Emergence of asbestos-related compensation and litigation risk
First written in FY2016. 12 of 31 entries say "Worsened", first in FY2017. Latest entry: 2026-08-06.
A&A Material moved to the "Worse" side of this theme in 2016, 4 years before the typical company in this theme (2020).
The whole theme swung hardest in 2020: 4 of 6 companies on the "Worse" side.
2 other companies' latest entry also says "Worsened".
- 2026-08-06WorsenedEarnings
「当連結会計年度において、新たに和解案の提示を受けた訴訟等に対し訴訟損失引当金繰入額217百万円（前連結会計年度128百万円）を計上し、和解が成立した訴訟の和解金155百万円を訴訟損失引当金から取崩しており、これにより、2026年６月30日現在、連結貸借対照表に訴訟損失引当金209百万円（前連結会計年度155百万円）を計上しております。」
新たな和解案に対する引当金繰入額を計上し、訴訟損失引当金残高が前年度末から増加している。 - FY2026MitigatedAnnual report
「During the current consolidated fiscal year, the company recorded an expense for provisions for litigation losses of ¥128 million, compared with ¥2,097 million in the previous consolidated fiscal year, for lawsuits and other matters for which new settlement proposals had been presented, and reversed ¥2,070 million in settlement payments from provisions for litigation losses for lawsuits that had been settled. As a result, the company recorded provisions for litigation losses of ¥155 million in the consolidated balance sheet as of 31 March 2026, compared with ¥2,097 million in the previous consolidated fiscal year.」
As settlements were reached in multiple lawsuits and ¥2,070 million in settlement payments was reversed from provisions, the balance of provisions for litigation losses decreased from ¥2,097 million to ¥155 million. The additional ¥128 million provision for new settlement proposals remains. - FY2026-H1MitigatedAnnual report
「For the construction asbestos litigation involving the Tokyo First Group Action, a settlement was reached on 7 August 2025 and the settlement amount was finalized. Accordingly, the difference of ¥9 million between the finalized settlement amount and the provision for litigation losses was recorded as an expense for provisions for litigation losses. In addition, ¥1,216 million in settlement payments was reversed from the provision for litigation losses and recorded under other current liabilities. A settlement was also reached in the Tokyo Second Group Action on 7 August 2025, and ¥434 million in settlement payments was reversed from the provision for litigation losses. Settlements were reached in the Osaka Second and Third Group Actions on 8 August 2025, and ¥331 million in settlement payments was reversed from the provision for litigation losses and paid to the plaintiffs covered by the settlements.」
Settlements were reached in the Tokyo First and Second and Osaka Second and Third actions, and the reversal and payment of a total of ¥1,981 million in settlement amounts progressed. Provisions for litigation losses at the fiscal year-end decreased from ¥2,097 million at the end of the previous fiscal year to ¥224 million. Meanwhile, ¥88 million was newly recorded in preparation for a settlement proposal in the Kyoto Second action, and litigation risks remain. - FY2025WorsenedAnnual report
「The company recorded an expense for provisions for litigation losses of ¥2,097 million in the consolidated statement of income for the current consolidated fiscal year, compared with ¥9 million in the previous consolidated fiscal year, and, as of 31 March 2025, recorded provisions for litigation losses of ¥2,097 million in the consolidated balance sheet, compared with ¥4 million in the previous consolidated fiscal year. For the Tokyo First Group Action, the company recorded a ¥1,206 million provision for litigation losses in preparation for reaching an agreement in accordance with the settlement proposal.」
Provisions for litigation losses increased sharply from ¥4 million in the previous fiscal year to ¥2,097 million. Provisions were also recorded in preparation for settlement proposals and other matters relating to the Tokyo First, Tokyo Second, Osaka Second and Osaka Third actions, expanding the monetary impact of litigation risks. - FY2025-H1WorsenedAnnual report
「Sapporo Second Group Action On 26 September 2024, the Sapporo High Court handed down a judgment ordering the payment of damages and delay damages thereon by 3 companies, including the company. The company has appealed to the Supreme Court, but recorded a ¥135 million provision for litigation losses in preparation for the judgment becoming final as rendered by the original court.」
The Sapporo Second Group Action resulted in an order requiring payment by 3 companies. The company appealed and recorded a ¥135 million provision for litigation losses in preparation for the judgment becoming final. - FY2024MaterialisedAnnual report
「Following the Supreme Court's dismissal of the appeal and decision not to accept the petition for acceptance of the appeal on 21 February 2024, the companies discussed the allocation of damages and other amounts for which they were jointly and severally liable, and the company recorded an expense for provisions for litigation losses of ¥5 million. The company also paid ¥113 million in damages and delay damages to plaintiffs covered by the final judgment and reversed the same amount of provisions for litigation losses.」
In the Sapporo First Group Action, the Supreme Court dismissed the appeal and decided not to accept the petition for acceptance of the appeal, resulting in payment of ¥113 million in damages and other amounts and reversal of the same amount of provisions. The provision for litigation losses at the fiscal year-end was ¥4 million, while the potential impact of new lawsuits and judgments remains. - FY2024-Q3MaterialisedAnnual report
