SoftBank Group Corp. (9984) Earnings Call Transcript & Summary

Thank you very much for joining. Good morning, everyone. Now we'd like to start the SoftBank Group Corporation Investors Briefing on the earnings result for the 9 months period ended December 31, 2020. First of all, I'd like to introduce the representatives from SoftBank. Mr. Goto, Board of Director and CFO; Ms. Kimiwada, Corporate Officer, Senior Vice President and Head of Accounting Unit; Mr. Navneet Govil, Managing Partner and CFO, Softbank Investment Advisers from U.S. This session starts with the overview of our consolidated results by Ms. Kimiwada and a financial update by Mr. Goto, followed by SoftBank Vision Fund update by Mr. Navneet Govil. You can choose either English or Japanese for this meeting, and we can take both English and Japanese questions within Zoom after the presentation. Materials for today is available at our corporate website. Now I'd like to invite Ms. Kimiwada to talk about the consolidated results, please.

Good morning, ladies and gentlemen. My name is Kimiwada from SoftBank Group. Let me walk you through the consolidated financial results from accounting perspective. Please go to Page 2. This was already announced 2 days ago so I'm sure you're familiar with these numbers. As you can see, income before income tax, JPY 3.3 trillion. Net income, JPY 3 trillion, far better than the same period last year. And gain on investments are shown at the bottom. For the 9-month period, we recorded JPY 3.7 trillion. Breakdowns are: JPY 846 billion for investment business of holding companies, again from SBG and SBGI businesses and transaction in Sprint, T-Mobile in the first quarter. And as SB Northstar -- before SB Northstar was established, investment in -- invested listed securities are included here. When it comes to Vision Fund 1 and 2, details will be covered later in Navneet's section. And other investments, which is about JPY 224 billion, mainly of gain from Fortress and LatAm Fund. That's the summary of consolidated results. Move on to Page 3, please. Change in reportable segments, which I talked about at the previous meeting. From last fiscal year to this fiscal year, we have made changes in segments. Brightstar was sold. So now Brightstar is not in a segment. And for FY '20, we added a new segment, which is Investment Business of Holding Companies segment. Moving on to Page 4, entry into agreement for sales of all shares in Arm. This is the overview of the transaction. In the previous quarter, Q2, we showed you a similar slide. And likewise, since this is very important, I just want to remind you this agreement. Well, it's not closed yet so numbers are not finalized. But just to give you an idea, part of consideration will be received in the form of NVIDIA shares. And for earnout, either NVIDIA shares or cash will be received. At the closing, it depends on how much NVIDIA's share is priced at. But just so you know, $484 per share is the price when agreement was signed. And as of February 8, just for your information, the share price was $577 per share. If the price is that high, the transaction value would be more than JPY 21 billion, as shown on the left of the table. Moving on to Page 5, accounting treatment of Arm from consolidated financials perspective. Arm remains to be continuing operations for now until closing of the transaction is deemed highly probable, such as obtaining regulatory approvals. On top right, you can see the timetable. At the time, Arm becomes discontinued operations, even though they are consolidated subsidiary. But it will be shown as discontinued operations. Currently, Arm is a subsidiary. So at the level of SBG consolidated financials, we carry out impairment test on goodwill, even though we didn't recognize goodwill. But according to the rule, we carry out impairment test on goodwill. We don't take upside on the consolidated account. When impairment loss is calculated, we pick up loss. And with regards to segment information, we own 24.99% of Arm. An uplift of ARM evaluation or downside of ARM evaluation will be picked up. But in terms of segment, change of Arm valuation is shown. But since it's a subsidiary, the amount is eliminated in the company's consolidated P/L. And the details are described in our financial reports. Page 6, derivative gain or loss on Alibaba prepaid forward contracts. You can see numbers go up and down. At the beginning of Q3, the agreement was amended. According to that, deferred tax expenses are recorded here as a loss. Derivative gain and loss on the contract, summary is shown on the right-hand side. From P/L perspective, in the third quarter year-to-date, income before tax was minus JPY 485 billion. Net income, minus JPY 705 billion. That was from P/L perspective. And from a balance sheet perspective, which is shown on the right bottom, financial liabilities related to sales of share by prepaid forward contract, JPY 2.8 trillion was recorded for this quarter. Page 7, segment income in terms of Investment Business of Holding Companies. There are 3 lines surrounded by blue dotted line. Those are numbers related to SB Northstar. Our disclosure is made under the same format as we used in second quarter. Page 8, Investment Business of Holding Companies segment. You can see solid relation between SBG and SB Northstar. Left-hand side shows subsidiaries. And investments through the subsidiaries are shown on the left-hand side, which is included in the Investment Business of Holding Companies segment. And also on the right-hand side, 1/3 of SB Northstar is on controlling interest, which is held by Mr. Son. On Page 9, investment in listed stocks and other instruments. Again, the format is what we used in the second quarter. Investment securities are shown from SBG's perspective on the left-hand side and from Northstar's perspective on the right-hand side. Page 10, next page. Left-hand side is in terms of balance sheet and right-hand side is in terms of P/L. We saw increase of securities pledged as collateral by about JPY 1 trillion, and about JPY 400 billion of borrowed securities were recorded in second quarter. But we did -- there are none in the third quarter. On the right-hand side is P/L from 1, 2, 3 quarter. At the very bottom, gain or loss on investment attributable to owners of the parent, which is around loss of JPY 113 billion. But if you refer to the latest number, those numbers should be positive as opposed to negative, as Mr. Son mentioned in the presentation before. Next page, which is rather busy. Investments made by SBG were transferred to Northstar. So how should we look at them from SBG P/L perspective? Put in short, at the bottom is since investments made by SBG were transferred to Northstar and Northstar sold those investments, we record it as realized gain or loss. Next page shows impact of asset management subsidiaries on SBG consolidated B/S. Again, we posted similar information on our financial report. With regards to interest held by SBG and interest held by Mr. Son, you can see that information at the bottom left. And also bottom right, interest in equity with breakdown of interest by SBG and noncontrolling interest by Mr. Son. Next page, Page 13, price sensitivity of derivatives at SB Northstar. Assuming all other variables than fair value remain unchanged, the numbers can change like this according to sensitivity. Next page, Page 14. Net income, JPY 3 trillion. And gain from investments grew to about JPY 3.8 trillion. So what about tax, you may ask. Depending on when we pay taxes actually and how much percentage at which we pay tax, aside from that, deferred tax expenses are recognized for the tax amount necessary, just so you know. And Page 15, please, consolidated B/S summary in terms of IFRS. Major drivers of those changes are shown on the right-hand side. Number one, current assets related to investments from SB Northstar; number two, includes Sprint asset; and number three, investment made by SVF1 and SVF2 at fair value; and number four, investment securities, which is around JPY 3.3 trillion. After part of T-Mobile shares were sold, still other parts are held. That's included here. And the investment fund business other than Vision Fund and Northstar are included here. Page 16, liabilities. Number one line item related to Northstar. Number two line item related to Sprint. And number three, prepaid forward contract related financial liabilities are in #3. Page 17. As said -- excuse me, equity. Number two indicates share repurchases in the quarter with breakdown. Page 18, cash flow. Like we've been saying since last time, since Northstar's activities are -- well, Northstar investments are their usual operations, so they are picked up in cash flow from operating activities, whereas our cash from investment activities are related to investments done by SoftBank Group. And the next page shows segment income from our perspective around Vision Fund 1 and Other SBIA-Managed Funds. Segment income was JPY 1.7 trillion. Thank you very much. That's all for my part.

