17th Aug 2006 07:51
Softbank Corp17 August 2006 SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORT For the three-month period ended June 30, 2006 Tokyo, August 8, 2006 FINANCIAL HIGHLIGHTS 1. Results of Operations (Millions of yen; amounts less than one million yen are omitted.) Net sales Operating Ordinary income Net income (loss) income (loss) (loss) Amount % Amount % Amount % Amount % Three-month period ended Y494,231 91.1 Y54,357 - Y25,994 - Y1,418 - June 30, 2006 Three-month period ended Y258,637 75.6 Y(3,190) - Y(13,017) - Y(11,153) - June 30, 2005 Fiscal year ended Y1,108,665 - Y62,299 - Y27,492 - Y57,550 - March 31, 2006 Net income (loss) per Net income per share- primary (yen) share- diluted (yen) Three-month period ended Y1.34 Y0.81 June 30, 2006 Three-month period ended Y(31.73) - June 30, 2005 Fiscal year ended Y54.36 Y50.71 March 31, 2006 Notes: Percentage changes for net sales, operating income (loss), ordinaryincome (loss) and net income (loss) are compared with the corresponding periodof the previous fiscal year. 2. Financial Condition (Millions of yen; amounts less than one million yen are omitted.) Total assets Net asset Equity ratio (%) Net asset per share (yen) As of Y4,031,003 Y646,190 5.8 Y222.90 June 30, 2006 As of Y1,620,882 Y244,588 10.3 Y476.15 June 30, 2005 As of Y1,808,398 Y347,263 13.4 Y229.88 March 31, 2006 3. Cash Flows (Millions of yen; amounts less than one million yen are omitted.) Operating Investing Financing Cash and cash equivalents activities activities activities at the end of the period Three-month period ended Y64,675 Y(1,965,832) Y1,743,429 Y285,214 June 30, 2006 Three-month period ended Y(18,213) Y(28,703) Y12,925 Y287,211 June 30, 2005 Fiscal year ended Y57,806 Y27,852 Y30,078 Y446,694 March 31, 2006 4. Scope of Consolidation at June 30, 2006 Consolidated subsidiaries: 122Equity-method non-consolidated subsidiaries: 3Equity-method affiliates: 65 5. Changes in Scope of Consolidation (Comparing with March 31, 2006) Consolidated subsidiaries:Newly added: 11Excluded: 42 Equity-method non-consolidated subsidiaries and affiliates:Newly added: 1Excluded: 20 CONSOLIDATED BALANCE SHEETS (Millions of yen; amounts less than one million yen are omitted.) As of June 30, As of March 31, Increase As of June 30, 2006 2006 (Decrease) 2005 Amount % Amount % Amount %ASSETSCurrent assets:Cash and deposits Y285,351 Y446,306 Y(160,955) Y288,119Notes and accounts receivable - 323,034 188,921 134,113 152,974tradeMarketable securities 7,173 4,372 2,800 6,885Inventories 78,392 50,597 27,794 61,168Deferred tax assets 81,346 14,107 67,239 2,326Other current assets 92,123 48,250 43,873 49,558Less: (15,545) (7,424) (8,120) (7,362)Allowance for doubtful accountsTotal current assets 851,875 21.1 745,130 41.2 106,745 553,671 34.2 Non-current assets:Property and equipment, netBuildings and structures 88,562 57,304 31,258 57,372Telecommunications equipment 614,806 194,970 419,835 214,928Telecommunications service lines 95,018 91,724 3,293 96,874Land 30,103 19,404 10,698 19,396Construction-in-progress 79,457 27,875 51,581 42,187Others 47,951 27,325 20,625 26,884Total tangible assets 955,899 23.7 418,605 23.1 537,294 457,644 28.2 Intangible assets, net:Goodwill 1,161,691 45,578 1,116,113 49,313Software 158,008 33,671 124,337 31,025Other intangibles 51,373 23,036 28,336 23,098Total intangible assets 1,371,073 34.0 102,286 5.7 1,268,787 103,438 6.4 Investments and other assets:Investment securities and 526,892 464,650 62,241 397,333 Investments in partnershipsDeferred tax assets 165,166 25,039 140,127 42,282Other assets 166,018 61,241 104,776 73,655Less: (9,432) (9,548) 116 (8,700)Allowance for doubtful accountsTotal investments 848,644 21.1 541,382 29.9 307,262 504,571 31.1and other assets Deferred charges 3,509 0.1 993 0.1 2,515 1,557 0.1 Total assets Y4,031,003 100.0 Y1,808,398 100.0 Y2,222,604 Y1,620,882 100.0 CONSOLIDATED BALANCE SHEETS (Millions of yen; amounts less than one million yen are omitted.) As of June 30, As of March 31, Increase