Even before.

I think on bus I P O. So for the 10 years or so before Alibaba I P. O B, we're in stealth mode.

And three or four years ago in 2017, we as long as the vision fund.

And.

Yeah.

So Dan group.

Shifts that flow.

Look us dramatically from a telecom business true investment of business.

While we continue.

Expanding and building on telecom business, but that telecom business.

It wasn't that by 10 Neogen.

And.

When the Internet was born.

Well before that we were selling wholesaling P C software and distribution, but we realize that information Internet Revolution would become.

Reality, then I started my time and efforts in doing that.

And.

But then that they've done it environment is not open hole completely so that is right on the way you walked on that even harder since then but oh communication infrastructure.

That's built.

And after this I believe that we need to Sydney expense. So I believe that the we were able to.

On the sub base on top of that without any problem, but the AI Revolution.

Not only are.

The study for the university's college, but docs on the air cause evolution is in reality and.

Disrupt the existing industry and we have to stop them.

For the Internet AI Revolution, we need to start laying golden eggs in there that we have decided to launch a softbank vision fund two companies.

Have gone public and four six and this year.

As of last.

Last week February 11 companies.

And also some.

Are also coming in the following months.

So it seems to be total fund launch number of Golden eggs are actually increasing.

In accelerating mode, just about a year ago.

Many months medias.

Oh Oh.

Actually he's saying that though we have only linger veteran ex.

Ex software.

Softbank Vision fund is functioning.

Because we said we will transform other investment company, we are rebounding I thought of ourselves, but the many people said that the beach on funds can be the discount factor, but it's not adding value for the Softbank group a false shareholders of Softbank group so on.

Many people criticize but I was never.

Never adopted I mean, it'd be they begin this transformation and now that we're in the harvesting period.

Here after the launch of Beach on fund.

Two or three years about 15 companies.

How do I deal and some others only from vision fund.

Yeah.

So I like to put it into the numbers.

What's the status of Softbank Vision Fund mutual fund one has invested 92 companies B zone.

On to have the interest at 39 companies.

In total 131 companies.

Just about few months ago, three months ago, LPG on fine too but on popular.

Oh, well, there's not many people say that we cannot invite our investors to be jump on to how.

Over.

We are continuously.

Running this fund with our own money, so a 4.5 to union monetization.

Program.

What's also are in top us on being prepared for that money or be Jones on too as well. So one three trillion yen for the gain and loss on line dismiss and about nine TBD on yen are what's the analyst.

<unk> forecast.

Florida before this call.

And as a matter of fact that we have exceeded analyst forecast.

So in nine months period.

Showing the past full year since the launch of Softbank Vision fund up to a nine months period for this fiscal year and the all these are year on year basis comparison.

You can see.

We have no not the 920 not on 2090 on yen.

Two 2000, and 767 video on yen positive this quarter.

Quota.

And fourth quarter, we have spent about one month or so so 2.7 hundred union as of December end, but we are seeing even further growth. So on the from vision fund as of today, we seeing right like three trillion yen or so.

So it is making a very steady.

Growth.

In this fourth quarter as well.

But when you look on this.

You would see.

You you Wouldnt see that diabetes on found this thing the written.

Eggs.

On the.

So from the portfolio wise. These are portfolio companies investing 1.5 to union and the current growth return to be on fund one on do you see.

That's really through the year on year end.

And as of today February.

Actually that Dewey R O.

Further increase from this number.

From the two.

We have started seeing the a game, we just launched a bit on fine too, but has already seen a 500 billion yen gang.

This again is showing quite a good start.

So maybe you should go buy one by one door dash.

Of our investment was.

680 media on yen and actually exceeding one two D. On yes, so we have already made.

Much of the game.

So it's like a investment cost.

Of 70 billion yen and that gave us a bunch of union, which is not bad at all Blue bar after the ideal price went down once.

And I am on investment cost was 7790 3 billion yen and now that they're showing you 1.17 trillion yen. So the costs are in different day news by many people said you must pay the failed investment Softbank Didnt have eyes to look at that good company better paying.

Our extensive money to a bad company. However, as a matter of fact I do can see that do we have already made something close to 500 video net gain from Uber No Pat again.

On health.

I got about nine times.

As of today, probably this is even better.

Open door three seven times related therapeutics.

This is the.

Drug discovery three nine times flux, so he buys a three times.

Tina and good Doctor Dupont, one times via three times actually as of today. It is something that nine six times or something like that probably 10 ex genomics I'll do can see as it says a 10 times.

And.

Two of our two companies are negative one connect is negative so minus Ah.

One video on yen, so true Julian gain and a 1 billion.

Tim BD on a.

Net negative or loss zone. On this is also the negative but as of today, it's doing better so only two portfolio companies at the price went down after the IPO. So those two.

