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

[Interpreted] Good morning, ladies and gentlemen. I'd like to start SoftBank Group Corporation Investors Briefing and Earning Results for the fiscal year ended March 31, 2021. I'd like to introduce the representative on SoftBank. From left, Mr. Goto, Board of Director and CFO; Ms. Kimiwada, Corporate Officer, Senior Vice President and Head of the Accounting Unit; and also Mr. Navneet Govil, Managing Partner and CEO of SoftBank Investment Advisers from U.S.. This session starts with the overview of our consolidated results by Ms. Kimiwada and 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. Material for today is available at our corporate website. Now I'd like to invite Mr. Kimiwada to talk about the consolidated results, Ms. Kimiwada, please.

[Interpreted] Thank you very much. Let me walk you through the earning results for the fiscal year ended March 31, 2020 from accounting perspective. Page 2, please. We made an announcement 2 days ago, and this slide shows gain on investments for fiscal year 2020, which was about JPY 7.5 trillion. Breakdown includes JPY 945 billion for investment business of holding companies, JPY 6.29 trillion, SB Vision Fund I and Vision Fund II, and other investment JPY 291 billion. A lot of big pieces combined together. Investment business of holding companies JPY 945 billion. Let me elaborate on that. It includes a lot of stuff. And transaction size was big, and the transaction itself was not simple. So let me try to explain to clarify those investments. And Vision Fund will be explained by Navneet later. And for other investments, I would like to walk you through as well. And JPY 291 billion of other investments are not small. So again, let me try to clarify those segments. And Page 3, with regards to segments for fiscal year 2020. We changed our reportable segments. Before there was a Brightstar segment, and the business was sold. So we eliminated that segment. And at the profit level, it was not very big. But sales revenue-wise, it was relatively big. So Brightstar was independent segment before, but not anymore. And for FY '20, from left-hand side investment business of Holding Company segment and SVF1 and SBIA Managed Funds segment, those are probably easier for you to understand. And SoftBank segment includes of Bank Z Holdings, including Line and Yahoo! Japan. For FY '20, only 1 month financials were included from Line and other segment includes LatAm Fund. So those are the new segments for FY '20. Moving on to next slide, Page 4, investment business of Holding Company segment. SoftBank Group and SBGC, SBGJ and SB Northstar are what I'm talking about here. As you can see on the chart, on the right-hand side, SB Northstar, that emerged in the first half of FY '20, and they are engaged in transaction with listed stocks. And 1/3 of loss or profit belongs to Mr. Son. And on the left-hand side, subsidiaries include SBGC and SBGJ and those investments include Alibaba, T-Mobile, Lemonade and so far, et cetera. There are about 110 companies being invested, of them, Alibaba, it's equity method treatable business, but most of them are evaluated [ PP ] P/L-wise. And next segment, income, on Page 5. Red dotted line includes T-Mobile-related results. Early FY '20, T-Mobile was sold and we continue to having T-Mobile shares. So we could gain or lose from the investment. And derivative loss or gain from auction was also recorded. And related to sales of T-Mobile shares, JPY 421 billion was recorded for FY '20. That was, again, related to sales of T-Mobile shares. And also, we have blue dotted line portion, which is related to SB Northstar. For the first quarter, before SB Northstar was established, SBG did direct investment in listed stocks, which was included in the blue dotted lined box. Realized loss on sales of investment at asset managing subsidiaries, that's a negative JPY 20 billion, incurred by SBG and negative JPY 610, which is related to SB Northstar derivative transactions. Like Masa mentioned at the earnings results announcement, SB Northstar's size has been smaller and smaller with regards to the investment amount. And another red dotted line box also includes T-Mobile-related transactions. For the first quarter, T-Mobile was equity method subsidiary. And after the sales, it was converted to SB P/L-based valued company. And since 22nd of June to the end of March, unrealized gain or loss in valuation of investments for that period was recorded here. Other than T-Mobile, Lemonade SoFi, Berkshire Grey and the others', valuation gain on those companies were also included here. When it comes to derivative gain or loss on investments, this is before the earnout. Segment income is shown at the bottom. JPY 600 billion of equity method, Alibaba's gain from a derivative transaction was there, and fine from the fair trade rules was imposed on Alibaba, about JPY 3 billion. And that fine was already factored in on our booking. For FY '20, derivative loss from Alibaba's transaction was JPY 477 billion, and all in all, segment income was JPY 760 billion for FY '20. Next slide is just a reminder, partial sales of T-Mobile shares and evaluation at FY '20 end. Top left, we had 305 million shares before the sales, and part of them was sold and options were provided to Deutsche Telekom. And all in all, we have 0.4% owned. Call options received by Deutsche Telekom was recorded in derivative related gain or loss. And likewise, shares held by the company, excluding 5 was 0.4%, and the total if 7 is acquired, JPY 54 million. And Page 7, shows investment in listed stocks and other instruments. Those items are where which transaction was reflected. On Page 8, investment in listed stocks and other instruments, main impact on B/S and P/L compared to second quarter, for example, those. Numbers are much smaller. If you look at derivatives, long call options of listed stocks, short call options of listed stocks, et cetera, again, those numbers are much smaller than before. In the fourth quarter, there are no significant events took place needs explanation. So moving on to next slide, Page 9, price sensitivity of derivatives at SB Northstar. Since second quarter, we have been disclosing this information. Just for your reference, Page 10 details any progress of the agreement between the company and WeWork in October 2019 and in FY '20. Well, since October 2019, we have seen some progress. So this is a slide for your reference. We made an announcement of tender offer up to JPY 3 billion, but we canceled as of April because terms were not satisfied. But then tender offer up to JPY 1.5 billion was decided, and you can see details on the right-hand side. And talking about credit support and notes purchase, if you take a look at cell c, up to USD 1.1 billion in senior secured notes to be issued by WeWork. The term is extended and amount was revised to JPY 0.5 billion. So from SBG's perspective, how we treat WeWork is shown on next slide. When it comes to valuation of WeWork, moving on to Page 12, please, actually. So from our perspective, what is the fair value of WeWork, which is shown on the bottom of Page 12. So the valuation WeWork goes up. The valuation of WeWork shares that we have go up accordingly. And as you can see on the top chart, numbers should be improved in accordance to the performance of the WeWork valuation. For example, liabilities related to loan commitment, liabilities related to financial guarantee contract. Compared to the previous quarter, those numbers got improved. WeWork is currently anticipating SPAC merger and, of course, we need to look at probability of SPAC-based listing. And as probability goes up, we will factor in that when we calculate valuation. So as of March 31, JPY 3.8 billion was the fair value of WeWork, and we might anticipate to make it higher. So -- but as of March 31, 2021, the fair value that we used was JPY 3.8 billion. That's for WeWork and moving on to Page 13, derivative gain on loss on Alibaba Prepaid Forward Contracts. On our financials and big numbers are always shown every quarter, as Alibaba price goes up, which we should be happy about, but from accounting perspective, we should anticipate negative numbers. That's, in principle, true. In the third quarter, agreement was amended. And because of the amended contract, if you take a look at the blue piece, Day 1 loss on the amendment, JPY 275 billion was recorded. That's an update as far as this quarter was concerned. And on the right -- bottom right of this page, you can see the B/S items relating to Alibaba prepaid forward contracts and impact on PL is shown on the top right, about JPY 500 billion income before income tax and JPY 732 billion net income. Those were impacts on P/L from Alibaba transaction. Page 14, structure after business integration of Z Holdings Corporation and Line Corporation. As you can see, Line became group of our company through SoftBank Corporation. For FY '20, we recorded 1 month worth of Line Corporation's financials. PPA should be completed in FY '21 and amortization should start next year. In appendix, asset to be wrote down are explained in appendix. For your reference, about JPY 15 billion to JPY 20 billion amortization or writedown is what we are expecting from Line's assets. Next Slide 15. Identifiable intangible assets is currently JPY 407 billion and goodwill JPY 611 billion (sic) [ JPY 617 billion ] were recorded. We don't have finalized numbers until PPA is completed, but this is the numbers that's currently identifiable. And next slide, entry into agreement for sales of all shares in Arm overview. So this is a summary of transaction. At the time of closing, NVIDIA's shares, depending on the price of an NVIDIA share, the amount sold will be finalized at the time of closing. So at the moment, this number is just for reference. At the time of contract, the amount talking about was for JPY 40 billion or something. But from an accounting perspective, the amount will be finalized at the timing of closing. Until the closing, how should we look at Arm from an accounting perspective. Arm is a consolidated company, but there's a huge chunk of goodwill. So we check every quarter if we should start amortizing goodwill. Before this NVIDIA deal came up, we used DC. But because of NVIDIA deal now, probability of deal is factored in together with DC, when we do valuation of Arm. Currently, of course, we don't feel necessity of amortizing Arm's goodwill. Next slide, Page 17, again, talking about Arm, currently, a subsidiary of the company, and it will be deconsolidated at the time of closing and probability of the deal is not specifically high at the moment. That's why we treat Arm, at the moment, as continuing operations. But before closing timing, it should be deemed as highly probable, then Arm will be reclassified as discontinued operations. And this page shows how we treat Arm. There was a similar case of back, Sprint. Previously, subsidiary, but later deconsolidated. So logic wise, we treat Arm similarly from accounting perspective. Next slide, SPACs controlled by SBG subsidiaries. Of all SoftBank Group, how many SPACS are there? It's shown on the page. As SPACs sponsor, sorry, SBIA, LatAm Funds and Fortress are currently sponsors of some sort of SPAC. And all in all, you see 7-1-1, total 9 are SPAC. And only 1 out of 9 is de-SPAC. Most of them are still in the process of selecting a targeting company. Next slide, SPACs controlled by SBG subsidiaries continuation. For FY '20 where and how we should see SPACs. In total, 9 SPACs controlled by SBG subsidiaries raised JPY 3.3 billion. Breakdown includes JPY 1.1 billion by SBIA, JPY 230 million by investment fund business in Latin America and JPY 1.9 million in Fortress. So currently recorded as liabilities because, eventually, those should be paid back. And it's classified as our financial assets because it's currently in a trust account in SPAC. And at the very bottom, you can see impact on 1 SPAC deconsolidated after de-SPAC on FY '20, which is what I'm talking about as Fortress de-SPAC. Upon deconsolidation, the increase in the value of the shares held by the sponsor was recognized as gain as worth as JPY 13 billion. Next slide, Slide 20. I'm sure you're already familiar, but let me pick up some highlights. Talking about taxes, whether it's current or deferred, those taxes are recorded here. So as a SoftBank Group, how much cash tax to be paid? That might be one question. But as you know, partial sales of SoftBank KK took place as a transaction from subsidiary to subsidiary, the portion that we paid in cash is not reflected in P/L, but counted in B/S. So for FY '20, after the term is closed, how much cash tax is there? KK's numbers, I'm sure you are familiar with, every year, about JPY 200 billion cash tax. With the sales of partial SBKK shares, SBGJ should pay about JPY 200 billion of tax. And other companies pay taxes as well here and there. And in Japan, about JPY 500 billion of tax being paid. And overseas, the question, how much are tax related to sales of T mobile? Of course, there are other activities than sales of T-Mobile. About JPY 100 billion tax to be paid is related to partial share sales of T-Mobile, just for your information. On Page 21, tax rate analysis. Effective statutory tax rate is 31.5% and actual tax rate 23%. The permanent difference contributes a lot to the reduction of the rate against valuation gain on Vision Fund. How much tax rate should be considered? That's 1 big question. It's currently minus 22% because it's overseas transaction. And we -- so long as we see the lower rate than 31.5%, it should be all right. That's our view of tax rate or permanent difference. And moving on to Page 31, please. Breakdown of goodwill, intangible assets. If you have a look at this, you will expect how much amortization or goodwill will take place in the future. Thank you. So next, I would like to invite Mr. Goto to give you our financial update.

