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

Thank you very much for joining us today at the SBI Holdings earnings announcement. Today, we have participants on site. And those remotely attending this meeting, the total of about 160 attending this meeting. So we would like to take 2 hours or so to explain about the results. As to the numbers, which have been already announced, the revenue, JPY 763.618 billion or up 41.1% year-on-year. And the pretax profit, JPY 412.724 billion, up 194%. And profit for the period, JPY 355.724 billion, or up 264.8%. Profit attributable to owners of the company, JPY 366.854 billion or up 352.4%. ROE, 49.4%. So year-on-year, up 33.4 points. The order numbers are record highs, and we renewed the numbers record high in the previous year. So 2 consecutive years, we renewed record highs. And of course, these numbers on the other consolidation using or reflecting Shinsei Bank's numbers. And some of the gain on negative goodwill and the periodic -- the profit from January to March 2022 are reflected. And the full year profit is going to be incorporated from the year to end in March 2023. This is the comparison with Nomura Holdings, Daiwa Holdings and SMBC Nikko Securities, apple-to-apple comparison for 3 years. Other companies are struggling. Year-on-year, they decreased the numbers. On the SBI Holdings, they recorded positive growth. So the negative -- the goodwill and a gain on negative goodwill or the January to March, the profits of Shinsei Bank, excluding all that, what were our results, and this page shows that. The revenue, up 29.1%, JPY 698.685 billion. Pretax income exceeding the JPY 200 billion. So even without Shinsei, it was over JPY 200 billion, up 42.6% Very good growth. And the profit for the period, up 52.3%, JPY 148.516 billion. Profit attributable to owners of the company exceeding JPY 130 billion and ROE 20.8%. With or without Shinsei Bank, our results were pretty good. Fiscal year '27, '28, '29, '20 and '21 (sic) [2017, 2018, 2019, '20, '21] pretax income. And for the FY 2019, there's the shock of the COVID and the -- we had some dip as other companies did. But from there, we made a very strong growth. The profit level has been increasing over the 5 years and then the Shinsei Bank's numbers were added. That's significant. That's what the FY 2021. Under such circumstances, reflecting our good results, we were upgraded by 1 notch A- for SBI Holdings, SBI SECURITIES, A and the SBI SAVINGS BANK in Korea was upgraded to A from A-. That means that our funding costs will go down further. Even when the interest rate goes up, we will not have such impact for our funding activities. So that is for fiscal year which has ended. What about this new fiscal year? What is our business outlook? Why we have this business outlook for this single year for FY 2022, because we are at the changing time. In the U.S., interest rate is coming up and Europe is following the suit. And only in Japan, the interest rate is not raised yet, and but weak yen continues. That will give damage on the whole economy. So it's just a question of time that the Japan interest rate will start to go up as well. So such changes in the interest rate market and the Russia's invasion of Ukraine, the global economy is changing or shifting from globalism to more divided, not necessarily block economy, but more divided. And of course, when it comes to trade, that will be bad news, bad impact. And in China, the COVID-19 situation Omicron that seems to be spreading and the Chinese Government is taking zero-corona strategy, and that will have impact -- significant impact on its economy. So such extraordinary factors exist for the year to end in March 2023. So we should be flexible in our business strategies. What kind of business strategies do we have to take? Basically sustainable and stable growth should be in our minds, and we should be more focused on that under current circumstances. And for fiscal year 2022 is the current focus on this page. And what about fiscal year 2023 for the year ending in March 2024? The situation might change when the economy slows down globally. And there is a possibility, I think, that the interest hike will stop and that will change the business operating environment. So these 4 things listed here will be the central part of our thinking. So strengths and profitability through allocating business resources to banking and nonbanking segments in anticipation of rising interest rates. #2, powerfully promote diversification of products and business areas and M&A strategy in order to realize Neo-securities initiatives as early as possible. #3, further accelerate overseas business development to utilize arbitrage based on differences in economic development stages. #4, revaluation of business segment in view of problems with the current segment and future business development. These 4 things has been decided. And naturally, when the interest rate goes up, the equity market is on the downward trend. So there's a shift from equity to debt alone. If we stick too much to the equity for too long, whether there are so many unicorns now, lots of profit was generated. It just happened. You might have happened to invest in these entities, but such age is gone. We need to have a clear understanding of shift happening and the Dow Jones is coming down when the FRB started to raise interest rates and the NIKKEI that is following Dow coming down as well. So what about strength and profitability through allocating business resources to banking and nonbanking segments in anticipation of rising interest rates. So expanding the weight of debt business in anticipation of a shift away from a 0 interest rate policy in the future. For example, this is first-tier regional banks, interest rate goes up, then this red part or brown part is interest rate. And then the net operating profit of the regional bank goes up. Of course, it does. When the interest rate goes down, the operating profit goes down and this is for regional banks. What about second-tier regional banks? The trend is more extreme. Probably in June and July, the 0.5%, the rate hikes could happen again respectively, in 2 consecutive months. And in Europe and the ECB President said that the interest rate could be hiked in July. So Mr. Kuroda is insisting that the rates will not be raised in Japan, but his term will come to its end in the near future and the rates will also be raised in Japan as well. So why banking and nonbanking business? Why are they promising going forward? We are anticipating this shift, and our next move will be the indicator. The total asset, JPY 22 trillion for SBI Group, both at home and abroad, JPY 24 billion for Concordia and Mebuki, JPY 24.1 trillion. So based on that silently, but leading the way. We have had anticipation, and those accumulated assets, of course, Shinsei Bank, when we look at Shinsei Bank from January to March period, that's the responsibility of the previous management, and we will make some adjustments. We did make some adjustments. And from now on, we are coming into the state where we generate profits. SBI Savings Bank pretax income JPY 38.9 billion, and we have almost 100% stake in this entity in Korea. In Cambodia and Vietnam, that's an extreme case, JPY 32.1 billion last year. And for this year, probably close to the JPY 45 billion or more than that. Pretax profit will be generated. And when we look at dividend to be received, about JPY 15 billion of dividend will be received. So the future focus of equity market is not the point any more predictable with a certain probability that we can predict the level of profit and the dividend that we receive. When it comes to management, you need to see ahead -- look ahead and take necessary actions. So based on an anticipation, we made moves. And I was -- some people said that why do you have to make investments in regional banks? Well, but living in the negative interest rate environment, and it is in that environment that we invested in those regional banks, so it was rather cheap and it's very likely that those entities will improve their performance. SBI Savings Bank in Korea, in buying this bank, in 2013, delinquency rate was 51.6%. I was criticized so much when I decided to buy this bank. It's stupid, they said. But in my opinion, it was a good timing to buy this bank. Why? Look at the lending rates, 13.41% of the savings banks. It used to be like 20%. And the commercial bank, 3.98%, about 4%. So the delinquency rate continued to come down, now to 1.38% and the performing loans increased. So of course, there are profits. So since this acquisition, revenue and profit continued to increase, and we enjoyed that trend. And this is the bank in Vietnam -- because of the legal constraints, we wanted to buy more, but the -- it should be less than 20% by foreign investors. So our stake is 