SFTBY - Earnings call transcript Q1 2022

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Operator

Thank you very much for waiting, everyone.

Now we would like to start the SoftBank Group Corp. Earnings Results Announcement for the 3-month period ended June 30, 2021.

First, I would like to introduce today's participants. From left, we have Masayoshi Son, Chairman and CEO of SoftBank Group Corp.; Yoshimitsu Goto, Board Director and CFO; Kazuko Kimiwada, Senior Vice President and Head of Accounting Unit. broadcast Internet. live is announcement over the Today's

Now like to invite Mr. I would

Chairman you SoftBank overview present CEO, Group earnings Mr. Son, to business the and results and Corp. of

please? Son,

Masayoshi Son

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So a again, in with balance. sectors, have diversified we good

revolutionize Facebook, what XXX and and well in invested Google, again, the companies those Snapchat companies Internet-related -- like GDP, -- terms In in of So -- sectors. past, companies. TikTok, have Internet-related how about diversified

retail or for XX% accounts So of When global of retail. accounts media. The GDP. the for GDP. And also, advertisement first, the revolutionized to marketing, what global Internet comes X% revolutionized? it Internet it media. And revolutionized the

popularized. So -- has of been how e-commerce the retail's e-commerce global

China, So globally, U.S. globally. but Maybe e-commerce. bigger is been retail to XX% a percentage of of in XX% and retail e-commerce migrated has

replaced X% means when industries GDP, and the industries of X% But remaining that's converted style equals AI, if XX% of comes I new So may, advertisement by Internet. from XX% the revolutionized. to x those That traditional revolutionized to the it driven or be e-commerce, global will X%. XX% GDP, are of the or

revolutionized all of of and AI. services, logistics, For transportation, them example, will medicine, by be consumer lot industries, services

the GDP of global So XX% accounting industries AI. be GDP XX% the revolutionized by of -- will or for

cetera, the Like is I again, cetera. with bottom AI companies. me every That's of what invested fintech, believe, heart. share And companies. et So let in including we I et you sincerely, my said X industry from revolutionize highlight entertainment, XXX going to and earlier,

based Yanolja South the it first, travel super And Korea. The app in in industry. a is

can those of lot to you can You video. AI. you And and company's a experience a hotels, [Audio/Video go you let revolutionized you book me Presentation] things, travel, with restaurants and The can offerings. show and can

Masayoshi Son

that Yanolja. So was

Let me some add comments.

events are do information, also So using they offer travel plans. dynamic seasonality. pricing they AI to they inventory and personalized information, Also, provide

months, benefits, GMV Xx last corona most. suffered So COVID-XX last the in to months. GMV the also But XX how the Even in X it's grew number both pandemic. by years. grew. the especially recent number users constantly about grew world, this. like paying pandemic, sold, hotels the COVID-XX But And X.Xx user in travelers grew and enjoy X of of the years. travel GMV? rooms the in after Due registered it industry hit per XX Well, But COVID-XX the the despite

during could this Yanolja travel this company, growing, the restaurants. industry has excuse, user been they in been market, and U.S., also was the about suffering globally, pandemic. benefits help AI, South go them just global. has invest Maybe public South in Korea. to to we leveraging Yanolja Korean just about to despite investing company and hotels that, so And benefits providing decided might that to without we any exchange not But to in So think go in but the want

with and a million; share which purchases, The retailers, like per XX,XXX X Klarna, million. users, company XX And you is physical stores. transaction Next to number company. or I'd brands; great of day, is XXX,XXX

[Audio/Video video. And has Klarna me again, This a with let been growing fintech you share is So Presentation] fastly. company. a again,

Masayoshi Son

using be pay And issuing the cards actually, that a providing, think and onetime immediately who credit installment. will credit I generations don't card, so the have Klarna especially there many. for credit credit analyze young card they Klarna to AI, risk able a are use

you you financing. or can can buy" you course, "try your before Of can you immediately install or pay

in cannot service is once card that such is at the fintech a such repeating credit a for rate when you they AI provide card, -- Without very score credit analyzed credit. -- feature but data. able type are providing AI, a it, you customers actually. use this a to card, they immediate are this may credit a thoroughly because issuing been time. time credit the also, past of because high, AI apply So or providing Without onetime at you time, has credit activities by in get payments when third the second be so use the repeating And that time, not the return And looking the and get you real actually with increasing.

