Full Year 2022 SoftBank Group Corp Earnings Presentation

Again, we believe that we should be taking this defense mode.

There are two things for this defense mode. One is continued monetization.

So that we have enough cash position on our balance sheet.

And for the new investment activities.

We would like to make sure to keep stricter investment criteria. So that's a kind of a summary for today.

For details I would like to use my slides to explain to you as I mentioned in the beginning COVID-19, and the Russian invasion of Ukraine more specifically.

500 median.

<unk> has been impacted as this COVID-19.

It became a global pandemic.

And because of this as a result of the Russian invasion of Ukraine.

Crude oil prices raised to 30 of 38% natural gas price became Huntington said, 17% increase so our sweet price consumer price index in the United States.

At the same time, our same phenomena has been seeing in the rest of the world to manage such a situation a longtime interest rate has been increasing to the sudden level exchange rate that we've been seeing a record a weaker yen NasdaQ20.

Every person down in terms of composite index.

Under such situation.

I believe concerns.

The people about Softbank I think there are three things one is the decline in the equity holding value.

Or too much debt in Salzburg Softbank or.

Cash position.

Is it safe those are the three.

Things that many people may have other concerned over softbank and this is the effect.

That's our.

Net asset value why do we have 18.5 to union.

With us.

And.

Loan to value.

24%.

This is a second effect and third of all cash position that we have 292 unions.

So these three.

Or the.

In fact or the answers for those concerns that you may have for Softbank.

Yeah.

And mainly from these three effects that we would like to I would like to explain to you more in detail of our current status.

Net income.

Which has already been announced at the three o'clock. This afternoon, what minus one seven trillion yen.

The year.

Before last year was a negative one trillion in the last year was positive five two of them. So one seven trillion negative here, but we had positive several trillion yen. So each has.

<unk> quite that dramatic movements from upside to downside, but especially for this fiscal 'twenty one our food year. Our net income was a negative one seven Judy on yes.

Accounting a game.

Who are more important index or do we focus is loan to value.

And the net asset value.

So these two are something that we see.

I see as a very important.

Index. So the vision fund, which is mainly afford our net asset value calculation.

It is now.

Down to three to three.

J D on the yen from six trillion yen. So delta has three trade Union.

But still.

Two the principle, we have invested we are still.

Seeing this gain of three two year on year. So that's another effect.

Those increases are unrealized gain realized gain in total with those increasing game.

That's been decreased which is fact, but still we still have about three two of them, but the this delta is through to them.

So compared to $1 70, a negative of net income this is a dramatically decreasing so actually this is even.

More bigger issue compared to accounting laws and that are in detail by region.

First of all China.

The game, we have been seeing in the past.

Has been gone away and now it is showing negative figures here.

In Belgium, and France.

New investment in China has been decreasing.

Therefore.

Risk for new investment in China has been carefully managed and studied so that's our current position for investment in new investment in China. So careful steps does not mean zero is I really believe that there are still a lot of great company. So for those companies do you still like to invest.

But relatively smaller size.

In United States that has decreased Asia Europe those are also declining.

So it's kind of a worldwide phenomena.

Is especially starting from this year.

Is this a Russian invasion of Ukraine equity market has been a largely impacted.

And declining and that has been also influencing our bedroom and funds our results.

Like I keep saying.

Rather than.

Income from accounting perspective, and have an F. T V are more important.

Net asset value and loan to value those are the most important indicators for Softbank group in terms of Nab.

18, five Chilean him.

Yeah.

Equity holding.

Minus that.

That's a net asset value, which is $18 five children in G. P line.

And NAV is.

Violated every year.

And $18 five trillion yen of NAV.

It does not include that.

Good.

And our market cap as of the end of March was $9. Two trillion yen that means we are experiencing a 50% discount looking at the history of Nava.

As you can see.

Compared to the peak.

Have seen decline however.

We still hold a plenty of net asset value.

More in detail in terms of net asset value as you can see on the slide.

Alibaba lost.

A lot.

I mentioned earlier.

Fund saw a lost as well.

And the vision fund accounted for about 50% of our Nava.

Up until two years ago, Alibaba accounted for 60% of our Nava.

So all NAV are dependent on Alibaba in terms of NAV.

Before but now Alibaba accounted for only 22% of NAV.

So.

So called the China risk or Alibaba risk, we have been able to.

Reduced.

Reasonably.

And if you take the Orange portion out of this chart.

You can see.

How bigger propel.

Propulsion is occupied by vision fund.

And as a total you don't see a huge decline.

So again before be depended on Alibaba, maybe too much but now we have been distributing doing.

And diversifying since then.

And vision fund include.

100 <unk>.

Also our portfolio companies.

So again the.

Dead diversification.

If the global market.

