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

Thank you very much for attending today despite your very busy schedule. Thank you very much for your attendance today. Second quarter of the year. So now -- well, usually, I ask Mr. Katsuchi to talk about the first quarter and the third quarter of the year, but today, I'm going to speak about the financial results for this year because second half of this year, I believe, is going to be a major turning point. So what is meant by the major turning point? What is the idea behind that? And in the second half, when turning point is expected to be materialized, so what are we going to do? What do we plan to do? So that's what I'd like to explain today. As for the numbers and the results, if we only talk about the results of the past business activities, probably you, the analysts and the professionals can understand the numbers. So I will go quickly for some part of my presentation. So the consolidated financial results for the first half. So the revenue increased by 28.3% increased up to JPY 574.8 billion. So that means on a full year basis, the JPY 1 trillion revenue is we hope to achieve. Most likely, we will be able to achieve JPY 1 trillion on a full year basis, that's how I see it. And also, the profit before income tax expenses, JPY 70.2 billion, a 31% increase year-on-year. And also, the profit attributable to the owner of the company was at JPY 37.1 billion. And this is the apple-to-apple comparison with our peers. Well, it is not a question of whether you lose or win, but the Daiwa Securities and the [indiscernible] and ours, looking at this. So the -- no, 65 years -- 64 years, so nearly 65 years since the foundation, we came to the stage. Other companies have the history of more than 100 years, but this is the current status comparison. And this is a question of time. And this may change quite immediately, and that is expected to happen in the second half of this year onward. And the financial services, so they are record high, financial services, JPY 70.875 billion, which is a record high for the -- and also the asset management to JPY 1.151 billion and crypto asset business turned a profitable positive. And next generation business. So we used to call this nonfinancial services, but we renamed this business as Next Gen business and you look at the numbers. And as for the dividend, so excluding the other special factors, like the -- so the total return on the shareholders and also a combination of dividend and the share buyback are the total return that we consider. And the dividend is JPY 30 for the interim period. In the Financial Services, the revenue increased by 28% and also the profit before tax increased by 0.9% year-on-year. And in all these areas, as you see, the SBI Securities performance are like this, the record high for all these items. And I talked about that turning point because starting from October, we will introduce the zero revolution commission-free, the trading will be realized starting from October this year. So this is the apple-to-apple comparison of the peers and this looks like this in comparison. So we are #3 right now. And it is the time. I will also tell you how this is going to change. And the FX and the SBI Liquidity Market, record high operating revenue of JPY 16.188 billion comparison with the other players, the second largest is GMO Financial Holdings and this is a comparison. And the overseas securities companies, they are security companies. So they are influenced by the market situation, and they are keeping the profitability. In case of Cambodia, for the profit before income tax expense, the result was higher than that of last year year-on-year. Now looking at the banking business, SBI Shinsei Bank Group is the first point I'd like to mention, yesterday they made a financial result announcement. So the 29.6% increase in the ordinary business profit, JPY 53.8 billion and also profit before income tax expense, the JPY 30.9 billion. According to the IFRS. Well, it is JPY 19.9 billion for the profit before income tax expense. SBI Sumishin Net Bank, on the 29th of March, they were listed on the Tokyo Stock Exchange standard market. And the 50% holding has to be reduced down to 34.19%. But it is on the equity method affiliate right now. So the -- in terms of that equity method earnings increased by 24.2%. It is now JPY 1.625 billion. And this shows a number of accounts and the balance of deposits since the commencement of the SBI Sumishin Net Bank and the 6.57 million accounts we opened at the end of September and deposit they grew up to JPY 8.639 trillion, so it has been increasing constantly. Now In Korea, SBI SAVINGS BANK. Well, the Korean economy right now is quite volatile. It is a volatile economy and I do not forget about the experience, but in Asian financial crisis. And the bank lending rate went up to 30% at that point at that time. So it is the market affected by the external factors, particularly the negative impact influences the Korean market quite significantly. It is because of the size of the market. But the -- it tends to turn negative from time to time, but the recovery comes very quickly as well. So at the time of the recovery at the time of the timing point, I believe that we will come in the second half of this year. But the equity ratio is improved. Capital adequacy ratio improved from 13.4% to 14.5%. And the rating given to this bank is a stable. So business itself is proceeding smoothly, but the environment was not so favorable. And as for other foreign banks, the [ national ] bank is now a profitable and in Cambodia, the SBI [indiscernible] Bank, some decrease in profit, but still the profitable. CP Bank in Vietnam, some decrease in profit. But each one of these banks are expanding their business very steadily. Moving on to insurance business. Ordinary revenue, up 9.6%. ordinary profit up 16.8% with JPY 4,851 million, very steady growth is observed. The number of in-force policies at the CAGR basis, 14.1% is growing very steadily. Asset Management business. As I mentioned earlier, JPY 3,151 million of pretax income, up 59.8%. At Asset Management business, it is the combination of organic growth and M&A growth. That is the plan. So in a very steady manner, it is growing steadily. The cash is really abundant, and then there is a proceeds of sale of Morningstar brand exist. So if there is any good target, the [aggression] is always ready to buy. Rheos Capital. Now it is SBI Rheos Hifumi Company Limited, that is a name from April 2024. SBI Global Asset Management exceeded JPY 5 trillion mark with JPY 5,073.6 billion. And the JPY 2,350 billion of the institutional investors, AUM. On a total basis, in SBI Group AUM, JPY 8.5 trillion and we would like to make it to JPY 10 trillion or JPY 20 trillion, and we are moving towards that. Moving on to investment business. That revenue, up 89.8% with JPY 56 billion and pretax profit, up 117.2% with JPY 10.411 billion. The environment of funding for venture capital is very tough, but still they did very well. So the changes in the fair value as you can see. Increase of 126.9%. Here, it says this is securities -- unlisted securities. For listed securities, now is profitable and unlisted securities, the growth is negative. So only JPY 10.5 billion in the first half of the year. The M&A and IPO, 22 of them exited, so the same level as the fiscal year 2020. Two and the JPY 7,695.5 billion investment trust. The crypto-asset business to year-on-year basis. This B2C2 market maker or the SBI E*Trade for mining. Some the partners went under, and we incurred some losses. And there is a big negative number here because of that. But for this fiscal year, relatively stable development in the crypto-asset industry. So we are enjoying profit. Next Gen business. The pretax income was negative for the first half, for example, SBI Pharmaceuticals. And in the area, but the deficit decreased. But for example, the ALApromo, there's some IPO-related costs incurred. And because of that results was slightly worse. But it is still the business itself is profitable. Yes, this is what I'm talking about. SBI Pharmaceuticals and SBI ALApromo, as I mentioned earlier, some cost incurred. So from this page, the second half of this year, both for major macro and the same macroeconomic but we will see turning point. And we start in our minds, we are already making preparation with respect to how to manage our business. For example, of course, the monetary policy will make a shift, both at home and abroad, as you know, already. And for securities business, zero revolution. So in October, what was the result of zero revolution? Well, for the month of October on a year-on-year