Failure to Achieve Expected Benefits from M&A and Investments and Financing Activities and Investment Recovery Risk
First written in FY2015. 17 of 19 entries say "Materialised", first in FY2017-Q2. Latest entry: FY2026.
i-mobile moved to the "Worse" side of this theme in 2017, 5 years before the typical company in this theme (2022).
The whole theme swung hardest in 2018: 13 of 79 companies on the "Worse" side.
28 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「For machinery and equipment, construction in progress, and long-term prepaid expenses, the carrying amounts were reduced to their recoverable amounts because the revenue originally expected could no longer be anticipated, and impairment losses were recorded as extraordinary losses.」
The company recorded impairment losses totaling ¥170 million, comprising ¥137 million for machinery and equipment, believed to be related to solar power generation, ¥24 million for construction in progress, and ¥8 million for long-term prepaid expenses, reflecting the realization of underperformance against investment objectives and lower asset valuations. - FY2025MaterialisedAnnual report
「For construction in progress, following the decision to discontinue part of the construction, the carrying amount was written down to its recoverable amount, and the resulting impairment loss was recorded as an extraordinary loss.」
An impairment loss of ¥139 million was recorded on construction in progress following the discontinuation of part of the construction. Total impairment losses, including ¥8 million for software, amounted to ¥148 million, crystallizing the risks of investment returns falling short of expectations and declines in asset values. - FY2024MaterialisedAnnual report
「Impairment loss on investment securities 46」
In FY2024, the Company recorded an impairment loss of ¥46 million on investment securities and updated the realized risk associated with declines in the value of investments, financing and held assets. - FY2024-Q3MaterialisedAnnual report
「Impairment loss on investment securities ¥3 million」
During the cumulative third quarter of the current fiscal year, the Company recorded an impairment loss of ¥3 million on investment securities and updated the realized risk associated with declines in the value of investments and financing. - FY2024-Q1MaterialisedAnnual report
「Impairment loss on investment securities ¥4 million」
The company recorded an impairment loss of ¥4 million on investment securities in the cumulative consolidated period through the first quarter of FY2024, updating the realized results related to the risk of declining valuations of investments and financing. - FY2023MaterialisedAnnual report
「Impairment loss on investment securities ¥51 million Impairment loss ¥23 million」
In FY2023, the company recorded an impairment loss of ¥51 million on investment securities and an impairment loss of ¥23 million, updating the realized results related to risks involving the valuation of investments and financing and assets. - FY2023-Q3MaterialisedAnnual report
「Impairment loss on investment securities ¥48 million Impairment loss ¥23 million」
The company recorded an impairment loss of ¥48 million on investment securities and an impairment loss of ¥23 million in the cumulative consolidated period through the third quarter, updating the realized results related to risks involving the valuation of investments and financing and assets. - FY2023-Q2MaterialisedAnnual report
「Impairment loss on investment securities ¥33 million」
The company recorded an impairment loss of ¥33 million on investment securities in the cumulative consolidated period through the second quarter, with the risk of declining valuations of investments and financing appearing in reported results. - FY2021MaterialisedAnnual report
「During the current consolidated fiscal year, the company recorded an impairment loss of ¥48.877 million on unlisted shares.」
In FY2021, the company recorded an impairment loss of ¥48.877 million on unlisted shares, with the decline in the valuation of investments and investments and financing continuing to appear in reported results. - FY2020MaterialisedAnnual report
「Because the earnings initially expected from the Company's software could no longer be expected, the company reduced its carrying amount to its recoverable amount and recorded an impairment loss as an extraordinary loss.」
In FY2020, the company also recorded an impairment loss of ¥35.974 million on software, with the failure of investments and new businesses to deliver expected benefits continuing to materialize in reported results. - FY2019MaterialisedAnnual report
「Because the earnings initially expected from the Company's and its consolidated subsidiaries' software and goodwill could no longer be expected, the company reduced their carrying amounts to recoverable amounts and recorded impairment losses as extraordinary losses.」
In FY2019, the company recorded an impairment loss of ¥452.085 million and an impairment loss on investment securities of ¥328.458 million, with the failure of investments and acquisitions to deliver expected benefits and the decline in their valuations continuing to materialize in reported results. - FY2019-Q3MaterialisedAnnual report
「Toshima-ku, Tokyo (株式会社ネッチ) Other Goodwill ¥345.141 million Minato-ku, Tokyo (TAGGY) Other Goodwill ¥43.387 million Shibuya-ku, Tokyo (株式会社オープンキャリア) Operating assets Software ¥31.960 million Shibuya-ku, Tokyo (Evory) Operating assets Software ¥7.127 million Total ¥427.616 million」
Because the earnings initially projected for 株式会社ネッチ, TAGGY, 株式会社オープンキャリア, and Evory could no longer be expected, the company recorded total impairment losses of ¥427.616 million on goodwill and software. - FY2019-Q2MaterialisedAnnual report
「The Group recorded impairment losses on the following asset groups: goodwill of ¥345.141 million for 株式会社ネッチ in Toshima-ku, Tokyo; goodwill of ¥43.387 million for TAGGY in Minato-ku, Tokyo; software classified as operating assets of ¥31.960 million for 株式会社オープンキャリア in Shibuya-ku, Tokyo; and software classified as operating assets of ¥6.887 million for Evory in Shibuya-ku, Tokyo, for a total of ¥427.376 million.」
Because the earnings initially projected for multiple subsidiaries and investees could no longer be expected, the company recorded total impairment losses of ¥427.376 million on goodwill and software. The risk of M&A and investments and financing failing to deliver the expected benefits has materialized across multiple transactions. - FY2018MaterialisedAnnual report
「In addition, because the earnings initially projected in the original business plan for goodwill relating to TAGGY, a consolidated subsidiary, could no longer be expected, the company reduced its carrying amount to its recoverable amount and recorded an impairment loss as an extraordinary loss.」
Because the earnings initially projected in the original plan for TAGGY's goodwill could no longer be expected, the company recorded an impairment loss of ¥135.338 million. The risk of M&A and investments and financing failing to deliver the expected benefits has materialized in reported results. - FY2018-Q3MaterialisedAnnual report
「Impairment loss on investment securities ¥6.350 million」
The company recorded an impairment loss of ¥6.350 million on investment securities in the cumulative consolidated period through the third quarter, with the risk relating to the valuation of investments and financing appearing in reported results. - FY2017MaterialisedAnnual report
「Extraordinary loss: impairment loss on investment securities ¥63.732 million」
The company recorded an impairment loss of ¥63.732 million on investment securities, with the risk relating to the valuation and recovery of investments and financing appearing in reported results. - FY2017-Q2MaterialisedAnnual report
「Impairment loss on investment securities ¥30.004 million」
The company recorded an impairment loss of ¥30.004 million on investment securities, disclosing realized results related to the valuation and recovery of investments and financing. - FY2016RestatedAnnual report
「Although the company conducts sufficient due diligence and other reviews when carrying out M&A, changes in market conditions or unforeseen circumstances thereafter may prevent it from achieving the benefits initially expected, potentially affecting the Group's financial position and performance.」
The company continues to disclose the risk that M&A will fail to deliver the expected benefits and that investments and financing will be unrecoverable or subject to impairment. - FY2015First statedAnnual report
「Although the company conducts sufficient due diligence and other reviews when carrying out M&A, changes in market conditions or unforeseen circumstances thereafter may prevent it from achieving the benefits initially expected, potentially affecting the Group's financial position and performance.」
The company discloses that M&A has failed to deliver the expected benefits. The inability to recover investments due to the performance of investees and valuation losses from impairment are also identified as risks in the same area.