Sbi Holdings Inc Ord

Thank you very much for attending this SBI Holdings full-year results announcement. At the venue, we see dozens of people, and I understand that more than 110 people are participating online as well. Without further ado, let me start. So we have quite a big volume of documents, so I would like to go through numbers briefly. So consolidated performance. Pre-tax revenue, 1,896.6 billion yen, up 31.4%. Pre-tax income, 516.7 billion yen, 83% up. And the profit for the period, 430.5 billion yen. were up 127.6%, in which profit attributable to owners of the company, 427.6 billion yen plus 163.7%. Each of them are record highs. Especially the alloy has been my focus, 28.0%. Year on year, it's a big increase. Usually, the Japanese banking industry for FY2024 average was 7.25%. What about the U.S.? JPMorgan Chase, even JPMorgan Chase, 16.69%. Morgan Stanley, 16.52%. Goldman Sachs, 14.91%. The banks, big financial companies representing the U.S. market, compared to them, our ROE is better. So the comparison of consolidated performance with major securities groups. As I mentioned earlier, we have covered the numbers. The Nomura, 362.1%, Aloe, 10.1%. And the Daiwa, 175.3 billion, 10.3%. And the Seniko, 94.4 billion, 7.5% Aloe. And the Mitsubishi UFJ, 64.3 billion, 10% of Aloe. So 28% of our number is really a surprisingly good number. Looking at the Nikkei Index, the three largest securities and so on, this way of writing of conventional media But even the new medias and the conventional medias, all of them are using the internet. I'm wondering why Nikkei continues to write such stupid articles. The other day, I met with the commissioner of the FSA. I told him that we need to do something about it. It's so shameful. The net and real are now fused, and the business model, which does not allow it, they will just go under. And it's not good for readers either. And so on SNS, we put up this table here on SNS as well. The newspaper companies, they should do a better job. Now, this is performance by segment. Financial services business is a dominant result. 425 billion yen are the pre-tax income, and asset management business 8.6, key investment business 82 billion, crypto asset 21.2 billion, next-gen business 22 billion yen. This year, we acquired our own shares totaling 50 billion yen. So the dividend is increased by 10 yen or 95 yen per share. So the total amount of share repurchases, the 50 billion and total payout ratio is 26.1%. Moving on to shareholder benefits, XRP and other, these are the choices. XRP, as to XRP, it started in March 2020. And the weighted average of six times, 58.5%. 58.8, rather, is now 214.45 yen. So that means that the unit price is now fourfold. So XRP is more effective as benefit. And then you can buy ALA. That will be the best scenario. This is the buy segment performance. Financial services business. We have covered the numbers already. The breakdown, the banking business. is growing very rapidly at a plus 134.5%, at the securities business, 83.2 billion, up 14.8%, insurance, 79.6 billion, plus 1,235.5%, and other. SBI Shinsaibank, and we have banking operation in various parts of the world. Not necessarily 100% stake, though, but we have the big stake, as big as it can be. This is SBI Shinsaibank's performance. On all the lines, numbers hit record highs. The ordinary business profit, 156.6 billion, plus 20%. Profit before income tax expense, 122.1 billion, up 22%. And profit attributable to owners of the company, 113.4 billion, up 34%. This is on JGAP basis. And on IFAS basis, 106.1 billion, plus 29%. so the treatment of upfront fees could make a difference between the two accounting bases. SBI Shinsei Bank is growing very steadily, number of customers. Now we have 4.33 million at accounts, and when they joined the group in December 2021, The 3.04 million has now increased to 4.33 million. And the total amount of deposits, 17.3 trillion yen. And the 18 trillion yen, rather, of operating assets. It was only 8.1 trillion yen when they joined the group. Now it is 18 trillion yen. SBI Shinsaibank and SBI Money Plaza did a joint branch, which is called SBI Shinsaibank Wealth Management. The product balance on April 23 exceeded finally one trillion yen mark. So the asset balance is increasing very steadily. SBI Savings Bank in Korea The performance was up 37.8% with 25 billion yen. It is going very steadily. As to capital adequacy ratio, 19.75%. This is a record high number. And the delinquency rate is 4.5%. When we purchased this bank, was 51% was the Adabat loans. So they have transformed itself to a high-quality bank, and they did it very soon, very quickly. Still, I have decided to sell part of the stake in this bank to Kyobo Life. and that resulted in 41.34% of the ownership of our group. Still, the economic interest is retained at 70% as a result of the negotiation. Nishikawa-san, legal people, and CFO Nishikawa-san did a very good job. I told him not to make too