As of June 30, 2005 2006 2006 (Decrease) Amount % Amount % Amount %LIABILITIES ANDSHAREHOLDERS' EQUITYCurrent liabilities:Accounts payable - trade Y91,012 Y60,432 Y30,579 Y44,585Short-term borrowings 1,534,529 218,300 1,316,229 209,245Commercial paper 14,600 10,400 4,200 8,500Current portion 36,064 11,094 24,970 48,145of corporate bondsAccounts payable - other 273,781 114,122 159,658 162,500and accrued expensesIncome taxes payable 11,324 29,137 (17,813) 9,585Cash receipts as collateral 150,000 100,000 50,000 100,000Other current liabilities 83,899 43,414 40,485 30,485Total current liabilities 2,195,212 54.5 586,902 32.4 1,608,309 613,048 37.8 Long-term liabilities:Corporate bonds 555,404 456,128 99,276 383,352Long-term debt 388,997 209,370 179,626 226,902Deferred revenue 37,612 41,840 (4,227) -Deferred tax liabilities 45,457 48,642 (3,185) 52,078Accrued retirement benefits 17,430 17,279 151 17,608Provision for loyalty program 41,033 - 41,033 -Other liabilities 103,663 100,970 2,692 83,305Total long-term liabilities 1,189,599 29.5 874,232 48.4 315,367 763,246 47.1Total liabilities 3,384,812 84.0 1,461,135 80.8 1,923,677 1,376,294 84.9 Net asset:Common stock 162,969 4.0 162,916 9.0 52 162,397 10.0Pre-stock issuance paid-in capital - - 5 0.0 (5) - -Additional paid-in capital 187,355 4.6 187,303 10.3 52 186,783 11.5Accumulated deficit (219,394) (5.4) (218,561) (12.1) (833) (287,201) (17.7)Less: Treasury stock (175) (0.0) (169) (0.0) (5) (109) (0.0)Net unrealized gain on other 125,077 3.1 129,051 7.1 (3,974) 135,942 8.4securitiesDeferred losses on hedges (38,764) (1.0) (36,840) (2.0) (1,923) (41,582) (2.6)Foreign currency translation 18,130 0.5 19,062 1.1 (932) 11,115 0.7adjustmentsStock acquisition right 3,150 0.1 3,150 0.2 0 3,150 0.2Minority interest 407,841 10.1 101,346 5.6 306,495 74,092 4.6 in consolidated subsidiariesTotal net assets 646,190 16.0 347,263 19.2 298,926 244,588 15.1Total liabilities and Y4,031,003 100.0 Y1,808,398 100.0 Y2,222,604 Y1,620,882 100.0net assets CONSOLIDATED STATEMENTS OF OPERATIONS (Millions of yen; amounts less than one million yen are omitted.) Three-month period Three-month period Increase Fiscal year ended ended June 30, ended June 30, (Decrease) March 31, 2006 2006 2005 Amount % Amount % Amount % Net sales Y494,231 100.0 Y258,637 100.0 Y235,594 Y1,108,665 100.0 Cost of sales 273,895 55.4 175,674 67.9 98,220 723,812 65.3Gross profit 220,336 44.6 82,962 32.1 137,373 384,853 34.7Selling, general and administrative 165,978 33.6 86,153 33.3 79,825 322,553 29.1expensesOperating income (loss) 54,357 11.0 (3,190) (1.2) 57,547 62,299 5.6Interest income 1,088 326 762 2,136Equity in earnings under the equity 9,051 1,610 7,440 9,521methodOther non-operating income 1,956 1,185 770 4,099Non-operating income 12,096 2.5 3,122 1.2 8,973 15,756 1.4Interest expense 14,601 6,806 7,795 27,005Other non-operating expenses 25,857 6,143 19,713 23,558Non-operating expenses 40,459 8.2 12,950 5.0 27,509 50,564 4.5Ordinary income (loss) 25,994 5.3 (13,017) (5.0) 39,012 27,492 2.5Gain on sales of investment 3,971 21,827 (17,855) 172,306securitiesOther special income 701 1,087 (386) 26,218Special income 4,672 0.9 22,914 8.9 (18,241) 198,524 17.9Special loss 1,365 0.3 9,136 3.6 (7,771) 96,532 8.7Income before income taxes and 29,302 5.9 760 0.3 28,541 129,484 11.7minority interestIncome taxes:Current 10,146 2.0 8,230 3.2 1,915 40,753 3.7Deferred 9,224 1.9 (2,779) (1.1) 12,003 1,837 0.2Minority interest 8,514 1.7 6,463 2.5 2,050 29,342 2.6Net income (loss) Y1,418 0.3 Y(11,153) (4.3) Y12,571 Y57,550 5.2 CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSET From April 1, 2006 to June 30, 2006: (Millions of yen, amounts less than one million yen are omitted) Shareholders' Equity Valuation and translation adjustments Common Pre-stock Additional Accumulated Treasury Total Net Deferred Foreign Total stock issuance paid-in deficit stock unrealized losses currency paid-in Capital gain on translation capital (losses) hedges adjustments on other securities Balance