Sbi Holdings Inc Ord

Thank you very much for joining us today for this earnings announcement of SBI Holdings despite your tight schedule. And thank you very much for a big turnout on the internet. This time, this is the announcement of first quarter results. So on behalf of Mr. Kitao, let me walk you through the results. The report is public, but let me read out the numbers. Revenue, 571 billion yen. Profit before income tax expense, 225.8 billion. Profit for the period, 156.8 billion. Profit attributable to owners of the company, 148.1 billion. In all line items at this record high for the first quarter, Last year, the results were relatively good, but this year's results are much better. For the pre-tax income, it's about 2.5 times, 149.9% increase. On the annualized basis, ROE is 29%, so against 15% in a mid-term plan, it is much better than that plan number. Performance by segment. Who is the other currency act anticipated? The crypto asset business market is struggling. Without this business, financial services business, asset management, PE investment, next-gen business, in all of these businesses, both revenue and pre-tax profit hit record highs as first quarter numbers. Driven by especially the financial services business, given the very robust equity market, We saw big growth year-on-year basis. 59.5% increase in terms of pre-tax profit with 116 billion yen. And we have been investing in advanced areas as PE investment business and with multiple number of names at M&As and funding continued. and here again we saw a very good performance on a basis up 328% or 119.9 billion yen. Given very good results of the first quarter, we have decided to issue the forecast of the interim, the dividend, the payout for the very first time after the first quarter. In the previous year, after the shares split, we increased from 20 yen to 30 yen by 10 yen. And on an annual basis, for the year-end dividend payout, eventually we are going to make a judgment based on the thoughtful year results. Last year, it was 95 yen after the split, and we'd like to clear at least that level. My segment, starting with financial services business, was revenue and pre-tax profit record highs. In this business, three major businesses, namely banking, securities, and insurance, in all of these businesses, year-on-year basis, the growth rate was more than 50%, especially for insurance business. In January this year, Kyobo Seme, which became the equity method company, which made big contribution to the profit, and SBA Insurance Group, listed company, is growing very steadily in Oyabese up 262.7% or 13.5 billion yen. More specifically, banking business. SBI Shisei Bank on a J-GAP basis. Already announcement was made by the bank. Gross operating profit, net operating profit before credit costs and the pre-tax profit hit record highs as first quarter numbers. As to gross operating profit, in the first quarter already the 100 billion yen mark was surpassed. Satoe Kusakabe, Satoe Kusakabe 132 billion yen that is the target but already in the first quarter 52 billion yen or 40 percent at the progress ratio so it is a very good the progress for pre-tax profit. Retail account and the Thank you very much. In September last year, the SBI hyper deposit or sweep account in collaboration with SBI Securities is performing very well. Only in nine months, it grew to 1.43 trillion yen. So with this collaboration with the security side, it assures good stickiness to the deposit. and other operating assets. The balance is increasing at 18.8 trillion yen. The interest rates are rising in Japan and profitability along with that is improving. We have hyper deposit, so we don't need to raise deposit rate so much to secure deposit amount. So pass-through rate is less than 40%. Currently, 0.1% increase. So the other interest spread is 0.55%. As to corporate side, The lending side, a mortgage rate that is expected to see more impact from the rate hikes.

