Additional recognition of provision expense for doubtful accounts and recognition of provision expense for losses on guarantees in standalone financial statements
Eidai Co.,Ltd. (entity recording the items in its standalone financial statements); ＥＮボード (consolidated subsidiary concerned)
Particleboard manufacturing business (ＥＮボード)
ＥＮボード has not reached its designed production capacity, and improvements in profitability have been delayed. As a result, it remains in a state of excess liabilities over assets as of the end of March 2026. The provision for losses on guarantees represents the amount up to the equivalent of 65% of the subsidiary's excess liabilities over assets, corresponding to the Company's ownership ratio.
Provision expense for doubtful accounts: ¥1,998 million; provision expense for losses on guarantees: ¥2,225 million (extraordinary losses in the standalone financial statements)
Fourth quarter of the fiscal year ending March 2026 (standalone financial statements for the fiscal year ending March 2026)
As the items will be eliminated in the consolidated financial statements, they will have no impact on consolidated results. No revision to the earnings forecast was disclosed.
Although ＥＮボード is working to improve productivity, it has not reached its designed production capacity, and improvements in profitability have been delayed.
| Item | Details |
|---|---|
| Event name | Additional recognition of provision expense for doubtful accounts and recognition of provision expense for losses on guarantees in standalone financial statements |
| Date of occurrence | End of March 2026 (state of excess liabilities over assets); fourth quarter of the fiscal year ending March 2026 (recognition of provisions) |
| Subject Entity | Eidai Co.,Ltd. (entity recording the items in its standalone financial statements); ＥＮボード (consolidated subsidiary concerned) |
| Target Locations / Products | Particleboard manufacturing business (ＥＮボード) |
| Cause | ＥＮボード has not reached its designed production capacity, and improvements in profitability have been delayed. As a result, it remains in a state of excess liabilities over assets as of the end of March 2026. The provision for losses on guarantees represents the amount up to the equivalent of 65% of the subsidiary's excess liabilities over assets, corresponding to the Company's ownership ratio. |
| Amount of Impact on Business Performance | Provision expense for doubtful accounts: ¥1,998 million; provision expense for losses on guarantees: ¥2,225 million (extraordinary losses in the standalone financial statements) |
| Accounting period in which recognized | Fourth quarter of the fiscal year ending March 2026 (standalone financial statements for the fiscal year ending March 2026) |
| Impact on Earnings Forecast | As the items will be eliminated in the consolidated financial statements, they will have no impact on consolidated results. No revision to the earnings forecast was disclosed. |
| Outlook | Although ＥＮボード is working to improve productivity, it has not reached its designed production capacity, and improvements in profitability have been delayed. |
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.ＥＮボード has not reached its designed production capacity, and improvements in profitability have been delayed. As a result, it remains in a state of excess liabilities over assets as of the end of March 2026. The provision for losses on guarantees was recognized up to the amount equivalent to 65% of the subsidiary's excess liabilities over assets, corresponding to Eidai Co.,Ltd.'s ownership ratio.