Q2 2025 SoftBank Group Corp Earnings Call
Couple of months have been dismissed.
Which has been.
Challenge.
In the past two years are which is a visual in front.
<unk> made a good performance this quarter and also T mobile the share price is doing pretty good. So as a result Ah that made a quite a good contribution to the earnings results. This time.
And.
Net asset value, which is actually that our enterprise value itself of our company.
Was remained high and at 2019 Union AR at the end of September.
After the market is doing much are even better so that that brings us even better results for the latest number wise.
Front.
You call. It 610 billion yen as an investment gain and also posting cumulative gains.
Which is another kind of highlights in the symbolic message to.
So the market performance also continues to excel.
And as a result, well you are able to maintain the very robust and stable stable finance financials, and also maintain ample cash reserves, which will enable us to further our investments.
Yeah.
Speaker Change: So I'll, let you go into a little bit of more details starting with consolidated results.
Speaker Change: As I mentioned.
Speaker Change: Income for the first half exceeding one trillion yen.
Speaker Change: Compared to the a year ago, our first half of 2023 actually is increased by $2 four trillion.
Speaker Change: Yen.
And our investment gains was.
Speaker Change: 2.6 children in so that the competitor the last year first half 362 Union increase.
The breakout download these numbers will be followed by a a.
Speaker Change: Next stages.
Speaker Change: Here the investments are gagnon loss and net income quarterly basis.
Speaker Change: Two to union and although the gain on investments.
Speaker Change: For the quarterly basis and.
Speaker Change: If you see more in details.
Due to Union gang in investments, mainly due to the blue portion five.
Speaker Change: 567 billion yen from the vision fund and the Green bar inside of it you see the adult it lines, which is a T mobile contribution by 387 billion yen. So total funding the T mobile or buy once your union of the performance contribution.
Speaker Change: Remaining so you may wonder.
Speaker Change: It's actually.
Speaker Change: From the Alibaba share transaction.
This is a financially.
Speaker Change: Yeah.
It's all completed the financing and the scheme, we have used the prepaid for the construct.
Speaker Change: As a result, we set the share price and agreed the future sales and get the money in advanced.
Speaker Change: And because there are some share remained four before the settlement and that actually how about market valuations.
And.
Speaker Change: Evaluation gain.
Speaker Change: Was about once your union or so.
Speaker Change: Yeah.
But that wholesale being settled.
Speaker Change: Therefore.
D: This is D. I'll cut about adjustments so that sales has already been completed and data on even that the share price increase but still that there's no impact to the cash settlements are therefore accounting wise.
D: The actual increase however, that's been already done so that's gonna be you adjusted through the dairy by debit transaction in total it's about one two union. However at the same time, we see the forex movements and because of the Forex movements. We have about the difference of 400 billion yen. So green portion each day.
D: Again.
Oh, not even buy shares, but the bureau, one tortured union.
D: With the Oh, well have to be union of the Forex impacts.
D: Okay.
D: And that that also needs to be considered altogether. So 222 union of the positive.
You can exclude that EBA settlements, so maybe what I'm trade Union of the vision fund and a T. Mobile is a big contributor for the performance this time, but even with that.
D: Compared to the first quarter or the one of the core quarter. One for the 2023 I'll tell you you are making a quite a city a growth which is a very happy result for us.
D: And key indicators.
D: Three indicators that we are we see as a key indicators net asset value loan to value.
D: And also.
D: Cash position.
D: That does it for you.
D: As you saw on the previous pages.
D: <unk> nine trade Union at the end of September.
D: Loan to value 12, 5% cash position.
D: Three eight trillion yen.
D: Okay.
D: Not only net asset value, but the loan to value.
D: And cash position.
That was also contributed by the go to market performance.
D: And the latest twice launched anybody who probably are less than 12%.
D: Somewhere around 11% and cash position because of the Forex.
D: Actually that Oh, yeah exceeding Fortunately another of latest number wise.
D: So it is possibly moving as a matter of fact.
D: Net asset value see slight decrease mainly because.
D:
Softbank Corp.
D: Decreased.
D: Slightly.
D: Instead, we see increasing T mobiles and vision fund and also we have a forex impact. So we have a some kind of a bounce back.
D: Starting from 1998. This is a history of net asset value of ours.
D: 2019.
D: Yeah.
D: I believe that that.
D: Gives you a good they just view all the Softbank group.
D: About the T Mo bio that I touched upon sometimes earlier.
D:
D: Well that's.
D: 'twenty, one when we acquired sprint.
D: We acquired a sprint in 'twenty or 'twenty three.
D: And since then they were turning around the business and intend to 'twenty, if they weren't Morris with T mobile.
And back then the stock price was $82, but at the last day.
D: They are last week.
D: It went up to a historic high of 238 or three time is it bigger than a the.
One three and we emerged where the T mobile and sprint since that merger compared to other carriers in terms of index like AT&T Verizon in the U S and China mobile, which was the number one in the world of them.
D: And the NASDAQ, which is tech related index, if you compare it with them.
D: T mobile.
[noise] outperformed China, mobile AT&T, and Verizon even against NASDAQ T mobile as a way ahead.
D: So looking at the stock price or market cap. If you take a look at on the left hand side, when we acquired a sprint.
D: Yeah.
Speaker Change: 10, T 12 actually.
