Announcement Concerning SOFTBANK Group’s Royalty Charge Setting
May 23, 2007From April 1, 2007 on SOFTBANK CORP. (hereinafter “SOFTBANK”) will start collecting royalty charges from group companies that use the “SOFTBANK Brand”.
The details are as follows below.
1. Reasons for royalty charge setting
SOFTBANK, as a pure holdings company of the SOFTBANK Group (hereinafter “the Group”), has a group business management framework in place through which, while preserving each group company’s independence and expertise, the wide-range of businesses in the Group are aligned and managed cross-sectionally. The importance of brand management will increase from now on and SOFTBANK will enhance this area. In order to boost the brand value further, royalty charges will be collected from group companies using the “SOFTBANK Brand”
2. Subsidiaries subject to royalty charges (as of May 23, 2007)
24 group companies
3. Impact on stand-alone business results
The royalty charges calculated based on the subsidiaries?sales results for the last fiscal year have the following effect on net sales, ordinary income and net income.
| Impact on net sales | 11,868m JPY |
|---|---|
| Impact on ordinary income | 11,868m JPY |
| Impact on net income*1 | 7,039m JPY |
- *Subtract 4,829m JPY for the effect of income tax etc.(calculated at statutory income tax rate of 40.69%)
On a consolidated basis, the royalty charge recognized as net sales and royalty charge recognized as expense by the relevant subsidiaries will be eliminated as intercompany transactions.
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