Sbi Holdings Inc Ord

We have about 170 pages of materials, so we will just skip some pages only of figures. We'd like to finish this briefing in less than two hours. So it's about the results announcement, but I know many of you are here for other purposes. But basically, this is the briefing of the results. So that's what I'm going to talk about first. So for FI2024 consolidated results, the revenue, 1,443,733,000,000 yen or up 19.3% year on year. By the way, our consolidated results are on the IFAS basis. So the pre-tax income was the 282,290,000,000 yen or up 99.4%. And the net income for the period, 189,158,000,000 up 66.5%. and the property attributable to owners of the company, 162,120,000,000 yen, up 85.8%. Our other E, exceeding significantly our target of 10%, reaching 12.8%. This is up the up. 5.8, the percentage point. This is the comparison Apple to Apple among consolidated profits among major securities companies. The number is still ahead of us, but we are ahead of diver securities. It will be rather difficult. It's strange to talk about the winner or losers, but the other SMBC, NICO, and UFJ numbers are shown here. Now, by segment, the biggest segment, financial services business, 1.2 trillion yen, and we have the profits of... more than 30% up with the 225,369,000,000 yen. And the asset management business, the income, the 5,447,000,000 or up 12.5%. And the PE investment business, which used to be the investment business, it's just a name change. And here, the other pre-tax income increased with 67.1 billion. And the other crypto asset business, finally, we hit record highs both for revenue and the other profit. The revenue is 80,797,000,000. And the pre-tax income, 21,220,000,000 Yen. or up 151.8%. Next-gen business revenue hit the record high, but the tax income is still in the red. The five-dollar business is already operating in the black numbers, so they're targeting at the IPO. As to the next-gen business, when it comes to Web3 business, it's still running in the red. And the dividend, up 10 yen year-on-year. And in the last year, we had the 25th anniversary since the company's founding. So 130 yen. And for 2024, 140 yen. The full year is 170 yen. Payout ratio is 31.7%. Basically, a company's shareholder return idea is as follows. The financial services business is growing relatively steadily in manner. And without the extraordinary factors such as gain in sales of subsidiary stocks, we set the total shareholder return ratio at 30%, and the absolute amount will be 51.5 billion yen, and minus 168.7 billion yen, these are the special factors, and the The result is 30.5%. The shareholder benefits, as you can see here, it's a very generous benefit for shareholders. The especially interesting part is this is what Asakura-san started to do, XRP. You can choose XRP or Fibala. If you have more than 1,000 shares and for more than one year, then 8,000 yen or so. If not, 2,000 yen. As a result, if you get XRP, then on the weighted average basis, because we provided XRP five times, and then the value is now seven times than the acquisition value. So it has produced very strong results. So by segment, financial services business, as I mentioned earlier, the revenue increased by about 10% and the pre-tax income, 225,369,000,000 yen or up 30%. In this segment, especially banking business, grew very steadily up 34.6% securities business. As you know, with the other zero revolution, even after that revolution, the revenue and profit have been growing. everyone is making a concerted effort, and I'm evaluating the result very highly. Insurance business, it just happens that the pre-tax income is down 9.7%, but for FY 2020, sorry, because of the special factor, because of the selling of the past assets, which amounts to 1.1 billion yen, and it was the booked, in the first 2023. So basically, the profit is increasing. The banking business, SBI Shinsei Bank, SBI Mission Net Bank, SBI Alihi, and other overseas SBI entities. Here, as you can see, SBI Shinsei Bank on the J-GAP basis. Revenue up 11% and ordinary business profit exceeding 100 billion yen mark significantly with 130 billion yen up 27%. Pre-tax income 99.4 billion up 58% and net profit attributable to owners of the company 84.4 billion yen up 45% on IFAS basis. The SBI holdings intake basis, 82.1 billion yen, or up 44%. SBS Machine Net Bank, our equity is 34.21%. On the JGAB basis, ordinary profit, 38,190,000,000, or up 9.6%. And our IFAS intake basis by the holdings, The 6.4 billion, 36 million or up 44.3%. SBI Savings Bank in Korea using IFAS basis, up 45%. As you know, the Korean economy is damaged. quite significantly. In addition, Trump's tariffs, they will be added to that. But we could increase IFAS pre-tax income by 45%. Why is that? Because the prohibited to make any investments in real estates because I know that I assume that in Korea such investment will not bring about good results. So this is a good result and other savings banks were damaged by such investment. And the delinquency, 4.6%, down from 5.6%. Equity ratio hit the record high at 17.81%. Financial services business, the securities business, SBI securities, SBI liquidity market, SBI FX trade, SBI money plaza, PDS operating companies, and overseas securities subsidiaries. Passing on the Jacob basis, SBI Securities. Operating revenue, which is the revenue, up 17.4% at 238,867,000,000 yen. And the operating income, 77,128,000,000, up 12.3%. Ordinary income, 76,625,000,000, up 10.2%. Property attribute of the owners of the parent, 47,865,000,000, up 1%. achieved the record high profits despite external losses of $7,200 million during the second quarter to the fourth quarter due to provision of reserve for financial instruments, transaction liabilities. Without zero commission, what will be the result? about 38 billion yen or so in addition to the revenue as well as to the profit. So what has covered that shortfall? That is the diversification of the revenue sources. It more than compensated for the other lost opportunities. And of course, we still commission that we saw increase in the number of customers. And some customers, number of customers doing margin trading will increase in financial revenue, trading revenue, as well as commissions will increase. And so with that, we could maintain the upward trend of the profit, the open interest, the credit balance, and the financial revenue, as you can see here. So it went down below the 2 trillion yen temporarily, but as of the end of March, it went up. over $2 trillion, and for the financial revenue, $24,711,000,000 for the post-quarter, and that is a 31.5% increase, and the Commission income from foreign stocks reached a record high with the very brisk tradings. As you can see, up 52.2% for spot trading and 2.3 times for margin trading and trend of commission income foreign stocks. With FI2023 being one, it went 1.43 for FI24. The trading revenue especially affects trading. hit the record high at 57 billion 450 billion yen. With the revolution, we saw increase in the number of customers, FX-related customers increased as well. On the left-hand side, number of accounts among five major FX trading companies, SBI Group number has been increasing steadily. And customer margin deposit among FX trading companies, GMO, seems to be increasing as well. But as you can see, GMO Click Securities, GMO Geica. And in September 2021, the formerly Geica EX by GMO, who joined the GMO Group in September 2021, that is GMO Geica. and the combination of those numbers of those entities. That's why they saw increase. And here, the investment trust fee increase hit the record high and the investment trust fees as well. IPO underwriting share. And from April 24 to March 25, there were 83 companies IPO'd and we participated in the 76 cases or underwriting share of 91.6%. It has been at the top ranking for three years and the PO underwriting business is also increasing with 18 PO underwritings and the utility bonds. It is also increasing that there are some references coming to us, insurance, the business group, SBI Insurance, SBI Life Insurance, small and short-term insurance companies, and SBI Insurance and Kyobo Life Insurance. This is the latest deal with our equity of more than 20% equity method company. And before that deal, we already hit the record high for ordinary income, ordinary profit, and profitable to parent of the company as well. As to the number of enforced policies, from the March end of 2016, we saw 15.2% CAGR to the latest number. As to the asset management business, SBI Global Asset Management, SBI Asset Management, those are the advisor, SBI Leo Sohihumi, SBI Okasan Asset Management are included here. The revenue hit the record high at 33,811,000,000 yen, up 14.8%. Pre-tax income at 5,447,000,000, up 12.5%.