[Interpreted] This is Goto speaking from SoftBank Group. Thank you very much for joining today. The other day, the day before yesterday. Masa Son, Chairman and CEO, made an earnings results announcement. And our net income, about JPY 4.9 trillion was recorded, which was the best record amongst the all Japanese company, which is -- which make me very happy about. And when Masa was asked to make a comment about this number, and he said this is a combination of lucky and lucky and lucky, which I do also understand and feel the same way. But at the same time, Masa said that he's not satisfied yet. This is not the level that I'm happy with. That's what also he said in the announcement. And to -- of course, that we do need to keep the good results and not the onetime gain. That's something that we are discussing internally. In the previous earnings results announcement, we call it a producer of golden eggs. And this time, I believe we have a pre-agenda. First was the discovery and analysis, second is enhancement of the structure and the system, and the third is financing. In other words, we need a framework. We need a structure. Once we built such structure, we should be making the best out of it, then we will be able to be stabilized and also making good results amongst all the other peers or in the other sectors. So setting the form, setting the framework. How can we define our investment policy? How are we going to break down our target? How can we best efficiently invest in such businesses and companies? I believe the reorganization of investment team is something that we have done this time. And also many talented fund managers need to be able to play full, which we do need to provide such a good environment for them to play the best so that -- there are many factors, but at the same time, there are sometimes fragile as well. I think this is the same as a baseball team. Creating the baseball team, which wins all-time and also creating the best investment team all-time is something similar because I, also, as a President of Softbank Hawks. We don't have a third hitter, fourth player. We don't have any ace. We don't have a good pitcher. But still, we have quite a good level at this moment. Then once that those good players comes back from the recovery, then that, I believe, we'll be able to be better. So same as that, that we create a good fund managers and also create a good environment for them so that they will be able to play the best. To create such framework, what is necessary is a stable financing environment? That's something that we need to be prepared so that, as an investment company, we -- they will be able to play the full. From the sense our job, our task in finance team is becoming even more difficult -- important going forward. How much can we sustain our stable position in terms of financing? And also, how can we address when there is any risk arise? Also, that's important things that we need to keep in mind, and that's the way that we are heading right now. So going into my presentation slide, so starting from the summary of fiscal 2020 for agenda I set up for this time as a summary. Investment business itself was very robust. Although, as Masa said, that we are a combination of lucky and lucky, but still doing pretty well. We have recorded JPY 7.5 trillion in total for gain on investment. Status of assets, we have close to JPY 30 trillion level for equity value of holdings and also content of these asset has become even more balanced, which is the biggest results or contribution that we have achieved this time. With this asset of going public out of Vision Fund is now increasing to 1/4 of our total assets, which means that's leading to more and more diversification in the JPY 4.5 trillion program, which was announced last March, and progress has been updated to you every occasion. As of the end of March, we -- I would like to kind of sum up what's the overall JPY 4.5 trillion program. So the shareholders return by JPY 2 trillion and also JPY 2.5 trillion in addition to that. And as actual amount-wise, we have reduced our debt by JPY 1 trillion. So as a result, loan-to-value as of the end of March, 12.4% for our loan-to-value. I hope you're happy about this level, which is quite a stable level of the business operation. One another thing is a cash position, which is also important agenda as a financial policy. We have close to JPY 3 trillion in our hands. Some people say that we have too much in cash position, so it's not efficient, but that's something that we set as a financial policy. So regarding the investment business, I would like to pick up some highlights. JPY 7.5 trillion was the gain on investment. Back in 2019, it was a big rate. You remember that pretty well. It was a big, big loss, so that, that's something that we had to say last time. But this time, we are happy to be able to announce the good result. And this also reflected to our net income. And these are the main investment activities. So lucky and lucky is because coupon listing was quite a large impact to our result. As of the end of March, JPY 2.8 trillion market value. And since then, the share price is dropping. Right now, it's about JPY 18 billion or so. So about JPY 1 trillion difference compared to March end at this moment. However, assets have ups and down, of course, so that we don't want to be too happy or too depressed based on those ups and downs of the share price. And there are other appeals as well in addition to coupon. And also, we have some exists, Vision Fund I asset has been used for exits one by one or gradually and use those source for our distribution to LPs. So using those resource, we would like to use those. And at the same time, putting some leverage so that we'll be able to achieve the new investment opportunities. Next is the share price and also the bond deals. This is something I believe you are familiar with. Share price compared to indices, we have been -- very much outperformed, JPY 4.5 trillion announcement last March compared to that. That time, since then, market as well as our share price was kind of in difficulty due to the COVID-19. But since then, some improvements in the environment or improvement in outlook, market has made an improvement, and at the same time, our share price has also improved along with the share price because that also gives us a better credibility of healthiness, which can be expressed in the bond yield. On your right-hand side, very steady level. When I say steady, but the rating is not that high, so that, compared to A rating company, we are spending quite much for interest payments. But instead, we are actually making even better investment gain compared to such company. So rather our financial policy's most important point is the flexible or agile financing along with the management decision in timely manner. That is very important for us. So that is why that we are looking at the worldwide market, worldwide investors, then try to enhance the good communication with those. And next is the status of assets. Equity value of holding, about JPY 30 trillion. And as you can see on this slide, the movement of this bar graph, what is increasing and what is decreasing gradually is kind of a point here. On very top, the Alibaba portion is quite important. I would say, most important asset for us, of course. But at the same time, if we have too much ratio in Alibaba out of our equity value of holdings then rating agencies or crediting investors, of course, equity investor as well, sees it as uncertainties of our future as well. And so, in an aggressive way, we would like to improve the situation. And as a result, Alibaba share, share price is decreasing, which is another reason why that gives us decreasing in the ratio of equity by the holding for Alibaba. But still, it has quite a large position. But I want you to focus on this dark blue and light blue. This is the Vision Fund I and II. The ratio of these 2 combined, compared to very far left, back in March last year, it is increasing little by little. And now they're taking about 25% of total. And I would like to go in a little bit more detail in that. Compared to 1 year ago, our equity value of holdings has increased by JPY 3.5 trillion. And where does that come? It, too, is seen in the graph. We have announced JPY 4.5 trillion program, which means JPY 4.5 trillion assets will be monetized. And in reality, on your right-hand side, JPY 6.1 trillion has been monetized already with that according to -- in accordance with announcements. So since the March last year, JPY 6 trillion of the monetization has decreased from here. But at the same time, additional investments JPY 1.6 trillion, follow-on investments and also JPY 8 trillion of increase in equity value. As a result, JPY 3.5 trillion increase in terms of equity value holding compared to last year. So we monetized JPY 6 trillion equivalent of assets. Still, we are increasing in value -- equity value holding by JPY 3.5 trillion. That's how you can read this slide. And the diversification of portfolio or the pie chart, you can clearly see. The same as the bar graph in 2 pages before, but basically, that we are taking Vision Fund 1 and II, combined 25% right now. For this year's plan, of course, we are to increase this portion for this fiscal year so that maybe around less than 40% can be quite appropriate level for Alibaba's ratio for our investment portfolio's point of view. So our rating has been maintained in the same level for quite a long time. For -- even for the rating agency, I believe that they understand our potentials, our real capability-wise, but they do have many interpretation as well. So we would like to clarify our value one by one so that we'll be able to have a better discussion with rating agencies. And the increase of NAV per share. Of course, contribution from share buybacks was quite large. On your left-hand side, net asset value itself has increased by 20%. But in the past one year that we have bought our share back for about JPY 2.5 trillion, increase -- including those, the net asset value per share has increased by 43% this time. So asset value increase and also return to shareholders effect. All those 2, combined, has made a good contribution back to shareholders. And this is the investment activities of SBG. About a few years ago, when we didn't have any Vision Fund, SoftBank Group itself was called as a huge fund, investment fund. But since then, our telecom assets, IPOs and so on, that we have clarified our investment vehicle as SBG. We -- as a holding company, we would like to manage such fund vehicles and, at the same time, manage in oversea or supervise existing portfolio of SBG. So we kind of do the supervisor -- as a supervisor to look after those investment vehicles. SoftBank Vision Fund I and II, they focus on AI and unicorn. So it's not AI or