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

[Interpreted] Thank you very much for waiting, everyone. Now we would like to start the SoftBank Group Corp. earnings results announcement for 6-month period ended September 30, 2025. First of all, I would like to introduce today's participant. From left, we have Yoshimitsu Goto, Board Director and CFO; Kazuko Kimiwada, Corporate Officer, Senior Vice President and CAO; Navneet Govil, Executive Partner and CFO; SB Investment Advisers and SB Global Advisers; and Jason Child, Executive Vice President and CFO, Arm. Today's announcement is live broadcast over the Internet. Now I would like to invite Yoshimitsu Goto to present you the earnings results and business overview.

[Interpreted] Good afternoon, everyone. Thank you very much for joining us -- with us today. So we would like to have this earnings results announcement for the second quarter. First of all, I have to talk about this. As you -- many of you may know, I am also CEO of SoftBank Hawks, the professional baseball team in Japan. And thanks to all your support that we are able to have this Japan championship title first in 5 years. Fukuoka SoftBank Hawks, the company itself, has been growing very steadily, which I don't have much chance to share with you, but maybe some time that I will be able to speak about it as well. Set aside, Masa, our Chairman and CEO, with the visit of President Trump from United States, he was on media quite often these days, and he's been going back and forth between Japan and United States quite often to achieve our vision. And also based on that vision, he's back calculating what do we need to do now. So based on that, he is working very hard to welcome the efforts that what we need to do now for achieving our vision and goal. Especially the keyword that we have right now is physical AI. What that mean is that robot, for example, autonomous drivings. So AI and mobilities or robots will be combined together to provide you more complicated techniques or services. And that is coming very close to our life. And to be prepared for such time to come, we need to be prepared and we need to work on, so that we do also need to complement the area that we are not very good at. 2010, when we created SoftBank's Next 30-Year Vision, message never changed, but actually, this is a slide that we used back in 2010. Our fingertip is actually carrying heart and sharing is robot's fingertip. So brain computer and the muscles actually connecting, then robot or robotics will be mingled with the society so that the technology or robotics may be able to solve the unsolved issues or problems that the society is facing or societies will be facing. And SoftBank Group wanted to achieve the coexisting with the robotics or robots that has hurt or feelings. Recently, we announced agreements on the acquisition of ABB Robotics, and we believe this can be a very big step forward to achieve such goal and vision. To realize ASI, what do we need to do? What we should be doing? That's something that we try to be more specified. So the Arm, which is the semiconductor business player, can be expanding the business domains for the chip area together with those companies and powers and data centers. And this time, adding the ABB Robotics has become a very big part of our AI model. And with this timing, having such a great company to be our family member is going to be something great, which we'll be able to show you the good result out of. And here on that I would like to go into the more numbers or the financials. There are four key highlights. First is the fair value of investment in OpenAI, which has been growing dramatically since our investment. So it's been increased by $14.6 billion, maybe JPY 2.2 trillion or so. And with that, to number two, JPY 2.9 trillion record high net income for this first half. I've been seeing some articles showing the net loss, but actually, this time, this is a large net income increase. And net asset value, which is the most important KPI for the company, and this was reaching JPY 32.3 trillion at the end of September end. Since then, actually, this net asset value keep growing. And fourth, KPI to measure our soundness of our finance -- financials, which is loan-to-value and 16.5%, which is more than safe and at the same time, JPY 4.2 trillion of cash position. So safety -- soundness also has no issues with our business. So those four points are our highlights for the first half. Now let me go into the more specific of the consolidated results. As you can see, sales, gain and loss on investment, income before income tax. And actually, those three are actually hitting the record high for the first half, JPY 3.6 trillion for the income before income tax and JPY 2.9 trillion for net income. So if you look back the history of net income, important thing is the kind of trend. JPY 2.9 trillion, this number is also very important and we appreciate very much. But at the same time, as an investment company, market shares has volatility goes up and downs, largely ups and largely down as well. But the investment company should not be too happy or too sad about those daily volatility. What is important is we should have a momentum and trend of keep increasing in net income. And as long as we will be able to keep that trend, then that I think that we are doing the right thing. So you can see here, we do have ups and down, of course, but trend-wise, we are keeping increasing trend. And here is the gain or loss on investments and net income. The same things applies. There are ups and downs. But again, with the increase in fair value of OpenAI became the big driver for the gains for fair value at this time. If you have a breakdown of this gain on investments, of course, large contribution is coming from OpenAI. It's about JPY 2.2 trillion or $14.6 billion. The reason we were able to have this result is because of September last year, that was the first time we invested in OpenAI. And OpenAI held several times of the financial round and the latest October round was JPY 500 billion valuation. As a private company, I believe this is one of the largest valuation or the fair value. Our investment in OpenAI is here to simplify a little bit. So $10.8 billion is a cumulative investment cost. And this, along with the increase in fair value of equity interest, we were able to achieve this number this time. On top of that, as you may know, in total, we are investing up to $30 billion for this year, which contracted at the April this year. And the final investment payment will be happening this year -- by the end of this year. And that's happening from now, but this has already been contracted so that the share price for this payment or investment has already fixed as well. So this is very much similar to forward contract. And the fair value of forward contract has also been finalized this time and recognized on an accounting point of view. So that is why you see this green bar increase in fair value of forward contract, which is $8 billion. In total, that leads to $26.5 billion. And you see the investment gain is the gap between $26.5 billion and $10.8 billion, which gives you $14.6 billion as an investment gain for second quarter. And the key indicators. So these are the three KPIs are the most important indicators for the company and no change from the past. Net asset value at the end of September, JPY 33.3 trillion; loan-to-value 16.5%, it's a very safe and low level; cash position, JPY 4.2 trillion. Last year -- excuse me, last quarter compared to the June end, all these indicators are improved. Net asset value, latest number as of Friday last week, for your reference, this is a pro forma basis and JPY 36.2 trillion. So again, this is the record high number. Loan-to-value, it remained at very low level. During the COVID, like 2021, we were exceeding a little bit above the 20%. Of course, the lower is better. But if you go too low, then that means we're not making any investment activities. So we need kind of a good position in between there. So '23 to '24, it's been kept very low to 7% or 8%. And from there, we came back to investment mode. And with all those investment activities, that gives us a 16.5%, which I believe is very good level of loan-to-value. Cash position, JPY 4.2 trillion, which is also very stable. If it's too much or too high, that's not efficient. So I think we also need to find a good level there, too. Next, let me talk about SoftBank Vision Fund. Looking at SVF segment for the