19.9%. Already, more than JPY 200 billion valuation adjusted in e Ho Chi Minh exchange. And the other debt performance is getting improved. So in Southeast Asia, I want to buy more assets, nonbank and banking assets. If there are good deals, we will be interested. To be prepared for the next move, you buy when the price is inexpensive and develop the entity into profitable ones. That's my basic understanding. I mean, the midline basic thinking. So Shinsei Bank had a very good purchase. It's a rare case of good purchase. The largest nonbank in New Zealand, UDC Finance Limited. This is a very good company. Auto loan, retail and corporate, the asset-backed, the financing and they have been increasing the profits. Now Shinsei Bank is part of our group, and we need to have more M&As of this type. JPY 50 billion becoming JPY 70 billion. If we stay on that level, it will be difficult to pay back JPY 300 billion. So we need to think big. And if you cannot buy it on your own, you can cooperate with some other entity to buy it together. For example, in Australia, it's a good company. Our investment ratio is only 10% Latitude, bought by Shinsei or MB Shinsei Finance in Vietnam, 49% of investment ratio. And in Cambodia, it's going to establish a new bank. And so the investment in such entity is important to make profits. To achieve sustainable growth of SBI Group, thoroughly utilize the Shinsei Bank Group's customer base banking and nonbanking functions. So when I talked to you how to improve Shinsei Bank, that is the main focus. But from now on, it's about SBI Group as a whole. How to utilize Shinsei Bank's management resources or assets to make the whole group better and that will ultimately improve Shinsei Bank as well, that is the perspective that we need and that should be well understood by the executives of Shinsei Bank. And by improving the group itself, the group entities can be improved. And for that various assets like APLUS, Lake and their customers should be well understood. What is the good matching with SBI Group's other assets and how to create the organic -- the integration? And as to regional revitalizing strategy is coming into the second act and the functions of banking and nonbanking of Shinsei Bank will be fully leveraged for the second act. When we bought the Shinsei Bank, since then when we look at SBI Group and Shinsei Bank Group, it is a very strong complementary factor. And so if we successfully integrate the 2 organically then we can create something very good. Next, and we are going to do that exactly. So we view Shinsei -- so we have been looking into the customer attributes of Shinsei Group, and we have been looking into what kind of customers they have. We need to do a thorough research on this or else we won't be able to match the banking assets well. So for the customer base, they already have JPY 8.587 million, especially what's attractive to us is APLUS. Of course, Shinsei Bank itself. We need to dig deeper to see how we can match up their business with ours. We would like to utilize thoroughly big data. In our group, we have been using big data already. In order to increase the number of customers, how can -- what areas of the business should we integrate in a stronger way? We need to look at what kind of customers are attached to certain businesses. We need to follow this by big data so that we can run a scientific analysis. It shouldn't be done by intuition. For example, this is an example of APLUS. They entered a partnership with Bitflyer the other day. And for the first time in Japan, they report users with Bitcoins based on the amount they spend. So they started offering the Bitflyer credit card under the partnership and the number of applications surpassed 10,000 in just 3 days since the survey was launched. Of course, after a month, the situation may have changed. But in 3 days, they were able to reach 10,000. This means that there is a potential that there is strong demand out there. Of course, the crypto asset market, is it strong? Is it weak? Is it about to weaken? It is affected by these trends. However, whether there's good attraction at the beginning. From my point of view, it's extremely important. And we do a lot of crypto asset businesses, too. So how can we -- or with Ripple, we have a special relationship with them. Ripple's crypto assets, crypto currencies, how can we connect that with this? A special partnership may be possible. Many things can be considered. So SBI SECURITIES and Shinsei Bank began preparations for full partnership and financial products intermediary businesses. Various services will be made possible through this. And SBI SECURITIES have real estate-related financial instruments and wrap products, and we will be able to sell these products with Shinsei Bank's customers as well. And we will have them make efforts to sell these products as well. SBI SECURITIES will also become a bank agent. And the bank and the securities company will be seamlessly connected so that we can aim for a higher customer bases and deposit volume. SBI Sumishin Net Bank has been working on this from the past because we have different customer bases. And we can apply this between SBI SECURITIES and Shinsei Bank, too. So Act 2 of the regional revitalization strategy, I have been communicating to my people to thoroughly promote the triangle strategy. So what is this? It is basically, we have our functions and Shinsei have their function. So we will form a trinity and thoroughly have each entity and each business grow. That's what we're striving to do. For example, in the area of structured finance, this is an area where Shinsei is set to have strengthened. And in reality, it seems that they do have strength in this area and the business -- scope of their business, it has been growing, which is rare for Shinsei. And furthermore social trends are serving as a tailwind, meaning solar power generation, biomass or wind power generation, renewable energies, alternative energy and various verticals. Since they structured finance, expertise can be applied for organized and syndicated loans and what we're trying to do related to real estate all projects, project finance would also be an area where this can be applied. However, they don't have the sales power. They are weak, which we have. We also have a good customer base. We have predominantly a greater customer base and also the regional financial institutions, too. And each of their regions have an abundant amount of customers. And also at times, as an institutional investor, they can also invest into certain products. So next is BANKIT. This APLUS, it was an app that was developed at APLUS. And it's actually good. However, it wasn't being integrated in its use with the bank. So it's a wallet basically, doesn't include a bank function. But what we're trying to do is expand the regional banking app. If you're at that function and use this app, as a regional financial institution, it would be a very good function. They will be able to obtain that strong tool. So if you use something good in a good way, it's great because they had the tool, but it wasn't integrated with the bank and it makes sense for the first time when it's integrated with the banking function, but they were not able to do that. So next is the Leasing Business. For this area, it has grown into a sizable business and it has been growing, which is show what we think. On an SBI group-wide basis, as well as with partnering with regional financial institutions, we believe there's more business opportunity to grow the business. So we need to ensure that the information becomes visible and available, and we have been able to build various pieces of information from the past that we can leverage going forward. Strategic capital and business alliance partner banks, qualitative transformation is progressing. And by increasing their corporate value, it's expected to contribute SBI Group's performance. So investment management, there's a lot of ludicrous articles about who is making a loss. I think those articles are nonsense. They were written by an amateur. What's more important needs to be noted. Investment yields used to be 0.24% in the past. But now the investment yields are up to and improved to 0.96% by changing the portfolio. When rates are up, there may be some losses this part, but it's not going to go away. So what is the actual issue is the question? Study income gain was low in the past. That is why the net interest income was negative. Our core profit was negative, and that's why some businesses went bankrupt. So with us as comparison, we are talking about core net income, that needs to improve. And that's the kind of portfolio that it needs to change, too. So this is Bank A through B. These are banks in which we have a stake of over 15%. The ratio of distribution is the core business profit, but