23rd May 2006 07:04
Softbank Corp23 May 2006 SOFTBANK CORP. CONSOLIDATED FINANCIAL REPORT For the fiscal year ended March 31, 2006 Tokyo, May 10, 2006 FINANCIAL HIGHLIGHTS 1. Results of Operations (Millions of yen; amounts less than one million yen are omitted.) Net sales Operating income Ordinary income Net income(loss) (loss) (loss) Amount % Amount % Amount % Amount % FY 2006 Y1,108,665 32.5 Y62,299 - Y27,492 - Y57,550 - April 2005 through March 2006 FY 2005 Y837,018 61.7 Y(25,359) - Y(45,248) - Y(59,871) - April 2004 through March 2005 Net income(loss) Net income per Return on Equity Ordinary Ordinary per share- primary share- diluted (%) income(loss) / income(loss)/ (yen) Total Net sales (yen) assets (%) (%) FY 2006 Y54.36 Y51.62 27.4 1.6 2.5 April 2005 through March 2006 FY 2005 Y(171.03) - (28.9) (2.9) (5.4) April 2004 through March 2005 Note: 1. Equity in earnings under the equity method, net: Fiscal Year ended March 31, 2006: Y 9,521 millionFiscal Year ended March 31, 2005: Y 5,425 million 2. Weighted average number of shares issued and outstanding during theyear (consolidated) Fiscal Year ended March 31, 2006: 1,054,478,501 sharesFiscal Year ended March 31, 2005: 351,418,709 shares Weighted average number of shares issued and outstanding during 2006 wascalculated supposing the share split was conducted at the beginning of thefiscal year. 3. There are changes in accounting policies for the fiscal year endedMarch 31, 2006. 4. 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 Shareholders' Equity ratio (%) Shareholders' equity equity per share (yen) FY 2006 Y1,808,398 Y242,767 13.4 Y229.88March 31, 2006 FY 2005 Y1,704,853 Y178,016 10.4 Y505.86March 31, 2005 Note: Number of shares outstanding (consolidated) As of March 31, 2006: 1,055,082,087 sharesAs of March 31, 2005: 351,457,170 shares 3. Cash Flows (Millions of yen; amounts less than one million yen are omitted.) Operating Investing Financing Cash and cash activities activities activities equivalents at the end of the period FY 2006 Y57,806 Y27,852 Y30,078 Y446,694 April 2005 through March 2006 FY 2005 Y(45,989) Y(242,944) Y277,770 Y320,194 April 2004 through March 2005 4. Scope of Consolidation at March 31, 2006 Consolidated subsidiaries: 153Equity-method non-consolidated subsidiaries: 3Equity-method affiliates: 84 5. Changes in Scope of Consolidation Consolidated subsidiaries:Newly added: 23Excluded: 23 Equity-method non-consolidated subsidiaries and affiliates:Newly added: 15Excluded: 36 CONSOLIDATED BALANCE SHEETS (Millions of yen; amounts less than one million yen are omitted.) March 31, 2006 March 31, 2005 Increase Amount % Amount % (Decrease) ASSETS Current assets:Cash and deposits Y446,306 Y287,978 Y158,327Notes and accounts receivable - trade 188,921 168,262 20,658Marketable securities 4,372 39,403 (35,031)Inventories 50,597 47,224 3,372Deferred tax assets 14,107 3,025 11,082Other current assets 48,250 67,542 (19,292)Less: (7,424) (7,319) (104)Allowance for doubtful accountsTotal current assets 745,130 41.2 606,117 35.5 139,012 Non-current assets:Property and equipment, netBuildings and structures 57,304 56,860 444Telecommunications equipment 194,970 198,598 (3,628)Telecommunications service lines 91,724 99,133 (7,408)Land 19,404 19,396 7Construction-in-progress 27,875 49,354 (21,479)Others 27,325 28,373 (1,048)Total tangible assets 418,605 23.1 451,717 26.5 (33,111) Intangible assets, net:Goodwill 44,136 48,313 (4,176)Other intangibles 58,149 55,227 2,922Total intangible assets 102,286 5.7 103,540 6.1 (1,254) Investments and other assets:Investment securities and 464,650 434,441 30,209investments in partnershipsDeferred tax assets 25,039 40,472 (15,432)Other assets 61,241 75,728 (14,487)Less: Allowance for doubtful accounts (9,548) (8,669) (879)Total investments and other assets 541,382 29.9 541,972 31.8 (590) Deferred charges 993 0.1 1,504 0.1 (510) Total assets Y1,808,398 100.0 Y1,704,853 100.0 Y103,545 CONSOLIDATED BALANCE SHEETS (Millions of yen; amounts less than one million yen are omitted.) March 