Q1 2026 Softbank Corp Earnings Call

August 6, 2026

Speaker #1: Thank you very much for waiting, everyone. Now we would like to start the SoftBank Group Q1 earnings results announcement for the fiscal year ending March 2027.

Kazuko Kimiwada: Thank you very much for waiting, everyone. Now we would like to start the SoftBank Group Corp earnings result announcement for the 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. Now I would like to invite Yoshimitsu Goto to present 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 left, we have Yoshimitsu Goto, Board Director and CFO. Kazuko Kimiwada, Corporate Officer, Senior Vice President and CEO.

Speaker #1: Mark Agni, Executive Managing Partner at 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.

Yoshimitsu Goto: 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: 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, LY Corporation, and Fukuoka SoftBank Hawks will donate. 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, as well as 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 investment portfolio valued by the market is basically reflecting to 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—this interest-bearing debt—gives you a net asset value of ¥72.3 trillion.

Yoshimitsu Goto: As a result, at 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 trillion. Actually, if you see the trend in the past, JPY 58.3 trillion 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: So 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.

Speaker #1: This is Rita Ralph's estimate, but on a pro forma basis, the latest information shows net asset value is about ¥58.3 trillion. So it is a fact that it has declined from ¥72.3 trillion, but actually, if you see the trend in the past, ¥58 trillion is already a great number to be achieved.

Speaker #1: So, I would like to also show this together with our history. So, this is a kind of the record that we've been experiencing. And also, this itself actually shows you how much potential we have for further growth in the future.

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 is pretty much equals to our business strategy. As an ASI 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: So as I mentioned, every quarter there are good times and bad times, but at the same time, we do not really become too happy or too sad about short-term fluctuations.

Speaker #1: 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 equals to our business strategy. So as an ASI platform provider, but do we need to do? So we always kind of think backwards once we set the target, and then that 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 the AI model.

Yoshimitsu Goto: Because 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, 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, they actually design the core and heart of all the chip, and they have a dominant market share for that. By having more and more chip to be shipped, then 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 those—develop those people or those companies. And by addressing AI infrastructure, that can also accelerate the growth of Arm. For example, 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, physical AI is going to be the very focused area that we pay very good attention to.

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 ASI 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 first quarter.

Speaker #1: This area is actually just the beginning, and there are not many companies making a profit. We don't really know who will be the winner in the future in this area either.

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

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

Speaker #1: And that's something that Masa is very much putting his effort into. And these are the financial highlights for the first quarter. First, ¥1.8 trillion investment gain.

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 the 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 first quarter. 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, but the investment gain actually increased dramatically compared to the previous fiscal year. Net income is another important number, JPY 347 billion.

Speaker #1: So this is increased by ¥1.3 trillion year over year. And the net income, ¥347 billion. Second, as I mentioned on a previous page, net asset value.

Speaker #1: 72.3 trillion yen—highest ever compared to past numbers. And third, for our own investment in OpenAI, we have invested 20 billion yen in this first quarter.

Speaker #1: Towards October, we have remainders of $10 billion, which is committed. And fourth, for the first quarter period, we have announced plans to develop a 5-gigawatt AI data center in France.

Speaker #1: This was one of the highlights of our quarter. Now, we would like to move on to consolidated results. You can see the numbers on each respective line.

Speaker #1: But the investment gain actually increased dramatically compared to the previous quarter—excuse me, the previous fiscal year. Also, net income is another important number: ¥347 billion.

Speaker #1: So I will explain to you the trend from the past, but there's something missing here, which is the net asset value. So I would like to also add once again that the net asset value is also an important KPI for our company.

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 US, 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.

Speaker #1: Investment gain or loss on the net income—how it has been developed. So for April to June, first quarter: ¥1.8 trillion. That is mainly due to, actually, Intel.

Speaker #1: Last year, we've been paying attention to the semiconductor business in the United States, and we invested in Intel as a result. In the first quarter, it has been making quite a good increase.

