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

[Interpreted] Now it is time to commence the meeting. Chairman, please.

[Interpreted] Good morning, everyone. I am Masayoshi Son, Chairman and CEO of SoftBank Group Corporation. My throat is not in good condition but I am in good shape. I have allergy and my voice may not sound as good as you may expect. And the day before yesterday and the day before that, I slept only for 3 hours. But last night, I slept for 4 hours. So I am in good shape today. When my brain is working, I believe they are so excited. And maybe I go to sleep 1:30 in the morning and 3 hours later at 4:30, the brain gets awaken, and I started taking notes because I came up with a lot of great ideas. And my CEO staff members, I took a photo of my note and sent a photo to my team, CEO, staff and in 5 minutes and even from the CEO office is required to take action. So 24 hours a day, I can take action right after something came up to my mind. My team updates to do list and it is a traffic signal, yellow, red and green. And whenever yellow and red, somebody needs to take action to follow up. So that's how my team is working. Looking back to last year I have been struggling with solving very complex formulas. But the day before yesterday and one day before that, and I slept 3 hours, even though I felt a little bit dizzy and sleepy, but in many times -- in those times, something came up. And in the morning -- this morning, I came up with a solution, and I got so excited and started calling to the America and other countries. So I am super happy. So happy today. Anyway, this Annual General Meeting of Shareholders is a very, very important event. So let's get started. Again, thank you very much for coming to join us today despite your busy schedule. Pursuant to the provision of Article 13 of the Article of Incorporation, I will call the 44th Annual General Meeting of Shareholders SoftBank Group Corp. to order. 44th, it's been 44 years since SoftBank Group was established. I am getting older and older but I am in the best shape actually. We adopt a system where our shareholders can exercise their voting rights or post questions through the Internet. The agenda today is just as set out on the convocation notice of the General Shareholders' Meeting, which is posted on our website. I'd like to inform you that the number of voting rights already constitutes the quorum. Now the moderator will inform how the meeting will proceed. Please then explain how the meeting will proceed.

[Interpreted] We will start by laying out the polling matters, outlining matters for approval, then we will discuss the business strategy and move on to the question-and-answer on all the reporting matters and matters for approval. Then we will take a vote on the matters for approval. Regarding your exercise of voting rights, visiting shareholders will be asked to confirm by clapping. Online shareholders can exercise their voting rights through the Internet. The website is open to accept your votes. Please note that you cannot modify your votes once you have exercised your voting rights. Regarding the Q&A session, we'd like to address questions, which were submitted in advance to the meeting after we explain the detail of the matters for approval and business strategy. Then we will address questions and comments from visiting shareholders. To address as many questions as possible, we'd like to limit the number of questions to one per one shareholder. Please also note that it will end addressing questions from visiting shareholders when we start addressing questions from online shareholders posted today to our website. Then we will address questions from online shareholders, which is posted today. This website is already open for posting questions and comments from shareholders. May I remind you that accepting your post will end 5 minutes after the start of the Q&A session. if online shareholders wish to ask questions or have any motions, please post your question on motion less than 200 letters. For online shareholders, we'd like to limit the number of questions to one person and 1 motion promotion of the same type. If there are any procedural motions from online shareholders, we take a vote on them altogether after we address questions and comments from the visiting shareholders. If there are any motions to amend the proposal from either visiting shareholders or online shareholders, it will be deliberated together with the original proposal and the vote will be taken on the original first. Thank you very much for your attention.

[Interpreted] Now I'd like to take a vote on whether this approach is acceptable. Please clap your hands or click on the clapping button if you agree with this approach. [Voting]

[Interpreted] Thank you very much. Thank you for your 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 details of the reporting matters are projected on the screen. I'd like to present you a summary video on our business overview for just 10 minutes. [Presentation]

