Sbi Holdings Inc Ord

Please allow me to stay seated and undertake of my mask when I speak. So here in this venue, about 20 people are present and a total of about 100 people are participating at this session on the Internet. Thank you very much for your continuous support. Now, without further ado, let me walk you through the results of the first quarter. We have 166 pages. It will be the longest, the presentation, and I'd like to go as fast as I can. So the first quarter, FY 2021 consolidated financial results and the feasibility of the new medium-term vision based on it. On April 28th, We announced three to five years new midterm vision of the group. And during these three years and five years, we would like to achieve the 300 billion yen as consolidated pre-tax profit. And we are going to set up the new businesses. in such a way that that will contribute to about 20% of consolidated pre-tax profit. New business, meaning the business utilizing the new technologies such as digital assets and blockchain, and any business which joined the group through M&A since April 2018. And in addition to the organic growth, we will conduct M&As and with ROE maintaining 10% level. That's the message in April. And we are committed to achieving this goal. Now we are enjoying the Olympic Games and they have strong commitment to get a medal, the gold medal. So I have a strong will to achieve this goal, to challenge this goal. So in that context, the first quarter. of FY 2021. Revenue, 137,474,000,000, or up 23.7%. Pre-tax profit, 33,029,000,000, up 19%. Profit for the period, 33,106,000,000, or up 63.3%. And profit attributable to owners of the company, 28,958,000,000, or up 77.8%. And according to the other calculation, the analysed ROE based on first quarter is 19%. So setting aside the outline, let us go through this page. This is the comparison. with their major face-to-face securities companies. The SBI Holdings, up 19%, and Daiwa Securities, with 35,176 million, or 45.5%. But probably, as to the net profit, we have overcome Daiwa. And the S&P and Nikko Securities, the numbers are here, and Nomura is going to announce tomorrow. In the case of Nomura... because Archegos did investment earlier, which has been offset by the sale on the stocks. That will also be reflected in their results. So what is the purpose of the trading? Well, each entity has done what they have to do, and this is the result. Buy segment, financial services business. both revenue and the pre-tax profit were record high. Asset management business for the revenue, record high. For the pre-tax profit, 15,712 million or up 31%. This here, I'm going to talk about details. The Shisei Bank's shares, about 20% at our stake, a little bit less than 20%, and their price went down, and we incurred some losses. And it is 14.2 billion yen. And so that will be added. Without that 14.2 billion loss, the number would be much better. Biotechnology, healthcare and medical informatics business, the deficit has been reducing and the revenue is now record high. as to the new midterm vision. And if we achieve it on the third year, the CAGR should be 28.8% for the first quarter. And if it's achieved on the fifth year, then it will be 16.4%. And when we look at the actual number for the first quarter, it went up by 19%. That is the CAGR for the first quarter, so exceeding the number for the fifth years assumed, the number. And as to the second quarter 2021, the asset management business has stocks that are expected to record valuation gains in FVTPL that's possibly surpassing the first quarter results significantly. We are already seeing it in July, so probably we are going to achieve the better results than those of the first quarter in the second quarter. And this new mid-term vision, medium-term vision, so the full year for the FY 2021, the CAGR of 16.4% to 28.8% on the full year, the will be exceeded unless something unexpected happens. For one thing, the pandemic situation. The Prime Minister is saying that the inoculation can be achieved by the end of November and 60 to 70% of the Japanese people will be inoculated. So at least the people will not be seriously ill. So rather than looking at the number of infected people, we need to look more carefully at the people to be seriously ill or the number of deaths, rather than driving people to be afraid of this pandemic. That will only slow down the economy. we should be engaged more in economic activities. So we think that the market will not be so bad, especially compared to Western markets. The Japanese market is behind the Western markets because of the delayed vaccination. So... then the Japanese economy can make a good recovery later on. And as to asset management business, second quarter and beyond, more IPOs of investor stocks are scheduled, mainly fintech funds and NB funds. that will be IPO'd. So we will go into the period of recovery of investment. So I'm looking forward to it. And as to Quark, which has been in the red, that will be sold off. So we will not incur losses from Quark Pharmaceuticals. That