Next, Mr. Goto will give you the financial update. Mr. Goto, please?

Yes. Good morning, everyone. Thank you very much for your time today. This is Goto speaking. Let me go into my presentation. Starting from Page 2. This is the summary of third quarter 2020. Happy to say that the investment business is doing great, mainly from SoftBank Vision Fund. So we do need to maintain this momentum. But at the same time, as a finance team, that we would like to keep our financial commitment so that we can keep our credibility from the market and investors. And as for the content of investment, we would like to keep our efforts to -- so that we can get a good understanding by the market regarding our investment activities. And also, the diversification of the portfolio is another important element from the safety point of view. So those are things that we always keep in mind to proceed with the financial activities. So as you can see, the robust investment business, JPY 3.8 trillion, a gain on investments was recorded mainly from Vision Fund. You can see this is a quite a large number. And the performance of portfolio is something that important to evaluate each company's growth. But at the same time, it is important to see the liquidity event, including IPO. And the timing for the IPO is not something controllable. And also, the speed or the size of the IPO in the valuations by the other investors, actually, impacted from the market situation as well. Therefore, JPY 3.8 trillion, this number is not something that we should be too happy or too unhappy about. We try to see a bigger vision. We try to see the longer-term vision so that we will be able to make a good step one after another. For example, quarterly basis results can be easily moved. And probably, we shouldn't make too much comment about those quarterly results. We'd rather like to see annual or even longer period. So mid- to long-term period result is something that we would like to show and also, we would like you to see as well. And that's the kind of vision or the strategy or tactics that we are building in for such mid- to long-term period. Status of assets. Equity value of holdings marked at JPY 26.9 trillion at December -- as of December 31, 2020. You saw some drops at the share price of Alibaba. So quarterly basis, status or the progress does not say too good. But this is as a onetime type of the valuation so that we shouldn't be too happy or too unhappy about. And also, as for latest information-wise, that has been improved quite well, so that they're quite comparable to the previous quarter. And JPY 4.5 trillion program, the monetization has already been completed so that we have 2 agenda for this shareholders' return, which includes buyback and also credit improvement. So in both case, that we would like to continuously work hard to complete at the end of March time frame. More specifically, as for buyback, JPY 1.3 trillion has already bought back. In the debt repayments, domestic bonds repurchased of about JPY 167.6 billion. And also, the early payment was made for senior loan of JPY 300 billion. Addition to that, as of May, we have also repaid the margin loan as well to some extent. Loan-to-value, this is to measure the most important indicator of safetyness, and we keep maintaining the very good buffer for this loan-to-value -- 14.9% loan-to-value. Actually, the latest number is even better from here. And the cash position, about JPY 2 trillion. But as a matter of fact, there are many other things that we could count as liquidity. So I would say about JPY 3.7 trillion equivalent of cash position are with us at this moment. And next slide, I'd like to talk about our investment activity. So here, in the gain on investments. Compared to last year, actually, we have made great improvements. Net income on your right-hand side also made a great mark, JPY 3.1 trillion. Next page. These are the main investment activities for the source on gain on investment. So new listing, exited investments and new investments. So for new listing, DoorDash IPO. Size-wise, quite a large impact. Opendoor -- also, we see listing of Opendoor; Vision Fund 2; Seer has also went public. As for exit, which is one of the most important activity from fund business. And we have executed several exits, Guardant, Ping An Good Doctor, Kabbage, Zhong An, Uber, that we had sold and realized gain. And also, we recently often hear the name of SPAC, mainly in the United States. We're seeing several examples in the market. And actually in the United States, about half of the IPO is using SPAC scheme. I myself personally feel that we should be quite conservative about the SPAC structure because investors are buying our securities or instruments. And also, SPAC can be one of the -- such scheme as well. So one of the options that we can think of. But at the same time, we do need to be very careful and also paying a good attention to start launching the SPAC sponsored by SoftBank Group. Opendoor. For example, this is the SPAC sponsored by somebody else, not us, which made IPO. So we still need to -- we can see how this market -- SPAC market will go. But then also important to keep listening to the feedback from the market. And we don't want to be too biased to the SPAC market so that we just need to look at this as just one of the option for investment activities. Page 6, this is the credit. We've been improving very steadily on your right-hand side. Left-hand side is share price, actually also making a good progress. Happy to say that since -- the first time since the year 2000, we've been able to reach JPY 20 trillion. So considering our history, it's quite impressive moment. And the senior bonds, also improving very well. Even after the earnings announcement, we have seen even further improvement of our credit. And this is the equity value of holdings. These are the value, JPY 26.9 trillion. As I mentioned earlier, yesterday -- the day before yesterday, latest number wise, actually, this has grown, very much coming closer to JPY 30 trillion level. So with this slide, from the diversification point of view, compared to end of September, you can see the apparent difference or the change since then. And I would like to put some color on this. So this slide, Page 9, shows the share price of Alibaba. So from the September point of view, this has -- went down. As you all know, there are 2 major reasons -- or 2 major agenda: One is the Chinese domestic market issue, the other thing is U.S.-China trade war. So starting from U.S.-China war. And also, Alibaba is listed in the New York Stock Exchange. And those Chinese companies on New York Stock Exchange, there were some delisting discussion was made, which I believe you are aware quite well. And as a result, we were -- we didn't have any issue from there. But that time, Alibaba has been seen as kind of a negative share. And also, I would like to add that Alibaba also listed in Hong Kong Stock Exchange. So even if there is any issues in New York Stock Exchange listing, we still have a market. They are in Hong Kong so that we can have a third-party valuation. In the Chinese domestic issue, I'm not in a position to make any comments about the political situations in China, but those are the things that we always built in for our forecast from a finance point of view. So all things need to be also taken into consideration. That's why we've been having a very important financial commitment, which is to manage loan-to-value less than 25% and at the same time, maintain the cash position of 2 equivalents for debt reduction. So those 2 are something that we need to keep our words so that we will be able to avoid any big impact from those portfolio companies' ups and downs. Next slide shows the Vision Fund 1 and Vision Fund 2. Left-hand side is Vision Fund 1. About $84 billion is the investment cost. So in total, about $104 billion for -- as a cumulative investment return. On your right-hand side, this is Vision Fund 2. We -- only a few months since the launch of Vision Fund 2, but in the -- we have invested about $4.3 billion in cumulative investment return-wise because Beike went public and also increased the big contribution of investments. So that in a short time period, it has made quite a large cumulative investment return. So looking at the past of gain and loss on investments on third quarter. This time, a total of Vision Fund 1 and 2, JPY 1.4 trillion is the gain that we recorded this time for the third quarter period. Looking back, this is what we have experienced. Fiscal '19, last year 4, we have some damage from difficulties in portfolios. Looking back, this is what we have experienced. Fiscal '19, last year full, we have some damage from difficulties in portfolios. Also last spring when the COVID impact to the market was quite drastic and also the quota valuation has been also damaged. But even there are some damage here, but if you see fourth quarter fiscal '19, a negative JPY 1.1 trillion, this is quite a large impact. But asset of investments, we also hold about JPY 30 trillion equivalents of assets. So that here, this is JPY 1.1 trillion. I believe compare -- if you -- if this has happened in other companies, this can be a record low, I mean, record high loss. But if you see our total balance sheet, this is something that we can absorb from those -- the total assets. And because of that, we were able to announce the JPY 4.5 trillion monetization program. And also since then that we were able to see and show you the good recovery from there to this level. And this slide explains