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

Now it is time to start. Chairperson, please proceed to the podium.

Good morning. I am Masayoshi Son, Chairman and CEO of SoftBank Group Corporation. I'd like to thank you all for joining our meeting today. Now with your permission, I will chair this meeting, pursuant to the provision of Article 13 of the Article of Incorporation. I will call the 43rd Annual General Meeting of Shareholders of SoftBank Group Corporation to order. An Internet site is set up for our shareholders to exercise their voting rights or post questions. The agenda today is set out in the notice of this Annual General Meeting of Shareholders on our website. I'd like to inform you that the number of voting rights already constitutes the quorum. Now our emcee will inform how the meeting will proceed.

Please let me explain how the meeting will proceed. We will start by laying out the matters for reporting, outlining matters for approval, then we will discuss the business strategy and move on to a Q&A session on matters for reporting and matters for approval. Then we will take votes on the matters for approval.

Regarding your exercise of voting rights, visiting shareholders are asked to confirm by clapping. Online shareholders can exercise their vote right via the Internet. The Internet website is open to acceptable by online shareholders, but please note that your votes cannot be altered once posted. Following the explanations of the matters for approval and business strategy, we will have a Q&A session. First, we will address questions and comments received in advance via the Internet. Then we take all questions and comments from visiting shareholders. We would like to limit the number of questions to 1 per person so we can take questions from as many people as possible. The session will be closed at the start of the Q&A for online shareholders. Then we address questions and comments from online shareholders received today via the Internet. The website is already open for your submission. May I remind you that it will close 5 minutes after the start of the Q&A session. Please post your question or motion within 200 letters or less. We'd like to limit the number of questions to 1 per shareholder and 1 motion per motion of the same type. If there are any procedural motions from online shareholders, we take votes all together after we address questions and comments from the visiting shareholders. If there are any motions to amend the proposal, it will be deliberated with the original proposal and original will be voted on first. Thank you for your attention. Now I'd like to take a vote on whether its approach is acceptable. For all those online shareholders, if you agree with this approach, please click the clap button. [Voting]

While we confirm the results, I'd like to take a vote from visiting shareholders. If you agree with this approach, please clap your hands. Thank you very much. [Voting]

Please wait for a moment. We are confirming the result. Thank you very much. With the majority of shareholders agreed, we shall follow this approach. Now please take a look at the details of the reporting matter. I'd like to present your summary video on our business overview. Please watch. [Presentation]

