Risks including failure to achieve post-M&A synergies and goodwill impairment
First written in FY2017. 16 of 30 entries say "Restated". Latest entry: FY2026.
Pole To Win Holdings moved to the "Worse" side of this theme in 2022, 2 years before the typical company in this theme (2024).
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
44 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「Following a detailed review of business-related assets and the status of investees, we recorded impairment losses of ¥3,060.244 million under extraordinary losses. In addition, for Side America, Inc.’s game development outsourcing services business, we determined that there were indications of impairment because transactions with a major customer ended due to changes in the business environment and performance has remained below the business plan prepared at the time of acquisition on the assumption that transactions with the major customer would continue.」
The risks of failing to achieve post-M&A synergies and the business plan, and of deteriorating subsidiary performance, materialized as ¥3,060.244 million of impairment losses relating to SynX, Side America and other businesses. - FY2025MaterialisedAnnual report
「For asset groups whose profit or loss from operating activities is continuously negative or is expected to remain continuously negative, the carrying amounts were reduced to their recoverable amounts, and the resulting reduction of ¥276.266 million was recognized as an impairment loss and recorded under extraordinary losses.」
The risk of deteriorating business and subsidiary performance and impairment following M&A continues to materialize as ¥276.266 million of impairment losses relating to 1518 Studios, HIKE, Aquaplus and other businesses. - FY2024MaterialisedAnnual report
「Following a detailed review of business-related assets and the status of investees, we recognized impairment losses of ¥987.807 million and a valuation loss on investment securities of ¥692.151 million.」
The risk of deteriorating subsidiary and business performance and goodwill impairment following M&A materialized as ¥987.807 million of impairment losses, including those relating to Ninjastars, HIKE’s graphic business and OneXP UK. - FY2024-Q2MaterialisedAnnual report
「Because the profit or loss from operating activities of the graphic business of our consolidated subsidiary HIKE is expected to remain continuously negative, the full carrying amount of goodwill relating to the business, ¥94.299 million, was recognized as an impairment loss and recorded under extraordinary losses. Similarly, because the profit or loss from operating activities of our consolidated subsidiary Ninjastars is expected to remain continuously negative, the full carrying amount of goodwill relating to the business, ¥222.378 million, was recognized as an impairment loss and recorded under extraordinary losses.」
The risk of deteriorating subsidiary and business performance and impairment following M&A has materialized as goodwill impairment of ¥94.299 million for HIKE’s graphic business and ¥222.378 million for Ninjastars. - FY2023MaterialisedAnnual report
「At 1518 Studios, Inc., orders for graphic development declined due to the impact of the situation in Ukraine. However, orders for voice recording, localization and customer support remained firm, and sales increased due to the weaker yen. In addition, impairment losses of ¥609.590 million were recognized on goodwill and intangible assets relating to 1518 Studios, Inc.」
The risk of failing to meet the post-M&A business plan and impairment of goodwill and other assets materialized in the annual results as a ¥609.590 million impairment loss relating to 1518 Studios. - FY2023-Q3MaterialisedAnnual report
「As a result, estimating future cash flows became difficult, so the full carrying amount of the goodwill and intangible assets relating to the business, ¥665.220 million, was recognized as an impairment loss and recorded under extraordinary losses.」
Due to difficulties in conducting the 1518 Studios business, the full carrying amount of goodwill and intangible assets, ¥665.220 million, was recognized as an impairment loss. - FY2023-Q2MaterialisedAnnual report
「As estimating future cash flows became difficult as a result, the full carrying amount of goodwill and intangible assets related to the business, ¥627,873 thousand, was recognised as an impairment loss and recorded under extraordinary losses.」
After acquiring the business of 1518 Studios, Inc., conducting the business became difficult due to the situation in Ukraine, resulting in impairment losses of ¥627.873 million on goodwill and intangible assets. - FY2022-Q3RestatedAnnual report
「During the nine-month period ended [the current third quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
States that there has been no material change in the risks of failure to achieve synergies following M&A, deteriorating subsidiary performance, and goodwill amortization and impairment. - FY2022-Q2RestatedAnnual report
「During the six-month period ended [the current second quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
States that there has been no material change in the risks of failure to achieve synergies following M&A, deteriorating subsidiary performance, and goodwill amortization and impairment. - FY2022-Q1RestatedAnnual report
「During the three-month period ended [the current first quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
States that there has been no material change in the risks of failure to achieve synergies following M&A, deteriorating subsidiary performance, and goodwill amortization and impairment. - FY2021MaterialisedAnnual report
