Failure to Achieve Expected Results from Acquisitions and Business Investments and Impairment Risk
First written in FY2021. 4 of 7 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2020: 28 of 83 companies on the "Worse" side.
88 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「As part of its strategic initiatives, the group conducts M&A and business investments globally. Although it conducts detailed due diligence on target companies and businesses and works to mitigate risks, if future economic conditions and changes in the operating environment lead to a determination that the expected results cannot be achieved, impairment losses on investments in affiliates or goodwill may arise, potentially affecting the group's operating results and financial position.」
While continuing to pursue acquisitions and business investments, the company is reaffirming its approach of addressing the risks of valuation losses and goodwill impairment if expected results are not achieved through due diligence. - 2026-05-13OtherEarnings forecast revision
「This settlement brought all proceedings in the lawsuit to an end.」
The settlement and conclusion of the SNB lawsuit are described in a separate thread, rather than the broader risks associated with acquisitions and business investments as a whole. - FY2026-H1RestatedAnnual report
「Our group considers this matter to constitute force majeure and believes that the parties differ in their views regarding the scope of contractual liability. Based also on the views of external legal counsel, we appealed the judgment. At this point, although the progress of the appeal and its outcome may affect the group's financial position and operating results, it is difficult to reasonably estimate whether liability for damages exists or the amount thereof.」
Regarding the damages judgment concerning the robbery at SNB, the company has appealed and is reaffirming its explanation that it is difficult to reasonably estimate whether liability for damages exists or the amount thereof. - FY2025MaterialisedAnnual report
「Net income attributable to owners of the parent declined year on year, mainly because the company recorded an impairment loss on goodwill following weak sales at Nichino India Pvt. Ltd.」
The risk of goodwill impairment arising when acquisitions and business investments fail to deliver their expected results has materialised in the form of weak sales at Nichino India and the recognition of an impairment loss. - FY2024-Q3RestatedAnnual report
「Our group may face litigation and other legal proceedings with business partners and third parties in connection with its domestic and overseas operations. If material litigation or other proceedings are brought, they may affect the group's operating results and financial position.」
The company is reaffirming the possibility that litigation and other proceedings may affect operating results and financial position as a business risk, including the dispute involving SNB. - FY2022RestatedAnnual report
「As part of its strategic initiatives, the group conducts M&A and business investments globally. Although it conducts detailed due diligence on target companies and businesses and works to mitigate risks, if future economic conditions and changes in the operating environment lead to a determination that the expected results cannot be achieved, impairment losses on investments in affiliates or goodwill may arise, potentially affecting the group's operating results and financial position.」
The company has reconfirmed its global M&A and business investments, the risk of impairment losses and goodwill impairment if expected results are not achieved, and the use of due diligence as a mitigation measure. - FY2021First statedAnnual report
「As part of its strategic initiatives, the group conducts M&A and business investments globally. Although it conducts detailed due diligence on target companies and businesses and works to mitigate risks, if future economic conditions and changes in the operating environment lead to a determination that the expected results cannot be achieved, impairment losses on investments in affiliates or goodwill may arise, potentially affecting the group's operating results and financial position.」
While continuing global M&A and business investments, the company has presented the risk of impairment losses on investments in affiliates and goodwill if expected results are not achieved, together with due diligence as a mitigation measure, as a separate risk.