Sbi Holdings Inc Ord

Thank you very much for joining us today. Despite your tight schedule I understand that in addition to the audience in place there are about 130 30, the participants on the online. Despite the COVID-19, the pandemic, thank you very much for joining us today. And thank you very much for your support to our business. Without further ado, I would like to move on to the presentation of the financial results of the first nine months. As you can see, the 362,218,000,000 yen is the revenue, up 27%. Profit before income tax expense, 93,738,000,000 yen, up 44.8%. Profit for the period, 69,225,000,000. Profit attribute to owners of the company is 60,810,000,000. They are up 52.2% and 62.3% respectively. All of these numbers are record high. And the annualized ROE for the first nine months is 16.2%, again, record high. So this is the comparison with major face-to-face securities companies. SBI Holdings here using IFAS at 93,738,000,000 yen. This is the pre-tax income and ROE of 16.2%. And Nomura is going to make an announcement on February the 3rd. And Daiwa on a JGAB basis, 83,390,000,000 yen up 26.8%. ROE is 6.2%. And SMBC Nikko Securities. 77,880,000,000 yen or 108.5% with ROE of 8.3%. The SMBC Nikko Securities, the pre-tax profit... is 77,881,000,000 yen. So this is upper-to-upper comparison. The 21 years have passed since the establishment of our group, and we have finally reached this level of the profit. The question is whether the profit level is sustainable, is continuously growing or not. That's important. To know about that, let us look at the segment-wise numbers. The financial services business is growing significantly with 61.2% increase with 61,892,000,000 yen for pre-tax income. Asset management business, almost the same year on year, but still they are maintaining very high level. Biotechnology, healthcare and medical informatics business, still running in the red, but reducing the red numbers significantly. Here, the shareholder benefits, as you can see here, XRP and using other first products from which you can make your choice. So the more than 10 units or more, or more than one product. hundred shares or one unit or more. There's a difference here. And now factors behind the positive earnings and the measures taken to realize sustainable growth, starting with financial services business. So here again, For each line, from the revenue to all kinds of incomes, record highs. For all of them, especially for profit attributable to owners of the company, increased as much as 107.1%. This is on the JGAP basis. And as to the number of accounts... We are making double-digit increase at 11% from the end of the year ending in March 2009 and December 2020. The compound annual growth, 11%, and Nomura is at 1.5%, and that gap will be widened. Only in seven months after achieving 5 million, we achieved the 6 million number of accounts in November 2020. And already in December last year, we reached 6.3 million or 6.39 million. Let us look at the share. It's a very striking share. And for the sales of individual stock trading value, we have the share of 43.1%. And for the sales of individual margin trading value, SBI share is 45.2%. So it is increasing significantly. So on that backdrop, we will continue to be aggressive. we will not be satisfied with the current status. We will press forward with our measures. And among our measures, I would like to focus on the near securities or near securitization. So how are we going to realize that? In the U.S., Robin Hood said, has built a strong base of customers. Charles Schwab, the E-Trade, the Amelie Trade, they are making the situation where the deregulation happens. And sooner or later, it will happen in Japan as well. And if that's the mainstream of the era... We'd like to be the first to achieve it. And that is the only way to be the winner in the competition. That's my belief. So towards that goal, we are making utmost efforts. And we are making very steady growth or progress diversifying the sources of revenue. And when it comes to the domestic share, we are decreasing the dependence on the Japan stock. And for that, we have been engaged in some M&A activities. And we have achieved the numbers that we have just seen and the regulation of the commissions. And 500,000 number of accounts was achieved with the new mobile securities. And with that entity, we would like to deregulate the other commissions. And as to the wholesale business, we are focusing also on the upgrading. of the business and also the robo-advisor services or stock type business have been expanding and also the IFA, the independent financial advisor to grasp needs of face-to-face transactions has been upgraded and the commission, the revenue other than the online is on the increase as well. And I'm going to explain about all that. First, the diversification of revenue resources has lessened the dependence on domestic stock brokerage commission income from online trading. Our target was below 5%. And as of the third quarter, it went down to 17.7%. The third quarter was very good. The market was very good. And with a good market, of course, the commission increases, brokerage commission increases. And it's very natural to expect that the competition of commission in revenue increases. But as you can see here, it is declining to 14.9%. And the other in fiscal year 2020, the 21.4%. And then coming down to 14.9%. And that's the rate commission composition. And the targeting at 5%. doesn't mean that we would never make the commission zero before reaching 5%. Once we made a decision that we don't need to be concerned about this type of commission, then we might make the commission zero before we reach 5%. Now, the common stock trading, online trading, and other tradings, we have been diversifying the revenue sources. So this is SBI liquidity market, FX. Market was now with the SBI securities and SBI, the VC trade and SBI FX trade. have become subsidized. SBIBC trade is for the crypto asset. And the $36,593,000,000 is the total for the first nine months until the end of the first nine months of the year. and toward the end of the fiscal year, it will continue to increase. So the important message here is that we are seeing a very steady increase in making a decision whether the commission should be zero or not. We have to look at the trend of the numbers. Now FX, the business, SBI Liquidity Market and SBI FX Trade, they are the simple aggregate of the pre-tax of the other entities, 7,603,000,000 or up 78.4%. And that's for FX business, for crypto asset exchange business, 6,695,000,000 yen or up 83%. So we are We have been diversifying the revenue of sources, and those sources are growing. SBI liquidity market for FX trading. And we have 31 banks in this trading for the SBI liquidity market. And we can provide very competitive rates. and the financial institutions. For example, five, as many as five financial institutions from Korea are trading with us. And as to the number of accounts for FX trading, the 1.452 million and the deposit assets 284.7 billion yen. And this acquisition of B2C2, I'm very happy with this acquisition. We would like to, well, we have been increasing our stake. And in December 2020, we acquired 90% of the stake in the company. So B2C2 was good. I mean, it was good for B2C2 and it was good for us. It is a good example of win-win. The B2C2's monthly average transaction volume increased 6.5 times since 2019. And B2C2 develops business globally, including in the US, Europe, and Asia. So we aim at being a real global player. And for that purpose, B2C2 has become a very important component. To be honest with you, at the beginning, I was not sure I was worried a little bit. At the beginning, I had a rather negative thought about it. That's why we increased only gradually the stake in the entity. But now I'm very confident. I'm confident to say that it was a good buy. Now for B2C2, the operator, the crypto asset, the trading services, and we are going to start the CFT as well. and also the Crypt Asset Lending Service. Crypt asset-related businesses will continue to increase. We started from brokerage business. Therefore, as a comprehensive securities entity, we need to think about expanding the wholesale business. Fortunately, the SBI investment, 100% subsidiary of the group, exists for us. It's a venture capital. So investing in venture capital, And of course, those companies want to do IPO someday. And of course, when that happens, we expect them to use SBI securities for their IPOs. And with continuous monitoring, we know those companies very well. So we have a very good relationship with the companies that we invest. And so it's likely that we become always the lead manager. So starting with IPO, and then PO follows, and equity followed by bond transactions. So business wisdom is diversified as well. Underwriting business, has also been reached to a good level. And now we have the entity in Singapore and Hong Kong established. And M&A advisory business, which is closely related to the IPOs, and we have established financial institutional sales department as well. And so we have been building these elements. And here we have the period from April 2020 to December 2020. And 66 companies were listed during this period, among which SBI has been engaged in 61 of them. And we are actually the lead companies for 11 companies IPO'd. And for the POs, we had 13 POs underwriting the business, which is the increase of 2.9 times. And as the corporate bond underwriting business, including the utility bonds and the public bonds, they are also increasing. As to the Financial Institutional Sales Department, We have been working on regional revitalization, building relationships with the regional financial institutions, and building business as well. We had a broker business with 436 companies from July 2016 to December 2020, and the equity trading increased by 8%. It was 2.2 when the transaction volume for nine months fiscal year 2019 being the one. And investment trusts, 2.4, the transaction volume for nine months fiscal year 2019 being one. Some people say that what is the gap? benefit for doing business with the regional banks the reporters and the analysts some of them make such comments I have a very clear picture But it would be most convincing to show that picture to others and that my picture is being realized. And those who think that it is not expected, some reporters, some analysts did not expect it.

