AGM 2021

Jun 23, 2021

Slides

start. Chairperson, please start. Good morning. I am Masayoshi Son, Chairman and CEO of SoftBank Group Corp. I would like to thank you all for joining the meeting today. I will chair this meeting pursuant to the provision of Article 13 of the Articles of Incorporation. Now I will call the forty first Annual General Meeting of Shareholders of SoftBank Group Corp. Two order. We have set up a dedicated website where shareholders can exercise their voting rights or posting questions online. Audit Supervisory Board, Masato Suzaki, who is not avail able to attend for unavoidable reason, please accept his apology. Please note that all questions, motions, statement you may wish to make or exercise of both should be posted on the website, whether you participate remotely or in person. We have already start receiving your questions. And you can post your comments on the website until five minutes after QA session starts. And we would like to limit the number of question or motion to one per one shareholder. Thank you very much for your understanding. The agenda today is just as set out on Page three of convocation notice of this Annual General Meeting of Shareholders. The number of voting rights held by the shareholders participating to date constitutes the quorum. Now I will report on the reporting matter as shown on the screen. Details are set out on pages from 27 to 29 and also available on the company website. I would like to present you a summary video on the reporting matter. Thank you very much for your attention. Now I'd like to present the matters for approval. The meeting will proceed in such a way as described on the screen. If you agree with this approach, please click on clapping button. Now we are confirming the result. Thank you very much for your input. With the majority of shareholders agreed, we shall follow this approach. Proposal one is appropriation of surplus. Details are set out on Page seven of the convocation notice. Proposal two is partial amendment to the arts of incorporation. Details are set out on pages from eight to 10 of the convocation notice. Proposal three is election of nine Board Directors. Details are set out on the pages from 11 to 19 of the convocation notice. Ms. Yuko Kawamoto has resigned from the Board effective on 06/21/2021, after we sent out the convocation notice along with her Investiture for the Commissioner of General Personnel Authority. I'd like to congratulate her assumption of the position. Proposal four is election of three Audit and Supervisory Board members. Details are set out on the pages from 20 to 22 of the convocation notice. Proposal five is revision of compensation paid to Audit and Supervisory Board. Details are set out on the pages Page 24 of the convocation notice. Now I'd like to present our business strategy. So SoftBank Group. What is SoftBank Group, you may ask? Especially these past three, four years, many people ask me, what is SoftBank Group? Masayoshi Son, as an entrepreneur, I like you very much, but Masayoshi Son, as investor, I don't like you too much. That's sometimes what I hear from the people. Actually, I am not a simple or traditional investor compared to the others, as a matter of fact. But at the same time, it would take me a long time to explain all the reason why. So that's why that I tried to explain by making a shortcut saying we are just making a company transforming into investment company. But once that I don't think about whether SoftBank Group is really a simple or traditional investment company, it's a little bit difficult to explain. And I've been a bit frustrated. How should I best explain to you what is SoftBank? What is Masarya Son? So here, I have take this opportunity to explain to you what is SoftBank Group, and I would like to make some ideas for you as a definition for SoftBank Group. So I will say capital provider for the information revolution. I think this is the answer for SoftBank Group. But beyond capitalist capital provider for the information revolution, what is that, you may ask? So here on that, I would like to explain to you once again. Back in nineteenth century, industrial revolution occurred, as you know. This industrial revolution back then there are many inventors, famous inventors, did a great job. But industrial revolution did not happen only by inventors. That's how I see. Same as equally important as inventor, there were capitalists actually provided the capital to inventor. For example, in Europe, the industrial revolution occurred, but the one good example of inventor is Mr. Watt. And as a capitalist, famous capitalist Rothschild or the Rothschilds are there. Of course, there are another inventors, other capitalists there, but these two are the quite good example, good representatives for this industrial evolution. Mister Watt is quite famous, but Rothschild as capitalist may not be fully understood, may not be fully valued. That's why that I wanted to give him a little bit of light here. In Europe, industrial revolution occurred, especially he made a great investments in railway that what mister Watten others created, this great invention of railway, and the Rothschild actually provided a huge capital, taking a huge risk, and provided the invest investment here. And also oil, by taking risk, mister Rothschild provided his capital to such business. So I believe that he he we can call him as a very good example of capitalist for industrial revolution. And this inventor and