income gain ratio, so to say. It's 35.2, 67.4, 75.8 and so forth. If they didn't have this, core business profit would be in the red. So if it falls into the red, FSA will give out a business improvement order. So this was the prime issue, especially amongst Tier 2 regional banks. If you left that alone, there was a potential that they were going to go bankrupt. So by making an improvement on this issue, regional banks, we would like to enable them to focus on their core business. That is our investment strategy at the SBI Group and the contributions we're making to the regional banks. So based on that understanding, a lot of funds have been attracted and a lot of banks wanted to open joint shops, co-managed shops with us. And we saw the number of those types of banks increase in numbers. Now we have 14 banks that co-manage 23 shops with us. Assets on their management has been increasing, but you can see that the earnings have not been dropping off as much. Shimane Bank core business income, there was a one-off profits included in fiscal '21 that was accounted for. But in September 2019, we invested. So this is where the profits used to be then it made a huge improvement. And Fukushima Bank, CHIKUHO BANK, as well as Shimizu Bank, compared to when we made the investments, you could see that their core net business income improved substantially. So this is our goal, and this was our aim. But there is non-sense newspaper articles writing up something that is ludicrous. I think they need to do more studying, the journalists. If you wrote an article in Wall Street Journal, someone would sue you and your career will be over. Sendai Bank, Tsukuba Bank, TOWA BANK, for most of them, core net business income has been improving and qualitative transformation has been progressing. So secondly, the move to Neo-securities, we would like to ensure that we realize this. This is basically to eliminate trading fees for domestic stock transactions and other various fees that are currently incurred by investors. Right now, you could see it has gone down to 13.2% SBI SECURITIES revenue. This -- the commission dependence has been falling to this level for domestic stock brokerage commission. It used to be 71.1% for commissions. This is on a quarterly basis. Now it's as low as 12%. And during this period of time, if you could see that the average daily individual stock brokerage revenue has been increasing. SBI SECURITIES will diversify its products and business fields by utilizing M&A to realize Neo-securities initiative at an earlier point in time. So target areas for M&As, I have referred to it a number of times in these occasions like this, FX, digital asset, M&A, asset management companies. So we have invested in these companies. Today, you saw a press release on Okasan Asset Management. Furthermore, with regards to open alliance. So in particular, we will truly implement mutual fund savings by credit card. We will work with Sumitomo Mitsui card, TOKYU card, Takashimaya card, APLUS under consideration as well. And the effect of alliance with Sumitomo Mitsui card was quite effective -- was quite strong. We actually exceeded JPY 10 billion already. So this is a win-win situation. It was an alliance that benefited both sides. And the number of counters reached 260,000 and investment trust. And with -- if you look at the year -- excuse me, the investment trust balance at the end of quarter while the market is falling, you can see that the balance is actually increasing. It's JPY 5.5718 trillion. If you look at investment trust fees, compared to FY 2020, 2021, we have increased by 42.1%. SBI Wrap is also widely accepted by aligning with FOLIO Holdings. Within just 15 business days since the service launch, the asset under management exceeded JPY 5 billion. SBI Wrap, if you look at the number of applications -- amount of applications we have accepted, please look at the trend. This is, as of May 23, it's already JPY 8.3 billion. Real estate finance, we are entering into the businesses here. SBI MONEY PLAZA, they have enhanced sales of real estate small-lot beneficiary interests up until now. So they have started this on a full-scale basis since 2020, and they have sold JPY 7.775 billion in 7 projects altogether. Structured bond, I said you should stop structured bond. We should just lock it in. And when you become a professional like us, when you look at the circumstances, you can tell right away it's too risky. And I said we need to eliminate any possibility of cost in trouble to the customers, which means that you need to act early. Just because you make money, you don't take that risk. So then is it all right to lose profit? Well, no. So I just say, replace your product portfolio. And that's where it has led to real estate small-lot beneficiary interest in real estate. And also, we are endeavoring to increase the AUM and expand business in real estate funds such as private REITs. So we work with different real estate finance companies. We have invested and acquired the shares, so they make good products, and we want to sell that to the customers. We have been really increasing, enhancing corporate business as well. We are now about 95% in IPO underwriting. And if you look at the number of us taking lead managers, and this is not just on the primary issuance, but also in secondary as well. And also, Shinsei, there's a company called Shinsei Investment. So we, together, Shinsei corporate investment and SBI Investment work together to increase the number of IPOs that we handle. And also, as financing the equity, we say, why don't you just borrow from the loans to those companies that are just about to go IPO. And they're just about to go IPO so that's a great way to capture that opportunity. I wouldn't say 100%, but it's very close to that. So you lend money to those companies are about to go IPOs and profitability is good and it's safe, less risk. Those are what we need to target. Corporate Venture Capital, we have spent JPY 105 billion in total commitment amount. I said this earlier, we are -- industry top-up 97.5%. And if you look at -- there's 120 companies of all public companies between April 2021 to March '22. And we have 97.5% of them. We have been working as underwriters, and they were actually 20 companies. We have worked as a lead manager, which is record high. Even for PO, that's secondary, we had underwrote 25 IPOs, corporate bond underwriting as well, we have underwrote 43 corporate bonds in FY 2022. And recently, we have new public ones. We have utility bonds. They have invited us to be the underwriters. And then we have FX business and capital asset trading business, we have been sharing them. That is why we have been able to see a nice growth of trading revenue like this. Furthermore -- so up until now, we have been targeting retail customers to do foreign exchange services. From now on, we will also target corporate customers like institutional investors, business corporations, financial institutions and high net worth asset management companies. And we are now offering OTC trading of currency-related derivatives. So this is new products, new markets that we want to pioneer. So if you look at foreign stock trading, if 2018 is 1.0, then FY 2021 is 6.3. So -- and the trading value has now increased by 6.6x -- trading volume has increased by 6.6x. And you can see the significant number of accounts with the realization on your securities initiatives, but we should be able to handle about 11 million. So we should be okay under 11 million accounts. I hope that we can handle up to 15 million for sure by the end of this year. And we want to achieve 30 million accounts, including M&As in the future. And I think we can use a different system to deal with this. We need to adopt the system that is highly safe and has sufficient capacity and capability so that we can process many transactions without causing trouble. Our customers' number accounts is growing by 12.3% per annum. If you look at compound annual growth CAGR between March 2019 to end of March 2022, Nomura is only 1.4 and we are at 12.3. So you can see that we have been growing quite rapidly. Now this is the acceleration of overseas business development in order to utilize arbitrage. So if you look at the Asian countries or ASEAN countries, economic growth and market potential. So if you look at the productivity increase, the larger the population then the economic growth can be expected as well. So in a country like this, Japan where we see declining population on this, you'll improve the productivity, you will not be able to achieve greater economic growth. And also if you look at the certain regions, you see that GDP per capita is also increasing as well. And this is an area we need to continue to advance. In Cambodia, there's bank called LY HOUR Bank. We have acquired a medium-sized microfunds