Q3 2022 SoftBank Group Corp Earnings Presentation
[music].
Okay.
Thank you. Thank you very much for waiting they are everyone.
Welcome to the Softbank Group Corp.
Earnings results announcement for the nine month period ended December 31st 2021.
First of all I would like to introduce today's participants.
From list.
We have muscle your son, Chairman and CEO .
Yeah.
Okay.
Yeah.
You'll see me to go talk bold gesture and CFO .
Okay.
[music].
Cause would go to me, rather senior Vice President and head of accounting unit.
Today's announcement is live broadcast over the Internet.
Okay.
Now I would like to invite Mr son, Chairman and CEO to present, you the earnings results and business overview.
He said something please.
Yeah.
Okay.
Thank you very much Vicki so speaking.
So now I would like to start my presentation.
First I want you to look at this photo.
For the.
People living in this modern society I believe that the you know what do you see this is.
Put a microcomputer.
Actually when I was at Ts.
Yeah.
And in United States I was a student that's been study.
I was on the college students who needed it states.
And I encountered.
This photo.
Microcomputer chip.
Which is the size up on your fingertips.
And with Stifel.
Disgavel work is on the computer D. C is a microcomputer and when I learned about that.
Yes.
Actually.
My fingers up my hands wash shaking.
He was very impressive.
And that actually you must be a peak.
Big milestone for my life odds on.
Businessperson.
So I was very much interrupted by the microcomputer.
And since the after that I founded supposed bunk.
And in year 2016.
We decided to acquire the company.
We.
Are playing a very much central role in micro Oh computer chip.
This was.
Oh do you guess you saw the photo in the very upper.
First the size of mice that was back in 2000.
Oh excuse me 70 years taken a deep and it was only about 2250 units.
Of the computing power of Cpus.
So even 2000 units each quite a large number back then and that was a very impressive.
Impressive.
Change.
When you look at no only one chip.
Ali 10 billion.
John This is Matt.
Installed.
Okay.
So computing power up CPU.
Has been let's say they do it alone we see increase of the number of.
Units.
So like you saw in IBM.
Which created the large.
Computer like this room size a computer.
Oh.
And then that the D C. It's like Oh sides of the fingertip.
The size of that chip and that has been improving gets capability even farther in the.
It almost every.
Let's turn except that you can think of about the households are using this chip and in this area.
Armies actually taking out.
Overwhelming shares.
In this area. This is a number of based chips shipped in October so far cumulative 210 billion units.
And Akshay 25 bcm per year basis.
Increasing our shipments.
Continuously.
Thanks Buck.
Since the human being born there are lots of stories about the ways you'd know human but when you say homosapien sub yes.
Born.
And there are about 200000 years past.
And since almost the whole homosapiens born.
In a 200000 years ago.
And the cumulative number but human beings things thin.
I would say about 100 and Tim good young people.
In these are 200000 years.
So if you add all that all those people I will say.
110 billion people in the auction. He was this calculation. These hub in 10 video and people are having to per person hasnt been shipping such a number of chip to the world. So akshay. This is twice as much of number of cumulative people are huge.
I'm being so this earth in that 200000 years.
Right now we have about 7 billion people on the Earth and.
We.
Count from the baby to D O elders.
I would say 30.
Chip per person or using.
Are used so this is a tremendous numbers that we are speaking up.
So a M D. C. B you there are many companies actually that you Gary Ah think of when it comes to the CPU, but number of CPU was I believe.
Is taking a tremendous an overwhelming market share so far.
Okay.
And so this is a.
Joe or type of the company.
Company, which we bought a that can do thousand 16th but last year, we have announced that the way you're gonna let go.
Because we needed to do to the Covid situation.
That was about two years ago.
Or.
18 months ago.
There wasn't so much uncertainties, how badly the COVID-19 brings us to the world and back then that we have announced 4.5 to union.
<unk> program and as a part of that program.
Because when you announced the race for type two Union Oh about yeah, and actually we have achieved in six months as a part of this program.
We have also decided to that.
Our goal.
Reluctantly.
But we didnt wanted to simply let it go.
So he was like sold by book, but.
So the.
Hudson that Nvidia that tried to have.
Have them together and being a shareholder of N V. D. Up then we believe that this is going to be our most powerful or company that we'd be able to create and also where we can create the strongest company in the World. Then we wanted to become the major shareholder.
Oh, such company so that is why that.
We have decided to sell arm two N V. D. Oh, then and we agreed we announced.
And B, it's our aim to become.
A major shareholder it'll been be deal, which would be a great.
Petition for us, but since then.
Indeed, I D industry.
They presented by golf are those major players in the industry.
They all against the idea of such transaction.
In addition to the U S Gulf of Maine to UK government in some EU countries government.
Against the idea of this transaction.
Usually.
Antitrust is claimed a if you are marching in the same industry. So if we end up the automobile industry. If you are creating a N. G. In that you can I know the company is creating engine and that those two companies merging together then that the engine market share is gonna be.
Monopolized, therefore that the antitrust.
Ian However, nvidia and the army's creating completely different thing, it's like a engine in tires.
So we are running the totally different business.
And to the company's margin.
In anti trust is actually a claimed of all this transactional I believe being the history about they trust our discussion this could be the first case to claim the antitrust violations Oh go such as two different kinds of the companies.
<unk> do they have to.
Broke this transaction.
And I.
Delete that's how.
Each rig without the lease or those are major players in the industry.
Well, so eager to block this transaction that's how.
Was or is a strong or is valuable.
Because jade the ingestion indirectly those players all using products, which is essential in a one of the most valuable company.
In the industry. So that is I believe Hawaii that the people are those concerns thought these were against these transactions. So today.
We have.
Okay.
Agreed with Nvidia to terminate the sale our board.
From Nvidia side.
They are still.
Perhaps some feeling towards this transaction. They are we are very much willing to do this transaction, we kept the passion for that however.
Each government rig out to these in those major players have been showing the strong position against or block the transaction.
So that the even though we displaced the ABA a tremendous therefore do we disc.
Decided to terminate the sale or the time, Nick this transaction.
So in this case, we are hitting towards plan b.
Doug shared the originally speaking.
Since the condition the barn.
Where you are.
Okay.
Yeah.
Expecting to grow this company public again in toward the five years later.
And that has been my comments things are the condition because once we acquire this company we prioritize this company and became the private company, but after then we invest.
In many areas in the arm and once it's really been that we want to aim for the IPO.
So that's something that we've been discussing from the beginning of the condition of the company.
So I think.
Timing is actually match.
To your fiscal year 2022 would use the term till D. A much in a 2023.
So from the beginning Oak study, where you are.