much stretch, but I'm very thankful. We still have 70% economic interest, but basically we are going to sell it completely. Why is that? Their performance is good, good recovery. Why are we going to sell the stake? But looking at the careers of the banking industry, savings banks are at the bottom, and on top of that, regional banks, and on top of that, the city banks. And the business area allowed is strictly defined. So that is kind of a limit. So I would rather get some of the stake in life company. using the proceeds. So we are going to have 20% stake in Kyobo Life. And now Kyobo Life is the equity method company. And numbers have been a kind of small in the insurance sector. But with this 20% stake, now they look better. Business portfolio. is looking at our business portfolio, and if there is any limit to be seen, then we make a switch to something new, more stable, more profitable business. We make a shift that way. So now securities business, we have operations all over the world. We have various entities. And securities business is growing on all line items, the record highs. As you can see, the increase is two-digit percent. And the unauthorized access-related compensation, 9 billion yen. So we return, we pay to those customers whose accounts were used. And also the provision reserve for financial instruments, transaction liabilities, 10.5 billion. Still, we hit the record highs. After zero revolution, our revenues are growing very steadily. People said that with such zero commission, the SBI might not survive, even in the other companies. Some people thought that way, but Takamura-san and others did a lot of efforts. But we continued to grow after the revolution, quarterly the profit, 28.1%. 0.1% only growth. And the SBA securities financial revenues are contributing greatly. And of course, we need to think about the Iran-related situation. And the open interest credit balance declined a little bit, but at 2.53 trillion at a very high level. And the margin trading Increase of 41.1% year-on-year basis, very high level. And the SBI securities, the investment trust fees, the balance increased. So record high, as you can see here, investment trust fees, 42% increase year-on-year. And the quarterly investment trust balance at SBI securities also increased. So finally, we are in a world with interest rates.

The POJ was continuing to not change rates, and then the yen exceeded 160 yen against the dollar, and then suddenly... The government intervened with the market. We're not sure if they really did it or if it was just a threat, but that was the case. So I think at one time it was at 155 yen against the dollar. I think this is going to be very short term. and it would go back to 160 because the problem at the root needs to be resolved to fix the weak yen issue. And the issue is because interest rates are staying the same. They're saying that around 1% is appropriate. And we're not there yet. The government, the world, wars, many things are happening, but what needs to happen needs to happen, or else the weak yen situation will continue. So this is so easy to understand, and I wonder why they don't understand it. It's because the academia don't have practical experience, so they don't get it. They're not living in the world of the market. I spent 50 years in it. We can see what's going to happen under these circumstances, so it's all about experience. Fujimaki-san is different from that point of view. Every time he sends me a book, I read it. But those people who have actual experience... The way they look at the financial world and market, their way of thinking is extremely established. So I think that person is a very rare politician, and I think he's stepped down, but he's a very rare person. But in the case of the U.S., the situation is completely different. Trump was a person who was living in the actual world, and an investment is coming. He was working for a hedge fund, and after Golden Week, he's going to come and visit around the 12th, apparently. But this person, too. He was working together with Soros and so forth, who profited a lot in the past. So the sense that these people have and the sense that Ueda-san, our BOG governor, has is completely different. And the governor of the BOJ or the head of the central bank, they shouldn't really read between the lines of the government because the governor and the U.S. is working so hard, even if Trump is applying a lot of pressure on the person. So that's the kind of mentality that a governor or the head of the central bank needs to have. Also, for JGBs, institutional investors, are not holding that much anymore, then it would need to be sold to individual investors. They have about 2,300 trillions worth of assets that are at the bank. And from the individual's point of view, which is better, rates at banks or JGBs? And they feel that it's better to invest into JGBs. because they were just holding it at their homes for 30 years long. So the