capitalist actually led the industrial revolution. Along with such revolution, GDP has grown as well. Two hundred years later, in twenty first century, now we have information revolution blooming in full bloom. Same as industrial revolution, I believe that we have entrepreneurs, Amazon, Jeff Bezos of Amazon, Steve Jobs of Apple, Bill Gates of Microsoft, Google, Facebook. There are so many companies actually established by the such great entrepreneurs, which led information revolution. But at the same time, capital provider provided the money or fund to such entrepreneurs so that we were able to drive information revolution. We, SoftBank Group, would like to lead AI information revolution, which is our main focus. In AI area and in AI information revolution, we believe that we are the biggest in terms of providing capital in such area. With AI, autonomous driving, health care, finance, education, retail in a variety of these sectors are redefined through AI. Vision Fund I, II and LATAM Fund, through such investment vehicle, we have invested in about two sixty companies so far. Majority of the company are not actually making money. So such a company, we are taking risk and at the same time providing funds or investing in such company as a capital provider. So industrial revolution, manpower was replaced by machine back then at the Industrial Revolution. But the Information Revolution, actually, AI will be the one that replacing machinery. In Industrial Revolution, the main player was one of the main player was Rothschild, and I believe we like to become the key player in information revolution. So we would like to be capital provider for the information revolution. That is our new definition or new positioning, I would say, to describe SoftBank Group. So SoftBank as a capital provider. And what is the most important indicator for capital provider? Majority of the company, actually, net income see is one important indicator to measure. But we, as a capital provider, last year, we have recorded 5,000,000,000,000 yen of net income, but I don't believe this is the most important indicator for us. As I have mentioned several times in the past, net asset value, which is also very important for as an indicator for SoftBank Group. So out of the total asset we have, less debt gives you net asset value. So this we also known as NAV, this is the most important indicator for us, we believe. And as of the March, NAV, net asset value, was 26,000,000,000,000 yen I think it is about 25,000,000,000,000 yen as of today. It makes changes every day. So this number is as of the March. So looking back twenty five years, so in the past, the main player for net asset value was Yahoo back then, and then SoftBank Mobile became the main pro driver. These days, Alibaba is taking a very important role. Recently, Vision Fund is taking a good lead in business net asset value. So there were four main phases in terms of who was the driver of our business. Especially recently, I myself spend a lot of my time on Vision Fund business. Looking back, since starting phase of the Internet, SoftBank have invested in a lot of companies. In the past, we didn't have a lot of capital as a capital provider. But in the last twenty five years, every year, we recode IRR 43% on compound basis. Currently, bank provides less than 1% of interest rate on your deposit, for example, so you have a good idea how big 43% is a number in terms of return. Most traditional asset management companies may be IRR, eight percent, ten percent. So compared to those traditional asset managers, our IRR, forty three percent, is great, especially when you think about making this a number for twenty five years. So I should be proud of that, I think. Last year, up until last year, Vision Fund was criticized or given hard time. People may say that Masa is not young anymore, so Masa's insight is not as good as before. And Masa becomes too greedy or you don't have a lot of money and you don't have a lot of hair anymore. So a lot of criticism I receive. But finally, we started to seeing some recovery. And SoftBank Vision Fund for last four years, net equity IRR, 43%. So we are proud of that performance. That said, there are a lot of lessons we learned like GreenSilk, Catera and WeWork and WAG, like a dog walking application. I felt embarrassed sometimes by those hard lessons, but we begin to see great performance. Again, SoftBank is a capital provider for the information revolution. I keep saying capital provider. So what's the difference between investor and capital provider? They sound similar, but for me, there is a significant difference between investor and capital provider. So in the last forty years, I tried to explain what's the difference between a commercial person and business owner. To investor, most important thing or the biggest goal they should pursue is to make money. So make as much money as possible is the cause or purpose or goal for the investor. But for capital provider, what's the purpose or what's the goal? I mentioned Rothschild before as an example. For me, SoftBank Group, what's the gain or what's the goal, what's the purpose that SoftBank should pursue as a capital provider? What's the most important goal for us as a capital provider? For me, as a capital provider, what's the most important indicator or cause or purpose. It is to create the future. Investor, make money. Capital provider, create future. Rothschild and JPMorgan, for example, in the twenty first century and twentieth