Sbi Holdings Inc Ord

Thank you very much for attending here. There's about 40, and there's about over 100 participants online, despite your busy schedules and very cold weather. Thank you very much. We have about 170 pages for just the materials, so I would like to very quickly go through them. First of all, the financial results outlined for the six-month period ended September 30th, 2024. The numbers have been already announced, so you have seen the revenue. That's the sale is 676 billion yen, and it is a 17.6% increase. Profit before tax is 78.872 billion, 12.3% increase. Profit for the period is... 60 billion and increase of 24.4%. Profit attributable to owner of parents is 44.726 billion, which is a 20.6% increase. And our financial service business was performing steadily. And the revenue is $621.683 billion. It's a 20.2% increase. And the profit before tax is $104.426 billion. It's a 40.3% increase. Asset management business, $17.051 billion, 21.4% increase. Profit before tax is $3.209 billion, 49% increase. Up to now, all of them are record high numbers. For the investment business, it's negative, 8.5 to 5 billion. And that is because in the middle of the period, if the market goes down, we have the market valuation, so it will go down. So what... has slightly gone down is also included because we needed to evaluate downwards and crypto asset business it has hit the record high is a 1.425 a billion yen it is a 111.4 increase profit before tax next generation business it was a negative 9.256 a billion within here there's all related uh the promo uh side items that are before being disclosed. And the digital area is having a negative impact because we consider it as an advanced investment, and it will require some investment. And for the interim dividend, it is 30 yen per share. We're not going to change the amount for the interim dividend that much. The second half, depending on the situation, if it is performing well, we may increase it. And this is the business overview of each business segment, financial service business. As I have mentioned before, it is as you see. And if you look at our segment and within the financial service business, if you look at the other businesses in this segment, banking business. in terms of the profit before tax has the largest weight by far. About last time when I talked to you, it was at the point where the interest rate was going to increase. Therefore, we are going to allocate our management resources to the banking business, is what I have said. And within that situation, the banking business is steadily producing results, and the securities business had quite an exceptional profit, 18.8 billion. If we did not do the zero revolution, that would have been added. So strictly speaking, because we had the zero revolution, we had to increase the account numbers. And if we subtract all that, we won't be able to calculate. So roughly speaking, looking at the current and we believe what will become a profit before tax. We believe there's about 18.8 billion of incremental. I myself thought for a long time when we are going to implement zero revolution. We have to do it when the market is doing well. If we do it in a bad situation, then the various voices will come up. And I thought that it will be difficult. So I thought if we are going to do it when the market is well, we should do it. And in order to do that, we thought that there will be the exceptional profit that will be generated. And that's why we did that at that timing. Excuse me. There would have been a profit loss, but we did that at that time. And Trump, Mr. Trump was elected as the president. And I believe moving forward, it will be a strong market. And next is the insurance business. We are going to certainly gradually increase it. And it has been growing. And regarding the banking business, currently the Shenzhe Bank Group And SBI's mission net bank, SBI Aruhi, and SBI Savings Bank, and the overseas banks are included in here. As for the SBI Sensei Bank consolidated performance, the gross operating profit increased by 4%. and 140.9 billion. And ordinary business profit is 58 billion plus 8 percent. Profit before income tax is 50.6 billion plus 64 percent. Profit attributable to owners of the parent is 44.3 billion yen, which is a 70 percent increase. And the net profit attributable owners of the parent, which is us, is 44.3 billion which is a 40, excuse me, the IFRS and SBI's intake basis is 48.4 billion, which is 143% increase. And the SBI's Mission Net Bank, The equity ratio, 34.19, were the same as Sumitomo Mitsui. And the ordinary profit and the J-gap is 18.983 billion, which is 16.3% increase. And the share profit investment accounted for using equity method IFRS is 3.206 billion, 97.3% increase. And as for the SBI savings banks, the South Korean economy has stabilized a bit. It is not at a sufficient level yet, but they have a December books closing. So looking at April through September, it is a 112.7% increase, which is 8.949 billion yen per profit before income taxes. And the delinquency rate for the receivables overall has improved from 5.6% to 4.7%. And also, the rating for the credit rating, they have received A, which is a stable rating for three consecutive years. many of the savings banks in South Korea. Why they were impacted is because 2013, when we conducted the acquisition, it's the same situation. They were lending to the developers, and I said they should never do that, and I strictly said that. And I thought that, oh, we're going to lose against them, and please let us do this. This is for sure. The deals The people came to me like that were allowed. But as I was predicting, that situation has happened. But compared to the competitors, our negative impact was quite minimal. And Korea, more than Japan, the real estate business is declining. And for the economic congruence, are supporting the economic economy. And the economic size is about the size of Kyushu compared to us. It is a small economic size, though it is growing. We still have that small image. So if we get involved in real estate in