Declined dramatically accordingly, all V C.

Loss.

Our baidu, but again, we don't depend too much on particular country or particular company anymore.

Like I keep saying NAV and L. T V are the most important indicators for Softbank.

So.

The second one.

One.

To NAV as loan to value.

Net debt divided by.

Asset the loan to value is 24% that's a fact.

Again looking back the history of <unk>.

L T V.

Yeah.

We left that Softbank KK or swap on my mobile and so the part of the shares.

And since then.

L. T V has been called.

Constantly below 25%.

Our policy.

S to.

Run the business with L. T P below 25%.

As business as usual even extra ordinary situations.

Should be less than 35% that's.

Our policy.

35% as our Red Zone, if you will.

35% as a third of our assets.

And if that level as a third of our.

I think we should be fine, but again for business as usual, we want to keep as low as 25%.

Last time that we made announcement of earning result, it was 22%, but now we are saying 24%.

That means.

It's an improvement.

Many people said that.

Since the.

Equity market.

Declined so dramatically.

Our asset.

Shooter.

<unk>.

Decreased.

Then the L T b.

Could be over 25%.

That's some concerns that many people may have them, but again.

We have a strict guideline.

And.

Loan to value instead of.

Deteriorated.

It improved in the last three months.

In terms of our cash position.

Our policy as you have.

Sufficient level of cash position you have to.

Take care of her.

Redemption for over two years.

Yeah.

When you talk about bond redemption for the next two years.

We should have won three Chilean Yang.

Yeah.

Against that.

We have more than doubled.

In terms of our cash position.

Which is 2.9 Chilean yeah.

So we are managing our business in a very secure and safe manner.

The equity market want.

Declines forever.

So one it's and the downtown downward trend.

It's important to have enough cash position under the circumstance.

And as Softbank.

Share price has been discounted and in fact it has.

Down that means we have an opportunity to buyback our shares.

And as you know, we made announcement to share buyback.

That was a true.

Buy our shares up to one trillion yen by November of this year.

And he had been.

And a good progress.

And are we are now 45.

Gives me, 43% progress in six months.

The shares.

We will be.

Counts Alger after.

We purchase our shares.

Consequently.

NAV per share should be better so again.

<unk> buyback program has been going pretty well.

While we are repurchasing shares.

How well are we able to improve our loan to value.

Let me explain.

If you ask us havent.

Haven't you done any new investment in fact, we did.

About 5.2 children yen of investment to be made.

But it also.

Yes.

Me.

Have done monetization program.

For about five six children, Yeah. So we did book, a new investment and monetization.

That means.

New investment is done.

With the money that we monetized so that kind of ecosystem.

Is working well.

So we make sure that we want.

Affect about that.

So when it comes to new investment.

We monetize it first and do it that gang me in making the investment.

When you, we make a new investment B U jelly.

Invest in.

Public entities. So we don't fund makes in your investment into public.

Private companies and when private companies go listed then be do it monetization from those existed businesses and the game that we have will be used for it in your investment again, that's an ecosystem is working.

When it comes to new investment we are more selective why because we want to have a stronger defense position like I said at the beginning of this presentation.

Since the world is in chaos.

We want to make sure that we have a plenty of the cash position.

And we have a strong defense Patricia.

Yes.

So from exited businesses.

Instead of a.

Making.

New investment.

Randomly.

Me.

Want to make sure that we have enough cash position.

How do we do.

Leanne.

Manage the pace of investment we are more conservative when it comes to piece off in your investment.

I believe that our global private funds are doing the same why because they.

This data.

Company's values are.

Evaluated.

Every day.

So valuation is corrected.

Almost every day, but when it comes to private businesses.

Values are not.

Evaluated every day.

So.

It's difficult to change the mindset in terms of the values that they have in the private companies that they have.

So if the value was higher back then.

They wish investors.

We would invest in those businesses at higher value.

But when it comes to listed companies since their values are.

Valued every day, it's a difficult year.

Attract new investment.

So I cannot only softbank, but also a bunch of capital and private equity funds are in the same circumstances.

But and one you had two or three years ahead list of the company's equity.

Keep market should be improved.

And the private businesses.

In the meantime, we will keep growing.

So the balance of values.

And opportunity should it come in one to three years and was an opportunity comes we can re zune investment in listed companies. So depending on the circumstances, we are flexible.

Opportunistic.

And now.

It's a time for us to have a strong with defense position.

And.

When it comes to our proven investment amount of vision fund.

In fact, we have a 475 portfolio companies and the vision fund.

And compared to before.

Ticket size.

For our business.

Is being smaller.

So that's D E recent trend.

Okay.

So number of I P. O's have been growing in the last five years every year doubled.

But for the last 12 months.

Number of Ipos.

We will be smaller.

