Thank you very much for your patience. We will now begin SoftBank Corp.'s investor briefing for the first quarter of fiscal year ending March 31st, 2027. I would like to introduce today's speakers. Senior Vice President and CFO, Osamu Akiyama. Head of Corporate Planning, Yuki. Head of FP&A Corporate Planning, Sasaki. Head of Accounting and Finance, Onoguchi. General Manager, Strategic Finance and IR, Kawamura. Today's briefing is also being streamed live over the internet. CFO Akiyama will present an overview of SoftBank Corp.'s consolidated financial results. Good evening, everyone. Thank you so much for joining us today. I would like to brief on our results. We would like to take questions from you later on. First, there are four points as summary. Revenue and profit increased, building strong momentum toward the full-year forecasts. At the beginning of fiscal year, the first quarter and the second quarter were expected to be under the target. However, as a result, first quarter, we landed in both revenue and profit increase. We are now in a position to be able to exceed our full-year forecast as well. The second is about cloud and AI. This business drove revenue growth in Enterprise. Enterprise operating income grew by 28%. The third, as CEO Miyakawa presented earlier, we actively executed a strategic growth investment under the financial disciplines. We would like to continue our strategic growth investments. The fourth, for our first time, we issued euro-denominated senior and secured notes to diversify our funding base. This slide shows the results for the first quarter of FY 2026, building a strong momentum toward full-year forecasts. We have 27.5% of operating income increase. This is by segment. The changes in segment, I would like to brief on this. As AI businesses started in the monetization phase. Until FY 2025, AI business was under other. However, this has been under Enterprise business from this fiscal year. I would like to go to the revenue. Increased in all segments and hitting a record high. Enterprise, Distribution, Financial, these three segments, reached the double-digit revenue growth. Next. Adjusted EBITDA increased in all segments, hitting a record high. Next, operating income. Steady progress toward full-year forecast in all segments. Last year, Media & EC segment experienced a one-time factor. Excluding this, we have 18.7% increase. Media & EC segment has JPY 4 billion in revenue with one-time factor. Excluding this, we have the operating income in Media & EC increased 18.7%. This excludes one-time factors. Please refer to the right bottom of chart as the forecast by segment. Next, net income. Net income increased due to increase in operating income progressing steadily toward full-year forecast, JPY 4.8 billion up at 3.3% increase. Net income increased 6.6%, excluding one-time factors. No major changes, but according to financial income and loss, there was the increase in interest expense and so on in SB. As for the business, we would like to place an importance in increasing net income in all business segments. From here, I would like to explain the results by segment. First, Enterprise business. As I touched upon earlier, AI business is now under the Enterprise business segment, so we changed sub-segment. The right side is the present Enterprise sub-segments. There are three sub-segments. The revenue of Enterprise segment. The revenue from AI computing infrastructure and the related businesses drove growth in Cloud and AI. Cloud and AI revenue is expected to grow at CAGR of 30% in FY 2026 to FY 2027. At the time of announcing our midterm business management plan, CAGR of 15% was announced. However, right now we can see that we can exceed that target, now we expect to grow at CAGR of 30%. On top of Cloud and AI, security grew and cloud services. Solutions. As for telecommunications, increased in mobile revenue driven by subscriber growth. Segment income of Enterprise segment. The segment income, we would like to explain in detail to make you understand better. I would like to explain from the left side of this chart. The graph. Telecommunications and solutions, Cloud and AI had a positive growth in revenue. Telecommunications and solutions, Cloud and AI, we separated into these two. As for the cost of telecommunications has decreased slightly. As for solutions and Cloud and AI cost, increased because of the increase in revenue and there was some impact in the cost of solutions, Cloud and AI as well. Depreciation and disposals. This is mainly due to depreciation of AI infrastructure. This was accounted in the other, and now it is under Enterprise. Other expenses. The major one is the increase due to personal expenses. Enterprise business segment is expanding now. Therefore, we are also enhancing the personnel as well. Next, Consumer segment revenue. Both service revenue, including mobile and sales of goods and others increased. Looking at the graph from the top item. First, as for sales of goods and others, the volume increased, revenue growth due to increase in unit price of mobile devices. Electricity revenue growth due to increase in trading transactions. The third one is the broadband revenue growth, mainly due to Open Fiber Japan Corp. commencing operations in June. Open Fiber Japan Corp. is a joint venture between SoftBank Corp. and Sony Network Communications Inc. This is under our consolidated, and