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

Thank you very much for attending our financial results brief session despite your busy schedules today. Without further ado, I would like to go into the explanation. FY 2022 consolidated performance, mostly up to the third quarter, what I have been explaining to you applies to the full year. What I mean by this is that the profit deteriorating is JPY 30.7 billion Vietnam TPBank we had to do a write-off or [ JPY 15.7 billion ]. Crypto asset-related business was a negative result came out, and that has impacted this full year. Regarding this full year, what I definitely wanted to do, there are 2 things. The first is to have the revenue exceed JPY 1 trillion. But unfortunately, it was JPY 998,559. We experienced a 30% plus growth, but it did not reach JPY 1 trillion. In terms of the profit before income tax expenses, this is the only part we look. With this, we have exceeded JPY 100 billion. Therefore, what we have forecasted and wanted to achieve, we have come close to those. Especially, if you look at this, this is the comparison of consolidated profit before income tax with major securities companies. And as I have mentioned right now, it's JPY 100.7 billion. Nomura Holdings is JPY 149 billion profit before income tax. And Daiwa is at JPY 96.766 billion. SMBC Nikko had various things, it's a large negative. Mitsubishi UFJ is JPY 82.9 billion. Mizuho was a negative result. This is the securities companies group. There is -- Nomura has the trust bank or Daiwa has the bank and their group. Therefore, this is the apple-to-apple comparison. So this was the situation. So looking at these situations, I believe that we are doing quite well. And also in terms of the revenues, this is looking at the 10-year time frame. You can see that we have been continuing to increase. FY '20 -- '21, '22, '23, we have been largely increasing the revenue. And my hope is to exceed JPY 1 trillion, and we were slightly short to that. In terms of the profit side, we have many volatile industries, especially in the investment business. Therefore, it's quite volatile. So JPY 30 billion to JPY 40 billion to JPY 60 billion to JPY 70 billion, and we have reached the level of exceeding JPY 100 billion. So FY 2022, SBI's Shinsei Bank and former Shinsei Banks, the goodwill, a lot of that was included. Therefore, if we exceed that, it's JPY 217.1 billion. So therefore, this time it's JPY 100.7 billion. And looking at this by segment, the financial service businesses, for sure, it's growing. Financial Services Business revenue is a plus 78.2% year-on-year. And profit before income tax expense is plus 42%. There was the negative goodwill, which is JPY 195.6 million. But if we exclude the Shinsei Bank one, it is a 42% increase. And this part for us is the base area in terms of businesses. Asset Management business, it is starting to become the base business area, and we would like to have it to become the base business in the full scale. Investment Business and Crypto Asset Business, it goes up and down. When they're good, they go up. When they're not doing well, they go down. If you look at the SoftBank's financial results on the group side, I'm sure you understand what I'm talking about. Crypto-asset Business -- the market currently in terms of the legal system and system is not well established, especially in the United States. Therefore, it will still take time for the market to mature. Nonfinancial Businesses, there's Bio, Health care and Web3 businesses are included. This is the revenue -- quarterly revenue by segment. And looking at the revenue, Financial Service Businesses, for sure, is increasing the revenue. Asset Management Business is surely growing as well. Investment Business, when they're doing well, they're doing well; when they're not doing so well, not doing so well. That is the current situation. Crypto-asset Business and Nonfinancial Business is as shown. This is the quarterly profit before income tax expense by segment and IFRS basis. As you know, we are financial -- within the financial institutions, we were the first ones that have implemented the IFRS. Currently, we are under an extremely difficult economic situation. If you implement IFRS, the Japanese insurance, life insurance and megabank or the bank financial results, I wonder what would have happened. So in that sense, it does not show up on the service, but the unrealized loss, there are quite many of them. One megabank, I looked at their result numbers, and I was surprised. One year ago, it was JPY 2.8 trillion unrealized gain. It's only down to -- it's now down to only JPY 800 billion, meaning that they have lost JPY 2 trillion. And not just that bank, but in other companies, such as the life insurance and insurance companies, they are all having this unsurfaced loss. The IFRS, it will surface. But in Japan, they're quite device because it's not surfaced this time. When we face the interest rates rising, what is going to happen? Really, Japan, I won't say they're trying to purposely hide it. If the people who know about it, look at it, they will know. But the very deep down parts did not surface. Therefore, if the investors buy and sell just looking at the surface, it will become quite of a deal. So I, myself, from my 50 years experience in the financial industry, this is the -- I've never seen a time that is as difficult it is right now. That -- this is what we are facing. And in terms of the dividend, basically, the Financial Service Business, as you have seen before, it is steadily growing. Therefore, we decide on the dividends based on this. So the full year dividend is JPY 150, which is the same amount as fiscal year 2022. Total payout is 113.5%. So total shareholder return is JPY 40.8 billion. And we will continue on the shareholder benefits. So I would like to simply explain about the business segments. Financial Services Business. As I mentioned before, revenue year-to-year is a plus 78.2%. Profit before income tax expense, there was a onetime special negative goodwill occurring. And if we exclude the JPY 150.6 billion, it is a 42% increase. Financial Service Business, the securities business is included in here. And how did the securities business perform? The operating revenue, which is equivalent to revenue is the record high. Net operating revenue record high and operating income was a record high as well. Ordinary income was minus 1.8% year-on-year. Profit attributable to owners of the company was at plus 3.6%. This is the J-GAAP results. And regarding the revenue or net sales structure is as so. So there is a trading revenues, and we are increasing the financial revenues. And what happens to the other commissions, the online trade stock -- trading transactions? Within the total, this comprises 11.2%. In the third quarter, it was 11.7%. Therefore, it went down further. So -- and that is why we are going into realizing the new securities until we are trying to make this to zero. This is the like-for-like comparison of a 20 main financial companies. We are just looking at the securities business. What I have showed you before was at the holding level, the overall holding level. If we look at the securities level, Nomura Securities, we have exceeded them in ordinary profit as well as in operating profit. Mitsubishi, Mizuho, Rakuten, Matsui, GMO, Monex and Daiwa Securities. That is the order. I don't know why, however, until now the Japanese -- even now the Japanese media will say the 5 major securities companies. Who are the major companies? And they lined it up in that way? That's questionable. Because they're doing that, they're behind their time. All of them are in a time where everything is changing into digitalization. And there's the media they're saying these are the 5 major companies. I can't believe such medias. If you do such a thing, people make mistakes. Like I have mentioned before, if everything changed into IFRS or [ IUSS ] standard, then you will see everything clearly. And that type of accounting standard, the companies that are using such standards, and there are companies that are using standard that will hide, that you cannot see that clearly. This is the same thing. The times of physical real things has ended. And if you continue to hide such things, I will not say or conceal those things. I will not go that far. However, you will not be able to see the true situation, and investors will experience a loss. So there's quite of a great responsibility on the media side. The numbers that were announced today. Well we -- I will be announcing from now, which is related to the TOB-related price. It's a JPY 3,000, [ Nikkei ] gives us JPY 3,000 for TOB. We -- they said JPY 3,000 and the price that we said is JPY 2,800, everyone went to buy for it, but TSE stopped the trading. But if the trade was not stopped, what kind of loss would have been caused to the investors? Coming out of it early or late -- coming out with the news earlier or late, that is not the work of the media. To actually have an accurate reporting is their job. And this type of insider information, well, closely