Speaker #1: And also, ByteDance, which is invested in by the Vision Fund, saw an increase in fair value. This was another contributor to the investment gains for the quarter.

Yoshimitsu Goto: One more important indicator from the financial point of view is, as I mentioned, net asset value, once again, end of June JPY 72.3 trillion. Compared to a quarter before, that has increased dramatically. Loan to value to measure your safeness. 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, so we may need to invest more probably. That's how we believe being tightened, the loan to value. Cash position, JPY 3.5 trillion back in the end of March, has decreased a little bit to JPY 2.3 trillion, 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.

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, it was ¥72.3 trillion.

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, being kind of tightened, the loan to value. And the cash position—3.5 trillion at the end of March—has decreased a little bit to 2.3 trillion.

Speaker #1: But because this is due to the redemptions for the maturity of the bonds and also for some investment activities. But still, it does 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 its highest ever: ¥72.3 trillion. Loan to value—if you look at the trend from the past, as a financial policy, we have 25% as one threshold.

Yoshimitsu Goto: As you can see, highest ever, JPY 72.3 trillion. Loan to value. 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, 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 safeness of our business using loan to value. Why 25%? You may ask, it's because we do need to see some kind of threshold, where do we think that the safety level are there?

Speaker #1: But at the same time, I would also like to emphasize that 25% itself is already safe enough, but we are making 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 it 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 will be the safe level.

Yoshimitsu Goto: Of course, the financial people may understand well about the loan to value, how much will be the safe level for the public to understand. Even that the market can go volatile, as long as we keep this level, we'll be able to keep a company as a safe level. Cash position. A little bit of decrease I mentioned earlier, in our financial policy, our criteria is the maintaining a cash position above two years worth of bond redemption. Over two years, we expecting JPY 1.52 trillion for the bond redemption so that our cash position covers more than enough. Let me talk about Arm, one of the most important companies to us. Revenue. In the first quarter, they hit the highest record, posting JPY 1.3 billion. It increased 22% year on year. Amazing result. Fully diluted earnings per share.

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.

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: Over the next two years, we expect ¥1.5 trillion in bond redemptions, so our cash position is more than sufficient to cover that.

Speaker #2: So, about ARM, one of the most important companies to us. Revenue in the first quarter hit a record high, posting $1.3 billion. It increased 22% year on year.

Speaker #2: Amazing result. Fully diluted earnings per share hit a record high in the first quarter. It increased 29% year on year, reflecting great performance.

Yoshimitsu Goto: They hit the record high as the first quarter. It increased 29% year on year. Again, great performance. Guidance. For revenue, they have a range, the midpoint is JPY 1.38 billion for the second quarter. Guidance for EPS, JPY 0.47 midpoint. Compared to analyst consensus as of Arm's earnings announcement, both are higher. I think that's 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's been growing since 2019. Many hyperscalers have adopted Arm-based CPU, Cobalt and others, 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. Arm IPO-based CPU chips have been used by about 50% of leading hyperscalers, like you can see on the slide.

Speaker #2: For revenue, they have a range, but the midpoint is $1.38 billion for the second quarter. Guidance for EPS is $0.47 at the midpoint. Compared to analyst consensus as of ARM's earnings announcement, both are higher.

Speaker #2: So I think that that's really convincing and something you agree on, looking at ARM's performance. ARM-based CPU cores for data centers are growing.

Speaker #2: As you know, it's been growing since 2019. Many hyperscalers have adopted ARM-based CPUs, cobalt, and others. And Google. Especially, it grew significantly in the last 12 months, which should have a positive impact on ARM's future going forward.

Speaker #2: Again, many tech companies have adopted ARM's products. ARM IPO-based CPU chips have been used by about 50% of the leading hyperscalers, as you can see on the slide.

Yoshimitsu Goto: Graviton, Axion, Cobalt, and Grace

Speaker #2: Like Graviton, Axion, Cobalt, and Grace—they help us to raise Arm's brand value and recognition. As you know, Arm has been providing chip designs since the beginning.