So, consolidated results of SBI global asset management on a JGAP basis is all here. All were record highs for revenue. We saw an increase 13 consecutive periods, achieving a record high for the sixth consecutive period. an ordinary profit increase for the 16th consecutive period, achieving a record high for the 14th consecutive period. This doesn't happen for many other companies, so the asset-managed business is doing well as well. SBI Rios Hihumi and SBI Okasan Asset Management are also performing well. SBI Groups AUM breached JPY 10 trillion yen We are targeting an AUM of 20 trillion by the end of fiscal 27 through organic growth and M&A. We are determined to achieve this target. For the PE investment business, private equity, like mentioned earlier, profit before income tax, It was $67,188,000,000 because of the increase in unlisted securities. Ripple Lab is held as unlisted shares. The value of XRP held in XGRO by Ripple Lab will not be included in the corporate value until a clear valuation is determined through an IPO or other means. If it is included... the profit will surge and will be an extraordinary amount. Later on, I would like to talk about this a little more. For IPO and M&A track records, for fiscal 24, there were 20 IPOs. For this fiscal year, we're planning for 25. So assets under management for private equity was approximately $900 billion. We would like to bring it close to $1 trillion as soon as possible for the crypto asset business. Like mentioned earlier, this is a record high in performance ever since Mr. Trump was inaugurated. The US has been putting a lot of emphasis on the crypto asset market, which we are grateful for. I was expecting this to happen. sooner or later. So the reason why we invest, that we did invest into Ripple more than 10 years ago, which is now generating a huge amount of unrealized profits. If listed, the unrealized profits are going to be unlocked. And I'm sure that it will easily exceed 1 trillion yen. So this is something that may happen And for profit before tax, it was $21,220,000,000. So for the crypto asset world, if it were to expand, we will see more distribution. And the market makers for crypto assets are going to become necessary. I thought it was a little too early. to advance into these segments, but it wasn't. So we only invested $9 billion in acquiring a company called B2C2 in the UK. And there are several companies that want to buy it for more than $100 billion. And people were saying that we were keen to sell it to Bloomberg, but no, we don't have any intention to sell this entity. For the next generation business, for five ALA-related businesses, it has secured a profit. And in cutting-edge technology areas as Web3 and digital assets, some Machinowa holdings started to secure a profit. This is with Kyushu Electric Power Company and Chikuhou Bank. It is a JV. It started from Kyushu and is rolling out its operations nationwide. So nationwide, these regional currencies, we are striving to expand the number of currencies, as well as the Expo as well. So from here on, I would like to talk about our new medium-term vision, as well as the measures we are thinking about in order to realize this vision. So the vision for the 30th anniversary of our founding, new medium-term vision targeting fiscal 28th. is the title. So as of March 2019, we were at our 20th anniversary, and as of March 24, we were at our 25th. The customers base for the group doubled to 50.5 million. Net sales increased by 3.4 times. Number of employees were 6,439, but increased by three times to 19,097. Number of consolidated subsidiaries used to be 259, but went up by 2.8 times to 721. Number of listed group companies went up by 3.6 times. It used to be 5, but increased to 18. Paid in capital. At the time of founding, we started with a mere 50 million. At the 20th anniversary, this increased to 92 billion. And at the 25th, it doubled to 180 billion. For net assets, we reached 1 trillion 262 billion, which was 2.8 times more. And for market cap, 1 trillion 192 billion, which is twice as much. For market cap, from my point of view, it is so cheap. People do not understand our company. That's how I feel. Because our business is developing so quickly and all types of formats as well as financial operations are in our group. There aren't. as many people who understand our operations, even our employees do not understand our entire business. So maybe general investors do not understand our business perfectly. Not many people understand us that much. So for the customer base, we are at 54.42 million. And the number of customers continue to increase. So regarding our vision for our 30th anniversary, for KPIs, for the customer base, we would like to reach 100 million. And for consolidated profit before income tax expense, from 282.3 billion, we would like to increase it to 500 billion. The share of overseas business in consolidated profit before income tax expense, from approximately 17, we would like to increase it to 30%. For ROE, like mentioned earlier, 12.8% are our results, and we would like to increase this to 15%. So this is our new midterm plan vision. So for the 20th, 25th, and 30th anniversaries, for the customer base, it has been growing by 100%, and we're assuming that it will grow another 98% for the 30th. And for consolidated profit before income tax expense, It grew by 70.5%, but from the 25th to 30th, we expect it to grow by 253.2%. Considering our earnings base and customer base, as well as our funding capabilities or our unrealized profits, when you think about all these aspects, I think it's going to become far easier to grow our profit base even more. The share of overseas businesses and consolidated profit before income tax expense From approximately 22%, we would like to increase it to 30%. I think we are going to enter a full-fledged expansion phase for the overseas business. For ROE, we are striving for 15%. So I just talked about the