Q2 2022 SoftBank Group Corp Earnings Presentation

Now we would like to start the Softbank Group Corp earnings results announcement for the six month period ended September 30th 2021.

Okay.

First of all I would like to introduce today's participants.

From lift.

We have masayoshi son, Chairman and CEO.

[music] you'll.

You'll see meets the gold toe board of director and CFO.

[music] Cosmical Kimi Rhonda <unk> senior Vice President and head of accounting unit.

Today's announcement is live broadcast over the Internet.

[music] now I would like to invite Mr son, Chairman and CEO to present, you the earnings results and business overview.

Yeah.

We saw some please.

My name is Shawn Thank you very much for today.

Okay.

Okay.

Well.

It's so interesting.

There are.

So many dramatic event just about six months ago.

About getting much this year the rehab announcement for the unions.

May and we have spent six months since then.

Back then.

I said Softbank bond.

Born at session of Kumar.

About 40 years ago started by myself and two other part time.

And I looked back and talked about that.

I said that the there is a dream over the road.

And do.

We have grown so much since then that was the my talk and today is the next chapter.

From there and let me start my presentation.

So next chapter what happened to us.

Please vote.

We are in the middle brazen it.

So I said that there is a rainbow over the road and we have grown so much that's what they said.

In Japanese economy.

We reached five two a year and yet you end up net income and I was so proud to present our.

Our result, and also looked above that 40 years ago and six months later.

What happened to us.

We are in the <unk>.

Almost all of them again.

It's a blizzard.

Okay.

We are in the winter storm.

And here.

Last.

Yes first half it was one point H a D on yen net income this time is a big.

Uh huh.

Reduce.

360.

Billionth.

Video and yen its not the loss so maybe it's better but actually effectively it's a big loss, how bad or how are those.

I would say effectively.

Six trade Union loss.

Six trillion yen loss means.

I have several times mentioned.

Most importantly focus about the net asset value NAV compared to our accounting net income.

So for me for Softbank group more important a key performance indicator is net asset value NAV.

And Softbank as an investor. This is the most important indicator for us and we have reduced six J D on the yen.

In just three months this is a big Oh event.

So effectively six Julian in laws.

We are in the.

Big Winter storm entering into the Big believer Ed.

So for shareholders of Softbank group.

I believe this is a one big event.

It is a big event, but at the same time for me.

I I'm not that pessimistic.

Actually.

It's not always the best stories, that's something that I would like to.

Speak about in upholding pages, but.

In summary, no excuse our net asset value has a D.

Decreased by six J D. On yen, that's the fact I wanted to share in the first pages of first our pages of my presentation.

And let me also show you the breakdown.

In one word.

Alibaba.

Sure.

Amongst our net asset value the largest portion.

Has been Alibaba.

And if Alibaba has.

Reduced its values are quite largely.

Bubba as a listed company public company, so share price a body Bubba is disclosed and also Oh. It is a shared by everyone. So I believe that the many people always.

Expected.

The extent that that EBA share price has been impacted due on that does it bother you Ann This is how we describe in our in the graph so the orange bar.

He has been taking about sometime that he has taken about occupied about 60%, but amongst the NAV.

Right now reduced down to 28%.

On the other hand, it's not always decrease.

Kelly.

Course of AR.

Our core business.

Which is B Jones front.

Which I being explaining several times and this vision fund extra the taking.

<unk> accounted for about 44% amongst total net asset value. So you can see this blue portion.

Or the Blue bar is increasing steadily.

Last year.

Just about a year ago, the same time last year.

First tough and as of today, if you compare with those two.

And it does it buddy up too.

2017 with Union.

Fuddy Bubba once that accounted for about 60%.

Now that's.

Our reduced.

<unk> 20 trillion yen, so 59% the body by Russia has decreased to 28%.

And the 16%, we just relatively small portion of visual fund has grown to.

44% just just in the ear.

This is the.

Yeah.

Now biggest spot for net asset value of Softbank group.

If you take a look.

Our net asset value by countries.

United States actually making a city growth a blue bar.

China is the Red bar.

Majority of the China's abortion is alibaba share due to the decrease of Alibaba share and also there are some Chinese portfolio by Abidjan funds such as D D.

Which went public successfully however.

Those high Tech shares in China. He is having some difficulties and those high tech stocks in China has been seeing a decrease in ship its share price and the same as the Bubba and D. D and also other portfolios in China has been reducing its value.

In fact in the past three months.

But when you take a look at the blue bars, and the green bars.

