Softbank Group Corp

Thank you very much for waiting, everyone. Now we would like to start the first one group co-op earnings results announcement for fiscal year ended March 31st, 2026. First of all, I would like to introduce today's participant. From left, we have Yoshimitsu Goto, board director and CFO. Kazuko Kimiwada, Corporate Officer, Senior Vice President and CAO. Navneet Govel, Executive Partner and CFO, SB Investment Advisors and SB Global Advisors. Jason Child, Executive Vice President and CFO. Today's announcement is live broadcast over Internet. Now I'd like to invite Yoshinitsu Goto to present you the earnings results and business overview. Thank you very much for joining our earnings announcement today during your business schedule. So I would like to update you with our two-year results. When we announced the third quarter announcement, I remained seated and make a presentation. I still have some in the recovery process for my knee, so let me stay seated for the presentation. Thank you very much for your understanding. For this year, Masa and together with us actually made every effort, and I believe we were able to make quite a good result and outcome. Market and environment, which we all know, that AI became even a bigger buzzword, making an influence. to the variety of places and segments in industry, this influence becoming bigger and stronger. And that is actually creating the good expectation as well as risk consideration as well. So I understand there are many discussions taking place here and there. From the SoftBanks Group point of view, we made quite a good capital intensive investment in the big AI infrastructure and now we start seeing the physical AI actually utilized in practice and at the same time AI agent real privilege execution is now discussed at the same time also sometimes this AI service can be replacing existing or traditional business in some extent and at the same time it may create the materializing the risk which has not been seen in the past And our vision, based on all those circumstances, we aim to become the number one ASI platform provider. And now that we are continuing our journey, and this was kind of a starting year for this fiscal year, We have shared this slide in many occasions by me, myself, and Masa himself, and there are four major pillars when it comes to ASI, AI model, AI chip, physical AI, and AI infrastructure. And here I would like to share how we've been developing in these areas. Especially, I would like to highlight those two, which is AI model and AI chip. For AI model, we have invested in OpenAI. And at the same time, they've been making a good growth, as we expect. And we've been having a good discussion when it comes to strategic collaboration. That is another good thing. benefit in terms of increasing our knowledge in AI. And for AI chip, of course, this is the main focus by ARM, and recently we saw market cap very near to the record level, $221 billion. For AI model, let me deep dive here. So in October this year, once we finish all those investments that we committed, that's going to lead us to $64.6 billion, which will be nearly 10 trillion yen under the current forex. And at the same time, we've been expanding strategic collaboration with OpenAI. For AI chip, which is led by ARM, Of course, Ampere is going to be in this section. And the biggest move that Arm made was to announce first in-house CPU chip recently. Also, we have completed the acquisition of Ampere. which I would like to touch on later pages. And also we have Jason, CFO of BARM, so if you have any questions, please do not hesitate to ask any questions to him. Physical AI, this is actually a long history in us. PIPA, you may recall, the humanoid robots that we started with. So physical AI section is has several good portfolio companies, of which about 20 of those portfolios have been covered together under Robo Holdings. And in addition, as we announced earlier, we have announced the acquisition the major robotics company ABB Robotics business so in the coming few months we are expecting that we will be able to close this acquisition transaction and that can be another good strength for our physical AI segment and that can be a great value added to our group Last but not least, AI infrastructure, which is led by SD Energy in United States. This entity is leading a main role, and also we announced the major Japan-US public-private project, which is the Ports Technology Campus, which is a symbolic project for this AI infrastructure segment. Not only this project, but we also are looking at the development of further data center sites led by, mainly by SP Energy. And we are looking forward to have further development and the progress of such projects. And with these... efforts how does has that been contributed to our numbers here profit actually highest ever 5 trillion yen level in net income in this net income as far as we understand we believe this is highest EBA profit in Japanese corporate history from the net income highest EBA back in 2020 we achieved 4.9 trillion yen that was the highest and this time we were able to exceed that number in addition When you see to enterprise value, actually this is even more important indicator than P&L, which is net asset value. So from our assets held, this net debt, and here we are looking at 40.1 trillion yen for the net asset value for this quarter. Latest number pro forma basis, actually, as of this morning, an estimated basis, 47.7 trillion yen. That's a net number, so this is less interest-bearing debt.