second quarter, we recorded $19 billion, driven by fair value gain on OpenAI. Of $19 billion, $12 billion came from OpenAI, plus others $6 billion. $19 billion is amazing. Excluding OpenAI, $6 billion shows strong growth backed by other portfolio companies. OpenAI, that kind of home run is needed when you manage a fund, but also you need regular hit like other investments. On the right-hand side of this chart shows SoftBank Vision Fund 2. Vision Fund 2 is the vehicle to invest in OpenAI. So gain or loss from OpenAI is reflected on the right-hand side. Obviously, OpenAI takes a majority of the part. Left-hand side shows SoftBank Vision Fund 1. It showed $5.7 billion, which is also a big number. If you look at the breakdown, public portfolio companies, which have been growing since listing grew and also private investments grew as well. So both SVF1 and SVF2 grew, which is very meaningful in the second quarter. As a result, since inception, the cumulative investment sometimes performed good, other times performed bad due to poor market conditions. And there were some challenging times, especially in the COVID, 2020 or 2021. And we did appropriate accounting treatments like write-down, and we are beginning to see a strong turnaround. It shows public listings and pipeline. Left-hand side shows public listings. Since inception, we listed at 58. In the second quarter, finally, Klarna was listed. We expect a further growth and bigger valuation. On the right-hand side shows pipeline. Total fair value of late-stage portfolio from our perspective is $56 billion. And PayPay and Lenskart already filed. In fact, Lenskart just recently, actually yesterday, listed after filing. And also Meesho and other companies already filed for listing. And also left-hand side shows select late-stage portfolio companies, including OpenAI, ByteDance and Fanatics. Those big names together with OYO, Revolut, Yanolja, these are among the companies that is in our pipeline. And we expect them to grow their value further. And I hope that you will have a high expectation as ours too. Now PayPay. Timing of IPO, we cannot make a comment, as you know, but we can talk about business of PayPay. Number of registered users exceeded 71 million, as shown on the screen. It means one in two people in Japan used PayPay, and two out of three smartphone users use PayPay in Japan, which is significant. Two of their key indicators are GMV and EBITDA. GMV grew 25% year-on-year to JPY 9.2 trillion, whereas EBITDA doubled year-on-year to JPY 48 billion. They are ready for IPO, and they are performing pretty good. Now let me talk about Arm. To put it in a one word, steadily growing. As you can see, they hit record high revenue, license and royalty revenues in the first half of the year. And non-GAAP operating income was up by 14% year-on-year. You can see how Arm is performing pretty good. Of course, they want to invest in R&D, which is growing as the business grows. But still, bigger income offset those R&D investment in even more. Let me pick up two highlights. One is a compute subsystem, which is one of the pillars to support Arm's business. It enables even higher royalty rates than Armv9 by utilizing multiple Arm technologies. In the second quarter, they got 3 more deals totaling 19 companies. Well, 3, 19 may sound very small. However, those include hyper players or big companies like Microsoft and Samsung. So those big companies have been adopters of Arm's latest technology. Also, they announced Lumex CSS for mobile device, mobile devices like smartphone and laptop PCs. This CSS integrates the most advanced CPU, GPU and system IP to accelerate AI performance on edge devices. As you can see, compared to previous generations, you can see up to 5x AI performance, 2.8x faster audio generation and 3x better energy performance. Now guidance. As you can see, revenue-wise, $1.225 billion or 25% year-on-year. As revenue grows, as you can see, investment in R&D is growing, but still -- we expect they can still post revenue and profit. But in fact, cost should be used as early as possible, which I think is true not only to Arm, but also SoftBank's business model. So properly and in a big fashion, we want to spend the necessary expenses. Next is OpenAI. Since the investment in OpenAI, we spent about an year or so. I think their focus area was probably whether they will be successfully making a restructuring. If it was a former structure, they may be difficult to go into market and so on. But now that they have completed all the dialogues with the concerned party and completed the recapitalization. As you see, OpenAI Group PBC, the profit benefit corporation, which will be able to access to the market. As a shareholder, OpenAI Foundation, nonprofit organization will be holding 26% and Microsoft 27%; Vision Fund or SoftBank Group, about 11%, and other employees and other investors. So this is the current ownership ratios amongst the concerned party. So the investment so far and the investment for the future that I would like to summarize once again. So April, we agreed investment commitments total $40 billion, of which $10 billion was syndicated out to the other investors, $30 billion is investment from the SoftBank Group. First closing completed back in this April, $2.5 billion co-investors syndication has also completed, and $7.5 billion has been also paid out. Second closing totaled $30 billion is paid by the end of December. Syndication has been already fully subscribed. $22.5 billion will be proceeding as scheduled by the end of December. And I also like to check the business status of OpenAI. If you look at the weekly active users, continuously growing. As of October this year, they have already exceeded 800 million users. So that is actually making an even bigger gap between other competitors who provides a similar type of service. So as a comparison, a number of the app downloads can be one good example for you to refer to. ChatGPT, 871 million times of the downloads, which is also outpaces competitors. Annual recurring revenue, which is also called as ARR. So as of September, which is the black bar, if you multiply it by 12, that's the number. And this is also making a significant increase. We believe that the subscribing numbers are increasing well. So that's going to be very positive for the financial numbers as well. ChatGPT is not the only service. Actually, as you see, they are providing several new release of the services one after another. These are also the good reference point for you to understand what kind of services OpenAI is providing. And follow-on investment, the number-wise, it's not too large. But because they have a financial round, $6.6 billion of the offering has made, of which we have also invested or participated $1.45 billion. As you see on your right-hand side, other than us, there are other very well-noted investors are participating such as Thrive, Dragoneer or T. Rowe Price. Stargate project has been announced back in January together with OpenAI and Oracle. And in September, we made a joint press release, and we have been seeing a clear path to securing full $500 billion of a 10 gigawatt commitment. We will be making a specific site structure to the project. And I think that we are coming closer to be able to introduce you each respective project. Another announcement we made about was the Crystal Intelligence. This is mainly played by SoftBank Corp., our domestic telecom company, together with OpenAI. And a few days ago, November 5, SB OAI Japan, who will be exclusively offering in Crystal Intelligence was launched. We, as a holding company, SoftBank Group and SoftBank Corp, the mobile telecom operator, is jointly investing in the company called C Holdings as a holding company. And these C Holdings and OpenAI is investing 50-50 as a joint venture, which is called as SB OAI Japan. 2026, SB OAI Japan is aiming to start launching services. And with Mr. Miyakawa's lead, who is the CEO of SoftBank Corp., AI agent development, internal tests have been conducted so that they will be able to be fully prepared as an enterprise services for the enterprise customers. Now let me dive into physical AI. This October, we agreed to acquire ABB's Robotics business in October 2025. So we would like to realize ASI and robotics fusions to pioneer humanity's future. And Marc and Morten, ABB CEO and ABB Robotics Division President, shared the time with Masa, our CEO, as you can tell from his smile. And this is a quick video to share with you. [Presentation]