such an economic market, it will not be good for sure. And I was quite confident about that for a long time as a banking business is getting the small amount of deposits. provide a loan to the business that's necessary. And we should not do a real estate business or real estate investments. So it's been 10 years anniversary since we acquired the bank. So in November, well, I'm going to go over there and give them the congratulatory remarks. And they were about to go bankrupt with a default. receivables of 51%. But they made a great turnaround. And even though with the negative economic situation that occurred in Korea, they were able to maintain the profitability. So securities business, as I have mentioned before, so the ordinary income and and the profit attribute to owners of the company is negative. That is because we had to procure the subordinated loans for the non-op and that is why non-op expenses was assessed. And also for The extraordinary losses, it's recorded 2.685 billion. That is because to a provision of reserve for financial instruments, transaction liabilities. But we had 88.1 billion of profit loss, but we have overcome that and became in 1.8% increase. So since the zero revolution, I'm trying to do the overall summary of this business later on. Nomura, Miso, Daiwa, and SBI, you see it all listed like this. And I have mentioned that 18.8 billion, if we consider that, if we include that, we will be second place after Nomura. It's about 25 years since we established this company. We just celebrated the anniversary just the day before. But every other securities company has a long history. But even with that, it's just that we'll see. In time, we will exceed Nomura. Yoshisa Tabuchi, the management person of Nomura that I respect very much. And today was the day, exactly last year, that he passed away. And within the words that Mr. Tabuchi taught me, what always remains in my mind is that business management is the function of time. Meaning that as the time passes by, the number of customers increase, the sales increase. A business needs to be in that way or it is not good. So when you think about these words, The inheritance area, the customers who are over 70 years old, there is quite a portion of that. But human beings sometime will pass away. And then inheritance will be passed on to the son or daughter, the younger generation. And the younger generation are familiar with the internet. If they want to buy the same shares at the same numbers compared to the service that charges you or fee zero, it's very clear. So it is going to be the function of the time. Same for the bank. When the inheritance occurs and goes to the daughters or sons, they will become our customers for sure. The interest is high, so it's quite decisive. It is going to be that way, so please keep an eye on the situation. Just keep an eye on us. Liquidity market, this is FX-related, operating revenue and operating profit are record high by far, and we are now capable of making money. The insurance business, as I have mentioned before, insurance. If the sales force is strong and the more policies they acquire, people wanting to get ready for emergency situations, it has to be posted as a cost. So insurance business cannot be helped, meaning that that's why I started this business at the very last. But once it reaches a certain level, it will be stable and it will become a revenue source. SBI Insurance Group's performance is as written here. This is the preliminary number, but basically it's not going to be that different. And there is the impact of the temporary reversal policy reserves, so it is a decline of 2.5 percent, but it is growing steadily. And total number of in-force contracts, CAGR, is 14.8 percent, and it is showing a growth from 2016. And asset management business. First half, the revenue and profit before income tax, both are record high. And this business as well is steadily growing. And these are the companies that are included within this business. So SBI, Okasan Asset Management, they have joined a group and their performance has changed. And they are doing, putting their full efforts into their business. So if the companies come into our group, like Asakura comes in there, of course everything will be good because it's a Mr. Cost Reduction is what Mr. Asakura is. And next is the SBI Global Asset Management. As you can see, the revenue in... Eight consecutive period of records high operating a profit, 13 consecutive period of records high and a profit after the owners of the parent is 15 consecutive period of increase and the 10th consecutive period of a record high. So you don't see such a company around there. And we have been giving interim dividends that increase for six consecutive periods. So coming this far, I hope that it's better that it continues. So I'm not putting that much weight on the interim dividend, but the investors are putting a certain amount of weight there. So I'm asked that, can you allocate a bit more money to the interim dividend? I hear those type of investors' voices. However, I want to look at the final performance number, because we don't know what's going to happen. The U.S. president is going to change, and the Japan domestic political situation is unstable. And probably the upper house and lower house elections will happen at the same time. So at that time, who is going to be the new administration? There will be no mystery if the current opposition party will become the ruling party. The LDP, the current LDP is not good, is very clear. So SBI Global Asset Management. AUM is a 26.6% increase year-on-year, a total of 6.4 trillion yen. And Okasan Asset Management and they also Hifu Meat, which I mentioned before. This as well, steadily is a growing investment business. The reason why it is a negative number. because there was a change, a loss from changes in fair value. So the 31st or March 31st or September 30th, what was the stock price at that point? It goes ups and downs. But essentially, is there something that is a negative factor? That is not the case. IPO M&A. This is 31 companies' prospects for IPO. We are steadily growing the number of companies. And the semiconductor-related businesses or various fintech or AI-related investments, we are actively making those investments. And towards these companies in various ways, we are involved in their business and wanting them to further increase their performance. This is AUM of the SBI group, private equities. It was 819.2 billion yen.