Thank you very much for your kind attention. I realize there were so many ups and downs, 2 trillion, 3 trillion, et cetera. Looking at global equity markets and global challenges, there are a lot of uncertainties. But now I can say, however, that AI is about to grow exclusively and we are getting prepared for such era to come in the group. I have been busy myself. And again, we are getting ready for the future. Again, thank you very much for your kind attention to the video, and let's get back to the business. Now I'd like to present the matters for approval. Details are set out in the convocation notice available on our website. Proposal 1 is appropriation of surplus. Proposal 2 is election of 9 Board Directors. Proposal 3 is election of 1 Audit and Supervisory Board member. Proposal 4 is approval of contract for transfer of subsidiaries' equity interest. Now I'd like to present our business strategy. I just mentioned earlier right after the business report video, now the time has come through shifting to offense mode. Actually, it's my personal thing, but last year, October -- since last year October, there are time to time that I think in very deep, thinking about the rest of my time as a business person, how many years do I have? How many years is -- do I -- is there are for me -- what can I do? What have I done? That's something that I've been thinking. And sometimes I felt a bit sad because can I finish my career as this is? Or is this something I wanted? Is this something I'm satisfied with? So actually, I cried very hard, as a matter of fact. For several years, I really couldn't stop my tears. And I thought, this is not something I wanted. This is not something I can finish my career with. So remaining, yes, as a business person. I don't want to spend those years as a kind of obligations or something that I have to do. That's not the life I wanted. And that should not be the life I live. Then I have to think about twice, what did I really want it? What did I wanted to do? Ask myself. And then I came that I wanted to be an architect. So architect designings, and architect for what? That's the next question. And I wanted to become an architect to build the future of humankind. What the future will be, how the future will be, and I want to be the architect for the future of -- humankind's future. I may not achieve everything. I myself and my person. I myself as a person may not be enough to do something like that. But I want to play a role to some extent, to somehow be a part of architecting or create a building for people's future or humankind's future. And that can be something I'm most excited about. That's something I wanted to do the most. That's something I felt after that. And since then, I start looking into the future of AI, looking into the future of computing. And that reminded me of the time of my age 19. That time that I skin my right side of brain so hard to create a invention per day. And over a year, I created 250 inventions back then. And that actually made me feel lots of creativity in myself. But since then, I start having more and more responsibility as a business person. I start using my left-hand side of my brain instead of right-hand side of my brain. And -- but since October last year, I wanted to come back to creativity side. I wanted to come back to utilize my right-hand side of my brain once again. So in the past 8 months or so, I made 630 inventions over the past 8 months or so. So with this speed, we have about 4 months or so. So it can be about 1,000 invention per year. Most of them are not something -- most of them are useless probably, but some of them are actually surprisingly good invention, which can be a good part of the future of the humankind. And I also filed a patent, and the one patent agent was not enough. So I have now 5 patent agent for me to file the inventions and patent, and that's up and running till now. So within a year, whether these patents will go through, the process, -- so once you file the patent, that means that goes out to public as well, which means that other people are going to know about that, too. So some of them, I may have official registrations, and some of them may not be good for the patent, but for the commercialization, that kind of process is there. But the thing is, my right-hand side of my brain is working so hard, which made me a more and more creativity in my work. So that makes me so happy and that may be so busy as well. As a result, that will bring to the business plan for the SoftBank Group, and that's contributing to the growth of the SoftBank Group. So any procedures, I just let Mr. Goto to do everything. So as a business person, it sounds like irresponsible. And sometimes I make such a remark in public, too. But that's how I am devoting myself to what I wanted to do, which is to be a part of humankind's future. And now we have in our group, and that can be the very good core to leverage the power and capability for the future business. Right now, they are making a tremendous number of chip shipments to the -- around the world. And keeping that as a base, we will also believe that is going to be the base for the influence that AI is going to make to the humankind's future. And it's like a 3:00 in the midnight, 4:00, 5:00, I dream about it, I wake up, and I take a memo about my inventions, my creativities. So my CEO office has 3 teams there. So around the 24 hours, there are 3 teams working so that they will be able to respond back to me in 5 minutes, so that they can start the patent procedures. So we can meet nights, busy, very happy and very active. So making a big clause and people may say, you may thought that I am not in public because I'm so embarrassed to make such a huge loss in financially. However, actually, I am working very hard, very busy. So now it's the time to shifting to offense mode. That's the time that I am feeling right now. So what I am interested in most and what I am working on most is AI revolution. So what is mankind? On the planet, that -- mankind is the most intelligent animal on earth, from my definition. And that is changing, completely changed, which is singularity. So it's mankind has the most intelligence on Earth, but within coming 10 years or so, I believe mankind is going to be exceeded by computer or AI. That's singularity. Vision funds to -- for the AI investments in the SoftBank to become the vision capitalist for AI, talked about the strategy. But with all SoftBank Group, we would like to be the leading positions for the AI revolutions. In the past few months, variety of the leaders of the country have been a common interest right now. Of course, Ukraine situation are the sad news being heard. But one another common word is AI among those leaders, premieres of the countries or governments. ChatGPT now showing how the AI is going to be playing in this sector. Up until now, even you asked something to AI, but it was like a robotic type of language, they come back to you because we have created PIPA about 10 years ago, although that we worked so hard on PIPA, but because AI level was not enough. That's why the dialogue communication was not smoothly taken place. If you have a preset language, a preset dialogue, then the PIPA can make a very good communication. But it was a kind of robotic if it's a natural dialogue. And now some auto-leading OpenAI for ChatGPT, and now that the 100 million people around the world is using in a very short period, GPT 3.5 to GPT 4, that evoluting also. And now is not calling ChatGPT anymore, it's call it GPT now. So now we are at the phase of GPT 4, not only chat, not only dialogue on text space, but this is available, that this AI is having mouth, ears, eyes. So it's like a multi-model -- modeling. So not only the text exchange, but they speak, they