Risk of Failure to Achieve Business Plans and Impairment Arising from New Businesses and M&A
First written in FY2024. 3 of 6 entries say "Materialised", first in FY2025. Latest entry: FY2026.
Daisue Construction moved to the "Worse" side of this theme in 2025, 1 year after the typical company in this theme (2024).
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
44 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「The company had recognized technology-related assets arising from its acquisition of shares in its consolidated subsidiary ㈱神島組. Based on the current period's performance, it reviewed its future business plans and determined that total undiscounted future cash flows were expected to fall below the carrying amount of ㈱神島組's fixed assets, including the technology-related assets. Accordingly, it recognized an impairment loss on the technology-related assets recognized on a consolidated basis and part of ㈱神島組's fixed assets.」
Regarding the risk of failure to meet business plans and impairment associated with new businesses and M&A, the company recognized total impairment losses of ¥1,412 million on 神島組's technology-related assets and fixed assets, stating that the risk had continued to materialize. - FY2025MaterialisedAnnual report
「Based on the performance for the current consolidated fiscal year, the company reviewed its future business plans and determined that total undiscounted future cash flows were expected to fall below the carrying amount of the fixed assets of ㈱神島組, including goodwill and technology-related assets. Accordingly, the company recognized an impairment loss of ¥1,464 million on the goodwill and technology-related assets during the current consolidated fiscal year.」
The company stated that the previously anticipated risks of failure to meet business plans following new businesses and M&A, and impairment of goodwill and technology-related assets, had materialized in the case of 神島組. - FY2025-H1RestatedAnnual report
「During the interim consolidated accounting period, there were no new business or other risks, nor any material changes to the business or other risks described in the annual securities report for the previous fiscal year.」
The company explained that, including the risks of failure to meet business plans and goodwill impairment associated with new businesses and M&A, there had been no material changes to its existing business and other risks. - FY2024First statedAnnual report
「If risks or contingent liabilities are discovered after the fact, rapid market changes occur, or acquired companies fail to use management resources efficiently, resulting in failure to meet profit plans or requiring the recognition of impairment losses on goodwill or valuation losses on shares, this could affect our business performance and other results.」
Risks associated with the acquisition of 株式会社神島組 and future M&A and investment in new fields were newly organized as an independent risk, including contingent liabilities, failed integration or resource utilization, failure to meet profit plans and goodwill impairment.