Who pink or aiming to bring this company to go public once again around this timing.
So actually we are.
Coming back to the original route.
From the much as point of view with Nvidia will you are choosing plan b, but dog study, we or you should know scenario was to bring this company to go public again. So this is the original plan again Oh that's the.
This is a very big announcement.
So that I wanted to bring this news in the very top up my presentation. This is the highlight for my presentation today.
Has been powered the smartphone revolution, Oh smartphone around the world. A smartphone you have you are using I would say close to 90 some percent.
Are they using.
Designed C. B U. So the majority of the smartphone and around the world is using design chip and that this oh has been powering the smartphone revolution going forward, we believe that the such a product is going to power.
Oh, it'll cloud met Abbas Iot variety of the areas. We believe that the army is going to be used and that's how they've been.
Evolving itself.
So why.
Okay. We aim for the IPO in five years after the acquisition why I have been saying that the we are we are.
<unk> for the REIT.
I'd be Europe . The company in five years is because since the designing work starts so that will take about two or three years and then once the design is complete then.
There will be about to have another year to for the go to market by making just a chip to the production.
So since we decide the cheap and full five years, then that you'd be able to see the product itself in the market.
So immediately after we acquire the company it's not the only smartphone. We we are a very strong conviction that the army is going to be used not only smartphone, but it's going to be used variety of things.
So these are computing powers point of views.
We are we are a we have a very strong belief that that he has a strong power and some people say that the Intel C. E. C. O is our strongest in terms of the CPU computing power, However, I wondered.
Considering.
The computing power CPU Akshay, it's going to be used in the.
Even more products, so by making up.
Preempt our investments in R&D tolerance engineers.
We wanted to we have decided to develop and also expend.
Such field.
In setting from this year.
We will be seeing such product lines. So the seat we made.
It's going to be a cherished.
And now that they will be able to see the fruit of the bar seat. So army is going to be on the sitcoms gross stage I'm. So excited.
I am very excited and happy to see this movement.
So.
My summary here.
Is that the we army we'll prepare for the most significant that appear in the history of the semiconductor industry. So it is going to start its official preparation for ipos, but that's something that I wanted to share with you in the beginning of my presentation.
Yeah.
So that was the biggest highlight.
Today about the poorest I have to touch upon all our performance business performance like I mentioned in the last Oh without announcement.
<unk> ended up Middle office believes aren't a storm and the storm has not and did that in fact a storm.
Got stronger.
In the United States and other countries.
Yeah.
Although the peak of the COVID-19 pandemic.
Once past, but.
Now.
Long term interest rate is going to be higher, especially is stock price off the growth companies are still in the middle of the storm.
In fact, many companies I saw their stock price hit in the market.
Especially and growing companies not to be attended to invest their stock prices are hit.
Hard and the last yes, our performance was probably too good for us that now we are seeing in the.
Downward trend, but a more important indicator as a NAV net asset value.
Even more important than.
Our sales and income in tumors of accounting, because softbank wants to be an investor.
Well investment vehicle.
More important than accounting numbers like income and the cells.
And our net asset value, whether it's down or up.
Let's say the body of a stock price as hundred.
And if our net debt as chunky, then that net asset value is 18.
That's the most important number for us.
Again.
I'll stock price hundreds now that turnkey then.
T S net asset value to us.
So without a T goes down to 60 or 80 goes up 220, that's ups and downs are more important for us.
Since the peak of our performance, we have seen a tremendous loss.
Since our September term last year and December sure I mean in the last three months, we saw about one Julien yen loss.
What's more important issue that we have to look at more important than our net income from that perspective, I keep saying that we actually end up middle of the storm.
But the since.
The listing.
Even though we saw some ups and downs, but.
From broader perspective of the trend as a board as you can see on the chart.
Even though there are small ups and downs, but in the big picture and a big trend.
We got to this off of food is president regardless of asset or interest rate.
So from.
Trend perspective, I believe that D V Ara.
On the upward trend and this in this chart Orange indicates Alibaba and the Blue indicates a mutual fund and gray and others.
And arm is included in our.
Others.
Vision fund obviously.
Is going up in the Big picture.
So vision fund keeps going up and others.
Little bit ups and downs.
And the biggest loss be a sing S.
Orangey.
At the peak.
The orange.
Alibaba accounted for 60% of net asset value, but now 24%, whether it's good or bad.
So alibaba share price.
Yeah.
Its impact on net asset value is getting smaller.
But in the last three months.
The biggest driver of the loss was Alibaba share price.
And our U S China issues are.
Hutch.
In the news now the only Alibaba, but also through vision fund, we have invested and the Chinese businesses like a D D.
It's like a Chinese version of Uber.
And since the Investor day, and D. D. We have seen a huge loss of a value So vision fund.
And.
Alibaba I mean Chinese portfolio that we have so there'll be junk bonds and Alibaba.
It accounts for 30.
2% of net asset value.
U S is going well and the Japan Asia, Europe also going wall, but in China.
The <unk>.
<unk> seen the biggest loss.
Since the peak.
In terms of net asset value.
By the way.
Again, a V or Softbank group.
Whose core business is investment.
And another important indicator that we have to look at as an investment company S. L. T V.
Net debt.
Divided by equity value of holdings, that's L. T beam, let's say we have no debt.
T a off the.
Equity value of holding 100, then L. T b should be 20%. So the blue is the holding.
Including Alibaba and vision fund to put the full deal et cetera.
In fact, 90%.
Almost as a listed accompanies a portfolio so looking at the P. L and balance sheet, it's difficult, sometimes people say to cultivate and value but.
For me, it's simple the balloon park in this chart is a.
Baidu of other holdings and an almost 90% of that is enlisted our businesses.
So every day of those companies are valued in respective markets for example, Alibaba.
And other companies invested by vision fund.
In the market.
Valued in the market. So that's why it's very.
Easy actually to calculate the body because most of them are listed here.
And a S. R V.
Subtract on net debt.
A red portion on this chart.
Oh, Wow L T V or loan to value, which is very important.
Is.
Describe it here in fact, I checked four times a day.
By looking at the most two important numbers Knapp and L. T V. Those are the only two numbers that I look at every day to calculate a body of Softbank.
People say that Softbank as really complicating, but for me it's simple because the.
The only two numbers you have to look at S. L T V and NAV.
And in a normal operation and business as usual a 22%.
Excuse me, 25% or lower.
<unk> B E L T V.
And even.
Abnormal times like.
Financial shock like Lehman brothers bankruptcy.
The Red line, if you will.
Should be 35% be cant exceed 35% of L. T beam, but at the moment, we are way below 35%.
And even below 25% in normal times, that's the level that we want to manage.
