SoftBank Group Corp.
Q2 2020 Earnings Call Transcript

Published: 6 Nov 2019

[Unidentified Company Representative:]

I'd like to start the SoftBank Group Corp. earnings results announcement for the 6 months period ended September 30, 2019. First of all, I would like to introduce today's participants. From left, we have Masayoshi Son, Chairman and CEO; Yoshimitsu Goto, Senior Vice President and CFO; Kazuko Kimiwada, Senior Vice President and Head of Accounting. This meeting is live broadcast over the Internet and can be heard by telephone. Thank you very much. Now I would like to invite Mr. Son, Chairman and CEO, to present to you the earnings results and business overview. Mr. Son, please.

[Masayoshi Son:]

My name is Son, Masayoshi Son. Thank you very much for joining today. So this time, earnings results announcement is not good at all. It's a big negative. And the 3 months quarter result, with this size of the negative, is probably the first time after the foundation of the business. I want you to look at this picture. We are actually in a rough sea. There are many media coverage here and there, especially in the past 2 months. "SoftBank may go bankrupt. Vision Fund are big negative. Uber is in terrible share price after the IPO. WeWork may go bankrupt. And SoftBank is actually putting further money into this company so that it can go bankrupt altogether so that all the aggressive investment activity has been failed." Such a coverage - or the headlines has been covered in the newspapers. In a sense, it may be true. That's the market view on us. So in two words

[Unidentified Company Representative:]

Now we would like to open the floor for questions. If you have any questions, please raise your hand and wait for the microphone. And please begin your question by stating your name and affiliation. We would like to take up to 2 questions per person so that we can take questions from as many people as possible. So please raise your hand if you have questions.

[A -:]

So A2 block, the second row, or the glasses, white glasses person, please.

[Unidentified Company:]

So A2 block, the second row, or the glasses, white glasses person, please.

[Representative:]

So A2 block, the second row, or the glasses, white glasses person, please.

[Unidentified Analyst:]

My name is Onishi [ph], journalist. WeWork, thank you for the very simple explanation. The very last page of the presentation, you said that all of a sudden that you jumped to the AI. So what's the AI about WeWork? Many of the people here from the market has actually question about AI in WeWork. When the market value increase surged dramatically, people think that it's tech company. But actually, this is just a real estate business, isn't it? And also, that market value is not really suitable for the real estate business. So for you, even that you can speak about it, but the market values for the real estate business is not that much, right? So that's the kind of a question I have. So as a general or real estate business in WeWork, what's the difference? What's value? What's the - is there value in it for your investment? That's two of my questions. Can you please explain?

[Masayoshi Son:]

Yes, I think you have very logical question. The explanation I made is a kind of a basic - a base case. So those speak negative WeWork, sinking WeWork, that's the - from the financial point of view, how can we turn around the business? So how can we stop the negative further? So this is the base case to do so. And once - we first need to address this base case. And once we complete in the - make a progress in base case, then we will be able to have a next stage. In this next stage, we believe there will be many businesses using AI and the community services. Such an additional value can be added on in the model we would like to introduce as a next stage. The reason that we decided to invest in WeWork, we had a quite large expectation on such utilizing of AI for WeWork, and we had a big discussion with management of WeWork in the beginning. But they, management, couldn't execute all those ideas yet. But that, we SoftBank Group and SoftBank Vision Fund, we have a lot of investment portfolio companies utilizing AI. So we would be able to utilize such know-how in the AI technologies in the coming - after 6 to 12 months, we would like to add it on to WeWork business. But we also need to test those as well. So if we go for the next stage, jump up to the next stage, result going through base case, which is to stop the negative, reducing the cost, that needs to be fully exercised first. So that's the first step that we would like to exercise and then go on to the next stage by introducing - exercising this base case initiative and stop the negative and mature the business, then we believe we are expecting to see about ¥1 billion EBITDA in coming few years. That's the actual internal plan that we have. This is just a prediction or forecast, so it's not yet built into the actual business plan for WeWork because Marcelo just assumed the position of Chairman of WeWork, and they just started a further deep-dive study. So I wasn't planning to talk about this ¥1 billion. But in 5 to 6 years' time, we hope to be able to - we're actually confident to be able to achieve such a goal without - we don't have to spend any CapEx if - once we post the new agreements, new contracts, then that we believe that we'll be able to start the ¥1 billion EBITDA. And this time, our purchase - our average purchase cost has been reduced, replaced to 1/4 with this finance package to WeWork so that we actually may not be able to make a big gain but will at least be able to collect our investment. That's something that, with the basic case, that we'll be able to achieve that. After then, next stage, we would like to add more value on top of that. So the results going through the base case, we don't believe that we can be more exciting about the additional value on top of that. So that will be the next stage.