basis, better, slightly better than the same period of last year. So we are going to make what we have made initiatives and that effort will pay off from here. So maybe that JPY 20 billion or so reduction will come from the zero revolution initiative. Some analysts said that. I totally disagree with them. And for the whole group, there are some positive impacts for the group with ecosystem of corporate management. And also, the Japanese government is trying to make a shift from savings to investment. And at that timing, that we launched this initiative with zero evolution and we will enjoy a tailwind. And as to the coming of full-fledged digital world, because we believe in that. And in this area, we are making very aggressive investment. In a sense, it will bring a big change in the second half of this year. And also, there are big changes in the business environment, including volatility in the financial market to be ready for that, we are going to make a new business portfolio, which includes semiconductor business. We made investment in Mynavi. So for example, a partnership with Mynavi is part of this picture. And we see the income and the cash flow increasing in Middle East, like Abu Dhabi, and we are going to thoroughly increase the relationship with such area. In the past, we started in 2005, focusing on the China. We still have 7 the operational basis in China. We started various businesses in China. Then we moved on to Southeast Asia. There's a shift of the management resources to that area. And Southeast Asia will continue to be part of our business. But this semiconductor business coming around, we will particularly focus more on Middle East. After the second oil shock, we talked with the South Arabia, a Manager Agency or the agency in Kuwait in Abu Dhabi or UAE, every 3 months, I visited that area, and there was a hold of such visits for a while, but I have to visit the Arab countries again. In Riyadh in Saudi Arabia, we are going to start our operation basis. What kind of business would that be? And this business in the Middle East, what kind of positive results to be brought to our business because in the Middle East, the largest inflow of the money and the money should be used. When I was with Nomura, the money coming into Middle East was diversed into the rest of the world. And here, we are, we'll be using different perspectives to work on Middle East again. More specifically, so the macroeconomy environment, the monetary policy will come to a big turning point. So the U.S. policy rate, 5.5%. In a very short period of time, it comes up to 5.5% level. But still, it's economy, it's solid in terms of GDP at least. So the 10-year bond yield, it was stable for a while. But now here, it started to come up. Obviously, a significant rise. This means based on my experience, the change of policy, 10-year bond rate is moving, that's meaningful. And in Japan yield curve control, yes, was present and some changes because of that. And with Mr. [indiscernible] the major changes in the policy are not happening yet. But the rest of the world is changing, and if you do not change, the yen will continue to weaken. Some people might say, what's the wrong about it? But that means that the real wage will not go up. The government was very focused on wage increase, raise it by 3%, for example. It is down by 2.4%, and because of the weaker yen, the material cost is rising. So it's impossible to expect wage increase under such circumstances, the tightening policy in Western countries. What is the impact on FX market? It's not only the U.S., but also Europe, has been tightening their monetary policy. So the rate gap with Japan has widened and dollar/yen, the euro/yen, in those pairs, yen continues to weaken. The volatility goes up because of that. And our business welcomes it. But for the general economy, that's a big negative. In the U.S., [ Mr. Power ] after the [ Yafamosa] meeting, they said that the financial the situation tightened significantly in recent months, driven by higher longer-term bond yields, among other factors. That's what he said. Significantly tightened, he said, so that gives the impression that they will not raise rates anymore. But he is prepared to raise it again, if necessary. But when you look at the long-term rates and employment, unemployment rate, maybe they will not raise any more from 1974. Every day, I have been looking at the markets all over the world. So I can use my instinct. Certainly, they will not -- I would say that they will not raise rates anymore, almost certainty. In the past, at the Fuji Bank working on SoftBank , with [ Asakura-san ], I was doing the FX dealings, with profit of JPY 6 billion in the first half and second half. And I did not incur any losses and whose dealer asked me, how are you doing it? I mean they -- do they ask the question to Asakura-san? But even at night that, I called Asakura-san, for example, even midnight that we have not made any the failures back then. So anything you bet on your life. And as a result, you can rush up your instinct. If you stay relaxed you would never have instinct. Now in Japan, a positive response to the realization of its 2% price target, [ Mr. Wee ] anyone knows that it is over 2% already. And -- but he says that the certainty is not sufficient. So he avoided mentioning a specific timing for the normalization of monetary policy. He does not make any clear-cut comments, many academics scholars are like that. As we said during the meeting, [ Takinaga-san ], outside Director disagreed. I mean, pointed by Mr. Koizumi, Japanese financial system was in the bad shape and he did a very good job and Mr. Takahashi, as he wrote in his personal history of Nike newspaper saying that [ data Takinaga-san ] did a very good job. In the near future, Japan and the Western countries, their monetary policies will change. So what is the impact of the monetary policy on the real economy? As I mentioned earlier, when you look at the U.S. job numbers, so now they are aware that the labor market was too overheated. And GDP is very strong, 4.9% for Q3. [indiscernible] is leading. When you look at credit card results in the U.S., it seems risky, I think, and the office space. Since the COVID, people do not go to office anymore. And today, such people are here but the total attendance is 116. So the rest is online on the Internet, that's fine, that's convenient, you can save time. But you should be careful, the real economy is different, and that's why WeWork went under. The U.S. Germany real GDP. In Germany, the economy is so weak and of course, U.K. economy is weak. As you can see here, the CPI year-on-year basis coming down for both countries. So each country the U.S. and the European government will change their policies. And this is the example of Japan, the real rate, minus 2.4%. This is the result. So that explains why Mr. [ Kishida ] is not very popular. And the distribution of money will recover the support rating will -- and the finance minister says that the people are not using it. That's really laughable. Well, then, we should not go down that path. So what should we do? This is what I am giving very serious thought to thoroughly promote measures to strengthen both funds raising an investment in order to increase the profitability of the banking business after the change in monetary policy. Thoroughly promote is what we are doing right now. SBIs Shinsei Bank group business, the possible impact of rising interest rate to its business and the various initiates being promoted in response. SBI's Sumishin Net Bank, what's happening? Individually in specific terms because the situation differs for each one of them. So how we do it in a response has to be different. And also, the regional financial institutions, which we have a stake in for this too, what is the best way that direction, especially those that we are investing a lot. We need to make detailed guidance to them. And SBI Savings Bank, as I have said before, this is -- the time we'll solve it. The recovery will be very quick. First of all, SBI's Shinsei Bank. Basically, the bank business for short- and long-term interest rate, either increase is going to bring about the widening of aspects. So for the banking business, it's a positive factor and also corporate loans, housing loans, unsecured loans, leasing and shopping credit, each one of them, we need to look it in a very detailed manner and also implement a detailed ways of doing things. Because the market business, expecting a positive revenue effect from higher yields on reinvestment. At the same time, this is important, projecting extended valuation losses on fixed income domestic bonds held and higher cost for funds procured from the