issuance of individual JGBs are increasing, and our business is expanding as well from July through December. In the JGB sales ranking, we have been number two for January through March, and I think April, SBI was actually leading The reason why this trend is happening is because in the individual market, whether it be equities or bonds, SBI Group has significantly increased its share of individual stock trading value, so we have reached a dominant market position. We are at 63.4% from margin trading. So we are a dominant player now. So with respect to the individual's business, we have dominance. When it comes to institutional, our penetration is still low. So maybe Nomura is doing better. But it's just a matter of time. From my experience, when it comes to a broker or a securities company, you need to have both retail and wholesale, especially in the case of Japan. If it's like U.S., where the bond market is extremely advanced and sophisticated, it's different. It's very rational and streamlined. The individual can delegate their management to an entity to have them manage their funds. However, in the case of Japan, people think by themselves and hold onto their assets. So it's slightly different in nature. So, SBI Securities implemented order routing to Japan Next PTS for new orders and general margin trading. Then, at once, you could see here that there has been price improvement. For who? For the customer. They don't have to pay commission. Now, so you could go directly here to do trading. And this is something that's obvious for the U.S., but because of the FSA in Japan, because they're supporting the TSE even now, our country is ludicrous. NYSE, the NASDAQ, and the PTSs have been establishing in a series in the U.S., and things changed dramatically. However, in Japan, it's about clearing Kofuri. Everything is a monopoly still here in Japan. JASDEC. Maybe. JASDEC may have reduced their commissions twice, but we're doing a zero commission, for example. We need to be supportive of investors and be customer-centric. That's the way of management we have. However, they are only thinking about protecting themselves by using an old system. And when you say something about it, they try to make business go down for PTSs by blocking us. I'm at 75, and I don't think management management should be assertive. I am not afraid of anything. And I think, and even like Katayama-san, or Ito, the commissioner, they're juniors to me. JNX PTS share relative to TSE exceeds 10%. It's 11.18% as of March. As a rule, if you exceed 10%, you need to become a financial instruments exchange There is that kind of rule that exists. So is this going to turn into an exchange? That needs to be a decision made. So this 10% level, why was this 10%? There is no theory that supports this. They just randomly decided 10%. The TSC, the FSA, or the former name, the Ministry of Finance, decided this rule. So that can change to like 20% instead. They should just change the rules. But, of course, if this can turn into an exchange, that's great. The state-of-the-art exchange can be established, and it can be everything on-chain. That is a possibility. So the number of security accounts at the SBI group, surpasses $16 million for the first time in the industry. As of May 1st, we have exceeded $16 million. Nomura is at $6.095 million or $6.09 million. Kegra was, you start from here, which is March 2009, and the Kegra was only 1.8% that leads up to March 26, the compound annual growth rate. Our CAGR was 13.4%. We can grow even more. AOM has now reached 66.1 trillion as of the fourth quarter, and the zero revolution started here. We continue to see growth. And we were projecting out before the start of the zero revolution, and things have turned out to be exactly as we have anticipated. Rockton Security's is at 50.3. There is a big difference. Thoroughly promote the deepening of open alliances and expansion of overseas businesses to grow the business foundation of the securities business. So we are promoting an alliance with SMBC Group, and we will make this even deeper and add new schemes to grow it even more. We will also continue to grow the business foundation and the overseas business as well. For SMBC, we are centered on the promotion of the alliance with fusion of digital and face-to-face services. We do believe it was a really good alliance, even from our side and their side. The Olive Project, thanks to this, from March 22 to March 26, CAGR was for the number of By national and intermediary accounts, it grew by 110.7%. We are currently at 1.85 million accounts. Sumitomo Mitsui Card Accumulation Investment. The monthly accumulation is now exceeding 100 billion. When you look at the age of users, the younger generation, which is from their teens to their 30s, account for half of the users. And this, maybe if the taxes can become lower or if this can be tax-free, because this is as a formation, if the government can extend more support, that