the portfolio with pie chart as of December end. So if you take a glance that you can tell, orange portion, which is about 50% from Alibaba on your left-hand side. It's the other portfolios, Vision Fund 1 and 2, also all those SoftBank KK, our existing investments and Sprint and T-Mobile, those are also shown in here. On your right-hand side at Alibaba, many people or rating agencies are telling us Alibaba is just 1 company and forecasting too much. But if you take an even closer look at Alibaba, Alibaba actually run several business domains, and they are making a great presence in the market. So that actually, Alibaba is, we can call it Internet company, but actually they serve in very various domains. So this is something that we actually aim for and Alibaba is really suitable from our vision's point of view. And the liquidity of these assets, also important for credit. Out of our equity holdings, about 70% are the listed securities. So close to JPY 30 trillion assets, of which 70% are public securities, which I believe is exceptional compared to the others. So if we add -- include those listed securities invested by Vision Fund 1 and 2, also Arm shares, which had already announced as a sale to NVIDIA, and also that we are to receive the NVIDIA share after this closure of transaction. And if we also include all those, that gives us close to 90% of the listed securities of total assets, which is very exceptional not only in Japanese market, but also global market. And this is something, I believe, is difficult to measure. Only 1 indicator, that's something that I would like to continuously communicate with our rating agencies and that hope to have their understanding. This slide compares with the September end and December end. As you can tell, we have working very hard on diversification. Of course, the main reason for this diversification is because of the drop of share price of Alibaba, which is not always a happy thing for us. But that's not the only thing. In addition to that, Vision Fund 1 and 2 portfolio growth is something that we should keep in mind. For your reference, Alibaba's share is actually going up again, which is very happy news for us. But also, from the diversification discussion point of view, that may increase the Alibaba share even more if we see continuous growth of their share price. So I believe that we will keep seeing the changes of this diversification. And hopefully, that we will be able to expand that circle itself. And at the same time, those left-hand side of the circle that we would like to see the improvement of the value of each, so that we'll be able to get a good balance of total portfolio. Next slide. This is the -- another activity since last year that we have started, which is the investment in public securities by SB Northstar. About JPY 2 trillion, even more assets are managed under this vehicle. And as of the end of December, it was about JPY 300 billion negative, of which SBG or the investment loss attributable to the owners of the parent is about JPY 113 billion negative. But this, again, is not something that we should see in short-term period. We should see it [ as ] long-term period. As a matter of fact, the numbers -- latest number is -- has already been turned positive. So this is something that can move easily. Maybe tomorrow, the day after tomorrow, we may see another change again. So that's how easy to move. So that's why that we always need to look at the long-term period and want you to see a long term period as well. Mainly those large names in United States are the investees and the volatility is also large as well. So that's one thing that needs to be keep in mind. And these are the companies, who are names that we have invested as of the end of December, large name-wise, Amazon, Facebook, those are the one that we're expecting to be the leader of AI revolution. So that's our hypothesis for this investment. And you see others in the side from the bottom. In turn -- in these others, these are the companies which is not target for the disclosure in United States. So on some companies that's listed in other exchange markets outside of United States. So for those are not disclosed in this line and included in others. And the -- out of the investments in these stocks, actually, that we've been asked about the derivative transactions and what is the inside, the breakdown of this. And as of the end of December, compared to September time frame, that this has reduced $1.4 billion net. And at the time of September end, it was about JPY 300 billion or JPY 400 billion level. So compared to that, I believe that we have reduced quite largely. So as for this derivative transaction, we keep receiving quite a good amount of the questions about it. But basically, this Northstar is a vehicle to invest in public securities. And as a one scheme or one option for the investment activity is the derivative transaction so that -- and also this company just launched about 6 months ago, and they are in, still, kind of a testing phase as well. But at the same time, I can say we don't have intention to continuously expand the proportion of a derivative transaction or anything like that. So that if there is anything that we would like to test, we may do that, but that's how we think about this derivative transaction. And the JPY 4.5 trillion program, this is something that we -- I've been showing you several times in the past. So only in 6 months, we are able to complete the monetization of JPY 4.5 trillion. So not the JPY 4.5 trillion, but as a matter of fact, JPY 5.6 trillion, as you can see on the next slide, JPY 5.6 trillion monetization has already completed in 6 months. For the financing scheme-wise, the financing using Alibaba shares and also block trade or offering of SBKK shares and also some public offering and some other financing using T-Mobile shares. Those are the main breakdown of this monetization program, of which the debt reduction buyback within the JPY 4.5 trillion program, about JPY 1.3 trillion buyback has already been executed. In the debt repayment-wise, domestic bond repurchase about JPY 170 billion. And also the RD payment of bank loans, about JPY 300 billion. So these are actual numbers that we have already executed. And also for Alibaba margin loan, about JPY 1 trillion that we repaid in -- back in July. Our idea for the future is that JPY 2.5 trillion is also announced to use to improve the balance sheet. And actually, about JPY 1 trillion out of that is something that we would like to use for the bond redemption. And the remaining, probably we would keep as a kind of a liquidity or cash position towards the end of March. How can we -- we will be finishing our margin. It's something that we are running our test in and also the calculation, more specifically, debt redemption is something that we need to proceed continuously and also the repayment of the loans. Those 2 will be something that we've been preparing for. Fortunately, with this earnings results announcement, and we were able to announce a very good financial numbers, so that the credit market has been also -- seeing us very well and improved. So from the buyback's timing point of view, this is not -- this is a different discussion. But the actual financial improvement wise, I believe that it's a good thing. And also, we shouldn't be ignored too much about the market -- progress of the market status. So based on looking at the status of the market and so on, that we would like to execute our program towards the end of March. And return to shareholders or this is the status of buyback. As the JPY 4.5 trillion program, JPY 2 trillion, JPY 3 trillion for buyback. But actually, before we announced JPY 4.5 trillion program, JPY 500 billion buyback program has already been announced. So in total, JPY 2.5 trillion was the amount for the buyback. In the progress of that, 1.8 trillion has already been repurchased. And remaining, about JPY 700 billion that we need to execute. Timing-wise, as I mentioned before, we don't cut up the margin. But actually, we are asking for some -- several months of room, so that without giving a bad impact to the market, we would like to execute this program. So actually, the repurchase period, officially that --formally basis, this is July 30, 2021. So buyback and the our investment business performance improvement. And with that, the share price actually is showing quite a good performance in the past 1 year. Page 22 is the loan-to-value trend. It's about 15% level. 