century, they built a foundation for the future. Likewise, SoftBank Group's goal is to create a future for people. That's the mission or purpose for SoftBank Group. Looking back last twenty five years, the growth has been like this. If nineteen ninety four's level was one, Manufacturing sector grew by 13x finance, 12x retail, 8x retail, retail, 8x. In 02/2008, there were so called Lehman shock, and the market tanked a lot. And you see a lot of ups and downs due to factors like interest rate or exchange rate or some monetary policy, financial policy and statistics. Every day or every year, the market changes a lot. And investors look at those indicators every day to make investment decisions. So those indicators are very important for investor. But for capital provider, what's the most important indicator? Because capital providers' purpose is to create a future. If you look at the future ten years, twenty years and thirty years, I think for investors, yes, those indicators may be very important. But for capital provider, in the long run ten, twenty, thirty year span from creating future perspective. Personally, I don't think those are the most important indicators for capital provider. So what I'm looking at is not those indicators, but the technology I'm looking at, what kind of paradigm shift those technologies may bring about. Internet, for example, in the last twenty five years, it grew by 34% in terms of CAGR. SoftBank, forty three percent in the same period. Internet sector grew by 2x CAGR, 34%. So talking about creating a future, of course, there are more risks you have to take when you want to create a future. The Internet companies that we invested in, back then, they didn't make a lot of monies. So no matter how much money we invested in or capital we provided, we were criticized not only in Japan but also in overseas. You invested in lot of money into the start ups that didn't make money at all. So from lot of people's perspective, maybe we looked like a crazy guy, but performance, actual performance was two, seven times growth. So capital invested grew by 2000x if you were to invest in each and every company in the Internet sector. So my point is capital provider has to take the risk but can enjoy lot more return. Going forward, information revolution should be driven by AI much more longer because information revolution just started. That's how I view the information revolution. So again, in the industrial revolution, investor and the capital providers shared a vision to create a future. But going forward, in the era of information revolution, group of AI entrepreneurs and SoftBank Group share a vision to create a future. In autonomous driving sector, we aim for a world with autonomous driving and no accidents. In Japan, for example, the eight people is 65 and older, I believe the onethree of our population is very aged, like 65 years and older, and it gets older and older in the future. As you grow old, you may have more traffic accidents. But with autonomous driving, those eight people don't have to drive by themselves but still can get to destination they want to go to. So autonomous driving powered by AI can bring world with no accident and also a world where AI analysis eliminates fatal diseases may be reality. Diseases, conditions like Alzheimer's, AI and genome analysis are advancing to help eliminating fatal diseases going forward. In the world, billions of children don't get quality of education. They are suffering from lack of education. But through online education, AI can bring them equal opportunity. And also, we want to aim for a world of wealth building opportunities for everyone. We want to aim for a world where everyone can focus on creative work. And with AI, we want to create a world where everyone enjoys life in their own way. SoftBank Group, is it a venture capitalist or venture capital? Well, you could say SoftBank Group is a huge venture capital. But in terms of VC, I don't feel comfortable defining SoftBank Group as venture capital. But in terms of VC, SoftBank Group is a Vision Capital. To SoftBank Group, VC stands for Vision Capital. Vision Capital to create a future of information revolution. To me, it makes sense, this definition of SoftBank Group is something that makes sense to me. Again, SoftBank Group is the vision capitalist for the information revolution. Information revolution, happiness for everyone, it's been the same vision since the start of our business. As Vision Capitals for the Information Revolution, we want to make it happen. Thank you very much for your attention. Now I would like to address questions and comments posted on the matters for reporting and approval. Please use the dedicated sites to enter your questions or comments. Now that I would like to address the questions posted. So first question. But this May, you have completed the buyback program. Do you have any plan for the further buyback in the future? So buyback, last year, we have announced in the from many investors. So it was 2,500,000,000,000.0 yen, which is the biggest size of the buyback in Japanese business history, I believe. So I believe that it was well received. Share price also went high record high for three consecutive days, I believe, back then. So buyback is always very important agenda in my mind all the time and very important option. But when and how big we do buyback does require all the balanced thinking from the variety of the aspects. So our financial status, our investment