Moving on to crypto asset business. Up 111.4%. That's the profit. The Bitcoin, the people said that only one day they earned 100 million yen or so after the election in the USA. But we will never know. So this is as much as we are going to invest in this area. The B2C2, there are voices from the UK that the B2C2 will be very profitable, so please pay more capital, but I won't. I'm taking very prudent approach. But for certainty, under the Trump administration, this area is going to grow greatly. Currently, with JFSA, we have filed with FSA cycle joint venture agreement. in Japan, there will be a very strong potential for some aspects in this crypto asset business. And in the context of Ripple, the other chairman of SFC will be replaced with somebody else. And I have some expectation there. Now, the crypto asset business performance, basically, it is upward trend all the time. The overall system is still not established yet. So those companies which are operating in a very poorly way and they could go under and they might have some negative impact on us as well. But once the overall system is well established, such things will not happen again. Next-gen business, setting aside the biotechnology and healthcare, they are doing fine. But the problem is the digital asset, Web3, which are yet to create positive earnings. We will wait and see for a while. And if there is no improvement, we need to replace people. Whatever the business is, it's about people. If you change people, the results will change abruptly. I have observed many, many experiences like that. There are 700 companies. So who should be replaced? Right people in the right place. That is what we need to do. Now, going into the core of this presentation, at the conclusion of the primary actions, we have focused on initiatives for further growth in the future. For a certain period of time, there should be a summary for anything. That's my thought. So we did zero evolution in one year. What is the summary? What is the wrap-up? Or the acquisition of SBI Shinsui Bank? I thought that in three years' time we will be able to pay back the money to the government. And with that, we did TOB. But the three years have almost passed. So to pay back to the government, I think now we have a good foundation. I will touch upon that later in details. So about these two things. Because these things will lead us to the further growth in the future. Those two big events should be successful. And as to semiconductor, I'm hearing many voices. But we invest only 100 million yen in the semiconductor business. So there's no pain there. We would like to bring in the more good players. better players, and there are many other candidates in the pipeline. The other day with Mr. Sun, Mr. Sun treated me, Medina. He said the following, why do you want to buy the global number six or number eight company? It's not good. And I think that for this thing, Mr. Sun is right. In the technology area, especially in the manufacturing area, I don't have experience. Because in the financial world, you don't need such big capex. But when it comes to semiconductor, TSMC, 28 nano or the other 25 nano, these things already need more than 1 trillion yen of capital. And part of it could come from the government, one third actually. But can you survive with that? It started with number six, now it's number eight. And the quarter-on-quarter basis, it is on the downward trend. And the P5 latest product, it is before depreciation. And when the depreciation comes in, that will be the larger negative number. But to be honest with you, I just wanted to discontinue what they had started. I wrote about this on the blog. The governor of Damiage Prefecture. And people in Miyagi supported greatly that initiative, initiative of semiconductor. And the other politicians and the bureaucrats, especially the other economy ministry, Ministry of Economy, they were very supportive. And so I wanted to meet their expectation, especially the manufacturing sector, especially semiconductor sector. It's the rice for the industry. And without semiconductor, Japan will not really flourish, except foundry, where the front end and the back end processes are there. We are strong in chemical, wafer, we are strong in Those raw materials area, the Japanese companies are strong. And also the lithography, whether it is Canon or Nikon, they are catching up with companies from the Netherlands, for example. So this fight, conflict in the semiconductor will be intensifying because the chat GPT is one example. There's huge demand for data center. So NVIDIA, the smartphone companies were the major customers, but now they account for, say, less than 20%, and their major clients are data centers. Four data centers in the U.S. are buying most of the NVIDIA products, like Google, Microsoft, Amazon. Those companies and Apple are buying NVIDIA's products. Are they capable of developing GPU on their own? Yes, they are. Because so expensive, they are paying so much to TSMC. They don't want to do that. So they do their own R&D, and those companies will develop their own GPU. And when that happens, the NVIDIA will not have any orders anymore. Maybe TSMC will remain strong. But the biggest problem for TSMC is that they are located in Taiwan. because there's always blackouts in Taiwan, and earthquakes happen. And TSMC, they seemed to be impacted about 20% of their production. And for TSMC, they have established a very strong factories, but they are faced with geopolitical risks. and the U.S. because they are moving into the production in Arizona or in Japan because of the geopolitical risks. And in Taiwan, there is shortage of water as well. In India, There's no