Q1 2026 Softbank Corp Earnings Call

Speaker #1: Thank you very much for waiting, everyone. Now, we would like to start the SOFTBANK GROUP CORP. earnings results announcement for the first quarter of the fiscal year ending March 2027.

Yoshimitsu Goto: Thank you very much for waiting, everyone. We would like to start the SoftBank Group Corp. earnings results announcement for Q1 of the fiscal year ending March 2027. First of all, I would like to introduce today's participants. From left, we have Yoshimitsu Goto, Board Director and CFO. Kazuko Kimiwada, Corporate Officer, Senior Vice President and CAO. Mark Agne, Executive Managing Partner, SV Investment Advisors and SV Global Advisors. Jason Child, Executive Vice President and CFO, Arm. Today's announcement is live broadcast over the internet. I would like to invite Yoshimitsu Goto to present to you the earnings results and business overview. Good afternoon, everyone. Thank you very much for your time today. I am Yoshimitsu Goto, CFO, SoftBank Group. First of all, I would like to express my deepest condolences to those who lost their lives in the recent Kumamoto earthquake.

Speaker #1: First of all, I would like to introduce today's participants. From the left, we have Yoshimitsu Goto, Board Director and CFO, and Kazuko Kimiwada, Corporate Officer, Senior Vice President, and CEO.

Speaker #1: Mark Agni, Executive Managing Partner, SP Investment Advisors and SP Global Advisors, and Jason Child, Executive Vice President and CFO. Today's announcement is being broadcast live over the internet.

Speaker #1: Now I would like to invite Yoshimitsu Goto to present the earnings results and business overview. Good afternoon, everyone. Thank you very much for your time today.

Speaker #1: I am Yoshimitsu Goto, CFO of SOFTBANK GROUP. First of all, I would like to express my deepest condolences to those who lost their lives in the recent Kumamoto earthquake.

Speaker #1: I also extend my heartfelt sympathies to everyone affected by the disasters, including those staying in evacuation shelters or living away from their homes under difficult and uncertain circumstances.

Yoshimitsu Goto: I also extend my heartfelt sympathies to everyone affected by the disaster, including those staying in evacuation shelters or living away from their homes under difficult and uncertain circumstances. As SoftBank Group, we would like to support as much as possible. SoftBank Group, SoftBank Corp., and LY Corporation, Fukuoka SoftBank Hawks, will donate and also encouraging public contributions. We will continue to support the recovery and the reconstruction effort through the services provide our group companies to help those affected regions regain their daily life as quickly as possible. I would like to go into our earnings results. Towards June, compared to March close, market has been dynamically moving. As you know, SoftBank Group is an investment company. We can be affected by the market, and investment portfolio valued by the market is basically reflecting to our results.

Speaker #1: As SoftBank Group, we would like to support as much as possible, so SoftBank Group, SoftBank Corp., and LY Corporation Fukuoka SoftBank Holdings will donate and also encourage public contributions.

Speaker #1: We will continue to support the recovery and reconstruction efforts through the services provided by our group companies, to help those affected regions regain their daily life as quickly as possible.

Speaker #1: Now, I would like to go into our earnings results. Towards June, compared to March, the close market has been dynamically moving. As you know, SoftBank Group is an investment company.

Speaker #1: We can be affected by the market, and the investment portfolio valued by the market is basically reflected in our results. As a result, at the end of June, our net asset value—which is the total value of our investment portfolio, less debt, less interest-bearing debt—was calculated accordingly.

Yoshimitsu Goto: As of the end of June, our net asset value, which is the total value of our investment portfolio less debt. This interest-bearing debt gives you a net asset value, JPY 72.3 trillion. This is a record high number. Our performance is actually described by this value. I believe that this is the most important indicator to see and value our enterprise value. This is still a rough estimate, but the pro forma basis, the latest information was net asset value is about JPY 58.3 trillion. It is a fact that it has been declined from JPY 72.3, but actually, if you see the trend in the past, JPY 58 is already a great number to be achieved. I would like to also show this together with our history. This is a kind of the record that we've been experiencing.

Speaker #1: Gives you a net asset value of ¥72.3 trillion. So this is a record high number. Our performance is actually described by this value.

Speaker #1: I believe that this is the most important indicator to consider when assessing our enterprise value. This is still a rough estimate, but on a pro forma basis, the net asset value—based on the latest information—is about ¥58.3 trillion.

Speaker #1: So, it is a fact that it has declined from 72.3, but actually, if you see the trend in the past, 58 is already a great number to be achieved.

Speaker #1: So I would also like to show this together with our history. So this is a kind of record that we've been experiencing.

Speaker #1: And also, this itself actually shows you how much potential we have for further growth in the future. So, as I mention at every quarter, there are good times and bad times.

Yoshimitsu Goto: Also this itself actually shows you how much potentials do we have for further growth in the future. As I mentioned at every quarter, there are good times, bad times. At the same time, we do not really become too happy or too sad about short-term fluctuation. We always look at the mid to long-term period and how are we building the base for the further growth and how that going to be reflected to the future growth. Our investment strategy pretty much equals to our business strategy. As an AI platform provider, what do we need to do? We always kind of think backwards. Once we set the target, then that we would like to discuss what we need to do. Why are we addressing AI infrastructure?

Speaker #1: But at the same time, we do not really become too happy or too sad about short-term fluctuations. We always look at the mid- to long-term period and how we are building the base for further growth and how that is going to be reflected in future growth.

Speaker #1: And our investment strategy is pretty much equal to our business strategy. So as an ASI platform provider, what do we need to do?

Speaker #1: So we always kind of think backwards once we set the target, and then we would like to discuss what we need to do.

Speaker #1: Why are we addressing AI infrastructure? Because if you don't address AI infrastructure, you cannot see the enhancement or acceleration of the speed of AI models.

Yoshimitsu Goto: If you don't address AI infrastructure, you cannot see the enhancement or acceleration of the speed of AI model, OpenAI and other hyperscalers, those AI model players, that we would like to accelerate the speed of those people or those companies. By addressing AI infrastructure, that can also accelerate the growth of Arm, for example. Arm, as you know, actually design the core and heart of all the chip, and they have dominant market shares for that. By having more and more chip to be shipped, their basic business model will grow. Not only that, recently Arm has announced to also address their in-house chip. With the high quality, high capable chip will be used in many AI models, AI infrastructure. Because we've been telling market that we try to become a company to change people's lifestyle.

Speaker #1: OpenAI and other hyperscalers—those AI model players—we would like to accelerate the speed of development for those people or those companies. And by addressing AI infrastructure, that can also accelerate the growth of Arm, for example.

Speaker #1: ARM, as you know, they actually design the core and heart of all the chips, and they have a dominant market share for that.

Speaker #1: And by having more and more chips to be shipped, then the basic business model will grow. And not only that, recently ARM has announced to also address their in-house chip, with the high-quality, high-capable chip to be used in many AI models and AI infrastructure.

Speaker #1: And because we've been telling the market that we try to become a company to change people's lifestyles—so lifestyles or working styles to be changed.

Yoshimitsu Goto: Lifestyles or the working styles to be changed, physical AI is going to be the very focused area that we pay very good attention to. This area is actually just the beginning, and there is not much many company making profit, or we don't really know who will be the winner for the future in this area either. That makes us even more excited to see. Each has a kind of a correlation to each other. That is why that we address these four. Only for the quarter, but we do have some developments here, which I will be explaining in later pages. To become a real number one AI platform provider is something that we are trying to achieve, and that's something that Masa is very much putting his effort into. This is the financial highlights for the Q1.

Speaker #1: Physical AI is going to be a very focused area that we pay close attention to. This area is actually just the beginning.

Speaker #1: And there aren't many companies making a profit, or we don't really know who will be the winner in this area for the future either.

Speaker #1: So that makes us even more excited to see, and each has a kind of correlation to each other. So that is why we address these four.

Speaker #1: So, only for the quarter, but we do have some developments here, which I will be explaining in later pages. So, to become a real number one ASI platform provider is something that we are trying to achieve.

Speaker #1: And that's effort into. And this is the financial highlights for the first quarter. First, 1.8 trillion yen investment gain. So this is increased by 1.3 trillion year over year.