That's my Conservative view.

So again, we keep conservatively run the business.

And so this is a distribution of visual funds because we have about three junior and you end up the cumulative gain so.

You May wonder are those all unrealized gain but actually.

Partially that the share has been sold and we return in cash and the distribution Talktalk is five three to union.

You don't find one and two total well do can see five three trillion yen.

It's not that the all of them coming to us actually that some of them are going to our partners.

So first we distribute our to our Lps and then we would be receiving.

Uh huh.

Based on no equity ownership, if you don't find one and two in total how did you go see yellow portion and the Orange portion those are.

The return to Softbank group is on distribution.

Not only be doing fund, but also there are other.

Assets or the public securities such as Sprint T mobile and some others.

That does.

<unk> also been sold or monetized and in total after fiscal a team in the past four years, we have already a monetized a 14.8 trillion yen.

Either sale or monetization.

So.

New investment when it comes to new investment.

We are recycling.

Those money that being monetized oh of our existing assets. So that we are.

More.

Conservatively with these defense mode that we would like to keep ongoing so monetization will be continued and also is this strict investment criteria. So that we.

We would like to make sure not to exceed 25% of L. D V. I saw that the weekend have a safely mutter oh, they're dragging over our business.

So how does yeah. This page you may disappointed it's not like you're myself, it's not like Softbank are you all.

Okay.

Yeah.

You don't want to speak more about our other sides. So here.

We also like to share with you that we don't forget about the opportunities.

So how are you going to find and when or what.

Without using new money as much as supposed to bowl, where you'd like to use what we have in find opportunity that's something that we would like to do that mainly coming from.

In the five years in five years ago, we acquire this company and Softbank group became 75% owner and that Softbank Vision Fund 25 person. So group overall that we have 100% of this company and.

Is kept on growing.

Compared to when we acquired this business with this five yes has been growing continuously and akshay.

On your arm based chips shipped.

Became 29 billion.

Chips.

And this I believe is going to even grow exponentially.

Mobile market Iot automotive cloud.

In each sector each sentiment.

Is actually.

Taking a very large market share extra the right. After the addition of this business market show or mobile was much smaller Iot was also the same although it was also the same.

Cloud was almost zero about them.

But.

In these past four years.

R&D.

Well, it's really invested.

And.

From back then was the version eight.

Richmond's arms products, when we acquire by studying from last yeah virtually none in shipment has started.

Version nine.

Case unit price.

Uh huh.

Chip is much.

Hi, compared to version eight in terms of a loyalty.

So using disadvantage knowing.

For example, five G mobile phone is almost using version nine chip.

And this proportion of version nine usage is increasing.

Which is also applied the same to auto or crowd.

And Akshay.

High function high quality chip has been shipping to the segment. So that it used to be flat in terms of sales, but the starting from last year second half is increasing dramatically and we expect that this will grow even further for this year and next year.

As a result.

Which when we acquired this business there are just at the EBITDA was about 800 million U S dollars and now.

Winter down by half.

Back in fiscal 19, and 365 medium, but in the past two years extra the growing dramatically and almost record high in terms of adjusted EBITDA. When it comes to fiscal 'twenty two 'twenty three.

Actually we are expecting.

They'll be doing even better even higher that's how I convinced.

At this moment because they have already a good pipelines of is the major clients and based on such pipelines, where you'll be able to predict the good numbers of shipments. So that we can see a good picture for the AR business in the future and we are convinced.

Are these going to making a great growth so.

So from version H. The version nine so in each version it's been used in various products, but the key to further growth for this upgrading of Virgin is a multi core.

When you hear core.

You make you can interpret it to the one engine or one piston so.

Brokaw became two cores beginning full cores became eight quarters. So the court has been increasing so it's like a.

H distance engines are in in automotive automobile appoint a case.

Just about 10 years ago. It was single core so starting from H C. Goldcor two dual core quad core so that the number of course has been increasing along with this version update and now that it's I mean, much much higher function and has a hyper scalar.

<unk> being used for cloud automobile those.

It's actually now have 140 full course.

So for one for chip.

Before T full course.

Installed so that's the kind of a product to use towards the cloud. So CPU, okay low consumption of electricity. However, computer power is actually.

You may hear or you may wonder that the performance is inferior to Intel or somebody else, but actually that's not true with this multi core by improving this multicore load batteries or the consumption of buttery, but actually compute and par is improving Furthermore.

More specifically.

What.

Computing power is actually the key for the cloud service or a key for the Automotives and for that we.

We believe him he's going to be solar players or a strong player.

Smartphone and Iot.

Devices.

Who have AI capability and cloud and automotive.

Yeah.

It's like a supercomputer is running on the road.

So those are the trends that we are looking at.

So.

And that trend should be the key for further growth and like I said earlier.