unicorn, but it is AI and unicorn, other focus for Vision Fund I and II, same as LatAm Fund. The size is not that sizable compared to Vision Fund, but they are sharing the same vision as Vision fund in terms of target for their investment. And Northstar, from the excess cash of what we have monetized as on a private equity, those are the company that we would like to focus, so that we've been doing some analysis on public securities as well as the private securities. And this is the gain and loss on investments. Fourth quarter on a far rate, JPY 3.6 trillion. In cumulative number-wise JPY 6.4 trillion for fiscal '20. Vision Fund I and II investment performance. On your left-hand side, Vision Fund I, together with other LPs, JPY 85.7 billion has been spent. And if you look inside, there are 3 parts. So private equities maintain here. On top of that, we have some listed securities and exited securities. So there are 3 types of inside of this bar graph. So those private securities has made a performance by 1.1x, listed one is 4.2x, exited for some 1.8x. So in total, amount-wise, JPY 86 billion -- close to JPY 86 billion became JPY 140 billion as a result. On your right-hand side, Vision Fund II, exit has not been shown here in numbers. But in total, increase from the JPY 6.7 billion investment cost made JPY 11.2 billion cumulative investment return. In IRR, in next page, Vision Fund I. As an LP portion plus performance fee, calculation-wise, net equity IRR was 39%. Next page shows the Vision Fund II case, same as previous page, that gives us 119% of net equity IRR. Combined, Vision Fund I and II, 43% of net equity IRR. So our historical 40-year SoftBank Group IRR is about the same level as this coincidentally, so that we believe that we are able to achieve such a good number, which we are quite happy and satisfied with. So how can we sustain such a good result as a sustainable business is going to be a challenge. And hereon, a bit different subject. This is the investment in listed securities. You recall SB Northstar as an investment vehicle for that. And on the far right, a bit of the loss is the March end result. We have some shares transaction, derivative transaction included here. Net-net, that gives us, on your far right. In some details of that, in United States, this has also been disclosed by filing of 13F. Amazon, Facebook compared to those SPACs in the fourth from the bottom, we have some investments in each SPAC as well. That's a new column. In others, this is the U.S. disclosure base. So anything above -- outside of the U.S. is not the target for the disclosure. So that's why that we put it in others. So in total, we are close to about JPY 2 trillion for this investment. And because we receive a lot of question about this, so that's why we put it into slides in terms -- for the option transactions. Last year, December -- compared to last year, December, fair value-wise, a little bit of slight decrease and also on your right-hand side, notional principle. Net-net, not that large, but the lever of the notional principle is decreased as well. So we've been doing test and run. And going forward, we don't have any intention to increase further from here, just gaining -- accumulating our knowledge and know-how. And I'd also like to touch on the summary of JPY 4.5 trillion program. In the beginning, when we announced a JPY 4.5 trillion program. Actually, that we have excess JPY 1.1 trillion to monetize JPY 5. 6 trillion, people may say, "Why did you do that much?" But as we explained, to do the JPY 4.5 trillion on, we cannot prepare only for JPY 4.5 trillion instrument. But once we say -- we announced, we would like to achieve so that we actually overprepare for the target amount. So even we work on the monetization, but if something happens, for example, environments has changed store target IPO's schedule changed, based on those, that we may not be able to achieve some of the program. So that is why that we prepared more than JPY 4.5 trillion. But actually, we were able to do all those instruments. So that's why that we have overachieved this program. And this is -- this, divided into 3 portions. For JPY 4.5 trillion, financial improvements returned to shareholders, that's been used. And also, excess JPY 1.2 trillion, that's the new money. So that's going to be -- that can be used for the new investment. And those, we have executed one by one. So let me explain one each. Here explains about debt reduction of JPY 1 trillion. More specifically, we have done a buyback of bonds. First, we have done the domestic bond buyback, JPY 167 billion. Also, we bought back foreign currency bonds in the second quarter and JPY 224 billion. Repayment of bank loan about JPY 600 billion. So in total, it's JPY 1 trillion that's repaid or reduced the debt. Also, for the buyback of bonds, I would like to go a little bit in detail here. On your right-hand side, domestic bonds buyback that has done in July last year, it was the biggest, actually -- biggest buyback in bonds, and the first time for retail bonds. And what we have understand was that we have ordered JPY 200 billion. But we were not able to achieve that amount, which was a good thing, as a matter of fact, and happy news for us because for those, both our domestic bonds, don't want to give up on that, and they would rather like to keep hold on to it for long term. As a result, this market is something we do need to be thankful about, grateful about. And on your left-hand side, the buyback of foreign currency bonds. Looking at the market, we have bought back about JPY 200 billion -- JPY 220 billion. And outstanding -- about 17% of outstanding was used for this. And also, along with this timing, foreign bond -- actually, we've been -- we have quite a long history since 2003 that issuing the global bonds. And since then, business model or the structure of the SoftBank Group has changed quite largely. So that's why that we wanted to amend the terms to be suitable for the latest sale of SoftBank Group. So that at the time of buyback that we were able to also amend some of those terms. We are able to reduce the outstanding by buying back. And as an issuer, we were able to change some of those terms. So that was a very good transaction for us. This shows the return to shareholders. The day before yesterday, on the day of earnings results announcement, we were able to complete our share buyback of JPY 3.5 trillion. On the right-hand side, cheapest level was JPY 2,687, but since then, that we have started our program of buyback and in total, average buyback price was JPY 6,815. I believe there was also quite a good level of the price that we bought back. And this is the loan-to-value trend as a financial improvement point of view. As of the end of March, 12.4%. Before we announced this program, it was around 18% of loan-to-value. This is still the good level of loan-to-value. We call it a quite healthy level. So 25% is kind of a threshold, and we've been announcing this 25%. So as long as we can manage less than 20%, I believe that's -- even that we see some market crash, but still we believe our safetiness or soundness will not change. But executing this program, loan-to-value level were around -- improved by about 6% to 7%, which is quite a large portion in terms of loan-to-value, but we are able to achieve that. JPY 4.5 trillion program was executed as a result from the credit. In business point of view, many of them has quite uncertainties, which, I believe, is this program, we were able to resolve such uncertainty so that even in a difficult market situation, we were able to execute the program or initiative that we wanted to conduct. So that's quite a good proof for the credit investors. Loan-to-value, as I mentioned earlier, we still being are able to secure the good buffer for a financial -- as a financial cushion. And our -- we keep our financial discipline. And for the fourth quarter, financial activity wise, which shows in the next slide here, we have 3 major activity menus. Financing point of view, JPY 1.2 trillion redemption is expected this fiscal year. This will be almost the largest redemption amount for us in the history. So domestic hybrid bonds, in total, JPY 450 billion in total. And the part of that, for institutionals that we are going to issue ahead of schedules for JPY 177 billion. Original principle for institutional was JPY 50 billion. So this is 3x of that. Demand was actually even higher. But as a result, more than 3x of financing were able to achieve. So for institutional investors see us as very attractive, and we are able to take quite a good size from there as well. And when for the -- we do also have a retail hybrid as well. So along with the schedule for the deduction of those that we would like to consider the issuance, looking at the market, we believe that is going to receive a good demand for that, too. In March, we had borrowings using Alibaba share, which will be a kind of a bridge financing type of financing for the new investment opportunity. Debt reduction has also been done, which I have explained in earlier page. Cash position about JPY 3 trillion as of the end of March. And as we committed, we always like to keep our cash position for 2-year equivalents of redemption amount. So we have quite about 2x or double the size of the redemption required in our cash position. And this is the gross interest-bearing debt that I want to share with you. In total, JPY 13 trillion looks like our gross interest-bearing debt, but out of which JPY 4.7 trillion are non-recourse to SoftBank Group. As an asset-backed finance, we provided assets. So by providing assets, we do not have any obligation more than that. And the light blue in the middle, these are the SB Northstar, which handles the listed securities investment, JPY 1.8 trillion borrowings done, which I believe I will explain to you in more details on the following page. But what I'm trying to say is that these 2 are separate from our SBG finance. So these are separately set a non-recourse to SBG. So CL of credit, excluding nonrecourse, is JPY 6.4 trillion. And here shows cash position, same as that we can break down into 2. Light Blue portion is the Northstar cash or cash equivalent. So for Northstar, JPY 1.8 trillion loans, as you saw in previous stage, but if you break that down, out of JPY 1.8 trillion, JPY 600 billion is asset-backed financing using Alibaba share and the remaining JPY 1.2 trillion based on the variety of assets for financing. But cash and cash equivalent and excluding any collateral that we have JPY 1 trillion level of the cash. So this is consolidated basis excess portion of ours. So if we need to collect the money that we'll be able to flexibly collect and also using assets for the case of asset-backed financing. So those are the kind of assets or the vehicles that we are using as managing