The loss, but even adding those to only about 10 billion or so so a three tiered union gain on the 10 billion loss.

So the proportion of noise, it's not but tor visuals on too.

It's just a one year since we invested so just about a year ago that we have started investing in this day and about from.

140 video in yen and the result was tremendous and see Oh.

So went public all day, one about last week when public.

Three four times.

About 200 billion yen a game.

So here are that you can see the vision fund one on blue portion.

Is the listed Securities portion listed companies portion and the Oh, Great portion is still ex in the mother Goose.

D of the ex lead has already borne as a golden egg just about two of those ex a white as it is but the remaining.

Akshay day, three to the on yen Golden shiny ex elite and a great portion, which is still in the mother goes.

Tommy you saw that that its not yet we don't know whether that on ex god or ex a white, but are those blue portion of the golden eggs and those that are day ex that the we tried to see the cause of the conservative view.

Yeah.

Yeah.

Yeah.

I don't know conservative valuation as probably 80% to.

The value here.

Many investors would expect.

So that's a great push on will become blue eventually and from Softbank Vision Fund two perspective.

So that's sort of companies are like this and we are better.

Then we just started Softbank vision fund one.

When we launched Softbank Vision fund one zone.

We started from scratch like me and Rajiv.

And some key members, but now we have a better organization and the performance is pretty good.

And listed companies.

From Softbank Vision fund perspective, the door dash.

Yeah.

Investment cost was 70 billion and currently valley is over one Julien so that orange portion, which is door dash.

<unk> contributes a lot.

And <unk>.

Okay.

Until recently.

Be.

We're looking at a negative numbers, but now we are looking at positive numbers, whereas you bought Uber.

And other portfolio companies.

After I P O are pretty good as well and the same goes true true Softbank Vision fund Jim talking about Softbank is from one two we are having more and more companies in our pipelines.

Yeah.

When I say pipeline, what I mean is.

B.

View potential companies and a V.

Half invest cement commit team and decide to make an investment into a certain company.

After.

Talks and finally, he Shang etcetera.

So we have not signed an official agreement but.

Well I would say we have not made an official investment yet into those companies in our pipeline but.

We are about to have them in our goose.

And including pipeline companies in that pipeline. We are currently having about 40 companies in our portfolio.

We had a COVID-19 in the past travel overseas every two weeks.

But with Kobe 19.

I don't travel at all but.

Our efficiency is better because from early morning to midnight.

I can have zoom meetings back to back.

And by listening to their pitch presentation I ask them questions.

Immediately.

And started negotiating with them immediately.

And every day.

Over.

Zoom.

We can have a face to face if you all meetings with our investment teams globally.

So I think on V a.

Looking at companies coming into pipeline faster than before let me pick up five companies.

First on deep think.

This S.

AI.

Power It Earl.

Early childhood education.

And compared to early education in Japan that is totally different why because they are.

Having.

A very small class size.

And interestingly.

Founder of this company.

Developed online gaming before.

And he had a child and he wanted to.

Provide a good education to the.

A child, so after his work or Uber.

At night, he started developing programs for education for his own child, and he started business on that.

Because he came from online gaming is education program is pretty fun that attracts a lot of it.

Children, so children have fun.

Studying.

And.

Parents can.

Study with their kids.

And.

Sports, it's like a sports festival.

At the parent.

Sure that children up.

And those children on very in small class like a four five.

Classmates.

So they are good friends as well as competitors.

And parents cheer them up too.

Encourage them to study more whether it's a review or.

After class and AI camera is analyzing.

Yes.

The fitting position of a child for example finish on express, Jim and voices and answers speed.

So this on AI.

I am looking at.

Those children.

So that.

You can customize homework too.

Respective.

Soldier.

Home school teachers can't afford.

Doing that.

And home school teachers.

Can get.

Only.

A payment from our parent.

One household so it's very inefficient from home teachers perspective, but also in fishing from a student's perspective.

And college students for example can get paid.

Four times for example than he just teach one child.

So this company is growing rapidly.

So early.

Childhood indication in Japan.

As far behind on AD Tech technology in China.

So I hope that education community in Japan should realize that.

And talking about education as an engine company. This is more for higher education, then are all the childhood education.

On this company provides a program to.

High school students for University entrance exam or civil servants, a force summer Ah.

Examinations.

And most of them can there for frame and.

Active educators.

At the moment on around 50000.

And educators can get.

Incentives or.

Chip for example on.

Bye.

Students so indicators are motivated to provide a better.

Education choose.

Students.

And also on this company is utilizing AI for monitoring and.

Yeah.

This shows active subscription and more and more students are Peter customers. This graph shows monthly growth in net annual growth.

It's been only two years or so since the company started but it's growing so rapidly. This the second platform. So one platform is built.

They can get a lot of profit.

One of the great.

One which is like a rise up in Japan.

For your health care.

Yeah.