Softbank.

Now is the time for something to be.

Defense ever.

So it's important.

That army.

Does not need additional capital requirement capital required from S. B G.

So from a personality perspective.

I want to be.

Offensive, sometimes not always being defensive but as the business theater.

When I think about the arms next growth opportunities.

In fact, I spent a lot of my time, but you don't fund and.

Growth of Sterne Agee.

We were talking about selling or I'm, a two nvidia, but since we couldn't get.

Green light from regulators.

So taking that opportunity.

Me.

And myself.

Benjamin.

My energy and time to figure out how best we can grow our I'm a further.

So in the future when we look back we want to be.

Proud of ourselves having arm in our family.

Yes.

Arm is making profit and does not require capex.

So as you go offensive.

Harlan.

Should it get more return on them.

So.

Does not require additional capital so looking at current Softbank position.

I should have.

Spend my energy and time.

Into arm, which is reasonable.

Our and preparing for future I P O.

And that process should proceed.

One.

Obstacle.

For our future I P O was on China.

The head of arm in China.

Sort of a rebound.

And the board, even though released to him.

Two years ago.

The decision made by the board two years ago to these family.

Procedures for that decision, we're not going well in China.

And.

The head of China kept control of the business, but we haven't seen dramatic.

Progress.

And the last two weeks.

And choose co C E OS.

Officially approved by the board.

And the seal of representative was authorized by the Chinese government.

With that China's.

Now in a normal course.

So we haven't seen a big improvement and progress.

In the past.

Two years, we were not able to audit often China, but going forward.

Audit firm will scrutinize China.

With that the only obstacle against I P O was addressed.

So like arms performance is good in the first place and what they did five years ago. There is no reason why not going public.

So going forward.

We will proceed with them.

Procedures, all the arms I P O.

Yes.

By the way.

Yeah.

Well I keep saying that defense defense.

But and meet long term.

Information Revolution.

Well stop.

Our equity holding and assets and our group companies.

For those.

Things that we have.

The future is.

Surgeons forever no I am confident about the future of our business.

Then explain why I'm confident the internet.

The revelation of Internet started sometime around 1994, if the value back then was one.

Yeah.

Internet industry Index grew by 30 times and less than 10 years.

That's why many people would say that internet bubble net bubble.

And that's down 10 years.

Values grew by 30 times.

There were not companies that did not make profits, but the valuation went up.

So back then many people say that was crazy in fact, the market tanked.

So the valuation of the Internet industry.

Tact to one third.

But.

From a big picture perspective it in.

10 years. It grew from one to 10 in the end it was not bad well worse than 30.

But still compared to 110 is 10 times bigger.

But the from the people who bought those businesses at a time when the market cap was 30 times.

And people might call someone like me a liar.

And board Liar, and maybe I am hail us, but I am not a lawyer anyway 30 went down to 10.

But the later in another 10 years it grew from 10 200.

Yeah.

Again, and that's done chunky ears in total.

Internet businesses at the time of all of the Lehman shock.

But they've got this.

And I know divest in 10 years the market cap grew from 52, 2004 hundred or maybe little bit over 10 years.

Grew from 52 2004 hundred.

Compared to the peak hundreds.

It's good 24 times.

And.

From that time.

It went down to a gene hundreds now.

So from Salt-box perspective, if you don't find by the Asian or NAV.

We have seen decline.

But.

Sure.

We haven't seen those.

Pink three times in the history, but in the middle of those pink peer out there.

Whether you want to sell the stocks or buy the stocks buying the stocks.

Those people well brave and their bravery, whereas worth doing that.

And.

Decline from 2000, and 402 1800.

For me.

It's a peanuts I believe that.

From now on.

Information released don't will.

Progress further why because.

Based chipset.

Grew exponentially.

A I users a I penetration co pitching power all of those things have been increasing exponentially.

So the number of users and computing power and cloud.

Yeah.

Body of Derma.

It should not be affected by one time fluctuation of employment or.

Market price or foreign exchanges.

More fundamentally evolution of.

Technology won't stop.

Exchange rate interest rate change.

And Changey.

Take place in a short period of time, but when it comes to <unk>.

Change.

For a longer period of time and its evolution. So.

Look at the forest not look at the trees.

We believe a long term evolution.

And we will continue committed to information Revolution.

To summarize.

Sure Thanks position.

S defense at the moment.

Without spending new money.

We also.

GUL defensive.

And offensive.

NAV 18.5 children yen L. T V tinchy, 0.4% and cash position to 19 Union, which is double the amount of our bonds redemption for next two years. So.

While.

Keeping.

Defense position.

V go our first without spending your money.

And we keep committed to.

Information Revolution happiness for everyone. Thank you very much.

Now we would like to take questions.