market. That means the deposit interest rate is going to, of course, increase. So we need to be paying attention to this and at the same time, expand the spread. The market risk, we need to thoroughly keep an eye on it and act. So compared to the past management options, it needs to be more in a granular manner. We need to -- our management needs to do that thoroughly. We anticipate the increase of the interest rate. And from a long time ago from the Kudo administration, the number of accounts was on a declining trend. And also the total deposit and balance was not increasing. That was Kudos management structure. Then it became to Kawashima management structure. Then the number of accounts increased and also the total deposit amount has risen rapidly as well. How are we going to link this with further widening the spread? That is important. And also, SBI Shinsei Bank, at this time, the collaboration of bank and securities, that has a very much of a large positive effect. It was a proven, and we will be thoroughly working on it. And what happened because of that? In 2022 October, Shinsei Bank and the simultaneous -- SBI Shinsei Bank, the simultaneous opening of accounts with SBI Securities has accelerated growth in deposit accounts. That is the blue line that is showing the growth or increase of the accounts. You can see it had a rapid increase. And the new customers, including this 60% or so coming over from SBI Securities. And the average age was 39.8. The former Shinsei Bank had customers that are in a higher age group. But now the SBI Shinsei Bank are in the younger generation that are going to become even more active moving forward and they're going to become the core customers. And when their parents age, and when they go into the phase or stage of receiving inheritance. These are the people who will be receiving those inheritance. So with this strategy, we're able to achieve that. And so increase the deposit rates and also -- no waiving all ATM fees at convenience stores, we are implementing various measures and foreign currency deposit withdraw function between banks and security companies scheduled for release in November. So a future of increased linkage with SBI Securities is SBI Shinsei Bank. Most important initiative is what we think, and money -- SBI MONEY PLAZA, there are 4 co-managed stores. And the amount of AUM at the joint branches have steadily expanded, increasing by approximately JPY 120 billion in just over a year since it started, and that requires a lot of effort. And also, SBI Shinsei Banks various initiatives in order to implement that, we need to increase the management flexibility. The voting rate is 62.5%. [ Murakami-san ] Place has joined and will remain. Therefore, it will become that way. Before he made the decision, he has visited me several times, and we had several discussions with Mr. Murakami. And I said that you are very welcomed. If you join us, you can utilize your know-how and experience. And with him, we are going to be a cooperation, meaning that we will be sharing the benefits. And so what's good for the bank is going to be good for him as well. So I welcome that. And what was even more welcoming was the JPY 56 billion money. He will let it stay untouched, and the JPY 56 billion because it's untouched or will be untouched. When my decision became firm, I immediately instructed to increase investment amount to semiconductors from JPY 50 billion to JPY 100 billion. So let's have an abundant capital base. And because of Mr. Murakami, we were able to do such things. So it was quite welcoming. That is my stance, but instead because he has joined -- I have asked them for various wisdom to be provided. He was in medi and then he wanted to work for people. And that has not disappeared now is what I think. That is why suddenly joined and people think, Mr. [ Kitao ], it must be puzzling. Well, there was one reporter who asked me that question, but I'm not puzzled at all or problem at all. This is something that I have been saying from the very start. If the Shinsei Bank -- the achievements as a platformer is steadily materializing within the relationship with the regional banks, they are generating various new businesses. SBI Sumishin Net Bank's main products is on variable rate mortgage products. Which are expected to be positively affected by rising interest rates. Mr. [ Mariama ], the policy interest rate is 0.25%. When it becomes 0.25% -- we assumed no decline in demand or increase in defaults. APF is estimated to rise 30% under certain assumptions. And we believe that, that will actually happen at a high possibility because here it's most of individual accounts. The regional financial institutions in which SBI Group has a stake, share prices have risen in line with expectations of increased profit from lending and market operations among other factors, as they promote measures in anticipation of rising interest rates through collaboration with SBI Group. Based on my experience from 2005 April to March, and if you look at the 5-year JGB yield and the correlation coefficient is 0.8% is the interest rate increase, then the domestic bank share index increases as well. And from April to October, the correlation coefficient has increased even more to 0.92%. Therefore why did it become this way? We need to think about this in this case. I -- when I look at such a thing, I always think why is it this way? And I look into it. The variable lending ratio of regional financial institutions, including loans with the remaining maturity of a year or less, has reached 63%. Expected increase in interest income from funds as interest rate rise in case where the interest rate tracking rate on deposit is low. And this, a variable lending ratio of 63%. This is good. The interest rate increasing and if this remains fixed, the interest rate, increasing benefit cannot be enjoyed, if that is the case. So these are the partners business alliance partners with SBI Group's capital is listed up here. And our investment and where we have a high shareholding ratio like Shimane Bank, 33.7%. Voting rights based shareholding ratio, 33.7%. When announced, It's 0.19% and right now, it's 0.43%. For Fukushima Bank, our shareholding ratio is 17.9%. When announced was 0.20%, now it's 0.30%. CHIKUHO BANK, we only have 2.9% of shareholding. And Shimizu Bank, 2.4%. There is no consultation of how our business performance is going to be such and so to us. Those type of banks. There's no way we can give them a proactive advice or do something proactively. That is why the PBR has gone down. And relatively speaking, [Tongluo] bank is about the same because 1.0% to 0.22%, 0.23% and [ Jimoto ] Holdings is 0.36% became 0.60, and we have 17% of shareholding ratio. And [ Tukuba ] Bank, voting rights based on shareholding ratio is 0.7%. But even though the holding ratio is small, the stock price is increasing and various [ Morita-san ] is a consultant on various basis. And we also actively provide them advice. And they actually implement that. And that is why their PBR is experiencing this much. TAIKO, in that sense, is quite strong, 2.8% is our shareholding ratio. However, you can see that the PBR is increasing. If you look at the numbers, they will tell you the whole story. This as well, July 28, BoJ decided to make the operation of its yield curve control policy more flexible at the monetary policy meeting. And of course, because of that, the share price will increase. So everybody is experienced an increase in their share price, as you can see here. Basically, the regional bank's share price will increase. especially for the banks and the banks, we have a close relationship and where they have deposits, they experienced an increase. And like Shimane Bank, to banks that will implement our advice, all of them, and they have [ Shimaho ], the deposit tolerance has reached, JPY 40 billion. And President of the bank, having this much of increase in the deposit balance never has happened. And universally, new graduate have joined us so many and the President of the bank was saying because of you, SBI, we were able to change this much. And we have been telling them, no, it's because of your efforts that you have changed this much. This JPY 40 billion is because Shimaho, using our data and using our methodology and look at all the other banks, they're saying, "Oh, we have done this. We have utilized that. " And how much of them are succeeding? And also net [indiscernible] [ sakurambo ] branch, they have already surpassed JPY 10 billion in only 2 months. Next, finally, heading towards the next-generation banking system. The core system is starting to build up 2024. The first phase of Fukushima Bank will implement this. And with