our assets. JPY 2.5 trillion out of those is -- or I would say, JPY 2.6 trillion is our cash position. And I said JPY 3 trillion for the previous page, but we still have JPY 300 billion of credit line availability. So that's a kind of addition. Commitment lines have also been improved. About 2 years ago, what we have transformed into investment company under new definition. I'm also the ex banker. I understand investment company is really difficult to finance the money from the bank's point of view. And over 2 years, we've been asking -- providing a good communication so that they can deepen our understanding of our company and business so that we are able to improve the terms of loan or terms for any financing, one by one, so that we are able to kind of transform our financing facility as well in good way. And the net interest-bearing debt shows in here our number. On your right-hand side, JPY 3.7 trillion is the actuals for our March end number. And also, JPY 4.8 trillion is a non-recourse finance to SoftBank Group. Here is the bond redemption schedule mentioned earlier. JPY 177 billion has already financed. So remaining JPY 1 trillion in bond market, we would like to raise for refinancing. And mainly for the refinance, we like to keep the good many of those and like to execute one by one. So I don't see any risk for refinancing here and even some unexpected situation or event happen. But still I like to remind you that we have a good cash position in our hands so that we have no -- 100% no risk the bond redemption, even there is any market crash. And financial strategy, last one, for fiscal 2021, as an investment company. I would like to once again share our financial strategy. Family keeping financial policy is very important. And we don't change the expression of our financial policy. We keep it as it is. On top of that, we would like to welcome financial management to enable reproduction at the investment business on an expanded scale. This is the kind of additional focus point for us for fiscal 2021. And as an investment company, we believe that this is going to be important to make sure that we have a firm and stable structure for us. And these wording, we haven't changed, and I have no intention to change that for this fiscal year. This is shared by all the management, including Masa. And again, here, at the time we addressed WeWork, this was the slide that we shared. So self-financing for portfolio company and non-risky package. And what we have shared, the financial management enable reproduction on investment business on expanded scale. What does that mean? On your left-hand side, from the -- majority of our investment activities are done by our fund. So when fund made investment and after that we will be going to the stage of cash flow generation. And as a result, that we will be able to use those for reinvestment. So 5 years later, 10 years later, ideally, we would like to be on the stage where we don't need any leverage, which is quite optimistic situation, but to make that happen, investment timing and the collection timing, and if the cash is in net position, then that can be possible, but that timing is not always appropriate so that the leverage can be complement for that timing, this delta. And if we don't have leverage using diverge timing, we're going to miss the opportunity. So to avoid any opportunity loss that we need leverage. And with that, we believe it's also important for us to expand our enterprise value. On your right-hand side, how we should see the leverage being -- speaking about this quite often, but basically, leverage is basically a bridge. As an investment company, using our collection of money that we would like to use those as a source for new investments. However, sometimes there are gap and the gap fill will be done by leverage. But in any environment, this financing needs to be achieved. So that is why that we need a variety of options for financing. And at the same time, we should be able to achieve such financing scheme in timely manner. So that is why through -- with the communication with analysts security firms, banks, investors, that's something that's very important. And for this, we've been focusing on this and understand the importance. So we don't have any goal here. We always need to improve further on that so that we can emphasize the dialogue with market and financial institutions as much as possible. Cycle of investment recovery. JPY 4.5 trillion program was our main focus for the past 1 year. So that's a very clear message to you, I believe. But a source for the new investments, sometimes that we have monetized or even that the excess monetization or a bridge leverage financing. So each has their own role. Not only the new investment, but we also need to be prepared for the financial balance sheet improvement, shareholders' return, JPY 4.5 trillion was focused on that, but anything excess on that, that will remained as a source for new investment. And for those, hopefully, that they will grow and will come back as an exit and can make a good distribution, then that can be a good source for our next new investments. Sometime in the future, I said that we may be in a stage where we don't need the leverage. At this moment, not only the distribution by the fund, but also we need a divestment or cash enhance and sometimes leverage financing that we need to invest in Vision Fund 1, Vision Fund 2, Northstar or some other funds. So those -- once we see the increase of portfolio companies, we will be able to have a larger source of distribution out from those funds. And those amount can be a good source for the next fund in the future. This is a direction of financial management. So this has actually happened in the past 1 year. This illustration has been used for about a few years ago, and what I said, the investment asset value sometimes in good time, sometimes in that time. When it is bad time, it's worrisome. What we need to do at that time? We believe that we need to secure the soundness of assets so that the divestment of asset improvement, loan-to-value, that's something that we need to work on. While we're doing so, and we see the timing change. In the last run, net debt is increasing. But at the same time, we're increasing -- the increase of the net debt is below the increase of the asset value, then that we will be able to improve the loan-to-value. Back in March last year, we saw the kind of the phase of decreasing in investment asset value. And there, JPY 4.5 trillion program was announced. By announcing this program, loan-to-value has improved largely, net debt has decreased largely. And in the process of that program, investment -- asset value is an increasing trend. Under such circumstances, loan-to-value also increased along with that. So 9% -- from 9% to 12%, loan-to-value has increased by about 3%. But when you look at the investment asset value on top, when we improved loan-to-value to 9%, investment asset value was 24%. And right now, in latest, March end, 29.8%. But actually, we have more than that because of the buyback, JPY 2.5 trillion was used. So actually, adding JPY 2.5 trillion, about JPY 32 trillion of the asset value was there. JPY 24 trillion -- JPY 32 trillion increase for investment asset value and loan-to-value has slightly increased. But at the same time, net debt increase was limited. And we see some trend in increasing asset value, then that we'll be able to see more improvement in loan-to-value. So as we show you in the previous page, along with investment asset value, net debt will also increase. But at the same time, we will see, in general, loan-to-value decrease. So that's the kind of ideal case for our business running. In the -- for our role, especially these days as an important index for investment, we've been start communicating our ESG initiatives for SoftBank Group. Past 1 year, once again, let me summarize what we have done in fiscal 2020. We have established the kind of a base or foundation for ESG as a holding company. So starting from last year, we have appointed Chief Sustainability Officer, also set up the Sustainable Committee. So focus point on environment, social and governance, having each dedicated team to work on that. And also, we are managing with the many group companies. And each of those group companies are also working on the ESG activities. As a holding company SoftBank Group, especially the team did report to Masa, COVID-19 was our biggest focus for us in the past 1 year, especially, we focus on this social area. This time may not be put it into the traditional ESG point of view, but hoping that we will be able to be making some contribution to the world or to the people around the world. For the next slide and on climate change response. As a holding company, each core companies are making good activities to promote greenhouse gas reduction. And also next page, diversity and inclusion initiatives. In our holding company, level -- Vision Fund level, LatAm Fund level, each of them has some addressing of these initiatives. In the COVID-19, these are the actual numbers that you can refer to. What we are focusing on right now is a PCR test center that right now, we have 3 locations in Japan. And actually, enterprise that applied for this test is more than 7,000 companies. We have more than 20,000 tests available. That's 10% of Japan is actually tested by our test center at this moment. Total number of tests is already coming close to 1 million, and we would like to keep our efforts onto this governance. On your left-hand side, these are the items that we've been worked on and achieved to enhance the governance. Sometimes it comes out with the slowdown of decision-making but that is also our strength as well. So we keep the good structure for the swift decision making, but at the same time, have integrated governance. But at the same, transparency is sometimes our agenda. So that's another important we are pushing further. And this is something we can do as a holding company. This is the sustainability integrations. We've been investing through many funds. So whenever we make a decision on investment, investment criteria is also including sustainabilities. And that being resolved by the Board and the details has already been shared and discussed with the member of investment teams. Majority of such portfolio companies in this potential for investees are already focused on such sustainability issue, but some of them are still behind, sometimes have some risks for those companies. How can they well manage and how can they well address such sustainability issue that we try to educate and also monitor how they can work on. And based on that, that we would like to consider the investments, and that can be also a good pursuit for the investment upside. It was a bit of rush, but that's all from me. Thank you very much.

