SoftBank(US:SFTBY)2023-05-12 06:45Financial Data and Key Metrics Changes - Consolidated net sales increased slightly to JPY 6.5 trillion, with investment profit and loss showing a year-on-year increase of JPY 2.6 trillion, although still negative overall [5][6][24] - Net asset value decreased from JPY 18.5 trillion to JPY 14.1 trillion, while cash position improved significantly from JPY 2.9 trillion to JPY 5.1 trillion [24][27] - Loan-to-value ratio improved from 20.4% to 11% [24] Business Line Data and Key Metrics Changes - Vision Fund segment recorded a negative JPY 4.3 trillion in investment losses, a decrease of JPY 1.7 trillion compared to the previous year [7][12] - Investment business primarily contributed by Alibaba, showing an increase of JPY 2.3 trillion compared to the previous fiscal year [7] Market Data and Key Metrics Changes - The geopolitical environment remains unstable, with no significant changes expected in the near term [3][4] - The financial system experienced instability, notably with events surrounding Silicon Valley Bank and Credit Suisse [3] Company Strategy and Development Direction - The company is transitioning from a defense mode to a more offensive strategy, particularly focusing on opportunities in the AI sector [4][31] - Emphasis on maintaining financial stability while exploring new investment opportunities, particularly in AI and technology [41][42] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns over geopolitical risks and financial instability but noted signs of improvement in the market [3][4][32] - The company aims to balance defense and offense in its investment strategy, with a focus on AI as a key growth area [31][33] Other Important Information - The Vision Fund has invested in around 500 companies, with 94% of portfolio companies being well-capitalized [18] - The company has a strong focus on monetization and has significantly reduced investment activities compared to previous years [21][22] Q&A Session Summary Question: What is the company's strategy regarding AI and generative AI? - The company is exploring opportunities in AI and generative AI, with a focus on how to leverage these technologies for business growth [49][50] Question: Will there be a bounce back in investments? - Investment activities will be selective and deliberate, depending on the attractiveness of opportunities [51][55] Question: What is the current stake in Alibaba and the status of forward contracts? - The company has effectively utilized all shares in Alibaba for forward contracts, indicating a significant reduction in holdings [57] Question: What is the company's position regarding the Credit Suisse lawsuit? - The company expressed disappointment over the lawsuit related to Greensill, emphasizing that it has no responsibility for the decisions made by Greensill [59][60] Question: How does the company view its investment in WeWork? - The company remains hopeful for WeWork's turnaround despite current struggles, holding about a 70% economic stake [69][71]