25% is kind of a threshold that we will keep talking as a financial discipline. And actually, we've been keeping our words. And also right now, 14.9% and even improved several percent points since then at this moment. And adding some more colors to our financial condition, loan-to-value compared to fourth quarter '19, we've been improving our loan-to-value and also maintaining a good cushion, financial cushion. And another -- our financial commitment or discipline is the cash position. Always maintain enough cash position, more than sufficient for the bond redemption for the next 2 years. So we are expecting the bond redemption about to JPY 1.7 trillion over the next 2 years. So that also need to keep in mind for our -- when we talk about cash position. And here, on Page 26, this is the SoftBank Group stand-alone interest-bearing debt. So dark blue portion on the bottom is something that I want you to look at. Excluding nonrecourse finance, so this is interest-bearing debt, only this recourse to SoftBank Group stand-alone, and it doesn't really change. And we have been maintaining quite a safety level. When we speak about non-recourse financing, for example, those margin loan using the -- our holdings or the forward -- or loans. Those are the nonrecourse. So that should be looked at separately from the SoftBank Group's credit. And here shows the cash position. JPY 2 trillion that you can see this blue -- dark blue portion. As of December end, we have cash itself of JPY 2 trillion. On top of that, we have cash and deposit and trading securities of Northstar, JPY 1,389 billion. And actually, that we've been seeing some reduction or declines from the previous. In the cash of the Northstar, there are some public securities that they reached using for the transaction. So such -- this light blue includes those securities. And about JPY 1 trillion decrease, but this is not really the decrease. But actually, that being used for the pledged as collateral. So JPY 1 trillion has used for security pledge. And what we did with this pledge is that we raised JPY 500 billion. So JPY 1 trillion securities [ were ] re-classed from cash to pledge. And at the same time, we have raised about JPY 500 billion from there. And also, as of the end of December, P&L, you saw the Northstar. And about JPY 300 billion loss was reported at the December end, so it includes that. Quota total, it has decreased by JPY 700 billion or so from September to December. This JPY 1.3 trillion is one thing. But actually, we do have an asset that we can use as a cash equivalence. So we -- I mentioned earlier, the JPY 500 billion raised using this pledge. And actually, if we repay the remaining capability is going to be coming back. So considering all that, actually, this JPY 1.4 trillion equivalent of light blue that actually that we have about JPY 1.7 trillion level of the capabilities we have in Northstar. And this Northstar is that one of the activities of ours using our excess cash. So that we can always see this as an excess cash for us so that from that sense, cash position, not only this JPY 2 trillion of dark blue, but also JPY 1.3 trillion, the light blue. In total, about JPY 3.7 trillion level of the cash position is something that, I believe, we can see as our capabilities. And the next slide shows the net interest-bearing debt. It's still the very safety level. And next slide, starting from this year, we have started the issuance of hybrid bonds for domestic institutional investors. We haven't done that for a while. And at this time, actually, we were able to raise about JPY 177 billion. Back in 2016, for this time, JPY 450 billion hybrid call is coming. So JPY 450 billion is originally issued in back in 2016. And back then, domestic institutional investors only participated JPY 71 billion. But this time, we are happy to say we have added JPY 100 billion level. And that's a very happy thing that we've been having more and more participants from institutional investors in Japan. So this is a hybrid note. So rating. And the equity treatment is seen -- 50% of equity treatment is seen by the rating agencies. So this is very important and very effective for us as well. For rate, interest rate, 3% initial 5 years. So such, compared to senior notes, spread is bigger. And senior bond, probably 1% level, but actually, for this case, considering this financing cost, I believe that the 3% is very low. And at the same time, we can enhance our capital. So that's quite an important event for us. In the JPY 177 billion issuance, annual basis, JPY 450 billion bond redemption -- one part of the JPY 450 billion redemption. And this is the first step or first stage for that redemption. Remaining redemption is basically -- once the time is really that we would like to also consider issuing the hybrid bonds for retail investors. So we will be keep looking at the market progress, market status to consider the timing. But still, we are quite hopeful that we'll be able to have a good demand from the market. And with that, this is the redemption schedule. Fiscal '21, we are expecting quite a large redemption. 1.7 -- we have already raised JPY 177 billion. So remaining is about JPY 1 trillion for fiscal '21 in redemption schedule. In Page 32 and on, no change. It's pretty much the same from the previous. So I would like to skip those pages, not go into detail. In this slide, our main policy, loan-to-value, 25%. Cash position for next 2 years, coverage of bond redemption and also sustainable distribution and dividend from Vision Fund and other subsidiaries. Those are our financial policy. Those 3, especially first and two, keeping those 2 financial policy will decide our investment amount for the future activity. Many people ask me, do we have an investment budget? And every time I answer that, we don't set the budget because that's going to ruin our activity. But without deciding the budget, but we will know the number because if you look at this #1 and #2 financial policy, that will lead us to the amount that we can use for the investment activity. And second page, Page 34, that self-financing for portfolio companies, no rescue package. In the agile financial management in response to the market conditions. So this is a summary that I have explained so far. Last but not least, I also mentioned in the previous occasion explaining about ESG, and I would like to share with you a little bit about the progress on ESG. As you can see on Page 37, which is also included in our IR materials, so we have our own discussion also considered in the study deeply on ESG for SoftBank Group. And our Chairman and CEO, Mr. Son, have also a strong passion on here. And I believe, compared to the other CEO, I believe that Mr. Son has quite a strong passion for this. But at the same time, how we interpret or how we express is maybe a bit different from the other companies, may not be always a traditional way that we will be able to express, but we are trying hard to communicate in our way for ESG. And this slide shows the response to climate change, especially the group companies like Arm, Yahoo! Japan, SB Energy have their own initiatives, net 0 carbon by 2030 or 100% renewable energy challenge by fiscal 2023 and also new solar parks. In the next slide, this is the COVID-19 response that we've been working on this, which is most necessary for the world right now, I believe. However, since the last January, February, up until to date, looking at some short period of virus, we've been seeing quite a lot of changes of the virus itself, and we cannot address those change yet. But still, at the same time, we would like to focus on certain period of time so that there can be some help of the -- to respond to the COVID-19, so that we start importing the testing tools for virus and also masks or the -- some necessary equipments at importing and selling at cost. And at the same time, establishing the coronavirus inspection center and also providing PCR -- saliva PCR test at cost, which is very high-quality as well. And right now, 13,000 tests can be tested, which is 10% of Japan overall. And 300,000 has already been tested. And going forward, we are targeting 20,000 tests per day and also 3 million tests in total so that we will be able to provide such opportunities for as many people as possible. In information security, which I haven't made much comment about up until now. But as a holding company, SoftBank Group -- and also transformed ourselves so that we believe that it was also a good opportunity, good timing for us to review our information securities so that we're compliant with international security standards and also Zero Trust, those are the 2 big agenda that we've been targeting, and we've been achieving. As you see on Page 41, with the long history, big enterprise trying to set the big wall so that avoid any intervention outside. That's the kind of a traditional way that Okta security policy. But what we're trying to do is, on your right-hand side, that we are pursuing the Zero Trust and not many companies can -- have been able to do this. But we are setting up our system, information security policy under Zero Trust concept. In Page 42, in all the governance, actually, we are enhancing our Nominating and Compensation Committee. And not -- regardless of the Board of Directors, but we have amended our regulations of Nominating and Compensation Committee. Those important offices, employees will be also discussed, their compensation in this committee. And also the governance of portfolio companies, investees and the investment guideline policies, trying to expand and apply to many -- as many companies. This January, we have reported the annual assessment of compliance with this policy to the Board of Directors meeting. And we will keep monitoring the progress of improvement of such governance and investment guidelines policies status. And the last page, Page 44, ESG-related initiative, there are many external assessment results. So we have first selected from these organizations, MSCI or CDP that our scores has been upgraded and of SBKK, as first selected by FTSE and also MSCI or Nikkei SDG management survey and also CDP that we have received the ratings, which is very important things and good things. Not only starting to upgrade our rating, but we always need to keep in mind what is necessary for the world, what we expected from the market world for our activities. And that's something that we need to put it into our action for ESG, and we will keep our efforts on to this as well, and that's something that we are aiming for. That's all from me. Thank you very much.