at 162,916 5 187,303 (218,561) (169) 131,494 129,051 (36,840) 19,062 111,273 March 31, 2006 Changes of items during the period Issuance of 52 (5) 52 - - 99 - - - - new shares Dividend - - - (2,637) - (2,637) - - - - from surplus Bonuses to - - - (90) - (90) - - - - directors (see Note1) Net - - - 476 - 476 - - - - adjustment to accumulated deficit due to change in scope of the consolidation (see Note 2) Net income - - - 1,418 - 1,418 - - - - Acquisition - - - - (5) (5) - - - - of treasury stock Items other - - - - - - (3,974) (1,923) (932) (6,830) than changes in shareholders' equity Total 52 (5) 52 (833) (5) (739) (3,974) (1,923) (932) (6,830) movement in this period Balance at 162,969 - 187,355 (219,394) (175) 130,754 125,077 (38,764) 18,130 104,443 June 30, 2006 Stock Minority Total acquisition interests net right assets Balance at March 31, 2006 3,150 101,346 347,263 Changes of items during the period Issuance of new shares - - 99 Dividend from surplus - - (2,637) Bonuses to directors (see Note1) - - (90) Net adjustment to accumulated deficit due to change in scope of the consolidation - - 476 (see Note 2) Net income - - 1,418 Acquisition of treasury stock - - (5) Items other than changes in shareholders' equity - 306,495 299,666 Total movement in this period - 306,495 298,926 Balance at June 30, 2006 3,150 407,841 646,190 From April 1, 2005 to June 30, 2005: (Millions of yen, amounts less than one million yen are omitted) Shareholders' Equity Valuation and translation adjustments Common Pre-stock Additional Accumulated Treasury Total Net Deferred Foreign Total stock issuance paid-in deficit stock unrealized losses currency paid-in Capital gain on translation capital (losses) hedges adjustments on other securities Balance at 162,397 - 186,783 (273,362) (106) 75,712 136,662 (41,056) 6,697 102,303 March 31, 2005 Changes of items during the period Dividend - - - (2,460) - (2,460) - - - - from surplus Bonuses to - - - (86) - (86) - - - - directors (see Note1) Decrease due - - - (138) - (138) - - - - to merger Net income - - - (11,153) - (11,153) - - - - Acquisition - - - - (3) (3) - - - - of treasury stock Items other - - - - - - (719) (526) 4,417 3,171 than changes in shareholders' equity Total - - - (13,838) (3) (13,842) (719) (526) 4,417 3,171 movement during the period Balance at 162,397 - 186,783 (287,201) (109) 61,870 135,942 (41,582) 11,115 105,475 June 30, 2005 Stock Minority Total acquisition interests net right assets Balance at March 31, 2005 3,150 68,943 250,110 Changes of items during the period Dividend from surplus - - (2,460) Bonuses to directors (see Note1) - - (86) Decrease due to merger - - (138) Net income - - (11,153) Acquisition of treasury stock - - (3) Items other than changes in shareholders' equity - 5,148 8,320 Total movement during the period - 5,148 (5,522) Balance at June 30, 2005 3,150 74,092 244,588 - Continued - From April 1, 2005 to March 31, 2006: (Millions of yen, amounts less than one million yen are omitted) Shareholders' Equity Valuation and translation adjustments Common Pre-stock Additional Accumulated Treasury Total Net Deferred Foreign Total stock issuance paid-in deficit stock unrealized gain currency paid-in Capital gain (losses) translation capital (losses) on hedges adjustments on other Balance at 162,397 - 186,783 (273,362) (106) 75,712 136,662 (41,056) 6,697 102,303 March 31, 2005 Changes of items during the period Issuance of 519 - 519 - - 1,038 - - - - new shares Cash receipt - 5 - - - 5 - - - - before stock issuance Dividend - - - (2,460) - (2,460) - - - - from surplus @Bonuses to - - - (86) - (86) - - - - directors (see Note 1) Net 13 13 adjustment to accumulated deficit due to change in scope of the consolidation (see Note 2) Decrease due - - - (215) - (215) - - - - to merger Net Income - - - 57,550 - 57,550 - - - - Acquisition - - - - (63) (63) - - - - of treasury stock Items other - - - - - - (7,610) 4,215 12,365 8,969 than changes in shareholders' equity s Total 519 5 519 54,801 (63) 55,781 (7,610) 4,215 12,365 8,969 movement during the period Balance at 162,916 5 187,303 (218,561) (169) 131,494 129,051 (36,840) 19,062 111,273 March 31, 2006 Stock Minority Total acquisition interests net right assets Balance at March 31, 2005 3,150 68,943 250,110 Changes of items during the period Issuance of new shares - - 1,038 Cash receipt before stock issuance - - 5 Dividend from surplus - - (2,460) Bonuses to directors (see Note 1) - - (86) Net adjustment to accumulated deficit due to change in scope of the consolidation 13 (see Note 2) Decrease due to merger - - (215) Net Income - - 57,550 Acquisition of treasury stock - - (63) Items other than changes in shareholders' equity s - 32,402 41,371 Total movement during the period - 32,402 97,153 Balance at March 31, 2006 3,150 101,346 347,263 Note 1: In accordance with the accounting principles generally accepted inJapan, bonuses to directors, to be appropriated in accordance with a resolutionof the shareholders at an ordinary meeting held subsequent to the fiscalyear-end, are recorded in the consolidated statements of changes in net asset inthe fiscal year in which the resolution was passed. Note 2: In accordance with the accounting principles generally accepted inJapan, the cumulative effect arising from any changes in the scope ofconsolidation is treated as an adjustment to accumulated deficit in theconsolidated statements of changes in net asset. CONSOLIDATED STATEMENTS OF CASH FLOWS (Millions of yen; amounts less than one million yen are omitted.) Three-month Three-month Fiscal year ended period ended June period ended June March 31, 2006 30, 2006 30, 2005 I. Cash flows from operating activities: Income before income taxes and minority interest Y29,302 Y760 Y129,484 Adjustments to reconcile income before income taxes andminority interest to net cash provided by (used in)operating activities:Depreciation and amortization 38,048 20,942 80,417Amortization of goodwill 10,940 1,600 6,272Equity in earnings under the equity method, net (9,051) (1,610) (9,521)Dilution gain from changes in equity interest, net (293) (826) (21,806)Valuation loss on investment securities 143 1,682 7,188Gain on sales of marketable and investment securities, (3,970) (21,699) (171,864)netForeign exchange (gain) loss, net (88) 2,657 5,497Interest and dividend income (1,276) (524) (2,402)Interest expense 14,601 6,806 27,005Changes in operating assets, liabilities and othersDecrease (increase) in receivables - trade 34,259 14,628 (23,333)(Decrease) increase in payables - trade (12,776) (18,724) 4,331Decrease (Increase) in other receivables 13,169 (5,741) (9,864)Decrease in other payables (8,289) (5,650) (26,773)Others, net (6,127) 5,407 110,731 Sub-total 98,593 (291) 105,361 Interest and dividends received 2,797 1,775 3,301Interest paid (9,168) (3,745) (22,332)Income taxes paid (27,546) (18,867) (31,588)Refund of income taxes - 2,915 3,064Net cash provided by (used in) operating activities Y64,675 Y(18,213) 57,806 - Continued - CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) (Millions of yen; amounts less than one million yen are omitted.) Three-month Three-month Fiscal year ended period ended June period ended June March 31, 2006 30, 2006 30, 2005 II. Cash flows from investing activities:Purchase of property and equipment and intangibles Y(76,776) Y(90,147) Y(189,490)Purchase of marketable and investment securities (60,754) (14,409) (88,479)Proceeds from sales of marketable and investment 5,958 69,922 178,022securitiesAcquisition of interests in subsidiaries newly (1,835,955) - (4,525)consolidated, net of cash acquiredSales of interests in subsidiaries previously 11 (109) 39,826consolidatedProceeds from sales of interests in consolidated - 1 29,232subsidiariesIncrease in loan receivables (4,750) (3,780) (17,425)Collection of loans 2,277 5,401 16,583Others, net 4,157 4,417 64,107Net cash (used in) provided by investing activities (1,965,832) (28,703) 27,852 III. Cash flows from financing activities:Increase in short-term borrowings, net 1,286,475 