Softbank Group Corp

First of all, I would like to introduce today's participants. From left, we have Yoshimitsu Goto, board director and CFO, CISO, and GCO. Kazuko Kimiwada, Corporate Officer, Senior Vice President, CAO and CISASO. Navneet Govil, Executive Partner in CFO, SP Investment Advisors, and SP Global Advisors. And Ian Plumpton, IR Vice President, ARM. Today's announcement is live broadcast over the Internet. Now we'd like to invite Yoshimitsu Goto to present you the earning results and the business overview. Thank you very much for joining us despite busy schedule. I'd like to end the presentation. Again, my name is Goto. Very nice to meet you. The error is AI and our focus is definitely AI. and we are trying to expand into different areas from AI's perspective. Looking back in 2016, Google's AI AlphaGo shocked the world by defeating one of the top Go players. It was a milestone moment. and that symbolized AI's volition toward intuition and creativity, which was thought to be unique to human. The year 2016 was around the time that the third AI boom took place. As you can see, the top part is talking about history from a technical perspective, and the bottom part is from SoftBank's perspective, what we have done in that time frame. Currently, we are in the fourth AI boom, and GenAI, like ChatGPT, is up and running. Again, the same year when AlphaGo defeated one of the top Go players, we acquired Arm, marking our deep and lasting commitment to the world of AI. Since then, we... met OpenAI, and through the SoftBank Vision Fund, we've steadily built a strong foundation, investing across the wide spectrum of AI-related companies. In 2020, Master Son, at earnings call, said that those who control AI will control the future. In 2020, not so many companies were looking at AI, especially in their businesses. But we made a commitment that we will drive AI-oriented strategy. And the AI investment we began nearly a decade ago are now bearing fruit, reflecting the growth of our NAV surpassing 30 trillion yen. driven by arms growth and good performance of the portfolio companies of SoftBank Vision Fund. At earnings call, I don't often talk about share prices, but looking back in February 2000, SoftBank hit the high share price, and that time was called IT bubble or net bubble, and it was a memorable year because in February 2000, I left a bank that I worked for a long time, and at the end of May or June in 2001, I joined Softbank Group together with Kasai-san, who was my mentor. Through the history, what would happen since then? In the last few weeks, our stock has been performing very well, and we hit 12,560 as of today, which was the record high. Share price and market cap have a very significance. Market cap represents our value Whereas share prices, from investors' perspective, they are obviously interested in how share prices go. That's very important for shareholders to calculate return. So share price is important, and relationship about market cap and NAV is also important. And if you look back, as you often indicate, soft tank discount or NAV discount are rather big. The gap between NAV and market cap is around 40%. In fact, until quite recently, it was over 50%, but the gap has been narrowing, which is good. I think that people start to realize the direction we are trying to go to is correct. In fact, as of today, discount is 39.8%. For the first time after a long time, when we see 30% level of discount. So with that, let's take a look at first quarter of FY25. First, net income 421 billion, huge improvement year-on-year by 569.1 billion. Share price increased, pushed NAV to 32.4 trillion yen. Despite major investments, including investment in OpenAI, loan-to-value improved to 17.0%. and cash on hand improved as well finance wise while we are making big investment we are looking at better finance and nav increase so from finance perspective we are having a good momentum and we continue to pursue nav growth with arm and open ai as our dual engines And consequently, we want to contribute to certain groups of value as a corporation. Now let me begin with the consolidated results. We don't look at revenue. net sales so often but it's better and again on investment change it was going down but still good income before income tax 689 billion huge improvement since the last year and net income 421.8 billion again huge improvement And by quarter, if you look at the history of gain or loss in investment and net income, we are an investment company, and the investment company will go through ups and downs. But looking back, the last five quarters, you see we are delivering a very steadily growth. One of the impacts on net income is a forex gain or loss, which is rather significant. From March to June, the yen increased from 150 to 100 or got stronger from 450 to 145 level and for this first quarter of FI24 was the other way around we posted net loss of 443 billion whereas we posted a net income or Forex gain in the first quarter But ultimately, the performance of our investment should contribute a lot to the overall results.