In two months of L. T B, and we are lower than that 25% threshold.
And we don't fund plays a central role and Softbank Group and let me touch upon the performance of Vision Fund.
This charge disc.
Describe the performance of vision fund since inception, our vision fund.
Weather.
We have cumulative loss or gain that's shown on the chart.
Yes.
The line goes down the deal right. It means we have lost and let's say the invested hundreds and.
Now the value went up 220, then attentive should beat the gain so that's how you look at the chart. So every three months ups and downs, it's important but the more important b.
You have to look at the border picture to see where the Softbank vision fund has accumulative loose or game against the investment that they have made.
The breakdown is here.
Dark Blue shows the vision fund, one which started all the other in vision fund two it took three or four years to start seeing a gain and the light blue shows our vision fund two's performance.
Okay.
So vision fund one's portfolio as you can see a they have a plenty of qunar Tampa gain.
Of course, two years ago, we saw a negative numbers and you do some issues or challenges like a D D.
But.
Since then they have.
Built up gains.
And accumulative Oh.
Again.
S.
Yes.
About six.
Points for Chilean yen.
And the Red on this chart indicates China Green Asia, Europe , Latin America, and the Blue U S. I said earlier that Alibaba stock price went down sharply and that had a negative impact on our nava Likewise in tumor cell vision fund them.
They have to put the full year companies in China has a negative impact on our vision fund up a woman a still.
From a cumulative perspective, they are not suffering from a loss.
Even Chinese companies invested by vision fund are still giving them game.
But some gains they had the cumulative it have lost.
Other than China constantly those portfolio companies in other regions have a built up game.
And geographically U S.
Is in Blue in China in our rent.
In other markets in Green.
So from market value prospect ever.
Okay.
Okay.
China in Red.
Yeah.
Is almost equal to the amount of investment that we have.
And our U S and other markets they have built gains.
And.
Revalued in accordance to.
Our market value then.
And then the competition looks like this.
And I've asked a number nine month, a zone of vision fund.
Invested.
For for Chilean M, and where the money came from them.
Three points, a Chilean Yan out of $4 four trillion yen.
From these young fun.
Sale of this disc docs.
So.
For new investment.
They use.
Cash from vision fund sales of listed stocks.
So that cycle over.
Resources are running pretty well.
Ecosystem works.
So how much is sold how much.
Still on the portfolio.
As of today.
This did a portfolio companies well vision fund in principle invest and unlisted private companies and then they exhibit and to go public.
Some at least at the companies were sold and other companies they still keep and that's.
On this chart.
After investment some companies to go public and.
10.5, Chilean Yan.
And of that.
3.3 trillion yen was sold and that cash from the sales of companies.
This transfer it to new investment.
So.
Three children Yan.
Yeah.
Was he used for our new investments in private companies a unicorn companies.
And vision fund.
Or in it.
Also known as 10 Chilean yen fund.
V had other investors, including all our stuff and.
And Joe Myself Vision fund one now.
94 companies were invested at by Vision Fund one.
And there were some uber issues and we work issues.
And many people would say that Softbank vision fund one didn't work well.
And the other well soda party investor or some.
We don't like it and.
Okay.
We weren't in the situation, where we couldn't find we couldn't get the money from third party investors are then we started investment and with our own money. So that's how we started and visual fund to tune in this chart Orange and Green.
That's helpful.
Investments.
Overall Softbank vision fund to have invested in 441.
And of them hundreds by vision fund, one and 300, either by vision fund two or at that time.
So vision fund has been working well and.
And currently we are selling some our investments and are investing into new businesses. So that's equal system. It works well with our own money.
Sure.
Vision Fund two was started and turn to Tianjin.
And since Jan to Tien Tsin Huang.
In the last at <unk>.
Nine month, they have invested in about 240 businesses.
And looking at the scale.
Of the funding amount.
D R.
The biggest.
Venture capitalists in terms of funding a month.
Other venture capital.
Companies invest in most of our businesses, but the vision fund's uniqueness as investments in companies.
Leveraging AI.
So in terms of AI related markets AI related sectors.
Softbank is the number one investor venture capitalist in the world.
So are the companies that we invested in have been growing well.
Well.
And in terms of number of companies have listed.
Entrenching G well.
Since the start of vision fund.
The number of companies going public has been increasing.
Some years ago, I talked about a golden goose and their eggs.
And.
In terms of the number of Golden eggs.
Meaning number of companies going public has been going well going up and this a green bar.
Is the number that we achieved it in nine months. So only in nine months not 12 months in fiscal year 'twenty. Two are doing 125 companies. All went public so that number should go up a little bit more by the end of fiscal year.
Okay.
Most of the companies went public.
They.
That said wed.
Profitability, but after listing and the vast in nine months.
Most of the high Tech companies stock price, where it hit heavily.
And after listing of the company's investment by Vision Fund.
After divesting at that our stock price.
Are negatively impacted by the market.
So again.
We are still in the middle of winter storms.
Like I said earlier and a winter storm and still continues.
That said I believe that we will see a spring sooner or later and to be keep sowing seeds and even in the middle of the storm the begin to see the shooting of the seas, we saw and.
Steadily.
The fees are growing.
Okay.
So that's a pretty much stand or the presentation of our earnings results announcement.
But again, our key message today is arm.
So is back.
I, just said back, but actually I should say, it's stopping the growth stage.
Finally.
So absolutely we are preparing.
But the preparation phase.
Is and and now that we're on the growth stage and we are seeing a clear sign of it but this is the revenue chart.
Back in 2000.
18.
And since then.
Oh the ribbon you.
Do you believe that.
Because penetration in smartphone.
It's been a cool so that Oh, it was a little bit about the unit revenue. However, it starting from fiscal 2021.
I mean, it's growing again. So this is a take on the growth stage.
Well Gordon in stage I would say that they is entering.
And 40 seconds growth stage.
We have preempted a several investments before well what they'll preempting oh, the indefinitely because they don't have any factories.
It doesn't cost from that says, but the number of engineers, that's the investment that we have made.
So to increase.
The number of engineers those are of course.
Increase because we wanted to increase the number of engineers. So that's why that that affected our EBITDA. So our revenue was about flat. We just added the number of engineers that they'd be though of course decline.
So that you can see but finally yeah.
We start.
Seeing the Arabian you're backing but again.
So that the those seedings.
Our growing.
And starting from this fiscal 'twenty do you all know that we are seeing more and more fruit.
As a result.
No we are to see the AR increase.
In revenue going forward.
These are that are we are on a growth stage of revenue.
Of arm.
So I I knew it from the beginning I knew it that's why I said that from the beginning and we wanted to.
