Notice Regarding the Expected Recognition of Non-operating Expenses (Consolidated) and Extraordinary Losses (Non-consolidated and Consolidated)
Investments in 株式会社SHIFT (the filing company) and its equity-method affiliate, Rise Consulting Group,Inc.
Shares in Rise Consulting Group,Inc. and shares in Gurunavi,Inc.
The market value declined substantially compared with the acquisition cost.
An impairment loss on shares of an affiliate of ¥4.5 billion (approximate) is expected to be recognized as an extraordinary loss in the separate financial statements. An impairment loss on investment securities of ¥300 million (approximate) is expected to be recognized as an extraordinary loss in both the separate and consolidated financial statements. An equity-method investment loss is expected to be recognized as a non-operating expense in the consolidated financial statements, but the amount is currently under review.
Cumulative third quarter of the fiscal year ending August 2026 (1 September 2025 to 31 May 2026)
The impact on the Group's results and financial position is being determined. No revision to the earnings forecast has been announced.
Company response
The amounts are expected to be finalized following the audit and review by the accounting auditor.
The amounts will be finalized based on future market conditions and following the audit and review by the accounting auditor. If material changes in business conditions result in an impact, the Company will make a prompt disclosure once the details become clear.
The confirmed figures will be announced again with the financial results for the third quarter of the fiscal year ending August 2026, scheduled for 15 July 2026.
| Item | Details |
|---|---|
| Event name | Notice Regarding the Expected Recognition of Non-operating Expenses (Consolidated) and Extraordinary Losses (Non-consolidated and Consolidated) |
| Subject Entity | Investments in 株式会社SHIFT (the filing company) and its equity-method affiliate, Rise Consulting Group,Inc. |
| Target Locations / Products | Shares in Rise Consulting Group,Inc. and shares in Gurunavi,Inc. |
| Cause | The market value declined substantially compared with the acquisition cost. |
| Amount of Impact on Business Performance | An impairment loss on shares of an affiliate of ¥4.5 billion (approximate) is expected to be recognized as an extraordinary loss in the separate financial statements. An impairment loss on investment securities of ¥300 million (approximate) is expected to be recognized as an extraordinary loss in both the separate and consolidated financial statements. An equity-method investment loss is expected to be recognized as a non-operating expense in the consolidated financial statements, but the amount is currently under review. |
| Accounting period in which recognized | Cumulative third quarter of the fiscal year ending August 2026 (1 September 2025 to 31 May 2026) |
| Impact on Earnings Forecast | The impact on the Group's results and financial position is being determined. No revision to the earnings forecast has been announced. |
| Investigation structure | The amounts are expected to be finalized following the audit and review by the accounting auditor. |
| Outlook | The amounts will be finalized based on future market conditions and following the audit and review by the accounting auditor. If material changes in business conditions result in an impact, the Company will make a prompt disclosure once the details become clear. |
| Planned follow-up disclosure | The confirmed figures will be announced again with the financial results for the third quarter of the fiscal year ending August 2026, scheduled for 15 July 2026. |
Items this document does not state (15)
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 the relevant shares declined substantially compared with their acquisition cost.