Consolidated results.

net sales gain loss on investments income before income tax and net income in all segments we were able to make a significant growth across all profit measures as a key performance indicator net asset value as of the end of March this year 40.1 trillion yen And the latest number, pro forma basis, about 48 trillion. And the loan-to-value, which is net debt divided by equity value of holdings, 17.0% as of the end of March. Again, when you look at the previous year ends, actually making even improvement, even after the bigger investments that we have made. And the pro forma base, latest number, I would say 15-ish percent. But the balance sheet moves around, so this is just a four-year reference. So as of March end, I can say we've been improving, actually, since then in terms of loan-to-value. And cash position, as on financial policy, We always like to maintain our cash position to cover two-year equivalent of the bond redemption and actually this covers even more than that. And as a result, it comes to 3.5 trillion yen for the cash position as of the end of March. Now...

Let me touch upon major contributors to the financial results. First arm. Again, they announced first in-house chip. There was some rumor in the past, but officially announced in March this first in-house chip. And also they... had the record high market cap. Since listing, their market value was $52 billion. It's been growing for over four times over the last less than three years. In terms of revenue, they have been increasing revenue year on year, and FY2025 in Japan calendar, they recorded 4.9 billion or up 23% year on year.

So they have been growing very steadily.

As you can see on the slide, left-hand side, in a cloud market, they have gained more shares. AWS, Microsoft, Google, they used ARM services. CPU and on the right hand side in the area of CSS or computer subsystem which has a very high margin since they have capability to deliver combined which allows customers to develop on their own very easily. So, again, in the CSS area, they have been growing, and they have acquired up to 23 contracts, including Microsoft and Samsung. In terms of EPS, again, they had the record high EPS. They have spent a lot in R&D for their future growth. However, the revenue offset such R&D expenses, and they are able to hit the record high EPS. And let me remind you why ARM is strong. As you can see, ARM provides IP license to semiconductor makers. So they have a business model to deliver source of the semiconductor industry. Without ARM, the industry wouldn't stand. And they have a compute platform most popular in the world. And total chips ever shipped is over 350 billion. And the global population using products or services, percentage-wise, 70% of the people in the world use ARM in any way. And there's a huge developer community based upon ARM's technology to develop varieties of semiconductors. In fact, 22 million developers are making use of ARM technology. So ARM is leading the whole industry. Like I said, they announced the first in-house CPU chip. they provide licenses and royalty to customers traditionally. So on top of that, with the in-house CPU chip, they are going to deliver more. So let me show you A short video clip, Reni talking about the background, why they decided to build their CPU chip.

In the last number of months has been this explosion of agents. As we move to agentic query, the number of tokens per human go up by 15x, if not greater. The data center is choking. These accelerators, which are very expensive, that generate the tokens, now need to send those tokens back through the cloud. So what you see is a huge bottleneck now. So what does that mean? You need more and more CPUs.

That's why... they decided to offer most efficient agentic CPU in the world, or ARM AGI CPU. They developed ARM AGI CPU with Meta, and there are launch partners supporting them, including OpenAI. those major brands are supporting them and they have been communicating each other. Based upon the new business model, how ARMS financial performance is going to look like. Announcement was made in March. And like I said, their revenue in FY25 was $4.9 billion, but in 2030 or in five years, they are expecting to hit five times the bigger revenue. And also, EPS, they expect five times the bigger EPS over the next five years. So... arm is ready to hit those numbers and from profitability perspective, they already have an IP business which has high margin and with this chip manufacturing arm, I think it's going to draw a new growth story going forward.