infrastructure there. So Japan is the very limited number of examples of good infrastructure. In 1980s, we had more than 50% of market share for memory. Now, all you need is foundry in this country. not the old kind of foundry, HBM foundry. HBM is embedded in the GPU with logic. And that is not sufficient. Cooling system is very important as well. But it generates the 1,000 kilowatts, the heat for cooling system. And so everyone is buying out power. All the companies are buying power everywhere. So in that Miyagi Prefecture, the nuclear reactor will be online again. The water is good. And in Kumamoto, it will be more difficult because you have to pump up underground water. So if you do it, the principle... is that we do not want to go too far, too deep in terms of capex, because when it comes to semiconductor, it advances so quickly. The situation changes so abruptly. So it's so different from financial industry. But for Japan, it's something that we need. So... We'd like to partner with the best one. And if possible, we'd like to use this location in Miyagi Prefecture. We'd like to please people in Miyagi. I don't know if we can do it or not. But so far, when I want to do something, I always do it successfully. So I will do it again. So 20 trillion yen of assets. And so overseas business, overseas business account for about 12% of the revenue. And I would like to increase it to 20% or 30% in three years' time. The first time in 47 years, I went to Riyadh in Saudi Arabia, B.I.M., Vice Governor, His Excellency visited me. It was a very strong invitation. The other day, they came to, he came to Tokyo, and he liked me so much. And he invited me to Saudi Arabia. And also, I have met many people, visitors from Saudi Arabia, including the princess. Princess, the prince who is number one in the gaming area, His Excellency, not the crown prince, but the prince in Saudi Arabia. In order to expand our business, it is indispensable that That's why I visited Saudi Arabia for the first time for 47 years. There is no direct flight from Tokyo, so I had to wait at the Dubai airport for 4.5 hours. It was so cold because of the air conditioning. I wonder why they have to waste power so much there. So there's another invitation to visit there in three or four months' period. And so next time, the Liado Air will yet to come to Japan several years. So I'll probably use private jet so that I can go to Liado directly. I'm 73 years old. It's so tiresome. And there will be the bigger airport in the South Arabia in the future. I think a long time ago, it was Kuwait when there was the biggest airport, and Tange Kenzo designed that airport, I think. And it was the era of oil. A lot of capital went into the Middle East, and I visited the region every three months. It was so, so hot. So I really didn't want to go to Saudi Arabia, but I did to expand our business. And I'd like to delegate this mission to other people. We want to hire the new people. Now we have the shortlist of two candidates. And in June, they are going to join us, probably, to be in charge of the overseas business. So the 20% of stake of Mainami will be obtained by the end of November. Currently, it stands at 19.7%. This is going to reach 20%. And they are going to be the equity miss of the company so that both entities can grow. Of course, the existing businesses on a long-term basis for financial management Because Mainabi is deeply engaged in the employment, the finding a job, and so that's going to be the good combination. So we would like to increase the revenue, profit. The current level is not so bad either. It might not be as big as the recruit, but we would like to make it as big enough to make lots of challenges. So the summary of SBI securities after one year of zero revolution. 18.8 billion yen of the profits lost. That was recovered by the increase in financial revenue, trading revenues, and other commissions, including advisory fee, bank agency fees. As a result, the profit is on the upward trend in the U.S., Such upward trend. But it was Robinhood markets which did first the revolution, zero revolution. For them, it was easy because as long as revenue from payment for order flow, PFOF, So meaning that we have many clients and there are many orders flow, then you can get the fees from market makers. So it was easy for them. So Schwab did the same, E-Trade and everything. But in Japan, there's no PFOF. It is not allowed to do. And I find it wrong. The system should change. So in everything, we are behind other countries. That is about the other financial administration with TSC at the top. The New York Stock Exchange was operating poorly, but with NASDAQ coming on and something like BDS or ECM, as they call it, Things changed. And that spirit, what is that spirit? That is protection of investors and also the profit of investors. Secure profits for investors, not for securities firms. That is the spirit in the U.S. For example, the president of Batu or the president of Cebu visits me, and they say the same thing. We go to the FSA all the time to make our own arguments. It should be 10% at least, and that's this 10% rule. Where did it come from? It's ridiculous, unreasonable. The story is there always in Japan, so first we need to see changes in politics. we need to renovate financial administration. So, on a quarterly basis, revenue is expanding very smoothly. Since the start of zero evolution, quarterly revenue, on a year-on-year basis, 15.6 percent growth. With zero revolution, the biggest benefit, as I'm going to touch upon later on, is the expansion of customer base. Customer base expansion. In what way? Stable system expansion. is to be established. That's the most difficult one, because the number of customers increases significantly, and 18.8 billion yen of profit lost. How to cover it? And we have been working on that for the past five years, and we're still doing it. And ultimately, PFOF to be established in this market. Then the customer flow will have strong impact on the results. So in one year, the employees of SBI securities increased only by 8 percent. But the