So if we are to benchmark in fiscal year 2018 Q3 as one, this fiscal year in Q3, the M&A advisory business went up by 3.1 times. We only have a little bit over 10 people, but we have increased headcount. When there's good companies available and we think that we can go ahead to acquire them, we are looking for opportunities both domestically and abroad to We believe this is an area that we can address, and it's an area I addressed during the Nomura Securities times that I served. So this is a great business for us. For SBI Securities. Thanks to NISA, we have been able to accumulate investment amounts. And also, the investment trust balance at the end of the quarter has been growing quite substantially as well. Also, for robo-advisors that generate stock commission, Wealthnavi went to market. But out of their total AUM, approximately 31% is accounted for by our SBI Securities as well as SBI Sumishi NetBank. That totaled $73.8 billion. So it's proof of how large our sales capabilities are. For IFA... the business. Like I mentioned earlier, we are focusing on this area too. And for Q3, compared to last year's Q3, we've been able to grow by 2.2 times. And for AUM, according to some reports, we were at 1.7 trillion compared to Rakuten's 0.6 trillion as of September. And foreign stocks have been booming and growing lately. DriveWealth is a company in the U.S., and we've invested in it. And by utilizing this entity, we would like to address the mobile arena as well. Of course, IT system issues are what we are currently working on, but it is a good company indeed. So we would like to implement this as soon as possible so that for foreign stocks, we can promote it even more. Furthermore, for property, the brokerage business for real estate, last year in October, we acquired a 35% stake in Ascot, and we turned it into an equity method affiliate. With this stake, we are now in the property business, and it has been a good foothold for us. So finance and real estate. From the customer's point of view, for those customers who receive financial services such as buying stocks or buying bonds, high net worth customers definitely own property as well. They buy real estate. To that end, we believe that this business can generate synergies. So for money managers in the U.S. when you visit them, Cash management, equity, bonds, as well as real estate are areas that they cover. So having all of these available for the first time, you are able to engage in true money management, engage in true asset management, that is. So as the first phase of our alliance, we have sold a real estate fund. SBI Securities and Money Plaza will be the main sellers of this fund. And for Japan Next, last year on October 1st, the TSC went down and Japan Next gained attention once again as an alternative market You never know when the TSC is going to go down again. And daily trading worth three trillion yen is going to be wiped out. And that is not an excuse. That should not happen. And we are trying to strive to become a global financial market if that's the case. The market should not fail or go down. So that's why we've been gaining attention in Japan Next and in various places. I have been talking about it. I've been talking to LDP members and their financial commissions and so forth. And we're going towards the direction of having Japan Next as an alternative market and legally. The 10% of TSE or one stock, if it exceeds 20%, it needs to turn into an exchange. There's all these rules that are nonsense, that are baseless. I don't know how they came up with these numbers. That's what's happening now. And this hasn't changed. I hope this can change as soon as possible. And that's why I'm taking action. By doing this, what's going to happen is institutional investors, although the system needs to change, the trading cost will come down substantially. Institutional investors, they are interested with money from the general public. So the performance of the general public will become better through institutional investors and from the broker's side. trading costs will become far cheaper. According to the estimate by Japan Next, SBI securities, by utilizing PTS compared to TSC, the trading costs can be reduced by 90%. And this can be returned back to investors. That is our way of thinking. So it needs to be investor-centric or customer-centric, and that's what we need to do. So this kind of mindset will enable investors to come with you. And from the fiduciary duty point of view as well, in the U.S., for example, there are several markets. And the most beneficial markets trade execution needs to take place, or else they will ask you, what are you doing? So you need to enable best execution. And that kind of legal as well as system-based transformation needs to happen. And if this does happen, we will be able to contribute to the new securities initiative. So for the customer base, we are trying to thoroughly expand the customer base and we are gaining good share. But we think that it is still insufficient. Like I mentioned earlier, our target is 50% market share. So in order to do that, we established SBI Neo Mobile Securities as well as Neo Trade Securities. And for each of the entities in their own territory or domain, they will have relevant customers. For example, in the case of SBI Neomobile Securities, their customer base will be first-time investors and relatively young people. And they will enable a service that will allow them to join their services easily. And the opposite of that is SBI Neotrade Securities that target day traders or people who do trades regularly. on a daily basis. Those are the target customers they're going after. So from the trader segment to the high-end segment, we basically would like to have a mechanism that covers a broad range of customers. So for Neo Mobile Securities, the other day in January, we accomplished half a million accounts, and we have continued to see steady growth. For Neomobile Securities and the customer base, 51% of the customers are in their 20s and 30s, and this is what we have originally targeted. And Sumitomo Mitsui Financial Group has decided to engage in a capital alliance with SBI Neomobile Securities. For NISAP. For brokers, this is the most important strategic product going forward. We have been able to surpass Nomura with regards to accounts, and we boast the highest level of accounts in the industry. When you look at the attributes of our customers, 70% of new customers are beginner investors. They account for 70% of our customer base. And for Junior NISA, out of total accounts, we have acquired 30% of them. And also for IDECO. And from May the 19th, 2017, we have made administrative fees that are completely free of charge. And as of the end of November 2020, which is last year, we have reached 411,000 accounts. So for Q3, we have reached 466,000 accounts. As of December fiscal 2020, Compared to March 2016, CAGR has been 47.2%. So the customers feel a need in this market, and we believe that this will continue to grow even more in the future. So with IDECO, For individual defined contribution plans, the cumulative number of customers is the highest in the industry for us. For Money Plaza, with regional banks, we co-manage shops And this has been extremely successful and it has continued to grow. So we have 16 co-managed shops with 12 banks. For Shimizu, Jikuhou, and Mie, they will have second stores because they tried out one and it turned out to be successful. So that is why they would like to open a second one. So for the co-managed shops, total assets under management has reached 65 billion yen. In order to swiftly achieve the NEO Securities Initiative, as well as to expand the customer base, we will continue to actively utilize M&A as a tool. So for Rios, Capital Works, Taotao, SBI, NEO Trade Securities, which used to be called Lifestar, and B2C2, these are the acquisitions we made. And for FX, cryptocurrency, M&A, and crypto asset market makers, I have continued to mention that we would like to go after these types of companies, and we have made those acquisitions, and they have contributed to our performance now. With regards to the banking-related business, SBI Holdings Equity Method earnings of SBI Summary Net Bank based on IFRS for nine months, fiscal 2020, was $5,540,000,000. And the JGAAP announcement for financial results is scheduled for February the 5th, by the way. Here are the changes in SBI Sumishi NetBank's ordinary income after start of operations. So this is where we are as for March 2020. It was at 1, 2, 6, 3, 4 as of the third quarter. And we are going to exceed this level substantially. And we believe that we're going to exceed 20 billion in the end. For the bank, here, due to negative rates by the BOJ, it was hit hard in performance. However, now we have been seeing this upward trend once again, and it has been ongoing. So for the number of accounts as of end of December... it has been $4.32 million. And for deposits, the balance has been $6,107,000,000. And as of January 27th, 4.37 billion accounts, and the deposits balance