[Interpreted] Next is Mr Navneet Govil that we would like to invite him as a CFO of SoftBank Investment Advisers. Navneet, please unmute and start you presentation. Thank you.

Hello, everyone. Before we begin, please read SBIA legal disclaimers on Slides 2 and 3. You may refer to the online presentation for more details. For anybody seeking more information on our firm, please visit visionfund.com. To see periodic reviews on matters such as firm updates and new investments, please visit the SoftBank Investment Advisers LinkedIn age. Today, as you'll see on Slide 4, I'll summarize our key performance highlights for the first quarter of calendar year 2021. I'll then discuss the financial impact of Fund 1 and Fund 2 on SoftBank. In my In Focus section, I'll discuss how in the first 4 years of Fund 1, we have created value for our limited partners and show how our portfolio is well positioned for the future. As part of this discussion, I'll revisit our distribution waterfall and demonstrate how our limited partners, including SoftBank received distributions. Let's get started with a summary of our progress as well as some key highlights from the last quarter. On Slide 6, I'll begin with a snapshot of our performance for both Vision Fund 1 and Vision Fund 2. Cumulative investment gains of $62.1 billion have been achieved on an acquisition cost base of $91.9 billion, representing a 1.7x multiple on invested capital. This brings the total fair value of both funds to $154 billion. Looking at just Vision Fund 1. In the last 4 years, this fund has created value for our limited partners. Several of our portfolio companies have shown themselves to be bold disruptors in large markets. As a result, we've distributed $22.3 billion to our limited partners. The key recent highlight for Vision Fund 2 is the additional $20 billion committed by SoftBank. At $30 billion, Fund 2 is now the third largest technology investment fund in the world. This additional capital paves the way for more investing from funds 2 as we capture the opportunities in front of us. As seen on Slide 7, activity in our second fund ramped up quickly in response to the accelerated digital shifts we see happening in the economy. During the quarter, our investment teams deployed $1.9 billion of capital into 23 new and existing companies. While many of our Vision Fund 1 companies are well known, there has been less attention on the innovative, disruptive and thriving businesses that make up our Vision Fund 2 portfolio. Since the launch of Fund 2 in October 2019, the portfolio has grown to 44 companies. We're witnessing many entrepreneurs leverage data and artificial intelligence, and we're wrapping up our pace of investments to meet the opportunity. We are excited about the potential of each individual investment. Taken together, we believe our companies represent a compelling, well-diversified portfolio. Our investment thesis for Vision Fund 2 remains the same as Fund 1. We evaluate investment opportunities from 3 angles: First, we invest in businesses that use next-generation technology platforms, leveraging data and AI that can rapidly scale and have a clear path to profitability. Second, we target massive global markets where there is an opportunity for a new leader to emerge. And third, we also look for ambitious founders with a clear vision and a deep understanding of their customers. On Slide 8, you can see that Fund 2 has invested $6.2 billion in companies operating across 9 sectors. To give you an example of an individual sector thesis, allow me to discuss one of them, HealthTech, where we've deployed $1.3 billion in capital across 12 companies. We're focused on 4 sub categories of HealthTech, which include: one, genomics and proteomics, two, therapeutics; three, medical technology; and four, digital health. As an example of a company, we're excited about is Pear Therapeutics, which was founded in 2013 and is based in Boston. Prescription Digital Therapeutics, or PDTs are software disease treatments. These are delivered via mobile apps, prescribed by doctors, paid for by insurance and undergo the same rigorous FDA scrutiny as new drugs. Pear's several FDA-authorized products treat patients with substance abuse disorders and chronic insomnia. Pear has developed the first end-to-end platform to create and commercialize PDTs at scale, which facilitates telehealth and electronic prescribing capabilities for doctors. HealthTech is a wide raging field. We will continue to invest in innovative companies across the HealthTech value chain from drug discovery to patient care. Here on Slide 9, I show our realized and unrealized gains for Vision Fund 1. As you can see in the middle box, significant value is unlocked when our companies list publicly. We believe investors will continue to be receptive to our strong market-leading private companies as they step toward the public markets. As of March 31, the gross investment gain for realized investments was $9.3 billion, and the fair market value of our unrealized public holdings increased significantly from last quarter to $54 billion, creating a cumulative unrealized gain on our public portfolio of $41 billion. Moving on to Slide 10. Coupang went public in March, listing on the New York Stock Exchange, raising $4.6 billion and making it the largest IPO of the year. And the largest U.S. IPO from a foreign company since Alibaba. The South Korean e-commerce's giant success is a testament to the strong adoption of e-commerce, digital payments and logistics innovation happening throughout Asia. With this IPO, Coupang raised sufficient capital to continue its growth trajectory, gain market share and add new products and services. Delivering goods quickly, offering best product assortment and selling at low prices are core to Coupang's value proposition. We invested in the company relatively early and have witnessed the company find new ways to go above and beyond to understand consumer friction points, then eliminate them. Congratulations to Bom Kim and the Coupang team on this major milestone. Our blended acquisition cost for Vision Fund 1 was $4.80 per share. The company's IPO in March was priced at $35 per share. The stock closed at $38.93 per share last Friday. Based on this closing price, our MOIC on this investment is 8.1x, representing a significant unrealized gain of $19.4 billion. In addition to Coupang, we saw several successful IPOs from both funds. As you can see on Slide 11, AUTO1 from Vision Fund 1 and Qualtrics from Vision Fund 2 also listed during the quarter. AUTO1 is an online car marketplace based in Berlin, which connects buyers and sellers of cars through a technology-powered online platform. Our total investment was $741 million at a blended entry valuation of EUR 15.12 per share. The IPO price per share was initially set at EUR 38. Based on last Friday's closing price of EUR 46.15, our MOIC on this investment is 3.1x. Qualtrics is a software innovator, building experienced management solutions that help enterprises better understand their customers, partners and employees. Our entry valuation was $30 per share at the IPO. Based on last Friday's closing price of $35.61, our MOIC on this investment is 1.2x. Since inception of both Vision Funds 1 and 2 through March 31, 17 portfolio companies have listed publicly with 4 new listings last quarter. We've exited some of them, but the ones we continue to hold in our portfolio are shown on Slide 12. Most are trading at valuations that are several times higher than our blended entry valuations. Our companies continue to attract capital from sophisticated third-party investors who are leading new investment grounds. On Slide 13, I show 4 more follow-on rounds raised by our companies in the March quarter. Like last quarter, all of these rounds were led by other reputable institutional and strategic investors at higher valuations. We also launched 2 more SPACs, as shown on Slide 14. SVFB and SVFC raised $230 million and $320 million, respectively. In addition to our first SPAC announced last quarter, these 3 investment vehicles give us flexibility to compete with fast-growing IPO-ready technology companies of varying sizes. We believe we have 4 competitive advantages: First, our global team of investing in operating professionals and their ability to source compelling opportunities; second, our clear focus on companies leveraging data and artificial intelligence; third, our ecosystem of SoftBank