Risks of Delays in or Failure of Business Restructuring and Additional Losses
First written in FY2016. 9 of 25 entries say "Mitigated", first in FY2017-Q2. Latest entry: 2026-07-29.
Hitachi moved to the "Worse" side of this theme in 2019, 2 years after the typical company in this theme (2017).
The whole theme swung hardest in 2017: 6 of 14 companies on the "Worse" side.
3 other companies' latest entry also says "Mitigated".
- 2026-07-29MitigatedEarnings presentation
「Business structural reform-related expenses(*) –¥63.0 billion(*)」
Business structural reform-related expenses for FY2026 are expected to be ¥63.0 billion, down from ¥167.6 billion in FY2025. - FY2026WorsenedAnnual report
「Business restructuring-related expenses included in other expenses for the previous consolidated fiscal year and the current consolidated fiscal year were ¥102,659 million and ¥167,658 million, respectively.」
Costs associated with the business restructuring and structural reforms increased from the previous fiscal year, increasing the cost burden associated with the reorganization. - FY2026-H1WorsenedAnnual report
「Business restructuring-related expenses included in other expenses for the previous interim consolidated accounting period and the current interim consolidated accounting period were ¥7,732 million and ¥14,174 million, respectively.」
Business structure reform-related costs for the interim period increased from ¥7,732 million in the same period of the previous year to ¥14,174 million, increasing the cost burden associated with the restructuring. - FY2025WorsenedAnnual report
「Costs related to business structural reforms included in other expenses for the previous consolidated fiscal year and the current consolidated fiscal year were ¥49,111 million and ¥102,659 million, respectively.」
Costs associated with the business restructuring and structural reforms increased from ¥49,111 million in the previous fiscal year to ¥102,659 million, increasing the cost burden. - FY2025-H1MitigatedAnnual report
「Costs related to business structural reforms included in other expenses for the previous interim consolidated accounting period and the current interim consolidated accounting period were ¥8,301 million and ¥7,732 million, respectively.」
Business structure reform-related costs for the interim period decreased year on year, reducing the cost burden associated with the reforms during the period. - FY2024MitigatedAnnual report
「The transaction was completed on 16 October 2023. The consideration received by the Company for the sale was ¥157,807 million. As a result of the transaction, the Company's ownership interest in 日立Astemo changed from 66.6% to 40%, and 日立Astemo became an equity-method affiliate of the Company.」
The business restructuring, including the deconsolidation of 日立Astemo, was completed, reducing the execution risk associated with the business portfolio restructuring in this case. Annual business structure reform-related costs also decreased from the previous fiscal year. - FY2024-Q3MitigatedAnnual report
「Business structure reform-related costs included in other expenses for the nine months ended the third quarter of the previous consolidated fiscal year and the nine months ended the third quarter of the current consolidated fiscal year were ¥71,191 million and ¥13,112 million, respectively.」
Business structure reform-related costs for the nine months ended the third quarter decreased from ¥71,191 million in the same period of the previous year to ¥13,112 million. - FY2024-Q2MitigatedAnnual report
「Business structure reform-related costs included in other expenses for the six months ended the second quarter of the previous consolidated fiscal year and the six months ended the second quarter of the current consolidated fiscal year were ¥65,606 million and ¥8,301 million, respectively.」
Business structure reform-related costs for the six months ended the second quarter decreased from ¥65,606 million in the same period of the previous year to ¥8,301 million. - FY2024-Q1WorsenedAnnual report
「Business structure reform-related costs included in other expenses for the three months ended the first quarter of the previous consolidated fiscal year and the three months ended the first quarter of the current consolidated fiscal year were ¥2,702 million and ¥3,489 million, respectively.」
Business structure reform-related costs for the nine months ended the first quarter increased from ¥2,702 million in the same period of the previous year to ¥3,489 million. - FY2023WorsenedAnnual report
「Business structure reform-related costs included in other expenses for the previous consolidated fiscal year and the current consolidated fiscal year were ¥43,861 million and ¥139,217 million, respectively.」
Annual business structure reform-related costs increased from ¥43,861 million in the previous fiscal year to ¥139,217 million. - FY2023-Q3WorsenedAnnual report
「Business structure reform-related costs included in other expenses for the nine months ended the third quarter of the previous consolidated fiscal year and the nine months ended the third quarter of the current consolidated fiscal year were ¥9,123 million and ¥71,191 million, respectively.」
Business structure reform-related costs increased from ¥9,123 million in the same period of the previous year to ¥71,191 million in the current period, increasing the cost burden associated with the restructuring. - FY2023-Q2WorsenedAnnual report
「Business structure reform-related costs included in other expenses for the nine months ended the second quarter of the previous consolidated fiscal year and the nine months ended the second quarter of the current consolidated fiscal year were ¥4,745 million and ¥65,606 million, respectively.」
Business structure reform-related costs increased from ¥4,745 million in the same period of the previous year to ¥65,606 million. - FY2021-Q2MitigatedAnnual report
「On 1 September 2020, the Company transferred all of its MHPS shares, classified as assets held for sale and valued at ¥263,614 million, to Mitsubishi Heavy Industries, and MHPS ceased to be an affiliated company of the Company. Accordingly, the other provision of ¥273,272 million related to the transfer of the MHPS shares, which had been included in other current liabilities in the condensed quarterly consolidated statement of financial position, was reversed. On 14 September 2020, the Company and Mitsubishi Heavy Industries received a decision from JCAA terminating the arbitration proceedings.」