Thank you. Let us go into the OpenAI slides. There are three highlights for OpenAI, I believe. First, variation compared to a year before, which was $260 billion in March 2025. And that became $730 billion. And investment amount in fiscal 2025, as of the end of March, $32.4 billion has been made in OpenAI. And from April to October, over three times, that in total we will be making a follow-on investment of $30 billion, and that has already been agreed. The first chance in April, $10 billion, has been already paid. And this is the open AI valuation movement. Initial investment in open AI back in September 2024. Back then, open AI valuation was $150 billion. Last year, we had additional investments of $30 billion. At that time, When we made a commitment of $30 billion additional investment, valuation was $260 billion in March 2025. And after then, they had financial round, another financial round, and this February in 2026, we made a follow-on investment commitment. In that moment, a valuation was $730 billion. So since the initial investment, it took about two years and a half and actually made about five times of the valuation. I assume you are also a good user of ChartGPT and the service that provided by OpenAI that you've been experiencing. And I think that you can understand why they are making such a great growth in valuation. And also, this is the investment amount in OpenAI, $2.2 billion in fiscal 2024. Last year, $32.4 billion. And additional follow-on, additional $30 billion. So total investment in October this year reaching to $64.6 billion. In that moment, ownership will be somewhere around 13%. Once again. Out of $30 billion, $10 billion has already been funded in April this year as a first charge. And this is the growth of the chat GPT service. And these are the data that are shared and disclosed by OpenAI. And the weekly active user here, 900 million plus number of users are actually counted for February 2026, which is accounted for 15% of global Internet users. And also paid subscribers, it's over 50 million subscribers now. So GPT initially... focus on the retail or the consumer market. So you've been seeing these numbers, but actually Open Air has been also putting an effort in enterprise business, and they are accelerating this business as well. Right now it's about 40% enterprise share of the total revenue, and that is expected to be 50%. by the end of 2026. So as a result, consumer business and enterprise business will be about the same size. That's how we see around the end of this year. And also paying e-business users as of this April that they have already reached an exceed 9 million users. And the coding agent, as you can tell that the coding is a very complicated task, and this agent executes complex coding tasks on behalf of you or for you, and that actually creates a great productivity and how much people are actually using it. This is only in four months, and this number of users are in ten times. So this growth is tremendous, and that's something that is happening in the coding area. So compute is the foundation of AI evolution. You need more compute, And with having more compute, you'll be able to have more intelligent models. And once you have the more intelligent models, that leads you to more intelligent products. And that actually faster adoption and more revenue and more cash flow.

So that's how we've been seeing wider range of the use case in AI.

So access to compute is a strategic advantage, and also compute is provided with multiple partners, but that doesn't come to you overnight. You do need a good preparation, and you do need strong partners, otherwise you cannot really have an access to compute. And open AI, having a chip vendors like NVIDIA, Oracle for data centers or cloud providers such as Microsoft. So having a great relationship and partnership with those companies as a result they'll be able to create such an infrastructure and having an access to compute. And they are in the process of such a development of further advantage for the company. And now on to vision funds. Actually, it is showing quite a good number this time that we are happy to share with you. 45.7 billion as an accumulative investment gain compared to the year over year that's additional incremental 46.2 billion and accumulative investment gain is also becoming a positive number and this is the actual cumulative investment gain and or loss from the Vision Fund segment point of view and actually made a significant improvement. 24.2 billion incrementals for Vision Fund 1 and 21.8 billion for Vision Fund 2. So since 2022, 2021, that they made a significant increase And after then, actually, they made a great recovery compared to the time of the 2020. And the Vision Fund 1 actually is making a steady growth. Of course, in portfolio, some of them are doing good because of several factors. especially for those public securities, there are some companies that are having some slowdown of the share price increase, but each one of them has their own reason, and as far as we understand the reasons, I believe that we can understand, and at the same time, Vision Fund will be able to see and manage leading to the best monetization for the fund, as Vision Fund already finished its investment period. And for Vision Fund 2, on your right-hand side, I need to say Open Air's contribution is large. These numbers are Open Air's to the private company. But at the same time, we will be expecting some exit stories going forward for those portfolio companies, including IPO or divestments. But the fund, too, still have a good investment period, so we would like to – look forward to see a good growth of those portfolio companies, including OpenAI, for the future. And here's the cumulative investment return. You see, respectively, in Vision Fund 1 and Vision Fund 2, actually making a good growth. For Vision Fund 1, you know, left-hand side, it is making a good investment return. $72 billion has been already exited. And on your right-hand side, Vision Fund 2, cumulative investment return, $119 billion. So making a good recovery here as well. And public listings and pipelines for Vision Fund is shown on this slide. Fiscal 2025, seven listings have happened, which include PayPay, which was quite a large size of the IPO, and we are very happy to have them in this list. And cumulative, since inception, 62 listings have happened. I believe this is quite a good number from the IPO results point of view. On your right-hand side is a late-stage portfolio. fair body, total fair body is also growing 118 billion compared to the last year March 81 billion incrementals. This again having a big contribution from OpenAI but also there are other contributions from ByteDance, Fanatics, there are also quite good companies that we are looking at. PayPay, as I mentioned earlier, March 12th that they went to public in Nasdaq market. Market cap, $12 billion. So this was the largest Japanese corporation listed in the United States. I'm also a member of the board of PayPay. And they actually started from the scratch and came to this way, to the IPO, and also making a big IPO, which is quite impressive. journey that they have gone through. Of course, Masa has quite a passion in it, and I believe his founder entrepreneurship actually led to this result. And as a group, we are very motivated to see that these companies of our group is making such a great growth. And Taipei operation is actually doing pretty well as well. Number of registered users exceeded 73 million. So it's used by more than one in two people in Japan and more than two in three smartphone users in Japan. GMB also making a very steady growth here. which exceeded 19 trillion yen. And the payment, or cashless payment, market is about 160 trillion yen size. So 19 trillion yen GNV means actually accounts for 12%. So I believe that it's making quite a good share that the pay pay has right now. And share price, it's still early to tell because they just went public. So we do need to follow several years over. But since the IPO, they are making good progress so far, which is also another happy news for me.

