Recognition of Extraordinary Losses (Impairment Loss on Investment Securities and Impairment Loss)
The company group (names of individual consolidated subsidiaries: Not disclosed)
Shares in a capital and business alliance partner held by the company group (shares in an alliance partner newly listed on a major U.S. market through ADSs), and equipment assets newly introduced during the fiscal year
The impairment loss on investment securities resulted from a substantial decline in fair value relative to acquisition cost due to external factors, including stock market volatility and market liquidity during the early period following listing. The impairment loss on fixed assets was recognized following a careful review of their future recoverability.
¥119 million (¥97 million impairment loss on investment securities and ¥22 million impairment loss on fixed assets; both recognized as extraordinary losses)
Third-quarter consolidated financial results for the fiscal year ending October 2026 (in connection with the full-year earnings forecast for 1 November 2025 to 31 October 2026)
The impact of this matter does not meet the criteria for revising the earnings forecast, and therefore there is no change to the full-year consolidated earnings forecast for the fiscal year announced on 12 June 2026.
The company will pursue structural reforms to build a business portfolio capable of withstanding changes in the business environment, prioritizing the early establishment of a robust financial base while minimizing future uncertainties.
| Item | Details |
|---|---|
| Event name | Recognition of Extraordinary Losses (Impairment Loss on Investment Securities and Impairment Loss) |
| Date of occurrence | End of the third quarter accounting period of the fiscal year ending October 2026 (specific date: Not disclosed) |
| Subject Entity | The company group (names of individual consolidated subsidiaries: Not disclosed) |
| Target Locations / Products | Shares in a capital and business alliance partner held by the company group (shares in an alliance partner newly listed on a major U.S. market through ADSs), and equipment assets newly introduced during the fiscal year |
| Cause | The impairment loss on investment securities resulted from a substantial decline in fair value relative to acquisition cost due to external factors, including stock market volatility and market liquidity during the early period following listing. The impairment loss on fixed assets was recognized following a careful review of their future recoverability. |
| Amount of Impact on Business Performance | ¥119 million (¥97 million impairment loss on investment securities and ¥22 million impairment loss on fixed assets; both recognized as extraordinary losses) |
| Accounting period in which recognized | Third-quarter consolidated financial results for the fiscal year ending October 2026 (in connection with the full-year earnings forecast for 1 November 2025 to 31 October 2026) |
| Impact on Earnings Forecast | The impact of this matter does not meet the criteria for revising the earnings forecast, and therefore there is no change to the full-year consolidated earnings forecast for the fiscal year announced on 12 June 2026. |
| Outlook | The company will pursue structural reforms to build a business portfolio capable of withstanding changes in the business environment, prioritizing the early establishment of a robust financial base while minimizing future uncertainties. |
Items this document does not state (16)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The market value of shares in a capital and business alliance partner fell substantially below their acquisition cost due to external factors, including stock market volatility and market liquidity during the early period following the partner's listing. For fixed assets, the company carefully reviewed their future recoverability as part of its structural reforms and prioritized minimizing future uncertainties and strengthening its financial base.