Failure to Achieve Synergies and Impairment in Investee Businesses
First written in FY2024. 2 of 7 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
- FY2026RestatedAnnual report
「If an equity-method affiliate fails to generate the synergies, business expansion or other effects initially anticipated by the company, or fails to meet its business plan because of business-specific risks such as changes in the market for that business, and the company records an impairment loss, its results may be affected.」
Reconfirms the risks of failure to achieve synergies or business plans, market changes and impairment losses for investments in Libertyship and Upnow. - FY2026-H1Additional investeeAnnual report
「During the interim accounting period, we acquired shares of Upnow Co., Ltd., which develops and operates an in-house reservation system specialized for rental spaces, making it an equity-method affiliate.」
Added Upnow as an investee affiliate. The company stated that there had been no material change in business risks. - FY2025RestatedAnnual report
「If an equity-method affiliate fails to generate the synergies, business expansion or other effects initially anticipated by the company, or fails to meet its business plan because of business-specific risks such as changes in the market for that business, and the company records an impairment loss, its results may be affected.」
Reconfirms the risks of failure to achieve synergies or business plans, market changes and impairment losses in investments in affiliates. - FY2025-H1Investee specifiedAnnual report
「Shares in affiliates are unlisted shares acquired mainly to generate synergies with existing businesses and expand business areas, and are stated at cost as their balance-sheet value because no market price is available.」
Specifies the M&A and investee risk as a ¥72.889 million investment in Libertyship. No decline in excess earning power was identified and no valuation loss was recorded. - FY2024First statedAnnual report
「If an equity-method affiliate fails to generate the synergies, business expansion or other effects initially anticipated by the company, or fails to meet its business plan because of business-specific risks such as changes in the market for that business, and the company records an impairment loss, its results may be affected.」
Discloses the risks of failing to achieve synergies or business plans and recording impairment losses in investees, with due diligence and PMI as responses.