So you exercise by yourselves.

And so on but the difference is.

Big difference is the number of users the 210 million users every month about 10 million customers, adding.

10 million a month.

And the founder is only about 30 years old or something he started the business 25 years old and only five years. He expands his business there about 2000 contents for exercise tailor made for each individual.

And the way.

Fat.

Height.

Based on your own measurements that are turned on me and I wanted you to see the video 2015 <unk> been focused on using technology and content is driving forces to innovate fitness solutions that revolve around our users exercise and lifestyle demands.

We strongly believe that our new young generation will rise with a passion for fitness.

In fact all of them.

No.

700 professionals. So he wanted to actually lose weight, but it's really difficult to continue so that is why that the he start.

Competing with others doing day exercise together with our friends.

And that's actually motivate him. So if this person only by himself by herself.

You'll never be able to continuously doing that but when you have a friends together are exchanging informations then.

That you'd be able to kind of a continuous exercise and know that they're using at least bounce.

And also our bicycles some charged AR devices that that those are also sold us using their own brand. So using social network that you can compete with each other or actual image on your ranking and so on so oh, sorry, the Apple Mr. Tim Cook came in C came to see this.

Our service and many people are actually that the competing each other other members how much and how far they run. They can also see from this map and.

Actually that they if they come to Japan force is seeing and running them that that route can be also seen by the others. So the product.

Uh huh.

Purchase exercise think day the community all are actually managed by a and my Personalised tail on me so you'd been running at a little bit more for example, EBITDA eat a little bit less so those kind of things has proposed and also tailor made for you.

So this is also rapidly growing one another things completely different subject, but yeah. This is Dave.

Protein or mixed proteomics.

Drugs are in.

Discovery, So latest medical is DNA and also proteomics or is that too big theme for the medical industry.

And to analyze it really take time consuming and and also very extensive but that's a this year.

Creating done now particle and adding to that so that it's going to be easier and more effective efficient excuse me to analyze.

Yes.

If.

Sometime later in the future you may be a cancer or you may be suffering from this disease. This is something that you may be able to tell by analyzing your own D. D N E D.

Genomics genomics, but.

So what is your cash.

Current or prevent health condition.

For that you need the proteomics to analyze.

Yeah.

So.

Traditional.

Oh I know this is a detection of proteins.

Need to spend a long time, it's very expensive cost for the traditional screening, but after this year developed it.

Invented the binding proteins with particular properties.

That.

It makes them more efficient to analyze.

T on a bi.

Avoiding the traditional complicated process like depletion concentration digest them, drawing and so on so actually that they are using these nano particles.

And with the automation on instrument on the.

This is became very efficient how efficient.

Okay. So the nine times Pud, but and also 17 times, our efficiency and time.

So it's.

A very significant achievements so that's the more than one medium varieties of protein.

It's can be analyzed are in more than 275 nano particles. So this is great great company, one another company, which.

It is even more great well, great I would say and I'm. You May say is this really true or are you maybe.

Asked twice, but this is using AI for the genomic editing so like I said genomics is something to treat to forecast future risks, but therefore accounts or that you need to cut accounts that are out what you need to do some treatment.

So that's the traditional on existing medical or treatment or you need to take pills take drugs. Those are the current medicine medical's, but this one is to it it does ergonomics itself.

Yeah.

So do you see.

Sometimes the getting them make defects.

Yeah.

And when you could be you may have error in copying so those two issues are there.

So it doesn't have a gain on makes itself or you have arrows in cookies donuts ergonomics. So those two issues.

Can be results back to Sara.

So we can do the writing off on those defects are informing.

Information.

Those who.

Types.

Combinations of letters can create this ergonomics so we for the.

This is something similar to the computer language, but the actually.

You have a combination for the economics, but sometimes it's.

Mist or erode.

The on your left hand side, the writing a two.

The defected ergonomics on your right rewrite didn't this is the era of Kobe, so you'd need to rewrite how we do that police took on this video. It's the first the fourth the fixed operating on mixed the Hoyt power shouldn't. This is protein so protection actually are taking.

In.

And you need to.

Right. So this a light pink portion is something added inserted a force of that did not make the inflammation and also ratings.

Writing all of.

Those era or incorrect information, so again protein.

This light group portion is taken by these protein and actually E com.

Come to this original ergonomics and also this protein rewrite.

So those pink portion what does that do you find.

And knocks out E V right.

Yeah.

And that really ripe to them.

Come back in.

Put into disc economics once again.

You May wonder is this really true there's something doable.

Actually the day, they just it's technology they just it's a genomics.

Mitigation is something that we can do by writing or rewriting.

And.

Mobile genomics elements that do you have a several billions and out of those that you can find some defects or some areas and that needs to be treated so that the weekend developed effective gene therapy.

Yeah.

Yeah.

It's completely different from traditional on medical approach.