company and made it into a commercial bank. We have 70%. This is growing quite rapidly. It went profitable right away. We also have investments into online broker in Thailand. So in principle, primarily in ASEAN, we have AUM of 20.5%. Japan is 43.3%. So we want to invest in high-growth economies. It's really about how much you invest in there, and how much business you carry out. You don't really need to go and invest in areas of low growth. So low-growth economy to high-growth economy, that's where the transition used to take place. So it's the other way around from how water flows. So we can consider different types of arbitrage. So for example, we can issue privately placed bonds by SBI LY HOUR Bank, and it's a U.S. denominated bond, 1 year, 1.1 -- 4.1% yield. So this is sort of the business that we can run or SBI Royal Securities, again, this is located in Cambodia. So among the Japanese brokers, this is -- we are the only broker -- Japanese broker who has a license to underwrite in Cambodia. And again, we will be the lead underwriter for Cambodia's first listed bond issuance, and we can bring this to Japanese regional institutions and we can monitor this company. And we know that this is government contracts. So this is stable. So we can say that we can give high yield issuance. So this is business segment change considering issues with the current segmentation in future business development. So the current segments, Financial Service segment, Asset Management segment and Biotechnology, Healthcare and Medical Informatics segment. That was before the revision. And my interest lies in to go beyond the finance with finance at the core. We have 3.0, for example. So where should it be categorized in terms of business segment or the SBI Savings Bank in Korea was categorized as asset management, but they are in the banking business. Why asset management category? Because when we purchased it, we thought about selling it. But right now, we don't intend to sell it. Well, if that's the case, it's to be categorized rightly in the financial service business. Asset management and investment are different. It should be -- they should be separated. As to cryptocurrency, the market is currently shrinking. Crypto asset business is currently shrinking. But I believe that the blockchain up until 2050 or same as AI, the blockchain will be the most significant technological renovation. And that technology is mostly used in the crypto asset area. The central banks, the currencies will be issued one after another globally. This war in Ukraine, the economic sanctions are imposed on Russia. So is that troubling Russia? In China, looking at the current situation in Europe, China will try to go away from the SWIFT system, but that kind of thinking is very important in the U.S., using its own ammunitions, and U.S. could make itself suffer by using its own ammunition. There are biggest ammunition, is the fact that the U.S. dollar is key currency. And in the SWIFT system, this key currency is used globally. And when that changes, the biggest negative impact will be on the U.S. So because of those factors, we decided to change the business segment. Now as per group's priority strategies and measures for the next 2, 3 years must, meaning that it must be achieved and want to achieve considering changes in regulatory and institutional revisions. So based on those categories, starting with must in the financing area. So we aim at aligning with 10 regional banks for capital and business alliance. And the second act of regional bank revitalization should be achieved, must be achieved. And the AUM of SBI Group now stands at around JPY 7 trillion, and it should go to JPY 10 trillion. What about want? So by realizing the Neo-securities and through the jump of the other customer, the foundation, we should lead securities industries reorganization. And in the securities industry in Japan, the position -- its position should be enhanced and its products and services should be refined, involving regulatory changes, regime changes. Compared to the U.S., Japanese securities industry is very much behind. Neo-securities initiatives, the commission 0. When that happens, many companies will go under. And number four, the strengths and measures to promote from savings to investment, and we would like to decrease it -- decrease the savings level from 50% to 30%. The asset building should be encouraged. And for insurance business through M&A, both at home and abroad, we aim at expanding its business size. Our insurance business is growing steadily, but the size is still very small. And in ASEAN countries, we are thinking to go abroad with insurance business. As I mentioned earlier, the asset price is now coming down. And also, do we integrate nonbank business with high capital efficiency? In the future, we'd like to set up nonbank holdings, SBI nonbank holdings. And when that happens, well, I will touch upon that later. Let's move on. Support for Osaka's International Financial Center Initiative by backing the strategic zone concept in collaboration with various stakeholders, including local governments, because of the COVID-19, because of Omicron, the initiative was at hold and we will resume it and the must priority strategies for nonfinance initiate branding strategy to gain recognition as a pioneer in the age of digital space and want strategies for nonfinance the SBI Group, in collaboration with its portfolio and partner companies that possess cutting-edge technologies and resources, develop a variety of businesses that follow Japan's national strategy, such as the environmental energy, contribute to the rule and infrastructure establishment in the platform business, especially in Web 3.0, including the Metaverse. So SBI itself will operate in this area as well. So we will aim at 10 companies in alliance with us, 10 regional financial institutions. And as you know, TAIKO BANK is the ninth announced on May 12, and we have 1 bank to go. And so we are finalizing the process. So this is about new business alliance with TAIKO BANK, measures to be taken to address the challenges faced by regional financial institutions. So going into the second act, as written here, there should be some other corrections later on in the Japanese text. In other words -- anyway, the banking accounting system, the next generation invokes huge costs. And there are lots of efforts to make a shift from fixed cost to variable cost and the DX database. Everything should be based on data for any decision. So the large database should be there in place for regional financial institutions and from regional to nationwide. And Internet banking system for individuals, providing a highly convenient and low-cost system to support the nationwide expansion of regional financial institutions. If you operate only in Shimane Prefecture you cannot grow your business sufficiently. When the population decreases and industry-wise, local industries, businesses are shrinking, we need to change that. It will be -- well, it's one thing to try to develop local businesses, but it will be faster to go nationwide. Next, next-generation accounting system. We have been thinking about it for quite some time, and there are already some banks to participate in this initiative. And on the regional revitalization services, we will have anonymous partnership scheme. And for investors, of course, we will distribute profit as when it becomes profit and able the systems the issue. But the future architect of this company helps us greatly. They equipped with great technology. I'm very happy to work with them. And AWS -- with AWS, we have a very close relationship. AWS's cloud capabilities will be utilized to its full. And the cloud-based next-generation banking system will be established. And by 2030, we will aim at the adoption of 10 banks and to be profitable by FY 2031. And when that happens, for regional banks, that will be a big help. Fukushima Bank is the first one to start. SBI DX database, more than 100 companies from the SBI Group and its invested companies plan to join for manufacturing, restaurants, medical, retail and so on. By categories, we set up database -- DX database and used by local financial institutions and be provided to local businesses. This will not happen from a single merger of Bank A and Bank B. It should involve qualitative transformation change. It will be meaningless to try something like this through a single merger. The 7 allied banks have decided to participate in this, and we have more than 150 dealings and potential deals with about 10 contracts concluded. Shimane Bank -- with the Internet banking system for individuals, Shimane Bank is the first bank to start using this and the other different regional banks aim at making a shift from regional to nationwide using this. We aim JPY 10 trillion of SBI Group's the total