Goodwill impairment risk from ROSECC’s continued operating losses
First written in FY2021. 3 of 8 entries say "Mitigated", first in FY2022-Q1. Latest entry: FY2024-Q2.
The whole theme swung hardest in 2026: 17 of 31 companies on the "Worse" side.
11 other companies' latest entry also says "Mitigated".
- FY2024-Q2MitigatedAnnual report
「During the current period, orders for large-scale equipment and consumables from the automotive-related industries, which had been recovering since the second half of the previous fiscal year, progressed steadily. As a result, revenue in the New Industries segment was ¥298 million, up 62.5% year on year, and operating profit was ¥25 million, compared with an operating loss of ¥15 million in the same quarter of the previous year.」
The New Industry segment, including ROSECC, reported operating income of ¥25 million and returned to profitability from an operating loss in the same period of the previous year. Earnings performance has improved following the impairment recognized in the previous fiscal year. - FY2024-Q1MitigatedAnnual report
「During the first quarter of the current fiscal year, orders for consumables from customers in the automotive-related industry continued to progress smoothly from the second half of the previous fiscal year. As a result, revenue in the New Industry segment was ¥120 million, up 57.0% year on year, and operating income was ¥5 million, compared with an operating loss of ¥23 million in the same quarter of the previous year.」
After an impairment loss related to ROSECC was recognized in the previous fiscal year, the New Industry segment reported operating income of ¥5 million in the current quarter, returning to profitability from an operating loss in the same period of the previous year. - FY2023MaterialisedAnnual report
「For ROSECC, the company revised its future business plan and, after reviewing future earnings and assessing recoverability, reduced the carrying amount to the recoverable amount and recognized the reduction as an impairment loss. The recoverable amount was measured based on future cash flows under the business plan, and because undiscounted future cash flows were negative, no specific discount rate was calculated.」
The company recognized an impairment loss of ¥95.691 million on goodwill and operating assets related to ROSECC, citing a revision to the business plan and deterioration in future cash flows, reducing the goodwill balance to zero. - FY2023-Q3RestatedAnnual report
「In addition, inquiries and orders for large-scale projects during the period were progressing smoothly, but scheduled sales were concentrated in the fourth quarter, so sales had not recovered in the current quarter. As a result, revenue in the New Industry segment was ¥308 million, down 17.0% year on year, and the segment recorded an operating loss of ¥16 million, compared with an operating loss of ¥17 million in the same quarter of the previous year.」
In the New Industry segment, including ROSECC, orders for large-scale projects were progressing smoothly, but sales had not recovered in the third quarter, and the operating loss of ¥16 million continued. - FY2023-Q1WorsenedAnnual report
「Revenue in the New Industry segment was ¥76 million, down 50.6% year on year, and the segment recorded an operating loss of ¥23 million, compared with operating income of ¥1 million in the same quarter of the previous year.」
The New Industry segment, including ROSECC, swung from operating income in the same period of the previous year to an operating loss, and the earnings performance of the business to which the goodwill is attributable deteriorated. - FY2022-Q3WorsenedAnnual report
「Revenue in the New Industry segment was ¥371 million, down 15.5% year on year, and the segment recorded an operating loss of ¥17 million, compared with an operating loss of ¥12 million in the same quarter of the previous year.」
The segment including ROSECC reported lower revenue year on year, and its operating loss also widened from the previous year. No goodwill impairment loss was reported. - FY2022-Q1MitigatedAnnual report
「Inquiries and sales of large-scale projects from the automotive-related industries in which we specialize progressed steadily. As a result, revenue in the New Industries segment was ¥155 million, up 161.1% year on year, and operating profit was ¥1 million, compared with an operating loss of ¥16 million in the same quarter of the previous year.」
The New Industry segment, which includes ROSECC, reported operating income of ¥1 million, and the operating loss related to the goodwill impairment risk from continued operating losses in the previous quarter was mitigated in the current quarter. - FY2021First statedAnnual report
「As operating losses have continued due to the spread of COVID-19, the company determined that there were indications of impairment in the asset group associated with the business to which the goodwill is attributable.」
The company disclosed for the first time that the ¥87.911 million of goodwill arising from the acquisition of ROSECC showed indications of impairment due to continued operating losses. However, because undiscounted future cash flows exceeded the carrying amount, no impairment loss was recognized for the period.