Integration Failure and Investment Recovery Risk in Acquisitions, Joint Ventures and Partnerships
First written in FY2016. 5 of 19 entries say "Worsened", first in FY2021. Latest entry: 2026-07-29.
Hitachi moved to the "Worse" side of this theme in 2021, 2 years before the typical company in this theme (2023).
The whole theme swung hardest in 2025: 9 of 29 companies on the "Worse" side.
5 other companies' latest entry also says "Mitigated".
- 2026-07-29MitigatedEarnings presentation
「Decrease in acquisition-related expenses for the Thales GTS business」
In Mobility, lower acquisition-related expenses for the Thales GTS business contributed to higher first-quarter earnings. - FY2026WorsenedAnnual report
「The acquisition consideration is expected to be approximately US$360 million (approximately ¥57.5 billion) and will be determined after separate adjustments.」
The planned acquisition of Clever Devices added new investment and integration exposure in the public transport ITS field. - FY2026Goodwill Balance UpdatedAnnual report
「As of the end of the consolidated fiscal year, goodwill of ¥1,429,043 million was recorded in the Digital Systems & Services segment, ¥659,712 million in the Energy segment, ¥275,583 million in the Mobility segment and ¥283,163 million in the Connective Industries segment.」
The total goodwill balance was ¥2.6475 trillion, updating the presence of acquisition and integration risk exposure in the Digital, Energy, Mobility and Connective sectors. - FY2026-H1MaterialisedAnnual report
「Adjusted EBITA increased ¥5.8 billion year on year to ¥40.7 billion, despite factors reducing profit, including costs associated with post-merger integration following the acquisition of the railway signalling business, due to higher revenue and improvements in profitability and productivity in the signalling systems business, among other factors.」
Integration-related costs following the acquisition of Thales' railway signalling business continued to reduce profit in Mobility. Meanwhile, Adjusted EBITA increased ¥5.8 billion year on year due to improvements in profitability and productivity. - FY2025MaterialisedAnnual report
「The Digital Systems & Services segment recorded an impairment loss of ¥64,212 million in the consolidated fiscal year. The main component was an impairment loss of ¥54,874 million on goodwill related to part of the data utilisation platform business, which was classified as a non-focus area.」
An impairment loss of ¥54,874 million arose on goodwill related to acquisitions and investments after part of the data utilisation platform business was classified as a non-focus area. The total goodwill balance was ¥2.4868 trillion. - FY2025-H1MaterialisedAnnual report
「Adjusted EBITA increased ¥73.2 billion year on year to ¥152.9 billion, despite higher related costs associated with post-merger integration (PMI) following the acquisitions of the Power Grids business and Thales' railway signalling business, and the negative impact of lower profit from certain low-margin railway projects, due to higher revenue and improved profitability at Hitachi Energy, among other factors.」
The increase in PMI-related costs associated with the acquisition of Thales and the negative impact of certain low-margin railway projects actually reduced profit. - FY2024Goodwill Balance UpdatedAnnual report
「As of the end of the consolidated fiscal year, goodwill of ¥1,433,628 million was recorded in the Digital Systems & Services segment, ¥690,034 million in the Green Energy & Mobility segment and ¥248,016 million in the Connective Industries segment.」
The total goodwill balance was ¥2,371,678 million, comprising ¥1,433,628 million in Digital Systems & Services and ¥690,034 million in Green Energy & Mobility. - FY2024-Q3Goodwill Balance UpdatedAnnual report
「Goodwill 2,165,350 2,230,077」
The goodwill balance was updated from ¥2,165,350 million at the end of the previous fiscal year to ¥2,230,077 million at the end of the third quarter. - FY2024-Q2Goodwill Balance UpdatedAnnual report
「Goodwill 2,165,350 2,403,920」
The goodwill balance increased from ¥2,165,350 million at the end of the previous fiscal year to ¥2,403,920 million at the end of the second quarter. - FY2024-Q1Goodwill Balance UpdatedAnnual report
「Goodwill 2,165,350 2,342,408」