assets and currently standing at JPY 6 trillion. And we are going to add-on to achieve JPY 10 trillion. It would not take probably 2 years to achieve it. So the investment trust, about JPY 5 trillion and private equities, JPY 713.3 billion. And this is the joint venture, the Okasan Asset Management joint venture, 49% from Okasan Securities and SBI Group 51%, and we need to make it bigger, little bit bigger for Okasan Securities as well. And as to the total net assets the JPY 2,638.5 billion, our number is greater than, for example, that NISA Asset Management, but you do not have such image that our net asset -- total net asset is greater than NISA asset, but actually, we are greater than their number. SBI Asset Management, JPY 3.6 trillion, AUM and SBI Bond Investment Management, and SBI regional revitalization asset management, those 2 entities combined together, JPY 2.1 trillion or so. That's the AUM. This is the amount consigned by the regional financial institutions. And 34% of the amount that comes from the entities with which we have alliances. So the remainder, 66% from banks without any such alliances, exceeding JPY 1 trillion of SBI Asset Management, the AUM compared to the index fund and active fund, dominantly index fund is the growing and collaborating with Vanguard and other entities, we could successfully increase that level. So spearheading the restructuring of securities industry and its certain expansion of customer base because of new securities initiatives. So already, there are many developments in the online security sector. For example, KDDI is now having the kabu.com. Because AU Financial Holdings made a tender offer to kabu.com. And most of the profit of the Monex Group comes from Coincheck, like 90%. Without Coincheck, there's almost no securities business. Rakuten Securities. We'll now go public finally. We are extending the time line for the public listing of the banking business. And Rakuten is not interested in going public for the banking business and now they're doing the same for the other securities. When we make extension, the IPO market is getting worse. Still they are saying that they will go public. That means that they are really financially struggling -- Mikitani-San, well, the other day, I was talking with [indiscernible] and we talked about Mikitani-San, and he is really something we discussed. So his boldness, the thoroughness, some similarities with Mr. Son and Mr. Mikitani, it's something that I will not be able to do. Because Rakuten is -- Mikitani-San decided to go into telecommunication business when top 3 in the industry are already determined. And in the case of the Son, he aimed at becoming #3 in the industry. That is more understandable because Mr. Son did not start from scratch. So the telecommunication business, more than JPY 100 billion of losses for 3 consecutive years. So when Mr. Son was faced with that ordeal, I suggested him to sell 26% of the stake that he had in SBI saying that I talked already with Goldman Sachs that way you can survive I said to Mr. Son. Back then, SBI investment portion was -- his stake, Mr. Son's stake was sold. Mr. Son apologized to me saying that I'm sorry, and he said that there is 1 condition. Please dine with me once a month so that I can consult with you about business. And I said, of course, and with that kind of conversation, this alliance of capital came to its end with Mr. Son. So he had to sell something at the bad timing, something that he had been developing where the number of accounts increased the securities business. But when it comes to profit level, it's coming down for the banking and for securities. It's about Rakuten. And this -- the revision of point program it was their strength. It was the strength of Mikitani-san but now it's the weakest point because its expense, which continue to increase. The second tier, mid-tier security sectors are also witnessing some developments. For example, the Marusan securities, Marusan trade or Ace Securities absorbed by Tokai Tokyo Financial Holdings, there are things happening in the market. And when we decided to make online commission 0 with when we make commission 0, there will be more developments in the market. But our objective is to seek, pursue customer-centric principles investors and the beneficiaries of financial products, we'd like to offer the best benefits to those stakeholders. That's our basic thinking. So that's why we have been seeking very low level of fees. It's not something that the other players can imitate because the customer base is so different. Change in basis of SBI Securities, share of individual stock trading value, SBI share 44.1% and share of individual margin trading value, SBI has 45.6% share. This is among all the other players, both the Internet and brick and mortar. And of course, the customer-centric principle drives shakeouts in the industry. That is the other principal -- absolute principle of capitalism. And that is for the customers, for the sake of customers. So when we think about customers, that's the end result that you come to if the benefits are damaged, then you will lose customers. And that is reflected in transfers of SBI Securities. So the index starting at 1.0 in January 2021, it is 42.1 that is the trend of in transfers and 90% of those in transfers come from Rakuten Securities. So the penalty payment exists for the transfer, and that penalty payment is shouldered by SBI Securities. That's why we have more inflows of customers. Already -- and this is a comparison in the securities business, Monex Group and others are listed here. Monex Group, more than 90% of the profit comes from Coincheck and very high volatility. So there is a possibility of their profit level go down significantly. Matsui Securities, their commission fee is very high, and that's how they maintain the profit level? Rakuten. Ordinary income, JPY 62.1 billion SBI Securities and JPY 30.9 billion is Rakuten Securities, and net income is JPY 7.2 billion, while SBI Securities has JPY 40 billion. And second tier, mid-tier securities are also listed here. So industry shakeout and restructuring. if commissions go 0, for example, Charles Schwab, free trade follow that trend after Robinhood, and they also zeroed out their commissions. And with that, from 2021 -- in 2001 to 2019, the 5,499 companies went down to 3,435 companies. In Japan, we're still at this level right now. But I think there's fiduciary duty thoroughly being abided to in the U.S. and customer-centric and that's the protection has been done thoroughly, and that's why we are here. It's not like Japan, we're investment trusts, you buy it today and sell it tomorrow just because it appreciated somewhat that doesn't apply in the U.S. That's not accepted. In the case of Japan when Morrison was the Head of FSA, he was talking about the importance of fiduciary duty. And I think conditions have improved, but we still have lots to do. We do have the Securities Association. But even at Nomura Securities or local securities companies, they only have 1 single vote each. At the JSDA the commissions are the same. The products are pretty much the same. If like the past when we had the [indiscernible] method -- so that's a negative from a national citizens economy point of view, but that has been the practice for a long period of time. That's why the order of industry has been maintained. But what broke through had was the financial big bang -- the financial big bang, meaning the deregulation of commission under the administration of Mr. Hashimoto back then. That changed things in a large way. But still, we are here. For example, the TSE, PTS their interest -- they are protecting their interests. So they have been inhibiting the growth of the PTS market. They have a really boring systems. Changing all of this would be a positive for the benefit of the citizens in the nation. And I think 1 step to move towards that direction is to 0 commissions. So for personal financial assets, bringing down the ratio to 50% to 30% in cash and deposits is a sound securities company increases in number and start to say, decent things and try to practice decent sales activities and tries to offer decent products and promote them. We will probably see a different world emerging. Of course, for that FSA, they will need to do something around the taxation method because now we have NISA and iDeCo finally, under the Suga administration or when he was the Cabinet Secretary. We still have much more to do. The taxation on pension funds, pensions need to change as well or else, personal financial assets in this country, even under 0 interest rate market, we still have a tremendous amount of deposits in cash, which is JPY 2,023 trillion. This is now for the benefit of the people. I really want to change this for the sake of Japan. At least maybe we can go down to a little