Operator: Thank you very much for your patience. We will now begin SoftBank Corporation's financial results briefing for the first quarter of fiscal year ending March 31, 2027. First, let me introduce today's speakers. President and CEO Miyakawa; Senior Vice President and CFO, Head Finance Unit, Akiyama. Today's briefing is also being streamed live over the Internet. I would now like to invite President and CEO, Miyakawa, to present an overview of SoftBank Corp.'s consolidated financial results and business performance.

Junichi Miyakawa: Thank you very much for joining. Before I begin, I would like to express my heartfelt sympathies to everyone affected by the Kumamoto earthquake. We sincerely hope that those impacted will be able to return to their normal lives as soon as possible, and we are committed to providing whatever support we can. Today marks our first earnings presentation under our new midterm management plan. Today, myself and Akiyama, [ new pair ] will be presenting. I would like to show you how SoftBank is steadily evolving from a telecommunications company into a provider of next-generation social infrastructure. Now let me begin with our consolidated results for the first quarter of FY 2026. Revenue reached JPY 1,814.7 billion, representing 9% year-on-year growth. Looking at revenue by segment. All business segments -- business segments achieved revenue growth. In particular, the Enterprise, Distribution and Financial businesses all delivered double-digit revenue growth. Now operating income came to JPY 302.3 billion, up 4% year-on-year. Progress towards our full year forecast reached 27%. Last year's first quarter included a onetime remeasurement gain related to LINE Bank Taiwan I mentioned that achieving profit growth in the first quarter might be challenging when we announced our medium-term management plan in May. However, our company-wide cost improvement initiatives proved highly effective enabling us to overcome that onetime impact and still deliver year-on-year profit growth. The second quarter will also face a difficult comparison as last year's results included another remeasurement gain of more than JPY 40 billion, even so we determined to overcome that hurdle. Turning to operating income by segment, Enterprise, Distribution and Financial businesses, all 3 achieved profit growth. As for the consumer business, we had a expected a more challenging first half due to the amortization of customer acquisition costs incurred in prior periods. However, the actual performance has been significantly better than our initial expectations. Net income totaled JPY 150.1 billion, representing 3% year-on-year growth. Progress toward full year forecast reached 27%. So as you can see, all progressing steadily against our full year targets. The progress by business segment is shown on this slide. And overall, we are encouraged by the steady progress across the portfolio. Now I would like to begin with our Enterprise business. Revenue reached JPY 260.4 billion representing 11% year-on-year growth. Within the enterprise business, the cloud and AI segment, which we highlighted in our midterm management plan delivered particularly strong performance with revenue increasing 31% year-on-year, AI computing infrastructure and related services drove this growth. We expect this business to continue growing at an annual rate of approximately 30% through FY 2027, over the past years, we have made significant investments in AI, beginning this fiscal year, we are entering the monetization phase of those investments. Operating income for the first quarter reached JPY 62.2 billion with 28% year-on-year growth. On July 14, we officially launched Patching as a Service or PaaS. As I explained at SoftBank World last month, this service provides end-to-end support from vulnerability assessment through remediation patch deployment. Some parts of the process still require manual intervention today. However, we are continuing the development towards full automation. We have also completed the establishment of our service delivery framework. Together with SB OAI Japan, we have built a team of approximately 1,000 professionals, leveraging the expertise gained from our own deployments, we plan to provide these services to approximately 3,000 enterprise customers. Next, let me move on to the Consumer business. Revenue reached JPY 749.7 billion, representing 4% year-on-year growth. Mobile service revenue increased by JPY 3 billion compared with the same period last year. Operating income totaled JPY 152.9 billion, down 1% year-on-year. Progress toward our full year forecast, however, reached 27% and overall performance remains on track