Risk of Failing to Achieve the Expected Results of Capital Expenditure, Joint Ventures, Alliances and Acquisitions
First written in FY2016. 11 of 24 entries say "Worsened", first in FY2021-Q2. Latest entry: FY2026.
Toray Industries moved to the "Worse" side of this theme in 2018, 4 years before the typical company in this theme (2022).
The whole theme swung hardest in 2019: 11 of 29 companies on the "Worse" side.
10 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Impairment loss (or reversal) 9,919 33,796」
Impairment losses related to the underperformance of capital investments, joint ventures, acquisitions and other initiatives increased from ¥9.919 billion in the previous fiscal year to ¥33.796 billion. - FY2026-H1MitigatedAnnual report
「Impairment loss (or reversal) 889 590」
Impairment losses related to the underperformance of capital investments, acquisitions and other initiatives decreased from ¥889 million in the same period of the previous year to ¥590 million in the six-month consolidated period. - FY2025MitigatedAnnual report
「Impairment loss (or reversal) 36,784 9,919」
Impairment losses related to the underperformance of capital investments, acquisitions and other initiatives decreased from ¥36.784 billion in the previous fiscal year to ¥9.919 billion in the current fiscal year. However, impairment losses were recognized on textile production facilities in South Korea due to lower profitability. - FY2025-H1WorsenedAnnual report
「Impairment loss (or reversal) 562 889」
Impairment losses related to the underperformance of capital investments, acquisitions and other initiatives increased from ¥562 million in the same period of the previous year to ¥889 million in the six-month consolidated period. - FY2024WorsenedAnnual report
「Impairment losses of ¥36,784 million were recognized in the consolidated fiscal year.」
Impairment losses related to the underperformance of capital investments, joint ventures, alliances and acquisitions increased from ¥5.996 billion in the previous fiscal year to ¥36.784 billion. Impairment losses were recognized on facilities for carbon fiber composites, battery separators, fibers and films, among others. - FY2024-Q2MitigatedAnnual report
「Impairment losses (or reversals) 1,017 562」
Impairment losses related to underperformance of capital investments, acquisitions and other initiatives decreased from ¥1.017 billion in the same period of the previous year to ¥562 million in the cumulative second quarter period. - FY2023MitigatedAnnual report
「Impairment losses (or reversals) 27,444 5,996」
Impairment losses related to failure to achieve the expected results from capital investments and acquisitions decreased from ¥27.444 billion in the previous fiscal year to ¥5.996 billion in the current fiscal year. Meanwhile, impairment also occurred at resin production facilities due to declining profitability. - FY2023-Q3MaterialisedAnnual report
「Impairment losses (or reversals) 309 1,060」
Impairment losses related to failure to achieve the expected results from capital investments and acquisitions increased from ¥309 million in the same period of the previous year to ¥1,060 million during the cumulative third-quarter period. - FY2023-Q2MaterialisedAnnual report
「Impairment losses (or reversals) 279 1,017」
The risk related to declining profitability of investments and assets materialized during the cumulative second-quarter period as impairment losses of ¥1,017 million. This was up from ¥279 million in the same period of the previous year. - FY2023-Q1WorsenedAnnual report
「Impairment losses (or reversals) 7 904」
Impairment losses related to the risk of failing to achieve the expected results increased from ¥7 million in the same period of the previous year to ¥904 million during the quarter, and the decline in the profitability of investments and assets continues to be reflected in actual results. - FY2022WorsenedAnnual report
「The carrying amounts of production facilities, goodwill and other assets related to the battery separator film business in Nasushiobara, Tochigi Prefecture, and North Gyeongsang Province, South Korea, were reduced to their recoverable amounts because profitability declined, mainly in automotive applications, as market competition intensified.」
Separate from the carbon fiber business, the risk of failing to achieve the expected results newly materialized as impairment in the battery separator business due to intensifying market competition and declining profitability in automotive applications. Impairment losses totaled ¥27.444 billion. - FY2022-Q3Sharp decrease in impairment lossesAnnual report
「Impairment losses (or reversals) 26,668 309」
Impairment losses fell sharply from ¥26.668 billion in the same period of the previous year to ¥309 million in the cumulative third-quarter period. The impairment burden associated with failure to achieve the expected results from capital investments and acquisitions, which materialized in the previous fiscal year, has narrowed in the cumulative period. - FY2021WorsenedAnnual report
「In the consolidated fiscal year, the Group recognized impairment losses of ¥28,867 million. In addition, the carrying amounts of carbon fiber composite materials production facilities in Washington State and elsewhere in the United States were reduced to their recoverable amounts because profitability declined as a result of sluggish aircraft demand.」