opportunity. Like I mentioned that we want to be the vision capitalist and to if there is any good opportunity out there to make an investment from Vision Fund, How many of those target companies are there? That's another aspect that we need to check. Of course, we also need to consider the return to shareholders so that buyback is very important agenda all the time. Maybe today, maybe tomorrow, maybe in three months, maybe in three years. We don't know when. But all the time, I myself, of course, is the one of the shareholder and major shareholder of SoftBank Group Corp, and I really see importance in our share price. So all the time, I believe buyback is a very important agenda in my head, in my mind. And also, amongst the management, we always discuss buyback as an important agenda. What is your view on the fact that you have no other way than share buyback to boost your stock price? You have emphasized NAV more than you should necessarily do. As a result, investors who trusted your statement end up buying the shares at too high a price. UNIDENTIFIED Thank you very much about this criticism. You can't rate share price unless buying back shares. Share buyback is, of course, one way to return to shareholders and love to buy back shares whenever possible. But is that the only way? I just gave you a presentation. Even though we don't buy back shares, our performance has been growing. And IRR, 43% every year. So for the last twenty five years, every year, we grew shareholder return 43%. So performance gets better and share prices may follow. So share buyback, is it the only way to raise share price? And isn't there another plan to do that? Wow, come on. I take my life at risk to run this business. And as a capital provider, SoftBank Group will emphasize too much and investor ends up buying shares at too high price, well, again, come on. In the long run, at the peak of the net Internet bubble, at the very highest price, a shareholder might have bought our share at the very highest price, but we want to always return to those shareholders as a pride of a business leader, return to them as much as possible. Of course, in a short term, share price go up and go down. And too much emphasis on NAV, you mentioned. So other than NAV as a capital provider, what's the better indicator to gauge SoftBank Group as a capital provider. Sales? No. Net income? Yes, but may not necessarily be the most important indicator. Most important indicator for SoftBank Group is NAV. When you buy SoftBank's shares or other company's shares, and you may borrow some money to buy shares. And as an investor, if you minus borrowing or debt from the shares that you invested in. So net asset you have from that investment, how much increase you have seen in your net asset? From accounting perspective, let's say Alibaba shares, even though those share prices go up or down, they are not reflected on SoftBank's net income. So from accounting perspective, maybe net income is not the same as substantially effective net income. But in a larger sense, as net asset go up, NAV should go up. So the value that you invested in and the value that you have currently, whether it goes up, that makes you happy if it goes down, that makes you sad. So as a capital provider, NAV is the most important indicator. As of today, SoftBank Group's stock price is about 50% discounted. But as effective potential, I believe that our potential is much bigger than the discounted share price. Of course, we have to do more effort, make more efforts to reduce the discount level. And we need to communicate well with investors and shareholders so that they recognize us fairly. But again, I hope that we'll keep watching us for long term, not short term. Share buyback, isn't it the only way to raise share price? And aren't you going to do another share buyback? If you keep concerned about that, that makes me sad. REPRESENTATIVE:] Next question is the return to shareholders is relatively small compared to the other company. Do you have any idea increasing the dividend payout ratio? Return to shareholders, I believe there are two ways. One, dividend. Yes, that's correct. Second is buyback, which I have just discussed earlier. So dividend and buyback, that explains to the total shareholders' return. So in the past ten years, several times, we have executed buyback, not only last year, but in the past ten years. Looking back, I believe we have executed buyback several times. So buyback and dividend. So adding those two, total shareholders return point of view, I believe we are quite good. That's my understanding. So dividend plus buyback, that's somehow that I want you to see our shareholders return. UNIDENTIFIED Next question, please. Your share price has exceeded 10,000 yen sometimes. Do you consider stock split? Thank you for your question. Well, stock split. Well, split itself is not necessarily returned to shareholders and nothing to do with the share price directly, but many investors make it easier find it easier to buy shares if we do a share split or stock split. Let's say, if you have to spend 77 well, big chunk of money to buy shares, it may be difficult for young people or young investors to buy our share. For that, we have done some stock split in the past, but stock price is one options we may consider going forward. So you recorded, announced the highest record of income. But since then, the market cap has decreased by 10,000,000,000,000 yen What is your mid to long term measurements for share