SoftBank(US:SFTBY)2021-02-08 15:35Financial Data and Key Metrics Changes - The company achieved a net income of JPY 3 trillion for the nine-month period, which is a significant increase compared to previous periods, but the CEO expressed that this level is not satisfactory yet [10][11] - The net asset value (NAV) increased by JPY 1.2 trillion, reaching JPY 22.9 trillion, indicating a strong financial position [12] - The loan-to-value ratio was reported at 15%, which is considered a healthy status for the company [16] Business Line Data and Key Metrics Changes - Vision Fund 1 has invested in 92 companies, while Vision Fund 2 has invested in 39 companies, totaling 131 companies [31] - The Vision Fund has seen a significant turnaround, with gains of JPY 2.7 trillion reported for the fourth quarter, compared to a loss of JPY 929 billion in the previous year [33] Market Data and Key Metrics Changes - The company noted concerns regarding Alibaba and Ant Group, but highlighted that Alibaba reported a 50% increase in net income, indicating stable operations [13] - The market environment is described as challenging due to the pandemic, but the company remains optimistic about future growth opportunities [3][4] Company Strategy and Development Direction - The company is focusing on the AI revolution and aims to produce "golden eggs" through its investments, emphasizing a proactive approach rather than a passive investment strategy [67][68] - The CEO mentioned a "turbocharger strategy" to enhance the growth of portfolio companies, indicating a commitment to active management and support [68][70] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the long-term growth potential of AI companies, viewing short-term market fluctuations as opportunities rather than threats [92] - The CEO communicated a positive outlook for the future of internet companies in China, suggesting that regulatory changes could lead to healthier business practices [96] Other Important Information - The company has monetized JPY 4.5 trillion of its assets to strengthen its financial position during the pandemic [5] - The CEO emphasized the importance of creating dedicated teams for specific industries to improve investment outcomes [86] Q&A Session Summary Question: Status of SB Northstar and Vision Fund 2 improvements - The CEO confirmed that SB Northstar is still in the testing phase but has turned positive as of February, and improvements in Vision Fund 2 are ongoing with a focus on creating dedicated teams for better analysis [82][85][86] Question: Strategy during market downturns - The CEO stated that the company is not concerned with short-term market fluctuations and aims to contribute to industrial evolution, viewing downturns as opportunities [90][92] Question: Alibaba's value and communication with Jack Ma - The CEO discussed the importance of regulations in China for internet companies and shared that communication with Jack Ma has been more personal, focusing on hobbies rather than business [93][96][97]