Investment recovery risk related to acquisitions, mine development and other activities
First written in FY2018. 2 of 6 entries say "Materialised", first in FY2019. Latest entry: FY2025.
Mitsui Matsushima Holdings moved to the "Worse" side of this theme in 2019, 3 years before the typical company in this theme (2022).
The whole theme swung hardest in 2020: 30 of 88 companies on the "Worse" side.
87 other companies' latest entry also says "Restated".
- FY2025RestatedAnnual report
「Our company conducts M&A to stabilize and diversify its earnings base. However, if investment in new transactions is delayed or the performance of acquired companies deteriorates, making it impossible to secure the planned level of profit, impairment losses on acquired assets and goodwill, among other factors, could affect the operating results and financial position of our group.」
While positioning M&A as a means of stabilizing and diversifying its earnings base, the disclosure continues to identify delays in new investments, deterioration in the performance of acquired companies, and impairment risk relating to assets and goodwill as major risks. - FY2021WorsenedAnnual report
「Our group holds shares in customers for purposes including facilitating transactions. However, if share prices decline due to deterioration in stock market conditions or other factors, valuation losses and other effects could affect the operating results and financial position of our group. Our group also makes investments, including establishing new companies and acquiring existing companies, to achieve business strategy objectives and expand its operations.」
In addition to the general disclosure concerning investment risks, an investment business loss of ¥692 million related to the GDM investment arose, and the impact of investment recovery risk expanded for the full year. - FY2021-Q3WorsenedAnnual report
「With respect to the “operating assets” (Australia), the carrying amount was reduced to the recoverable amount because the expected earnings capacity at the time of acquisition could no longer be anticipated in light of the depressed coal market during the fiscal year, and the reduction was recorded as an impairment loss under extraordinary losses.」
The expected earnings capacity of the overseas coal business investment could no longer be anticipated against the backdrop of the depressed coal market, resulting in an impairment loss on the Australian operating assets. - FY2020MaterialisedAnnual report
「With respect to the “operating assets” (Australia), the carrying amount was reduced to the recoverable amount because the expected earnings capacity at the time of acquisition could no longer be anticipated following a review of the business income and expenditure plan for coal mine development at the Mimosa mining concession, and the reduction was recorded as an impairment loss under extraordinary losses.」
A decline in the earnings capacity of the overseas mining development investment materialized at the Mimosa mining concession, resulting in an impairment loss of ¥290 million on intangible fixed assets. - FY2019MaterialisedAnnual report
「With respect to the “operating assets” (Indonesia), the carrying amount was reduced to the recoverable amount because the expected earnings capacity at the time of acquisition could no longer be anticipated following changes in the business environment surrounding the PT Gerbang Daya Mandiri underground coal mine (GDM mine) there, and the reduction was recorded as an impairment loss under extraordinary losses.」
The risk of failing to achieve expected results from overseas mining investments and the associated impairment risk materialized, and an impairment loss of ¥1,793 million was recorded, including ¥950 million in goodwill of the GDM mine and ¥741 million in investment securities. - FY2018First statedAnnual report
「Our group makes investments, including establishing new companies and acquiring existing companies, to achieve business strategy objectives and expand its operations. However, if economic conditions deteriorate in the markets or regions where these investments are made, the investments may fail to produce the expected results, and impairment losses on acquired assets and goodwill, among other factors, could affect the operating results and financial position of our group.」
The disclosure addresses the risks of failing to achieve expected results, impairment of assets and goodwill, and additional investment in connection with establishing new companies, acquiring existing companies, exploring and developing overseas coal mines, and investing in joint ventures.