28th Feb 2006 07:44
Softbank Corp 28 February 2006 SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORT For the nine-month period ended December 31, 2005 Tokyo, February 10, 2006 FINANCIAL HIGHLIGHTS 1.Results of Operations (Millions of yen; amounts less than one million yen are omitted.) Net sales Operating Ordinary loss Net income (loss) income (loss) Amount % Amount % Amount % Amount % Nine-month period ended Y810,258 44.2 Y27,912 - Y(2,255) - Y17,819 - December 31, 2005 Nine-month period ended Y561,793 55.1 Y(14,326) - Y(33,942) - Y(32,605) - December 31, 2004 Fiscal year ended Y837,018 - Y(25,359) - Y(45,248) - Y(59,871) - March 31, 2005 Net income (loss) per Net income per share share - primary diluted (yen) (yen) Nine-month period ended Y50.70 Y47.31 December 31, 2005 Nine-month period ended Y(92.79) - December 31, 2004 Fiscal year ended Y(171.03) - March 31, 2005 Notes: Percentage changes for net sales, operating income (loss), ordinary lossand net income (loss) are compared with the corresponding period of the previousfiscal year. 2. Financial Condition (Millions of yen; amounts less than one million yen are omitted.) Total assets Shareholders' Equity ratio (%) Shareholders' equity equity per share (yen) As of Y1,748,605 Y219,110 12.5 Y623.32 December 31, 2005 As of Y2,090,043 Y204,685 9.8 Y582.39 December 31, 2004 As of Y1,704,853 Y178,016 10.4 Y505.86 March 31, 2005 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 Nine-month period ended Y43,968 Y12,331 Y(44,885) Y337,122 December 31, 2005 Nine-month period ended Y(30,709) Y(177,564) Y153,724 Y381,948 December 31, 2004 Fiscal year ended Y(45,989) Y(242,944) Y277,770 Y320,194 March 31, 2005 4.Scope of Consolidation at December 31, 2005 Consolidated subsidiaries: 152 Equity-method non-consolidated subsidiaries: 5 Equity-method affiliates: 87 5.Changes in Scope of Consolidation Consolidated subsidiaries: Newly added: 20 Excluded: 21 Equity-method non-consolidated subsidiaries and affiliates: Newly added: 13 Excluded: 29 CONSOLIDATED BALANCE SHEETS (Millions of yen; amounts less than one million yen are omitted.) As of As of Increase As of December 31, 2005 March 31, 2005 (Decrease) December 31, 2004 Amount % Amount % Amount % ASSETS Current assets:Cash and deposits Y336,442 Y287,978 Y48,463 Y352,316Notes and accounts 177,678 168,262 9,415 146,656receivable - tradeMarketable securities 10,218 39,403 (29,185) 48,086Inventories 57,312 47,224 10,087 47,598Deferred tax assets 3,132 3,025 107 4,571Cash segregated as deposits - - - 148,663 related to securities businessReceivables related to - - - 229,029 margin transactionsOther current assets 55,445 67,542 (12,096) 107,716Less: (7,278) (7,319) 41 (7,269) Allowance for doubtfulaccounts Total current assets 632,952 36.2 606,117 35.5 26,834 1,077,370 51.5 Non-current assets: Property and equipment, net Buildings and structures 57,603 56,860 743 50,253Telecommunications equipment 203,602 198,598 5,003 192,672Telecommunications service 93,061 99,133 (6,071) 98,983linesLand 19,396 19,396 - 15,725Construction-in-progress 32,721 49,354 (16,633) 35,058Others 26,423 28,373 (1,950) 28,737Total tangible assets 432,809 24.7 451,717 26.5 (18,907) 421,431 20.2 Intangible assets, net:Goodwill 45,674 48,313 (2,638) 39,588Other intangibles 57,756 55,227 2,529 44,310Total intangible assets 103,431 5.9 103,540 6.1 (109) 83,898 4.0 Investments and other assets:Investment securities and 497,866 434,441 63,424 331,526investments in partnershipsOther investments - - - 