related to such insider formation, if they just report it without knowing the whole story, I think as a media, there are rock bottom. If they would do such a thing, nobody is going to support them. Media, as much as possible, needs to be accurate as much as possible. Whether they report that early or late, that's irrelevant. After the Board of Directors meeting, then we can disclose that information. And that information goes to TSE, is being examined and screened and then we can finally officially release that information. The Kanto Financial Bureau or the FSA, it has to be taken up by them depending on the case. And such a sensitive issue, and the PTS, people who bought through PTS, there were several people close to the price of JPY 3,000. And these people, of course, are going to complain. So I will say, please launch your complaint to Nikkei. Well, as the media is a true mission to be conducted, I am going to provide them warning signs, writing an untrue article or just an article based on their estimations. If they write it as their own opinion, that's fine, saying that SBI's number of accounts is a 12.8% CAGR and from 20 -- the 2009 March to 2023 March, the CAGR is increasing. So we're in a position that is not in a position to compare with others. And this is the group's share of individual stock trading value, which is 46% and 47.2%. It is exceeding as well. Why does it increase? It's quite of a simple reason. We have been consistent in customer-centered policy. And because we do it for the customers and investors, we experience increasing. We have the lowest commission. We provide them the services. The liquidity markets operating revenue, this has increased to a record high. Unfortunately, a Silicon Valley Bank -- starting Silicon Valley Bank in the United States, the banks are collapsing and then the foreign exchange moves, interest rate moves. Globally, we are seeing such movement and there's going to be high volatility. And the banks sold short and then they just reversed that for one time. But the essential issue has not changed. It has just worsened. Meaning that in that short of a time increase that much of interest rate, saying the economy is strong, and the commercial practices are strong. Of course, it is because during the COVID pandemic, they had that much of a subsidy from the government, and that has increased the savings in percentage, and that was supporting the commercial activities. But then the war has started, the energy prices hiking. So we are in the extremely difficult times. And in this situation, how are we going to generate profit as you can see by looking at this? Because there is a factor that, because there's vulnerability, we are making profits. That is why we have to diversify the customers and products. In this times that we have a heightening of uncertainties, what we need to do is diversify. FX-related business, both overwhelmingly strong. And in overseas, this is a diversity. We need to diversify this because if Japan is not doing well, go overseas in Thailand FY 2023. Their profit before income tax expenses has [ JPY 303 million ] and Royal Securities in Cambodia and the year ending December 31, 2022, their profit was JPY 100 million. They're going to continue to grow. Our bank business, SBI Shinsei Bank. Gross operating profit plus 10.4%, ordinary business profit plus 26.5%, profit before income tax expenses plus 82%, profit attributable to owners of the company 110.3%. This is based on J-GAAP. With this, in IFRS, how much were we able to gain is JPY 54.6 billion in terms of profit before income tax expenses. A number of retail accounts. Well, we became the market's largest shareholder and has made it a subsidiary company of ours. Shinsei Bank continued to grow. And the deposits are getting close to JPY 10 trillion. And also the number of accounts is close to 3.16 billion. It's finally have turned around. For a long time, the deposit balance has now turned around largely. Of course, Japan is going to experience an increase in interest rate. Therefore, at this time, increasing the deposit has quite a meaning for a bank business, SBI Shinsei Bank. For '23 March, June -- [ March ] 29, we were able to go to market at a cheap price. We were able to do the offering and then after share prices obviously went up substantially. I also think this is an issue, though. Why at that phase? Well, Rakuten Bank probably feels the same. Why did they have to go to market at cheap price? The issuers profit was neglected, and they were being protective of themselves. Was that the case? When it comes to underwriters, I think they need to take on more risk. No, they might say it doesn't fit overseas. In that case, they should just try to do something domestically in Japan. Why do the Japanese underwriters have to depend so much on the overseas international markets? Of course, the international markets will try to bring the prices down by huddling together. So direct listings should happen. If it's a large scale, that should happen more and more. Without going through brokers, companies should directly list on the market. Several times, the FSA was saying that the offering price is a little too low. The gap between the offering price and the stock price then after was too substantial. And experts were also saying so. So why is not this issue being rectified? So performance of SBI Sumishin Net Bank, JPY 29,390 million was the increase in -- the ordinary profit, which increased by 26.3%. Our investment profit on a pickup basis was JPY 4.8 billion. So why is it declining? Because our ownership was used to be 50%, but it went down. I think it's now at 36.2%. Therefore, the profit pickup went down as well. But we are also able to get gains on sales of shares. So for SBI Sumishin Net Bank since its establishment, it has continued to increase the balance of deposits as well as the number of accounts. So now deposits are around JPY 8 trillion in balance. 6.15 million accounts are supporting the performance. SBI SAVINGS BANK in South Korea is next. Our performance used to be good, but this time around, the profit before income and tax expenses went down by 29.9% on an IFRS basis. Like the U.S., rates went up. And obviously, when rates go up, bank earnings does not go up immediately, it goes down once. I'm sure that, however, we will see a recovery, and they have stopped raising rates. So in the second half of the year, performance improvement is expected. So that's what I've been hearing from my people. Also in the case of South Korea, we need to watch out for, people believe in the property market, more than Japan. And we have a tendency where they start to pursue business opportunities in property. So I said no. So in this bank's case, the exposure is minimal. Therefore, that has turned out to be a success. So they are starting to learn what I said is right now. So for real estate in South Korea, there is an aspect where it's driving the economy. However, once things start to deteriorate, it becomes the most scariest. That's why I was saying that we should have a broad base of customers collecting deposits and lending to them in a steady way. And I've been saying that, that's the safest way to do business all along. Since we acquired the business in 2013, I have continued to say so, and that's how business turned out to be. So when we acquired the business, delinquency rates used to be 51.6% for all loans. However, it was around 1-point-something percent. Now it's a little bit up to 3.36%. But we have been able to settle at that level, and we're expecting a recovery from the second half. So I think we're fine. Other foreign banks. For TPBank in Vietnam, performance continued to climb steadily. But [indiscernible], the market has continued to deteriorate. Therefore, valuation losses were recognized at JPY 30.7 billion, like I mentioned earlier. So this was a damage for us regarding its performance. However, in the backdrop, the number of shares we had was 19.9% ownership. If we had 20% on an equity accounted basis, we wouldn't have to have done the write-offs. However, because the 20% is the maximum as a system, in the same company, foreign investors' ownership is not able to exceed that level. Therefore, with these 2 conditions in place, 30% is the level we shouldn't exceed and we were already at 30%. And because there was an interested buyer, we were able to reduce it to 20%. But now we are fine. So this is Russia. So there may be concerns that the business is going to go down, but we were able to see profit for JPY 486 million for Q1 for the year ending December 2023. And for LY Hour Bank in Cambodia, which we own 70% of, JPY 169 million was the profit before tax for Q1. And for the full year, it was JPY 921 million for the year-ended December 2022. So it's growing at a good rate. So I'm really looking forward to Vietnam as well to Cambodia as well. So total assets of the banking segment in the SBI Group are shown here. It has reached around JPY 26 trillion on a pure addition basis. So when you compare this against others, Fukuoka Financial Group is at JPY 28 trillion and Concordia is