Overseas Investments and Goodwill Impairment Risk
First written in FY2021. 6 of 10 entries say "Worsened", first in FY2022. Latest entry: FY2026.
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
- FY2026MaterialisedAnnual report
「During the consolidated fiscal year, we recorded an impairment loss of ¥496 million on goodwill attributable to the Italian asset group in the Europe/Americas segment because, following a review of the business plan in light of recent changes in the operating environment, recovery of the investment was no longer expected owing to declining profitability and other factors.」
The overseas investment and goodwill impairment risk materialized as a ¥496 million impairment loss on Italian goodwill. Goodwill increased from ¥11.374 billion in the previous fiscal year to ¥14.917 billion. - FY2025WorsenedAnnual report
「Goodwill of ¥11.374 billion was recognized as of the end of the consolidated fiscal year.」
Goodwill increased from ¥6.958 billion in the previous fiscal year to ¥11.374 billion through the acquisitions of Tpf, Signet and other entities. The amount subject to future impairment risk has expanded with the growth of overseas investments. - FY2025-H1WorsenedAnnual report
「Goodwill, an intangible fixed asset, increased from ¥6.958 billion at the end of the previous consolidated fiscal year to ¥15.524 billion at the end of the interim consolidated accounting period. Goodwill recognized in connection with Tecnoprimaf S.r.l. (formerly Tpf Srl) was ¥2.701 billion. Goodwill recognized in connection with Signet Pty Ltd was ¥4.320 billion.」
Goodwill increased from ¥6.958 billion to ¥15.524 billion in connection with the acquisitions of Tpf, Signet and other entities. The amount subject to future impairment risk has expanded with the growth of overseas investments. - FY2024WorsenedAnnual report
「During the consolidated fiscal year, goodwill of ¥6.958 billion was recognized as of the end of the consolidated fiscal year in connection with Antalis S.A.S.’s acquisition of all shares of Integart Sp. zo.o. and its subsidiaries, Lovepac Inc. and its subsidiaries, among other transactions.」
Goodwill increased from ¥5.330 billion in the previous fiscal year to ¥6.958 billion through overseas investments in Integart, Lovepac and other entities, expanding the amount subject to impairment risk. - FY2024-Q1Profit decline due to one-time goodwill amortizationAnnual report
「Although revenue increased due to the effects of M&A transactions completed to date and expanded sales of office paper, profit declined partly because goodwill arising from M&A during the first three months of the consolidated fiscal year was amortized in full.」
The one-time amortization of goodwill arising from M&A was explicitly identified as a factor behind the profit decline in Asia Pacific. This is an accounting treatment distinct from a future impairment loss, and the disclosure does not state that goodwill risk materialized as an impairment. - FY2023-Q2WorsenedAnnual report
「Goodwill, an intangible fixed asset, increased from ¥4.508 billion at the end of the previous consolidated fiscal year to ¥7.939 billion at the end of the second-quarter consolidated accounting period. The goodwill recognized as a result of this event was ¥2.588 billion for the first six months of the consolidated fiscal year.」
Goodwill of ¥2.588 billion was recognized in connection with the acquisition of BB Pack Group, increasing consolidated goodwill to ¥7.939 billion. The amount subject to future impairment risk has expanded with the growth of overseas investments. - FY2022WorsenedAnnual report
「Regarding investments in Australia, all shares of Spicers Limited were acquired in July 2019, and goodwill of ¥1.658 billion was recognized as of the end of the consolidated fiscal year. In addition, goodwill of ¥2.739 billion was recognized as of the end of the consolidated fiscal year in connection with the acquisition by Spicers Limited of the business operated by Wilmaridge Pty Ltd and the acquisition of Universal Packaging Limited, among other transactions.」
The overseas investments and recognized goodwill have expanded to include Spicers-related investments, Wilmaridge, Universal Packaging and other entities, quantifying the amounts subject to impairment risk. - FY2021First statedAnnual report
「The total acquisition cost was ¥7.109 billion, and goodwill of ¥1.776 billion was recognized as of the end of the consolidated fiscal year. We believe that this goodwill appropriately reflects the earning capacity expected to result from future synergies. However, if it is determined that the expected results cannot be achieved due to changes in the business environment or other factors, an impairment loss may arise and affect the financial position and operating results of our group.」
For overseas investments in Spicers, Direct Paper and other entities, the company has for the first time separately disclosed the impairment risk if the expected synergies are not achieved, after presenting the acquisition cost and goodwill amounts.