This company go public again in five years or so that was our first day of their goods issue that they were saying so.
So this is exactly what I have expected.
In terms of the pace.
And in terms of the.
Products that we are seeing these days like I mentioned, there are a number of engineers being increased with our investments every year basis.
The extra the pushed the EBITDA dome, but finally here.
The Wii.
To see a more and more products coming out from why.
Is grid company and why do I believe so.
Cause has a great high computing power.
If I say so many people would see indoors should be better in terms of high computing power they'll put many general public may think that way.
D M D. In the same group a series of infill probably the same but all my sub study made making its own development, which is the low power consumption. So are made very unique.
Our development.
Which is a bit separate type or different type of the evolution. So the competing polar.
Lawyers, the polo, but how should how can we keep up all our concepts. So law of course after we need deeper each cpus, but if I if.
If I may.
Make it a story of a automobile or the engine the one.
Output.
But of the horsepower should be improved however.
Well a number of cylinders.
Not one, but if you make it double or make it four times or eight times.
So you get you can increase those cylinders.
In the car engine automobile motive engine, if you how about a G. Eight cylinders are forcing there's like 816 are sitting in theirs.
You can describe the automotive engine like that and and you put it into arm the core which is sitting does a case or automotive so from the encore.
That has been evolved into multi core.
So that smartphone as of today core.
I would say.
12 core are installed for example.
And actually that is increasing from one to two to four to eight to 12. So that's how it's increasing.
Other than smartphone.
Like I mentioned earlier.
It's been evolved in other area as well so why.
Was taking a enormous market shows in smartphone area are very much closer to 90.
I would say, 99% are being using and the extra the low power consumption is a shrunk Chi I believe you all using a smartphone every days if your.
Batteries die in the middle of the day.
You may experience in the past I have experienced such as well, but the if you have a smartphone battery died in the middle of the day.
Rest of the day, it's gonna be.
The disastrous right so that the keeping of battery life long enough, it's going to be the essential for the smartphone products.
If you put it in our automotive foreseeing does east windows.
Concerning so much gas.
So if you eat so much guess.
Then the owner of the automotive.
Although you can earn a good horsepower, but you have the hedging eat so much guess that doesn't really make sense for why he's taking a good share of the smartphone, it's because of low power consumption and.
Improving gets high computing power. So that is why that we believe we were able to take our.
Greg market shares in smartphone maintains thinks I think same thing is happening in cloud.
The product armies, providing two clubs.
Extra the.
About 128 core arm.
Our installed in one chip for cloud.
So it's like a 128 sitting does for engine. So it's like a 10 times of the chips for smartphone. So sometimes you know future I would say 256.
1024.
Cores. So for one chip you may see 1000 to 28.
Sitting does in the one engine so that's going to be a tremendous cough. So that is going to be this strong gift.
Super Computer for example that the Hudson has produced a supercomputer, which is our strongest and Oh sorry. They are also using and Ah by having a several products you would be able to make a such a football computer.
So you may say that that Intel may be stronger in terms of the capability. If you compare one core versus loan core their core maybe.
Bitter, but actually that the hours are even door consumption with same capability. So now that the Clos D. C are playing defense a role in computer.
And actually they require the.
Very good tight computing power and cloud area.
Amazon, which is one of the biggest cloud business a player and now they are also migrating to a core system because.
Cloud datacenter.
Operation cost.
Thanks, a power I mean, 60% of the cost operating cost of such date doesn't enclose our power cost.
Cost so actually electricity is more expensive than chip.
And in if you choose them you'd be able to reduce 40% to 60% of such electricity cost.
The 60% of the operational cost for the center is the electricity cost and if you use arm of course, you would like to you'd be able to enjoy the lower power consumption, which reduces our <unk>.
Electricity cost so that's why that the people are choosing so Amazon if once they decide to choose arm.
Microsoft or Google, who are the competitors are Facebook Alibaba.
Our worldwide cloud major players.
They come.
To one after another.
So what we've been working what we are preparing other than smartphone those seats are off study.
Coming to the AR on the ground.
And now.
In addition to that.
Electric.
Veeco.
About 40% of the cost of battery.
It's low power consumption and if you can.
Earn longer distance, that's very important for electric vehicles.
And.
That's a D. One of the biggest and most important agenda for electric vehicle.
So if you.
In.
Chris This is Pete.
But at the same time.
Because you cannot go over the speed limit so that the oh the speeds before the speed limit, but still you want to go farther in terms of distance that's how you like to.
Prepare for the automotive industry and that will be the competition for automobile industry and Oh actually computing power is the most are consuming in terms of power and now that we are heading towards the E D electric vehicle era.
Without them our picture.
I don't believe that we will be able to enjoy this low power consumption with high computing power.
That success in smartphone principles or the concept the benefit of those can be also utilized and verified and cloud system and the ease and in the electric vehicles industrial I believe it will be seen the same so with those two main field. We believed that the army is going to.
B are very powerful and important player.
So like I said, hundreds and 28 cores 256 core a thousand and 24 of course, so those core number of cores in the one chip is going to increase.
So that that the army is increasing going housing high computing power without eating too much power.
You know about the beach going for example, the issue of Bitcoin.
So there are a lot of benefit does fail, but also there is a biggest disadvantage for bitcoin if you.
You increase a number of big call you need to do the mining if you do the mining you need the U S that eats a lot of powers. So mining a bitcoin requires so much cost of electricity and thus you actually.
Now the cost for that mining.
Exceeded the volume of the power usage in Sweden, a country itself that wasn't kind of articles or the media coverage that the we heard so inc, enhancing or exceeding only buy bitcoin itself.
No.
So there are lots of other crypto currencies other than be coins and I believe these met a bus or in many areas that we're going to see area, which you're going to require computing power.
And Claude.
Hello consumption.
For example.
365 times in 30 years in terms of energy demand for cloud so comparing from 2010.
So we have spent about 10 years or so.
And even then.
In 20 years ahead.
This is the demand is going to increase even further.
So not only the bitcoins, but also.
Autonomous driving is going to require a lot of computing power.
Claude.
Hello consumption is going to.
Increase.
Without architecture.
Because.
In our in the coming future for the pillar of generation, that's going to be difficult to.
Use a voice at Balco and others, so that we need to switch over to the renewable energies, but for the global wide.
Even though we had installed the full upon the robust too we believe that the way you're going to be insured in terms of the needs for the power because we are expecting so much increase in the power demands.
I don't think Intel architecture can solve this issue.
If not that's the picture I don't believe that we can solve this issue that's why.
Like we saw in the great market share is in the army and smartphone we believed that the army is going to be used in many other areas in electric vehicle.
A 250 times of the polo demands in 24 years.