new vision. How are we going to realize them? What are the key initiatives? First, we need to have a good foundation or else. So for this foundation, it's the customer base that we've been expanding so far, the business assets and financing capabilities built over the years. And by fully leveraging the evolved ecosystem, the SBI group will strengthen its business platform. For the digital space, as a new platform, area, we are starting to see more expansion. By leveraging digital technology, we would like to promote various measures and create a digital space ecosystem. In order to promote the measures, we will focus on securing the talent necessary as well. So point number one. So like I mentioned earlier, by further expanding the customer-based business assets and financing capabilities built over the years with the evolved ecosystem, we would like to fully leverage it. By expanding alliances and driving M&A both domestically and internationally, the SPI group will build a dominant customer base. So how are we going to reach and achieve 30 million securities accounts? This will be our first target. The key is going to be reinforcing our existing alliances and approaching customer bases of various levels. This is very basic. And also, strengthening our overseas business foundation and responsive tariff policies initiated under the Trump administration. That's number two. Number three is the SBI group strives to build a neo-media ecosystem that combines media, IT, and finance. So to achieve 30 million securities accounts as early as possible, there are four things mentioned here. But as you can see here, these are the efforts we're going to engage in in order to reach 30 million. We get this zero revolution. And we have a dominant amount of security accounts now in the industry. So we exceed 14 million already. Nomura is at 5.925 million, which is less than 6 million. So our growth rate, CAGR, is 13.5%. Every single year, our accounts have been growing at this pace. Nomura's CAGR is 1.8%. Also, our market share has been expanding as well. It has increased this fiscal year as well. The share of individual stock trading value is 56.2%, of which share of individual margin trading value is at 59.4%. So when you add individual institutional investors, we are inferior to Nomura because Nomura is 21.8% and we're at 15.1%. When you look at Nomura, it has surged up, and institutional investors tend to be volatile, so sometimes we see fluctuation like this. So that's the reason why. Achieve organic growth by expanding product lineup, continuously improving services, and creating a safe and secure trading environment. We have A through E. So I'm going to briefly go through this. Expanding the lineup of investment trusts exclusively sold by SBI Securities. Putting effort into alternative investments is what I've been saying. And therefore, from the UK, there is Man Group. And starting off with our partnership, we have been engaging in other JVs like with Franklin as well as KKR. It's because Alternative is great, and it has been proved this time around. The Nikkei went down by 4.8%, but Alternative went up by 5.7% in performance. And net assets have reached $17.6 billion. Alternative products are not well understood, and the fund management is not well understood either. However, we are still at net assets of 17.6 billion. So we would like to market alternative investing even more in the future because market volatility is probably going to enhance. That's what we predict. So because we are in these times, there are two ways to think about it. One is alternative products, and number two is hedging. investing into alternative and number two is hedging. For example, using the forwards market or the options market to do hedging to defend your investments. For Japanese people, they're not really good at doing this. For a long time, Actually, it's not that they're not capable, it's that it was restricted. So I would like to say that it's all about options, that you should do it. And I've been telling Takamura-san to do it for the last three years. That's how much option trading is important. For South Korea, for example, there's a lot of option trading going on. When I was in the U.S., I really felt that it's going to be an options age. And after I went back to Nomura, to the corporate division, Kawashima-san knows well that I was able to make a lot of money out of options in my position, including swaps. So it's a very important thing. It's so easy. But why don't people know and understand? I'm just amazed. It's because the brokers have not enlightened customers about it. So we need to do more activities to have people be better educated on this. Quarterly distribution fund. I also invest into this. It was Asakura-san's idea. So it starts from January, February, March until December. As long as you buy these three funds, mainly which are high dividend funds, you will constantly be able to receive dividends that exceeds your investment costs. With asset building for retirement attracting attention, On this topic, when the market starts to fluctuate, people start to become depressed. But now is actually the time to start IECO. From an early timing, we did corporate type DC as well as IDECO. So individual DC and corporate-type DC, we have been in this business from long ago. From 2017, May the 19th, we have made the administrative fees for IRECO completely free of charge. Reason being, 401K in the U.S. has grown so much, and NISA has grown so much in the U.K. I've been watching these trends all along, when I was in the U.S. and when I was in the U.K. Because I lived there, I know what was happening very well. So I really understood the importance that we need to do this in Japan. So even though we had to start off as a loss-making business, I started it. And finally, it has turned into a profitable business, of course. For the individual defined contribution customers, we are the industry leader.

