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

Thank you very much for attending here. There's about 40 and there's about over 100 participants online. Despite your busy schedules and very cold weather, thank you very much. We have about 170 pages for just the materials. So I would like to very quickly go through them. First of all, the financial results outlined for the 6-month period ended September 30, 2024. The numbers have been already announced. So you have seen the revenue that's the sales is JPY 676 billion, and it is a 17.6% increase. Profit before tax is JPY 78.872 billion, 12.3% increase. Profit for the period is JPY 60 billion, an increase of 24.4%, profit attributable to owner [ parents ] is JPY 44.726 billion, which is a 20.6% increase. And our financial service business was performing steadily. And the revenue is JPY 621.683 billion, a 20.2% increase. And the profit before tax is JPY 104.426 billion, is a 40.3% increase. Asset Management business, JPY 17.051 billion, 21.4% increase. Profit before tax is JPY 3.209 billion, a 49% increase. Up to now, all of them are record high numbers. For the investment business is negative JPY 8.5 billion to JPY 5 billion. And that is because in the middle of the period, if the market goes down, we have the market valuation so it will go down. So what has slightly gone down is also included because we needed to evaluate downwards. And crypto asset business, it has hit the record high, it is a JPY 1.425 billion. It is a 111.4% increase of profit before tax. Next generation business, it was a negative JPY 9.256 billion. Within here, there's other related the promo side items that are before being disclosed. And the digital area is having a negative impact because we consider it as an advanced investment. And it will require some investment. And for the interim dividend, it is JPY 30 per share. We're not going to change the amount for the interim dividend that much. The second half, depending on the situation, if it is well, we may increase it. And this is the business overview of each business segment, financial services business. As I have mentioned before, it is as you see. And if you look at our segment and within the Financial Service business, if you look at the other businesses in this segment, banking business. In terms of the profit before tax has the largest weight by far. About last time when I talked to you, it was at the point where the interest rate was going to increase. Therefore, we are going to allocate our management resources to the banking business is what I have said. And within that situation, the banking business is steadily producing results and the securities business had quite an exceptional profit, JPY 18.8 billion. If we did not do the ZERO Revolution, that would have been added. So strictly speaking, because we had the ZERO Revolution, we had an increase in the account numbers. And if we subtract all that, we won't be able to calculate. So roughly speaking, looking at the current number. And we believe what will become a profit before tax. We believe there's about JPY 18.8 billion of incremental. I myself thought for a long time when we are going to implement ZERO Revolution, we have to do it when the market is doing well. If we do it in a bad situation, then the various voices will come up, and I thought that it will be difficult. So I thought if we are going to do it when the market is performing well, we should do it. And in order to do that, we thought that there will be the exceptional profit that will be generated. And that's why we did that at that timing, excuse me, there would have been a profit loss, but we did that at that time. And Trump, Mr. Trump was elected as the President, and I believe, moving forward, it will be a strong market. And next is the Insurance business. We are going to steadily, gradually increase it and it has been growing. And regarding the Banking business, Currently, the Shinsei Bank Group and SBI Sumishin Net Bank, SBI [ Aduhi ] and SBI Savings Bank and the overseas banks are included in here. As for the SBI Shinsei Bank's consolidated performance, the gross operating profit increased by 4% and JPY 140.9 billion, and ordinary business profit is JPY 58 billion, plus 8%. Profit before income tax is JPY 50.6 billion, plus 64%. Profit attributable to owners of the parent is JPY 44.3 billion, which is a 70% increase. And the net profit attributable owners of the [ parent ], which is us, is JPY 44.3 billion, which is -- the IFRS and SBI [ intake ] basis is JPY 48.4 billion, which is 143% increase. And the SBI Sumishin Net Bank, the equity ratio 34.19 were the same as Sumitomo Mitsui. And the ordinary profit and the J-GAAP is JPY 18.983 billion, which is 16.3% increase and the share profit investment accounted for using equity method IFRS is JPY 3.206 billion, 97.3% increase. And as for the SBI SAVINGS BANK, the South Korean economy has stabilized a bit. It is not at an efficient level yet, but they have a December books closing. So looking at April through September, it is a 112.7% increase. which is [ JPY 8.949 ] billion per profit before income taxes. And the delinquency rate for the receivables overall has improved from 5.6% to 4.7%. And also, the rating, for the credit rating, they have received A, which is a stable rating for three consecutive years. Many of the savings banks in South Korea, why they were impacted? It's because in 2013, when we conducted the acquisition, it's the same situation. They were lending to the developers. And I said they should never do that, and I strictly said that. And I thought that "oh we're going to lose against them, and please let us do this. This is for sure. " The deals the people came to me like that were allowed. But as I was predicting, that situation has happened. But compared to the competitors, our negative impact was quite minimal. And Korea more than Japan, the real estate business is declining. And for the economic, conglomerates are supporting the economy. And the economic size is about the size of Kyushu compared to us. It is a small economic size, though it is growing. We still have that small image. So if you get involved in real estate in such an economic market, it will not be good for sure and I was quite confident about that for a long time. As the banking business is getting the small amount of deposits and provide a loan to the business is that necessary, and we should not do a real estate business or real estate investments. So it's been 10 years anniversary since we acquired the bank. So in November -- well, I'm going to go over there and give them a congratulatory remarks. And they were about to go bankrupt with a default receivables of 51%, but they made a great turnaround. And even though with the negative economic situation that occurred in Korea, they were able to maintain the profitability. So securities business, as I have mentioned before, so the ordinary income and the profit attributed to owners of the company is negative. That is not because we had to procure the [ subordinated ] loans for the -- and that is why nonoperating expenses such as this. And also for the extraordinary losses, is recorded JPY 2.685 billion. That is because to a provision of reserve for financial instruments transaction liabilities. But we had [ JPY 88.1 ] billion of profit loss, but we have overcome that and became a 1.8% increase. So since the ZERO Revolution, I'm trying to do the overall summary of this business later on. Nomura, Mizuho, Daiwa and SBI, you see it all listed like this. And I have mentioned that JPY 18.8 billion if we consider that, if we include that, we will be second place after Nomura. It's about 25 years since we established this company, we just celebrated the anniversary just the day before. But every other securities company has a long history. But even with that, it's just that we'll see in time, we will exceed Nomura. Yoshihisa Tabuchi , the management person of Nomura that I respect very much. And today was the day exactly last year that he passed away. And within the words that Mr. Tabuchi taught me, what always remains in my mind is the business management is the function of time, meaning that as the time passes by, the number of customers increase, the sales increase. A business needs to be in that way or it is not good. So when you think about these words, the inheritance area, the Nomura's customers who are over 70 years old, there is quite a portion of that. But human beings sometime will pass away and then inheritance will be passed on to the son or daughter, the younger generation. And the younger generation are familiar with the Internet. If they want to buy the same shares at the same numbers compared to the service that charges you or fee 0, it's very clear. So it is going to be the function of the time. It's same for the bank. When the inheritance occurs and goes to daughters or sons, they will become our customers for sure. The interest is high. So it's quite decisive. It is going to be that way. So please keep an eye on the situation. Just keep an eye on us. Liquidity market, this is FX-related operating revenue and operating profit, a record high by far and we are now capable of making money. The Insurance business, as I have mentioned before, insurance, if the sales force is strong and the more policies they acquire, people wanting to get ready for emergency situations. It has to be posted as a cost. So insurance business cannot be helped, meaning that, that's why I started this business at the very last. But once it reaches a certain level, it will be stable, and it will become a revenue source. SBI Insurance group's performance is written here. This is a preliminary number. But basically, it's not going to be that different. And there is the impact of the temporary reversal policy reserves. So it is a decline of 2.5%, but it is growing steadily. And total number of in-force contracts CAGR is 14.8%, and it is showing a growth from 2016. And asset management business, first half, the revenue and profit before income tax, both are record high. And this business as well is steadily growing. And these are the companies that are included within this business. So SBI Okasan Asset Management, they have joined our group, and their performance has changed, and they are doing -- putting their full efforts into their business. So if the companies come into our group, like Asakura comes in there, of course, everything will be good because [ a sinister ] cost reduction is what Mr. Asakura is. And next is the SBI Global Asset Management, as you can see, the revenue in eighth consecutive period of record high, operating profit, 13 consecutive period of record high and profit after the owners of parent is 15th consecutive period of increase and the 10th consecutive period of a record high. So you don't see such a company around there. And we have been giving interim dividends that increased for sixth consecutive periods. So coming this far, I hope that it's better that it continues. So I'm not putting that much weight on the interim dividend, but the investors are putting a certain amount of weight there. So I'm asked that can you allocate a bit more money into the interim dividend? I hear those type of investors' voices. However, I want to look at the final performance number because we don't know what's going to happen. The U.S. President is going to change. And the Japan domestic political situation is unstable. And probably the upper house and lower house elections will happen at the same time. So at that time, who is going to be the new administration. First, there will be no mystery if the current opposition party will become the ruling party. The LDP -- the current LDP is not good, it's very clear. So SBI Global Asset Management AUM is a 26.6% increase year-on-year, a total of JPY 6.4 trillion and Okasan Asset Management and also [ Hifumi ], which I mentioned before, this as well [ steadily ] is growing. Investment business. The reason why it is a negative number because there was a change, a loss from changes in fair value. So the 31st or March 31 or September 30, what was the stock price. At that point, it goes up and down. But essentially, is there something that is a negative factor, that is not the case. IPO, M&A. This is 31 companies prospects for IPO, we are steadily growing the number of companies and the semiconductor-related businesses or various fintech or AI-related investments, we are actively making those investments. And towards these companies in various ways, we are involved in their business and wanting them to further increase their performance. This is the AUM of SBI group. Private equities, JPY 819.2 billion. Moving on to crypto asset business. At 111.4%, that's the profit of the bitcoin, the people said that the only one day, they earned JPY 100 million or so after the election in the U.S.A. But we will never know so this is as much as we are going to invest in this area. The B2C2, there are voices from the U.K. that the B2C2 will be very profitable. So please pay more capital, but I won't. I'm taking a very prudent approach. But certainly, under the Trump administration, this area is going to grow greatly. . Currently, with JFSA, we have filed with FSA, [indiscernible] joint venture in Japan. There will be a very strong potential for some aspects in this crypto asset business. And in the context of [ Ripple] the Chairman of SBC the real -- [ SEC ] the real, will be replaced with somebody else. And I have some expectation there. Now the crypto asset business performance, basically, it is upward trend all the time. The overall system, it's still not established yet. So those companies which are operating in a very proudly way and they could go under and they might have some negative impact on us as well. But once the overall system is well established such things will not happen again. Next Gen business. Sitting aside the biotechnology and health care, they are doing fine. But the problem is the digital asset [ Webslee ] which are yet to create positive earnings. We will wait and see for a while. And if there is no improvement, we need to replace people. Whatever the business is, it's about people. If you change people, the results will change abruptly. I have experienced, observed many, many experiences like that. There are 700 companies so who should be replaced, right people in the right place that is what we need to do. Now going into the call of this presentation, the conclusion of the primary actions we have focused on initiatives for further growth in the future. For a certain period of time, there should be summary for anything. That's my thought. So we did ZERO Revolution in one year. What is the summary? What is the wrap-up? Or the acquisition of SBI Shinsei Bank. I thought that in 3 years' time, we will be able to pay back the money to the government. And with that, we did TOB, but the 3 years have almost passed. So to pay back to the government, I think now we have a good foundation. I will touch upon that later in details. But these 2 things because these things will lead us to the further growth in the future. Those 2 big events should be successful. And as to semiconductor, I'm hearing many voices, but we invest only JPY 100 million in the semiconductor business. So there is no pain there. We would like to bring in more good players, better players, and there are many other candidates in the pipeline. The other day, with [Mr. Son, Mr. Son ] treated me [ for dinner ], he said the following, why do you want to buy the Global #6 or #8 company? It's not good. And I think that for this thing, [ Mr. Son ] is right. In the other technology area, especially in the manufacturing area, I don't have experience because in the financial world, you don't need such a big CapEx. But when it comes to semiconductor, TSMC, 28-nano or the 25-nano, these things already need more than JPY 1 trillion of capital. And part of it could come from the government, 1/3 actually. But can you survive with that? Well, they started with #6. Now it's #8. And the quarter-on-quarter basis, it is on the downward trend and P5 latest product, it is before depreciation. And when the depreciation comes in, there will be the larger negative number. But to be honest [ true ] to you, I just wanted to discontinue what we -- well, they had started. I wrote about this on the [ black ], the governor of Miyagi prefecture and people in Miyagi supported greatly that initiative, initiatives of semiconductor and the other politicians and the bureaucrats, especially the other economy Ministry -- Ministry of Economy, they were very cooperating. And so I wanted to meet their expectations, especially the manufacturing sector, especially semiconductor sector. It's the rise for the industry. And without semiconductor, Japan will not really flourish, except foundry, whether the front-end and the back-end processes are there. We are strong in chemical, wafer, we are strong. Those raw materials area, the Japanese companies are strong. And also the lithography, whether it is Canon or Nikon, they are catching up with companies from the Netherlands, for example. So this fight, conflict in the semiconductor will be intensifying because the Chat GPT is one example. There's huge demand for data center. So NVIDIA, the smartphone companies were the major customers, but now they account for, say, less than 20%, and the major clients are data centers. 4 data centers in the U.S. are buying most of the NVIDIA products like Google, Microsoft, Amazon, those companies and Apple are buying NVIDIA's products. Are they capable of developing GPU on their own? Yes, they are. Because so expensive, they are paying so much to TSMC. They don't want to do that. So they do their own R&D and those companies will develop their own GPU. And when that happens, the NVIDIA will not have any orders anymore. Maybe TSMC will remain strong. But the biggest problem for TSMC is that they are located in Taiwan because there's always blackouts in Taiwan. And earthquakes happen, and TSMC seemed to be impacted about 20% of the production. And for TSMC, they have established a very strong factories, but they are faced with geopolitical risks and the U.S. because they are moving into the production in Arizona or in Japan because of the geopolitical risks. And in Taiwan, there is shortage of water as well. In India, there's no infrastructure there. So Japan is the very limited number of examples of good infrastructure. In 1980s, we had more than 50% of market share for memory. Now all you need is foundry in this country, not the old kind of foundry, HBM Foundry. HBM is embedded in the GPU with logic. And that is not sufficient. Cooling system is very important as well. But it generates the 1,000 kilowatts the heat for cooling. And so everyone is buying out power or the companies are buying power everywhere. So in that Miyagi Prefecture, the nuclear reactor will be online again. The water is good. And in Kumamoto, it will be more difficult because you have to pump up underground water. So if you do it, the principle is that you -- we do not want to go too far, too deep in terms of CapEx because when it comes to semiconductor, it advances so quickly. The situation changes so abruptly. So it's so different from financial industry. But for Japan, it's something that we need. So we'd like to partner with the best one. And if possible, we would like to use this the location in Miyagi Prefecture, we would like to please people in Miyagi. I don't know if we can do it or not. But so far, when I want to do something, I always do it successfully. So I will do it again. So JPY 20 trillion of assets. And so overseas business. Overseas business account for about 12% of the revenue. And I would like to increase it to 20% to 30% in 3 years' time. The first time in 47 years, I went to Riyadh in Saudi Arabia, [ BAM ] Vice Governor. His Excellency, visited me. It was a very strong invitation. The other day, they came to -- he came to Tokyo, and he liked me so much, and he invited me to Saudi Arabia. And also I have met many people visitors from Saudi Arabia, including princess. The prince who is #1 in the gaming area, his excellency, not the crown prince but the prince in Saudi Arabia. In order to expand our business, it is indispensable. That's why I visited Saudi Arabia for the first time for 47 years. There is no direct flight from Tokyo. So I had to wait at the Dubai airport for 4.5, 5 hours. It was so cold because of the air conditioning. I wonder why they have to waste power so much there. So there's another invitation to visit there in 3 or 4 months period. And so next time, with the [ Riyadh ] air will yet to come to the other Japan several years. So I'm probably use private jet, so that I can go to [ Riyadh ] directly. I'm 73 years old, it is so tiresome and there will be the bigger airports in the South Arabia in the future. I think a long time ago, it was Kuwait when