Yoshimitsu Goto: They help us to raise Arm's brand value and recognition. As you know, Arm keep providing chip design since the beginning, but also 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. 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's perspective, or in fact, agentic AI goes into not only cloud but also in varieties of devices.

Speaker #2: But also, 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, helped save up to $10 billion in CAPEX.

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

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 into not only the cloud, but also into a variety of devices.

Yoshimitsu Goto: 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. That commitment was to invest JPY 30 billion this year, and of them, JPY 20 billion were executed, and the remaining JPY 10 billion investment will bring total investment to JPY 64.6 billion and ownership to 13%. OpenAI's GPT is a base to offer a variety of products for consumers. As you are familiar with, ChatGPT is there, and for business users, especially for software engineers, Codex is offered, which we focused on, and they focused on selling Codex. On top of that, ChatGPT Enterprise was released recently. AI model evolves, and the product performance goes up accordingly.

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

Speaker #2: Now, as we mentioned in the last earnings results announcement, we made a commitment in March, and that commitment was to invest $30 billion this year, of which $20 billion has already been executed.

Speaker #2: 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.

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

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

Yoshimitsu Goto: In 2022, GPT-3.5 was released as what we know as ChatGPT. GPT have 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, 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. 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.

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.

Speaker #2: Talking about GPT-5.6, which is the latest revision—so from experts’ perspectives, 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.

Yoshimitsu Goto: If you take a look at on the right-hand side, compared to other AIs, OpenAI 5.64 costs far less. High-performing model with lower cost is how the GPT-5.6 is seen by professionals. I'm 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 software engineers has been growing significantly. In December 2025, weekly active users were 0.4 million, and in July, 10 million. It grew 24 times in just seven months. On top of Codex, ChatGPT Work was released for business persons. 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.

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'm a finance guy, so I cannot answer any professional or expert questions.

Speaker #2: But this is as much as I can tell you, generally. Codex for software engineers has been growing significantly. 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, again, weekly active users grew 25 times in seven months.

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.

Yoshimitsu Goto: 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 talking about PaaS or patching-as-a-service. In July, last month actually, SB OAI Japan, or 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. 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 a great example. This PaaS will be rolled out to 3,000 companies in Japan.

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 past or patching as a service.

Speaker #2: In July—last month, actually—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 to raise their corporate value.

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.

Yoshimitsu Goto: 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 US, and also, we have a project in France as well, which is announced this quarter. For US, Ohio and Texas state. 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.

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. The AI data center now is in the United States.

Speaker #2: And also, we have a project in France as well, which is announced this quarter. For the United States, in Ohio and Texas state. In France, all of France—specifically the northern France area—is actually the place we are addressing for our project.

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 the 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.

Yoshimitsu Goto: 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, Boulogne, Bosco, those are the first site that we will be addressing. First gigawatt Bosco 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: More specifically, Dunkirk, Bushan, Bosco, those are the first site that we will be addressing. First gigawatt Bosco AI data center is actually designated as fast track project by French government.

Speaker #2: So we start, we have secured one gigawatt of power and also accelerated grid connection is actually addressed. In the United States, if we try to address the data center project or if we try to do 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 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.

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 actually can provide power for 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 the data center project approach is different compared to the rest of the world.

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

Yoshimitsu Goto: 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. We are currently in discussion towards execution of a lease agreement, and we are coming to the final stage of such discussion. At the same time, we are expecting construction starting in 2026.

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 Schneider are going to set up their supply chain for the power module.

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

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

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.

Yoshimitsu Goto: Well, another project that we've been working on in United States, we are in Midland County, Texas, AI Data Center, already have a lease agreement placed with OpenAI, 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, they've been expanding their business domain to data center. 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 a total number of project amount by SoftBank Energy, is about $19 billion.

Speaker #2: AI data center. And already have an 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 the United States, and they've been expanding their business domain to data centers.