volume of services and products increased significantly So as you can see, the number of SBA securities margin trading accounts have increased sharply after the start of the zero revolution. So it was 16.3% increase before the revolution, but after the revolution, 44.5%. So August 31st, 2023, we announced zero revolution. Open interest credit balance The fluctuates depending on market conditions, but the baseline has steadily increased due to the expansion of the customer base. The trend of open interest credit balance and financial revenue is record high, up 33.9 percent year-on-year. And the start of the zero revolution, plus 3.8 percent. That is for open interest credit balance. And the investment trust balance investment trust fees. The expansion of customers and the start of the new NISA combined. So the timing was good. When we started the revolution, that was the timing of the start of the new NISA. That was very important as well. So from the start of the revolution, 69.2% plus year-on-year basis. while only 21.6% increase for the investment trust industry. Investment trust fees record high, plus 43.9%. The employees increased only by 8%. Especially as of the end of September, the quarter-and-quarter comparison, you might say that why the other personnel cost increased so much? Well, because of bonuses. New graduates... The first salary, I think we are the number, one of the best or the best level among the financial companies. We raised it this year as well. And we promote them, their career, depending on the ability, quality, regardless of gender. So from savings to investment. In 1974, I joined Nomura Securities. I have been saying this all the time. And this time only, there is a shift from savings to investment with NISA and IRECO. New NISA, new IRECO, they're important elements. And also, it was a very important factor that we did zero revolution. Accumulation amount and number of accounts with set accumulation. It's an abrupt increase from here after the zero revolution. SBI RAP, this is an automated discretionary investment service, topped $120 billion in AUM in just two and a half years. It is increasing very smoothly. So commission from foreign stock trading, it's not zero. So the commission revenue is increasing, plus 76.7% in the first half for spot trading and for margin trading, compared to first half before the start of the zero revolution, 3.5 times. So here we are gaining commission, and it should grow more and more. Trading revenue... Year-on-year basis, plus 20.9%. The revenue from FX trading and foreign bond sales both grew. This pink area, that is crypto asset trading. And it is now categorized separately, differently. probably we shouldn't have on a consolidated basis for SBI securities, but we thought that data crypt is too risky, negative impact for the zero revolution. SBI liquidity market, which operates FX business and SBI Group, the profitability that outstrips that of its competitors, up 38% year-on-year. The liquidity top customer basis increase and other players are not growing really. And trading of gold, silver and platinum has increased due to rise of geopolitical risk and weakening of the yen. We got the license and we are doing this business as well. As it says, there are precious metals market, the business, which is still small. We need to grow it as well. Zero pollution has greatly accelerated the expansion of SBI Securities' customer base as of the end of September, at 13.315 million accounts as of September 24. From 2009, on a Kega basis, 13.5%. In the case of Nomura, 5.888 million accounts. Keiga, only 1.8%, while WeGrew, 13.5%. Daiwa stopped the announcement. And here, SMBC, Nikko, the friendly securities was acquired, so this is the result. AUM of SBI Securities, 42.7 trillion yen. At the start of the revolution, it stood at 31.5 trillion, so the increase of more than 10 trillion yen, plus 35.6% of the quarterly stock trading value share of SBI securities and three major face-to-face securities companies. So the number of securities that they are taking are the institutional investors. So... They are managing their customers, the money, without thinking about the trading cost. And I would say that is against the fiduciary duty because there is a company which is doing the same thing with no commission. So that should be changed. There are so many things that should be changed. And we have to do semiconductor and others. So I'm overwhelmed with lots of works. But we need the personnel relationships to work on them, so I need to do whatever I can do. If we do all of these things... we will be, well, already we are very highly evaluated globally, and our reputation will be even better. Silver trading value has increased rapidly following the start of the revolution. Individual stock trading value, 57.2%, of which individual margin trading value, 60.7%. Transports of assets between other companies at SBA Securities continue to be in excess of inflows. Since the zero revolution, it's always excess inflow. Through Zero Revolution, a number of NISA accounts, we seek the top position. First, Rakuten beat us. Well, first SBI beat Rakuten, and then Rakuten, the zone credit, worked very nicely, and then Rakuten toppled SBI. But the customers of Rakuten and all their economic zone are almost saturated. It's not about points like Rakuten points. SBI provides multi-points. So wherever you go, well, Rakuten is not included though. Multi-points are the wisest way because there will be no saturation. That's the ABC of business management. So it's just a question of time. It's the function of time that we will beat Rakuten. Expansion of customer base through zero evolution benefits not only SBI securities, but also the entire SBI group. I think. So SBI, the zero revolution impacted so big for all the group entities, and that is making very strong link among the entities, the mutual trust over 25 years of history. So that will have rippling effects.

