Sbi Holdings Inc Ord

Thank you very much for attending today's financial result briefing session for our company today, and we are delighted to have such a big audience participating online. We are discussing Q1 results, so instead of Mr. Kitao, I am going to explain our results for the first quarter. Let me start. We have already disclosed the earnings summary, and we would like to take this opportunity to explain. For the first quarter of fiscal year 2025, consolidated performance is as follows. Revenue was 443,189,000,000 yen. And profit before income tax expense was 90 billion, 352 million. And profit for the period was 81 billion, 968 million yen. Profit attributable to owners of the company was 84 billion, 605 million yen on all levels of profits and revenue. We have recorded the record high numbers, particularly profit attributable to owners of the company. Compared to last fiscal year, it's about a quadruple, 84.6 billion yen, which has demonstrated very robust results for the first quarter. These numbers are a comparison of quarterly net profit attributable to owners of the company with major securities group. Daiwa Securities Group excluded, and we are ranked number two. This is the consolidated performance overview and the profit before tax expense because of the robust financial services business which have contributed and PE investment business which recorded negative results last year. Because of the variation profit from the investees, we have been able to turn this business into the black ink. And regarding... There used to be the loss-making business. Because of the MyNavi, which has joined our group, it has turned positive. And the net profit for the period quadruped, and the annualized ROE is calculated by quadrupling the first quarter result. And as has been announced under the medium-term vision, 15% ROE has been exceeded largely by 24% achieved during the first quarter. This shows the performance by segment. Financial service business and PE investment business revenue and profits were record high numbers. Given these strong results, what are they going to be? And the consolidated result for fiscal year 2025, positive impacts are shown here. And what can be the potential positive impacts going forward? These are listed here. As has been already disclosed, SBI Sumi Shin Net Bank shares are sold to entity Docomo. The gains from the sale of the shares will be recorded as 140 billion yen in the third quarter of this fiscal year. On top of that, the third-placed insurance company in South Korea, Kyobo Life Insurance, as has been already disclosed, the voting right holding ratio of us is 20.4%, and it will be turned to an equity method affiliate company. We have already concluded a contract. With the regulatory authorities, we have already applied as the large shareholder of this company. If that is approved, then this will become an equity method affiliate. As a result, negative goodwill gain will be incurred. It is going to be about 30 billion yen according to our current calculation. But this Kyobo life insurance net asset will be the basis for calculating this goodwill gain of the negative goodwill after this company has become the equity method affiliate of our group. And annually, about 60 billion yen or so of profits are being recorded, and part of which will be recorded this fiscal year. On an annualized basis, with 20% and 12 to 13 billion yen per year of the equity method investment income from this company is estimated. On top of that, this Kyobo Life Insurance company was released in press release. At the same time, we made a release on the SBI Savings Bank regarding sales of this, and it is going to be October 2026. This will be removed from consolidation. So this subsidiary will be removed from consolidation from October 2026. Up until 2026, this company's profit will be recorded 100% on a consolidated basis, but after October 2026, there is the About 70% of the profits will be recorded on our consolidation basis because of the shareholders' agreement. And 14 billion yen in profit was recorded last fiscal year, and I will explain this later. This has shown further improvement, so we expect to see further upside to the profits to be recorded by this SBI Savings Bank. As for SBI CSA Bank, on July 11th this year, listing application was filed, and today the public funds have been fully repaid. Considering all these, the other day we made up a medium-term vision to commemorate the 30th anniversary for FY2028, 500 billion yen in consolidated profit before tax expense. This may potentially be achieved by the end of this fiscal year. Therefore, based upon the full year result for fiscal year 2025 results, we may review the vision as well. I'd like to present to you the details for each segment. First, financial service business. Revenue and profit before income tax expenses were recorded at record high numbers, and 70 billion yen in terms of the profit before income tax expenses recorded for the first quarter. And each segment under this service business, banking, securities, and insurance businesses, compared to the last fiscal year, the profits improved, particularly during the first quarter. At the SBI Shinsei Bank, there was a ¥19.9 billion special gain resulting from Shinsei Bank's liquidation of a subsidiary, but ¥41.7 billion... in banking businesses that has