Like a doctor wearing a white gown and.

Struggling with tubes, so it's completely different from traditional approach. These engineers in the company.

Use AI technology.

To decipher something and we white.

That's something that people cannot Jim because billions of jeans, you have to detect.

A day fact and something is missing.

And by using AI, you can do it much more quickly than people.

So 130 companies that we have invested in and I can't have enough time to talk to each and every company and every time I talk about those companies that make me very excited but on experts are looking at.

At.

Those companies and having deeper discussion with them before I make a final decision.

And.

Marcelo is leading a softbank that Nam fund and Investor day and.

Some companies and a bank.

Banco.

Yeah.

Into for example group by two times in terms of volume. So again vision fund 192 companies invest there too.

Combined 131 companies and combined with locked in number.

On the companies, we have about 146 companies and.

We have produced the Golden eggs.

Like this.

And some go then ex should come to Japan.

We thought that we should bring a yeah from America to Yahoo, Japan.

And Softbank.

Acceptor, yeah flow in Japan, Likewise on 164 companies that average on fund and that's on fund Investor That's true.

We want to bring some true Japan for example paint Bay.

40 million users are registered and peak day and those are active users.

Well of course, our active use us a little bit less than 40 million registered users, but nonetheless.

Paint day is by far number one pain and company in Japan.

Well pay day was not developed by Yahoo, Japan, Yahoo, Japan works together, but paint them and paper was not didnt necessarily developed by Softbank and Softbank help.

Help them in terms of ourselves, but original technology came from P. T M, which is an Indian company and P. T. M is the company that speech on fund invested in.

And Alibaba.

On the pay was day.

Inspiration.

On the pay T M N P T Ami technology and P. P. P T M model.

Has evolved into payment platform in Japan. So this is.

How.

Softbank group synergy works.

On 164 companies or so.

There should be 2030 companies that are suitable in Japan. So we believe that we're going to have the unicorn companies potentially nichols coming into Japan, and the biggest platform it to produce those golden eggs.

S D.

B on the carry a strategy that has been on that.

Net of bi can meow Chi and can you Chi well pass the baton to Junichi me a column.

That's a new.

Digital Revolution on digital platforms.

And that is a platform and believes that the Softbank, we'll continue to grow by working together at Golden ex foreign companies.

In our portfolio now conclusion Softbank group is a goose.

And are we are a producer of the Golden ex.

And I kept saying that they'll be focused on information revolution, but with a vision fund on the wall focus more on AI Revolution in fact solely on AI Revolution from Softbank Vision Fund perspective, sometimes we made a mistake by get.

The weighted derailed from AI revolution, but in principle the focus on AI Revolution.

And why.

So I say, we are a producer.

Well, we have a turbo charger strategy.

The two turn white egg into Golden egg, we need to.

Turbocharged stomach.

Not just relying on the organic growth we need to.

Excite them.

And provide a final supports.

By Vision fund.

Softbank group has.

Some companies invested in and also Softbank vision fund to have about 160 companies invested in and unlike traditional investment company. The total about 200 companies most of them.

We are a major shareholder we are not passive shareholder, but more activist shareholder if you will.

<unk> V.

Specialize in AI.

We believe from.

So we.

Should be able to.

Produce synergies, unlike a traditional investment company or investment.

Fund they are passive at investor.

They don't.

Really engage and day to day operations, but in other case, we specialize in AI Revolution. So we can.

Stimulate each other and it's easier for us to.

<unk> a synergy so a turbocharged draw on our strategy.

Big Bejon big money and big.

Synergy, that's what I call a turbocharger on strategy.

Yeah.

Again, we have about 164 companies in our portfolio.

And if we have three groups.

Softbank vision on one and two and locking them fund them and most of the ex R. Oh.

Excuse me all of them are in Goose and.

And from Softbank Vision fund one we have lead us on Gordon ex.

And from Latam a fund.

We have more ex and though from vision fund two we have more ex.

And we have a V that those Gordon ex from those all white ex that.

Our contained in Goose and again those go then ex on later not by chance, but mine plan.

Yeah.

We have an expert teams.

Experts and business model experts and technology.

And experts and in market competitors.

And from organization perspective.

From manual Labor true production line like T type, Florida.

B.

Have a skill true.

Ron No prescience more smoothly.

EBIT massaged is relatively large and actually not on.

Actually the only with our own money only with our own money that the weekend around from two and also going forward and also we can recycle the money from vision fund one and two so even though we were able to make further investment so goes.

Lee.

With the Golden egg rhythm. So the reason that probably I should share with you. How are we you are doing this maybe you don't want to be too serious to look at this so just a little bit of interesting.

[noise] from oil so as you see.

I believe that the Golden ex that dancing with the music.

And as if that rate with rhythm.

Analyze.

How about responsibilities of beach and that piece or is it is also important from my understanding on how that.