Now let me touch on the key indicators, which are the important key indicators that we are referring to. Net asset value, 32.4 trillion yen. So about the increase of about 6 trillion. loan-to-value, 17% very steady base, as I mentioned earlier. Although that we made quite a large investment, but still we are able to maintain very stable loan-to-value. Cash position increased with the various asset monetization has been taken place for our financial strategy point of view. Net asset value, sharing a little bit longer period, so 32.4 trillion yen is quite high compared to the past. Latest-wise, on the far right, share price a little bit weak these days, therefore that is performer-based, 29.6 trillion yen. But we are not worried for the short-term period ups and downs, rather that we always focus on the long-term vision. Long-term value also from the past. These days as we increase investments, long-term value is a bit of increasing trend. But right now, current level like 18 to 17%. As of today, long-term value performer basis 18.4%. Around this level, we believe that we have no issues, no problem at all. Cash position. While we're making investment activities that we have some decreasing trend, but still a little bit of shadow for trade union cash position maintained. Therefore, that again, we believe we've been able to maintain very safe level from that point. Now on to vision fund. Gain and or loss on investments. So this quarter, $5 billion result this time. Actually, each respective fund, Vision Fund 1, Vision Fund 2, Latam Fund, did make a good increase. The largest one is Vision Fund 1, $3.5 billion. Vision Fund 2 actually suffered in the past, but now that we are seeing a very good positive number this time of $788 million. And let me go into a little bit of detail. Digital Fund 1 on your left. Largest portion are from public portfolio companies including Coupang in Korea. increase in share price of coupon has been a big contributor for Vision Fund 1 and on your right hand side Vision Fund 2 of course there are several issues several reasons and for the public portfolio company wise Symbotic was one of the good contributor for Vision Fund 2 each respective companies portfolio companies They are very much AI focused and they are actually increasing in their value one after another, especially for Vision Fund 2. We are looking at very exciting companies. For example, OpenAI has been invested through Vision Fund 2. PayPay in Japan also invested from Vision Fund 2. So those are... portfolio companies that we have a very strong expectations for the future so that makes us very much excited and also highly expecting on the good growth in vision fund too as well here with the recovery of the vision fund gain in investments we see a good trend to increase and showing good positive figures here, recovering very steady basis, which make a very good quarter for Vision Fund and SoftBank Group. Vision Fund 2 and other investment return, which I regularly show you at earnings, So Vision Fund 1 for the investment cost of $89.6 billion, it has grown to $116.6 billion. Even with the March end comparison, it is increasing $3.6 billion quarter over quarter. On your right-hand side is Vision Fund 2 and LATAM Fund. 78.2 billion dollars investment cost and still investment return stays at 55.8 so we do need a further effort on this but compared to the quarter before actually that is increasing by 11.5 billion dollars so fund itself showing a good sign of growth and increase in returns and values. More specific portfolio company-wise, for this quarter, we have two IPOs. Both are fintech companies, eTroll and Chime. And Late-stage portfolio companies on your right-hand side, some of the fair value of those are $45 billion, which includes OpenAI, PayPay, ByteDance, Fanatics, Kintanda. So those are the late-stage portfolio companies. And there are already companies that made public filings, such as Klarna, Lenskart. So there are also good expectations to go public. So we have a good expectation on those late-stage portfolio companies. And at the same time, we're doing several seedings to the AI-related companies, and we are also expecting on those to grow. Those two companies that made an IPO this quarter, Time and Itro, On your left, Chime, this is the leading U.S. neobank providing customers with low-cost mobile-first banking services. eTrop, a personal investing platform opening the world's markets to everyone. After the IPO, of course, the share price goes ups and downs, but actually both already showing a performance exceeding the IPO pricing. So we are very relieved to see such a trend. PayPay. In one word, progressing well for IPO preparation. Because they enter into IPO preparation, I cannot say anything further more from here. So I cannot say what timing or venues or whatever those questions. I cannot answer any of those questions, so please do understand, thank you very much, but making a very good progress. I am also the member of the board for APPE, so I also can enhance that it is making good progress. And results-wise, number of registered users, 70 million users achieved, which is quite a number, I believe. More than one in two people in Japan are using, and actually two out of three smartphone users in Japan are using PayPay. Of course, some people are using more than two smartphones, but still. two out of three smartphone users in Japan using PayPay. So that actually explains the good coverage by PayPay to Japanese people. And the two KPIs that I can share at this moment, GMB on your left-hand side, how much product has been addressed by PayPay, And 4.5 trillion yen this quarter. Actually, 24% year over year. So it is making a very good progress trend. On your right-hand side, EBITDA. Here, too, increased by 87% year over year. Amount-wise, ¥21.9 billion. So those pages that we just shared actually really confirm that they are very much making a good progress in preparation of IPO.