The risk of failing to achieve the expected results from capital investments and acquisitions expanded on a full-year basis into ¥28.867 billion of impairment losses, including impairment of carbon fiber composite materials facilities due to sluggish aircraft demand. - FY2021-Q3WorsenedAnnual report
「During the cumulative third-quarter period, in the carbon fiber composite materials business, the carrying amounts of tangible fixed assets and other assets of a US subsidiary were reduced to their recoverable amounts because profitability declined as a result of sluggish aircraft demand. The resulting reduction of ¥24,981 million was recognized as an impairment loss under other expenses in the condensed interim consolidated statement of profit or loss. The recoverable amount was measured based on value in use.」
The risk of failing to achieve the expected results from capital investments and acquisitions became more concrete than in the previous quarter, materializing as an impairment loss of ¥24.981 billion on the US subsidiary's assets due to sluggish aircraft demand. - FY2021-Q2WorsenedAnnual report
「During the cumulative second-quarter period, in the carbon fiber composite materials business, the carrying amounts of tangible fixed assets and other assets of a US subsidiary were reduced to their recoverable amounts because profitability declined as a result of sluggish aircraft demand. The resulting reduction of ¥24,004 million was recognized as an impairment loss under other expenses in the condensed interim consolidated statement of profit or loss. The recoverable amount was measured based on value in use.」
The risk of failing to achieve the expected results from investments and acquisitions materialized as an impairment loss of ¥24.004 billion on the US subsidiary's assets due to sluggish aircraft demand. - FY2021-Q1MaterialisedAnnual report
「Impairment losses (or reversals) 2,165」
Impairment losses of ¥2,165 million related to the risk of failing to achieve the expected results from capital investments and acquisitions were recognized during the first quarter. - FY2020MaterialisedAnnual report
「In the consolidated fiscal year, the carrying amounts of operating assets and assets scheduled for disposal, mainly those related to businesses whose profitability had declined, were reduced to their recoverable amounts, and the resulting reduction of ¥7,569 million was recognized as an impairment loss under extraordinary losses.」
The risk of failing to achieve the expected results from capital investments and acquisitions continued to materialize as impairment losses of ¥7.569 billion on assets whose profitability had declined and other assets. - FY2019MaterialisedAnnual report
「In the consolidated fiscal year, mainly because the expected earnings from goodwill and other intangible assets related to consolidated subsidiaries could no longer be expected, the entire unamortized balance was written down, and the resulting reduction of ¥18,414 million was recognized as an impairment loss under extraordinary losses, among other items.」
The risk of failing to achieve the expected results from capital investments and acquisitions materialized as impairment losses of ¥18.414 billion, mainly on goodwill and intangible assets related to the Korean Fibers business and the Environment and Engineering business, among others. - FY2018MaterialisedAnnual report
「Extraordinary losses increased by ¥9.6 billion year on year to ¥20.2 billion, mainly due to losses on the businesses of affiliated companies and environmental remediation expenses.」
The risk of failing to achieve the expected results from investments and the businesses of affiliated companies is reflected in actual results as losses on the businesses of affiliated companies and impairment losses in the carbon fiber composite materials business. - FY2017RestatedAnnual report
「Before undertaking these capital investments, joint ventures, alliances and acquisitions, the Group examines their profitability and the prospects for recovering its investments from various perspectives. However, there is no guarantee that the expected results will necessarily be achieved. If unexpected changes in circumstances or significant deviations from the initial business plans arise due to a sudden change in the business environment or other factors, impairment losses on property, plant and equipment and equity-method investment losses may be incurred, adversely affecting the Group's results and financial position.」
The Group continues to explicitly disclose the possibility of failing to achieve the expected results from capital investments, joint ventures, alliances and acquisitions, as well as the possibility of impairment and investment losses. - FY2016First statedAnnual report
「The Group makes capital investments across a broad range of business areas and enters into various joint ventures, strategic alliances and business acquisitions with third parties. Before undertaking these capital investments, joint ventures, alliances and acquisitions, the Group examines their profitability and the prospects for recovering its investments from various perspectives. However, there is no guarantee that the expected results will necessarily be achieved.」
This indicates the possibility of impairment losses or equity-method investment losses arising from failure to recover investments or deviations from plans.