「For asset groups whose profit or loss from operating activities is continuously negative or is expected to remain continuously negative, the carrying amounts were reduced to their recoverable amounts, and the resulting reduction of ¥132.440 million was recognized as an impairment loss and recorded under extraordinary losses.」
The recoverable amount of goodwill relating to CREST and CREST JOB, based on future cash flows, was zero, resulting in the recognition of total impairment losses of ¥132.440 million. - FY2021-Q3RestatedAnnual report
「During the nine-month period ended [the current third quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
States that there has been no material change in the risks of failure to achieve synergies following M&A, deteriorating subsidiary performance, and goodwill amortization and impairment. - FY2021-Q1RestatedAnnual report
「During the three-month period ended [the current first quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
States that there has been no material change in the risks of failure to achieve synergies following M&A, deteriorating subsidiary performance, and goodwill amortization and impairment. - FY2020RestatedAnnual report
「In expanding the business through M&A, the Group may fail to obtain the synergies, business expansion and other benefits initially anticipated. In addition, new business areas may bring business-specific risk factors through the M&A. These factors, together with deteriorating performance after a company becomes a subsidiary and the amortization or impairment of goodwill, may affect the Group’s operating results and financial position.」
Reconfirms the risks of failure to achieve synergies following M&A, deteriorating subsidiary performance, and goodwill amortization and impairment. - FY2020-Q3RestatedAnnual report
「During the nine-month period ended [the current third quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
States that there has been no material change in the risks of failure to achieve synergies following M&A, deteriorating subsidiary performance, and goodwill amortization and impairment. - FY2020-Q2RestatedAnnual report
「During the six-month period ended [the current second quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
States that there has been no material change in the risks of failure to achieve synergies following M&A, deteriorating subsidiary performance, and goodwill amortization and impairment. - FY2020-Q1RestatedAnnual report
「During the three-month period ended [the current first quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
States that there has been no material change in the risks of failure to achieve synergies following M&A, deteriorating subsidiary performance, and goodwill amortization and impairment. - FY2019RestatedAnnual report
「In expanding the business through M&A, the Group may fail to obtain the synergies, business expansion and other benefits initially anticipated. In addition, new business areas may bring business-specific risk factors through the M&A. These factors, together with deteriorating performance after a company becomes a subsidiary and the amortization or impairment of goodwill, may affect the Group’s operating results and financial position.」
Reconfirms the risks of failure to achieve synergies following M&A, deteriorating subsidiary performance, and goodwill amortization and impairment. - FY2019-Q3RestatedAnnual report
「During the nine-month period ended [the current third quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
States that there has been no material change in the risks of failure to achieve synergies and goodwill impairment following M&A. - FY2019-Q2RestatedAnnual report
「During the six-month period ended [the current second quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
States that there has been no material change in the risks of failure to achieve synergies and goodwill impairment following M&A. - FY2019-Q1RestatedAnnual report
「During the three-month period ended [the current first quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
States that there has been no material change in the risks of failure to achieve synergies and goodwill impairment following M&A. - FY2018MaterialisedAnnual report
「We recognized an impairment loss because the business earnings expected at the time of acquisition could no longer be anticipated.」
For Side UK Limited, impairment losses of ¥85.734 million on goodwill and ¥141.168 million on intangible assets were also recognized in the current fiscal year. - FY2018-Q3RestatedAnnual report
「During the nine-month period ended [the current third quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
States that there has been no material change in the risks of failure to achieve synergies and goodwill impairment following M&A. - FY2018-Q2RestatedAnnual report
「During the six-month period ended [the current second quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
States that there has been no material change in the risks of failure to achieve synergies and goodwill impairment following M&A. - FY2018-Q1RestatedAnnual report
「During the three-month period ended [the current first quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
States that there has been no material change from the previous fiscal year in the risks of failure to achieve synergies and goodwill impairment following M&A. - FY2017MaterialisedAnnual report
「We recognized an impairment loss because the business earnings expected at the time of acquisition could no longer be anticipated.」
Following the M&A, business earnings fell below the assumptions made at the time of acquisition, resulting in the recognition of impairment losses, including ¥161.128 million on goodwill relating to Side UK Limited.