to achieve year-on-year operating income growth for the full fiscal year. Entering this fiscal year, we expect the first half to be particularly challenging because of the continued amortization of customer acquisition costs incurred in prior periods. However, we have made a solid start with performance exceeding our initial expectations. This slide shows the year-on-year change in mobile ARPU. ARPU has already increased by approximately JPY 60 in the first quarter. From the second quarter onwards, we expect the increase to reach approximately JPY 200. While our cost base continues to rise, we will continue strengthening our network and enhancing our services while appropriately reflecting changes in our cost structure. Next, let me turn to Media & EC business. Revenue reached JPY 446.8 billion, representing 10% year-on-year growth. The Media business also achieved a 3% revenue growth. Operating income totaled JPY 66.7 billion. Excluding last year's onetime factor, operating income increased 19% year-on-year. Next, let me move on to the Financial business. Revenue reached JPY 115.9 billion, representing 27% year-on-year growth. Growth continued to be driven primarily by PayPay. Operating income reached JPY 31.8 billion, 76% year-on-year growth. On June 4, PayPay announced its acquisition of T&D Financial Life Insurance Company, making it a subsidiary. Currently, T&D Holdings owns 100% of the company. Upon completion of the transaction, PayPay will acquire approximately 70% of the shares and the company will become a consolidated subsidiary of PayPay. With this acquisition, PayPay will further strengthen its insurance business in addition to its existing banking and securities businesses. Another important Financial businesses. I would like to touch upon SP.LINKS. So yesterday, SB Payment Service announced the acquisition of SP.LINKS Inc., formerly Sony Payment Service, which is one of the key companies within our Financial businesses. Currently, Blackstone owns 80% of the holding company, while Sony Bank owns the remaining 20% SB Payment Service will invest approximately JPY 72.7 billion to acquire the holding company, making SP.LINKS a wholly owned subsidiary. The first objective is to expand online payment transaction volume. Following the acquisition, the combined online payment transaction volume of SB Payment Service and SP.LINKS will reach approximately JPY 13 trillion, placing us among Japan's largest online payment service providers. SB Payment Service has continued to grow steadily over the past 5 years. By combining the strengths of both companies, we are now within reach of becoming the #1 provider in online payment transaction volume. If we include PayPay's payment transaction volume, the combined total reaches approximately JPY 34 trillion. PayPay has also continued expanding rapidly, particularly in e-commerce. Together, these businesses are creating the foundation of what we believe is the ideal Financial business for SoftBank. The second objective is to strengthen our payment capabilities. That is credit card payment network. The network is connected to 16 major credit card companies in Japan. In Japan, JCN and NTT DATA and SP.LINKS, only 3 companies provide this capability externally. We believe this acquisition significantly strengthens our competitiveness and creates an important platform for future growth. Looking ahead, we expect synergies from 3 areas: first, economies of scale through integration; second, the reduction of overlapping cost; third, ability to offer a full lineup of payment services. Over the medium to long term, we expect annual synergies of approximately JPY 10 billion. We believe this is an outstanding strategic investment. Next, let me explain our capital and business alliance with Seven & i Holdings, which we announced on July 31. Under this alliance, SoftBank, PayPay and Sumitomo Mitsui Card will each invest JPY 100 billion. For a total investment of JPY 300 billion, these funds will support AI transformation and digital transformation investments aimed at realizing next-generation lifestyle infrastructure. Our role is to help Seven & i transform its convenience stores into next-generation social infrastructure through advanced technologies. Convenience stores play an essential role in people's daily lives. The industry is facing significant challenges. In order to address these challenges, providing advanced technologies powered by AI. Together, what we are aiming at, we prepared a video. Please note that the concepts present in the video are still under discussion. We will continue working closely with all stakeholders to turn this vision into reality. [Presentation]

