Financial Data and Key Metrics Changes - Net asset value was a little shy of JPY 30 trillion at the end of December, but has increased to approximately JPY 33.5 trillion, close to a record high level [12][15] - Cash position increased to JPY 5 trillion, supported by margin loan capacity and bond issuance [17][18] - Net income for the year-to-date reached JPY 636.2 billion, marking a year-on-year increase of JPY 1.1 trillion [12][21] - Loan-to-value ratio stands at 12.9%, indicating a safe level for the investment company [19] Business Line Data and Key Metrics Changes - Vision Fund posted a loss of JPY 339 billion, while the investment business of holding companies recorded a loss of JPY 108 billion, primarily due to a decline in Alibaba shares [22][23] - Despite losses, derivative gains from Alibaba shares offset some losses, indicating a complex financial position [24] - The performance of the Vision Fund is mixed, with some portfolio companies like Grab increasing in value, while others like Coupang faced declines [27] Market Data and Key Metrics Changes - The weaker yen contributed to a JPY 540 billion loss in net income, as the exchange rate fell from JPY 142 per dollar to JPY 158 [25] - The foreign exchange rate fluctuations had a positive impact on net asset value, increasing it by JPY 3 trillion [26] Company Strategy and Development Direction - The company is focusing on the AI revolution, with significant investments in AI chips, data centers, and robotics as part of its strategic direction [4][7] - The Stargate project aims to deploy $500 billion over four years to support AI infrastructure, with an initial $100 billion earmarked for early projects [41][42] - The partnership with OpenAI and the launch of Cristal Intelligence are key initiatives to drive AI adoption in enterprises [55][56] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of maintaining a long-term perspective on investments, despite short-term market volatility [16] - The company is committed to exploring various opportunities in the AI sector and maintaining a robust financial position to support future investments [66] - The management acknowledged the challenges in project financing but expressed confidence in their ability to navigate these challenges [114] Other Important Information - The company plans to maintain a financial policy that keeps loan-to-value below 25% and ensures sufficient cash for bond redemptions [64] - The company is exploring renewable energy options for its power needs, prioritizing them over nuclear energy [122] Q&A Session Summary Question: Can you clarify the timing and initial investment amount for the Stargate project? - The project has not fully started yet, but the first project is expected to execute within the fiscal year, with incremental investments on top of existing ones [71] Question: Is SoftBank participating in OpenAI's new funding round? - Management refrained from commenting on speculation but indicated flexibility in increasing commitments to Vision Fund as needed [75][77] Question: Who will lead the financing for the Stargate project? - SoftBank will take the lead in designing financial instruments for the project, but specific site details have not been finalized [80] Question: How will the $3 billion fee for the joint venture with OpenAI be classified? - This fee will be expensed, and the exact payment structure is still being finalized [90] Question: What is the expected equity portion for the Stargate project? - The equity portion will vary by project, but it is expected to be a minority share, with financing structured on a project-by-project basis [97][100] Question: How does the company view the potential impact of Elon Musk's unsolicited bid for OpenAI? - Management expressed surprise at the news but emphasized that their partnership with OpenAI remains unchanged [105][117] Question: What is the company's stance on nuclear energy versus renewable energy? - The company prioritizes renewable energy over nuclear power in its future plans [122]
SoftBank(SFTBY) - 2025 Q3 - Earnings Call Transcript