Risk of Failure to Achieve Results from Business Alliances and M&A
First written in FY2017. 3 of 5 entries say "Materialised", first in FY2023-Q2. Latest entry: FY2024.
TOKAI Holdings moved to the "Worse" side of this theme in 2022, the same year as the typical company in this theme.
The whole theme swung hardest in 2018: 13 of 79 companies on the "Worse" side.
16 other companies' latest entry also says "Mitigated".
- FY2024MitigatedAnnual report
「Ordinary income was ¥15,531 million, up 16.9% year on year, mainly due to a reduction in the share of losses from equity-method investments.」
The Group's share of equity-method investment losses, including losses from the Vietnamese affiliate, decreased from the previous fiscal year, improving ordinary income. - FY2023MaterialisedAnnual report
「Non-operating income and expenses included an impairment loss on goodwill related to an affiliated company in Vietnam and other items, resulting in a loss of ¥1,629 million, compared with income of ¥113 million in the previous fiscal year.」
Impairment losses on goodwill related to the Vietnamese affiliate and other items were reflected in full-year results, resulting in a ¥1,629 million non-operating loss. - FY2023-Q3MaterialisedAnnual report
「Investment losses, including an impairment loss on goodwill related to an affiliated company in Vietnam, were recognized, and ordinary income was ¥6,705 million, down 28.1% year on year.」
Investment losses, including an impairment loss on goodwill related to the Vietnamese affiliate, continued to be recognized and contributed to the decline in ordinary income. - FY2023-Q2MaterialisedAnnual report
「Investment losses, including an impairment loss on goodwill related to an affiliated company in Vietnam, were recognized, and ordinary income was ¥2,432 million, down 54.0% year on year.」
Investment losses, including an impairment loss on goodwill related to the Vietnamese affiliate, were actually recognized, and the risks concerning results and recovery associated with M&A and investments materialized in performance. - FY2017First statedAnnual report
「However, if the businesses of alliance partners or acquired businesses do not progress as planned and fail to generate the expected results, this may affect the Group's operating results and financial position.」
While the Group is actively considering alliances and M&A to generate synergies and introduce new services, failure to achieve the expected results was identified as a risk.