Next arm. Revenue was good. driven by royalty in revenue growth, which increased 25% year on year. Adjusted operating income was slightly lower than last year, and that might draw attention arms investors but as you all know it was due to increased R&D investment for future growth that is an investment to capture future growth so necessary cost and needs to be spent on now so that we can gain fruits later which what SoftBank is good at and ARM is doing that as well and they are doing and they are doing on their own while at the management level we are communicating each other long-term growth is something that we expect ARM, and we actually encourage ARM to spend the money for future growth. From business perspective, compute subsystem, or CSS, is a key driver. And CSS is an integrated RP package that includes multiple CPUs. and CSS helps customers shorten development time and reduce cost. It shows the number of contracts they have acquired, and 16 may seem small, but those customers are large companies, so I believe that the count has significance. and five are shipped at chips and that contribute to expansion of royalty revenue and arm is also gaining market share in the cloud segment if you take a look at left hand side ARM-based chips known for their performance and energy efficiency are being adopted by AI infrastructure leaders worldwide. Exact about 50% or more of server chips introduced by major hyperscalers this year to be ARM-based. On the right-hand side, The number of enterprises using ARM-based chips for cloud processing has grown more than 14 times since 2021, exceeding 70,000 in 2025. You can see a rapid growth. So ARM is quickly becoming the core platform for AI-era cloud infrastructure. Arms guidance is $1 billion to $1.1 billion in revenue for second quarter, implying about a 25% year-on-year growth at the midpoint, which is pretty good. Adjusted operating expenses are expected to remain a little bit high due to Like I said, continued R&D events investment. We are confident that this strategic investment will lead to a strong long-term growth. So we again have high expectation from ARM. Now, OpenAI. Just to remind you, if you can look at the left-hand side, investment commitment is 40 billion. Of that, 10 billion to be syndicated to external investors, our investment will be 30 billion. That's the framework. The first closing took place in April, and first closing was 10 out of total. As a soft bank, 7.5 billion and 2.5 for external investors, and the first closing was successfully completed. And the second closing is planned in December when remaining $30 billion will be invested by SoftBank, $22.5 billion, and up to $7.5 billion from syndicated investors. so again this has been going very well if you take a look at this slide to show how it's going well so we started with 2.5 billion for syndication but it turned out 5.7 billion for the first syndication then excess will be allocated to the second closing and a lot of leading investors show interest and we are looking at the good shareholder mix excuse me investor mix talking about OpenAS Business Growth, which is amazing. The March number was public number, and the weekly active user as of March was 500 million. At the time of August, it is expected to reach 700 million. I believe that the speed exceeds their competitors. OpenAI's value should be reflected by this rapid growth. And annual recording revenue, or ARR of OpenAI, or the latest one-month revenue times 12 months is expected to reach 12 billion, which is not a public number, but some people expect. The ARR could reach $12 billion from $5.5 billion as of December 2024. Again, huge growth. And that should be a strong backbone for their finances. It's been only 10 and a half years since the release of ChatGPT. Amazing speed, isn't it? We have a very strong relationship with OpenAI, driving the AI business forward, which is great. OpenAI introduced ChatGPT agent recently that combines these three capabilities, search, organization, and conversation. And this agent can think and act autonomously to complete a given task. As for use cases, for example, product purchases, this agent can do research and place an order on behalf of user. And they can create slides quickly, and they can improve efficiency of operations and tasks. So this agent is something that we keep eye on. We want to accelerate AI revolution, our strong focus, and OpenAI is not just an investee. For us, OpenAI is one of our most important partners in the AI revolution. One example of our collaboration is the Crystal Intelligence. We are preparing to deploy this platform group-wide within SoftBank. As you can see on the left hand side, we have 50,000 employees from Our company, parent company's perspective, it doesn't feel real, but we have 50,000 employees and 100 million customers, and we have 2,500 systems. So that's probably the reason why we need a lot of systems. We want to build 1 billion agents by the end of the year, and we are working so hard to reach the goal. SoftBank mobile operator is looking at call center use case. There are a lot of campaigns going and there are a lot of products and services and there might be some errors and troubles and an AI operator who has good understanding and knowledge about history and the current status, an AI operator may work much better than human operators to address problems or meet customers' needs. Whereas at Line Yahoo, they are looking at the commerce agent as a use case. So that agent has a deep understanding of users, recommending the best possible products, and how to purchase and how to use the products. So those are some of the use cases that our group companies are looking at in terms of AI agents. And we are excited, or kind of scary, but excited to see how our group is going to change or transform.