[Unidentified Company Representative:]

Next question, please?

[Naotaka Owada:]

Owada from Nikkei Computer. When you select a potential invested target, you - I think you mentioned that you look at the founder of the business. I understand the potential growth of WeWork, but you failed judging Mr. Adam Neumann. Well, he had good sides and bad sides, to be honest. And his good sides, I think we - or I overestimated Adam's good side, which I should have known better and more. And his negative side, in many cases, I turned blind eye especially when it comes to governance. He was so energetic and passionate and very aggressive. Such nature, such quality, he was excellent, and WeWork's design - or product, I should say, WeWork's product was brilliant, and users of WeWork are happy using WeWork service and products. So Adam, as an artist, he was great. And probably, I looked his good side too much to look at his negative side, and I learned the harsh lesson from that experience. And in your presentation, IRR, global average was 13% and - but you have twice as big as IRR. But in the past, I think you mentioned over 40%. So even though you are at very top level globally, but you saw like a 20-point down.

[Masayoshi Son:]

Right. Yes. WeWork was damaged a lot. And Uber, after IPO, the stock price went down dramatically and other reasons. So before, it was over 40%, but now 20%. That's the reality. Having said that, from a global average perspective, we are twice as big in terms of IRR. So it's not that bad, don't you think? So value decreased by 50%, that's not reality. Thank you.

[Unidentified Company Representative:]

So white shirt, gentleman, please?

[Unidentified Analyst:]

My name is Hota [ph] from Nikkei Newspaper. I have two questions, please. First, in your explanation of WeWork, you mentioned that you regret or you learned the harsh lessons. But at the same time, company value - or that you maybe pay too much for the equity in the beginning or first stop the size growth, but to focus on profitability. But can you summarize what you have learned, what you have regret? And for the fund operation going forward, how can you utilize such a learning?

[Masayoshi Son:]

Yes, I have two. One, overestimated the value, that's the first lesson. And for the - to address that with this finance package, SoftBank Group purchase price has reduced down to 1/4. So that's the measure we addressed specific to WeWork issue. Second lesson is the governance. Founders, Mr. Adam Neumann, had quite a large rights and powers, for example, voting rights for 1 to 10. After IPO, that can increase to 1 to 20. That has been accepted by the Board of Directors meeting. We don't take majority seats of Board. We just have a one Board seat in WeWork. And in the Board meeting, we couldn't stop such progress. So after the investment, actually, the governance issue has been worsened, and we couldn't stop that. That's the - and also, some other - 4 out of 9 Board seats were actually held by Adam's appointments. So his personal or transaction with the company was quite excessive, which Board meeting - the Board couldn't stop. So for the governance issue, our finance package, out of 9 Board seats, 4 will be as appointed by SoftBank Group and SoftBank Vision Fund. So 4 out of 9 remaining will be independent directors. And Adam, the founder, his right will be terminated this time largely so that we believe we will be able to improve the governance aspect as well. So these two are the lessons that I learned. So for these 2 points, for the other portfolio companies, how we address that? So as a KPI to decide on investment, we need to make sure those KPIs has a due diligence. And also for the governance, for those companies we have already invested, we once again would like to share our investment guideline, and the guideline will be again checked for those existing portfolio companies. Whenever they raise the financial round and if we're to participate in such a financial round, we need to review and check once again based on - according to the investment guidelines. Of course, there is not any big mess, but there are some companies that - who does need a closer watch. So that for those new investments, along with this guideline, that we would like to negotiate for the further actions. One revision that I would like to make. The Board total number is 10 seats, of which 5 will be - so 5 out of 10 Board seats. Let me restate my earlier comment. Wasn't that 4 out of 9? No? 5 out - so in final conclusion it's 5 out of 10. So sorry, let me restate once again, it's 5 out of 10 Board seats. So that up until now, it was only 1 Board seat we have out of 9 Board members. But with this finance package we provide, we have amended many of the governance and have some rights in our side as well. So I said two lessons that I learned. But the only that's not been criticized regarding WeWork is product quality, service quality. That has not been criticized so far, I believe. Product is great actually, and that's the actual voice from the actual users. We do have WeWork Japan. Our employees of SoftBank and our affiliates are also using WeWork service. But actually, they don't want to go back to the former office anymore. That's how comfortable it is to work in WeWork office. So product itself is very good and great. And that's the only - but also the biggest thing that I believe I'm happy about for WeWork.

