Impairment Risk of Assets Held

「The carrying amount of the experiential complex facility was reduced to its recoverable amount because profit or loss from operating activities was expected to remain negative.」

「兵庫県淡路市　体験型複合施設　建物及び構築物 等　297」

「Impairment loss: ¥3 million」

「Impairment loss: ¥10 million」

「During the cumulative first quarter, there were no newly arising business or other risks. There were also no material changes in the business and other risks described in the securities report for the previous fiscal year.」

「Assets scheduled for disposal were reduced to zero because they were expected to be derecognized in connection with rebuilding or becoming idle. The carrying amounts of sales office facilities, assets used in the nursing care business and food service facilities were reduced to their recoverable amounts because each business incurred recurring losses and profitability was not expected to recover.」

「During the cumulative third quarter, there were no newly arising business or other risks. There were also no material changes in the business and other risks described in the securities report for the previous fiscal year.」

「Impairment loss: ¥193 million」

「Primarily in the Automotive Transportation segment, the Company reduced the carrying amounts of assets held for which disposal had been decided and idle assets no longer expected to be used in the future to their recoverable amounts, and recognized the reductions as impairment losses. The impairment loss recognized during the second quarter consolidated cumulative period under review was ¥190 million.」

「Impairment loss: ¥6 million」

「In the food service and chartered travel businesses, the expected earnings could no longer be anticipated due to deterioration in the business environment caused by COVID-19 and other factors. In the nursing care business, recurring losses were recorded and profitability was not expected to recover. For idle land, future use was no longer expected. As a result, the recoverable amounts fell below the carrying amounts, so the carrying amounts were reduced to the recoverable amounts and the reductions were recognized as impairment losses.」

「Impairment loss: ¥75 million」

「In the food service business in the Leisure Services segment and the nursing care business in the Other segment, recurring losses were recorded and profitability was not expected to recover. As a result, the recoverable amounts fell below the carrying amounts, so the carrying amounts were reduced to the recoverable amounts and the reductions were recognized as impairment losses. The impairment loss recognized during the second quarter consolidated cumulative period under review was ¥71 million.」

「For assets scheduled for sale, the recoverable amount from sale and disposal fell substantially below the carrying amount. In the nursing care and food service businesses, recurring losses were recorded and profitability was not expected to recover, causing the recoverable amounts to fall below the carrying amounts. Accordingly, the carrying amounts were reduced to the recoverable amounts and the reductions were recognized as impairment losses.」

「During the cumulative third quarter, there were no newly arising business or other risks. There were also no material changes in the business and other risks described in the securities report for the previous fiscal year.」

「No new business or other risks arose during the six-month period of the current consolidated fiscal year. There were also no material changes to the “Business and Other Risks” described in the securities report for the previous fiscal year.」

「In the chartered travel business, the earnings assumed in the original business plan could no longer be expected. In the nursing care, food service, and cleaning and security businesses, recurring losses were recorded and profitability was not expected to recover. As a result, the recoverable amounts fell below the carrying amounts, so the carrying amounts were reduced to the recoverable amounts and the reductions were recognized as impairment losses.」

「During the cumulative third quarter, there were no newly arising business or other risks. There were also no material changes in the business and other risks described in the securities report for the previous fiscal year.」

「No new business or other risks arose during the six-month period of the current consolidated fiscal year. There were also no material changes to the “Business and Other Risks” described in the securities report for the previous fiscal year.」

「During the first quarter of the current consolidated fiscal year, there were no newly arising business or other risks. In addition, there were no material changes to the business or other risks described in the securities report for the previous fiscal year.」

「The taxi, bouldering, food manufacturing and sales, and food service businesses incurred recurring losses and were not expected to recover their profitability. As a result, the recoverable amounts fell below the carrying amounts, so the carrying amounts were reduced to the recoverable amounts and the reductions were recognized as impairment losses.」

「During the cumulative third quarter of the current consolidated fiscal year, there were no newly arising business or other risks. In addition, there were no material changes to the business or other risks described in the securities report for the previous fiscal year.」

「For operating assets in the Vehicle Sales and Maintenance segment, the Company recognized an impairment loss because their recoverable amount fell below their carrying amount. The impairment loss recognized during the second quarter consolidated cumulative period under review was ¥18 million.」

「During the first quarter of the current consolidated fiscal year, there were no newly arising business or other risks. In addition, there were no material changes to the business or other risks described in the securities report for the previous fiscal year.」

「The Group applies accounting standards including the Accounting Standard for the Valuation of Inventories and the Accounting Standard for Impairment of Fixed Assets to its assets. If the recoverable amount of an asset falls below its carrying amount, among other circumstances, the Group's operating results and financial position may be adversely affected.」

「During the cumulative third quarter of the current consolidated fiscal year, there were no newly arising business or other risks. In addition, there were no material changes to the business or other risks described in the securities report for the previous fiscal year.」

「During the cumulative second quarter of the current consolidated fiscal year, there were no newly arising business or other risks. In addition, there were no material changes to the business or other risks described in the securities report for the previous fiscal year.」

「During the first quarter of the current consolidated fiscal year, there were no newly arising business or other risks. In addition, there were no material changes to the business or other risks described in the securities report for the previous fiscal year.」

「The Group applies accounting standards including the Accounting Standard for the Valuation of Inventories and the Accounting Standard for Impairment of Fixed Assets to its assets. If the recoverable amount of an asset falls below its carrying amount, among other circumstances, the Group's operating results and financial position may be adversely affected.」