And we have contract for difference area, which we see significant growth, CFD. From the end of August, we will begin as a new service. And I've been urging people to do this as quickly as possible. People are worried about the system, but I tell them to hurry. And if they do as I say, they will be profitable and it will be beneficial for investors. And I am confident about that because I have been in this industry for more than 50 years. In U.S. and Europe, I have watched and seen those geographies as well. I have experienced more than anyone else. I think I can boast about that. So I say it. So just follow me and do as I say. There's no way to go around it. So this is UIUIX. This isn't something that we old guys shouldn't do. We should just delegate it to the young people. And I've been telling Takamura about this, to switch the development by younger generations. Because here's me, you know, this is how I use my smartphones. And you have people who are using smartphones in a completely different way. They're young people. And you can just tell that just by looking at it from experience that they would do much better. This is response to phishing scams. Because of the increase in NISA, we have seen increase in phishing scams as well. We will thoroughly implement multi-factor authentication. We will implement any measure we can implement on the system to prevent this. So Mr. Takamura is working on this. We will take initiatives to achieve 30 million securities accounts. Let me give you more detail. So we will focus on selling new products for the digital age. So we have securities and bonds, which is of the Stone Age. That's the end already. We need to shift to digital. So that is why in Osaka... I have created security token SD market, Osaka Digital Exchange. This is the first secondary market for SD in Japan. For futures, for example, the rice futures, it has started in Edo period from the age of the eighth shogun, Yoshimune. And there's someone who's stupid enough to stop this futures transactions. We need to revitalize this because of this rise scandal that we have seen these days. If we have futures market and if we have the actual cash market, we would have not had this kind of a turmoil. But they're talking about, you know, you know, J.A. and how it's not being penetrating to the consumers. You know, how much stockpile do we need to release until we're able to reach to the consumers? These consumers are crying, screaming that there's no rice. I'm getting all these different ideas as I listen to the news. In New York, I've been eating rice from the United States, and it's very tasty. I think So SD market is growing gradually, and we have bond market, real estate market, where we have utilized SD. So each company are starting off from real estate, but all the real assets, all the real world assets will be tokenized in principle. So the tokenized economy is a common sense, especially in the United States. You will begin to see that. The SBI Global Asset Management Group is working towards offering digital asset-related products. We're trying to leverage this as well. Why? Because the U.S. Treasury, which used to be considered as a safe haven asset, could become risk assets. I don't know if it was China selling, or I'm not sure if it was agricultural... financial institutions that have been selling it off, but we have seen the markets plummet in the United States and interest rates rose sharply, the yield rose sharply, and Mr. Trump couldn't stand this. And even in Japan, Mr. Kato, when he decided to implement this measure in Japan. And on the next day, I'm sure he got in trouble in the United States, so he withdrew that measure. But that's not the way to go about in negotiations. This is cryptocurrency ETFs. In January 2024, SEC approved the listing of 11 spot Bitcoin ETFs in April 2025. The total AUM for these 11 ETFs surpassed US$100 billion. or Japanese yen of 14.7 trillion. And we have seen listing in Canada, Europe, Hong Kong, Brazil, Thailand. Why not in Japan? FSA is slow. They should not be so complacent. We will be left behind. So post-2024, SCC approved the spot Ethereum ETF. And finally, we have our spot XRP ETF. The world's first was approved by Brazil Securities Exchange Commission and began trading on April 2025. And April 2025, multiple XRP futures ETFs were approved by SCC. And with regards to spot XRP ETFs, several asset managers have completed their application for listing. So that's how the world is turning around, too. So if we sat there and became spaced out, that we would be the end and my end maybe is coming towards the end and so I'm getting old and but I'm still working hard for the Japan for the Japanese investors and also for the world I am still working because I have that passion ambition how could anyone talk for two hours without looking at any of the script or notes So I think the Japanese management, the executives really need to buckle their belts. This is Franklin