Risk of Valuation Losses and Impairment Losses on Shares in Subsidiaries Following Alliances and Acquisitions
First written in FY2020. 2 of 3 entries say "Mitigated", first in FY2021. Latest entry: FY2025.
The whole theme swung hardest in 2020: 28 of 83 companies on the "Worse" side.
21 other companies' latest entry also says "Mitigated".
- FY2025Strengthened corporate functions related to M&A and alliances and consideration of investment recoveryAnnual report
「To mitigate these risks, we will strengthen our corporate functions for M&A and alliances and consider profitability and the potential for investment recovery from various perspectives.」
The response to the risk of valuation losses and impairment losses following alliances and acquisitions was made more specific through strengthening corporate functions related to M&A and alliances and assessing the potential for investment recovery. - FY2021Specified an M&A research framework and synergy creation as risk responsesAnnual report
「To mitigate these risks, we will strengthen our research framework for alliances and M&A and work to create further synergies across the group.」
The response to the risk of valuation losses and impairment losses following alliances and acquisitions was specified as strengthening the pre-transaction research framework and creating synergies. - FY2020First statedAnnual report
「However, there is no guarantee that the expected results will necessarily be achieved. If unexpected changes in circumstances or a substantial deviation from the initial business plan occur due to a sudden change in the business environment or other factors, valuation losses on shares of subsidiaries and impairment losses on goodwill may be incurred, which could affect the performance of our group.」
In line with its organizational strategy of using alliances, capital alliances and M&A, the company has newly disclosed as a standalone risk the possibility of valuation losses and impairment losses resulting from failure to achieve the expected results or deviations from the business plan.