「Expense for provisions for litigation losses ¥4 million Compensation for asbestos-related health damage ¥87 million」
The company recorded a ¥4 million provision for litigation losses related to asbestos litigation and ¥87 million in compensation for asbestos-related health damage as an extraordinary loss. Compensation costs and litigation-related expenses continue to be incurred. - FY2024-Q2MaterialisedAnnual report
「For the portion for which the original judgment had been vacated and the case remanded by the Supreme Court on 17 May 2021, the Tokyo High Court on 31 May 2023 handed down a judgment ordering the payment of damages and delay damages thereon by 3 companies, including the company. The company has appealed to the Supreme Court, but recorded a ¥4 million provision for litigation losses in preparation for the judgment becoming final as rendered by the original court.」
The remand proceedings resulted in an order requiring payment by 3 companies. The company appealed and recorded a ¥4 million provision for litigation losses. In addition, it recorded ¥65 million in compensation for asbestos-related health damage during the cumulative period of the current quarter. - FY2024-Q1WorsenedAnnual report
「For the portion for which the original judgment had been vacated and the case remanded by the Supreme Court on 17 May 2021, the Tokyo High Court on 31 May 2023 handed down a judgment ordering the payment of damages and delay damages thereon by 3 companies, including the company. The company has appealed to the Supreme Court, but recorded a ¥4 million provision for litigation losses in preparation for the judgment becoming final as rendered by the original court.」
The remand proceedings resulted in an order requiring payment by 3 companies. The company appealed and recorded a ¥4 million provision for litigation losses in preparation for the judgment becoming final. - FY2023-Q2MaterialisedAnnual report
「During the cumulative period of the second quarter, the company recorded payments of damages of ¥304 million and compensation for asbestos-related health damage of ¥41 million. On 30 May 2022, the Sapporo High Court handed down a judgment ordering the payment of damages and delay damages thereon by 4 companies, including the company. The company has appealed to the Supreme Court, but recorded a ¥107 million provision for litigation losses in preparation for the judgment becoming final as rendered by the original court.」
In the asbestos lawsuits, the company paid ¥304 million in damages and recorded ¥41 million in compensation, while also recording a ¥107 million provision for litigation losses in the Sapporo First case. - FY2023-Q1WorsenedAnnual report
「On 30 May 2022, the Sapporo High Court handed down a judgment ordering the payment of damages and delay damages thereon by 4 companies, including the company. The company has appealed to the Supreme Court, but recorded a ¥107 million provision for litigation losses in preparation for the judgment becoming final as rendered by the original court. For the portion that had been accepted for hearing by the Supreme Court and remained pending, the Supreme Court on 3 June 2022 handed down a judgment denying damages against the company in part, and the original judgment was vacated in part and the case was remanded for further proceedings. The company consequently reversed ¥50 million of provisions for litigation losses.」
In the Sapporo First Group Action, an order requiring payment by 4 companies and a new ¥107 million provision were recorded. In the Yokohama Second case, damages were denied in part and ¥50 million of provisions were reversed, with judgments and provisions progressing on a case-by-case basis. - FY2022MitigatedAnnual report
「The company recorded an income from reversal of provisions for litigation losses of ¥19 million and an expense for provisions for litigation losses of ¥5 million in the consolidated statement of income for the current consolidated fiscal year. After paying ¥198 million in damages and reversing ¥503 million of provisions for litigation losses, the company had provisions for litigation losses of ¥50 million in the consolidated balance sheet as of 31 March 2022, compared with ¥567 million in the previous fiscal year.」
In the asbestos lawsuits, the company paid ¥198 million in damages and reversed ¥503 million of provisions, reducing the provision balance at the fiscal year-end from ¥567 million to ¥50 million. Meanwhile, pending cases in the Tokyo First and Yokohama Second actions and new judgments in the following fiscal year are also disclosed, indicating that the risks remain. - FY2022-Q1MaterialisedAnnual report
「In the construction asbestos Yokohama First Group Action, the Supreme Court dismissed the appeal and ruled not to accept the petition for acceptance of the appeal, so the company reversed ¥145 million of the provision for losses. As a result, the company is paying damages and delay damages to plaintiffs for whom the original judgment has become final.」
Following the Supreme Court's dismissal of the appeal and decision not to accept the petition for acceptance of the appeal in the Yokohama First Group Action, the company reversed ¥145 million of the provision for losses, while payments of damages and delay damages were made to plaintiffs covered by the final judgment. The company also recorded ¥96 million in compensation for asbestos-related health damage as an extraordinary loss. - FY2021WorsenedAnnual report