would be great. Or we could give back to the younger generation. It's really important to give back to a certain party because there's a lot of taxation And we are the worst country with respect to the way the taxes are being used because it's very vague in how it's being used. There is a random way of using the taxes. Just because they want votes. When it comes to religious entities, they are not taxed. And they also have Cabinet Secretary at secret funds. And I'm not sure what the Comey party is doing. But nowadays, I do believe there has been some heaven's judgment in place. Full utilization of niisatsu mitate quota of 110,000 yen is common, so they should raise this amount when it comes to... There's a lot of individual financial assets, and they want to transfer it from deposits to here. I think there's many people that are thinking about it. And all of consulting. SMBC will start this service. This is an in-person consulting service, which is going to start from May. I do believe this is going to generate huge results as well. And SMBC, NTT, they are our major shareholders that hold the same amount, which is at 8.2%. And with NTT and our relationship, I do believe it has turned out to be a good, great relationship. It's a matter of their technological capabilities and how they can be leveraged for our business. We are looking into it and from various point of views, we are trying to see how things can develop. So, Finance really needs technology, and that is why the word fintech was established. And Web3 and IOWN technology, this also in many ways can be utilized. For example, transaction speed can become expedited as much as possible, or power usage at exchanges can be conserved substantially. and regional finance and financial digital transformation. We would like to leverage NTT Group's financial digital transformation packages as much as possible. If I announce anything, I will shock people, so I'm not going to say anything. But we have been working on creating various businesses for the future. SBI Securities is practically developing its global institutional investor business to expand its sources of revenue worldwide. We didn't have presence in London, in the Netherlands either. However, in main cities around the world, now we have presence and we are striving to globalize our finance business. And if there are any big finance deals, we would like to ensure that we target these markets. For the institutional investor business, when you look at the trends in institutional investor trading value, comparing against fiscal 21, in five years we were able to grow by three times. And for business revenue, for institutional investors, comparing against fiscal 21, we have been able to double the business in five years. So we have been able to steadily grow. grow the business. Next is the insurance business. All were record highs and also for dividends. It's about the double of last fiscal year over this short period of time. So we have been able to steadily grow the business. To the people from the government, I often say this, but for those people who have stepped down and became a corporate advisor, of some company or a corporate advisor or became a professor at a given university. I wouldn't say it's a waste of time, but we are short of competent people. Therefore, I always call upon them to come to us, especially young people who are working at the government. Oh, they know a lot of people. So I have been recommending this. For a person who has experience at the Ministry of Finance, they work really hard. Seriously. They have been engaged with the budgeting processes. It's quite challenging. And during the diet sessions, all the politicians, they make all their jobs be done by the governmental offices. So The young people are no longer interested in becoming a public official nowadays because of these reasons. They often go to consulting firms in the past or a foreign capital broker. Nowadays, gradually, For example, you never know when a consulting firm is going to be gone due to the evolution of AI. That's where we are nowadays. For AI agents and the evolution of AI, it's going to change the nature of a job dramatically. Definitely. Salesforce, things like that. We're not going to need it anymore. I've been saying at the previous results meeting that we're not going to hire new people unless they're competent. But there are people who do continue to join our company. They may have been at Salesforce before or at a consulting firm, but they are being fired, although they were competent. We can hire them as an analyst to work for the securities company. We believe we can offer opportunities for them to grow even more. And that will be a win-win situation. However, jobs like analysts, because of AI, if you have three different types of AI lined up together and ask the same question, you can refer to the answers and pick the answer you prefer or compare and verify what's missing from the