31, 2006 March 31, 2005 Increase Amount % Amount % (Decrease)LIABILITIES ANDSHAREHOLDERS' EQUITYCurrent liabilities:Notes and accounts payable - trade Y60,432 Y63,684 Y(3,251)Short-term borrowings 218,300 181,186 37,113Commercial paper 10,400 15,500 (5,100)Current portion of corporate bonds 11,094 48,145 (37,051)Accounts payable - other 114,112 228,264 (114,141)and accrued expensesIncome taxes payable 29,137 21,600 7,536Deferred tax liabilities - 527 (527)Cash receipts as collateral 100,000 100,000 -Other current liabilities 46,564 31,887 14,677Total current liabilities 590,052 32.6 690,796 40.5 (100,743) Long-term liabilities:Corporate bonds 456,128 378,248 77,880Long-term debt 209,370 230,837 (21,466)Deferred revenue 41,840 - 41,840Deferred tax liabilities 48,642 57,419 (8,777)Accrued retirement benefits 17,279 17,359 (79)Other liabilities 100,970 83,232 17,738Total long-term liabilities 874,232 48.4 767,096 45.1 107,135Total liabilities 1,464,285 81.0 1,457,893 85.6 6,391 Minority interest 101,346 5.6 68,943 4.0 32,402in consolidated subsidiaries Shareholders' equity:Common stock 162,916 9.0 162,397 9.5 519Pre-stock issuance paid-in capital 5 0.0 - - 5Additional paid-in capital 187,303 10.3 186,783 10.9 519Accumulated deficit (218,561) (12.1) (273,362) (16.0) 54,801Net unrealized gain on other securities 129,051 7.1 136,662 8.0 (7,610)Net unrealized loss on derivative instruments (36,840) (2.0) (41,056) (2.4) 4,215Foreign currency translation adjustments 19,062 1.1 6,697 0.4 12,365Less: Treasury stock (169) (0.0) (106) (0.0) (63)Total shareholders' equity 242,767 13.4 178,016 10.4 64,751Total liabilities and Y1,808,398 100.0 Y1,704,853 100.0 Y103,545shareholders' equity CONSOLIDATED STATEMENTS OF OPERATIONS (Millions of yen; amounts less than one million yen are omitted.) FY 2006 FY 2005 Increase April 2005 through April 2004 through (Decrease) March 2006 March 2005 Amount % Amount % Net sales Y1,108,665 100.0 Y837,018 100.0 Y271,646 Cost of sales 723,812 65.3 547,402 65.4 176,409Gross Profit 384,853 34.7 289,615 34.6 95,237Selling, general and administrative expenses 322,553 29.1 314,975 37.6 7,578Operating income (loss) 62,299 5.6 (25,359) (3.0) 87,658 Interest income 2,136 2,398 (262)Equity in earnings under the equity method 9,521 5,425 4,096Income from investments in partnerships, net 777 3,711 (2,934)Other non-operating income 3,321 4,931 (1,609)Non-operating income 15,756 1.4 16,466 2.0 (709) Interest expense 27,005 22,971 4,033Foreign exchange loss 6,320 4,040 2,279Other non-operating expenses 17,237 9,343 7,894Non-operating expenses 50,564 4.5 36,356 4.4 (14,207) Ordinary income (loss) 27,492 2.5 (45,248) (5.4) 72,740 Gain on sale of investment securities 172,306 59,121 113,184Dilution gain from changes in equity interest 21,846 26,269 (4,423)Other special income 4,371 3,969 401Special income 198,524 17.9 89,360 10.7 (109,163) Valuation loss on investment securities 7,188 7,161 26Loss on contract revision relating to sales 25,495 - 25,495operation changeImpairment loss in fixed-line telecommunication 18,052 - 18,052businessRestructuring charge relating to BBTV business 14,749 - 14,749Penalty for unfulfilled contract commitment 3,565 6,147 (2,582)Refinance arrangement fee 3,153 - 3,153Other special losses 24,326 40,351 (16,024)Special loss 96,532 8.7 53,660 6.4 (42,871) Income (loss) before income taxes 129,484 11.7 (9,548) (1.1) 139,032and minority interest Income taxes:Current 40,753 3.7 34,740 4.2 6,013Refunded - - 2,897 0.3 (2,897)Deferred 1,837 0.2 (21,963) (2.6) 23,801Minority interest 29,342 2.6 40,444 4.8 (11,101) Net income (loss) Y57,550 5.2 Y(59,871) (7.2) Y117,422 CONSOLIDATED STATEMENTS OF ADDITIONAL PAID-IN CAPITAL AND RETAINED EARNINGS (Millions of yen; amounts less than one million yen are omitted.) FY 2006 FY 2005 April 2005 through April 2004 through March 2006 March 2005ADDITIONAL PAID-IN CAPITAL Additional paid-in capital Y186,783 Y186,690at the beginning of the year Increase due to issuance of shares 519 93 Additional paid-in capital