It has been rippling out, for example, on a group-wide basis. And look at the pace of customer base growth. This is when Shinsaibank joined the group. This is when we announced Zero Revolution. This is the start of it. And this is at the time when the Zero Revolution started. You could see that each milestone or customer base has increased. We have 51 point something million customers. That is the base of the SBI's group. So Shinsei Bank's retail accounts or deposit accounts have been accelerating in growth. Out of new account openings since the Zero Revolution, more than 70 percent of new accounts opened due to referrals or customers being sent over from SBI securities. This is the power of our ecosystem. Twenty-five years ago, I proposed this idea, and we have been working on it ever since. This ecosystem is something I want to make around semiconductors as well. So that is why we've been talking about it. And if we're going to make a semiconductor ecosystem, we would like to invest into venture companies or startups and create an ecosystem made of companies of high quality. So for accounts, We saw 10.6% growth compared to September 23. And for deposits, it has increased by 9.1% since the start of the zero revolution. This is FX accounts. The GMO group made an acquisition here, and this is how they look like. But hereafter, the growth rates aren't that high, but our growth rates are higher, as you can see here. So it has a positive impact on the asset management business as well for each of the funds. You could see the number here, but it's overlapping, so I hope you can change this later on in the Japanese version. You could see that fund balance has been going up by X amount of times, and we've been seeing inflow of funds into this business as well. So now, upon summarizing the year, what are we going to be doing next for SBI securities? Here we show our challenges or what we're working on. You may have realized on TV that we've been featuring Mana Ashida, the actress, in running a new TV commercial. We haven't had commercials before, but it's highly regarded. And Mana Ashida... was popular in the non-life insurance business. And her father works for SMBC, apparently. So the leadership of SMBC was asking us to let them feature her instead, but I declined. So she's a very smart person. And how should I put it? She's a likable and friendly person. She goes beyond generations and has a high acceptance. So the theme is zero revolution, and the theme is creating the future of investment from zero. We have also established a financial education promotion office. As we see new customers come in, we deem that we need to have something like this. And there's more than 650 organizations from inception until October 17th to which we conducted training. So this is what we're working on, branding as well as education. So for the corporate business, we used to be focusing on the retail business. So we're now also focusing on the corporate business. So we would like to grow the corporate business. The first step, like I've been mentioning from before, is focusing on IPO underwriting. So we have SBI investment, and for the companies we invest into, the exit strategy would be an IPO. So then the securities, like of our group, can do the underwriting. And because we have this kind of mechanism, out of the 34 companies that went to market, we were able to be engaged with 32 of the companies. So our underwriting share is 94.1%. So when these companies go to market through us, market cap may be low at the time of the IPO. However, they will entrust us with their assets, and that will increase. Matsushita or Inamori-san's Kyocera are those companies. They went to Nomura before. However, something happened, so they never went to Nomura again. And same thing for Matsushita. They used to work together with Yamaichi. So there might be companies of this nature. So we're basically investing into companies, especially because we make global investments. This will come in handy as the global markets develop. And these days, energy companies or railway companies and their bond issuances are areas where they're asking us to become involved and underwrite because we had dominance in the retail market. So whether it be for utilities or for the railway companies, because consumers use their services, so obviously it's natural that they come to us. It's not just IPOs, but we are getting more engagement in POs as well. Next is M&A. For the M&A business, I used to do a lot of them at Westerson and Pereira, NWP, when I used to work for Nomura. But this was quite complicated because whether they are small deals or large deals, the procedures are pretty much the same. So for the big brokers, they go after the bigger deals because the commissions are larger. But for medium-sized and below, SMEs is an area where people are not focused on. Of course, there are some people who do debt deals, but in our case, We have a good relationship with Tsuji Hongo. So together with them, we have set up a joint venture where we have 51% ownership and Tsuji Hongo has 49% ownership. And this business has been growing substantially because there is a need for M&A solutions for the smaller companies and for accounting and tax accountants, they need them as well. So our relationship with these entities becomes stronger. Next is option trading. I've been saying over and over again that we should pursue this field because the size of the market has been growing larger overseas. And the more uncertain the market is, people go to options. For example, South Korea is a market where option trading is increasing, but it's not the case in Japan. Financial education is not that great here. and it took a long time for approvals to come through for the individual option trading. But in the financial business, when I was at Nomura New York, There was a test to become an options administrator as well as an options manager. All kinds of tests were conducted, and the tests are pretty difficult. But in the case of Japan, there needs to be more things of this nature. We need to have our people study more. So for futures and options, we are focused on expanding the services. It says here, comparing against fiscal 22, 23 second