Templeton. This is an asset manager that has an AUM of 1.5 trillion. The CEO is a woman. She's an excellent CEO. And we have gotten along well. So we're currently preparing to develop collaborative products that incorporate digital assets, including security tokens, such as investing crypto assets. So, Franklin. has already, and this is subject to approval by the Japan's FSA, but Franklin Temple Loans listed Bitcoin ETFs and Ether ETFs will be launched and offered in Japanese market. And we're still preparing the investment trust incorporating cryptocurrency. Again, crypto assets should be positioned as an alternative asset. And what we see as a proposed product is gold and crypto assets. We talk about digital gold as crypto assets. So we have both types of gold. The allocation will be 51% or more of the gold ETFs, and then the rest will be 49% or less in crypto asset ETFs, such as Bitcoin ETFs. So this is the product proposal. I think this is a good combination, very good combination. So another initiative to achieve 30 million accounts, expand the open alliance based on or depending of existing alliances and collaborate with new alliances. So we have win-win relationships in and outside of the group through open alliances. And we are already in discussion with different topics with multiple companies. So we will continue to deepen our alliances, and this will lead to increasing customer base. So this is a win-win. And Open Alliance has contributed to the expansion of SBI securities customer base. Number of accounts acquired. If January 2023 indexed as one, then you can see this line and bar graphs, 48.4%. This is alliance ratio. So this is a customer base. generated from the alliance is 48.4%, which means half is based on alliance. And we have multi-card strategy through open alliance strategy. So we have Mitsumitomo Mitsui card, Takahashi Maya card, so altogether a total of seven credit cards for investment trust accumulation. And We have seen year-on-year growth of 28.8% amount accumulated through regular investment truts. And we have We have 1,585 number of accounts with regular investment plans. And now this is the multi-point ecosystem. Rakuten has had its own ecosystem, but we don't want to be obsessed with just one card. We did discuss about SBI card, but we decided that's not the way to go about it. We want to build a multi-point ecosystem. So we started with gel mileage points. We have Tokyo Point and we have PayPay. And, you know, we want to make sure that people are able to save points by opening accounts, buying and holding products. And then we also want to make it so that they can actually purchase financial products like V-Points and Ponta Points. And the collaboration between SBI Securities and SBC has really brought about a great result. SMBC has developed Olive. Mr. Ota, who has passed away, has put a lot of emphasis on developing Olive. And the current CEO is also focused on this. And they want to really foster this, really make this bigger. So this is SBI Group's passion, too, as well. In Demary, accounts via SMBC Group exceeded 1 million accounts in March 2025. Monthly amount of savings set aside by Sumito Mitsui Card is 86.7 billion as the end of March 2025. So it is for sure contributing to our financial results, our earnings. So we want to continue to advance all of this. So initiative to achieve 30 million securities accounts, fourth point. is build long-term relationships with customers by reaching out to younger generation, many of whom are beginners or inexperienced investors. So like I said earlier, we will promote financial education and awareness building, because even if we say options or futures, we will not be able to really advance it. So we need to truly do this. So whether in organizations, governments, businesses, and schools, we will hold different educational seminars, more than 1,200 seminars cumulative. Mr. Asakura is jumping out to and going to all these different places to speak at these seminars, use of robo-advisors, and we want to offer SPI-RAP. This is a fully automated discretionary investment service utilizing AI. If you can look at AUM and accounts, So AUM on a year-on-year basis has grown by plus 50.5 percent. And Shinsei Bank, as of the end of March, has achieved already 58.6 billion yen. This is SBI-wrapped and SBI-Shinsei Bank offering. And we are able to work together with, so let's go with Folios, a robot advisor. Why is it we're able to do this? We have already demonstrated that there's a favorable risk and return. This is topics. You can see return is lower than our robot probe. Risk is higher. Here, this is risk. This is analyze return. So risk and return are determined by this. So whether it's investment or building financial product portfolio, the most important is relativity of risk and return. Basically, portfolio will be determined by how you decide on risk and return. Now, strengthening our Overseas Business Foundation response to tariff policy is