Risk of impairment losses and losses on equity-method investments due to a decline in the real value of FDAG and FCCE investments

「Ordinary loss was ¥1,111 million, reflecting the operating loss described above, the absence of the gain on cryptocurrency sales recognized in the previous consolidated fiscal year, fees for refinancing borrowings from short-term to long-term, and the recognition of ¥300 million in temporary amortization of the amount equivalent to goodwill, included in the equity-method investment loss and recorded as a non-operating expense, because the shares of FDAG, an equity-method affiliate, had performed below the plan initially assumed by the Company, among other factors.」

「Based on the business plans and other information for FDAG and FCCE, if, from the first quarter of the fiscal year ending October 2019 onward, the difference between the actual value of these investment securities and their acquisition cost becomes materially significant and there is no support for their recoverability, the Company may recognize an impairment loss on shares of affiliates in its non-consolidated financial statements and an equity-method investment loss in its consolidated financial statements.」