Press Releases 2010

Revision of the SOFTBANK Group Brand Royalty

October 28, 2010

SOFTBANK CORP. (hereafter “the Company”) announces that it has revised its brand royalty from its subsidiaries that use the “SOFTBANK” brand as follows.

1. Outline of revision of brand royalty

The Company is the pure holding company of the SOFTBANK Group and it has been receiving the brand royalty from its subsidiaries using the “SOFTBANK” brand since 2007 for proper management of the brand and enhancement of the brand value. According to the improved brand value, the Company has revised the brand royalty and its calculation formula. This revision will be applied from the second quarter of the fiscal year ending March 2011.

2. Subsidiaries object to the royalty (as of October 28, 2010)

A total of 24 companies, including SOFTBANK MOBILE Corp., SOFTBANK TELECOM Corp., SOFTBANK BB Corp., and SOFTBANK TECHNOLOGY CORP.

3. Impact on non-consolidated financial results

Under the revised standards the brand royalty calculated based on the previous fiscal year financial results of the subsidiaries object to the royalty has the following effect on the Company's non-consolidated financial results.

Impact on net sales Approx. JPY 17.8 billion
Impact on ordinary income Approx. JPY 17.8 billion
Impact on net income* Approx. JPY 10.6 billion
[Note]
  • *Subtract JPY 7.2 billion for the effect of income tax etc.(calculated at statutory income tax rate of 40.69%)

On a consolidated basis, the brand royalty recognized as net sales by the Company and the brand royalty recognized as expense by the relevant subsidiaries will be eliminated as internal transactions.

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