can hear, they can see. And that is actually done by AI. You saw that they can address any status or issue. That's the level we are seeing now. Last week, we had a presentation meeting for generative AI utilization contest, which was taken place internally. What kind of way that we think you can use AI for work or for our life. And we had a competition amongst our employees. And we'll have this contest every month over a year. In the first place, prize -- total prize is JPY 25 million, and the first prize is going to be JPY 10 million. So up to JPY 30 million that you'll be able to obtain if you win all by the competition. So we have a 1-week application period and 52,000 application has been submitted, 52,000. So only from employees of SoftBank Group overall regarding generative AI. And the 52,000 items has been gathered together in 10 days, I think this is a world record. And employees altogether, score each other's idea. And those who competed, others became the finalist for 10 ideas. And today, actually, we will be announcing our first prize to the tenth prize at the employees conference meeting after this general meeting of shareholders, and of which the first prize winner is going to obtain a JPY 10 million prize. And the third person was actually so surprising. And this person scored by every employees and they got the third point. But actually, I thought that this is so great so that this person is going to be winning the first prize instead of third. So I am using my rights or my super power voting, right, to this third prize -- originally, the third prize winner to become the first prize winner. It was so great. But at -- finally, so from the first to 11, I thought that can be commercialized immediately, something that they are so passionate that they would like to utilize for the business immediately as well. And I was only able to see from the first to 11th price, but there are more and more ideas down needs of that. So I would like to spend some time to see what other ideas were there for this kind of contest. But now the group overall, -- so some company is actually prohibiting using ChatGPT for employees. But I doubt it, can they catch up with the time? Can they catch up the trend? That's something I worried about. And we actually -- as a group that are working on generative AI. And if you see the big picture, actually, this has been -- the computer has been called as a calculator instead of computer. These days, people don't call it calculator. But in the beginning, very beginning of the computing, bakas became auto calculator, and that was a kind of computer was working on. And -- but that computer became even more powerful in gathering so much of the data memorized in computers, so a variety of the data is now on available on Internet, and that is going to be memorized by the computer. So from calculator to memorizer, and such a huge data memorized, installed in this computer. And from such a variety of data, you can pick up and search what you want to know, what you like to check, so that the Yahoo and Google start the search engine, and start for such business in using computer. And this time, GPT is actually even next step level up. So using computer from search engine to influence system, influence machine. So myself is actually using GPT every day. Any idea that I come up with, I check with GPT, how do you think? So GPT and myself is making dialogue and debating each other, doing the brainstorming each other. It's like kind of exchanging the wisdoms each other. And recently, I made a question to GPT, which was a very difficult agenda and the GPT came back to me and say -- that's not realistic. To do so, to make that happen, huge number of computing power is required so that the resource-wise, it is almost impossible. That was the answer from GPT for my question. And I was not convinced, so that I said, if we do this way and that way, and tell us this and that, then we should be able to make that happen. So that was my response back to GPT, and GPT came back and said that's a great idea. However, there are such and such issues, such and such difficulties and challenges. So they came back again. So I said, that's not right. We have such a solution and this solution so that you can solve those issues and challenges, then you'll be able to overcome such challenges as well. Then GPT came back and say that's a great idea. That's interesting. However, still, there are additional challenges there. So I came back to them once again. For those issues, I have such solution, then the very end, after we are exchanging such opinions each other for several times and in the very end, GPT said, this is the great idea that's very realistic. So he pays -- GPT pays me and made me happy. That was like a -- 4:00 a.m. in the morning. So from 3:00 a.m. to 4:00 a.m. in the morning, I start exchanging ideas with GPT. And actually, I compete them, I kind of were able to convince GPT. So as an inference, capability-wise, AI is now having a tremendous capability, tremendous power, so utilizing such inference capability, recent latest GPT 4 -- GPT 3.5 was not able to pass the college exam. But a few months later, GPT 4 was available. And now -- this year, actually, the GPT has been updated, upgraded from 3.5 to 4. In U.S., legal bar exam, the top 10% of the -- was Chat GPT. Medical license exam, also ChatGPT 4 made a correct answer of the 87%. Reading, math, biology, statistics, psychology, most of those exams were apparently passed by a ChatGPT 4 if GPT 4 takes such exam. So my actually assumption is that all the -- any of the tests that GPT will be able to become a top 1% and should be the #1 amongst all the subjects, amongst all the people who take such exam. I think it's just a matter of time. The time will come for sure. I'm so convinced about that inference capabilities in the computing has a tremendous capability there, tremendous power there. In addition to that, that's going to make it more evolution. And from inference to creativity, so artistic or art was actually the area for humankind. Even the inference was the only for humankind. Many people thought that way. Things have been decided or being written can be picked up and searched by computer, and computer is just robots, and robots have a limitation there. That's many people's idea in understanding. However, now, even the computer now do the inference capability, and that goes into the creativity world, artistic world, creating videos, composing lyrics or music. So now GPT is writing a poem or drawing the pictures. So last -- the other day, I was reading the -- when I was a child, that I was reading the comic of the Atom Boy. And I was not sure, it was the last episode of Atom Boy. And I asked GPT, what was the final episode of Atom Boy? And GPT came back to me and told me the final episode. And not actually, I asked GPT to write the continuous story or continuous episode after the final episode, then GPT start writing about the stories about Atom Boy. Then I ask him that to make it continue and keep continuing and keep making scenarios and GPT keep writing the next story, next episode. And I try the other one. And I asked about the old story of Japan and I asked GPT to -- instead of finishing the story but continue the story and GPT can do that. This is not written anywhere. Nobody wrote about it or nobody create about it, but actually, computer is creating as if it is humankind. Even the drawing robot. So what the ChatGPT to draw like Picasso with the fighting boats. Of course, but you should be using robots instead of bill. In the Picasso's age, there was no robot available, so that the robot cannot do the fighting type of the play, but actually GPT draw like Picasso and draw about the robots fighting each other. And that creativity is already