Speaker Change: Back then.
Speaker Change: That's a tiny tiny bar was at T mobile sprint 22, both of them.
Speaker Change: So far behind Verizon and AT&T as of the end of September However, T mobile exceed dead not only AT&T, Verizon, but also with China mobile, which once was number one in the water with them.
Speaker Change: Well this growth come from them free cash flow.
Speaker Change: This pink S.
Speaker Change: T mobile as you can see the free cash flow it is building up steadily.
Speaker Change: On the other hand, Verizon and AT&T.
Speaker Change: In the last four or five years.
Speaker Change: They are on the declining trend.
So it's very clear contrast, that'd be training a T mobile and that they are competitors in the U S.
Speaker Change: So from our investment performance perspective of equity.
Speaker Change: We put about pulp point for Chilean.
Speaker Change: And to your 0.1 trillion was a leveraged and.
Speaker Change: Boring it was already repaid and.
Equity value grew from four to $3 nine trillion.
Speaker Change: And M O I see it was almost nine excuse me 10 times and the equity I or a 26%. So a proposal that's what's Korea the good.
Speaker Change: We reminded you on this because.
Speaker Change: T mobile has contributed a lot to our great performance for this German and Ah.
Speaker Change: Some people believe.
Speaker Change: Softbank are filled and the sprint transaction, but a week are probably it's our fault not being able to communicate well with the comedian Jim but again, we just wanted to show again, our investment in sprint it turned out to be great.
Speaker Change: Talking about the investment of a softbank, Alibaba, our and sprint or that major investment being made it so far alibaba be invested a little bit.
Speaker Change: In the beginning.
Speaker Change: So M O I see is tremendous like a 1340 times, but that's the reality of it.
Speaker Change: All the three points or three E. The investment a chip on three with equity and the Mic was eight and I R. S. Almost 30% and we can still expect upside because army will play a key role in our a I.
Speaker Change: Development.
Yeah.
Speaker Change: Yeah.
Speaker Change: About Forex, which has been fluctuating.
Speaker Change: And the first half of this fiscal year.
Speaker Change: It was 151 yen per dollar as of March end and as of end of September 140 G E M.
Speaker Change: At this level.
Speaker Change: The foreign exchange had a negative impact on NAV by one point to nine Trillium.
Speaker Change: And I also negatively impact on equity by 1.3, Chilean negative but.
Speaker Change: On the other hand positive impact on net income consolidated net income by <unk> three Chilean yam.
Speaker Change: And now that Mr. Trump was elected as the president and.
Speaker Change: Our rate is around 153 yen per dollar recently so.
Speaker Change: Again.
Speaker Change: The market condition.
Speaker Change: Changes.
Speaker Change: As a forex changes so looking at that kind of changes will be flexible.
Joe myself of what kind of actions we should take.
Speaker Change: About the cash position for this quarter.
Yeah.
Speaker Change: Arm, that's dead last year and are at that time the.
Speaker Change: Protest vision fund holding and in this trauma the payment took place.
Speaker Change: So investment related including installments for arm Shiite transaction consideration was the driver of our.
Speaker Change: Reduction of our cash position.
Speaker Change: On the other hand, we did a debt financing.
Speaker Change: So from a cash flow perspective, we saw a positive number but all in all net cash position as of end of September was 3.8 trillion, but more recently it should exceed over for Chilean thanks to a better market condition.
Speaker Change: And.
Speaker Change: Always keeping them two years worth of bond redemption S. A the commencement me make and there we are.
Speaker Change: Actually making the commencement in fact.
Speaker Change: The only two years, but also three four years of a bond redemption.
Speaker Change: Can be a possible of this cash position L. T V.
Speaker Change: 12, 5% very stable and the low level.
Speaker Change: Recently, even a lower then you have a percent so even much safer.
Speaker Change: Looking back the history of cash position.
Speaker Change: This is the trend.
Speaker Change: Constantly Amy a have a capped around her for Julian.
Speaker Change: Now shifting gear to S. P F.
Speaker Change: Yeah.
So quarterly base.
Net loss on investments.
Speaker Change: This quarter.
Speaker Change: Our full.
Vivian: Vivian gain in this quarter, which is very good number this combined b zone funds numbers.
Vivian: In the past.
Few yes.
There are big ups and downs.
Vivian: But when we see the big guns.
Vivian: We always.
Vivian: Right the very conservative.
Vivian: MX.
Or variations.
And I believe based on such a history I believe that we were able to make a good result.
Vivian: So we would like to maintain a very conservative view.
Vivian: And at the same time, our share of such numbers and results.
Speaker Change: First are there Ah Ah.
Speaker Change: Two a bit.
Speaker Change: Okay.
Vision fund, one and two being started and on your left hand side. The Navy run is the vision fund one.
Speaker Change: Results.
Mainly public shares and also the private chefs and they're making a good momentum.
Speaker Change: And actually the highlights this quarter is on your right hand side the visuals on too.
Speaker Change: Because the our investment started about three years ago and.
Speaker Change: Variations in about the issue for the private they could do was real activity high back then and also after this market kind of sluggish Ah therefore that hasn't been impacted to the number.
Speaker Change: And.
It's still got a lot of public or private securities and the vision fund two at about this time that the we see the good improvements and also the inside of the portfolio, we'd been seeing a lot of a a good potentials.