With those two are actually making good gross stupidity.

Which means our United States and others are making good growth.

So it does hit the Buddy.

Is.

The most important indicator for Softbank group, but there is another thing so I would say two things to indicate though that the we very much see the important one is the net asset value and the other is loan to value so with those two.

Softbank group's management.

We are managing our business.

And loan to value.

This is D.

Oh amongst D E F a holding assets.

Ah well divided by net debt so because many people will say that the Softbank group. These are king of debt or something but that's actually a very much misunderstanding. That's the old Softbank Ah that's the upshot.

Charlie.

There are some time that we have experienced about 65% of blown due by the end, but then of course, I would say a sprint or transactions or Vodafone.

Transaction right immediately after such transaction.

I do recall that that we have reached the do some some way of 65% have loan to value, but then I believe that we are very much high debt company and that was very risky but at this moment.

Our net debt over equity by the upholding right now loan to value is 19%, which is very safety level.

For me.

So in the last three or four years.

How has L T b b.

Being.

Moving on the left hand side.

Yes.

And it was like three years ago.

When Softbank mobile.

Russ 100% subsidiary of Softbank group.

Dan Softbank went public.

Since then L. T V has been always under 20%.

And are we are running the business.

Thankfully if you will looking at L. T V.

In our internal rule.

5% around 25% is the level that we should keep in terms of L. T V. In the worst case scenario still we want to make sure that it won't exceed a 35% that's our financial discipline.

Yeah.

That's D indicator.

E that 25% or 35%.

Don't want to exceed those level.

That's the strict discipline that we set for us.

Even though equity value of holding went down by 50%.

Should be okay.

That's how a V C. L. T V now talking about the vision fund.

In the last three months.

Even vision fund lost about one Chilean yen. So again, we are not proud of that either in the last three months.

I sat NAV lost six trillion yen and most of that.

It was due to I leave us yeah drop and also Softbank vision Fund's performance.

It's not something that I'm proud of either so.

Vision Fund lost a one Chilean yen in the last three months. However, looking at the cumulative number we see six Julian yen of gain since the inception of Softbank Vision fund. So we can fund itself is successful, but looking at the last three months.

Okay.

For example, D D like I mentioned earlier D.

D D. When public successfully in China. However, after they went public are.

They are facing a tough challenge in tumors of Chinese regulations and other Chinese.

Chinese companies that we own.

Most of them have lost their values and recently.

And.

Later last year coupon in South Korea also.

When public successfully and a rebound be.

C.

From that successful I P O of coupon.

So they lost a value as well so Softbank vision fund lost gain from seven Chilean two six.

Six Julien cumulatively.

If you look deeper.

B Jones fund one accounts for most of the gain.

Fund, two and let them fund.

As indicated in the light blue in the Bar chart. So they just started so vision fund one has longer history and performance of vision fund usually when it comes to <unk>.

And it takes three four S. Juicy games. So we don't fund was earlier than fund the two and that the fun of course, we saw a lot of events like a we work shock if you will and ubers.

Failure in terms of I P O and also COVID-19 pandemic, we have gone through tough period them.

But.

Over that vision fund one after COVID-19.

They started building again are the value and vision fund two and let them Fund V. Just started so in the next three four years.

We believe that are they gonna see more bodies coming M by the country or regions.

Do you as indicates a balloon.

And in terms of NAV again U S is growing steadily and vision fund.

Despite colby.

COVID-19, and rework issue.

In fact, we work went public recently.

It's been recovering steadily.

And door dash in the U S. Again successful I P. O. So U S has been doing wall and Green U S Asia, Europe, and South Africa, excuse me South America. So coupon for example in South Korea was successful so.

Green has been doing well and China is the only one which is in Red Hat's lost in the last three months. So the game they are quiet.

Cumulated.

Had.

Gone in the last three months.

And Alibaba share price drop and the vision fund portfolio companies drop insurers shelf price war are key drivers of our vision fund.

Fund.

Loss.

So cumulatively.

How much.

They invested in what country U S China.

Two major markets in terms of vision fund investment.

And also Asia, Europe, and Latin America.

Put them together it looks green is a big pipe.

But.

Talking about individual country U S.

The majority.

And green parked in the Pie chart.

We want to build the more value.

Sure.

It's slightly different from venture capitalists in Silicon Valley of course, we are successful and you asked about also we are successful in other regions of law by sectors.

Consumer services logistics.

Mobility, well in a consumer service there is a coupon and door dash is in logistics.

Mobility includes Uber and others.

And also Fintech is interesting.

