Success or failure of partnerships with other companies and corporate acquisitions
First written in FY2016. 5 of 6 entries say "Worsened", first in FY2021. Latest entry: FY2025.
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
- FY2025WorsenedAnnual report
「Because multiple additional acquisitions have been completed to strengthen capabilities in addition to the acquisition of Blue Yonder as a wholly owned subsidiary, the amount of goodwill and intangible assets recognized from acquisitions has increased. If it is determined that the expected benefits will not be achieved due to changes in the business environment or competitive conditions, and the recoverable amount falls below the carrying amount, or if the applicable discount rate rises, an impairment loss may be recognized.」
For acquisitions and integration, including Blue Yonder's additional acquisitions, the company continued to specify the increased recognition of goodwill and intangible assets and the risk of impairment resulting from failure to achieve expected benefits or higher discount rates. For the acquisition of One Network, goodwill of ¥104,081 million and intangible assets of ¥31,675 million were recognized. - FY2025-H1WorsenedAnnual report
「The fair value of the provisional consideration paid to acquire a controlling interest in One Network was ¥121,514 million. …Total assets acquired: ¥131,937 million…Total net assets acquired: ¥121,514 million…All recognized goodwill was attributable to the Connect segment, and no tax deduction is expected.」
Blue Yonder completed its acquisition of One Network and recognized acquisition consideration of ¥121,514 million, goodwill of ¥89,660 million and intangible assets of ¥31,675 million. Exposure to acquisition and integration risks and the recoverability of goodwill increased. - FY2024WorsenedAnnual report
「In connection with the acquisition of Blue Yonder as a wholly owned subsidiary, a substantial amount of goodwill and intangible assets has been recognized in the consolidated statement of financial position. In fiscal 2023, Blue Yonder completed multiple additional acquisitions to strengthen its capabilities, increasing the amount of goodwill and intangible assets recognized from acquisitions.」
For Blue Yonder, multiple additional acquisitions were completed in fiscal 2023 to strengthen its capabilities. The resulting increase in goodwill and intangible assets expanded the exposure to integration and impairment risks. - FY2022WorsenedAnnual report
「However, the expected benefits may not be fully realized if we are unable to retain talented personnel, including key management members, or maintain employee morale, if Blue Yonder's competitiveness declines significantly due to changes in the business environment or competitive conditions, or if we are unable to maintain good relationships with key customers and other stakeholders.」
The risks following Blue Yonder's acquisition as a wholly owned subsidiary were specified to include personnel retention, customer relationships, competitiveness, failure to achieve synergies, and goodwill impairment. - FY2021WorsenedAnnual report
「A substantial amount of goodwill and intangible assets will be recognized in the consolidated statement of financial position in connection with this transaction. If it is determined that the expected benefits will not be achieved due to changes in the business environment or competitive conditions, and the recoverable amount falls below the carrying amount, an impairment loss may be recognized, potentially affecting our Group's results of operations and financial position.」
Following the acquisition of Blue Yonder as a wholly owned subsidiary, the alliance and acquisition risks were clarified to include post-acquisition integration, retention of personnel and customers, failure to achieve synergies, and impairment of goodwill and intangible assets. - FY2016First statedAnnual report
「With respect to strategic alliances, collaboration with a partner may not proceed smoothly, the expected benefits may not be achieved, or all or part of the investment may not be recovered.」
Although the importance of alliances and acquisitions is increasing, the company described uncertainties arising from integration and restructuring and changes in a partner's strategy.