First we would like to take questions from the floor.

Please wait for the microphone and start your name and affiliation.

For those who are on zoom.

Please Bruce raise hand button and wait for your name is gold.

If you go to Australia Christian please prez lure him but.

Yeah.

Okay.

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

No where you'd like to the accretion from a foot from the floor. Please raise your hand, if you have any.

Yeah.

Yes.

Yeah.

Well. Thank you for your presentation on each golf Romeo Mudie newspaper I would like to ask you about the investment policy. So you are actually being decent defense.

But the if you keep defend smart for this fiscal year, that's going to damage. Your next fiscal year in the arm for the any results.

How are you going to do you have any measure for that and then another question for me is that.

Equity market, especially Volatilities high because of those new businesses I think that you can help it and I understand that situation. However.

Seeing such that the volatility I believe there are concerns by the share.

The holders.

So two extra they still keep to your pro forma city are you have do you have any plan to increase your position our portfolio in public securities.

Yeah. Thank you for your question, we Didnt the stock, but we don't stop.

Challenge actually we just make it smaller there are some shining stars here and there so we'd be we'd been selective of our investment activities and for next fiscal year at Dawn.

We have 475 portfolio companies.

Under the umbrella of Softbank Vision fund so those companies.

Can also grow and being a fruitful for the results.

So I think we are still convinced.

We could do even that may not be able to have a new bullet or new pipeline for this fiscal year or the last fiscal year, but the one to two years later, we believe that the public market or IPO market is going to recover from my personal view and that moment.

Believe that we'd be able to come to the open smart once again, so we would like to well manage our defense mode and often smaller based on the situation.

And to do so.

Our loan to value L. T V is very important we need to keep this loan to value managing this on 25%. So that financial discipline is going to be kept and while keeping such a commitment or the wild keeping this discipline that the way you would like.

Really show a decrease in value compared to the market's average decreased ratio is something similar a therefore.

Even if we have invested in public market about two I think that the result was the same rather we had a vehicle called SB Northstar to diversify our portfolio.

Changing from the kind of a firm focus on concentration for Alibaba and as a result.

Actually that we have seen the decrease in Alibaba holdings, that's why that we have more diversification. It's b notes that we are scaling down.

Not much activities.

That's a quick answer for your question I hope that answers your question.

Next question please.

From the floor.

Thank you very much.

The from the Bloomberg.

Question about the piece of investment.

You said that you didn't make any investments maura conservatively.

If you slow down the pace.

Compared to.

The previous year.

How much.

In terms of pace and how.

How much in terms of the amount of investment. That's the first question and second is about I P O.

Timing.

And valuation that you are expecting now if you could share your views with me that'd be great. Thank you.

Compared to the previous year.

Remember that graph I showed you earlier in the.

Latest quarter.

From December to March compared to the previous quarters.

Have a.

Made it smoother.

Peak was Q1.

Me made investment about two Julien.

But Q4, you see a huge decline compared to Q1.

Compared to the investments we made in the last year, I'd say half or even lower than half.

Of the investment.

Yeah.

And.

Of course, it depends on our L. T V level.

And investment opportunities the striking balance when it comes chip I'm, making investment.

But I would say compared to last year, the amount of new investment it would be half or it could be as small as a quarter.

Now talking about the arm again.

We gonna.

Keep preparing for I P O.

But the timing.

Well I'll, just say as early as possible but.

I want to say, most specifically otherwise might.

Legal team gave.

Give me hard time.

So I'd just say.

For seeable future.

About the valuation.

Well a lot of investment banks.

Our giving asked there.

Expectations.

While honest performance is pretty good.

But again before I P O I'd rather.

Not to comment on the valuation that we expecting that's again a strong.

The feedback I get the from my legal team. Thank you.

The next question.

Okay.

My name is Nicola Toyota Kids I have two questions first you mentioned earlier regarding SB North Star. So you issued the press release today, So 900 billion yen, which is a recap bubble and one third of these but is from you. So.

So public securities investment by North Star.

Why do you think it comes to descend.

And second question, if the strip to the investment criteria more specifically what part you like to make it more strict income when it comes to the criteria.

And I would also like to ask you is there any financial down round depend of the portfolio.

The reason, we established it's been all star.

Because two years ago. The Alibaba Baidu is accounted for almost 60% of our total us. It. So we should diversify and one of the way. We can diversify is the investment in public private securities by Softbank Vision fund, but we also like to diversify with a public security.

He is as well so that was a kind of a background for establishing as we know stub. However, public Stoke investment Huh. That's helped some risk and also that was a new initiative for Softbank group as well. So that is why I also took risk of one third of such so that.

Yeah.

Weekend carefully.

Moneys are this activity.