Junichi Miyakawa: As shown in the video, humanoid -- AI-powered humanoid robots and intelligent devices will support back-of-house operations, allowing employees to focus on tasks where human interaction creates the greatest value. Japan is a country frequently affected by natural disasters, most recently earthquake in Kumamoto. Convenience stores play an essential role as community lifelines during emergencies. Through the deployment of large-scale battery systems and AI energy management systems, we aim to optimize energy usage during normal operations while also helping ensure stable power supplies during disasters. In addition, we intend to build next-generation supply chains, improving logistics efficiency. As for the next supply chains, leveraging AI and data, we would like to become a business partner to ensure a stable supply of products. Today, 7-Eleven operates approximately 22,000 stores in Japan and 87,000 stores worldwide. Together with Seven & i, we hope to take this next-generation convenience store model developed in Japan and expand it around the world. Now let me talk about our Beyond Japan initiative. On July 2, we announced the establishment of SB Neo, a new operating company that will drive the expansion of our neocloud business in the United States. SB Neo is a consolidated subsidiary in which SoftBank Corp. holds a 51% stake by leveraging the expertise we have developed in GPU cloud services and AI data centers, SB Neo will lead the deployment of AI infrastructure in the U.S. market. Using Infrinia OS, we will provide AI cloud services to the U.S. enterprises. Beginning in FY '27, we plan to roll out the business in phases, expanding capacity in line with customer demand. This is expected business model. Let me explain. First, SB Neo will establish a special purpose company in phases based on demand. The SPC will raise funds through non-recourse financing. The infrastructure will then utilize 10 gigawatts of power generation capacity developed by SB Energy. Leveraging this energy infrastructure, we will provide AI cloud services to hyperscalers, a key differentiator of our business models Infrinia. Unlike conventional GPU cloud services, where computing resources are typically dedicated to a single customer, Infrinia enables GPU resources to be shared efficiently across multiple offtakers. Initially, we thought about this scheme to enter into the U.S. market. Therefore, we invested $1 billion in SB Energy in the first quarter. As we finalize the business model for SB Neo, our collaboration framework with SB Energy also became clear. With each company's role clearly defined within a new framework, the strategic need for SoftBank to maintain direct equity investment became less significant. As a result, we decided to sell our stake. The sale agreement was signed on July 10. Since this transaction occurred after the end of the first quarter, it is disclosed as a subsequent event in our financial statement. The expected purchase price is approximately $1.5 billion, and we, therefore, expect to record a gain on the sale. Looking ahead to our second quarter earnings announcement, we will carefully assess whether an upward revision to our full year earnings forecast is appropriate, taking into account both the gain on the sale and the stronger-than-expected performance of the underlying business. Let me briefly comment on adjusted free cash flow. Adjusted free cash flow for the first quarter was negative JPY 128.5 billion, mainly due to investment in SB Energy. However, like I said, we expect gain on sales in the second quarter. This slide summarizes the capital allocation framework presented in our midterm management plan. While we continue making disciplined investments in further growth, including investments such as SP.LINKS and our strategic alliance with Seven & i Holdings. We will also continue actively recycling capital through asset sales where appropriate. By maintaining disciplined capital allocation, we will continue balancing growth investment, financial discipline and shareholder returns. Finally, let me summarize today's presentation. We achieved both revenue and earnings growth in the first quarter with revenue increasing across all business segments. Our cloud and AI business continued to drive growth, contributing to 28% year-on-year operating income growth in the Enterprise business. Today, we also presented our growth outlook for the cloud and AI business through FY '27. I discussed the acquisition of SP.LINKS by SB Payment Service as well as our strategic capital and business alliance with Seven & i Holdings. Finally, I introduced our Beyond Japan strategy, including the launch of SB Neo and our plans to expand neocloud business into the United States. As I mentioned at the beginning of today's presentation, SoftBank is steadily evolving beyond the traditional role of a telecommunications company. We are becoming a provider of next-generation social infrastructure, one that supports AI era and contributes to social through -- technology. Thank you very much.