bit over 30% in cash and deposits like the Europe region. So is, we were pioneers in this space, and we have been making tremendous efforts. When you look at new customers, we have 77.6% of new customers and within that, 72.6% are investment beginners. So for beginners we wanted them to subscribe to NISA and we wanted them to accumulate their assets. So this taxation system for NISA needs to be perpetual. So for junior NISA, it accounts for 30% of total number of accounts. For iDeCo, this also -- we may administer these completely free of charge in 27 leading other players. Therefore, for individual defined contribution plans, a cumulative number of customers is the leading leader. We are the leader in the industry. So for insurance, like I mentioned earlier, our scale is still small. We have been able to grow steadily. But the M&As that we've been doing are small in scale in the past strategy-wise, we need to change it somewhat and look at the ASEAN markets, too, meaning the international markets to think about the future. Number 6, consolidated nonbank businesses and establishing nonbank holdings in the future. So for nonbanks, we want to basically gather them together. And strive to generate synergies between them and the nonbanks and banks and the nonbanks and securities business and insurance business. We want to generate synergies there as well. And we want to promote this strenuously so that -- for ROE, other financial industry average is 8.5% and banking average is 4.1%. But we won't see that from an ROE perspective. That's the kind of entity we would like to establish. Number 7, International Financial Center initiative. Well, Osaka, in a full-fledged way, they are trying to start moving again. They are trying to turn it into a special strategic zone and also disseminate various pieces of information. And not only it's Osaka, but including Hyogo and Kobe as well, that's what I've been saying from before. And the governor is now a member of the ASEAN party. So it's easier to promote these efforts. There's benefits there. For example, Kobe has been a port city following Yokohama, and they are close to mountains as well as the sea and they have a high-end neighborhood actually, a lot of them. From [indiscernible] to Hankyu Rokko, along the Hankyu line. I think it is a beautiful neighborhood along that corridor. And also when it comes to English education, there are many international schools for non-Japanese people. Also, it's close to Kyoto Inara and inbound traveling will probably resume again and kicks the Kansai Airport will probably be become revitalized. So that kind of regional benefit should be leveraged under this international financial city initiative, which we would like to support. We already at SBI as a group, has established in Osaka HQ and fintech center establishment, we're aiming for this and we would like to attract various entities from abroad. Also, what was on hold regarding Dojima, for this as well, we would like to bring this to a resolution. Fortunately, for the digital exchange, we have been authorized as a PTS. And now towards its opening, preparations are being made. As for there has been activity there as well. The Osaka fintech center-related initiatives. The special strategic zone needs to offer various types of tax incentives, which we've been speaking about. And for SBI API mart, this is also close to realization. So various API offers will be putting a lot of their APIs on the platform and corporates as well as other people who would like to search the APIs will come on to the platform as well. And through the API mart, local financial institutions and municipalities will be able to distribute information as well. That's the kind of API mart we would like to establish in the Osaka fintech center. System wise, this is close to fruition. Furthermore, SBI Regional Revitalization Partners, Concordia as well as Shinsei Bank, and Yamaguchi Financial has been participating and a mechanism that will contribute is being established. And there has been quite a lot of delay due to Omicron, but in many aspects, it has started to move again. For example, taxpaying companies may be able to receive a tax deduction of up to 90% of the donated amount. So it's the corporate version of hometown tax. And together with a company called RCG in Osaka, we will engage in a partnership to promote this business. So this company is also one of our investees. And this talks about branding that I talked about before. With Dentsu is playing a central role in this process, and we'll use maximize metaverse to think about what kind of branding we should have in digital space. So steady progress is being made here. So #9, SBI Group developed various businesses and environment, energy and other areas that can support Japan's national strategy in cooperation with investing and partner companies that possess cutting-edge technologies and resources. As much as possible for start-ups or companies that have just been listed, I want Presidents and Heads of those companies to participate and become Heads of our business as well. And I want their passion and wisdom that can be leveraged. And that's the kind of mechanism I would like to create. For example, provisional revitalization services the hometown tax Mr. Fukutome, I've been asking and calling upon him to serve as President, in this way young and wonderful people are the people we would like to have participate in our group. If the talent is developed internally, we won't be able to catch up because businesses continue to expand, and we just don't have enough time. So in this way, we will continue to promote our businesses under this kind of framework. For example, the company changed, it's listed on the TSE prime market, and we have an ownership of 20%. They carry products and services of more than 1,600 local governments nationwide, and they operate Furusato Choice and owns Trust Bank of a subsidiary, which operates Furusato Choice. They know other regional areas well. So if they become a part of SBI Regional Revitalization Services, we believe that would be effective. I asked him to make decisions on his own discretion and to serve as President on my behalf. For the next company, Remix Point, it's a listed company in TSE standard, and we interest 20%. There are various energy businesses such as power development, we will be jointly developing renewable energy sources. Genki Oda, I think, is a wonderful person. He's very confident. So I want to be able to identify these types of young people that are confident to delegate the management of these entities so that we can contribute to the development of our nation as well as the development of the world. Now I'm 71 years old, and I'm an old manager. So I think delegating the process to the younger generation is the very mechanism we should adopt. So I would like to do more of these kinds of things in the future. So this is Michi-no-Eki roadside station project. This is also another project under SBI Regional Revitalization Services. So at the Roadside stations, the electric vehicle charging infrastructure is not just being installed, but we would like to also be able to turn roadside station as a place where disasters can be prevented. And we own 53% of Nippon Charge Infra. We would like through this entity, increase the number of quick chargers that are installed and also have disaster prevention functions as well and equip them at Roadside stations and also contribute to the promotion and penetration of electric vehicles through this entity or ERI Eco Research Institute. We also have an investment in this entity as well. In fact, they have a wonderful technology called NECRES, a new energy creation system. From municipal waste, they do pyrolysis by mixing it together with plastic, and they are able to produce biomass fuel out of it. That's the kind of technology they have. So they're able to recycle -- and to local governments, compared to the prices in the past, the cost will go down substantially for them. And the -- it's not the municipalities, but even general corporations can also adopt this kind of technology as well, especially in the paper industry, where there's a lot of municipal waste. We hope they adopt this process more and more. So BALNIBARBI, this is also a listed company. And Shimane Prefecture, with local companies there and Shimane Bank and BALNIBARBI and ourselves, we are working together to develop a hotel -- this is actually in a hole, but this will be a room. This is the image of the facility. I think this will become really popular -- and this is the kind of restaurant that is expected to be developed. There was nothing there in the past, but actually it is a very scenic place. It is in Shimane Prefecture, so we'd like to revitalize that place so that it can become a destination. They have Izumo Taisha. They have