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

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

Yoshimitsu Goto: Power generation and the storage capacity under operations or under construction is about 5 gigawatt. 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. neocloud service, which was also presented at SoftBank Corp's earnings results announcement a few days ago. Our domestic mobile operator and SoftBank Group holding company, together with them, we are launching the project for the neocloud service in the United States. This neocloud business will be providing AI compute via the cloud.

Speaker #2: So they do have quite a sizable business and presence in the United States. In May this year, they have already filed confidentially.

Speaker #2: Filing for the Form S-1, 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.

Speaker #2: So, this Neo Cloud business will be providing AI compute via the cloud. So, powered data AI data centers, 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.

Yoshimitsu Goto: Power data, 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 is 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 first quarter period. Vision Fund 1 on your left-hand side. Mainly due to the increase in the fair value of ByteDance, this led to the Vision Fund increase of the gain on investments by JPY 2.3 billion.

Speaker #2: We believe this is also going to be another important business model for the future. Now, moving on to 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 byte downs give these led to the vision fund increase of the gain on investments by 2.3 billion.

Yoshimitsu Goto: 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, and 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. We have already exited JPY 73 billion. Also, the investment monetization. Those green bars that we have just mentioned in the previous page.

Speaker #2: And on your right-hand side, Vision Fund Two and the thumb and others are a little bit of a negative. This is because of PayPay, which went public this spring.

Speaker #2: And the share price of PayPay was a little bit weak this quarter. Actually, that was the main reason. But since then, PayPay is actually recovering.

Speaker #2: Its share price, and 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. And on your left, Vision Fund One: $114 billion.

Speaker #2: Cumulative investment return is largely exceeding cumulative investment cost. The green portion represents the exit case. Actually, we have already exited ¥730 billion.

Speaker #2: Also the investment monetization so those green bars that we have just mentioned in the previous page. In every quarter especially in the recent quarters about 1.5 billion in average has been monetized.

Yoshimitsu Goto: In every quarter, especially in the recent quarters, about JPY 1.5 billion in average has been monetized and made its return. In the past 2 years, main divestments were on your right-hand side, Coupang, Royband, 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. 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 has an expertise in the monetization so far.

Speaker #2: And made its return in the past two years. The main divestments were on your right-hand side: Coupang, Rybond, Food Truck 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 with 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 exit from the portfolio, and we would like to execute the good options available. And we have a new CFO for the Vision Fund, Mark Company.

Speaker #2: Especially have an expertise in the monetization so far. Public listing 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: 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 operate a global hospitality platform. They have rebranded under the name of Prism, and was already made a filing for public offering. They support accommodation partners with demand generation, dynamic pricing, revenue management, and day-to-day operation. They themselves have actually been managing the hotels, but now they are very much focused on the platform, so they have clearer vision and direction of the business models now.

Speaker #2: So, compared to the end of March, the late-stage portfolio's total fair value itself increased by $15 billion. And let me pick up some of the portfolio companies which are in the late stage.

Speaker #2: Prism, formerly known as Oyo—you may have seen them in some Japanese markets as well. They have been operating a global hospitality platform. They have rebranded under the name Prism and have already made a filing for a public offering.

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

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

Yoshimitsu Goto: They are also a good promising company. The Klook, they offer us an online platform for travelers to discover book tours, activities, transportation, hotels, 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. 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.

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

Speaker #2: And one note on the pay pays movements so we would like to use some slides to share with you so this was announced in June 4th this year which was to make TND financial life a subsidiary of pay pay 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 have. By having a life insurance business based on the life stage of each user, we will be able to provide very good comprehensive services. We've been looking into this agenda, and at this time, it has produced good results.

Yoshimitsu Goto: By having a life insurance business. Based on the life stage of each user, we'll be able to provide very good comprehensive services. We've been looking into this agenda, this time it made good results. Another one is the capital and the business alliance with Seven & 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 Seven & i Holdings, we are starting the capital alliance, especially when it comes to PayPay, it is a good achievement here, because there are about 22 million customers per day visiting 7-Eleven stores, 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.

Speaker #2: Another one is the capital and the business alliance with seven and eye 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 here.