responses. But I think recently, when it comes to new employees and their reports, the quality of their reports are becoming better, that they write once every two weeks. So that's why I've been doing the same thing by using A.I., and I'm now able to identify who's using AI. I actually cross-check it. You really need to think with your own brains. AI is just help, but you need to deepen your thought process by leveraging the power of AI, or else your brain will always be inferior to that of AI. The total number of enforced contracts of the SBI Insurance Group, end of March 2016 to the end of March 26, CAGR has been 12.3%. During the same period of time, when you look at the IT life, it was 7.1%. And Nippon Life, what was that? It was only 7.1% and 2.8% respectively, which means for large insurance companies, Their business opportunity in the Japanese market is already at saturation. For us, we believe we can still grow. The reason is because our insurance premiums are far lower if you do it online. That is why our growth rates are far higher. So for the major players... If they want to grow their business, all they can do is resort to overseas markets. However, when the yen is so weak, going abroad may lead to the next loss. Even for life insurance companies, there have been various issues that have occurred. They are carrying too many JGBs, so they need to take care of them. And when you have evaluation losses, evaluation losses are quite substantial. Globally, when you look at this, under the international accounting standards or any type of global accounting standard, the image of their business will change. Same thing applies for banking as well. This goes back to my earlier point about the holdings of Kyobo Life. We now have 20.4%. And with the acquisition, what we were targeting was, of course, when you compare the insurance business, I compared the numbers first, and I also was looking at total assets at $16 trillion. It's one of the three major insurance companies in South Korea. and their profit base is 82.7 billion yen. Warren Buffett, when he started the asset management business, he started off in acquiring life insurance companies. Long-term assets of life insurers are attractive, and in our case, at Asakura-san, we are currently at But our target is 20 trillion. The next target is 50 trillion. I want to bring it up to 100 trillion eventually. Of course, with respect to the methodology, the two of us have discussions to come up with ways to grow the asset base. If we want to grow by a certain extent, it will be acquisitions first. Oryx, I think, acquired Robico at a very good timing. And what I was very impressed about was in two years, what Oryx did was they sold it by $370 billion to Daiwa. There were some offers to us as well. But I was questioning that deal. However, I think, I guess Daiwa is confident about turning the business around. But if it's a company that no one was interested in buying, there must be an issue with it. The person, the seller, there's a reason why they want to sell it. When I want to buy something, I will do a survey as to why they want to sell the business. And I also think about how much synergies can be generated as well. You need to do a thorough research of that, or else you won't be able to generate good results. For example, 25 percent acquire acquisition of our Zoda Bank. What kind of results can be generated? I'm not badmouthing Daiwa, but I tried to apply an analyst-like approach. I've never seen a press coverage that Aozora was doing well. And office demand in the U.S. was going down, and people were thinking that there will be more evaluation losses. So I was wondering what's likely to happen. So the synergies, in what way Is it going to be exerted? For example, for Taiwan Next Securities and the synergies with the bank, they haven't been able to generate that much. Taiwan Next Securities and SBI, Simishin Bank, how much is that generating profits when you compare the two? It's quite different. So the asset management business I talked about this earlier. We have been able to build up assets, and global assets are at record highs. For 14 consecutive fiscal years of revenue growth and 17 consecutive fiscal years of ordinary profit growth, being able to consecutively grow your earning space by more than 10 times is quite impressive. For asset management, AUM exceeded $12 trillion. By the end of 2030, March, we would like to break it up to 50 trillion. It's a commitment by Asakura-san, and I would like to help him as much as possible through acquisitions and so forth, and in various ways, through the securities business, by selling funds. I hope this could help this business. So we would like to – I would like to support him in growing the business. In the investment trust industry, now we are at number nine. Nomura will be celebrating its 100th anniversary soon. We are only at 26th or the 27th year, but we are at this level. For this page, everybody