And for Shinsei Bank, together with Shimane Bank and Fukushima Bank, we have turned them into equity method affiliates of the company. SBI Regional Holdings used to own it, but it has been transferred to SBI Shinsei Bank. With this, we believe we could further advance the fourth mega bank concept with SBI Shinsei Bank at its core as a wide area regional platform within the SBI group. On a group-wide basis, More than 100 regional financial institutions have transactional relationships with us and for Shinsei Bank. It has relationships with 92 financial institutional partners. Syndicated lending and loan asset distribution is underway. And in Q1, distribution was 47.1 billion from Shinsei Bank. Next is the securities business. The stock market has been extremely brisk. Therefore, it has led to higher trading volume. And we have been diversifying our revenue source, which has proved to be successful, leading to record highs at each level on the P&L. Looking at the revenue breakdown, Compared to last fiscal year, Q1, 91.6 billion was the revenue this fiscal year in Q1, up by 47.5% year-on-year, especially for financial revenues, which I will explain later. We have been seeing higher margin trading balance, and also we have been seeing the other items increase as well substantially. Thank you. Compared to the previous quarter, we have been seeing an increase in revenues by 18.3%. The number of security accounts. Due to the Zero Revolution and the Open Alliance that has turned out to be successful, we are now exceeding 16 million accounts. Especially in June 2019, when we announced the Zero Revolution, We have started to see an increase in the number of accounts and this pace has not decelerated. So assets under custody of SPI Group Securities Business has now exceeded 75 trillion yen. Up until March 29th, we are striving to achieve 100 trillion in assets under custody. Next, for this page, we are sharing this for the first time, which is capital gains realized by retail investors. Because the stock market is robust in risk, we have been seeing investors realize capital gains as well. As of June, that stood at $464.7 billion. Comparing against last year, the cumulative for last fiscal year from January to June, it used to be 700 billion, but now it has went up by three times to 2.1 trillion. So their capacity to reinvest has been boosted. So additional investments and shift of funds into other financial products is anticipated. And we believe that we can generate a virtuous cycle. For these numbers, we have the general accounts and NISA account. Capital gains are not included here, so we believe the actual number is even higher than what we show here. Earlier, I touched upon the open interest credit balance. It has exceeded 3 trillion, which is a record high. Because of this, for financial revenues as well, we have been reaching record highs. Year over year, the increase has been 57.7%. On top of that, for Q1 and trading revenues, we were able to achieve a record high. Especially for FX, spot revenue is about the same as last year. but currencies that are high rates have been high in demand, so swap revenue has been record highs. Also, customers have been realizing gains. Therefore, based off the gains, additional investments and a virtuous cycle is expected here as well. Regarding investment trust fees, Increase in investment trust balance enabled record highs. Regarding the balance, we were able to see an increase of 64.2% at 31 trillion yen. And investment trust fees were able to reach record highs of 6.4 billion or an increase of 60%. And monthly accumulation, it was about 300 billion as of end of March. and this was 330 billion as of end of June. So in three months, it increased by 30 billion. So at 330 billion, it should reach 4 trillion on an annual basis. So we are expecting a further growth of investment trust balance in the future as well. Also, because of the semiconductor market, foreign stocks revenue has been increasing substantially. SpaceX, which listed recently, and memory EDFs, as well as semiconductor-related stocks in South Korea, has also boosted trading volume. Regarding U.S. stock trading value, we were able to see 4.4 trillion, and also margin trading also has been increasing to 1.4 trillion. Due to this, trend in revenue from foreign stocks have been increasing all by three times compared to March 2022.

SBA Securities Institutional Investor Business Here again, another pillar for future revenue. It is showing rapid growth. The institutional investor trading value increased 51.3% year on year. Along with that, the core revenue increased by 64.1% year on year. The retail JGBs. Currently, interest rates are really good, so very popular among customers. So in the future, who is going to buy JGB? It's one aspect. NSBI Securities is positioning retail JGB as one of the strategic products and we're promoting sales to our customers. In the first quarter, 150 billion yen is the sales amount among securities firms. I think we are ranked number one. The more interest rate hike is anticipated, so this JGB is going to be more attractive to retail investors. SBI Securities' primary and secondary underwriting business for stocks and bonds is the strengthening 16 million accounts we have. And as to ranking of IPO ranking, SBI is ranked number one with 10 cases and 90% of underwriting shares. And with underwriting of corporate bonds and government bonds, we are getting very good yen denominated revenue. Moving on to insurance business. So, a listed company needs to be an insurance group. Here again, for each item, our numbers hit record highs. As to ordinary revenue, year-on-year basis, excuse me, for the ordinary profit, it grew by 23.3% year-on-year basis, driven by increasing number of policies. It surpassed 3 million in 2025, and now 3.25 million, increasing at 13.6% Kega. In January, Kyobo Life became an equity method company, and it is generating a big impact. Satoe Kusakabe It is increasing its profit and other two big insurers in Korea are not doing so. And about 16 trillion yen of total asset, we can expect various business tie-ups with them and we are discussing with them about that. Asset management business. Both revenue and profit hit record high numbers. As to pre-tax profit, it increased 103.6% year-on-year, more than doubled at 2.7 billion yen. This is the company, SBI Global Asset Management, on a J-GAP basis for every line item. Numbers are record highs. And for profit attributable to owners of the company, 1.4 billion yen, up 177.2% driven by increasing AUM. Now it is about 14 trillion yen. This fiscal year, Inorganic strategy included, we would like to target at 20 trillion yen and for 2029 we target at 50 trillion yen.