You see in Tesla and others that there are many electric vehicles are coming in the market and many of the culprit does a switching over to electric vehicle once you migrate to eat electric vehicle.
Instead of guests, so you're going to use power.
Electricity is no generated inside of the car.
The public companies generating the electricity and the public company generated electricity.
It's going to be used in cloud and E V electric vehicles, so going forward we believe.
If not I'm architecture, we don't we always believed that they it's not gonna be solving such an issue for demand showed the excuse me the supply shortage, though.
Oh, it's close in autos is going to be see job ought to be a growth stage. So now that we are facing or entering into the thick on the girl stage finality.
And this is to be the great timing.
That though we are.
Aiming to bring this company go public once again.
So a deal is nvidia or <unk>.
Of course, we are hoping to be able to close that with successful ending however.
This is also a great scenario not bad at all as a matter of fact looking bucked probably this could be the better scenario, that's how I want to see in a few years ahead.
So that's how I think D. B My heart. So now that we're 18 entering into the Golden time about arm.
And towards that.
And we are welcoming the new leadership for.
And though we are a being a great leadership.
And they will be assisting and leading the second growth stage of.
In more aggressively and also was in logistic way that though we believed that we would be able to go to this stage.
Asylum seekers.
Who has a great leader who's been leading on for the past great to development of our business.
And he himself.
Wed like to.
Pass the torch to the next management and the he'd be commended reni.
Successor.
And I myself.
Hum met with Renault for several times and I think he is the one Ah is don't do to lead the company. So we are.
This today.
Sided to appoint him as an elite are for the company and the unsub.
On the right hand of all already too.
To support him we have asked either to together with rent it to lead the money the company to accelerate that they built meant the company. So here on that that we actually would like to.
Connect to Renee and inda.
Yeah.
Sure.
Uh huh. Thank you microphone Oh, no, Ohio resigned most everyone I am very happy to join you today to talk a little bit about her myself and anger will take the next few minutes.
Giving you some more highlights about why we're so excited about our future.
Okay.
Yeah.
Yeah.
So building on what.
Martha has described regarding arm.
One thing I would like to share with everyone is a very important detail regarding why we believe arm is the most important computer architecture in the world.
It really starts with software the rope software lives and thrives on arm.
Arm has more developers than any instruction set architecture on the planet, we have more applications than anyone on the planet over 15 million developers over 10 million apps, we have the world's largest software ecosystem.
Sport every major operating system in the World living Android Linux Windows three Argos this is very important.
Is Martha was talking about the future evolution beyond the smartphone into.
The data center and into automotive and other areas like Iot and the matters.
Having a very large software infrastructure is very important.
Martha just a bit of history softbank are around.
Around the 2016 timeframe.
At that time, we had a very strong business.
Our phone, but our business and the infrastructure cloud and automotive was just beginning to grow.
You can see from slide here.
Who the partners were.
That we were working with them, all the time and particularly in infrastructure and automotive.
We were really just starting our program.
In the last five years under Softbank, we have grown our position in these two markets significantly.
In the mobile space, we've still continued very strong market share, which we have today.
Again in the automotive space.
Data center, and Hyperscale or significant growth.
Many new companies and you can read the logos here Broadcom am here Microchip bar.
Rene sauce, Texas instruments and also in video.
Going forward, we are very confident about our growth in these areas.
Particularly again, we continue to have been very very strong market position in smartphones.
Going forward our growth in the data center and automotive continued to be very significant.
Now Mark you gave some detail.
Jason as to why and specifically the fact that when you think about the data center of the future.
Or the electric car of the future takes share many of the same attribute and a smart condos that is they need a very strong software ecosystem at the same time, they need to be very very efficient.
And this is a very very good place for arm to grow and more importantly, we have very significant proof points already that we are growing.
And to reinforce.
The real forces that Brian the smartphone economy are the foundations around the data center and the automotive.
And again, we understand the recipe we understand a formula. This is a trend that is being driven by these markets and arm is extremely well positioned to do well here.
But more importantly, we should talk about real data real proof points in the industry that showed that we are growing.
One that I would like to highlight is regarding AWS.
The U S. A number of years ago to launch a processor call bulk rabbits on graviton with first.
He built by AWS.
For their <unk> or their elastic cloud.
Their next gen or a second generation product Rubicon to.
40% better price performance over comparable generation versus the 86. This is very important because in the data center. There is a very fixed budget four area.
Budget for power. So in that area, you want to be able to maximize your performance, but not give up anything around price.
Can see what the advantage it looks like for grabbing onto just for a moment.
Performance standpoint.
But more importantly are the proof points what are your customers doing.
48 of the top 50 customers on AWS and easy to use graviton too. This is proof that not only is the performance data real but customers are seeing it and customers are using it.
And at the end of last year, AWS announced their new product gravitas three.
25% more performance and gravitas to so the trend continues for US AWS is a fantastic partner.
Proof point, but also a very good example of something that we can extend some of the other markets.
Okay.
Another area to speak about is automotive.
And automotive is increasingly becoming a computer on wheels.
Is becoming not only a computer on wheels, but as we move to the.
Transition to fully electric vehicles that are going to be having some level of driver assist.
They become not only more complex, but they obviously have to be very power efficient.
Very good place for arm.
The car has many sub systems.
The digital cockpit.
Our train.
Telematics and of course automatic driving assist autonomous all of these four areas use arm today.
You can see the partners in each one of these areas.
Oh proprietary technology to building system on chip using all.
We are now becoming tobacco standard in cars with some cars, having 10 ships 20 chips. Some as many as 30 to 40 arm chips in a single car and that's just today that number will only increase and grow in the future.
The common software that people were right for these applications.
Very power efficient architecture.
And a constrained battery make arm a very very good solution for this space.
Now with that I would like to turn it over to my partner <unk> interesting, our CFO to talk a little bit about some of the financials.
Thanks, Renee and thank you Martha or are inviting us to speak on today's earnings call Hello, everyone.
I'm so excited to be with you today as we talk about next chapter of arm.
Our plans to go public to.
To establish a very strong.
Business model in the coming years as we go public.
And continue to invest in my couple of years here now its been accurate is that arm I've been very impressed by the strength of your arm portfolio of products and what we've been doing in some of these new markets by months I was talking about and really we're talking about with.
<unk> been beating in fact, the five year plan, we have put together at the beginning of 2020.
And we're very pleased with that.
That you saw in some of the chocolate Mazo presented I wanted to just give you some more financial details.
Just using one or two slides actually.
Router bright prospects for the future and I'm going to use mostly this slide had talked through most of my comments.
Let me address the first box that you see on there, which is really about the fact that.