[Interpreted] And last but not least, Mr. Navneet Govil, CFO of SoftBank Investment Advisors, will give you update on SoftBank Vision Fund. Navneet, please unmute yourself and start the presentation. Thank you for waiting.

Hello, everyone. Before we begin, please read SBIA legal disclaimers on Slides 2 and 3. Please refer to the online presentation for more details. For anybody seeking more information on the Vision Funds, please visit visionfund.com. To see periodic news on matters such as firm updates and new investments, please visit the SoftBank Investment Advisors' LinkedIn page. Today, as you'll see on Slide 4, I'll summarize SBIA's key performance highlights for the December quarter and full calendar year 2020. I'll then discuss the financial impact of Fund 1 and Fund 2 on SoftBank. In my in-focus section, I'll point to the milestones we reached in 2020 that we believe supports Son-san's vision for the AI revolution. Before I get started, I want to express my gratitude for the community we've built inside and outside of the Vision Funds, including our employees and founders, but also you, who are listening today, for being part of our journey. COVID-19 has affected each of us in ways none of us could have predicted. We have to be more agile as individuals and as an organization, while navigating unchartered territory. I believe we've emerged stronger as a result. During my presentation, I hope you will see, as I do, that 2020 was an extraordinary year for the Vision Funds. To begin on Slide 6. Last month, we announced the pricing of our Special Purpose Acquisition Company, which raised more than $600 million, including a $300 million commitment from Vision Fund 2. This SPAC is trading on the NASDAQ under the ticker SBFA and is led by our CEO, Rajeev Mishra, and me. Our SPAC is designed to be complementary bridge between SoftBank's private and public investing strategies by enabling us to partner with a fast-growing IPO-ready technology company. Since inception of the Vision Fund 1, we intersected with many compelling companies that wanted our support around the time of their IPO, but we lacked the vehicle to partner with them at this stage. While the SPAC landscape is crowded, we believe ours is well positioned. To begin, our team of 150 investing and operating professionals, as well as our unparalleled ecosystem provides us with high-quality sourcing capabilities. In addition, we have broad global reach with 9 offices around the world, deep local networks and operational expertise that we believe can help entrepreneurs build industry-leading businesses through an IPO and into the future. We believe our SPAC provides public investors with a distinct opportunity to benefit from the growth of a leading technology company that will generate long-term shareholder value. Currently, our SPAC is sponsored by SoftBank Investment Advisers. Upon close of a future transaction, the combined company will become independent and begin trading on the NASDAQ with a new ticker symbol. Also, our 1/5 warrant coverage is far less dilutive than what is typical in a SPAC and was created this way to be an attractive option for founders seeking minimal dilution. We plan to complete an acquisition within 2 years. As shown on Slide 7, our 10th Vision Fund 1 portfolio company to go public was DoorDash in December, which has been our most successful IPO to date. DoorDash is the fastest-growing player and the category leader in food delivery in the United States with 50% market share now, up from 17% in 2018. The company has essentially created a last-mile logistics platform designed to help local businesses thrive starting with restaurants. DoorDash is still in the early days, and we believe it has a massive opportunity ahead. Congratulations to Tony Xu and the DoorDash team on this major milestone. Our blended acquisition cost was $10.80 per share. The company's IPO in December was priced at $102 per share and traded higher on day 1. Since then, the stock continues to appreciate and closed at $181 per share last Friday. Based on this closing price, our MOIC on this investment is 16.8x, representing a staggering unrealized gain of $10.7 billion. DoorDash, however, was not our only successful listing. As you can see on Slide 8, in December, Opendoor closed its merger with Social Capital Stack, which was first announced in September. Opendoor is a leading digital platform for apartment selling residential real estate. Our total investment from Vision Fund I was $450 million at a blended entry valuation of $6.11 per share. Since then, the stock price of Opendoor continues to increase, closing at $26.60 on Friday and signaling ongoing enthusiasm for the company and their approach to disrupting the real estate sector. The MOIC of our investment is 4.4x, representing an unrealized gain of $1.5 billion. In addition, Seer, a Vision Funds 2 company in our health tech portfolio was our third company to list in the same month. Its IPO was well received by public market investors. Based on Friday's closing price of $65.90 per share, our MOIC is 1.7x, representing an unrealized gain of $100 million. Lastly, Auto1, which is another Vision Fund 1 company, began trading on Friday. Our total investment was $742 million at a blended entry valuation of EUR 15.13 per share. The stock priced at EUR 38 and closed its first day of trading at EUR 52.89. Since the inception of both Vision Funds 1 and 2 through to December 31, 13 portfolio companies have listed publicly as can be seen on Slide 9. Most are trading at valuations that are several times higher than our blended entry valuations. In 2020, we fully exited 3 public companies. 10x Genomics, Slack and Ping An Good Doctor, with impressive MOICs of 10.9x, 3.0x and 2.1x, respectively. On Slide 10, you'll see that our total capital commitments for Vision Fund 1 are $98.6 billion. In the 3 years following our initial close of the fund, the acquisition costs totaled $84.8 billion and recorded gross investment gains of $22.6 billion, representing total fair value of $107.4 billion. We've also distributed $15.2 billion to our LPs from realized exits, portfolio financings and payment of the preferred equity coupon. We believe Vision Fund 2 is also off to a strong start since our official launch on October 2019. Our total capital commitment is $10 billion, while total acquisition costs so far are $4.3 billion. In addition, we have a robust pipeline of investments globally. The public listings of Beike and Seer have already helped drive up the value of the fund by $5.0 billion since inception, representing total fair value of $9.3 billion. On a combined basis, we have created $27.6 billion in value to date for our limited partners. Moving on to Slide 11. Since the inception of the Vision Fund, we've made 92 investments, including joint ventures. Our current total number of private investments after our public listings and full exits is now 74. We believe Vision Fund 1 is well diversified across both geography and sector. We continue to make new investments. So on Slide 12, I show that as of December 31, Vision Fund 2 had made 26 total investments, several of which are market leaders such as Beike, Memphis Meats, Tier and Unacademy. Our investment thesis for Vision Fund 2 remains the same. We are investing in AI-driven tech companies with businesses that aim to create or disrupt very large markets and whose founders have big visions and missions. We intend that Vision Fund 2 will also be diversified across multiple sectors and geographies. Vision Fund 1 continues to create value for our investors. Here on Slide 13, you can see our realized and unrealized gains. As you have seen, our public listings this year resulted in strong valuation uplifts for those companies. We believe our portfolio is well positioned for valuation increases as more private companies go public. As of December 31, the gross investment gain for realized investments was $6.8 billion, and the fair market value of our unrealized public holdings increased significantly from last quarter to $24.8 billion, creating a cumulative unrealized gain of $15.1 billion, primarily driven by the DoorDash and Opendoor new listings as well as Uber's stock price appreciation during the period. Let's discuss the impact of the fund's financial performance on SoftBank. As you can see on Slide 15, for the 9 months ended December 31, SoftBank's share of the