now stands at $6,222,000,000. So it easily can increase by $100 billion. That's where we are right now. We started off in 2007 for the bank, and then we are now at this level. Looking at this slide, we compare against regional banks. And this is ranked in the order of deposits. And it ranks Bank of Yokohama first, followed by Chiba Bank. Bank of Yokohama and Chiba Bank has more than 100 years of history. So they are leaders in the regional bank industry. We started off our business in 2007, but we are already number 17. We saw an increase of $715.4 billion in deposits. So this is what we're comparing against. It's only about the Bank of Yokohama that has been able to increase their deposits by $700 billion. So if we're able to continue to grow at this rate, we could probably be in the top 10 in three years' time, or we might be able to accomplish this even faster. So in a mere 13 years, the deposits grew to $6.1 trillion. We look at the growth factors and strategies to achieve sustainable growth in the future. So I think group synergies, pursuing them, are important. Or in other words, having a corporate ecosystem and engaging in mutual evolution so that substantial growth can be achieved. That is a policy I set forth when we established this entity, and we have been able to realize what I said. Also, when you think about the banking industry in the future, it's about... turning into a NIO bank. So NIO bank. Some people may have heard this before, some may not, but I would like to elaborate later on. So synergies with SBI securities, if this weren't in place, Asumishi NetBank probably wouldn't have grown this far. Because we have SBI securities, and because we have created a mechanism like hybrid accounts, The bank account and the securities company account, you can go back and forth. And that is why we've been able to accumulate the amount of deposits made. This was a large factor in growing the business. Furthermore, housing loans played a part as well. Mr. Maruyama is well-versed in housing loans. Started off with SBI mortgage and then changed to Aruhi and then we sold it off. But we decided to engage in housing loans in a full-fledged manner at the bank, and we have been able to grow well. But the current Aruhi was sold off then after. So currently, the bank continues to grow. The amount of housing loans originated has reached more than $6 trillion as of last year, June 26th. And when you look at the balance... $4,755,000,000 is what we have achieved. And when we started to handle housing loans in September 2007... And in January 2012, we started a banking agency business for Sumitomo Mitsui Trust Bank and offered internet-exclusive housing loans. So housing loans are long-term, so the balance between short-term and long-term will collapse, and it won't be sustained. So we decided to switch over to a fee business. The loans are originated elsewhere, and we received the fees in return from Sumitomo Mitsui Trust Bank. Then after... we launched Mr. Housing Loan Real, which is a banking agency specialized product. And also, we started to offer long-term fixed interest rate loans as well. So for the banking agency specialized products, Mr. Housing Loan Real, when Mr. Kawashima was the vice president of the banking business, this started to be offered, and it was vigorously expanded. So in this way, the size of the housing loan business, I told Mr. Maruyama that they should continue to expand their acquisitions.

So what is Neobank Initiatives? So it's about customizing business services of partner companies. Also have access to ancillary banking functions from SBI, SMEC, NetBank. So SBI, SMEC, NetBank works with partner companies to create a framework by which services can be used both smoothly and comfortably. So that's the concept. of Neobank initiatives. So, for example, we have GEL and Neobank. I'm not going to explain this because I have explained this a number of times in the past, but we collaborate the Yamada Holdings. It will start from spring 2021, Hikari Tsushin Group, CCC Group, ePark Group, And partner with regional financial institutions. So we are promoting this one after another. And also we will accelerate the expansion of customer base in local regions through cooperation with regional financial institutions. I always talk about open alliance. And regional revitalization strategy is open alliance. We, regional financial institutions, form an alliance to build a win-win relationship. And in different areas we are able to expand our customer base. Let's look at the insurance business side. So the actual fixed number will be February 10th, but we have seen that we have increased by 27.3% year-on-year in ordinary revenue, ordinary profit, 89.7% increase, and profit attributable to parent is 63.7% increase year-on-year to 782 million yen. We are very proactive with MND, especially in SSI, small amount and short-term insurance. And that's where we're focusing our resources on. So it's not just about acquiring and including them in our group. So they have formed a growth track, but this will be stepped up so that their growth rate will accelerate. So after M&A, they will continue to grow. So that's the situation today. So we will continue to be proactive in M&A's So it says active use of M&A has contributed greatly to growth of SBI insurance group. Our growth rate starting from 2012 to 2019, we have the annualized basis is 16.4%. Life net insurance is 13.2%, but they're still at this level. Rakuten is actually decreasing. That's the situation. So we are acquiring SSIs, and we are exercising synergy with non-life and life insurance. So these are now starting to function really well. Also, in this area of insurance, we are implementing technology after another. In particular, blockchain technology is has been implemented in our group. And each company is making efforts to implement it as quickly as possible. So, for example, our partner, R3, has a blockchain technology called Corda, and this will be utilized in different businesses. So, for example, here, We have decided to use Corda platform for agent insurance solicitor management platform system for SBI Nihon SSI. We will use Corda to build this blockchain platform and we'll be able to improve efficiency and standardization. If we can standardize it, we can actually roll this out to other companies as well. So we can actually sell and market these technology products. We will proactively promote alliances with various companies to further expand our customer base. So SBI Insurance has decided to work with 58 companies, of which 23 are financial institutions. So these 58 companies are actually adopting SBI insurance products and applying to sell them shortly. With regards to SBI life insurance, 26 regional financial institutions, of which 11 are regional banks, have decided to adopt or start sales SBI life insurance products. And it's not just regional financial institutions. Each of these SSIs are aligning with these different companies and increase their customer base significantly. And business area, other than the three main businesses of the financial services, which contribute to the consolidated results of the group. For example, we have SBI, FinTech Solutions. They're listed on cost stack. I thought it was COSPI, but maybe it was cost stack. COSPI was the other one. So our group companies are all here. So this is like NASDAQ. Basically, these are listed on cost stock in Korea like this. And the performance is growing steadily. And SBI Remit, which is a theory of SBI FinTech solutions, They have been using MoneyGram network, and they have now utilized the DLT of U.S. Ripple so that they can have this overwhelming competitive edge. They're already using this in Vietnam, and they have plans to use in Bangladesh, Cambodia. So they have different plans. And if you look at the total transaction and amount of remittance, in particular, I want to highlight the fact that our market share is increasing every year. This is extremely important. They are providing remittance service of GCash, a mobile money service operated by GXI in the Philippines. With regards to asset management business, as I have said earlier, in terms of pre-tax level, it's unchanged, but sales have grown by more than 20%. And you can see that SBI Savings Bank have generated more than $20 billion. So they are contributing significantly. That's plus 67.6%. When we acquired the company in 2013, it was almost bankrupt. And some people said, why do we buy such a company? Much of the media have criticized us. And I thought, wait, just wait and see. So now you can see that it has come to this level. In terms of profit loss from the change in fair value and profit loss on sales and investment securities, you can see that many of the unlisted securities are now listed. So that is why we have basically very little in unlisted securities and much in listed securities. With regards to our PE business... The investments that we have been focusing on, for example, Infantech, are now in the timing in which they go do an IPO. And in fact, the value when