price? Also, I want you to provide and disclose your business forecast for the mid to long term. So net income business forecast, net income forecast, I actually check SoftBank's NAV every day, calculate it, then check that. Just one day, 200,000,000,000 to 300,000,000,000 movements happen. Sometimes 500,000,000,000 yen per day, sometimes 1,000,000,000,000 yen per day that there is a movement in two, three days. So that sometimes happens. So providing the net income forecast will be misleading too much fluctuations so that it's not appropriate from my understanding. However so some shareholders asked earlier that we are emphasizing NAV too much, but still, I believe NAV is most important indicator for us. And a few days ago, we were about 25 some trillion yen and that decreased by 10,000,000,000,000 yen or so, out of which 2,500,000,000,000.0 yen which also discussed in the business video and presentation, yen 2,500,000,000,000.0 buyback has all used and retired. The shares are retired. So 2,500,000,000,000.0 yen portion market cap has decreased. So 2.5 out of 10 is due to the retirement of share after the buyback of our shares. So per share, net income or net asset value is actually per share is increasing. NAV, the peak time was 27,000,000,000,000 yen and as of the March, '20 '6 trillion yen So as of the March comparison, right now, I believe it's around 25,000,000,000,000 yen or so. So about 1,000,000,000,000 yen has declined. So NAV by 1,000,000,000,000 yen so that market cap can also come along or decrease along. Yen 10 trillion, that's too much, I believe, as a decline. So in other words, we have 50% of discounts against NAV, net asset value. For investors' point of view, that's an opportunity to buy. That's my understanding as one of the investor. So I always check my share price, of course, and it can be this can be quite a good opportunity to buy. So I want you to see in a long term period. UNIDENTIFIED Next question. As a strategic holding company, how do you post on an environment to create a synergy with the portfolios that will bring you profit. We will leverage AI for autonomous driving, education, business, fintech. Our company invests in companies that utilize AI. So naturally, those family companies, if you will, deliver synergies. Sometimes we get together for dinner or discuss the future. Those entrepreneurs of those family companies get together for discussion. That alone will give them opportunity to deliver synergies. So we want to expand that network and family companies. But we don't have control of those companies. We don't own 51%. Sometimes we are the biggest shareholder, but we don't control the businesses because we want to give them a leeway to run their businesses as their as an entrepreneur, we would give them advice. We would discuss with them for the future opportunities, but decision makers are themselves. But again, if you provide them more opportunities, I believe that they can deliver synergies naturally. Yes. Next question. So when you seek for the synergy with the, investees, and how do you manage the adverse synergy based on the fact that the Greensill and Catera bankruptcy? That's also difficult because we believe it's a good thing, so we introduce them each other. That happens here and there. But, it's just about introduction for the company, so we don't order. We don't make any order instruct or force them to do anything in between those two, for synergy. So generating positive synergy can be slowly but also creating a good atmosphere. And also or that we don't force to force them. We are not a shareholder to force those companies or the target companies to make synergy, and we don't take any majority vote. We just have one or two board seats for such investee time to time. So that's about it for our influence. Right? So in each project, I believe that there are case by cases. But in principle, we don't force those companies to do anything, which we cannot do, of course. And, for the positive or negative, we try to hope to see mild synergy effect taking some time also over time. So hopefully, that we can see some positive synergy. A shareholder has proposed a motion to amend the matter. Proposal one, dividend payout ratio should be 30%. Another motion, no dividend at all. So payout ratio should be 30%. That's one motion. Another motion is no dividend at all. Very quite opposite motions were proposed by shareholders. For those motions, we'd like to come back to this later when taking votes on the original proposal. We would address them both by taking votes on our proposal first, then on these new proposals. Well, just by accident, we have two very opposite motions proposed. And please take a moment to consider those motions. So please wait for a moment. We are confirming the result of whether you agree with this approach or not. With majority of the shareholders agreed with this approach, we shall take that approach. So again, we'd like to come back to these motions later when taking votes on the original proposal and address them both by taking votes on our proposal first and on these new proposals. And the next question is about three directors stepped down or resigned from the board. What is the did you change your mind regarding your successor? What is your vision right now for your successor? So vice Executive vice president. Executive vice president is the from the operating point of view, so our chief and Marcelo, as of today, they are very important executive vice president