And that's where our project Stargate comes in. It's the concerned parties' technology products. sites, real estate, construction, regional government, national government, with a lot of discussion with those concerned parties that we are here to work on this project. Three months before What I can say is pretty much the same story, but major sites has been selected in United States, and how can we address to build a data center, making on the priority order, and do the designing and so on. To more specific, of course, that we are working on in several states that we are working on, and the size is relatively large, and to proceed all those, we do need a kind of test running as well, so all the preparations are taking place at the same time so that we'll be able to make a good success. Although it may take a little bit more time than we originally expected, but we would like to make sure that we will be able to make a good progress on this. Now on to financial policy. Financial policy, which is the base for our financial strategy, has no change at all. So maintain a loan to value below 25% in normal times. As you saw earlier page, we are around 17 to 18% level and maintain at least two year worth of bond redemptions in cash. Again, in the earlier page, our cash position is about 3.7 trillion yen, which has more than enough to cover a two year worth of the bond redemptions at this moment. And the investment amount for this first quarter, mainly because of open AI of $7.5 billion, about 1 trillion yen equivalent. So that is why that investment amount for this quarter was $8.4 billion. So compared to the past quarter, actually it made the largest investment compared to these recent quarters. To proceed these investments activities as an investment company, we do need to monetize and divest and invest. That cycle is necessary. So divestments and the investments. But these two... It's not always a line in terms of timing. We always seek to find the best timing to do so. And for that timing, we'll have some gap, which will be filled by asset debt financing, including the bank loans, asset back financing, and all those schemes. So divestment and the new investment activities, we would like to optimize the timing of those by doing so. So that's how we manage our financials. Monetization of our assets, this time we have sold T-Mobile shares in June and August, two times, in total $7.8 billion. And that proceed has been back to us. And Deutsche Telekom, DT shares, is also being used for derivative monetization, which is so-called color transaction, which is kind of similar to forward a transaction. partially we have already monetized and this time the remainders we have made an early unwind to make 1.2 billion euro cash received in ransom through this early unwind transaction which also contributed to improvement of our balance sheet so not only making new investments but and not only increasing our debt we also like to see divestment to keep our healthy balance sheet. Another topic was the buyback program that we've been working on for over a year. and the due came this time, and we completed our share purchase program, which also made by our public announcement. Originally, this program was 500 billion yen. Actual acquisition was 42.03 million shares. Amount wise, about 330 billion yen. At the time we started this program, our intention for this buyback program was that because back then, last year, share price declined largely, and for that large drop of share price, we wanted to show you that the way other company can make an immediate reaction to such situation. And when we see the sharp drop of share price, that's also a good opportunity for us to do our buyback program. That's why that we executed our buyback program. After then, fortunately, our share price has recovered since then. And 7,800 yen for the average purchase price for this buyback program, but in the past two months, there are kind of a target price of course for the acquisition of share price but actually the share price itself exceeded and grow even more than that and we believe that that complete our mission so therefore we have decided we have completed by that program is the amount of 330 billion yen going forward Shareholders' return is very important for us, strategic investment, improvement of balance sheet, and also shareholders' return is a very important agenda for us. So new investment activities, return to stakeholders, shareholders, and also the improvement of the balance sheet, which is to return to our shareholders. debt holders so balance of those three is going to be very important and that will make us decide the timing or the actual program placements of the buybacks going forward share price as we share with you in the very beginning of this presentation we have updated our record high since IPO and today ended 12,560 yen Under such an environment of hitting a record high since IPO, and having this earnings announcement, and we don't want to see the drop tomorrow, the day after earnings, but still, we very much focus on the mid to long-term growth, so there may be some ups and downs anyway. But good news. It's very good news, of course. So we would like to continuously see the maximization of our net asset value, which is one of the most important KPO bars. And the NAV discount, which is another thing that I have mentioned in the beginning of this presentation. Last year, first quarter, our discount was 57%. And at the July to August, we are making a very good improvement of NAV discount. So right now, as of today, Performa pays a 39.8% discount. So this is another thing that we would like to continuously focus on. And what is necessary to focus on this discount is the strategy of the company. which includes AI business strategy or our company's strategy. Once that's understood, then that IBD discount will be narrowed down, and that accountability comes to us, and we would like to make sure that we will be able to welcome narrowing down our discount from finance point of view, investor relations point of view, to our stakeholders and to the market that we would like to be able to provide the good, well, information to be able for stakeholders to understand our company and business. And the highlights, once again to wrap up, net income of 421.8 billion yen, net assets value climbed to 32.4 trillion yen, loan-to-value improved to 17%, and purchasing growth with arm and open the eye. So we would like to continuously focus on the growth of our business and the company. At the shareholders meeting back in June this year, he said we would like to aim to be the number one ASI platform provider after 10 years. So that's kind of – he means is that we would like to become the very core of the industry. For example, hyperscaler companies like Google, Apple, Microsoft, Amazon, Meta, those – They are also the platformer but now in 10 years we will be seeing the ASI era and there that we also like to show and become the very core of that industry and the business and to become such a presence we need to back calculate 10 years back and what we should do now that's something that the master always do to achieve what we would like to be in 10 years so that's something that we are working on for those preparation every day open the eye so those two companies together with them will you like to showed a good presence in the AI industry and AI business. And this is our corporate philosophy, once again, to recap, information revolution, happiness for everyone. Thank you very much. That concludes my presentation.