there was the biggest airport and the Tange Kenzo designed that airport, I think, and it was the era of oil and [ lots of ] capital went into the Middle East and I visited the region every 3 months, it was so, so hot. So I really didn't want to go to Saudi Arabia, but I did to expand our business. And I would like to delegate this mission to other people. We want to hire the new people. Now we have the short list of two candidates. And in June that they are going to join us probably to be in charge of the overseas business. After the 20% of the stake of Minami, will be obtained by the end of November. Currently, it stands at 19.7%, it is going to reach 20%, and they are going to be the equity mix of the company so that both entities can grow. Of course, the existing businesses on a long-term basis, for financial management, so Minami -- because Minami is deeply engaged in the employment, the finding job. And so that's going to be a good combination. So we would like to increase the revenue profit. The current level is not so bad either. It might not be as big as recruit, but we would like to make it as big enough to make a lot of challenges. So the summary of SBI Securities after 1 year of ZERO Revolution, JPY 18.8 billion of the profit loss. That was recovered by the increase in financial revenue, trading revenues and other commissions including advisory fee bank agency fees. As a result, the profit is on the upward trend in the U.S. such upward trend, but it was Robinhood to market, which did first, the other, ZERO Revolution . For them, it was easy because as long as revenue from Payment for Order Flow, PFOF, so meaning that we have many clients, and there are many orders flow, then you can get the fees from market makers. So it was easy for them. So Charles Schwab did the same, e-trade and everything. But in Japan, there's no PFOF, it is not allowed to do, and I find it wrong. The system should change. So in everything, we are behind the countries that is about the other financial administration with TSE at the top. The New York Stock Exchange was operating poorly. But with NASDAQ coming on and something like PDS or [ ECM ] as they call it, things changed. And that spirit, what is that spirit? That is protection of investors and also the profits of investors, secure profits for investors, not for securities firms, that is the spirit in the U.S. For example, the President of [BATU or the President of SIBO ] visits me, and they say the same thing. We go to the FSA all the time to make our own arguments. It should be 10% at least and that's this 10% rule, where did it come from? It's ridiculous, unreasonable. The story is there are always in Japan. So the first, we need to see changes in politics. We need to renovate financial administration. So on a quarterly basis, revenue is expanding very smoothly. Since the start of ZERO Revolution, quarterly revenue year-on-year basis, 15.6% growth. With ZERO Revolution, the biggest benefit as I'm going to touch upon later on, is the expansion of customer base. Customer base expansion. In what way stable system is to be established. That's the most difficult one because the number of customer increases significantly and JPY 18.8 billion of profit lost, how to cover it, and we have been working on that for the past 5 years, and we are still doing it and ultimately PFOF to be established in this market. Then the customer flow will have strong impact on the results. So in one year, the employees of SBI Securities increased only by 8%. But the volume of services and products increased significantly. So as you can see, the number of SBI Securities margin trading accounts have increased to sharply after the start of the ZERO Revolution. So it was 16.3% increase before the revolution, but after the revolution, 44.5%. So August 31, 2023, we announced ZERO Revolution. Open interest credit balance, the fluctuates depending on market conditions, but the baseline has steadily increased due to the expansion of the customer base. The trend of open interest credit balance and the financial revenue is record high, up 33.9% year-on-year. And the start of the ZERO Revolution plus 3.8%, that is for open interest credit balance. And the investment trust balance, investment trust fees, the expansion of the customers and the start of new NISA combined. So the timing was good. When we started the revolution that was the timing of the start of new NISA that was very important as well. So from the start of the revolution, 69.2% plus year-on-year basis while only 21.6% increase for the investment trust industry, investment trust fees,, record high, plus 43.9%. The employees increased only by 8% especially as of the end of September, the quarter-on-quarter in comparison, you might say that why the other personnel cost increased so much? Well, because of bonuses, new graduates. The first salary, I think we are one of the best or the best level among the financial companies. We raised it this year as well and we promote them their career, depending on the ability, quality, regardless of gender. So from savings to investment -- in 1974, I joined Nomura securities. I have been saying this all the time. And this time only, there is a shift from savings to investment with NISA and [ iDeCo ] new NISA, new [ iDeCo ] there are important elements. And also it was a very important factor that we did ZERO Revolution. Accumulation amount and number of accounts with set accumulation, an abrupt increase from here after the ZERO revolution. SBI [ RAP ], this is an automated discretionary investment service, topped JPY 120 billion in AUM in just 2.5 years. It is increasing very smoothly. So commission from foreign stock trading it's not 0. So the commission revenue is increasing, plus 76.7% in the first half for spot trading and for margin trading compared to first half before the start of ZERO Revolution, 3.5x. So here, we are gaining commission, and it should grow more and more. Trading revenue year-on-year basis, plus 20.9%. The revenue from FX trading, foreign bond sales both grew. This pink area that is crypto asset trading. And it is now categorized separately, differently. Probably, we shouldn't have on a consolidated basis for SBI Securities, but we thought that the crypto is too risky, negative impact for the ZERO Revolution. SBI Liquidity Market, which operates FX business in SBI Group, the profitability that outstrips that of its competitors up 38% year-on-year, the liquidity top customer basis increase and other players are not growing really and the trading of gold, silver and platinum has increased due to rise of geopolitical risk and weakening of the yen. We got the license, and we are doing this business as well. As it says, there are precious metals market, the business, which is still small. We need to grow it as well. Zero Revolution has greatly accelerated the expansion of SBI Securities' customer base as of the end of September. The 13.315 million accounts as of September '24. From 2009 on a CAGR basis, 13.5%. In the case of Nomura, 5.888 million counts. CAGR, only 1.8%, while we grew 13.5%. Daiwa stopped the announcement. And here, SMBC Nikko, the [ Friendly Securities ] was acquired. So this is the result. AUM of SBI Securities, JPY 42.7 trillion. At the start of ZERO Revolution, it stood at JPY 31.5 trillion. So the increase of more than JPY 10 trillion plus 35.6%, the quarterly stock trading value share of SBI Securities and 3 major face-to-face securities companies. So the Nomura securities, they are taking institutional investors so they are managing their customers the money without thinking about the trading cost. And I would say that is against the fiduciary duty because there is a company, which is doing the same thing with no commission. So that should be changed. There are so many things that should be changed. And we have to do semiconductor and others. So I'm overwhelmed with lots of works, but we need the personnel relationships to work on them, so I need to do whatever I can do. If we do all of these things, we will be -- well, already we are very highly evaluated globally, and our reputation will be even better. Share of trading value has increased rapidly following the start of ZERO Revolution, individual stock trading value, 57.2% of which share individual margin trading value, 60.7%. Transfers of assets between other companies at SBI Securities continue to be in excess of inflows. Since the ZERO Revolution, it's always excess inflow. Through ZERO Revolution, number of NISA accounts, we seek the top position. First, Rakuten beat us. Well, first, SBI beat Rakuten and then Rakuten, the economic zone credit, worked very nicely. And then Rakuten toppled [indiscernible]. But the customers of [ Rakuten ] and/or their economic zone are almost saturated. It's not about points like Rakuten points, SBI provides [ multi ] points. So whereever you go, well, Rakuten is not included though. Multi points the wisest way because there will be no saturation. That's the ABC of business management. So it's just a question of time. It's a function of time that we will beat Rakuten expansion of customer base through ZERO Revolution benefits, not only SBI Securities, but also the entire SBI Group, I think. So SBI, the ZERO Revolution impact is so big for all the group entities, and that is making very strong link among the entities the mutual trust over 25 years of history. So that will have rippling effects. It has been rippling out. For example, on a group-wide basis and look at the pace of customer base growth. This is when Shinsei Bank joined the group. This is when we announced ZERO Revolution, this is the start of it. And this is at the time when the ZERO revolution started, you could see that each milestone our customer base has increased. We have 51-point something million customers. That is the base of the SBI's Group. So Shinsei Banks, retail accounts or deposit accounts have been accelerating growth. Out of new account openings since the ZERO Revolution, more than 70% of new accounts opened due to referrals or customers being sent over from SBI Securities. This is the power of our ecosystem. 