available now that AI can do such an address, such a request. Just earlier, I said in all subjects, GPT or AI can be the top one in exams. One person cannot learn every subject, but you're also not only learning, but also you need a wisdom to infer something. So memory and search is something based on your wisdom, your knowledge, but the infer requires wisdom. So only 1 person, 1 single person cannot learn all the knowledge and utilizing those to infer. And I don't believe that's available for the single person. In AI, if you let the AI compete against the world genius, in several years, maybe genius may win over AI, but what computer great about is that there is no limitation there. They can grow further more. They don't stop learning, they don't stop accumulating wisdom, and my expectation is that all distance of all the people around the world, and some of that -- of 10,000 times of some -- of all the people wisdom can be available by AI in some years. And that's not too far away, it can be within tens of years. So you are a child or your grandchild, when they become adulthood, when they become your age, I think this is going to be reality. That's the society will be -- they will be living. This is not a science fiction. After your kids, your grandkids, when they grow up to your age, to our age, I believe that they will be living such a reality where that the computer exceeding 10,000 times more smarter than the sum of the humans kinds of all the world. And that, actually, if we calculate with ARM's road map, that's something that I am so convinced. It's not unrealistic thing to think. Arm chip design, Arm capability, looking at the road map for the development, I think that's something available in near future. And when we start seeing such a society, AI will be super intelligence. So with super intelligence, we'll be connected to entire society. And in addition, there was said that the AI capability has a limitation. Even some intelligence people talk about that. but that's because this person, this intelligence person has limitation about his or her wisdom or knowledge. Why they said that was because AI is programmed by human. As long as human programming AI, then AI cannot be smarter than human. That's their logic. But actually, this person's logic is already not available because current GPT already not programmed by human being. It's already not a human that programming current latest GPT. The answer was not programmed by human, but actually neuro engine inference capability is providing by learning so much of the data, picking up the data, learn and infer and give you the answer. And that is going to be 10x, 10,000x more. Then it's not a level where the people is programming or anything like that. It's totally beyond such a capability. So Arm chip is going to exceed 1 trillion units sometime in the future. So 8 billion in human kinds around the world. And the ARM shipments come to the 1 trillion units sometime in the future is because as IoT, any signals or any light bars, sensors, in every aspect, Arm chip is going to be built in and utilize. So 1 trillion IoT device is going to gather so much data real-time and come to this super intelligence, then computer itself start evolving by itself. AI evolves by themselves and AI multiplied by themselves. They design robots by themselves and robots start producing robots, manufacturing robots. So robots with a super brain, it's not programmed by the human. They learn by themselves, with their own wisdom and intelligence, they will multiply in every shape and type. They don't necessarily have 2 arms, 2 legs. They may have 100 arms, 100 legs, they may fly, they may swim. So every shape, every size of robots will emerge. And in the world of AI, which evolves by themselves, which multiplies by themselves, when you say the world of intelligence, some people may call it virtual world. Virtual world has a limit, because smart robots come with super intelligence. Then people say almighty God. And that world of almighty AI will come. So when you talk about evolution speed, they may say that there are limitations, computer and AI. That's wrong. Speed is tremendous. Beyond mankind, a new living creature was born. Most of my creations, inventions are related to AI. So when you think of something that does not exist, they are called inventions. If there are things that are already there, they are not inventions. Inventions are something that are not here, but with some level of reality. So just in front of you, just a matter of time, all super almighty AI era is out there. AI will solve problems that mankind cannot. These almighty machines should be able to solve problems, even though mankind are not able to. For example, comfortable transportation without accidents; a long, healthy life; society without stoppage from natural disasters. People don't have to suffer unnecessarily. People don't have to work hard unnecessarily. People don't have to cry unnecessarily. Education, work, things that people want. Food, roof over your head at very cheap cost without sweating, without doing dangerous work, people can get them. Animals fetch fruit. Like that, robots can do things for ourselves. Almost eternal energy, almost nothing at cost, people can get things. And something that protect us from natural disasters. So that kind of world should come soon. Accelerating evolution of AI should help making people happy, helping people to live more comfortably, happily, and I believe in that positively. And that speed should be accelerated first, and Arm can play a central role. Arm-based chip has been shipped, JPY 258 billion cumulatively. Like I said earlier, looking at this graph or chart -- just 1 bar, each bar exceeds the previous bar. Look at this curve, very, very beautiful curve. And this trend continues to JPY 1 trillion to 4x bigger than this. Looking at this curve, you can naturally imagine, this level should be as big as 4x. In fact, the speed is accelerated. When we acquired Arm, what we did, what they did for us was to increase the number of engineers. That's why they spend money and the cost to get necessary human resources. And back then, people said that Masa wasted money. But now Arm is ready for exponential growth, which I believe to happen. Chipset for mobiles, Arm is absolutely #1, but that's not the end. Every computing world, CPU, GPU, together to become AI chip, which should be mounted every AI device. And center of the information revolution, it's going to be definitely AI with super intelligence. In the world of computing -- computers, you may imagine it as just a calculator, just a computer. You have to change your mindset, not only just knowledge, but world is more like intelligent world, not just a knowledge world. And that intelligent world should help us to live better life, happier life. I believe in that from the bottom of my heart, so AI should be for every person to live happy life. So we are ready to shift to offense mode. In the past few years, we focused on being defense. We, in fact, have built cash on hand at JPY 5 trillion. 3 years ago, we didn't have a lot of cash on hand. But because we have been in defense mode, we have built our cash on hand to the level of JPY 5 trillion. So now we are ready for shifting to offense mode, and I am excited about that. Last but not the least, Arm, which is our core company, and CEO of Arm, we would like to welcome him as a new Board member, subject to your approval. And the information revolution is for making people happy. Again, your continued support will be very much appreciated in our journey. Thank you very much. That is the end of my presentation. And we would like to move on to the Q&A session. With regard to how it is going to proceed, once again, the MC is going to give you the explanation.