[Unidentified Company Representative:]

Next question? Actually, same question from the same person.

[Unidentified Analyst:]

Second question from myself. For WeWork, you paid too much. Why? You invested at very high price. Why? That's one question. But looking at your portfolio companies, are there any other companies that you spend too much? Or second WeWork, third WeWork, is there any potential WeWork?

[Masayoshi Son:]

Well, right before we made investment, other investors made a similar amount of investment. In that trend, we made a similar valuation. That's one thing. And on following rounds, we added more investment because we over-evaluated Adam. Is there any other similar concern? In fact, yes, there is. Like a dog-walking company and other portfolio companies, we may see similar problems surfacing. But at the same time, other companies would realize that we bought them, we acquired them at very value price. So all in all, we saw valuation loss by ¥0.6 trillion, but we saw increase of value by 1.8 - ¥1.4 trillion, excuse me. So we can't win all the time. There are 5,000 venture capitals globally and average IRR is 13%, like I mentioned, and we are at least over 13%. And people, they would also often say Vision Fund spent a lot, paid a lot, and they invested at very higher price, higher value. But the return is 13%, and our return is about twice as big as this. So numbers will tell you.

[Unidentified Company Representative:]

Next person, please, in white shirt? Can you keep your question to one question so that we can take more questions?

[Ryo Inoue:]

My name is Inoue from Asahi Newspaper. So for your future investment strategy for Vision Fund 1, I believe you have already invested quite much money. In your previous announcement, you mentioned about Vision Fund 2 starting sometime soon. And I believe you accelerate your investment strategy going forward. But like Saudi Arabia or some other LPs, in the media, as far as I see the newspapers, they are not optimistic about participating. But what is the current status?

[Masayoshi Son:]

Investment period for Vision Fund 1 has already completed, so scheduled amount. About - we just maintained the remaining of the 15% out of total. That's the rule. That's for the follow-on investment for the existing portfolio companies and also for the distribution for the preferred. So we have a rule to keep about the remaining 15% of total fund. And we have already - once we spend all the 85% of total fund, we close, and that happened last month actually. As a result, our Vision Fund 2, as a seat round, SoftBank Group itself with our own money, we would like to kind of start the preparation to start the investment. We have already - are starting some. And the other LPs, we have some which agreed the memorandum and also some that are having additional negotiations. And for that, we are still negotiating so that who are in which stage or which status is not something that I can discuss today. But in general, Vision Fund 2 is going to be launched as scheduled. So we will start accordingly. Mr. Oshika, give me tough question, please.

[Yasuaki Oshika:]

Oshika from Asahi Newspaper. So somebody asked you why you paid a lot, too much. Well, due diligence or pricing, what - how did you do initially? I think you tend to like people. For example, Nikesh, you spent a lot in Nikesh, and you probably love too much Adam. That's one question. And the governance for SoftBank Group, you mentioned that Goto-san gave you a hard time. But compared to the past - like in the past, someone like Akitao-san and Kasahi-san and Shima-san [ph], maybe they controlled you or they could have stopped you. So from governance perspective, in your organization, is there any check and control process in SoftBank Group to make sure that you don't go crazy?

[Masayoshi Son:]

So you should have asked me one question, but you did 2. Anyway, about loving Adam too much, again, I learned a harsh lesson, like I keep saying. Value of a company, so free cash flow is the most important KPI when we evaluate investment in a company. But in 5 years, in 7 years, free cash flow against the future business plan. So how much probability a company has to exercise or execute business plan to generate free cash flow? Vision Fund, in principle, we don't invest company at an early stage, rather, they have some track records and they have become #1 in particular space. Those unicorn companies are the ones that we tend to invest. So it's supposed to be easy to measure those companies quantitatively, not qualitatively, because they have some track records as opposed, they are still on early stage now to start up. So it should be easier for us to forecast free cash flow in some years ahead. Still, however, the management's leadership, sometimes we have no choice but to exercise our subjective view. And I think that 50% of the probability is something to do with such quality of the founder or the leadership. Still, however, in the case of WeWork, I made a mistake, and I don't make an excuse because that was a very harsh lesson. Then your next question, SoftBank Group's governance. The Board of SoftBank Group, every time we have a Board meeting, a challenging guy, Mr. Yanai, he always gives me a hard time, not only Yanai-san, but also other Board members, especially independent Board members and the internal Board members, especially on this WeWork issue, the Board members most - almost all the Board members gave me hard time. And in the end, I end up being very exhausted. That's how I am lately. So I keep saying that. We learned a lot from this experience. And turning around WeWork, we will make sure that we start from the basic to turn around the WeWork. And without Vision Fund, we won't make a big investment anymore. And we have 3 investment principles in place and no rescue - no investment for the purpose of rescue. As a public company's owner, I make a statement officially. And the partners, almost every week, they participate in investment committees and that they give us very tough questions, especially lately because of WeWork and Uber issues. And they check and make sure balance. So we have a structure in place whereby we can't go out of place, and we have investment committee in place to make sure that I can't make my preferential investment. Even though I have a very big voice physically, but structurally, I'm not allowed to make kind of a crazy investment.

[Takahiko Hyuga:]

My name is Hyuga from Bloomberg. Do you have - I would like to ask you about the responsibility in the capital market. For WeWork, last November, it's growing very well and making a good development. And this August, it's still making a good growth and you are not overestimating. Actually, the remarkable growth has maintained, and you have a high expectation. Those are the words that you used for - or to express WeWork. But at the same time, in the meantime that you have issued a lot of bonds and also SoftBank Corp., the Domestic Telecom has gone public. WeWork is negative and also making a big loss, and rescue is needed. If you have conveyed such message much earlier, then your equity - maybe the market investor that they may cancel purchasing the securities of SoftBank Group or SoftBank Corp. So when do you think - when was the point that you realized that you overestimated? And what was the trigger for that? And also, how do you think about your responsibility for capital market?

[Masayoshi Son:]

A reasonable question. For those great things about WeWork was highly evaluated. As mentioned earlier, sales were - revenue were - sales were increasing, doubling every year basis. And many clients are there and actually using WeWork office. You can tell when you go their offices, you will realize how energetic the office is with the very crowded customers. So we very much focus on those great site of WeWork. Probably we look - focused too much on those great site. But at a point that we postponed IPO - decision on postponing IPO and also the prospectus of IPO has been questioned by many investors, that was the governance issue mainly, and the management had to change - replaced. Around that timing, once that the things goes wrong, then the value damaged dramatically all of a sudden. So even that the negative was increasing, but if the sales is increasing and if negative is healthy investment for the future growth, then I think it is good because Google has been also making sales increase. But still, at the same time, we're increasing in the - loss. Right immediately before the IPO, a few years after the IPO, many of the companies are still in negative in EBIT. And WeWork, we thought, was one of those, same as like Googles or Facebooks, and we were believing in such an idea. That's why that we've been making additional investments so that we are not trying to deceive investors or anything like that. We were taking our route as we believe. And also, we've been making actions as we believe, which includes our additional investments. So there are many things that we need to learn the lesson. But I - we are very - always, we believe in our own ideas and concepts and follow on that into decisions.

[Unidentified Company Representative:]

I'm sorry, but we will take two more questions.

[Masayoshi Son:]

So I'm sure most of them are not happy, so I wouldn't mind taking more questions.

[Takahiko Hyuga:]

About listing portfolio companies - pace of listing portfolio companies, you mentioned 2, 3 companies per year. But after this WeWork case and Uber and Slack, after these experiences, do you still maintain the pace of IPO?

[Masayoshi Son:]

Companies like WeWork, Slack and Uber, looking at those companies, the timing of IPO, shouldn't we be more careful and cautious about timing of IPO? Beginning - I'm beginning to think that way. But also, there are companies in our group that started making money or about to make money soon. For those companies, they make decisions, and we will support them. That's the case. So next year and the year after that, several portfolio companies every year should go public. That's the direction that we will keep.

[Unidentified Company Representative:]

Next questions, the second row in A2 block, please.

[Unidentified Analyst:]

My name is Miyajima from Fox Star [ph]. So 700 offices of WeWork, how much of those - how many of those you have been looking? You said the product is great. But how many you have offices? Because really, you said you have to go local site, otherwise you cannot really tell. So maybe Tokyo 22 offices, you may know. And I - whenever you fail, I thought that you can record the loss, and that can be your learning. But for WeWork case, I think you may be misjudging here, and I want to hear, maybe you're a little bit away from the local site and that may be your learning lesson, isn't it?