Yoshimitsu Goto: First, JPY 1.8 trillion investment gain. This is increased by JPY 1.3 trillion year-over-year. The net income, JPY 347 billion. Second, as I mentioned in a previous page, net asset value, JPY 72.3 trillion, highest ever compared to the past numbers. Third, for the own investment in OpenAI, we have invest JPY 20 billion in this Q1. Towards October, we have remainders of JPY 10 billion, which is committed. Fourth, for the Q1 period, we have announced plans to develop 5 gigawatt AI data center in France, which was a kind of highlights for our quarter. Now we would like to go into consolidated results. You see the numbers in each respective lines. The investment gain actually increased dramatically compared to the previous fiscal year. Net income is another important number, JPY 347 billion.

Speaker #1: And the net income: 347 billion yen. Second, as I mentioned on a previous page, net asset value: 72.3 trillion yen, the highest ever compared to past numbers.

Speaker #1: And third, follow-on investment in OpenAI. We have invested $20 billion in this first quarter. Towards October, we have the remainder of $10 billion, which is committed.

Speaker #1: And fourth, for the first quarter period, we have announced plans to develop a 5-gigawatt AI data center in France, which was a highlight for our quarter.

Speaker #1: And now we would like to go into the consolidated results. You see the numbers on each respective line, but the investment gain actually increased dramatically compared to the previous quarter.

Speaker #1: Excuse the previous fiscal year. So, net income is another important number, ¥347 billion. I will explain the trend from the past, but there is something missing from here, which is the net asset value.

Yoshimitsu Goto: I will explain you the trend from the past, but something that missing from here, which is the net asset value. I would like to also add, once again, that the net asset value is also important KPI for our company. Investment gain or loss on the net income, how it has been developed. For April to June, Q1, JPY 1.8 trillion, the mainly are due to actually Intel. Last year, we've been paying attention to the semiconductor business in United States, and we invested in Intel as a result. The Q1, it has been making quite a good increase. Also ByteDance invested by Vision Fund. The fair value increased, actually it was another contributor for the investment gains for the quarter. One more important indicator from the financial point of view is, as I mentioned, net asset value, once again.

Speaker #1: I would also like to add, once again, that net asset value is an important KPI for our company. Additionally, investment gain or loss on net income, and how it has developed, are also significant.

Speaker #1: So, for April to June, the first quarter, ¥1.8 trillion—this was mainly due to Intel. Last year, we've been paying attention to the semiconductor business in the United States, and we invested in Intel as a result.

Speaker #1: The first quarter, it has been making quite a good increase. And also, ByteDance, invested in by Vision Fund, the fair value increase actually was another contributor to the investment gains for the quarter.

Speaker #1: One more important indicator, from the financial point of view, is, as I mentioned, net asset value. Once again, at the end of June, ¥72.3 trillion.

Yoshimitsu Goto: End of June, JPY 72.3 trillion. Compared to a quarter before, that has increased dramatically. Loan-to-value to measure your safety. This is a net debt over equity value of holding. At the end of June, 13%, which is also a very safe level or even too safe. We may need to invest more, probably. That is how we believe being kind of tightened, the loan-to-value. Cash position, JPY 3.5 trillion back in the March end, has decreased a little bit to JPY 2.3 trillion, but because this is due to the redemptions for the maturity of the bonds and also for some investment activities. Still, it does maintain the necessary cash positions based on the financial policy we have. Net asset value, quarterly basis. As you can see, highest ever, JPY 72.3 trillion. Loan-to-value.

Speaker #1: Compared to quarter before, that has increased dramatically and also don't you value to measure your safetiness. This is a net debt over equity value of holding.

Speaker #1: At the end of June, 13%, which is also a very safe level, or even too safe. So we may need to invest more, probably.

Speaker #1: That's how we believe we have tightened the loan-to-value. And for the cash position, it was ¥3.5 trillion at the end of March and has decreased a little bit to ¥2.3 trillion.

Speaker #1: But this is due to redemptions for the maturity of the bonds and also for some investment activities. But still, we maintain the necessary cash positions based on the financial policy we have.

Speaker #1: Net asset value on a quarterly basis, as you can see, is at the highest ever—¥72.3 trillion. Regarding loan-to-value, if you look at the trend from the past, as a financial policy, we have 25% as one threshold.

Yoshimitsu Goto: If you look at the trend from the past, as a financial policy, we have 25% as one threshold. At the same time, I would also like to emphasize 25% itself is already safe enough, but we make it even safer of our business itself. Our company has quite a large investment from our own balance sheet, which is quite rare and unique compared to the other global investment company. I believe this is important for us to share with you the safety of our business using loan-to-value. Why 25%? You may ask, it is because we do need to see some kind of threshold, where do we think that the safety level are there? Of course, the financial people may understand well about the loan-to-value, how much will be the safe level, but for the public to understand.

Speaker #1: But at the same time, I would also like to emphasize that 25% itself is already safe enough, but we make our business even safer.

Speaker #1: Because our company has quite a large investment from our own balance sheet, which is quite rare and unique compared to other global investment companies.

Speaker #1: So, I believe this is important for us to share with you—the safety of our business using loan-to-value. And why 25%, you may ask.

Speaker #1: It's because we do need to see some kind of threshold—where do we think that the safety levels are there? Of course, the financial people may understand well about the loan-to-value: how much would be the safe level.

Speaker #1: But for the public to understand, even though the market can be volatile, as long as we keep this level, we'll be able to keep the company at a safe level.

Yoshimitsu Goto: Even that the market can go volatile, still, as long as we keep this level, we will be able to keep a company as a safe level. Cash position. Little bit of decrease I mentioned earlier, but in our financial policy, our criteria is maintaining a cash position above 2 years worth of bond redemption. Over 2 years, we expecting JPY 1.5 trillion for the bond redemption, so that our cash position covers more than enough.

Speaker #1: Cash position. Little bit of decrease I mentioned earlier. But in a financial policy, our criteria is the maintaining a cash position above two years worth of bond redemption.

Speaker #1: And over two years, we expect ¥1.5 trillion for bond redemption, so that our cash position is more than sufficient.

Speaker #2: So now, let me talk about ARM, one of the most important companies to us. Revenue in the first quarter hit a record high.

Yoshimitsu Goto: Now, let me talk about Arm, one of the most important companies to us. Revenue. In Q1, they hit the highest record, posting $1.3 billion. It increased 22% year-on-year. Amazing result. Fully diluted earnings per share. They hit the record high as Q1. It increased 29% year-on-year. Again, great performance. Guidance. For revenue, they have a range, but our midpoint is $1.38 billion for Q2. Guidance for EPS, $0.47 midpoint. Compared to analyst consensus as of Arm's earnings announcement, both are higher. I think that is really convincing and something that you agree on, looking at Arm's performance. Arm-based CPU cores for data centers are growing, as you know. It has been growing since 2019. Many hyperscalers have adopted Arm-based CPU, Cobalt and others, and Google.

Speaker #2: Posting 1.3 billion. It increased 22% year on year—amazing result. Fully diluted earnings per share hit a record high in the first quarter.

Speaker #2: It increased 29% year-on-year, reflecting great performance. For guidance, revenue has a range, but the midpoint is $1.38 billion for the second quarter.

Speaker #2: Guidance for EPS is $0.47 at the midpoint. Compared to analyst consensus as of ARM's earnings announcement, both are higher, so I think that's really convincing and something that you agree on when looking at ARM's performance.

Speaker #2: ARM-based CPU cores for data centers are growing, as you know. Growth has continued since 2019. Many hyperscalers have adopted ARM-based CPUs, such as Cobalt and others.

Speaker #2: And Google—especially—it grew significantly in the last 12 months, which should have a positive impact on ARM's future going forward. Again, many tech companies have adopted ARM's products.

Yoshimitsu Goto: Especially, it grew significantly in the last 12 months, which should have a positive impact on Arm's future going forward. Again, many tech companies have adopted Arm's products. Arm-based CPU chips have been used by about 50% of leading hyperscalers, like you can see on the slide, like Graviton, Axion, Cobalt, and Grace. They help us to raise Arm's brand value and recognition. As you know, Arm keeps providing chip design since the beginning, Arm has announced that they would develop their own product by themselves, which is a huge jump from Arm's perspective. In fact, this CPU, compared to x86, per 1 gigawatt of data center capacity, it helped save up to JPY 10 billion CapEx. Very efficient CPU. As agentic AI is deployed further, the market of CPUs for data centers should grow significantly.

Speaker #2: ARM IPO-based CPU chips have been used by about 50% of the leading hyperscalers, as you can see on the slide. Examples include Graviton, Axion, Cobalt, and Grace.

Speaker #2: They help us to raise ARM's brand value and recognition. As you know, ARM has been providing chip designs since the beginning. But also, ARM has announced that they would develop their own products by themselves.

