Risk of Guarantee Obligations if the Share Price Declines in Connection with E-Ship
First written in FY2020-Q3. 3 of 9 entries say "Restated". Latest entry: FY2026.
34 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「¥2,094 million at the end of the fiscal year」
Borrowings related to the E-Ship trust decreased from the ¥2,660 million maximum share acquisition amount established in the previous fiscal year to ¥2,094 million. The possibility under the scheme that the company may repay the outstanding balance if the share price declines remains. - FY2025WorsenedAnnual report
「The company has introduced a trust-type employee shareholding incentive plan (E-Ship). … Maximum amount of shares to be acquired by eligible employees: ¥2,660 million」
After the trust period for the previous E-Ship expired, a new E-Ship trust was established for the period from 31 January 2025 to 4 February 2030, with a maximum share acquisition amount of ¥2,660 million and borrowings of the same amount recognized. Exposure to the guarantee obligation risk arising from a decline in the share price was re-established. - FY2024-Q2RestatedAnnual report
「During the cumulative second quarter period, there were no occurrences of major risks that management recognizes as potentially having a material impact on the consolidated companies' financial condition, operating results, or cash flows, among matters related to the business and financial conditions described in the quarterly report, nor were there any material changes to the business and other risks described in the annual securities report for the preceding fiscal year.」
The company states that there has been no material change in the guarantee obligation risk from a decline in the share price associated with E-Ship. - FY2024-Q1RestatedAnnual report
「During the cumulative first quarter period, there were no occurrences of major risks that management recognizes as potentially having a material impact on the consolidated companies' financial condition, operating results, or cash flows, among matters related to the business and financial conditions described in the quarterly report, nor were there any material changes to the business and other risks described in the annual securities report for the preceding fiscal year.」
There has been no material change in the guarantee obligation risk from a decline in the share price associated with E-Ship. - FY2023-Q2RestatedAnnual report
「During the cumulative second quarter period, there were no occurrences of major risks that management recognizes as potentially having a material impact on the consolidated companies' financial condition, operating results, or cash flows, among matters related to the business and financial conditions described in the quarterly report, nor were there any material changes to the business and other risks described in the annual securities report for the preceding fiscal year.」
There has been no material change in the guarantee obligation risk from a decline in the share price associated with E-Ship. - FY2022MitigatedAnnual report
「¥260 million at the end of the fiscal year」
The balance of borrowings related to the E-Ship trust decreased from ¥531 million at the end of the previous fiscal year to ¥260 million. The possibility under the scheme that the company may repay the outstanding balance if the share price declines remains. - FY2021Decrease in E-Ship trust borrowingsAnnual report
「(3) Carrying amount of borrowings recognized under the gross method ¥531 million at the end of the fiscal year」
Borrowings related to the E-Ship trust decreased from ¥720 million at the end of the previous fiscal year to ¥531 million at the end of the current fiscal year. As of the filing date, the company had not repaid any outstanding balance due to a decline in the share price. - FY2020E-Ship trust borrowing recognizedAnnual report
「¥720 million at the end of the fiscal year」
Borrowings of ¥720 million related to the E-Ship trust were recognized at the end of the fiscal year, and the transaction under which the company may repay the outstanding balance if the share price declines commenced with an actual balance. As of the filing date, neither the accumulation of losses equivalent to losses on share sales nor repayment by the company had occurred. - FY2020-Q3First statedAnnual report
「In addition, because we guarantee borrowings obtained by the employee shareholding trust to acquire our shares, a decline in our share price will cause losses on the sale of shares to accumulate within the employee shareholding trust. If, at the end of the trust, borrowings remain outstanding within the trust in an amount equivalent to those losses on share sales, we will repay the outstanding balance.」
The company has disclosed that, if the newly approved E-Ship leaves the employee shareholding trust with outstanding borrowings due to a decline in the share price, the company may be required to repay them.