Operator: [Operator Instructions] When called upon, please begin by stating your company name and your name. Please raise your hand.

Unknown Analyst: I'm [ Yagi ] from [ Nihon Keizai Newspaper ]. First, regarding the investment in Seven & i Holdings. So since when you had considered about this investment and from who approached about this? And also about SP.LINKS specific synergy effect, if you have any specific target, please let us know.

Junichi Miyakawa: Well, since when and from who I would like to refrain from answering to that specific question. But more than 1 year ago, we had different kinds of discussions around that. So it's not a short-term discussion regarding the synergy effect. From the SBKK perspective, we invest JPY 100 billion. And PayPay and Mitsui Sumitomo altogether, 3 of us invest JPY 300 billion. So this is for a future convenience stores. And enhancing AI-related technologies. So as a partner, we are to corporate -- so the investment amount is JPY 100 billion, but the budget -- total budget is JPY 300 billion. So with that amount, therefore, we have a high expectation to this business.

Unknown Analyst: The second question. About Patching as a Service. How many customers do you have right now? And what is the difference between this and the Cristal?

Junichi Miyakawa: So regarding demand, when we had the official announcement, we have inquiries and hundreds of inquiries and we already have completed 100 of them. And then from August 1, this service is a paid service. So as I described using the slide we already have started discussions with the prospective customers and actual number of contract exceeded 3 digits, so more than 100. So we are convinced that this area has a high attention by a lot of enterprise companies. So regarding the difference from the Cristal, so this is a part of Cristal Intelligence and technology wise, it's the base -- it's the same. So there are a lot of things we would like to provide through Cristal Intelligence. So now we are quite occupied fully with Patching as a Service. So especially with this PaaS end-to-end from the risk assessment to the patching. So like [ Kimi 3 ] or Qwen3.8-Max. That's the latest model. So this model is a very high performance model. So Japan has to accelerate in terms of security area. So we would like to provide our service. Next question, please.

Unknown Analyst: [ Miyajima ] from [ Factor Monthly Magazine ]. The alliance between SoftBank and Seven, the vision of that -- I think, this is significant because you partner with the biggest convenience store business in Japan. And the JPY 300 billion investment, and you are committed to partnering with Seven. And my honest question is how committed you are? Presentation was great and press release was great. You're talking about the robotics. And other things in details. So it's like a social implementation of AI and robotics and the convenience stores. So I wonder -- I'm actually disappointed, why you talked about this in financial results announcement as opposed to some individual presentation opportunity. And I think, SoftBank way is to invest more. So again, if you could elaborate on that, please, just to make me feel better.

Junichi Miyakawa: Well, on 31st of July, we had plan to have a press conference, Seven's headquarters, Seven's convenience store business head, myself, Nakayama-san from PayPay and Idezawa-san from LINE and the [ Nakanishi-san ] from Mitsubishi. So we plan to have a press conference on July 31 but as you all know, the Kumamoto earthquakes took place on 28th of Japan -- sorry, July and a lot of convenience stores over there were affected significantly. And from SoftBank's perspective, we suffered damages over there in our telecom networks. So that's why we canceled the press conference and we are wondering if we reschedule or not, we have not made a final decision yet. But rather, what we could do is to take an opportunity of any presentation opportunity like this financial announcement. Well, again, we -- please understand we had a plan of press conference, but timing was not right. And Seven & i is a very important customer to us, but Aeon is another important customer to us. And Aeon also suffered a great loss in Kumamoto. So I was not feeling comfortable making such a press conference back then. Please understand. About share price, we don't intend to run convenience store business. Rather, we want to help convenience store business to transform the business powered by AI. We want to support a convenience store business rather than operating them. As you may have noticed in the video, there are things that people should do and other things that robots should do. So I think it's still early to make everything done by robots. In terms of what we want to do, again, we don't want to run the convenience stores. We want to support convenience stores and retailers. In fact, 2% of investment, I feel a little bit vague because we don't want to intervene the operations. So please understand our intention behind the investment.

Unknown Analyst: Masa Son at the Softbank World was talking about robotics. Look, AI robots implementation that kind of experiment is something that you could do at the convenience store like 7-Eleven. So I wonder if you have any discussion with Mr. Son about huge experiment that you could do with this initiative?