[Interpreted] Thank you very much for your attention. Now I would like to present the matters for approval. Details are set out in the complication notice posted on the website. Proposal 1 is appropriation of surplus. Proposal 2 is election of 9 Board directors. Now I would like to present our business strategy. This is something I wanted to do actually. Resolution is kind of a formality basis. And everybody is here and joining. I believe that you're interested in share price of SoftBank, is it high or is it low? And how it's going to be? That's one agenda that you are interested in. Another thing is not only the share price, not only the short-term period thing but also mid- to long-term period, what kind of vision SoftBank Group has? And what kind of strategy are we going to follow? That's something that you are interested in, I believe, for you that you are joining here in-person or joining over Internet. First, let me touch on the business performance. And after then, I would like to discuss our vision. In the video you just saw, there was some explanation regarding the business performance. JPY 6 trillion revenues, 2%, 3% increase, JPY 200 billion, JPY 500 billion loss, but this business is doing well. That business is not good. So you may not understand fully in word, I believe. we -- our office created a video with a lot of efforts but I even don't understand fully. So that's why I would like to explain to you here. So increasing or enhancing shareholder value, what does that mean? So that I would like to come back to the original. So my understanding of enhancement of shareholder value is that we would like to evolve our business model, and then with the marketing power we distribute. So things that the people don't have but we would like to create, and then we market. So that's the evolution and the multiplication. So 44 years that we've been doing this business and looking back, I believe that everything can be summarized in this one page. Without evolution, your competitors can start selling in cheap price so that they're going to take over your place. Japanese economy right now, not growing in the past 30 years or so, is probably because we don't see much of the evolution of the industry in Japan. Those reasonable price that -- the country that's providing a reasonable price is taking over the market or evolution is actually origin from United States. So U.S. with evolution and also the reasonable price, other cheaper labor cost countries is taking over. That is why the Japanese economy is very much flat. In shareholder value, if you put it in figures. You can see equity value of holdings, less net debt. That's the shareholders' value from my understanding. You are in business, so I believe that you understand this. For you, you may have a portfolio of 10 companies, for example, NTT, Toyota, SoftBank Group, SoftBank Corp., Panasonic, so many companies you may hold as your portfolio company, about 10. And you may say this company's revenue sales, you don't sum up of those each respective company's revenues or sales. Do you do that? That's the kind of accounting calculation. So assuming that you have 10 portfolio companies, how much did you spend to buy the share? And how much share price it becomes? So is it becoming JPY 1 million investment becomes JPY 2 million? And if you have some debt, then you need to list it or any borrowings, and then that's going to be your pure value or pure asset of yours. Even it comes to the company with more than JPY 1 trillion. Management you may have more than 10 business lines. So each business lines, if these are the public company then how much is the shareholder value of this company is, and if you monetize those or you may acquire a company or you may enhance the company. So you have a portfolio strategy that you have to place. So if you're running a big company, big enterprise, you always have to have an eye as an investor's point of view. So Masa Son, is he an investor or is he a business person? That's a question that I recently asked. And I believe I am both, I am the both. If you are the leader of the big enterprise, you have to have two both sides of the view. Otherwise, I don't think that there is good for this leader. So are you a investor? Or are you a business person? I would say that question is -- doesn't make sense. If you're leading the large enterprise, you have to have a view, not only the accounting point of view, but also have to have a view on shareholders' value by each respective business line and you refresh the figures. And then you can see your value. So that's the kind of big picture thinking. So for SoftBank Group, what I'm receiving as a daily report, daily updates is the overall shareholder value. Some of the shareholders' value. And also, our net debt or our borrowings. Many people say that I am the king of loan. I'm good at borrowing money. I like making a loan but that is a big -- a very important source for the growth. So that's how I see the debt. So important thing is if you less net debt from the equity value of holdings and pure value of shareholder, that has to be maximized. That's the main part. So in the past 44 years, and looking back, maybe you can allow me to show you the history of the evolution and multiplication. So the first stage was the distribution of PC software, and also we launched Yahoo! business. And then mobile business, starting with broadband, Yahoo! BB, and with that, we start Internet, and mobile Internet and acquired Vodafone Japan and also had an iPhone launch here. So starting from PC era to mobile Internet, we made an evolution there. We made a kind of a new era, new phase by launching new business or by acquiring company and start expanding the value. On top of that, not only in Japan, in Japan, you cannot exceed or compete against NTT that easily. So we went to U.S. We acquired Sprint. We try to merge with T-Mobile, and we became -- it became the world #1. Many people said that you made a big loss with Sprint, it was a big failure and so on and so on. But as a result, you see that we became the #1 in the world, not the #3 player in Japan, but now that we are the #1 telecommunication company shareholder in the world. So that's the evolution and multiplication. And next, we -- with this assumption of expanding of Internet in China, so we invested in Alibaba as a leading shareholder. Actual business model the way actually I provided, I guided them to Jack Ma and of course, Jack made a big success based on that, and it was a great partnership that we had with them -- with him. That is another evolution. So those Internet that was very much popular in Japan and United States, brought it to China and made an evolution in Internet of China and create a multiplication. And on top of that, we had SoftBank Vision Fund. So because of our focus on AI, for the launch of AI and seeding of AI, we, of course, made a big loss of WeWork, for example, there are some lessons learned. But last year, at the AGM here with you, Arm before IPO. So only the acquisition cost was the kind of value we had. But last year, at our AGM, the shareholder value of SoftBank Group, majority -- many of them are public companies. So there are pricing every day. And from that value listed. So net asset value here, net NAV, we call it. So from the equity value holding less net debt. So SoftBank, because you may have a lot of loans and debts, so we take that out from the equity value of the holdings in the value of SoftBank shareholder value was JPY 14 trillion. A year later, today, is JPY 34 trillion. Over year, JPY 14 trillion became JPY 34 trillion. So there are long, long video. So the positive figures, negative figures, JPY 6 trillion net revenues and so on and so on. But in one side, this is it. All the P&L, balance sheet, all details, forget about everything. But just to take one glance at this slide, and you know the answer. And this one page is the one that I always check in the morning every day. And this is an automatic calculate using AI processed, and that send it to me 8:00 in the morning as a daily report. And everything is analyzed. So only take a one glance at this slide. Every day, I know how much suffering I know, how much good -- how good we are? Those everything we know. So you have a several portfolio companies that you really check how much money did you make before you go sleep or how much loss did you make, That's Something that you always use your brain to think about that. And then if you have to calculate each respective companies, portfolio companies, P&Ls and balance sheet, that's something too much to do. You may see that this is doing very good. This is not very good, so that we may need to have a deep-down analysis on the bad company. But during the daily check is something is the value of your own shareholding. And that's something that I do every day. I believe the leader or CEO of the large enterprise does this kind of check every day. Every day that you check, I think that they should do this check. Some people are criticized about the listing of parent company in the subsidiaries. I don't think that, that's something not appropriate because -- we have more than 1,000 companies under the umbrella of us. Each -- if those are not public company, if they are remained as a private, you never understand the clear value. But if you are a public -- they are the public company, you understand the price. And actually, of course, when it comes to the hundreds of companies if your portfolio company becomes and that you need to check every day, what is our pricing or share price? And then that you'll be able to see your real shareholder value. So now we have increased by JPY 32 trillion or by year. And what was that? In one word, so in the 2 years before or so, I've been saying that I will be focusing on ARM. So Goto-san, you do the earnings on behalf of myself, and everything that I will let you handle, I'm not going to be meeting any guess. I'm not going to meeting any others. I don't do any detailed calculation. Don't bring it to me. I only want to focus on Arm's. So only discussion will do. So we have Rene here. But every day, even from this morning or the last night, almost, I would say, 5 million to 10 million chatting every day, communicating like using Watson phone calls, zooms, almost every day that I am talking to him. I think he is the closest person that I am communicating these days in the company, and Rene became CEO of Arm. And I'm very happy to see the great improvements. And also, I've been having a very good chemistry with him. So I'm very happy to have him. In Arm, JPY 3.3 trillion was acquisition cost. And back then, Arm has already a public company in the U.K. and the 40% premium was paid by us. So JPY 2 trillion was paid, JPY 3.3 trillion. Many people criticized, you're spending too much on premium. Why are you paying so much with these public figures? Even JPY 300 billion, I'm not going to buy it. That's what Nagamori-san said, he is former Director of our company at the AGM. And I said, Nagamori-san, please, please, don't that in the public. So he said even 1/10, I'm not going to buy. That's what he said at the AGM but that was just kind of a joking around. But as a