this, the system cost, the annual use devising a model system cost burden will be leveled in once every 10 years with the update they have to spend JPY 10 billion or so, and they had a large amount of expense. And I felt that we need to change that. And regarding regional banks, I thought that this is a system we need to change for regional banks. And also, the operating efficiency was too low. And there's an analyst was saying that our operating system is not going well or failed. There's a foolish analyst saying that. But I think the situation is moving towards the sound situation. What do you think [ Asakura-san ]? Conducting the asset management and operation of that. It's not an easy thing that just because the regional bank has a portfolio manager. And there's a JGB and also, the foreign bonds, you hear that they have failed, and because it's for FX, it has to be hedged, but that has not been done. And of course, that's why it fails. So everything is behind the times from my perspective. The launch of SBI, ATM service will start at the Sendai Bank and Kirayaka Bank start its operation. And towards March of 2024, all ATMs will be replaced and turnover. Cost savings from the introduction of the system are expected to be around JPY 800 million over 10 years in total. Why do you have to change your bank book if you change the bank because the bank account changes? Why don't we have a comment bank book? Why do banks spend money on such so? And I kept saying that and is it changing? And also Savings Bank. As I said before, South Korea increased rapidly their interest rate. And in January from 1.25% to 1.32% -- excuse me, 3.25% to 3.5%. And then the situation changed at that point and us in 2013, when we acquired this, the delinquency rate was 86% and -- sorry 51.6%, and it has improved 4.8%. When we got involved, the delinquency rate was improved. And because of that, their performance has went up by JPY 4 billion and it's recovering. And we are seeing signs of improvement in the Korean economy, the property price, even though it slightly is a churn to an increase. And also the property market have continued to feel, but it will start to slightly increase. And insurance business both the SBI Life Insurance and SBI Insurance, they need to have investment policies that anticipate a future phase of rising interest rate. The assets under management of yen bonds and alternative assets at the end of first half of 2023 increased by 22% from the end of FY 2022. And so they need to make the interest rate variable interest. So if you make it a fixed, they will get impact negatively. And the investment income and expenditure are showing results with yen bonds and private lead funds improved seeing approximately 1.4x and 1.9x, respectively, year-on-year. Look at the dividend yield, we are having this much dividend yield. We have many of those and also the private offering fund, 1.9x. I've been chasing the case of big motor all the way and the agency type 9 life insurance business in such way cannot continue operation. The domestic market is saturated and how increased the profitability and sales within the saturated domestic market, I felt that it ends up like that, watching TV. But in our case, basically, we don't have such a situation. And also, the online direct sales cost is low and is safe. And what we need to do is to go grasp the major players a share. If that is so the market is not going to saturate. The major players, they say the market is going to saturate or they're going to expand their business to Southeast Asia, go to Dubai, go to U.S., there are cases that have succeeded, there are cases that have failed, other cases that they have been impacted by FX, various cases exist customer-centric principles, that's all focusing on developing products that capture changes in investment environments such as interest rate and the asset management business. This is the centric character in Japanese. It is saying that you show with your own thoughts. Our strong feelings are incorporated. That's why we're using this Chinese character, each Chinese character used in Japanese has a meaning. Plan to launch and manage new JGB investment fund in anticipation of changes in the interest rate environment in Japan, established joint venture with the leading overseas asset management companies to provide alternative investment products. So as you see SBI, JGB fund quarterly settlement type. So this is the cost fee of only 0.099%, which is the lowest fee level in Japan. So this is a new product, which is the active fund based upon bond. This is what we are going to launch. And then this is about the asset management. What is important about asset management? We often people talk about alternatives. So in the past one year and 4-month period here, U.S. equity, 18.1% reduction and the U.S. bond, it also dipped by 7.8%. So both of them dipped. In the past, when stock is good, then both is lower. So that means you can choose. One of these two, so there was a selection out of two. And we understand that we were able to enjoy a certain level of performance. But today, it is not available anymore. Then what shall we do? Then the comp alternative assets. This is why we, in a thoroughgoing manner, we focus upon the alternative products. Institutional investors, they use actively the alternative assets. But how about the general investors, what should we do? What the ordinary people should do, that's what we'd like to supply and offer to them that is the basic idea about our product. In the past, the PIMCO or the Vanguard working together with them, they are the leading, the players in this area, and we expanded JPY 1.3 trillion, that is the AUM surpassed by Vanguard, JPY 1.4 trillion for the -- in case of -- JPY 1.2 trillion in case of PIMCO. And so they are very thankful. It was good at PIMCO created a joint venture with us. So they are thankful, but of course, this will not continue as it is. So we need to create a new market based upon alternative assets, alternative strategy based upon the diversification, private equity, real estate, infrastructure, these are alternative assets. So we have to look into these opportunities as well. So that is the reason why we decided to work together with MAN and KKR, we decided to create a joint ventures with them. So by the end of December 2023, we are going to establish. We are targeting to establish a joint venture with these two companies, and we are working on the contract right now. So under the current economic environment, the most suitable alternative products that to we offered. MAN is the significant group to tell you, it was established back in 1783. It is one of the largest asset management companies and focusing upon alternative asset management, and they have the asset, which is JPY 20.3 trillion. And obviously the President who is the lady and the respectable woman. And also the smallest unit of investment is JPY 5 million. That is what is available in the market. But we are trying add product -- create a product which can be purchased for as little as JPY 10,000, and it is for the benefit of the people. And KKR, Well, this was the front page, the feature article [ by Yenike ]. So this is the company established in 1976 in the U.S. And was the largest comprehensive asset management firms. And the JPY 74.9 trillion, that is the assets under management. Well, the -- when the representative of KKR came to see me, well, I said that it is a waste of time if this is just the courtesy call. So the very area for Japanese, the management to speak so strictly and in a straightforward manner. But that's fit, and between us, Asakuri San worked very hard on the negotiation. So after the first encounter, Asakuri San was in charge of the following negotiation process. And the KKRs founder was the person who is the head this company. It is important to have the top-to-top communication. So they have the private equity real estate infrastructure, natural resources and private debt and by the first half of 2024, we are going to start providing products. So the AUM by the end of 2027, we target to achieve JPY 20 trillion. Right now, it is JPY 8.5 trillion, but the AUM shall be increased up to JPY 20 trillion. Because of the ForEx volatility, because of the change in monetary policy. Trading revenues are expected to continue to grow in the securities business. FX, as you know, volatility -- when volatility rises, well the transaction volume increases, and that is most the most profitable timing. So when the market moves, then that is a time when business will become most beneficial. In many countries, from now on, at the various timing, different timings and this will happen. So every time this