it will be accounted under our business segment. The fourth one is mobile. Revenue increased by JPY 3 billion, driven by improvements in ARPU. Mobile revenue. We focus on increasing the revenue of mobile. Here is the Consumer segment income. Not only mobile revenue, improvement. Gross profit from sales of goods was offset, also some incentives and amortization exists. Therefore, due to the impact of that, as a total, it shows JPY- 0.9 billion. This has improved from what we had expected at the beginning of the fiscal year. Right side shows some comments for each one. The gross margin from sales of goods and others is JPY 5.5 billion increase. Electricity income increased due to improved procurement costs. Please also pay attention to the notes within the chart. Sales commissions and sales promotion expenses, this increased mainly due to amortization of capitalized sales commissions and expenses for device purchase support program. A total JPY- 0.9 billion. This is the result of Consumer segment. To here was about Enterprise and Consumer segment. From here, using three slides, I would like to talk about KPI. First, ARPU. ARPU increased by JPY 60 billion, driven by penetration of Paytoku. This is as we expected at the beginning of the fiscal year. We expect that will be increased by JPY 200 billion. Full- year, it will be JPY 160 billion, which is the same line as the beginning of the fiscal year. Smartphone cumulative subscribers and net additions. Smartphone cumulative subscribers declined year-on-year, following a shift in acquisition strategy to focus on long-term users. Churn rate reduction and acquisition cost reductions are something that we want to do to make sure that we turn around smartphone subscriber numbers. Churn, as for the first quarter, due to impact of early churn, we saw a slight increase, however, broadly flat. In fact, in June, we saw improvement compared to the same month last year. We are beginning to see the good trend. For the second quarter and third quarter, we want to accelerate such improvement. By segment, Media & EC. LY, LINE Yahoo, announced the financial result yesterday. They are progressing well, Commerce & Media both saw a growth in revenue. Excluding one-time factors, profit increased due to growth of account advertising led by Media. Steady growth toward full- year forecast. Again, we are in good shape. Now, Financial segment. PayPay announced earnings result last week. In Financial segment, they are progressing well, this segment saw huge growth, thanks to PayPay's growth. Distribution segment and other. Distribution. Distribution revenue and profit increased with steady growth in ICT products for enterprise customers. On the right-hand side, other segment. R&D and upfront investment expanded, but that includes something one-time. Going forward, such a one-time investment should not continue. In the meantime, we continue to invest in R&D so long as we believe that should contribute to future business. Whenever we see an opportunity, we want to be open to investment. Next, investment and our financial position. First, CapEx. Telecommunications CapEx are progressing in line with full- year plan, which is at the bottom of the graph. IFRS 16 impact increased due to the commencement of operations by Open Fiber Japan, which I touched upon earlier in consumer segment. This joint venture leased dark fibers. As a non-cash transaction, it was recorded, it has IFRS 16 impact. For AI-related CapEx, in the first quarter, our numbers were small. For the full- year, we want to execute as planned. We are on track in terms of AI-related capital expenditures. Free cash flow. Since we are actively invest strategically, we saw a negative cash flow compared to last year. More in detail. Operating cash flow, JPY 65 billion decrease year-on-year due to impact from the working capital. Adjusted EBITDA is shown at the top of the graph, and EBITDA show steady growth. Temporary working capital impact was reflected in operating cash flow, but again, it was one-time. Investment cash flow include investment in telecom equipment, which is in line with last year. As Miyakawa-san mentioned earlier, in the first quarter, in order to launch the neocloud business, we invested in SB Energy of $1 billion or about JPY 160 billion. We established SB Neo, and we have a new framework in place. We decided to sell the investment, and purchase price is $1.5 billion. The gain on sale should be expected in the next quarter. Net interest-bearing debt. Compared to same term last year, we saw increase by about JPY 290 million, sorry, JPY 0.2 billion. In June, there was a timing to pay dividend, so at one time, net interest, sorry, net leverage ratio increased, but we do exit investment in SB Energy, and we expect increasing free cash flow. This net leverage ratio should be improved going forward. The topics of our financial activity or financing activity. We issued US dollar-denominated notes in July 2025, and now we issued euro-denominated senior unsecured notes. Coupon rate in Japanese yen after currency swap were equivalent to domestic notes. Going forward, we want to diversify financing instruments To support our business activities. Again, we want to continue working to strengthen our financial position. This slide shows the balance sheet. Total assets increased due to financial business expansion, and shareholders' equity increased year-on-year. As