the castle. They didn't have a good hotel though in the past. So in this way, we would like to change Shimane. It's not just the financial institutions that should extend their support. It won't change just with financial support. So it should be flushed down in this way. Also, local currencies. In 27 regions right now, it has been implemented with Chikuho Bank and Kyushu Power Company and ourselves, we have a 3-party JV employees and the system is from our 3 it's based off the Corda system. We would like to do this nationwide in Japan. And we would like -- I would like to use this at the expo because it's a system for local currencies. #10. It's a platform business that I'd like to talk to especially in Web 3.0, including the metaverse contribute to the governance and infrastructure establishment of the platform business in the ST world. I thought that a voluntary association needs to be made at an early stage because we don't want anything like the initial coin offering to happen because in the securities industry and bank industry, STs were going to be a treasure, but we do not want to destroy it. That's why we created the Japan STO Association, and it was accredited as a self-regulatory organization by the FSA. There are 6 companies right now, including supporting members and now we have been able to establish this distinguished association. And also, we have ST Research Consortium, which is organized by Mitsubishi UFJ Trust and Banking Corporation. We are a member of this and we are not exclusive. If there is good technology available, we could use Progmat or with Nomura and ourselves we could use that system, too. So we're not trying to be exclusive. What we want to achieve is for investors, we want to be able to provide new and safe products. And we want to create both an issuance market as well as the distribution market. And as 1 single large financial instrument, we want to nurture STO. The same thing applies to Metaverse, I guess, there's a lot of issues that's not even comparable to the issues that STO is facing. So we need sound development and recommendations policy-wise needs to be made and information needs to be disseminated. Accounting treatment methodologies as well as legal frameworks needs to be put in place and we need an entity that has to say around these affairs. So that was on my mind, and that's why the financial research institution at SBI was established as well as the Japan digital space economic federation was made. I don't really like the word space, but space was translated into Japanese unfortunately, although I did not like the name in Japanese, in particular. But I decided not to be adamant about that kind of issue, especially when I'm in this kind of industry. But what I was particular about was, is it a positive for the national economy as well as investors as well as for consumers. This is an area that I cannot compromise. So we will continue to make these things. So Financial Economic Research Institute has been holding seminars after another. So they are moving ahead. And this is ST infrastructure, this is equity, fixed income. We've done this. That's number one. We have sold them, distributed them. And what's most potential is public offering of asset or real estate backed ST. So for example, at Rokko Island, we have a data center or distribution warehouse, I think those are quite suitable for such product. And real estate STO can be done on a small lot. So whatever that wasn't in the market would now be available to market. So compared to J-REIT, like the properties we invested are much better defined. It's clear to understand. And we don't want to just focus on primary issuance market, but we need to create a distribution secondary market as well. So for issuance market, I decided not to be too persistent with the system. I decided we can use Nomura or Progmat, whatever is better or maybe whatever the issuer decides to choose. So we can just promote that and continue with the issuance. And of course, Securitize in the United States is a shareholder as well, maybe if they're built to build something better, we can implement that as well. I think that's a possibility. As for distribution market, we have ODX, Osaka Digital Exchange, we established that. And we are now moving with custody. We have aligned with the U.K. company to establish a joint venture. It's going to be a global custody. And of course, it will be based in Japan and we will have the majority intake leadership, but that's what we want to establish. And when we do that, when we -- all of these are in place, we will be able to move to the next stage. In overseas, whatever is ready we have made investments. We are collaborating and coordinating, and ultimately, we will distribute all sorts of digital assets, and we will form one of the world's largest global corridors. So in Germany, in Stuttgart, there's a #1 stock exchange called Boerse Stuttgart Group, which we have made an investment. And is digital -- first digital asset bank called Sygnum Bank AG, which we invested in. And we have SBI Digital Market. We are developing in Thailand there's Siam's subsidiary called SCB10X. We are investing there as well. Excuse me, Siam is investing in it. And also, in May this year, there's an approval from the Switzerland SIX for a Singapore-based Digital Exchange. So we are making a steady step. So ODX, we have been able to obtain approval for PTS. So Asia's Swiss SIX we will develop it together in 2022, and we will officially launch and we have acquired in-principle approval of CMS license by Singapore MAS. So we will have this aligned with ODX Osaka to establish this large global corridors. In Africa, this market called Africa, Africa is 1 continent, I have not visited even though I have visited more than 100 countries around the world, especially Central Africa, I have been to Tunisia, Morocco, which is called MENA. I have visited there, but I have never been to Central Africa. I myself don't feel like going to Africa too much. I don't want to catch infectious disease. So I don't want to go. I'm already 71 years old. So I'm asking younger colleagues to see if they want to develop Africa. And there's people that raised their hands, so they will go and develop African market. So why African market? Why is it important, especially from the point of view from the financial services? Because in Africa, more than any other currencies cryptocurrencies like Bitcoin has much more reliability. And -- it's a very simple fact. It has actually distributed really quite well. And it's just 1 year until January, if you look at the number of transactions and use of cryptocurrencies, including Bitcoin, searched by 15 fold in Africa for a number of transactions and 25 for the number of users. And we started off with the sales of used cars, and we were looking into doing construction machinery, and we are discussing various different opportunities. And I said that, ultimately, Ripple's ODL we want to utilize. It's on-demand liquidity. We want to be able to utilize that. And like I said earlier, Blockchain it is to be considered one of the greatest intellectual property by 2050. That's how much of a use blockchain would be. And we have a company which we have established called SBI Traceability. So it is able to demonstrate authenticity through blockchain. So you cannot alter it. So this rise is Japan made. You can explicitly say that Sake is authentically Japanese. Why is it that wine has been able to market around the world with such a premium price. And I think it's very much to the power of U.K. and France, they have worked together to raise the value. And I think it's the proof of authenticity that it wasn't fake. I think they have been able to build that element of it, and they have made it possible to demonstrate the authenticity. And they have done tasting. And if it didn't taste right, [indiscernible] where you can say no to it. However, we are able to now do this with technology. This is a traceability mechanism we have developed. So there's a company, our label called BORN by Katokichibee Shoten, which has been doing this business for 162 years. And I had drank actual BORN label Sake the other day, and it was extremely delicious. And they have implemented this mechanism for the first time in the world. So they are now able to demonstrate authenticity. And they can do that when they export this. I think Japanese Sake manufacturers need to do that. NFT marketplace now. As for NFT, I said you need to develop the platform first, and that's what we have been trying to do. And if there's a good company, we acquired it. And that has become SBINFT today. And SBI Art portfolio, it's an auction house, which we own as well. They -- I said, you need to handle digital art right away, and that's what they have been doing. So in a short period of time, we have been able