Speaker #2: Because there are about 200 million customers per day visiting seven eleven stores and 30 million transaction per day made by pay pay. 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.

Yoshimitsu Goto: Number of the store-wise, they have 22,000 stores in 7-Eleven, PayPay has a 75 million user base already. That can be a great value generator for each other.

Speaker #2: The. Can be a great value generator for each other.

Yoshimitsu Goto: Now let me talk about physical AI. Commercial deployment is accelerating across the portfolio companies, including companies under the umbrella of SoftBank Robotics Group. 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. 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, by end of this year, we should be able to finish approval process and the completed acquisition.

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

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 that are only a handful of our portfolio companies should play a key roles in respective area and the massage is expecting a lot.

Speaker #1: And spending a lot of time in physical AI sector. 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.

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, 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 and 2026, currently, we are kind of controlling investment amount so far, but the biggest investment we have done so far is in OpenAI. Black indicates already executed, so total $20 billion already 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 M&A last year. We committed $18.5 billion.

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

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 amount 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 already 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's today as we speak, $10 billion of OpenAI, and we arranged LBO financing Max at $1.8 billion ahead of acquisition of ABB Robotics. Thanks to great support from globally known big banks, we were able to arrange those financing. We really appreciate their continuous support. About the 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. As I have explained, 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 question. Thank you.

Speaker #1: $10 billion of OpenAI, and we arranged LDO financing, max $1.8 billion, ahead of the acquisition of ABB's robotics business. So, thanks to great support from globally known big banks, we were able to arrange this financing.

Speaker #1: We really appreciate their continued support. About the 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.

Speaker #1: Thank you.

Kazuko Kimiwada: 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 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. If you are joining the Japanese Zoom, please ask a question in Japanese. Thank you very much for your understanding.

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 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.

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.

Kazuko Kimiwada: 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. 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 The Nikkei. I have two questions, please. First, after July, US tech major player has been criticized with the excess investment in data center. Would you keep your amount investing in data center, or are you going to change your direction in investment in data center business?

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.

Kazuko Kimiwada: Thank you. My name is Suga from The Nikkei. I have two questions, please. First, after July, US tech major player has been criticized with the excess investment in data center. Would you keep your amount investing in data center, or are you going to change your direction in investment in data center business?

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.

Yoshimitsu Goto: 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. 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 investments. We would like to be the part of it, too.

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

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

Speaker #2: And that is why these projects are announced one after another, which I believe is a healthy situation. Without securing computing power technology, 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 a part of it too. Thank you.

[Company Representative] (Nikkei Newspaper): Thank you. My second question is about OpenAI IPO timing. I would like to ask you, there is some media coverage talking about postponing to next year. How do you see about the timing? If there is any postponement, what kind of impact to your business?

Yoshimitsu Goto: Thank you. My second question is about OpenAI IPO timing. I would like to ask you, there is some media coverage talking about postponing to next year. How do you see about the timing? If there is any postponement, what kind of impact to your business?

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

Yoshimitsu Goto: Well, same answer back to you, actually. 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.

Speaker #2: Well, same answer back to you, actually. We are not a company going public, so I have no comment, and 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: Thank you. Next question.

Yoshimitsu Goto: Thank you.

Speaker #1: Thank you. Next question. My name is Marie from Diamond Magazine. I have two questions. First SB Neo so bank coop is engaged so what's the purpose or why I wonder if you want to build expertise in Neo cloud so again a size of Neo cloud you mentioned 10 gigawatt and Ohio and Texas are talking about 10 gigawatt is it just by accident or what so SB Neo kind of equal to Ohio or Texas and also no recourse financing you mentioned and 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 that are Neo cloud sorry about that.

Kazuko Kimiwada: Next question.

Murray: My name is Murray 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, size of a Neo Cloud, you mentioned a 10 gigawatts. Ohio and Texas are talking about 10 gigawatts. Is it just by accident or what? SB Neo, kind of equal to Ohio or Texas, and 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. Thank you. Neo Cloud business itself is led by SoftBank Corp. Details, I would encourage you to ask them directly. You are talking about 10 gigawatts. I think you are referring to Portsmouth project.