Now... Let me talk about AI infrastructure. This is the highlight in AI infrastructure back in March. We announced world's largest integrated power and data center campus in Pulse Technology Campus, Ohio. Masa is in the middle of the picture. together with Commerce Secretary and Energy Secretary of the United States. This is a large-scale public-private AI infrastructure project involving the American Department of Energy, Department of Commerce, SD Energy, and AET Ohio, which is power... like Tokyo Power Electrics or Chibu Power Electrics in Japan. So again, this is a public-private project. In terms of power, capacity of 10 gigawatt. Engine is gas. The mega data center, which is required by AI, needs such huge power. 10 gigawatts is equivalent or exceeding metropolitan Tokyo's average power demand, a tremendous capacity. And from data center perspective, the capacity of 10 gigawatts is to give an idea Or to put into perspective, this level exceeds the combined installed data center power capacity of the UK, Japan, and South Korea. So 10 giga in power and 10 gigawatt per data center. As you can see, this is a huge project, first of its kind in history. at the groundbreaking ceremony. Masa said that this project would stimulate the whole industry and accelerate innovation across every aspect of our lives. This will become the center of our super intelligence. This vision is shared with American government and obviously Japan is involved in this project And I think everyone is on the same page, which is to strive for becoming the center of artificial superintelligence in the future. We would love to make this project a success. And we want to grow together with this kind of huge project, not only for our group, but also we hope that growth of AI will make people in the world happy. We have SB Energy in our group, and let me remind you why this company is strong. SB Energy is a U.S. entity, and they have a capacity or capability to develop data center and power combined. They have a great track record. For example, in terms of data center, this is the AI data center in Mellon County in Texas. The construction is underway, and capacity is 1.5 gigawatt, and the tenant is an open AI, which signed an agreement for over 15 years. And also, SoftBank Energy or SP Energy started from the power business. In terms of battery storage and solar energy and the combination of battery storage and solar energy, they have great past record, like in Nevada, in the U.S. Not only in the U.S., but also in Japan. Well, SoftBank KK had an announcement of their financial results earlier this week. So, again, they have started working on data centers in Japan, and those include Tomokoma in Hokkaido and Sakai in Osaka. SoftBank led by Mr. Miyakawa is working and building those huge data centers in Japan. Now, let me move on to physical AI. What is physical AI? Robots and driverless cars. So physical AI allows those autonomous type of robots to recognize and understand what's happening around the world to execute complex tasks, which is key for future growth of AI. Let me give you highlights. First, we brought together about 20 robotic scientists and also we announced acquisition of ABB Robotics business. It goes to Robo Holdings. So from our entity's perspective, previously we started investing in those business through Vision Fund. With that, Robo Holdings shareholders are SoftBank with 58.7% ownership and SBF2 with 41.3% ownership. And Agile Robots, QDI, Sotobank Robotics, AutoStore, those are the portfolio companies under Robo Holdings. by the sectors left as autonomous mobility or automatic driving or autonomous driving. Those are the companies developing those technologies. Wave is included. I believe that we showed a video of Wave technology in the past. And Wave has been making tremendous growth. And also Neuro is one of the portfolio companies in autonomous mobility sector. And in the middle is automation infrastructure sector. like warehouses or sorting at warehouses or robots to do the work and systems to let robots work. So those are companies developing these technologies. And on the right hand side is robotics and in the future human noise will be included in this area. They have started their businesses in their respective areas with their respective expertise. We have invested in startups, but even though you call them startups, they have grown significantly already. From a valuation perspective in the latest round, for example, skilled AI valued at $14 billion, wave $8.6 billion, zipline, autonomous drone, technology developer value at 7.6 billion euro they announced auto driving system or program valued at 6 billion so size-wise they can be called unicorns so they have grown dramatically and We have been investing in those portfolio companies through Vision Fund 2 and they are entering into the next stage. I mentioned tremendous recovery of Vision Fund performance and obviously OpenAI contributed a lot. But that's not the only story behind the significant recovery of South Bank Vision Fund 2. And ABB Robotics business. We are expecting to close acquisition by end of 2026. This slide shows key strengths of ABB Robotics. have presence in over 50 countries where there are 7,000 employees and 500,000 robots. And their human resource and talents are amazing. And they have capacity of 100,000 units per year. That's production capacity with three sites. And from R&D to manufacturing and sales and service, they have an end-to-end capability. Traditionally, we often invest in smaller startups, but ABB Robotics has already built a strength and foundation together with such a strong, robust business. We should be able to expect a lot more for the physical AI.