is surprised when they see this page. When I show this in English to English speakers, PIMCO, Alliance Bernstein, State Street, they are the traditional joint ventures, Active, Index, and Alternative. The Man Group, it's a London company, KKR, everybody knows them, Frankly Templeton. They have strength in digital ETFs. So we have a close relationship with these people. These people, Takamura-san's team is able to engage in their business because of these alliances. We have exceeded 2 trillion of assets. It's already been exceeding 2.5 trillion. The Penco people were really happy. Doug Hodge was the CEO back then, but then there was a change to a new CEO. I'm always here, but every time the CEO visits. Well, PIMCO used to have zero joint ventures, but we were able to persuade Doug Hodge in establishing a JV, which led to a great success. So everybody's connected here in this world. The Franklins, CEO, Jenny and Robin of BAN are there, both ladies, but they get along. They know each other. When we go to Saudi Arabia, we have been talking the other day that we should have dinner together, the three of us.

So this is the joint venture with State Street. They were established in 1792, and their AUM is 5.6 trillion U.S. dollars. That's 890 trillion yen, and they're the world's fourth largest. So this is utilizing AI agent in all business segments. And we need to hurry up and manage this on the asset management side as well. So they're actually doing this independently as well. So even at World Advisors, they're using AI agents for asset management, and they're showing a very nice performance. And then PE investment. So just with PE investment, we have an outstanding balance of one trillion yen. So we are number one private equity company in Japan. It's not about Jafco and all of that. It's totally out of the question. And all the foreign investors know that. So, this is IPOs and M&As of the SBI Groups for MSD companies. You can see our prospects for 2026, and I think, 27, we will exceed that. So, private equity, we have exceeded $1 trillion. Actually, it's $1.1 trillion in AUM. So, this is part of our PE investment ripple. It's 0.9% or so, and they will burn it. So when they continue to burn it, our ratio will automatically go above 10%. Now, what's been circulating in the market today, as you can see, and of course it changes day to day, but it's approximately 14.2 trillion yen. And in terms of actual, so the actual is held by Ripple. and they have holdings under escrow. So what's in circulation, excuse me, what's not in circulation is equivalent to 8.8 trillion yen. So if this becomes, is listed or becomes circulated, then this is the amount that we will get. And no one will complain about that. The price is already determined. And so this is not all about the value either. You know, Ripple, they copied us because I said they should build an ecosystem within this current crypto currency. I said that crypto assets. I said that to Chris, who is the founder. And I don't know if this is the end result of that, but there's no doubt that I recommended it. And I remember that they agreed to that and agreed. So they started with MetaCo, and there's some that are public, not public. But basically, they continue to pursue acquisitions from prime brokers to market makers. So they have a sizable amount in the ecosystem of this cryptocurrency. It's quite remarkable. And then they have this is XRP treasury business. They have have assets to invest, and so we paid out $32 billion. I think Chris Larson may pay out some cash a little bit, and the Ripple with coin. But this will be listed on SPAC. And Form S4 has been filed to SEC on March 18, and we will resubmit with an amended Form S4 in April 7. So we're making steady progress towards listing And once it's listed, and let's say we, and there'll be clarity in probably May, and we are seeing a good prospect. And all the reasons they would oppose to it has been discussed through. And the Trump family owns a lot of cryptocurrency. And this is against ethics. The fact that the president is promoting this and the family owns a large amount is strange. So there's an argument about that. And maybe they could just donate half of that. That's all they need to do, really. Mr. Trump, he doesn't get paid as a president right now. And so here's the crypto asset business. So again, pre-tax profit is record high. And of course, there's an impact from the valuation gains recognized in third quarter, but even amidst the market downturn, it remains at a high level. So, this is number of accounts held by SBI VC Trade. So, it's 1.92 million accounts. So, you know, people talk about Bitcoin, Coincheck. But Mercarni are gathering all these smaller accounts. And maybe they are, Mercoin is maybe at the top, perhaps. But we put aside all these little ones. And we acquired DMM Bitcoin here, and now it's over here. And on top of that, we will combine with BitBank. I think it's announced today. So