Capital and Business Alliance with Yamada Denki Co., Ltd.
SoftBank Corp. (the “Company”) announces that the Company has reached an agreement on the capital and business alliance (the “Capital and Business Alliance”) with Yamada Denki Co., Ltd. (“Yamada Denki”) today as follows. The Company will underwrite capital increase by third-party allotment of treasury stock disposed by Yamada Denki. Total shares to be underwritten will be 48,324,400 treasury stock (ownership ratio: 5.00%*1) at JPY 471 per share, amounting to JPY 22,761 million in total.
- *1Calculated based on Yamada Denki's total number of shares outstanding (966,489,740 shares) as of March 31, 2015.
- *1
1. Purpose of the Capital and Business Alliance
Yamada Denki, the leading company in the home electrical appliances industry and the Company have worked to create and develop a new market through the long-standing business relationship, beginning with sale of PC software, to sale of high-speed Internet connection services via ADSL and optical fiber, as well as sale of mobile communications services and mobile devices and accessories.
However, due to a high penetration of telecommunications services with 155.12 million domestic mobile communications subscribers*2 in addition to changes of domestic economic structure evoked by demographic changes such as population aging and decline, it is expected that the future growth of domestic telecommunications service market will be more moderate than before.
Under such a circumstance, the Company has decided to enter into the Capital and Business Alliance with Yamada Denki to steadily develop its domestic business, aiming to 1) leverage Yamada Denki's nationwide sales channels and further enhance sales force for mobile communications services, mobile devices and accessories, and high-speed Internet connection services among others and 2) create a new market using ICT by combining the Group's businesses — telecommunications, renewable energy, and robotics — and smart house business of Yamada Denki. The Company believes that owning the shares of Yamada Denki will contribute to the stronger relationship with Yamada Denki than ever, and swiftly bring about a fruitful result.
- *2The number of mobile communications service subscribers for NTT DOCOMO, INC., KDDI CORPORATION, and SoftBank Mobile Corp. as of December 31, 2014 published by the Telecommunications Carriers Association plus the number of mobile communications (including PHS) service subscribers at Ymobile Corporation as of December 31, 2014.
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2. Overview of Yamada Denki
| (1) Name | Yamada Denki Co., Ltd. | |||
|---|---|---|---|---|
| (2) Address | 1-1, Sakae-cho, Takasaki, Gunma | |||
| (3) Name and title of representative | Noboru Yamada, President CEO | |||
| (4) Business description | Sale and repair of home electrical appliances, audiovisual apparatuses, health appliances, nursing care-related appliances, information equipment, and mobile phones of domestic and overseas major manufacturers, rental and sale of videos, sale of books and sale and renovation of houses | |||
| (5) Common stock | JPY 71.05 billion (as of March 31, 2015) | |||
| (6) Founded | September 1983 | |||
| (7) Principal shareholders and shareholding ratio |
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| (8) Relationship between Yamada Denki and the Company | Capital relationship | Not applicable | ||
| Personnel relationship | Not applicable | |||
| Business relationship | The Company's subsidiaries SoftBank Mobile Corp. and SoftBank Commerce & Service Corp. have business transactions with Yamada Denki. | |||
| Status as a related party | Not applicable | |||
| (9) Consolidated operating results and financial position (unit: JPY million, amounts less than one million yen are omitted) | ||||
| Fiscal year ended March 2012 | Fiscal year ended March 2013 | Fiscal year ended March 2014 | ||
| Net sales | 1,835,454 | 1,701,489 | 1,893,971 | |
| Operating income | 88,978 | 33,930 | 34,265 | |
| Ordinary income | 102,225 | 47,906 | 50,187 | |
| Net income | 58,265 | 22,203 | 18,666 | |
| Net assets | 526,743 | 555,391 | 553,354 | |
| Total assets | 937,841 | 1,138,389 | 1,196,288 | |
3. Schedule
| Agreement on the Capital and Business Alliance | May 7, 2015 |
|---|---|
| Launch of the Business Alliance | May 7, 2015 |
| Payment date | May 25, 2015 (planned) |
4. Impact on Financial Results
The impact of the Capital and Business Alliance on the Company's consolidated financial results for the fiscal year ending March 2016 will be minor. The Company expects this alliance to contribute to the performance improvement of its domestic business in the medium- to long-term period.
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