Acquisitions and Business Alliances Fail to Deliver Expected Benefits
First written in FY2016. 1 of 3 entries say "Restated". Latest entry: FY2025.
Nitto Denko moved to the "Worse" side of this theme in 2025, 1 year after the typical company in this theme (2024).
The whole theme swung hardest in 2023: 35 of 98 companies on the "Worse" side.
53 other companies' latest entry also says "Materialised".
- FY2025MaterialisedAnnual report
「The Group recognized an impairment loss of ¥5,199 million on goodwill related to the flexible sensor business of Nitto Bend Technologies, which belongs to the Other segment. This was because, following a review of the business plan, the initially expected earnings could no longer be anticipated and the carrying amount was expected to be unrecoverable.」
For an acquired business, the initially expected earnings from Bend Technologies’ flexible sensor business could no longer be anticipated, resulting in an impairment loss of ¥5,199 million on goodwill. Separately, an impairment loss of ¥3,298 million was recognized at Gronau. - FY2022RestatedAnnual report
「However, if the expected results or synergies cannot be achieved because of significant changes in market or competitive conditions, or if an acquired business cannot develop as planned, this could affect the Group’s business performance.」
The Group is reaffirming the risk that expected results and synergies from M&A and business alliances may not be achieved. - FY2016First statedAnnual report
「However, if acquisitions, business alliances, or other initiatives fail to produce the expected benefits, they could affect the Group’s business performance or financial position.」
It states that the initially expected returns from a US investment could no longer be anticipated, resulting in the recognition of an impairment loss of ¥5,461 million in the previous fiscal year.