Junichi Miyakawa: I have not shared with this presentation with Masa. And at the last minute, Masa came to know our alliance over the Seven & i, I took an initiative to go through the process. So again, intention or the investment size, may have been different if Masa was involved much heavily, but I was the lead of taking this deal. Again, we are a business partner. We don't plan to experiment anything. So anything Seven needs, we will support. Anything Seven doesn't need, we won't do anything. So not only Seven but also a lot of retailers need to be transformed because obviously, we suffer a lack of human resources in Japan. So that's our intention.

Unknown Analyst: My name is Kimura from NHK. Regarding the earthquake in Kumamoto this time. So in 30 hours or so SoftBank's network was recovered. So how do you see the response to this time of earthquake and what learnings you had? And so how -- regarding also the HAPS, how you're going to utilize in case of emergencies?

Junichi Miyakawa: SoftBank base stations, a fewer base stations were damaged or in a rather shorter period of time, they were recovered. So it's just -- it's not that SoftBank's was barrier. It's not that it's by chance that the location -- because of the locations of the affected area. So the major stations we had to -- and so when the battery was getting lower and the blackout start to happen. And our team is working there for recovery learnings from this time. Well, this time, earthquake was a bit different from the previous occasions that is Japan roaming -- because of the Japan roaming. So we first started lending out on our roaming or battery, and now we are actually getting -- we are borrowing from the other carriers. So -- of course, we don't want to see this natural disasters in the future, but -- so these 4 carriers had their own area. So we divided -- we allocate area in charge. So towards Japanese towards disasters in Japan and the network -- communication network is getting stronger and stronger, and we would like to make it even stronger onwards.

Unknown Analyst: What about to satellite? Are you planning to enhance moving forward?

Junichi Miyakawa: Yes, HAPS if we had launched 2 weeks earlier, we could have used this, but this week launched in the U.S. It takes 1 week to reach Japan. If we had, well environment in terms of preparation, and if we had based in Japan, we could have send our HAPS to the affected area. So we would like to establish that environment onwards. So Starlink is being very useful in this kind of circumstances. And once HAPS will be available, then the video transferring will be much easier. So we would like to accelerate our readiness for HAPS. Next question, please.

Unknown Analyst: [ Ishikawa ] a [ freelance journalist ]. About smartphone subscribers, which seems declining. So do you expect the trend continues? That's the first question. Or related question is, in July, Y!mobile price plan was changed? And in August, ahamo increased from 30 to 40 giga. So what's your view on price competitions in the industry?

Junichi Miyakawa: First, I think 180,000 reduction in the first quarter, but Q2, we don't expect such a subscriber reduction. In fact, we expect subscriber turns around to positive. Since the year-end last year, we have been trying to stop what we call hopping users. We probably got too serious and unfortunately, we were not able to acquire subscribers as much as we wished. But I think our churn rate was beginning to stop declining. And in fact, in June, we saw a positive trend in churn rate. So August and September, we expect a steady growth of subscriber numbers. So please rest assured. And about ahamo you mentioned, we thought about that, but at the moment, we don't intend to compete against them directly. So in a mid-volume zone, if you will, is very highly competitive market. So it may not make a big difference. If you compete in mid-volume zone, we are still competitive enough. So at the moment, we don't intend to do something directly competitive to ahamo.

Unknown Analyst: I'm [ Sano ], [ freelancer ]. Two questions. One is about the alliance with Seven & i Holdings. Today, KDDI launched Happy Lawson. And so they are focusing on stores -- convenience stores, promotion. So you mentioned that you to your -- you do not intend to participate in management but how you're going to participate?

Junichi Miyakawa: So regarding the management of Seven & i Holdings or 7-Eleven is not our area to participate in, but we would like to propose, for example, like in back of house operations, if leveraging one humanoid robot can reduce the labor cost and also integrating Seven ID and PayPay ID that was announced. So what -- so there are areas that PayPay can do has been also proposed. And the major -- so the running convenience store is Seven & i Holdings expertise, and that's their area of business. So we would like to clearly differentiate our own roles. I believe that we elaborated in the video, but SoftBank has started manufacturing batteries. Why SoftBank is manufacturing batteries is that without supporting the power areas so we cannot expect to highly -- of the Japan's future. So the power area has to be further advanced. So therefore, the batteries need to be set in the center of -- in the cities and towns. So the convenience stores are located in the center of the cities or the towns. And so working with them, in case of natural disasters or emergencies, those areas with battery will be a great help to in case of emergencies, as lifeline infrastructure. So we would like to make our best effort to support.