said... As to the other part of the biotechnology, healthcare and medical informatics business, we will have more positive news. And also as to future M&As, we are reviewing some potential targets of these activities. So future M&A strategy is expected to secure new revenue sources as well. So we have this very positive view for the fiscal year 2021. As I mentioned earlier, Compared to New York Dow or Nasdaq, Nikkei average, it's so slow, not rising so much. And the PER basis, as of June 30, 2021, Nikkei average and the other PER, as you can see, at 25.53 and 19.83, while the US and Nasdaq and the FTSE 100, compared to these other markets, the Japanese market is under-evaluated. And this is only because of the delayed vaccination, we believe. And now the change, and as to the individual brokerage trading value, the April, June, it's not so good. The January and March was good, but there's some decline in the April to June, but not so different from one year ago. And as to amount of over-the-counter FX trading, as you can see, Compared to one year ago, some decline maybe. So this is the environment of April to June. And once things turn around better way and the positive impact on our results as well. Securities related business. The performance has been strong. The pre-trade, the commission zero, the new entrance from the overseas. And NEO securities initiative, our definition is to eliminate trading fees for domestic stock transactions and some other fees that are currently incurred by investors. So the question is when we are going to do that. And there are six key indicators that we are going to use to make that decision as to the timing. So the first quarter, SBI securities, the operating revenue up 14.3 percent, the operating income up 8.3 percent, ordinary income up 8.3 percent, the net profit up 3.7 percent. It is not extremely good, but not so bad either. It is showing steady growth. So as to the six key indicators or KPIs. Our focus is on the share of individual stock trading value, which continues to be very high at 43.6% as to deposit assets. And, of course, the margin share is much higher than that. And 20.5 trillion for deposit assets, followed by Rakuten, Matsui, NAU, Capcom. And these three entities all together will still be smaller than SBI's numbers. Operating income? These are the important KPIs. The Manex, the 1.9 billion yen profit for the security side with the coin check performance. But these are the results of Manex, as you can see at the bottom. And in addition, we have trading revenue. Ratio to total revenue is another KPI. And the stock trading commissions without online trading ratio to total revenue. And quantitative tolerance and stability of the system within this fiscal year. We are going to be able to handle transactions of 11 million accounts by the end of this fiscal year. So when the commission being zero, the quantitative impact will over the system's capability. So we need to have the tolerance and stability of the system, the better. So the six key indicators, we are going to look at these KPIs to make a decision on when we are going to make commissions zero. And if we don't do that, then there will be some player coming from overseas markets. Look at Robinhood. There's a possibility of them being... in this market. But that said, I don't think that they can survive in this market because we will be their competitors and they will not be successful in the Japanese market. Again, wrapping up. Six indicators show individual stock trading value and establishment of a system to meet diverse customer needs. The young people or the day traders and other frequent traders. And our group, the entities have been making efforts to handle their needs and deposit assets that will grow even more. And as to profitability, not only the individual trading, but the wholesale business is in our eye. perspective to expand it and the trading revenue ratio to total revenue. From 2008, we have been working on the FX business strengthening and the crypto asset business, which will be strengthened even more. Stock trading commissions without online trading, the foreign stocks, IFA business, or the real estate financial field where we conducted some M&As to explore untapped customer bases. And we are going to decide on timing of realization of their securities initiative, looking at these indicators. Now, this is the alliance between SBI and SMBC, the group which is going very well. The Sumitomo Mitsui card and some services have been offered and will be offered. And as to NeoMobile, SMBC owns 20% of SBI NeoMobile securities. and the other seamless services, including automatic fund transfers with SMBC. And as to SBI neotrade securities, this is mainly for traders. and very strong enthusiasm from the traders. It is almost zero commissions. The number of accounts was 210,000 and the customer deposit, 311 billion yen. So we would like to increase the stock business. This means that the open interest and the net financial revenue are very closely linked. So... We are going to increase the stock of