of end of June last year, shareholders' equity ratio was 18%, excluding financial businesses. Last but not the least, to summarize, we recorded growth both in revenue and profit. Our growth driver, Cloud AI, delivered good results as expected, and enterprise increased in operating profit by 28%. We executed a strategic growth investment. We issued EUR-denominated foreign bonds. That's all from myself, and we'd like to start taking questions if you have. Thank you very much. We will now move on to the Q&A session. If you wish to ask a question via Zoom, please join the meeting using the instructions provided in advance and click the Raise Hand button. Once you have joined Zoom, we kindly ask that you turn off the live webcast from our website to prevent audio feedback. To give us as many participants as possible the opportunity to ask questions, each participant may ask up to two questions. I'm Tokunaga from Daiwa Securities. I have two questions. One is about the progress of the first quarter. This quarter is very strong, and you said that it could be upward, even other upward in the first half. How much is that? How is the distribution? Is it all segments or enterprise? What about LY contribution and so on? Our view, actually this is the same as what we disclosed at the beginning of the fiscal year. It'll be the improvement in the mid- tens of billion yen improvement. LY PayPay already had the earnings results presentations, and they also announced the positive results. As for the consumer business, the second-hand handset sales was stronger than we had expected. The secondhand handset are mainly sold overseas. Even though there was the impact by the war in Iran. Considering such circumstance, we were able to sell well in terms of our secondhand device handset. Our efforts in the cost improvement and the cost reduction, I mean, contributed to this positive result. Looking at the segment, basically all segments had better result than what we had expected in the beginning of the first fiscal year. Even though you said that secondhand handset sale did well, do you think it's a temporary impact? Regarding the secondhand handset sales, your understanding is correct. The price of handset will increase onwards, depending on how it goes, and we will also have to adjust ourselves how to deal with that, the price increase and other factors. There is an one-time impact of the advanced investments In our R&D, which is about JPY 10 billion or so. Thank you. The second question is about the Enterprise business. I was looking at the data sheet on page five. It shows cloud and AI is increasing in revenue. Depreciation, the first quarter decreased. That's where we are. What about the margin? Is it going to go down? The depreciation is getting lighter because some investments that you made has almost ended. What about the next fiscal years and onwards? Please make comments on the margin. As for cloud and AI, the revenue increase is due to the government-related project has started. That's one factor. The profit margin of cloud and AI, as CEO Miyakawa explained earlier, minimum 30% or even more. As for the finance perspective, we also have the same view, 30% or 40% margin is what we are targeting. Declining in depreciation. This is Sasaki. Compared to the previous fourth quarter and this first quarter, you mentioned that the depreciation got worse, but this is going to improve onwards. The government-led projects. Even without that, I think it would get better. While the government-led projects will be reflected in the second quarter onwards. In the first quarter, providing the revenue from the AI computing infrastructure is the major factor. Thank you. Any other question from the venue? Take questions on Zoom. Kikuchi-san from SMBC Nikko Securities. I have two questions. First, about sales and marketing expenses. At the previous earning announcement, increased amortization of customer acquisition cost you mentioned, and also purchasing on devices. I think each JPY 20 billion-JPY 30 billion should be increased in recorded in the first half of this year, I think you mentioned. You didn't clarify how much, but that level. Was that changed since? Also you talked about increased price of secondhand devices, which was around JPY 16 billion or JPY 15 billion or something. In the first quarter, expected numbers were recorded and the sales are from secondhand devices offset. What would happen in the second quarter? That's the first question. Sales and marketing expenses or incentive and Tokusuru Support. I think you are talking about that. Amortization of our sales incentive or marketing sales expenses. Schedule-wise, we did execute amortization as scheduled, so nothing was changed since the beginning of the year. About expenses or cost for Tokusuru Support, that reflected impact from the sales of secondhand devices. In the first quarter, better than what we expected at the beginning of the year. Going forward, about amortization of sales incentives, as I mentioned earlier, we already had a schedule, so no change is expected. For Tokusuru Support, we need to see how the global market goes in terms of secondhand device sales. Also, our competitive landscape is something that we need to keep watching on. At the moment, we have not changed any expectation in the second quarter, but we will keep watching how it goes. About the secondhand devices and sales