half, we've been seeing it expand by 6.6 times compared to the second half of fiscal 22. Mini options, futures minis have been increasing. So we're currently at 60.6 trillion and 459,000 accounts. But this is a very small number compared to the total number of accounts. So we have to grow this business even more. So we have to talk about how we can risk hedge and talk about its benefits thoroughly and teach our customers. And I think that's the mission that a broker has. IDECO is next. This is the next NISA. So we put on it from early timing. From 2001, we set up SBI benefit systems, and following 401 in the U.S., we have set this entity up. And it took a long time to become profitable, but we steadily focused on this business, and we were able to turn positive, and we made it free as well from 2017, May. So it's individual type, defined contribution plan. That's how IDECO is officially called, although we call it IDECA for short. Going forward, it's not just new NISA, but IDECO will become increasingly important as well. From 2016 to 2024, CAGR has been 47.8%. The growth rate has accelerated. So in the future, When you think about your livelihoods, will you be able to protect your life? I think when I was watching TV the other day, for those people who are pensioners and what they're doing in their livelihoods, I think we are in a desperate situation. When you also look at the U.S., are they in a good situation? Whether you look at LA or New York, we have been seeing a surge of homeless people because of inflation. It has become more dangerous, and there has been illegal immigrants coming into the country. So it's pretty much a matter, of course, that Trump won the election. I don't look at news on CNN or other major media channels because they're lying. I knew 100 percent that Trump was going to win, and I projected that from an early stage. And major university professors in Japan, what they're saying is nonsense. I really question why these people are serving as professors because Trump won and at that moment they were still saying, we don't know, we don't know yet if he's going to win. No, we did know he was going to become the president 100%. So really, their education levels are really low and I was really surprised to see what was happening. So when you think about it, who thinks Kamala Harris is going to win? If you are a decent person, you probably wouldn't have thought so. When you line up what four media outlets are saying, the location may have been different, but what she was saying was the same. She was basically reading from script. So that kind of person will not be a president. In Japan as well, There were some people who abided to certain wise words from the past, but I question those people. People need to speak in their own words if you want to become president. You need to have the skill to think with your own brains, on your own feet, absorb knowledge, have a big picture in your head. If you don't have that, you don't have the certification to become a president because you are going to be held responsible. So ADECO growth, we have been by far number one in growth. So in October 2018, this was Tokyo Marine actually, but we exceeded them back then, and we have been growing ever since. So this is something we would like to focus on even more. This is for the sake of the Japanese people. under a zero interest rate environment. We used to be in a negative interest rate environment. And 54 percent, if it's still held in deposits, that's nonsense. And during that time, the U.S. market was rising. And for 30 years, real wage hasn't went up by a cent. We need to question this. The people of Japan needs to question this and change the leadership of Japan. Improving prices through use of PTS and dark pools. We need to constantly fight with the TSC. This is basically an alternative trading system. And for dark pools as well, we need to grow this even more. In the U.S., it is continuing to increase in share. And within SBI securities, the PTS ratio We need to do more. This needs to go up to about 40% to 50%. That's what I'm telling my people. It needs to continue to go up. And SOR, smart order routing. How can you get the best quotes in your execution? You need to have this happen automatically. That will reduce the transaction costs. and it directly connects to fiduciary duty. I would like to tell the institutional investors that it will be a crime if they don't pursue this kind of path. SPI Cross, this is a spot trade matching service for domestic stocks. By having this service, you'll cover four markets more, TSC, JMarket, XMarket, which are PTSs, as well as another ODX, Osaka Digital Exchange. And on top of that, SBI Cross, you'll be able to execute orders with the best terms for the customers from four markets and SBI Cross. and payment for order flow at an early stage. We are poised to implement this, and I will be working against politicians as well. Recently, my voice is being heard amongst the politician base. I was supporting him during the election, and he actually thanked me after the elections. And he also said that he will come and thank me in person in the near future. I think for the LDP, He is a necessary person to rehabilitate the LDP, and that is why I mentioned him by name in my blog to show my support. We have 1,500 investees, and there's many management among the 1,500 companies that we invest into. And there are companies that are residing in Hachioji, his voting base, and we had our people count how many employees live there. There were about 200 to 300 people. I didn't directly say to them to vote for Mr. Hagiuda, but I just wanted to know how many people are in that region. So I had the HR people count. We have 19,000 people in total. So the 1,500 companies and our skill is quite different. However, they were supportive. Mr. Kondo from NEXIS really worked hard to show his support. And even before me, before I wrote my blog, he also was working on many things in order to support Mr. Hagiuda. They have a passion leader meeting, and he heads the SMEs that is comprised of 3,000 companies. And