Sbi Holdings Inc Ord

Please allow me to speak to you without my mask on. Thank you very much for attending today despite your busy schedules and the weather getting a bit colder. Without further ado. I would like to explain the first half fiscal year 2022 concern like they did financial results. The numbers have already been announced, but revenue increased 40.7% year on year to 417.2 billion yen, which was historical high for first half period. The largest contributor was the financial services business. It has experienced a 81.3% year-on-year increase to 403.1 billion yen. So this performance has contributed largely. Profit before income tax expense in the financial service business increased 18% year-on-year to 69.6 billion yen. This is the basis for determining the amount of a shareholder return and the profit before income tax expense was very strong. Therefore, the interim dividend for the fiscal year ending March 31st, 2023, is going to be 30 yen per share as the previous year. As for the consolidated profit before income tax expenses, financial service business performed well. However, in the investment business, the listed company in Vietnam, Taping Bank, we do have the equity ratio of 19.9%. And with a 20% and above, we want to make this company an equity method subsidiary. If that is so, the short-term business performance change caused by the market turmoil can be avoided. However, due to the Vietnamese law, we were not able to do that. Therefore, of course, we have been doing a lot of negotiations behind the scenes, and the foreign-affiliated percentage opened up to 20 percent, and we were able to negotiate to that point. However, TP Bank that holds our shares wanted to make this IFRS eligible, which is going to take quite a bit of time. Therefore, with the large drop in the price, we had to accept that as it is. With just this one listed company, we have experienced a large loss. And it says due to the overseas listed stock price declining in total, there was a value loss of approximately 31.4 billion yen. But out of that, 28 billion was TB Bank. But this was the value loss. And the performance of TB Bank itself is quite strong. And, of course, our ratio, we want to increase it more, and we have no intention on selling it at all, their shares, in addition to TB Bank, the crypto asset business. The first half accumulated basis probably for income tax expenses was 12.8 with the mining business was 7 billion and B2C2 business which is the cryptocurrency marketing business has posted a loss, and those two are the major regions. So within three or four companies, they have experienced a large loss. So as a result, the apparent profit attributable to the owners of the company has declined about 90% to $7.9 billion. The TB Bank, that we are making a direct investment, the fair value loss, this first half was $24.8 billion. And the company that investments is large, which is a crypto asset business, subsidiary company, their posted loss was large. So the subsidiary company lost. So the tax... wise, the amount of favorable tax measures was small. And so saving five basis for four stocks has declined. So in what is happening in the United States, we were able to foresee that the stock market, something would happen in the stock market. But other than that, we have been doing various measures. But despite those factors, the financial service business was still performing strong, so we were able to keep this IFRS basis, a consolidated basis, between April and June. The July and September have shown a large improvement. The reason why we are performing strong is because when we do an Apple to Apple comparison, we compared ourselves with Nomura Holdings, Diver Securities Group, SMBC, NICO, Mitsubishi UFJ Securities Holdings, and Mizuho Securities. When we compare ourselves with them, Despite the last net profit, what is most important is profit before income tax expenses. At that level, how are we performing? We are performing the best. When we look at the quarter basis of comparison, the revenue and the profit for income tax expenses are listed here. Nomura Holdings compared the first quarter, the second quarter, they have made a large improvement. they have slightly higher profit-before-income tax expenses. Daiwa Securities is slightly lower. SMBC, they had various things, so they're making a loss. And compared to Mitsubishi UFJ Securities, we are far better, as well as far better with Mizuho Securities. So looking at the Everlearn comparison, we are competing very well, performing quite steadily.

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As the steady growth area, which is a financial service business, was performing this way. The reason why I have changed the basic way of thinking regarding the business segments is because At the end of last fiscal year, the first quarter, Mr. Katsuki was explaining. In the interim period, I was going to give the explanation. I will do the interim and the fiscal year end only. And the important end of last fiscal year, I did say that I'm going to change the segment classification. The reason being is because I predicted that there will be a large increase in the interest rate and the market itself is largely fluctuate. Therefore, the business segments that generate relatively stable profit, and those that are highly dependent on the market environment and have large performance volatility, and those that are advanced and expected to grow in the future. or a market that's not advanced, or the uncultivated market that we have not entered, the remaining land untouched, all that together we wanted to classify it as the non-financial businesses. And as I have assumed changing this market segment classification, for the investors, it became easier to understand. And as for the management, it has become easier to understand as well. Where we need to focus the most Whatever the environment is, the business segments that generate relatively stable profits, we need to create a structure where we can generate stable profits. Of course, we are a business in making investments, so there are ups and downs. Because if we didn't want to do that, all we have to do is not get involved in that business. And when we think about the future growth, Web 3.0, I did write this in my blog. We cannot ignore this business area. Currently, there's a turmoil occurring in the market. But even though with that situation, if we don't start now, we are going to fall behind the competitors. That is why we are doing it now. Of course, we do understand there will be a loss. The Web 3.0 basic technology is blockchain and non-fungible tokens, NFTs. So these type of domains and DLT, distributed and autonomous organization, the DAO area, these three areas is something that is going to comprise Web 3.0 is my thinking. So within all these elements, though we do have a certain level of the business and investments already made in these I have mentioned by segment sales, sales are 81.3% and year-on-year difference, well, it has grown by 18%. We have landed in this result. An asset management business is an asset management, so of course it's going to be impacted by the market slightly. However, compared to the investment business, it's quite stable. Highest volatility occurs