Poor Performance at Investees and Impairment of Investment Assets
First written in FY2016. 8 of 20 entries say "Worsened", first in FY2019-Q3. Latest entry: FY2026-H1.
SoftBank Group Corp. moved to the "Worse" side of this theme in 2016, 4 years before the typical company in this theme (2020).
The whole theme swung hardest in 2019: 37 of 69 companies on the "Worse" side.
24 other companies' latest entry also says "Mitigated".
- FY2026-H1MitigatedAnnual report
「SVF 2’s investment gain was primarily due to the recognition of an unrealized valuation gain of ¥980,510 million on its equity interest in OpenAI held at the end of the interim period and derivative-related gains of ¥911,327 million on the OpenAI forward contract.」
SVF 2 recognized substantial unrealized valuation gains and derivative-related gains as OpenAI’s valuation increased, reducing the impact of the risk of declines in investment asset values during the interim period. However, exposure to changes in investment valuations remains. - FY2025-H1SVF 1 recorded valuation gains while SVF 2 recorded valuation losses.Annual report
「SVF 2’s investment loss was primarily due to the recognition of a net unrealized valuation loss of ¥243,702 million on investments held at the end of the interim period.」
SVF 1 recognized unrealized valuation gains of ¥850,711 million, while SVF 2 recognized unrealized valuation losses of ¥243,702 million, resulting in divergent valuation trends across investee companies. - FY2024-Q3MaterialisedAnnual report
「In SVF 2, a net realized loss on investments of ¥74,953 million was recognized from the sale of all shares in 4 investee companies and partial holdings in several other investee companies. In addition, the fair value of WeWork, which filed for protection under Chapter 11 of the U.S. Bankruptcy Code in November 2023, was reduced to zero, and the fair value of private investee companies declined, reflecting weak performance and other factors. As a result, a net unrealized valuation loss of ¥172,806 million was recognized on investments held at the end of the third quarter.」
WeWork’s fair value was reduced to zero, and an unrealized valuation loss of ¥172,806 million was recognized on private investee companies and other investments in SVF 2. The risk of poor performance at investee companies and impairment of investment assets materialized as an actual loss. - FY2024-Q2WorsenedAnnual report
「Among the investments held at the end of the second quarter, the fair value of public investee companies (Note 2) declined as share prices fell, while the fair value of private investee companies (Note 2) declined, reflecting weak performance and other factors.」
The situation at the end of the quarter shifted from the previous quarter’s combination of rising public investments and weak private investments to reported declines in the fair value of both public and private investments. - FY2024-Q1Public investments rose while private investments weakened.Annual report
「Among the investments held at the end of the first quarter, the fair value of public investee companies (Note 1) increased as share prices rose, while the fair value of private investee companies (Note 1) declined, reflecting weak performance and other factors.」
The investment valuation disclosures showed a simultaneous increase in the fair value of public investee companies and a decline in the fair value of private investee companies reflecting weak performance. - FY2023-Q3WorsenedAnnual report
「Against a backdrop of a global decline in share prices, the share prices of numerous public investee companies declined, although the share prices of some companies increased during the third quarter. The fair value of numerous private investee companies also declined, reflecting weak performance and declines in the share prices of comparable public companies.」
Declines in the fair value of numerous public and private investments continued, with the risk of lower valuations for SVF investee companies persisting and expanding. - FY2023-Q2WorsenedAnnual report
「The fair value of numerous private investee companies declined, reflecting lower valuations in recent financing rounds, weak performance and declines in the share prices of comparable public companies.」
The fair value of numerous investments, including private investee companies, declined, increasing unrealized valuation losses in the SVF business. - FY2023-Q1WorsenedAnnual report
「The fair value of numerous private investee companies declined, reflecting lower valuations in recent financing rounds, weak performance and declines in the share prices of comparable public companies.」
Lower financing-round valuations and weak performance at investee companies emerged as declines in the fair value of investments, mainly in SVF 2’s private investee companies, expanding the risk of declines in investment asset values. - FY2022-Q2MitigatedAnnual report
「For the six months ended 30 September 2021, a gain on reversal of impairment losses of ¥42,189 million was recognized because the fair value of WeWork common shares accounted for under the equity method increased.」
A gain on reversal of impairment losses was recognized as the fair value of WeWork common shares increased, partially reducing the impact of the risk of declining investment asset values. - FY2022-Q1MitigatedAnnual report