25 years ago, I proposed this idea, and we have been working on it ever since. This ecosystem is something I want to make around semiconductors as well. So that is why we've been talking about it and if we're going to make a semiconductor ecosystem, we would like to invest into venture companies or start-ups and create an ecosystem made of companies of high quality. So for accounts, we saw a 10.6% growth compared to September '23. And for deposits, it has increased by 9.1% since the start of the ZERO Revolution. This is FX accounts. The GMO Group made an acquisition here, and this is how they look like. But hereafter, the growth rates aren't that high, but our growth rates are higher, as you can see here. So it has a positive impact on the asset management business as well. For each of the funds, you could see the number here, but it's overlapping. So I hope you can change this later on in the Japanese version. You could see that fund balance has been going up by x amount of times. And we've been seeing inflow of funds into this business as well. So now upon summarizing the year, what are we going to be doing next for SBI Securities? Here, we show our challenges or what we're working on. You may have realized on TV that we've been featuring Mana Ashida, the actress, in running a new TV commercial, we haven't had commercials before, but it's highly regarded. And Mana Ashida was popular in the non-life insurance business, and her father works for SMBC apparently. So the leadership of SMBC was asking us to let them feature her instead, but I declined. So she's a very smart person and how should I put it? She's a likable and friendly person. She goes beyond generations and has a high acceptance. So the theme is ZERO Revolution and the theme is creating the future of investment from zero. We have also established a financial education promotion office as we see new customers come in, we deem that we need to have something like this. And there's more than 650 organizations from inception until October 17 to which we conducted training. So this is what we're working on branding as well as education. So for the corporate business, we used to be focusing on the retail business. So we're now also focusing on the corporate business. So we would like to grow the corporate business. The first step like I've been mentioning from before, is focusing on IPO underwriting. So we have SBI Investment and for the companies we invest into, the exit strategy would be an IPO. So then the securities leg of our group can do the underwriting. And because we have this kind of mechanism, out of the 34 companies that went to market, we were able to be engaged with 32 of the company. So our underwriting share is 94.1%. So when these companies go to market through us, market cap may be low at the time of IPO. However, they will entrust us with their assets, and that will increase [indiscernible] are those companies. They went to Nomura before; however, something happened. So they never went to Nomura again. And same thing for [indiscernible], they used to work together with [ Yamaguchi ]. So there might be companies of this nature. So we're basically investing into companies. especially because we make global investments, this will come in handy as the global markets develop. And these days, energy companies or railway companies and their bond issuances are areas where they're asking us to become involved and underwrite because we had dominance in the retail market. So whether it be for utilities, or for the railway companies because consumers use their services. So obviously, it's natural that they come to us. It's not just IPOs, but we are getting more engagement in POs as well. Next is M&A. For the M&A business, I used to do a lot of them at [Westerson and Pera] NWP, when I used to work for Nomura. But this was quite complicated because whether they are small deals, or large deals, the procedures are pretty much the same. So for the big brokers, they go after the bigger deals because the commissions are larger, but for medium size and below, SMEs is an area where people are not focused on. Of course, there are some people who do debt deals. But in our case, we have a good relationship with Tsuji Hongo. So together with them, we have set up a joint venture where we have 51% ownership and Tsuji Hongo has 49% ownership. And this business has been growing substantially because there is a need for M&A solutions for the smaller companies. And for accounting and tax accountants, they need them as well. So our relationship with these entities become stronger. Next is option trading. I've been saying over and over again that we should pursue this field because the size of the market has been growing larger overseas. And the more uncertain the market is, people go to options. For example, South Korea is a market where option trading is increasing, but it's not the case in Japan. Financial Education is not that great here. And it took a long time for approvals to come through for the individual option trading. But in the financial business, when I was at Nomura, New York, there was a test to become an option administrator as well as options manager. All kinds of tests were conducted and the tests are pretty difficult. But in the case of Japan, there needs to be more things of this nature. We need to have our people study more. So for futures and options, we are focused on expanding these services. It says here comparing against fiscal '22, '23 second half, we've been seeing it expand by 6.6x compared to the second half of fiscal '22. Many options, futures, [ minis ] have been increasing. So we're currently at 60.6 trillion and 459,000 accounts. But this is a very small number compared to the total number of accounts. So we have to grow this business even more. So we have to talk about how we can risk hedge and talk about its benefits thoroughly and teach our customers. And I think that's the mission that a broker has. iDeCo is next. So this is the next NISA. So [indiscernible] on it from early timing. From 2001, we set up SBI Benefit Systems and following 401(k) in the U.S. We have set this entity up, and it took a long time to become profitable, but we steadily focused on this business. And we were able to turn positive, and we made it free as well. From 2017, May, so it's individual-type defined contribution plan. That's how iDeCo is officially called although we call it iDeCo for short. Going forward, it's not just new NISA, but iDeCo will become increasingly important as well. From 2016 to 2024, CAGR has been 47.8%. The growth rate has accelerated. So in the future, when you think about your livelihoods, will you be able to protect your life? I think when I was watching TV the other day, for those people who are pensioners and what they're doing in their livelihoods. I think we are in a desperate situation. When you also look at the U.S., are they in a good situation. Whether you look at L.A. or New York, we have been seeing a surge of homeless people because of inflation. It has become more dangerous and there has been illegal immigrants coming into the country. So it's pretty much a matter of course, that Trump won the election, I don't look at news on CNN or other major media channels because they're lying. I knew 100% that Trump was going to win, and I projected that from early stage. And major university professors in Japan, what they're saying is nonsense. I really question why these people are serving as professors because Trump won and at that moment, they were still saying, we don't know yet if he's going to win. No, we did know. He was going to become the President 100%. So really, their education levels are really low, and I was really surprised to see what was happening. So when you think about it, who thinks Kamala Harris is going to win. If you are a decent person, you probably wouldn't have thought so. When you line up what 4 media outlets are saying, the location may have been different, but what she was saying was the same. Mainly, she was basically reading from script. So that kind of person will not be a President. In Japan as well, there were some people who abided to certain wise words from the past. But I question those people. People need to speak in their own words if you want to become President. You need to have the skill to think with your own brains, on your own feet, absorb knowledge, have a big picture in your head. If you don't have that, you don't have the certification to become a president because you are going to be held responsible. So iDeCo growth, we have been by far #1 in growth. So in October 2018, this was Tokio Marine actually, but we exceeded them back then, and we have been growing ever since. So this is something we would like to focus on even more. This is for the sake of the Japanese people. Under a zero interest rate environment, we used to be in a negative interest rate environment and 54%, if it's still held in deposits, that's nonsense. And during that time, the U.S. market was rising. And for 30 years, real wage has it went up by [ JPY 0.01 ]. We need to question this. The people of Japan needs to question this and change the leadership of Japan. So improving prices through use of PTS and dark pools. We need to constantly fight with the TSE. This is basically an alternative trading system. And for dark pools as well, we need to grow this even more. In the U.S., it has continued to increase in share. And within SBI Securities, the PTS ratio we need to do more. This needs to go up to about 40% to 50%. That's what I'm telling my people. It needs to continue to go up. And SOR, smart order routing, how can you get the best quote in your execution? You need to have this happen automatically that will reduce the transaction costs and it directly connects to fiduciary duty. I would like to tell the institutional investors that it will be a crime if they don't pursue this kind of path. [ SBI Cross]. This is a spot trade matching service for domestic stocks. By having the service, you'll cover 4 markets more TSE, [ J Market, X-market ] which are PTS as well as another ODX, Osaka Digital Exchange. And on top of that, SBI Cross you'll be able to execute orders with the best terms for the customers from 4 markets and SBI Cross. And payment for order flow at an early stage, we are voice to implement this, and I will be working against politicians as well. Recently, my voice is being heard amongst the politician base. Hagiuda-san , I was supporting him during the election. And he actually thanked me after the elections. And he also said that he will come and thank me in person in the near future. I think for the LDP, he is a necessary person to rehabilitate the LDP, and that is why I mentioned him by name in my blog to show my support. We have 1,500 investees, and there's