for our management's point of view and that they keep this job. But from the ESG's point of view, we have too many internal directors, so we should decrease internal directors. So that is why for this time, a proposal for shareholders meeting, we have more external directors compared to internal directors. Therefore, Marcelo and Rajiv is no longer director of the board, but they are the executive vice president. When it comes to successor, this is completely different discussion between the managements. Successor is rather the long term period vision and also most important agenda, one of the most important agenda for me, for the company, and I always, always think about that. So the executive vice president, the title itself does not directly relates to a successor. Of course, I don't deny the possibility that they may become successor. Always possibility is always there. But regardless of the title or regardless of executive vice president, we regardless of the ages internally, externally, portfolio companies. So I would like to see the variety of the candidates among such areas and think about the successor going forward. UNIDENTIFIED Next question. On amendment of articles of incorporation to allow for virtual only EGM. I would rather listen to Mr. Son's talk in person at general meetings of shareholders. How are you going to hold future AGMs? Aren't you going to use VR technology at general shareholders' meetings? Talking about virtual only AGM, time like this, for example, COVID-nineteen pandemic, sometimes there's no other way or you can't help holding a virtual only AGM for those emergencies. So in that sense, we may do that again, but also not only watching meetings online. They can actively participate in online meetings in terms of exercising votes or posting questions. So this function is very important for us in the future. But on the other hand, at the physical location, at the same place, sharing in the atmosphere in person, though some shareholders may want to feel real. And that I'm pleased to hear that. And in fact, I also would love to feel the vibe of shareholders in person at the same location. So we want to provide two same opportunities for people who want to come in person and for people who want to participate online. So we'd like to pursue the best way forward to make them reality. Next question, Slow motion NBO or the possibility of NBO that I would like to ask you about. I think there are many things could happen, but this is maybe I should not make any comment of this about. This is big. I I would I'd like to make no comment. Today And next question, Wirecard, green cell. I saw those names on the newspapers. Do you have any idea? I would like to hear your ideas on the governance in future going forward. Yes. Governance, as a public company, and also as a management of the public company, I believe this is very governance is very important. And we are receiving many of your money and managing our business. Therefore, governance is something I myself is always very much focused and careful about. And also, all of our Board of Directors are very keen and regard it as a very important agenda for the company. And I'd like to make sure that we have full governance in our company because we are making lots of investments like every day. And as a vision capitalist, in creating future is something that we would like to put the money in most. Therefore, we don't want to use seek for the short term gain using the financial technique here and there. That's not something that I would like to do. So I would like to make sure we have comply with all the rules and necessary process so that we'll be able to keep the good governance. Aren't you going bring back the preferential treatment for SoftBank KK shareholders and Yahoo! Shareholders? Like those program for them? And is there any reason why you can't? So SoftBank, Z Holdings, they are independent listed companies even though they are in our group. So those kind of treatments or programs should be decided by those management of those companies. I not in a position to make a comment as the leader of a parent company. And next question. Sales of BAM wasn't that too cheap? Share of Nvidia wouldn't should be able to make a negotiation to be able to get the 20% to 30% of ownership stake in Nvidia. And what is your outlook for the regulatory approval for this transaction? Yes. Value of ARM, I believe this is very important company considering creating a future point of view and very valuable company as well. Hopefully, if it was doable, from the beginning, I didn't want to let go. But at the same time, last March, as we see the start of pandemic, we have programmed a variety of project for 4,500,000,000,000.0 yen monetization program, of which transaction was studied there. Of course, I have some feeling that we don't want to completely let go. So rather, all the cash transaction that we sell, but rather twothree of the consideration will be exchanged with the share of NVIDIA. The money we have spent to acquire Arm, thirty two billion or 3,200,000,000,000.0 yen Back then, I forgot the foreign exchange ratio back then, but it was about 3,000,000,000,000 yen And now that it is 4,000,000,000,000 yen or 40,000,000,000 sales this time, and two thirds will be exchanged with NVIDIA share. And this share back then was $485 per share, if I recall correctly. And right now, this is 700 some dollars per share. So it's about 1.6 times of the share price right now, 1.55 or 