Recognition of Loss on Valuation of Shares of Subsidiaries and Associates (as Special Loss) in Non-consolidated Financial Statements
SoftBank Group Corp. (SBG) announces that it expects to recognize a loss on valuation of shares of subsidiaries and associates as a special loss in its non-consolidated financial statements for the six-month period ended September 30, 2015 (April 1, 2015 to September 30, 2015) as follows.
SBG plans to execute temporary account closing for its non-consolidated financial statements for the period ended September 30, 2015.
1. Outline of Loss on Valuation of Shares of Subsidiaries and Associates
SBG expects to recognize a JPY 39,490 million loss on valuation of shares of subsidiaries and associates as a special loss in its non-consolidated financial statements for the six-month period ended September 30, 2015. The loss represents impairments of SBG's investments in subsidiaries and associates, including Artemis Corporation and SIMI Holdings, Inc.
Artemis Corporation indirectly owns interests in PT Trikomsel Oke Tbk. (“Trikomsel”), an Indonesian company, through its subsidiaries. Following the announcement by Trikomsel on October 2015 that it opened a discussion with its lenders on potential debt restructuring and setting forth the reasons for such a restructuring, SBG decided to record an impairment loss on shares in Artemis Corporation. SIMI Holdings, Inc. operates its investment business through its subsidiaries, and it is still in the start-up phase that involves upfront investments; therefore SBG also decided to record an impairment loss on shares of SIMI Holdings, Inc.
2. Impact on SBG's Consolidated Financial Results
Following the announcement by Trikomsel, SBG recognized a JPY 38,185 million impairment loss on shares and debt interests related to investments in Trikomsel as other non-operating loss in its consolidated financial statements for the six-month period ended September 30, 2015. SBG also recorded a JPY 1,029 million impairment loss on receivables related to handsets sold to Trikomsel by SBG's subsidiary as selling, general and administrative expenses.
In SBG's consolidated statements of income, the financial results of SIMI Holdings, Inc. are reflected as a subsidiary's results.
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