[Masayoshi Son:]

Close to 700 offices, I myself been seeing probably 7 or 8, maybe 10 offices that I myself been there. But in principle, design model is common amongst the world. So if you go to McDonald's, if there are 30,000 outlets, do you need to really see all those? Maybe if you go 10 outlets, then you may - you can get the ideas. Likewise, 7-Elevens, they have 10,000, 20,000, do you really go everywhere? By only looking at outlets that I will finish my life, actually, so that franchising type of the such model is not really the matter of looking how many of offices I've been there, but rather we need to have a deep dive in the data. Now this is understanding the model, capture the improvements, and that's even more important from my understanding. And for that, I think I've been able to showing the good directions for the turnaround of the business. And one more thing. Whenever I'm criticized, maybe I mean withdrawing too quickly and irresponsible. That was a criticism that I've been receiving. But this time maybe, I'm going too far. So this is the opposite criticism that I'm receiving this time. But in the case of Yahoo! BB, Japan Telecom, Vodafone K.K., Sprint, those are the cases that I stepped forward. In that case, we stepped forward and actually made a great turnaround. That's my confidence as well. So that this time for WeWork, with the sinking boat, it's not something that I'm trying to put further burden in it. But actually, we are - this additional - or this financial package is not a rescue, but to kind of repricing or reducing our average purchase price to 1/4. So regardless of my age, my direction never changes. Thank you for your question.

[Unidentified Analyst:]

Hatakita [ph] from TV Tokyo. I have a question with regards to your capital market, like somebody asked you a question about Uber, share price after IPO was terrible. And the WeWork case, if WeWork listed according to the plan, most investors would suffer damage. Not only Vision Fund-related investments, but also general unicorn companies are in a similar situation. So as a SoftBank Group or SoftBank Vision Fund, investment strategy and term to recoup investment, maybe you need to revisit them.

[Masayoshi Son:]

Well, when Internet bubble took place, almost the same criticism was there. So it's like a déjà vu. Back then, we were criticized just like that. The Internet was a fake, and Internet didn't have a business model, actual business model. And Yahoo! America, for example, provided information for free and they're dependent on advertising revenue. Google was like that and Facebook was like that. And even though they listed, went public, they still lost money after IPO. But then they became as big as a listed and ranked top 10 of market cap. And in Japan, the companies that were huge in the past lost market cap now. So virtual world has become real, and the real world has become virtual, if you will. So in Japan, for example, we have been suffering from stagnation, and Japan should try more new stuff. That's I am afraid of. So the companies, Internet companies in 20 years ago, and I have confidence and vision in those Internet companies 20 years ago, and AI and portfolio companies that we have and vision and confidence in them are the same.

[Unidentified Company Representative:]

Next question, please.

[Unidentified Analyst:]

My name is Watanabe [ph], freelance. So Mr. Son, at the AGM, you have a 50-year plan as your life designed or life plan. And according to that, you complete your business in your 50s and you succeed the business in 60s. So in the past few years, you have made acquisition of Arm, establishing Vision Fund. So you are aggressively involved in the management. But for this 50-year plan, do you need some revision or amendment? What is your future plan?

[Masayoshi Son:]

So in 60s, I would like to succeed to the next generation. That's the plan that I made up in my then age of 19, and no change as of today for that. But when I become 69, I may want to do more. I may come to that feeling. That's how, in the past few months, I have been receiving many criticism over my capability on management. But actually, I'm so excited to be able to manage and do the business. I have very motivated and also like to establish Vision Fund 2 and 3 so that we can pursue AI revolutions. So I have very much motivation to pursue that in such a circumstance. But still, at the same time, when - whether I'm going to be go over 69 or not, but also, I need to raise and lead the next-generation management as well. So that's the - my mission, too. So that needs to be also addressed at the same time in parallel.

[Unidentified Analyst:]

Hugo [ph] from NHK. Investment judgment, you mentioned that your insight is criticized and you humbly admit you made a mistake and you should have known better. So the question is, you are still confident in making judgment when it comes to investment?