So third second credit if so increasing to consumer the actually the use the that will score frequency you come time, consistently. are cohorts time, be accumulated or of

user user, new the Xx A year before, about year. a using for XXx So XXx. or the first is

-- Klarna time in using more is Klarna those for a using doing who's So and long for shopping. that actually

to -- credit the actually it. or it, XXx or so. the get be And per up Klarna use, points so reduce to you So more you year used start debt. accumulate you bad to able the you'll score more using for Once using you credit that the shoppings

XX%. profitability. to if Klarna member increasing is you be you'll with Klarna retail if shopping more the -- value of -- you -- that result, order a better As of points are the are from the see average view, and actually, able or And

price -- payments purchase you X.Xx the whenever about they retailers, provide you if to in of Klarna you partner online shopping, Klarna, the would allow like per have customers purchase. partner with Klarna, many pay to the because So they with if

happy So the use that happy, well. as are card, shop User card onetime big credit for also is the because user they there credit so too. a immediately, can side advantage

Actually, that such the years money. close company this so to rapid money don't they for partner to is is actually, money. managing making GMV don't it's and invest our And saying they a we the past company, So coming years. are need few actually, JPY haven't wanted they need for X to anymore our a so trillion. They invest And received growth. but negotiating in on,

are with able Klarna that recently, an our agreement to we to of founder investment. finally, However, have receive the

that growth. [Audio/Video We you One I video. are like to would their with the show Presentation] excited to is to so like share company I see AutoStore. other you would

Masayoshi Son

So, in in robots so that that's robot system around a far, go X example, dimension. by can Kiva warehouse, only the Amazon, for

to only can go able go in and downs, make more and utilization. forth, actually, Therefore, not AutoStore However, you'll ups space so robots. that use back in but efficiency they X-dimensional be

vertical able only the to horizontal be not but you'll use such So also space. that fully

the dramatically. So space utilization increase will

So the increase actually, is increasing, in is that growing. because estate well. able efficiency actually, as around And as space robot this warehouse we'll is short but labor it's reduce And cost world, labor too, is so cheaper this. e-commerce But cost by well. can real be to cost than labor

still, you'll Lego the able flexibility a added stopping activity, and layout also, there. be the grid controlled So And system of lot to AI. is this is efficient. by increase analyzed has this but warehousing other like very that also spaces, you And just next which without each and to

which that the of So high a robot. is shipments, top, if with you comes frequency products have to closer the to

has So optimized. been locations products such by based such analysis on AI, of the that

while making cheaper, cost, -- already. but around the about So in increase labor invested this this clock and more providing have we faster, we a in see the are you provides you XX% and company the also that good service. accurate, growth, It's

making sometime already a have XXX and be are companies are this I future, already already -- customers, also They success. AutoStore. in so provided believe these they using profits, great near good can future, So

apparel food. of to variety to So electronics sectors, the a

XXX And companies, many about introducing those so are AutoStore. of

another of That's this you So development, new have. really goes That's it the logically, really the about system, If question may our reduce the cost? doubt a such under have. this you work? may reality. may Can kind you well, but does it's we question

has already In been However, achievements. locations, the show made. installation XX AutoStore already countries, you about XXX

used. So has this this rapid robot and And already grid is and sales been profit doubling a the warehouse making growth.

AutoStore, So a not a actually, this have XX% this about them I Fund, that profit. good in They and company here. case, Vision mentioned very by those making profit. of company recording invest exception. already are exciting is a earlier But

to is the They investment. delivery Eats, are and This food called of return from other. company, or Swiggy them quite I those made we you And Presentation] example each of is competing, Uber when India. which actually are invested scale But market something are is India. to would DoorDash our the like growth. are the one of States, the platform portfolio share, making and from they large India, a we Vision are one is In -- are good with at in about DoorDash, Swiggy. Uber also And this They the good they look United video. Swiggy. the similar again, competing and you Next X taking Fund. the and XX [Audio/Video a both XX, largest share company Zomato, competitors. delivery and invest DoorDash