Speaker #2: Which is a huge jump from ARM's perspective. In fact, this CPU, compared to x86, per one gigawatt of data center capacity, helped save up to $10 billion in CAPEX.

Speaker #2: Very CPU. And as agentic AI is deployed further, the market for CPUs in data centers should grow significantly. ARM's AGI CPU is attracting more demand than we had expected, and more than ARM had expected.

Yoshimitsu Goto: Arm's AGI CPU attracts more demand than what we had expected and what Arm had expected, which is all positive. We have two more companies join as launch partners of Arm AGI CPU, Oracle and Varda, which is great. From a PC perspective, in fact, agentic AI goes into not only cloud but also in varieties of devices. NVIDIA announced a chip for PCs with agentic functionality, and this has Arm-based Grace CPU. OpenAI. By the way, if you have any questions about Arm, you can ask Jason later. Now, OpenAI. As we mentioned in the last earnings result announcement, we made a commitment in March, and that commitment was to invest JPY 30 billion this year, and of them, JPY 20 billion were executed. The remaining JPY 10 billion investment will bring total investment to JPY 64.6 billion and ownership to 13%.

Speaker #2: Which is all positive. And we have two more companies join as launch partners of ARM AGI CPU: Oracle and Varda, which is great. From a PC perspective, well, in fact, agentic AI goes not only into the cloud, but also into a variety of devices.

Speaker #2: And Nvidia announced a chip for PCs with agentic functionality. And this has an ARM-based Grace CPU. I mean, OpenAI—and by the way, if you have any questions about ARM, you can ask Jason.

Speaker #2: Later, now, OpenAI. As we mentioned in the last earnings result announcement, we made a commitment in March, and that commitment was to invest ¥3.0 trillion this year, of which ¥2.0 trillion has already been executed.

Speaker #2: And the remaining $10 billion investment will bring total investment to $64.6 billion and ownership to 13%. OpenAI’s GPT is a base to offer a variety of products.

Yoshimitsu Goto: OpenAI's GPT is a base to offer a variety of products for consumers. As you are familiar with, ChatGPT is there, for business users, especially for our software engineers, Codex is offered, which we focused on, and they focused on selling Codex. On top of that, ChatGPT Work was released recently. AI model evolves, and product performance goes up accordingly. In 2022, GPT-3.5 was released as what we know as ChatGPT, and GPT has been adding more and more functionality and capabilities, more than you may imagine. GPT-4 has an AI capability that solves problems, not just answers questions. It was released in March 2023, 3 years ago. GPT-5 has agentic AI capability, so it is AI that performs tasks. Compared to 3.5 to 4, it is a significant evolution. The latest one, GPT-5.6, agentic functionality is even enhanced.

Speaker #2: For consumers, as you are familiar with, ChatGPT is there. And for business users, especially for software engineers, Codex is offered. We focus on this, and they focus on selling Codex.

Speaker #2: On top of that, ChatGPT work was released recently. So the AI model evolves and product performance goes up accordingly. In 2022, GPT-3.5 was released as what we know as ChatGPT.

Speaker #2: And GPT has been adding more and more functionality and capabilities—more than you may imagine. GPT-4 has an AI capability that solves problems, not just answers questions.

Speaker #2: It was released in March 2023, three years ago. And GPT-5 has agentic AI capability so it is AI that performs tests. So compared to 3.5 to 4, it is a significant evolution.

Speaker #2: And the latest one, GPT-5.6, agentic functionality is even enhanced. So it is an AI that goes and gets work done. So AI does work autonomously, which is unique.

Yoshimitsu Goto: It is an AI that gets work done. AI does work autonomously, which is unique. Talking about the GPT-5.6, which is the latest revision. From experts' perspective, how the 5.6 is viewed. There was an evaluation methodology developed by UC Berkeley and others. According to their evaluation, OpenAI yielded the highest performance in terms of score. If you take a look at on the right-hand side, compared to other AIs, OpenAI's 5.6-4 costs far less. High-performing model with lower cost is how the GPT-5.6 is seen by professionals. I am not an engineer at all. I am a finance guy, so I cannot answer to any professional or expert questions, but this is as much as I can tell you generally. Codex for SoftBank engineers has been growing significantly. In December 2025, weekly active users were 0.4 million, and in July, 10 million.

Speaker #2: Talking about the GPT-5.6, which is the latest revision—so from an expert's perspective, how is 5.6 viewed? There was an evaluation methodology developed by UC Berkeley and others. According to their evaluation...

Speaker #2: OpenAI yielded the highest performance in terms of score, and if you take a look at the right-hand side, compared to other AIs, OpenAI's $5.6 saw cost far less.

Speaker #2: So, a high-performing model with lower cost is how GPT-5.6 is seen by professionals. I'm not an engineer at all. I am a finance guy, so I cannot answer any professional or expert questions.

Speaker #2: But this is as much as I can tell generally. For software engineers, growth has been significant. In December 2025, weekly active users were 0.4 million, and in July, 10 million.

Speaker #2: It grew 24 times in just seven months. On top of Codex, ChatGPT work was released for business persons. So, combined, Codex and ChatGPT work saw weekly active users grow 25 times in seven months.

Yoshimitsu Goto: It grew 24 times in just seven months. On top of Codex, ChatGPT Work was released for businesspersons. Combined, Codex and ChatGPT Work, again, weekly active users grew 25 times in seven months. OpenAI is a latecomer in terms of enterprise market because they started off with the retail users or retail market. OpenAI has advantage in terms of their brand recognition among consumer market. Going forward, enterprise market is a key focus so that they can grow more in the enterprise market. Now let me talk about PaaS or Patching as a Service. In July, last month, actually, SB OpenAI Japan, a joint venture between SoftBank and OpenAI, announced and launched PaaS as a cybersecurity solution. We are a holding company, and we are a strategic investment holding company.

Speaker #2: So OpenAI is kind of a latecomer in terms of the enterprise market because they started off with retail users, or the retail market. But OpenAI has an advantage in terms of their brand recognition among the consumer market.

Speaker #2: So, going forward, the enterprise market is a key focus, so that they can grow more in the enterprise market. Now, let me talk about the past, or patching as a service.

Speaker #2: In July, just last month, SBO AI Japan, a joint venture between SoftBank and OpenAI, announced and launched PATH as a cybersecurity solution. We are a holding company, and we are a strategic investment holding company.

Speaker #2: So, from our perspective, our job is to make sure that our portfolio companies work together so that we can help them raise their corporate value.

Yoshimitsu Goto: From our perspective, our job is to make sure that our portfolio company work together so that we can help them to raise their corporate value. We want to help them to do that. Again, this PaaS launch by our portfolio companies are great example. This PaaS will be rolled out to 3,000 companies in Japan. They start from vulnerability assessment, and once vulnerabilities are identified, they run the program to apply patches. From end to end, they offer this PaaS service to those critical infrastructure companies in Japan, 3,000 that is. Later, we want to even offer code modernization. Now, let me go into AI infrastructure. AI data center portfolio we are mainly leading right now is in United States. Also, we have a project in France as well, which is announced this quarter. For United States, Ohio and Texas state.

Speaker #2: We want to help them to do that. So again, this pass launch between our buy, our portfolio companies, is a great example. This pass will be rolled out to 3,000 companies in Japan.

Speaker #2: So they start from vulnerability assessment, and once vulnerabilities are identified, they run the program to apply patches. From end to end, they offer this patch service to those critical infrastructure companies in Japan.

Speaker #2: 3,000, that is. And later, we want to even offer code modernization. Now, let me go into AI infrastructure—AI data center portfolio. Where we are mainly leading right now is in the United States.

Speaker #2: And also, we have a project in France as well, which was announced this quarter. For the United States, it's Ohio and Texas. In France, all of northern France is actually the area we are addressing with our project.

Yoshimitsu Goto: In France, Hauts-de-France, which is northern France area, is actually the place we are addressing our project. In France, we announced a plan to develop 5 gigawatt AI data center in France. In June 2026, there was a Choose France Summit, and there, in front of President Macron, we have announced a plan for the development of 5 gigawatt. For the first phase, EUR 45 billion investment to deliver 3.1 gigawatt of AI data center capacity in northern France by 2031. More specifically, Dunkirk, Bouchain, Bosquel, those are the first site that we will be addressing. First gigawatt Bosquel AI data center is actually designated as fast-track project by French government. With that, we have secured 1 gigawatt of power and also accelerated grid connection is actually addressed.