of secondhand devices, I'm not familiar with. For my understanding, I think if you have not sold devices as much as you expected, maybe because of Forex impact, and also price of secondhand devices go up as new devices price go up. If that's the case, the sales price of secondhand devices is something equivalent to new devices. Of course, Forex should have an impact on the sales of secondhand devices, and how the market goes is something also we need to keep watching on. It's hard to predict how the market goes due to some geopolitical dynamics. We expect improvement, but again, it's too early for us to be too optimistic. If I may clarify, in May, when we announced the previous quarter's earnings, the volume of sales was very small, but it's been improving. Compared to last year, we see improvement in terms of volume of sales of secondhand devices. The next question is, SB Energy's gain on sales should be expected in the second quarter. Is my understanding correct? You invested in July, sorry, in the first quarter, and you decided to sell SB Energy in July. It's very short-term of holding. Do you still expect gain on sales, and the gain will be booked on your balance sheet? Gain on sale is expected, and we consider revising the forecast in the second quarter upwards. It's something to be considered. Whenever we have gain on sales, it should be incorporated in our consolidated financial results. Thank you. Thank you. Next, Tanaka-san from BoA Securities. Two questions. One is related to what Kikuchi-san asked earlier. As of now, JPY 160 billion, or $1.5 billion is the purchase price. I believe there will be some coordination onwards, but should we understand that there'll be a big upward? How much impact this sale would be? Initially, we invested $1 billion. Basically it will be purchased by $1.5 billion, that means that we will have the income of $0.5 billion. This purchase price, we are still assessing, and we are still under the process of assessing the purchase price to finalize. That would make difference in terms of a capital gain. The second question is about 180,000 decrease in your subscribers. I believe that you had mentioned in the previous briefing that serious switchers measurement was a bit severe. How is the impact after taking the measurement against the serious switchers? How about the churn after you have taken the measurement against the serious switchers? This net decrease in the subscribers will be improved. We don't say that there is zero impact, but basically, we were able to make our customers well understood of the price increase. I could say that there is no major impact. Thank you. Next, Masano-san from Nomura Securities. First, on page 15, consumer expenses. Compared to the first quarter last year, for acquisition, JPY 9 billion increase compared to last year. Advertisement, JPY 7.5 billion increase, total JPY 15 billion. Cost of goods and gross margin of devices grew. You talked about amortization of sales incentives and the Tokusapo provisioning increase. Compared to last year, where are they included? Compared to last year? Compared to the first quarter last year, if I want to see which is up, which is down. Amortization of Tokusapo or sales of secondhand devices and amortization of sales incentives, where were they and how much would it be? This slide shows that compared to the first quarter of last year, that's exactly what you're talking about. Of sales-related expenses, JPY- 89 billion, mostly sales incentives or customer acquisition cost. For Tokusapo support, it's included in JPY- 69 billion. I think over half of JPY 69 billion is Tokusapo-related expenses. Secondhand device prices were better. That's why the JPY 69 billion was there. You thought it'd be bigger, but it ended at JPY 69 billion. In the second quarter last year. Oh, sorry. In the second quarter compared to last year, should we expect more expenses? Second quarter, both should increase. Compared to the same term last year, while sales incentive, I think the same level as the first quarter. Tokusapo, since one-time factor was last year, maybe the variance might be bigger than the variance in the first quarter. When should we expect those will stop increasing? For sales incentives, I think they should keep increasing compared to last year until the end of this fiscal year or maybe beyond that. The Tokusapo thing should stop increasing by the end of this fiscal year. In June and July, while Mobile and SoftBank price increased, the impact was included in June as the first quarter. How much impact should we expect in the second quarter, impact from the price hike of SoftBank and LINE Mobile? For the new price plan, impact from the new price plan was not that big in the first quarter. In the second quarter and onwards, new price plans impact should be visible. In terms of ARPU, we expect +200 in the second quarter onwards. Third quarter, fourth quarter, JPY 200 billion should be expected, the ARPU-wise. We changed the price plan, including existing subscribers, ARPU would go up quickly and then flat. +JPY 200 billion in the third quarter and fourth quarter if you compare to the same term last year, yes. On page 23, IFRS impact. What's the size of Open Fiber Japan's business in terms of the customer numbers or areas? Currently, our primary market is the city centers. It depends on how long the lease term should be, and this term is relatively