to proceed forward. ESports, we are implementing new approaches 1 after another. So for example, this is the world of Metaverse. So this is the SBI Group's mechanism for improving corporate value. From the start of the company, I have been thinking about -- I have been declaring about corporate value. So I start off with customer value. Goods and services that would delight the customers. This is the intrinsic value of the company. So we need to produce that. And if we can produce that, then we can see increase in revenue and profit. And if revenue and profit increases, we will be able to hire right talent by increasing the base salary or compensation or offer stock options, we'll be able to recruit talent, good talent. So people are the source of creativity and the main source of competitiveness and differentiation. This is something I have been calling out for from the beginning. The concept of the so-called corporate value is often reflected as the present value of cash values, which will be eventually received by the shareholders and creditors in the future. That's what the business school tell you, but I've been saying that, that's not the real corporate value. It's the customer value, it's a shareholder value and the human resources value, it's the virtuous cycle that really develops the intrinsic value of the company. So this is very fundamental to us. So in order to improve the customer value, we need to thoroughly adhere to the customer-centric principle. So for specifically the services with even lower fees or -- so if they have a long menu of services, it's easy to compare. The cost of the customers is clear and transparent, it's safe and reliable services you need to offer all of these. And that's what customer-centric is about. As a result, including Shinsei, we now have 42 million customers, even without Shinsei, we have 33.5 million customers. With this customer base, we will be approaching utilizing big data and customer value can be reflected in this point system as well. If you try to retain the customers just to yourself, it will not be beneficial to the customers. So that's why we collaborate with T Point, V point, d-POINT even -- I've been saying even Rakuten Point, I will welcome it. If customers think that's the best for them, they should be able to use it. That is why -- more than the Rakuten ecosystem, I say it's the multipoint ecosystem. That's important. And with regards to shareholder value, we need to make our return on equity ROE more than 10%. I've been saying that for a long time. And in FY '21, it's 49.4%. And even with -- excluding Shinsei Bank, it's 20.8%. If you look at the banking industry, it's 4.1% on average, securities commodity deliveries is 7.9%. Insurance is 7.1%. And dividend, we will pay out JPY 150 per share on a full year basis. We paid out JPY 30 for interim so the year-end will be JPY 120. Officially, this is a guidance. It will be officially approved later. But of course, this has already been approved by the board. So I think you can consider to be this as an official announcement. And basic policy on shareholder returns from FY 2022 after implementing segment change because we're a company, if we paid everything out in dividends, we won't have any funds to run the business for the future. So we have a level of retained earnings. And of course, we have the outlook for the foreseeable future. So we will take all of these things into consideration to decide on the annual dividend. But with this new financial services, so with securities and banking and insurance business, there's some visibility to it. So that will be the basis for us to decide on the dividend. So as for the total return on the shareholders' level, so -- for the time being, the total payout amount of the dividends plus share buybacks will be determined based on 30% of the profit before income tax is regularly generated by the Financial Services business after the segment change. Again, the segmentation has just been approved by the board today. So there's much more of what we need to refine, but I believe that this is the direction of the decision. So shareholders' benefit, as you can see here, would be related to the shareholder value, one thing I struggle with is the high percentage of foreign ownership. It's 48.6% today. Japanese institutional investor is 27.6%. People who really understand the most of what I've been saying is foreign institutional investors. They understand me the best. And of course, for some reason or not there's someone who sold off all 8% stake. I don't thought that maybe they were going to exit from the Japanese market, they basically sold everything off that they owned or maybe there were others. I forgot who. [ Cyber ] was it -- they sold it off. So maybe the stance against Japan or maybe -- I mean, there's such a large loss, they needed to exit this market, I don't know of the reason. But even today, the share prices went up. So they sold them. So it seems as though they have sold off, so I think share prices will begin to calm down. And I think it's great that we have foreign ownership like this. That's fine with me. But the fact that their percentage is too high, for financial -- we always feel that maybe FSA will say something about our business because we run a financial services business. There's a concern for that, when the ownership is too high. So now that Omicron has come down and we have been suspending for the last 2 years information meeting to the domestic institutional investors, and I want to resume that in Tokyo, Osaka, Nagoya. I'm planning to resume that information meeting for the Japanese investors. And also the retail investors, the percentage is only 19.2%. It's a slight decrease over the years and instead foreign institutional investors are buying. So shareholder value can be increased with proactive disclosure information, high dividend attractive shareholder benefits, especially for retail investors, that's very attractive. And of course, information meeting and shareholders meeting, we want to contact -- have much contact as possible with the retail investors. I think we need to create opportunities to speak to them. I think that's fundamental. And as for the value of human resources, I announced this the other day, but we will be raising the pay table covering starting salary for new graduates. And they will now receive JPY 292,000 from April 2022. That's 16.8% increase in pay. And if you look at the pay table of year 3 employees, they have -- will get a raise of 16.7%. And from June, we will implement a compensation system that is performance linked for all the management. And also in every business, if there is talent pool that's missing. So for example, data analysts, someone with sophisticated IT technology there's a market price to it. So we will follow that. Also for example, we do a lot of mid-career hiring enormous number of people are mid careers. These people are in principle -- we referenced the salary that they got paid in the previous position. It's -- so up until now, it's been basically the same level as what they've been used to get paid. And I think that could be carried on because it's only when they start working for us, we'll be able to really identify their actual capabilities. So they will be assessed after that. I don't think a lot of people get a lower pay, but we will fully utilize SBI Graduate School to provide training and education for the talents. And M&A itself it's an opportunity to acquire outstanding talents. And like I said, I say I will delegate this business entity to you. It's your responsibility. So that business entity will pay the compensation that is why you could get a very high pay or compensation. So in that way, I want to increasingly distribute. I don't want to -- I'm monitoring a 3% range. I mean what would -- would that change? Because right now, the consumer prices are rising at a higher rate than that. And I think that Russian issue when that is over, I'd say pay a special salary for in link with the price inflation. For people who are in Russia who have been sent from Russia so that they will not be in a disadvantageous position. I also said eSports. So this representative we are paying him well and also the man who represents Africa business. He's -- this is only his ninth year in his 30s. He is now President and because he made breakeven right away, I decided to raise his compensation quite significantly. So now it's 6:02 so I want to end my presentation. Here's your appendix and you will have segment information. You see a lot of information attached to it. So I hope you will look at your own time. So that is all. Thank you very much for your attention. There are other attendees as well. I'm ready to answer your questions. [Statements in English on this transcript were spoken by an interpreter present on the live call.]