Fluctuations in Performance and Cash Flow Due to Fair Value, Exits and Carried Interest
First written in FY2023. 6 of 7 entries say "Materialised", first in FY2025-H1. Latest entry: 2026-08-12.
Integral Group moved to the "Worse" side of this theme in 2025.
The whole theme swung hardest in 2025: 3 of 9 companies on the "Worse" side.
2 other companies' latest entry also says "Materialised".
- 2026-08-12MaterialisedEarnings
「As a result, revenue for the interim consolidated accounting period was ¥15,699 million, compared with ¥4,955 million in the prior-year period; operating profit was ¥12,748 million, compared with ¥2,890 million; interim profit before tax was ¥12,674 million, compared with ¥2,893 million; and interim profit attributable to owners of the parent was ¥8,766 million, compared with ¥1,701 million.」
The earnings swing from a year-on-year decline to substantial growth became evident as a result of realized carried interest and other factors. - FY2026-H1MaterialisedAnnual report
「As a result, revenue for the interim consolidated accounting period was ¥15,699 million, compared with ¥4,955 million in the prior-year period; operating profit was ¥12,748 million, compared with ¥2,890 million; interim profit before tax was ¥12,674 million, compared with ¥2,893 million; and interim profit attributable to owners of the parent was ¥8,766 million, compared with ¥1,701 million.」
Realized carried interest and fair-value movements caused revenue and profit to increase substantially year on year, demonstrating that earnings volatility can also materialize on the upside. - FY2025MaterialisedAnnual report
「As a result, revenue for the fiscal year was ¥13,655 million, down 56.3% year on year; operating profit was ¥9,256 million, down 64.4%; profit before tax was ¥9,264 million, down 64.3%; and profit for the year attributable to owners of the parent was ¥6,077 million, down 66.4%.」
Full-year results fluctuated because of fair-value movements, exits and timing differences in carried interest. Revenue and profit were substantially below the prior year, and cash flow from operating activities was an outflow of ¥1,380 million. - FY2025-H1MaterialisedAnnual report
「As a result, the aggregate change in fair value of portfolio companies in the private equity business and investment assets in the real estate investment business decreased year on year.」
The reduction in fair-value changes occurred in practice. Revenue declined 48.8% year on year to ¥4,955 million, and interim profit attributable to owners of the parent declined 64.1% to ¥1,701 million. - FY2023First statedAnnual report
「Because the fair value of the Group's investment portfolio is significantly affected by market conditions, profit or loss associated with changes in the fair value of investment portfolios held by the Group and its funds may fluctuate substantially.」
Likelihood is high and impact is high. The disclosure covers carried-interest clawbacks, fiscal-year fluctuations caused by exit timing and divergence between profit and operating cash flow.