[Interpreted] Towards ASI. These four elements or areas are the efforts that we are making right now. How are we going to make it happen? We believe that these are the four key pieces that we believe is important. And this time, another piece is added to realize ASI, which is ABB Robotics. ABB Robotics business that I would like to touch on. They are second largest in the industry and located in Zurich, Switzerland. And they have about 7,000 employees, which includes many engineers. Revenue, $2.2 billion. And this is a comparison to share with you the competitive landscape. Revenue is a second in the industry, and cumulative robot shipments actually also the second in the industry after FANUC. So they are having a position in very well place. So $5.3 billion, which about JPY 800 billion, which is, of course, a large investment. It was fully discussed at our Board of Directors meeting. FANUC, if we try to buy FANUC, their market cap is like JPY 5 trillion. We'll never be able to do. Of course, FANUC is a great company we understand because that's why their market cap is large. But this time, we are able to add ABB Robotics with JPY 800 billion for a family member as additional key piece, which is a great migrations for the company overall. And their strengths that they have many R&D to manufacturing, sales to service. So they do have full platform capabilities and global presence in 44 -- over 44 countries with 7,000 employees, and 500,000 robots are shipped. So manufacturing plant head office located in Sweden, U.S. and China. Physical AI's another agenda is autonomous driving. We've been investing in Wayve in U.K. They have unique characteristics of the autonomous driving technology. And actually, their world model enables autonomous driving without HD map. So not only U.K. where the head office is located, but they are developed into U.S. market as well. And in April, they also launched in Japan. It was a little bit of a struggle in the beginning, but actually, they are very steadily providing the autonomous driving in Japan right now. So another video to share with you. This is quite interesting. [Presentation]