this is a company that belongs to Mr. Hirosue. So they have 960,000 accounts. So they're above BitFlyer. So if they are behind the market, they will only be Mercari. But what's important is AUM here, assets under custody, which is 570 billion yen. And my basic policy is to become number one in all aspects. So we will continue to build up on number one in every category. And as a whole, we will become number one. And of course, here's the shareholder benefit programs. During the Morningstar days, they started this business and we followed right away. And we wanted to do this at the holdings level. And now we're beginning to see a number of customers who want to use this as a shareholder's benefit programs. So many companies are now utilizing crypto assets. And in our case, it's four times as much. Morningstar, we started XRP. It's about six to seven times now. And also, crypto asset treasury companies. You can see a number of companies who are already doing these crypto asset treasury business. If they do this, then they will trade, so they will become a large volume client. So they are key customers, prospect customers from our point of view. Next-gen business. So Web 3.0, or Web 3.0, excuse me, related business. MyNavi is very successful. We have only 20% as an equity method affiliate, but it's already generating $5.2 billion. as equity in earnings affiliates. Very grateful. And we have validator rewards. We have some super validators, and we are able to also gain rewards from that. So that's the key to becoming profitable. So now the key topic here is three key strategies, objectives. For the sustainable growth of corporate value and performance, As a subtitle, I've written, Strategy is Everything. Since I have been involved in management, if people ask me what is my reason for success, for winning, it's strategy. Strategy is everything. And what is strategy? Many scholars say many different things. They say it's about building a position that achieves sustainable competitive advantage. to succeed in competition, theory, and organizing activity within the market. you know, a long-term fundamental blueprint for an organization activities when they market. Some people say very academic things, but it's basically a mechanism to win. It's a concept to win. And when we, in the past, when we talked about strategy, it's really about winning a war, right? And so this is, for example, Sun Tzu. So when we say Corporate value, I think it's about strategic value. Now, corporate value in an ordinary sense is shareholder value here. So this is the total amount of cash flows generated over the long term to the shareholders, and also the cash flow amount that will be offered to the creditors, and you deduct that by present value or discount that by present value. So this is the corporate value in an ordinary sense. What is my corporate value? I think it's made out of customer value, shareholder value, human capital value. When you have the people, human capital, you will be able to exercise creativity. So I think it's the source of creativity or it is the greatest factor for bringing about differentiation. That's human capital. What is customer value? customer purchases or performs something, it is the consideration against the goods and services that's offered to the customers. So this is SBI corporate value, my value. And on top of that, SBI. No, often people criticize us as a conglomerate discount. They don't really study very much about our company. But conglomerate discount is about the 1980s where a company was buying when companies are unrelated to the business one after another in order to just simply increase EPS. And they continued to increase that into the 1980s. And then in the 90s, they began to fail. So we have to think about conglomerate discount. But that's wrong because many scholars have actually studied this. But if you have companies that have strong correlations, then you will be able to exercise synergies. And if you build an entity that's based on that, you will be able to increase value. And even it's in the book called Roberto. He's a scholar from Harvard Business School. And there's a very typical classical paper on this, literature on this, but this is an idea that I was quite convinced by. But it's not just that. It's also based on management philosophy and strategy grounded in long-term perspective. So this is a strategic value. So what I have been generating over the years is strategic value. It's based on grounded in long-term perspective. Ten years ago, acquiring Ripple, Who would have done that? And even after the acquisition, they had some lawsuits. I never sold any of the shares. We continue to hold on to it. So it's about what will the world be in 10 years later, 20 years later. It's the ability to foresee that. It's about visionary. It's being able to have an insight in discerning power. So it is companies' management philosophy and long-term strategy that determines its future