many management among the 1,500 companies that we invest into. And there are companies that are residing in Hachioji, his voting base, and we had our people count how many employees live there. There were about 200 to 300 people. I didn't directly say to them to vote for Mr. Hagiuda, but I just wanted to know how many people are in that region so I had the HR people count. We have 19,000 people in total. So the 1,500 companies in our scale is quite different. However, they were supportive. Mr. Kondo from [ Nexis ] really worked hard to show his support. And even before me, before I wrote my blog, he also was working on many things in order to support Mr. Hagiuda. They have a passion leader meeting, and he heads the SMEs that is comprised of 3,000 companies. And he had a meeting. We need a person like Mr. Hagiuda or else, I am apprehensive about the future of Japan. We can't continue to have generation-based politics administration. The Minister of METI, Mr. Saito from the past was a very competent person. Those are the type of people who should be at the top. And Ms. Takaichi, she's a little tilted in her philosophy but I had dinner with her several times, and she is a very competent person and she was also in the technology space in the past so she is very knowledgeable. And I think she's a hard worker and she studies a lot. So people who are knowledgeable and people who have a ideology, as long as it doesn't contradict, I think that's very important. Since the acquisition of Shinsei Bank, we've been concentrating our resources to Shinsei Bank, we announced that in May '22, and SBI SECURITIES used to be our focus, but since then, we decided to concentrate our resources into the banking area. And we actually changed the order of how we report. Banking is now first. It's not that we're neglecting the Securities business. But from here on, as interest rates are going up, we believe our focus should be Banking. So this slide, our total assets are shown here. We have banks across the world. We're at JPY 32,588 billion. So this grew by 48.4% compared to when I made the announcement in March '22. So SBI Shinsei, when we bring the people over to Singapore to lead the business, people who are originally from securities, investment, and banking, what we're doing right now is we are reallocating people. For example, in Vietnam, our ownership is 20%. However, it has a value of more than JPY 50 billion because it is listed. You probably are not aware of this. There was all kinds of lies in this, really bad magazine about the fourth mega bank concept. All wrong. Those magazines, I really hope you don't believe what they say. The only thing you should believe is my words. So three-year summary of SBI Shinsei Bank is shown here. First, at the time of the acquisition, we announced the mid-term management plan in May '22. So the financial targets are broadly achieved. In 3 years' time, for public funds, I mentioned that we would like to prepare to start returning funds. And Mr. Kawashima became the President of SBI Shinsei and he only took another person. The rest of the people were originally SBI -- Shinsei Bank employees. So executive officers, executive leadership, I talked with them over and over. Mr. Kawashima personally engaged, taught his people how to engage in sales, and he is a person that I have trained for more than 30 years. So truly, I think he really works hard. And Shinsei Bank is working on integrating with SBI SECURITIES or SBI Group. And as it pursues that, it has changed dramatically, not just Shinsei but Shimane Bank as well. Before we made contributions in the second-tier banks, it was at the very bottom of the ranks. But now it has went up the ranks. It's about mindset change, have a strong determination. Yes, Dr. Yasuoka's word is what I have been communicating. I think there is two books and sending over those books and Sontoku Ninomiya's movie, sending over copies of the DVD is what I've been doing in order to promote mindset change amongst the management. So that is what I've been doing for the past 25 years. And that is why I've been able to establish a group comprised of 50,000 people. And I think what I've been doing over the years has been right. By just sending 2 people from our group and centered around SBI SECURITIES as we promoted integration with the SBI Group, Shinsei Bank changed dramatically. However, there's still much to do. For the medium-term management plan, when we made the announcement, for March '25, we set the target of reaching JPY 70 billion. We're currently at JPY 44.3 billion. But if you double it, it's exceeding JPY 80 billion already. So we are sure that this JPY 70 billion can be reached on a consolidated profit basis. And also, regarding synergies with the SBI Group, our target was JPY 15 billion but we're already at JPY 12 billion at the half term of the year. So there is some reference material about the details. I hope you can take a look later. Look at the number of accounts and deposits. For retail accounts, we're currently already at the 3.8 million was the target but we're already at 3.66 million. As of end of September, we were at 3.66 million. And before it joined SBI Group, the accounts were not really growing but ever since it joined the group, it has gone up substantially. And look at the amount of deposits. It used to be JPY 6.5 trillion, JPY 6.3 trillion, in the Kudo former administration, it was only -- it was lackluster, but now as of end of September, we reached JPY 12.5 trillion. So this is a fact. And I threw away the magazine that was telling all these lies. And I told them, never subscribe to that magazine again because it was nonsense. It was bad for my eyes. And mentally, it just made me really mad and angry so I decided not to read it ever again so that I could feel peaceful and calm at 73 years old. However, I am ever so motivated when I see those things because I'm a fighter. I have a fighting spirit. So Shinsei Bank's operating asset balance at JPY 12.7 trillion. Before it joined the group, it was at JPY 8 trillion. It was hovering around that level but it continued to grow, and we're here right now. The balance sheet. In just 3 years, we've been seeing an expansion substantially. JPY 12.5 trillion is deposits and it's balanced between individual and corporate deposits. Individual deposits increased by JPY 1.3 trillion compared to March '22. For corporate deposits increased by JPY 4.8 trillion compared to March '22. So I often say to my young people, when you're looking at companies, you shouldn't just look at their income statements, their P&L. You should look at their cash flow statement as well as their balance sheets. That is how you should assess companies from every angle. For SBI Shinsei, they have been making great strides in improving themselves. So this is the trends of cash flow. So they joined SBI Group and this is how they look like right now. So this is the integration strategy. We've been progressing this and SBI Shinsei Bank and SBI Shinsei Wealth Management's co-managed store. It is called that name by doing that together with SBI MONEYPLAZA. And the AUM is drastically increasing. This is the AUM in SBI Shinsei Wealth Management. And it's up to 18 but we're aiming for 22 stores. Excluding the sub-branches, we are going to have these co-managed stores. And the product lineup is extremely important from fund wraps, to real estate security tokens, and alternative funds. Various new things in addition to the bonds and securities, they have many products they handle, and they will have to be able to provide insurance. MONEYPLAZA actually handles insurance as well and also the real estate type of products as well. But such a product should change, and I would like to promote that actively. Promotes various measures to apply expanding the retail base. Implementation of benefits program in ordinary yen deposit accounts to holders of SBI SECURITIES accounts. This is the true integration of bank and securities, and the preferential interest rate of 0.30% per year and 0.239% per year after taxes. And we will have the, preferential mortgage rate to users receiving Moge Check home loan comparison analysis. ARUHI, Shinsei, they do have the housing loan balance that is equivalent to the mega banks. But however, there are still things that we need to do reading the reports. First of all, their spirit needs to be revisited is what I think recently. So at a very early stage, I would like to work on that as well. Doing everything is impossible so I'm going to ask Mr. Takamura to take the lead. Diamond Asset Finance, it took about JPY 200 billion. We acquired them, made them a wholly-owned subsidiary in January of 2024. And this also, once they joined our group, suddenly revitalized and grew 4x year-on-year. And in the wholesale business area and has also expanded dramatically due to the vitalization of sales activities and strengthening of cooperation with the group. So the corporate activities and financial corporations network has increased and also distributions to regional financial institutions, et cetera, they are growing. And Shinsei Bank has made partial acquisitions of the shares of NEC Capital Solutions, 33.3% of voting rights. And now it is equity method applied country. And they have about JPY 10 billion of the negative goodwill under the J-GAAP. This is going to be posted in the third quarter. But JPY 70 billion -- but just as a negative -- we had JPY 70 billion so this JPY 10 billion is going to be offset easily. But that's going to be outside the accounting journal and it is going to be able to reach a sufficient level. Reorganization between the SBI Group and SBI Shinsei Bank Group, Shinsei Investment Management, SBI Asset Management will be merged and the Shinsei Corporate Investment will come under the SBI PE Holdings, and they will all be lined up together. So they will go under the holding company. And Shinsei Securities, transfer of securities business to SBI SECURITIES for integrating the overlapping operations. So we are going to improve the deficiency by JPY 1.5 billion. And the new fund, so between the Sumitomo Mitsui Trust Investment and Shinsei Corporate Investment, we will have a new fund. So this is the former Sumitomo Trust investment. And from the government of Tokyo, we have received JPY 3 billion and is going to arrange a JPY 10 billion fund or I did talk about Singapore of the exchange of executives. The lady that was in SBI SECURITIES, she's very