The share transfer and arbitration proceedings relating to the South African project were completed, reducing the risks of execution and continued disputes associated with this restructuring case. However, a claim relating to another European power plant remains outstanding. - FY2020MaterialisedAnnual report
「Mainly as a result of these factors, the Energy segment recognized a loss of ¥375,967 million related to the settlement, which is included in other expenses in the consolidated statement of profit or loss for the current consolidated fiscal year.」
The business restructuring and dispute risks surrounding the South African project materialized as a ¥375,967 million settlement loss. - FY2020-Q3MaterialisedAnnual report
「Mainly as a result of these factors, the Energy segment recognized a loss of ¥375,967 million related to the settlement, which is included in other expenses in the condensed quarterly consolidated statement of profit or loss for the nine months ended the third quarter.」
Losses associated with the business restructuring materialized as a ¥375,967 million settlement related to the South African project. - FY2020-Q2WorsenedAnnual report
「Costs related to business structural reforms included in other expenses for the cumulative second quarter ended in the previous fiscal year and the cumulative second quarter ended in the current fiscal year were ¥29,925 million and ¥74,832 million, respectively.」
Costs associated with the business restructuring and structural reforms increased from ¥29,925 million in the same period of the previous year to ¥74,832 million, and the risk of additional losses increased. - FY2019WorsenedAnnual report
「The Company recognized ¥294,613 million in business structure reform-related costs, including an impairment loss of ¥277,208 million on assets related to this project.」
The losses associated with the business restructuring materialized as ¥294,613 million in costs associated with the freezing of the UK nuclear power plant construction project. - FY2019-Q3MaterialisedAnnual report
「In addition, the Company plans to recognize contract termination costs and other expenses associated with the freezing of this project in the fourth quarter of the consolidated accounting period for the current consolidated fiscal year, although the amount is currently being calculated.」
In addition to recognizing an impairment loss of ¥277,208 million in connection with the freezing of the UK nuclear power plant construction project, the Company plans to recognize additional contract termination costs and other expenses in the fourth quarter. Losses associated with the business restructuring are becoming concrete. - FY2019-Q2MaterialisedAnnual report
「Costs related to business structural reforms included in other expenses for the cumulative second quarter ended in the previous fiscal year and the cumulative second quarter ended in the current fiscal year were ¥5,759 million and ¥29,925 million, respectively.」
Costs associated with the business restructuring increased from the same period of the previous year, and additional restructuring costs were recognized. - FY2018MitigatedAnnual report
「As a result of the completion of the tender offer, related transactions, including the share consolidation described above, were carried out, and all such transactions were completed as of 4 June 2018.」
The related transactions following the tender offer concerning the restructuring of 日立国際電気 were completed, resolving in this case the previously identified risk of delays in implementing the business restructuring. - FY2018-Q3AdvancedAnnual report
「Under this amendment agreement, HKE commenced the tender offer on 12 October 2017, and the tender offer was completed on 8 December 2017. As a result of the completion of the tender offer, related transactions, including the share consolidation described above, are scheduled to be carried out.」
The tender offer relating to the restructuring of 日立国際電気 was completed, and implementation of the business restructuring advanced. However, the related transactions had not been completed as of the filing date. - FY2017MitigatedAnnual report
「The transaction was completed on 29 March 2017. As a result of the share transfer, 日立工機㈱ ceased to be a subsidiary of the Company.」
The sale of interests in and deconsolidation of 日立物流, 日立キャピタル and 日立工機 were executed, demonstrating specific progress in addressing the risk of delays in implementing the restructuring. - FY2017-Q2MitigatedAnnual report
「Hitachi Capital Corporation was scheduled to become an equity-method affiliate of the Company in August 2016 following the partial transfer of the shares held by the Company. However, the scheduled execution date of the transfer was changed from August to after October of the same year, once the Company had completed its response to relevant regulations, approvals and licences. The transfer of shares under the transfer agreement was completed on 3 October 2016.」
The transfer of shares in 日立キャピタル, which had been changed from the scheduled August date to October or later due to regulatory and licensing requirements, was completed on 3 October. The execution delay has been resolved, although no conclusion has been reached regarding other effects associated with the business restructuring. - FY2017-Q1MaterialisedAnnual report
「Hitachi Capital Corporation was scheduled to become an equity-method affiliate of the Company in August 2016 following the partial transfer of the shares held by the Company. However, the scheduled execution date of the transfer was changed from August to after October of the same year, once the Company had completed its response to relevant regulations, approvals and licences.」
The planned conversion of Hitachi Capital into an equity-method affiliate through the transfer of shares was changed from August to after October due to the response to relevant regulations, approvals and licences. The delay in executing the business restructuring became concrete. - FY2016First statedAnnual report
「The business restructuring initiatives may not be implemented in a timely manner, or may not be implemented at all, due to government regulations in various countries, employment issues or insufficient demand in the M&A market for businesses the Group is considering selling.」
Regulatory, employment and market-demand risks associated with exiting unprofitable businesses, selling subsidiaries, reorganising manufacturing sites and sales networks, and selling assets.