SBI Holdings, Inc. (8473) Earnings Call Transcript & Summary

Please allow me to take off my mask when I make presentation. Here, we have a little bit less than 40 participants in this room and more than 100 on the net. So thank you very much. And therefore, the big turnout. Now without further ado, we would like to present to you FY 2020 financial results for the fiscal year ended March 31, 2021. Consolidated numbers are shown here for the revenue of JPY 541.145 billion or up 47% year-on-year. Pretax profit, JPY 140.380 billion, up 113.3%. And profit for the period, JPY 97.512 billion, up 116.7%. Profit attributable to owners of the company, JPY 81.98 billion, up 116.3%. For each item, we achieved record high, both from revenue and profits, especially, ROE is very high at 16.0%. I don't think that there is no other financial institutions with such high ROE. Thanks to your support, we could achieve this ROE. And as you know, JPY 14.5 billion related to social lending loss was incurred. And with that included, we could still achieve this good level of revenue and profit. So things worked very well. Other than that, the bio-related business, the JPY 2.7 billion of losses of COP and other -- some of the other financial matters, including sale of the IPs, which amount to, say, about JPY 4 billion or so. So in this new financial year from April, the such negative items are being eliminated. So it's a difference of JPY 6 billion or so for the biotechnology alone. Now the quarterly profit before income tax on the IFRS basis in the fourth quarter of the previous year, there's a crush -- market crush due to COVID-19 and in the fourth quarter, down 20% or so, and the Dow Jones Industrial average also went down 21.8% or so. So toward the end of last fiscal year, our profit went down as well. It was totally unexpected. And this time, we had already in April and in January this year, we had the state of emergencies, but still, we could achieve good profit. Now the consolidated profit comparison with major face-to-face securities companies. Comparing SBI Holdings, Nomura Holdings, Daiwa Securities Group and SMBC Nikko Securities. SMBC Nikko Securities will announce their results on April 30, and other numbers are shown here. The Daiwa Securities level is about the same as the SBI Holdings, and we could have achieved better than the Daiwa though with some elements excluded. Now the performance by segment, Financial Services business, both revenue and the profit, record highs. Asset Management business, again, record highs. And for biotechnology health care and medical informatics business, the -- now the negative profit was reduced by about JPY 2.801 billion to minus JPY 8.630 billion. And the impact -- negative impact will almost be almost invisible going forward. As to dividends, in April 2018, we announced the basic policy for shareholder return. Implement shareholder returns with a target total shareholder return ratio, as calculated by the sum of dividend payouts and share repurchase cost of 40% as a minimum. However, depending on the level of fair value gains and losses from operating investment securities, which does not generate cash flow as a percentage of the company's consolidated profit before income tax expense. The shareholder return amount will be determined by making adjustments such as deducting the total amount of fair value gains or losses from the company's consolidated profit before income tax expense. So we are talking about ratio of fATPL. And this time, this ratio was 55%. It's rather high. Therefore, total shareholder return ratio is less than 40% at 36.2%. But still, full year is JPY 120. And at the end of the year, the JPY 100, that's the dividend amount. And as to the shareholders' benefits, you can choose between the XRP and other -- quite other related products. Now by segment, let us look at the Financial Services. A market but quite strong. Average daily individual brokerage trading value went up by 52.2%. And what about our specific performance? We achieve record highs for operating revenue, net operating revenue, operating income, ordinary income and profit attributable to owners of the company. For each of these items, we achieved record highs. In the previous fiscal year, for example, though we saw the mobile-related business to SMBC compared to the previous -- the fourth quarter, as analysts did, it looked like the final -- the other quarter went down, but there was some special one-off element. It happens quite often. And the number of accounts of SBI Securities, the 6,813,000 accounts, double-digit growth and completely exceeding that of Nomura. The number of accounts that is growing much the larger compared to Nomura and that would change the sales landscape in Japan. And the SBI Securities share of individual stock trading value the 45% for matching trading value, including SBI NEO trade securities. And for stock trading value alone, 42.8%. So in this base trading value basis, we are dominant. NexGen has been doing well recently with the number of accounts. But even when the number of accounts increases if the market share is different, though you cannot catch up the other profit. Now the banking business, the SBI machine, the banker will make announcement on the 13th of May. And the other JPY 7.240 billion already at up 23.9% on the IFRS basis. And in February 2016, POJ started negative interest rate policy. And with that, the number results went down a little bit. But since then, it has been on the growing trend. And this bank was -- was started its operation in September 2007. Since then, it's basically the growing trend and the profit was record high. And the 4.5 million is number of accounts. We made a slow start -- late start, but still, the deposit is close to JPY 6.3 trillion. Already on April 26, the 4.56 million is the number of accounts and deposit of JPY 6,386.4 billion. What about insurance? The ordinary revenue with sales at up 23% and ordinary profit, up 63.2% at JPY 3.852 billion and profit attributable to parent of the company. Here, the group credit business that is related, and it is -- required some reserve setting up. So that is reflected in this line. And the number of inforced contracts grew 17.1%. That's the CAGR number. It's a very smooth growth with some M&A activities from on and off and especially FSI related to the companies increasing number of contracts. And once you are in our group, you can expand your business dramatically. And we are going to repeat this -- the promising practice to expand our business. Now Asset Management business. So the revenue here is up 64.6% at JPY 208.3 billion, record high. Pretax profit, JPY 84.9 billion, up 127.9%. And SBI Savings Bank JPY 28.4 billion, up 55.6%, record high. And profit loss from the change in payer value and profit loss on sales of Investment Securities also JPY 66.3 billion, record high, up 226.7%. The listed securities does an increase, while unlisted securities decreased. Some unlisted securities got listed and that was in addition to the number of listed securities. And for the fiscal year 2020, we did 22 IPO or M&A deals for exit. For fiscal year 2021, for this fiscal year, 28 IPOs M&A. As I expected, this is going to be the minimum number. As to SBI SAVINGS Bank in Korea. From April 2013 to March 2021, record high was recorded. The number is here in 1. In March 2013, this bank was on the verge of bankruptcy, and we invested JPY 120 billion in their equity. And already, they achieved JPY 110 billion of profit. So the dividend payout will soon begin. It's just a question of time. When we bought this bank, we were severely criticized but they look at the results, the following SBI Securities, SBI Savings Bank is the second largest contributor to profit. And 51.6% was the delinquency rate when we bought it. But now it's 1.6%. As of the end of December, the total asset they exceeded 11 Chilean or JPY 1,163.9 billion. So once it was on the verge of bankruptcy, it never stopped to grow. And other than this bank in South Korea, though we have been investing, especially in Southeast Asia. And it was much -- in December 2023, this -- the Korean bank is expected to pay the dividend for the first time. And TD Bank is a bank in Vietnam. The SBI Group's shareholding is 19.9%, with the 20% is the legal max. And we invested in August 2009. And the market capitalization at the end of March 2021 was JPY 140 billion, which is 12x larger than that at the beginning of the