Speaker Change: And that.
Speaker Change: We believe these are making a good to work to boost overall results for the vision fund two and here's the are some highlights for the video from the one portfolio companies for.
Speaker Change: Well the public company wise coupon fair value was $8 6 billion.
And as always the increasing evaluation, we have a 1.2 billion unrealized gain position.
Speaker Change: But you shouldn't game.
Speaker Change: Is recorded.
Speaker Change: In <unk>.
Speaker Change: The ride sharing company D D. In China is like Uber, a type of a company.
Speaker Change: They they have.
Speaker Change: Zero from the U S a market, where I'm supposed to that the transaction is ongoing and of her brother He's now for six and this is also making a good growth.
Speaker Change: These two other kind of a major highlights for the vision fund one, but also including the other our public portfolio companies. This quarter to date video and in total the public companies.
Speaker Change: Vision fund two.
Speaker Change: Yeah.
Speaker Change: Now that we see our ipos are from the portfolio companies in vision fund two more and more.
Speaker Change: And this time this quarter, especially the good contributor.
Speaker Change: It was the Oh the electric.
Speaker Change: Crystal Pie.
Speaker Change: In.
Speaker Change: There are also other public companies, but the it hasn't spent too much time after the IPO. So that does not making a big contribution to the results, but at the same time, we do have a good pipeline the Permian companies in total is a.
Speaker Change: Little shy of 1 billion and that was another good contribute therefore this time result.
Speaker Change: So at least the small airports by the each portfolio companies that comes down up to this number if you go inside you see that reboot or Clarence.
Speaker Change: So they are making a good growth no.
Speaker Change: Yeah.
Speaker Change: For the details of vision fund, one and digital fun too.
We would be able to share as we have not need our in person. So that he would be able to give you more colors or is the idea in this briefing after this.
Speaker Change: Our announcements and here the gain and loss on investment cumulative yeah.
Speaker Change: Is that turns to a positive for the first time in nine quarters I believe that is a kind of a big message for us at this time.
Speaker Change: Cause.
Speaker Change: Yeah.
Speaker Change: In the past two years or so we've been working hard but also not able to bring to the positive number but now that we are able to come to this close of course that we may see a volatility in our heads, but now that we've seen are more and more public companies public portfolio.
Speaker Change: In vision fund, one and we don't want to also start seeing.
Speaker Change: A more and more companies are let's say entering into the late stage portfolio of companies are increasing so that's something that we are very much expecting or in the future.
Speaker Change: We don't want one.
Speaker Change: Cumulative investment return a recap.
Okay.
On your left hand side is the investment cost because our mutual funds are already finished its investment period. So $89 five no change between June and September and in the current cumulative investment return on your right hand side those two bars.
Speaker Change: Far right is the end of September number hunt until billions of dollars.
Speaker Change: Three months before I sort of like a gym and.
Speaker Change: Actually you see the good growth from June into September and Green portion.
Is the are already exited.
Speaker Change: In Blue.
Speaker Change: We're seeing improvements.
Speaker Change: In public companies.
Speaker Change: Those are the companies that there is still hold in dark blue and the very bottom those are private companies.
Speaker Change: Here in the private companies, we do still have a good attractive companies such as by dose.
Speaker Change: The analytics.
Speaker Change: So those also.
Speaker Change: We have a good expectations for that by the issuance.
Speaker Change: And not only that though we have some others as well so now that we are reaching 212 billion.
Okay.
So Lee maybe you start seeing a good kind of the resorts for the returns for the bedroom and found one though.
Speaker Change: These funds are life.
Be a 2029 and also they have a two year extension option too.
Yeah.
Speaker Change: Vision fund two.
Speaker Change: Investment cost on your left on site.
Speaker Change: $53 6 billion investments so far.
Speaker Change: And still are having a difficult quarter as in the past for that performance, but this September and were you able to.
Vivian: <unk> achieved 332.6 Vivian redone.
Vivian: Compared to vision fund one.
Vivian: It is still have a good proportion of the investment portfolio is still that private companies. So we would like to keep a good eye on them.
Vivian: And of course in addition to that that the wheel electric continuously have I missed any investment activities. So that's gonna be also another important factor for vision fund two performance.
Yeah.
Vivian: And let me also go into a little bit more details in the mutual fund two portfolio companies.
Vivian: Yeah.
And this is a public listings in the pipelines.
We have.
Vivian: 53 listings so far.
Vivian: Since the inception and also for the second quarter, we had two ipos.
Vivian: First flight and all that.
Vivian: On your right hand side that late stage portfolio.
Vivian: They.
Vivian: You know good growth they can.
Vivian: Start seeing four or the preparations and are we seeing the 34 billion for the alleged that late stage portfolio by does fanatics.
Or.
Vivian: Ola, which is the parent company for alleged that the IPO. This time.
Vivian: And on your right hand side Vision fund two in Latam front pay pay in Japan is also a good expectation that we have.
And C D, which is also close to the IPO.
Vivian: And.
Vivian: Open Yeah, Oh, we've made our investments from vision fund two this time, which I will touch on later stage and two companies that went public. This time for this quarter. This is from a portfolio company of beach off on two plus cry.
Vivian: And all our electric both of the IPO in India market fast great.
As you can imagine from the name of the company that the this is the.
