Impairment risk for production facilities

「As the fixed assets held by our Miyako Plant, Hyogo Plant and Tokyo Head Office were expected to remain difficult to recover the investment amount, their carrying value was reduced to the recoverable amount, and the decrease of ¥59 million was recognized as an impairment loss and recorded as an extraordinary loss.」

「As the fixed assets at our Miyako Plant, Hyogo Plant and Tokyo Head Office were expected to be difficult to recover the investment amount due to declining profitability, their carrying value was reduced to the recoverable amount, and the decrease of ¥185 million was recognized as an impairment loss and recorded as an extraordinary loss.」

「As the fixed assets held by our Miyako Plant are expected to remain difficult to recover the investment amount, their carrying value was reduced to the recoverable amount, and the decrease of ¥53 million was recognized as an impairment loss and recorded as an extraordinary loss. No impairment loss was recognized for domestic asset groups other than the Miyako Plant because the recoverable amount of the related assets exceeded their carrying value.」

「For the domestic asset groups other than the Miyako plant, no impairment loss was recognized because the recoverable amount of the related assets exceeded their carrying amount.」

「For fixed assets at the company’s Kitakami, Miyako and Hyogo plants, Tokyo head office and other locations, the carrying amount was reduced to the recoverable amount because the investment was expected to remain difficult to recover. The resulting ¥307 million was recognized as an impairment loss in extraordinary losses. In addition, because Pintec Co., Ltd., a consolidated subsidiary of the company, had decided to withdraw from its business and the assets were no longer expected to be used, their carrying amount was reduced to the recoverable amount. The resulting ¥86 million was recognized as an impairment loss in extraordinary losses.」

「In addition, because our consolidated subsidiary 株式会社ピンテック had decided to withdraw from the business, the fixed assets it held were no longer expected to be used. We therefore reduced their carrying amounts to their recoverable amounts and recognized the resulting reduction of ¥86 million as an impairment loss under extraordinary losses.」

「For fixed assets at the company’s Kitakami, Miyako and Hyogo plants, Tokyo head office and other locations, the carrying amount was reduced to the recoverable amount because the investment was expected to remain difficult to recover. The resulting ¥179 million was recognized as an impairment loss in extraordinary losses. In addition, because Pintec Co., Ltd., a consolidated subsidiary of the company, had decided to withdraw from its business and the assets were no longer expected to be used, their carrying amount was reduced to the recoverable amount. The resulting ¥86 million was recognized as an impairment loss in extraordinary losses.」

「For fixed assets held by the company’s Kitakami, Miyako and Hyogo plants, Tokyo head office and other locations, the carrying amount was reduced to the recoverable amount because the investment was expected to remain difficult to recover. The resulting ¥118 million was recognized as an impairment loss in extraordinary losses.」

「For fixed assets held by the company, the carrying amount was reduced to the recoverable amount because the investment was expected to be difficult to recover due to declining profitability. The resulting ¥297.924 million was recognized as an impairment loss in extraordinary losses.」

「For fixed assets held by the company’s Kitakami, Miyako and Hyogo plants, Tokyo head office and other locations, the carrying amount was reduced to the recoverable amount because the investment was expected to remain difficult to recover. The resulting ¥223.595 million was recognized as an impairment loss in extraordinary losses.」

「For fixed assets held by the company’s Kitakami, Miyako and Hyogo plants, Tokyo head office and other locations, the carrying amount was reduced to the recoverable amount because the investment was expected to remain difficult to recover. The resulting ¥101.331 million was recognized as an impairment loss in extraordinary losses.」

「For fixed assets held by the company’s Kitakami, Miyako and Hyogo plants, Tokyo head office and other locations, the carrying amount was reduced to the recoverable amount because the investment was expected to remain difficult to recover. The resulting ¥55.102 million was recognized as an impairment loss in extraordinary losses.」

「For fixed assets held by the company, the carrying amount was reduced to the recoverable amount because the investment was expected to be difficult to recover due to declining profitability. The resulting ¥159.926 million was recognized as an impairment loss in extraordinary losses.」

「For fixed assets held by the company’s Kitakami, Miyako and Hyogo plants, Tokyo head office and other locations, the carrying amount was reduced to the recoverable amount because the investment was expected to remain difficult to recover. The resulting ¥68.380 million was recognized as an impairment loss in extraordinary losses.」

「For fixed assets held by the company’s Kitakami, Miyako and Hyogo plants, Tokyo head office and other locations, the carrying amount was reduced to the recoverable amount because the investment was expected to remain difficult to recover. The resulting ¥47.963 million was recognized as an impairment loss in extraordinary losses.」

「For fixed assets held by the company’s Kitakami, Miyako and Hyogo plants, Tokyo head office and other locations, the carrying amount was reduced to the recoverable amount because the investment was expected to remain difficult to recover. The resulting ¥30.348 million was recognized as an impairment loss in extraordinary losses.」

「At the Kitakami and Miyako plants, because the recovery of the investment was expected to be difficult due to lower profitability, we reduced the carrying amounts to their recoverable amounts and recognized the resulting reduction of ¥16.727 million as an impairment loss under extraordinary losses. In addition, at our Tokyo head office, Hyogo plant and other locations, as stated under Additional Information, we reviewed our accounting estimates during the second-quarter cumulative period in light of the spread of COVID-19. As a result, we reduced the carrying amounts to their recoverable amounts and recognized the resulting reduction of ¥686.504 million as an impairment loss under extraordinary losses.」

「In addition, as stated under Additional Information, at our Tokyo head office, Hyogo plant and other locations, we reviewed our accounting estimates in light of the spread of COVID-19 through the end of the second-quarter cumulative period. As a result, we reduced the carrying amounts to their recoverable amounts and recognized the resulting reduction of ¥676.566 million as an impairment loss under extraordinary losses.」

「At the company’s Kitakami and Miyako plants, the carrying amount was reduced to the recoverable amount because the investment was expected to be difficult to recover due to declining profitability. The resulting ¥10.657 million was recognized as an impairment loss in extraordinary losses.」

「At the Kitakami and Miyako factories, because the decline in profitability was expected to make recovery of the investments difficult, the carrying amounts were reduced to their recoverable amounts, and the resulting reduction of ¥2,113,219 thousand was recorded as an impairment loss under extraordinary losses.」

「At PUNCH INDUSTRY MANUFACTURING VIETNAM CO. LTD., a consolidated subsidiary of the company, the carrying amount was reduced to the recoverable amount because the investment was expected to be difficult to recover due to declining profitability. The resulting ¥848.624 million was recognized as an impairment loss in extraordinary losses.」

「Depending on the profit and loss and cash-flow conditions at the Company’s sites and Group companies, the Group’s performance and financial condition may be affected.」