investment. So the accumulation of such the well-performing assets is very meaningful for our business. Now SBI Bank in Russia, it was also on the verge of bankruptcy. And without our investment, they would have bankrupted, but they achieved profitability in January-March quarter of 2021. In the case of banks, if you manage it well, it will definitely turn positives in performance, and you will be able to sustain that. And that is how the legal system is made in each country. If that is not the case, many deposits would be collected from the people of that country. And based on the legal system, if you will manage the company, but if you are generating losses on a continuous basis, you won't be able to sustain the economy. So whatever country you look at, the legal system supports the economy. So we also have Thai Online, which is a broker company, and we are showing full year profitability in fiscal 2020. So we are now feeling assured. And Ly Hour and Cambodian is a midsized microfinance provider that we acquired and we are striving to turn it into a commercial bank, and we acquired a full banking license in March 2020 and has turned positive since October 2020. As you can see here, growth in Southeast Asia is expected to be significant going forward. Therefore, the financial business is in this region. In the high-speed growth phase, in Japan, when you look at market cap, financial institutions had substantially higher market cap. Then after we enter the manufacturing range or how we had the utility that started to show growth. So first of all, the start was from financial institutions. And that is why we are also investing in financial institutions. For biotechnology, health care and medical informatics business. For biotech, first of all, the pipeline have been licensed out, and we have a milestone agreement in place. We're able to receive milestone revenue accordingly. That is our plan. So that's where we are with that. So once we receive the milestone revenue, that will be a positive. We are not expecting any more losses larger than this. By clearing each of the milestones, we will see a higher contribution. For Quark, we have 3 items that are in Phase III. I didn't think that they were all going to go away, but they actually did. Like I mentioned earlier. So we're going through a reorganization and for the IP that we can sell, we will sell them off so that we can pull out of this business. For ALA related for SBI Pharma, first of all, I will talk about this later. For ALApromo, I'll talk about this later as well. And photonamic from Germany performed like this. And we invested a stake into medical data vision. And it's already starting to contribute. For medical data vision, Q4 results have been recognized. So the future directions for Pharmaceuticals is shown here. There was an impairment loss recognition of approximately JPY 2.7 billion, and we are trying to minimize the personnel and we are also in the process of trying to sell the IP associated with the business. And in 22 March, which is the current fiscal year, we're expecting that profit before tax will be around JPY 1 billion. And for COVID-19 and the relationship with 5-ALA and papers associated with that, at Nagasaki University, Professor Kita has been setting for various papers. And SBI Pharma has been publishing some papers as well. And in the open COVID-19 journal, an international COVID-19 clinical test journal is currently doing peer review. And at the beginning of May, we should see some approval around this. And in Bahrain, we are cooperating in Bahrain with the Royal College of Surgeons in Ireland, where there's a British type of royal collective surgeons. And together with the Bahrain government, they are collaborating to start a clinical trial. And Phase I has already been concluded. And the safety profile has been confirmed apparently. Next time around, they are targeting to register 40 patients so that 5-ALA phosphate and SFC can be administered together to see the tolerability, safety and efficacy in the research. And the U.S.'s NIH is monitoring what's happening here. And I said I'm going to elaborate later. But for 5-ALA pharmaceutical products utilizing 5-ALA and its main pipeline for mitochondrial diseases, Phase III was completed in April. And currently, we are targeting for 2022 to apply for regulatory approval. For mitochondrial disease, it is a genetic disease. There are babies that are not able to wake up and pass away when they are very young, but by ministering 5-ALA, they can stand up once again. There were some cases where that was proved. And their mothers have been speaking about this online. So for this -- the Phase III has been completed. So now it only has to be commercialized. And also at Oxford and Cambridge, for cardiac ischemia reperfusion injury, Phase II trials are under way. And for brain tumors and PDT, photodynamic therapy, when people have a brain tumor, but it's hard to conduct a surgery on because it's too large, you will make a hole and you will project light into the brain so that the tumor can be worked upon. So this is being conducted in Germany. And also 2, 3 days ago in the U.S. from the FDA that we were able to get approval for Phase III for TDV for breast tumors. And also for meningioma, our subsidiary in the U.S., NXDC, as an orphan drug, it was approved. And currently, the final tests are underway. Apart from COVID-19, there are other promising fields where 5-ALA can be applied. For ALA, it is a health product. And currently, its popularity is rising. So sales have been going up by 12.7% at SBI ALApromo and also PBT has been going up by 80.3%, reaching JPY 348 million. So when something good happens, these big products starts to be manufactured all of a sudden, and they are being sold in the market. For 5-ALA, we have exclusive license for the substance patent for 5-aminolevulinic acid phosphate and also 5 SBI ALApromo's products are the only product containing 5-ALA which have been approved by the consumer affairs agency as foods with functional claims. If it doesn't have this mark, ALA Plus, it is basically a fraud product. It is not the real thing. So all these types of fake products are starting to emerge online, and they are being sold. Once we find them, we will tell the consumer agencies that they are coming in from various parts of the world. So for [Foreign Language], gamma content is 44x that of white rice and 14x that found in brown rice. So there is gamma original that is an ingredient with functions. And the first product in Japan that has been approved as food with functional claims. And also from July, ALA Plus Mental [ Clear ] is expected to be launched, which will improve depression and mood and increasing metabolism while suppressing sugar absorption. We originally had Tou Down, but solatenol has been added for this new product, and we plan to launch this in Autumn 2021, which is ALA Plus Tou Down [ Alosia ]. And with Hiroshima University, we are working on clinical trials with regards to applications for recovery from fatigue and so forth. So next, talking about the crypto asset-related business. For the Financial Services business. There are some parts that are included there, and other parts of the business is included in the other business segment. So for crypto asset related business is divided into 2. For the second, that's included in the Financial Services business segment, the PBT, profit before income tax expense, was JPY 10.602 billion. SBI VC trade, total B2C 2 are included. But it's not included as a consolidated entity in the Securities business. Also, profit before income tax expenses, the acquisitions are not included. For the other businesses, crypto is included with the mining business. Profit before income tax expense was JPY 8.357 billion. So on combined basis, profits were approximately JPY 19 billion. Market cap was about JPY 19.6 trillion as of April 2020, but it went up by 10.3x, now reaching JPY 201 trillion. So you could see how much growth -- substantial growth this business has been going through. So establishment of the SBI Group's new medium-term vision and future priority measures to achieve it is the next part. First of all, in 2018 April, we set forth a vision for the SBI Group, which is over the medium term. So let's summarize and look back at that. One of the items that we raised back then was for Bio Medical informatics business. It looks like this, but it is the only bio. So Financial Services, Asset