Debt guarantee risk if the share price declines for the employee stock ownership ESOP trust
First written in FY2021-Q1. 2 of 6 entries say "Restated". Latest entry: FY2026.
31 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「There were no borrowings recognised at the end of the consolidated fiscal year.」
Borrowings associated with the employee share ownership trust-type ESOP were eliminated at the fiscal year-end, eliminating the debt guarantee exposure if the share price falls. - FY2025MitigatedAnnual report
「The company's shares remaining in the trust are recognised as treasury shares in net assets at their carrying amount in the trust, excluding ancillary expenses. The carrying amount and number of these treasury shares were ¥277 million and 121,000 shares, respectively, for the consolidated fiscal year." Fiscal year ¥19 million」
Under the employee share ownership ESOP, shares remaining in the trust decreased to 121,000 and borrowings to ¥19 million. Although debt guarantee risk if the share price falls remains, exposure has declined from borrowings of ¥804 million and 267,000 shares in the previous fiscal year. - FY2023RestatedAnnual report
「As the company provides compensation for borrowings used by the employee share ownership trust to acquire the company's shares, if the trust is unable to repay its borrowing obligations in full due to a decline in the company's share price, the company will repay the remaining obligations to the lending bank.」
The company reconfirmed the debt guarantee risk associated with the employee share ownership trust-type ESOP if the share price falls. At the end of the fiscal year, the trust held 267,000 shares and borrowings amounted to ¥540 million. - FY2022RestatedAnnual report
「If the employee share ownership trust is unable to repay its borrowing obligations in full due to a decline in the share price, the company will repay the remaining obligations to the lending bank under the loss compensation agreement, so employees will not bear any additional burden.」
The company reconfirmed the debt guarantee risk associated with the employee share ownership ESOP if the share price falls. At the fiscal year-end, the trust held 356,800 shares and borrowings amounted to ¥804 million; no guarantee payment was reported. - FY2021-Q3Introduction of the scheme and specification of guarantee riskAnnual report
「As the company provides compensation for borrowings used by the employee share ownership trust to acquire the company's shares, if the trust is unable to repay its borrowing obligations in full due to a decline in the company's share price, the company will repay the remaining obligations to the lending bank." Carrying amount of borrowings recognised under the gross method Third quarter of the consolidated fiscal year ¥1,050 million」
The employee share ownership ESOP was introduced on 25 December 2020. The borrowings of ¥1,050 million associated with guarantee risk if the share price falls and the 459,000 shares held by the trust were specified. No default or guarantee payment was reported. - FY2021-Q1First statedAnnual report
「As the company provides compensation for borrowings used by the employee share ownership trust to acquire the company's shares, if the trust is unable to repay its borrowing obligations in full due to a decline in the company's share price, the company will repay the remaining obligations to the lending bank.」
Regarding the reintroduced employee share ownership ESOP, the company explicitly stated for the first time the guarantee risk that it would repay the remaining obligations if the trust were unable to repay its borrowings in full due to a decline in the share price.