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Notice Regarding the Recording of an Extraordinary Loss (Impairment Loss)

As the profitability of consolidated subsidiary NINJAPAN株式会社 fell below expectations, the company fully impaired goodwill and tangible fixed assets related to the business and recorded a ¥47 million extraordinary loss.

Worth reading
45Recurring
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Deterioration
Direction inferred from the company’s description.
Scale
47
¥ million
Wording
Conditional
How definitive the wording is.

Recognition of Extraordinary Loss (Impairment Loss)

Subject Entity

Consolidated subsidiary NINJAPAN株式会社

Target Locations / Products

Goodwill arising from the acquisition of shares in NINJAPAN株式会社 and tangible fixed assets related to the business

This disclosure10/28/2026
Cause

The result of reviewing NINJAPAN株式会社's future earnings outlook and other factors after its profitability fell below expectations

Amount of Impact on Business Performance

¥47 million impairment loss (extraordinary loss)

Accounting period in which recognized

The second-quarter consolidated accounting period of the fiscal year ending March 2027

Impact on Earnings Forecast

As of now, the full-year consolidated earnings forecast for the fiscal year ending March 2027 remains unchanged from the consolidated earnings forecast announced on 30 April 2026. If a revision to the earnings forecast becomes necessary, the company will make a timely disclosure.

Company response

Measures to prevent recurrence

Strengthening the business foundation, including rebranding; accelerating the monetization of new businesses; and enforcing cost controls

Outlook

The company will strengthen its business foundation, including through rebranding, accelerate the monetization of new businesses, and enforce cost controls to improve profitability. It will carefully assess the future business environment and the impact on results.

Planned follow-up disclosure

If a revision to the earnings forecast becomes necessary, the company will make a timely disclosure.

Event that occurred
ItemDetails
Event nameRecognition of Extraordinary Loss (Impairment Loss)
Subject EntityConsolidated subsidiary NINJAPAN株式会社
Target Locations / ProductsGoodwill arising from the acquisition of shares in NINJAPAN株式会社 and tangible fixed assets related to the business
CauseThe result of reviewing NINJAPAN株式会社's future earnings outlook and other factors after its profitability fell below expectations
Amount of Impact on Business Performance¥47 million impairment loss (extraordinary loss)
Accounting period in which recognizedThe second-quarter consolidated accounting period of the fiscal year ending March 2027
Impact on Earnings ForecastAs of now, the full-year consolidated earnings forecast for the fiscal year ending March 2027 remains unchanged from the consolidated earnings forecast announced on 30 April 2026. If a revision to the earnings forecast becomes necessary, the company will make a timely disclosure.
Measures to prevent recurrenceStrengthening the business foundation, including rebranding; accelerating the monetization of new businesses; and enforcing cost controls
OutlookThe company will strengthen its business foundation, including through rebranding, accelerate the monetization of new businesses, and enforce cost controls to improve profitability. It will carefully assess the future business environment and the impact on results.
Planned follow-up disclosureIf a revision to the earnings forecast becomes necessary, the company will make a timely disclosure.
Items this document does not state (15)
Date of occurrenceDate recognized / date notice receivedType of litigation or proceedingCourt or authorityPlaintiffDefendantDate of filing / date of actionClaim amount / surcharge amountAmount of receivables at risk of non-collection or delayed collectionSuspended operationsScheduled resumption dateInvestigation structureDirectors' and officers' liabilityVoting rights ownership percentage before the changeVoting rights ownership percentage after the change

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 company recorded an impairment loss after NINJAPAN株式会社's profitability fell below expectations and it reviewed the company's future earnings outlook and other factors.

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