happens, well, as a major event. Well, the question is what's going to happen to the war. That's one of the major events. So when there is an event, of course, I'm not happy about such event. Well, the war should be finished as soon as possible. It is ridiculous to do something like that, the war. But this moves the FX market and also President. [indiscernible] will be the next U.S. President. It seems that the -- well, I feel it may be don't know the Trump once again that's -- what may happen, well, that's what I view from the atmosphere, Donald Trump, I know he has his own -- he is talented man. America First, Make America Great Again. So looking at these phases and the passwords or the slogans he uses. It is very skillful. And if they -- Well, the when he speaks on the publically, I usually watch him over the Internet, it is interesting. And they are fun to watch. He doesn't have a very good vocabulary. He repeats using the same words. So it is not a good learning experience when it comes to English learning. This shows the comparison of number of accounts and the margin balance of deposits of 5 FX companies. So the 2 million account on the numbers were surplussed in June 2023 for us. Other companies are staying flat. Among FX companies, the customer, the margin deposit of FX trading related to the company. So as you see, they are flat, but we are rising. And the commission-free trading. This also contributes to these activities as well. So this is a positive impact on the entire ecosystem, customers, the global asset allocation and we are focusing upon sales of foreign bonds as part of the efforts to strengthen customers, global asset allocation. When I was at the Nomura, global asset allocation, well, the Japanese equity started rising and the [Nike] rose sharply and [indiscernible], they present back then. A couple of days ago, he passed away. But [indiscernible] GAA, he was always talking about the global asset allocation, GAA -- [indiscernible] Japanese equity, looking at the Japanese equity. Well, it is not the good idea to only focus upon Japanese equity. Please look at other things like the U.S. equity or the European equity. And thanks to that experience, I visited the U.K. to introduce Japanese issues. It was a hot time for me. So the every 3 months or so, I had the business trip very frequently. And in the documents that I brought to these countries, they become obsolete after one month. So GAA, [ Kotabu-san ] started this global asset allocation team. [Kotabu-san] as far as I know, around the past President [ Okamura ], the [ Segala Taicantawusan ]. In the past, the Nomura president, Nomura's CEOs were chosen, and they were the best, most suitable person at the time. And the most prominent person among them was [ Kotabu-san ]. He was so smart, and I was impressed and he was very kind to me. And SBI, the foundation he served as the President of our foundation of SBI, even after he turned 90 years of age. In many ways, for example, he helped abused children, he had many ideas, and they give us many ideas to us. So among all the learnings that I did in the past, he was the person who gave me the most important and biggest learning. So I miss him very much. So this is about the foreign bond, sales of foreign bonds, GAA, well, this word expression. When I prepared this material, I remembered them and decided to use this expression. So there is a shift from savings to asset management, that is the policies. And we are going to promote ZERO Revolution in order to popularize the investment. And the impact of the ZERO Revolution on the SBI securities are customer base. At the end of September this year, we reached 11 million account opened. So the usually -- well, the 13.1% CAGR growth rate. So this was the growth rate. Nomura is not growing so much but in case of us, between March 2009 through September 2023, we grew at 13.1%. our customer base is expanding. And our customers are young. Nomura's customers, they are in the 60s or even older. Well, when they face the inheritance issue, what's going to happen. Well, there will be a significant difference. So this shows the number of newly opened accounts as well as margin trading accounts opened. So after the announcement of ZERO Revolution, we reached record high for both of them. In August, compared to July, 24.2% increase between July through August. In September, compared to July, 56.1% growth above July. That is the number of new accounts opened. So this is quite sharp, almost the vertical line. And when it comes to margin accounts opened, this is even more impressive. July 2023 -- compared to July 2023, 108.7% higher. And in September, 277.1% higher than July. So the growth in the -- this is totally different shape compared to the previous growth experience. And this happened after the announcement of ZERO Revolution. So after announcement of ZERO Revolution, the Rakuten Securities. Well, you know Rakuten, they are popular ones, there has been an increasing transfer from Rakuten to us. So this domestic stock account in and out of transfers. So if June 2019 is one, then the Back in September 2023, the outgoing transfer doesn't change, 2.7%. However, the incoming transfer is 20.3x more than June 2019. So the -- there will be the second phase of ZERO Revolution. I will talk about this later, but please wait for that. And SBI Securities, we have been customer-centric since the founding of the company. And there has been a constant transfer -- incoming domestic stock transfer to SBI. In case of Rakuten, so 1.9 outgoing, out to transfers. But they soon left after the announcement, what comes here from Rakuten via in-transfer is 5.9x higher. In case of Nomura securities, compared to April 2022, in the -- out-transfer so 1.6x and the in-transfers 9.3x. Against the Daiwa Securities compared to April of 2022, the 2.1x versus 9.8x. So after announcement, well, some people said there will be no -- not much impact. These were mentioned by many people. No impact? Well, you think so? Well, dear, if that is what you think, then it may be good for us. So the effect of ZERO Revolution also spills over to the customer acquisition through alliance after the announcement of ZERO Revolution. SMBC, so-called Olive, through alliance the customer the acquisition announced increased by 122% in September 2023 compared to the biggest month of August. So as I mentioned, this impacts not just one channel through ecosystem from various areas and the channels, it increases in many ways. SMBC Group will be the -- approximately 600,000 accounts was brokered by SMBC Group. Monthly accumulation amount through SMCC exceeds JPY 24 billion. So [ Otta-san, Mr. Otta ] he wants SBI Securities so much. But of course, it doesn't work like Rakuten Securities. Even if new businesses are introduced, well, I do not try to be too aggressive. I usually carefully introduce new businesses and the nature of them develop them to contribute to the entire group. That's what I do. When it comes to share of trading value, now they are 47.2%. This is the trend of share of individual stock trading value. And also the share of individual margin trading value, 49.7%. Well, what I said is that both of them will be exceeding 50%. Well, this is before ex-date. SBI Securities customer base is expanding and it has positive impact upon the entire SBI Group. For the entire holdings, this will have positive impact on what we do at the group as a whole. And the increase in the SBI Securities customer base spills over into various different cases. For example, in June 2019. SBI, Shinsei Bank, became the subsidiary in December 2021. And in various other groups, the significant expansion of the customer base was confirmed. For example, a number of SBI Group's securities accounts increased by 134.3% compared to June 2019. Shinsei bank acquired in December. So that is how it is compared. However, for other operations, it is compared to June. And the -- well, I didn't intend to announce this, in order to disturb Rakuten's effort, we have been saying this since 2019, and we spent time to be fully prepared. And then when we are ready we made announcement. Well, the Rakuten or I didn't think anything about the impact upon others like Rakuten at all. SBI group, the number of FX accounts increased by 68% and number of accounts of SBI Sumishin Net Bank increased by 81.2%. So 8.2% increase from the end of June 2019 to September 2023. This is the increase in SBI Shinsei Bank accounts 8.2%. So we will continue to focus upon NISA and iDeCo and try to expand the customer base. SBI Securities has established a dominant position in the securities industry for NISA. So this yields the number of newly open NISA accounts and the transfer. So 28.2% higher than July and announcement was on the 31st of August but some people probably knew that before that announcement. 