long. That's why the numbers on the balance sheet is rather big. Did I answer to your question? Commencement of Open Fiber Japan is an impact of IFRS 16, mainly because you make a long-term commitment, because you want a long-term lease term. If it's a dark fiber, maybe 15 years of lease contract. Yes, I think your assumption is fair. My last question is AI data center, 140 MW of Sakai or lease to Noetra. Shouldn't you expect income? You also mentioned that the 30% minimum margin. Again, 140 MW of Sakai. Do you expect 30% profit margin? Yes. We cannot disclose each and every transaction or customer. We want to contribute to the projects overall. We expect profit margin from cloud business. The selling of GPU computing, if the sales is JPY 10 billion, then the profit should be 100%, margin is 100%. GPU's profit margin is higher, but the Sakai profit margin is lower. Offset each other, you could still expect 30%-ish profit margin. Yes, in general, profit margin from a GPU delivery is much higher, whereas just the leasing data centers profit margin is lower. About neocloud in the States, why SoftBank KK has a majority stake? In the States, SBG is a bigger presence. Why SoftBank has a majority of stake? What do you think about the presence in the United States? We took a lead because we, as an operating company, want to launch a neocloud business. That's why we have a majority stake. As you know, we have been working on Beyond Japan initiative, and this was a great opportunity to go beyond Japan literally. As you rightly mentioned, in the States, our presence is still small. We don't have expertise. We don't have much assets in the States yet. SoftBank Group has an asset which we can leverage We could, again, take advantage of SoftBank Group presence, and especially assets, to expand neocloud business in the States. That's all from myself. Thank you. We would like to take questions from Zoom in English. Explaining how to use simultaneous interpretation device for those at the venue. Please wait. Gibson-san from MST Financial, please unmute and ask your question. Thank you very much for your time. It's David Gibson from MST Financial. I have two questions. The first one is, could you explain what sort of consumer buying data can be shared between the 7-Eleven Group, PayPay, and SoftBank as part of this new investment agreement and the collaboration agreement, given the privacy laws in Japan? The second question is regarding Kakaku.com and LY Corp.. LINE synergies post-acquisition took longer and were less than planned. Why will the acquisition of Kakaku.com by LY Corp, do you think, be more successful in this regard? Thank you. The first question is about the investment in the Seven & i Holdings and its business overview. CEO Miyakawa explained in the larger presentation earlier. Retail industry as a whole, including Seven & i Holdings, to enhance AI transformation and digital transformation further in Japan. We came to an agreement that we would like to also participate in that enhancement related to those transformation. Also for convenience stores, AX and AI DX are to enhance, there will be some return to us in the future. Therefore, we have decided to invest in Seven & i Holdings. Seven & i Holdings customer points and our customer points, if we can integrate, then it should be a great contribution to our consumer business segment as well. This is our expectation as well. The second question, regarding the Kakaku.com, acquired by LY. That circumstance or the status is still ongoing situation. We are not in the position to make any comments. I appreciate your understanding. Thank you. T hank you, Gibson-san. We want to take the last question before closing. [Fujihiro-sama] from Mizuho Securities, please. I have two questions. First, about R&D expenses. Miyakawa-san mentioned he wanted to deploy the team of Sarashina to Noetra. Once Noetra is up and running, the R&D expenses should be smaller than before? Well, the team developing Sarashina and expertise developing Sarashina will be involved in Noetra to work on physical AI. That's actually one of the key of that initiative. On the other hand, Sarashina is our unique model, and we want to continue developing Sarashina further. For that end, development cost of such effort should be reflected in other segment. Okay. Thank you. The second question is about the dividend outlook. You mentioned that you can expect gain on sales in the second quarter, like JPY 500 million, which should be one time gain. If you can reach JPY 600 billion of income in the quarter, how would it have an impact on dividend payout? Well, dividend and dividend policy are something that we need to discuss further internally. Gain on sale, if or when it's expected, of course, this should have a contribution to the bottom line. We have a lot of growth opportunities in general, and such gain on sale is a one-time. While we are looking at financial discipline, we will make a final decision about the dividend. Okay. Thank you very much. This concludes the Q&A session. We would like to conclude SoftBank Corp's investor briefing for the first quarter of fiscal year ending March 31st 2027. A recording of today's briefing will be available on demand on our corporate website at a later time. Thank you very much once again for taking the time to attend SoftBank Corp's investor briefing for the first quarter of fiscal year ending