capable so we brought her over here to us. And keeping in mind of both securities and bank, I asked her to conduct the sales activities. And from Kawashima-san's -- Mr. Kawashima perspective, that was a loss. But when I think it's going to be a win-win, I will bring in people from other companies. I talked about Singapore before. Within the internal recruitment system, we're going to have SBI Group and Shinsei Bank Group recruitment system. And this is the growth strategy for the future. So this is going to become the core of the wide-area regional platform. This is the fourth mega-bank concept is going to be embodied. And within this concept, what was indispensable was Shinsei Bank and that became into our hands. And with this, finally, we will be able to move this forward in full scale. We are prepared for it now. Improvements in efficiency and the expansion of our business scope through wide-ranging collaboration and aim for wide-area regional platform. SBI Group has alliances with over 100 regional financial institutions nationwide. Before Shinsei Bank came, they're all the regional -- the first-tier regional bank, but after Shinsei Bank joined us, the second-tier regional banks also have joined us and the relationship becoming closer and closer. So SBI Shinsei is, whatever it took, we needed to have them join our group. So as it was a hot topic before, 20 years, had the borrowing of JPY 350 billion of the Japanese people's tax, and they were called a robber. But the politicians and FSAs said, yes, it's working. And the bank's TOB was embodied, was realized, and no one imagined such thing to happen. And steadily, as I have imagined, things have moved forward. That is the current situation. And currently, Shinsei Bank and the regional banks participate in loan deals arranged by SBI Shinsei Bank, JPY 2,001.1 billion (sic) [JPY 201.1 billion], with 11 regional banks with the term loan will arrange a total of JPY 10 billion amount. And this term loan is the Rester semiconductor wholesale company, and we bought this company to include this semiconductor company in our ecosystem. And we partially bought this because the semiconductor is going to have quite a momentum moving forward so we believe we can generate certain profit. So we will be able to make a certain level of profit and sustainable finance. And by utilizing that at the first half, we have arranged a JPY 360 billion of finance. And provision of expertise and promotion of exchange of personnel. From 12 trainees we received from 10 regional banks, mainly from the structured finance department. FY 2022, it was 19 banks and 27 trainees since then. That is the current situation. So with the regional banks, the relationship with them has become extremely strong. For example, we conducted the semiconductor seminar in Sendai City, and we believed the lecture room of [indiscernible] Bank and including the president of the bank, the room was full, so many people have attended. And the other day, we celebrated the 25th anniversary, and 700 people for the night time session and total of 2,100 people, the total number of the day session and night session has actually participated. And within that, how many presidents of the regional banks or how many promising banks or a leading bank, regional banks and leading politicians were there or the top management of the leading corporations attended? Everybody was surprised of seeing the attendants, and I have received many phone calls or congratulatory letters from many people. The current stage that SBI is at is different from the past. Moving forward, the stage is going to be further escalated or go above. But we have to be careful that we don't fall out from the high position. Yesterday, for lunch, what I ate with a CEO of a company, and this person came from the U.S.A. And this is a person that you are not able to frequently meet up with. But that person dined with me and I was able to have a long discussion. We are already at that position or at that stage. So the further we go up, the concept that I have in mind right now, it's going to be easier to embody the next-generation account system. What came to mind when I saw the regional banks is that this account system needs to be changed from the fixed cost to a variable cost. If not, they will have a high amount of depreciation and the profitability of the regional banks will not go up. I approached Hitachi first, they reviewed a lot of things but they said they can't do it. And then finally, we found somebody who will do this with us. That was Future Architect, and finally, from July 16 of this year, they started the operations. After next will be Shimane Bank. And then for the performance improvement of regional banks, I said that we need to do 2 things. It's to have advanced operation of the bank operation itself and this accounting -- account system. We need to improve it. And all the major banks, once every 10 years, renew their account system and spend tremendous amount of money between JPY 5 billion to JPY 10 billion. And the banks cannot bear the depreciation. So by changing this fixed cost, variable cost, let's pay every year like this. This is the business succession fund. With JPY 100 billion, I said I will create it, Fund 1, Fund 2. As we have the new 1, the amount will go up. So it's JPY 10 billion, JPY 31 billion is going to be JPY 100 billion. [ Mr. Imai ] is the president. He has got quite of a good sense. He is handling the business succession of high-quality companies. The difficulty of this succession, wanting to do and identifying companies, that's easy, but how are we going to link them to people who want to buy these companies? This is the difficulty in the general M&A. But when it comes to business succession, it becomes even more difficult. However, the performance is increasing largely. Furthermore, for the regional financial -- to the regional financial institutions, we created a fund together to back up the local TOWA SBI Customer Support Fund was established or founded in January 1, 2021, Tsukuba SBI Regional Revitalization Fund founded July 21, 2021. Tsukuba is a science university city so they are suited for this. And also TAIKO SBI Regional Revitalization Fund. This is reflecting that local characteristics. Repayment of the public funds by SBI Shinsei Bank, which is the SBI Group considers as a great cause. JPY 19.3 billion has been repaid. And first repayment of a portion of public funds in nearly 18 years. This is what is going to be. And in addition to that, the 3 shares out of 7 held by S-Grant, we took 2 and Shinsei took 1, and our interest became close to 70%. And we have the special voting rights because we are above 2/3. So we can do various things. And without doing various things, how can we exit? First is that JPY 70 billion and JPY 15 billion, the things we have committed to, we need to break through those or achieve those. And we are having -- already having visibility that we will be able to achieve that. As I said, the deposit balance, March end of 2020 was JPY 6.3 trillion, has went up to JPY 12.5 trillion as of end of September '24. In Japan, the interest rate will further increase but the United States have lowered it, and it will be further lowered for sure. Operating asset balance, the people who come to us are very weak. The governor of BOJ, academic people are weak. Even though they're academic people like United States, they have to be sharp people. What's interesting is that Trump was mumbling something and he was mumbling something, so that middle to old age person does have certain strengths. And those type of age person has to have a courage and make a decision. Well, in the 30 years of deflation, well, the monetary policy for a second, it did work, but the interest rate has to be lowered and normalize the situation. But the BOJ continued to say that still deflation, deflation, deflation. And I really thought that politicians are mute to economics. And I looked at -- I read Mr. Ishiba's book, which is 300 or 400 pages but I only read 10 or several pages. But I found that he has no knowledge about economics. The most important element is economy. As Marx has quoted, the economic structure, on top of that, the job structure is on top, and the stock market structure is the economic structure. If that crumbles, the economy will crumble. So China, I think, will crumble as well. 8% economic growth rate, you will have to have that. We said the Chinese economy will face a danger and there will be a social instability that's going to occur. And look what's happening over there now. Economic growth rate at this point is a question mark, we don't know. The economists, one after another is changing their forecast, it's dangerous. And the U.S. is looking at China in the same way. And the Arab countries are the only ones that are looking towards China. So what's going to happen? First of all, the must is to achieve our target and we will be able to. And if so, my way of thinking, as soon as possible, repay the balance of the public funds, about JPY 100 billion all at once. So from here, FSA and the deposit insurance company or the Resolution and Collection Corporation will have a discussion, and I'm going to directly go have a discussion with the minister. And in various opportunities, I would like to have a discussion so that I would like to pay back JPY 100 billion as soon as possible. This saying that by the end of March of 2025, I have no intention at all, after faithful discussion, et cetera, et cetera. So I want to do it earlier. I will resolve this, earlier than this. And last time when I spoke at the year-end financial results session, when we complete the repayment of public funds, our potential growth of our banking business is going to happen. Well, it will be like this. So I will disclose this information. In the market down, it was JPY 10,000. It was JPY 8,720, the IPO price. That was the price. But now it's close to JPY 40,000. The Dow Jones, well, how much is that? If it becomes like this, what's going to happen to the share prices? The business performance has improved steadily. And moving forward, my next target is I think I can exceed this JPY 76 billion easily in the full year results. If you triple JPY 44.3 billion, it's JPY 88.6 -- or double, excuse me, double JPY 44.3 billion is JPY 88.6 billion. And various things will occur and the stock market will go up and down, but I'm thinking of things based on that things will move. But whatever