61.7% higher than July and in October, 68.1% higher than July. So it has continued to expand and increase. And the -- so transfer of accounts is shown here. So all of a sudden, August, September, it started to pick up, 41.5% higher compared to July. In October, 721.4% higher than July. So dear, please look at this sharp rise. And the transfer from Rakuten Securities accounts for 51.6% of the total of 59,784. So they come from Rakuten. So customers are quite honest in their view. They're worried about Rakuten. Having an account at the Rakuten and we are not able to move our securities at the Rakuten because it will be fixed. So customers who are upset and the pricing has been changed. Numbers are quite honest. So in my management approach, I focus upon numbers. I look at numbers. And when something goes wrong, then I look into that more deeply, try to identify the reason for the number. So starting from ZERO, well, this is the reason why I have been able to build this company into this level. And I thoroughly thought about various aspects of the business. And recently, I do not make any mistakes. So SBI Securities has focused on NISA initiatives as an important strategic area and leads the industry. So this ZERO revolution, the second part was announced. And this is, the no commission for individual U.S. stocks, including ADRs and overseas ETFs, U.S., China, Korea, Singapore in new NISA. We made this announcement, right? Yes. So this is the second part of the ZERO revolution. In anticipation of the launch of the New NISA, provide products that contribute to long-term asset building for individual investors, including investment beginners, in the Asset management Business. Asset Management business are the 47 for the NISA growth investment and 44 from SBI Okasan and 8 from Rheos Capital Works. And with focusing on a customer's perspective, new products have been developed or new areas, especially India and Global South. When you go to an international meetings, you will always hear the discussion on Global South and that should be included in the Asset Management as well. India, there was a surprise. It was not started yet but on the reservation basis, we collected more than JPY 5 billion. And it may be in the analogy of China, the trade and the capital could turnaround. And at the timing, I would like to visit China. There are some political risks. I [indiscernible] Temasek in Singapore to develop a joint venture. I talked with Temasek and made joint venture. And then in China, but then the son of the then Prime Minister was welcomed as the CEO for the entity, and we started venture capital investment there. It was a big success. That is new horizon fund that I'm talking about. And we have created many fund since then. And now India is in a similar situation, and they are going to be the #1 country with population -- in terms of population, I wanted to start semiconductor, because in India, with such large size of population and the mid-income people will increase dramatically, motorization that will happen. That was what happened with China, and that will happen in India as well. Prime Minister Modi, he urged us to do business in India. And I think I could enter Indian market. Middle East, we bought 2 auto companies but that is not sufficient. And when we had the press conference about the semiconductor business, I said that we are going to make ecosystem in semiconductor area as well because when you have Saudi Arabia in mind, it will be difficult to do business only with foundry. There should be ecosystem in Saudi Arabia as well. And of course, we should invest for that. And I thought that would be the quickest way to start business there. So we are very focused on Saudi Arabia and the Minister of the country visited me to discuss the matter. We are not talking about specifics when we are going to start the foundry there. But we'd like to make contribution to Saudi Arabia as well. In the past, in Abu Dhabi, Hassan Alsuwaidi before he became the Head of the Energy Agency, he invited me to Imperial Hotel and asked me what we should do about Abu Dhabi and I said the population is small and the money is the largest asset of your country. So you invest in the promising companies all over the world and capitalizing on the money, and the industry features not so labor intensive, should be invited properly pharmaceutical, I said. Or about financial business, I also urge them to start the financial business because they have money. So that's the discussion that I had with Mr. Suwaidi at the Imperial Palace. And also, I recommended strongly 5-ALA business. At this time, the 5-ALA factory is to be developed in Saudi Arabia because -- or anywhere in Middle East. There are many patients of diabetes and there are some particular diseases, which are very common in the Middle East area. And that decreases the absorption of oxygen. And so that increases anemia. And 5-ALA could be affected for such medical condition as well. After I turn 55, after taking like this for 2 hours, I lose oxygen in my brain. So before the -- starting my speech, I had this special equipment here and to provide oxygen to my brain but not anymore because with 5-ALA, I don't need it anymore. That's why the 5-ALA is taken by the Olympians as well. For example, Morita-san is a sportsman, Tyson and he can tell what difference 5-ALA makes. That will increase the oxygen consumption level by 50% or so. So the Olympians are taking it. It has nothing to do with doping because this is the substance that your own body creates as well. So this was a big hit really 5-ALA, that's a bit hit. So anyway, the global sales, this is also selling very well. So moving on iDeCo. From the very beginning, very early, something from the very beginning. I told my staff that to make commission free, I started it in 2017. So the SBI Benefit Systems was launched, and they were in the red completely. But now they are profitable. 2015, the CAGR is 33.9% individual type and corporate type combined and the balance of investment trust for 401(k) individual-type, corporate type by SBI Securities is increasing 47.4% CAGR. Such track record should be in Japan as well because it is happening in the rest of the world. NISA was already there in the U.K. before it was started in Japan. Mr. Suga 53% or the 54% of JPY 2,100 trillion should be shifted to investment. That's what Mr. Suga said to me. And this is the only asset this country has except human resources. Such huge savings of the people should be used in a better way. And this is the iDeCo's accumulated number. It exceeded 860,000 in September 2023. The Tokio Marine was surpassed by us. And the now SBI Securities are going to work on the replacement of our revenue. The financial revenue is still big. SBI Securities has JPY 6 trillion so financial revenues are increasing continuously. Trading revenues as well, including FX, for example, and -- of which the 12.1% is related to online domestic stock transactions. So revenues from commissions, not subject to the ZERO Revolution has continued to increase. Commissions transactions, excluding online domestic stock, up 10.1%. Online domestic stock transactions, up 25%. So this part will be zero. This JPY 12.3 billion will be zero and it will be completely offset. Now I have more confidence that we can offset it completely. After 2 or 3 meetings giving instructions to do this and to do that, for example, to Takamura-san. And kind of discussion is going on. And of course, Takamura-san and his team are working on some sources, some new projects. It would take some time. But I'm sure that other those works will be -- will pay off. The financial revenue, the operating credit balance is on the increase. And the further increase financial revenue actually year-on-year basis, up 51.3%. This is something -- the accelerating pace of the increase in investment trust fees up 10.7%, with so low fees still plus 10.7%. Monthly accumulation amount has exceeded already JPY 100 billion. Investment trust balance accumulated more than JPY 1.2 trillion per year and wholesale area, the growth is lumpiest. In other area the growth is obvious. For the IPO, underwriting share is one thing. But not only that, for the PO underwriting business, we underwrote 14 POs and the 32 bond offerings, the numbers continue to increase. For underwriting online securities, and large securities. What is the definition of large securities and why large securities versus on net -- online securities. Such articles are written by someone who doesn't know the real picture. 