Last but not least, financial policy. But before I go into that, because we are investment companies, so let us also share with you the investment amount so far. Back in fiscal 2023 and fiscal 2024, we actually were kind of slowing down investment activities, but after the COVID, we were pretty much slowed down. But last year, mainly driven by open-air investment, we have invested about $44 billion. This year, What we have already decided so far is the following investment, including $10 billion that we have executed, so $30 billion in open AI, and ABB Robotics, $5.4 billion. And end of December, digital bridge acquisition was announced last year. So this payment is coming sometime later this year, which is expected to be 3.1. So in total, commitment-wise, $38.5 billion has already been decided. And that's the amount we are looking in our investment capital plan. And as a bridge facility-wise, $10 billion has been secured. and we will be switching to the permanent finance after one year. So as a take-out, as we look at the size of our net asset budget, somewhere close to 48 trillion yen, and the majority of them are the public securities. So we believe we have quite a good source here to be able to flexibly choose the best take out finance from there with no rush. No change in the financial policy and this is the most important thing for us in AI with lots of growth here and there. So Masa has a lot of things that he wants to do. Management also likes to do many things, but we do need to manage and have a discipline. So that is why we have this financial policy to maintain our laundry value less than 25% and also maintain our at least two-year worth of bond redemptions in cash positions. So keeping this financial policy actually... rules our investment amount. So as an investment company, we do not set the budget for the investment. But I always like to make sure that our company is safe and sound. And in another way to express that, that this is the financial policy which rules our investment amount, which is very easy to understand, I believe, but also it's the most important policy for us. So keeping this policy... makes us a best relationship with our stakeholders including shareholders, bondholders and others and for them we like to live up to their expectations under such financial policy and here on we are still looking ahead over the next 30 years because the AI revolution just launched, just started. And we aim to be at the center of the AI revolution. And we want to be the company worthwhile to be the center of the AI revolution. And we need to think about what we need to be doing, what needs to be done. And that leads us to the objectives, our goal. And There are many things that we need to do, but we would like to do it one by one. So with those four pillars are the main focus for us. And not only this, but at the same time, we would like to do many things that are interesting for the company. Our journey has just begun. So together with AI Revolution, I think that the journey has just begun. Here we are lined up. We are the kind of financial side people, but our role is to make sure we synchronize together with the management strategy so that we'll be able to seek for maximizing our enterprise value with safe and sound financial base. That's our role here. Every quarter that I hope we'll be able to make such a safe and sound financial report updated to you. That is all from me. Thank you.