Let me explain how the Q&A will proceed. [ Operator Instructions ] This is the first question. The number of female Board members is relatively small. What is your take on this?

Well, whether it should be male or female, it is not that kind of a matter we have to address. Rather, if it is an outstanding member of the Board, regardless of the gender, we would like to invite him or her any time. Needless to say, the ratio of female Board members is relatively low. So if an opportunity arises, we would like to seize that opportunity. Thank you.

Next question. Vision Fund is underperforming and SoftBank Group's share price are on the downward trend. How do you see responsibility as the senior management?

That's a very tough question. Again, like I said earlier, ups and downs by JPY 2 trillion, JPY 3 trillion, just margin of error? Or I should not say that. Maybe it may sound very rude to talk to you as a shareholder, but that's my honest comment.

This is the next question. Are you going to continue with the share buyback? And I would like to -- like you to elaborate on the share returns to the shareholders.

We have repeated share -- the share buyback. And if there is going to be a chance or an opportunity, we would like and to seize on that as well. But that said, in what way and what timing, what would be the amount that is going to be the thing that we should not mention specifically, and that is the established rule. But always in my mind, I obviously seek such opportunities.

Next question is WeWork share price is underperforming, give us an update on WeWork's business status.

All Il will say ouch. That's my responsibility. When I visited WeWork for the first time, I fell in love with WeWork, and I thought it was wonderful and we put a lot of money in WeWork and some executive, some employees told me you are wrong, you made the wrong decision. And a lot of people give me advises, but I pushback,and I put a lot of capital, and I can -- that's all my responsibility. And Adam, who was the founder of Work, believed that he bought a great company. So maybe it does not his fault. When it comes to value of WeWork and the current status of WeWork, well, maybe I pushed him too much. And I have to apologize for WeWork.

Next question. the SoftBank stated in its next 30 vision to be 1 of the top 10 companies with the highest market caps by 2040. But it seems to be rather difficult to achieve that target. What is your take on this?

As has been already mentioned, I think from October last year -- as far as I'm concerned, to be frank with you, the immediate the benefits or profits in terms of shares and profits. And as far as those things are concerned, well, I'm not trying to evade the reality as a matter of fact. I do not mean to keep my eyes off the reality. It seems to be a tiny trying to be part 1 of top 10 companies, that is a kind of a tiny goal for me, and that's the way I feel. This is my frank feeling. And it is kind of an admission I would like to make here today with the shareholders. But rather, what should be the future of the human race? What is essential? What is going to be necessary so that the future generations will be able to avoid from many sufferings and instead, enjoy the life enriched. And that is my pure seeking. I tried a lot. That is because of that. I was so impressed and moved. Something that I have envisioned in my dream. In the rest of my life, I had the short time to go, and I was also excited over the future task. So day and night, I have been retreated with this idea. Holidays do not mean to me anymore. So that's my pure thought and the feeling that the remaining 5 days, I think for almost that Apple's Steve was meeting with me very frequently. And I think he really had a pure mind in terms of how that wonderful products are going to be launched for the benefits of the human race. And I think until the very day when he was dying, you were thinking of the new designs of iPhone. So in the remaining days and he really had forms about many things, that passion into his new IDs at that very moment as well. And I do understand how he felt in those days. Now I have grown in that way. That made me cry a lot. But when I was meeting with Steve that he didn't say anything about how large the volume that I would purchase from him in terms of iPhone. He did not take up that topic at all. That was special numbers. He was not interested in any anymore. But for the future generations, the things that are essential, wonderful outstanding products and art pieces. That was the only thing he was really into. And then that broad Apple, which was at the brink of total collapse before he was called in, but now has grown into a company with the launch of market caps in the world commercial benefits, profits instead of that goal, he was really into creating something very wonderful. At the end of the day, the outcome that is related into having impact on the people's set of values, and that would bring money into their company. Those numbers are not something that we have to run after. Instead, we have to run after what is most essential. What is most necessary for the future of the human race. And the result will bring about by products, something that we cannot expect at this moment. That's my view at the moment. So that means in the next 30-year vision, we came up with specific numbers. And to be frank with you, we will be able to achieve that top number. But it is not something that we should be committed to, and it is not something that we are running after. But I am more intrigued by the fact and that is more exciting. And by doing so, at the end of the day, we will be able to achieve the target in the next 30-year vision. So in that way, I'm so excited. We can -- the vision would not bring any conquered results, but we have a core company, which is called Arm. Therefore, with that, we will be able to achieve the target. And I'm so excited about that. Sorry for my lengthy answer. That's because I was so excited.

