Risk of poor performance and investment valuation relating to equity-method affiliates
First written in FY2025. 4 of 7 entries say "Mitigated", first in 2026-04-30. Latest entry: 2026-07-31.
The whole theme swung hardest in 2019: 2 of 7 companies on the "Worse" side.
10 other companies' latest entry also says "Mitigated".
- 2026-07-31MitigatedFinancial results
「As the performance of the equity-method affiliate improved, the loss narrowed year on year, and ordinary profit was ¥492.048 million, up 54.1%.」
The company states that improved performance at the equity-method affiliate reduced the year-on-year loss from equity-method investment losses. - FY2026MitigatedAnnual report
「Although the performance of equity-method affiliates was trending upward, it had not yet contributed to profits. Ordinary profit was ¥2,222.786 million, up 42.2% from the previous fiscal year, due in part to the recognition of equity-method investment losses in non-operating expenses.」
The failure of affiliates to contribute profits and the investment losses continued, but equity-method investment losses declined from ¥34.768 million to ¥1.727 million, and performance was described as trending upward. - FY2026-H1RestatedAnnual report
「On the other hand, ordinary profit was ¥906.681 million, up 37.8% year on year, due in part to the limited contribution from equity-method affiliates and the recognition of equity-method investment losses in non-operating expenses.」
Continues to report the limited profit contribution from equity-method affiliates and the recognition of equity-method investment losses. - FY2025First statedAnnual report
「Ordinary profit was ¥1,562.981 million, due in part to the limited contribution from equity-method affiliates and the recognition of equity-method investment losses in non-operating expenses. If assumptions need to be revised, such as when an affiliate's business plan falls significantly short, impairment losses may be recognized in the next consolidated fiscal year.」
In addition to the limited profit contribution from an equity-method affiliate and the resulting investment loss, states for the first time that the goodwill-equivalent amount relating to the equity method included in investments in affiliates, totaling ¥921.380 million, and customer-related assets of ¥489.848 million may be impaired if the business plan underperforms.