10 years ago, the real brick-and-mortar securities firms lost their leading edge. If you look at the rest of the world, they are reporters, journalists have to learn more. SBI Securities is the only online securities in the top 10 in the equity underwriting ranking. And I'm sure that our rank will be better. For example -- let's take the example of semiconductor business. How many corporate clients that will bring to us. One of the major goals for us is that we have been focused on retails and now that should be linked up with wholesale business. Wholesale, it's about corporates. So the connection with the corporate, we will make a difference in the number of underwritings and a number of lead manager positions. So everything is connected. What might say that the semiconductor is irrelevant. No, it is relevant. And when you have dinner with business people, the main discussion point is semiconductor. How much semiconductor are you buying? If we make in Japan, would that fit to your business and people say that we would appreciate it very much. What about 27 nano, is it usable? what is the demand for W-o-W and people say that if you can make it in Japan, we will buy your product. Then they don't need to import these products anymore semiconductor products. If we make them in Japan, we have the very traditional historic manufacturing culture. Activity promoting investments and business development in the field of digital assets in preparation for the advent of the full-fledge digital world. So with people in Saudi Arabia, in Middle East, when we discuss with them, the Western countries are very interested in the digital area. It's no comparison with Japan. But SBI an exception in the eye of those people in Middle East. So SBI Digital space fund, the size of JPY 100 billion was launched and the crypto asset ecosystem and global corridor. It's showing good results. And NFT has not come to its end yet. You might have the impression but there is a feature for NFT. So as of JPY 100 billion was already collected -- I mean the JPY 55 billion was collected as of November and the remainder will be collected and already 43 companies participating and expand the crypto asset ecosystem and maximize profitability driven by the recent recovery of the crypto asset market. Basically, crypto asset markets are inversely correlated to U.S. interest rates. When the interest rate goes up, Bitcoin price goes down. And that's what happened. Now it is over JYP 5.5 million. That's the price of Bitcoin in terms of yen. So U.S. 10-year yield and Bitcoin price correlation as rates go up, a risk of [ mood ] spreads and clear negative correlation develops. For asset managers, such correlation -- inverse correlation is welcome. And you might want to increase such the assets in your portfolio. When you look at the correlation, correlation coefficient is very important. I always ask a question about correlation. Ethereum, Bitcoin had a similar movement. Big change is coming up because the filing for crypto asset ETF is happening and we are waiting for the result, and that will dictate the future of crypto assets. Institutional investors started to involve more or it will come to a halt. We are coming to that turning point. SEC is losing -- has lost, let's say, litigation in this space, and I'm paying a lot of attention. Institutional investors. They are interested in this asset class, which moves differently from other assets. So it's something that they want to have in their portfolio. Ripple Labs won the litigation, increased the [indiscernible] and brought in the litigation but that was withdrawn by the SEC, and they are gaining momentum. International money transfer in that area, I report that is the leading player. And very early on, we became the outside to the shareholder of Ripple because I thought that they will be the leader in the space. And that's why I wanted to buy their shares when the share price was relatively low. Initiatives in the group's asset business for the future. Everything I think forms ecosystem. Semiconductor, financials, crypto-asset ecosystem and supporting functions are there as well and the core companies are strengthened in that ecosystem. So we are continuously making ecosystem. And making such ecosystem. So compared to 2021, in September 2023, the number of customers was fivefold. The staking service, I think, is quite interesting. The staking means that it adopts the proof-of-stake system. On the blockchain, generation and approval of blocks and supporting the operation of the blockchain network, which adopts this mechanism in accordance with the amount of crypto assets. So as the reward to support such operation, the money is granted. Just holding it, not do anything about it. Money comes in, that is possible. This -- the global financial institutions are having interest in this. So this is showing the staking reward rates of the staking names that are mainly provided by the SBI Group, crypto asset business. There are things -- there are ones that make a lot of money. This is something that we need to thoroughly study. I have been instructing my subordinates to do so and trade finance. We are investing in the trade finance. But one more that we are focusing at is XDC Network with TradeFinex Tech, which is Dubai based venture that we are going to establish under the basic agreements that we have entered to expand the crypto acid ecosystem. And this is interesting to Dubai. And if you go to Riyadh in Saudi Arabia, you'll be surprised how much of sky scrapers, they are located there. When I went during the past, it was all a desert. But with the desalination plant, the saltwater became desalinated. I was surprised. In the past, get out of the airport, go to Abu Dhabi, you get on the taxi from the airport. It took me about 2.5 hours, and all I see on the way was deserts. But nowadays, you see everything hotel or the international so-called super grade hotels are located there. By the way, next time at the expo, Saudi Arabia is going to make the largest pavilion in the expo here. And we are introducing them -- bio technology companies to them. And we also -- we will make an SBI exhibition of JPY 1 billion for the biotechnology as well. SBI Group endeavors to established the world's largest global corridor for the distribution of digital assets. As Singapore's Project Guardian, we are joining as the main member. And Japan's Financial Services Agency is joined too. And we did various pilot cases and all of them are going well as written here. And the tokenized financial products, we have conducted the cross-border transaction of such. And the Singapore government is planning to progress this granting the license moving forward. That is why they have contacted this pilot case. SBI, UBS and Singapore's DBS are all participating. And also Thailand, Siam Commercial Bank, chain exchanger. So SBI Digital Asset Holdings and SIX Digital Exchange and Garmany's Stuttgart, and in Singapore AsiaNext, this is institutional investors digital asset exchange, and this was allowed or approved by the Singapore -- Monetary Authority of Singapore. And also, this SBI Digital Markets is located in Singapore, and it has acquired the Capital Markets Services from the Monetary Authority of Singapore. So in a full-fledged, we are able to start various businesses. And furthermore, in Japan as well, the -- under the tokenized economy, we have established a PTS, proprietary trading system and we are distributing the security token and the market, we have many markets, so we can issue them. The property backed or asset-backed security token can be issued. And up to now, that was only in the issuing market, but not the distribution market. And we've been working on that and we created the PDS, the proprietary trading system for this. And here, you see the Osaka Digital Exchange. And this time, the Canadian major exchange like Cboe or the global market maker, Virtu, the option trading Optiver that has strength in it, all these international players have joined and is going to increase the momentum of the international city Osaka. And we will have the PTS established that has the screening system. Developing a business related to NFT, the use of which is expected to expand rapidly with the spread of digital asset. This as well, we are working on it actively. Looking at the statistics of the global demand, 68.2% -- they will be a growing at the CAGR of 68.2% between 2022 and 2028. And yes, I think so as well. And within that environment, I think this is going to also increase the gummies of blockchain game. We are going to support the launch of this, and we have been conducting activities. And Oasys, we have an alliance with them. And providing the gaming-specific blockchain. And also