net profit -- the fund's net profit was $8.97 billion. Accrued management and performance fees totaled $3.04 billion for the same 9-month period, including a $2.85 billion increase in performance fee. This means the total contribution to SoftBank from the fund less third-party interest is $12.01 billion. This is a remarkable turnaround from last year and represents a significant economic contribution to SoftBank and its shareholders. Moving on to Slide 16. Cumulatively, from Vision Fund 1 inception through December 31, SoftBank's share of the fund's net profit was $7.07 billion as an investor. Including an additional $3.40 billion in accrued and paid management and performance fees, the total contribution from inception-to-date for SoftBank is $10.47 billion from the fund. On Slide 17. From a balance sheet perspective, as of December 31, SoftBank contributed $26.7 billion in capital to the fund. This amount is up in total value to $36.5 billion, driven by the increase in the unrealized value of the fund, $1.7 billion in distributions and $2.9 billion in accrued and paid performance fees. It is important to remember we have different securities that make up the Vision Fund 1 capital in order to cater to the different risk appetites of our limited partners. For many limited partners, the capital structure includes preferred equity capital as well as standard equity capital. For SoftBank, however, it's all-equity portion means returns are levered. Looking at similar metrics for Vision Fund 2 on Slide 18. We show that SoftBank contributed $4.4 billion in capital to the fund. This amount has increased significantly in total value to $9.3 billion, inclusive of accrued performance fees. I'd now like to turn your attention to this quarter's in focus section, where I'll recap the key milestones that we achieved in 2020. I believe these milestones help validate our vision and our investment thesis for the AI revolution. Moving on to Slide 20. Reflecting on the last 1 to 2 years, we believe our companies are well positioned because we've been engaged with them to build leader and more profitable businesses for some time. For example, in 2019, we emphasized, with our founders, the importance of positive unit economics as the foundation of lasting businesses. We urged them to accelerate their company's path to profitability. We encouraged our companies to bolster their governance practices and we helped them focus on liquidity and cash runway. As a result, founders had several months to create economically sustainable businesses before the initial disruption caused by COVID-19. As we reflect on 2020, the company is at the center of digital transformation, either enabling it or adopting it, saw their businesses grow rapidly in response to the pandemic, before the AI revolution was disrupting inefficient industries and creating entirely new categories. Looking back, we can see that COVID-19 supported Son-san's vision and accelerated it. Throughout the year, we continue to invest in companies that are aiming to lead the AI revolution through follow-ons for Vision Fund 1 and new investments for Vision Fund 2. Alongside our investments were other market participants who led the round at higher valuations, we're also seeing strong public market reception of our companies through new listings and M&A. Moving on to Slide 22. Earlier this year, the demand picked up dramatically in several factors as society responded to the pandemic. Many of us have been working from home alongside our children studying in front of their screens. We've been shopping and consuming entertainment online and dining in. This new way of life is made possible by accelerating the digital shifts already underway. For the Vision Funds, our company is driving innovation forward in the areas of e-commerce, entertainment, health care, education, foods delivery and the future of work. These industries are also the ones growing rapidly from a surge in new demand. On Slide 23, I show that across Vision Funds 1 and 2, we made 54 investments deploying $6.8 billion during the quarter. These investments span a range of sectors from exciting new investments in consumers such as Order Mark and Team, to follow-ons such as GoBrands and Reef and Logistics. Over the last 2 months -- over the last 12 months, rather, 2 things have become clear. First, our companies continue to attract capital from third-party investors leading new rounds. And second, the public markets continue to create opportunities to unlock value for private companies. On Slide 24, I show all of 28 follow-on rounds raised by our companies in 2020. I'd like to highlight, however, that 90% of these follow-ons were led by other reputable institutional and strategic investors at higher valuations. In addition, these follow-on rounds show our company successfully raising $15 billion in fresh capital, resulting in a total valuation uplift of $130 billion. On Slide 25, you'll see that significant value is unlocked when our companies list publicly. Of our 5 new listings this year, all experienced valuation uplifts upon IPO pricing compared to each company's last private rounds. In 2020, our portfolio witnessed a significant increase in the number of IPOs coming to market. We believe this new volume, plus the valuation uplift I just described points to increased liquidity for our portfolio in the quarters ahead. There are 3 key benefits to our companies going public: First, IPO show that public market investors recognize the inherent value in our companies; second, there are also capital raising moments where our companies that allow them to maintain high-growth trajectories; and lastly, these liquidity events position us to eventually monetize our investments over time and make distributions to LPs, including SoftBank. Moving on to Slide 26. In addition to our public listings, strategic acquirers announced transactions to buy 4 of our companies in 2020, including, NVIDIA's announced $40 billion acquisition of Arm, Aviva's announced $5 billion acquisition of OSIsoft. This M&A, combined with our public market exits, created $17.1 billion of realized value on a pro forma basis in 2020. Our investment period for Vision Fund 1 concluded more than a year ago. And we are well into the fund's value creation phase. Investing is a long-term business for us, with a lot of work left to do with our more than 100 companies to help them grow sustainably and ensure long-term success. Alongside this value creation work, we continue to monetize our companies with the goal of maximizing IRR and distributions to LPs. I have foreshadowed this activity for some time, and now you're seeing it in action. As you can see on Slide 27, at the end of 2019, 23% of our portfolio comprised of exited and public investments. Now that figure has grown to 37%, including the announced acquisitions of Arm and OSIsoft, that figure is 49%. For our listed companies, being public means, they can tap a broader investor base with deeper pools of capital for their ongoing growth needs. I believe with each passing quarter, you'll have more valuation clarity by way of new public listings and exits in our portfolio. Moving on to Slide 28. I expect that 2021 will be an exciting year. We're making new investments from Funds 2 and follow-ons from Fund 1. We continue to support our companies, and we believe our unparalleled ecosystem will only continue to grow. We have also seen the number of liquidity events increase as evidenced by many of our portfolio companies listing publicly. We now have many arrows in our quiver and the flexibility to invest across sectors and geographies. Looking ahead, it's clear that the pandemic has permanently reshaped our economy in ways that we are just beginning to understand. Like Son-san, we believe artificial intelligence will have a greater impact on the economy than the PC, Internet or mobile stages of the information revolution. We believe the pace of change will be even greater and some of today's disruptors will be disrupted themselves. Hopefully, 2021 brings about a post pandemic transition period where societies can gather again to dream big, form fresh ideas and create new opportunities. Our ability to invest and monetize wisely through this transition and help our companies navigate it will determine the ultimate success of both Vision Funds. Thank you for listening. I look forward to your questions. Thank you.