And we did get some damage, but if if we keep our keyboard consensually thinking that Iba because I do have a share price has been even declined to now about one third compared to back then therefore.

The amount or the ratio are based on the share price declined another alibaba if we kept holding the same ratio of body Bubba should be that should be quite large so amongst the market overall declines of the situation.

I believe that there should be no star has a.

<unk> experienced a same liberals the declines in the equity value.

In the mid to long term period, we believe.

Regardless of private or public.

The ones that do we start seeing more and more opportunities than that that there must be a kind of a boat role that there'd be no answer should be plain. So that we're not seize inc. S. B Northstar or anything we just keep it open but not making a big move we would like to Caf.

They are watching the market and when the time comes and when the time is right.

Then that the way you would again like to diversify our portfolio with our public securities through SB nonstop.

And your second question about though our strict investment criteria.

When we invest in private securities.

This company.

In the industry.

Is there any.

P S, which is a public company.

So when you have any peers in public securities are their gross ratio.

So compared to such.

Trent.

How much that Buddy who should be for the company. That's what we call a comp so that the comparable is the peer company that we E check.

The value and also.

Or business, then that that this company issue.

Should we trust their business plan that we do have some surveys or some do some research are that the is it trustful business then well is it a dependable business plan that we can so by having such a strict criteria where you'd like to be.

Some even more careful about our research and also or.

Due diligence of all the portfolio companies I believe that are necessary. So that is why for the fourth quarter amount of the investment was about 300 video and yeah. So he has been kind of reduced because of such a strict investment criteria.

Yeah.

Yeah.

But from Nikkei.

Paper two questions first.

March 10, 210 Chi.

You did a $4 five Chilean monetization program back then.

This was not good and.

It's not good either this year.

Sure.

I Wonder if you have a plan to do another a big monetization plan back then L. T beat was not tie what's the difference between now and then the second question is about I P. O M. I P O.

I believe that you plan to make it less data by the end of.

Fiscal year 2022 but since the equity market is weak you may not be able to expect high valuation. So do you have a plan to extend the timeline maybe for next year or.

Further.

Thank you first we made an estimate of 4.5, Julien our monetization program two years ago.

And.

All while we made an investment as much as $4 five trillion in or something also mi is that dead or monetized about five children yen C are the slide again please.

We made an investment to five two trillion yen.

But at the same time, we monetize a $5 six uranium.

Two years ago, we announced a support point Ya Qin Yan all the monetization program, but this.

This time it even though we don't have such announcement.

Can see five six trillion of monetization is being done.

So again ecosystem starts working.

Even.

Without making an official announcement, we constantly do it monetization.

Yeah.

And when it comes to new investment.

Like I mentioned earlier for new investment, we have a stricter criteria. So in one ear piranha. This move should go smaller and the yellow on the slide.

Continues.

From that perspective loan to value should improve and we have enough cash position and do we have enough.

Financial resources, it shouldn't make any investment so even without such an official announcements like we did two years ago.

It's business as usual now when it comes to monetization.

So that's I would like you to understand how it works.

And the second question is about arm I P O.

Again, our performance is extremely low.

Even.

At the pace of exceeding our internal.

Budget.

Plan, but market.

So at the time of I P O. If the market then.

It's not good enough, maybe we may extend the timeline.

By three months six months, but you don't have a.

Yeah.

Yeah.

Critical target.

Yeah.

So of business performance is going well and any time, we should be ready for honest I P O.

Thank you.

Next question please.

Okay.

Thank you and thank you for your presentation. My name is Shing from TV Asahi.

You'd mentioned about interest rate and exchange rate, that's the kind of a one time D J.

But do you believe in the long term our progress, but we'd been seeing the lockdown in Shanghai in China Chinese economy has been very honest.

Certain so do you see any impact to your business by four months from such Chinese economy of Chinese status.

Yes, if it was two years ago.

When we just start the beginning of COVID-19.

Our holdings in Alibaba.

Accounted for 60% of our assets.

But now it.

20% extra the other than the Alibaba is accounted for 80% and also Chinese Oh toward your Chinese companies in vision fund portfolio is decreasing as well extra the other than China. Our portfolio is the majority for visual fund investments to us all.

So in the past two years actually.

We've been.

You see being quite a large impact.

From China, or Chinese situation, but for the future because we have reduced the China dependency amongst our portfolio. Therefore, we believe we don't have to worry too much about the situation in China actually the reason is because.

The exposure other than China is majority now and it does it bother you loan to value those calculation.

Has it.

But it is a private securities. So that this is very conservative calculation for Baidu in antibodies now.

Once they go public then the body what we calculated now for net net does it bother you a loan to value.

We will be much improved that's how I see and convinced so that proportion actually is going to be taking more compared to Chinese concentration Ah.