So don't Miss the good eggs and also be strategic and also analytic.

So if we do too much it looks like I'm just hunting for money. So maybe I should stop talking about Gordon Nick anymore, but a little bit more seriously here.

To conclude my presentation. So we've been seeing the evolution of technology first he wants to fire and then agriculture.

More representative.

At the mobile electricity in the.

Recently gained on it.

But the actually the deep biggest evolution, we've been seeing is yeah, that's how I see in how I look at.

Jody.

Yeah.

Greatest advance created by humankind.

This internet Revolution.

That's being replaced in industry only two things.

Advertisement.

Only 1% of GDP and the retail business, which is only 10% of GDP.

Only 1% of GDP advertisement industry and 10% of our retail business has been replaced by the Internet Revolution, which that the top 10 on market cap.

Now if coming out to the world. So about eight out of 10 of the took the buckets kept companies on this internet related but this is on the one per cent of 10% of GDP, just a replacement of those traditional business, but actually.

Two examples are the other areas of medicines educations transfer.

Transportation with the autonomous driving like a live on three live on for its not the level that we are looking at right. Now we are looking at Liberum five with D.

Autonomous driving robot is going to be on the road on the public float and starts driving so.

So I would like to create the world without any traffic accidents I would like to create the world without an Alzheimer's cancers.

The people has this we we I want to create a world, which can avoid any suffers where in the world that the people don't have to suffer climate change.

Pandemics so many challenges I hit on bus so many.

Our wishes and hopes.

So efficiencies those kind of things that I believe AI.

<unk> has the power to change those so that four people into a different century and happiness for them that I would like to keep contributing and so that Softbank group.

Using example, once again for the Golden eggs were not only looking for the money you may see that way and if you want to see that way, yes. Okay. Please see that way, but the me actually I B C.

It's not that Golden Nuggets D. A result, although then it gives a final objective.

I don't want to be too excited with some gains from there that's.

We are really only halfway there we haven't really achieved what I have on track to be at so I would like to keep continuously working hard Oh is this business. Thank you very much.

Thank you very much now that we would like to take the questions from the.

The floor and also doesn't audience firstly, we would like to take questions from the floor. So please wait for the microphone and start with your name and affiliation.

For those who are on zoom.

Please.

Refer to the email was on do you have received and access to zoom Ribena play there. Please press rates hadn't button and wait for your name a cold.

And if you'd like to withdraw your question, Please press la and Boston.

And also we would like to take up to two questions per person. So that we can take questions from as many people as possible.

So no we would like to the accretion from a floor. If you have any question. Please raise your hand.

Yes, we'd like to thank the gentleman in the middle with Luxor.

Okay.

My name is nagata from Toyo Keizai.

I have two questions. Please.

<unk>.

Last time, you mentioned a lot, but not this time S. B notes that those investments in public securities.

So long term our management of money I believe but the.

There are some profit and loss on for derivatives and also the realized gain and loss you said that the U a E.

Practicing a test run, but what is the status and my second question is.

It's about vision fund.

We don't want to.

So compared to beach on found one.

I believe that you had mentioned that you created a better structure compared to vision fund, one or more efficient, but can you give us a more color and also are you still expecting to have about third party investors for being on one two so regarding your first question about the lowest it's been on star.

Which invest in public securities.

We are still doing the testing.

Faith or test operations.

As of day end of December.

For Softbank group hunted BD on yen Liberal D a negative from.

But as of today.

We just started it start February but actually it's part of the dip of about 100 billion yen or so.

So some hundreds of billions of ups and down.

Depends on the share price on that day, so that it does have a sometimes make some changes, but it's not a large gain but it does not that the large loss. So it was a net negative in yeah. So at the end of December.

Our positive net adds on a today and for future. The main course is AI revolution are that the I would like to forecast.

Of course, the golf on those are the kind of on top leading companies, but I read I'd like to see more potentials in terms of growth ratio wise that that those companies.

That the beach on found focus is larger.

And as we monetize 4.5 to union of our assets.

So we're kind of course needs some time to invest so due in the middle of those time that we would like to use the public securities for management over money to some ex to some extent, but once.

Once we see more and more pipelines of course, the day will prioritize.

The purpose of abuse persists for the visa on funding investment.

Well your second question, we don't fund.

Improvements are from one to two adds up today up to here.

I just mentioned they got to true three two young game that we'd been seeing but from me.

There are.

Many so many things still needs to be improved. So there are many lessons that I learned and of course that menu rooms to grow it.

It becomes even more specific which needs to be improved which needs to be fixed and we just see that so now that we're.

In the tactics, how we improve how we changed how we fix that so it's not that we coincidentally see those improvement, but actually strategically that the way being improving on myself. So that we can make sure the cheap on a good rhythm to day Golden eggs from the Goose.