the business, and the investment trust is part of it. And this is the balance of regular contribution investment trusts at the month-end basis. That limit is shown here, 43,291 million yen. And on the right-hand side, investment trust balance, the 4,134 billion, the record high. And this is the... Investment Trust Savings Service using the credit card, cooperating with the Sumitomo Mitsui card. And only in the two weeks from June 30th, we achieved 6% of the total amount set aside. And I have a very high expectation. And up to 3% points that is given in the campaign. And this is the wholesale business reinforcement. And we have finally reached 100% of the underwriting shares. And of course, industry leading figure. And from April to June. the total of 33 companies were listed. And we underwrote all of these 33 other companies, some of them as lead managers. Actually, we lead managed the six companies. And there's one in June as well. I mean, July as well. And as to POs, The first quarter of 2020 was so weak. And after that, the first quarter, fiscal year 2021, saw an increase of 206 times. And as to corporate bond, we underwrote seven corporate bonds in total, including that of SoftBank. So as to the financial, the corporation, the business, we will increase the business. We have been increasing business with financial institutions. And our next target is the financial corporations. And we will be aggressive in this area. And for that... M&A advisory section should be stronger. And we are going to multifaceted the proposals to those entities and also cooperating with regional FIs. And we are going to increase the number of corporate clients. And in each region, the banks are dealing with the high net worth, the individuals, as well as the corporations, the local corporations. So we would like to provide our own financial products to governments. such market and that will be a benefit for our allied the regional financial institutions so this is basically trading revenue trend FX related revenue or the crypto asset related revenue the first quarter before 2021 did not increase so much And compared to the one year ago, there's some decrease in the crypto asset. But the other assets, including the foreign currency denominated bonds, offset. So as a result, first quarter FY 2021 in total topped the results of the previous year.

So in terms of the real estate finance business field, we're going to come out with a lot of products. And this June, we have concluded a share transfer agreement with Tozai Asset Management Company, which manages and operates real estate assets. And by the end of September, we were planning to acquire 55.91% of total shares. And through these type of activities, We would like to set up private funds like the real estate funds. We would like to proactively expand the business in those areas. In terms of the SEPI securities, you can see that the foreign stock trading volume has rapidly increased. So in terms of compared to the first quarter for 2019, In terms of foreign stock trading volume, it has expanded by six times. So the profitability has expanded by 5.5 times. So you can see that this area has grown. In terms of IFA business, Independent Financial Advisors, that stands for Independent Financial Advisors. We have been strengthening our relationship with IFAs in terms of the revenues compared to A5 2020. This first quarter increased by 1.4 times. In terms of AUM, it is 2.1 trillion yen. So in this past year, it has grown by 42.2%. Going to the SBI Money Plaza, and this is the co-managed shops with the regional financial institutions. This is going very well. So in terms of the co-managed shops, we have 21 shops with 14 banks. In August, there's going to be one shop added. So that means 14 banks and 22 shops will be the number. And for the coal-managed shops, the AUM is 98.5 billion yen. So we'll be closing to 100 billion yen. In terms of the banking business, so we started as a challenger bank. And from the interim term, under a new concept, we have come up with a nail bank concept. So the definitions are written here. So a bank, whether we have a license for a bank or not having a banking license, and the functions are used by the partners, we will support them. And we will expand the customer base and provide various services through this partner. That is the definition. So as a challenger bank, we have been able to show a very high growth. So IFRS-based earnings, it's $2,838 million, so up 40.3% year over year. So this is a 50-50 joint venture. So you can see that IFRS, this equity earnings is under the IFRS basis. So under J-GAP, under the Japanese accounting standard, looking at that perspective, so we started from September 2007. We have been able to be profitable in a single year, and we continue to grow. In February 2016, the BOJ started a negative interest rate policy and went down a bit. But after that, we have started to recover immediately, and we have exceeded the past peak, and we have over $20 billion by now. Going to the Sumishin Net Bank, the deposit balance is 