at JPY 24 trillion and so forth. Looking at the insurance business, SBI Insurance Group's consolidated performance is shown here. Ordinary revenue went up by 8.8% at JPY 96,110 million. Ordinary profit was JPY 6.3 billion, up 6.5%. Profit attributable to parent of the company was JPY 1.24 billion, up by 39.1%. For dividends, we are paying out JPY 10 a share. And also, regarding the in-force contracts, it has been steadily increasing. CAGR has been 14.6% from 2016 March through March '23. For the Asset Management Business, the reason why it's growing is because the Morningstar brand has been returned to the U.S. Morningstar. We've been receiving JPY 8 billion in return. So this JPY 8 billion, we would like to use it for M&A in order to acquire a quality entity. That's what we're trying to do. And this business has grown steadily as well. And as one of the pillars of our business, we would like to nurture the Asset Management Business even more. The Morningstar brand has been taken off for this intent. For Rheos Capital Works, it has been listed. We own 48.89%. That Name is going to change the SBI Rheos going forward. We're actually -- we are discussing whether we should change the name or not. I will probably make the final discussion. So SBI Global Asset Management. This is basically the new name for former Morningstar. Underneath, we will have SBI Asset Management, Wealth Advisor and Carret. The investment business is the next slide. So this is mainly about the private equity business. These days it has been challenging. However, for the unlisted securities, we still have positive profits, although it has declined, we are still positive at JPY 18,181 million. For the listed securities, it was hit straight by market trends. So for about 40 companies are expected to list in fiscal year 2023. And for private equity, it excludes JPY 257.1 billion of both cash and commitment amount to be paid, but private equity around -- is around JPY 682.4 billion. So this is one of the greatest private equity companies in Japan already. For SBI Leasing Services, they used to be too good before in the previous fiscal year. So it's down at the bottom line. But realistically speaking, this is basically -- it's the performance. For Crypto-asset Business, FTX as well as others went bankrupt. So we were hit by losses. From our point of view, we may have needed to have scrutinized the business a little bit more in hindsight 2020, but we are leaving this business to our international people, and it was being managed by the international employees. But now when it comes to budget management and managing investments, we are scrutinizing the details more than before. That's how much -- that's how high the volatility of this business was. JPY 18.5 billion was the amount we were hit by. For the Nonfinancial Businesses, I feel that we need to change the name of these businesses because Web3 does include some financial businesses like [indiscernible] so forth. So I'm contemplating about this name. But right now, it's defined as Nonfinancial Businesses. Of course, it does include Biotechnology, Health care, Medical informatics businesses, which are, in fact, nonfinancial. But in Web3, there are, in part, some Nonfinancial Businesses. So there's various types of businesses included basically. So this is that ALA business as well as the biotech assets. For the biotech business, for March '23, milestone revenues declined. So profit before tax declined, but we are preparing for an IPO, and it has a good pipeline. For the ALA business, things are going well, but we are spending quite a lot of R&D at the same time. So that is why we're seeing these results. And for SBI ALApromo, which is mainly engaged in sales, it is also preparing for an IPO. So ALApromo is selling these products like ALA Plus Toh Down, Gold EX, basically products that contain ALA. And also deep sleep Fukai Nemuri or Hirokan Keigen, fatigue, mitigation or Mental Care. Drinks are also available that all contain ALA. One ingredient can be applied in various ways. And the consumers offices -- acknowledges its impact and is being applied for cosmetic products nowadays as well. And there are over 20,000 distributors now nationwide in Japan. So finally, we've been seeing good growth, and that is why we decided to go to the market. Furthermore, for Machi no Wa, which is also another Nonfinancial Business. This is a local currency business in neighborhood shopping areas you're able to use this. It comes with a premium e-coupons as well as also another part of the business, and we do this as a joint venture with CHIKUHO and so forth, and it has turned to the black and we expand the service to 50 regions nationwide. So going into the main topic, I touched upon this earlier, but the global economy is in a state of chaos and uncertainty is increasing even more than at the time of Lehman's crisis. That's how I feel. So under this circumstance, the SBI Group will like to focus on 3 areas on a group-wide basis in a detailed way so that we could diversify the risk and also expand our revenue sources and develop more revenue sources. In times like this, we need to thoroughly expand our customer base and diversify our customer base. This is the way we should go. In this way, we would like to diversify risks so that we can manage to overcome these challenging times. Even back in the Lehman's crisis days, we took a series of measures. And as a result, we didn't any help -- we didn't need any help, and we were able to survive, and we were able to come out strong in light of the crisis. So we need to think ahead of others and take action. Back in the Lehman's days in South Korea, we sold all of the shares before the Paribas shock of [ Kyobo ] Life Insurance. And E Trade Korea, which we made from scratch, we decided to take care and get rid of it. And moreover, there was a listed entity. SBI E Trade, we decided to buy it back. So those are the series of measures we took in order to prepare for Lehman's crisis. We would like to increase the customer base as much as possible and diversify the customer base as much as possible. In order to diversify customers, we need to diversify financial products and services as well as business fields. In this way, even if one thing doesn't work out well, we want to create a situation where the other part of our business is doing well. In difficult times like this, this is a must. So regarding diversification of customers, how are we going to do about this? When it comes to our customers, we already have 45,647,000 customers, but we would like to bring this up to 100 million as much -- as soon as possible. And one way of doing this is to promote Neo-securities initiative. This will be our weapon. In fiscal '23, first half, we would like to launch the Neo-securities initiative, and we are preparing right now. So for commissions, that investors are burdening right now, we would like to make this free and eliminate the trading fees. Since the 1999 founding of our company, when it comes to commission, when you look at the basis trends, which is brokerage commission divided by brokerage trading value, it has come down to a very low level -- to a marginal level, actually. So it's overwhelmingly low cost. And we have been thorough with our customer-centric approach. And that is the reason why we have been able to establish top position inside our industry. To reduce transaction costs for investors, we have been taking various measures. Since 2019, one after another until today, we have been announcing measures that have been realized to date. As a result of such, for us, if you look at the revenue through online trading, the domestic stock brokerage commissions from online trading, which are free of charge, now that ratio has been down to 11.2% of operating revenue; in the third quarter, which was 10.4%. So there has been a significant decline. So how are we maintaining our revenue from margin trading? The open interest credit balance and financial revenue increased significantly or rather the investment trend balance, quarterly balance was record high and investment trust fees comparing year-to-year increased 9.5%. And FX business trading revenue has become one of the pillars of revenue. Perhaps for customers, if we realize this, and I believe that we will be able to achieve 20 million soon. Now from 10 million accounts to 20 million accounts, it is not difficult to reach that level. Then what is going to be challenge for us? That is systems. Therefore, in order to address systems issue, in January, we have established joint venture with Simplex, SBI Simplex Solution. This company was established, which was incorporated on February 28. And the capital and business alliance was formed and signed in January in 2023. So by doing this, we are strengthening the system so that we can accommodate that many as 20 million accounts. When the number of customers increase, for example, the customers who opened accounts with SBI SECURITIES, they are -- many of them are actually neophytes or novice. And then they may be interested in doing some other transactions such as margin