Consolidated Financial Highli

RNS Number : 5457R

Softbank Corp

30 April 2009

 



Fiscal Year Ending March 2009 (April 1, 2008, to March 31, 2009)

Consolidated Financial Highlights

1. Consolidated Statements of Income

Record high operating income for 4 consecutive fiscal years, achieved raised forecasts.

•    Consolidated net sales were ¥2,673.0 billion (¥103.1 billion or 3.7% decrease year-on-year).

There was an increase in telecom service revenue at the Mobile Communications segment, on the other hand there was a decline in handset sales.

•    Record high operating income of ¥359.1 billion (¥34.8 billion or 10.7% increase year-on-year). Record in operating income has been renewed for 4 fiscal years, raised forecasts were achieved. 

In addition to favorable profit growth at Yahoo Japan Corporation, contributions were made by continued cost reductions at SOFTBANK TELECOM Corp. and SOFTBANK BB. Corp. 

•    Ordinary income was ¥225.6 billion (¥32.9 billion or 12.7% decrease year-on-year).

    Recorded \¥57.2 billion in equity in earnings under the equity-method related to the listing of Alibaba.com Limited in the previous fiscal year. 

•    Net income was ¥43.1 billion (¥65.4 billion or 60.3% decrease year-on-year).

    Sustain net income for the fiscal year, loss on additional entrustment for debt assumption of ¥75.0 billion and impairment loss of ¥28.9 billion were recorded in special loss for the fourth quarter of the fiscal year;.

2. Segment Information

Continued profit improvement by synergy between the Group's three telecommunication companies

<Mobile Communications>

•    Net sales were ¥1,562.8 billion (¥67.9 billion or 4.2% decrease year-on-year).

    Handset sales decreased due to decline in number of handsets sold, however telecom service revenue grew due to the increase in subscribers and end of first installment discount cycle. 

•    Operating income was ¥171.3 billion (¥3.1 billion or 1.8% decrease year-on-year).

<Broadband Infrastructure>    

•    Net sales were ¥235.1 billion (¥22.8 billion or 8.9% decrease year-on-year).

•    Operating income was ¥47.2 billion (¥7.5 billion or 19.0% increase year-on-year).

<Fixed-line Telecommunications>

•    Net sales were ¥363.6 billion (¥7.1 billion or 1.9% decrease year-on-year).

•    Operating income was ¥18.9 billion (15.6 billion or 467.9% increase year-on-year).

<Internet Culture>

•    Net sales were ¥254.2 billion (¥6.5 billion or 2.7% increase year-on-year).

•    Operating income was ¥125.0 billion (\9.8 billion or 8.6% increase year-on-year).

  3. Consolidated Balance Sheets / Consolidated Statements of Cash Flows

Free cash flow was ¥181.5 billion, achieved the raised forecast

•    Total assets were ¥4,386.6 billion (¥172.2 billion or 3.8% decline from the end of the previous fiscal year).

The principal reason was a decrease in cash and deposits due to decrease in investment securities associated with a decline in the share price of Yahoo! Inc. and. the acquisition of treasury stock by Yahoo Japan Corporation.

•    Total liabilities were ¥3,561.8 billion (¥148.3 billion or 4.0% decline from the end of the previous fiscal year).

In addition to the redemption of corporate bonds by ¥109.1 billion, borrowings, and payables decreased. 

•    Total equity was ¥824.7 billion （¥23.9 billion or 2.8% decrease from the end of the previous fiscal year).

    Retained earnings increased by ¥40.4 billion, however due to the decline in the share price of Yahoo! Inc. in the U.S., unrealized gain on available-for-sale securities decreased by ¥49.5 billion and the yen's appreciation at the end of the fiscal year resulted in a ¥37.9 billion decrease in foreign currency translation adjustments. 

•    Shareholders' equity ratio was 8.5% (0.1 percentage point improvement from the end of the previous fiscal year).

•    Net cash provided by operating activities was ¥447.8 billion (compared to ¥158.2 billion provided in the previous fiscal year). 

    Receivables trade decreased by ¥1.6 billion, (compared to ¥309.1 billion increased provided in the previous fiscal year,) and improved ¥310.8 billion year-on-year. 

•    Net cash used in investing activities was ¥266.2 billion (compared to ¥322.4 billion used in investing activities in the previous fiscal year).

•    Free cash flow*1 was ¥181.5 billion positive (compared to ¥164.2 billion negative in the previous fiscal year). 

  Achieved the earnings forecasts disclosed at the 2nd quarter earnings results which were raised twice after that.

•    Net cash used in financing activities was ¥210.3 billion (compared to ¥284.7 billion provided by financing activities in the previous fiscal year).

*1. The combined net cash flow from operating activities and investing activities. 

4. Mobile Communications Segment: Key Indicators

No. 1 in net additions in subscribers for 2 consecutive years*2, achieved double-digit growth

•    Total number of subscribers as of the end of March 2009 was 20.63 million (2.04 million or 11.0 % increase from the end of the previous fiscal year).

•    No. 1 in net additions for 2 consecutive years.

•    No. 1 in monthly net additions for 23 consecutive months.

•    3G ratio as of the end of March 2009 was 90.4% (14.8 percentage point increase from the end of the previous fiscal year).

•    Total ARPU*3 for the fiscal year was ¥4,070 (a decline of ¥580 from the previous fiscal year).

•    Voice ARPU for the fiscal year was ¥2,320 (a decline of ¥830 from the previous fiscal year).

•    Data ARPU for the fiscal year was ¥1,740 (an increase of ¥250 from the previous fiscal year).

•    The churn rate for the fiscal year was 1.00% (0.32 percentage point improvement from the previous fiscal year).

•    The upgrade rate for the fiscal year was 1.71% (0.49 percentage point improvement from the previous fiscal year).

*2.The fiscal year ending March 2008 and the fiscal year ending march 2009. 

*3. Average Revenue Per User

5. Progress on Earnings Forecasts for Fiscal Year Ending March 2010

Forecast a double-digit growth in consolidated operating income for the next fiscal year 

•    Expect revenue and profit growth, forecast operating income increase to ¥420.0 billion (an increase of 17% from this fiscal year).

Free cash flow for the next fiscal year is forecasted to expand to ¥250.0 billion.

•    The forecast of consolidated free cash flow for the next fiscal year is ¥250.0 billion (an increase of 38% from this fiscal year).

Generate approximately ¥1 trillion of free cash flow (over the next 3 fiscal years) by reinforcing cash flow 

focused operations.

•    Aim to generate approximately ¥1 trillion of free cash flow for the fiscal year ending in 2010 to the fiscal year ending in 2012.

Aim to reduce net interest-bearing debt by half after two fiscal years, reduce to zero after 5 fiscal years

•    Set target for reducing the amount of net interest-bearing debt by half after two fiscal years (the fiscal year ending March 2012) and to zero after 5 fiscal years (the fiscal year ending March 2014). 

•    No major investments to be made until the achievement of zero net interest-bearing debt. 

Revised the dividend policy, dividend increase for the next fiscal year

•    The dividend for this fiscal year is scheduled to be ¥2.5 per share. 

•    For the next fiscal year, great improvements in the free cash flow are forecasted. In order to return profits to the shareholders the dividend for the next fiscal year is scheduled to be double the amount the ¥5.0 per share. 

• After the next fiscal year, increased dividends are scheduled to be distributed in accordance with the aimed reduction in net interest-bearing debt.

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