Speaker #2: In France, we announced a plan to develop five gigawatt AI data center in France. So in June 2026, there was a choose France summit and there in front of President Macron, we have announced a plan for the development of five gigawatt for the first phase 45 billion euro investment to deliver 3.1 gigawatt of AI data center capacity in northern France by 2031.

Speaker #2: More specifically, Dunkirk, Bucheon, and Bosco—those are the first sites that we will be addressing. The first gigawatt Bosco AI data center is actually designated as a fast-track project by the French government.

Speaker #2: So, to start, we have secured one gigawatt of power, and also, an accelerated grid connection is actually addressed. In the United States, if we try to address a data center project or if we try to do so in Japan—because data centers consume a huge volume of power—you also need to build a power generation plant at the same time, which means you need to double the size of capex.

Yoshimitsu Goto: In United States, if we try to address the data center project or if we try to do in Japan, because data center consume a huge volume of power, you also need to build power generation plant at the same time, which means you need a double the size of CapEx. In France, compared to the rest of the world, they have a very unique advantage, which is that they are actually the exporting country of the power. They can provide the power to the data center use.

Speaker #2: But in France, compared to the rest of the world, they have a very unique advantage which is that they are actually the exporting country of the power.

Speaker #2: So that they have, actually, they can provide the power to the data center use, without causing any impact to the French citizens. But still, they'll be able to allocate some power to the data center, meaning addressing data center project approach is different compared to the other world.

Yoshimitsu Goto: Without causing any impact to the French citizens, still, they'll be able to allocate some power to the data center, meaning addressing data center project approach is different compared to the other world, and they do have a good base to proceed the data center project from that reason. Also in France, we've been building supply chain for AI data center equipment and establishing a local supply chain for power modules in Dunkirk to accelerate data center development together with Schneider. SoftBank Group and Schneider are going to set the supply chain for the power module, and we'll be able to accelerate data center development. In United States, PORTS Technology Campus, Pike County, Ohio, which we announced the 10-gigawatt large scale data center project. This is quite a huge project.

Speaker #2: And they do have a kind of a good base to proceed the data center project from that reason. And also in France, we've been building supply chain for AI data center equipment.

Speaker #2: And establishing a local supply chain for power modules in Dunkirk to accelerate data center development together with Schneider. So SoftBank Group and the Schneider are going to provide set the supply chain for the power module.

Speaker #2: And we'll be able to accelerate data center development. In the United States, a post-technology campus in Pike County, Ohio, which we announced—the 10-gigawatt large-scale data center project.

Speaker #2: This is quite a huge project. We are currently in discussions towards the execution of a lease agreement, and we are coming to the final stage of such discussions.

Yoshimitsu Goto: We are currently in discussion towards execution of a lease agreement, we are coming to the final stage of such discussion. At the same time, we are expecting construction starting in 2026. One another project that we've been working on in the United States, we are in Midland County, Texas, AI Data Center. Already have a lease agreement placed with OpenAI, and building one construction on track for the delivery. To proceed our data center project, we have a group company which plays a very important role, which is called SB Energy, actually established back in 2019. Originally, they've been addressing many power projects in the United States, and they've been extending their business domain to data center.

Speaker #2: And at the same time, we are expecting construction—it's starting in 2026. Another project that we've been working on in the United States, we are in Milam County, Texas.

Speaker #2: AI data center. And already have a lease agreement placed with OpenAI. And building one construction on track for the delivery. To proceed our data center project, we have a group company which plays a very important role which is called SB Energy.

Speaker #2: Actually established back in 2019. Originally, they've been addressing many power projects in United States. And they've been expanding their business domain to data center.

Speaker #2: Because power and the data center developed in an integrated way, it is going to be the benefit and advantage, and we have a very experienced management to lead the business of SB Energy.

Yoshimitsu Goto: Power and the data center, developed, integrated way, is going to be the benefit and advantage, we have a very experienced management to lead the business of SB Energy. Cumulative project capital raised, which is almost the total number of project amount by SB Energy, is about $19 billion. Power generation and the storage capacity under operations or under construction is about 5 gigawatts. They do have quite the size of the business and the presence in the United States. In May this year, they have already filed the confidential filing for the Form S-1. We are very much looking forward to see their further development in the future. In Neo Cloud service, which was also presented at SoftBank Corp.'s earnings results announcement a few days ago.

Speaker #2: So cumulative project capital raised which is almost a total number of project amount by SoftBank Energy is about 19 billion. And power generation and the storage capacity under operations or under construction is about five gigawatt.

Speaker #2: So they do have quite a sizable business and a presence in the United States. In May this year, they already made a confidential filing for Form S-1.

Speaker #2: And we are very much looking forward to seeing their further development in the future. And Neo Cloud Service, which was also presented at SoftBank Corp.'s earnings results announcement a few days ago.

Speaker #2: So, our domestic mobile operator and SoftBank Group holding company, together with them, we are launching the project for the Neo Cloud service in the United States.

Yoshimitsu Goto: Our domestic mobile operator in SoftBank Group holding company, together with them, we are launching the project for the Neo Cloud service in the United States. This Neo Cloud business will be providing AI compute via the cloud. Power AI data centers, which will be provided by SB Energy, is bringing into the special purpose company, and the service will be provided as a cloud service to the off-takers. We believe this is going to be also another important business model for the future. Now into Vision Fund investment gain or loss. This is since the inception of the business. It's going well. Actually adding some more investment gain. As of the end of June, JPY 47 billion. This is a breakdown of the gain or loss on investments for the Q1 period.

Speaker #2: So this Neo Cloud business will be providing AI compute via the cloud. So, which will be provided by SB Energy, is being brought into the special purpose company, and the service will be provided as a cloud service to the off-takers.

Speaker #2: We believe this is going to be also another important business model for the future. Now into vision fund. Investment gain or loss this is since the inception of the business.

Speaker #2: It's going well, and actually adding some more investment gain as of the end of June—$47 billion. And this is a breakdown of the gain or loss on investments for the first quarter period.

Speaker #2: Vision Fund One on your left hand side mainly due to the increase in the fair value of bite downs give these led to the vision fund increase of the gain on investments by 2.3 billion and on your right hand side vision fund two and the thumb and others a little bit of a negative this is because of the pay pay which went public this spring and the share price of pay pay a little bit weak this quarter actually that was the main reason but since then pay pay is actually recovering its share price and for the future we are still very excited about this business too.

Yoshimitsu Goto: Vision Fund 1 on your left-hand side. Mainly due to the increase in the fair value of buy downs, this led to the Vision Fund increase of the gain on investments by JPY 2.3 billion. On your right-hand side, Vision Fund 2 and LATAM and others, a little bit of a negative. This is because of the PayPay, which went public this spring, and the share price of PayPay a little bit weak this quarter. Actually, that was the main reason. Since then, PayPay is actually recovering its share price. For the future, we are still very excited about this business too. Cumulative investment return. Including the exited companies, we are showing the total of the investment return. On your left, Vision Fund 1, JPY 114 billion cumulative investment return. Exceeding largely compared to cumulative investment cost. Green portion is the exit case.

Speaker #2: Cumulative investment return including the exited companies we showing the total of the investment return and on your left vision fund one 114 billion accumulative investment return so exceeding largely compared to cumulative investment cost.

Speaker #2: So, the green portion is the exit case, so actually, we have already exited $73 billion. Also, the investment monetization—those green bars that we just mentioned on the previous page.

Yoshimitsu Goto: Actually, that we have already exited JPY 73 billion. Also the investment monetization. Those green bars that we have just mentioned in the previous page. In every quarter, especially in the recent quarters, about JPY 1.5 billion, in average, has been monetized and made as a return. In the past two years, main divestments were, on your right-hand side, Coupang, Roivant, Full Truck Alliance, DoorDash, and so on. Those actually went public successfully as a result that we have addressed the monetization of those. Of course, not only the invested portfolio, but the private companies. There are many ways to exit, not only sales. Sometimes you can sell in the market for the public share, but as a private share, you can have a transaction, or M&A can be another option too.

Speaker #2: In every quarter, especially in the recent quarters, about $1.5 billion on average has been monetized. And it has made its return. In the past two years, the main divestments were, on your right-hand side, Coupang, Royband, Foodtruck Alliance, DoorDash, and so on.

Speaker #2: So, those actually went public successfully as a result of us addressing the monetization of those. Of course, not only the invested portfolio, but for the private companies, there are many ways to exit—not only sales. Sometimes you can sell in the market for the public shares, but as for private shares, you can have a transaction, or M&A can be another option too.