result, we spent JPY 3.3 trillion became JPY 24.6 trillion. And back then, we made a big loan, mainly by Mizuho and other bank group. So Sato -- Chairman Sato of Mizuho, if you saying that Arm is not a great company, then why don't you go for 100% rather than in the less 100%. because internal directors were against the idea of buying this company, some internal managements were saying that you're spending too much money on this company. How are you going to raise some money for that? And the money we should be able to do somehow. That's the kind of a discussion we had. And I asked Mr. Sato, the Chairman of Mizuho to give us a loan. But it was a quick decision, quick process that we were able to receive the great answer from Mizuho and the banks -- the bank group to purchase this company -- acquire this company. And actually, a number of the engineers became double, all of a sudden business performance went down. Of course, sales doesn't go up all of the sudden. So only the expense increased and many people were worried about the business. But actually, we increased the number of engineers or the many sources that we start as a business line, and that's a blooming now. PC, server, cloud, auto, many business lines or the high-end IoT or any AI-related business space has built with that. So I am really happy that we have invested in Arm. And because we have 1/3 of the loan but the absolute figure does not change. So the equity became 1.5x. This is leveraging, and that's something that we are pretty good at. So shareholder value. That's something that we try to maximize, and that's evolution and multiplication. So in the past 40 years, you see that those colors are added on and on for the bar graph. So you see that those are the evolution. If you look back now, it may not be that much things. But actually, those are all adventurous every time that we had a big discussion, headaches. But if you see the results here, you had adopt of those becoming our shareholder value. Of course, we made a lot of mistakes but that's in the process of evolution. Of course, we made a lot of failures but we survived. And as a result, we become this way. So that's how you see us. And our key words today is the evolution of humanity. So in the past, so this is 20 seconds of the history of 200,000 years. So people invented, humans taken advantage of those inventions and only humans are using tools. Other animals don't use tools, they cannot invent things. Only humanity can invent tools to create evolutions, remarkably using your arms, legs, ears, eyes. Those are the base. Try to fly further, try to run faster, try to see even further. So using and expanding your functions of your body, only humanity will be able to evolve with the extension of the tools. So evolution and multiplication, that's the keywords today. In the past one year, especially what I've been excited about is the mission of SoftBank is now clarified. Because so far, Masa, SoftBank, what have you done? Or what did you create? Two years ago, I'm getting old, rest of my life is limited, but I haven't done anything yet. And I cried so hard. That's something I mentioned at the AGM last year. I haven't done anything. I haven't been able to do anything. Is this okay? Can I just get old like this and today, business person -- entrepreneur business Masa, I was really said about myself. But the Steve Jobs that -- who are a good friend of mine before the -- last 5 years before he passed away, we had a meeting almost every month, and he was very clear with his mission, and he devoted himself into his mission. And that passion was actually not money, that was how you see the mission of yourself? So changing people's lifestyle with his one invention. That's something that he was trying to do when he thought that his mission. And I realized that, and I realize his passion, that's why that I was so cried hard for about 2 weeks, and I haven't done anything. I was a bit worried that how can I do? But because of mission of SoftBank is now clear to me, and that's something that I would like to discuss with you here at AGM. So SoftBank's mission, evolution of humanity. Evolution of humanity. That's a big agenda. We will do that. I don't think we can have a bigger agenda than this, but I'm serious. You may say what are you talking? But maybe we should be a little bit more in detail, do you want to hear it? What would be the definition of the evolution of humanity? I would say, realizing ASI. This mission is something that I -- it became clear to me was last year, June 11, about a year ago. On that day, I made a resolution. But I didn't speak in public because I was not sure. Can we do that really? Why can we do that? What is ASI? So those are the things that was in my mind and I was thinking about that only focusing on this -- every day in the past 1 year, only focusing in this, even spending sleepless night and making my right brain working so hard and think about that. In the past one year, my passion became my resolution. As I mentioned in the beginning, in this morning, so we've been thinking about all that in the past one year. Most complicated part, most difficult solution is now came to me. So that is why I'm so happy that as -- I'm so excited, even I didn't sleep last night. But still, I'm so clear with my mind. So I'm going to do it. We're going to do it. Please. When I say I will do it, I will do it. So ASI. So what is ASI? That's something that I would like to explain to you. But before I go that, how many people know by ASI? Please raise your hand. We do have quite many. So shareholder of SoftBank Group and coming to the AGM. So I would say about 5% of here in-person is raising hands, so 95% of here does not know what is ASI. That's not the popular word or a general term. So what is ASI is something that I would like to discuss here. ASI, you may heard the world of AGI because I used it last year at AGM. AGI is artificial general intelligence. That's the kind of bigger of AI but AI is kind of a functioning some part of it. And if you -- the way of thinking or the intelligence with them, if you exceed humanity then that becomes AGI. AI becomes AGI. So about 1x to 10x intelligence, more intelligence and humanity is AGI. So we were aiming at AGI is the kind of AI experts target and objective now -- a common objective now but targeting AGI, aiming AGI, what we should do with it because AGI is almost the same or equivalent as humanity. Maybe same or equivalent, is smartest people in humanity, genius people, genius brain, about 1x to 10x of humanity. One time is about the general person. 10x its genius, I would say. So within the humanities skills or capability, that is AGI. So I said is coming in 10 years, that's something that I said in the public speech but in reality, that was a bit conservative. My real thinking is that, that will come much earlier. Within less than 10 years, I believe that all the AGIs is going to be exceeding humanity, human brain. But that doesn't -- if that's going to be about the same as human or smart human then that we don't need to change our way of living. We don't need to change the structures of human lifestyles because 1x to 10x, it doesn't make much changes anyway. But when it comes to ASI, it's a totally different story. ASI, you see a bigger movement. Those are the AGI moving around. So AGI creating here and there, and that's going to be connecting each other, and it's like a neuron of brain and connected and that becomes 10,000 smarter than human. It's not the 10,000 people, but 10,000x smarter than any genius. That's the kind of intelligence level that we're talking about ASI, artificial super intelligence. That's ASI. So if you aim at ASI and I'm not sure that many people are really seriously thinking about aiming at ASI. And when the ASI comes, how that will come? How much big is of ASI? That definition is not available almost. ASI were probably people start using, but they don't know. Maybe only myself is clearly saying that it's going to be 10,000x. I just made it by myself that it's 10,000x, 10,000x ASI. So -- because nobody knows, nobody -- you cannot find it Wikipedia or anything like that but I would say 10,000x smarter is ASI or you can't call it 100x. 100x to genius already that we cannot really compete. 10,000 times, you cannot really compete. It's about the same thing. But what my image is at ASI will be 10,000 times smarter. That's how I understand. SoftBank was founded for what purpose? And for what purpose was Masa Son born? It may sound strange, but I think I was born to realize ASI. I am super serious about it. Are you serious? You may ask. Can you do it? Actually, that was a question I asked myself. But this morning, I solved the most complex problem. So that's why I am super confident today. Don't ask me why. Looking back, evolution of a humanity, 200,000 years back. Human used to drive evolution. Humans created tools, humans drove evolution. Pretty soon, AGI will come, maybe in 5 years, even in 3 years. Sometime in 3 years to 5 years, AGI will come. Beyond that, AGI will drive evolution. In the past, geniuses have driven evolution of humanity. Different geniuses stimulated each other and delivered evolution. But going forward, AGI stimulates AGI and drive evolution. Because AGI is much smarter than human. So smarter AGIs stimulates smarter AGIs, accelerate evolution. It's non-stoppable. Then ASI will come. I think ASI will come sometime in 10 years. So 10,000x smarter than human. Looking back 200,000 years of the human history. Compared to that, just less than 10 years, ASI will come. So I think we are at the core point. So people awake. Don't think about what you're going to eat tomorrow. Be awaken. So 10 years -- in 10 years, ASI will exceed further than human. Then every common sense will be completely transformed. So some people may say, even though ASI is very intelligent, ASI will not move anything. But that's not true. Robot is much smarter. Factory automation does not have intelligence. It's like a flip phone compared to smartphone. Smartphone has intelligence and smart robot has intelligence, and smart robot will be integrated with AS. And smart robots producing something at factory and clearing roads and doing grocery shoppings and washing clothes. So smart robots can do any physical stuff. SoftBank has been promoting Pepper, as you know, one of our robots. But sometimes our Pepper doesn't look happy. But actually the robot has been expanding in the company in Boston Dynamics. We sold some of the stakes. But other than Boston Dynamics, there are a lot of robot companies working together. And not only Boston Robotic but also other robotic company are amongst Vision Fund portfolio. So let me show you a video of Boston Dynamics, the latest machine. Look at that. The angle of legs and standing up backwards and moved so swiftly. It's just the entrance of robot or humanoid in next 10 years. It was just an example, but the priorities of robot will be available in 10 years, and they will be connected to ASI. So mass production, mass assessing logistics will be done by robots, more and more. And robot driving wave is also one of the Vision Fund portfolio companies. Let me show you a video. [Presentation]

