Investment and Financing Risks from Investee Performance and Market Fluctuations
First written in FY2016. 12 of 27 entries say "Worsened", first in FY2019. Latest entry: FY2026.
Ly moved to the "Worse" side of this theme in 2019, 3 years before the typical company in this theme (2022).
The whole theme swung hardest in 2019: 7 of 15 companies on the "Worse" side.
18 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「Mainly as a result of reducing the carrying amounts of investments accounted for using the equity method related to DEMAE-CAN CO.,LTD and LINE NEXT Corp. to their recoverable amounts, we recognized equity-method investment impairment losses of ¥7,168 million and ¥11,315 million, respectively.」
The risk of fluctuations in investee value materialized as impairment losses on equity-method investments of ¥7,168 million for DEMAE-CAN CO.,LTD and ¥11,315 million for LINE NEXT. - 2026-05-08MaterialisedEarnings
「Mainly as a result of reducing the carrying amounts of investments accounted for using the equity method related to DEMAE-CAN CO.,LTD and LINE NEXT Corp. to their recoverable amounts, we recognized equity-method investment impairment losses of ¥7,168 million and ¥11,315 million, respectively.」
Equity-method investment impairment losses were recognized for both DEMAE-CAN and LINE NEXT, making the impact of changes in the value of investees visible in the results. - FY2026-H1MaterialisedAnnual report
「As a result of reducing the carrying amount of the equity-method investment in DEMAE-CAN CO.,LTD to its recoverable amount, an impairment loss of ¥7,168 million on equity-method investments was recognized.」
An additional impairment loss of ¥7,168 million was recorded on the equity-method investment in DEMAE-CAN CO.,LTD, and the risk of fluctuations in investee value materialized as an actual loss. - FY2024RestatedAnnual report
「Mainly as a result of reducing the carrying amount of the equity-method investment in DEMAE-CAN CO.,LTD to its recoverable amount, an impairment loss of ¥22,345 million on equity-method investments was recognized.」
An impairment loss of ¥22,345 million was recorded on the equity-method investment in DEMAE-CAN CO.,LTD, and the risk of fluctuations in investee value continued to materialize as a loss. - FY2024-Q2Recognition of a gain on changes in an investment interestAnnual report
「Gain on changes in equity interest 19,262」
A gain on changes in equity interest of ¥19,262 million was recorded due to a change in the equity interest in Webtoon Entertainment Inc. Changes in the investee’s equity interest were reflected in current-period earnings. - FY2023WorsenedAnnual report
「As a result of reducing the carrying amount of the equity-method investment in DEMAE-CAN CO.,LTD to its recoverable amount, an impairment loss of ¥31,303 million on equity-method investments was recognized.」
The impairment loss on the equity-method investment in DEMAE-CAN CO.,LTD increased to ¥31.303 billion from ¥18.378 billion in the previous fiscal year. The risk of fluctuations in investee value continues to materialize as losses. - FY2023-Q3WorsenedAnnual report
「As a result of reducing the carrying amount of the equity-method investment in DEMAE-CAN CO.,LTD to its recoverable amount, an impairment loss of ¥31,303 million on equity-method investments was recognized.」
The impairment loss on the equity-method investment in DEMAE-CAN CO.,LTD increased to ¥31.303 billion from ¥18.378 billion in the cumulative third quarter of the previous fiscal year. Fluctuations in investee value have continued to materialize as losses. - FY2023-Q2Recognition of an investment valuation gainAnnual report
「“Other comprehensive income” under “Equity” includes valuation gains and losses of ¥70,850 million on PayPay Co., Ltd.’s preferred shares.」
A valuation gain or loss of ¥708.5 billion on PayPay’s preferred shares was recorded in other comprehensive income, quantifying the change in investment value. - FY2022MaterialisedAnnual report
「In the current consolidated fiscal year, an impairment loss of ¥18,378 million on equity-method investments was recorded. This resulted from determining that there were indications of impairment in the equity-method investment in DEMAE-CAN CO.,LTD, conducting an impairment test, and reducing its carrying amount to its recoverable amount.」
The risk of fluctuations in investee performance and value materialized as a ¥18.378 billion impairment loss on the equity-method investment in DEMAE-CAN CO.,LTD. - FY2022-Q3MaterialisedAnnual report
「In the condensed quarterly consolidated statement of income for the third quarter of the current fiscal year, an impairment loss of ¥18,378 million on equity-method investments was recorded. This resulted from reducing the carrying amount of the equity-method investment in DEMAE-CAN CO.,LTD to its recoverable amount.」
The risk of fluctuations in investee performance and value materialized as a ¥18,378 million impairment loss on the equity-method investment in DEMAE-CAN CO.,LTD. An excess loss of ¥11,707 million allocated to PayPay’s preferred shares was also recorded. - FY2022-Q2WorsenedAnnual report
「“Other” under “Equity” includes an excess loss of ¥6,965 million allocated to PayPay Co., Ltd.’s preferred shares.」
An excess loss of ¥6,965 million allocated to PayPay’s preferred shares was recorded in the reconciliation of Level 3 financial instruments measured at fair value, and earnings volatility from the investment in PayPay continued. - FY2022-Q1RestatedAnnual report
「“Other” under “Equity” includes an excess loss of ¥2,900 million allocated to PayPay Co., Ltd.’s preferred shares.」
An excess loss of ¥2,900 million allocated to PayPay’s preferred shares continued to be recorded, reaffirming the earnings volatility associated with investments and financing. - FY2021WorsenedAnnual report
「Profit for the period (Note 2) △82,501 △73,159 Selling, general and administrative expenses 89,516 103,010 Our group’s share △22,317 △18,289」
PayPay’s loss for the period was ¥73.159 billion, and our group’s share of the loss was ¥18.289 billion, indicating continued earnings volatility from investment in PayPay. The excess loss allocation to preferred shares also amounted to ¥13.789 billion. - FY2021-Q3WorsenedAnnual report
「“Other” under “Equity” includes an excess loss of ¥5,817 million allocated to PayPay Co., Ltd.’s preferred shares.」