Now we'd like to take questions. First, we'd like to take questions from the floor. Please wait for microphone. and start with your name and affiliation for online participants please access zoom as instructed earlier and press raise hand button and wait for your name is called please make sure that you refrain from connecting to other live stream to avoid any echoing if you to withdraw your question later please press lower hand button for those on Japanese zoom line please make sure you ask questions in Japanese we'd like to take up to two questions per person so that we can take questions from as many people as possible first from Yagi from the Nihon Keizai newspaper. First question is about portfolio strategy. Vision Fund has been performing well this quarter, but one media said that requisition of part of Vision Fund portfolio was happening. And the first closing of OpenAI was from Vision Fund 2 you mentioned. So what's your portfolio strategy going forward by using your own balance sheet or utilizing the Vision Fund? Thank you for your question. Which vehicle we should use for investment? In principle, And if we can expect exit from an investor, we would use a fund and We might use our own balance sheet if we don't expect a soon IPO or exit. But sometimes some combination is needed, but we make a decision after a thorough discussion at the management level. And the second question is about Stargate. You sounded a little bit... negative, but Stargate Norway was an announcement by OpenAI to build a data center in northern Norway. I wonder if that deal is something that SoftBank is involved in, and also expansion to UAE might be a possibility. So other than United States, is there any update that you can share with us with regards to our how you involve. We are not involved in the Norway thing, but OpenAI's expansion to such area can be possible, but I suggest you talk to OpenAI directly. About UAE, at the moment, we are not taking lead in such opportunity. We are pretty much focused on the U.S. and we'll try to keep you updated on what we are doing in the United States.