Kazuko Kimiwada: My name is Murray 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, size of a Neo Cloud, you mentioned a 10 gigawatts. Ohio and Texas are talking about 10 gigawatts. Is it just by accident or what? SB Neo, kind of equal to Ohio or Texas, and 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. Thank you.

Speaker #1: Thank you. The 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 10G, I think you...

Yoshimitsu Goto: Neo Cloud business itself is led by SoftBank Corp. Details, I would encourage you to ask them directly. You are talking about 10 gigawatts. I think you are referring to Portsmouth project.

Speaker #1: Referring to Portmouth project and 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 a one of the typical examples of project financing and of taker of project finance depends on the credit of of takers so from SB's perspective it's a non recourse financing so again I suggest you to talk to SB or SoftBank for more details so 10 gigawatt is a start of a nuclear service they mentioned in announcement of course they want to do 10 gigawatt but they want to build a demands as they expand the business so Neo cloud data center is based on assumption of Texas or Portmouth data centers it's still being finalized which project or how much they get involved in next question is about ARM just to clarify so as a project is Neo SoftBank Neo or Neo cloud is not a Portmouth project so it doesn't necessarily mean this business will utilize Portmouth 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 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

Yoshimitsu Goto: 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. 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 cloud service they mentioned in announcement. Of course, they want to do 10 gigawatts, but they want to build demands as they expand the business. 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.

Yoshimitsu Goto: 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 earning 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.

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. This most recent quarter, last week, we said that 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: Yes. So with ARM AGI CPU we did say initially that for it starts shipping in Q4 of this fiscal year and 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 dollars in in revenue 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 we have made progress on satisfying some of those constraints but we're not ready to say exactly how much of that incremental billion dollars 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 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 would be 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: We have made progress on satisfying some of those constraints, but we're not ready to say exactly how much of that incremental JPY 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. In terms of the overall demand beyond this year, next, which for us is fiscal 2027, 2028, and then 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-san earlier, we added a couple of very large customers this quarter. We expect to be continuing to announce new customers.

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

Miyajima: 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 here that he would like to devote and net asset value to JPY 1,000 trillion, or that was very much impressed 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 run along with them, and 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. There at the shareholders meeting, he mentioned about 15 years, and we thought about how he expressed, because we didn't expect that he going to say in that way.

Kazuko Kimiwada: Thank you very much. Now on to second from the front row.

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 to thousand 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 Kimiwada-san you've been run along with them and once at the MASA becomes get older you also get older along with him but 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 there at the shareholders meeting he mentioned about 15 years and we thought about how he expressed because we didn't expect that he going to say in that way but we were also happy to hear how he motivated as market cap is growing and MASA the founder himself and also CEO and also leading shareholder that that's position has maintained and how are we going to come up with a succession plan for such an company is always a question from the investors too and we but 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 and recently there were patent on the generative AI becomes number one 3000 cases that the MASA has applied he mentioned about two three years ago and I believe that that's the kind of a results out of those activities 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 yes patent application requires manpower and lots of the time and money as well in the past few years AI related patent has 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 patent still some cost required but that can be the seeding phase for our future growth of the business so we actually encourage although there might be some cost come along but still I think that it's good to challenge and the patent is quite interesting because whether to be applied better or not applying is better there are some cases like that as well so that is something that we do have some experts professionals on patent from the legal team internally so that we'll be able to address so that we don't really miss the opportunity so what I'm hearing because you have AIs with open AI that's 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 more patent application than the others but is that because of open AI 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

Kazuko Kimiwada: Miyajima from Magazine fact. This year AGM shareholders meeting, Masa was talking his 15 years here that he would like to devote and net asset value to JPY 1,000 trillion, or that was very much impressed 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 run along with them, and 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?

Yoshimitsu Goto: Thank you very much for your question. There at the shareholders meeting, he mentioned about 15 years, and we thought about how he expressed, because we didn't expect that he going to say in that way.