87,730Deferred tax assets 22,322 40,472 (18,149) 40,528Other assets 67,330 75,728 (8,398) 56,746Less: Allowance for doubtful (9,270) (8,669) (600) (11,351)accountsTotal investments 578,248 33.1 541,972 31.8 36,275 505,180 24.2and other assets Deferred charges 1,163 0.1 1,504 0.1 (341) 2,162 0.1 Total assets Y1,748,605 100.0 Y1,704,853 100.0 Y 43,751 Y2,090,043 100.0 CONSOLIDATED BALANCE SHEETS (Millions of yen; amounts less than one million yen are omitted.) As of As of Increase As of December 31, 2005 March 31, 2005 (Decrease) December 31, 2004 Amount % Amount % Amount % LIABILITIES ANDSHAREHOLDERS' EQUITY Current liabilities: Accounts payable - trade Y50,956 Y63,684 Y(12,728) Y46,981Short-term borrowings 112,483 181,186 (68,703) 149,613Commercial paper 16,500 15,500 1,000 15,000Current portion 11,094 48,145 (37,051) 48,145of corporate bondsAccounts payable - other 165,056 228,264 (63,208) 165,397and accrued expensesIncome taxes payable 18,264 21,600 (3,336) 16,986Deferred tax liabilities - 527 (527) 1,755Payables related to - - - 185,147margin transactionsGuarantee deposits received from - - - 132,713customers related to securitiesbusinessCash receipts as collateral 120,000 100,000 20,000 100,000Other current liabilities 44,845 31,887 12,958 86,451Total current liabilities 539,199 30.8 690,796 40.5 (151,597) 948,194 45.4 Long-term liabilities:Corporate bonds 454,968 378,248 76,720 366,944Long-term debt 215,730 230,837 (15,106) 250,067Deferred revenue 45,156 - 45,156 -Deferred tax liabilities 52,579 57,419 (4,840) 58,540Accrued retirement benefits 17,121 17,359 (238) 15,389Other liabilities 114,075 83,232 30,843 98,331Total long-term liabilities 899,629 51.5 767,096 45.1 132,533 789,273 37.7Total liabilities 1,438,829 82.3 1,457,893 85.6 (19,063) 1,737,467 83.1 Minority interest 90,665 5.2 68,943 4.0 21,721 147,890 7.1in consolidated subsidiaries Shareholders' equity:Common stock 162,566 9.3 162,397 9.5 168 162,390 7.8Additional paid-in capital 186,952 10.7 186,783 10.9 168 186,777 8.9Accumulated deficit (258,266) (14.8) (273,362) (16.0) 15,095 (246,006) (11.8)Net unrealized gain on other 168,808 9.6 136,662 8.0 32,146 149,912 7.2securitiesNet unrealized loss on derivative (59,702) (3.4) (41,056) (2.4) (18,646) (51,158) (2.4)instrumentsForeign currency translation 18,914 1.1 6,697 0.4 12,216 2,867 0.1adjustmentsLess: Treasury stock (162) (0.0) (106) (0.0) (56) (97) (0.0)Total shareholders' equity 219,110 12.5 178,016 10.4 41,094 204,685 9.8Total liabilities and Y1,748,605 100.0 Y1,704,853 100.0 Y43,751 Y2,090,043 100.0shareholders' equity CONSOLIDATED STATEMENTS OF OPERATIONS (Millions of yen; amounts less than one million yen are omitted.) Nine-month Nine-month Increase Fiscal year ended period ended period ended (Decrease) March 31, 2005 December 31, 2005 December 31, 2004 Amount % Amount % Amount % Net sales Y810,258 100.0 Y561,793 100.0 Y248,464 Y837,018 100.0 Cost of sales 538,801 66.5 362,967 64.6 175,834 547,402 65.4Gross Profit 271,457 33.5 198,826 35.4 72,630 289,615 34.6Selling, general and administrative 243,544 30.1 213,152 37.9 30,391 314,975 37.6expensesOperating income (loss) 27,912 3.4 (14,326) (2.5) 42,238 (25,359) (3.0) Interest income 1,150 1,812 (662) 2,398Equity in earnings under the equity 6,214 - 6,214 5,425methodIncome from investments in 739 3,868 (3,128) 3,711partnershipsOther non-operating income 2,230 3,129 (899) 4,931Non-operating income 10,334 1.3 8,811 1.6 1,523 16,466 2.0Interest expense 20,510 16,496 4,013 22,971Foreign exchange