Speaker #2: So there are many ways to go exit of the portfolio. And we would like to execute the good options available. And we have a CFO new CFO for the vision fund mark company especially have an expertise in the monetization so and pipelines late stage portfolio on your right hand side of total fair value because of the follow on investment in open AI it went to 133 billion dollars.

Yoshimitsu Goto: There are many ways to go exit of the portfolio, and we would like to execute the good options available. We have a new CFO for the Vision Fund, Mark Agne, especially have an expertise in the monetization so far. Public listing and pipelines. Late stage portfolio on your right-hand side, total fair value, because of the follow-on investment in OpenAI, it went to JPY 133 billion. Compared to March end, late stage portfolio total fair value itself increased by JPY 15 billion. Let me pick up some of the portfolio companies which are in the late stage. PRISM, formerly known as Oyo, you may have seen in some Japanese market as well, and they've been operates a global hospitality platform. They have rebranded under the name of PRISM, and also already made and filing for public offering.

Speaker #2: So compared to March end late stage portfolio total fair value itself increased by 15 billion. And let me pick up some of the portfolio companies which in the late stage prison formerly known as Oyo you may have seen in some Japanese market as well.

Speaker #2: And they've been operating a global hospitality platform. So, they have rebranded under the name of Prism and have already filed for a public offering.

Speaker #2: And they supports accommodation partners with demand generation dynamic pricing revenue management and day-to-day operation. They have themselves have managing actually the hotels but now that they're very much focused on the platform.

Yoshimitsu Goto: They support accommodation partners with demand generation, dynamic pricing, revenue management, and day-to-day operation. They have themselves have managing actually the hotels, but now that they're very much focused on the platform, they have clearer vision and direction of the business models now. They are also a good promising company. Klook, they offer us an online platform for travelers to discover book tours, activities, transportation, hotels, and more around the world. We have invested in 2019, Q1, their business model itself has been making a good momentum, we are also excited about this company. One note on the PayPay's movements. We would like to use some slides to share with you. This was announced on 4 June this year, which was to make T&D Financial Life a subsidiary of PayPay Corporation.

Speaker #2: So they have clearly clearer vision and direction of the business models now. They are also a good promising company. And the clerk is the they offers an online platform for travelers to discover book tours and book tours activities transportation hotels and more around the world.

Speaker #2: And we have invested in 2019 first quarter and that the business model itself has been making a good momentum. And we are also excited about this company.

Speaker #2: And one note on the PayPay movement: we would like to use some slides to share with you. This was announced on June 4th this year, which was to make TND Financial Life a subsidiary of PayPay Corporation.

Speaker #2: So, having this company under the umbrella of PayPay means that they will be able to provide comprehensive financial services on top of what they already offer. By having a life insurance business based on the life stage of each user, we'll be able to provide very good and comprehensive services. We've been looking into this agenda, and at this time, it has produced good results.

Yoshimitsu Goto: Having this company under the umbrella of PayPay so that they will be able to provide comprehensive financial service on top of what they have already. By having a life insurance business based on the life stage of each users, we'll be able to provide very good comprehensive services. We've been looking into this agenda, and this time it made good results. Another one is the capital and the business alliance with 7&I Holdings. On your left, you see SoftBank Corp., a domestic operator, PayPay, and Sumitomo Mitsui Card, JPY 100 billion each. The ownership stake itself is about 2.13% in 7&I Holdings, and we are starting the capital alliance, especially when it comes to PayPay, it is a good achievement here.

Speaker #2: Another one is the capital and the business alliance with seven and nine holdings. On your left you see SOFTBANK CORP domestic operator pay pay and Sumitomo Mitsui Card 100 billion each.

Speaker #2: So the ownership stake itself is about 2.13% in Seven & i Holdings, and we are starting the capital alliance. Especially when it comes to PayPay, it is a good achievement here because there are about 20 million customers per day visiting 7-Eleven stores and 30 million transactions per day made by PayPay.

Yoshimitsu Goto: There are about 20 million customers per day visiting 7-Eleven stores, and 30 million transactions per day made by PayPay. Utilizing the data in between so that we'll be able to utilize and see the future combinations. Number of the store-wise, they have 22,000 stores in 7-Eleven, and PayPay has a 75 million user base already. That can be a great value generator for each other.

Speaker #2: So utilizing the data in between so that we'll be able to utilize and see the future combinations number of the store wise they have 22,000 stores in seven eleven and the pay pay has a 75 million user base already.

Speaker #2: They can be a great value generator for each other.

[Analyst]: Uh-

Speaker #1: Now let me talk about physical AI. Commercial deployment is accelerating across the portfolio companies. Including companies under the umbrella of Robo Holdings over 30 physical AI businesses are on our portfolio.

Yoshimitsu Goto: Now let me talk about physical AI. Commercial deployment is accelerating across the portfolio companies, including companies under the umbrella of Robo Holdings. Over 30 physical AI businesses are on our portfolio. I think we can group them into three categories. First, robotics, obviously, which should include humanoid in the future. Robotics and AI technology is one bucket, and then automation of infrastructure, like factory automation. That has been there for some time. The third bucket is mobility and autonomous driving. In each sector, those portfolio companies that are only a handful of our portfolio companies should play key roles in respective area. Masa is expecting a lot and spending a lot of time in physical AI sector. Please note, right top, ABB Robotics, we announced acquisition, and by end of this year, we should be able to finish approval process and completed acquisition.

Speaker #1: I think we can group them into three categories. First, robotics, obviously, which should include humanoid in the future. So, robotics and AI technology is one bucket.

Speaker #1: And then automation of infrastructure, like factory automation, that has been there for some time. And the third bucket is mobility and autonomous driving. In each sector, those portfolio companies—only a handful of our portfolio companies—should play key roles in their respective areas, and the Masa-san is expecting a lot and spending a lot of time in the physical AI sector.

Speaker #1: And please note right top ABB Robotics we announced acquisition and by end of this year we should be able to finish approval process and completed acquisition.

Speaker #1: Upon completion of acquisition huge operations huge services across the globe will be integrated and it should deliver a great synergies. And accelerates deployment of robots.

Yoshimitsu Goto: Upon completion of acquisition, huge operations, huge services across the globe will be integrated, and it should deliver great synergies and accelerate deployment of robots. Last but not the least, financial policy. As I keep saying, no change on financial policy, which is to maintain LTV below 25% in normal circumstances. To maintain at least two years' worth of bond redemptions in cash position, making sure that we are safe and sound. To summarize investment amounts compared to last year, 2025 and 2026, currently, we are kind of controlling investment amounts so far, but the biggest investment we have done so far is in OpenAI. Black indicates already executed, total JPY 20 billion already executed in terms of investment in OpenAI. JPY 10 more for OpenAI, JPY 5.4 for ABB Robotics, and JPY 3.1 for DigitalBridge, which we announced M&A last year. We committed JPY 18.5 billion.

Speaker #1: Last but not least, financial policy. As I keep saying, no change on financial policy, which is to maintain LTV below 25% in normal circumstances.

Speaker #1: And to maintain at least two years' worth of bond redemptions in cash position, making sure that we are safe and sound. To summarize, investment amounts compared to last year—2025. In 2026, currently, we are kind of controlling the investment amount so far. But the biggest investment we have done so far is in OpenAI; block indicates already executed.

Speaker #1: So, a total of $20 billion has already been executed in terms of investment in OpenAI, and $10 billion more for OpenAI, $5.4 billion for ABB Robotics, and $3.1 billion for DigitalBridge, which we announced among A last year.

Speaker #1: So, we committed $18.5 billion. Yeah, we closed our financings one by one. First, we entered into the financing agreement using OpenAI shares—I think it's today as we speak.

Yoshimitsu Goto: We closed our financings one by one. First, we entered into a financing agreement using OpenAI shares. I think it is today, as we speak, JPY 10 billion of OpenAI, and we arranged LBO financing, max at JPY 1.8 billion ahead of acquisition of ABB Robotics' business. Thanks to great support from globally known big banks, we were able to arrange those financing. We really appreciate their continued support. About ratings, S&P Global Ratings kept negative for a long time, but it revised its outlook from negative to stable, which is one of the great piece of news in rating.

Speaker #1: 10 billion of open AI and we arranged LDO financing max 1.8 billion ahead of acquisition of ABB's Robotics business. So thanks to great support from globally known big banks we were able to arrange those financing.

Speaker #1: We really appreciate their continued support. About ratings S&P kept negative for a long time but they revised its outlook from negative to stable which is one of the great piece of news in rating.