6.4 trillion. We are the number one in outstanding loans. It's 4.6 trillion. Compared to Rakuten, what is the difference? The deposits and outstanding loans. So we are actually a little bit more than this, but this number. So Rakuten is 1.9 trillion in outstanding loans. you can see that the deposit loan ratio is low. So that is the biggest difference. So... So this is ranked from Yokohama Bank of Yokohama. We come in number 17 in terms of the deposits, 6.448 trillion. So this is end of March number. So out of the 74 banks, we are 17. So we have been getting a higher ranking. So in terms of the loans, we want to do the mortgage loans, housing loans. So we haven't given loans to the businesses, entities. So we're focusing on housing loans. So in terms of the housing loans, it's exceeded 6.5 trillion as of the 12th of February this year. On the other hand, if you look at our Nail Bank concept, what is how is this proceeding? We started from Intel, we're going to Hikari Tsushin, CCC Group, E Park Group. And Yamada Holdings, we have been increasing the number of partners. And at the same time, we have been aspiring to become a platformer for the Nail Bank through alliances. So the jail mileage, it has been proceeding and advancing. So the jail housing loan has started. And going to T-Points for the T-Point members, this is the T-Net Bank, bank service for the T-members. So the CCC gives T-money, the T-points. So there are 70 million T-members who use the service, meaning that once this starts in earnest, it will be a major contributor to our business. And Yamada Holdings, again. So there are 60 million of Yamada Group customers. Again, this will be a substantial potential for us. And with the smartphone, you can complete all your banking transactions. And in terms of the account, opening account at the minimum, it will only take three minutes. Yamada points will be accumulated. So this is what we are saying. So from our point of view, this is a very promising partner. Going to the insurance-related businesses, So in terms of the premium returns of the group, it has been growing in terms of the profit level. In terms of ordering profit, it has gone up by 33 percent. Profit attributable to the parent of the company has gone up by 25.4 percent at 1,394 million. It's still small, but the growth is important. And the Kagawa basis is 15.5 percent growth. I think compared to other insurance companies, I think we have an overwhelming growth rate. Compared to the major players, because we started small, they will say that the growth rate is kind of natural. But we will be maintaining this level of growth and then overcome them. I think that's the important point. So please look at this. This is when we started. And back then, and then in terms of the short-term, small-amount insurances, we have acquired those type of companies, and we have been increasing the premium income steadily. So from the end of March 2018 to the end of March 2021, the cargo has been 12.7%. Rakuten, look at Rakuten. So it has been going down. It's minus 8.9%. So March 2021, they had been in the red. LifeNet Insurance, their growth is 17.5%. But they have been constantly generating losses. They had not been established as a business. so we will be focusing on the strengthening profitability through measures to expand the business and promote initiatives to improve the business efficiency and active promotion of mna specifically focusing on the small amount and short-term insurance we have acquired five in terms of these areas will continue to for mna and when we acquire these companies Compared to when they belonged to a group and after they came to a group, you can see that the growth rate is different substantially. So it has been about 20% year over year. But when they entered a group in 2020, they had grown by about 40%. So you can see the growth rate has accelerated for PRISM SSI. So it has been the growth rate about 10%. Once they joined our group, they saw a growth rate of 20%. So the differentiation through further strengthening of synergies within and outside the group and new mechanisms. So when we set up this group, so the business ecosystem was the organization that we seek, thought that was optimal when in this era of internet, and this will be a more advantage for us. So that is the reason why we have set up this organization in this manner. For instance, SBI insurance, if you look at their situation, about 40%, more than 40% is fire insurance application. And that is coming from SBI, Sumishi NetBank. Or if you look at SBI Life Insurance, this group credit life insurance that is attached to the housing loans at SBI, Sumishi NetBank, because they are accelerating this business, that drives our SBI life insurance sales. And if you look at the non-life business, so Innsweb, this is a comparison site. And about 59%, 9.9% of contracts comes from these comparison sites or the insweb. Or we have various agency websites within the group. And about 90% of the contracts comes from agency websites. It means that synergy is being leveraged.