Continuously so that kind of a structure is there kind of a management should do or business.

<unk> be running so that we create the domain experts by industry or by region. For example, medical medicines, you do need a very deep understanding of such medicines. So this day and for example, do devote themselves into this industry index for that domains.

We focus on certain members dedicated members. So we do need to create a dedicated teams dedicated person to the business otherwise you cannot analyze that.

Analyze the company you can understand that company. So us because we have a scale economy here and we have a several hundreds of people.

Okay.

The fund managers and stuffs that therefore beach on fund then.

We start the domain experts system. So a variety of types of incentive systems variety types of the operational system is now ready to create high myself being involved in creating such systems by myself I saw that doing can improve day by day.

In the beginning of our business, yeah who'd be be bought off on Japan. When we acquire those companies that we already know are that that we learned that we need to change the structure yourself that was very busy job.

I had two.

Actually.

Involved in the change of the structure our system our organization of the company and now that that's becoming a very in details in terms of the many types of structure, including incentives and so is that answer. Your question. Then please go ahead to the next one.

Yeah.

Next person, yes, a person.

And the Brown shirt snuck up there from Nikkei. Thank you.

Looking at the market.

Yeah.

Well market is pretty much heated.

But you mentioned that too.

Gordon ex <unk>.

At good rhythm at one market tanks. For example, how are you going to perform.

[laughter].

When market goes down what kind of strategy do you have to address that situation.

Looking at the stock market.

While interest rate goes up and the share price goes down.

The unemployment rate goes up.

Then share price goes up.

Depending on government policies, and then depending on central Bank policies.

Share price might be effect that them, but.

Investors.

If you invest.

In those.

Price changes.

They.

Our.

Speculators.

So that's one pattern.

We are not carrying about those.

Short term changes.

We want to provide capital true evolution.

Industrial evolution is.

The thing that we want you contribute true for example, if the automobile industry was born.

Now I would invest in that industry likewise electricity.

So we are.

At the starting point of industrial.

Evolution.

And in 2000.

Internet bubble burst and the people suffered a huge loss.

But it was not the peak.

You realize that restaurant.

If you look back that big.

Because the stock price now.

It's much bigger than the stock price back then.

And likewise AI companies.

For a short period of time on there.

On a price May go up and May go down dramatically, but because it's just the beginning.

The more important thing S.

And I remember the issue that's just.

Started so short term ups and downs on.

Sure.

Just on opportunities, even though on share price go back go on Jan will go up it's not the peak and go down you don't have to worry too much about that and.

Our U S to make sure that we keep laying eggs no matter what no matter how the.

Stock market changes in short term.

My name is he nowhere from us on genius paper so.

In the beginning you mentioned about Alibaba.

So buddy holding study.

Why is that that it's more than half of your body asset value.

And the anti <unk>.

Finance IPO has been postponed.

And the Chinese policy change.

These can be a key for the future operations.

How do you see that.

Other Chinese companies.

Do you have in there said many of them on smell, that's something that I would like to hear your opinion and I stick on my question is Jack MA. So after October Jack My husband's show up on making your parents.

To the public in the meantime have you Jack they communicate with Jack.

And if so what kind of communication on did you have with him.

Yes. Thank you for your question, but he Baba and Tencent and other companies.

Yeah.

Right now probably the first time.

Our discussions are held for those companies, but think about that United States European companies.

Jump on.

Antitrust.

Policy on anti <unk>.

Trust is something already there we have a several routes. Several regulations are made in financial business Theres, a banking law securities, though there are many rules and laws and restrictions out there.

And within this framework you operate you run your business in healthy manner.

So sometimes you see some.

Incidents or some accidents that you learn lessons from them.

China for Internet companies actually that they don't have free him they could do on almost what day, but they want it but the day, they they'd be coming to be more sensitive about antitrust.

Uh huh.

Like a U S or European companies and also when you.

Some kind of a financial instrument like the close the deposit you cannot lose those everything got the the one time that would cause on many trouble to many people. So the financial regulation type of things as necessary to protect our citizens protect people that day, using those services and that'd be the chi.

<unk> is in the process of such right now.

But I think that's healthy things to become even bigger to be to grow father of your business I believe those unnecessary regulations necessary rules recently.

<unk> wrote a law. So I think what they are discussing right now is something that's already been done in the United States or European companies or countries and that's not exceeding what we'd been seeing in our country or U S or European countries. So that I believe we will be able to keep seeing.

Ah the good growth or even more positive for the future of such a business of Internet in China before your second question on my communication with him he likes to draw he's a drawing many drawings and he sent me a mini Joe Ingo kits on the creation and he sent.

We don't see those and personally like to see the drawing as well so about 30 minutes of thought about that before I go into a bit.