Management and Bio. We wanted this to break down into 50%, 40%, 10% each in 3 years' time and in 5-year times, 50%, 30% and 20% each. So that's what we had in our minds as we managed the businesses. But for Bio, it has been declining. However, it hasn't been able to pull out of its losses. So drug discovery is very time-consuming and money consuming. That's what we were able to learn. And there are a lot of risks associated with that. There's 3 Phase IIIs. We thought it was fine. And when it was Phase II, the secondary endpoints, the primary endpoints were perfect. However, in Phase III, it didn't pass. This is in a rare case, though. That is how hard it is to run this kind of business. So 3 segments is what we have. And back then, our way of thinking was -- back then, the securities of the market was pretty much affecting our performance. If the market was good, our profits were good. If it wasn't good, our profits would go down. So we wanted to do something about it. So pharmaceutical stocks are often likened to defensive stocks, but we wanted to be more defensive. We didn't want to be affected that much by the market. Personally, I was extremely interested in the pharmaceuticals area, and I had a lot of -- I was pretty much well versed. That is why I wanted to nurture it into one of the pillars, the 3 pillars of our business. However, it didn't work out that way. But for banks, it started to function well. And the chances of the bank business being affected by the market is low as well. And for the start-up or the venture business, venture means it is not listed yet. So the impact on performance is not as great as well. It's not affected by the market as much. So when you think about all of this, when you think about the mix of the segments, we decided that we shouldn't think about that anymore. It's not going to be one of our priorities any longer. Looking back at our vision back then, once again, and we wanted to reach JPY 100 billion in consolidated profit before income tax expenses in 1 year time. And we were able to reach that goal because it has been JPY 140.4 billion in fiscal 2020. For ROE, we wanted to reach above 10%. Of course, because of COVID, it was at 8.3%. But in fiscal '20, we were able to exceed an annual dividend to the level of JPY 100 per share. We have been achieving this goal every single fiscal year. And we were also endeavoring to achieve a market cap of JPY 1 trillion by actualizing intrinsic corporate value. This is pretty much dependent on the market. And it doesn't really mean that much to have this kind of goal. So we decided to do away with this kind of thinking as well. So in our new vision, what kind of perspective are we going to apply? So this shows the past 3 years, and consolidated profit before tax as well as total assets. So basically, in the past 3 years, our CAGR has been approximately 25%. Of course, we had the irregularity with a COVID-19 shock, but we have been able to see linear growth when you exclude that. On a total assets basis, CAGR has been 16.7%. It has been growing steadily. Therefore in the new midterm vision, we would like to exceed JPY 300 billion or more in consolidated profit before tax. And for new businesses and profit before tax, we would like it to account for 20% out of total consolidated profit before tax. So we would like to ensure that we are able to nurture the new businesses. When we talk about new businesses and nurturing it, this is key. First of all, we need to think about the definition of new businesses. Any business that utilizes innovative technologies, such as those related to crypto assets or blockchain, first of all. That's 1 part of the definition. The other part of the definition is any businesses that became a part of the group through M&A since April 2018. So in this way, in the past 3 years in new businesses, profit before tax, when you look at the percentage and its contribution, it started negatively, but it turned positive, and it has grown quite substantially. So our goal is to reach 20% in the digital finance world that is yet to develop. I don't think this is something that is hard to attain. For ROE, it's not just going to be through organic growth, but we will also pursue M&A growth proactively in the future. So we would like to achieve 10% or more ROE. That will be our goal. And of course, in order to do M&As, external capital may be injected as well and bank borrowings too for fundraising from the capital markets. This is something we will probably need to consider as an option. With that, we would like to achieve 10% or more ROE. So that's basically our midterm vision. So in order to realize this, what kind of key measures should we have? And what kind of targets should we have for our sustainable growth goals? SDGs are quite popular these days, but what we call our goals is SGGs, which is sustainable growth goals. And here, we raised 4 key measures in order to achieve the SGGs. I would like to go through them in orders. So first of all, thoroughly develop an open align strategy with every group company to build an ecosystem that efficiently creates big synergies with partners having large customer bases. So for the securities area banking sector as well as with regional financial institutions and regional revitalization, we have -- we break the strategy into 3 parts. So first of all, for open alliances, it's based off open innovation. But it's not about who is on your side and who is on the other side, it's more about win-win alliances that we would like to proactively pursue. So it's an easy concept, simple concept. We would like to basically have relationships with many parties. And for the securities-related process, we would like to embody Neo securities initiative. And the way we would like to realize it is through 1 and 2. First, we would like to accelerate acquiring younger customers. And we would like to achieve NEO securities initiatives, prioritize those age 25 or under. And we would like to also make the commissions free of charge. For the underage customers, the commissions are effectively free of charge already. And also the commissions for customers that are 25 and under, the commissions are effectively free for domestic equities. So with SBI submission next net bank, we will do a 100x interest campaign from April 20, 2021 to October 16, 2021, 3 months after you open an account. We will have a 6 million account celebration campaign and a campaign that waives purchasing fees for S stocks and commissions on domestic equity trades become effectively free for 3 months after opening an account. So we're going to go after the younger clientele, mainly, and we will aim to acquire them. Not only will it be the young customer base, but with banks in their hybrid accounts. We'll be offering 100x interest campaigns so that we can acquire new customers. And for SBI NEO mobile securities, this is targeting the younger clientele as well as people who are new to investing. We have been able to see steady growth in the customer base in 575,000 accounts is what we have been achieving in March '21. 51% of customers are in their 20s and 30s. Also, IPOs, iDeCo, Warren, product lineup expansions are being conducted where there is a need and are in high demand. Also, in November 2020, we engaged in a capital business tie up with Sumitomo Mitsui Financial Group so that we can address diversifying needs. We will endeavor to develop services, and we would like to have a close collaboration in this regard. On the point side too, Roughton has a point ecosystem, and they've been able to increase their customer base by using the system effectively. But for us, we have T-Point and with SMBC, we have V Points that are accrued when you utilize the credit cards. Apart from this, we also have other point systems that are being prepared. As you can see, we have open alliances with the point providers so that we could create an even larger ecosystem. Furthermore, since the announcement of NEO securities initiatives, SBI Group has continued to pursue synergies within the group while promoting diversification and revenue sources and strengthening cross ability, which has like the favorable performance and contributed to the early realization of 0 commission. So we have been doing this since October 2019, and this has contributed to the improvement in our business performance, and we have been able to diversify our revenue sources. So that is why we have been able to materialize this free