Recognition of Non-Operating Income, Non-Operating Expenses and an Extraordinary Loss
Showa Holdings Co.,Ltd., its consolidated subsidiaries, and its equity-method affiliate Group Lease PCL.
Production facilities and other assets of consolidated subsidiaries, and goodwill
Fluctuations in foreign exchange rates; mainly an increase in loans to subsidiaries; the performance of equity-method affiliates and the revaluation of their assets; the impact of foreign exchange rates on receivables and payables transactions with related companies and the collectibility of those receivables; an increase in borrowings from related companies; the performance and financial condition of subsidiaries; pending litigation; and a review of the recoverability of property, plant and equipment and other assets
¥171 million in foreign exchange gains (non-operating income, consolidated), ¥33 million in interest income (non-operating income, non-consolidated), ¥774 million in equity-method investment losses (non-operating expenses, consolidated), ¥68 million in provision for doubtful accounts (non-operating expenses, consolidated), ¥27 million in litigation costs (non-operating expenses, consolidated and non-consolidated), ¥27 million in interest expenses (non-operating expenses, non-consolidated), ¥495 million in provision for doubtful accounts (non-operating expenses, non-consolidated), and ¥33 million in impairment losses (extraordinary losses, consolidated; mainly comprising ¥18 million for production facilities and other assets and ¥14 million for goodwill)
Full fiscal year ending March 2026 (1 April 2025 to 31 March 2026)
Reflected in the full-year financial results summary for the fiscal year ending March 2026 under Japanese GAAP (consolidated), dated 15 May 2026. Not disclosed regarding revisions to the earnings forecast
Related procedures
Court costs related to litigation currently pending against the Company
The above non-operating income, non-operating expenses and extraordinary loss have been reflected in the full-year financial results summary for the fiscal year ending March 2026 under Japanese GAAP (consolidated), dated 15 May 2026.
| Item | Details |
|---|---|
| Event name | Recognition of Non-Operating Income, Non-Operating Expenses and an Extraordinary Loss |
| Date of occurrence | Recognized in the full fiscal year ending March 2026 (1 April 2025 to 31 March 2026); the foreign exchange gain was recognized as of 31 March 2026 |
| Subject Entity | Showa Holdings Co.,Ltd., its consolidated subsidiaries, and its equity-method affiliate Group Lease PCL. |
| Target Locations / Products | Production facilities and other assets of consolidated subsidiaries, and goodwill |
| Cause | Fluctuations in foreign exchange rates; mainly an increase in loans to subsidiaries; the performance of equity-method affiliates and the revaluation of their assets; the impact of foreign exchange rates on receivables and payables transactions with related companies and the collectibility of those receivables; an increase in borrowings from related companies; the performance and financial condition of subsidiaries; pending litigation; and a review of the recoverability of property, plant and equipment and other assets |
| Amount of Impact on Business Performance | ¥171 million in foreign exchange gains (non-operating income, consolidated), ¥33 million in interest income (non-operating income, non-consolidated), ¥774 million in equity-method investment losses (non-operating expenses, consolidated), ¥68 million in provision for doubtful accounts (non-operating expenses, consolidated), ¥27 million in litigation costs (non-operating expenses, consolidated and non-consolidated), ¥27 million in interest expenses (non-operating expenses, non-consolidated), ¥495 million in provision for doubtful accounts (non-operating expenses, non-consolidated), and ¥33 million in impairment losses (extraordinary losses, consolidated; mainly comprising ¥18 million for production facilities and other assets and ¥14 million for goodwill) |
| Accounting period in which recognized | Full fiscal year ending March 2026 (1 April 2025 to 31 March 2026) |
| Impact on Earnings Forecast | Reflected in the full-year financial results summary for the fiscal year ending March 2026 under Japanese GAAP (consolidated), dated 15 May 2026. Not disclosed regarding revisions to the earnings forecast |
| Type of litigation or proceeding | Court costs related to litigation currently pending against the Company |
| Outlook | The above non-operating income, non-operating expenses and extraordinary loss have been reflected in the full-year financial results summary for the fiscal year ending March 2026 under Japanese GAAP (consolidated), dated 15 May 2026. |
Items this document does not state (15)
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 foreign exchange gain resulted from fluctuations in foreign exchange rates, while the interest income was mainly attributable to an increase in loans to subsidiaries. The equity-method investment loss resulted from the performance of equity-method affiliates and the revaluation of their assets, mainly reflecting the performance of Group Lease PCL. The provisions for doubtful accounts resulted from changes in foreign exchange rates and collectibility in receivables and payables transactions with related companies, or from a review of the performance and financial condition of subsidiaries. The other items resulted from legal costs related to pending litigation, an increase in borrowings from subsidiaries, and a review of the recoverability of property, plant and equipment and other assets.