Masayoshi Son

users, per orders So active million; number over million; day, XXX,XXX; and XX of partner X.X drivers, restaurants, XXX,XXX.

increase they growth. are delivering Recently, not making So rapid other food goods, a or the the but again are only they also delivery, too.

achieve or so using recommendations the are information or good the about they drivers that trying also the of efficiency AI to So delivery buy.

the providing of on the also marketing promotions. purchase users, based So they the record are that

increased the So week, recommendations has in AI, they of Revenue are in year. of year. day users. to has time, a good X.Xx orders providing of X.Xx X increased time per taking the Number by advantage day and by X

public And doing actually market recently of in these -- share companies one competitors So of X India, XX% taking great. went XX%, this share. price

and So in And billion something XXX market or in this XXX I JPY value JPY has such. billion invest billion we cap investing was investment and XX JPY recorded. to think company, Swiggy, it

return go they too. I So to believe the from if be here, will good this, see that we able again, public,

So that's our expectation.

AI Board the revolutionizing and Group the risks. myself belief. At bad times. be And bad including my and things. Fund fair There DiDi because approval went in the should started at so the After the Board I management, so in the went into in That's Vision of take of Like poor. contributed end belief Alibaba tanked, after issues even and SoftBank right like were companies management that times management it's my its got of the China ratio price when for faced willing Vision But in Alliance management right good seeing some and risk the well And I performing management in SoftBank SVFX, well. growing the and at X, next time been or Meituan, risks. some SVFX run, after Truck time. other Vision long struggling market in contributed execution, the high-tech take XX%. should and stock remains China, contributed was June, investment in the So me, high-tech with approval. was same. X included, has to the afford became companies people XX and Fund And SoftBank whether risks good and XX%, keep who now. the stock in more taking performance-wise, right we've a challenge conducting myself, time, co-investment And are we stock price those companies right years the public SoftBank Chinese are Fund to by investment. Baidu, willing was Tencent, And after couldn't revolution time those point, future, recovered, Food public. that, are -- But believe,

back. So they pulled

execution, co-investment before, postponed. was right So the program

As of stocks I down. you the went And collateral stock was bottom. price at SoftBank see, the can as that the value provided

risks co-investment again, Vision the like again, been SoftBank going not SoftBank for X. we But risks has scheme out executed in are was Fund risks, well. still to take there And China. X there myself. But Fund Vision in meantime, want So including this

meeting, latest discussed members, X. didn't for we our Vision my at without but wanted excluding we this myself, co-investment to So scheme Board about Fund Board execute, that the presence,

the Fund got program. co-investment execute X we've approval to Board this Vision So

same, XX%. percentage-wise, So

to management other So team but initially, risks and willing pulled management. last distribute Because was all work in it's time, people program didn't a time, take back, myself management execute, this myself I -- all the so other different. XX%. Why? back. -- but But pulled because then to I I by

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Operator

much. Thank you very

to Now take we'd like questions.

We'd we as many take like that take questions to as to take person per Instructions] questions so [Operator X questions floor. people the can from First, we'd to from up possible. like

people the First, in floor.

The first...

Unidentified Analyst

Fund My questions have [Yichikawa] About I name [Yomori] Vision Northstar. and about SBG's is from Newspaper. portfolio,

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Masayoshi Son

time you Vision SoftBank your getting being, capital bigger. is Northstar, and we question. for the for them Because bigger the Thank Why? for will get need smaller.

should we Fund. prioritize SoftBank So Vision

smaller. to foreseeable make for Northstar future, we start So planning are

Unidentified Analyst

Next question about Vision SoftBank Fund.