Now we'd like to take questions. First, we'd like to take questions from the floor. Please wait for the microphone and start with your name and the company. For those participating online, please access Zoom using the instructions provided in the e-mail. sent to you in advance. To avoid audio feedback or looping, we kindly ask that anyone asking a question refrain from connecting to any live stream other than the Zoom webinar. If you have a question, please click the raise hand button and wait until you are called on. If you wish to withdraw your question, please click the lower hand button. If you are joining a Japanese Zoom, please ask questions in Japanese. We like to take up to two questions per person so that we can take questions from as many people as possible. First, from the floor. Yagi from Nikkei Newspaper. So OpenAI, is that the great financial resource, and do you plan to invest more in OpenAI, I believe? And I wonder if you remain confident in OpenAI's growth, and are there any plans to invest not only OpenAI but also other resources similar to OpenAI, or you would rather focus solely on OpenAI? Thank you for your question. We are open to any possibility. So we have a strong relationship with OpenAI to move GenAI going forward, and in this sector, OpenAI has quickly gained market share. There are great competitors with great services. I'm sure that they are going to have more users coming in, which is good because the value of the sector or the industry is not determined by only one company. value of an industry should be determined by a lot of players competing each other to pursue better and delivering their service offerings to as many customers as possible. Thank you. lot of strong players. I hope that OpenAI will grow together with those strong players in this space. Thank you. Second question is about Stargate. Could you give us an update on the Stargate? You talked about Texas in your presentation. And in Texas and in Ohio, in Ohio, I believe that this is for making equipment for data centers. And in Texas, if you could give us any update on how much you have built so far, and if there are any other locations on which you can give us any updates. Yes, this is Milam County in Texas. The construction of this data center is going well at very good speed, and they already have a tenant, and this is a part of Stargate's big project. Definition of Stargate project has been evolving, which I communicated to you before. OpenAI, SoftBank, and Oracle are involved in the data center project. And we have not announced yet, but They are working on preparation and researching and developing in different locations. And once we are ready, we should be able to communicate with you accordingly. If I ask you a follow-up question, like one in Python, which is outside the Stargate project scope, but... While you work on Stargate, but also outside of Stargate scope, do you have any plans to work on data centers in different locations? What definition of a Stargate I think is rather flexibly considered, if I may put it into that way.

Thank you very much. The next question. The front row on the right. Suga from Nikkei Newspaper. I also like to ask you about OpenAI. So you as a shareholder, I believe you are also talking to their CFO, Sarah. And regarding the IPO process, what kind of communication have you been having with her? From the investor's point of view, not only us. That's something that we have high interest, but that's the question that they should be answering. So I hesitate to make any comments about that. Understood. Another question from me. Loan to value. So since April, you've been also making financing action as well. So what is the latest number? And what is your outlook for the loan-to-value? As of the end of March, 17% is the loan-to-value that we have, which I shared with you earlier slide. Pay test, I assume it's about 15-ish percent. But there are many things that are moving around, so this number is pretty much estimate for the record. Since March end to May, mid-May, our net asset value actually moving, increasing by 8 trillion yen or so. So that's another advantage in terms of the loan-to-value. So net asset value, I would say 48 trillion yen level, which is record high in terms of the sound and healthy balance sheet point of view. That's how we've been having a diversification of the financing activities. So like a take-out facilities for the bridge finance, we have one year or so. So in the meantime, we would like to find the best mix of the financing options so that we'll be able to achieve our objectives.