companies; and fourth, our global reach, deep local networks and the operational expertise entrepreneurs need. Let's discuss the Fund -- the impact of the Fund's financial performance on SoftBank. As you can see on Slide 16, for the year ended March 31, SoftBank's share of the Fund's net profit was $22.84 billion. Including management and performance fees totaling $9.83 billion, the total contribution to SoftBank from the Funds, less third-party interest, is $32.67 billion. This is a remarkable turnaround from last year and represents a significant economic contribution to SoftBank and its shareholders. Moving on to Slide 17. Cumulatively, from Vision Fund 1 inception through March 31, SoftBank's share of the Fund's net profit was $20.68 billion as an investor. Factoring in an additional $10.18 billion in accrued and paid management and performance fees, the total contribution from inception to date for SoftBank is $30.86 billion from the fund. On Slide 18, as of March 31, SoftBank contributed $27.1 billion in capital to the Fund. This amount is up in total value to $57.4 billion, driven by the increase in the unrealized value of the Fund, $1.7 billion in distributions and $9.6 billion in accrued and paid performance fees. Looking at similar metrics for Vision Fund 2. On Slide 19, we show that SoftBank contributed $6.8 billion in capital to the Fund. This amount has increased significantly in total value to S11.8 billion, inclusive of performance fees. To maximize value, we have developed a balanced and disciplined approach to monetizing assets. And the following -- in the following slides, I will explain our approach and share some examples. Moving on to Slide 21. We believe technology will make the world a better place, more connected, more efficient and more enjoyable. It is why we partner with our founders and investing companies, we believe, are writing humanity's next chapter. Our limited partners are part of this journey as well. We invest their capital and seek to maximize the value of our company through operational support and ecosystem synergies. We balance our desire to be long-term patient investors with our goal to make distributions to LPs. In prior investor briefings, I've described our investment process and value creation efforts in detail. Today, as shown on Slide 22, I want to focus on our monetization and distribution processes. Given the size of our Funds, we require a sophisticated balance and disciplined monetization strategy. While Vision Fund 1 is now in its fourth year, we opportunistically began monetizing assets in 2018. It was important to set a regular cadence of distributions to LPs. As the company matures and experience a liquidity event, such as an IPO or company sale, we are positioned to begin monetizing our holdings. In our decision to monetize and continue holding a specific company, we consider 3 factors. The first factor is strategic, a changing competitive landscape or shifting geopolitical risks might lead us to accelerate or postpone monetizing. The second is financial. If a public stock price has increased beyond our bull case expectations, we would consider accelerating our monetization plans. The last, opportunistic situations. For example, if we receive an inbound offer from strategic buyers to acquire one of our companies. Moving on to Slide 23. Since inception, we have steadily increased our distributions. For instance, within the first 2 years of Fund 1, we monetized and distributed our investments in Food Corp and NVIDIA. In 2020, distributions were driven by our public positions. So far in 2021, distributions have been driven primarily by the sale of OSIsoft. Here on Slide 24, you see Vision Fund 1's distribution waterfall, which outlines how proceeds are allocated between the different share classes of our limited partners. It is helpful to think of it like this. Below each cascade is a pool. Once each pool is filled, distributions cascade down to the next pool. This cascading waterfall is designed to provide each share class with appropriate risk-adjusted returns. For most, the capital structure includes preferred equity capital as well as standard equity capital. For SoftBank, however, its committed capital is all equity. Allow me to walk you through the specific steps of our distribution waterfall. First, we pay any accrued preferred equity coupon to our limited partners. As a reminder, this is 7% annually on the outstanding preferred equity capital. We then return contributions to our LPs with preferred equity investors taking priority over the equity investors. Once we've paid the coupon and return contributions, we then start to distribute to our equity investors. In exchange for being placed at this later stage of the waterfall, equity investors receive all the residual dates. Simultaneously to the distribution of gains to our equity investors, performance fees are paid to SBIA as the investment manager of the fund. Now that we know the key concepts, on Slide 25, let's look at how our actual cumulative distributions have cascaded through the waterfall. Of the total $32.3 billion proceeds distributed to LPs as of March 31, $4.7 billion has been used to pay the coupon to our preferred equity investors who have also received capital of $14 billion. Our equity investors, including SoftBank, have received $1.5 billion of capital and an additional $2.1 billion distribution of gains. Looking at Slide 26. Distributions are made to LPs according to the waterfall steps I just went through. The effect of these distributions is to reduce the outstanding preferred equity capital which, in turn, decreases the fund's coupon payment and going forward, increases the proportion of returns flowing through to equity holders. We have returned $14 billion in preferred equity capital to date, including $9.5 billion in the last 12 months, which has reduced our outstanding preferred equity capital to $21.2 billion. This means our 7% annual coupon payment has also declined meaningfully. We're only in year 4 of Vision Fund 1. On Slide 27, I show that we've already distributed $22.3 billion to investors. Over the next 8 to 10 years of Vision Fund 1, we believe there will be many other opportunities to monetize our companies and make distributions as more of them publicly miss or get acquired. As you can see on Slide 28, the value of our public and exited companies to significantly higher than our cost. Fund 1 is demonstrating that meaningful value is unlocked when our companies have successful public listings. In several cases, our company's new listings have created several return multiples over costs. A significant number of private Fund 1 companies are yet to be monetized. However, we believe when they are, it will extend our track record of distributions to investors. We are in the value creation phase for Vision Fund 1. Alongside these activities, we continue to monetize our companies with a goal of maximizing IRR and distributions to LPs. As you can see on Slide 29, last year, 26% of our portfolio based on fair value was comprised of exited and public investments. Now that figure is 58% on a pro forma basis, which provides remarkable valuation transparency into Vision Fund 1. Also important, there is a significant number of private Fund 1 companies that are yet to be monetized. However, we believe when they are, it will extend our track record of distributions to investors. To wrap up on Slide 30, the start of 2021 has been very busy. Our pace of new investments from Funds 2 has ramped up, and we're investing in many exciting start-ups. We also continue to invest in follow-ons from Fund 1. Importantly, we are maximizing value for our investors. We continue to support our companies and take advantage of value creation opportunities whenever possible. We believe our unparalleled ecosystem will only continue to grow. We have also seen the number of liquidity events increased, as evidenced by many of our companies listing publicly. When we look back following such an event, we believe our involvement and engagement with our founders helps maximize the value of our companies. While we represent long-term patient capital, our ability to regularly monetize investments determines the distributions we make to our investors. At this stage of Vision Fund 1, I am pleased with the progress we've made to date, and I'm excited about our prospects going forward. Thank you for listening. I look forward to your questions.