And next question. Last year, Mr. [indiscernible] Executive Vice President, step down and his role is still not filled by anybody? What's your view on successor?

I've been thinking a lot about this. A few years back, I thought that Nikesh Aurora, should be my successor, but he wanted it earlier than I thought, and I realize that I would like to stay and wait and told Nikesh to wait, but Nikesh was impatient and he left. But anyway, I am too excited. I am too happy, and I don't want to retire now. I want to do a little bit longer. That's my honest view. So when it comes to successor, it is just not now.

So we picked questions posted in advance. And now visiting shareholders, we'd like to take a question from visiting shareholders. Please hold up your color board if you wish to speak. And somebody holding up the red card on a B row. Don't have to state your name, just a number on the admission card.

Number 0555. I have a question about AI. You mentioned that you have a lot of ideas on AI. And you said you have JPY 5 trillion. I wonder if you have any idea that you can create something with JPY 5 trillion.

Could you repeat the question again?

You mentioned you have a lot of inventions. And you have JPY 5 trillion. So with that money, do you think that -- any one of your inventions can be really materialized, not just 1 but several inventions that can become reality.

I think. And those several inventions, we want to make them happen 1 by 1 and key is held by Arm. Arm's position can be fully utilized to help me materialize and realize my inventions, there should be a great opportunity out there.

In yellow D column, the third row from the front in the yellow color board.

261. This is my second time to attend the shareholders' meeting. For past 5 years, I hold the shares, and I have some ideas. So I would like to express them to you. Age is just my number. And that's something I recall. The age is just a number. For me, 65 years old, so close to your age. Owning the company means a lot of responsibility. So quite difficult for you to manage. Do you -- it looks to me that the company you own and run is a kind of toy and you are quite curious and to take care of the company, although you do not have sufficient time, but you are managing or running the company. I believe sometime, I think you pay too much attention to the share price. I think as a founder of any company, he or she has to pay attention to how the price is. And after 6 years old, I started then to make investment in shares and stocks. It is quite mysterious because the price changes every day. So you should not be or we should not be constrained by the fluctuations in the price, and we have to be into something that intrigues you and I was talking to the President of Elektron, and he said that if you are interested in doing something that you're really into that you don't have to worry geopolitics surrounding China, for example, is dictating us, but I hope that you will be also relieved from that kind of concern.

I fully agree. I would like to keep that feeling in my own work, and particularly after October last year, that's the feeling I really had, the result will follow. That's my view.

Next question is a shareholder holding a blue card, please.

My number is 424. You talked about OpenAI and ChatGPT earlier. Elon Musk and Apple without proper verification, signed a letter to stop development because of some risks. And Mr. Takahomihoriya tried to -- well, he said that they wanted to catch up while asking others to stop or suspend development. Mr. Son, Microsoft put capital in OpenAI, I believe. And Mr. Son, I believe you met with some of OpenAI the other day. So again, what's your view on development of AI going forward? Is it something that should be stopped or suspended.

I think that one of the important key people in the world at the moment is Sam Altman of OpenAI. He is a great guy. He has wonderful insights and expertise and beautiful heart. He himself said that they need to have some regulations around AI, which I agree. In the world of automobiles, people can enjoy rich life and mobility. And there are limitations of speed, traffic lights and don't drive when you drink, the other rules and regulations. That's why a very safe mobility can be delivered to people. So there are some controls in place and regulations in place. And when it comes to super intelligence, if that super intelligence is used by wrong people in a wrong way, something crazy can happen. It could be more dangerous than nuclear power. So there need to be some regulations that should be discussed and introduced to put some control and Sam agrees and many people agree. On the other hand, if you fear too much, and if you put too many regulations and rules in place, for example, if you say that cars are bad and too many regulation, too much control, that's not good either. So you can't stop evolution of AI. In fact, we should be more aggressive in terms of evolving AI, but you need to make sure that you have certain control in place. So discussion of regulation should continue, but developers should have conscience and good heart. Like I said earlier, I used GPT every day. And when I ask a political question, for example, they would say that I am AI and I am neutral position for politics. So AI with rationale and reason should be something that should come. So to answer to your question, yes, I think regulations are necessary to some extent. Thank you.

So white color board right here.

And the next -- the real part 0108. I think there was a lot of extensive discussion about AI. And I believe that Professor Matsuo, who is well versed in this topic, is here. So I just would like to ask him if -- how he sees the future of Arm. Professor, go ahead.

Thank you very much. The potential of Arm, as Mr. Son explained, AI going forward, is going to spread in society. And under these circumstances, I think Arm is going to play a key role in that process and journey. The role of Arm is now well recognized by the whole society yet. But going forward, this will be changed. And as far as I'm concerned, I do believe the future potential of Arm. Thank you very much.

Next question. [indiscernible] holding pink card.