[Interpreted] Here, unlike traditional autonomous driving, high-definition camera and riders, those sensors do not really drive autonomous driving car. It's a camera, which is actually cheap and autonomous driving 2.0 is what you're seeing. I alone can make a decision. And the -- it's not like a calculating already predicted map like Wayve style autonomous driving It's not like that. So only generative AI is used because generative AI learns. Once they learn, for example, if they have training in London, and when you go to a place for the first time because the car learned already. So even in a place where they have not been there before because of the learning, the car can start running. So again, one of the examples of the latest evolution of generative AI. Of course, I'm pleased a central role in our group on data center side or cloud side and also on the edge side, like devices and cars and robots. So on both sides, everywhere, anywhere, GenAI functionality will be implemented by Arm. And Arm-based chip shipment is shown here, the [indiscernible] in the world. As you can see, very beautiful exponential growth. And stock price may go up and down, but the shipment keeps going up. No down at all. And everywhere, anywhere, the Arm will be expanded into ASI. Why is Arm so strong? Because of the computing power and design power. In Cambridge in U.K., there is a team of genius design architects and those architects have absolute talent and capability to deliver computing power and energy efficiency. So this combination, it's great in AGI, both cloud side and edge side. So energy efficiency plays an important part, actually. So everywhere, Arm chip for AGI or evolution of 2, ASI will be delivered by Arm. Not only Arm, NVIDIA, Jensen actually is 1 one my good friends. And Microsoft became the #1 in market cap, very recently and NVIDIA became #1 also recently. And Arm has business transaction with NVIDIA. And actually, is in NVIDIA's Grace and not only NVIDIA but also Microsoft, Oracle, Amazon, Google, our licensed technology is adopted by those great companies. In the space of a smartphone, 99% of market share a year, but effectively, I believe, 100%. So almost all things in the world are supported by Arm licensed technology. And AI chip is essential in ASI world. Not only Arm, but also NVIDIA, Intel need to work together to support AI data center. Well, in fact, in Japan, shops -- factory site will be used to build a new data center in Japan. So we should build AI data centers across the world. And AI robot, like I mentioned earlier. So in all sectors, we will promote. But Softbank alone cannot do. It costs a lot. So we work together with partners to finance, not only financing but also in technology, we need to have partners. Forever, shared vision, we hope to achieve a goal together. Last but not least, ASI. That one slide is my message. SoftBank's mission, my commitment, why SoftBank was born? The group had done a lot of stuff and we will keep doing a lot of stuff. But in the past, everything we have done was just for preparation, and just a warm-up, I would say that. So that vast vision and vaster dream and a strong commitment compared to that gigantic vision, where the dividend is not a share buyback. Just a small stuff. Do you want to ask that kind of small question at AGM? That's a margin of error? Did you make money in the last 12 months? JPY 20 trillion of income. I don't care, that's a small stuff. In just a matter of money, shareholders, I said, I came here for the 2 reasons whether SoftBank share price went up or not, maybe you can forget about. Don't worry about that SoftBank share price stuff. So long as Son, Masayoshi dreams a big dream. Why don't you support Masayoshi-Son, who has a big dream? But the reason why, what should I do if a human is surpassed by ASI 10x? What's the happiness? What's your work? What's the labor? Is it acceptable to have such a machine? What's the purpose of humanity? That's a fundamental question that you may ask. That's a fair question. You should ask that fair question. Philosophers in Greek ask those questions every day. Think about fundamental question is, I think, important. Why do you want to deliver 10x smart. During last year, my dad died, and I cried every day. I was saw in despair. And that despair, if there was a 10x smarter something than human, maybe that ASI could have solved problem. AGI is not enough. One foreseen as human is not enough. It's just a replacement. It does not solve a problem. And I don't want anybody to die from cancer. In fact, my mom suffered from stroke before, and I was so sad. Traffic accident, cancer, stroke, if there is an autonomous driving, that could reduce the number of traffic accidents so many times. That is meaningful. That is effective if you want to reduce the traffic accidents to 100 or thousands or millions. Maybe human brain is not enough to solve a problem, but such a huge problem may be solved by ASI that has 10,00x smarter brain. Big earthquakes, big natural disasters, pandemic, humanity has faced challenges and agony and pain in the last 200,000 years. What if there is a brain 10,000 times smarter than human, maybe ASI can save you from disparity. What's happiness? What's work? What's labor? Do you have to sweat and work? Is that something that you wanted? Of course, you have to work for family. You have to earn money for family. Maybe that was the reason why you worked. In the past, you have to walk far away to get water somewhere far because you needed the water. So whatever you need, ASI and robot can solve problems and people say that people were born to cry and people die and cry, if you cry when you are born and when you die, why don't you be happy in the meantime. So making people happy is the unwavering philosophy of SoftBank Group. People often say that SoftBank Group has changed the fundamental core businesses so many times. We have not changed our core businesses. Information revolution, happiness for everyone, that is our core business always. But the ways to make it happen has been evolving. SoftBank has not changed the core business. If you say SoftBank has made our core business, SoftBank has changed the core businesses. Those people don't know what evolution is all about. SoftBank, I think is mission. Biggest and only core business, which is to deliver information evolution, happiness for everyone. And I believe evolution of humanity going forward should be driven by ASI and we want to contribute to that. Realizing ASI is our mission. Thank you very much for your attention today. That concludes my presentation. We would like to move on to the Q&A session. Why don't you share plate? You can ask me anything like that. Well, the moderator will explain you how we proceed the Q&A session.