1.6 times also. So from that sense, exceeding 5,000,000,000,000 yen coming or even closer to 6,000,000,000,000 yen that we have sold. So compared to what we spend, actually, they're almost double or the value or double the amount. Many people actually told me that we spend too much when we acquire Arm, and there are many people writing about that as well. Even 300,000,000,000 people that are not gonna buy or or but I believe there are still a very strong believer for the value of ARM. So if we could own 28%, thirty % of the NVIDIA, that's great, but we always have a counterpart for the negotiation is so that the transaction term is that's already been agreed. And for the outlook for the regulatory approval, I myself believe, we can go through this, so that the transaction between, ARM and NVIDIA, they don't have a direct overlapping business. So there are no direct competition so that the anti monopoly law related, matter does not really, being discussed for this transaction. Therefore, that each respective regulatory approval, I personally believe that this is going to be given as scheduled. From my understanding that this project is going on as scheduled. UNIDENTIFIED Next question. What's your honest reason why you wanted to appoint Ms. Erikawa? What do you mean by honest reason? That's funny. Well, honestly speaking, Erikka san is a great entrepreneur and great businessperson. In the industry, She has run the business for a long time with excellent insights. And of Board Directors of SoftBank, majority of them were male, and a lot of shareholders and stakeholders suggest we should have more female directors. And as you know, Kawamoto san was one of our directors, a female director, and she resigned because of her investiture for the Commissioner of the National Personnel Authority. Now we would like to welcome Erik Callahan as a female director. Regardless of gender, Eric Allison is as a business person. She's great, excellent. Well, in the past, I didn't know that. And Eric Carsten has been a long term shareholder of SoftBank. So she knows our company very well. And the gaming industry, Since the start of the industry, she has run the business and has been growing her business. So I respect her. I admire her. So that's why I asked her to join our Board. And she kindly accepted. So that's my honest reason why I selected Ms. Eriko san. Next question. External directors making a dual position in various companies, is there any issue on that? I don't believe so. I don't think that there is an issue that our external great external directors taking position in many other companies. So great board directors, great management. Even wearing several hats, looking at The US and European countries, even that you were have concurrent positions in many companies, that's also good from the sense that they can learn the other sectors' businesses, other companies' business as well. And we can also make have a very great lesson learned from those external directors. So rather than not only knowing one company, I believe that's even more beneficial. About governance, it's unclear what kind of governance structure you have. How many directors can feel comfortable saying no to you? And would you explain to us the governance structure, including compensation scheme? When new independent directors or observers often say that from outside, SoftBank looks like Masa's autocrat rule was there. But as participate in real discussion with real management and Board members, There was a heated discussion with some criticism, and I sometimes push back the challenges. And that healthy constructive discussion is good. So I would say that our discussion at the Board level is very active, very productive and constructive. As a result of the discussion, sometimes I will change my proposal or I might take back my proposal. But sometimes I will push back or try to convince them to buy in my belief. And talking about compensation, we have nomination and remuneration committee. They gather together and have a discussion. So we believe that we have a proper process in place to make governance work. In the interest of time, we will address two more questions. So this you I don't see the Enai san's name on the candidate for the board director. Why he left? I would like to know the reason why. Yes. Miss Ayanae, I'm so thankful to him since that we launched Yahoo! BB. And every year, we are making a loss of 100,000,000,000 yen or so. It was the most difficult time, suffering time for us, and he supported us. Also, he made lots of great feedback, great advice. Sometimes it's really difficult to accept or hear. Whenever I make a proposal, first, he say no. Son san, you shouldn't do that. That's something that he his first remark. So that's the starting point. We made the discussion here and there and come to the conclusion. So there are lots of discussion we made. So and sometimes, based on his advice that we modified or amend our proposal. So I deeply, deeply appreciate his contribution to the company. And he is no longer the board objector for Sonsean Group. I really miss him. And I, time to time, recall all the discussion we had. I deeply respect and admire him. But what he told me was that, Son san, I have spent about twenty years in your board. I'm quite busy person as well so that I would like to retire or step down from the board. He has his own great company. He would like to focus on his own company, fast retailing. I'm not sure that was the real reason. Maybe