[Interpreted] Now I'd like to have question-and-answer session until 11:30, Tokyo time. [Operator Instructions] We take your questions in both Japanese and English. As presenters are also joining this meeting remotely, please specify who you would like to ask your question to and refer to the page number of the slides if your question relates to the material. We'd also like to remind you that we will not be able to answer any questions regarding SoftBank Vision Fund strategy, performance, IPO status of portfolio companies or exit strategy. First, we will take Japanese questions. For English questions, we will take after we finished Japanese questions. We appreciate your patience. So first, our Japanese questions. Mr. Kikuchi, please.

[Interpreted] My name is Kikuchi. I have 2 questions. For finance section on Page 16, I wonder if I should ask either Goto-san or Kimiwada-san. Last time, the maximum loss against derivative and option transactions were one of my questions. I think you've got JPY 4.7 billion for short and JPY 1.3 billion for long and net JPY 3.9 billion or something. And I believe you recorded a loss of about JPY 285 billion. So maximum loss should have been JPY 3.4 billion. So I wonder, as of end of December, the maximum loss against the option balance would be how much? I wonder if it's possible for you to record a loss over the maximum possible loss. Other than call options, derivative loss include futures as well. If that's the case, in relation to investments in listed securities, how much maximum possible loss are you anticipating against the balance you have?

[Interpreted] As Kimiwada-san mentioned earlier, we recorded a lot of huge loss from derivatives, mainly due to forward transactions. Going forward to address market move, we anticipate a loss as an insurance, if you will, through hedge transactions. But we completely winded it down forward contracts.

[Interpreted] And since early December, the size of option has been shrunk, as Goto-san mentioned earlier. So we don't have an intention to actively utilize derivative transactions at the moment. Thank you.

[Interpreted] So on Page 16, as of December end, call option?

[Interpreted] Currently, it's more than this size. And going forward, as a strategy of hedging, you use forward. Masayoshi-san mentioned that there's an option to use a forward contract as a hedge, but we don't have a concrete plan at the moment.