[Interpreted] First, we will address those questions we received in advance to the meeting. Then we will address questions from the floor. Please raise either a red, blue, white and green paper we provided at the reception so that the Chairperson can see. Please wait for the microphone. And we will take a question or comment from one person at a time. We would like to limit the number of questions to one per shareholder. Speakers are asked to first provide only the number on your entry card. But you do not need to give your name. Then we will address questions from online shareholders we received today on the agenda of the meeting. We would like to limit the number of questions to one per shareholder as well. Please note that we will finish taking questions from online shareholders in 5 minutes from now. Okay. Now first, we will address questions we received in advance to the meeting. First question, please share with a specific example of synergies between portfolio companies of SoftBank Vision Fund, which is the core of AI cluster of #1 strategy. And also let us know if there are any other synergies you can expect in the future?

[Interpreted] Well, already sold most of the shares. Uber, we were the largest shareholder then, and they grew drastically and then succeeded. 2 weeks or 3 weeks ago, the top of the Uber and executive people visited us -- visited me and we had dinner. And at the dinner table and so they came over to meet me because I was the largest shareholder back then. And 5 to 6 companies we discussed how they could collaborate with those Japanese companies, and they were very much excited and also AI robotic company, and it will be linked to ASI moving forward. So the Vision Fund, when it comes to evolve, and we are to seed for evolution, and we are playing a very important role in terms of seeding of evolution, and they are in the top of each industry. So there will be more and more synergies will be coming.

[Interpreted] Next question. I believe it is a great benefit for SBG to have Mr. Rene Haas, Arm CEO on SBG's Board. Please let us understand how Mr. Haas engages in the management of SBG?

[Interpreted] Yes. NAV or net asset value that I talked about, more than half is contributed by Arm. So Arm has become the center of our business. So why don't we ask Rene directly about the question.

Okay. Well, thank you for the question. So as Masa said, he and I talk many, many times a day, even a few times this morning. [Foreign Language] And this is because Arm is the center of everything that is around computing. And when you look at the SoftBank vision around AGI and ASI, it's very natural that there's going to be an intersection between Arm's technology and all of the strategies that SoftBank is pursuing. [Foreign Language] Whether it's around robotics or autonomous driving, some of the videos that Masa showed, those technologies that you saw in the video, they all run on Arm. So it's very natural for myself and Masa to have many extensive discussions about the future of technology because the intersection is very natural. Thank you. [Foreign Language]

[Interpreted] Okay, next question. I saw a news article saying a large shareholder of SBG is proposing a share buyback. I would rather like you to increase dividend than share buyback. What is your thought about that?

[Interpreted] Like I said earlier, just a small matter. Well, if you do, we do. Like we did that before, JPY 500 billion level, JPY 1 trillion level. when, how, how much? You have to make a decision. As a total, so let us make a decision but we are ready to do any time. We are ready not to do any time.

[Interpreted] Next question. Do you have any plan to increase internal Board Director, especially female director? Why not appointing any female?

[Interpreted] Well, yes, we do have a big intention to appoint any female directors, and we are looking forward to having more and more female executive members, either from internal and Erikawa-san is playing a role of 3 people -- and actually, so she is already playing a big role.

[Interpreted] Next question. Now the share price is high and difficult to purchase for a retail investor, will you please consider share split?

[Interpreted] Yes, again, small matter. When we do, we do. When we do not, we do not, let us make a decision.

[Interpreted] Now we will address questions from visiting shareholders. Please raise your colored paper. The one with the red paper. Please give a microphone.

[Interpreted] My number is 0429. Investing in Arm, you said that Nagamori-san criticized you a lot back then. And I'm aware of that. So I was -- I'm very happy that you invested in Arm. So what I respect to you, Mr. Son of is that about 5 to 6 years ago, JPY 500 billion or so back then to NVIDIA and that scale, you invested in NVIDIA. And then -- and after that, with NVIDIA and Arm were together and at the end -- if that was a fruitful or not is another question, maybe at the end, it was a bit difficult to put these 2 companies together. However, but you already had a keen. You are keen on that and now NVIDIA has become the world's top market capitalization and you already had sharp eyes on that. So I'm so impressed.

[Interpreted] Yes, you're right. Yes, complement me more.

[Interpreted] So what I want to hear from you the most is SoftBank Vision Fund is going to be focusing on AI, that's what you said before. And for that direction, what is growing the most is now OpenAI to GPT, I believe. So Microsoft had initially invested and OpenAI and in growing. Right now, a year ago or so, I heard that you wanted to invest in OpenAI. I'm not sure if you have done or not but as a SoftBank Vision Fund focusing on AI that had already taken initiatives like some years ago.

[Interpreted] Can you make it to the point, your question?

[Interpreted] Well, you were not able to invest in OpenAI some years ago or you were not paying attention to OpenAI back then? I thought you would have had a keen eye on OpenAI to invest. So that's what I wanted to ask.

