Risk of Failing to Achieve Returns on Business Investments, Recover Investments and Continue Partnerships
First written in FY2018. 1 of 4 entries say "Materialised", first in FY2021-Q2. Latest entry: FY2026.
The whole theme swung hardest in 2024: 24 of 87 companies on the "Worse" side.
6 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「Through its investee monitoring system, the Company identifies potential exits based on specified quantitative criteria and follows up on the progress of new investment projects. It also conducts reviews of business investees focusing on their growth potential and profitability, regularly reviews the rationale for holding all investments, and works to rebalance and optimize its portfolio.」
In response to business investment risks, the Company continued and further developed the quantitative identification of potential exits, progress checks for new projects and portfolio optimization through reviews of investees. - FY2025MitigatedAnnual report
「In addition, from fiscal 2025, the Company revised this system to identify potential exit candidates based on specified quantitative criteria. Under its policy of autonomous management by the operating groups, it upgraded the framework for reviewing investees to focus on their growth potential and profitability and the progress of new investment projects, and is working more actively than before to rebalance and optimize its portfolio.」
In response to risks related to returns on and recovery of business investments, the Company revised its Full Potential Plan and strengthened the quantitative identification of potential exits and reviews of investees. - FY2021-Q2MaterialisedAnnual report
「At Bluewaters Power 1 Pty Ltd and Bluewaters Power 2 Pty Ltd, coal-fired power generation companies in Australia (collectively, the “Project”), the project finance facility that matured in August 2020 was not refinanced despite the Company’s request to the lenders. Following a review of the recoverable amount from the Project, the Group recognized impairment losses and other losses on its investments and loans during the second quarter.」
The project finance facility was not refinanced, resulting in impairment losses and other losses on investments and loans related to the Australian power generation business. The risks related to recovering business investments and financing materialized. - FY2018First statedAnnual report
「The Company may be unable to achieve the expected results from these investments and, because many business investments have low liquidity, among other reasons, may be unable to recover its investments at the time or in the manner it desires.」
The Company disclosed the risks of failure to achieve results, difficulty recovering investments and constraints on decision-making by other shareholders or partners in connection with establishing new companies, acquisitions, joint ventures and strategic alliances.