Because luby, probably I believe I assume that it's going to be the largest book exposure amongst our portion.

Cremator from Nikkei paper two questions first on China risk.

So.

You don't have a plan to further reduce it.

China exposure.

And secondly, what will be the most appropriate distribution in terms of regions and second question as I P. O. Even after I P. O would you like to keep control of the arm and how much you anticipate.

Okay.

And I P O might have some impacts on your financial.

Position so what's your view.

The first China.

Mostly alibaba again declined from six 3% to 20%, that's our dependency to China.

And although we don't fund them cumulatively.

I believe that China exposure to that country, 80% as of now.

And for new investment, even some older. So again dependency on China keeps.

Less and less.

And other portion of it will be bigger and bigger.

For Army.

Honest business performance.

S.

Pretty good.

And even if I P O gets delayed by three months six months even farther.

Our cash position as two points nine children him and.

We have a strict criteria for new investment.

So.

Yeah.

Excess cash.

Capital well.

Keep piled up so again even.

I P O gets delayed which I don't believe it but even if I P O timing gets delayed.

So what from my perspective, it's.

Not a big deal after I P O still spend 75%, we don't fund 25% that's the current holding.

And I'll be don't fund about half.

Is held by Softbank as a common stock.

Yes.

So softbank can.

Sure.

Yeah.

Should be.

They're even after I P O some majority stake.

We'll be still kept by Softbank.

Even after IPO.

Sure.

So oh, we'll take two more questions from the floor.

After then that where you would like to take questions from them.

My name is Sunday from Nikkei business I have two question is well first is technical confirmation I would like to make regarding the financial policy.

So after April of this fiscal year market is volatile and L. D. B latest L. D V figure out if you can share with us as of today, that's something that they're very helpful. In the cash.

<unk> two nine trillion yen how much are there for the commitment line. If you can share with us I would like to hear.

My second question is that kind of a big picture question in the very last page of the percentage or you are looking at kind of a very few and you are taking a big picture.

Oh for them for the future.

So when it comes to such a big picture in the past three months.

Because there'll be Ukraine situation.

Economics or economies or securities.

Framework may.

Change.

But will those be a gas for your AI revolution or break for you are evolution.

Poor L T V.

We disclose every quarter basis.

So that's our policy for the company. So we don't share with you in the middle of the term.

But as of a much and as of today.

Not much difference Ah that's all I can say for now so it's not that the debtor irritating heavy the way anything actually mid to long time, but we expect them to be able to improve that situation.

And commitment life.

For the.

Of the cash.

About.

450 billion yen and that other currency.

And are we having to use any credit lines and in Japanese yen our credit lines.

And for a long time.

Yeah.

Even if.

We can see some cease fire.

By Russia, but the economic sanctions may continue.

Yeah.

So this is not something all of the sudden disappear. We believe that these folks that for Insulet inflation may continue and we do I do expect the continuous increase in rate.

That's how I see in conservative way under such circumstance.

The world.

The market.

Start building in those a new situation.

Uh huh.

Supply of a new type of energy sources like show oil. So that's kind of a bus shifting is going to be happening oil gas electricity.

In the coming one to two three years.

The new base stone news situation, but.

And assuming such situations.

Continue.

The world is going to be adopting the new energy is also a new methodology. Then those volatility is going to come down. So that's something that we have seen in the past. So the peoples leaves them will be used and also developed.

Based on or adjusting to the new situation. So that I don't believe we need to be pessimistic for ever but at the same time, having said that I don't think this is going to solve in a short time period that is why that I believe we need to be in defensive mode.

In the meantime.

But when it comes to technology Revolution.

This is going to be even more developed going forward. After COVID-19 hit all nine demand has increased dramatically.

And.

Such a revolution.

Is irreversible.

That people.

Start to use a much more online shopping online education amid a buzz online entertainment those kind of things is going to be online and that use will be increasing or evolved further more.

And even in the other ecosystems.

I believe that those will be.

Changed or replaced two all nine basis, that's how I see the future going so that's why I think information revolution in this industry.

Ah well developed not depending on traditional methods or traditional way I think evolution will go on that's why I think the.

Importance.

In turn it yeah, its role is going to be even more greater.

Our last question from the floor.

Okay.

Oh that from a G G.

Press.

Two questions first.

Your.

Prospect for the market.

You said that you don't have to be pessimistic forever.

But the tech companies in our NASDAQ market have been hit dramatically. So how long will it take and how do you think are you going to are they going to get improved that's a first question. The second question.

How about the treater.

Yes.

Uh Huh bye.

You're a mask.

Yeah.

So from your perspective, what's your view as an investor.

And is there any.

Possibility that you get engaged whether it's an investment or not.

First to your question about the market.

Forecast the bulk of the net.

Companies.