Thank you very much. Any other questions, please? On your left. My name is MJ from Bloomberg. I have two questions. First, Ampere acquisition. FTC in United States has asking the very detailed screenings in Ampere acquisition. What is the status of this discussions or acquisition process? Yes, as for Ampere schedules for closing of the transaction, there are several discussion agenda there, and we are expecting to be able to close by around the latter half of our fiscal year, this fiscal year. There are some media coverage regarding the reviews and so on, but that's all included, and we've been communicating with Zampia, and looking at the latter half of this fiscal year is a kind of a schedule we have in our mind at this moment. One another question is about Vision Fund, and I'll switch to English.

So the Vision Fund spent $7.5 billion on OpenAI. I'm wondering how much more money Vision Fund has to spend either further on OpenAI or any other startup investments for the rest of this year?

Thank you for your question, MJ. So as you know, over the years since we launched Vision Fund 2 in 2019, the commitments from SoftBank Group have gradually increased over the years. And with respect to OpenAI's second tranche funding that's expected to take place in December, as Goto-san said, we haven't yet made a decision of which vehicle we will invest from, whether it's going to be from SoftBank Group's balance sheet or Vision Fund 2. The funding is actually fungible between any of the SoftBank entities, and Vision Fund 2 is primarily owned by SoftBank groups. It doesn't really matter. But as Gotusan said, historically what we've done is for minority investments, we typically do those through the funds, and control investments are primarily done on SoftBank group balance sheet. But in this case, we've not yet made a decision.

So we don't know yet how much, like, you guys would have left for the Vision Fund for other investments.

As you know, the Vision Fund commitments have continuously gone up over the years as we find as our pipeline for new AI investments increases. So the commitment levels to Fund 2 can continue to go up.

Thank you. Thank you very much. Any other questions from the floor?

Ono from Yomiuri Newspaper. A question about Stargate in progress. Goto-san mentioned that Stargate has been uh going slower than usual but uh what is the main reason why it's slower than usual and you expect to accelerate and why you believe that the stargate project can be accelerated and the trump administration announced that they would impose 100% tariff on semiconductor related businesses. So I wonder whether Trump administration's policy could have any impact in any way on the Stargate. Yes, a project progress of the Stargate. I said slower than usual. That was my gut, my feeling, my personal observation. One of the reasons is site selection. Of course, there are a lot of options, and it's been taking time to select good sites. And there are a lot of stakeholders. To build consensus, we need to have a lot of discussions and also technical issues and construction issues. There are a lot of things that we need to look at. Then once the model is built, you can repeat the model That's true to project finance, for example. The first project finance would be a model piece for follow-on project finances. So we want to deliberately spend the time to build the first model successful. And also we need to look at how you test a project to make it successful. So eventually, looking back, You may think that it was taking more than or longer than expected, but we don't have to worry about that. About the semiconductor tariff, well, I don't think that no impact at all. There might be some impact, but there's no point to worry about that. Maybe project budget maybe needed more than we thought, but I think we'll see how it goes. My follow-up question is, Oracle for the Stargate 1 was what Oracle talked about, So what Oracle does and what OpenAI does, how they are positioned, where are they positioned for next 10 years, 500 billion was the plan. So again, in principle, project member includes Oracle and so they made an announcement referring to Stargate and the Stargate no way like somebody mentioned if they have the same vision working on something we should appreciate that we should respect that whereas Oracle made announcement on their own data centers Which is fair. And we should focus on wherever we are involved in.