trading or IPO trading within SBI Group, for example, purchasing domestic and foreign bonds or FX and also foreign stocks and so forth. They will increase transactions within the group and exceeding the boundary of group. There is the outside and inside of the ecosystem of the group of SBI, the customers may be migrating to different entities. And then on the contrary, the customers within the ecosystem of the group may be interested into this area as well. If the commission is now 0, and then they may be interested in transcending the borders of the ecosystem. Now collaboration with SMBC Group. Now moving to the next phase. We have been doing many things. I myself believe that this mobile comprehensive financial service of SMBC Group is providing Olive. For us, this is really appreciated by us. In this, SBI SECURITIES is the main provider of online securities and with Sumitomo Mitsui Banking Corporation and Sumitomo Mitsui Card's application can be utilized in order to provide the very highly convenient securities-related services through their applications and V points can be applicable. And acquiring 2 million securities accounts in the first 5 years and in 3 years, JPY 50 billion in the amount with accumulated funds through credit card in 3 years will be achieved. And this is what we are aiming at, and we are currently discussing on the measures to be taken. So far, what kind of customers we have acquired? So far, based upon our analysis, more than 50% of customers inflow from Olive are under 20s and more than 90% of customers of inflow from Olive are neophyte investors. For us, this is what exactly what we wanted to acquire. With this alliance, through Olive and Sumitomo Mitsui Card and also Sumitomo Mitsui Bank, it is now possible to get the brokerage from them. And so to speak, Sumitomo Mitsui Bank banking brokerage customers have relatively high income and the financial asset base with rich experience in investment, also age brackets are relatively higher. And we are aiming at the further expansion of the multi-point ecosystem. Rakuten is making its own Rakuten ecosystem to encircle customers within their ecosystem. And we are counting the multi-point ecosystem, T point and V point and Ponta point and d point and so forth. We are expanding our alliance and partnership with various partners in order to carry through multipoint ecosystem. This is the multi-card strategy. Through credit card, customers are now expanding accumulation funds through credit cards. At the end of March 2023, now JPY 18.2 billion has been accumulated through this scheme. We are working towards expanding business and financial corporate clients by leveraging the diverse management of resources of the SBI Group companies. Rather so far, we have been targeting individual retail customers. But now when we decided to buy Shinsei Bank and one of the significance of buying Shinsei Bank was to expand the corporate market business and also, the financial institutions with whom we have partnered and also, furthermore, there are various measures to strengthen their partnership. And this acquisition can be one of the measures to strengthen partnership with financial institutions. That's what I said to my people. And now at last, we are embarking on the expansion of our entry into our corporate market. As I said earlier, underwriting, we are making very stretched approach so that we will avoid making the losses and making the customers who buy happy and also the issuing companies will become happier, and we needed to promote underwriting in that way. For insurance business as well, we are trying to meet the needs of corporate partners by expanding the products and services to meet those needs. Anyhow, with the diversifying customers and one of the big factors for this is to aim at gaining business with financial and corporate clients, we needed to expand and build this customer base in this segment thoroughly. All the entities in our group will come up with their products and services in order to approach and attack the corporate market clients. Now securities business. The underwriting share in IPO is 98.9%. And from January through March 2020 -- sorry, from April 2022 through March '23, there was 93 companies. And we have been able to become the lead manager for 15 companies and 98.98% underwriting share. And also, we are focusing on the underwriting business for corporate bond. And for the electric power company bonds, we are asked to lead the management of the underwriting lead manager from -- there were 15 companies as lead manager, we were engaged in the dealings between April '22 through March 2023. What is necessary in targeting the corporate market is the M&A advisory. And M&A Advisory division was established within SBI SECURITIES and supports that the one is set for the FY 2018 and 7.5x of the advisory revenue was gained for fiscal year 2022. So I believe that this has been announced today. And Tsuji Hongo with whom we have been doing a lot a corporation, M&A solution of SBI and Tsuji Hongo M&A solution, and we are going to merge together so that we'll be able to strengthen M&A for business succession. The timing of the merge is October 2023. For corporate markets, the FX market and OTC trading of currency-related derivatives, including futures and options. In this segment, we have been working with Mrs. Watanabe or retail customers. But now we would like to increase corporate customers. Corporate market. Daily transaction value is JPY 74 trillion. Therefore, this represents huge market. Furthermore, the integrated private REIT investment in the broad array of real estate. So in order to do this business, on 8th of May, we announced that SBI Private REIT Investment Corporation shall be established. And then JPY 100 billion in 3 to 5 years and JPY 500 billion in 10 years. That is the image of the fund size when I was in New York. Well, I don't think that there are many Japanese people in your business negotiation, but equity and bonds are not enough. And cash management needs to be added and also management of the property needs to be added. These sections are must in approaching customers. And then REIT or private REIT, we thought -- I thought that this will be the best approach. And therefore, we decided to enter into this segment. And we are increasing corporate and the financial customers through collaboration with the SBI Shinsei Bank Group. And there are APLUS, Lake and [indiscernible] others in -- so we have been increasing the lease and others by having the organic synergy so that we will be able to expand significantly the customer bases in the corporate finance areas. From SBI Shinsei Bank to investees or SBI SECURITIES. And then the loans on investments, 51 transactions have been already executed amounting to JPY 109.2 billion by SBI Shinsei Bank for venture debts and investments and loans to investees. We'd like to increase this. APLUS BANKIT is quite easy to use and a very good system, I believe. For example, for those who are considering the -- issuing the new application, White Label Plan can be offered and for those companies already offering apps Embedded Plan. These 2 plans are offered. And by doing so, BaaS -- various ways of BaaS will be provided. This is what we would like to do. And the insurance business continues to actively promote products development, provisional services to meet the needs of corporate partners. For example, APLUS will deal with the SBI Insurance and Life Insurance products to meet the needs of the customers and SBI Insurance will utilize the service. Custella of Sumitomo Mitsui Card to commence the automotive insurance solicitation initiatives and also SBI Insurance started providing special automobile insurance for BYD, an electric EV-car manufacturer. So there are various products and services to be deployed. And also funeral, funeral service company and pet service company and bridal-related service companies, through these companies, we are forming a partnership in order to provide our products to expand our customer base. SBI Neo Corporate Services. For corporate clients, this company provides business matching services for corporate clients. In May 2022, a so-called Value Place was established and launched. And there were over 25 diverse categories are provided in order to provide selected corporate services, and companies can have options from this or the second round of business matching in various ways. For example, Web operators and HR and also for general affairs and for salespersons and HR staff and so forth. As you can see here, this is very convenient and nearly 200 services from around 100 companies are listed here. Number five, promote cooperation with regional institutions. The track record of cooperating with regional financial institutions promoted by the SBI Group. We have been having special relationships with the regional banks, these 9 banks. But then, of course, there are differences in the amount of the capital relationship. We having had very close relationship, and we have been helping them out with providing them with abundant capital. However, moving