[Interpreted] [Operator Instructions] First from Japanese. First question is Mr. Masuno.

[Interpreted] Masuno from Nomura Securities. I have 1 question to Navneet. On 26 -- Page 26 of your presentation, distribution waterfall, if I may ask you a question related to this page. If you look at return of capital preferred equity and equity, 90% preferred equity so far. The outstanding is $21 billion on preferred equity. Going forward, I don't know exactly, but looking at the history, I would assume 90% would be going to preferred equity. So from SoftBank Group perspective, we invest from distribution from the Fund. It's important for them to get over $21 billion. And performance fee, it looks about $10.7 billion, combining Vision Fund 1 and 2, and performance payments should take place even later. Coupang's case, for example, as of end of March, stock price was pretty good. And -- but as of yesterday, it's down to $32 from $49. The stock price goes down from the exit. So going forward, how are you going to create cash from listed businesses? For example, OSI software, sales of business might be an option as cash creation. So the core question is, how are you going to exist listed stocks? Of course, you may want to take time, but if you have any basic idea with regards to how you're going to create cash from listed companies?

Thank you very much for your question. Yes. So just so, this is a deal-by-deal waterfall as opposed to an overall portfolio waterfall. So what that means is for every investment, first, the preferred equity capital is returned and then the equity capital is returned. So just because in the past, the vast majority of the capital that was returned was preferred equity, it doesn't mean that going forward, it will also be preferred equity. It depends on the investment. And for investments that have significant gains, there is performance fees. So you can't really look at the past returns of capital to determine what the future returns of capital would be. At a high level, if you want to get an estimate of how much equity capital will be returned to SoftBank Group and how much performance fee SoftBank Group would get, the best way to look at it is in terms of the multiple on invested capital. As long as the multiple on invested capital is significantly higher than 1, SoftBank Group should be able to get its equity capital as well as performance fee. And I'm happy to go into detail with you offline, if that would be helpful.