overcome the impact recorded last fiscal year. And SBI Shinsui Bank, JGAP-based performance has shown on all levels of the profits we have recorded the increase in both revenue and profit, and 44.2 billion yen was recorded as the profit attributable to owners of the company. So this was quite a strong result for the first quarter. Factors operating asset balance has been increased, and in the private equity investment business, there was a return increasing, and also after acquisition of us, the profit has been stabilized. Therefore, The possibility of a recoverability of the deferred tax asset was reviewed. Therefore, deferred tax assets were increased. On top of that, IFRS on the pre-tax income on Shinsei Bank, compared to the previous year, it was recorded at 42.6 billion yen, increased by 2%. Regarding the IFRS, the various items, there are a mark-to-market evaluation, so it depends on that evaluation. But for this fiscal year, investment trust and asset management assets have been evaluated higher when it was translated to IFRS and the 36.6 billion yen profit before that. income tax expense on the JGA, but on the first basis, it has been 42.6 billion yen. Usually, when we report it to you, SBI, SMC, NetBank, as has been mentioned earlier, this has been decided to be sold to entity Docomo. At the same time as the sales from the NTT Inc. as well, we are going to receive the investment from it, and we have signed the capital and the business alliance agreement with NTT Inc., and SBI Securities and SBI Sumishi Net Bank. And after the sale of the shares, there will be continuing to be the alliance relationship. And regarding the results of the SBI Savings Bank based on the IFRS, a 21% increase year-on-year and 5.2 billion yen was recorded as IFRS profit for the first quarter. This number, we were able to record over 5 billion yen during the first quarter quarter. Over last year, and although Korean economy has not recovered fully, however, there has been a curtailment of the investment in the real estate business. Therefore, there has been a recovery in the SBI Savings Bank, and the capital adequacy ratio has been reaching to the record high level of 17.95%. Regarding the overall non-performing load ratio, 51.6% was the ratio when we acquired, but currently it has been reduced to 4.1%. At the end of March, it was 4.6%, so we have seen further improvement since then. Next, this is about the securities business. This shows the JGAAP standard numbers. And revenue and the ordinary profit and also profit for the firm attributable to the owners of the company all record high numbers. And the operating profit was slightly down from the previous year. Transaction volume. is getting larger and larger, and transaction-related costs were slightly increased. Because of this, regarding the operating profit, we recorded a slightly smaller number this year. Regarding the ordinary profit, And the non-operating revenue related to the real estate silent partnership was recorded. And also the liabilities for transaction of financial instruments were included. And therefore, there was the extraordinary loss of 2 billion yen was recorded. However, we could achieve the record high profit. And this shows the breakdown of the SPI securities and the impact of the zero revolution, about 10 billion yen revenue lost. However, overcoming it, and we have been able to achieve an increase in the revenue. And the financial revenues increased significantly year on year. Next, insurance business. This shows insurance groups' JGAB-based preliminary figures are shown here. On all revenue and profit, we achieved the increase. And regarding the profit attributable to owners of the company, we recorded 2.168 billion yen. We have made a steady growth. Regarding the number of enforced contracts, it exceeded 3 million contracts. Under CAGR, we could maintain the ratio of 15.4%. That means that we have been able to securely increase the number of contracts enforced. The other day, we made an announcement. The Hokken Ichiba insurance comparison site operated by Advance Create Company Limited, and it is scheduled to be accounted for under the equity method. This site is being visited by over 3 million per month, and this is one of the largest insurance comparison sites. We are pursuing the synergy effect with it in order to further deepen. the evaluation of the insurance business. Next, I would like to talk about asset management business. The tariff policies under the Trump administration in the U.S. has affected negatively on the share prices in April. Therefore, AUM has slightly temporarily declined. Therefore, that has led to the decrease in profit. Having said that, based upon the numbers of the IFRs, there was a unique feature of the IFRs the securities, investment securities, and also that has been affected by the mark-to-market variation. And this year, we had a negative impact while we had a positive impact of that. And there is about 1 billion yen as a gap. And subtracting that impact, the number was slightly decreased from a year earlier.

SBI Global Asset Management, our listed company, which already announced its results for all the lines of profit and the net sales, they hit the record highs. Meanwhile, SBI Leo Sohifumi and SBI Ogasan Asset Management, their profits decreased.

I have already covered the reasons for that.