forward, not limited to these 9 banks, but given the experience with the 9 banks, we are going to target all regional financial institutions regardless of whether a capital relationship exists or not and strengthen the business alliances because there are 100 regional banks. And if we include just credit banks, there are more. So in various areas, we can provide the services. And there are banks or institutions that thought they have to have a capital relationship, but we are saying that, that is not necessary anymore. That's what we are talking about. And even up until now without the capital relationship at SBI SECURITIES, they have relationship with 49 companies in terms of a partnership. But out of that 40 is only business alliance, no capital alliance. The red writing is just for business alliance. So if you look at only capital alliance and financial institutions, how many are they? We till now in various platforms have been providing our management resources. And the number of that is a very large number. Our Wealth Advisor is 150 companies. And out of that, 142 are without any capital alliances or the management of private investment trust for proprietary fund management of regional financial institutions, we have approximately JPY 2.1 trillion. Out of that, about JPY 1.43 trillion is coming from the institutions that do not -- we do not have a capital alliance with. So we are showing the change in the number of accounts and customer deposit assets through financial instruments intermediary services. So the regional financial institutions in this way is increasing the amount of deposit assets and also the number of accounts or MONEY PLAZA. There's a red writing, we do have the capital alliance. But the black letters, we don't. So the deposit assets is increasing steadily. Capital Alliance, SMBC Nikko Securities, we do have that. And SMBC Nikko Securities has 1/3 of SBI MONEY PLAZA. And there are dispatching people. And to 13 branches, we are having their personnels assigned. So they know about securities. They are familiar with the transactions. Those are the people that are assigned to these shops. And for the insurance and life insurance this as well, 100 companies, of which 29 are financial institutions decided to adopt SBI Insurance products. For SBI Life Insurance, regional -- 82 regional financial institutions, of which 19 are regional banks have decided to adopt or have started sales of SBI Life Insurance's Group Credit Life Insurance. SBI Life Insurance is actively involved in providing group credit to the General Incorporate Association, Zenkoku Danshin Suishin Kyokai, and we are promoting this group credit. There are 60 institutions and organizations that are members of this association. The regional financial institutions are utilizing the cloud technology at a maximum, and we are providing the economies of scale on a nationwide scale regardless of business type. The Neo Financial Services is providing the banking apps. This Neo Financial Services, the banking app itself, we are making the bank teller functions into mobile. With just this, it's like net banking. Currently, in this way, Shimane Bank, they are increasing their customer numbers by large. Up till now, they were struggling to increase the deposits. And with this app, they're able to increase their number of deposits, and they are very happy about it. Actively proposed innovative banking systems to regional financial institutions with no capital relationships. Currently, there are various challenges of conventional systems. And we -- in a nutshell, we are helping them to switch huge system costs from fixed to variable costs. And in order to do that, we have a business alliance with future architects and SBI Regional Revitalization Services. And on the cloud basis using the Amazon Cloud, well, it's called AWS, by utilizing that, the core banking system, accounting system, the next-generation banking system we have created. And for 10 years, what was not changed, we spent a lot of money. We depreciated that and that was pressuring the profitability. And the banks who have been doing that, switching it from the fixed cost to the variable cost is the way to go is what I have been saying from the beginning. And thanks to the future architect, we are being able to do that. And Fukushima Bank and Shimane Bank has decided to adopt it. And by 2030, we are aiming to have 10 regional banks to adopt this. And if we're able to do that with the -- we'll endeavor to level out the system cost burden through an annual fee model and return profits through dividends to investors. With the common ATM services, when we change to the system I have explained, we have to have SBI common ATM service. Why do they have to spend money on their own unique ATM systems? Because the bank book is different. No, I just say, why don't you make it the same? That's what you need to do. An expansion of the corporate client base through thorough promotion of the Triangle Strategy. Well, I myself with this SBI Group And with SBI Shinsei Bank Group and regional financial institutions, utilizing each one of their strengths. And we're saying to expand the management of the regional financial institutions. Well, I call it all 3 as 1 Triangle Strategy. And through that, the structured finance example is the best way to increase the corporate customer base. And with this way in various banks and regional banks are saying that they want to participate. Realizing our regional revitalization by involving diverse stakeholders, not just regional financial institutions, not just the financial institutions, but the local companies, you can actually discover the local companies through the regional bankings. But this SBI DX data base, we have the regional financial institutions utilize this. For example, in the manufacturing business and restaurants this way, and they are categorized in various genres. Therefore, in our group or the companies that we have business with, 50 companies are participating, and we are providing them with the data. And what they do is they look at this and the regional financial institutions can utilize this in various ways. And introducing that is the role that the regional financial institutions can play. We have 9 collaborating banks, restaurants operations. What can they do to make their operations smarter and more efficient? If the banks are consulted this way, they can show the database and provide advice and the strength in their consulting capabilities. If -- why don't we incorporate ChatGPT is what I am saying, but ChatGPT itself -- just looking at my cell's data generation, I'm from Hyogo prefectures, but it says that I'm from Okayama Prefecture. So there are some inaccurate statements, especially the ones related to Japan. The ones in the United States are quite accurate. My name at database -- my name is in Japanese, but the information is more accurate from the U.S. ones -- in the U.S. ones. And [ Mr. San ] is trying hard to create a new ChatGPT. However, it has to be accurate and precise. It has to be. So various types of information as something I have mentioned previously. The information has to be an accurate information. It all will be a negative. It will not be a positive factor, if it's not accurate. Therefore, our information, the accuracy level is quite high. The local company's digitalization is what we are supporting. And there is over 400 projects to business discussions reaching fruition in dozens of cases. So we have this Seikyu QUICK, expense bank and approval time. Each one of them are quite popular now from the -- because they have to do it due to the invoice system or the Electronic Books Preservation Act. So on the tablet, they'll be able to complete it, the cloud-type-based invoicing system. We have 2,100 companies that have applied. And Keihi Bank expense bank, cloud service, compatible with multiple devices, for streaming line, expense settlement and invoice payment and approval time, shown in time is also a multi-cloud basis. And by using this, various approval workflow and document retention can be all concluded on the cloud. We're not in the times of doing this on a paper, everything is switching over to digital. Therefore, the net securities are saying -- the 5 major securities companies saying such things even now, it's like what age are you living in is my impression. Strategies of realizing regional revitalization have moved to a phase where local governments and local residents are also involved in promoting our projects. Various financial know-how and expertise, various financial-related management resources is what I'm always talking about and what we're doing. But with just that, the -- our regional revitalization is difficult. So we have created company Regional Revitalization Partners, and we are receiving guidance from them and the actual execution team is SBI Regional Revitalization Partners, and we are making investments and loans to the regional businesses or the system company that I've mentioned before. We have established such companies. And from there, we have started and for example, the