loss 7,126 920 6,205 4,040Equity in loss under the equity method - 2,892 (2,892) -Other non-operating expenses 12,865 8,117 4,748 9,343Non-operating expenses 40,502 5.0 28,427 5.1 12,075 36,356 4.4Ordinary loss (2,255) (0.3) (33,942) (6.0) 31,687 (45,248) (5.4)Gain on sales of investment securities 146,080 52,650 93,430 59,121Dilution gain from changes in equity 9,509 10,944 (1,435) 26,269interestOther special income 2,176 3,524 (1,348) 3,969 Special income 157,766 19.5 67,119 11.9 90,646 89,360 10.7 Loss on contract revision relating to 26,429 - 26,429 - sales operation changeRestructuring charge relating to BBTV 14,749 - 14,749 -businessValuation loss on investment securities 4,699 5,189 (489) 8,840Penalty for unfulfilled contract 3,653 - 3,653 6,147commitmentRefinance arrangement fee 3,153 - 3,153 -Other special loss 17,235 23,975 (6,739) 38,672Special loss 69,921 8.6 29,164 5.2 40,757 53,660 6.4 Income (loss) before income taxes and 85,589 10.6 4,012 0.7 81,576 (9,548) (1.1)minority interest Income taxes:Current 29,548 3.7 22,269 3.9 7,279 34,740 4.2Refunded - - - - - 2,897 0.3Deferred 17,204 2.1 (15,941) (2.8) 33,145 (21,963) (2.6) Minority interest 21,015 2.6 30,290 5.4 (9,274) 40,444 4.8 Net income (loss) Y17,819 2.2 Y(32,605) (5.8) Y50,425 Y(59,871) (7.2) CONSOLIDATED STATEMENTS OF ADDITIONAL PAID-IN CAPITAL AND RETAINED EARNINGS (Millions of yen; amounts less than one million yen are omitted.) Nine-month period ended Nine-month period Fiscal year ended December 31, 2005 ended December 31, 2004 March 31, 2005ADDITIONAL PAID-IN CAPITAL Additional paid-in capital Y186,783 Y186,690 Y186,690at the beginning of the periodIncrease due to issuance of shares 168 87 93 Additional paid-in capital Y186,952 Y186,777 Y186,783at the end of the period (Millions of yen; amounts less than one million yen are omitted.) Nine-month period ended Nine-month period Fiscal year ended December 31, 2005 ended December 31, 2004 March 31, 2005ACCUMULATED DEFICIT Accumulated deficit Y(273,362) Y(210,625) Y(210,625)at the beginning of the period Net income (loss) 17,819 (32,605) (59,871)Cash dividends (2,460) (2,459) (2,459)Bonuses to directors (86) (176) (176)Net adjustments to accumulated deficit due 38 (145) (98)to change in scope of the consolidationIncrease due to merger - 14 17Decrease due to merger (215) (7) (147)Accumulated deficit Y(258,266) Y(246,006) Y(273,362)at the end of the period Note: In accordance with accounting principles generally accepted in Japan, thecumulative effect arising from any changes in the scope of consolidation istreated as an adjustment to accumulated deficit in the consolidated statementsof additional paid-in capital and retained earnings. CONSOLIDATED STATEMENTS OF CASH FLOWS (Millions of yen; amounts less than one million yen are omitted.) Nine-month Nine-month Fiscal year ended period ended period ended March 31, 2005 December 31, 2004 December 31, 2005I. Cash flows from operating activities: Income (loss) before income taxes and minority Y85,589 Y4,012 Y(9,548)interest Adjustments to reconcile income (loss) before incometaxes and minority interest to net cash provided by(used in) operating activities:Depreciation and amortization 62,106 41,654 66,417Equity in (earnings) loss under the equity method, net (6,214) 2,892 (5,425)Dilution gain from changes in equity interest, net (9,488) (10,861) (25,200)Valuation loss on investment securities 4,699 6,477 8,840Gain on sales of marketable and investment securities, (145,853) (49,670) (56,049)netForeign exchange loss, net 6,319 2,518 5,324Interest and dividend income (1,384) (2,126) (2,862)Interest expense 20,510 16,496 22,971Changes in operating assets, liabilities and others(Increase) in receivables - trade (12,386) (761) (15,854)(Decrease) increase in payables - trade (7,166) (11,509) 2,371Increase in deferred revenue 40,000 - -Increase in other receivables (12,818) (27,990) (70,813)Increase in other payables 21,206 61,766 97,095Others, net 39,889 (24,466) (17,519) Sub-total 85,007 8,432 (251) Interest and dividends received 2,501 2,218 2,506Interest paid (15,127) (11,198) (17,924)Income taxes paid (31,441) (31,382) (31,533)Refund of income taxes 3,028 1,221 1,213Net cash provided by (used in) operating activities Y43,968 Y(30,709) Y(45,989) - Continued - CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) (Millions of yen; amounts less than one million yen are omitted.) Nine-month Nine-month Fiscal year ended period ended period ended March 31, 2005 December 31, 2005 December 31, 2004 II. Cash flows from investing activities:Purchase of property and equipment and intangibles Y(177,052) Y(52,731) Y (90,943)Purchase of marketable and investment securities (69,392) (21,790) (29,582)Proceeds from sales of marketable and investment 161,019 39,001 57,099securitiesAcquisition of interests in subsidiaries newly (3,464) (159,337) (172,320)consolidated, net of cash acquired Sales of interests in subsidiaries previously 40,442 38,912 34,840consolidated Proceeds from sales of interests in consolidated 5,853 7,552 8,110subsidiaries Increase in loan receivables (14,550) (9,916) (21,387) Collection of loans 13,435 5,955 9,105 Purchase of business rights and others - - (13,113) Proceeds from sale of modem rental business 45,000 - - Others, net 11,039 (25,210) (24,753) Net cash provided by (used in) investing activities 12,331 (177,564) (242,944) III. Cash flows from financing activities:(Decrease) increase in short-term borrowings, net (80,701) 22,668 53,468Increase in commercial paper 1,000 4,000 4,500Proceeds from long-term debt 120,350 166,400 166,400Repayment of long-term debt (139,554) (191,151) (192,836)Proceeds from issuance of bonds 91,878 112,184 153,378Redemption of bonds (53,515) (36,124) (36,124)Proceeds from issuance of shares 337 174 187Proceeds from issuance of shares to minority 871 28,757 30,298shareholdersProceeds from issuance of shares through public - - 51,362offering and allocation to a third party in SOFTBANK INVESTMENT CORPORATIONRedemption of preferred shares held by minority - (33,908) (33,908)shareholderCash dividends paid (2,452) (2,452) (2,457)Cash dividends paid to minority shareholders (2,497) (2,057) (2,160)Increase in cash receipt as collateral 20,000 90,000 90,000Others, net (602) (4,765) (4,336)Net cash (used in) provided by financing activities (44,885) 153,724 277,770 IV. Effect of exchange rate changes on cash and 5,656 (608) 1,474cash equivalents V. Net increase (decrease) in cash and cash 17,070 (55,157) (9,688)equivalents VI. Increase in cash and cash equivalents due - 12 12to newly consolidated companies VII. Decrease in cash and cash equivalents due (142) (45) (107,529)to exclusion of previously consolidated entities VIII. Increase in cash and cash equivalents due - 6 267to merger IX. Cash and cash equivalents at the beginning 320,194 437,132 437,132of the period X. Cash and cash equivalents at the end of the Y337,122 Y381,948 Y320,194period CONDENSED QUARTERLY FINANCIAL INFORMATION Condensed Statement of Income (Millions