Its presence is.

Growing.

And vision fund I'm confident with the vision fund.

But some people may say that.

Even though I mentioned that Softbank vision fund plays a key role and Softbank group.

But some people may say that so martha.

Makes all decisions when it comes to Softbank Vision fund, which is not true.

There are about 3000 companies in the pipeline and we are looking at them.

Regular V F.

And our investment team.

<unk> has offices across the globe and they conduct preliminary screening and the writing they do due diligence and they go through investment Committee team, which includes myself.

As a member so we are going through this rigorous process.

Okay.

And there are about 100 people.

Looking at our pipeline.

By regions by sectors et cetera.

Difference between fund one and funded you is as follows fund one.

Yeah.

Okay.

Well.

Investment.

Her deal.

Investment amount per deal was bigger.

And vision fund one compared to vision fund two for example investment per deal by Vision Fund one.

That's about.

<unk> hundred billion yen, so ticket size per deal as one fifth of vision fund one in.

Case of Vision Fund Jim.

So if we don't find it you want to.

Make a hit more than vision fund one.

So are we would like to make a cumulative gain so per <unk>.

Investment rather than making a big sink rather where you would like to make sure they're robust and also other gate in diverse away another highlight.

It's the.

Our ownership.

Her case visual and find the one case, we put about 20% or so but in vision fund two we may get the boat to a teens.

So our ownership stake in the parent company has been a smaller in in detail, but at the same time a number of deals has increased compared to mutual fund. One. So we have reduced the size per ticket, but the number will be.

Deals has increased so in total the amount of the investment.

It's about say more even bigger compared to mutual fund one.

From our.

Understanding.

Tried to take our ownership stake for 10% or 30% that will make us a more expensive.

And also our counterparts, a shareholder I do not want to see too much dilution. So if we want 20%, 30% then that would be more expensive. So that was a kind of a negotiation case, but robot, making smaller ticket and all.

So a little bit earlier to enter so that we can reduce the ticket size and also not taking a large ownership stake so that we'd be able to make it in detail.

In case of Vision fund two.

Shareholder as an investor.

This vision fund two is owned by so SPG Softbank group, 100%. So there is no outside investors because we don't want one has on the external sure Ah.

This does 450% so that our Oh no. She was effectively 11%. So our ownership wise it was either been a percent to 15% are when it comes to the ownership stake per company or per case, so that makes us easy to enter and not so easy.

Exit at the same time, so that will make us able to manage in details.

And.

What are we doing and many people still wonders what sorts of bank group does an in principle, we're in Vista and we invest in companies. So we focus on our private Unicorn companies and we would like to create the group are unicorns one.

They go public because after they grow and matured and go public then we exit Oh, we divest and wants to monetize or exit those companies and then that will be recycled to capstone for the investment into.

New private unicorns, I said that the way you would like to manage our loan to value less than 25% and where the money come from is Dutch.

Uh huh.

3.2 trillion yen for first half that we have been visited sofa, where that money comes from.

About 90% about three two union.

Came from those shares that went public.

Sure.

No.

We utilized or monetize those shares well utilized of all assets for us that's financing.

So.

It's not the new money that issuing bond due a lot on making a more alone or anything, but rather we would like to do within our assets. So that we get monetize and also we can now making a recycling ecosystems.

So.

As I mentioned in the beginning of my presentation compared to six months ago.

He was very proud too.

The result, with 40 years ago was memory and creating the big again in six months later, we are in the middle of a blizzard and just in three months, especially mainly from Chinese portfolio, we have seen to reduce a reduction of done it does hit by the bus.

Still.

For me I can see something here.

You can see a little bit of sprout there.

In the Middle you can see the new green spread.

Sprouts is coming out that's something I see in the Blizzard. So we are a seeing such a news proud.

Our industrial storm, and where you would like to raise a this sprout.

Well managed way.

About a year or two years ago.

Softbank Group I said Softbank group is a goose bears a least a golden eggs.

So.

I talked about the Golden eggs coming out from those goose and that's something that they used on slides for presentation and those Golden X number of coding X it'll be increasing that's what I said back then and you see this adult that line starting from that.

We launched a mutual fund in the past 20 years, it's about one or two companies that we have seen the monetization by going public or exit but since the.

Launch of Vision fund two companies food companies six companies, so you're seeing a doubling numbers in for this year only in six months, we have already seen 18 companies. So if we add sit.

Second half I am so showed up do we be able to see more numbers.

Actually that that those eight companies that already applied for IPO and also there was five companies, which has already announced its merger with spec. So we already seeing about 31. This number they are already in process of going public are therefore, we are making very steady.

D a.

Steps are too.

They are about double the number of the golden eggs compared to last year. So we are looking at around 30 Golden eggs inside of this golden eggs.

Sometimes this gordon it does not come out of the good goose, but sometimes we can see the shining golden eggs with which becomes a shining goose. So they go door to us those are actually inside of these eggs. So that that that ratio is also.

So going to increase visual and fund.

It's not that the other way on the investing in 20 companies and third the company. So we are actually investing in 368 companies I mentioned earlier.

Cumulative gains of a visual front.

About 90% came from coming from vision fund one actually be don't find one had to spend about three or four yes to start seeing such a game.

But are we is the vision fund two and Latam fund, although that ticket size it becomes smaller but already <unk>.

<unk> companies will invest it has grown to about three times or more than three times I would say.

Or even four times.

But four times.

So uh huh.

Ticket size.

Is even its ticket says one shift but the.

Now we are.

Yes.

Number of about the same number as the board eggs are in the goose or three times as much as a three times number numbers of eggs are in the goose already compared to vision fund one. So that's why I said that though we are still in the Bleser. However.

We start seeing.

Ecosystem are working already with our assets.

Money monetizing the assets or.

Existing those assets that they can utilize those money to recycle the ecosystem and then you sprout is also coming out which is NTP.

As you know.

We bought at about three drilling him.

And.

Arm was valued at four joining yen wind the agreed with Nvidia for them merger.

And.

One third cash one third any V D S. Yes, and since then for one year N V D. S. Your price doubled.

So if and when Nvidia deal is closed.

Three Chilean should it go to four children Union and according to the current share price of Internet and video nine Trillium, so by that what I mean S.

Deals should be considered as nine children in yen.

Deal not for Trillium yen deal so five Chilean yen as of course, not materialized and also subject to the government approval and pay pay and confident but hey Babe.

And talking about the NAV I keep talking about.

And also I mentioned, a new budget and again never.

To remind you of.

About 25 children, and young, including Alibaba Vision fund and others.

And we have a net debt of $4 8 billion yen. So nab should be 20 point to nine joining him.

But looking at the market cap as of September and 11.1 Chilean him.

So body of holding 25, Chilean and market value.

11, Chilean and compared to NAV the seat about 50% discount.

So how NAV has been going.

For the last 20 years or so as you can see we have ups and downs and since 'twenty 'twenty. It's been steadily going up as you can see as of September and I sat at 2019 on him and since then about one <unk>.

Julien rebounded and I'm sure that it goes up even.

Further.

Still.

Our market cap went down since September <unk>.

And so discount.

Is widened to 51 excuse me 52 per cent per share 12914 yen S. The NAV per share and as of three o'clock today 6161 yen per share which means.

52% of a discount.

But again Nvidia about five of chewing Yang of unrealized gain should be expected them.

So the NAV should go up higher.

Course, we don't get approval. So we don't measure here about the NAV, it's I expect that the game.

Also on top of that paint Bay should grow further so considering that discount for me.

Effectively as our on 60%.

Taking into consideration of Nvidia and paper, so again, even though when we are in the middle of Lazard, we are seeing a bud like this and maybe not one but three buds.

Our over there and the snow storm.

That's for me.

Our message to shareholders.

I myself as one of the shareholders of Softbank group.

Against that backdrop.

We're.

There is 50%, 60% discount from a shareholders perspective.

How can we take advantage of that and turn it into something positive as opposed to a negative one they S repurchase again, I am a shareholder of SPG and I keep saying blizzard in the snow storm et cetera.

But to be honest I am excited because.

They are discounted against.

Our true.

Potential.

If that's the case now is the time now is the chance to repurchase shares. So we had that he did a discussion at the board meeting and we agreed.

That the walls, we purchase our chef one Julien yeah, I am so excited because I am a shareholder.

So I have been expecting this board approval.

So share buyback of one children yen.

How much we can purchase for one yeah, that's level that the agreed and approved at the board of directors meeting. So in one year period of course, we want to complete the repurchase of.

Our shares at one Chilean Yang.

And VDI excuse me now this is an important and L. T V needs to be taken into account and also investment opportunities, we don't want to lose it.

So finance policy investment opportunities and NAV discount those are very important indicators for us we need to look at so chances are we may not reach one cheering him in one year.

In terms of repurchase of a chair.

Yeah.

So.

Once you and Ian of share buyback, we want to we want to complete inland him, but we may not reach one children yen in one yeah.

Yeah.

If we don't.

We want Julien within one year.

Even though we may extend the period.

Of course, we have another discussion at board of directors meeting, but I.

I hope she.

Reach one chilling yen, even though it may take longer than one year, so anyway the <unk>.

Here is one Julien I'll share buybacks.

There are chances that.

Matt.

The true maybe longer than one year.

Just so you know.

Usually in the earnings result announcement I talk about some companies that we have invested in but today, we just wanted to focus on share buyback and import.

<unk> of the NAV again, thank you very much for your attendance and attention today. That's my that's all for my presentation.

Now.

A question and answer Lee take questions from our people.

On the venue.

For those who are on xena.

Okay.

Yeah.

Access to zoom webinar and press raise hand, the baton.

And wait for your name to be called <unk>.

And if you'd like to withdraw your question. Please press Lula hand bottom who'd like to take up to two questions per person. So that we can take questions from as many people as possible now we'd like to take questions from them.

People on the floor well one question per person one question per person. Please.

Yes, the white shirt are in the very front row. Please.

My name is Nakajima from killer adult sushi.

Other day.

You have.

It was a reported that the is invested in accuray's firmed in Japanese company and our sons on you'd been a worry that that there is not such Japanese portfolio companies, but I believe this is is this the first step four.

You have to start investing in Japan, what is your investment policy Oh, a Japanese company.

Yes of course, we would like to increase.

Oh are we like to see the increase of numbers, where you're investing a Japanese companies about 3000 companies are on our pipelines and where you're seeing the deal flow, but the.

It's really regret to say that the number of Japanese companies are so small although those are pipelines and ive been thinking this is really unfortunate but.

The first our investment has been made in Japan Biodiesel fund hopefully, we will be able to start seeing a more and more AI unicorns are in Japan, and hoping that we were able to increase the number of investments.

Next question.

Yeah.

Yeah.

Nakagawa from Toyo Keizai.

About S V F G.

I think committed amount is about 440.

44 billion yen.

So looking at the L. T V in the future.

How much are you going to build a commitment.

Well. Thank you for your question of course, we are looking at L. T V and other key performance indicator.

To make a decision.

But we are seeing sort of a list of companies in our portfolio and our exit and monetization.

Constantly.

Capstone should've come from them. So every year about hundred millions Yang of investments, we want to continue taking to account of L. T V.

So going forward hundred.

Millions of yen.

It's a commitment that youre going to build every year, yes constantly and flexibly.

My name is he should go Romeo Mudie newspaper, So I have a question about the jump on too.

I believe we see more and more early stage company investment.

But the.

Number of the homeruns are reducing but at the same time, you can risk hedge those but considering the Chinese market.

Any.

Ideas you have policies on the investments or a capstone policy made changes because of those changes what is your idea.

Do you saw my presentation.

Size, a case type project.

Is smaller or we are not making a big swing, but I would say 20 billion yen.

The investment.

Is already large enough compared to traditional venture capital is I really believe this is about 10 times 20 times compared to traditional ticket.

But at the time of Vision fund one we learned a lot of lessons, we studied and understand many things.

And I believe this is a quite the appropriate size ticket sites now and at the same time, though we would like to cover a many sectors, including Fintech medicare's diversified our portfolio. So that we can make a good balance in terms of region in terms of sector.

Where you like to make in detail our portfolio diversification, so that they're not a big swing not the big ticket size not the big risk.

<unk> will you elect to increase and I think we have a good system. Please take placed a number of deal was it's increasing dramatically so by increasing the KC steel cases, because we've seen the increase of number of cases, even though that we have.

Smaller ticket size, we still believe that the results are is good enough.

Kept all policy wise.

Okay.

We.

Not marketing to the external in this does I don't think right now we don't need to.

Ask for outside money I think that the weekend do by our own robot, we would like to do.

The old share buyback, but still we can.

Manage our balance sheet are two fold such investments.

Yeah.

Next question please on the floor.

Although from G G fishing.

In the presentation.

Are you mentioned arms.

Southern CIT and Nvidia.

And European regular Rigby terrorists are concerned in some press.

So currently what's your view on the prospect of a regulatory approval.

And also what kind of impact you expect from.

Competition on your end.

Investment.

Of course, the regulators want you reviewed very carefully and there have gone into second stage of examination.

Still believe that.

Yeah.

That review should be completed successfully I cant promise nobody can't promise, but I myself believe that a regulatory approval process should it go successful what about economic security.