Y187,303 Y186,783at the end of the year (Millions of yen; amounts less than one million yen are omitted.) FY 2006 FY 2005 April 2005 through April 2004 through March 2006 March 2005ACCUMULATED DEFICIT Accumulated deficit Y(273,362) Y(210,625)at the beginning of the year Net income (loss) 57,550 (59,871)Cash dividends (2,460) (2,459)Bonuses to directors (86) (176)Net adjustments to retained earnings 13 (98)due to change in scope of theconsolidationIncrease due to merger - 17Decrease due to merger (215) (147)Accumulated deficit Y(218,561) Y(273,362)at the end of the year Note: In accordance with the accounting principles generally accepted in Japan,the cumulative effect arising from any changes in the scope of consolidation istreated as an adjustment to retained earnings in the consolidated statements ofadditional paid-in capital and retained earnings. CONSOLIDATED STATEMENTS OF CASH FLOWS (Millions of yen; amounts less than one million yen are omitted.) FY 2006 FY 2005 April 2005 through March April 2004 through March 2006 2005I Cash flows from operating activities: Income (loss) before income taxes and minority interest Y129,484 Y(9,548) Adjustments to reconcile income (loss) before income taxesand minority interest to net cash provided by (used in)operating activities:Depreciation and amortization 80,417 66,417Impairment loss 36,478 -Equity in earnings under the equity method, net (9,521) (5,425)Dilution gain from changes in equity interest, net (21,806) (25,200)Valuation loss on investment securities 7,188 7,161Gain on sale of marketable and investment securities, net (171,864) (56,049)Foreign exchange loss, net 5,497 5,324Interest and dividend income (2,402) (2,862)Interest expense 27,005 22,971Changes in operating assets, liabilities and others(Increase) in receivables - trade (23,333) (15,840)Increase in payables - trade 4,331 2,371Increase in deferred revenue 40,000 -(Increase) in other receivables (9,864) (70,813)(Decrease) increase in other payables (26,773) 97,095Other, net 40,524 (17,519) Sub-total 105,361 (251) Interest and dividends received 3,301 2,506Interest paid (22,332) (17,924)Income taxes paid (31,588) (31,533)Refund of income taxes 3,064 1,213Net cash provided by (used in) operating activities 57,806 (45,989) - Continued - CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) (Millions of yen; amounts less than one million yen are omitted.) FY2006 FY2005 April 2005 through March April 2004 through March 2006 2005 II Cash flows from investing activities:Purchase of property and equipment and intangibles Y(189,490) Y(90,943)Purchase of marketable and investment securities (88,479) (29,582)Proceeds from sale of marketable and investment 178,022 57,099securitiesAcquisition of interests in subsidiaries newly (4,525) (172,320)consolidated, net of cash acquiredSale of interests in subsidiaries previously 39,826 34,840consolidated, netProceeds from sales of interests in consolidated 29,232 8,110subsidiariesIncrease in loan receivables (17,425) (21,387)Collection of loans 16,583 9,105Purchase of business rights and others - (13,113)Proceeds from sale of modem rental business 45,000 -Other, net 19,107 (24,753)Net cash provided by (used in) investing activities 27,852 (242,944) III Cash flows from financing activities:Increase in short-term borrowings, net 32,043 53,468(Decrease) increase in commercial paper (5,100) 4,500Proceeds from long-term debt 125,550 166,400Repayment of long-term debt (158,211) (192,836)Proceeds from issuance of bonds 91,849 153,378Redemption of bonds (53,547) (36,124)Proceeds from issuance of shares 1,038 187Proceeds from issuance of shares to minority 1,619 30,298shareholdersProceeds from issuance of shares through public - 51,362offering and allocation to a third party in SOFTBANKINVESTMENT CORPORATIONRedemption of preferred shares held by minority - (33,908)shareholderCash dividends paid (2,456) (2,457)Cash dividends paid to minority shareholders (2,442) (2,160)Increase in cash receipts as collateral, net - 90,000Other, net (264) (4,336)Net cash provided by financing activities 30,078 277,770 IV Effect of exchange rate changes 10,905 1,474on cash and cash equivalents V Net increase (decrease) increase in cash and 126,642 (9,688)cash equivalents VI Increase in cash and cash equivalents due to - 12newly consolidated companies VII Decrease in cash and cash equivalents due to (142) (107,529)exclusion of previously consolidated entities VIII Increase in cash and cash equivalents due to - 267merger IX Cash and cash equivalents at the beginning of 320,194 437,132the year X Cash and cash equivalents at the end of the Y446,694 Y320,194year CONDENSED QUARTERLY FINANCIAL INFORMATIONCondensed Statements of Operations (Millions of yen; amounts less than one million yen are omitted.) Fourth Third Second First Fourth Third Second First quarter quarter quarter quarter quarter quarter quarter quarter January 1, October 1, July 1, April 1, January 1, October 1, July 1, April 1, 2006 to 2005 to 2005 to 2005 to 2005 to 2004 to 2004 to 2004 to March December September June March December September June 31, 31, 30, 30, 31, 31, 30, 30, 2006 2005 2005 2005 2005 2004 2004 2004 Amount Amount Amount Amount Amount Amount Amount Amount Net sales Y298,406 Y287,471 Y264,149 Y258,637 Y275,224 Y258,087 Y156,395 Y147,311Cost of sales 185,010 184,551 178,575 175,674 184,434 170,489 99,707 92,770Gross profit 113,395 102,920 85,573 82,962 90,789 87,597 56,687 54,540Selling, general and 79,009 79,407 77,983 86,153 101,822 95,134 59,658 58,359administrative expensesOperating income (loss) 34,386 23,512 7,590 (3,190) (11,032) (7,536) (2,970) (3,819)Non-operating income 6,227 2,784 4,442 3,122 10,704 10,465 1,846 3,068(Note)Non-operating expenses 10,867 15,068 12,499 12,950 10,978 10,963 13,114 10,918(Note)Ordinary income (loss) 29,747 11,228 (466) (13,017) (11,306) (8,034) (14,239) (11,669)Special income 40,758 98,934 35,916 22,914 22,240 16,665 40,690 9,763Special loss 26,610 50,475 10,309 9,136 24,496 18,272 8,526 2,365Income (loss) before 43,895 59,687 25,141 760 (13,561) (9,641) 17,925 (4,271)income taxes and minorityinterestIncome taxes - Current 11,204 9,695 11,623 8,230 12,470 9,524 3,817 8,927Income taxes - Refunded - - - - 2,897 - - -Income taxes - Deferred (15,366) 20,171 (187) (2,779) (6,022) (7,449) (4,542) (3,949)Minority interest 8,326 7,817 6,734 6,463 10,153 14,843 6,819 8,626Net income (loss) Y39,730 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 quarterlybasis for presentation purposes. Condensed Statements of Cash Flows (Millions of yen; amounts less than one million yen are omitted.) Fourth Third Second First Fourth Third Second First quarter quarter quarter quarter quarter quarter quarter quarter January 1, October 1, July 1, April 1, January 1, October 1, July 1, April 1, 2006 to 2005 to 2005 to 2005 to 2005 to 2004 to 2004 to 2004 to March December September June March December September June 31, 31, 30, 30, 31, 31, 30, 30, 2006 2005 2005 2005 2005 2004 2004 2004 Amount Amount Amount Amount Amount Amount Amount Amount I Net cash Y13,837 Y61,949 Y232 Y(18,213) Y(15,280) Y(25,416) Y6,644 Y(11,937) provided by (used in) operating activities II Net cash 15,521 86,627 (45,593) (28,703) (65,379) Y(17,352) Y(136,910) (23,301) provided by (used in) investing activities III Net cash 74,963 (46,728) (11,081) 12,925 124,046 34,503 20,469 98,752 provided by (used in) financing activities IV Effect of 5,248 3,866 639 1,150 2,082 (7,364) 2,977 3,778 exchange rate changes on cash and cash equivalents V Net increase 109,571 105,714 (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 337,122 231,408 287,211 320,194 381,948 397,578 504,395 437,132 equivalents at the beginning of the period X Cash and cash Y446,694 Y337,122 Y231,408 Y287,211 Y320,194 Y381,948 Y397,578 Y504,395 equivalents at the end of the period Note: Depreciation andamortization included innet cash provided byoperating activities Y18,311 Y19,519 Y21,643 Y20,942 Y24,763 Y22,847 Y8,956 Y9,850 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Streaksai