I drove from drawing and so on I haven't seen show him yet, but once they complete that I can show him that too so not always about the business direct discussion, but are we talking our hobbies or are we just send regards and so on so that kind of exchange has been done.

Next person please.

Okay.

Deborah from Wall Street Journal.

Talking about a goose and delaying ex at good rhythm.

Yes.

Hi.

What's your view on.

Rhythm for this year.

I mean.

From.

Listing perspective I.

I don't know how many companies per month will be less data so you're with them for this year as my first question.

And second question.

Well see.

Most critical thing for you to do now.

You mentioned that there is the harvesting period and also investing by Softbank Vision fund two and there are a lot of other project projects for example, solar energy.

Yeah.

There are a lot of.

Things on your plate, but what do you think is the most urgent thing for you to do.

Thank you the first question rhythm.

10.

E R 20 per ear.

In terms of I P. O I want you have that kind of a rhythm to less than 10 companies are attempting companies per ear.

So we are going into harvesting period from Softbank Vision fund, one perspective, and even from Softbank Vision Fund two.

We have started some sort of harvesting.

Again, we have about 160 ex and.

Yeah.

The goose.

So.

Since we are not investing in early stage companies, even though our venture capital we invest in late stage companies.

So its height more.

<unk>.

To be less data.

And what traditional cap venture capitals, sometimes they make a lot of mistakes, but sometimes when they hit the gold gold.

They can.

Half.

Hundreds of times.

Return on a big return or something.

But in our case, we still.

Should be able to get return on because our investor money as rather big insights. So again coming back to your question and you know what I'm on listing 10 20 companies per ear and most critical thing for me to do now as to focus on AI.

10 years ago.

When a great Tohoku earthquake was hit we wanted to provide a solution.

And that's the biggest reasons why these started solar power renewable power business a project, but now.

Many more companies are working on that.

So we have made a good achievement and we are looking at profit.

So currently we are talking what some potential partners.

To which we will.

So our our renewable business renewable energy business all of them are part of them on still under discussion but are.

We would rather focus on AI Revolution.

So that's.

What I'm dedicated myself most N.

So I go to take the question from a Lady and then go to take a question from the audience.

So due to the time limitation on that.

The way you would no taking this lady's question my.

My name is he negarchy from financial times.

U K in EU regulatory.

It is now.

The viewing the Nvidia a graduation.

Of.

And there are many competitors, claiming.

A violation of on the trust and so on but that that they can be blocked how what do you. What do you do if there is any blocked up transaction and also about Alibaba.

So financial restriction on they get it degradations.

You mentioned that the it is important regulations for China to grow healthy manner, but the Jack MA bids he's he's such a concern but they've been careful person why do you think that he made a quite a criticized to Chinese government use.

That way.

Yes.

Not on the U K or you, but in the United States also the same and also many other countries as well that Ah.

Each related regulatory is are in the process of reviewing the it's a good addition of course this is necessary to take on place and of course that that I believe in where you'll be able to receive the final.

Oh, Oh by the net.

And this is how do they get out there is of course when it comes to this kind of big a transaction or a condition. There are many pros and cons or many people say about in many ways, but I believe with this condition I believe we will be able to keep that basic policy of providing as many users as possible for their service and also.

The business domain above and on videos of business domain.

Is does not overlap at all almost at all so that.

Antitrust.

Or the concentrations of the business.

They will not be a deepened due to this transaction. So it is those two points I believe that we have the belief that we were able to receive the final approval for this transition auctions. So I don't have any plan before that and originally speaking.

<unk> recording.

Highest.

<unk> sales also start showing the city.

Growth, so that Oh regionally speaking that that they have their own plan to go public once again in data, yes, but this time because we reached up on the agreement with Mazda for Nvidia and also believe in receiving final approval. So we focus on that transaction on right now on for Jack MA before you take on.

Sure.

Yeah.

I don't know the.

Details on the from the newspapers on mass media I understand what was going on there. So I hesitate to make any specific comment about that.

Yeah.

And last person from the floor before you're going to it sooner.

Hooked up from Nikkei.

About.

Invested companies.

You have about 160 companies invested in and how many of them how much of.

That group will be Golden eggs, if you think.

In the past you had talked about unicorns that CDR jump over the cliff and some unicorns went under a the cliffs.

And fell off the cliff so again, how many of the 160 <unk> White ex will become a Gordon ex if you thing and second question.

We work in all your.

For example.

There were some companies that need.

Turn around.

So what.

The progress of the turning around those business as I wonder if or when those companies are.

Ready for IP O.

Thank you.

I P O or exit I think a 30% of our invested companies will be ipos like I said, that's in the case of a traditional venture capital and like I said earlier, they invest in those companies.

At an early stage.

But do we invest in companies at late stage. So I think on probability is higher than 30%. So we will see how better how much better.

Okay.

But.

We should be able to get a few times a week.

On a return against our invested capital I'm confident about that and the second question about New York and other businesses that.