Speaker #1: As I have explained, we will keep focusing on those four factors to raise our corporate value moving forward. Again, information revolution, happiness for everyone. Thank you very much for your kind attention, and now I would like to start taking your questions.

Yoshimitsu Goto: We keep focusing on those four sectors to raise our corporate value moving forward. Again, information revolution, happiness for everyone. Thank you very much for your kind attention. Now we'd like to start taking your questions. Thank you. Now, we would like to take questions. First, we would like to take questions from the floor. Please wait for the microphone and start with your name and affiliation. For those participating online, please access Zoom using the instructions provided in the email sent to you in advance. To avoid audio feedback or looping, we kindly ask that anyone asking a question refrain from connecting to any live streams other than the Zoom webinar. If you have questions, please click the raise hand button and wait until you are called on. If you wish to withdraw your question, please click the lower hand button.

Speaker #1: Thank you.

Speaker #2: Now we would like to take questions. First we would like to take questions from the floor. Please wait for the microphone and start with your name and affiliation.

Speaker #2: For those participating online please access Zoom using instructions provided in the email sent to you in advance. To avoid audio feedback or looping we kindly ask that anyone asking a question refrain from connecting to any live streams other than the Zoom webinar.

Speaker #2: If you have questions, please click the 'raise hand' button and wait until you are called on. If you wish to withdraw your question, please click the 'lower hand' button.

Speaker #2: If you are joining the Japanese Zoom please ask a question in Japanese. Thank you very much for your understanding. If we like to take up to two questions we would like to take up to two questions per person so that we can take questions from as many people as possible.

Yoshimitsu Goto: If you are joining the Japanese Zoom, please ask your question in Japanese. Thank you very much for your understanding. We would like to take up to two questions per person so that we can take questions from as many people as possible. Now, we would like to take questions from the floor. The very front row, person in the middle section, please. Thank you. My name is Suga from Nikkei Newspaper. I have two questions, please. First, after July, US tech major player has been criticized with the excess investment in data center. Will you keep your amount investing in data center, or are you going to change your direction in investment in data center business? Yes, thank you for your question. Data center projects are announced one after another in the United States. I think that the Stargate Project of ours set the fire in the market.

Speaker #2: Now we would like to take a question from the floor. The very front row gent person in the middle section please. Thank you. My name is Suga from Nikkei newspaper.

Speaker #2: I have two questions please. First after July US tech major player has been criticized with the excess investment in data center with you keep your amount investing in data center or are you going to change your direction in investment in data center business.

Speaker #2: Yes, thank you for your question. Data center projects are announced one after another in the United States. I think that the Stargate project of ours set the fire in the market.

Speaker #2: And also, there are some arguments that this may be a bubble, but we do have a very clear view on the demand and supply imbalance, so the supply is very much short.

Yoshimitsu Goto: Also, there are some arguments that they may be a bubble. We do have a very clear view on demand and supply imbalance. The supply is very much short, and that is why this project is announced one after another, which I believe is a healthy situation. Without securing computing power, technology and the service of AI can be slowed down. I believe this is necessary, the project owners leading such an investment, and we would like to be the part of it, too. Thank you. My second question is about OpenAI IPO timing. I would like to ask you. There are some media coverage talking about postponing to next year, but how do you see about the timing? If there is any postpone, what kind of impact to your business? Well, same answer back to you, actually.

Speaker #2: And that is why these projects are being announced one after another, which I believe is a healthy situation. Without securing computing power, technology and the service of AI can be slowed down.

Speaker #2: So I believe this is necessary—the project owners leading such investments—and we would like to be part of it too. Thank you.

Speaker #2: My second question is about the OpenAI IPO timing. I would like to ask you—there is some media coverage talking about postponing to next year—but how do you see the timing, and if there is any postponement, what kind of impact would that have on your business?

Speaker #2: Well, same answer back to you actually. We are not a company going public, so I have no comment, or I cannot comment on the timing. Of course, as one of the investors in the company, we are very much keen to see and are expecting an IPO of OpenAI.

Yoshimitsu Goto: We are not a company going public. I have no comment, or I cannot comment on the timing. Of course, as one of the investors in the company, we are very much keen to see and expecting an IPO of OpenAI. Thank you. Next question.

Speaker #1: Thank you. Next question. My name is Marie from Diamond Magazine. I have two questions. First, SP Neo. So, Bank Corp is engaged, so what's the purpose or why? I wonder if you want to build expertise in Neo Cloud. So again, the size of Neo Cloud—you mentioned 10 gigawatts, and Ohio and Texas are talking about 10 gigawatts. Is it just by accident or what? So is SP Neo kind of equal to Ohio or Texas? And also, the non-recourse financing you mentioned—I understand that you don't want to affect your own business. So, how much would it be in terms of non-recourse financing? A lot of questions there about Neo Cloud, sorry about that.

Yoshimitsu Goto: My name is Murai from Diamond Magazine. I have two questions. First, SB Neo. SoftBank Corp. is engaged. What's the purpose or why? I wonder if you want to build expertise in Neo Cloud. Again, the size of a Neo Cloud, you mentioned 10 gigawatts. Ohio and Texas are talking about 10 gigawatts. Is it just by accident or what? SB Neo equal to Ohio or Texas? Also, non-recourse financing you mentioned. I understand that you don't want to affect your own business. How much it would be in terms of non-recourse financing? A lot of questions around Neo Cloud, sorry about that.

Speaker #1: Thank you. Neo Cloud business itself is led by SoftBank Corp., so for details I would encourage you to ask them directly. And you are talking about 10 gig.

Yoshimitsu Goto: Thank you. Neo Cloud business itself is led by SoftBank Corp.

Yoshimitsu Goto: Details, I would encourage you to ask them directly. You're talking about 10 gigawatts. I think you are referring to Portsmouth project. Project itself does not necessarily mean SB Neo project. As you can see on the slide, SB Neo's role is to provide computing to customers and talking about the non-recourse loan. Again, this is a project, and this is just one of the typical examples of project financing. Off-taker of project finance depends on the credit of off-takers. From SB's perspective, it's a non-recourse financing. Again, I suggest you to talk to SB or SoftBank for more details. 10 gigawatts is the start of a new credit service they mentioned in the announcement. Of course, they want to do 10 gigawatts, but they want to build demands as they expand the business.

Speaker #1: I think you are referring to the Portsmouth project, and 'project' itself does not necessarily mean the SP Neo project. As you can see on the slide, SP Neo's role is to provide computing to customers. Talking about the non-recourse loan again, this is a project, and this is just one of the typical examples of project financing. The off-taker of project finance depends on the credit of the off-takers.

Speaker #1: So, from SP's perspective, it's a non-recourse financing. So again, I suggest you talk to SP or SoftBank for more details. The 10 gigawatt is the start of a new service they mentioned in the announcement. Of course, they want to do 10 gigawatt, but they want to build demand as they expand the business.

Speaker #1: So, Neo Cloud data center is based on the assumption of Texas or Portsmouth data centers. It's still being finalized which project, or how much they get involved in.

Yoshimitsu Goto: Neo Cloud Data Center is based on assumption of Texas or Portsmouth data centers. It's still being finalized which project or how much they get involved in. Next question is about Arm. Just to clarify, as a project, if Neo or Neo Cloud is not a Portsmouth project. It doesn't necessarily mean this business will utilize Portsmouth data center. Right. Again, question is about Arm next, especially Arm chip. I'm sure that you started or launched the business of Arm Made or Arm developed a business and from 2026, 2027, 2028, $2 billion of demand is expected. We heard in your announcement or earnings results. How probable it is or are there any upside? I mean, how confident are you about the future demand in the next three years? Jason, you may want to answer.

Speaker #1: Next question is about ARM. Just to clarify: so as a project, is Neo SoftBank Neo or Neo Cloud not a Portsmouth project? So it doesn't necessarily mean this business will utilize the Portsmouth data center, right?

Speaker #1: Again question is about ARM next. Especially ARM chip. I'm sure that you started or launched the business of ARM made or ARM developed a business and from 26 27 28 2 billion dollars of demand is expected we heard in your announcement or earning results so how probable it is or are there any upside I mean how confidence are you how confident are you about the future demand in the next three years Jason you may want to answer.

Speaker #3: Yes. So, with the ARM AGI CPU, we did say initially that it starts shipping in Q4 of this fiscal year. Then, the combination of this fiscal year and next year, we said initially when we announced the product back in March that there'd be roughly $1 billion in revenue.