Thank you. Any other questions from the floor? I have two questions. First, about finance. At the moment, you plan to invest $38.5 billion for the year. With regards to financing, I wonder, are there options like a margin loan or bond issuance? But I wonder, margin loan using open AI shares, is that something that you would consider? Yes, financing with open-air assets like a margin loan is possible. We could do that. So how best we can finance? I think it depends on timing. Like I said, we consider as a part of takeout. So depending on market environment and timing, we will select options accordingly. OpenAI value is about 10 trillion yen of assets, and I think we should be able to leverage that very well. The second question is, I think about three months ago when you made an announcement of financial results last time, you talked about A little bit about what a lot of people are talking about concerns of you are super independent on open AI, but it's been different. I mean, volatility is high. So I wonder if there are anything that you are doing to address volatility. I think... important thing is to have a mid-long-term view. And if you're confident that this is what you need, you don't want to be influenced by short-time volatilities. That's true to our portfolio companies, and that's true to data centers. So there are other opinions on those data centers or portfolio companies, and in the mid and long-term run, do we really need them? And if you look at data center, for example, definitely, obviously, demand well exceeds supply so that's something that it's worth working on even though there are some concerns due to volatility I think it's worth trying in data center sector for example and currently discussion is focusing around infrastructure when you say AI or data center. Technological evolution is very key. For example, data center, it may cost one trillion now, but in a few years, it may cost a half. Just an example. And the power generation, like a fusion power, nuclear fusion technology, once it's implemented, the cost would be dramatically different from now. But on the other hand, if you sign a long-term lease at a certain fixed power cost, there is a risk. But risk factor are something that we have been considering for a long time and infrastructure is needed or is it needed from business perspective which we believe is needed and project order should have an eye and capability to structure project finance.

Thank you very much. Any other questions please?

My name is from a monthly magazine.

I would like to ask about semiconductor. So in your presentation, arms revenue can be five times in five years. So AI... demands actually expanding. That's a kind of a movement we've been seeing. To secure such semiconductor, even Musk in the United States is having a partner with Intel and trying to create the mass production TerraHub with 8 trillion yen or so. So to secure the semiconductor, we do invest in the mass production business Do you have any consideration over to it? What is your view on that? As a thought bank group, semiconductor business or semiconductor segment is actually led by Anne, and we have Jason, so why don't we have Jason to answer if you have any view, please.

Yeah, so in terms of investment into fabrication facilities, that's not something that ARM is doing. We do have longstanding relationships with the fabrication companies, specifically TSMC. The current chip that we announced just eight weeks ago or so, that actually is committed volume via TSMC. there's also chances over time that we could work with Samsung as well as IFS or Intel Fabrication. But this initial chip, initial volumes right now are all going to be with TSMC, and that's through an ASIC partner. We're not making direct investments or expanding into fabrication ourselves.

Any other questions? Thank you very much. Any others, please?

NJ from Bloomberg. A question about your financial strategy. Bridge loan, margin loan, It looks like you are actively using debt finance. But by accelerating your assets, you can also reduce the debt. So I wonder if you have any view on that. If you sell assets, you would lose upside from the assets. So if you can finance without selling assets, that's better. From that perspective, since we have a good load to value and financing cost is low, so at this moment, which finance is a way forward at the moment. The next question is about data center business in Ohio. Maybe it's early for you to say something, but... If the capacity is 10 gigawatt, it will be 500 billion, and I don't have any financing plan to do that, or if you have any view on that from financial strategy perspective. It's too early to say. I don't have any comment to make at this moment. Thank you.

Thank you very much. Any other questions, please? Ben. Second row from the front, please. Makino from NHK. A bit redundant from the previous question, but these days, AI news, when you look at the anthropic, and metals are actually picked up by the news compared to OpenAI these days. That's how I feel so far. And Goto-san, you are making a huge investment in OpenAI. Do you feel any concern or any risk, or maybe including the technological competitions, but do you feel any concerns by only investing in OpenAI now? I myself... is the finance guy, not the engineer guy, so I may not be able to fully answer your question. Of course, size is large, the investment size is large, but having said that, our ownership stake is 13%, meaning there are many other investors. For example, the latest financial round by Amazon, Nvidia, they are also investing large amounts So we are not so risk-taker from financial point of view, putting everything in open AI. That's not the case. Actually, there are many hyperscalers also. acknowledging and valuing OpenAI's service quality or their level of the technology. So I think that's something that you should also refer to. Nero's topic, I do understand there are such discussions there, but the AI itself is a new segment, so there are many competitors, many players coming in, even after this, I believe. And those can be the risk for the company, but at the same time, we should pay attention to the direction of the discussions in terms of the use of AI by having many players. We don't want to see the misuse cases afterwards. So those are the things that we should be discussing in advance. And that can be also involving the governments of the respective countries as well. So that's the direction that we should be taking. And one another question from me. So just a confirmation. Anthropic. Investments in anthropic, do you still keep that option? I don't want to say anything for certain, but our main investments in open AI. Thank you.