they go public compared to when we invested initially has been very high. So they have good valuations. So you have companies like Kako, Kokopelli, Kaizen Platform, Wealth Navi. They have all successfully done IPO. Because we're also investment, we are now managers or we're lead managers. Both SBI Securities and SBI itself have been making money on this. And, in fact, I want to emphasize the fact that PE business is not just short-term, just this year, because you may wonder that. But even after 2021, we're expecting to see many IPOs. So, for example, in FinTech... We have investment of 78 billion into 171 companies collectively from the two funds. And we have co-investment with SBI Holdings of a total of 117.5 billion yen. But you can see this outcome. And we had SBI, AI, and blockchain fund, approximately 52.5 billion, which we invested, and co-investment from the holdings of 39.5 billion yen. So in that sense, the parent, is able to generate a lot of money from this when it goes public. So as you can see, in 2021, January and March is zero, but April, June, we expect one. But between January and March, there were two that didn't exit through M&A. And between July and August, expect three. October, December, 10th. In 2022, total 44, 23 total 47 will do an IPO. That's our assumption. So for the time being, this will continue to bear fruit. And it's not just for the time being. We need to continue this forward. fund such as 4 plus 5 fund and the business accession fund and expand investment in industries preparing for the future. So we will continue to launch this

So in 1999, during the time of establishment, the venture, the capital, was considered as one of the pillars. And so we continued to make investments. And in 1999, Internet bubble burst in the U.S., and the market went down. And before that happened, we had sold everything. Mr. Song did not understand it. The Goldman Sachs and J.P. Morgan are saying that the valuation will continue to go up. Well, but that was not my idea. So I sold everything. And then Internet bubble burst came. comparing Japanese and U.S. markets. Back then, when it comes to Internet, we did not have good Internet companies. I feel that Japan was five years behind the U.S. Back then, every month, I went to the U.S. for one week, and I invited the companies to my suite room at the hotel to talk. to make investment decisions. The 150.5 billion yen was financed in Japan, and we started Internet Technology Fund. And we went even deeper in this world, and we started the Internet-related financial entities. And then FinTech came, the Financial Technology Advancement Fund, And as to such technology, first we seek to invest in companies to expand our business and the investment through investment and the business expansion. And for the time being, the biggest focus is blockchain and AI. And that's why we established the fund for that with 60 billion yen and a 4 plus 5 fund. It's for society 5, including SDGs. It's very important. Energy is also included. ESG as well. And for the industry 4, the manufacturing field is changing through AI, blockchain, and big data will be utilized more and more. Telecommunication technology, it's not just 5G, it will go into 6G as well. So we invested 100 billion yen. Our plan is to establish a 4 plus 5 fund with 100 billion yen. We have already collected 70 billion, 80 billion. And the 868.7 billion yen is the total committed amount. and we continue to accumulate a committed amount, and now we are the biggest in Japan. And as to Industry 4, it's shown here, and Society 5 as well on this slide. Now, CVC fund. Many companies are thinking how to renovate their technology, Because their R&D is not good enough. So there should be venture capitals. And we need to incorporate technology, completely new technology, and incorporate the venture capital. That is now the trend. And now we have commitment amount of 77 billion yen, and we'd like to make it to 100 billion within fiscal year 2021. And investment in emerging countries will continue to benefit from post-IPO high growth. For example, in Vietnam, we invested in TP Bank. And 19.9% stake was the limit. So we invested up to the maximum. The financial institutions in emerging countries are growing very steadily. In Japan, 1950s and 60s, when the economy was growing so fast, the financial institution accounted for a large chunk of market cap. So it starts always with FIs. And that's why we invest in entities like TP Bank. And as of February 1st, this stock will be included in VN30. This is the main index of the top 30 selected by Ho Chi Minh Stock Exchange based on market capitalization, liquidity, and so on. So this is something that we can look forward to. And their business is going very silly as well. SBI Savings Bank, as I mentioned earlier. Even with the pandemic, it is growing so fast. So 258.3 billion won or up 37.2%. And the rate is single A minus. It was on the verge of the collapse with 51.6% of delinquency. So people wondered why I wanted to invest in this entity. Without 130 billion yen investment from us, it would go under because the government should have invested 500 billion won. So now the delinquency went down to 1.6% and with 11 trillion won of assets, actually exceeding 11 trillion yen. And the balance of performing loans is approximately 870.9 billion yen. And now in Russia, the entity business in Russia is likely to turn around. The same story on the verge of the collapse. We invested and the transformation happened. And finally... Japan, from Japan JABIC, and Russian government-related investment fund that co-invested in a certain fund, and then this fund invested in them with a good track record that there was an appetite for the investment. And this SBI Savings Bank in Korea, compared to other players, that they are dominant in There's only one Japanese person, the accounting expert, working there in Korea. And the rest is left to the Korean management. Mr. Kawashima is the chairman, so he attends the board meeting from time to time. But basically, the management of this entity is left to Korean people. Operating overseas is not something that you can do. I mean, in Russia, we have the top head Russian person, but we have a very good Japanese talent, from Tokyo Bank to Mitsubishi, that he accumulated his career. And Mr. Hatao, the very international person, that he is leading the Russian entity, but only four or five Japanese people are there. So we need to grow the digital transformation related entities. So here we are talking about a CIDAP bank for mobile financial service. It's growing steadily. And in Korea, we would like to establish the financial ecosystem. That's why we are going to build an entity called SBI Capital. It's a tentative name. And we have SBI Savings Bank and SBI Investment Korea being the two wheels. of the operation to establish a financial holding company in the future. As to asset management business, it's a very important business area. The Morning Star, the record high numbers listed here, Morning Star being at the core of asset management, providing product investment tools and investment products to various entities. As to IDECO, for example, we provide investment advisory service apps. As to investment advisory, it's not only about IDECO or kinds of investment trusts. And Morningstar, I would say, is number one in this area among regional financial institutions. 73 FIs among 100, the regional FIs, are using Morningstar's apps, which they use to sell their investment trust business to their clients. Now the focus here is the size expansion of asset management. SBI Vanguard and Ikidalma, they are all growing and small and mid-cap stocks related business is also increasing its assets. The SBA Asset Management Group's inflows of privately placed investment trusts exceeded 900 billion yen and 905.5 billion yen for the period from January through December 2020. SBA Asset Management Group is ranked number three, following JP Morgan and PIMCO. The large Japanese entities, or even BlackRock or Invisco, are having smaller inflows. The securities operation for regional financial institutions is very, very important, especially 40% of the government bonds and local bonds, or 15 trillion yen, that will be redeemed by around 2022. And that is giving a lot of headache to regional banks. I learned something from a certain person, and I have formed a wonderful idea. and I'm going to work on that idea and this is an idea how to absorb this redemption and ETF is being bought significantly by the Bank of Japan and what is their exit strategy? Japan will not survive without the accommodative policy. That's okay, but you have to think about the exit and buying ETF. The zero interest rate is understandable, but how are you going to wind down ETFs? well, the 10 trillion yen profit for the Bank of Japan, but how are you going to sell ETF? And is it justifiable for the Bank of Japan to make such a big profit? Those things should be well considered. And the government has talents to think about these things, or at the BOJ, they need such