And Lehman shock.

Yes.

Yeah.

And those are huge event, how much Andy Eckert paint market lost volume it went down by half or to one third.

But are they got to rebounded.

And even.

Rebounded it further from the previous peak.

And compared to traditional industries and high Tech industries got rebounded.

Remarkably.

Yeah.

Growth companies have.

Better leverage.

In terms of multiple so for those are growth stocks.

They may hit hard or harder than traditional industries, but when it comes to rebounding.

Now the only coming back to.

Previous peak.

But father.

They get even more.

In terms of body compared to the previous peak because things get adapted to a new normal. So again for our next one two years, maybe the market continues to.

To be in chaos, but after that it should get rebounded dramatically.

Well.

Looking back the Corona.

Pandemic shut.

So again tech companies were hit.

But they've got rebounded dramatically when the COVID-19 pandemic and get stabilized.

So I believe that our tech companies will get rebounded even more than before.

How 'bout treater and Mr. Musk.

I think Mr Musk as great and.

So printer and he is one of the most.

Respectful.

And to printers.

Jim Me.

And he.

Thank you.

Gross treater in his own way.

But from a tax perspective, or whether it's a direct investment or not at the moment I don't have any plan or any view.

Now I'll take a question from online participants.

Participants.

To avoid any echoing.

Please make sure that you don't connect to other.

Live streaming other than some so we would like to take a question from a company that's unused fixed.

Yeah.

Yeah. Thank you this is called the heat on real Newsweek's.

Softbank Vision fund two I have a question about them.

Looking at the financial statements.

Seems like it gives it the amount.

The investment is negative.

Well, how what is the state that sort of performance result for the vision fund two activity. So far and also how do you feel about that.

We don't want to.

It's a slightly negative I think.

In principle.

Investing in probably bid securities.

But because our public market is declining in value.

Even if they haven't have any down financial round.

But because we.

But on Saturday.

A decrease.

The value of the company's although weeds, there's a peer comparison.

That's because we are.

Being conservative.

For the view from Vision fund two and the new investments are in vision fund two that we are.

Reduce the value of all of that calculation.

Six months or 12 months or 18 months since the investment investment that was made.

And they haven't have any upper ounce yet.

So when you don't have any new upper ounce, meaning the suggestion is flat.

But the peer public name.

Names come.

Comparison.

In.

Reduce the variation along with that so that's why you see some negatives in the results for vision fund one.

They have already spent three to four years after our investment.

So that they have they experienced some upward a bronze or IPO events. So that's where that they are resulting in some negative but because we don't want to reach a it's just a it's not the it spend enough time.

So that's why along with this comparison compared to peers that though we have reduced the value of those.

Thank you our next from the gym.

Mr Owada from Nikkei BP.

About information Revolution happiness for our future.

Everyone.

To that.

You mentioned that technology is fundamentally keeps evolving but when it comes to happiness for everyone.

How much technology can contribute to it.

Make people happy or what's your view because of the war and COVID-19.

And there are there are people struggling.

Around the world So how do you.

Help.

Making them happy.

Thank you.

Every act by humans.

May not and in something happy or pleasant.

There are always some challenges and problems like traffic accident diseases like wars.

But for those problems occur.

With information.

Revolution.

Solving those issues or problems at higher pace.

I think you have mentioned preparation should help in solving problems faster and.

Better.

For example development of vaccine and the drugs for COVID-19.

Thanks to our technology.

The development of vaccine.

We were successful in a very short period of time it usually it takes as long as five years, but.

Less than one year, a vaccine for COVID-19 was developed without AI or without information Revolution.

We could not have had.

Drugs or vaccines for COVID-19.

Our bio for example, which we bought.

The company.

Have a developed drugs for a COVID-19, and they went through.

Medical.

Test.

And they've got authorization by the regulators and the U S.

And Oh.

Autonomous driving.

Goes deeper and deeper and get wider and wider and I believe that the traffic accidents will be lesser and lesser.

For example, in Japan, a lot of.

Okay.

<unk> drivers.

May cause that traffic accidents, but with AI and autonomous driving technology.

Evan.

He's just drivers can drive a without causing traffic accidents, and we're well pressing the button of a weapon is done by our people our person. So so long as people are.

On the Earth, maybe that always.

We will be a war, but.

Information Revolution, I believe and I hope they should contribute to our People's happiness.

Thank you.

Thank you very much for the interest of time. This was the last question for today.

Thank you. Thank you very much for your participation. So this concludes the Softbank Group Corp earnings results announcement for the fiscal year ended March 31st 2022.

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

Thank you very much once again for joining the Softbank Group Corp earnings results announcement for the fiscal year ended March 31st 2022, Lucky that's good on their most young in this.

How do you have the only thing I missed that.