ERI, the -- excuse me, the ERI -- NECRES has changes the waste into energy quite efficiently. There's a government ordinance city in Hamamatsu, and we have created one plant there. And [indiscernible] people are visiting. And in the private company -- private sector company that are handling our paper products, they have implemented that. They have the pyrolysis treatment of the waste at a low temperature and pyrolysis treatment of combustible gases generated during this and their carbonized fuel is cooled and discharged at 50%, and that is fed to the power generation equipment, and that is converted into electricity. That is the key. And we have ownership of 50% of Japan charging infrastructure because everything is going to be changing into EV. Therefore, we have to install charging devices more. And our characteristics is that we want to have that installed in the roadside stations. So the number of locations, 230 of Michi-no-Eki, which is roadside stations and total of [ 249 ] units installed. So it's not just a charging, but I would like to make these roadside stations the disaster prevention locations. If there's a disaster, they can go there and they can charge electricity. So I'm hoping that this can be done. With NECRES, there's a regional revitalization with just the regional financial institutions is not sufficient. So these type of companies, all of them have to be involved, and we are conducting our initiatives in such way. This was quite a hot subject and was covered on TV. This Balnibarbi, which is listed on the Mothers Exchange, together with Shimane Bank and SBI Holdings. The local core company is more attractive. They have teamed up together to create this hotel. From Izumo Shrine, if we have the people actually visit this area from there, create that flow, this is going to be quite a good tourist resource because it's an inconvenient place to reach. And yesterday, I say, you should have a shuttle bus running that you can go between these venues. Well, we call it Izumo, which means that the clouds come out. So usually, they don't have that much of a great weather. Cloudy weather is quite often, but there is the Izumo Shrine and there is Shimane castle, the fish cuisines are tasty, not many hotels. So if you go over here, there is [ Iwami ] cliff area. So the cafeteria is already created, and they are selling quite tasty items. I did visit there as well. Expansion of the customer base, both within and beyond the financial business by promoting SBI Sumishin Net Bank's and Neo-bank initiatives. Customer using business services of partner companies also have access to ancillary banking functions from SBI Sumishin Net Bank. They act as behind us partner companies to create a framework by which service can be used by both smoothly and seamlessly. So there is the Yamada Holdings, CCC Marketing, Japan Airlines, Open House, SBI Security, Takashimaya Company, Dai-ichi Life, Fighters, Sports and Entertainment, GA Technology, Nomura Real Estate, MILIZE, Keio Corporation. Each one of them have quite of a large customer base. And to those companies as the back of the same partner, we provide these services. So you might think that we might be profitable through these initiatives, but now we are being profitable. So going forward, for banks, they should not just stick to conventional ways of doing business. So diversification of financial products and services is the next slide. In the securities business, we are making efforts to increase customer satisfaction to acquire new customers by diversifying products and services, capturing the trend of, from savings to asset building. We are starting to see this trend pick up. So by taking this opportunity, we would like to try to grow this business at once. For example, for equities, foreign stock services, we would like to expand this substantially. For Japanese equities, how many people are thinking that it will be fine. Actually, there aren't that many in reality. The reason is because it's just Japan where interest rates haven't gone up yet. People are feeling that it will eventually rise. It will definitely rise. So what's going to happen then in that phase. So that's what we're talking about here. That is why, whether it be Nomura, I used to work there. Yoshihisa Tabuchi, that was the President back then. He was a great person. Japanese stocks were going up, and they were saying that it was going to reach JPY 40,000. And the President of Nomura can't say Japanese stocks were dangerous. So he said GAA, global asset allocation that we should start to expand in allocating assets globally, GAA. That is why he started to recommend European shares or American shares or he also talked about going to bonds instead of stocks. They were trying to create that trend. But unfortunately, the next president was in charge of bonds originally, but it was not a good president. So they were not able to see that trend kick off. For SBI Securities, foreign stock trading volume and revenue is shown here. Creating volume has been reaching record highs and revenue remains high as well. SBI Wrap, fully automatic AI investments. Over 13 months, AUM went up to JPY 35.4 billion and around 690,000 -- 69,000 accounts, it should be higher than that. Real estate small-lot beneficiary interests are shown here. The cumulative amount is growing. And we have investments in various real estate companies. We partner with various entities, and we had a dinner the other day. But they will work hard for you basically. NISA, iDeCo, the system is going to expand. It's going to turn into a permanent system. And the limit has expanded. And with that as a backdrop, we have overwhelming command in this part of the business for the number of accounts in particular. And out of a number of new NISA customers, new customers are 82.4%. And within that amount, 74.7% are novice investors. For Junior NISA share, we have 30% market share, which is overwhelming as well. So the excluded deemed discontinued accounts is the case why Nomura Security saw a decline. But we also do that, but we have been seeing an increase in accounts. However, there was somewhat of a deceleration in its growth. However, we are still growing. This is about iDeCo -- from May 19, 2017, we have made iDeCo administrative fees completely free of charge. No, we are not saying that they're going to do the same now, but we started back -- way back in May 19, 2017. So SBI SECURITIES is overwhelmingly once again, the industry leader in the cumulative number of individual defined contribution to plan customers used to be Tokio Marine. But then after the trend has changed. The expansion of customer base by NISA and iDeCo brings a positive effect to SBI Group companies, especially in the Asset Management business. So SBI Asset Management, in September 2019, has started a low-cost index fund, The SBI-V Series together with Vanguard and net assets surpassed as of end of March, JPY 1 trillion. And SBI Asset Management started to offer from December 2017, SBI Global Equity Index Fund and has surpassed JPY 100 billion in net assets. And I call it Snowman, Yukidaruma, but it's for Yukidaruma. And for Rheos Capital Works, the Hifumi Series that began offering from October 2008 surpassed a cumulative of over 1 million holders. The SBI Shinsei Banking Group promotes diversification of products and services by strengthening cooperation with the SBI Group. So it's basically providing products that contribute to solving social problems like green bond and sustainability deposits and so forth. Cooperation of financial intermediary and banking agency sectors for SBI Shinsei Bank connecting it with securities. We're trying to make a seamless situation. And we're trying to cross refer customers to one another. From SBI Shinsei Bank to SBI SECURITIES, compared to 2022 August, the volume of customers sent is 2.6x higher. And the other way around, it is 21.6x higher. So you could see that by connecting with SBI SECURITIES it will really help in expanding the customer base. You could tell from these numbers. And also, SBI Shinsei Connect, the automatic deposit and withdrawal service has started. Also, MONEY PLAZA joint branches. We currently have 3 AUM. In 7 months, it has exceeded JPY 10 billion since the start. And this is SBI Shinsei Bank Group with ARUHI. It's the SBI Mortgage, but we released at once, and then we acquired it once again. And now it's in our group again. On a stand-alone basis, ARUHI did well at times and didn't do well in other times, I believe. So we left the good parts of the business so that we could refer more customers and expand the business even more. So that is how we would like to do to cooperate even more. For the Crypto-asset Business, we can't just be sluggish with this business. We need to accelerate the business. And based on customer-centric thinking, we are implementing measures for the Crypto-asset Business as well. We feel that this is what we need to do. So -- we would like to have our product lineup that are unique to the SBI Group and expand them, and we would like to provide easy-to-understand products and services