Unknown Analyst: The second is about the Consumer business. So the lack of memories recently and also the memory price hike and the high-end models of handsets are pretty high. As for SoftBank, how you're going to make sales of handsets moving forward? And regarding the serial switchers measurement -- and also, there is no major change in the smartphones or handset prices it is getting more and more difficult to purchase a handset. So what you're going to measures.

Junichi Miyakawa: So from the second half of the models of iPhones, and we will have some impact of the price hike of the devices. So for this fiscal year, we will not have much impact on the low-end models. But as for the high-end model, there may be some burden on our customers. Regarding the serial switches, if the price goes up and there is a certain limit that we can support to reduce the burden on the customers, we need to be able to provide as much support as possible. And also, there should be some rules set and we need to set certain rules for those who are completely opposite side of the serial switches. That's what we need to do. Next.

Unknown Analyst: Yamamoto from [indiscernible]. Two questions. First, about the PaaS, you mentioned starting charging in August. How would you expect that business to contribute to revenue and profitability? That's the first question.

Junichi Miyakawa: Yes, since August 1, we have started charging the customers, and we are beginning to record sales. But for the time being, we don't want to disclose in detail because it's unfair to disclose OpenAI based price as we get ready, we will try to disclose as much as possible. But at the moment, our agreement is with customers are based on specific tools in terms and conditions.

Unknown Analyst: Can we expect the revenue or profit next year or the year after?

Junichi Miyakawa: We expect revenue contribution. In the second half of this fiscal year, but we have not taken into account into our business plan or forecast. But going forward, this business should be all upside to us.

Unknown Analyst: And second question, cloud AI. I think you shared with us the revenue expectation until or for next few years, I think double by FY '30, but -- have you advanced to much earlier year when you expect revenue from cloud AI.

Junichi Miyakawa: Yes, 2030 number was disclosed when we announced the midterm business plan. And that number was the comfortable level of CFO Akiyama, but me personally, I think that we can do more. But conservatively speaking, we are comfortable with the number as of FY '30. But pace-wise, we can expect accelerating pace of recording revenue. As we start operating data centers with Infrinia, we can expect the numbers, but together with service offerings like PaaS and together with data center business built with Oracle. So after patching patches are applied, we should help customers to start utilizing cloud and -- that should be handled by Oracle supported data center. So again, we are talking about AI industry, and that's something unique and fast and very expensive, and it's getting started. So I'm confident with future opportunities with the AI business.

Unknown Analyst: I'm [ Suruga ] from [ Nikkei Asia ]. I have a question regarding physical AI initiatives. So the other day, the government also mentioned that this is going to be the core initiatives by the government as well. So from your perspective, how do you evaluate this initiative nationwide and in order to expand this area, what kind of measures should be taken moving forward?

Junichi Miyakawa: Well, finally started, that's my first impression. Initially regarding the physical AI, well, simply said what sovereign AI is needed, and that's how we started our initiatives. And under such initiatives, combining with the data centers, and that's what Japan is really needed, I thought. So NVIDIA's CEO, Jensen mentioned exactly the same. So how Japan can succeed in the future? What is the key is that Japan has to manufacture and make things within Japan, not relying on outside of Japan. So manufacturing industry was actually the strongest industry of Japan in the past. So the knowledge accumulated over the years and should not be trained by the overseas AI. So that's my intention from the beginning. And so that's how we started this initiative. So as Japan as mentioned -- overseas players like OpenAI, Anthropic and so we are often asked whether we can win over them or not. So whether we should do or not, the answer is simple. Yes, we should try, and even though our technology is a year behind or years behind, you never know what will happen in the future. So this is like a backup solution that we have for the future advancement. So AI -- where AI stands in Japan in the future has a great route in the future. And also, it's a matter of time horizon. If you think about its short period of time, and we can align with those who look at this in 5 or 10 years perspective, so this is like once in generation opportunity for us. So the team that created Sarashina was sent in the front line and to come up with this, the members who created Cotomi of NEC and PLaMo of Preferred and Sarashina of SB Intuitions, the shareholders such as Hitachi, Fujitsu, Sakana AI and Matsuo research institutions. All these brains participated in this initiative. So this is once-in-generation opportunity for us. I strongly believe that, therefore, I would like to make our utmost effort to realize this.