commission 0 commissions, an early stage like this. So what are the initiatives we have implemented to diversify our revenue sources? So we have proactively used M&A. So whether it be asset management companies or foreign exchange companies or M&A, especially asset management companies, [ issue ] asset companies, we have been targeting these areas for M&A activities. And also B2C2. I'm really happy we did this, but we have been able to make it our consolidated subsidiaries, 90% now. So we have been able to reinforce our cooperation in digital assets. Now in terms of operating digital asset exchange, we have VC Trade, [ Taltal ] and FXCoin. And this allows for a provision of liquidity. And then we have B2C2 in the middle. And then on the digital assets CFD services, we have FX trade, and we have digital asset lending services as well with VC Trade. So it's not just us who have benefited from, but B2C2 has benefited. Today, the average transaction volume has increased by 4.2x since 2019. And daily revenue has grown by 16x. And also in terms of rapidly expanding on trading value, we have strengthened the FX business since 2008. And this has really pushed up our trading revenue. FX trade and liquidity market, even if you look at foreign exchange itself, this is JPY 10.6 billion, that's plus 31.3% year-on-year. So we see continuous competition in the spread. And while others are pressured because of these reductions in spread, we have been able to increase our profitability and earnings. And in fact, if you look at the aggregate SBI Group's trading volume and OTC share, it has increased significantly. And in fact, the trading volume has increased by 2.3x since last year. And naturally, this is not just brokerage. In retail, we have been focusing on increasing our wholesale business. In April 2020 to March 2021 in terms of ranking in IPO underwriting, while86 companies have gone public, that we have underwritten for 80 companies actually. As for lead manager, we have worked with 15 companies, which is record high. And in terms of -- it's not just initial public offering, but for -- even for POs, we have been working with many companies. And in fact, we have underwritten 119 POs. And in fact, underwriting value was 3.6x year-on-year. So this -- we have focused on underwriting new municipality bonds, including Edrick bonds. They are approaching us these days. We're very grateful for that. And through financial institutions, new financial institutional sales department, we have expanded our brokerage services to the customers of financial institutions. So since establishment in March -- I'm sorry, July 2016, we have been able to work with a total of 460 companies. So SBI Securities has strengthened the distribution structure bonds, self-origination distribution of a total amount of JPY 151.2 billion in those years with domestic and overseas investment trust as well as bond transactions. So if you need futures compare for FY 2019, FY 2020, we have increased it. This is by 2.3x in terms of equity trading. And for investment trust, it has increased by 120%. And for real estate, SBI MONEY PLAZA has acquired a company called ASKO Corp., and it owns about 35.1% -- 35.01%. So what they do is they have developed a smaller real estate trust fiduciary fund, which is accepted really well. And also, in terms of pursuit of synergies, we're collaborating with [Boo Street ]. So this is nondomestic equity and I was wondering what we can do to really differentiate ourselves. It's really the digital products, especially the securities token business. If we continue to do work on this, we will be #1 in terms of underwriting and of course, we will be strong in the distribution market as well. And many other competitors will not be able to follow us. We will be the first company to issue digital corporate bond, and we will be actually selling this. Investment trust balance. So if you look at this on accumulated investment trust basis and also, if you look at on the quarterly balance basis, we have achieved a record high. Now MONEY PLAZA, we have been able to expand the number of co-managed shops, and we have been able to increase our profitability. At the end of March 2021, it was JPY 3.762 billion, that's plus 278.1% or 278.0%, excuse me. So we have seen increasing AU and -- and of course, our partners, the financial institutions, have been able to improve their profitability. So we're all happy. And with regards to SBI Securities IFA business that meets the needs of the face-to-face trading, IFA, by the way, stands for Independent Financial Advisor, and it has been growing steadily. So compared to FY 2019, we have been -- the revenue has grown by 2.2x. If you read the newspaper, it seems as though a competitor is doing better. But actually, if you look at it carefully, we're doing much better. We're compared often with Rakuten, but we're doing much better. It's almost $2 trillion. So for FTT, we will establish a more expansive ecosystem through an open line strategy. So in the banking sector, we will basically unbundle all the functions of the banking service, and we will have our partners use these functions. That way, we will be able to provide smooth, efficient service. And that is how we are planning to expand our customer base, and we are working with various partners. The number continues to increase. We started off with JAL, Japan Airlines. We had Hikari Tsushin, CCC Group, Yamada Holdings. And there's about 3 big partners -- potential partners we're discussing with. So it's kind of sophisticated, more and more free commissions, fees and granting mileage, and that's how they can continue to increase the number of customers. And the second project in Neo-bank initiative is T Neo-bank, which is an exclusive banking service for T Point members. This is a dedicated service for 7 million T members. I think this is quite impactful because you will be able to use the ATM with only apps. So whether saving up your points or using your points, you're able to accumulate your points and be able to use it in different places. And also with collaboration with DLT Labs, DLT is basically distributed transactions -- technology, excuse me, and this is a lab, so DLT Labs. So this is a company that is strong in DLT. And by utilizing their DLT, we will be able to build supply chain network or payment network. So they already have this extensive global experience in that, and we will be able to build a new platform for digital supply chain finance services. So this type of business will become the mainstream. We move when others don't move yet. When others begin to move, we're already absolute dominant #1. And we're always preferring this type of scenario. With the housing loan, this is a very traditional area that the bank has acquired shares of usual loan company limited to make it a subsidiary. So we want to reinforce this area. Now with regards to the regional bank, as a new bank agent, we will begin -- they will begin to sell mortgages as a new agent for banks. So Sendai, Fukushima, Shimane, et cetera, and then moving on, so collaborate with various partners in addition to regional financial institutions to realize regional revitalization that Japan is one of the most pressing social issues. So SBI Securities, there's 43 companies and we have from an alliance with there's addition to that has made commitment. MONEY PLAZA, that's 12 regional financial banks with 19 shops in May. There will be 1 more bank that has joined. And then there was another that is committed. So if there's 12 banks and 19 shops -- well, 1 bank has at least maybe 2, and maybe they're ready to start 3. So you can see how this is a good project, especially for the region. And SBI Life Insurance and SBI Insurance are engaged in various different activities. I hope you'll read it later on. MONEY PLAZA, as I have explained earlier, AUM is suddenly increased to JPY 78 billion. And if you comparison per shop revenue between operating 2 common shops and 1 shop, so this is looking at the monthly revenue for regional financial institution operating 1 shop is 1 to 0. And if you co manage 2 shops and it's 1.6. So per shop revenue or profitability is quite significantly larger. So we're seeing more and more double managed shops. And SBI Life Insurance has came up with Japan's First joint scheme for group credit life insurance. So first of all, they have established the General Incorporated Association, Zenkoku Danshin Suishin Kyokai. And SBI Life