[Interpreted] So again, how are you going to generate cash from the exited companies or listed companies?

Yes. So there are a couple of ways to generate cash from listed companies. First, obviously, is as we sell the shares of those listed companies. By the way, we can only do that after the lockup period is over. And typically, there is a 6-month lockup period. There are other instances where if we were to take asset-backed financing on those public securities, we can then return that cash to the limited partners.

[Interpreted] I understand we have to look for long term. But anyway, thank you for your clarification, Navneet.

[Interpreted] I would like to take our next question.

[Interpreted] This is Hoshi from Nomura Securities. I have question -- 2 questions to Goto-san. First, LatAm Fund. So I think this is the first time Masa used LatAm Fund or referred to LatAm Fund in science. Although financial report covers LatAm Fund, but this was the first time Masa covers LatAm Fund in his presentation, and it is also covered in your presentation together with Vision 1 and 2, LatAm Fund is explained. So it comes out more clearly. So the outlook for LatAm Fund that I would like to ask you. So is it going to be a large size for the -- your holding? That's my first question.

[Interpreted] Goto speaking, thank you for your question. The timing wise, as you said, compared to the earlier announcement, you may think that this is a sudden appearance of LatAm Fund in our presentation. But actually, it has been discussed internally quite often. As you know, Marcelo Claure is from Bolivia. And he understands the potentials in market of LatAm Fund or LatAm companies. So communicating with entrepreneurs or having a knowledge in LatAm market is something that he has as a strength. Going forward, I believe there are several locations, which we can see the high potential for the growth in the future. India, Latin America is one. Africa is also the one, especially, LatAm Fund is operated by taking advantage of Marcelo's capability here. But when it comes to the size, Vision Fund is actually targeting globally, except for LatAm, Latin America. So the size wise, LatAm Fund, it's still very minor. So -- and you see that on Page -- Slide 12, you see the same size for each book. However, when it comes to the size of the amount of investment, we may need to change the size of the book later on then.

[Interpreted] So I have a second question. So holding company's financing strategy that I would like to ask. So far, you've been using Alibaba share or T-Mobile share for the asset-backed financing and you borrow money based on the collateral, using those shares as collateral. But other than those 2 names, do you have any plan to use for even those portfolio companies go public? So the financing approach wise, are you going to use those companies to go public, can be used for the asset-backed finance?

[Interpreted] This is Goto speaking again. As a holding company, all the finances [Indiscernible], but when it comes to Vision Fund portfolio, using such asset and rating is going to be done by finance team of Vision Fund. Same as Northstar. But coming back to distribution -- to SBG as distribution, we will think about how we're going to utilize. So Vision Fund and other Fund, we participate as an LP or investor, so that we have a total asset. So the variety of the financing scheme wise, we would like to utilize a variety of the assets for the financing instrument and not only asset backed but also the regular corporate finance, that if there is any demand for the investor that, that's something that we would like to research and analyze for that.

[Interpreted] Eguchi-san, next question, please.

[Interpreted] I have 2 questions. First to Navneet and second to Goto-san. First, with regards to creating cash like previous question. For the last quarter, JPY 420 billion was realized gain. And I'm sure that you manage fund for long term, but for 1 realized gain, I believe that this is progress that you have expected. And going forward, after lockup period, you may get even more realized gain, but you would rather support them for long term. So unrealized gain should wait until further down the road. So what's your view on that? You would like to generate realized gain soon or you want to hold on to that for some time?

It is a balancing act. There are 2 things that we have to balance. One is we want to maximize the IRR and the multiple on invested capital for each investment. In other words, maximize the gain on each investment. And at the same time, we have to take into consideration that we want to return cash to our limited partners. So it's finding the right balance between those 2. We also look at what we believe are the future prospects of an investment, how much further upside there is in an investment and whether or not that investment has achieved our expected return thresholds. So we look at all of those factors in determining whether we want to realize the gain or keep it unrealized.

[Interpreted] So at the moment, we see about JPY 420 billion unrealized gain so far. The performance has been very good and the return to LP is very stable. So would you like to keep this level? Or would you like to raise the level of unrealized gain? So from current level to the future, would you like to keep the level as is or increase or decrease?

It will depend on several factors. It will depend on how the equity capital markets are doing. It will depend on where these public assets are trading at. And it will also depend on what our expected return thresholds are. So depending on those conditions, we will determine how much of these unrealized gains we keep or we convert them into realized gains. Thank you very much.

[Interpreted] And second question is to Goto-san, please. Slide 51 and 52, talking about the governance. I think it's very crystal clear. And Masa also tried hard to clarify governance structure. So my question is with regards to governance of invested companies from ESG's perspective, from Goto-san's view, do you think that invested companies governance structures are very transparent enough from perspective now compared to before?

[Interpreted] Goto speaking. With regards to governance structures of invested companies, of course, as much as possible, Fund try to recognize and identify before making investment decision because we learned the lesson before. So management level of fund is improved. And from holding company's perspective, we oversee and manage how the funds are looking at the governance.

[Interpreted] Do you review or do you monitor on periodic basis how the governance is going of invested companies?

[Interpreted] Yes, we have risk committee and we identify issues by group companies at our Risk Management Committee.

[Interpreted] Thank you. Although that we passed some time, so we would like to pick up some questions. Oliver Matthew that I believe this will be the last question.

Just for Goto-san. This week, the discount to NAV of your share price seems to be getting quite extreme and surprising. What do you think about this?

[Interpreted] Yes. So you're asking, our share price is going hugely down, right? So for this I probably better to hesitate commenting on share price. But environmentally speaking, our variation or our company is directly impacted from the U.S. market. And also at the earnings results announcement day, we announced the completion of our buyback program. So I believe those are the kind of factors for that. However, when it comes to mid- to long-term period, how can we sustainably increase or increased performance of the investment and create and build such a framework is going to be more important for us, so the mid- to long-term period. And at the same time, keeping the increasing trend is something that we would like to focus on. Thank you.

[Interpreted] Thank you very much. This concludes the SoftBank Group Corporation's investors briefing. Thank you very much for spending your time with us today. This will be available on demand on our IR website, corporate website. Thank you very much again. [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]