<unk> is the undisputed leader when it comes to smartphones in fact, there's almost 100% chance that the smartphone that you're carrying with you right now.
Powered by arm Cpus.
We are that pervasive.
Nearly 70% of your population in terms of our various technologies and the products.
And in this current fiscal year in FY 'twenty, one on a year to date basis.
We have seen our mobile segment revenues grow 29% year on year.
And as I look forward all of the devices that are powered by arm in the mobile segment, whether it's the smartphones that you have or increasingly the laptops that you might be using.
All of these will be migrating to <unk>.
And just at the right time arm has been rolling out our new version nine architecture. So the combination of these two trends I think create enormous AI capabilities in end devices.
Which frankly for US means there's more arm content in every single device and that results in higher revenues and we've just signed a number of licenses for benign over the last few years and we think we'll benefit from that in the coming years as a result.
And as both my son, Renee did say also we're gaining share.
And data center, and we're gaining share in automotive.
In the automotive segment that we have obviously as cars become smarter and cars become EV or <unk>.
They require more and more computing power.
So as we look at the results in the first nine months of this year.
<unk> also been taking share in the automotive segment and that business has actually grown.
139% year over year.
Year to date this year and.
And we think that that growth can continue we think our investments will continue for sure.
That segment evolves and matures over the next several years.
If I think about infrastructure and you heard me talk about our infrastructure business and how important servers. For example are and how important the arm architecture is kind of at this point in time.
The infrastructure segment for us the revenues grew 65% year to date.
These are incredibly strong numbers so the momentum that we've built.
By gaining share by entering new markets by rolling out new products.
It gives us the confidence to say as we look at the rest of this year and a full year basis.
And the second Washington, what I'm now referring to were forecasting that our revenues will grow 26% year on year.
In FY 'twenty one.
So the bottom line is our strategy has been working.
We are now forecasting both record revenues and record profits for this year.
In fact, when we grow 26% this year it will now be the second year in a row and we will have grown double digits.
So we've established a very tight cost discipline at the same time.
And as the teams have worked together to prioritize all of the different projects that we have we're not only investing in those products, which we think will have the highest ROI.
And as you saw in my first chart. We've now successfully executed a V shape recovery and our profitability over the last couple of years.
As we look at our business, we see a very highly profitable and cash generative business.
If I think about the balance sheet that we have it is actually a very strong balance sheet debt free.
Every year, our gross margins, which are north of 95%.
Create the cash generating power that we need to apply against the investments we have to make to grow the company. So we are very confident about our ability to invest in our business to grow the business and to actually win in these new markets that we're entering.
And we will continue to innovate for our customers, which is what arm has always done and we will do on an accelerating basis going forward.
And just on the last bullet that you see here it's important.
We are a new arm.
We have a new leadership team.
We're going to be bold about our future.
We're going to execute on a very bold strategy and we're going to do it with confidence.
And if we do that then on the next page.
What you see is that we will begin to set up.
A very very impressive.
Story for our investors in the future.
As Mark outlined we are now preparing to be actually I think the most significant IPO in the history of the semiconductor industry.
As a company we have been investing in the projects that we need to via public company already for about two years. So we've put in the systems.
Natural processes, we've hired talent and we're putting the controls in place now.
There's a lot of work to do as we look at the next several months.
But as we think about it.
In FY 'twenty two.
Feel very confident about our business strategy and we think about a very successful IPO.
And with that I'd like to hear about.
Microphone back to you please.
Okay. Thank you very much thank you.
And in the radio appreciate.
So that is all for today.
Is that do we have prepared for this earnings call.
So we want to be the.
Kept studies Vishal kept studies for the AIB evolutions.
And I think this is a great new next chapter.
And we are preparing for that and the key for that is going to be that's how I feel.
And.
Again, Amit Birk.
And they are entering into the garden's fades.
Yeah.
So it's a different from two years ago.
Our financials.
Okay.
Actually.
In better shape.
So we have even more confidence.
In the Marcellus for the future I am so excited and I am so looking forward to see the next chapter.
Thank you very much that's all for today. Thank you.
Thank you very much now do you like to take questions.
First we'd like to take questions from the floor.
Please wait for the microphone and stopped with your name and affiliation for those who are on the June . Please oppressed arrays Handbook Channel then you have a question.
After you access Jim Webinar.
And wait for your name to be colder if.
Does that get you withdraw your question. Please make sure to press a little why hand the bottom.
I'd like to take up to two questions per person. So that we can take questions from as many people as possible.
Now first on the floor.
Okay.
Yeah.
Nakagawa from a Toyota case I have two questions first.
About Marseille the.
Laura.
Who stepped down and.
Sure.
Tell us a background of his resignation and the second question. If you don't find a chair.
Commitment amount. This time was for teacher bogey on something and it has increased by now and how are we going to make it bigger.
And in clips young and blockchain and you have started the investment in those web three dumped all areas. If you will so what kind of expectation you have.
First about Marcella.
He is that sprint and we work.
And those are challenges from Softbank group.
Were addressed by Marcello thanks to his tremendous contribution.
Our business off of Softbank group.
Yeah.
Yes, she is become a chapter tavis.
Of AI.
Remember these sham that's the vision, we have against that background.
Marcel and Softbank group.
Agreed that AR VR.
Taking a separate ways.
So that's.
Why me.
Decided to let him go.
And Marcella asked an excellent leader.
And I hope that he will be successful enhance our nexgen <unk> next chapter of his business of life for vision Fund two.
Yeah.
The contribution exceeds the one that we invested in Softbank Vision fund one.
So all we want to build up.
Constantly.
Yeah.
Tickets Pfizer for a business or company is smaller compared to the one in the days of vision Fund one.
So.
We'd like to take actions.
Faster than before so in the days of Vision Fund one we were looking at the 30% of the ownership and they'll be tended to invest in companies that are close to I P. O. So we invested in like 100 billion yen per our business, but in the.
Fun Fun Vision fund two.
10% to 15% over the ownership that there'll be a looking at par investment in terms of vision fund two.
It's easier for them to enter the market for us to enter excuse me and also easier to exist. So the cycle gets faster and better.
And also like you said, we are looking at a rub three dot O.
Yeah.
So we want to help revolutionize.
Our societies and committees by leveraging AI. So those unicorn companies that we want to help by investing them. So again, we are running this heiko all of of selling and buying or investing excuse me. So once we get the gain.
After the Sting, the capitalize on that and the re invest and private companies. So that kind of ecosystem or cycle is what we are running by making sure that the meet.
Financial disciplines L. T V. That's down 25% in the normal times and a V have two years' worth of redemption of our bonds. So long as we can.
Neat.
Financial.