Insurance became the founding member. This was January 1, 2021. And this has spread to Shimane and Sendai and Fukushima. They have begun using the system since Jan 2021 and more than 20 are expected to join by July. Now plan to form capital and business lines of 10 regional financial institutions during 2021. So as to the number of 10 banks that some people ask, how long would it take to reach 10? Well, of course, we need to make our own selections. So we are not in hurry in making those selections that we are rather prudent, careful because we invest in them. So we need to watch closely some conditions. And most importantly, whether that's the regional -- the bank is committed to change their mindset to work with us to create the value from their business there to improve their raison d'être in that community for the residents for the community. If they have that strong will or not, that's most important thing for us. And there are some commonalities, there's some common issues for regional banks. And SBI Regional Bank Holdings has been supporting them with various initiatives, and they are making a lot of changes. And it's not written here, but if you look at the reference material, you can see the details of how each of these regional banks has changed. And for me, the fixed cost of regional financial institutions, how to increase the variable cost portion, especially, it is related to core banking system. By making it cloud-based system, you can make a big difference. So we need to create next-generation system. Fortunately, we have Future Architect to cooperate with us and AWS to work with us, the 2 to create the cloud based, the core banking system with about JPY 1 billion of annual usage fee. So with or without the capital relationship, we would like to provide such the system for everyone to reduce their cost. It's about systems cost and also the other cooperation. So those are the most challenging, are the other issues for them. Now the -- we have established regional revitalization partners. And with that, we have a very active discussion at the Board meeting as well. Because of the COVID-19, the meetings are in the form of Zoom, and it's not that we can visit the entities. So it's a rather tough situation. But still, we are making the steady progress. And interesting ideas are produced from our partners. The 1 of the 2, the major entities here, here, we are talking about SBI Regional Revitalization Investment and Loan, and they are working in -- working with function dispensing the pharmacy that to provide some succession, the opportunities for the pharmacies. And this is going to be one of the major -- the regional revitalization schemes. And of course, good performance is expected here. Now I would like to talk about the global financial center. The economy in the Kansai area, that has been rather down and we need to revitalize it. Therefore, though, I have been advocating for the global financial, the center in Kansai. The other day, the committee for the promotion of Global Financial City, Osaka has been established. Sumitomo and the Matsumoto-san, the President of Kansai Economic Federation, has become the President of this committee and the Vice President are the Osaka Chamber of Commerce Industry President, the Representative Secretary of the Kansai Association of Corporate Executives and also Governor of Osaka Prefecture and Mayor of Osaka. Because of the COVID-19, Osaka is in a very challenging situation. And it's very difficult to have the continuous meetings. But still, we are making progress on this initiative. We have been progressing whatever we can do on our own. For example, the Osaka head office of SBI Holdings. In the Sumitomo Nakanoshima buildings, [ One ] Nakanoshima, is the central part of Osaka, financial part of Osaka. And that there, we are going to have head office in Osaka, and new companies that we are going to establish will also be located here. And the Osaka, the Dojima, the entity could move into the same location. But the building itself is rather old, 50 years or 60 years old. So we have to do something about it. Now 2 organizations of the Global Financial Center, Osaka Dojima Commodity Exchange and Osaka Digital Exchange that I have been talking about for quite some time. And here, already, as you can see, as to Osaka Dojima Commodity Exchange and Osaka Digital Exchange. Now there's some capital arrangement and the stock company, the structure here. And there are some other participants, even from overseas to be added to investors, the list. And the name here, Osaka Dojima Commodity Exchange, I think we should take out this word commodity, and that's what Nakatsuka-san said, where everyone knows that Osaka equals most Dojima. But some people say that I'm from Osaka. So that's a very natural thing for anyone in Osaka, but I even think that the we can take out Osaka from the name as well because it is going to be really global. And SMBC invest 40%, contributes in the 40%, and other investors will certainly be on the list. And now, it is converted to join the company and then set up a spot exchange, and then it will become the holdings entity. And also clearing that will be part of the picture. That is the ultimate picture. We are going to do our best and we support to that effect. Now about Osaka Digital Exchange, in the spring in 2022, the PTS for stocks will start. And after 2023, the PTS of for SG will also be operable and hiring people. And so on. And as to PTS, were too much concentration, that's the current reality, but we'd like to develop PTS at the which that is the -- which can compete with the other Tier 3 as well. The other day, CBOE, the Chicago Board of Options Exchange, and the NX, the global markets, announced to acquire Chi-X Japan, and I talked with the CEO. And as early as possible, the Chairman of the CBOE is expected to have the telephone, the meeting with me. And -- but Osaka Digital Exchange, that is in the picture. Therefore, we would like to give working the function and capability to the entity. And we -- I hope that there will be more pressure coming from the U.S. and this is the schedule, the time line going forward. And as to the fintech, the companies. So we want to establish an amalgamation of fintech companies. The other day, the Satsuki Katayama called me, she from LDP, and I was asked to talk in front of the Diet man, the human resources for finance area. My image is almost like the human resources for IT. I'm not talking about traditional IT, but the IT, like AI, someone who is capable of using AI, very sophisticated IT people that should be part of the financial sector in the future financial -- all the financial deals will be conducted with some kind of algorithms. So the next-generation computer will be more dominant in the sector and the human expertise of the experience will not be the competition for such advanced technology. We need the people, of course, the legal experts, for new financial and act laws. But in a digitized world, the world will be more globalized. So when that happens, how to coordinate different legal systems of different countries, and we need talent to do that as well. So far, the financial people or the experts of finance area are very different. So we need to have good understanding of that difference. Even I -- when I established each rate, the -- because of the current entity. And I talked about the 1/3 of the IT experts and 1/3 of finance, the experts and HR legal entity other areas. Another 1/3. And I said there's no salesperson. We don't need salesperson. We need marketing, but the marketing in the future will be different from the marketing, traditional marketing. In other words, Big Data should be utilized and the AI will analyze it and to come up with best solution. That is the picture of marketing going forward. Some people say that you should do -- be fluent in foreign languages. But that will be irrelevant because you can use the automatic translation, the machines. So when we think about future, our future business, we need to change of mindset. We will make the mistakes if we continue to think in the traditional context. Here, we have the picture of the fintech, the picture, JPY 119.5 billion, the investment for fintech funds at A and B fund -- through A and B funds. We made that much investment. And of course, we have exited from some of them. And as we made announcement the other day, 4 plus 5 fund, industry 4, society 5, another JPY 100 billion