Vivian: Oh, nice stuff, our newborn and baby and kids products and on your right hand, and say Oh that electric.
Vivian: This is manufactures electric scooters and provides products globally.
Vivian: So they've got scooter so cold.
That's.
Vivian: But our main products for this company and we received in the market.
Vivian: And Lloyd is also very stable now.
In visuals on two also or making a new investment activities in very selective manner.
Vivian: And the other one by one.
Vivian: One of which is glean that provides best in class search functionality and how youll use a friendly agents for enterprise.
Vivian: Also our pud sides, which supports developers in improving work efficiency by building junior to bear to us for software development, and coding and Oklahoma, which well known by you are in the market I believe.
Vivian: I'm talking about are often I E. The mi.
Vivian: Share with you some numbers that we can show you.
Vivian: The investment by S. V F. Two was 500 money M.
Vivian: Eight of us the round in September.
Vivian: Open ice total wound size was $6 6 billion.
Vivian: For that round.
Vivian: Post money valuation of.
Vivian: Open AI was expected at 157 billion.
The tremendous of other issue on that.
Vivian: As a public entity, but that they have a great business model and our technology. So a it's not surprise.
Vivian: Revenue.
Vivian: Expecting 131% increase year on year to 370 by then.
Vivian: Business overview.
Vivian: As you can see.
Vivian: Weekly active users.
Vivian: First monthly website visits.
Vivian: Chad J P G class.
Vivian: Subscribers weekly active users reached 250 million average monthly you upside fits at 1.7 belly EM and chat G. P T plus subscribers and they have a million them.
Vivian: So they're on the strong momentum towards the realization of AG I that benefits all of humanity.
Vivian: In fact, that's why we made a decision to investment.
Speaker Change: Invest in the company.
Speaker Change: Of course, they are a competitor of us, but if you compare with them.
Speaker Change: More clearly.
It shows open is ability and capability.
Speaker Change: Monthly website visits.
Speaker Change: Opened as a monthly average was $1 7 billion, but as for September 10 to 24, they hit $3 7 billion at the very bottom of their competitors like meta Claude and Jimmy nine those hyper scalar is.
Speaker Change: Uh huh.
Speaker Change: Offering Gen I pod water services, but open AI is far far ahead of them.
Speaker Change: They've got a great market share.
Speaker Change: And I believe that.
Speaker Change: Open and I will expand the market with its technology and business model.
So I mean, well look and see how open a goes with high expectations.
Speaker Change: And let me share with you a slight change off the organization Rajeev Misra will step down as co CEO and Alex Clavell won't become so C. E O S. P. I a N S. P. G E.
Speaker Change: Rajiv.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: As a member of a Softbank family.
Would it be able to contribute to us a lot and of course, our rajeev is a great friend of our muscle song and when Rajeev was an investment banker I got to know him and had been working with him for over 20 years. So.
Speaker Change: He has come a lot.
Speaker Change: And I don't speak a good English, but as unknown Japanese friend. He is one of the great and non Japanese friends of mine and I want to learn continuously from him and I. Appreciate his contribution so far no.
Speaker Change: Now change a.
Speaker Change: The subject to arm.
Speaker Change: They keep a great performance.
Quarterly revenue is shown here.
Speaker Change: $844 million.
Speaker Change: It exceeds upper threshold of $830 million of FY 'twenty for second quarter guidance, which was already announced.
Speaker Change: And for the first half revenue.
Compared to the last quarter and the.
Speaker Change: Quarter before that.
Yeah, and yeah, 20% increase there was recorded for this.
Speaker Change: Half.
Speaker Change: Yeah.
Speaker Change: And quarterly non-GAAP operating income as shown here now $326 million.
Speaker Change: That's above analyst consensus.
Speaker Change: On quarterly basis.
It looks a little bit down from the quarter two last year.
Speaker Change: But.
Half half basis.
Speaker Change: <unk> recorded at 18% year on year increase.
Speaker Change: So.
Speaker Change: Great performance.
Speaker Change: As usual.
Speaker Change: Okay.
Speaker Change: Investors analysts the media may have different views on that performance.
Speaker Change: For the short sure.
Speaker Change: Our arm is one of the volatile stocks, but a b.
Speaker Change: The other king at the arms meet long term growth potential and we hope to help them to increase their value and.
Speaker Change: They are corporate valley at the moment and they are.
Speaker Change: Operational Excellency and performance B are happy with them at the moment.
Speaker Change: And our Imus.
Speaker Change: Announced guidance for.
Speaker Change: For the revenue.
920 million to $970 million.
Speaker Change: Or a 12% to 18%.
Speaker Change: An ear girls.
For the full year FY 'twenty 'twenty four.
Speaker Change: That was the guidance of us.
Speaker Change: Plus 18% to plus 27%.
So all those numbers are for your reference.
Speaker Change: Yeah.
Maybe I should've share with you some of the topics that our army.
<unk> in the first half of this fiscal year met us alarm.
Speaker Change: Llama excuse me.
I think this is a very significant event meta developed a new Lamar L. L. M. At Lamar Street that <expletive> L. L M and it was released and Oh. They optimized this to run on the arm based CPU. This lamar.
Speaker Change: The ship has a high.
Speaker Change: Scalability and it delivers high performance.
Speaker Change: Again this is optimized for Cpus.