value. And management philosophy has always been customer-centric. Since the foundation, I have been very true about promoting technology. Or I have always said public interest is first and foremost before private interest. And corporate is an existence of the society, and the business has to be good for the society and for the people. I have always called out that philosophy and tried to implement that. And that's the reason why we're still here today. I truly believe so. I've been reading a lot of books, but one of the books that I have really thought was true was a book written by Duggan. And when I was trying to take business management classes at Columbia, I came to read this book. And he talks about strategic intuition. And he says that strategic intuition refers to the ability to synthesize accumulated knowledge from the past with a wealth of experiences and to instantly recombine them in mind to discover solutions to new problems. So I have this enormous amount of reading that I do and also my enormous amount of knowledge and experiences. And with that, I am able to make instant decisions and judgments. So based on this intuition, As a founder, I will implement appropriate strategy at an appropriate timing. And then I will hand it over to those who will take over. So the strategy that I will mention after this, all three of them can only be implemented by a founding founder. I don't think a salaried CEO will not be able to do this because I am the founder and I am the top management, and that is why I'm able to make that decision. And I think that decision is to be made now. So that is why I am making this into a strategy. The structure follows strategy. It's just the words of Chandler, a very old word. So you will follow the intuition. Meanwhile, you create an organization. So what is my three key strategic objections? One is to become completely AI-driven transformation. The other is organization transformation toward on-chain finance, providing next-generation financial services ahead of the rest of the world. And number three is integrate the neo-media ecosystem into the existing financial ecosystem and digital space ecosystem, which is already emerging. So through that, we will be able to dramatically expand our customer base in and out of Japan. And only I can do within this group. How can someone suddenly one day build a Neo Media and do something like this? Who could say this? And who could actually make the investment for that and run an organization and build an organization? Who would be able to do that? I was speaking to Mr. Yasuda from PPIH Donki. I think this dialogue became an interview book. And there were some commonalities as founders. We shared views, same views. So first strategic objective, one on decisively implementing a complete AI driven transformation. So in J.B. Morgan chasing, it's happening in 2025, announced AI blueprint. They said they will transform into a world fully AI-powered mega bank. So they said that in September 2025 or first. No one's been able to do that before. And maybe I'm slightly behind them, but we think the same. And of course, I have some influences of Mr. Song as I came to think this way. And It's not just about implementing AI tool, but the bank business process itself will be redesigned with AI at the center. This is what JP Morgan Chase is trying to do. And this is personalized AI assistant, AI-driven process, AI concierge. And we've attached all of these to make all the operation efficiencies higher. This is the three pillars of implementing AI. And expected effect is... to become a checker from becoming a maker. So it will be made by AI, but humans will become a checker. And checker is actually, can be generated by AI agent. So what do we do? Well, We will basically consolidate everything, orchestrate everything, and set out to a certain direction. Maybe an AI can orchestrate. Some people would say that. But would an organization run with AI? So this is something that humans would have to do. And here's potential workforce reductions. So you can see that from the banks in America. This is Commerzbank in Germany. So they have implemented this after pilot operation in 2024. And they also built AI Avatar. And they have drastically improved customer service efficiency. And they have approximately 75% completely autonomous function without human intervention. So it says high self-revolution rate and 24-7 operation. This goes without saying. So you do not need people. If you hunt people, you won't be able to do it. It can execute complex tasks. The test result of the University of Tokyo, AI was able to do perfectly, perfect score. So the world is changing. In the past, people used to say that in 2045, technological singularity will come. That's what they used to say. But not even 45, it would be in 2030. Maybe it's already here now. In other words, the capabilities of AI has drastically exceeded the humankind. So what should human beings do?