Operator: And next, we'd like to take questions from Zoom participants. [Operator Instructions] First, Masuno-san from Nomura Securities.

Daisaku Masuno: I have 2 questions. First, about AI data centers in Japan. The revenue growth that you disclosed today, JPY 174 billion in 2 years, looking more in detail, I think [ Saka's colocation ] could deliver JPY 160 billion or so sales. And sales of GPU could deliver JPY 10 billion, JPY 20 billion. So is that sales from infrastructure rather than sovereign cloud or AI securities?

Junichi Miyakawa: Masuno-san, you are correct. The disclosed numbers were based upon the contractual basis and contract of the infrastructure business. So PaaS, sovereign AI or software development. We should have a customer first and it's not something that we expect a long-term commitment. So those are upside not included in these numbers.

Daisaku Masuno: Second, cloud business in the States. So how are you going to get computing resources? Is it GPU enough? Or the accelerators are needed? How do you acquire those computing resources. And you need hyperscalers to get a nonrecourse of financing by big banks. So I wonder [indiscernible], [indiscernible]. [indiscernible] has a very sound financial base, but [indiscernible] are skeptical. So again, do you have confidence to get an agreement or contract with the hyperscalers?

Junichi Miyakawa: While contract with the hyperscalers is something that we need to try to be honest, we have discussed with them a lot. But in [indiscernible] should be able to get computing resources. That's for sure, especially we have a good relationship with NVIDIA in Japan, but also in the States. I think mainly from NVIDIA, we will secure resources and Arm, we could definitely utilize Arm and Google's TPU definitely, that's worth considering. Again, we are confident that we can get computing resources, but finance, it depends on contracts with offtakers. But difference here, however, is our Infrinia, which is software, specifically for GPU cloud, that means we could utilize one Infrinia resource to multiple customers. In other words, one GPU cloud can be delivered to multiple clients that's different from bare metal base transaction. So I think off-takers can feel comfortable with more light resources. So again, we are working out details. But as far as financing is concerned, nonrecourse should be must. So unless we can put this scheme in place, maybe we should first focus on Japan.

Daisaku Masuno: But from hyperscaler perspective, leasing data centers and leasing computing resources are too risk off, but the data center and computing resources as a package, that should be easier for you to get a deal with them. So would that be a separate contracts or same packaged deal?

Junichi Miyakawa: Well, something unique is we have energies. That's something that we are unique. And GPU and memory, which is in short in general, I think that's true to any operator, but I think we are in advantageous position because we have an Arm in our group whose share in CPU market is relatively high. So we definitely have to work close with Arm. And if we get long-term commitment, definitely, it will be better to prioritize the customers from a financing perspective. But if the size is small, like 10 mega, 50 mega. If that's the start, SoftBank K.K. can take a risk and start our cloud service business on our own. So I think it's case by case, depending on demand.

Operator: Tokunaga-san from Daiwa Securities.

Kazuki Tokunaga: Two questions. First one is to financial discipline. In this quarter, SP.LINKS and Seven & i Holdings and you invested and a big number of month. So I believe that it's quite a high pace in terms of investment. So onwards, data centers and the payment and others. So you have many other areas to investment onwards. So considering the opportunities of investment right now. So do you think you are investing upward?

