MIRA INFORM REPORT

 

 

Report Date :

27.06.2008

 

IDENTIFICATION DETAILS

 

Name :

SOFTBANK TELECOM CORP

 

 

Registered Office :

Tokyo Shiodome Bldg, 1-9-1 Higashishimbashi Minatoku Tokyo 105-0021

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2008

 

 

Date of Incorporation :

March 1999

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Telecommunications Business

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa

 

RATING

STATUS

PROPOSED CREDIT LINE

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

Large

 

Maximum Credit Limit :

YEN 10,957.1 Million

 

 

Status :

Very Good

 

 

Payment Behaviour :

Regular

 

 

 

name & address

 

SOFTBANK TELECOM CORP

REGD NAME:    Softbank Telecom KK

MAIN OFFICE:  Tokyo Shiodome Bldg, 1-9-1 Higashishimbashi Minatoku Tokyo 105-0021 JAPAN

                        Tel: 03-6888-8000     Fax: 03-3572-5540

 

URL:                 http://www.softbanktelecom.co.jp/

E-Mail address:info@softbanktelecom.co.jp

 

 

ACTIVITIES  

 

Telecommunications business

 

 

BRANCHES   

Nil

 

 

OFFICER(S)  

 

MASAYOSHI SON, PRES                     

Ken Miyauchi, v pres

Jun’ichi Miyakawa, s/mgn dir                 

Tetsuya Yuge, s/mgn dir

Junji Tokunaga, mgn dir                         

Kazuhiko Kasai, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 321,470 M

PAYMENTS      REGULAR                     CAPITAL           Yen 100 M

TREND             STEADY                       WORTH            Yen 220,468 M

STARTED         1999                             EMPLOYES      4,199

 

 

COMMENT    

 

TELECOMMUNICATIONS BUSINESS. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY

BUSINESS ENGAGEMENTS.

 

 

 

 

 

MAX CREDIT LIMIT

 

YEN 10,957.1 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

           

The subject company was established on the basis of a division separated from Japan Telecom       Corp.  In July 2004 Japan Telecom jointed Softbank Corp group.  The corporate name changed as     captioned in Oct 2006.  In Feb 2007 merged Softbank Telecom Sales Corp.  Specializes in telecommunications business.  The parent operates Yahoo Internet.

           

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2008 fiscal term amounted to Yen 321,470 million, a slight down from Yen 322,207 million in the previous term.  Competition on mobile phone charges was severe.  Downward revenues occurred.  The operations continued in the red to register Yen 6,895 million recurring loss and Yen 35,211 million net losses for the term.  This is referred to heavy investment costs and depreciation costs. 

 

For the current term ending Mar 2009 the operations are expected to come back to profitability but the company has not announced estimated figures, on a 5% rise in turnover, to Yen 337,000 million.  The figures could be revised.

           

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 10,957.1 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:　            Mar 1999

Legal Status:               Limited Company (Kabushiki Kaisha)

Authorized:                  575,421,000 shares

Issued:                          308,655,424 shares

Sum:                              Yen 100 million

 

 

Major shareholders (%)

Softbank Corp*(81.7), SBBM (18.3)

 

No. of shareholders: 2

* Holding company started out as wholesaler of PC software & publisher of PC magazines, founded 1981, listed Tokyo S/E, capital Yen 187,422 million, turnover Yen 2,776,168 million, operating profit Yen 324,287 million, recurring profit Yen 258,614 million, net profit Yen 108,624 million, total assets Yen 4,558,901 million, net worth Yen 383,742 million, employees 19,040, pres Masayoshi Son

           

Nothing detrimental is known as to ^the commercial morality of executives.

 

 

 

 

OPERATION

 

Activities: Telecommunications business, owned by Softbank Corp (100%).

 

           

Clients

 

 Business firms, consumers, other

No. of accounts: Unavailable

Domestic areas of activities: Nationwide

 

           

Suppliers

 

 [Telecommunication carriers] Softbank Mobile, Softbank BB, NTT West Japan,

Tokyo Star, Toshiba Information System, other.

 

 

Payment record

 

Regular

 

 

Location

 

Business area in Tokyo.  Office premises at the caption address are leased and maintained satisfactorily.

 

 

Bank References

 

Deutche Bank (Tokyo)

Mizuho Corporate Bank (H/O)

Relations: Satisfactory^Money deposits & transfers only

 

 

FINANCES: (In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2008

31/03/2007

INCOME STATEMENT

 

 

 

  Annual Sales

　

321,470

322,207

 

  Cost of Sales

321,789

327,283

 

      GROSS PROFIT

-319

-5,076

 

  Selling & Adm Costs

　

　

 

      OPERATING PROFIT

3,673

1,652

 

  Non-Operating P/L

　

　

 

      RECURRING PROFIT

-6,895

-13,021

　

      NET PROFIT

-35,211

-13,122

BALANCE SHEET

 

 

 

 

  Cash

　

6,928

20,203

 

  Receivables

 

71,130

77,817

 

  Inventory

 

　

　

 

  Securities, Marketable

　

　

 

  Other Current Assets

150,193

156,578

 

      TOTAL CURRENT ASSETS

228,251

254,598

 

  Property & Equipment

235,390

273,874

 

  Intangibles

 

32,234

35,345

 

  Investments, Other Fixed Assets

43,687

43,350

 

      TOTAL ASSETS

539,562

607,167

 

  Payables

 

9,073

6,354

 

  Short-Term Bank Loans

　

　

 

　

 

　

　

 

  Other Current Liabs

84,142

91,542

 

      TOTAL CURRENT LIABS

93,215

97,896

 

  Debentures

 

92,500

92,500

 

  Long-Term Bank Loans

20,000

52,000

 

  Reserve for Retirement Allw

13,485

13,980

 

  Other Debts

　

99,894

94,905

 

      TOTAL LIABILITIES

319,094

351,281

 

      MINORITY INTERESTS

 

 

 

Common stock

100

100

 

Additional paid-in capital

127,702

127,702

 

Retained earnings

92,626

127,913

 

Evaluation p/l on investments/securities

39

171

 

Others

 

1

0

 

Treasury stock, at cost

　

　

 

      TOTAL S/HOLDERS` EQUITY

220,468

255,886

　

      TOTAL EQUITIES

539,562

607,167

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2008

31/03/2007

 

Cash Flows from Operating Activities

　

25,608

19,182

 

Cash Flows from Investment Activities

-22,361

-10,453

 

Cash Flows from Financing Activities

-3,202

-14,471

　

Cash, Bank Deposits at the Term End

　

6,928

6,336

ANALYTICAL RATIOS            Terms ending:

31/03/2008

31/03/2007

 

 

Net Worth (S/Holders' Equity)

220,468

255,886

 

 

Current Ratio (%)

244.87

260.07

 

 

Net Worth Ratio (%)

40.86

42.14

 

 

Recurring Profit Ratio (%)

-2.14

-4.04

 

 

Net Profit Ratio (%)

-10.95

-4.07

 

 

Return On Equity (%)

-15.97

-5.13

           

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.42.79

UK Pound

1

Rs.85.04

Euro

1

Rs.67.39

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions