Komori
Occurring Fact4011Headwaters Co.,LtdInformation and Communications, Services and Others

Notice Regarding the Recognition of Non-operating Expenses and Extraordinary Losses

In the second quarter of the fiscal year ending December 2026, the Company recognized a derivative loss of ¥45 million and an equity-method investment loss of ¥79 million as non-operating expenses, and a loss on step acquisitions of ¥207 million as an extraordinary loss. Total losses amounted to ¥331 million.

Worth reading
42Recurring
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
331
¥ million
Wording
Definitive
How definitive the wording is.

Recording of non-operating expenses and extraordinary losses

Subject Entity

Headwaters Co.,Ltd (the equity-method affiliate that gave rise to the losses: BBDイニシアティブ株式会社)

Target Locations / Products

BBDイニシアティブ株式会社’s head office and the shares in that company previously held by the Company

Occurrence1 May 2026 (the date of the merger by absorption with BBDイニシアティブ株式会社; the period in which the losses were recognized was the cumulative consolidated period for the second quarter of the fiscal year ending December 2026)
This disclosure08/14/2026
Cause

A derivative loss from derivative transactions; temporary expenses arising from the relocation of BBDイニシアティブ株式会社’s head office and its merger, and amortization of the amount equivalent to goodwill; and the difference between the carrying amount and fair value resulting from the remeasurement of the shares previously held in connection with the merger by absorption

Amount of Impact on Business Performance

Non-operating expenses: derivative loss of ¥45 million and equity-method investment loss of ¥79 million. Extraordinary loss: loss on step acquisitions of ¥207 million.

Accounting period in which recognized

Cumulative consolidated period for the second quarter of the fiscal year ending December 2026

Event that occurred
ItemDetails
Event nameRecording of non-operating expenses and extraordinary losses
Date of occurrence1 May 2026 (the date of the merger by absorption with BBDイニシアティブ株式会社; the period in which the losses were recognized was the cumulative consolidated period for the second quarter of the fiscal year ending December 2026)
Subject EntityHeadwaters Co.,Ltd (the equity-method affiliate that gave rise to the losses: BBDイニシアティブ株式会社)
Target Locations / ProductsBBDイニシアティブ株式会社’s head office and the shares in that company previously held by the Company
CauseA derivative loss from derivative transactions; temporary expenses arising from the relocation of BBDイニシアティブ株式会社’s head office and its merger, and amortization of the amount equivalent to goodwill; and the difference between the carrying amount and fair value resulting from the remeasurement of the shares previously held in connection with the merger by absorption
Amount of Impact on Business PerformanceNon-operating expenses: derivative loss of ¥45 million and equity-method investment loss of ¥79 million. Extraordinary loss: loss on step acquisitions of ¥207 million.
Accounting period in which recognizedCumulative consolidated period for the second quarter of the fiscal year ending December 2026
Items this document does not state (18)
Date recognized / date notice receivedImpact on Earnings ForecastType 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 structureMeasures to prevent recurrenceDirectors' and officers' liabilityVoting rights ownership percentage before the changeVoting rights ownership percentage after the changeOutlookPlanned follow-up disclosure

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 derivative loss arose from derivative transactions conducted as part of the acquisition of shares in connection with the capital and business alliance. The equity-method investment loss resulted from temporary expenses associated with the relocation of BBDイニシアティブ株式会社’s head office and its merger, as well as the amortization of the amount equivalent to goodwill. The loss on step acquisitions arose because the remeasurement of the shares in BBDイニシアティブ株式会社 previously held by the Company in connection with the merger by absorption resulted in a difference between their carrying amount and fair value.

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Notice Regarding the Recognition of Non-operating Expenses and Extraordinary Losses | Headwaters Co.,Ltd (4011) timely disclosure | Komori