It's not just within the group, but we are rapidly forming alliances and expanding. We have open alliance strategy, which we implement on a group-wide basis. So each of these companies work with different companies, and they build and expand customer bases and businesses. And SBI insurance, life insurance, I think this is quite an interesting initiative. So they have Japan's first joint scheme of credit life insurance, group credit life insurance for financial institutions. And so SBI Life Insurance is one of the founders of Zenkoku Danshin Suishin Kyokai, which is a general and corporate association established jointly by Shimane Bank and SBI Life Insurance. So we started this in January 1st, 2021, and two other banks, Fukushima and Sendai Bank, have also participated. Now we have three additional regional banks, so we have altogether six regional banks, and 13 shinkin banks and eight credit unions have joined altogether. So now the total number of membership is now 27. So it is extremely efficient in terms of business operations, especially for those members. InsurTech. Even in, I think, non-life insurance business, which is SBI Insurance, they have working very hard on this. We have invested in this U.S. company called DataRobot. They have an office in Japan as well. So we form an alliance with DataRobot. to see how much we can improve on inbound call center rate or recommendations on insurance products or automating contract administration or detecting fraudulent billing to do so automatically. And in fact, we have formed an alliance with Albert Inc. We actually invested in this company as well. So in this way, our business in every single aspect implements new technology and realize efficiency and improve customer satisfaction. Same thing as you can read here. With regards to asset management business, It might be quicker if you look at the slide. So you can see that our revenue has increased by plus 20% here on year, 31% increase in profit before income tax expense. SBI Savings Bank from Korea is plus 79.6%. And if you look at Profit loss from the changes in fair value and profit loss on sales investment securities is minus 70.3. Now, like I said earlier, among the public names, they were 8.4 billion. That was negative. And we have Shinsei Bank here in valuation loss of minus 14.2 billion by Shinsei Bank. So this is included in here as well. So we have about 20% or so in equity. which poses us risk. But again, you can also realize large returns. So risk and return is a trade off. So for example, BOJ, the monetary policy changes. So everything will turn around with the changing monetary policy. And in fact, If you look at the asset multiples, what about it? Basically, these are the names it's worth holding on to. They often ask us, what do you plan to do? And I always say this is pure investment. Furthermore, this is net income of SBI Savings Bank. So this year's net income... has exceeded 100 billion Korean won in Q2 for the first time on a quarterly basis. So it's now... So the currency, of course, it depends on foreign exchange rates, but it's about one-tenth, so it's about 193.6 billion won. So this is probably the next largest earners of our business next to SBA Securities. Now, Morningstar, again, their asset business is doing really well. And with regards to asset management business. We have, for example, private equity business here. As I said earlier, we have fintech fund established in December 2015 with 30 billion yen. Our investment ratio is about 20%. Normally, our equity stake is about 20% in general. We have AI and blockchain fund established January 2018. It was 60 billion. SBI 4 plus 5 fund established. Society 5 and Industry 4.0. It's a combination of that. So this was established in April 2020. So we launched these funds one after another. So everything that we have launched in early stage is now in a payback period. We're able to gain earnings, and they're profitable. And so we continue to establish new funds. So once we get the payback and the performance is good, then we are able to pay back or give the returns to regional banks and operating companies that have invested in these companies, and they're more interested in investing furthermore. So they make a lot of money from this. So it becomes easier and easier to raise funds for these new funds. So now we have established five companies that were taken public under IPO, one company subject to M&A, so altogether six in Q2 onward. We have 9, 17, 7. You can see that in Q2, Q3, Q4. So that's what's expected. So altogether for full year in 2021 will be 39. Now, in previous year, it was 22. So you can see that this is changing rapidly. And even after that period, We have much expectations. We're expecting 35 between April, December 2022, 45, 2023, and 36 from 24. So we will continue to see good return and payback on investment, and we will continue to build new funds, establish new funds. So we're in that process already. This is on SBAC. This is growing quite rapidly