Need to turn around.

And.

Due to COVID-19.

More people staying home rather than go to work.

In fact.

People some people on.

Not allowed to show up two offices so in that sense.

Companies like rework.

Is.

Hard hit.

But in the meantime, they are working on improving technologies and improving business efficiencies. So they are.

Break even point.

It is much better than before.

And so long as.

More and more people get vaccinated and more and more people go out and.

Interact with others, then I think we should be able to get more return in a rework business for example.

So reworks our corporate values.

Is now better than before well it went down one time, but it's recovering and the lot of our proposal like this back ideas coming into Levered. So we work has rebound from.

From the rock bottom on them.

That's my understanding about we work.

So now let me go she zimmer to see who can who wants to.

Ask a question.

Yes, now that we are taking questions from them so to avoid any Echo Inc. Please.

Avoid connecting to any other.

Lives.

And this will be the last person who can meet why don't we take two so one question. Each so we would take two more questions. So Mr. Owada from Nikkei BP. Please on mute yourself and start your question.

Yeah.

Can you hear me okay, yes.

So Gordon egg.

So production line for Golden egg, how many people how many stuff do you think is needed for this production line. So you mentioned 10 to 20 companies can be a good candidates for.

For Gordon.

So in that case, what kind of people do you are you how many people do you need for this production line.

Yes, so on real means or completion day by Ns IV study, we keep improving and making efforts for that but this year. We have already seen you live in companies.

When public cause on Golden eggs.

Already so 10 20 part yeah.

Means that we have already set a certain structure.

To keep this pace and.

From here that the we will keep working on the country improvements for the system. Thank you very much. So why don't we go to the next one.

Two more.

So the next S from.

Mr Fighter from Nick on Congo.

Yeah.

So the question.

S.

So position of Softbank KK in Softbank group.

You mentioned that.

2030 companies that Softbank vision fund and have invested if you want to bring them to Japan.

So.

Is that mean rule of Softbank KK shoes.

Have those business.

And prosper in Japan, So what kind of expectation do you have from Softbank KK and Mr. Me, a call who is going to be C. E O in spring.

Thank you.

Yes.

And Softbank KK.

Most of my colleagues that I have been working whether since the launch of my business.

<unk> and the executive team.

And Ken Me Oh Gee.

Yeah.

I have been working with him since.

Maybe two years after.

I launched my business and Mr. EMEA color I have been working with Hana.

Four chunky as also we.

Our Congress.

Yeah.

So rather than.

Boss and subordinates, maybe I'm a little bit.

Bigger I'm a big brother.

On that our brothers, but are we are rather Congress from my perspective, and in fact, the exchange of opinions.

Jim and Tomorrow, if you're going to talk about pay pay for example.

And we continue.

Working together.

Yeah.

Working on.

Project.

And.

Going forward.

Mr. Miao COBOL will be C E O and I hope that he will continue working to make sure that softbank KK growth even further.

And.

I want him to make sure that day network should evolve five G and sixth Jeep and a lot of our digital Oh Revolution, and AI Revolution, I want him to lead our ass and kept on new captain.

And to support him.

Yeah.

Executives like Mr. Shim by Mr <unk> and Mr, Illinois and.

For Tomorrow, and Eric on and those are strong numbers will support Mr Me a collar.

Two.

Drive beyond carrier.

Strategy.

Yeah.

Okay.

So we.

We have oh.

More questions from zoom. So so anybody from the floor, yes, I can take the last one question from the floor then.

So he will be the last person for question My name is Hilda from Bloomberg.

The February last year I was also here for participating the surroundings result of nice things situation has been changed dramatically last year.

A discussion on privatization and I made of questions to you regarding how you think about the prioritization of that business and you said that that is an option we have and you.

You have some time spent too seriously considered a prioritization in the past, but considering the pros and cons accounts activities or the fair disclosures or the accountability for lenders in the transparencies that there is still stuck to us that the he you said that they use it feels advantage.

Oh being listed company since then.

But the market also oh.

Concerned on mixed feelings regarding Softbank group without do go private or maintain public in the last year. You said that you didn't make any specific comments about that so that after 12 months since then.

And are you you didn't comment about that this time and.

Do you have you changed your mind regarding public.

Both public and private companies of Softbank group.

With as the captain of the Big Chip can you give us an explanation on how you lead the company.

Yeah.

So no comment.

For me that's all from me. Thank you very much sandy.

And I. Thank you very much for your time today.

So thank you very much once again. This concludes the Softbank Group Corp earnings results announcement for the nine months period ended December 31st 10 to 20.

The video footage of this meeting will be distributed on demand from our corporate website.

Okay.

Thank you very much once again for joining the Softbank Group Corp earnings results announcement for the nine month period ended December 31st 2020.

Yeah.

Yeah.

Okay.