talents. We know what to do. SBI Asset Management Group's AUM, exceeding 1.7 trillion yen. AUM from several regional financial institutions. And the SBI Bond Investment Management, co-founded with PIMCO. And SBI Regional Revitalization Asset Management has 730 billion yen. And here we have the six banks with capital and business alliances with SBI Holdings. It will soon be seven. And they represent 28% of the breakdown of AUM at SBI AM Group. And there are such strong appeals from regional banks to Mr. Sakura, for example, and to other personnel for the asset management. So diversifying and sophisticating the asset management, you need risk for the analysis process. And the Milais is the company writing an alliance. And this is between the Milais and the Morning Star Japan. And here we have the SBI Group's AUM, including private equity, stands at 4 trillion yen and 5 trillion yen within one year rather than two years, and 10 trillion yen within five years. And that's our targets, and that's what I expect Asakura-san to achieve. I'm not placing order on him, but I expect him to do that. Now, about SBI Energy, Mr. Suga said that they will focus on green energy. or carbon neutral. He made an announcement for carbon neutrality. And so it was a good thing that we have SBI energy because now we could engage in the government's efforts. Mr. Nagatsuka is the president who was working for the government and the financial affairs in the financial affairs area. So the solar power or the geothermal or the hydropower, all kinds of the new energy sources are being used. And the hydrogen and the fuel batteries will be the future focus. In Kansai area, to revitalize the Kansai area, to revitalize it. There's this concept of international city, the initiative. And in the Chubu area, operating with the Chubu utility company, we would like to establish the sustainable society there, the ecosystem there. And fortunately, we have found personnel in the group who studied hydrogen, and he wrote a report about hydrogen, and it was a really good report. So I feel very fortunate to have such personnel in the existing employees of the group, and we would like to work on that.

So for bio-health care and informatics, for bio-health care and medical informatics, Cork has been weighing on performance. And there were three phase 3s. And until phase 2b, it was good. But phase 3 didn't work out well. And also for the second product, phase three wasn't successful. So we were expecting the third product to make it, but we don't have any more high expectations because we were betrayed twice. So... It is already taken out on a consolidated basis. And we'll be able to see what kind of results come through at the end of February. Once this is over, we will start to see the minus contribution go away. So that is good. So for biotech, they are not going to do any more drug discovery by themselves. So at an early stage of our research seeds. The drug discovery is going to be done by another party outside. And this has been working out well. For Pi-Vala-related businesses, they have been trending steadily. But SBI Pharma shouldn't do that many things. If you continue to hire researchers, they start to become enthusiastic about researching many fields. And I'm skeptical about that. And more lately, personally, I don't have time to be involved in this area. So Mr. Kosiesta, a German, has been engaged in the business and taking leadership. So for biotech, Viola Bio, Kyowa Kirin, Asahi Kasei Pharma, and Karna Biosciences, the other entities are in charge of our pipeline. So if this turns out to be successful, we'll be able to get milestone payments. For five VALA pharmaceuticals, pipeline projects address mitochondrial disease. Phase three is underway. And if it turns to be successful, it will be the first time that there will be a treatment for mitochondrial disease, which is a genetic disease. And also for cardiac ischemia reperfusion injury, a hospital in the U.K. due to COVID-19 has been on a standstill. So phase two is currently at a standstill as well. And also for the subsidiary in Germany, Photonamic, that addresses brain tumors with IPDT, it's under preparation for phase two. For Canada breast tumors, under preparation for phase three. And for U.S., an XDC. that addresses meningioma. This is a PDD agent used for diagnostics. It's an interoperative diagnostic used for brain tumors. It's similar in nature. So this is one thing I'm paying attention to. So COVID-19 and the relationship with five ala. Dr. Kita from Nagasaki University issued a paper and also a new paper, a case report in infectious diseases is being posted. And it was in the open science framework, which is a pre-peer review framework. And I'm paying attention to this because in Bahrain, the Royal College of Surgeons in Ireland, Bahrain, RCSI Bahrain, and Bahrain's Defence Force Hospital, Royal Medical Services, together with NIH in the U.S., has decided to do clinical tests to monitor what happens. So if this is successful, papers will come out, and it has the potential of gaining more attention. So Dr. Kita makes a lot of announcements. So ala plus gold e-eggs, which contains a high dose of five ala. And for COVID-19, you need a high dose. And you can see that sales has grown by 14 times. When you compare December 2020 results against our forecast for January, and also for Toe Sugar Down Rich, that reduces your blood sugar levels, as well as Fukai Nemuri that deepens your sleep, all of the products have been growing. And our skincare series has increased as well, which is really good. And also, two new notifications for foods with functional claims have been accepted. One is Hatsuga Genmai no Soko Jikara, which is the fundamental capability of germinated rice. When I don't meet any visitors, I try to eat rice balls that are made out of germinated rice. That includes this. And this is very special as a germinated rice. And it's the most nutritious. And the power of ala is exerted the most. And the dose of GABA is the highest in this kind of product. And it contains ingredients that lowers triglycerides as well as cholesterol, as well as in the blood. And for ala plus toe sugar down alatia, it's a combination of salacinol and ala. The salacinol in Sri Lanka, as well as in India, there is a tree that produces this ingredient, salacenol. And the royals in Sri Lanka will have cups full of water. And the cups are made out of salacenol. And if you drink water out of these cups, your blood glucose levels will be steady. That is a ritual, and it has been succeeded over the years. And when you analyze the ingredients of the tree, They discovered salacinol, and it was a researcher from Japan that discovered this in the area of urinology, actually. And also in Hawaii, we are working with the University of Hawaii with an improvement of depression and mood, and it's expected to be accepted in the spring. And recovery from fatigue, as well as male menopause improvement, it is being... Clinical trials are done in collaboration with Junten Do University, and also another product concept is fatigue reduction after exercising, and clinical trials in collaboration with Junten Do University. And they also have ALA Research Institute at Keio, and they are also doing some research. And Keio University is working on this research, which is for fatty liver. And also, when you grow older, your muscles deteriorate. And they are saying that by applying ALA, this process can be delayed. So this kind of research is also being conducted as well. So we wrote a book on ALA lately, and the doctors have been pitching in. So I hope you read the book. And in light of COVID-19, I truly felt that Japan was behind when it comes to governmental administrative matters and its digitalization, as well as digitalization of the medical arena. It is absolutely absurd. All types of statistics might be gathered And when you think about the people who can develop serious symptoms, they're saying people who have an existing disease may develop into serious symptoms. But what is exactly the disease? Is it type 2 diabetes? Is it something else? That is something that's not available. So, however, a company called Medical Data Vision that we have a stake in now are able to analyze this kind of information. And that is a result that they have derived. And also blood type analysis, as well as serious symptoms development, as well as infection rates, is something that is being done globally. They're saying that type O is strong against COVID-19 and type A is prone to COVID-19, apparently, according to the analysis that is being conducted. So this is the data, what I believe needs to be gathered and analyzed so that it can lead to drug discovery. And that is because I want to do this. That is why I'm engaging in this. We're good at digitalization and for these areas. We are also well-versed, and for remote diagnosis, we have been investing into various entities for those companies that may list faster than the others. And we have an investment in an Indian company that is also in this arena as