level investment in that area as well. And we are, of course, calling on the foreign investors. But it's not just about foreign investors. That should be the domestic investors. The estate will be much more reasonable, like 30% to 40% lower than that in Tokyo. So when it comes to an amalgamation of industry, again, some people want to apply the old definition. What we need is a data center, not a big data center, but smaller data centers, and many of them. Bill Gates says that it should be the smaller reactors, not the big nuclear reactors. And I'm kind of in line with that kind of thinking. I agree with him. And now the second one of STGs, the actively invest in venture companies with innovative technologies. We have been investing in the venture companies, and we adapt that technology in the group. And also, we spread that technology across the industry. That is the SBI Group's basic strategy. So the investment, adoption, introduction and the fusion and transform the society. For example, the Ripple, invest in Ripple at a very reasonable price. After the current lawsuit, Ripple will go public. And the current CEO wants to do that. Chris wants to do that. How much would it be? And I have more than 10%, honestly will also go public. And we are, again, the largest outside shareholder. And what will be the price. Think about it. So it's not just about the technology. But in Japan, we have created new entity, Money Tap, the payer to pair the payment. The remittance becomes much facilitated and appear to be also that is in the picture and with scalability, and a very good security, high-level security. And that is the new picture for the remittance. And [ avengi net ], there will not be used anymore. Now 6 banks have already been connected and 3 are to be connected, and within this year, the 20 mainly regional financial institutions will be connected. So the Money Tap connected to the PayPay or LINE Tap and so on, so forth. Next, the exploration of new business, investing in venture companies with good technology. So we have been invested in 171 companies with a total of JPY 119.5 billion, and we are already in the phase of recovering the investment. This is the picture of the investee companies and the names in the red boxes are IPO-ed. Next, that introduce the technology into SBI Group. What is really interesting is the DataRobot. So it is the entity to provide the very reliable AI technology to global companies competing for AI innovation. It's -- DataRobot is a U.S. company. And I talked with the CEO of the company, and we used to do meetings, and we decided to make investment in them and we suggested to form a joint venture in Japan, although they already have local entity here. And already, Shimane Bank decided to use AI-driven organization building program provided by DataRobot. And as to supply chain finance, as I mentioned earlier, it's going to be very important going forward. It's about traceability, how to secure traceability and supply chain finance. Using blockchain technology, you make the proof of the Japanese produce and to differentiate the yield from the Shimanto River from that from China. And this is, of course, related to the export and increase of the export. SBI Traceability was established on April 22, and our focus is on agricultural products and supply chain finance. We are collaborating with the Singapore's RootAnt, and we invested in 4.85% in them. And their supply chain finance platform is called BANCO. So it is suppliers can not only hold the DPO issued by the buyer company but also divide it up and use it up to pay downstream suppliers or resell it to financial institutions to convert the accounts receivable into cash as early as possible. So it's a very interesting initiative. And BYFIN is our Hong Kong subsidiary. And there, we collaborate with the RootAnt. The 2 come up with SBI Bank platform, a platform that utilizes R3's coder blockchain technology. It's going to be used Hong Kong, Japan and the Vietnam and so on. Here's the third one. With various regional banks, and we have investees that we have invested in in the past. And their advanced technology expertise and we have been building a good relationship with investee companies. So we would like to leverage that so that we can introduce them to regional banks. So this is how we've been doing that dispersion process. There's many of examples. It was hard to do this on your own. There are people who are not that familiar with fintech technology. But now -- the banks were not familiar to fintech. But now they have been incorporating technology, and they have been changing in a drastic way. So the banks, the regional banks who thought they were able to do it, we were telling them, no, that's not the case. Think about the power of technology. We embody the technology, and we would like you to do the same. And that's how we've been offering and promoting these technologies. So this is Money Tap, I was referring to earlier. And here, we show an example of something new, which is Machi no Wa that was jointly established with Chikuho Bank and Kyushu Electric Power. There is a person called [ Iritono-san ], a lady, who has been sent as the CEO. So premium coupons are going to be issued and managed through this entity. Apart from the scheme, personally, I would like to utilize R3 or Corda so that in the Expo regions. And the regions where Expos are going to be carried out, I hope they could use this because people go shopping when an Expo is in place, and often, there weren't many places where they did money exchange. These days, you might not need these services as much. However, the currency you bring to Japan cannot be utilized or electronic currency or credit cards may not be accepted. So at that venue, I hope everything can be accepted. And we also want the money exchanged at the venue to be used there as well. So digital currency issuances have been happening. Many of the examples are in Kyushu, this is between Chikuho Bank and Kyushu Electric Power, and we would like to bring this nationwide through the joint venture. And also, we talk about white label apps here. SBI NEO Financial Services, together with regional banks, they introduced a white label banking apps with 11 banks, and another bank has already decided to implement this app. Therefore, the bank teller services can be provided at lower cost. And also various of the fintech services will also come with the deal. This is something that is highly appreciated. And I also think this page is very interesting. Balnibarbi, I talked about this company several times in the past. They are listed on Tosho Mothers. Sato-san is the President. He's working on regional development. This is a case of regional revitalization project in Awaji Island, and made a cafe here. And with this development, restaurants were also developed and other types of development happened and the neighborhood changed dramatically. So the same thing is something we're trying to do in Shimane because there's a lot of tourism resources in Shimane Prefecture. So we would like to replicate something that is similar. So with SBI, Shimane Bank and local companies, and with this company, we would like to promote the regional revitalization project, and we have reached a basic agreement. So it's important here that we also have the local companies and local community be involved in this kind of project when you think about regional revitalization. So moving on. SBI grows progress and synergies towards Fintech 2.0. And the digital finance space, we would like to be aggressive and work across multiple fronts, expand new businesses and promote global expansion in the space based on a policy for integrated domestic and overseas operations. There's [ ply phrased ] here. So this is something we made in the past from 1999. We have spent 16 years to create an online-based ecosystem. This was Fintech 1.0. And AI, Big Data and other types of technologies, IoT was incorporated and robotics as well. And we created Fintech 1.5. And of course, blockchain is included as well. And now digitalization proceeded even more with digital asset banks, global exchanges, these centralized finance, security token offerings, nonfungible tokens, Central Bank digital currencies. So blockchain is now the core technology for this digital financial ecosystem. And this kind of age is right across -- right around the corner. Therefore, in this world, regarding digital assets, we would like to ensure that