[Interpreted] All right. So NVIDIA and OpenAI, 2 things. Well, I don't know if I should mention about this or not, but okay, let me tell you. When we purchased Arm, right next month, NVIDIA's Jensen and I alone at my home in California -- in my garden at the California home, we discussed for 4 hours over meal. And I bought -- I purchased the Arm and want to now -- want to purchase NVIDIA now. You don't have to pay any penny. So I will make it from 2.5% to 10%. So you can stay as a CEO. And we talked over 4 hours and that was the only discussion point. And I wanted to merge NVIDIA to Arm. So because we had the same vision towards AI, but making it to private and then to merge and then he was a bit hesitant to do so, and he was hesitant to become the subordinate to -- subordinate with me. And so I would -- I told him that I would just stay as a largest shareholder. But anyways, we had a good conversation. If that had happened back then, then SoftBank would have become the largest market capitalization. The fish we missed was really big. And after that, like purchased 5% or one of the investees of Vision Fund. So internally, there was a voice to leave and 5% holding, 5% is not that strategic way. So that's why we sold it. And then after that, there was a COVID pandemic, and we SoftBank had to also survive. Therefore, we sold whatever we could do except Arm, but not selling Arm, but to merge with NVIDIA. If we had done it, then we would have become 10% of shareholders. So it means that JPY 45 trillion almost JPY 50 trillion, we would have held by then. So the NVIDIA was the largest market capitalization exceeding Apple and Microsoft and so when we look at the figure, yes, maybe that was better to do. But if the God were to give me one more chance to give me -- to purchase whether Arm or NVIDIA. I would -- I have no question, but what I would buy Arm without no question, no hesitation. If I say this later than everyone would say, "Oh, you're lucky, now you're looking at NVIDIA, the world's #1 company," but I have no doubt in my mind that I would purchase Arm right now. But even now, if I were asked to choose between Arm and NVIDIA, I would choose Arm. So I'm not telling you to purchase shares of Arm but this is how much I'm confident in the future of Arm. So well, NVIDIA, that was it. And OpenAI with some -- when Microsoft invested like JPY 1 trillion or more a year ago, and even before that, Sam and I had a talk alone. And that time, so SoftBank was the one to put JPY 1 trillion. And I was almost determined, and Sam was also in favor of that, and he had to discuss with his members and he was considering. I was determined pretty much, but then Sam decided to receive JPY 1 trillion from Microsoft. I think it was the right decision because Microsoft is the world's #1 company and with the largest channels with largest capital, and for some, that was the right decision. But at least back then, whether I had an intention to do so or not, the answer was yes. So there are a lot of fish that I missed, but there is no use looking back then. So we would like to look ahead. Realization of ASI, not by us alone but with others with same ambition. So that's where I'm focused on right now. The next question?

[Interpreted] My number is 0307. Since October 2022, I have been applying patents and some are public, and looking at them, mainly autonomous driving and factories. So I wonder how are you going to utilize those patents you applied as a SoftBank Group?

[Interpreted] Thank you. Like I mentioned in my presentation, when ASI era comes in, all robots will work as hands and legs of ASI. So sooner or later, I'm open to utilize the patents that applied. Since October 2022 to the end of last year, I myself applied 1,008 patent, maybe 3 per day. My right brain has been working so hard. So on the first day of the year, I decided I apply 1,000 this year, and I did that. But now my mission is clear, like I said. So realizing ASI is my mission. So again, the patents that I applied was something that I have done. So only focus at the moment is ASI. I don't apply a lot of patents recently but ASI is the only focus that I have in my mind and get deeper.

[Interpreted] With the red paper, a female shareholder.

[Interpreted] 0577. I am very, very honored to be able to meet Mr. Son. I am shedding tears.

[Interpreted] Thank you so much.

[Interpreted] So my question. So Mr. Masayoshi Son, who do you most respect?

[Interpreted] Yes, I have several people. I respect to when I was 19 years old and in Mr. Sasaki, the Vice President back then of Sharp Corporation, and I sincerely respect him, and also Mr. Fujita of McDonald's, I was 16 years old when I first met him. And Steve Jobs, I was so much impressed and with tears, and I really respect him. And Sam of OpenAI, I fully respect him. And Elon Musk, he is great. He is sometimes hard to follow but also dams of the mind, he is genius. So I cannot just give you one name. Of course, Bill Gates, I really respect him. So many of them. So I want to keep brushing myself. You look like my mother.

[Interpreted] Okay, next question. Somebody carrying a red board over there. And I will appoint you someone in seat row next.

[Interpreted] My number is 41. In your presentation -- in the video, actually, there was a comment about building a data center in Hokkaido, Amazon, Oracle, those big tech companies start building data centers. In the meantime, power consumption can be increasingly bigger and bigger. And then the concern is global warming and environmental issue. As AI evolves, power will be consumed more and at least to global warming. Then it does not lead to happiness for people. So my question is, what's your view on how are you going to secure power and electricity?

[Interpreted] Yes, power and electricity is a fundamental question. It can be one of the biggest bottlenecks going forward and it definitely has a huge impact on global warming. So I share with your concern. There are a lot of technical evolutions like nuclear fusion and renewable energy and natural energy sources and currently available technologies, if you look at them. If you want to see as much as possible, Arm should play great role and NVIDIA actually designed to save power consumption. Likewise, Microsoft, Google and Amazon and Intel. So they are replacing into an AMD to Arm so that they can save electricity consumption by half. And Arm should play a key role in terms of power saving is at least trying to reduce the pace of increase of power consumption and Arm should contribute. And as far as energy is concerned, I hope to give contribution in some way.

[Interpreted] The block C and with the red paper.

[Interpreted] 530. Mr. Son, so what is your vision for ASI. Do you think the reason why SoftBank became so successful and that's because you had the vision and the passion and ambition that's why your company have grown this big. But for AGI or ASI, do you think you can have visions?

[Interpreted] Yes. I can say so. Computer has no emotion or cannot understand emotion. Human beings can do. So that is the conventional way of thinking because we human being looking down how the computer is. So it is just part of intelligence. Dogs, cats have emotion. That's because neurons are being active to think about something and then with emotion. So the number of neurons. So ASI with a number of neurons. Why cannot ASI have emotion? So even now GPT emotions are there. So Sam of OpenAI also said that, slowly, but absolutely. So this started has emotion that will be by GPT 5 or 6. Like Gemini also, but it's just a matter of time. It will become more with emotion. So when you have ultimate emotion realized then ASI and AGI can be realized as well. So I have already filed the patent for this emotion-related thing 10 years ago. So then sooner or later, my patents will be useful.