「The company recorded an expense of ¥369 million for provisions for litigation losses in the consolidated statement of income for the current consolidated fiscal year and, as of 31 March 2021, recorded provisions for litigation losses of ¥567 million in the consolidated balance sheet. In addition, in response to the plaintiffs' appeal, the Supreme Court on 17 May 2021 handed down a judgment ordering the payment of damages and delay damages thereon by 3 companies, including the company, in part,」
For the asbestos lawsuits, the company recorded ¥369 million in provision expenses during the fiscal year and ¥567 million in provisions for litigation losses at the fiscal year-end. The disclosure also refers to payment orders and remand proceedings under Supreme Court judgments, indicating expanding costs and legal developments. - FY2021-Q3WorsenedAnnual report
「As a result, the company is paying damages and delay damages to some plaintiffs for whom the original judgment has become final. For matters accepted for hearing by the Supreme Court, an oral hearing was held at the Supreme Court on 22 October 2020, but the company recorded a ¥145 million provision for litigation losses in preparation for the judgment becoming final as rendered by the original court. The company's appeal was dismissed by the Supreme Court on 28 January 2021, and it was decided that the petition for acceptance of the appeal would not be accepted for hearing, causing the original judgment to become final.」
In the Yokohama First case, damages were paid to some plaintiffs, while in the Kyoto First case, the original judgment became final following the Supreme Court's dismissal and other decisions. Provisions for litigation losses continue to be recorded, and litigation risks are progressing into actual payments and final judgments. - FY2021-Q2WorsenedAnnual report
「1) Yokohama First Group Action On 27 October 2017, the Tokyo High Court handed down a judgment ordering the payment of damages and delay damages thereon by the state and 4 companies, including the company. The company's appeal was dismissed by the Supreme Court on 6 August 2020, and it was decided that the petition for acceptance of the appeal would not be accepted for hearing, except in part. An oral hearing was also held at the Supreme Court on 22 October 2020, but the company recorded a ¥160 million provision for litigation losses in preparation for the judgment becoming final as rendered by the original court. 6) Yokohama Second Group Action On 28 August 2020, the Tokyo High Court handed down a judgment ordering the payment of damages and delay damages thereon by the state and 3 companies, including the company. The company has filed an appeal with the Supreme Court and petitioned for acceptance of the appeal, but has recorded a ¥356 million provision for litigation losses in preparation for the judgment becoming final as rendered by the original court.」
For the Yokohama First case, the filing of the appeal and its dismissal are reported. For the Yokohama Second case, an order requiring payment by 3 companies was issued, and a new ¥356 million provision for litigation losses was recorded in preparation for the judgment becoming final. - FY2021-Q1MaterialisedAnnual report
「Compensation for asbestos-related health damage 14」
The company recorded ¥14 million in compensation for asbestos-related health damage as an extraordinary loss in the first quarter, and compensation costs continue to be incurred. - FY2020MitigatedAnnual report
「As stated above, the company has recorded provisions for litigation losses based on the judgments of the respective High Courts, and therefore expects the impact on profit or loss to remain within a certain range even if the Supreme Court's judgment becomes final.」
While continuing to maintain provisions for pending asbestos lawsuits, the company indicates that the impact on profit or loss would remain within a certain range if the Supreme Court's judgment becomes final. - FY2020-Q3WorsenedAnnual report
「5) Fukuoka First Group Action On 11 November 2019, the Fukuoka High Court handed down a judgment ordering the payment of damages and delay damages thereon by the state and 4 companies, including the company. The company has filed an appeal with the Supreme Court and petitioned for acceptance of the appeal, but has recorded a ¥65 million provision for litigation losses in preparation for the judgment becoming final as rendered by the original court.」
The Fukuoka First Group Action resulted in an order requiring payment by 4 companies, and an additional ¥65 million provision for litigation losses was recorded in preparation for the judgment becoming final, indicating that litigation risks are expanding. - FY2020-Q1MaterialisedAnnual report
「These are compensation payments to people who died or are undergoing treatment due to asbestos-related health damage, were recognised as industrial accident cases, and for whom a causal relationship with our company's business has been established.」
The company recorded ¥20 million in compensation for asbestos-related health damage as an extraordinary loss in the first quarter, and compensation costs continue to be incurred. - FY2019-Q3MaterialisedAnnual report
「These are compensation payments to people who died or are undergoing treatment due to asbestos-related health damage, were recognised as industrial accident cases, and for whom a causal relationship with our company's business has been established.」
The company recorded ¥74 million in compensation for asbestos-related health damage as an extraordinary loss, and compensation costs were also incurred during the cumulative period of the current quarter, in addition to the pending lawsuits and provisions. - FY2019-Q2WorsenedAnnual report
