Announcement Regarding Revision of Non-consolidated Results Forecast for Fiscal 2001
We have revised our projected non-consolidated results, which were made public at our announcement of financial statements on May 26, 2000, for fiscal 2001, ended March 31, 2001 (hereinafter referred to as “the year”), as follows.
1. Revisions to the Non-consolidated Results Forecast for the Year
| Revenues | Ordinary Income | Net Income | |
|---|---|---|---|
| Formerly announced forecast (A) | 0 | -2,500 | 3,000 |
| Current revised forecast (B) | 0 | 7,000 | 4,000 |
| Difference (B-A) | - | 9,500 | 1,000 |
| Percent change | - | - | 33% |
| Results of previous year (ended March 31, 2000) (For reference) | 107,554 | 10,534 | 53,587 |
Please note that because, as of October 1, 1999, SOFTBANK CORP. became a pure holding company, non-consolidated sales are not provided for the year.
2. Reasons for Revision
(1) Ordinary Income
The main reason for the increase in non-consolidated ordinary income is that, due to the falling yen at the end of the year, the U.S. dollar denominated loan receivables to our overseas subsidiaries were recognized as exchange gains.
(2) Net Income
Due to the sale of a portion of our Cisco Systems K.K., shares, we logged a gain on sales of investment securities of approximately 30.8 billion yen, part of extraordinary gain. On the other hand, we suffered an evaluation loss on investment securities of approximately 30 billion yen, part of extraordinary losses, due to the devaluation of investment securities as a result of the reappraisal of the value of SB Sweden AB, which conducts foreign investment activities mainly in Europe and the United States (details below).
This reappraisal was based on the current fair value of our investment securities in an environment characterized by falling Nasdaq stock values and long-term stagnation in the IPO market. We have employed conservative accounting procedures following generally accepted accounting principles. The loss on the devaluation of investment securities (stated above) was not temporarily tax deductible. However, the amount of the loss is expected to be tax deductible in the future.
As a result of the above, net income for the year is expected to increase approximately 1 billion yen in comparison with the results forecast announced on May 26, 2000, to approximately 4 billion yen.
Reference
Summary of SB Sweden AB
| Official Company Name | SB Sweden AB (Headquarters: Stockholm, Sweden) |
|---|---|
| Representative | Masayoshi Son |
| Capital | US$12,000 (100% ownership) |
| Business Activities | Foreign investment, mainly in Europe and the United States |
| Main Investments | SOFTBANK Capital Partners Investment Inc. (Headquarters: Delaware, U.S.A.) |
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