I had a question. In this opportunity, I have been fairly new shareholder since 2019 when I moved from California to Tokyo. My question is regarding the portfolio companies of Vision Fund. And as some of the critics says in the portfolio, a lot of the companies are not so much AI-related, at least from the analyst perspective. And I'd like to ask Son-san about what do you think when you made those investments for Vision Fund portfolio companies. Was that -- we know that you're pretty early, you get excited a little bit earlier than other people. But were you having a foresight to see that there's going to be newer language models or algorithms such as the ChatGPT LLM coming that will benefit some of the portfolio companies? Or was that just some other thoughts in your mind. And out of these portfolio companies after IPO, who gets to stay and who is going to be out of your portfolio, do you have like a standard for that. And -- just a little bit of second part is what's your view of generative AI? What will be the trend going forward like?

Okay. Thank you very much. I feel ashamed that I made many mistakes about investment and so on. My intention was though still in every time when we make investment, we ask, is this going to be amazing company when AI become the basis of the new society. Is this company going to be one of the best applications for the AI era. And if the answer was yes, then we invested. Even if they don't have enough AI at that time, can they be one of the very interesting company as the application of AI expansion. And many of them were not really through, I regret big mistakes and so on. But still, we made roughly 500 companies as an investment into our portfolio. And some of them are amazing, amazing. In this venture investment, if you have 1 or 2 out of 100 smash hit, that will pay back everything, right? So I think at least I have found more than several of them going to be big success out of 500. And I think that's enough with a bunch of the [ little ] ones. On top of that, just several of them, that's going to be an amazing company, and I feel those are in those 500. And that will make our future of success become very fruitful.

[Foreign Language]

Maybe I should take 3 more questions from the venue.

Thank you for taking my question #313. In fact, I was called out at the last time 5, 6 years ago. I asked for 1 female Board member. And I am seeing 1 now, which makes me feel. And I am interested in gender and disaster recovery. And I think that I learned that it's important that women should play a big role in disaster recovery measures. So what is your view on how to recover from disasters? Do you have any plans or do you have any measures?

Like I said earlier, AI can predict disaster more accurately and faster. In fact, when it comes to weather report and earthquake prediction can be done by AI. And as AI evolves, even faster, even more accurate, prediction can be happen so that people can ready for evacuation. So AI, super intelligence and IoT should be able to minimize damage from disasters. So to that end, I want to keep -- continue helping evolving AI and driving AI evolution. In the past, men's muscle power played a big role. But when it comes to the world of super intelligence, in fact, robots with super intelligence can replace muscle power. Then regardless of gender, so long as you have motivation, every person should have an opportunity, whether adult, kid, elder person, every person should be able to get an opportunity and that word should come sooner rather than later. To that end, again, I keep committed myself to helping AI evolution.

So 2 more questions from the audience, and we are going to take questions online. The pinkish color on this -- in this column, E column, pink color board.

514. Allow me to ask a question. It may be a tough question, President Son, unpaid issue. I think a lot of media attention and some of them are quite critical of you from the viewpoint of the governance, whether it is appropriate or not. What is your view on the press report and your outlook about this matter. There seems to be some financial burden imposed on the company. So how you're going to break yourself up for this challenge.

At the SoftBank, we invest in unlisted companies and [indiscernible]. Those are already listed companies, and we have 2 vehicles. And as far as I'm concerned, I take my personal risks and returns as well. Well, in this poor situation of the share -- the stock market, the performance is not good. But the period where the tenure is supposed to be about 11 years. So we are still in middle of the investment period. And I do believe that going forward, the performance is going to improve. I am confident of that. And the asset I own will be able to turn better more. So I have no concern about the future.

I would like to take the last question from the venue. I would like to take a question from a female shareholder over there. And then we will take questions posted on the Internet.

My number 0542. Thank you very much for your very interesting talk. Birth of super mankind is something that I am very excited about, like you are. But the only concern, however, is, for example, the movie, The Terminator. AI evolves too much, and there are some fights in world between mankind and AI. What's your view on such risky scenario?

I think there is a risk like that, that kind of risk is there. That's why regulations are needed. I do think so. And many engineers and scientists engaged in AI suggest regulations, which I agree because AI will have such tremendous power. And that kind of movie makes me scary, but mankind realizes that engineers and scientists are aware of such risks. So there should be efforts and regulations that need to be put in place, and we are at least should be ready for that, then we should be able to run AI in a safe manner. There are always a few percentage of bad guys anytime. And if AI is a bad tool and if there is a small percentage of bad guys, bad guys can use that AI. So AI should control by some. I should have not only intelligence but also reasons and rationale, and AI should be like that. [indiscernible] number inventions are related to emotional engines, again, not only intelligence, but also reasonability is something that engine should have. So AI should have reason and rationale, and it's possible. And it should be like that, then we should be able to run AI safely. Thank you for your question.

Now we have completed questions from the audience at the venue. We have received questions via Internet we have just received today, and I would like to entertain those questions. First, this question. At the portfolio company, unicorn companies, how many of them can you count. This is the question?

As I mentioned earlier, at least several companies out of 500 portfolio companies. Well, 5 times and 10 times I think we still have 50 or 100 companies, but 50 and 100 companies, if the value is going to grow 50x, 100x and then they will be able to recoup the invested money. But several companies instead of the 500 -- 50x or more than that, so combined together, we definitely have a good return out of the invested companies.

The next question is what your view on favorable programs for shareholders? And what's your view on increasing dividends?

Of course, first, you have to increase the profit before talking about increasing dividend and giving a benefit program for shareholders. So as profit go up, then in many ways, we should be able to give back to shareholders, return to shareholders. So, we'd like to contribute back to shareholders' support. Thank you.

This is the next question. At the time of the financial -- the settlement or announcement program, instead of attending that, you are going to be dedicated into the management of Arm.

As I have been frequently mentioned, the growth of Arm and then AI-related and enabling technologies surrounding Arm, those are the ones I have been focused on in the prepared -- sort of us in the proprietary stage.

Next question is do you think of bringing back Yanai-san and Nagamori-san as Board members again or executives again?

I respect Yanai-san and Nagamori-san and they are businessmen, and they are running businesses now. And they want to focus on their own businesses. They helped us for so many years as board members, and I didn't want to keep them unnecessarily or against their wills. So again, I appreciate their support and contributions, and I still respect them. On the other hand, new Board members -- newly joined Board members are helping me. They are sometimes critical and they are sometimes challenging. They are sometimes very, very supportive to drive us even more. So I appreciate your understanding about our Board members' contribution and Rene, who we would like to nominate as a new Board member would like him to play hero. So again, even though we beg them to come back, Nagamori-san and Yanai-san, I don't think they'd come back.

This is going to be the last question. How to expand the profit out of the AI business? What kind of strategy is going to be in place? GPT, how is this going to be used in the management policy?

For the past 1 year, I have been engaged in many businesses. I'm quite busy for that. Well, over the weekend, I have been only occupied with the business matters. And the first thing I wake up every morning, I just jot down more actions to be taken. Therefore, AI -- for the new revolution of AI, I'm going to be immersed in that area. And that would ultimately result in huge amount of profit for the company. So I will continue this type style of immersion. And speaking of GPT, I am using it every day. So -- and I think it is a kind of a buddy to communicate with that in making decisions in business -- making business decisions. So we'd like to deepen the relation with the GPT as well. That's it. So I think I have responded to all the questions. So now we would like to close the Q&A session and move on to taking votes on matters for approval. Thank you for staying with us for many hours. And the MC will explain how it is going to proceed.

[Operator Instructions]

So we would like to proceed into vote taking. Those online and shareholders, please vote via the Internet on Proposal 1 through Proposal 4. Proposal 1, appropriation of surplus or dividend payment. Those who are in favor and please applaud. [Voting]

Thank you. Now I will take a vote on proposal 2, election of 9 Board members, directors. Please applaud if you are in favor. [Voting]

Thank you. Proposal 3, election of 1 Audit and Supervisory Board member. Those are in favor, please applaud. [Voting]

Proposal 4, approval of a contract for transfer of subsidiaries' equity interest. Please applaud if you are in favor. [Voting]

Thank you very much. Please wait for a moment while we confirm the results of the voting via the Internet. We are going to tally the results. Just a moment, please. The outcome is here. So let me report. First, Proposal 1 through Proposal 3 and the majority had approval. Proposal #4, over 2/3 approval. So with this, all the proposals are approved as they are. With this, we have completed all the agenda items for the shareholders' meeting. And with this, the 43rd General Shareholders Meeting comes to an end. And I would like to invite Mr. Kawabe, who is going to retire from the position this year. Please go ahead.

Well, I'm going to retire from the position at this board meeting at this shareholders' meeting. Z Holdings, LINE, Yahoo! which is going to be the new name and I'm going to serve as the Board so that I will be committed to promoting AI revolution for a very short period of time. Despite the short period of time, thank you very much and for your support given to me as a member of the Board.

Mr. Kawabe, thank you very much. I hope that he is going to serve as the Chairman of the LINE, Yahoo! and the communication within the 2 will continue as they have been -- as it has been. And we also have a new Board Director, Mr. Rene Haas, the floor is given to him.

[Foreign Language] Thank you very much for your kind words about Arm. We have been working together now for 7 years, very closely for the last 1.5 years. I am deeply honored and pleased to serve on the SoftBank Board. I look forward to working together with you and the other Board members much more closely.

[Foreign Language]

Lastly, in closing, the theme video of SoftBank. Well, I think it is the high time to remake it, but I think it has already passed 10 years since we created this video. But the situation remains all the same after 10 years. So it is not obsolete at all in terms of content. So once again, I hope that you will feel the same way when you look at this video. [Presentation]

Thank you for joining us today at this Annual General Meeting of Shareholders.