well. So we have been investing into global companies, and we would like to gather wisdom from all of these global companies. And for health accounts, This is part of regional revitalization. We believe that we can become closer with the regional financial institutions and being involved with the local people. There is an economic magazine and I pitched into an article which is likely to come out next month. The three types of assistance, which is self-help, public assistance, and mutual assistance, which is also referred to by Prime Minister Suga, is what I talked about. And we have national medical insurance that covers everyone in Japan. But the demographics in Japan are going to change. And young people are going to need to support a tremendous amount of old people that is not sustainable And financially, we will also start to face bankruptcy if this continues to be the case, which means that we need to promote self-help. So expenses related to one's own medical and nursing care expenses should be reserved. So once people retire and start to receive pensions, maybe the son or the daughter can succeed that account. and for mutual assistance. It's about taking over part of the current universal health insurance coverage and creating a good insurance product that fits this purpose and try to have a mutual assistance type of medical or nursing insurance product. And accounts can be set up at regional financial institutions. In the area of public assistance, efforts should be made to realize I have been talking with and made presentations to the lawmakers at the LDP. It's really easy to adjust the tax rates when it comes to inheritance taxes the most. So under this concept, we would like to make these initiatives work. And this is an idea derived from a venture company, a company called J&B. We have been making investments into this entity. And there is a president called Mr. Takiguchi. He is a doctor, but he is also a financial expert and professional. Of course, he's a professional in the medical arena, but we have a 50-50 JV. And we established MEXT, Medical Expenses Technologies. And we also have a 100% wholly owned subsidiary called MFT, which is a deferred medical expense payment business. So under this entity, we would like to promote a health account initiative. For the health account initiative, everything is covered with patents. So one region, one regional bank is with which we would like to promote this initiative. Once it starts to become well established, if others want to join, we will be open to them. Until the system becomes firmly established, we would like to be exclusive. And I'm sure there are a lot of regional financial institutions who want to do this. For example, Ogaki has been saying that they would like to do this, Ogaki Kyoritsu Bank. And there's a lot of problems around COVID-19 hospitals and patients right now. So there has been a delay. But basically, people go to the hospital to be diagnosed. But if they have a health account at a regional financial institution, they could accumulate reserves. And at the medical institution, the advancement payments will be made through this mechanism. And then the advance payments will be recovered. All you have to do is leave it to the health account. That's the way we are thinking about promoting this. The group's efforts to realize regional revitalization promoted through alliances with diverse companies is the next part. From here on, what I've been talking about is something we would like to make even richer. That is how we positioned this year. You said that you were going to limit it to 10 regional banks. What are you going to do? Yes, we would like to go up to 10 banks, but we're not in a rush. Reason being, if we say 10, should we do it swiftly or should we go the other way? We need to be selective. We need to look at various aspects. And this takes time. So we're not in a rush. And as we design various types of systems, we need to have an overall perspective on what we're doing. But we will first ensure that the banks we work with go through a V-shaped recovery so that everybody looking at us will think The banks have made a quality improvement because of SBI, and we want others to feel the same way that they would like to go through this process. So there is one single light that has been ignited that is going to be followed by others, and that is how we would like to do the quality improvement process. New things are not generated that easily. Next. With regards to the line strategy between SBI Group and regional financial institutions based on medium to long-term perspectives, we have been working a lot on the first stage. So for the second stage, it's about from regional to nationwide. Next. will be using the internet so that they can go nationwide from one single regional institution to being a nationwide institution. Of course, inside their regions they have established relationships, and they have expertise around relationship management, and they have connections with their customers, which they can continue to have. However, if regional areas or economies slow down, they'll need to think about how to become successful in a different way. And then after, the next stage is to become worldwide from being nationwide. That's the third stage. Alliances between SBI group and regional financial institutions is the next part. You probably are bored about seeing this already, but when you look at the numbers, it's steadily increasing, which is important for everything. The numbers are rising. Now, SBI Group's initiatives to revitalize regional economies jointly promoting with various business partners. With Toa Bank, we have decided to set up a joint fund. This is something new. In light of COVID-19, the FSA has been asking banks to lend more. So for three years, there will be subsidies for rates from banks, from the government. But what happens then after, when it expires? This is something that needs to be thought about from here on. That is my way of thinking. So this kind of fund is anticipating what's likely to happen in three years' time. technology will be instilled and expertise will be offered, and not just into financial institutions. In local cities, for the SMEs, medium-tier companies, we would like to offer our expertise to them as well. for startups. We have been working on their development, and we have a sufficient amount of expertise that has been accumulated over the years. In this regard, we would like to support local companies as well. So we formed a capital business alliance with Keystone Partners, and we acquired 33.4% in this regard as well. Thank you. So it's in the area of loans, corporate loans. We not only want to provide equity, but corporate loans as well. And Keystone Partners have a wealth of expertise in this area. So we would like to work together so as to support SMEs and medium-tier companies in local areas. And also for business succession, this is an important challenge as well. With Trambi, By having a partnership, we have a matching site. But this is a very critical situation right now. So we will set up a fund. We will acquire the entities. And the fund size is currently $10 billion. And we gathered $10.9 billion. And last year... June the 30th, it started. So once fund one is over, we will go on to fund two, and we will strive to reach $100 billion in the end. So by raising these funds, we will address the problem of business succession. So first of all, dispensary pharmacy businesses is what we looked at so that we can go nationwide. And all of these types of companies are medium-sized or small to medium-sized enterprises. So we'd like to grow them. And the Rice wholesaler, Shimei, is another example. We would like to strengthen the business, and that is why we invested. And we want to invest into projects that will have a ripple effect in a nationwide manner. Other than that, for regional revitalization, we have been engaging in a diverse range of initiatives. And for digital shifts... engaging in a qualitative transformation of regional financial institutions through a digital shift. For MoneyTap, we believe this is going to become increasingly important. 38 companies already have invested into it, and Ripple from the U.S. has been sending over executives, and their stake is 33%. That's what they asked for. It's not one-third. It's 33%. So when you look at the current circumstances, there are three banks that are currently connected, and it is P2P remittances between individuals. So B2C will become available in the future, and for prepaid charge operators, we'll be able to cover them as well. and their safety levels will increase as well, and we'll be able to handle QR payments too. And corporate remittances, small amount collections, can be handled in the future too. And there are three more banks that are expected to be connected. And by the end of the year, we would like to increase the number of connected banks to 20, and we already have gained visibility. The more we have... it will have an external economic impact. So it is an internet business.

