Failure to Realize Synergies from Acquisitions and Capital Alliances and Impairment Risk
First written in FY2020. 2 of 4 entries say "Materialised", first in FY2021-Q3. Latest entry: FY2022.
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
- FY2022RestatedAnnual report
「If the expected synergies and benefits, such as the creation of new businesses, cannot be realized, or if impairment losses are recognized on goodwill, the carrying value of shares or other assets due to poor performance at an investee, this could affect the business performance and financial position of the company.」
The company continues to disclose the risk that expected synergies or new business creation may not materialize in connection with acquisitions and capital alliances, or that impairment may arise due to poor performance at an investee. - FY2021MaterialisedAnnual report
「During the fiscal year, the company recorded valuation losses on investment securities of ¥5 million on shares of パスイメージング株式会社, ¥500 million on the first unsecured convertible bond with stock acquisition rights issued by クラーロ株式会社 (current name: パスイメージング株式会社), and ¥376 million on shares of First EIE SA (Switzerland), formerly a consolidated subsidiary.」
The valuation of the expected synergies and business benefits of the capital alliance and acquisition targets declined, resulting in the recognition of a ¥881.847 million loss on valuation of investment securities. - FY2021-Q3MaterialisedAnnual report
「The loss on valuation of investment securities recognized as an extraordinary loss arose from the decline in the valuation of shares in Pass Imaging Co., Ltd. held by the company and the first series of unsecured convertible bonds with stock acquisition rights issued by Claro Co., Ltd. (now Pass Imaging Co., Ltd.).」
Following the decline in the valuation of shares and convertible bonds of the capital alliance partner, the company recognized a ¥505.899 million loss on valuation of investment securities. The risks concerning expected synergies and the investee's performance have materialized as an actual loss. - FY2020First statedAnnual report
「If the expected synergies and benefits, such as the creation of new businesses, cannot be realized, or if impairment losses are recognized on goodwill, the carrying value of shares or other assets due to poor performance at an investee, this could affect the business performance and financial position of our group.」
While using acquisitions and capital alliances as means of expanding its business, the company has for the first time presented as a separate item the general risk that expected synergies or new business creation may not materialize, or that impairment may arise due to poor performance at an investee.