19,058 32,043Increase (decrease) in commercial paper 4,200 (7,000) (5,100)Proceeds from long-term debt 210,070 110,020 125,550Repayment of long-term debt (7,272) (110,198) (158,211)Proceeds from issuance of bonds - 12,252 91,849Redemption of bonds (1,899) (5,400) (53,547)Proceeds from issuance of shares 105 - 1,038Proceeds from issuance of shares to minority 300,084 160 1,619shareholdersCash dividends paid (1,846) (1,816) (2,456)Cash dividends paid to minority shareholders (2,968) (2,256) (2,442)Increase in cash receipt as collateral 50,000 - -Others, net (93,519) (1,892) (264) Net cash provided by financing activities 1,743,429 12,925 30,078 IV. Effect of exchange rate changes on cash and 134 1,150 10,905cash equivalents V. Net decrease in cash and cash equivalents (157,593) (32,840) 126,642 VI. Decrease in cash and cash equivalents due to (3,886) (142) (142)exclusion of previously consolidated entities VII. Cash and cash equivalents at the beginning 446,694 320,194 320,194of the period VIII. Cash and cash equivalents at the end of the Y285,214 Y287,211 Y446,694period CONDENSED QUARTERLY FINANCIAL INFORMATION Condensed Statement of Income (Millions of yen; amounts less than one million yen are omitted.) First Fourth Third Second First quarter quarter quarter quarter quarter April 1, January 1, October 1, July 1, April 1, 2006 to 2006 to 2005 to 2005 to 2005 to June 30, March 31, December 31, September 30, June 30, 2006 2006 2005 2005 2005 Amount Amount Amount Amount Amount Net sales Y494,231 Y298,406 Y287,471 Y264,149 Y258,637Cost of sales 273,895 185,010 184,551 178,575 175,674Gross profit 220,336 113,395 102,920 85,573 82,962Selling, general and administrative 165,978 79,009 79,407 77,983 86,153 expensesOperating income (loss) 54,357 34,386 23,512 7,590 (3,190)Non-operating income (Note) 12,096 6,227 2,784 4,442 3,122Non-operating expenses (Note) 40,459 10,867 15,068 12,499 12,950Ordinary income (loss) 25,994 29,747 11,228 (466) (13,017)Special income 4,672 40,758 98,934 35,916 22,914Special loss 1,365 26,610 50,475 10,309 9,136Income before income taxes and minority 29,302 43,895 59,687 25,141 760interestIncome taxes - Current 10,146 11,204 9,695 11,623 8,230Income taxes - Deferred 9,224 (15,366) 20,171 (187) (2,779)Minority interest 8,514 8,326 7,817 6,734 6,463Net income (loss) Y1,418 Y39,730 Y22,002 Y6,971 Y(11,153) Note: Exchange gain (loss), equity in earnings (loss) under the equity method,and income (expenses) from investments in partnerships were included in "Non-operating income" and "Non-operating expenses" and were netted on aquarterly basis for presentation purposes. Condensed Statement of Cash Flows (Millions of yen; amounts less than one million yen are omitted.) First Fourth Third Second First quarter quarter quarter quarter quarter April 1, January 1, October 1, July 1, April 1, 2006 to 2006 to 2005 to 2005 to 2005 to June 30, March 31, December 31, September 30, June 30, 2006 2006 2005 2005 2005 Amount Amount Amount Amount Amount I Net cash provided by (used in) Y64,675 Y13,837 Y61,949 Y232 Y(18,213) operating activitiesII Net cash (used in) provided by (1,965,832) 15,521 86,627 (45,593) (28,703) investing activitiesIII Net cash provided by (used in) 1,743,429 74,963 (46,728) (11,081) 12,925 financing activitiesIV Effect of exchange rate changes on 134 5,248 3,866 639 1,150 cash and cash equivalentsV Net (decrease) increase in cash and (157,593) 109,571 105,714 (55,802) (32,840) cash equivalentsVI (Decrease) in cash and cash (3,886) - - - (142) equivalents due to exclusion of previously consolidated entitiesVII Cash and cash equivalents at the 446,694 337,122 231,408 287,211 320,194 beginning of the periodVIII Cash and cash equivalents at the Y285,214 Y446,694 Y337,122 Y231,408 Y287,211 end of the periodNote: Y38,048 Y18,311 Y19,519 Y21,643 Y20,942 Depreciation and amortization included in netcash provided by operating activities This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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