Yoshimitsu Goto: We were also happy to hear how he motivated as market cap is growing, and Masa, the founder himself, and also CEO, and also leading shareholder, that position has maintained. How we going to come up with a succession plan for such a company is always a question from the investors, too. We, but 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 patent on the generative AI becomes number 1. 3,000 cases that Masa has applied. He mentioned about 2, 3 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. That's one of the basic plan that you are doing.

Yoshimitsu Goto: Masa and Goto-san have been applying such patents everywhere. What kind of financial benefit do you think there are? 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 patent has 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 patent. Some cost is required, but that can be the seeding phase for our future growth of the business. We actually encourage, although there might be some cost come along. Still, I think that it's good to challenge.

Yoshimitsu Goto: 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 patent 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 application than the others. Is that because of OpenAI investment? 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: ありがとうございます

Yoshimitsu Goto: Next.

Kazuko Kimiwada: Next.

Speaker #2: Next MJ from Bloomberg I have two questions first about Ohio Data Center project according to a media coverage Nvidia guaranteed some 250 trillion dollars worth so that open AI can lease up to 10 gigawatt or something can you make a comment on that right a lot of stakeholders are talking each other or negotiating each other so I cannot make any comment in detail 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 thank you open AI's valuation I think I should ask Kimyoda-san too or Mark can you answer to the question

[Analyst] (Bloomberg): MJ from Bloomberg. I have two questions. First, about Ohio data center project. According to a media coverage, NVIDIA guaranteed some JPY 250 trillion worth, so that OpenAI can lease up to 10 gigawatts or something. Can you make a comment on that?

[Journalist] (Bloomberg): MJ from Bloomberg. I have two questions. First, about Ohio data center project. According to a media coverage, NVIDIA guaranteed some JPY 250 trillion worth, so that OpenAI can lease up to 10 gigawatts or something. Can you make a comment on that?

Yoshimitsu Goto: Right. A lot of stakeholders are talking each other or negotiating each other, I cannot make any comment in detail. Once we are ready, we'll definitely share with you.

[Analyst] (Bloomberg): 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 is your view on OpenAI's valuation at this moment? Do you have any plan to invest in other LLM or other models than OpenAI's? Thank you.

[Journalist] (Bloomberg): 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 is your view on OpenAI's valuation at this moment? Do you have any plan to invest in other LLM or other models than OpenAI's? Thank you.

Yoshimitsu Goto: OpenAI's valuation. I think I should ask Miyoda-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 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 the last round is where we're marked right now in open AI and in the absence of any significant news we will stay marked there but we're always following along with what's happening and then did you want to you had questions about the model

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. It is 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 are marked right now in OpenAI. In the absence of any significant news, we will stay marked there, but we are always following along with what is happening. Then you had questions about the model?

[Analyst] (Bloomberg): Yeah. What about the possibility of investing in other LLM models given-

[Journalist] (Bloomberg): Yeah. What about the possibility of investing in other LLM models given-

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

Speaker #3: So we in the past we have invested in various competitors for example in rideshare but in this case we are investing with open AI because we consider them more of a partner than an investment and so we are planning to do more things with open AI and we are very very confident in their model so it's our it's our choice to to put all of our eggs in open AI as far as LLMs concerned rather than spread it around

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 #2: Thank you ありがとうございます

[Analyst] (Bloomberg): Thank you.

[Journalist] (Bloomberg): Thank you.

Kazuko Kimiwada: Thank you very much. Any other questions, please? 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? 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 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.

Kazuko Kimiwada: Thank you very much. Any other questions, please? Front row in the middle, please.

Speaker #1: ありがとうございました

Speaker #2: Thank you very much any other questions please then front row in the middle please thank you Kimyoda from NHK Broadcasting a bit similar to the first question you may mention that you may consider slowing down the investment and if you look at the US market tech share price is pretty much slowed down but what is your outlook for the financing in the future 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 they 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 an budget available you need to consume everything then that you just speak 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 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 the 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 in the 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

[Journalist] (NHK Broadcasting): 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?