[Masayoshi Son:]

Like I keep saying, the success or failure, in terms of investment amount, again ¥0.6 trillion valuation loss and ¥1.8 trillion positive, which means many companies we invested in, from monetary perspective, 3, 2, 1, that's the success ratio, if you will. So question is, how much I should regret from that? Well, maybe I should regret a little bit. But should I regret too much to invest more? So again, 5,000 venture capitals are in the world, and nobody make 100% success. And IRR, on average, 13%. And even though I keep saying that we should have learned - we should have known better, we have learned a harsh lesson, but still, we have twice as big as IRR than venture capitals' average. So of course, I should - I learned a lot of lessons, but no change in our strategy. We don't see any rough sea. It's just the gentle waves in the sea. So after this earning result announcement, the frontline - front page might be Son learned from this failure or Son made a mistake or made a big failure. So again, I am - I learned a harsh lesson and I should have known better. But I don't regret it too much to be nervous or pessimistic about future investment. So again, we are twice as big as 5,000 venture capitalists in terms of IRR. Amongst this criticism, we still are twice as big as IRR. So I am very optimistic person. So against this background, we are still okay. So I am keeping confident. And as for the number of bases, offices of WeWork, as of the end of September, 600 locations in the worldwide. But now this is November today, so about - increased to 700 offices, locations. And in Japan, we have 23. I restate in my earlier comments, 22, it's 23.

[Takahiko Hyuga:]

My name is Hyuga from Bloomberg. So I have question about Vision Fund 2. You mentioned earlier that the size can be bigger than Vision Fund 1. No change for that plan? And due to this WeWork situation, is there any LPs that changed their mind? And is there any changes in negotiation with those potential LPs?

[Masayoshi Son:]

As for Vision Fund 2, due to a series of incidents in WeWork and also the Uber situation, some investors are therefore to be more careful about the decision. And at the same time, they're concerned, but at the same, no change of plan. Investors are still there as well. And there are some investor newly adding to Vision Fund 2. So all in all, Vision Fund 2 in total, I am expecting somewhere around Vision Fund 1's level. It's not final in the memorandum. It's not - it's still final until we actually sign on the official contracts. So as of today, I cannot make us affirmative answers for the size of Vision Fund 2. But roughly speaking, closely to the same equivalent level of the Vision Fund 1. And also from the earlier questions, such as Uber, Slack, Slack actually, they have increased about 5x compared to our invested amount. We are making gains from there. And there are many others, too, such as GODA and telc [ph], actually making several 100% increase, 10x Genomics as well. So there are many of those that are giving us profit. But still, market investors are becoming more careful. And in such circumstance, Vision Fund 2 are aiming to launch as we scheduled, then I believe our presence can be even bigger under such a circumstance. So that's how I'm positive about the situation. So people say - criticize that I don't really learned a lesson, but actually I am optimistic in nature. So I take in positive way. Of course, I learned lesson and I agreed to some extent as well.

[Unidentified Company Representative:]

The last question.

[Unidentified Analyst:]

Debra [ph] from Wall Street Journal. Talking about free cash flow, in 5 years, 7 years, those invested companies, I'm sure that you are checking your invested companies to make sure that they can generate cash - free cash flow in 5, 7 years. But preferred shares, Vision Fund, you have to pay every year. But can you still wait for another 5 years or 7 years? That's my question.

[Masayoshi Son:]

So SoftBank Vision Fund's cash flow, what will happen to cash flow of SoftBank Vision Fund? So some companies will go public in 5 years, in 7 years, other companies will go public next year, other companies will go public in 2 years. So which company will go public when, at what kind of value? Internally, we have analyzed those invested companies. And after IPO, gradually, we have an exit plan, internal exit plan. And all in all, plenty of cash flow should be generated. And the distribution of free cash flow or preferentially, investors of preferred shares will get first. And investors with common stock will get dividend later. That's our prediction and forecast. So we are confident that we can make distribution to those investors with that - from that free cash flow. With that confidence, many investors of SoftBank Vision Fund 1 continue to be very interested in SoftBank Vision Fund 2. I think that's how I look at them. I'm sure there are a lot of other people in this room who want to make questions, who want to ask me questions, but I'm sorry to say that, but I'd like to close this meeting now. Thank you very much for your participation.

[Unidentified Company Representative:]

Thank you very much. This concludes the SoftBank Group Corp. earnings results announcement for the 6-month period ended September 30, 2019. The video replay of this meeting will be distributed on demand from our corporate website. Thank you very much once again for joining the SoftBank Group Corp. earnings results announcement for the 6-months period ended September 30, 2019. Those who are with us over the Internet, thank you indeed for staying until the end of the meeting.