at the Expo 2025 Osaka, Kansai, SMBC Group and Resona Group created a consortium, and I will provide the wallet service at EXPO2025 Digital Wallet. And I have attended the ceremony of this the other day, creating a new business portfolio that will lead to lower performance volatility due to major changes in the business environment such as financial market fluctuations. What I mentioned briefly before for the semiconductors, this is one of the perspectives we had for the business as well. And when we do such a thing and how we look at this is that we need to target where there is most demand. [ Happiness ], where they're going to be their customers, they haven't determined the customers and they when receive the request from the customers, and they're saying that they are going to make such a thing and making a large investment and you don't know how it is going to be -- what the profitability is that going to be? And why are you making that? We know clearly who will be using. It's EV because it used 3x the semiconductor components to the -- compared to the gasoline-run vehicle. Telecommunications, infrastructures and AI is going to further grow and increase from now onwards. The logic semiconductor, you can see that the demand is continuously increasing. And also JSMC Holdings was established. And within the holdings various ecosystem building companies will come under. And also in the future, within Japan, we will be establishing a new site in Japan, and we will listed and create various values in the future, is what we are thinking. The ecosystem is created with these, the front end and the back end, having both available is important, not just the foundry but that way of thinking did not exist in Japan. It has to exist together. Well, to begin with, the way of thinking of foundry did not exist for a long time. Well, in a full-fledged way. That is why Taiwan -- everything is in Taiwan or the United States or global foundries, have been taken over. TSMC's Morris Chang, it seems that he was saying to my partner -- our partner, Frank, Japan is the best location. I have a large plant in Arizona, but it's stuck, meaning that one after another, there are various regulations. And with that, we are facing a situation that we can no longer move forward. And also in Japan, the reason why we have decided the plant location in Miyagi Prefecture is because well, as an information, I heard that [indiscernible] is not going to last that long. Listening to Mr. [ Nishimura's ] talks, it seems that they will still survive. However, what is going to happen to them? We don't know. And then we can take in the people from there if something happens there. Such a decision was made whether it's a rumor or is it talks from the industry. Well, this is information from PSMC. So I think that such situation does exist, meaning that discussions don't bear fruit amongst the partner candidate companies. We are already making investments to these companies. They are all semiconductor-related companies. And we are going to further narrow this down, aggregate them and create an ecosystem. That's the way of thinking it. And also Miyagi prefecture, we are very appreciative. This location, they have created an office to welcoming us, and I hear that there's a banner that is put up at the closed by a station. So at the foundry, the production plan, we are going to 40 nano, phase 2 is from 2029. And I think this foundry has the most promising future because things will gradually transfer over to 28 nano. And what will be the base of our design is Taiwan's PSMC's latest P5 that will be manufacturing the 28-nano, we will be constructing exactly the same thing. And so the design fee can be kept low and the equipment that will be ordered for this in Hungary. We will bring it at a low price as much as possible and established this foundry. And we are thinking of sales under the J-GAAP approximately JPY 40 billion in the first phase, in the second phase, JPY 190 billion and JPY 50 billion in operating income. And W-on-W, this is a 3D stacking technology, what they do is they actually touch the waivers all at once, [indiscernible] logic and the memory was separately manufactured and connected with wiring. But with that, it has very low energy efficiency. But with W-on-W, they were able to save 90% of power consumption. And the transmission speed is very fast too. Strengthening our global line structure by leveraging our experience in the field of digital assets and other advanced technologies. And this is what I'm talking about, about the Saudi Arabia. KACST, it's difficult to pronounce, it is King Abdulaziz -- well the pronunciation is difficult, but King Abdulaziz City for Science and Technology is not just the pure alliance. Please read this. [ There's the ] cooperation and investment in the field of semiconductors in Japan and Saudi Arabia, development of biotechnological solutions and ethical drugs centered around products using 5-ALA, and the promotion of innovative banking solutions utilizing digital technology and fintech, development of human resources, exchange programs targeted to nurture talent in the field of semiconductor, fintech and biotechnology. In the semiconductor area, the talent from there sent over to Taiwan and who has been sent to Taiwan have them come here, that we are going to be actually conduct and from Japan, we'll send people to Taiwan and at the peak, there will be about the 250 people. So again, it's actually the prince well, the prince. And well, the King -- who became King, have put all the efforts in this National Science and Technology Lab. It's a prominent national research institute in Saudi Arabia and focusing our R&D and promoting innovation on a wide range of fields, including environment, energy and medicine in collaboration with organizations inside and outside Saudi Arabia. So like this, one after another. There's something that we will announce next week also. So in such way, the relationship with Saudi Arabia is something. It's a relationship that is are going to determine the SBI Group, the prosperity or failing in the future. And PTS, let's create another one or further more in Saudi Arabia, we have two already. And in Thailand when we're talking about creating one in PTS, the Minister of Finance came to myself and seek for explanation. And meaning that ours is quite highly valuated internationally. So trying to enter this area in some way. And three, through Middle East, go to Africa and in Europe, especially with the United Kingdom, they have a long-term relationship with Africa. The remaining continent, Africa. How are we going to enter the market? That's an important theme. We have started with the secondhand vehicles. It is creating a profit, however, not remain at such a small-scale business but we need to think something more grand. Business alliance and capital alliance with Mynavi, we have acquired 10.59%. What Mynavi has is at the hiring new graduates as of March 2023, number of registered users is 820,000, number of companies listed, 28,200. Mynavi Tenshoku number of member users 7.94 million and the number of companies listed is approximately 12,500. And furthermore, starting from entering the company, making their own money and how are they going to manage their asset and money or from there within their own life style design, what kind of a house, what kind of housing loans will they have? It will start from entering a company or it starts from changing jobs, various things happen. So how are we going to grasp that timing fully, not just us. We, on a fee basis, will establish, we'll provide that to Mynavi. And in addition to that, well, you can read this through this later. With the regional financial institutions, we'll further strengthen Mynavi partners, which is 34 regional banks and 42 shinkin banks and credit cooperatives. How many are our partners? Well, Mynavi can shift -- fully leverage this. And SBI Art Auction and Contemporary Art, it's the #1 and Mynavi Auction, around 30 auctions per year. And they have various products. So they have the largest number of auction products. They have M&A, they have real estate, they have BPO business, business process. In these areas, Mynavi is doing various things there. So what we can do together, we should put them together and improve efficiency. So in that sense, we are saying that let's pursue business synergies between both groups and collaborating on regional revitalization projects. Well, that's all in my explanation. It's 5 minutes to 6. So with this, I would like to conclude my explanation. And if you have questions, please go ahead. [Statements in English on this transcript were spoken by an interpreter present on the live call.]