initiated under the Trump administration. In Trump's policy, I think the key word is building a global supply network for local production, for local consumption. So this is a global supply network for local production and local consumption. Whether it be a Japanese company or other companies, this is key. So in Southeast Asia, we can make this core and we can use this. Southeast Asian market as local production, local consumption base in United States, a very large market. So we can do local production and local consumption. Everyone wants to avoid China. But Chinese companies are actually shifting to other parts of the nation themselves. So this is tariff, the rates. FTPD president is coming from Vietnam. You know, they're crying. It's 46% in Vietnam, the tariff is. And Cambodia is 49%. Excuse me. So Cambodia is 49%, but labor is cheap. So many things are cheap. So when you consider this, Even if you build production base, if you think about Asia, Southeast Asia and the entire market, this could be positive. If China, if they impose this level of tariff, it will not be sustainable. Many companies will think that way, but because it's Mr. Trump, once there's a deal, he may actually lower it quite significantly. You never know. EU is... They have already signed a deal. The U.K. has. They have basically left from France and Germany, and the U.K. went ahead and signed a deal with America. So that's how close they are with the United States. I actually studied in the U.K., so I know how they work. Japan, even though it's labeled it's the highest priority partner in collaboration, I'm wondering what happened to Japan. I think Japan is naive. I'm looking at this current cabinet, and I'm thinking they're so helpless. And so 25 percent supplementary tariff is all out for automotive industry. I'm not sure what would happen. The macro in Japan would certainly worsen. This is because Among the 10.107 trillion in total export to the United States, 21.3 trillion is about 20% of total exports to the United States. And automobile accounts for over 30% of this amount. So you would say the automobile comprises about 60 percent of the overall export. And what about the impact of rate hike by BOJ? This is like United States. They're not able to decide. We don't know about Trump. They don't know about the economy. So they're not able to decide. But if they're unable to lower the interest rate that they should, then they would definitely fall into stiflation. And Japan has continued to maintained as it is even though they needed to raise it because they said because of the economy and so forth and this has caused yen to weaken and then we have seen price inflation that and we can continue to see the situation continue so the turmoil in the financial markets i'm sure would happen as well Even though we were saying from savings to investment, and we have seen that trend, there's a possibility that we could go back from investment to savings. So in light of this situation, what can we do as a group? So this is the current situation at SBI Group's overseas business. From very early on, even from the tariff, I have decided to establish International Business Department Proprietary Office and launch this and transform this into the International Business Management Department so that our management resources, which is primarily people or maybe products for overseas, we want to mobilize this in an efficient manner. And in the next three to five years, We will generate pre-tax profit equivalent to 30% of the group through overseas operations. And we will build system for the optimal allocation of business resources held by this VI group, such as people, capital, technology, across business formats. And we will form an ecosystem which the group's competitive edge can be exercised. And as the management organization gather diverse range of information from overseas operations. So this is how they will go about. So already we have SBI Royal Securities. This is Cambodian Securities, which holds 65.29% in ownership. We have already generated pre-tax profit of $58.5 million. We have SBI Thai Online Securities. The management wasn't good, so we decided to replace it quickly, because if they went on managing the company like this... because they have not been able to collect loans, basically. This is the same as GMO. The loss isn't as large as GMO, but this kind of mistake is not allowable for me. So we decided to change the top. I'm not sure if they heard about it or not, but I think... My way of managing the company is to be very clear and explicit about the responsibilities. And these companies are engaging in banking business overseas. So we have TB Bank, 20% ownership. According to Vietnamese law, we're not able to hold more than 20%. Market cap is already 220 billion. But we have about 20% of that. And pre-tax profit is 44.83 billion yen. Just in terms of dividend, we're already receiving 2.92 billion in cash dividends. So extremely good.