and strengthen Crypto-asset management services such as expansion of staking services, et cetera. So we would like to basically increase what we offer. March end 2021 through March end 2023, the number of customers have increased by fivefold. And the red highlighted areas are areas that we newly engaged in, in order to offer more services to investors. So BITPoint is now our subsidiary and we have been engaging in various types of business areas. Relatively speaking, I would say that for Cryptocurrencies, they were more ahead, to be honest. And that is why we acquired the entity. And Mr. Tashiro was a very competent person. SBI VC Trade and BITPoint, the Exchange Business, in order to fulfill diversified customer needs, we would like to expand services and make improvements. Staking services are something we would like to expand. In the industry, we would like to be -- we are ahead and doing delegate services and Flare Token Wrap Services. And for BITPoint it has been able to be ranked #1 in customer satisfaction, et cetera, et cetera. And in various ways we would like to expand and improve the business. So regarding what is staking services. It is basically proof-of-stake schemes. Crypto -- it is the reward for depositing crypto assets. If I go into detail, I can go on and on because then I'll have to start talking about what is proof-of-stake. So I hope you could search this by yourselves. For the financial business, this will have a good synergy effect as well. So this is something I would like to promote even more of. So we are doing M&A of the Crypto-asset Business as well. HashHub is a research service for Crypto-assets in Web3. So we made this acquisition and also the acquisition of BITPoint. We used to own 51%, but we turned it into a fully owned -- wholly-owned subsidiary. Regarding diversifying business fields. I touched upon this earlier. But for the Asset Management business, we would like to position as a core business and through M&A and joint ventures, during fiscal '27, we would like to aim for JPY 20 trillion assets under management. For assets under management, there are a lot of listed company shares as well. So as an investor too with listed companies, we would like to strengthen our connections with them. The environment surrounding the Asset Management Business, we would like to understand it well. So during fiscal 2024, we originally have the target of reaching JPY 10 trillion for this year, and we're currently at JPY 8 trillion. So we're pretty much close to JPY 10 trillion already. And we are approaching a major turning point. In Japan, we had that [ JPY 20 million ] issue, people questioning whether we're going to be all right when we retire. But now we're entering a phase where interest rates are likely to rise, so people are questioning whether the Japanese economy is going to be fine. And for taxes, defense expenses are going to probably continue to go up. And for children, they are talking about all these subsidies and they're having a competition between the ruling party and the non-ruling parties. And then when you think about the fiscal position of Japan, they're neglecting primary balance. So what the heck is going to happen to Japan as a country. So GDP per capita is continuing to decline. It's going down and down. And the economic positioning of Japan compared to when we were young, it is going down. Many things are, so is Japan okay. Whenever Kishida-san goes abroad, he's using taxes -- taxpayers' money. And he's spreading it globally. But is Japan in a position to do that. I'm really concerned about the future of Japan. That is why we need to defend ourselves. 54% of personal financial assets are held at deposits, but interest rates for deposits is close to 0. So depositing your money at 0 rates. Is your future all right? How should you manage your money. Unless you manage your money, the future of Japan is in a critical state. Mr. Ueda now has taken the helm of the BoJ from Kuroda-san and for ETFs. It's the BoJ, that is the largest holder of ETFs. Most of the names have the BOJ, as the leading shareholder and they are saying they're going to treat it mark-to-market. But what's happen -- what's going to happen if they are affected by a major loss. They'll may probably say, all you have to do is [ print ] bills. Each and every one of us in Japan needs to manage our money in order to protect our livelihoods. Finally, they're talking about teaching children about managing their assets through public education. They were saying before, they weren't teaching our children before, and they were trying to think that people will be able to come to terms with what they were supposed to do with their money. But are you able to design your future without learning. So SBI Asset Management's index funds has steadily increased. In 1 year, it increased by 50.3%. So the mindset of people personally has started to change around asset management. I think people are thinking increasingly that they have to defend themselves. For regional financial institutions. Why without having any capital relationship, 69%, out of JPY 2.2 trillion. Our AUM 69% are from those business financial institutions without capital relationship with us. They -- well until maturity, if you hold a government bond, if you hold them to the maturity you will not make loss. That was the mindset in the past, but it's not the era as such. IFRS is now applied to come up with the business performance across the board. And what will happen. So just saying that this, the government bonds held for maturity will be fine. The government is doubting this. But this is not the case. You needed to keep the transparency. I think that is the starting point for everything. Therefore -- how can we realize the improvement in this situation. Global Asset Management group of SBI has JPY 4.7 trillion as investment assets now as the balance. Through organic growth and use of M&As now, JPY 7.9 trillion is achieved as the balance now. And asset management business, which is approaching a major turning point. The company had set a new goal of achieving JPY 20 trillion in assets under management by fiscal year 2027, and is promoting M&A and the establishment of the joint ventures to expand its earnings base. The interest rate trend, of course, the global interest rate is rising rapidly, except for Japan. The change is being seen in relationship among traditional asset class, equities and fixed income. Well, for both asset classes over the first 15 months, there is no -- not much diversification benefits. Therefore, more sophisticated technology for asset management needed to be deployed by people who are [indiscernible] in those skills. So there is a need for further sophistication in asset management. And to acquire quality asset management and also sophistication and to build our global asset allocation structure, you needed to acquire quality asset management companies and strategic alliances. Together with PIMCO, over many years in the past, together with the government of Singapore affiliated company PIMCO had a joint venture and -- but that went bankrupt. And since then, PIMCO has never established a joint venture. But Doug Hodge, was the CEO of PIMCO. He negotiated with me and then for the first time after a long interval, they established a joint venture with us, and then the AUM reaches JPY 1.2 trillion. And Vanguard as well exceeds JPY 1.2 trillion in AUM with us. Alternative assets management needs to be promoted. We needed to find a partnership with quality company in this area as well. JPY 20 trillion by the end of fiscal year 2027 is the target. In Japan and outside of Japan, innovative technologies needed to be deployed. We have to develop new business areas such as Web3 by incorporating innovative technologies. For ST as well, I think it has become more visible. This is security token. Now there is a voluntary self-regulatory organization. I led this initiative saying that we needed to establish this kind of organization. We are leading the leadership of the Japan STO Association. I am the President. And now the 72 companies have become members of this association. And Digital Asset Co-Creation Consortium contributed to the formulation of the proposal on Digital Securities PTS at Consortium. And we also led the move towards the collaboration through between the Osaka Digital Exchange, which was led by us. And there are 5 initiatives as the track record of ST issuance led by us. At the property, real estate-backed ST, I believe that this is the key. I believe this will further expand significantly going forward. An issuance market as well as distribution market. Once this ODX is established, we believe that these markets will start functioning. And also, it is expected that the market will expand explosively. And this is the capital relationship in the ODX. We own 70% and SMBC 20%, Nomura Holdings 5%, Daiwa Securities Group holds 5%. We are inviting 3 foreign capital affiliated companies. We are reaching the final stage of negotiations. I will be able to announce. And in earnest, in Osaka, ST Digital Securities, PTS starting