So aside from PayPay, there's LinePay and Cash. These are the prepaid charging service providers and the benefits for both banks and these providers. So basically, this is good for buyer, seller, and society. Now, this is SBI's new financial services. White label banking app was developed by Shimane. And in the past, Shimane Bank would never have made something like this. This is Shimane app. So we offer on our white label banking apps. And then, you know, depending on the API compatibility, functions can be expanded by utilizing various fintech services. And... Building a cloud-based accounting system, this is something that we are now ready to enter a full-scale generation banking system. We are finally able to utilize AWS Private Cloud with SBI Financial Cloud. And a future architect has a wealth of experience in this bank accounting system, so we will utilize that as well. We have a good compatibility with Future Architect, and we have decided that all the functions are necessary for this platform. So we would like to develop this as quickly as possible. So at the time of renewal, there's 10 right now who want to renew it, so they will be utilizing this service. And this will be changed to annual fee model. And with this, we will be able to improve profitability significantly. So this is operational and this is system cost. If we have this, it doesn't matter if the interest rate is negative, if we can run this well. And like I said earlier, if this doesn't work regional, then we can do this nationwide. We will back up everything. I always say that public interest will always lead to profit. I think you can really understand that well. Why have we been able to grow like this, our business results like this? We say zero commissions. We have another source of profit that will offset that zero commissions. But we want to maximize the benefit for the investors. And that's the public interest, which we want to deliver. Then that would lead to enormous amount of accounts. And as a result, this will lead to better earnings. Among the online brokers, we have the lowest fees. And as a result, we have an overwhelmingly great number of accounts. And with regards to the regional revitalization partners, which was co-established several partners, we're beginning the two function offering companies. In this pandemic, We have this declaration of state of emergency. And because of this, our sales activities have been constrained because we're not able to travel. They don't want people from Tokyo coming in. And that's quite troublesome for us, but it's inevitable. First and foremost, we need to protect the life of the people of this country. So that's number one. Economy is number two. If we can defend the life, then the economy will realize V-shaped recovery. It's unlike a war where our production capabilities have been destructed. It's not that demand has been lost completely. No, there will always be other demands. And of course, in light of that situation, we need, we'll see new ways of thinking. Well, I used to run a restaurant, but I have now decided to do takeouts. And I will be delivering bentos, box lunches. And I will do Uber Eats, for example. Or this is remote work. You will need PCs. So in that way, because securities at homes are not at its best, maybe there will be softwares that will enhance that. So if it shifts to one side, there's always necessities in demand on the other side. And we will commercialize all of those needs. So if the vaccine is developed and penetrated, that would be the best. If that works, that would be the best. Now, RNA vaccine... By the way, RNA... Because viruses mutate very easily, even if there's variants arising one after another, There's a challenge of one type of RNA vaccine being able to beat these variants. But now we think that UK type still can be defeated by the current vaccine. We need to really defeat it. I think there's like 53 in Japan who have been affected by this UK type. If we had shut the doors earlier... Unless you send it to the infection center and have them diagnosed, you will not know if it's UK type or not, it's a mutant or not. So the fact that we have been able to find 53, at least, I think because if you look at how it's spreading quickly in UK and US and Mexico and Germany, You can see that that's a variant. And then you have Brazil type or you have South America type. It's one after another. Or African type. How long could RNA vaccine work against these new variants? I hope that the wisdom of the humankind will come up with countermeasures. And now this functional company, we will invest and they will start to engage in investment activities. And I myself is the president of Regional Revitalization Services. Mr. Kawashima will be serving as the president of SBI Regional Revitalization Investment and Loan. And we have large projects like Smart City International Financial City or like hydrogen, for example, building a hydrogen ecosystem that I have talked about earlier. I hope we can do this in one way or another. And we will align with different partners who will work on other components. They'll be helping out. That's my expectation. With regards to International Financial Center, Tokyo and Osaka and Kobe do not need to be enemies. Tokyo should just aim to become the nation's capital. What we are saying here is that become an alternative market for Hong Kong to become a cross-border hub type of financial center. It connects as a hub for transactions between domestic and overseas or between overseas countries. Singapore is doing that already. That's what Hong Kong used to do. Why is that Japan, where we have more than 1,900 trillion in personal savings, are not able to do this, to build a cross-border financial center? In the past, maybe there were four occasions which the discussion really peaked, but we have never been able to realize it. Why is it? What we need to think about today is that if you look at the taking away that position away from Hong Kong as an international financial city. And we can increase our business, especially focusing on the Southeast Asia. Those are the things that we need to think about. So, for example, in the UK, there's London, but there's also Edinburgh for investment trusts. In the US, there's Boston. And there's San Francisco. Chicago. Even in Switzerland, you have Zurich. It's functioning as a cross-border hub. Why is it that Japan, we only can have one city? That's totally incomprehensible to me. And we have all this congestion, traffic jam, there's air pollution, and COVID, overwhelming number of infections in Tokyo. That's the case with all capitals of the world. If you look at London or New York, They're not necessarily the capital, but... So we need to build the industry cluster. Every regional city you go to, you hear about how they're losing their industry, how companies are closing... Only Tokyo is this concentration of industries in Tokyo. But I think Germany is wise. I have visited all these big cities, Frankfurt and all these and other regional cities. And every city has a very large airport and has a significant industry. Now, if you come to Tokyo, what happens if earthquake hits Tokyo? It's Tokyo directly. Tokyo would be in a destructive state. I keep wondering if people are thinking about that. Historically, Osaka is a great place. Even if you look at the geographic specialties, Compared to Tokyo, Osaka, or Kansai International Airport ranks first in terms of the number of people visiting Japan from the Asian region. It's much closer to Southeast Asia, closer than Tokyo. If you look at the regional characteristics, if you look at the residential land price, compared to Tokyo, it's only about 40% in the Kansai region. And also tourism attractions represented by Kyoto, which the foreigners are delighted by. That's also located there. Food culture. Osaka and Kyoto is perhaps more sophisticated than Tokyo. And of course, there are restaurants originally from Osaka and Kyoto that are opening restaurants in Tokyo. But whether it's Kyoto food or cuisine, it's originally from Kyoto. And also, smart city concept. Tokyo is planning to do a strategic zone. How could Tokyo do that? No matter how the world sets, society sets. In 2021, we will establish Osaka Digital Exchange. April, Osaka Digital Exchange becomes joint stock company. Spring 22, Osaka Digital Exchange begins handling stock. 