Recovery Risk Associated with Establishing New Companies, Capital Investments and Acquisitions
First written in FY2016. 7 of 12 entries say "Advanced", first in FY2020-Q3. Latest entry: FY2026.
The whole theme swung hardest in 2019: 10 of 27 companies on the "Worse" side.
1 other company's latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「By acquiring this business, including SN Tech, and expanding its semiconductor business, the Company will strengthen its position as a semiconductor-materials manufacturer in the semiconductor market, which is expected to continue growing.」
The Group acquired SACHEM’s Asian business and made 5 companies consolidated subsidiaries. It recognized an acquisition cost of ¥12,229 million, goodwill of ¥4,064 million and technology assets of ¥2,002 million, moving into the post-investment commercialization phase. - FY2026-H1AdvancedAnnual report
「In the Lifestyle-related segment, the Company recognized a gain on the bargain purchase arising from the acquisition of shares in ナガセダイアグノスティックス株式会社, which resulted in its becoming a consolidated subsidiary. The gain on the bargain purchase recognized from this transaction was ¥1,780 million.」
The acquisition of the diagnostics business resulted in its becoming a consolidated subsidiary, and the Company recorded a ¥1,780 million gain on a bargain purchase. - FY2026-H1AdvancedAnnual report
「The Group includes セイケムジャパンホールディング合同会社, セイケムジャパン合同会社 and 無錫三開高純化工有限公司, 3 companies in total, within the scope of consolidation. Following the acquisition of shares, SACHEM Korea Ltd. was also included within the scope of consolidation.」
While continuing to apply investment guidelines and post-investment management, the Group completed the acquisition of multiple companies related to semiconductors and electronic materials. - FY2025AdvancedAnnual report
「In the Food segment, the Company acquired Apliquimica Aplicacoes Quimicas Especiais Ltda, a Brazilian company engaged in the wholesale, manufacturing and sale of food ingredients, and renamed it Aplinova (April 2025).」
While continuing to apply investment guidelines and monitoring, the Group acquired Aplinova, a Brazilian food-ingredients company, in April 2025. It also decided to acquire Sachem’s Asian business and its diagnostics business, among others. - FY2022AdvancedAnnual report
「For new investments, the Group prepares an investment checklist and investment profitability analysis in accordance with its investment guidelines, evaluates and analyzes a broad range of factors, including strategic fit, market size and growth potential, barriers to entry, competitive advantages, business operating risks, business continuity risks, financing and exit conditions, as well as business profitability, and makes decisions based on quantitative criteria and qualitative assessments.」
The Group has specified an investment management process that includes investment checklists and profitability analyses based on investment guidelines, quantitative criteria, qualitative assessments and post-investment turnaround plans. - FY2021RestatedAnnual report
「For new business investments, the Group makes decisions after scrutinizing the feasibility and profitability of the business plan, while existing investments are monitored regularly to mitigate risk.」
The Group is reaffirming its investment risk management, including scrutiny of the profitability of investment opportunities, post-investment monitoring and PMI reviews. - FY2021-Q3AdvancedAnnual report
「At the end of the consolidated fiscal year, goodwill amounted to ¥10,747 million following the finalization of the provisional accounting treatment.」
The finalization of the purchase price allocation for the Prinova acquisition resulted in goodwill of ¥10,747 million. Post-acquisition accounting progressed further toward finalization. - FY2020-Q3AdvancedAnnual report
「Goodwill (before revision) US$335 million (¥35,473 million) Goodwill (after revision) US$102 million (¥10,856 million)」
Regarding the purchase price allocation for the Prinova acquisition, the Group continued to apply provisional accounting treatment, recognized intangible assets and other items, and revised goodwill from US$335 million before revision to US$102 million. - FY2020-Q2RestatedAnnual report
「At the end of the second quarter of the consolidated fiscal year, the Group applied provisional accounting treatment based on the reasonable information available, as the purchase price allocation had not yet been completed.」
In the acquisition of Prinova, the purchase price allocation was incomplete, and goodwill of ¥35,473 million was provisionally recognized. The previously identified investment risks concerning recovery of returns from new investments and additional burdens became subject to valuation and recovery management in connection with a specific acquisition. - FY2019RestatedAnnual report
「For new business investments, the Group makes decisions after scrutinizing the feasibility and profitability of the business plan, while existing investments are monitored regularly to mitigate risk. However, even with such controls, it is difficult to completely avoid investment risk, which may affect the Group’s operating results and financial position.」
The Group is reaffirming its management of investment risk through scrutiny of the profitability of new business investments and regular monitoring of existing investments. - FY2017RestatedAnnual report
「For new business investments, the Group makes decisions after scrutinizing the feasibility and profitability of the business plan, while existing investments are monitored regularly to mitigate risk. However, even with such controls, it is difficult to completely avoid investment risk, which may affect the Group’s operating results and financial position.」
The Group is reaffirming its management of investment risk through scrutiny of the profitability of new investments and regular monitoring of existing investments. - FY2016First statedAnnual report
「These investment activities involve recovery risk arising from the possibility that earnings may not reach the levels initially planned, the risk of requiring additional funding, and the risk that the Group may be unable to exit at the timing or in the manner it desires.」
The Group scrutinizes the business plans and profitability of new investments and regularly monitors existing investments as risk-mitigation measures.