[Interpreted] So next question is a female shareholder over there.

[Interpreted] My number is 62. Thank you very much for the wonderful presentation. Maybe my question is similar to whatever somebody mentioned before. ASI, do you think ASI can eradicate wars in the world?

[Interpreted] Yes, I believe so. At least AGI and ASI, some people are concerned. They may kill humans altogether. I think the other way around. And there are some people who may kill people in the world, you know whom. What if somebody push that button. Maybe humans are -- not general humans I'm talking about, a particular, a small group of people, I think that's something that we should be afraid of more. ASI is smarter, and ASI should work with their super intelligence for the people to protect people. To protect people, ASI, I think, will come up with ideas. And give a safety to people. That's what I think about ASI, AGI.

[Interpreted] Where the green paper. Please keep raising your green card, green paper. Thank you.

[Interpreted] 601. So right now, the space industry is also quite active, especially in the U.S. As for SoftBank, do you have any plan to enter the space industry?

[Interpreted] Not directly, but our investee -- one of the investees is doing the satellite communication or HAPS related. And so we may be investing in those areas but it's not that we want to fly to the moon or to establish share space station. But to cover the earth communication, to realize once ASI has realized to protect Earth, the intelligent infrastructure. For that may be possible but there is no intention that we'll be directly launching a rocket.

[Interpreted] Okay. Next question, somebody holding a blue board over there.

[Interpreted] My number is 0217. It's been reported in the media since several months. AI accelerator that complement Arm, I think SBG has built a cash, and I think it's highly likely to make it happen. Can you share anything about that? And Rene, I think in January this year, there was a -- mentioned in a Nikkei interview that whatever what you wanted to do with NVIDIA is something that he can do by themself without NVIDIA.

[Interpreted] For each and every specific project or strategy. It's hard for me to make a comment, but I made it clear that we will realize ASI. There are some things that we do on our own. Other things we work together with others. So there are different tools in the toolbox. So again, directly or indirectly, we will do.

Yes. This is a SoftBank AGM, so I am not going to give the Arm road map here. [Foreign Language] But as Masa said, there are many ways to address this market. We can do it ourselves or through partners. And as Masa said, there is only huge opportunity here. So we are very focused on helping SoftBank achieve the vision. [Foreign Language]

[Interpreted] So in the interest of time, we will take 3 more questions from the floor.

[Interpreted] With white paper, female shareholder in the front row.

[Interpreted] I had purchased NVIDIA's shares before to split. So because back then, Mr. Son, you were saying that to sell NVIDIA's and back then was $115 per share. And -- so why -- I was wondering why you were saying that to sell NVIDIA share, the shares that I purchased back then, there is over like JPY 400 million worth now.

[Interpreted] Well, that's great. I don't -- I can't remember if I ever said that I would sell to the NVIDIA. But anyways, I admired NVIDIA. And even before and after selling the shares of NVIDIA, I'm still in good terms with Jensen. So even after that, 5% of NVIDIA shares, we were holding, and we -- why we sold is that we had to focus on SoftBank Vision and we had to improve the businesses of SoftBank Vision. So I was hesitant to sell that, but we needed also some cash and I was crying. Yes, I don't want to be reminded of -- so 5%, if we had kept that, that would be how much? JPY 20 billion or so. Let's stop talking about this. It will be -- would have been more JPY 20 billion, no, 220 -- 25% JPY 25 trillion? JPY 25 trillion, would have been JPY 25 trillion. It's almost the same as Arm's share. So if I -- yes, I had purchased 5% of NVIDIA. It was really instantly I bought, wow, JPY 25 trillion. Let's stop talking about this. I just get sad.

[Interpreted] Can you please repeat your number?

[Interpreted] Forget about that.

[Interpreted] Female shareholder over there in the E row, please.

[Interpreted] My number is 0312. Thank you very much passionate talk today. SoftBank attracts shareholders, thanks to your passion and charm. And I believe that our shareholders are as excited as you are now. You mentioned earlier the way you work recently, I have a little concern. Two questions. First, how do you manage your health? What do you do specifically to keep you healthy? And second, do you have any worry personally? I think talking about the risk management, what areas you pay attention to -- or pay attention to when it comes to risk management?

[Interpreted] Health. I love exercise. I love sports, golf, for example, my -- one of my hobbies is playing golf but I'm too busy to play golf recently. But when I play golf with my young people, like [indiscernible], and we compete each other sometimes. I love golfing and sometimes young guys beat me. But sometimes I beat them. I have a small pride myself. I tried to play sports as much as possible. I want to continue doing that. But you need to sleep still. I try to have a good sleep as much as possible but my right brain wakes me up. But I should pay more attention to my health more. But when it comes to health. Accident, I am worried about the potential accident. So accident, health? Well, when it comes to work, I don't have many worries or concerns. I love debt. I love borrowing money. But it's less than 10% against the value. But again, our LTV is 25% level. So 25% or less than 25% of the total value, so long as we borrow money while keeping that result. Well, in the work case, I learned a harsh lesson, and I apologize actually. But when it comes to work, I don't have any worry or work does not keep me awakes. I am super confident when it comes to work. So no worry.

[Interpreted] So maybe the last question? One last question from the floor with the white paper.

[Interpreted] 0501. About ASI, what should we prepare for the era of ASI?

[Interpreted] You are so young. It's a great question.

[Interpreted] I'm 22 years old.