of yen; amounts less than one million yen are omitted.) Third Second First Fourth Third Second First quarter quarter quarter quarter quarter quarter quarter October 1, July 1, April 1, January 1, October 1, July 1, April 1, 2005 2005 2005 2005 2004 2004 2004 to to to June to March to to to June December September 30, 31, December September 30, 31, 30, 31, 30, 2005 2005 2005 2005 2004 2004 2004 Amount Amount Amount Amount Amount Amount Amount Net sales Y287,471 Y264,149 Y258,637 Y275,224 Y258,087 Y156,395 Y147,311Cost of sales 184,551 178,575 175,674 184,434 170,489 99,707 92,770Gross profit 102,920 85,573 82,962 90,789 87,597 56,687 54,540Selling, general and 79,407 77,983 86,153 101,822 95,134 59,658 58,359administrativeexpensesOperating income (loss) 23,512 7,590 (3,190) (11,032) (7,536) (2,970) (3,819)Non-operating income 2,784 4,442 3,122 10,704 10,465 1,846 3,068(Note)Non-operating expenses 15,068 12,499 12,950 10,978 10,963 13,114 10,918(Note)Ordinary income (loss) 11,228 (466) (13,017) (11,306) (8,034) (14,239) (11,669)Special income 98,934 35,916 22,914 22,240 16,665 40,690 9,763Special loss 50,475 10,309 9,136 24,496 18,272 8,526 2,365Income (loss) before income 59,687 25,141 760 (13,561) (9,641) 17,925 (4,271)taxes and minority interestIncome taxes - Current 9,695 11,623 8,230 12,470 9,524 3,817 8,927Income taxes - Refunded - - - 2,897 - - -Income taxes - Deferred 20,171 (187) (2,779) (6,022) (7,449) (4,542) (3,949)Minority interest 7,817 6,734 6,463 10,153 14,843 6,819 8,626Net income (loss) Y22,002 Y6,971 Y(11,153) Y(27,266) Y(26,560) Y11,830 Y(17,876) 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 quarterly basis for presentation purposes. Condensed Statement of Cash Flows (Millions of yen; amounts less than one million yen are omitted.) Third Second First Fourth Third Second First quarter quarter quarter quarter quarter quarter quarter October 1, July 1, April 1, January 1, October 1, July 1, April 1, 2005 2005 2005 2005 2004 2004 2004 to December to to June to March to December to to June 31, 2005 September 30, 2005 31,2005 31, 2004 September 30,2004 30, 2005 30, 2004 Amount Amount Amount Amount Amount Amount Amount I. Net cash provided Y61,949 Y232 Y(18,213) Y(15,280) Y(25,416) Y6,644 Y(11,937) by (used in) operating activities II. Net cash provided 86,627 (45,593) (28,703) (65,379) (17,352) (136,910) (23,301) by (used in) investing activities III. Net cash (used in) (46,728) (11,081) 12,925 124,046 34,503 20,469 98,752 provided by financing activities IV. Effect of exchange 3,866 639 1,150 2,082 (7,364) 2,977 3,778 rate changes on cash and cash equivalents V. Net increase 105,714 (55,802) (32,840) 45,468 (15,630) (106,819) 67,291 (decrease) in cash and cash equivalents VI. Increase in cash - - - - - 1 10 and cash equivalents due to newly consolidated companies VII. Decrease in cash - - (142) (107,483) - - (45) and cash equivalents due to exclusion of previously consolidated entities VIII. Increase in cash - - - 261 - - 6 and cash equivalents due to merger IX. Cash and cash 231,408 287,211 320,194 381,948 397,578 504,395 437,132 equivalents at the beginning of the period X. Cash and cash Y337,122 Y231,408 Y287,211 Y320,194 Y381,948 Y397,578 Y504,395 equivalents at the end of the period Note: Depreciation and Y19,519 Y21,643 Y20,942 Y24,763 Y22,847 Y8,956 Y9,850amortizationincluded in net cash providedby operating activities This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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