it takes, the group as one will achieve this numerical target. And after that, I am going to conduct the thorough negotiations. Strengthening Asset Management business to develop new revenue stream. I already said that JPY 20 trillion. Well, March end of 2017, it didn't even reach JPY 1 trillion, and was at JPY 3 trillion, JPY 5 trillion, we had JPY 10 trillion as a target, and we have achieved the JPY 10 trillion of AUM. And this is showing that 2018 September, the group-wide AUM reached JPY 1 trillion, and that reached JPY 5 trillion 2021 September, and May of 2024 has exceeded JPY 10 trillion. I said JPY 20 trillion. When I said that, Mr. Asakura said, yes, we can do that. However, but probably, you all thought that it's impossible. The range of the management period was not enough is probably what you thought. The good thing about our group is that what we say, will definitely be done. And that is a great cause of our group. That is why we have to do it. If we try, we can do it. That is the spirit we have, and for us, achieving the JPY 20 trillion. And we are going to be leading asset management company in Japan. And then we will look into the world towards that JPY 100 trillion. The Japanese yen, JPY 2,200 trillion of individual money exists in Japan. And if we can use that, there's so much potential with just Japan. And the individual financial assets, lucky or not, the deposit is at 54%. And when these people have this sense of crisis that they cannot stay as it is, that's when things move. The TV or the newspaper or the media, the people who are living on their pension money, they should report how they are living in an accurate manner to make it in a way that politicians will feel that something has to be done. That is going to be the public benefit. And by seriously pursuing that, it's going to lead to revenue. Well, SBI Global Asset Management AUM approximately JPY 6.4 trillion and active, JPY 3.1 trillion. Private equity, this is -- I have to make it JPY 1 trillion but it's JPY 0.8 trillion. Alternative, JPY 10 billion. M&A, with these, AUM is going to increase further. And ORIX has a very successful asset management M&A as well. And then we have [indiscernible], which has succeeded. I wanted to buy that. But at that time, we were not able to. But if it was now, we can acquire a certain size. Expanding the product lineup for corresponding new NISA and investment in growth markets. The new NISA product lineups have been expanding by group entities and very good names listed and high dividend equity funds, both in Japan, U.S., and Europe. I have bought them on a personal basis. Of course, we need to be careful about insiders, but these things we can buy. I was not engaged in such investment, but the high dividend equity fund was interesting. The All-World High Dividend Equity Fund, so AUM, the dividend yield forecast at 4% and October 25, it started on the 1st of October. And on the 25th, it's already JPY 5.597 billion. That's very rare. The commissions are very low. Fees are very low. It's not 0 but very low. And here is the SBI Okasan Asset Management Fund, the Asia Semiconductor Focused Fund. It's interesting. As of the end of September, as much as JPY 24.2 billion, that's the total asset. SBI Asset Management, Japan's first Saudi Arabia ETF, exactly when I was in Saudi, this news that came out and that's the plan of Asakura-san. So in Saudi, it was a big news. PIF from May, it's about Mizuho and they also made an announcement on newspaper. Where the PIF-related news, that usually makes a good news but the Mizuho didn't do that. But I think it was Nikkei newspaper which wrote the article and Mizuho related the news. In May, we made announcement, Nikkei wrote about it about SBI. About PIF, I made my argument. His excellency from Saudi was there in Japan, and so I made an announcement. But the Megabanks in Japan are not even thinking about ETF. They are thinking about lending overseas. But Saudi Arabia, you might be thinking that they are very rich but they are spending so much so they have to do some funding. Saudi Arabia, that's their status. So the mechanism is described here. I, myself, bought this Saudi ETF to know what kind of [indiscernible] are there and what kind of economic growth will be achieved. And for that, we need to look at the portfolio itself. That's the best way to study about it. That's why I bought it myself. Collaborating with leading global asset management companies to launch new investment products. With Man, we made this the joint venture fund. This Man Group has a very interesting asset management approach, alternative fund, JPY 12 billion, that's the net asset. Only in 32 business days, more than the JPY 12 billion, so it's very, very successful. It is conducted, operated by this the lady, the. So Man Group, JPY 26.5 trillion of total investment. I said JPY 20 trillion, that's meaningful. It is the globally famous Man Group and JPY 26.5 trillion. And Franklin is also the CEO is a woman. She's a very interesting person. Again, I always have a dinner with her, and she was very active in M&As and the net asset is increasing so much. ETF and the Indian equity are included. They bought Templeton, that's big, to increase the asset size. When I was in New York, I visited Templeton often. They bought Templeton, JPY 265 trillion, that is AUM size. Focusing on alternative investments to diversify the investment products and enhance performance. So KKR is the other focus, the joint venture with KKR. KKR usually doesn't form the joint ventures with anyone, but we convinced them to form joint venture with us. And I expect the very strong sales. KKR investment platform, JPY 96.8 trillion. KIT, KKR Income Trust, or KIT, it's about private debt. KIT with private credit strategy. JPY 16 trillion, growing very fast. So strong for credit. So very good combination with the Arab countries in private debt. KKR, The strength is the direct lending and asset-based finance combination. I think it will be very well accepted among institutional investors, overseas markets as well. So in Saudi Arabia, the ETF #1 player there, we are going to sell Japanese ETF there. We are going to set up joint venture there, and we are going to make the formal announcement in the future. And this is the KKR joint venture, and this is to provide -- offer a private debt fund to domestic institutional investors, and this is to attack private investors. We are going to allocate management resources to countries. The G7, the average 6.8%, but the Japanese number is much lower than that. More than 30 years, I'm 73 years old, and in January, I will turn 74. I have sufficient asset so I will be fine, but you need to think about your future. If not, you cannot survive because the current pension system will collapse, insurance collapse, the insurance provided by the government, that will not survive and education, tuition is rising even among the national universities. And interest rate is not normalized yet and the yen is getting weaker. And India is the collecting the capital because 36.9% of the GDP strength, the growth, 35.5%, 34%, 32.8% in the countries like Philippines, Cambodia, and Vietnam, that's why we have been focusing on these countries. In China, much lower, 20.3%. But announcement by the government is this number. So it's a question mark whether it reflects the real economy. Overseas business was counted for [indiscernible] in the total assets. And the major companies are listed at the bottom in terms of asset size, and SBI Group has extensively expanded its financial services business overseas with a focus on Southeast Asia. For example, in Cambodia, securities, SBI Royal Securities, we have 65% established in February 2010, only 1 Japanese securities firm. Banking side microfinance company was acquired and converted to the bank. SBI LY HOUR Bank, we have 70%. And the insurance business that they had, we bought 40% of which. So these are the 3 bank securities insurance in Cambodia. And in Russia, we have SBI Russia. We have a 90% stake, SBI Bank in Russia. And in August 2017, all the Japanese players withdrew from the market. But now this SBI Bank in Russia is very profitable. In the U.S., there's a telephone call from the Ministry of Commerce saying that they would like to use our bank in Russia. And I instructed the Russian company to say no to that request. This entity in Russia doesn't need to obey what the U.S. says. The Russia-Ukraine war, about that war, that Trump is saying that he is going to end that war in a day, maybe not in a day but could happen in a very short period of time. So it's very important for us to have this business in Russia. And I just instructed the SBI Bank in Russia not to be thrown out of Russia. Aikido karate, Mr. Oyama, the very, very -- the famous, the master and one of his peoples is involved in this entity, and he had this stomach-ache and the appendicitis. And he went to the nurse station and the nurse scolded him. It was a scary experience and he regained his health anyway. And he had been training himself physically and mentally, and that's very important. The SBI Savings Bank in Korea that we hold 100%, it is not becoming the regional bank. What is the potential of having this bank? There have been some internal discussions on that among the directors of our group. As to TPBank in Vietnam so the 20% ownership is the upper limit. And so we have 20% and a very good entity and JPY 260 billion of market capitalization. And FPT Securities with 24.44% of ownership, and we have 1/4 of the market cap so JPY 20 billion. And as to MB Shinsei Finance, which used to be held by Shinsei, it's a good entity, too. We have 49% ownership. So the former management invested in this one and the good ones were disinvested earlier. In Indonesia, BNI SEKURITAS or the BNI, so 25% is the ownership. Latitude in Australia, UDC in New Zealand. This Latitude and UDC were held by Shinsei. Southeast Asia and a high-growth area are captured, and this is their performance. So with some entities, we are using the January to September period, and we are seeing some recovery for SBI savings and JPY 2.2 billion for the first quarter -- I'm sorry, for the January to September period in Russia, and 189.5% for SBI LY HOUR bank and TPBank, 10.2% dividends are good, too. As to securities, as you can see, we incurred some losses in Thailand. The financial conglomerate in Thailand is very strong. They list their subsidiaries and they buy their