[Interpreted] I don't really understand the technology and autonomous driving, I don't know how that can happen, how that can make it happen. But I think that not only Masa, but also interview was also on the driving. But -- and I was so afraid that if the car hit the people, but it did made us very safe drive, and I'm very much expecting the good future of this company. And the next one is the -- also on the investment portfolio on Nuro. Just announced a next-generation autonomous robotaxi program with Lucid and Uber in July this year. Lucid EV vehicle, Nuro autonomous driving system and the global ride-hailing platform, Uber, that with this framework around the second half of 2026, they are scheduling to launch in major U.S. cities and also planning to deploy worldwide over the next 6 years. So this is another interesting challenge that the autonomous driving technologies are facing and addressing. So we've been making diversified robotics investments. And with the ABB Robotics, we hope that we'll be able to pursue further of commercial opportunities and synergies. You just saw the video of autonomous driving. But other than that, we have robotics areas like distribution systems or the auto factories. And so there are several portfolio companies that we have invested so far. So with that, organically that we would like to create good synergies among those members, so that we'll be able to create another level of the value. Now well, Masa and President Trump were often covered by media. And as you know, Japan and U.S. signed in September 2025, the memorandum of understanding on strategic investments which outlined Japan's commitment to investment up to $50 billion in the U.S. Many Japanese and American companies, including SoftBank, formed up to $332 billion funding framework. As you can see, well, Masa, for some reason, always sits in the middle. And SoftBank Group is one of the members to support critical power infrastructure in the U.S. This was the photo taken when the framework agreement was signed with President Trump; Commerce Secretary, Lutnick; and Ambassador, Glass. Masa wore red tie. Let me touch upon financial strategy now. Financial policy that we communicate with you for a long time. It remains unchanged. We maintain LTV below 25% in normal times. Sorry, I keep saying again and again, 25% itself is pretty safe. But upper threshold of 35% even in times of emergency, it may happen in the future, whether 25% or higher or lower, but we want to maintain the level. Also, we want to maintain at least 2 years' worth of bond redemption in cash. It shows investment amounts. Since the beginning of 2025 in the first and second quarter, OpenAI's first half total was $8.6 billion, including $1.1 billion in second quarter. Looking at Q3, next round of investment in OpenAI is planned to be executed at $22.5 billion. And also all process should be completed by end of December to invest in Ampere. So all in all, in the third quarter, we estimate about $30.5 billion of investment, and we are ready for the funding. With completion of the estimated investment, investment in OpenAI in total would be $34.7 billion. I said that we are ready for funding, and how we do? I'm not going to go into details in numbers per deal or per transaction, but we have three pathays. Cash position, obviously, we have access to. And other than that, we can utilize assets held. NAV is net asset value. Here, we are looking at asset value of holdings, which is around JPY 40 trillion. Of that assets, 70% is listed shares. So by utilizing different tools, we can utilize assets held, for example, for margin loan or derivatives or collar transactions or forward transactions. We have a variety of options that we could utilize, and that's financing with asset-backed finance. Also, we can utilize debt market. Domestic and foreign bonds market are the markets that we can utilize to issue bonds. And not only Japanese mega banks, but other Japanese banks and foreign banks, including JPMorgan, give us a strong support always. Not only just simple loans, we could do hybrid funding with 50% traded as equity capital. So such funding can lead to strengthening capital. So we want to provide a lot of investment opportunities for investors while we can still maintain financial strength. So through those options and tools, we make sure that we are ready for funding in a very safe manner. Talking about asset monetization. We sold T-Mobile shares, for example, and we sold NVIDIA shares, which we held for a long time. And also, we sold Deutsche Telekom shares. With Arm shares, we upsized margin loan to $20 billion, and $11.5 billion remains undrawn. To summarize our financial highlights in the first half of this fiscal year is shown on the slide. Our share price recently have been going up and down dynamically. But since the beginning of the year, we grew 3.8x. We want to provide as many investment opportunity as possible. And also, we need to pay attention to TSE's guidance. We recently decided to do share split ratio 1:4. Based on closing price as of November 10, 2025, minimum investment amount would go from JPY 2.2 million to JPY 0.5 million after the share split. I think it's needed to be -- go cheaper for retail investors to utilize for their individual savings account investment. Last but not the least, our initiatives in physical AI, which is to combine brain and body. We want to figure out how much impact this could have on our daily life, and we want to really create happiness for human. And in this sector, we try to be a leader. Hopefully, at AGM this year, Masa claimed that we want to be #1 ASI platform provider after 10 years. And we hope that you get a flavor of that vast idea in my presentation. Thank you very much for your attendance. Thank you.