Requirement or a loose in a company we believe that we can continue investing.
Next question please.
My name is rather from the home kids of Nikkei newspaper.
So regarding I have question so although a good show of course those are a three tiered union.
And what is our current father, who you are looking at so if you I mean for I P O once again.
Is it going to be the higher budget than to use cell to Nvidia is it your expectation and my second question is about.
Again, I understand it's very competitive.
But without going public again.
Would you rather like to keep it as a private company.
So I understand as long as you don't have any financial issue why do you need to monetize I mean go public or by a P. O. Yes. Thank you for your question. So auto condition a bomb that was a 32 billion you asked others. So it's about three trade union and a little bit more that was a cost we spend for condition.
Uh huh.
Our sale to Nvidia.
That was.
40 billion, you asked others, including some.
Our four months and.
One third these cash two thirds is to exchange with Nvidia share.
32 became 40, so oh the 40.
About 5 billion.
What's the including some of our performance base.
So what else do we be able to achieve this performance or.
That means.
Because we are entering into the second gross stage, so that the both ribbon UN profit.
Actually that we are achieving.
We want to achieve we will be able to we are in a situation where that we cannot cheap in fiscal 'twenty you want for this target for this the whole month.
So in both our revenue and profit a lever to be able to have full 40 billion wants to be accomplished.
But the two thirds of this vote to be deal needs to be exchanged with Nvidia share.
Once we close this deal we want to become the major shareholder of Nvidia.
As of today in video surprise.
Uh huh.
Cash plus N V D S. Yeah.
That would accounted for about eight TBD on that somewhere close there. So when we acquire it was 32 billion and even 110th of the value that the sum criticize them out there that that was too even one third this is too expensive, but the 32 became 40 and 40 b.
To be becomes a T with our marriage I was in the media that was that kind of a path that we've been seeing.
And.
We don't know yet because it's a market decision what well how the share price will be after go public again, it's not meet my decision, but at least.
Armies now that the inching into the if this is golden phase a thick on the growth stage I am so convinced of is such a movement so that.
We are happy with.
We believe we are still happy to be able to.
It is a situation that we don't know is the share price it would be after we see that market, but the two years later or three years later after the IPO now than that that we believed that we would be able to see even further.
Growth in our revenue.
Profit in value. So I think he is going to be a very.
Great, Yes, our heads not only a single year, but the way he believed that they would be able to continuously grow.
Multiple years.
And why are we aiming for a b O why don't you keep hold onto it and private company right no 25%. The bar is held by vision Fund one.
You don't find one extra Eddie as you know have a third party L T L piece and for them.
I was on this debt securities value he's going to be important that's why Nabarro mission for the fund second of all.
For employees.
We want to provide a good incentive for employees of.
So that the and because of this company.
We would like to.
Probate, the good compensation or the incentive for the employees, who are making the hard work for a business. That's why that the IPO is a good objective for that and attributable because became such a important for so even for us even though I'm player.
The social infrastructure and many of the companies actually using gum, so that wise that the we'd be they be it's important for the company of being more transparent.
In the society and being a public company can provide such a transparency. That's why we are aiming a full IPO. Once again all study from the first day of the conditional ballroom actually that the we are aiming to go public or getting you in five years. So that's no change from that time actually.
So not us.
Okay.
Oh, it's about from Sun King who spent for <unk>.
Simple question.
About we listing of all of them are which market are you looking at that's a first question.
Thank you.
The U S and that's the market that we are looking at when it comes to listing arms.
And.
Most likely in NASDAQ.
But wherever it a S. A the U S is the market that we're looking at for the vesting of armour.
Next question for myself I'm talking about the met diverse.
One of the areas that I'm, Ken play a very important role.
So knit top bus.
Can be a next internet in terms of being a bank.
So.
Yeah.
<unk> investment are you going to get engaged with and whatever so my question is how are you going to get involved in the bus are engaged with a metal bus. Thank you.
That's up first is evolving and expanding.
And.
Yeah.
It's going to be.
Our culture or lifestyle, that's how I see in meta versus.
For that element technologies Ara getting there.
And.
I have no doubt about the trend.
And through vision fund.
I think that's a V invest and companies that played an important role in much of us why because they are going to leverage AI in the space of a met diverse so through our vision fund.
We want to invest in companies that provide the service and a platform for all of us and in order to build meta birth.
Cloud computing and edge computing are going to be.
Critical and the demand for them are tenaciously, a growing that requires a huge computing power.
So again like I keep saying is going on to the next chapter and Golden age and I met that birth is a welcome trend.
Next person please.
My name is Emma from Asahi newspaper.
I have question on them.
But the six months period earnings.
You mentioned that you are.
Still believe that that you'd be able to receive the regulatory approval on the transaction and this time that you announced to terminate this agreement in the meantime, there are some legal lawsuit in U S and so on but what was the <unk>.
Main trigger for you to come to this termination.
Any back grounds or can you.
Elaborate some colors on it yes. Thank you for your question in the United States.
Antitrust.
Lawsuit.
What's becoming more clear.
By F D C and also U K you use.
It's respective rigor to lease.
Wow.
Expressing.
<unk> strength.
Consideration.
In the meantime, well you all.
Try to solve such a consideration.
And Nvidia I'm sure the E proposed.
Several solutions.
So that the we thought such solution can be convincing regular batteries.
And I was Oh Chevy.
Believing that the we have been able to close this deal, but even despite such discussion and proposals.
They're gonna trees didn't really buy it.
So that was a kind of a suggestion in the past two or three months.
So nvidia.
Has.
Recommended.
To terminate this time, Dave also industrial belief and we are in strong belief as well to close are they still were working very hard about these past couple of months that the we come to this conclusion. Despite good twists airports by two bodies.
Some tough from Nikkei business I have two questions.
Both of them related to vision fund first.
As of end of December .
You were.
We're under a the financial discipline in terms of investment.
And in January .
Talking about the still slowing down investment or.
Other indicator then of two important indicators that our you may want to look at so again, that's a last question I want to ask you about your position to vision fund. Thank you first in principle a V invest by.
Making sure that we meet our financial rules.
Disciplined.
And looking at the market.
In fact, not only Softbank group at the other venture capitalist.
Looking at the market.
And.
Private companies value.
Well by the Asian of Derma.
They begin to.
Talk about Loring devaluation of our private companies and so not only Softbank group of other venture capitalist.
Star to re negotiate.
And private companies so the number of deals might be smaller and the ticket size, maybe even smaller.
So at the beginning of last year or middle of last year compared to those days.
Since.
The start of this year, we begin to feel that the ticket size goes smaller and then investment decides go smaller.
But if interest excuse me.
The money required us.