Junichi Miyakawa: We are under our discipline in terms of investment and Seven & i Holdings and SP.LINK happen to be at the same time. And with the big amount, by chance, however, the SB Energy return also appeared around the same time. So now it we can say that it's about to scratch. So we had a plan to invest [ JPY 100 billion ]

Kazuki Tokunaga: And the second is about GPU. [ Noetra ] is a nationwide initiative and procuring GPUs. So for now, Sakai is mostly for Noetra or -- so how you're going to allocate GPUs that you're going to procure? Is it only for Noetra or others especially for Sakai?

Junichi Miyakawa: So as for Noetra project, the GPU that we are going to utilize is the Vera Rubin from NVIDIA, there is about 27,000 and more GPU will be purchased from NVIDIA but these are not owned by SoftBank nor Noetra. This will be owned by the government. So if we maintain this business model always is not an ideal one. So we would like to rather focus on the situation that Japan is lacking power. And if we are providing the powers only within Japan is going to restrain our business expansion. So we cannot only rely on colocation business. And even though we have secured enough for ourselves. So in the second quarter and onwards, so we are -- we have two other big large data centers in line.

Kazuki Tokunaga: So your own service means -- Patching as a Service that listing like a cloud not training, it's for inference service?

Junichi Miyakawa: So for inference service includes security service, or customers, companies on AI support or the industry dedicated support. So those models, the ones that we are also getting inquired. So inquiries. So we are thinking about allocating our data center in such use.

Operator: Next should be the last question. Kikuchi-san from SMBC Nikko Securities.

Satoru Kikuchi: I have a question about the cloud AI. You show exciting number like a very high expected revenue, I think like Masuno-san of Nomura Securities questioned earlier, not only infrastructure, but PaaS and Sarashina, you are utilizing a lot of things to deliver services. So what's your view on the growth of those businesses going forward? And the second question is enterprise income in the midterm business plan, you expect the growth of enterprise business, operating income. So as sales goes up, obviously, income should go up. And AI and cloud when and where you can expect accelerating revenue growth in cloud and AI, is it something like the next fiscal year or later? So again, when do you expect accelerating income growth of AI business?

Junichi Miyakawa: I don't know if I'll answer to your questions, but just let me share with you what I think. Of the data center that we built, we have data centers for training, which we have been used for development of Sarashina, for example. But now we have confidence in Sarashina we are ready to lease Sarashina to customers that they want to create AI on their own. And we can also provide facility for physical AI in Japan. And we can also deploy our engineers to support clients. So we can expect revenue from those business and so in 2 years or so, based upon the committed contracts, we expect the numbers that we shared earlier in the midterm business plan. And talking about AI related services, I kept saying that it takes 10 years to create because we want to due end-to-end from infrastructure to service delivery. So that's why I thought it would take 10 years to make it work. Again in mid long term, I thought that we should have infrastructure to monetize. So again, optical fibers, our data centers, getting our energies we have spent last 5 years to get ready. And the next 5 years, we want to get return from such previous effort. So we have been developing software in the last 5 years. So we start selling software. And we start charging customers that use Software as a Service. So we charge subscription fees to those customers like Patching as a Service. And we can help modernization of enterprise customers. And we could provide subscription services to those enterprise customers. So revenue, profit, size-wise. I don't think it -- we are ready to share with you. You could imagine from what Google is doing, for example. About the profitability of AI cloud, I think 30% at the minimum. Otherwise, we wouldn't lease. So if you put a 30% margin, still, I think we can sell it out immediately or in short term. Going forward, we don't know. But -- this is an AI business. And once it's up and running it's not going to be like CapEx heavy -- CapEx intensive industry. So I think I would say, stay tuned. Thank you.

Operator: Thank you. We would like to conclude the Q&A session. This concludes SoftBank Corp.'s financial results briefing for the first quarter of fiscal year ending March 31, 2027. A recording of today's briefing will be available on demand on our corporate website at a later time. We hope you will find it useful. Thank you very much once again for taking the time to attend SoftBank Corp.'s financial results briefing for the first quarter of fiscal year ending March 31, 2027. Thank you. [Statements in English on this transcript were spoken by an interpreter present on the live call.]