Risk that strategic investments such as capital alliances will not progress as planned
First written in FY2018. 2 of 5 entries say "Materialised", first in FY2019. Latest entry: FY2024.
The whole theme swung hardest in 2020: 28 of 84 companies on the "Worse" side.
21 other companies' latest entry also says "Mitigated".
- FY2024MitigatedAnnual report
「株式会社フィル事業承継・地域活性化プロジェクト was established primarily to provide capital partnerships and consulting services to small and medium-sized enterprises and tenant operators facing business succession challenges. It has currently suspended new investments and loans and is focusing on recovering existing investments and loans. Once recovery is complete, the company plans to liquidate.」
To address strategic investment risk related to investments and loans, the company suspended new investments and loans and transitioned to a phase focused on recovering existing investments and loans. - FY2023MaterialisedAnnual report
「The company recorded an allowance for doubtful accounts of ¥53 million against short-term loans to 株式会社玉栄 and ¥2.324 million against accrued income. It also recorded a ¥55.324 million provision for allowance for doubtful accounts during the current fiscal year.」
The company recorded an allowance for doubtful accounts against loans to and accrued income from 株式会社玉栄, a strategic investee, indicating that risks relating to strategic investments and the management of affiliates had materialized as actual losses and provisions. - FY2021RestatedAnnual report
「To address this risk, the company has established a system for regularly monitoring the performance, financial condition, market competitiveness and synergies of its alliance partners.」
The company continued to recognize the risk that a strategic investee's business may not proceed as planned and identified regular monitoring of the partner's performance, financial condition and synergies as a response measure. - FY2019MaterialisedAnnual report
「The company recorded an impairment loss on investment securities of ¥100.991 million as an extraordinary loss for 1 issue, 株式会社favy, among its investment securities.」
The company recorded an impairment loss on investment securities of ¥100.991 million for 株式会社favy, a strategic investee. The main text does not conclusively state the reason for the shortfall against the plan. - FY2018First statedAnnual report
「In making strategic investments, the company will thoroughly examine market trends, customer needs, the performance, financial condition and market competitiveness of the investee, and compatibility with its business. However, if significant changes in market or competitive conditions after the investment cause the investee's business development not to proceed as planned, this could affect the performance and financial position of the Group.」
While stating a policy of making strategic investments, including capital alliances, as part of proactive business alliances and cooperation, the company for the first time explicitly identified the risk that changes in market and competitive conditions after investment could prevent the investee's business from proceeding as planned.