Thank you very much. Then next question. On your left, the second row. Thank you for your explanation. My name is Makina from NHK. So it relates to the previous question, Stargate. The current schedule-wise, do you have anything that you can share with us? In the overall schedule, we have no change in that. At the time of our announcement, we said $500 billion over four years. And it's kind of a target that we would like to aim to achieve. So how fast can we achieve that? And how can we address that? That's our position, and we have no change in that. This is quite a time-consuming project. It's not something that we can do overnight or anything. So we need to... if it's a construction project after once we launch and then we complete the construction then we launch service and that will take us minimum year to year and a half longer one may take three to four years so 500 billion over four years is still the same target we have and how we're going to address that and can we can we explain to you about the detail that's something that the We would like to try our best while we're working on these projects. And you mentioned about AI agent, SoftBank, Linea, who is working on at this moment, call center operator or the shopping agents. Is there any consumer service that you're going to provide to the market, or is there any plan on that? What are the things that you have in your mind? AI agent itself is a kind of a tailor-made type of product. So first, we would like to utilize inside of SoftBank Group, and 1 billion agent is something that we would like to work on. So whenever we think about 1 billion agent, what do we need to do? So we would like to start with where that needs most, and we will address the project. This is the first project, first time for us to address, so we are just excited to see how it grows.

Thank you. And next question from the venue. Morita from Toyo Keizai. I have two questions. First, about the Stargate and about project finance. I assume that you have been communicating with the financial institutions. So what's your view on cash flow from AI perspective? Some people are positive. Some people are conservative. So again, what's your view? financial institutions' mindset about product finance. And second question is to Navneet.

Hello, Mr. Navneet. I'd like to get your plan of improving the investment performance of Vision Fund 2. So what is the key point of improving the performance of Vision Fund 2?

Okay, maybe starting from the first one. Communicating with the financial institutions. Yes, definitely I am forefront when it comes to communicating with financial institutions. This is a significant, huge project. There are Japanese mega banks and US banks and European banks that we have a good relationship with them. They are very positive about the project. We are going to build one by one when it comes to project finance, whether there are 20 cases or 30 cases. We need to build data centers and packages. So what we want focusing on is to make the first one successful. And for the first project, we are ready to have a discussion more in detail and specifics. For example, our major banks in Mizuho has had a deep discussion with us and again overall those financial institutions are very positive and supportive.

Performance of Vision Fund 2. What we're beginning to see is a couple of things. One is a very strong pipeline of IPOs. As Guttasan mentioned in his presentation, there are a number of upcoming IPOs. PayPay, Klarna, Jaka Robots, Our India Portfolio, Misho, Lensquart. The FinTech portfolio overall, we recently had the IPO of Chime and Klarna to happen. That's one. The other is we're beginning to see a lot of these investments that were done with the AI revolution in mind and AI disruptive companies. We're beginning to see as the AI revolution and as we are progressing towards artificial superintelligence that Sonsan has been talking about, these companies are finally beginning to reap the benefits of that. And some of the strong investments we have in Vision Fund 2 are other than OpenAI, is PayPay, and a number of other companies. Our India portfolio continues to do well. Our fintech portfolio continues to do well. So over time, we'll continue to see value being unlocked by these investments.

Thank you very much.

Thank you. Any other questions? Second from the front on your left. I have one question about crystal intelligence. Recently, Mizuho Financial Group has decided to introduce that and for those good relation banks or the companies or the one that the first user of those and do you have any target for this year for Crystal Intelligence introduction? That's a rather softball corp side when it comes to target of the crystal intelligence that Miyagawa CEO is working on including the numbers for a target. So from me, what I can say is that Mizuho recently announced express their intention to introduce, but this is quite a large amount or a large cost service, so this is not something easy to say, yes, we will do. So I believe the close companies, close business may start expressing their intention. But as far as I understand, quite tens of companies, large enterprises are has already been directly communicating with SoftBank Corp to consider so we would like to make it successful one after another but for that we need a service itself to be finalized and like 3 billion, the number here, and we do need to have a very rich service which is worth of 3 billion. That's another important part that we need to work on together with OpenAI, and that's something that we are making every effort on.

Any other questions from the floor? Thank you very much. That concludes the SoftBank Group Corp. earning result announcement for three-month period ended June 30, 2025. The video footage of this meeting will be distributed on demand from our corporate website. Thank you very much once again for joining the SoftBank Group Corp. earning result announcement for three-month period ended June 30,