[Interpreted] Thank you. Now we would like to take questions. First, we would like to take questions from the floor. [Operator Instructions] We would like to take up to two questions per person so that we can take questions from as many people as possible. So now we would like to take questions from the floor. On your right, third row from the front with the jacket.

[Interpreted] Toyoshima Hironao, TV Tokyo. Goto-san mentioned regarding the dynamic movement of share price. Recently, especially including your share price, AI-related share price volatility is very wide. Therefore, stock market is questioning that where are we in terms of AI investments. So overheating in expectations for the AI business, is it just a beginning? Or is it overvalued, so that we need to be very worried? Which is the -- your stance? That's my first question. And related to that, my second question, the share price of SoftBank Group has been driving at Tokyo Stock Exchange share price largely as well. So AI portfolio companies, including OpenAI, are they appropriate? It's like a heating like a so-called AI bubble, that's also the risk for some people say. Do you feel any risk for that?

[Interpreted] Thank you for your question. So two questions, but I believe some of them are overlapping. So right now, many service and products will be developed in AI era and how you value that is very important, but also difficult question. And the market tried to obtain that in advance to the others. And sometimes that you are too much in advance, so that you try to withdraw a little bit. So that kind of movement has always happened in the history as well. For example, back in year 2000, a so-called Internet bubble. Was that really the bubble or not, was actually valued after the bubble finished. So 25 years from now, and when we look at -- look back, was that really the big volatility? Not really. So that is because based on the autonomous movements in the market, sometimes movements made in advance or sometimes it takes a little bit withdrawing. Right now, that the size of the market is larger, so that, that movement is becoming bigger as well. And as an investment company, we look at this market and our portfolio company, how do they face and materialize their AI technology or service into their value. And that's we are trying to support with the way of the investment. And I don't think I can answer whether this is bubble or not. We'll be able to tell later, but this is because of the technology just the beginning, and there are lots of movement, which is I believe is a good thing. And as a finance activity for the investment company, how do we capture the movement while protecting our financials without losing any opportunity, that will be very important for the company. Are we going too far? That's a difficult question to answer in one word, but that's the kind of a big picture I have. So do you believe that the risk is bigger if you don't invest? Is that SoftBank Group's point of view? I think it depends on the people, but our company believes in that way, yes.

[Interpreted] Next question from the floor.