[Interpreted] Wow, you are sitting in the very first row, and I was thinking about appointing you for a Q&A session. Well, you're 22 years so, then you're going to live for like 200 years from now on because the medicine is going to be advanced that far. So the next 10 years, I think ASI would come. Well, if it is realized then what is happiness? What is your life? We would be thinking more seriously and to leverage at an ultimate way, and to contribute to the happiness of people. So I think you should be thinking how you could contribute because you cannot avoid ASI when it comes rather than avoiding even from now, you should be proactively using. And I use ChatGPT every day, I'm a heavy user. And in the era of ASI, every single person will own its own agent, not only one or 2 agents, but your own agent, not your subordinate but as a partner or maybe a mentor to you, or your supervisor. So that level of ASI partners will be realized in a virtual environment. And you could have not only 1 but multiple partners to talk about investment or talk about your hobbies, sports, work, your supervisor, your mentor, your partner, ASI as such. On a daily life base, you will be living with ASI and as a physical partner and not only one ASI partner but more. Not only humanoid. And as such, society is where when you become in your 40s or 50s or 60s, it will be completely fused, integrated in your daily lives and the coming years. So like not matured expertise make some comments give you some advice. But it's not fully professional. So they just give from their piece of knowledge and give some limitation and some immature AI expertise comments. Don't listen to them because they don't know. So it doesn't have to be AI expertise but in your instinct, what you should do when it comes to the era of ASI. Someone like you, a young people. So to talk about your life in the future. So how I use GPT is that to be more interactive, not just to search but we just debate and then talk about my ideas. And I ask you our junior scientists, A, B and C, and how would you solve this problem? Can you debate? Can you guys debate in front of me? And in those 3 GPTs keep debating and then from different angle, I put my -- and I ask them and then I ask them to debate in front of me. And then once there is a consensus among them. And so when -- until they come to a consensus, then I keep them debating. It's so interesting. It's really informative rather than discussing with my own subordinates, it's so exciting. I just cannot resist doing that. So within ASI, you don't have to enter, you don't have to feed by yourself. Maybe you just wear glasses, and the conversation you made in the past or the people you met in the past or the meetings you joined in the past, and then remember those and then give some comments or input. So they are too smart. They are too intelligent. They are more -- like 10,000 times smarter than us but they are updating themselves on a daily basis or by every second. So if that world comes and those who are talking about the limitation of -- or limit of AI. So I can talk about this for the next 48 hours. Well, we should stop. We have to take questions from the Internet. Maybe we can take five questions.

[Interpreted] Now I'd like to address questions from online shareholders today. First question, is there a plan to build a company to build a chip for AI, I am excited about the plan. To what extent can you share with us about the plan? [ Isanagi. ]

[Interpreted] Well, specifically, I cannot say anything. For the goal, I publicly said that I am committed. But the way -- so because of potential competition, I cannot make everything public. In this professional world, we need to fight on the performance. But I am committed to the result. How to achieve the goal? I cannot make any comment at the moment, but I am committed to achieving the goal.

[Interpreted] Next question. The relationship between Arm and NVIDIA is like the AI semiconductors and the Arm's CPU is embedded. Do you think their relationship will become like a rival relationship in the future?

[Interpreted] Well, I'm in good terms with Jensen of NVIDIA and I believe that they will become the best partner moving forward. But Arm's technology will be extended and the same with the other way around. And so there may be the area. They may be collaborating partly. NVIDIA is a great company, and we would like to keep supporting NVIDIA.

[Interpreted] Next question. Mr. Son, about the health, you suffered from a serious disease when you were young?

[Interpreted] Yes, I spent 3 years in hospital but I am super healthy. Even though my voice is a little bit hard. Yes, I suffered from hepatitis B but I'm okay now.

[Interpreted] Why is the amount of shares held by Mr. Miyauchi decreasing drastically? Why is it so?

[Interpreted] Mr. Miyauchi, SBKK's position, so are you going to retire soon or...

[Interpreted] Thank you for your question. Yes. I still own 1 million shares.

[Interpreted] Wow, that's a big amount.

[Interpreted] I don't want to talk in details but under the scheme of Mizuho Bank and -- so I still have like 2 million or so but I returned the loan like JPY 5.5 billion back and I returned back in this summer. So considering my age, so I gave a baton to Mr. Miyakawa. It was successful for SBKK. And for SBG, Mr. Son, so I've been telling Mr. Son to replace me with a younger talent.

[Interpreted] So like 5 years ago or so, he is telling me that he wanted to retire. I always say no as far as he is healthy because Miyauchi, and he was my #2, and I was always like talking about the bigger ideas. And then when I jumped into the new evolution and then Miyauchi, he -- so I was in charge of evolution, he was in charge of multiplication. So you had to returned a loan.

[Interpreted] We will address one last question agenda of the meeting. Do you consider privatize yourself or delist?

[Interpreted] I have thought about that several times because our share price is 75% -- 70% discounted sometimes. And I thought it was unfair then instead, why don't we privatize ourself and do on our own? To be honest, I thought about that before, and I might think about that in the future again. And our stock price is too much discounted, like I said, a little bit before, JPY 34 trillion worth, excluding debt. But our market cap was JPY 14 trillion. Arm's value, JPY 22 trillion, JPY 21 trillion. Still, market cap is JPY 14 trillion. That's what so-called Masa Son discount. Am I a hurdle and the big objection? Without me, the market cap would go up to JPY 10 trillion, JPY 20 trillion or more. But again, that's peanut, that's not a big deal. So stay tuned. So nobody knows what will happen. No promise at all. Share buyback or not, privatization or not, or stay on the course. In whatever realizing ASI is my only focus. Thank you very much for those great questions. So now I'd like to take votes. Our moderator will explain how to proceed.

[Interpreted] For the online shareholder, please select approve or disapprove for all of the proposal on the website and click exercise. Please note that all submissions will be made in a single transmission.

[Interpreted] While we confirm the result of online shareholders, I'd like to take a vote from visiting shareholders. Now let us take votes. Online shareholders, please exercise your vote through the Internet. First, take a vote on Proposal 1, appropriation of surplus or dividend payment. All those visiting in favor of the original proposal, please clap your hand. Thank you very much. [Voting]

[Interpreted] I'll take a note -- vote on Proposal 2, election of 9 Board Directors. All those visiting in favor of the original proposal, please clap your hands. [Voting]

[Interpreted] Thank you so much. Please wait for a moment. We are confirming the result. Thank you for your patience. I will report the confirmed results. Proposal 1 and Proposal 2 have received a majority of affirmative votes. I am reelected. Now all the proposals have been approved in the form proposed. Thank you very much. This concludes today's agenda, and hereby declare the 44th Annual General Meeting of Shareholders of SoftBank Group Corp. closed. Last but not the least, I'd like to share my favorite video with you for the end of the meeting. Again, after you heard about my commitment to ASI, please have a look at the video once again although the video itself was made 10 years ago so but have a watch. [Presentation]

[Interpreted] Once again, thank you for joining our Annual General Meeting of Shareholders of SoftBank Group Corp. [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]