Investment Losses Due to Affiliates’ Failure to Meet Business Plans
First written in FY2018. 3 of 5 entries say "Materialised", first in FY2020. Latest entry: FY2025.
Akatsuki moved to the "Worse" side of this theme in 2020, 2 years before the typical company in this theme (2022).
The whole theme swung hardest in 2019: 7 of 15 companies on the "Worse" side.
7 other companies' latest entry also says "Worsened".
- FY2025WorsenedAnnual report
「Provision for allowance for doubtful accounts 1,463 5,776」
The provision for allowance for doubtful accounts relating to loans and other receivables from affiliated companies increased from ¥1,463 million in the previous fiscal year to ¥5,776 million, indicating greater risk in recovering investments in and funds advanced to affiliated companies. It was disclosed that アカツキゲームス had negative net worth of ¥5,302 million as of the end of March 2025. - FY2023MaterialisedAnnual report
「During the current consolidated fiscal year, investment securities were written down by ¥1,693 million.」
Impairment losses of ¥1,693 million were recognized on investments in startups, affiliated companies and other entities due to factors including the issuers' financial condition and earnings outlook. - FY2021MaterialisedAnnual report
「Because a decision was made to withdraw from part of the business of certain affiliated companies, asset groups for which the investment amount exceeded the recoverable amount were written down to their recoverable amount, with the reductions recorded as losses on business restructuring.」
An affiliated company decided to withdraw from part of its business, resulting in losses on business restructuring of ¥437 million, including ¥351 million in impairment losses on buildings, structures and other assets. The recovery risk associated with investments in affiliated companies continues to materialize. - FY2020MaterialisedAnnual report
「During the consolidated fiscal year, the Group recognized impairment losses on the following asset groups.」
The value in use based on future cash flows for operating assets relating to affiliated companies in the Other Businesses segment was negative, resulting in impairment losses totaling ¥821 million. The recovery risk associated with investments in affiliated companies has materialized. - FY2018First statedAnnual report
「Because the excess earning power anticipated in the business plans considered at the time of acquiring certain affiliated companies was no longer recognized, the unamortized balance of goodwill was recorded at the end of the current consolidated fiscal year.」
The excess earning power based on the affiliated companies' business plans was no longer recognized, and an investment loss relating to affiliated companies of ¥1,107 million was recorded. This is an actual instance of investment recovery risk associated with M&A and investments materializing.