The goodwill balance was updated from ¥2,165,350 million at the end of the previous fiscal year to ¥2,342,408 million at the end of the first quarter. - FY2023MaterialisedAnnual report
「As of the end of the consolidated fiscal year, goodwill of ¥1,269,171 million was recorded in the Digital Systems & Services segment, ¥589,011 million in the Green Energy & Mobility segment and ¥220,688 million in the Connective Industries segment.」
Updated the total goodwill balance associated with acquisitions and integration to approximately ¥2.079 trillion. Impairment losses also actually arose, including ¥38,394 million related to Hitachi Energy goodwill. - FY2023-Q2MaterialisedAnnual report
「Impairment losses for the six months ended the second quarter of the current consolidated fiscal year included an impairment loss of ¥38,419 million recorded in the Green Energy & Mobility segment. The main component was an impairment loss of ¥38,394 million on Hitachi Energy goodwill, recorded in the Power Grids business due to an increase in the discount rate resulting from a sharp rise in interest rates and other factors.」
An impairment loss of ¥38,394 million actually arose on goodwill related to the acquisition of Hitachi Energy, driven by an increase in the discount rate resulting from a sharp rise in interest rates and other factors. - FY2022WorsenedAnnual report
「As of the end of the consolidated fiscal year, goodwill of ¥1,137,719 million was recorded in the IT segment, ¥513,616 million in the Energy segment and ¥168,475 million in the Industry segment.」
Following the acquisition of GlobalLogic and other transactions, goodwill amounted to ¥1,137,719 million in IT, ¥513,616 million in Energy and ¥168,475 million in Industry, increasing exposure to acquisition integration and impairment risks. - FY2022-Q2WorsenedAnnual report
「A summary of the consideration for the acquisition of GlobalLogic, the provisional amounts recognised at the acquisition date for the acquired assets and assumed liabilities, and the provisional amount of goodwill recognised at the acquisition date is provided below.」
For the acquisition of GlobalLogic, disclosed acquisition consideration of ¥922.5 billion and provisional goodwill of ¥821.128 billion, specifying the exposure associated with acquisition integration and investment recovery. - FY2022-Q1WorsenedAnnual report
「The consideration for the acquisition of GlobalLogic was approximately US$8.4 billion (approximately ¥915.3 billion).」
The acquisition of GlobalLogic as a wholly owned subsidiary added significant investment exposure and expanded the scope of acquisition integration and investment recovery risks. - FY2021WorsenedAnnual report
「As of the end of the consolidated fiscal year, goodwill of ¥480,006 million was recorded in the Energy segment, ¥214,280 million in the IT segment and ¥155,240 million in the Industry segment.」
Following the acquisition of the ABB Power Grids business and other transactions, goodwill balances were ¥480,006 million in Energy, ¥214,280 million in IT and ¥155,240 million in Industry, increasing exposure to acquisition integration and impairment risks. - FY2020RestatedAnnual report
「As of the end of the consolidated fiscal year, goodwill of ¥204,243 million was recorded in the IT segment and ¥158,010 million in the Industry segment.」
Continued disclosure of acquisition integration and investment recovery risks, showing year-end goodwill balances of ¥204,243 million in IT and ¥158,010 million in Industry. - FY2017RestatedAnnual report
「There can be no assurance that these initiatives will benefit the Group's business or financial position. Even if they do prove beneficial, there can be no assurance that the Group will successfully integrate the businesses it has acquired or achieve all or any part of the initiatives' original objectives.」
Continued to identify risks related to the integration, costs and investment recovery associated with acquisitions, joint ventures and alliances. - FY2016First statedAnnual report
「These initiatives inherently involve risks because integrating operations, technologies, products and personnel, or recovering the investments, is not easy.」
Identified integration and restructuring costs, and dependence on the partner's decisions and capabilities and on market trends, as risks.