in the U.S. I think the peak was in March. It fell in April, May. But then again, we begin to see increase around June. I don't think this will decrease so quickly. Wherever we are investing so far, so, for example, this is student loans, personal loans, housing loans, service. As of July 23rd of July, it's $12.6 billion in valuation estimate. And it went public on June 1st, 2021. So this is their valuation. So we're investing as well. So we have now been able to secure a large amount of profit already. And we can secure even bigger profit, which is eToro. This has already been announced in various places. It will go listed in 2021 September. We're looking at a valuation estimate of US dollar 10.4 billion, and we have a substantial percentage in this. So we have venture funds that I have just described earlier, but we also have corporate venture capital fund, CVC fund. I would say we are probably the largest in Japan at 100 billion yen. And you can see a list here and there's maybe one or two that ask not to be disclosed. So we have this is just a part of the example of the companies we work with. And you can see that we have continued to build up and now we have reached 100 billion. In addition to that, we have established a joint fund to support local business. So this is a collaboration again with regional banks. And it was Towa Bank and Tsukuba Bank that have announced this together with us to establish this capital fund. So in three years, the government will suspend its subsidies on interest. And We are investing in venture companies, so we have to look at how we monitor those companies and how to help them grow. And we have a built-in expertise on this, which we can offer to these partners as well. So we are able to monitor them. And that is why we have decided to establish this capital fund together. Now, Tsukuba Bank, for example, Tsukuba is a very interesting city. Tsukuba University is located in Tsukuba area, and you can see they're number four among the number of venture companies that was born out of university in terms of ranking. So this is the largest concentration commercial season in Japan. so we will through this fund support these startups and venture companies that from the universities and this will lead to business and of course this will help develop the local economy as well so this is the reason why we have decided to establish this fund business succession fund accumulative we're planning to achieve 100 billion So we have now number one fund for business succession, and we have two. So number one fund was an investment made in Tokushima Kyowa, which operates a dispensing pharmacy. And today we have completed seven acquisitions. If they were left alone, there would be no business succession, and there was a possibility that they would have to liquidate their business. So we have brought these seven together so that they can increase their sales. So rather than to focus just on one, it was better to be more collective so that they can increase the probability of success as business. So this is the way you need to think in terms of business succession. Same thing with large rice wholesaler. Shinmen Holdings is the largest rice wholesale. And the fund undertook its first investment to a rice wholesale leader, Hamamatsu Beikoku. And of course, this is also related to what will happen to the permanent listing of Dojima Exchange. But The media reports that everything has been decided, but I don't think that issue has not been completely decided yet. It's not finalized. Even if it's undecided, then Dojima will exit from doing any rice wholesale business. So in yesterday's board meeting, we have decided that about Dojima. And today, I believe they will hold a press meeting. Mr. Nagatsuda, I believe, will do a press meeting on this. So with regards to this case, I would say 90% of people were fixed on this, and they said they would not be opposed to it. And so we have decided to go with a permanent listing, but then there was one member of parliament Began to say that I will put my life on the political life at stake to oppose this and for some reason there was a Surmising and by the government each ministry So they have went undecided. So I wonder how long these Parliamentary members continue to do things like this. They think that it's more effective to win election They really need to do is Bring in measures to innovate agriculture if they think about it it's easy to think how what they can what they need to do to um you know win this election in that sense i will not mention the name but there was one a nonsense um parliament member who opposed it so these are sort of I think agriculture is probably the worst. These are the parliamentary members that are very linked to these agricultural policy making. And I think this is an area that really needs reform. They need to really drastically reform agricultural land act. I have been saying this because this is an outdated law that was implemented post-war. And same thing with