he had a meeting. We need a person like Mr. Hagiuda, or else I am apprehensive about the future of Japan. We can't continue to have generation-based politics. The Minister of Medi, Mr. Saito from the past, was a very confident person. Those are the type of people who should be at the top. And Mr. Gaichi, She's a little tilted in her philosophy, but I had dinner with her several times, and she is a very competent person. And she was also in the technology space in the past, so she is very knowledgeable. And I think she's a hard worker, and she studies a lot. So people who are knowledgeable and people who have an ideology, as long as it doesn't contradict, I think that's very important. Since the acquisition of Shinsei Bank, we've been concentrating our resources to Shinsei Bank. We announced that in May 22, and SBI securities used to be our focus. But since then, we decided to concentrate our resources into the banking area. And we actually changed the order of how we report. Banking is now first. It's not that we're neglecting the securities business. But from here on, as interest rates are going up, we believe our focus should be banking. So this slide, our total assets are shown here. We have banks across the world. We're at 32 trillion, 588 billion. So this grew by 48.4 percent compared to when I made the announcement in March 22. So SBI Shinse, when we bring the people over to Singapore to lead the business, people who are originally from securities, investment, and banking, what we're doing right now is we are reallocating people. For example, in Vietnam, ownership is 20%. However, it has a value of more than 50 billion because it is listed. You probably are not aware of this. There was all kinds of lies in this really bad magazine about the fourth mega bank concept. All wrong. Those magazines. I really hope you don't believe what they say. The only thing you should believe is my words. So three-year summary of SBI Shinsei Bank is shown here. First, at the time of the acquisition, we announced a midterm management plan in May 22. So the financial targets are broadly achieved. In three years' time for public funds, I mentioned that we would like to prepare to start returning funds. And Mr. Kawashima became the president of SBI Shinsei, and he only took another person. The rest of the people were originally SBI or Shinsaibank employees, so executive officers, executive leadership. I talked with them over and over. Mr. Kawashima personally engaged, taught his people how to engage in sales, and he is a person that I have trained for more than 30 years. So, truly, I think he really worked hard. And Shinsei Bank is working on integrating with SBI Securities or SBI Group. And as it pursues that, it has changed dramatically. not just Shinsei, but Shimane Bank as well. Before we made contributions in the second tier banks, it was at the very bottom of the ranks, but now it has went up the ranks. It's about mindset change, have a strong determination, Dr. Yasuoka's word is what I have been communicating. I think there is two books and sending over those books and Sontoku Ninomiya's movie. I'm sending over copies of the DVD is what I've been doing in order to promote mindset change amongst the management. So that is what I've been doing for the past 25 years. And that is why I've been able to establish a group comprised of 50,000 people. And I think what I've been doing over the years has been right. By just sending two people from our group and centered around SBI securities, as we promoted integration with the SBI group, Shinsei Bank changed dramatically. However, there's still much to do. For the medium-term management plan, when we made the announcements for March 25, we set the target of reaching $70 billion. We're currently at $44.3 billion, but if you double it, it's exceeding $80 billion already. So we are sure that this $70 billion can be reached on a consolidated profit basis. And also, regarding synergies with the SBI group, our target was $15 billion, but we're already at $12 billion at the half-term of the year. So there is some reference material about the details. I hope you can take a look later. Or look at the number of accounts and deposits. For retail accounts, we're currently already at 3.8 million was the target, but we're already at 3.66 million. As of end of September, we were at 3.66. And before it joined the SBI group, The accounts were not really growing, but ever since it joined the group, it has gone up substantially. And look at the amount of deposits. It used to be 6.5, 6.3. In a kudo, a former administration, it was only, it was lackluster. But now, as of end of September, we reached 12.5. So this is a fact. And I threw away the magazine that was telling all these lies and I told them never subscribe to that magazine again because it was nonsense it was bad for my eyes and mentally it just made me really mad and angry so I decided not to read it ever again so that I could feel peaceful and calm at 73 years old however I am ever so motivated when I see those things because I'm a fighter. I have a fighting spirit. So Xinsui Bank's operating asset balance at $12.7 trillion. Before it joined the group, it was at $8 trillion. It was hovering around that level, but it continued to grow, and we're here right now. The balance sheet. In just three years, we have been seeing an expansion substantially. $12.5 trillion is deposits, and it's balanced between individual and corporate deposits. Individual deposits increased by $1.3 trillion compared to March 22. Corporate deposits increased by $4.8 trillion compared to March 22. So I often say to my young people, when you're looking at companies, you shouldn't just look at their income statements, their P&L. You should look at their cash flow statement as well as their balance sheets. That is how you should assess companies from every angle for SBI Shinsei. They have been making great strides in improving themselves. So this is the trends of cash flow. So they joined the SBI group and this is how they look like right now. So this is the integration strategy.