Speaker Change: And in fact, it delivers up to five times better performance and a more enhanced algorithm AI algorithms not only can run on crowded, but also can run on edge device like a mobile.
Speaker Change: Since our performance is a great.
Speaker Change: Our speed is better and has a greater energy efficiency.
So I think that's a great product.
Speaker Change: Looking back one year post I P O.
Yeah.
Speaker Change: Obviously, they have strong find ourselves.
On the left hand side as you can see.
Speaker Change: First to have a royalty revenue was up 20% year on year.
Speaker Change: And I sense, serving you.
Speaker Change: Significantly exceeds our forecast made at the I P O.
Speaker Change: Yeah.
And the middle column, it's talking about technology.
Speaker Change: Are they the developed and deployed a new technology.
Speaker Change: And a V nine contributes 25% of our royalty revenue.
Speaker Change: Not only in mobile but also.
Speaker Change: [noise] datas.
Interest by major height.
Speaker Change: First skaters are all running on AMR.
Speaker Change: The nine and computer subsystem is applicable not only to mobile but also other diverse application like automobile data Center N P C.
Speaker Change: By utilizing C S. As our computer systems users should be able to reduce cost and time to market.
Speaker Change: Yeah.
Speaker Change: Yes.
Speaker Change: And I believe that is contributing a lot to the end users.
Speaker Change: And on the right hand side as you can see our AMA provides a positive he evaluation from the market.
Speaker Change: Share price.
Speaker Change: Right around three times post I P O.
Speaker Change: And.
Speaker Change: And the last one year.
Speaker Change: Our volatility is clear.
Speaker Change: Sometimes that share price under 40, 50, 80, but nonetheless.
Speaker Change: Sharp price grew three times post I P. O. So again, we are happy with that great performance.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: And now and Ah.
Speaker Change: Included in NASDAQ100, and the songs I'm sure that that should help a stabilizing almost homeless going forward.
Speaker Change: Last part is a financial strategy.
Speaker Change: In the previous.
Speaker Change:
Speaker Change: Year end that we share with you the financial strategy and basically no change.
So far.
Speaker Change: On your right hand side, you see one two and three loan to value bond redemption two year worth these are the financial policy that we have.
So too.
Speaker Change: Check our soundness of our financials.
Speaker Change: Are they kind of are easy to understand the type of the disciplines that we are keeping in our company.
Speaker Change: And that it's gonna be remain the same but the on your left hand side in the past one year.
Speaker Change: There are many changes in the environment in the market, we flexibly address those change and at the same time adhering to financial policies.
Speaker Change: And at the same time, we like to keep building trust relationship with the stake holders and.
Speaker Change: That's what I do have been able to keep those.
Speaker Change: Our financial policies.
Speaker Change: So it could be market and credit market.
Speaker Change: We have a relationship with them and globally or domestically that do we have so many stakeholders are for our company and for all the states, we like to leave up to the expectations of those respective stakeholders and also O b is good accountabilities.
Speaker Change: The company's current and also the future.
Speaker Change: So we'll keep those in mind that the way you would like to continuously communicate with the market and our stakeholders.
Speaker Change: As an investment company.
It's also important how are we going to use our cash capital.
Speaker Change: And kept our obligation.
Speaker Change: Do should we use for the New York, New growth or should we use it for the AR balance sheet should we use it for our shareholders.
Speaker Change: We try to.
Speaker Change: Pursued the best make of those factors is Allah main mission.
Speaker Change: Okay.
Speaker Change: Having said that.
Speaker Change: Okay.
Speaker Change: I believe the most important thing.
Speaker Change: Is the gross investments for the future and the net asset value expansion for the future growth of the company of course, we haven't made.
Speaker Change: Any big investments so far in the past few years. However, we always tried to be prepared.
Speaker Change: For the opportunities and there would be.
Speaker Change: A time or <unk>.
Hey.
Speaker Change: And what's the agenda, we should be looking for and what are the companies and entrepreneurs that we should be investing in all the companies people, that's something that we would like to.
Speaker Change: Look for.
Speaker Change: Oh for that we would be able to support the good growth of the company in the future.
Speaker Change: As I mentioned, our capital allocation, how are we going to use the use of proceeds.
Speaker Change: This is a kind of a simple chart that I guess, yeah for they kept allegation and the where the money come from as an investment company in principle, we have.
Speaker Change: Return from investments and that recycled to new investments.
Speaker Change: But the one note is that.
This timing for the investments and.
Speaker Change: Yeah.
Monetizing.
Speaker Change: The us it.
Speaker Change: The best timing neighbour matches.
Yeah.
Yeah.
Speaker Change: If you can if you have a route to use monetize money.
For the new investment activities and you always have to monetize in advance and you who are not that monetized you will lose opportunity and that'd be live in China's can bridge those two difference of the tiny best timing so by having the good Liberals are that the capacity will be able to keep.
Speaker Change: Take the old opportunities we may have.
Speaker Change: So we like to have a good health soundness of the financials for the monetization isn't at the same time have that capability for leverage a liberation that capacity in the return of redemption.
Speaker Change: Yeah.
Speaker Change: Will come from demonetization of the assets.
Speaker Change: So opportunities for new investment activity should not be missed.
Speaker Change: And try to have a structure the best scheme for the monetization.