fisheries rights as well. So all of these things need to be changed. This will lead to modernization of Japan in a true sense. So modernization of politics I think we need to cut off several ties with these members of parliaments who are connected to particular ministries and policies. I'm not saying this on behalf of the company. This is just my personal opinion. But I think I'm always for free and open policies. It's not just one area or region that should be open and free. I think it should be the entire nation that should be open and free market. And I am a big promoter of that. I'm sorry, I sidetracked, so I'm going to move on. This is overseas financial service business. Like I said before, SBI Savings Bank, their overall delinquency related was 51.6% in overall loans in this is 2013. Everyone in the media have really criticized about this shopping as a bad shopping, but now the delinquency rate is 1.6%. And I would say following SBI securities, they bring us most stable profit. So they have transformed like this. And I think this is possible in regional banks as well. The same scenario can be realized with the regional banks. What they need is support, but what's most important is that What we have sought out for this Korean SBI Savings Bank is for them to change their mindset. I believe that that's the greatest weapon to realize this transformation. Regional banks, all the management and employees, they need to change their mindset. And they need to once again... Remember, recall that glory that was lost and restore that. They need to be determined. I'm listening to all the gold medalists who have played in the Olympics, and I was quite touched and impressed. And I looked at these young people, and I was very hopeful about Japan's future. I thought, Japan has a lot of future as well. And I think the same thing with the regional banks. They have potential as well. We invest and they can leverage our resources. You know, Mr. Morita is working his utmost to realize this. But that's how they will be able to transform. And that's like... you know, one light shining over the dark area, and it lights up the entire market. So this is what you have to do in Japan as well. And this is how the regional banks in Japan will change. like Cider Bank in Korea, and they're contributing to the expansion of customer base. They quickly implemented technology and built customer base. They have changed the old ways of doing business before. This is something that I have demanded strongly, and they transformed themselves. Vietnam, FPT Securities, we have an investment ratio of 20%. This is growing rapidly as well. Between January and June 2021, this is $20.7 billion. This is full, you remember, over here. And also, TP Bank. I'm sorry, between January and June 2021, it was $2,065. And now the market cap is $180.2 billion. for TP Bank. This is a bank we have invested early on. And Vietnam is one of the economies in Southeast Asia that is probably will grow most quickly. Young population And because of China's situation, there will be changes in supply chain management, and many of the production bases in supply chain will be shifted to Southeast Asia. And Mr. Vinh, the chairman of FTP, and I are almost like brothers. And he's the chairman of Agriculture Association of Vietnam. In Vietnam, it has a number two producer of cacao next to Brazil. And there's another company that he runs. And he said, can that be gone public in Japan? And he asked me, what about rice? So he has ideas one after another. And I will be meeting with one of the top officials of agriculture ministry in Vietnam. So Japan, if it absolutely is behind, then I will go to these other countries. And that will, in the end result, will be positive for Japan. Here's a Russian bank we acquired, and it's now revitalized. It is now profitable. And you can see that between April and June, it has grown like this. Thai and Cambodia. This is Cambodian bank. So we had acquired a medium-sized microfinance company and transformed it into a commercial bank. And they had written off all the losses and became profitable quite quickly. This is online security in Thailand, and you can see that it is now generating a lot of profit. This is asset management business. I think that asset management... whether it be asset managers or security companies. I think this is an area where Japan is most attractive in terms of market, because there's an enormous amount of personal financial assets valued at 1,946 trillion yen, and 54% of that personal financial asset is among that, and 20% is cash and deposits. BOJ, even though it's negative interest rate, there's about 20% of that cash and deposits of the personal financial assets can be transferred to pension funds. Then if we build a system, can design an incentive to move those funds from cash and deposit, then we will be able to attract money managers from all over the world. I have been saying this from on and off, both to the government and also the parliamentary members.