as an entrepreneur, I like you as an entrepreneur, but I don't like you as an investor. That's what he told me before. So that could be the reason why he stepped down. I don't know. But what he told me over twenty years, we had quite a long time service so that he would like to focus on his own business. I think the most reason, probably, he wanted to focus on his own management in his business. That's true. And he didn't like me much as an investor rather than as an entrepreneur. So both are the reason, I believe. So I like I mentioned earlier, in the past four years three, four years, because the explanation could be long, so that is why I just make it short and say SoftBank became or transformed into an investment company. So I tried to make it simple, but for today, I think that it was a good opportunity to explain. It's not a simple investor, but actually, we are the vision capitalist to create the future. That's what I wanted to communicate, what I wanted to explain to you today. And next time, when I have chance to speak to Innai san, I would again like to share this passion and also report and update him. And I also like to play golf with him as well sometime when we have chance. Thank you. UNIDENTIFIED The next question. Well, this is the one last question, if I may. You said that you would take pass the button to a successor when you are in the 60s. Do you still have the same view? I said that at the age of 19 years old when I talked about fifty years' plan as a business person. I talked about five stages of my life in teens, 20s, 30s, 40s, 50s, 60s. And I said that I'd like to pass over my business to a successor at the age of 60 or in the 60s. Well, recently, I started saying as sort of protection because of an advanced medical technology, I am fully energized and SoftBank Group as a capital provider. Well, if you look at Mr. Buffett, for example, he is very old, 60s, 70s, 80s. He is really a very active businessman. And so I begin to feel that even after my 60s, I might still on top of my business. So recently, I started thinking about that. And maybe even after the age of 69, I might be CEO. Currently, I am Chairman and CEO. And maybe CEE position might be passed over to somebody else. But as a Chairman, maybe I might be still involved in business. So how best I pass button to a successor? I always think about that. But sometime until I get to age 69, I hope to find successor candidate and start hand over to him or her. Currently, I focus on Vision Fund. And as important as Vision Fund is succession plan, so I want to take it very seriously. By the way, for the five stages of my life, most difficult and most important stage is the stage when handover will take place in my 60s. I said that when I was 19 years old. Raising capital, growing business, establish a business model and finally, hand over to successor. So that final stage will be the most difficult stage. I said that when right after I started my own business at the age of 19. So again, I want to make SoftBank Group as prosperous as long as three hundred years. So as a founder and the leader of SoftBank, I want to make sure that I build a foundation for the SoftBank so that they will survive and prosper for next three hundred years. UNIDENTIFIED Thank you. So we would like to end the Q and A session and move on to taking votes or matters for approval. To exercise your vote, please select approve, disapprove for all the proposals on the dedicated website and then click exercise button. Now I hope you finish your exercising vote. And now I will take a vote on proposal. One, appropriation of surplus or dividend payment proposal two, partial amendment to the articles of incorporation Proposal three, election of nine board directors. Proposal four, election of three audit and supervisory board members. Proposal five, revision of compensation paid to Audit and Supervisory Board. All those in favor, please select Approve. After your selection of approve, disapprove, please click Exercise button. Please wait for a moment. We thank you very much for your patience. I would like to report the confirmed result. We are confirming the results, so please wait for a moment. Thank you. Hi. Thank you for your patience. I will report the confirmed result. Proposal two have received two thirds of affirmative votes. Proposal one, three, four, and five have received a majority of affirmative votes. And all the proposal have been approved in the form proposed. And for the proposal one, there was a proposed motion to the proposed. And with this approval, majority of the shareholders agreed and approved. The motion has been rejected. And this concludes today's agenda, and I hereby declare the forty first Annual General Meeting of Shareholders of SoftBank Group Corp closed. Please let us introduce you. Newly elected board members are shown on the screen. So Erikka san face is also shown here, which was referred to the question earlier. And Kawabe san, mister Kawabe, is the CEO of Z Holdings. Ken Siegel is the legal counsel at the legal firm. And also, last but not least, the chairman of office of Ron Fischer, Simon Siegels, Masato Suzuki Hideka's Kubokawa has expired the conclusion of this meeting. Taking this opportunity, I would like to extend my sincere appreciation to their greatest contributions to SoftBank Group Corp. You indeed for your contribution from bottom of my heart. Thank you very much once again for joining us at Annual General Meeting of Shareholders today.