Any other questions from the floor? Hayako from GG News. One question. You exceeded 5 trillion yen for the first time as a Japanese company. What's your view? What's your impression? Well, number one, in any area, it's great. But as I keep saying, markets, share prices, we don't want to be influenced by in short term by the moves. Again, we need to look at five, ten years ahead, and what should we do to keep this position going forward? That's something that we should more focus on. Thank you.

I think that's all from the questions from the floor, so I would like to now take a question from the Zoom. To avoid audio feedback or looping, we kindly ask that anyone asking a question refrain from connecting to any live streams other than the Zoom webinar. Once again, if you are joining the Japanese Zoom, please ask a question in Japanese. Nakagawa-san, TBS, please unmute and start your question. Thank you. TBS, CB, Nakagawa, can you hear me okay? Yes, I can hear you. So some media covered that SoftBank Group is planning to establish the company and try to have this company go public as a Rose AI company. What is this company's role, and what is the progress of this company so far? This is speculation coverage, so I don't want to make any comments about that. Understood. Thank you.

Thank you. Thank you, Nakagawa-san. And next, Masuno-san from Nomura Securities. I have two questions. First, to Jason-san. AGI CPU, the term of 2030, you said over 10 billion, AMD is 120 billion. So personally... I think you could adopt 120 billion in terms of share. AMD in monetary value basis, 50% share, and your 15% share. I think they're both true because they are different GPUs. In terms of market value, ARM is one-third of AMD, and AMD has also GPU, whereas You have CPU and architecture. I think it's a good combination. Then, after 2030, your share, 15%, should grow further, I assume. Do you agree with me? It's $120 billion over time, and... markets share 15% or more over 2030 and forward. What's your view on that, Jason-san?

So I agree that there's a great chance to meet or exceed our $15 billion target in five years. Just to back up on the total addressable market, or TAM, We said it was going to grow from roughly $50 billion today to $100 billion by 2030. And we actually said $100 billion plus because there's a lot of debate as to is it $100, is it $200, whatnot. EMD came out a couple weeks ago and they said the TAM they think is $120 billion. There's been some others that have come out that have taken it as high as I think $170 billion. From our perspective, we expect to have at least a 15% share of that TAM just with our CPU. But if you look at the IP and compute subsystems that we sell to all the hyperscalers, so NVIDIA, Amazon, Microsoft, Google, ByteDance, Meta, etc. Meta is actually the anchor customer for the chip, but all the others that are buying IP are We expect, and actually Rene said a couple weeks ago, he expects that we'll probably have up to 75% share of the server market by 2030. Just the chip portion of that will be at least 15%. There is, of course, chances that some of our hyperscaler customers who currently today buy IP may also buy chips, and that's certainly possible. a possibility and could lead to a number that could be higher than $15 billion. So the reason we believe we could have that kind of share is if you look at the hyperscalers today, as Goto said earlier, we already have a 50% share today, and that's across NVIDIA, Amazon, Google, and Microsoft, who have all deployed ARM-based chips, and they are the primary CPU that they are using to pair with their accelerated compute options as well as for general purpose compute.

Thank you Jason-san. Next question is to Goto-san about the data centers. Midian County is 1.2 gigawatt and in Golden County 1 gigawatt were announced with SP Energy, totaling 2.2 gigawatts, and in Ohio, 10 gigawatts. So total, I think, $600 billion or 100 trillion yen is what I'm looking at. And the building is only one-third, maybe 30 trillion, and if equity portion is 20%, then... It's about 20% of arms market value. So my question is, it's not a big number for you. Do you agree with me? Well, how to structure finance is something that we need to study on more. Like Masunosan said, such scenario could be true. Could be true. then we have a positive capacity if you go with that scenario. But again, there are different ways of structuring financing. And in terms of fixed assets or construction or chip and system, I think in different areas, different financing structure can be possible. So it's not going to be only a one-time big payment. Maybe it's going to be a phased approach. So, again, we want to be flexible from timing perspective. Thank you. Thank you very much.

This concludes the Q&A session. And we would like to conclude the SoftBank Group Co-op Earnings Resource Announcement for fiscal year ended March 31st, 2026. Thank you very much for your attendance. 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 Co-op Earnings Resource Announcement for fiscal year ended March 31st, 2026.