To get into or get into and a private business, it's not bad to grow the value of those are private companies. So.
We constantly and make an investment but speed wise.
And the ticket size wise.
Maybe it's slower and smaller.
But oh, we want to make sure that the V, making investment with Oh money.
Thank you. The next question is about again of vision fund.
Sometime around the end of December .
December .
You call them.
Sure.
Held on by Vision fund might be utilized as a collateral for our new investment that was sort of a media coverage that I saw at the end of last year, what do you what's your view.
So this set of companies or are they sort of companies held by vision fund.
Looking at the value of the <unk>.
Well that's true.
We have offer.
She who utilize the body of a visual fund portfolio companies.
So all we are looking at using our collateral valley of portfolio companies for new investment.
So actually we also need to accept from that so one there's two persons from the floor and then go to them.
So one person fault or one question. Please.
My name is Scott, though from my Nikkei newspaper.
Termination of the agreement on I have one question.
So in your question that the you said that you may be able to close but.
You come to the different result.
Uh huh.
So plan a that transaction with Nvidia in 18 months or so you had to give up.
So what is your honest feeling now.
Yes. Thank you for your question.
Okay.
Honestly.
Then I would say.
I E.
I wouldn't imagine that the so much of our key players in the industry and that each respective residencies are against this idea of a transaction I believe that the Nvidia feels the same way that the way you wouldn't have it.
We didn't imagine I'll touch on our vehicle protection, but now looking but like I mentioned earlier and explained in our previous slides that armies nowadays are entering into the golden stage.
So despite our although we couldn't get to an approval in this transaction but.
But b.
It's actually not that at all obviously it could be better upon for US that's high Hawaii motivated in Hawaii.
I'm excited about the CCAR the chapter a bomb.
Felicia.
Yeah.
You'll see from TV, Tokyo about the vision fund investing in Japanese companies, which they G.
What's your view on investing in and Japanese companies.
While investing in Chinese companies, so you're getting bit difficult.
Italy.
They invested in two companies in Japan, leveraging AI is not done.
Done well.
And behind the curve compared to other countries, but then now we begin to see companies that are taking advantage of AI pretty well.
And the began.
Discussion with some potential companies and we have a dedicated we are.
Building dedicated a team to invest in Japanese company. So we are excited.
Well a little more follow up question, sorry, one for US one question.
So our next person please.
My name's Hussey from T B S T V.
Mr. Moura said, it'll clouded designed to last month and you.
Mercer I believe that the one of the important agenda I used to find the success of yours as of today.
How do you feel about it and what is your future direction on your successor.
Yes, Uh huh.
So we believe that it's very important the agenda for me to find the successor of mine I will and I find it and I will raise this person.
But not right now having said that.
I myself.
It's very much motivated in visual and funds in Oh.
Everyday so exciting I am having so much fun.
If I retire yeah, giving up all such fun, that's gonna make me a very old grandpa so.
Right now I still want to work inactive boy.
And.
My health issue.
The other day.
I have played book bowling.
And Oh I throw the pit bull.
Several times and nice scored more than 200.
Four two time two games.
I mean, six Steve I'm not sure just play once in a while.
And scored.
200.
Or more in two games I don't find it.
Many of such a same age a player around I think it's quite a good speed involved so that I I think I am still young I think that I am still doing good. So I'm proud of myself that I am still doing great.
In which figure so in management or in business.
I'm still having great fun or managing.
The business of course, I won't find I tried oh, we'll explore the subsidy et cetera, but I still want to keep well, having us to keep having a good time here. So I will look for the successor for sure.
The last question from the floor.
<unk> from Nikkei Asia. Thank you for taking my question about Alibaba.
Foreign exchange contract.
And.
My understanding.
Cash settlement option and share settlement option, where they are and the cash settlement settlement option.
I think you did it for the first time recently.
Since.
Listing of Alibaba, our stocks I don't think you did.
Capitalize on that.
Well, we still have about 25% of holding so only frac.
Fraction of the holding was capitalized in cash.
So all the Alibaba shares that we have.
90, something percent, we still keep only a few percentage.
V.
<unk> done cash settlement and we got our cash.
That's a cash.
Can be recycled she vision fund's investment.
So for us so thanks, a shareholders and Softbank some management.
Thank God, it's good to have that kind of option.
Thank you.
So sorry to keep you waiting for those zune participants I would like to take a question from the Zen participants.
So to avoid Daniel Cohen.
Please make sure that the due on the connect to them otherwise, it's gonna make vehicles. So each saw some from your annuity newspaper, please mute and start your questions.
Yes. This is each cover from your muting your state, but thank you for taking my questions. So is it only one question yes.
Yes. Please just the one question per person.
So IPO Obama is my question.
He's got 22 that you aim to go public and after that how.
Much are you going to hold onto so are we expecting or are you expecting that are very much a good success in arm, but are you going to be long holder of them.
For your question.
And so convinced Saddam it's going to go a very coming to the Gordon the age so that we don't want to sell too much. That's my feeling on this feeling internally for me, but the vision fund.
We have as I mentioned earlier, the third party investors.
Because vision fund is a 25% holder of arm and 75 by helped by us So.
Other people of fund about half of the again, we'll come back to S. P. G Softbank group.
So considering a balance of those where you would like to decide how we should be.
Yes.
Next question.
Yeah.
Anthony from financial Times, please a new a mute and speak.
Yeah.
Thank you I have a question to myself.
So you mentioned that most likely in NASDAQ that's the market that you're looking at for arms I P O.
But arm.
Yes.
U K company, so not why not to London.
Why U S.
Is it because of the size of the market and the international Vicky of market.
Why do you ask not a U K. Thank you.
Well I would say users or customers off of army.
Most of them are in Silicon Valley and the investors.
Okay.
Show strong interest in our AMA, that's what I heard in the U S. A.
From that perspective.
U S NASDAQ, which plays a key role in high tech sector might be most suitable well or New York, but the NASDAQ S. In the center of a high Tech industries. So at the moment, we are looking at NASDAQ.
But it's nothing is decided.
But at least the plan to make our them go public, but most likely NASDAQ, but nothing is decided yet.
Yeah.
Thank you then going to be.
Due to the.
Well the interest of time this will be the last question.
Yeah.
Thank you very much for your participation. This concludes the Softbank Group Corp earnings results announcement for the nine months period ended December 31 2021.
This video footage of this meeting will be distributed on demand from our corporate website. Thank you very much for staying with us.
102, I always said I think I caught up so so damn good. Thank you very much for <unk>.
Again for joining the Softbank Group Corp earnings results announcement for the nine months period ended December 31st it doesn't and Steven.
This concludes the meeting.