Challenge or issue.

Even though Japan Softbank owns arm or U S. Nvidia owns argument.

From economic security perspective, I think it want to make a big difference.

At least in tumors of army.

Next question.

Second from the top.

My name is Sunday from Nikkei business.

I would like to ask for.

About the co investment program for the fund and I believe you have announced previously.

And.

Any other or how the any other peoples are joining this growing dismay program or what kind of allocation.

I myself it has committed to that program.

And for the other named Bud.

At this moment, we are still are adjusting.

And.

It was not shown on the my presentation, but the investment in public Securities. The company called SB, North Star, which I E invest about 30% in this company as in core investments.

But this is about to close or ENT.

Yeah.

So investing in Amazon, Google Facebook such public Securities.

<unk> has been made by that is the north star, but that is our son Softbank group.

It was about plus or minus zero.

So it was.

It was making a quite a big a loss before but as of today, it's about plus or minus zero.

The very beginning when we start investing in Amazon.

There's others.

This north Star the organization itself has not been created so my.

Investment has a little bit later, so he was making a big gain in the beginning but after I start it now joining this investment it became though so I think it was about 150 billion risk I took.

And the 150 video loss personally.

But as a manager.

So myself about 30% Softbank group about 70% that this 70% Softbank group portion of study it.

At the very beginning it was Softbank group hundred per cent and making a good gain but the after then ive made a loss so in total or actually the plus minus zero, but I came in later, so I was already in a negative a bucket so but.

Yeah, I believe that this is something that showing the management, taking a risk and a join the investment when it comes to that goes well then that we all make it happy about the when it goes bad then that the we all lose money. So for this vision fund two I would like to once again make a risk and I have.

Our confidence that we will be able to make this happen, but at the same time.

For other management to join and take a risk that's something a very tough.

Tough things to do if you need to pay your own personal money, taking a risk for several tens of billions of yen.

Just a very high risk thing so we do need to do the coordinate well and we need to be careful about that but to me as the captain of the boats that are north of 30%. This time, but the way you would like to take a we are taking I am taking that some tens of percent for this program Ah.

For this growing business program, not making any risk or the shareholders are so are there are some risk for this co investment program that is why it's taking a little bit of time to finish this.

Next question on the floor.

Oh Qahtani from NHK.

Talking about the investment and startup in Japan, you made the first investment in Japan, and second and third is there possibility to do that again and.

What kind of conditions have been met in Japan for you to making the investment and Japanese startups in fact.

Second deal.

Is happening we are talking with the company.

Negotiating on terms and conditions. So the second one should've come sooner or later and there are other.

Others.

Other potentials in Japan, So I can assure that we are going to have more and more companies that we invest.

In Japan.

Next question.

My name is also a bulk of them are sunk a newspaper.

I have a question about paper I believe this can be a big sprouts, a famous but at the same time.

I believe.

And now we expect the payback can be Super up but also you have line as well.

And it may.

Uh huh.

There are many of soup ups amongst you. So do you have any strategy on the sweep up type of concept.

I am quite confident and convinced that the tape is gonna be growing big.

And pay Bay.

Has created together with Softbank Group Softbank Corp, and Z Holdings.

Yeah.

Number of downloads of apps.

Amongst all these sectors.

Akshay the pay based number one these days.

Amongst all the sector or category payment up.

It's taking a number one position for us for a number of downloads, which is not the phenomena that you can see in other countries and actually even growing.

Number of transaction amount is increasing as well so I am so show that this is growing right now they are still making loss. So this loss.

Needs to be and I want to see.

I love the disposable to turn in a profitable I said are making.

Lewis.

But the gross margin wise now that they are making money. So I'll turn it into profitable when it comes to gross margin. So.

Well still a hub.

Such a cost.

So not the on it.

Yet not yet nothing comes still theyre not less but they are all in the same group. So I believe that that is going to make a good super App reached a collaboration amongst those companies.

Shareholders' value or I P O how about that.

Sometime when it when the time comes I really motivate it in the hope that we can see the company going public, but the value or the timing I believe it's too early to discuss at this moment for.

Three more people from the venue.

So he came from Nikkei Asia.

Searching companies to be in this study you mentioned in the presentation and one of them should be P. T M in India I believe.

But the issue lies.

10, 2 billion or so.

So maybe a little bit lower than your target level, so that kind of a market expectation.

Yes.

What's your view on that.

So or what's your view on potential of P. T M in the future. Thank you.

Well I believe P T M should a girl.

Significantly.