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Masayoshi Son

centers China. you. Thank China, In AI and there and where are X U.S. are technology evolving,

will technology AI when new regulations continue and so things in for believe. and We the it due and said, could want what those time. implemented? to what That revolution comes regulations will business of those regulations In what areas? on to So impacts of see stock China, models, kind kind I our have some market? activities, to wait rules, be of investment And

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Reo Otsubo

my is Sankei newspaper. from Otsubo name So

-- X China related. Chinese or So

pie also when? figure. But So in XX% latest XX%, you the exactly chart. And that said, this is

So when? So these can I you X. ask

Masayoshi Son

are to country new by past for that But XX% by the Fund for is X, total April the Fund wise, April, X years, is made X. continuously fiscal in 'XX, XX% And in June. ratios X quarter, is X Vision investing XX% Vision and a investment combining fund after China. we So this ratio. we after investment

Reo Otsubo

is Alibaba. question next My

a to Alibaba to that look get value, Alibaba wait forward? the you Alibaba is do see. government you portion impacted. mentioned and I going you measurement, like would is quite the net new of out large Chinese investment, assuming asset But how going So am still. Due that taking at Alibaba, But to

Masayoshi Son

Yes.

they rules Alibaba, believe Chinese with are business type is growing China, is of the so. the new sharing, sales paid the penalty their continuously the government I And under will For that have that in increasing complying they like antitrust or and law, run already they actually and fee. steadily. And X.Xx

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personally the will I of that Alibaba So price believe share myself recover.

Masahiro Nakagawa

Toyo Keizai. questions. from Nakagawa Two

trillion JPY about time, X stock went quarter, Fund price billion. our Other over last and XXX alone of down had China, X First, JPY Vision this gain, X Vision than & Fund recently.

you do how see? So

Masayoshi Son

they it's went In but still down cumulatively, are Coupang money. true, making

great think, Coupang, a is our And a company. So investment great success. Coupang is I in

it down in it Of That's when in numbers went included again, to price, and course, end we price, DiDi challenges the to stock as about comes talking was tough listing China. investment the from comes But it are the when true. of of March China. facing

Masahiro Nakagawa

about SoftBank question Next X. Vision is Fund

You I and of commitment, investment the faster faster. increased the the believe, piece and is

X. investors, getting plan invite don't a So I you third-party and to aggressive. have And Vision know more third-party wonder investors for I if you why are Fund more

Masayoshi Son

the revolution to will offense AI next has it grow. XX just or And AI And when beginning. so, to comes years again, or just aggressiveness, revolution Well, the continue started. it's

recently, And hearing comes well, to it I but interest third-party are aggressive. third-party from some got we a from we've running. investors, keep when ecosystem are we going great investor, capital think So to a

wait time and we the to this want see. and for continue being, So we want way, to

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idea. current that's So

Unidentified Analyst

Journal. Street Deborah name My Wall from is

are buyback. ask expectations to -- on it? like think should would buyback about So the you high expecting but I share we how buyback, the Investors of

Masayoshi Son

have share our have don't But we announced time, big such buyback. event. whenever a deposit, far, So liquidity have we this we monetization

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Unidentified Analyst

I Fund XX% China quite earlier, combining believe that related question. a China ByteDance, Fund X invested want Truck mentioned have and risk. I ask like the in portfolio. And companies X to I Vision Chinese Vision Food have you about DiDi, expectation another you have high Alliance. on such we

you such think think are many that such Or to about of names. still you because companies? you regulations, expectation review do there you invested? how you keep But you those So had do So these when expectation? need

Masayoshi Son

investment costs. companies. actually, while. But I -- comes expectation Fund our investment our my see over, to presentation, when forward, on a is have this value China And to I year, It's actually like China are going total still the after our to April, since XX%. is Vision mentioned and about we because it ratio by X, good the those we new like in X would and wait in investment investment

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Operator

floor the from Zoom. last some because from got questions we've And

question the last come from So the to I the might floor floor. back later.

Masaaki Kudo

from Nikkei. Kudo

control companies. tech on by -- government China or the First Chinese question about

of the about talked that bit of little You in are And before. of China. XX% I that holdings value value believe holdings, your

you companies. also or So have of companies how in any long? potential those initiatives. any invested on plan you and like see NAV have you wonder ByteDance, if exit unlisted I kind And But wonder, I impact those what for

Masayoshi Son

on to China, investment of I resume a China. in we we actively said investment Well, are in because earlier, more wait we receiving lot how and still or And don't things know in like again, again, want of are China. when that total, a But see now. are there there gain uncertainties as sort we

we So be will cautious for being. time the

Masaaki Kudo

you WeWork, trust third-party the is demand question But it? next issue AI et Fund going sure I'm think when or a of And X. cetera. about investor for. need industries and for do is Fund capital X Fund investors, when And lot of or if before, are for because was there you third-party Vision -- around

So what's your view?