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 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.

Yoshimitsu Goto: 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 promising companies, but because budget constraints, you cannot really invest. That kind of stupid situation happens always for the many companies as well. If you have a good opportunity, you want to invest that. 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.

Yoshimitsu Goto: There are costs 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. When it comes to the size of the financing globally, I think it is quite activated for issuer and investor demand and supply balance wise, I believe both are quite positive about the financing. How you are going to use that money for

Yoshimitsu Goto: Is it the investment 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 is 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 JPY 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.

Speaker #1: ありました

Kazuko Kimiwada: Thank you. Are there any more questions on the floor? Yagi from Nihon Keizai Shimbun paper, Nikkei.

Kazuko Kimiwada: Thank you. Are there any more questions on the floor?

Speaker #2: Thank you are there any more questions on the floor Yagi from Nihon Keizai Shinbun Paper Nikkei if you could let me know LTV as of August 5th as of August 5th of LTV we don't present in that way we have a rough idea but I want to refrain from commenting on that 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 80 sorry 58 trillion then a 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's 10 gigawatt that you announced in March that is since the capacity is that big I assume you build multiple buildings so the first building do you know when the first building will be completed and again I assume that there are multiple obstacles that are interested in the project so again are you confident in terms of the demand start of the building also building will get started in 2026 as I mentioned earlier but overall schedule is something that we cannot share with you now but again once we are ready to share we'll definitely do that about obstacles again we are closely communicating with obstacles 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 then 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 now I would like to ask Mr. Araoka from IT Media Araoka from IT Media can you hear me okay yes please go ahead thank you so gain on investment is mainly coming from Intel you said which is quite interesting to hear so any comments about the business development in Intel or what is your expectation for the future of Intel if so that was a positive contribution to your investment gain right Intel in the past three months semiconductor names was actually surging and 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 and that actually contribute to our investment gain any expectation for the future of Intel of course although it's a quite volatile but as an investment company we hope that their value can increase more thank you thank you very much

[Journalist] (Nihon Keizai Shimbun): Yagi from Nihon Keizai Shimbun paper, Nikkei.

[Company Representative] (Nihon Keizai Shimbun): If you could let me know LTV as of 05 August. As of 05 August of LTV, we do not present in that way. 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 80 trillion, sorry, JPY 58 trillion, then NAV might be wide on since 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's 10 gigawatt 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?

[Journalist] (Nihon Keizai Shimbun): If you could let me know LTV as of 05 August. As of 05 August of LTV, we do not present in that way. 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 80 trillion, sorry, JPY 58 trillion, then NAV might be wide on since 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's 10 gigawatt 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?

Yoshimitsu Goto: I assume that there are multiple off-takers that are interested in the project. Are you confident in terms of the demand? 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. 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.

[Journalist] (Nihon Keizai Shimbun): I assume that there are multiple off-takers that are interested in the project. Are you confident in terms of the demand?

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. 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.

Kazuko Kimiwada: 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. Now, I would like to ask Mr. Araka from IT Media. Araka from IT Media, can you hear me okay? Yes, please go ahead. Thank you. Gain on investment is mainly coming from Intel you said, which is quite interesting to hear. Any comments about the business development in Intel, or what is your expectation for the future of Intel?

[Journalist] (ITmedia): Thank you. Gain on investment is mainly coming from Intel you said, which is 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 was 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 contribute to our investment gain.

Araka: Any expectation for the future of Intel?

[Journalist] (ITmedia): Any expectation for the future of Intel?

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

Kazuko Kimiwada: Thank you. Thank you very much. That is all for Q&A session.

[Journalist] (ITmedia): Thank you. Thank you very much.

Speaker #1: ありがとうございました

Kazuko Kimiwada: That is all for Q&A session.

Kazuko Kimiwada: Thank you very much. This concludes the SoftBank Group Corp earnings results announcement for 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 earnings results announcement for the fiscal year 2026 Q1. Thank you.

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