operation, which I believe will lead to the creation of the market. That is what I would like to see. And over the coming 3 years -- over the past 3 years due to the COVID-19, we have been able to move in Osaka. We would like to try to make Osaka as the International Global Financial Center. We are taking all the steps now. And SBI VC Trade will endeavor towards close with institutional client base by strengthening its Web3 related business. Well, this SBI Web3 Wallet is very good. NFT accommodated custodial wallet. This is the first ever in Japan. And there is no need for managing wallets and buying and sending crypt assets for purchasing NFTs. I believe this is excellent and convenient. And for corporate customers, SBIVC for Prime. The provision of this SBIVC for Prime has been started and blockchain games as well. I believe that this will become more and more popular, and this is being developed at Gumi as well. Other than that, the unique game specific blockchain is developed, and we have been making the capital and digital partnership. And also we have formed such partnership with Turingum as well. And related to Crypto asset we are going to build this kind of ecosystem. SBI NFT brings the world of Web3 closer by enhancing corporate clients developing their NFT business and TOKEN CONNECT, having to -- this is to offer all functions such as insurance and posting and purchase and management NFTs on the WebAPI. And celebrities may jot down the graffiti, and that can be sold as NFT. I'm looking forward to what kind of graffiti will be sold through this. And Securitize Japan is partnering with us in order to provide the new digital securities in the Web3 era. This provided as the STs with privileged NFTs. So as the digital benefits or privileges NFTs will be applied, we endeavor to establish the system to trade digital assets globally in cooperation with partners. In Singapore, we have started already various activities because of the institutional and legal systems, which are easier in Singapore than those in Japan. We have been talking with the regulatory authorities of financial services. And JFSA is getting the information and saying that they are ready to participate in SBI Digital Markets and Siam securities. And now there has been the investment by its subsidiary and Asia Next, SIX Group in Switzerland is joining in this scheme. So the largest ever scale of the global platform is going to -- corridors is going to be established. And there was no custody. But Zodia custody, which is a company in the U.K., we are investing in this company. And furthermore, we are going to establish the Japan entity of this company. Targeting the institutional investors, we plan to offer a digital asset custody services for them. So one by one, we need to build infrastructure pieces, one after another. SBI Traceability. This is well received recently, for example, one of the leading products from Japan, Sake or Nihonshu with breweries. For example, at BORN, Katoukichibee Shouten and Premium Line of Niizawa Brewery and The Toki Sake Association. So this -- to authenticate -- that this is the genuine product from these breweries like through digital pairing in order to authenticate and genuinity -- the genuine nature of these products. And then this can be offered for export market or Pan Pacific, which is running the Don Quijote in the Don Don Donki, Thailand. And they are selling the strawberry from Kumamoto Prefecture introducing the Shimenawa is to sell these products saying that this is truly from Kumamoto. If they are produced and are from Japan, and then they believe that this is good things, and therefore, they are ready to pay money for them in Thailand. And we are taking various measures to increase awareness among the digital generation through games, et cetera. The other day, NEXUM 2023 was held by SBI Neo festival and over 260,000 participants viewing on the official stream alone, at least 80% of members aged 34 are under and over 3 million participants participate -- deem to be participated if individual streaming by competitors are also counted. So this was the first day of our initiative and trial. In the digital space era, branding has been tried in this way. This was very effective. SBI Gaming Kids Day with Pokemon UNITE. Over 1 month and then 150,000 was surpassed in terms of the number of views and also the percentage of female viewers exceeding 30%. So this was really effective and the cost effectiveness was overwhelmingly better than others. Now the e-Sports competitors. Well, they are performing very well, winning the trophy and approximately 2.93 million per 90 days for the number of unique viewers, and it was quite effective. It was good to create this. Gumi, as I said, we started to invest into this entity. And as soon as possible, we'd like to -- asking them to complete the blockchain game. And Jungle is a quite interesting venture or a start-up company in Singapore. It is not allowed because of the gambling law prohibition in Japan. We still have such old law, which prohibit us from doing this. You don't have to care about such law in Singapore. This is an important announcement. I would like to talk about the TOB initiation for SBI Shinsei Bank. I don't think that it is important to explain this background. There are a lot of things in preparation for the TOB. And then once it is done, and then our shares stands at 50.04%. So that is it. And then now TOB will be done again. Excuse me, I have been talking over 2 hours. I have a sore throat now, excuse me. Mr. Morita, could you please speak on behalf of me. Microphone is not on for you.

I am the Representative Director, Mr. Morita of SBI Regional Banking Holdings, and I'd like to talk about the background leading to TOB and also overview of the TOB here. Today -- starting from today or rather, we have made announcement today and from the 15th of May, we are going to start the TOB process and JPY 2,800 per share is the price for TOB. And this time, -- if you go to the next page, you will see the trend of the share price and premium. And next page, we're showing the transaction scheme. SBI Holdings hold 50.4% and the Deposit Insurance Corporation and Resolution and Collection Corporation has 22.98% and the other shareholders 26.98%. Through the TOB this time, us, SBI and the Deposit Insurance Corporation Resolution Collection Corporation only will become the shareholders. So after TOB, we will add the squeeze out. And with this, we would like to bring it to delisting and the shareholders will only be the government-related institutions and us, is what we assume. And regarding this time, TOB, we have not set the minimum. So basically, as a TOB, it is going to succeed. And up to the squeeze out, the flow, the Deposit Insurance Corporation and Resolution Collection cooperation with them, we do have an agreement. And towards this TOB, the government shareholders, they will not respond or apply for the TOB. And we have agreed upon this point. And regarding the following squeeze out, we -- they do agree, and that is agreed upon in an agreement. And the last page, I believe these agreed items between the subjected entity and the government-related shareholders. SBI Shinsei Bank through this TOB has shown their agreement, and they are recommending the shareholders to apply or respond to this TOB. And after that, the aim is the privatization and the medium- to long-term management strategy is going to be built and executed. As Mr. Kitao explained, before, we are in an economic situation that is full of uncertainties. And within that situation, we're going to pursue more synergy and reduce the listed maintenance cost and we have a planned location of the optimal management resources. And we believe that synergies and benefits can be realized. And the government related -- the government shareholders have recommended to participate in this TOB. And as a condition that this is not going to change, they are not going to participate in this. And regard -- they are going to exercise the resolution towards this item regarding squeeze out. So we will be able to succeed and this TOB is what we assume. And regarding the road to the repayment of the public funds. Basically, we have clearly stated the yen to the single digits. And after the squeeze out is done and the privatization is done, and by June end of 2025, we are going to agree on the specific structure of repaying the public funds. Regarding this Deposit and Insurance Corporation and Resolution Collection Corporation, both institutes Shinsei have disclosed about this at 4:00 p.m. Japan time. And the memorandum will be able to -- and the specification document of the TOB can be read on the website. So you will know what the details are. But the basic content is, as I have explained. So from here, we'd like to bring it to TOB squeeze-out and delisting our privatization. That is all for the explanation. Thank you.

So that's where we are. Nothing more and nothing less. So that concludes our explanation. [Statements in English on this transcript were spoken by an interpreter present on the live call.]