Recognition of an impairment loss in the consolidated financial statements, and a valuation loss on shares in an affiliated company and a provision for allowance for doubtful accounts relating to an affiliated company in the non-consolidated financial statements
Consolidated subsidiary Greenroom株式会社 (Mirai Works Inc. as the entity subject to the non-consolidated losses)
Media operated by Greenroom株式会社, its PR and advertising business, goodwill related to shares in the company, shares in the company, and loans to the company
Following policy changes and other developments in the United States since the beginning of the second Trump administration, companies, particularly large Japanese companies, became increasingly cautious about ESG messaging. This reduced demand for PR and advertising as companies refrained from promoting their environmental initiatives, while the focus of corporate ESG investment also shifted toward practical responses, such as disclosure and compliance with relevant systems.
An impairment loss of ¥113 million was recognized as an extraordinary loss in the consolidated financial statements. In the non-consolidated financial statements, a valuation loss of ¥150 million on shares in an affiliated company and a ¥50 million provision for allowance for doubtful accounts relating to an affiliated company were each recognized as extraordinary losses.
The third-quarter consolidated accounting period and the third-quarter accounting period of the fiscal year ending September 2026
Refer to the "Summary of Third-Quarter Financial Results for the Fiscal Year Ending September 2026 [Japanese GAAP] (Consolidated)" and the "Notice Regarding Revisions to Consolidated Earnings Forecasts" announced today. The revised figures are not included in this document.
The valuation loss on shares in an affiliated company and the provision for allowance for doubtful accounts relating to an affiliated company recognized in the non-consolidated financial statements will be eliminated on consolidation. Accordingly, the only impact on consolidated results will be the ¥113 million impairment loss recognized for accounting purposes in the consolidated financial statements. Refer to the related materials announced on the same day for the impact of this matter on the consolidated earnings forecast.
| Item | Details |
|---|---|
| Event name | Recognition of an impairment loss in the consolidated financial statements, and a valuation loss on shares in an affiliated company and a provision for allowance for doubtful accounts relating to an affiliated company in the non-consolidated financial statements |
| Date of occurrence | The third-quarter consolidated accounting period of the fiscal year ending September 2026 (specific date: Not disclosed) |
| Subject Entity | Consolidated subsidiary Greenroom株式会社 (Mirai Works Inc. as the entity subject to the non-consolidated losses) |
| Target Locations / Products | Media operated by Greenroom株式会社, its PR and advertising business, goodwill related to shares in the company, shares in the company, and loans to the company |
| Cause | Following policy changes and other developments in the United States since the beginning of the second Trump administration, companies, particularly large Japanese companies, became increasingly cautious about ESG messaging. This reduced demand for PR and advertising as companies refrained from promoting their environmental initiatives, while the focus of corporate ESG investment also shifted toward practical responses, such as disclosure and compliance with relevant systems. |
| Amount of Impact on Business Performance | An impairment loss of ¥113 million was recognized as an extraordinary loss in the consolidated financial statements. In the non-consolidated financial statements, a valuation loss of ¥150 million on shares in an affiliated company and a ¥50 million provision for allowance for doubtful accounts relating to an affiliated company were each recognized as extraordinary losses. |
| Accounting period in which recognized | The third-quarter consolidated accounting period and the third-quarter accounting period of the fiscal year ending September 2026 |
| Impact on Earnings Forecast | Refer to the "Summary of Third-Quarter Financial Results for the Fiscal Year Ending September 2026 [Japanese GAAP] (Consolidated)" and the "Notice Regarding Revisions to Consolidated Earnings Forecasts" announced today. The revised figures are not included in this document. |
| Outlook | The valuation loss on shares in an affiliated company and the provision for allowance for doubtful accounts relating to an affiliated company recognized in the non-consolidated financial statements will be eliminated on consolidation. Accordingly, the only impact on consolidated results will be the ¥113 million impairment loss recognized for accounting purposes in the consolidated financial statements. Refer to the related materials announced on the same day for the impact of this matter on the consolidated earnings forecast. |
Items this document does not state (16)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.Amid a more cautious approach by large companies to ESG messaging in response to policy changes in the United States and other factors, demand for PR and advertising declined as companies refrained from promoting their environmental initiatives. In addition, corporate ESG investment shifted toward practical responses, such as disclosure and compliance with relevant systems. As a result, Greenroom株式会社's PR and advertising business was affected significantly more than expected, and it was determined that realizing the excess earning power initially projected would be difficult.