in investment business and crypto asset business, followed by the online financial business. This is the revenue by segment for the first quarter and second quarter. You will see that investment business and crypto asset business under such circumstances will be impacted. That goes for the profit before income tax expense as well. Regarding the dividend, as I have been mentioning from before, in the financial service business, we will aim for about 30% of the profit before income tax expense. Therefore, it is going to be 30 yen. We will be officially making that decision at the appropriate timing. A business overview of the core businesses, financial services businesses, as I have mentioned before. And what are the major constituent companies, SBI securities, SBI liquidity market, SBI FX trade, SBI money plaza, PTS operating companies? Those are included in the securities of business. And how was SBI securities performance? This is under JGAP. It has resulted in this. Within the current market situation, I think they are performing quite well compared to our competitors. For FX, the higher the market volatility comes, it will be making more profit. So under this situation, they have resulted in the record high, which is a 27.8% increase year-on-year. And as for the security subsidiaries in Thailand and Cambodia, as a business, it's performing well. And the first half, Thai Online, the profit for income tax expense was above $200 million, and for Cambodia's Royal Securities. at the profit before tax income tax expenses were 29 million. It is a small amount but it is steadily performing and the market size in these countries are small. And what about banking business? It is under the financial service business as well. When I spoke to you last time, the management resources that we have for foreseeable future We will be focusing on the banking business and non-banking, excuse me, the banking business and non-banking business. So what happens to the banking business? Shinsei Bank Group. This is JGAP. IFRS, it was about $26 billion. To begin with, our financial results became today, and as for today, it will be after 3 p.m. The reason being is because of the Shenzhen Bank. Shenzhen Bank, because they are lagging, we are ready from a long time ago, but we have to incorporate their results, and that's where it was taking time to make this announcement. fundamentally need to change their system, and we need to make improvements that they will be able to make the financial results announcement quicker. That is just the first step at the entrance. A company that cannot do that can't say to another company, if you have to do FX. They have to make improvements as such, and as soon as possible, being able to submit the financial results. Because of them, in various areas, we are negatively being impacted. But put that aside, their performance is in line as planned. Ordinary business profit, $41,528,000,000, 24.2% year-on-year. Profit before income tax and expense, $30,544,000,000, 14.1% increase year-on-year. Profit attributable to owners of the company was $24,895,000,000, plus 7.2% year-on-year. At IFRS, we cannot get a fee up front. We have to level it. So the marketable securities, IFRS, is valued in market value. Therefore, if you convert it in IFRS, it will be more strict and a severe result will come out. The megabanks in total lost 4 trillion yen on bonds. If we can offset that type of a loss under IFRS, we'll be real estate only. But the world is now incorporating IFRS, and if we are going to be playing at the same global arena, we need to change it to IFRS as well. Shinsei Bank, as Mr. Kawashima went over there, this transaction balance... was $4.3 trillion. Compared to Mr. Kudo's leadership, how much has improved? We have improved to a degree that we are able to open up a regional bank in terms of deposit. It has exceeded $9 trillion. Well, the loan-to-deposit ratio exceeded about 80% to begin with, compared to the other regional banks at the level of 60%. They're increasing the deposit, and they should increase the deposit more and more and provide loans more and more. But even though they increase the loans, they have to find... the good loan deals. And Kawashima-san will have to put his utmost effort to find such. And the reason why we are acquiring non-banks is related to this part as well. SBI's Mission Net Bank and IFRS basis showed a 70 percent decline. Only 1.3 billion. However, based on the JGAP standards, 35.8 percent increase year-on-year and 14.3 billion. So IFRS and JGAP, the numbers that will be generated are totally different. Because such things happen, it's difficult to make the financial results announcements. But SBI, Sumishin NetBanks, as our subsidiary company, we have 50 percent investment. And Sumishin has a 50%, so it's a 50-50 joint venture. Therefore, the system is created in a way that can be done quickly. So this is the part thing that is asked for Shinsei Bank to do as well. This number of counts and balance of deposits is steadily increasing. Of course, it does not reach Shinsei Bank's 9 trillion, but it has increased to a level of 7.5 trillion. and the account number of $5.73 million. Shenzhen Bank, moving forward, the issue that needs to be tackled, they need to find prime loan deals. SBI's Mission Net Bank, their largest issue to tackle is its neobank initiatives. They need to bring this to a profit-generating business. At the first half, they have achieved profitability. And the BAS, Bank as a Service, in BAS area, JAL Nail Bank, T-Nail Bank, Yamada Nail Bank, Ochi Bank, Takashimaya Nail Bank, Daiichi Life Insurance and Matsui Securities under the NIO Bank concept, they are heading towards implementing such initiatives. So by generating such results, the Challenger Bank and NIO Bank existing quite unique and aligned with the age bank will be born. And if we want to further evolve this, we need to make this into a digital bank. SBI Savings Bank in South Korea. Marketable securities, they have quite an amount of marketable securities. Therefore, when the stock market goes down, they are impacted negatively in terms of their performance, and the interest margin will shrink. But they are at a high level to begin with, so it's not shrinking at a surprising level. But the stocks that are held by them, the stock price are declining or is impacting them. But IFRS basis, a year-on-year basis, they do have approximately 14.7 billion of a profit before income tax expense. And their total asset has become 10 trillion 229.6 billion won, 1 trillion 66.9 billion yen, and improved their performance this way and have made this bank into the most profit-making savings bank in Korea. And the bank in Russia, SBI Bank, We have shrunk the size in terms of the business size so that we will not be impacted. And in Cambodia, SBI, Liho Bank, two consecutive fiscal years. It is sure that they will have a full-year profit. And the profit before income tax expenses as of the third quarter end of 2022 is 522 million yen. Insurance business, SBI Insurance Group, SBI Insurance, SBI Life Insurance, small amount short-term insurance companies steadily. The consolidated revenue of first half was increased by 9.3% year-on-year to $47,897,000,000. And as for the policies, KGAR, 15.3%.