Risk of insufficient returns and additional capital contributions on investments in Brazilian affiliates
First written in FY2016. 17 of 32 entries say "Mitigated", first in FY2019-Q1. Latest entry: FY2026.
Toyo Engineering moved to the "Worse" side of this theme in 2023, 2 years after the typical company in this theme (2021).
The whole theme swung hardest in 2020: 28 of 84 companies on the "Worse" side.
21 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「The current consolidated fiscal year (Guarantees and guarantee commitments) Other ¥8 million Performance guarantees Total ¥8 million」
Guarantees and related liabilities decreased from ¥38 million in the previous fiscal year to ¥8 million, reducing disclosed guarantee exposure. - FY2026-H1MitigatedAnnual report
「The interim period of the current consolidated fiscal year (30 September 2025) (Guarantees and guarantee commitments) Guaranteed party Amount Description Other ¥14 million Performance guarantees, etc. Total ¥14 million」
Guarantees and related liabilities decreased from ¥38 million at the end of the previous consolidated fiscal year to ¥14 million, reducing disclosed guarantee exposure. - FY2025MitigatedAnnual report
「The current consolidated fiscal year (Guarantees and guarantee commitments) Other ¥38 million Capital contribution guarantees, etc. Total ¥38 million」
After the Brazil-related affiliate became a consolidated subsidiary, guarantees and related liabilities decreased substantially from ¥15,376 million in the previous fiscal year to ¥38 million. However, the change in presentation includes the impact of a change in the scope of consolidation. - FY2025-H1MitigatedAnnual report
「The interim period of the current consolidated fiscal year (30 September 2024) (Guarantees and guarantee commitments) Guaranteed party Amount Description Other ¥40 million Capital contribution guarantees, etc. Total ¥40 million」
Guarantees and related liabilities decreased substantially from ¥15,376 million at the end of the previous consolidated fiscal year to ¥40 million. This includes changes in the presentation of guarantees following the conversion of the Brazil-related affiliate into a consolidated subsidiary, but disclosed guarantee exposure has contracted. - FY2024WorsenedAnnual report
「TSE S.A. ¥15,318 million Loan guarantees Other ¥57 million Capital contribution guarantees, etc. Total ¥15,376 million」
Guarantees and related liabilities to Brazil-related affiliates increased from ¥2,290 million in the previous fiscal year to ¥15,376 million. A ¥15,318 million loan guarantee for TSE S.A. was reported, substantially expanding guarantee exposure. - FY2024-Q3WorsenedAnnual report
「Toyo Setal Empreendimentos Ltda. ¥13,371 million Loan guarantees Other ¥94 million Capital contribution guarantees, etc. Total ¥13,465 million」
Guarantees and related liabilities, including those of Brazil-related affiliates, increased from ¥2,290 million at the end of the previous consolidated fiscal year to ¥13,465 million. The loan guarantee for Toyo Setal also increased from ¥2,274 million to ¥13,371 million, further expanding guarantee exposure. - FY2024-Q2WorsenedAnnual report
「Toyo Setal Empreendimentos Ltda. ¥12,288 million Loan guarantees Other ¥17 million Performance guarantees Total ¥12,306 million」
Guarantees and related liabilities, including those of Brazil-related affiliates, increased substantially from ¥2,290 million at the end of the previous consolidated fiscal year to ¥12,306 million. The loan guarantee for Toyo Setal Empreendimentos Ltda. also increased from ¥2,274 million to ¥12,288 million, further expanding guarantee exposure. - FY2024-Q1WorsenedAnnual report
「Toyo Setal Empreendimentos Ltda. ¥7,591 million Loan guarantees Other ¥17 million Performance guarantees Total ¥7,609 million」
Guarantees and related liabilities, including those of Brazil-related affiliates, increased substantially from ¥2,290 million at the end of the previous consolidated fiscal year to ¥7,609 million. The loan guarantee for Toyo Setal Empreendimentos Ltda. also increased from ¥2,274 million to ¥7,591 million, further expanding guarantee exposure. - FY2023WorsenedAnnual report
「Toyo Setal Empreendimentos Ltda. ¥2,274 million Loan guarantees Other ¥16 million Performance guarantees Total ¥2,290 million」
Guarantees and related liabilities to Brazil-related affiliates increased from ¥14 million in the previous fiscal year to ¥2,290 million, including a reported ¥2,274 million loan guarantee for Toyo Setal. Guarantee exposure has expanded substantially again. - FY2023-Q3WorsenedAnnual report
「Toyo Setal Empreendimentos Ltda. ¥938 million Loan guarantees Other ¥15 million Performance guarantees Total ¥954 million」
Guarantees and related liabilities, including those of Brazil-related affiliates, increased from ¥14 million at the end of the previous consolidated fiscal year to ¥954 million. A ¥938 million loan guarantee for Toyo Setal Empreendimentos Ltda. was reported, expanding guarantee exposure. - FY2023-Q2WorsenedAnnual report
「The second quarter of the current consolidated fiscal period (30 September 2022) (Guarantees and guarantee commitments) Guaranteed party Amount Description Toyo Setal Empreendimentos Ltda. ¥884 million Loan guarantees Other ¥17 million Performance guarantees Total ¥902 million」
Guarantees and related liabilities, including those of Brazil-related affiliates, increased substantially from ¥14 million at the end of the previous consolidated fiscal year to ¥902 million. A ¥884 million loan guarantee for Toyo Setal Empreendimentos Ltda. was reported, expanding guarantee exposure. - FY2023-Q1WorsenedAnnual report
「Toyo Setal Empreendimentos Ltda. ¥821 million Loan guarantees Other ¥16 million Performance guarantees Total ¥837 million」
Guarantees and related liabilities increased from ¥14 million at the end of the previous consolidated fiscal year to ¥837 million, including a newly reported ¥821 million loan guarantee for Toyo Setal Empreendimentos Ltda. Brazil-related guarantee exposure has expanded. - FY2022-Q3MitigatedAnnual report
「The third quarter of the current consolidated fiscal period (31 December 2021) (Guarantees and guarantee commitments) Guaranteed party Amount Description Other ¥14 million Performance guarantees, etc. Total ¥14 million」
Guarantees and related liabilities decreased from ¥26 million at the end of the previous consolidated fiscal year to ¥14 million. Although this was a slight increase from ¥13 million in the previous quarter, guarantee exposure had contracted compared with fiscal year-end. - FY2022-Q2MitigatedAnnual report
「The second quarter of the current consolidated fiscal period (30 September 2021) (Guarantees and guarantee commitments) Guaranteed party Amount Description Other ¥13 million Performance guarantees Total ¥13 million」
Guarantees and related liabilities decreased from ¥26 million at the end of the previous consolidated fiscal year to ¥13 million, further reducing guarantee exposure, including the Brazil-related business. - FY2022-Q1MitigatedAnnual report
「First quarter of the current fiscal year (30 June 2021) (Guarantee obligations and guarantee commitments) Guaranteed party Amount Description Other ¥22 million Performance guarantees, etc. Total ¥22 million」
Guarantee obligations and other liabilities decreased from ¥26 million at the end of the previous fiscal year to ¥22 million, and guarantee exposure declined slightly. - FY2021MitigatedAnnual report
「Current fiscal year (31 March 2021) (Guarantee obligations and guarantee commitments) Guaranteed party Amount Description Other ¥26 million Performance guarantees, etc. Total ¥26 million」
Guarantee obligations and other liabilities decreased from ¥84 million in the previous fiscal year to ¥26 million, further reducing guarantee exposure, including the Brazilian-related business. - FY2021-Q3MitigatedAnnual report
「Other ¥66 million Loan guarantees, etc. Total ¥66 million」
Guarantee obligations and other liabilities decreased from ¥84 million at the end of the previous fiscal year to ¥66 million, and guarantee exposure has declined. - FY2021-Q2MitigatedAnnual report
「Second quarter of the current fiscal year (30 September 2020) (Guarantee obligations and guarantee commitments) Guaranteed party Amount Description Other ¥74 million Loan guarantees, etc. Total ¥74 million」
Guarantee obligations and other liabilities decreased from ¥84 million at the end of the previous fiscal year to ¥74 million, and guarantee exposure declined slightly. - FY2021-Q1MitigatedAnnual report
「First quarter of the current fiscal year (30 June 2020) (Guarantee obligations and guarantee commitments) Guaranteed party Amount Description Other ¥76 million Loan guarantees, etc. Total ¥76 million」
Guarantee obligations and other liabilities decreased from ¥84 million at the end of the previous fiscal year to ¥76 million, and guarantee exposure, including the Brazilian affiliate, declined slightly. - FY2020MitigatedAnnual report
「Current fiscal year (31 March 2020) (Guarantee obligations and guarantee commitments) Other ¥84 million Loan guarantees, etc. Total ¥84 million」
Guarantee obligations and other liabilities for the Brazilian affiliate fell sharply from the previous fiscal year’s total of ¥1,777 million to ¥84 million. Guarantee exposure has declined. - FY2020-Q3Small increase in guarantee balanceAnnual report
「Toyo Setal Empreendimentos Ltda. ¥150 million Refund guarantees Other ¥84 million Loan guarantees, etc. Total ¥235 million」
Guarantee obligations and other liabilities for the Brazilian affiliate increased slightly from the previous quarter’s total of ¥231 million to ¥235 million. However, the amount remained substantially below the ¥1,777 million at the end of the previous fiscal year. - FY2020-Q2MitigatedAnnual report
「Toyo Setal Empreendimentos Ltda. ¥148 million Refund guarantees Other ¥83 million Loan guarantees, etc. Total ¥231 million」