[Interpreted] Mirai, Diamond. I have two questions. First, about the Stargate project. Progress of the Stargate project, could you share with us? According to the announcement as of September '24, it sounds like five sites or data center sites in the U.S. and $400 billion for the next 3 years, those are finalized. Of five sites, two, Rosetown and Texas are the centers where SoftBank and OpenAI are involved. So I wonder, should we focus on those two sites as you get involved with OpenAI? And of $400 billion for the next 3 years, how much would be borne by SoftBank Group?

[Interpreted] Thank you for your question. The announcement in September was done, and two sites, Rosetown and Texas were referred. Since then, there have been some changes. As for the Texas deal, we are on track. And the scale and the time line, once a project is finalized, we would love to share with you. The another site in Ohio, we made a slight change against the original plan in order to meet demand. So the site will be more for manufacturing equipment for AI. That's a slight change of plan. But not only those two sites, but also there are a lot of many candidate sites. And we will figure out how we will proceed with the project. And once each and every project is finalized, we can share with you how much will be borne by SoftBank Group.

[Interpreted] The next question may be related to the first question or not. When Mr. Trump came to Japan at the dinner, $550 billion of investment scheme was announced there. As you shared with us the photo, SoftBank Group made announcement that they wanted to involve up to $25 billion, especially in powered infrastructure. I wonder specifically, what kind of project you have in your mind, $25 billion that is. SoftBank Group wants to do power infrastructure for things like Stargate project. Is my understanding correct?

[Interpreted] On that, I think same as other companies that showed their interest. At the right time, we would like to communicate with you more properly. At this moment, it's early to tell you more in detail. I appreciate your understanding.

[Interpreted] Thank you. Any other questions? The middle row, third from the front, gray jacket. Gentlemen, please.

[Interpreted] My name is Miyajima from monthly magazine Facta. Congratulations on the Hawks Championship, and share price also doing great. So this fall, it's a golden autumn for you, and for the company isn't the best season. Is it right? That's my first question. And in addition to that, robot, I believe that Masa has been working for about 20 years, and Pepper didn't do well. And now you are making a bet on ABB Robotics. He is now 68 years old and how passionate he is and he tried to address robotics. And FANUC is a great company like you referred to. And I believe ABB Robotics on about 1/3. And I believe there are many efforts needs to be taken place. And with Masa's passion, he needs to work on, but I think this is going to be his revenge on the robotics. And what kind of discussions are taking place internally in terms of robotics now?

[Interpreted] So first, for me, together with the great numbers, financials this quarter, but this is very relieving autumn for me with the great results. And Masa, on the other hand, Masa is even more passionate, energetic. So we need to run along with him. As for robotics, as you just said, for Masa, robotics is something that he has a deep in mind. And that has been for his important factor. We started it with Pepper. Pepper was a very cute robot. And because we have done Pepper business, so that is why that we are able to grow our robotic segments or robotic thinking. And now with the great collaboration with ABB Robotics and how we're going to develop in the global market, I believe Masa really can't stop thinking about it. He was so excited that he cannot stop thinking about how we're going to create and draw the future. So he is 68 years old, but he doesn't look like that at all. He is still very energetic. He's passionate and energetic even that we're going to be burned from that with the heat, but we are trying to run along with him.

[Interpreted] Thank you. Any other questions on the floor?

[Interpreted] [indiscernible] from Nikkei Newspaper. First question, additional investment in OpenAI. You mentioned that there was a round in October and SBG, the portion was JPY 1.4 billion. Can you tell us when are you going to pay? And OpenAI has the biggest shareholder, Microsoft. And do you have a target equity ratio of OpenAI? How much percentage of OpenAI you want to have?

[Interpreted] October, we completed a round. The amount-wise, it was not big. So the payment was already done. About the target percentage of stake in OpenAI, well, we believe that we have the strongest expectations in OpenAI than any other company. So the higher percentage is better, I would say. But now we have 11% after the recapitalization, that's the current percentage at this moment.

[Interpreted] Second question is about NAV. JPY 3.3 trillion as of end of September. Calculating from that, NAV per share will be about JPY 23,300 or something. You announced a share split recently. So I wonder what's your view on the discount and whether it's included in a premium or not. What's your view?

[Interpreted] It's not appropriate to make an comment about stock price. So in a different way, if I may, I would say there are a lot of ingredients with which we can grow. As you can see in our history, we always have a lot of things to do, but not all of them are appreciated. Sometimes most of them were not appreciated, and that resulted in a huge discount. And trend-wise, that could continue for some time. So again, please keep watching us how we grow.

[Interpreted] Any other questions? On your left, second from the top.