Press Releases 2001

Announcement Regarding Consolidated Interim Results Forecast

Oct. 26, 2001

The following is an announcement of consolidated results forecast for the interim period, from April 1, 2001 to September 30, 2001 (hereinafter referred to as the “Interim Period”).

1. Consolidated Results Forecast for the Interim Period

Unit: Millions of yen
  Sales (Consolidated) Operating Income (Consolidated) Ordinary Income (Consolidated) Net Income (Consolidated)
FY2002 Interim (forecast) [A] 185,000 (11,000) (18,000) (55,000)
FY2001 Interim (For reference) [B] 180,236 4,703 1,037 36,310
Difference [A]-[B] 4,764 (15,703) (19,037) (91,310)
Percentage change (%) 2.6 - - -

2. Outline

Consolidated net loss of approximately 55 billion yen is expected to be recognized for the Interim Period. As the climate for the stock market has become sluggish, valuation loss on investment securities of approximately 45 billion yen regarding investment securities held by SOFTBANK Group is expected to be recognized as special loss for the Interim Period. Such loss is mostly related to investments outside Japan.

As existing businesses have exhibited a steady growth, consolidated sales are expected to increase to approximately 185 billion yen. Consolidated operating loss of approximately 11 billion yen is expected to be recognized since new businesses are still at a start-up stage. While exchange gain is expected to be recognized, such gain is expected to be offset by equity losses. As a result, consolidated ordinary loss of approximately 18 billion yen is expected to be recognized.

In addition, the investments outside Japan (excluding investments managed by SOFTBANK INVESTMENT CORPORATION) from now on will be managed pursuant to the policy mentioned below:

  • 1. Regarding investment activities mainly in Europe and Latin America, we will concentrate on fostering businesses already invested, and new investments will be held off for the time being.

  • 2. Among new investments in the United States, strategically important investments will be continued, but we will take a prudent attitude towards new investments for the time being, taking into consideration the market conditions to date.

  • 3. Investment activities in Asia will be continued mainly by SB Asia Infrastructure Fund. Along with this change in policy, following measurements are in the process of implementation.

    • 1. Reduce the number of offices from 11 to 3 for overseas operations.

    • 2. Reduce overseas staff by approximately two-thirds (about 70 people). Operational cost saving is expected to be approximately 2.7 billion yen per year.

      Related cost of approximately 1.7 billion yen is expected to be recognized during the Interim Period.

This Press Release may contain “material information” as defined in Article 166 of the Securities and Exchange Law (“Material Information”). Please note that any person who has obtained information by reading a Press Release (including this one) containing Material Information may be subject to the “Insider Trading” Law if such person engages in purchase or sale of securities of the Company and/or affiliates thereof, within twelve (12) hours of the release of such Material Information pursuant to the Cabinet Order for Enforcement of the Securities and Exchange Law.

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