Risk of Failure to Achieve the Expected Results of M&A, Business Alliances and Strategic Investments
First written in FY2016. 9 of 11 entries say "Materialised", first in FY2018-Q2. Latest entry: FY2026.
The whole theme swung hardest in 2024: 39 of 92 companies on the "Worse" side.
- FY2026MaterialisedAnnual report
「The impairment loss includes ¥60,568 million in goodwill and ¥26,244 million in identifiable intangible assets related to Nikon SLM Solutions AG.」
A significant impairment loss, including ¥60.568 billion in goodwill and ¥26.244 billion in identifiable intangible assets related to the acquisition of SLM, was recognized, realizing the risk of failure to achieve the expected results of the M&A. - FY2026-H1MaterialisedAnnual report
「On the other hand, the company recognized deferred tax assets and an adjustment to corporate income taxes and other taxes (gain) relating to deductible temporary differences arising from its investment in Nikon Metrology NV, a consolidated subsidiary, in connection with resolutions to dissolve and liquidate the company,」
The disclosure stated that a resolution had been made to dissolve and liquidate Nikon Metrology NV, a strategic investment. - FY2025MaterialisedAnnual report
「On the other hand, profit declined because, in addition to RED's operating loss resulting from the weak cinema industry, the company recorded one-time expenses, including an impairment loss on property, plant and equipment at Mark Roberts Motion Control Limited.」
Following the acquisition of RED, an operating loss arose due to the weak cinema industry, and the risk of failing to achieve the expected results after the M&A was realized in the company's performance. - FY2024MaterialisedAnnual report
「At the European production and sales subsidiary Nikon Metrology NV, the carrying amounts of assets for which development had been discontinued or product development had been postponed were reduced to their recoverable amounts because future cash flows were no longer expected, resulting in recognition of an impairment loss of ¥1,283 million. At the U.S. production and sales subsidiary Morf3D Inc., the carrying amounts of assets, mainly those scheduled for sale, were reduced to their recoverable amounts, calculated as fair value less costs of disposal based on the expected selling prices, resulting in recognition of an impairment loss of ¥1,069 million.」
In connection with strategic investments and new businesses, impairment losses totaling ¥2,352 million were recognized for Nikon Metrology NV and Morf3D. - FY2023MaterialisedAnnual report
「In the Components Business, an impairment loss of ¥3,997 million was recognized. At the U.S. production and sales subsidiary Morf3D Inc., the company conducted an impairment assessment based on revised estimates of future cash flows because the earnings initially anticipated were no longer expected to be generated.」
At Morf3D, an acquisition and strategic investment, the earnings initially anticipated were no longer expected to be generated, and an impairment loss of ¥3,997 million was recognized. - FY2018MaterialisedAnnual report
「The company sought to strengthen product competitiveness and develop new markets in the X-ray non-destructive testing equipment business through development and sales support for a U.S. associate engaged in X-ray analytical equipment. However, during the current fiscal year, it became clear that the business could not be commercialized, and the company decided not to continue its investment. As a result, an impairment loss of ¥1,793 million was recognized.」
The company decided not to continue its investment in an associate because commercialization was no longer considered feasible, and recognized an impairment loss of ¥1,793 million. - FY2018-Q2MaterialisedAnnual report
「For some investments in associates, recoverable amounts were below their carrying amounts at the end of the cumulative second quarter period, and an impairment loss of ¥1,793 million was recognized.」
Recoverable amounts for investments in associates fell below their carrying amounts, and an impairment loss of ¥1,793 million was actually recognized. - FY2017RestatedAnnual report
「These initiatives are important for optimizing the business portfolio, expanding the business base and developing technologies. We share objectives with these companies and strive to cooperate with them toward achieving those objectives.」
The company continues to disclose the risks of delayed integration, failure to achieve results and impairment of investment value in connection with M&A, business alliances and strategic investments. - FY2016First statedAnnual report
「These initiatives are important for optimizing the business portfolio, expanding the business base and developing technologies. We share objectives with these companies and strive to cooperate with them toward achieving those objectives.」
The risks include failure to establish a cooperative framework, prolonged integration, failure to achieve the expected results and impairment of investment value.