Risk of M&A and Business Investment Outcomes Deviating from Plan
First written in FY2016. 2 of 7 entries say "Restated". Latest entry: FY2026.
Air Water moved to the "Worse" side of this theme in 2019, 2 years before the typical company in this theme (2021).
The whole theme swung hardest in 2020: 28 of 84 companies on the "Worse" side.
10 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「For past investment projects, the Company reviewed its business plans based on the business environment and future profitability and examined recoverability. As a result, it recognized ¥107.981 billion in impairment losses on goodwill and fixed assets, mainly relating to overseas businesses.」
Regarding the risk of M&A and business investment results deviating from plan, the company recorded ¥107,981 million in impairment losses, primarily in overseas businesses, and the impact expanded substantially. - FY2026-H1WorsenedAnnual report
「At Air Water India Private Limited, based on the status of industrial gas sales in India, the risk of future declines in selling prices was incorporated into the forecast of future sales, resulting in a decline in the excess earning power anticipated at the time of the acquisition.」
In the Indian industrial gas business following the acquisition, excess earning power declined to the point that the risk of lower selling prices was incorporated, increasing the risk that the acquisition investment would deviate from plan. The company recorded an impairment loss of ¥10,195 million on goodwill in the Indian business. - FY2025MaterialisedAnnual report
「This was mainly because a review of the future business plan for the frozen broccoli business in the Agri & Foods segment reduced the excess earnings power assumed at the time of acquisition. Accordingly, the carrying amounts of the related assets and goodwill were reduced to their recoverable amounts, and an impairment loss of ¥889 million was recorded on goodwill.」
In the acquired frozen broccoli business, excess earning power declined below the level assumed at the time of acquisition, resulting in an impairment loss of ¥1.089 billion, including ¥889 million of goodwill. - FY2020-Q1MaterialisedAnnual report
「The company recorded an impairment loss because profitability had diverged from the plan in place at the time of acquisition.」
It was disclosed that profitability at an agriculture and food-related subsidiary acquired through M&A diverged from the plan at the time of acquisition, resulting in the recognition of an impairment loss of ¥2,297 million. The risk of business investment deviating from plan has materialized. - FY2018RestatedAnnual report
「In recent years, the group has actively pursued M&A to expand its business operations. If business investments deviate from the initial plans, they may affect the group's operating results and financial position.」
While continuing its M&A activities, the company continues to disclose the risk that investment results may deviate from the original plan. - FY2017RestatedAnnual report
「In recent years, the group has actively pursued M&A to expand its business operations. If business investments deviate from the initial plans, they may affect the group's operating results and financial position.」
While continuing its M&A activities, the company continues to disclose the risk that investment results may deviate from the original plan. - FY2016First statedAnnual report
「In recent years, the group has actively pursued M&A to expand its business operations. If business investments deviate from the initial plans, they may affect the group's operating results and financial position.」
While using M&A as a means of growth, the company identifies the possibility that investment results may diverge from the initial plan as a risk.