Speaker Change: And at the same time, we would like to increase the asset value and the ones. We have monetization will you be able to think about.
Speaker Change: More improvement in balance sheets, or the shareholders' return and so forth. The shareholder return can be Oh, he turned to equity and Vista as well as credit investors. Both are important for us so far the equity in Bicester buyback or are those are the scheme. We can think about for the critically Mr. <unk>.
Speaker Change: Improving our balance sheet and also having a more possibilities are good room for the repayments that's gonna be important factor for the credit in this oh of course.
Speaker Change: Buddy of the law and the value of the debt it needs to be also improved then that that can be a good buddy for the Disney of credit and boost us so.
Speaker Change: That also means that improving our liquidity. So that is kind of near the equals two of our improvement of the balance sheet. So those three factors is that kind of advance it into what I would like to seek for the best balance of that.
Speaker Change: Yeah.
Speaker Change: Sure.
Speaker Change: Under such circumstance.
Speaker Change: First six months have a first half of 2010 before it's about to be doing each for the investment amount that's something within our expectation.
Speaker Change: So last year, our third quarter and fourth quarter was.
Speaker Change: Two small probably if we look back.
And we have a three months period, but the investment.
Speaker Change: Neighbor comes to at the same time for the decision, making and the investment execution itself. It has a time difference of course, so if you think about that.
Speaker Change: It may not make sense to just compare the quarterly basis. So you may want to see an annual basis that maybe probably better to understand how the company is moving.
Speaker Change: But the just for your reference this is dirk shows to be there on each for the investment amount so far in that in the first half of 2024.
And I also mentioned in a previous announcements are that the for the beginning of this term.
Speaker Change: We had a big drop in share price.
Speaker Change: And we had immediate.
Speaker Change: Response with the buyback announcements so the maximum up to a 500 billion yen and up to October we have made the progress of the 35%. So 174 video and yeah. So far so we have a one year term. So I think we have a.
Good progress so far.
Speaker Change: So in summary, once again.
Speaker Change: As you saw the Oh Theyre pages.
Speaker Change: Number wise.
Speaker Change: I believe we are able to announce a good number for you this quarter.
Speaker Change: I was on a group wide effort.
Speaker Change: We are hitting towards AI era, and what can we do what kind of role can we play and in AI era.
Speaker Change: What kind of.
Speaker Change: Changes are we going to see it.
And what can we do for the those changes.
Speaker Change: As a center.
Speaker Change: Chip.
Speaker Change: Business models development.
Is one and also.
Speaker Change: Many frontier, so, but they're not to be eyes.
Speaker Change: Needing.
Speaker Change: Data center in the electricity for the further development of the business.
Speaker Change: And I believe.
Speaker Change: To promote the EE business data center can be another agenda for us.
Speaker Change: And as you may recall, we being.
Working on the robotics side.
Speaker Change: Nothing with Pippa you may recall that and are we is that robotics AR technology.
Speaker Change: Now that the we see the more and more use cases of all the robotics and that is something that the way you would like to continuously invest in.
Through would be Joe and funds that we've been already making on investment in robotics and I think there are many potential good companies and businesses around us.
Speaker Change: Yeah.
Speaker Change: Our leader.
Speaker Change: Not yet be motivated to come back to the stage on the earnings but he comes up to the stage time to time the latest one what's the Softbank World 'twenty 'twenty four although the keynote speaker and he made a comment saying that the a J will be realized within two or three years is that I do within <unk>.
Dan Yes, so he.
Speaker Change: Shed that his concept or his ideas regarding a G. I N S. A.
Speaker Change: These timelines of course, we have.
Speaker Change: This number is based on many.
Assumptions and hypotheses.
<unk>.
Yeah.
Speaker Change: It made changes however, still we believe that at that time will come for sure and that's kind of I'm not avoidable Ah results and in his presentation.
Speaker Change: He mentioned that.
Speaker Change: It's a.
Speaker Change: We will evolve into football wisdom.
Speaker Change: Oh I know there are many opinions.
Speaker Change: And when it comes to the risk.
Or a negative factor, but also we believe that they will contribute to the happiness about human beings and do we need to continuously make and therefore, it's onto that and these are the slides that he used at the Softbank World and how are you going to kind of evolve going forward.
Speaker Change: You see the slides in my son's photo or muscles photo therefore boxes.
Speaker Change: Inflammation will comes to knowledge and that will become intellect and that would become intelligence.
Speaker Change: So that's a kind of a process that the AI.
Speaker Change: To encourage.
Speaker Change: The world to evolve and how do you see on your fault.
Speaker Change: Ultimately only of Oh right.
Speaker Change: Yeah.
Speaker Change: We were kind of expand like a big Bang.
Speaker Change: And in Terex to intelligence and many more.
Speaker Change: Evolution.
Speaker Change: There will be a hard those there'll be a frictions, but still.
Speaker Change: That will come along with the happiness for human being that's something that we are hoping and aiming at and with that.
We believe AI.
Speaker Change: We will be able to how about in the good harmony is human humanity.
Speaker Change: No Tony MRSA.
Speaker Change: But the group overall group right.
Speaker Change: We share the same vision and concept and we do have a one joke what can we do in our era. So always keep that agenda in mind and try to improve our enterprise value.