we develop this new area and become the dominant #1 in creating an ecosystem. So we spent 16 years for Fintech 1.0. And now 16 years, we don't have enough time. We can't spend 16 years. We have to spend about 2 or 3 years to create the situation. And technological evolution is moving rapidly. Promote the establishment of a global secondary market, not just primary market of ST. So for ST, this is basically real assets such as stocks and bonds that are managed as tokens on the blockchain. And in 2019, May 31, it became clear that the financial instruments in the Exchange Act applies to so-called security tokens, to which the right to receive revenue distributions as granted through the amended, and we also need to register as a Type 1 financial instruments business in order to conduct sales of security tokens and to handle public offerings. So now this is where we are. So with this as a backdrop, we took immediate measures to establish a self-regulatory organization in 2019 October. I am the chair right now. And most of the major brokers, 12 of them are regular members, and for various fields, we have 47 companies as support measures. So we have a total of 59 members right now. For the issuance market, we don't want something like what happened with initial coin offerings to happen, which was quite fraudulent. We would like to ensure that people are compliant and are thorough with that. And we would like to create a few business opportunities that are completely compliant with law. And we are currently taking swift action and we are currently endeavoring towards establishing a Singapore-based digital asset exchange with 6 digital exchanges of Switzerland. We would like to create Osaka in Japan and also in Singapore, together with 6. And we will start business in 2021. So that would be during this year. And in 2022, we would like to officially commence services. Furthermore, we would invest in a Börse Stuttgart stock exchange group from Germany to create a global digital asset finance ecosystem. They are the second largest securities exchange in Germany. This exchange is going to create Germany's first digital asset exchange. So that is why I decided to invest a stake of 10% right away. And going forward, custody operations will be done together as well. And so we are talking about various opportunities right now. Currently, we are the digital investment company of the Börse Stuttgart Group, includes blocknox, a crypto asset custodian. Therefore, we are planning to invest into this digital investment company. So we're talking about that right now. So we would like to connect these entities together so that we can create one of the world's largest digital asset exchange corridor. The other day, Sygnum and its CEO and I had a talk over the phone, and we agreed on this notion, and they were saying that they would like to also enter the U.S. So why not enter -- incorporate someone from U.S., and we were open to that idea. So next with the full-fledged challenge to develop new businesses relating to digital assets. First of all, so what I'm endeavoring for is digital asset banking. I want to make a bank, a digital asset bank. So Sygnum is already the world's first digital asset bank. They have brokerage, tokenization, B2B banking services, asset management, accounts and custody and a credit offering. All these services are being offered in their digital asset business. This is what we would like to make. So together with Sygnum, we have engaged in a partnership. We invested 4.95% as of March 2021, and we have established a fund, and we would like to target Southeast Asia and we'd like to invest in promising start-ups with innovative technologies in the field of enterprise solutions related to financial market infrastructure and DLT, mainly in Southeast Asia and Europe. An asset management independent company from Italy, Azimut Group, has been saying that they would like to also participate. So they are likely to participate going forward. We would like to set up the first digital asset bank in Japan. So we would like to prepare. And I'm asking one of our young employees, Mr. Hayato Sato, to become the representative of this entity. So I have already appointed him. Until then, I've been asking him to study hard about this area. So in 3 phases, we have a strategy to realize this. Next is promising business areas and digital asset-related fields, which were decentralized finance, which is called DeFi, and nonfungible tokens, NFT. And furthermore, this is being talked about a lot these days and also the Central Bank Digital Currency, CBDC, as a matter of course. So this area, we need to enter all of them. For decentralized finance, according to DeFI Pulse, it was about $600 million in April 2020, but now it has went up by 100x. In order to use DeFI services on the blockchain, this is the assets that are locked in. The reason why DeFI is good is smart contracts, ethereum-based products that have been used for smart contracts. So it's mainly ethereum based, but the usage fee, the transaction fee has been surging these days. So if there is an expansion of non-ethereum-based services, it is likely to expand even more. Compound is famous for lending. And the crypto assets can be lended and borrowed. And without credit screening, low-cost loans can be offered. However, you need to take collateral that is higher than the loan itself. So the credit creation is not being fulfilled. And also, it is being used for games and also distributed markets can be made. For ST, ST is one of them. So this is extremely promising. And we would like to engage in various businesses. So NFTs add value to digital content. It is nonfungible tokens. But our company at our early stage has already focused on this. And we have been setting up a company called SBI Art Auction. And we have engaged in a partnership with Start Fund to issue a blockchain certificate to successful bidders who wish to receive it. Before you -- people started to talk about NFT, we were already engaging in this business. But people are paying a lot of attention to NFT. There was an art item that was sold for JPY 7.5 billion at an auction. For these types of art or for games, when you think about the value of it, sometimes it might be a value regarded highly at one time, but it's not evaluated that highly. But why -- in order to have the value recognized, when you think about art items, traditional art, it's basically the appraisals that are being done by the experts and you need to have the appraisal certificates that determine the price of the art. For example, for tea ceremonies, you use the ceramic art. But it's a matter of whether appraisal certificates are attached to it. Even if you just claim that someone made it, it still won't make sense. It's a matter of what's written on the box. So it's about approving the note of how genuine the art product is. So next is Central Bank's digital currency. China is the most advanced. Their intention probably is that they want to destruct the U.S. dollar being the key currency. In order to contend against the dollar, Central Banks, 86% of -- 65 Central Banks are conducting some kind of research or study on CBDCs nowadays, and 14% have advanced to the pilot project stage already. And at the Beijing Olympics, China is saying they would like to use it. So on fourth of -- I'm sorry, 5th of April, they have carried out PoC and BoJ. They need to make sure that they're not behind this. They will be left behind. So whether it be the government or whether it be BoJ, they're slow in speed. And researchers are behind. Therefore, we took the initiative to set up SBI Financial Research Institute. And on April 1, we have established this as an incorporated university. And so this institute will conduct surveys, researches and policy proposals for digital assets. So fourthly, we will expand group assets under management from current JPY 4.4 trillion to more than JPY 10 trillion by March 2025 at the latest. So it's JPY 4.43 trillion. We want to increase to JPY 10 trillion. In order to do this, we need to do M&As. And in terms of SBI Group management assets, one is venture capital. At a very early stage, we have been investing IT and bio because we believe that this was the core sector of 21st century. In 20th Century, it was home electronics and automobile. We believe that these are the industries, growth sectors of 21st century. So we have decided that we will focus our investments in these areas, and