The excess loss allocated to PayPay’s preferred shares amounted to ¥5,817 million, up from ¥3,001 million disclosed for the previous quarter. - FY2021-Q2WorsenedAnnual report
「“Other” includes an excess loss of ¥3,001 million allocated to PayPay Co., Ltd.’s preferred shares.」
An excess loss of ¥3,001 million allocated to PayPay’s preferred shares was disclosed as a loss related to fair value measurement, and earnings volatility from investments and financing has continued. - FY2021-Q1WorsenedAnnual report
「“Other” includes an excess loss of ¥3,976 million allocated to PayPay Co., Ltd.’s preferred shares.」
An excess loss of ¥3,976 million allocated to PayPay’s preferred shares was disclosed as a loss related to fair value measurement, and earnings volatility from investments and financing has continued. - FY2020WorsenedAnnual report
「Profit before tax and profit for the year attributable to owners of the parent increased year on year, despite the recognition of an equity-method investment loss of ¥22.3 billion, mainly from aggressive investment in PayPay, due to higher operating profit, more efficient investment in sales promotion expenses and other areas, and the recognition of a ¥10.8 billion gain on changes in the equity interest in PayPay Co., Ltd., among other factors.」
The full-year equity-method investment loss arising from aggressive investment in PayPay reached ¥22.3 billion, increasing earnings volatility from investments and financing. - FY2020-Q3WorsenedAnnual report
「Profit before tax and profit for the quarter attributable to owners of the parent increased year on year, despite the recognition of an equity-method investment loss of ¥15.6 billion, mainly from aggressive investment in PayPay, due to higher operating profit and the recognition of a ¥10.8 billion gain on changes in the equity interest in PayPay Co., Ltd., among other factors.」
The cumulative equity-method investment loss arising from aggressive investment in PayPay increased to ¥15.6 billion from ¥10.3 billion in the previous quarter. - FY2020-Q2WorsenedAnnual report
「Profit before tax and profit for the quarter attributable to owners of the parent decreased year on year, despite the recognition of a ¥10.8 billion gain on changes in the equity interest in PayPay Co., Ltd., due to a decline in operating profit and the recognition of a ¥10.3 billion equity-method investment loss as a result of aggressive investment in PayPay, which began providing services in October last year, among other factors.」
The equity-method investment loss arising from aggressive investment in PayPay increased to ¥10.3 billion from ¥5.7 billion in the previous quarter. Earnings volatility from investments and financing has continued. - FY2020-Q1WorsenedAnnual report
「Profit before tax for the quarter and profit for the quarter attributable to owners of the parent decreased year on year, despite the recognition of a ¥10.8 billion gain from a change in the Company's ownership interest in PayPay, due to a decrease in operating profit and the recognition of a ¥5.7 billion equity-method investment loss as a result of active investment in PayPay, which began services in the previous period, among other factors.」
An equity-method investment loss of ¥5.7 billion arising from aggressive investment in PayPay was recorded, resulting in earnings volatility from investments and financing during the quarter as well. - FY2019WorsenedAnnual report
「As a result of aggressive investment in PayPay, which began providing services during the current fiscal year, an equity-method investment loss of ¥18.3 billion was recorded.」
The ¥18.3 billion equity-method investment loss arising from the investment in PayPay was actually incurred, demonstrating the earnings volatility risk associated with investments and financing. - FY2019-Q3RestatedAnnual report
「During the 3rd quarter of the current consolidated fiscal year, there were no material changes in financial position, operating results or cash flows, including any abnormal fluctuations, or in the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」
It states that there have been no material changes in investment and financing risk arising from investee performance and market fluctuations. - FY2018-Q3RestatedAnnual report
「During the 3rd quarter of the current consolidated fiscal year, there were no material changes in financial position, operating results or cash flows, including any abnormal fluctuations, or in the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」
It states that there have been no material changes in investment and financing risk arising from investee performance and market fluctuations. - FY2018-Q1RestatedAnnual report
「During the 1st quarter of the current consolidated fiscal year, there were no material changes in financial position, operating results or cash flows, including any abnormal fluctuations, or in the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」
It states that there have been no material changes in investment and financing risk arising from investee performance and market fluctuations. - FY2017RestatedAnnual report
「Our group makes investments with business ties in mind or with a view to future partnerships, but the possibility may increase that investments and other funds committed through these investments will become unrecoverable.」
While continuing investments and financing aimed at creating business synergies and expanding operations, it reaffirms the risks of recovery shortfalls and impairment losses. - FY2017-Q3RestatedAnnual report
「During the 3rd quarter of the current consolidated fiscal year, there were no material changes in financial position, operating results or cash flows, including any abnormal fluctuations, or in the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」
It states that there have been no material changes in investment and financing risk arising from investee performance and market fluctuations. - FY2016First statedAnnual report
「Yahoo may make equity investments in or provide loans to other companies, but may be unable to obtain returns commensurate with those investments or may experience delays in recovering the funds.」
It describes the expansion of investments and financing through capital participation, joint ventures, the establishment of new companies, and loans to subsidiaries and associates, as well as the associated recovery and impairment-loss risks.