Speaker Change: So the last slide is always like a big way abolish them and then we have our boats or are we walking around but now that we are seeing some sudden it's there but still far away.
How can we.
Speaker Change: Come close to the summit, we don't know how are we gonna crime, yet, but theres no only one way to climb there there may be a many ways. So we can try a mirror.
Speaker Change: And try to achieve what we would like to become the one companies are out of many to achieve the top of the mountain.
And try to improve our enterprise, but at the same time.
Speaker Change: And.
Speaker Change: For that progress of describing of the mountain that I would like to share with you on a quarterly basis going forward.
Speaker Change: That is all from me for my presentation. Thank you very much and that we'd be happy to take any questions. After this.
Speaker Change: Yeah.
Speaker Change: Now I'd like to start questions and answers session.
Speaker Change: First we'd like to take questions from the floor.
Speaker Change: Please wait for the microphone.
And start with your name and affiliation.
For those who are on Timna. Please press raised hand, the baton and wait for your name to be called.
Speaker Change: And pleased with.
Speaker Change: Fraine from connecting to other live streaming to avoid any echoing.
Speaker Change: Again, you can start pressing raise your hand, now and wait until your name is called them. If you wish to withdraw your question. Please press law hand about them. If you access to Japanese to Jimmy Please ask questions in Japanese.
Speaker Change: Knees.
That could take up to two questions per person. So that we can take questions from as many people as possible now from the floor.
Speaker Change: Yeah.
Speaker Change: Thank you.
And Jay from Bloomberg and I have two questions first Rajiv song about the Rajeev some.
Speaker Change: And going forward, what kind of a role like he was sound with a play and Softbank.
Speaker Change: So inc, or <unk>.
He was saying there.
Speaker Change: Oh in Softbank is over that first question and second is about investment in open and I.
Speaker Change: Could you give us an a background of why you decided to invest in now and not why not group, but by vision fund to chew.
And if possible.
Speaker Change: On vision Fund's investment strategy.
Speaker Change: Our 500 million seems like a big some are among the recent investments from the vision fund two so if we could get an explanation a bit more about the vision fund strategy that'd be great. Thank you.
Speaker Change: Okay.
Speaker Change: Thank you very much first.
Speaker Change: Question, I will take and maybe I'm going to ask him to have any chip.
Speaker Change: <unk>.
How about Rajeev.
His key role.
Speaker Change: It's over.
As announced.
Speaker Change: He he.
Speaker Change: Hey, myself takes the lead and are managing a fund.
Speaker Change: And I'm sure that he will focus on that management what's that.
One.
Speaker Change: I am.
Yes, I'm sure he is focusing on running his own fund.
Speaker Change: But does that mean complete goodbye to Rajiv I don't think so I think we're gonna keep communicating with him in some way and I'm sure he's going to visit Japan from time to time I will keep.
Speaker Change: Getting in touch with him but.
Speaker Change: As a management team for example that kind of relationship enroll is over.
Speaker Change: About open AI.
Speaker Change: So they invited a potentially investors and they created opportunity.
And this timing of course, we have a tremendous interest in them and we have close communication with the management.
Speaker Change: And maybe it'll be great if a tiny Russ earlier, but I think still that surrounds us great charming and about vision fund portfolio nothing that would you like to add some color.
Speaker Change: Okay.
Speaker Change: Sure. Thank you Andrew for your question in terms of our investment strategy in vision Fund two are were.
Speaker Change: We're very much focused on companies that are in P. I.
Leading companies.
Speaker Change: Whether there are product led or leveraging AI and our criteria is four key things we look at the quality of the AI Tech stack.
Speaker Change: Basically the key is transformative companies that are driving innovation and value creation through artificial intelligence.
The second is product market fit and scalability, so having a good product does not necessarily mean, having product market fit product literally.
Speaker Change: Meet market needs, but also needs to have significant potential for growth scale and impact. The third thing is unit economics. So it's more than just margins, but overall financial health.
<unk> scalable business model that promises long term profitability and success.
Speaker Change: And the fourth criteria is execution excellence, so consistent continuous execution to ensure the efficient and effective translation of vision into tangible business results.
Speaker Change: It's no wonder did you have another question about the vision Fund open air Yes, but opened my why visual unfunded not the Softbank group.
Speaker Change: Yeah.
Speaker Change: So again open are invited to potential investors.
Speaker Change: And a lot of us that round in September and are obviously open the AI.
Speaker Change:
Speaker Change: Has a roadmap and they made it clear from our prospect ever.
Speaker Change: Again, if it was just a minority investment.
Speaker Change: And I.
Speaker Change: Also it's clear about their roadmap going forward and that's why I think it was good to have a fund that she invest not group.
Speaker Change: Any other questions.
Speaker Change: Yeah.
Speaker Change: Person in a very frontload piece.
Speaker Change: My name is shifting from Nikkei newspaper.
Speaker Change: I also like to ask about the open die.
Speaker Change: So even from the fund.
Speaker Change: But the.
Speaker Change: I think the if theres a meeting so hebei, even you said minority, especially when it comes to our strategy.
It may be easier for you do create a synergy.
Speaker Change: Because you would be able to catch the goods trend of the latest.
Speaker Change: Informations. So we stopped that there can you talk about the air investments.
Speaker Change: So of course.
Speaker Change: This is a company leading a world leading the world with the general debate. So this investment is going to be make it even more robust in terms of relationship with them.