Jason Child: Yes. With Arm AGI CPU, we did say initially that it starts shipping in Q4 of this fiscal year. The combination of this fiscal year and next year, we said initially when we announced the product back in March that there'd be roughly $1 billion in revenue. Last quarter, actually two quarters ago, we said that demand after we announced it, had already expanded to nearly $2 billion and this most recent quarter, so last week, we said that it's now we have orders for more than $2 billion. We have not updated our guidance on what the revenue will be, because we are still working through the supply chain constraints, primarily around wafer capacity. There are some other constraints as well.

Speaker #3: Last quarter actually two quarters ago we said that demand after we announced it had already expanded to nearly 2 billion and then this most recent quarter so last week we said that it's now we have orders for more than 2 billion but we have not updated our guidance on what the revenue will be because we are still working through the supply chain constraints primarily around wafer capacity there are some other constraints as well.

Speaker #3: We have made progress on satisfying some of those constraints, but we're not ready to say exactly how much of that incremental $1 billion-plus that we will be able to ship until probably another quarter or two, as we get more clarity on both the pricing as well as the entire wafer capacity that we're going to be able to get access to.

Jason Child: We have made progress on satisfying some of those constraints, but we're not ready to say exactly how much of that incremental $1 billion plus that we will be able to ship, until probably another one or two quarters, as we get more clarity on both the pricing as well as the entire wafer capacity that we're going to be able to get access to. In terms of the overall demand beyond this year and next, which for us is fiscal 2027, 2028, and even going into our fiscal 2029, which would be SoftBank's fiscal 2028. We expect demand to double the year after that. That's because the order pipeline for AGI CPU continues to grow. As you heard Goto earlier, we added a couple of very large customers this quarter.

Speaker #3: In terms of the overall demand beyond this year next which for us is fiscal 27 28 and then even going into our fiscal 29 which we SoftBank's fiscal 28 we expect the demand to double the year after that and that's because the order pipeline for AGI CPU continues to grow and as you heard Goto earlier we added a couple very large customers this quarter we expect to be continuing to announce new customers so demand looks to be very much on track possibly even ahead of what we said back at our ARM everywhere analyst event.

Jason Child: Demand looks to be very much on track, possibly even ahead of what we said back at our Arm Everywhere analyst event.

Speaker #1: よろしいでしょうか。ありがとうございました。

Speaker #2: Thank you very much. Now I want to second from the front row. Miyajima from magazine FACT. This year AGM shareholders meeting MASA was talking his 15 years here that he would like to devote and Netsatebadu to 1000 trillion yen or that was very much impressed challenge that he announced at the shareholders meeting this year and that's actually the charm that the MASA has and Goto-san an Kimiwada-san you've been oh run along with them and once at the MASA becomes get older you also get older along with him.

Yoshimitsu Goto: Thank you very much. Now on to second from the front row. Miyajima from Magazine Fact. This year AGM shareholders' meeting, Masa was talking his 15 years hear that he would like to devote enough net asset value to JPY 1,000 trillion, or that was very much impressive challenge that he announced at the shareholders' meeting this year. That's actually the charm that Masa has. Goto-san, Kimiwada-san, you've been running along with them. Once Masa gets older, you also get older along with him. How did you think about what Masa said, that he's going to be working even more 15 years? Thank you very much for your question. At the shareholders' meeting, he mentioned about 15 years, and we thought about how he expressed, because we didn't expect that he was going to say in that way.

Speaker #2: But how did you think about what Masa said—that he's going to be working even more, for 15 years? Thank you very much for your question.

Speaker #2: There, at the shareholders meeting, he mentioned about 15 years, and we thought about how he expressed it, because we didn't expect that he was going to say it in that way. But we were also happy to hear how he was motivated as market cap is growing, and MASA, the founder himself and also CEO and also leading shareholder—that position has been maintained. How are we going to come up with a succession plan for such a company is always a question from the investors too. But at the same time, we’d like to see MASA show even greater performance, and as long as he can work, we would like to support what he needs to do.

Yoshimitsu Goto: We were also happy to hear how he motivated as market cap is growing. Masa, the founder himself, and also CEO, and also leading shareholder, that that position has maintained. How we are going to come up with a succession plan for such a company is always a question from the investors, too. We, at the same time, like to see Masa show the great performance even more, and he can work, so that we would like to support what he needs to do. Recently, there were patents on the generative AI becomes number one. 3,000 cases that Masa has applied. He mentioned about two, three years ago, and I believe that that's the kind of results out of those activities. Having everything applied, that can create the value in the future.

Speaker #2: And recently there were patents on generative AI, becoming number one with 3,000 cases that MASA has applied. He mentioned about two, three years ago, and I believe that that's the kind of result out of those activities.

Speaker #2: Having everything applied that can create the value in the future so that's one of the kind of a basic plan that you are doing but the MASA and Goto-san having applied such patent everywhere what kind of financial benefit do you think there are having 3000 patent how many months or how much money has have been spent which I don't know but that can be one base for the golden goose I'm not sure but how do you think about that.

Yoshimitsu Goto: That's one of the basic plans that you are doing. Masa and Goto-san, having applied such patents everywhere, what kind of financial benefit do you think there is? Having 3,000 patents, how many months or how much money has been spent? Which I don't know, but that can be one base for the golden goose. I'm not sure, but how do you think about that? Yes, patent application requires manpower and lots of the time and money as well. In the past few years, AI-related patents have been applied aggressively by Masa and his team, which we try to effectively address utilizing AI so that we became more quickly in terms of applying for the patents. Still some cost is required, but that can be the seeding phase for our future growth of the business.

Speaker #2: Yes, patent application requires manpower and lots of time and money as well. In the past few years, AI-related patents have been applied for aggressively by Masa and his team, which we try to effectively address utilizing AI so that we can move more quickly in terms of applying for patents. Still, some cost is required, but that can be the seeding phase for our future growth of the business. So, we actually encourage it, although there might be some costs that come along. But still, I think that it's good to challenge, and the patent is quite interesting because whether to apply or not to apply—there are some cases like that as well. So, that is something that we do have some experts and professionals on—patent from the legal team internally—so that we'll be able to address it, so that we don't really miss the opportunity.

Yoshimitsu Goto: We actually encourage, although there might be some cost come along, but still, I think that it's good to challenge. The patent is quite interesting because whether to be applied better or not applying is better, there are some cases like that as well. That is something that we do have some experts, professionals on patents from the legal team internally, so that we'll be able to address, so that we don't really miss the opportunity. What I'm hearing, because you have AIs with OpenAI, that allows you to provide the resources to do compared to other big tech players. They are in short in terms of resources and so on. Actually, you applied more patent applications than the others. Is that because of OpenAI investment?

Speaker #2: So what I'm hearing is that because you have AIs with OpenAI, that allows you to provide the resources to do, compared to other big tech players—they are, in short, in terms of resources and so on. But actually, you applied for more patent applications than the others. But is that because of OpenAI investment, or the structure, or the approach itself has been sometimes studied and analyzed by MASA, which is a great effort he's been making, I think.

Yoshimitsu Goto: Well, the structure or the approach itself has been sometimes studied and analyzed by Masa, which is a great effort he's making, I think.

Speaker #1: どうございます。

Speaker #2: Next, Bloomberg. I have two questions. First, about the Ohio data center project. According to media coverage, Nvidia guaranteed some $250 trillion worth so that OpenAI can lease up to 10 gigawatts or something.

[Company Representative] (SoftBank Group): Next.

Yoshimitsu Goto: MJ from Bloomberg. I have two questions. First, about Ohio Data Center project. According to a media coverage, NVIDIA guaranteed some $250 billion worth, so that OpenAI can lease up to 10 gigawatt or something. Can you make a comment on that? Right. A lot of stakeholders are talking to each other or negotiating each other, I cannot make any comment in detail. Once we are ready, we'll definitely share with you. Thank you. Second, about OpenAI. Competition of LLM is fierce and Chinese models are getting better and better. SoftBank invests in only OpenAI in terms of models. What's your view on OpenAI's valuation at this moment? Do you have any plan to invest in other LLM or other models than OpenAI? Thank you.

Speaker #2: Can you make a comment on that? Right. A lot of stakeholders are talking to each other or negotiating with each other, so I cannot make any comment in detail.

Speaker #2: So once we are ready we'll definitely share with you. Thank you. And second, about open AI. Competition of LLM is fierce and Chinese models are getting better and better and the SOFTBANK invest in only open AI in terms of models but what do you what's your view on open AI's evaluation at this moment and do you have any plan to invest in other LLM or other models than open AIs?

Speaker #2: Thank you. Open AI's valuation I think I should ask Kimiota-san too or Mark can you answer to the question?

