Uncertainty Surrounding Financial Services Expansion and Investment in New Businesses
First written in FY2017. 9 of 19 entries say "Mitigated", first in FY2021-Q2. Latest entry: FY2026-H1.
Seven Bank moved to the "Worse" side of this theme in 2019, 3 years before the typical company in this theme (2022).
The whole theme swung hardest in 2018: 13 of 78 companies on the "Worse" side.
99 other companies' latest entry also says "Restated".
- FY2026-H1RestatedAnnual report
「We may conduct M&A transactions and capital and business alliances with other companies to strengthen existing businesses and expand our business areas. There is no guarantee that these M&A transactions and other arrangements will be completed or progress as initially planned. In addition, unexpected problems may be discovered after completion, or changes in the business environment may prevent the initially expected effects from being realized and the strategic objectives from being achieved.」
The possibility of conducting M&A transactions and capital and business alliances, along with the risks of failing to meet plans, encountering unexpected problems, or failing to achieve the expected effects after completion, continues to be disclosed. - FY2024WorsenedAnnual report
「This includes an impairment loss of ¥299 million on bonds with stock acquisition rights issued by TORANOTEC Inc., an affiliate.」
With respect to the strategic investment, an impairment loss of ¥299 million was recognized on bonds with stock acquisition rights issued by TORANOTEC. - FY2024-Q2WorsenedAnnual report
「Other extraordinary losses of ¥299 million represented an impairment loss recognized on bonds with stock acquisition rights issued by TORANOTEC Inc., an affiliate.」
An impairment loss of ¥299 million was recognized on bonds with stock acquisition rights issued by TORANOTEC, an equity-method affiliate, resulting in a new loss associated with the strategic investment. - FY2024-Q1MitigatedAnnual report
「We sold part of our holding in Metaps Payment, Inc. to Metaps Inc. Accordingly, Metaps Payment, Inc., previously accounted for under the equity method, was removed from the scope of equity-method accounting from the first quarter of the current fiscal year.」
The sale of part of the holding in Metaps Payment, Inc. was completed, and the company was removed from the scope of equity-method accounting, streamlining the exposure to investments in affiliates. - FY2023MitigatedAnnual report
「Following the tender offer for the common shares of Company M announced in February 2023, we decided to sell the shares we held. Sale date: 2 May 2023」
The shares of Metaps Payment, Inc. were sold on 2 May 2023, and the company ceased to be an equity-method affiliate. The streamlining of strategic investments took concrete form. - FY2023-Q3MitigatedAnnual report
「Equity-method investment loss: ¥608 million; ¥466 million」
The equity-method investment loss narrowed from ¥608 million in the same period of the previous year to ¥466 million, reducing the loss burden associated with strategic investments year on year. - FY2023-Q2MitigatedAnnual report
「Equity-method investment loss ¥545 million ¥294 million」
The equity-method investment loss decreased from ¥545 million in the same period of the previous year to ¥294 million, reducing the loss burden associated with strategic investments. - FY2023-Q1MitigatedAnnual report
「Equity-method investment loss: ¥233 million; ¥116 million」
The equity-method investment loss narrowed from ¥233 million in the same period of the previous year to ¥116 million, reducing the loss burden associated with strategic investments. - FY2022MitigatedAnnual report
「The equity-method investment loss was ¥694 million.」
The equity-method investment loss decreased from ¥796 million in the previous fiscal year to ¥694 million, reducing the loss burden associated with strategic investments. - FY2022-Q3WorsenedAnnual report
「Other ordinary expenses include the following: Equity-method investment loss: ¥222 million; ¥608 million」
The equity-method investment loss increased from ¥222 million in the same period of the previous year to ¥608 million, and the loss burden associated with strategic investments expanded year on year. - FY2022-Q2WorsenedAnnual report
「Equity-method investment income (losses shown as △) 154 545」
The equity-method investment loss increased from ¥154 million in the same period of the previous year to ¥545 million, and the loss burden associated with strategic investments expanded year on year. - FY2021MitigatedAnnual report
「The equity-method investment loss was ¥796 million.」
The equity-method investment loss narrowed from ¥4,770 million in the previous fiscal year to ¥796 million, reducing the loss burden associated with strategic investments. - FY2021-Q3MitigatedAnnual report
「Equity-method investment loss ¥3,217 million ¥222 million」
The equity-method investment loss narrowed from ¥3,217 million in the same period of the previous year to ¥222 million in the cumulative nine-month period of the current fiscal year. The loss burden associated with new businesses and strategic investments has declined from the same period of the previous fiscal year. - FY2021-Q2MitigatedAnnual report
「Equity-method investment income (losses shown as △) 2,666 154」
The equity-method investment loss narrowed from ¥2,666 million in the same period of the previous year to ¥154 million in the current interim period. However, the investment risk associated with equity-method affiliates itself has not been stated to have been eliminated. - FY2020WorsenedAnnual report
「The income and expenses of equity-method affiliates TORANOTEC Inc. and TORANOTEC Asset Management Co., Ltd. fell below the plans initially formulated. As a result, an equity-method investment loss of ¥4,770 million was recognized.」
In addition to the discontinuation of 7pay, the income and expenses of TORANOTEC-related affiliates fell below the initial plan, and an equity-method investment loss of ¥4,770 million was recognized. - FY2020-Q3WorsenedAnnual report
「An equity-method investment loss of ¥3,217 million was recognized, primarily due to losses incurred in the process of discontinuing the barcode payment service 7pay (Seven Pay), provided by our equity-method affiliate Seven Pay Co., Ltd.」
Cumulative losses on the strategic investment associated with the discontinuation of 7pay reached ¥3,217 million, increasing the loss burden from the ¥2,666 million disclosed in the previous quarter. - FY2020-Q2MaterialisedAnnual report
「Unauthorized access occurred to some accounts for the barcode payment service 7pay (Seven Pay), provided by Seven Pay Co., Ltd., an equity-method affiliate. This made it difficult to continue providing the service under the existing framework, and the service was discontinued on 30 September 2019. Primarily as a result, an equity-method investment loss of ¥2,666 million was recognized for the six months ended 30 September 2019.」
Following unauthorized access to 7pay, the service was discontinued and an equity-method investment loss of ¥2,666 million was recognized in connection with the strategic investment and new service. - FY2018RestatedAnnual report
「There is no guarantee that these services will expand smoothly. In developing new businesses, we may establish subsidiaries, conduct M&A transactions, or enter into capital alliances with other companies. However, if these strategic investments fail to produce the initially expected effects and their strategic objectives cannot be achieved, our business performance and financial position may be affected.」
The uncertainty surrounding the expansion of financial services and the investment risks associated with establishing subsidiaries, conducting M&A transactions, and entering into capital alliances for new businesses remain ongoing. - FY2017First statedAnnual report
「There is no guarantee that these services will expand smoothly. In developing new businesses, we may establish subsidiaries, conduct M&A transactions, or enter into capital alliances with other companies. However, if these strategic investments fail to produce the initially expected effects and their strategic objectives cannot be achieved, our business performance and financial position may be affected.」
In addition to the lack of assurance that existing financial services will expand, the company identified the risk that strategic investments, including establishing subsidiaries, M&A transactions, and capital alliances, may fail to produce the expected effects.