Guarantee obligations and other liabilities for the Brazilian affiliate fell sharply from ¥1,777 million at the end of the previous fiscal year to ¥231 million, while refund guarantees for Toyo Setal decreased from ¥1,601 million to ¥148 million. - FY2020-Q1MitigatedAnnual report
「Toyo Setal Empreendimentos Ltda. ¥1,353 million Refund guarantees Other ¥165 million Loan guarantees, etc. Total ¥1,518 million」
Guarantee obligations and other liabilities for the Brazilian affiliate decreased from ¥1,777 million at the end of the previous fiscal year to ¥1,518 million, while those for Toyo Setal decreased from ¥1,601 million to ¥1,353 million. - FY2019MitigatedAnnual report
「Toyo Setal Empreendimentos Ltda. ¥1,601 million Refund guarantees Other ¥175 million Loan guarantees, etc. Total ¥1,777 million」
Guarantee obligations and other liabilities for the Brazilian affiliate decreased from ¥2,104 million in the previous fiscal year to ¥1,777 million, while those for Toyo Setal decreased from ¥2,039 million to ¥1,601 million. - FY2019-Q3MitigatedAnnual report
「Toyo Setal Empreendimentos Ltda. ¥1,780 million Refund guarantees, etc. Other ¥229 million Loan guarantees, etc. Total ¥2,009 million」
Guarantee obligations and other liabilities for the Brazilian affiliate decreased from the previous quarter’s total of ¥2,181 million to ¥2,009 million. Those for Toyo Setal Empreendimentos Ltda. also decreased from ¥1,935 million to ¥1,780 million. - FY2019-Q2Small increase in guarantee balances and increase in total amountAnnual report
「Toyo Setal Empreendimentos Ltda. ¥1,935 million Refund guarantees, etc. Other ¥246 million Loan guarantees, etc. Total ¥2,181 million」
Guarantee obligations and other liabilities for Toyo Setal Empreendimentos Ltda. increased from the previously reported ¥1,898 million to ¥1,935 million. However, compared with ¥2,039 million for the company at the end of the previous fiscal year, the amount decreased, so the direction of change depends on the comparison base. Total guarantee obligations and other liabilities were ¥2,181 million. - FY2019-Q1MitigatedAnnual report
「Toyo Setal Empreendimentos Ltda. ¥1,898 million Refund guarantees, etc.」
Guarantee obligations and other liabilities for the Brazilian affiliate decreased from ¥2,039 million at the end of the previous fiscal year to ¥1,898 million. Guarantee exposure has declined. - FY2018-Q3RestatedAnnual report
「Toyo Setal Empreendimentos Ltda. ¥2,168 million Refund guarantees, etc.」
Guarantee obligations and other liabilities for the Brazilian affiliate Toyo Setal Empreendimentos Ltda. totaled ¥2,168 million. There was no significant change from ¥2,172 million in the previous quarter, and guarantee exposure remained at a high level. - FY2018-Q2Increase in guarantee obligations for affiliateAnnual report
「Second quarter of the current fiscal year (30 September 2017) (Guarantee obligations and guarantee commitments) Guaranteed party Amount Description Toyo Setal Empreendimentos Ltda. ¥2,172 million Refund guarantees, etc.」
Guarantee obligations and other liabilities for Toyo Setal Empreendimentos Ltda. totaled ¥2,172 million, up from ¥550 million at the end of the previous fiscal year. The increase in guarantee obligations was disclosed, but no loss or additional funding was reported. - FY2017MaterialisedAnnual report
「An allowance for doubtful accounts of ¥3,707 million has been recorded against the period-end balance of the long-term loan to the affiliate referred to above.」
An allowance for doubtful accounts of ¥3,707 million has been recorded against the long-term loan to the Brazilian affiliate, giving concrete financial effect to the risks relating to investment returns and recovery. - FY2017-Q2Improvement in earnings due to foreign exchange factorsAnnual report
「Ordinary profit was ¥6.8 billion, up 62.2% year on year, owing mainly to the reversal of the allowance for doubtful accounts and improved earnings at the Brazilian equity-method affiliate due to foreign exchange movements.」
The earnings of the Brazilian equity-method affiliate improved due to foreign exchange movements. Regarding the risks of investment returns and additional funding, the company explained that earnings improved during the quarter, but that the improvement was attributable to foreign exchange factors. - FY2016First statedAnnual report
「With respect to the business conducted by the company through its equity-method affiliate in Brazil, changes in the country’s political, economic and business environment and the credit standing of its business partner may result in returns that do not justify the investment or require additional funding, potentially adversely affecting the performance of the group.」
The company indicated that Brazil’s political and economic environment and the partner’s credit standing could result in investment returns falling short of expectations or require additional funding.