subsidiaries from the market, and we should not be involved in such transactions. The GMO actually did involve in that and it incurred JPY 40 billion or so losses. There is a certain Japanese online securities firm, and he went to Thailand and he joined our Thailand -- the Thai entity and he was not good. But the GMO hired him and they incurred losses. So non-bank listed here, insurance in Cambodia, they are going to grow a lot. And so we are going to penetrate into the market more. So SBI Savings Bank, at the peak, JPY 34.2 billion; and SBI Savings Bank, the NPL ratio is coming down to 4.7%. It used to be 51.6%. That's the delinquency rate. But the real estate was the area that we did not operate. The TPBank is moving on very well, JPY 31.7 billion and the SBI LY HOUR Bank from microfinance and then the bank. UDC making profit, positive profit with JPY 9.8 billion, the net operating profit and gross operating profit, the JPY 9.8 billion and JPY 14.2 billion, respectively. Overseas investment activities. So for investments, we started investing. So for China, just as 1 single person, a Japanese was sent over. Right now, it's 0. We don't have any Japanese presence there anymore. Mr. Miyazaki used to be there. He's been there for more than 5 years, separated from his wife so he came back. Now he's in Japan. So there's no expat presence in China but we're still doing well. And we have been able to expand the business quite a lot. So BRICS, targeting BRICS for business expansion, where high economic growth is expected. So 4 countries became 5, and on top of that, the new member countries have been added. On top of that, an additional 13 partner countries are expected to be added on. For nominal GDP as well as population, it's going to be a big group. So we shouldn't be in conflict with these countries. We shouldn't fight with them. That's what I'm telling my people. And for currencies, Pax Americana, it took about 50 years to reach that status. it will still take some time but you never know if the U.S. dollar is going to remain to be the key currency. It really depends on Trump as well, I think. I thought that countries like Russia, if they were moved out of SWIFT, they won't be able to bear it. So focusing on investments in the Middle East, we have been working on various things. So this is when I visited. This is the Ministry of National Guard Health Affairs' CEO, his excellency, he is the head. And I also met the Head of MISA, Ministry of Investment for Saudi Arabia. Just in order to meet me, as PIF was underway, there were 16 meetings set up, but this gentleman took the time -- this person turned this oasis after 40 years into this amazing garden, and it was breezy when I went. And you have -- it's very big, so you have to drive through it on a cart. And this person actually drove in order to meet me. So I really thought as an afterthought that it was great that I was able to go. So for investments in MISA, we are trying to establish a health fund. This person. This is one of the largest ICT companies in Saudi Arabia. The Chairman of NTG met me as well. This is called an Arabian tuxedo. He gave it to me as a gift. And this gentleman is from the Zamil Group, which is the largest conglomerate in Saudi Arabia in petrochems. They started from petrochems. And right now, they're focused on Southeast Asia as well as India, engaging in the steel business and their personal total value of JPY 40 billion. And this gentleman continued to hold my hand and wouldn't let go and continued to hold my hand as we head towards dinner. This person is from -- this picture is from BIM Ventures. We concluded a contract over there also. But BIM Ventures' Chairman, this is actually his house. All these famous people attended this meeting. I'm right here and we had chat before we had dinner. And their mansions are like a hotel's lobby. And this person, this person is from Saudi Aramco. He actually allocated an hour of his time to talk about technological innovation. He's the CEO of Saudi Aramco. So it's been about a 2-day trip and I've been able to meet so many distinguished people. And I don't think there are any other Japanese people who have this opportunity. Like this person, we talked about biotech and healthcare. And there aren't any tech heads who are able to converse in that manner. Whatever it be, from IT, fusion or semiconductors, I'm able to talk about whatever topic. So everybody was quite surprised. Africa is a region we also need to go out to. We engaged in a partnership with Novastar, and we made investments into these entities. So for the overseas operations, as our group increases, we would like to bring profit before tax to 20%, 30% of the overall group profits in the future. And we have been increasing headcount as well who are well versed in English as well as in Chinese. People who are multilingual in 3 or 4 languages, we have a lot of them in our organization. And the head of the International Business Department, we are trying to attract a person who is VP class, and we currently have 2 or 3 candidates that we would like to select from. Next-generation growth areas, digital assets. For crypto current assets, the total number of accounts are now at 950,000. We might easily exceed 1 million. And for staking services, we have been focused on this area. According to the amount of staking, you are able to become involved into approvals as well as blocks, and you are able to receive a fee in return. And for VC Trade, BITPOINT is what we acquired, VC Trade, BITPOINT. We have all these new currencies. And Elon is doing doge in India so all these new things are increasing and emerging. So Elon Musk is engaged in doge. And when he talks about it, it continues to rise in value. Oasys, this is around games. Saudi Arabia, 67% of their population is called gamers. And the Prince is also leading an initiative around games. So this is a blockchain platform that is dedicated to the use in games. And we engaged in a partnership with a company that's engaged in that solution. In SBIVC for Prime, we are going to do this kind of trade service for large corporate customers and also cryptocurrency ETFs. Franklin is actually strong in this space so this is something we would like to do in Japan. But the development of law is necessary. Also for Web3, I got a lot of things around this, but for WebX, I was a part of it and I delivered a keynote speech. And there were a lot of foreign participants, and there were a lot of Japanese attending as well. WebX Osaka, at this timing, at the time of the expo, we are going to be conducting this WebX Osaka on a joint basis. And for the foreign investors or IT companies that we invest into, there's about 1,000 companies that we invest into that reside overseas. But we would like to have them attend. And Osaka Financial Center is what we would like to realize and we would like this to be a good opportunity. So because of COVID, our plans were delayed. However, we made -- we did Dojima for revised futures market and we also did the exchange. And we will be doing options in this area. And regarding carbon neutrality and emissions trading, this is another thing we would like to do here. So this is also expo related. This is about WebX that I was referring to in 2025. And this is R3. At the same timing as Ripple, I made an investment here and their technology is quite good. Corda, the program, Mitsubishi UFJ Investment Trust has been adopting it. And for doing trade finance, you have to use Corda. What we're doing right now with Machinowa, which is a local wide area currency is what fits here. But for AsiaNext, we've been doing joint ventures in Singapore. Chiliz, a strategic partnership has been concluded. They are the largest sports token platform in the world. So we've been working on various things. I would like to see more progress here. So November 2023, we formed a capital and business alliance with Mynavi and our ownership will increase from 19.77% to 20% by November '24. And we would like to enhance a win-win relationship and enhance corporate value on both sides, and we'll be engaging in various initiatives. So this is a welfare fringe benefit service. I was listening to what the Mynavi people were saying, and Derisasu sounds like delicious and it's the name of their service, which is fresh vegetables and so forth are provided to their employees at a low price because of the inflationary environment. So I asked my people to implement this service, and I think many of them are taking advantage of it. And also for hiring, this is what Mynavi has strengthened and we would like to combine that with business succession. And this is about a career assessment and life planning that can be combined together. So wealth adviser or Mr. Asakura will be covering this part in his business. And this is some reference material where we talk about the details of synergies. And we are currently close to 52 million customers on a group-wide basis. And the number of -- we sold some companies and we liquidated some operations in China and reduced the number of headcount. So this is where we stand. We now have, from 19,000, it declined by 400, 500 people. SBI SECURITIES, there is a team that is engaged in systems in Dalian, China, but I have asked my people to reduce it to 0 and transfer it to Vietnam because personnel costs are lower. And politics in Vietnam at a point was unstable. However, right now, together with FPT Group, we have established a joint venture. And what I think is interesting is the FPT Group, together with NVIDIA, they have engaged in a partnership. And from NVIDIA, they make about 3.5 million there but only about 10,000 come to Japan. But there are 7 countries that can enter the country and they're one of them. And a good, high-quality data center is being developed, and they were saying that they want to work together with us. So I said, yes, that we will go ahead with this plan so we're working on this. For shareholder composition, the balance is becoming better. Foreign investors, 33%, as well as institutional investors, 25%, individual 25%. So things have been trending steadily. There has been a great amount of slides today and I went through each slide quite diligently. And I think I talked quite a lot in detail so time has passed quite a lot and I just have dinner left, so I could take questions until half past. Please go ahead. [Statements in English on this transcript were spoken by an interpreter present on the live call]