Tokyo, Apr 13, 2009 - (JCN Newswire) - SOFTBANK CORP. (hereafter 'the Company') disclosed in the earnings results briefings held on October 29, 2008 and February 5, 2009 the risk regarding the recognition of special loss, amounting to maximum JPY 75 bn, in relation to in-substance redemption before maturity for the outstanding bonds of SOFTBANK MOBILE Corp., a consolidated subsidiary of the Company. This information was also stated in detail in the Consolidated Financial Report for the 2nd quarter and 3rd quarter of fiscal year ended March 31, 2009. *1
This time, the occurrence of the relevant loss has been confirmed and the special loss will be recorded.
Redemption of the bonds in scope will be secured through a credit line facility provided by Mizuho Corporate Bank, Ltd. and the Company, and will be executed as scheduled. *2
[Notes]
*1Refer to page 30 of 2Q Consolidated Financial Report, and page 29 of 3Q Consolidated Financial report respectively.
*2To be redeemed on August 19, 2010, August 25, 2010, and September 22, 2010 respectively.
1.Impact on consolidated earnings
The Company will record special loss amounting to JPY 75.0 bn (impact on net income after tax effects JPY 44.4 bn) in the fiscal year ended March 31, 2009. Net income for the fiscal year ended March 31, 2009 will remain positive after the recognition of this special loss. The consolidated earnings forecasts of operating income and free cash flow announced earlier will not be affected, nor will there be any impact to the Company's stand-alone earnings results.
The recognition of this special loss will terminate the risk exposure concerning this matter, no future losses will occur.
The Company has not entered into any other similar types of transactions.
2.Earnings Forecasts
The Company is currently preparing its earnings results for the fiscal year ended March 31, 2009 to be announced on April 30, 2009. The current earnings forecasts are as stated below.
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Consolidated Consolidated
operating income free cash flow
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Forecast of fiscal
year ended March 31, 2009 JPY 350.0bn JPY 170.0bn
(as of April 10, 2009)
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Forecast of fiscal
year ended March 31, 2009
(announced on February 5, 2009) JPY 340.0bn JPY 150.0bn
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The forecasted consolidated operating income has been revised upwardly by JPY 10.0bn to JPY 350.0bn as a result of continued efforts in cost management and increased managerial efficiency.
In addition, consolidated free cash flow was forecast at JPY 150.0bn until now but this forecast has been revised upwardly by JPY 20.0bn to JPY 170.0bn. This is the result of an improvement in operating income and an increase in cash flows from operating activities, due to a decrease in accounts receivables and lower levels of inventory, in combination with lower than expected cash flows from investing activities due to efficient execution of capital expenditures in SOFTBANK MOBILE Corp. etc.
The intragroup transaction of shares of SOFTBANK IDC SOLUTIONS Corp. and Yahoo Japan Corporation (partial) will have no impact on free cash flow.
*The information is true and accurate at the time of publication.
Price, specification, contact and other information of products and service may be subjected to change. The information contains certain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements.
About SoftBank
SOFTBANK GROUP (TSE: 9984) offers its customers a range of services including mobile communications, broadband infrastructure, fixed-line telecommunications, internet culture, e-Commerce, and others. For more information, please visit www.softbank.co.jp/en/
Contact:
SOFTBANK CORP.
Public Relations
Email: pr@softbank.co.jp
Apr 13, 2009
Source: SoftBank
SoftBank (TSE: 9984) (U.S: SFTBF)
From the Japan Corporate News Network
http://www.japancorp.net
Topic: Press release summary
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