「3) Kyoto First Group Action On 31 August 2018, the Osaka High Court handed down a judgment ordering the payment of damages and delay damages thereon by the state and 10 companies, including the company. The company has filed an appeal with the Supreme Court and petitioned for acceptance of the appeal, but has recorded a ¥41 million provision for litigation losses in preparation for the judgment becoming final as rendered by the original court. 4) Osaka First Group Action On 20 September 2018, the Osaka High Court handed down a judgment ordering the payment of damages and delay damages thereon by the state and 8 companies, including the company. The company has filed an appeal with the Supreme Court and petitioned for acceptance of the appeal, but has recorded a ¥44 million provision for litigation losses in preparation for the judgment becoming final as rendered by the original court.」
The Kyoto First and Osaka First cases resulted in orders requiring payment by the companies, and additional provisions for litigation losses of ¥41 million and ¥44 million, respectively, have been recorded in preparation for the judgments becoming final. - FY2019-Q1RestatedAnnual report
「As of the end of the first quarter of the fiscal year, our company had been sued for damages by plaintiffs who claimed to have contracted asbestos-related diseases while engaged in construction work and other activities. The government and more than 40 companies, including our company, were named as defendants. The claims against the government were based on state liability under the State Redress Act, while those against the companies were based on tort liability under the Civil Code or product liability under the Product Liability Act.」
The company continues to disclose the situation as previously reported, including pending lawsuits naming more than 40 companies as defendants in asbestos-related litigation and a ¥160 million provision for litigation losses related to the Yokohama First Group. - FY2018Divergence in litigation outcomes.Annual report
「In the appeal hearing for the Yokohama First Group Action, the Tokyo High Court issued a judgment on 27 October 2017 ordering the government and 4 companies, including our company, to pay damages and late-payment interest. By contrast, in the appeal hearing for the Tokyo First Group Action, the Tokyo High Court issued a judgment on 14 March 2018, like the first-instance judgment, denying claims for damages against the companies.」
In the Yokohama First Group Action, the company was ordered to pay damages as one of 4 companies and recognised a ¥160 million litigation loss provision, while in the Tokyo First Group Action, the court ruled that the companies were not liable for damages, indicating divergent litigation outcomes. - FY2018-Q3MaterialisedAnnual report
「These are compensation payments to people who died or are undergoing treatment due to asbestos-related health damage, were recognised as industrial accident cases, and for whom a causal relationship with our company's business has been established.」
The company recognised ¥52 million in compensation for asbestos-related health damage as an extraordinary loss, indicating that the previously identified litigation and compensation risks have resulted in actual costs. - FY2018-Q2WorsenedAnnual report
「In a lawsuit seeking damages from the government and 43 companies, including our company, brought by people who claimed to have contracted asbestos-related diseases while engaged mainly in construction work in Kanagawa Prefecture and by their heirs, the Tokyo High Court issued a judgment on 27 October 2017 ordering the government and 4 companies, including our company, to pay damages and late-payment interest. Our company has filed an appeal with the Supreme Court and petitioned for acceptance of the appeal, but has recognised a litigation loss provision of ¥160 million in preparation for the judgment becoming final as issued.」
In the lawsuit naming 43 companies as defendants, the Tokyo High Court ordered the government and 4 companies to make payments, and our company recognised a ¥160 million litigation loss provision in preparation for the judgment becoming final. - FY2017WorsenedAnnual report
「As of the end of the fiscal year, our company had been sued for damages by plaintiffs who claimed to have contracted asbestos-related diseases while engaged in construction work and other activities. The government and more than 40 companies, including our company, were named as defendants. At present, it is difficult to reasonably estimate the amount of future costs because the course of these lawsuits cannot be predicted.」
Regarding asbestos-related litigation, the company discloses lawsuits naming more than 40 companies as defendants, cases under appeal or pending, and the difficulty of reasonably estimating future costs, specifying the breadth and uncertainty of the risks. - FY2016MaterialisedAnnual report
「Going forward, the group's business performance and financial condition could be affected by compensation and support costs for asbestos-related health damage, as well as lawsuits seeking damages. On 29 January 2016, the Kyoto District Court issued a judgment ordering the government and 9 companies, including our company, to pay damages.」
In addition to the possibility of future costs, the company discloses events that have already occurred, including the recognition of compensation expenses, the filing of lawsuits and an order requiring 9 companies to pay damages.