Mark Agne: OpenAI's valuation.

Yoshimitsu Goto: OpenAI's valuation. I think I should ask Kimura-san too, or Mark, can you answer to the question?

Speaker #3: Thanks for the question. So you had two parts. The first part was on valuation I believe. We apply the same valuation model for open AI as we do for any of our holdings.

Mark Agne: Thanks for the question. You had two parts. The first part was on valuation, I believe. We apply the same valuation model for OpenAI as we do for any of our holdings, and it's three parts, basically. One of the main parts in a private holding is what the last round was at. The last round is where we're marked right now in OpenAI. In the absence of any significant news, we will stay marked there, but we're always following along with what's happening. Then you had questions about the model?

Speaker #3: And it's three parts basically. And one of those parts is and one of the main parts in a private holding is what the last round was at.

Speaker #3: The last round is where we're marked right now in OpenAI, and in the absence of any significant news, we will stay marked there. But we're always following along with what's happening.

Speaker #3: And then did you want to—you had questions about the model?

Speaker #2: Yeah. What about the possibility of investing in other LLM models given—

Yoshimitsu Goto: Yeah. What about the possibility of investing in other LLM models given?

Speaker #3: In the past, we have invested in various competitors, for example in rideshare, but in this case, we are investing with OpenAI because we consider them more of a partner than an investment.

Mark Agne: In the past, we have invested in various competitors, for example, in Rideshare. In this case, we are investing with OpenAI because we consider them more of a partner than an investment. We are planning to do more things with OpenAI, and we are very, very confident in their model. It's our choice to put all of our eggs in OpenAI as far as LLM is concerned, rather than spread it around.

Speaker #3: And so we are planning to do more things with OpenAI, and we are very, very confident in their model. So it's our choice to put all of our eggs in OpenAI as far as LLMs are concerned, rather than spread it around.

Speaker #2: Thank you. Thank you very much. Any other questions, please? Then, front row in the middle, please. Thank you. Kimura from NHK Broadcasting. A bit similar to the first question, you mentioned that you may consider slowing down the investment. And if you look at the US market, tech share prices have pretty much slowed down. What is your outlook for financing in the future?

Yoshimitsu Goto: Thank you.

Yoshimitsu Goto: Thank you very much. Any other questions, please? Then front row in the middle, please. Thank you. Kimura from NHK Broadcasting. A bit similar to the first question. You may mention that you may consider slowing down the investment. If you look at the US market, tech share price is pretty much slowed down. What is your outlook for the financing in the future?

Speaker #2: Well I said I may misled you earlier if you only looking at this number it looks like a little bit less investment so that's why I said that the slowed down looks like slowed down but actually we are not a company having an investment budget in advance intentionally we don't really have investment budget it's because we invest from a balance sheet as well and we try to maximize the performance of it sometimes if you have a budget but if you come to the end of the fiscal year if you still have unbudget available you need to consume everything then that you just pick the wrong investments which happens in many companies or if you finish all the budget amount but if you find a very promising companies but because budget constraints you cannot really invest that kind of stupid situation happens always for the many companies as well so if you have a good opportunity you want to invest that so that's why that we don't have a budget for the investment but when it comes to financing coming back to your question financing market is not bad actually of course interest rate itself has been increasing in the past few years so there are cost in interest but we have certain level of the investment yield and challenge to that then that the interest cost can be acceptable to some extent but when it comes to the size of the financing globally I think it's quite activated so issuer and investor demand and supply balance wise I believe both are quite positive about the financing and how you going to use that money for is it investment in for the real business in the past 40 years we have experienced from the bubble situation I think that the current situation is not really the same it's not really the bubble because we do have a use of proceeds and financing itself for the needs I believe is going to be no problem for us and our financing capability wise if you look at our balance of the assets as we have about 60 trillion close level of the net asset value after the debt so corporate credit capacity wise we believe that we are in a very strong position from that sense thank you.

Yoshimitsu Goto: Well, I may have misled you earlier. If you're only looking at this number, it looks like a little bit less investment. That's why I said that it looks like it slowed down, but actually we are not a company having an investment budget in advance. Intentionally, we don't really have investment budget. It's because we invest from our balance sheet as well, and we try to maximize the performance of it. Sometimes if you have a budget, but if you come to the end of the fiscal year, if you still have any budget available, you need to consume everything then that you just pick the wrong investments, which happens in many companies. If you finish all the budget amount, but if you find very progressing companies, but because budget constraints, you cannot really invest.

Yoshimitsu Goto: That kind of stupid situation happens always for the many companies as well. If you have a good opportunity, you want to invest. That's why that we don't have a budget for the investment. When it comes to financing, coming back to your question, financing market is not bad, actually. Of course, the interest rate itself has been increasing in the past few years, so there are costs in interest. We have certain level of the investment yield and challenge to that, then that the interest cost can be acceptable to some extent. When it comes to the size of the financing globally, I think it's quite activated for issuer and investor demand and supply balance-wise. I believe both are quite positive about the financing. How you're going to use that money for, is it investment in for the real business?

Yoshimitsu Goto: In the past 40 years, we have experienced from the bubble situation. I think that the current situation is not really the same. It's not really the bubble because we do have a use of proceeds in the financing itself for the needs, I believe is going to be no problem for us. Our financing capability-wise, if you look at our balance of the assets As we have about 60 trillion close level of the net asset value after the debt. Corporate credit capacity-wise, we believe that we are in a very strong position from that sense. Thank you. Are there any more questions on the floor? Yagi from Nihon Keizai Shimbun Paper, Nikkei. If you could let me know LTV as of 5 August. As of 5 August of LTV, we don't present in that way.

Speaker #2: Are there any more questions on the floor? Yagi from Nihon Keizai Shinbun. If you could let me know the LTV as of August 5th.

Speaker #2: As of August 5th, LTV is not something we present in that way. We have a rough idea, but I want to refrain from commenting on that.

Yoshimitsu Goto: We have a rough idea, but I want to refrain from commenting on that. You can imagine as of end of June, net asset value was JPY 72 trillion or something. Based on that, we calculate loan-to-value. If NAV is JPY 58 trillion, then NAV might be wide on the sense end of June, but still in the range of our safety operation. Thank you. Second question is about your data center plan and its progress. The Ohio 10 GW that you announced in March that is. Since the capacity is that big, I assume you build multiple buildings. The first building, do you know when the first building will be completed? Again, I assume that there are multiple off-takers that are interested in the project. Again, are you confident in terms of the demand?

Speaker #2: But you can imagine, as of end of June, net asset value was ¥72 trillion or something. And based on that, we calculate loan-to-value, and if NAV is ¥58 trillion, then NAV might be wide on the sense at the end of June.

Yoshimitsu Goto: The start of the building, or the building will get started in 2026, as I mentioned earlier. The overall schedule is something that we cannot share with you now. Again, once we are ready to share, we will definitely do that. About off-takers, again, we are closely communicating with off-takers, and we are confident in the demands, and we want to make sure that we will find the best solution. Thank you very much. Any other questions, please? We would like to go on to the questions from online participants. To avoid audio feedback or looping, we kindly ask that anyone asking question refrain from connecting to any live streams other than the Zoom webinar. Once again, if you have a question, please click raise hand button and wait until you are called on. If you are joining a Japanese Zoom, please ask your questions in Japanese.

Yoshimitsu Goto: I would like to ask Mr. Araka from IT Media. Araka from IT Media, can you hear me okay? Yes, please go ahead.

[Company Representative] (IT Media): Thank you. Gain on investment is mainly coming from Intel you said, which was quite interesting to hear. Any comments about the business development in Intel, or what is your expectation for the future of Intel?

Yoshimitsu Goto: That was a positive contribution to your investment gain, right? Intel. In the past three months, semiconductor names were actually surging. Intel was one of them, that the April to June quarter, their share price was dramatically increasing, which was quite a positive surprise for us. That actually contributed to our investment gain.

[Company Representative] (IT Media): Any expectation for the future of Intel?

Yoshimitsu Goto: Of course. Although it's quite volatile, but as an investment company, we hope that their value can increase more.

[Company Representative] (IT Media): Thank you. Thank you very much.

Yoshimitsu Goto: That's all for Q&A session. Thank you very much. This concludes the SoftBank Group Corp. earning results announcement for the Q1 of the fiscal year ending March 2027. The video footage of this meeting will be distributed on demand from our corporate website. Thank you once again for joining the SoftBank Group Corp. earning results announcement for the fiscal year 2026 Q1. Thank you.