[Interpreted] Second question on Page 15 of Goto-san's section. As Goto-san explained earlier, other's line increased a little bit compared to last term. At the moment, where and how many companies or shares you invested in so far? And those companies are similar nature in terms of industry or status with the companies listed in the U.S. market that you have invested in?

[Interpreted] So the others, Masayoshi-san said, that we can't comment on others in detail. But in principle, the companies that we have invested in are the companies that are in tech sector that would lead AI revolution going forward. So I wonder if that others portion will keep increasing. Masayoshi-san said that we don't have any concrete plan at the moment. So when or if investment committee makes a decision, of course, we will allocate some more money in this sector.

[Interpreted] As a follow-up question, talking about investment committee, I believe that at the start of this initiative, the members of the investment committee were around 3. So at the moment, how many are in investment committee?

[Interpreted] The members are Mr. Son, Ron Fisher and Akshay, those are 3 members in the investment committee. And they make a decision for investments.

[Interpreted] Would it remain the same?

[Interpreted] Yes, it will remain the same.

[Interpreted] [Operator Instructions] So next question, Mr. Hoshi.

[Interpreted] This is Hoshi from Nomura Securities. I have questions to Mr. Goto. I have 2 questions, please. First, Page 22 of finance section. This is the LTV that I would like to ask you about. Mr. Son mentioned that he will be proactively work on the investments activities in Vision Fund. And probably the money source for that will be used from the exits and the sales of the portfolio companies. That means that financing from the market may be smaller. As a result, LTV is going to be flat or even less. Is that dimension that we should be having? That's my first question.

[Interpreted] Yes, this is Goto speaking. Thank you for your question. Loan-to-value, so because we will have another investment activity, so that we may see the reduction of the financing from the market. So that's why that we may see the flat or the improvement of loan-to-value. But actually, our idea or our thinking is that the raising of the -- from the market should be also increasing. But at the same time, we would like to improve the loan-to-value at the same time. That's something that we aim for as an investment company because we would like to do that investment. And on top of that, we would like to put some leverage. And at the same time, when we see the success of the investment, we will be able to increase the denominator for loan-to-value. And in the process of increasing denominator for loan-to-value, it will be improving. But at the same time, even we increase -- but still, that we'll be able to improve the loan-to-value. And once we set the cycle, we believe that we will be able to enhance our enterprise value. And whether this is going to be go, as I mentioned, it's not something that we are not sure unless we do that. But that's something that we aim for and target for.

[Interpreted] And I have a second question. Page 29 of the finance section. So hybrid bond issuance, and also you are in consideration for issuance of retail bonds. In the slides, JPY 450 billion, of which JPY 170 billion has already raised. The remaining JPY 280 billion, is it all go for the retail bond issuance? Or are you also thinking to issue some of them to institutional investors? Do you have any breakdown for that between retail and institutional?

[Interpreted] Yes, Goto-san speaking. We haven't decided the breakdown yet. But originally speaking, JPY 470 billion outstanding, excluding JPY 71 billion. So about JPY 380 billion was from the retail investors, JPY 380 billion retail investors also coming for redemption. So and as far as we hear the feedback from retail investments, they also show a good demand. And also, we would like to answer for those demand as well. And we also like to contribute back to those existing retail investors as well. But at the time, depending on the demands from the retail investors, also like to hear the feedback from institutional investors as well. Then, that I believe we'll be able to decide the breakdown of issuance.

[Interpreted] Next question Moriyuki from SBI Securities.

[Interpreted] I have 2 questions. First, about LTV just discussed. Including Northstar, LTV should be much better, probably less than 10%. And Goto-san mentioned, acceleration and putting brake. And if the LTV goes below 10%, would you like to raise a little bit? In that case, would you like to pay back to shareholders?

[Interpreted] Thank you for your question, Goto-san speaks. Well, 10% level, it doesn't mean a lot to us, actually. Well, below 10%, to be honest, may cause a question like you -- maybe you may want to increase a little bit. But our wall is 25%. So long as we are well below 25%, we have leeway to maximize our investment performance. With regards to return to shareholders, we don't have a specific policy or rule at the moment. But when or if investment performance is pretty good, we have more for returning to shareholders like share buyback, for example, and a dividend. So how much and when? I can't make any comment at the moment.

[Interpreted] The second question, question to Navneet. SoftBank Vision Fund is now in harvesting period and stock market is performing pretty good. And Masa mentioned the other day that he wants to invest 10 -- sorry, less than 10 to 20 companies per year. So I wonder if you align with that or if my understanding is correct? Or rather, listing 10 to 20 companies a year, what's your view on that?

When Son-san's mentioned about 10 to 20, he was referring to the entire SoftBank Group portfolio. And as far as the Vision Fund is concerned, we had a good number of listings in 2020, and we expect that to continue into 2021. But I can't comment on the specific number of listings. It's a very robust pipeline. Mori-san, is it okay?

[Interpreted] So I wonder constantly doing that or some years more, other years less, which approach would you like to take?

So it's not more or less by the years. Whenever the companies are ready, it's a decision each of the companies, their management teams and the board are going to make. But it's a couple of things. Number one, the markets are very constructive right now. The second thing is we're in year 4 of the fund, and a lot of our companies are ready. So we're going to see this continue in 2021 and the years beyond.

[Interpreted] [Operator Instructions]

David Gibson from Astris. So SB Northstar, I thought this was the liquidity investments for excess capital. Could you explain then the report today that SoftBank is making a JPY 900 million investment in Pacific Biosciences, which you already have an investment in Northstar in a -- I think it's a convertible bond. Is that through Northstar and now it's through investments? Or is it through SoftBank Vision Fund 2, could you explain where it goes and the rationale, please?

The investment to PCB is through Northstar. It is converting the existing position in equity into commercial bond. You may be following about the detail of conversation with the management team.

Sorry, could you elaborate or anybody -- I mean, maybe Goto-san, why is it Northstar is doing -- I mean, I would add your CB is not necessarily a liquid investment, that easily is transferable to cash, and hence, can be invested for other things within the SoftBank Group. It now looks like you're an investment vehicle, in fact, for taking primary issuance.

The volume of the exposure will be the same. There is a rework. Northstar Investment decided that the return on investment include relative to the risk of the exposure will be better by converting the equity vision into a convertible bond. I will say this is an exceptional case, but there was a decision by the investment committee.

[Interpreted] Next question. Ando-san, I believe it's a Japanese question.