23, ODE, Osaka Digital Exchange begins handling security tokens. And 2025, Osaka Dojima Exchange becomes a comprehensive exchange. We will be focusing on expo using cryptocurrency or crypto assets. Money can go back and forth in and out of Japan. Osaka, Singapore, Switzerland, Germany, London. They will be linked as corridor. That's my vision. And I will be sure that we do that. And if you look at Singapore, it's a fintech center. How much did they spend? Let's look at the tens and billions of yen that we have spent. But we have spent more than 100 billion yen. And we will continue to invest. And we will invite and attract fintechs from all over, more and more. In first stage, Dojima, they will become a joint stock company. We did that already. And then we will establish spot tradings. And step three, they will become a holdings company. So they will become Dojima Exchange Holdings. And step four, we will also build a clearinghouse mechanism. And of course, they will do futures exchange as well. And different diversified products, including financial products. It will be offered globally. The service will be offered globally. And you'll have different financial commodities. You'll have agricultural products, weather derivatives, index futures. With regards to digital exchange, as you saw in the newspaper this morning, we will partner with SMBC Group. We have 60% stake and they will invest 40%. We have them trade common shares and security tokens. It will be a primary market for that. Excuse me, secondary market for that, correction. And we will establish SBI PTS holdings and We will both have Japan next, which we will take 49% stake, and we will also invest Osaka Digital Exchange. Now there are about four overseas players who are interested. So... And maybe we will begin to divest eventually. But I think we want to have a larger stake in the beginning because if we have foreign players, it gets a little more complicated, takes more time. But they have great opinions, so we want to get that benefit as well. This is what I said earlier. Okay. I think SD security token is extremely attractive. Basically, it's considered to be marketable securities issued by blockchain. but it can be used in real estate and corporate bonds. In fact, in real estate, there's about four inquiries on real estate. It can be applied to corporate bonds in the future, to stocks or artworks, games, and other IPs. This will be commoditized using blockchain. and they will be able to minimize the issuance and distribution cost. And in this field, Japan can make the best in the world. And fortunately, Japan has been early in working on this. In terms of SRP, you know, in the United States, One day before stepping down, they were doing XRP security. The SEC did it. But Japan was completely irrelevant of what America was doing. It was considered to be a coin. And that's the case here. We're not conscientious of what the U.S. is doing. B2C2. I guess if that happens in the U.S., we will let it rest for a while, or close for a while. But otherwise, it will do as it has been meant to do, a money tap. We will continue to increase the business remit as well. They will continue to use them. So we will diversify financing means. And I think you can see in something that's epoch-making. If you look at in the past history, something that was innovative or epoch-making, it was convertible bond. This was considered to be epoch-making. It was a mix of equity and bond. Or in the financial market, they had a deposit certificate. So it became like a note. And this had really grown as well. But this initiative is incomparable to that. This is an area that can't be compared. That's how big it is. So we don't want to have a fraudulent conduct like what we have seen with ICO. If we let it loose like that, I don't want that to happen. So as soon as STO becomes legal, then we will establish self-regulatory organization. And fortunately, 12 companies have already expressed interest in joining STO. And there's 45 companies who are supporting members. So regular members, 12 security companies, and then 45 companies supporting members to support this STO initiative. So there's 57 companies have joined the self-regulatory organization as of January 2021. So we will first of all establish the secondary market where it will be distributed. So after the amended financial instruments and exchange law became effective on May 1st, 2020, we began the first security token business. And as an example, for example, we did a third-party allocation of new shares by SBI Esports using STO. And there's a platform called Boostry, which was developed by Nomura Group. We were thinking we will develop this on our own Because we're investing in the secretaries' station, and it was possible to use their technology. But at this stage, there wasn't any point in competing. So I said, okay, we'll take 10% stake in Boostery. I said 15% initially, but Mr. Nagai was only willing to give 10% away. But I said, okay, I'll take that. This is for Japan. This is for the modernization of Japanese financial market. So I said 10% is good. And this security token will be offered to retail investors as well. It's a safe product, which will be offered to them And as long as it's digital, it must be global. That's my thinking. So Osaka Digital Exchange will endeavor to be next generation global and digital exchange. Those are the three key words. Boris Stuttgart Group operates Germany's second largest stock exchange. They have built a digital exchange. We went ahead and invested in it right away. And sixth group in Singapore. We have agreed to establish a joint venture in this area as well. And we have Switzerland, London. It will all be connected and we will establish a global corridor. That's my vision. And we will attract fintech venture companies from around the world and utilize their cutting-edge technologies. In Osaka and Kobe, we will establish fintech financial center. Now, this is my personal vision still, but that location, Dojima, Nakatsuka said that this is a really good location because this is NEC. Nakatsuka-kun said that. Mr. Nakatsuka said that, excuse me. Dojima building can be rebuilt. But we can do what, it's an old building, historical building. So what we could do is what we do at Tokyo, kind of keep that exterior, but change the inside. So Nomura was kind of doing that before too. So basically they leverage the external architecture, but they build a completely new, brand new building inside. So we can do that. And maybe we can establish a headquarters there. In other words... So we can have, for example, headquarters for Osaka, a district exchange, and those people who do not need to be in Tokyo, we can relocate them to Osaka. That would be reduction in cost. Even in COVID, that would be better safety-wise. I'm from Kobe. Why is it that foreigners... built so many western style uh houses and buildings in kobe where it was colonized by the west it's always like that but they build that on a hill with a great view of the ocean and they build this very nice western style mansions and it's a catered towards westerners and their taste And I've kind of seen the similar scene in Nagasaki, too. This is more favored by the Westerners. Kyushu, too. I don't know if Kyushu, if it's too close, is good or bad, but they are very close to Korea and China. If you think about Dazaifu, that's where all the cultures began to inflow into Japan. So we can have places like, we can have several locations in Kyushu. So for example, Kyushu, the business community can establish a team in Fukuoka and build a cluster. They can have each of its own characters. And we have $1,900 trillion in personal savings. And if we want that to be transformed, if we can utilize that, if we want to utilize that, then we need to build an attractive financial center. My focus is on next generation and digital technology. A financial center that fully utilizes blockchain. That's what I want to build. We are attracting fintech venture companies through SBI Group's abundant investment track record. What's circled in red is all gone public. R3 and Corda DLT. Smart contract technologies can be attached to it, to blockchain and DLT. And we are the largest outside shareholder. We have a joint venture. Same thing with Ripple. So it's six o'clock, almost five minutes to six. So I think I wanted my talk here.