Press Releases 2002

Announcement Regarding Consolidated Results Forecastfor Fiscal Year 2002

Apr. 26, 2002

The following is an announcement of consolidated results forecast for the fiscal year ended March 31, 2002 (hereinafter referred to as “Fiscal Year 2002”).

1. Consolidated Results Forecast for Fiscal Year 2002

Unit: Millions of yen
  Revenue Operating Income/(Loss) Ordinary Income/(Loss) Net Income/(Loss)
FY2002 (forecast) [A] 405,000 (27,000) (35,000) (89,000)
FY2001 (For reference) [B] 397,105 16,431 20,065 36,631
Difference [A]-[B] 7,895 (43,431) (55,065) (125,631)
Percentage change (%) 1.9 - - -

2. Outline

Consolidated net loss of 89 billion yen is expected to be recognized for Fiscal Year 2002 as a result of the following:

  • 1. Recognizing valuation loss on investment securities to keep the healthy financial position.

  • 2. Start up cost of the broadband infrastructure business based on our broadband strategy.

(1) Operating Income

Operating loss of 18 billion yen is expected to be recognized mainly due to the establishment of the broadband infrastructure business such as BB Technologies Corporation (Headquarter: Chuo, Tokyo; Representative: Masayoshi Son), which is in charge of infrastructure for the broadband comprehensive service “Yahoo! BB”. Moreover, amid the severe economic environment over the world, the e-Finance segment and some other segments are expected to recognize operating loss. In total, operating loss of 27 billion yen is expected to be recognized for Fiscal Year 2002.

(2) Ordinary Income

While foreign exchange gain of 25 billion yen is expected to be recognized as yen has been depreciated, equity in losses mainly outside Japan of 17 billion yen (net) and interest expenses of 13 billion yen (net) are expected. Including other items, the non-operating loss of 8 billion yen is expected to be recognized. As a result, ordinary loss of 35 billion yen is expected to be recognized for the Fiscal Year 2002.

(3) Net Income

Gain on sale of investment securities of 50 billion yen (net) is expected to be recognized as we sold a part of its holdings in Yahoo! Inc., UTStarcom, Inc., E*TRADE Group, Inc. and others. On the other hand, valuation loss on investment securities of 110 billion yen is expected to be recognized mostly from investments outside Japan, which includes valuation loss of 40 billion yen for Asia Global Crossing Ltd., 17 billion yen for CNET Networks, Inc. and 26 billion yen from overseas fund activities. Due to the implementation of the new U.S. accounting standards, intangible assets of 18 billion yen (12 billion yen after tax) is expected to be written off from Key3Media Group, Inc. (NYSE: KME), which was deconsolidated in December 2001 and is now accounted for by the equity method. As a result, special loss of 83 billion yen is expected to be recognized. After the income taxes and other items, net loss of 89 billion yen is expected to be recognized for Fiscal Year 2002.

Due to the steady sales growth in the e-Commerce segment and Internet Culture segment, revenues for Fiscal Year 2002 is expected to increase by 1.9% year on year, to 405 billion yen.

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