Masayoshi Son

size, third-party X, Vision the X, Vision Vision Fund about investment trust in Fund the our -- we discussion bottom. of At So tanked Fund timing JPY X, wise, But the for X well, seeing X.X Fund trillion. SoftBank Vision gain don't and we performance X, cumulatively, any have internally. are at end

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is have to just try So we all getting return. we make keep that to hard sure to do

net Lehman suffered and Internet industry the XX shocks. years, bubble back burst Looking

and went toward revolution is they going XX That's my that keep ups And last belief, the just should there through and value AI's grew do continue industry. long Internet going be just was downs started, the But all it need believe moving and downs. So strong in belief. But that forward. my again, run, I X,XXXx, in to to AI and to I and years, by ups grow.

Zoom. So from is next question

Operator

first like take So the Zoom question Instructions]. from [Operator to we would

like we [Huga] from a question from Bloomberg. first, take So to would

Unidentified Analyst

Yes. [Huga] okay? This Can me is hear from you Bloomberg.

Masayoshi Son

go Please Yes. ahead. Yes.

Unidentified Analyst

would to about Thank the for the you presentation. you co-investment I program. like ask

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Masayoshi Son

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Unidentified Analyst

money first hearing your are you hearing In invite hearing to the to days, my X. question. are speech, I'm today, to in preparing do meantime. So But to these still Vision that earnings management own the the Fund you and third-party willing relates by you money previous

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Masayoshi Son

I I invite I past have to like think for XX -- said we money would the about because never the months that you misunderstood said third-party so. or

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venture not taking risk, taking XX% take So XX% risk, funds, even a penny, capital about the of never in return. general, in but management one to

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make So good a that is of risk risk equivalent why time, take this here. would the to return XX% we like and and

Operator

Zoom, Wada from Next from the Mr. Nikkei.

Eriko Wada

Wada per Fund investment X, Vision gets seems of in X X like that Maybe is invest faster. day. Nikkei. day. XXX, you companies X, About I'm name per companies investment My and piece from make decision, sure X It

So the policy, pace management of reason why is questions the I'd around you investment. faster. of piece to And risk the investment like ask

Masayoshi Son

in numbers. more players there companies, more or AI and Yes. are unicorn more companies, AI

actively to expertise, unicorns, need for invest AI us order in those strong in in investment team, have fact. built So we and a they

we those of pace of because reasons, increasing the So are investment.

of SoftBank was Vision size case X, the big. Fund investment per

maybe companies, SoftBank AI the of and prefer was Fund in that case would -- for we But Vision invest stage SoftBank So X. smaller Fund early Vision to have more. we X,

investment risks. per Vision than the the in X. is we diversifying deal case But SoftBank instead, are Fund smaller So

the the want keep that pace time to something is for being. we current So

Operator

question the floor. And from one last

So that gentlemen, please.

Unidentified Analyst

last And My name from due [Kota] the will newspaper. be interest question. is Mainichi of this to the time,

visual has you before this how different we the closure such why and a bit Game day a from So have we circumstance under do that holding Olympics? the earnings. yesterday, Olympics Game The of the this ended, treat, about feel and Olympics are

Masayoshi Son

a really I they that athletes, them, -- great have and it's have question. we're have respect explosive answers have I great cases, responsible. no I any a feel very feel you. to your the performance. they they seeing nothing effort -- worried for really performance. shown a believe the made. They that given us pain situation. Thank now hope us Well, I great But that have and about They increase that that We in

of of only interest good the I a sorry time, -- passionate. didn't the time am With management I that because have so

that thank So the run you And very support. for is much over your why I that scheduled time. had

will do is That best. today's our all We you. for Thank presentation.

Operator

XX, months Corp. This again. very much concludes Thank XXXX. once you the results for earnings Group X ended SoftBank you. period June Thank announcement

SoftBank (SFTBY) 11 Aug 212022 Q1 Earnings call transcript