Speaker Change: And.
Speaker Change: Even after the investments or before investments.
Speaker Change: We.
Speaker Change: Our continuous at keeping a good communication with them so that we can.
Speaker Change: Discuss the potential for the future business.
Speaker Change: It would be also important for us and there are many to learn from them in terms of the <unk> trend in the world.
Speaker Change: That can be a good learning for us their technology their future visions.
Speaker Change: It can be also the good for learning for us for all our development of the business.
At the same time the top of the company between those two companies are very close to each other as well. So we are very much expecting that that can create a good synergies.
Thank you any other questions from the floor.
Oh, no for me or me every newspaper.
Speaker Change: Okay.
Speaker Change: For the trauma and business performance.
Speaker Change: You mentioned that you are happy and the beginning of C to summit.
Speaker Change: So I think this is the most positive a presentation of the earning results since you started.
Speaker Change: Doing that or leading that earnings announcement.
Kara: So I just wanted to check as Kara.
Kara: Your position for the future investment.
Martha song showed interest investment the size of several trillion C&I, so backed by the great performance.
Speaker Change: So you are more aggressively or more often saving mode in tumors of future investment.
Speaker Change: It's not just because the great performance.
Speaker Change: So what that's great performance to mean.
Speaker Change: Yeah.
Speaker Change: That means that our financial stability is even more even much stronger.
Speaker Change: You talked about the capital allocation.
Speaker Change: In my presentation.
Speaker Change: Uh huh.
Speaker Change: More powerful financial stability gets at.
Speaker Change: And the bigger opportunity that we can tap into.
Speaker Change: I'm, not saying that that we see a big opportunity now, but now we are more ready than before Shea tap into new opportunities, we're not going to do all at once.
Speaker Change: We are going to be opportunities opportunities stick and rather than the size of it.
Speaker Change: Want to see whether at deal all potential D is great or not for example investment in open AI the size Big whatnot.
Speaker Change: From a prospect Java size of life. It was not a huge 500 million, but as that deal as cigna.
Speaker Change: Significance it was big.
Speaker Change: Big deal and again, we are fully ready and we are ready to tap into new opportunity.
Speaker Change: Having said that.
Speaker Change: The final shaft policy as solid.
Speaker Change: Because you may start asking how much.
You spend for investment.
Yeah.
Speaker Change: We will invest within a range or within the capacity that we can keep the.
Speaker Change: Supported by our financial stability.
Speaker Change: Any other questions.
If not then what.
Speaker Change: Another person.
Speaker Change: Hum.
Speaker Change: Person in the very front Royal please.
But really from the rooftop I have two questions.
Speaker Change: First.
Speaker Change: U S presidential election was there.
And the second Mr Trump administrations and tariff issue potentials towards China.
Speaker Change: For U S B Softbank group and any impact to your portfolio companies.
Speaker Change: Are there.
Speaker Change: My second question.
Speaker Change:
Speaker Change: Earnings.
Speaker Change: Also announced.
Speaker Change: Second quarter.
Speaker Change: Has a contract with Softbank group was also recorded which was full.
Speaker Change: Oh.
Speaker Change: 400 be the medians are and then what was the call.
Speaker Change: Content of this contract. So first question I will answer that and the second question <unk>. Please go ahead. So first question.
Speaker Change: Presidential election.
Speaker Change: We have not much of the comments on that.
Speaker Change: So Mr.
Speaker Change: Jump to be being our president elect and also I hear the news regarding how they're going to have a China policy, but we are the company Alba investments.
Speaker Change: And.
Speaker Change: Of course, we need a management of the portfolio company in China and also.
Speaker Change: We are very much slowed down when it comes to the investment in China, you know investment in China.
Speaker Change: As Lee mentioned in several times in the past, we don't have any business operation in China. So we don't have any direct impact to our business performance of our company itself by indirectly.
Speaker Change: I'm a portfolio company.
Speaker Change: Depending on the China, probably see by Mr. Trump in the future there may be some damage or negative effect.
Speaker Change: And for those.
Speaker Change: We would like to pay in the clear our close attention and monetize them and for the second E. On would you. Please go ahead.
Speaker Change: Yeah. Thank you for your question.
Speaker Change: Yes.
During last quarter, we signed a multi year agreement with us.
Frank: So Frank.
Frank: Provide them with some technologies and services.
Frank: This is an agreement very similar too.
Frank: Other.
Frank: Contracts that we signed with customers.
Frank: And also similar to other agreements, we signed with customers, it's not really for us to disclose the contents of that that contract.
Speaker Change: No what.
Speaker Change: Markets.
<unk> all been targeted that is something we would normally push back to the licensing company.
Speaker Change: Maybe I can come to satellite.
Speaker Change: All right.
Speaker Change: Okay.
Speaker Change: Hum.
Well we.
Speaker Change: This is one of the transaction similar to others. So I think that the your answer everything yeah.
Yeah.
Any more questions from the floor.
Speaker Change: If I'm not.
Speaker Change: Yeah.
Speaker Change: We'd like to conclude the Softbank Group Corp. Arden results announcement for six months ended September 32020 for 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, earning result.
Speaker Change: Its announcement for six months period ended September 32024.
Speaker Change: Okay.
Speaker Change: Yeah.