Upward Revision of Earnings Forecast

SOFTBANK CORP.

SOFTBANK CORP. (hereafter “the Company”) announces that it has made the following revision to the consolidated earnings forecast for the fiscal year ending March 31, 2011 (from April 1, 2010 to March 31, 2011), previously announced on February 2, 2010, in view of the latest earnings trends.

Revision of the consolidated earnings forecast for FY2010 ending March 31, 2011 (from April 1, 2010 to March 31, 2011)

(Billions of yen)
(Ref) Actual of the previous fiscal year (FY2009 ended March 31, 2010) Previous forecast
(A) 		Latest forecast
(B) 		Difference
(B-A) 		Difference
ratio
(%)
Consolidated
operating income 		465.8 500.0 600.0 100.0 20.0

Background of revision

The Group had previously forecasted consolidated operating income of JPY 500.0 billion for the fiscal year ending March 31, 2011. The Group has upwardly revised the forecast to JPY 600.0 billion, mainly reflecting the strong earnings momentum at the Mobile Communications segment.

The Group is strengthening its cash-flow-oriented management, and aims to reduce its JPY 1,939,520 million of net interest-bearing debt *1 as of the end of March 2009 by half over three years (by the end of March 2012) and to zero over six years (by the end of March 2015). To achieve this, the Group plans to generate an aggregate total of at least JPY 1 trillion in free cash flow *2 over the three years from fiscal 2009 (period from April 1, 2009, to March 31, 2012).

The Company will continue to pursue further growth and profit opportunities expansion through the generation of Group-wide synergies, while enhancing the stability of its financial base.

  • *1 Net interest-bearing debt: interest-bearing debt-cash position.
    Interest-bearing debt: short-term borrowings + commercial paper + current portion of corporate bonds + corporate bonds + long-term borrowings. Lease obligations are not included.
    This excludes the corporate bonds (WBS Class B2 Funding Notes, issued by J-WBS Funding K.K.) with a face value of JPY 27,000 million acquired by the Company during the previous fiscal year that were issued under the whole business securitization financing scheme associated with the acquisition of Vodafone K.K.
    Cash position: cash and cash deposits + marketable securities recorded as current assets (excludes Yahoo! Inc. shares held by a subsidiary of the Company in the United States of America).
  • *2 Free cash flow: cash flows from operating activities + cash flows from investing activities.

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