that's what we have been doing until today. And we have invested in a cumulative 995 companies. And altogether, 120 have exited through IPO or M&A. So 170. So that's 17.1% of investee companies. You may not think that it's not a big deal, but it's not about how much money we make. This is a number of companies that went to the market which is very meaningful. Because the true investment management capabilities is represented in things like this. So in 2022, we have said that we will do -- at least 28 will do IPO. And last year it was 22. And in addition to that, we have planned IPO schedule investee companies of Fintech funds and SBIA blockchain funds, 32 between April and December 2022, 42 in '23 and 34 in '24 -- so 2024. This is an enormous amount of companies. And we hope that this will continue to grow. Furthermore, there are many companies have exited because of strong performance and they have paid out dividends, and they have been paying back the investors. And because they have performed well, more are willing to invest further more. So that is why we have new funds. And so we have SBI 4 plus 5 fund, which is JPY 100 billion. We have institutional investors, business corporations, regional financial institutions, they have all participated. This is also a great thing because this is open alliance as well. We joined hands with different companies, and we put in our best to improve the performance so that we can make everyone happy and content. CPC fund is now JPY 95 billion in terms of total commitment amount. We started in 2016 June, and today, and our aim was JPY 100 billion, and we're almost nearly achieving that goal. And SPACs, S-P-A-C. I don't want to say I'm somewhat perplexed, but this situation in United States with SPACs is quite amazing. And there are different companies that we invest in, in U.S., and there's great value to it if what's been said is true. Because we make significant investments, and there were 4, so I would say a total 6 that have possibility of potentially becoming SPAC or has ability to do it. And six, if you add up the total amount, I guess you multiply the stake we hold and if we're able to sell off at that price, if you look at the value estimate, it will be about JPY 50 billion. That will be the amount we will make money. And I was telling Kawashima, are we really okay with this? But that's how the new trend in SPACs is. So our business is bringing Japanese companies to the U.S., and we're preparing for that. And we have group companies which can also be brought to the U.S. market with SPAC. So in other words, if you look at our stake in it, shareholdings in it, 73% is comprised by foreign shareholders and institutional investors. And the foreign investors, when I speak like this, they really appreciate it, and that's why they buy our stocks. So maybe it might be quicker if we just did SPAC abroad outside of Japan. If the Japanese investors don't understand, what can you do? So that's sort of the judgment we will probably render. And secondly, the Asset Management business. This is something we really need to put our efforts in. In order to increase this, we are collaborating with different promising leading asset managers abroad. And we are trying to increase the assets we are managing from the regional and financial institutions. So first of all, there's a tremendous opportunity to expand AUM from regional financial institutions. So first of all, if you look at even the story of Governor of BoJ, the prices have not increased. Even the last 10 years, we have continued to see negative interest rates. And they continue to implement accommodative policies. If that's the case, then we will see decrease in core business earnings due to this continuous negative interest rate. And also the balance in securities investment of regional financial institutions. This is end of February, JPY 12.8 trillion, among which, there's JPY 85 trillion which is managed by low-yield Japanese yen bonds. What's whether worse is that about 40%, it's about JPY 15 trillion of the [ JTVs ] and municipal bonds held by regional financial institutions will be redeemed by 2022. And we probably need to work on it so that we can probably capture almost everything. So Kawashima, Takamura, Asakura, these are the 3 best of the players in our company. I said they will need -- I said I will do the diplomacy work. So you can go sales. I'm not blowing horns. I think I have great capability to market. But we need to go grab this opportunity and we need to do this for the sake of the regional financial institutions. And also, we need to think about global asset allocation, which means that we need global talent. So if we do an M&A and there's non-Japanese there, we need to continue to utilize those talents. Even if we don't do M&A, we need to gather and attract non-Japanese talents in Corda and Apple. When the Corda price went up, I think it was about 4 times a year from Saudi, from Kuwait, from Abu Dhabi, Dubai from these Arab states. I mean those are the countries I visited in this hot, hot weather. And what you see is the top is Arabians, but actually people who are actually working at the working level are all Caucasians. So that's the situation. Even if you look at Sovereign Fund in Korea, I believe the top was non-Korean. So those are the talents. Like I said about financial talents, we really need to invent those talents by ourselves. And in terms of SBI Asset Management Group, it's managing assets of 94 regional financial institutions. So 53 in regional banks, 19 in Shinkin and Shikumi, and then 22 JA and others. So this is the situation. And those who are already asking us to manage their assets, it's approximately JPY 1.9 trillion, among which about 30% is already have capital in business lines with us. And then there's about 70% that have not. And now SBI Regional Revitalization Asset Management has exceeded JPY 830 billion for the last 2 years. And if you look at SBI management group's annual inflow of privately placed investment trust, exceed JPY 1.1 trillion were ranked fourth among the 89 asset managers. So you rank with PIMCO, BlackRock Japan, Mitsui Sumitomo TA and then it's us. And if you look at SBI Bond Investment Management we cofounded with PIMCO, we started to -- the inception was March 2016. We started with SBI PIMCO Japan Better Income Fund. I said it should be called better income fund, better in. I told that to Asakura. And in 2021, it's JPY 1.052 trillion. And Vanguard. My next was working with Vanguard. It was not doing well, and Vanguard said Japan is not good. And we said, "No, no, no." And Asakura negotiated and we have been able to establish this joint fund with Vanguard. And now the net asset is JPY 183 billion today. And this will continue to increase now. And Yukidaruma series, so Yukidaruma, the snowman, it will continue to increase, and it's now JPY 35.5 billion today. So we will continue to utilize M&A and increase AUM from JPY 2.9 trillion today to -- for the more to JPY 10 trillion in the future. The reason we acquire Rheos is because of their strong investment management capabilities. Today, their AUM is JPY 960 billion, nearly JPY 100 trillion -- I'd say, JPY 1 trillion. So -- and the overseas financial business further enhance its business base, largely centered around overseas banks and security houses, and promote efficient arbitrage by taking advantage of interest rate differences and fluctuations in foreign exchange rates. So for example, this is Cambodia. And this Cambodia's first CGIF. So it's an ADB trust fund. And it's also rated AA by S&P. It's called SBI Royal Securities. And we have multiple guaranteed list corporate bonds project, and we will bring this to Japan. And there's quite a bit of yield -- that products that yield about 5% or so. So these are the things we want to be proactive to acquire, and we will encourage regional banks to also purchases. This is managed by U.S. dollars. This is the network we have built in Southeast Asia. So this is Southeast Asia financial institutional network, and you can see we have built a significant network in different formats, and this is expected to expand in the digital world. The other day, in Thailand, I met with the top Thai Bank CEO, and we talked about how we want to do digital together. He said he wanted to do digital with me. So I said, sure, let's do it. So we decided. [Statements in English on this transcript were spoken by an interpreter present on the live call.]