「For the three months ended 30 June 2021, a gain on reversal of impairment losses of ¥13,059 million was recognized because the fair value of WeWork common shares held by the wholly owned subsidiary established for WeWork investments increased.」
A gain on reversal of impairment losses was recognized as the fair value of WeWork shares increased, partially reducing the impact of the decline in investment asset values through the previous period. - FY2020-Q3WorsenedAnnual report
「A loss of ¥359,212 million was recognized because the fair value of WeWork shares held by the Company’s wholly owned subsidiary declined.」
The loss from the decline in the fair value of WeWork shares reached ¥359,212 million, further crystallizing the risks of weaker-than-expected performance and business plans at investee companies and declines in the value of investment assets. - FY2020-Q2WorsenedAnnual report
「A loss of ¥374,675 million was recognized because the fair value of WeWork shares held by the Company’s wholly owned subsidiary declined.」
The decline in the fair value of WeWork shares resulted in a loss of ¥374,675 million on the shares held by the Company’s wholly owned subsidiary alone, further crystallizing the risk of declines in the value of investment assets. - FY2019WorsenedAnnual report
「An impairment test was performed on the investment in OneWeb Global Limited because its performance and latest business plan were below the business plan at the time of the Company’s initial investment, and an impairment loss of ¥49,549 million was recognized.」
OneWeb’s performance and business plan fell below the initial plan, resulting in an impairment loss of approximately ¥49.5 billion. The risk of poor performance at investee companies and impairment of investment assets became more concrete. - FY2019-Q3WorsenedAnnual report
「An impairment test was performed on the investment in OneWeb Global Limited because its performance and latest business plan were below the business plan at the time of the Company’s initial investment, and an impairment loss of ¥45,043 million was recognized.」
OneWeb’s performance and business plan fell below the initial plan, resulting in an impairment loss of ¥45,043 million. The risk of poor performance at investee companies and impairment of investment assets materialized as a specific loss. - FY2018MaterialisedAnnual report
「Following a review of Brightstar’s business plan, the recoverable amount fell below the carrying amount, resulting in a total impairment loss of ¥50,497 million on the company’s goodwill, intangible assets and property, plant and equipment.」
For Brightstar, full-year impairment losses were recognized on goodwill of ¥43,128 million, intangible assets of ¥6,717 million and property, plant and equipment of ¥652 million. - FY2018-Q3MaterialisedAnnual report
「Following a review of Brightstar’s business plan, the recoverable amount fell below the carrying amount, resulting in a total impairment loss of ¥50,497 million on the company’s goodwill, intangible assets and property, plant and equipment.」
Following the review of Brightstar’s business plan, impairment losses were recognized on goodwill of ¥43,128 million, intangible assets of ¥6,630 million and property, plant and equipment of ¥739 million. - FY2017MaterialisedAnnual report
「For example, in its consolidated results for the fiscal year ended March 2017, the Company recorded losses of ¥160,419 million on financial instruments measured at FVTPL, including preferred shares of Jasper Infotech Private Limited, which operates the e-commerce site snapdeal.com in India, and ANI Technologies Private Limited, which operates the taxi-hailing platform Ola, also in India.」
As a result of poor operating performance and declines in the fair value of investees, losses of ¥160,419 million on financial instruments measured at FVTPL, valuation losses of ¥114,059 million on shares of associates and a ¥30,260 million impairment loss on Brightstar goodwill, among others, were recorded. - FY2017-Q2MaterialisedAnnual report
「Impairment losses of ¥42,540 million were recorded on assets classified as held for sale.」
In addition to a ¥42,540 million impairment loss on GungHo shares, a loss of ¥58,140 million arose from financial instruments measured at FVTPL. - FY2017-Q1MaterialisedAnnual report
「As a result, impairment losses of ¥42,540 million on assets classified as held for sale were recorded for the 3-month period ended 30 June 2016.」
A ¥42,540 million impairment loss was recorded following a revaluation of the GungHo shares to their tender offer price. In addition, a loss of ¥30,283 million was recorded on financial assets measured at FVTPL. - FY2016First statedAnnual report
「If investees are unable to develop their businesses as expected at the time of investment, the Group’s operating results and financial position may be affected by impairment losses on goodwill, property, plant and equipment, intangible assets and financial assets such as shares arising in connection with investment activities.」
During the fiscal year, impairment losses and additions to the allowance for doubtful accounts totaling ¥38,185 million were recorded in connection with PT Trikomsel Oke Tbk., and impairment losses of ¥13,633 million were recorded in the Brightstar Latin America region.