News Releases
Notice Regarding Recording of Profit from Discontinued Operation due to the Share Transfer (Progress of Disclosed Matter) and Recording of Impairment Losses
February 6, 2025
The Company announces it recorded, during the three months ended December 31, 2024, profit from discontinued operation due to the share transfer and impairment losses, as follows:
1. Recording of profit from discontinued operation due to the share transfer (progress of disclosure matter)
As announced on November 5, 2024, in "Notice Regarding Change in a Consolidated Subsidiary (Transfer of Share) and Recording of Profit from Discontinued Operation due to the Share Transfer,” the Company entered into an agreement to transfer all shares of Ambry Genetics Corporation to Tempus AI, Inc. As a result, in the third quarter of the fiscal year ending March 2025, the Company recorded a profit of 23.4 billion yen from discontinued operations, which is a part of the profit from the transfer of share disclosed in the announcement dated November 5, 2024. As stated in the "(Progress of Disclosed Matter) Notice of Completion of Change in a Consolidated Subsidiary (Transfer of Share)" announced on February 4, 2025, the transfer of all shares of Ambry Genetics Corporation has been completed. Therefore, in the three months ending March 2025, the Company will record profit or loss due to the adjustment of exchange differences on translation of foreign operations as profit from discontinued operation.
As stated in the "(Progress of Disclosed Matters) Notice of Completion of Change in a Consolidated Subsidiary (Transfer of Equity Capital)” announced on May 1, 2024, the Company completed the transfer of all equity capital of Invicro, LLC to Calyx Services Inc. As a result of the conclusion of the agreement to transfer all shares of Ambry Genetics to Tempus AI, Inc., the Precision Medicine Business is classified as discontinued operation from the third quarter of the fiscal year ending March 2025. Retrospective to the beginning of the fiscal year, the profit or loss of that business is classified as "profit from discontinued operation," which is separate from "profit from continuing operation." "Profit" and "profit for attributable to owners of the Company" include "profit from discontinued operation."
2. Recording of impairment losses
In the Sensing Unit (display and light source color fields) of the Industry Business, due to the impact of restrained large-scale capital expenditures by major customers and intensifying competition for some applications, the operating profit of Radiant Vision Systems, LLC and Instrument Systems GmbH deteriorated, and signs of impairment were observed. As a result of impairment testing in the three months ended December 2024, the recoverable amount was less than the carrying amount, resulting in goodwill impairment losses of 16.9 billion yen for Radiant Vision Systems, LLC and 6.7 billion yen for Instrument Systems GmbH. By strengthening key account management globally, the Company will improve competitiveness and streamline business management. In addition to such improvement in the display field, the Company continue to grow measuring instruments for visual inspection in the automotive industry and measuring instruments using hyperspectral imaging technology and are establishing a solid earnings structure.
The Company entered into the agreement, on October 26, 2023, to transfer 80% of its equity of Konica Minolta Opto (Dalian) Co., Ltd., which belongs to optical components Unit of the Industry Business, to Guangzhou Luxvisions Innovation Technology Limited. In the negotiations toward closing, it was decided Konica Minolta Opto (Dalian) Co., Ltd. is excluded from the scope of such transfer. Consequently, during the process of suspending classification into assets and liabilities held for sale and transferring to ordinary assets and liabilities, the carrying amount was decreased to the recoverable amount. As a result of that, 4.5 billion yen was recorded as impairment losses for property, plant, and equipment, among others. The Company will enhance profitability for the non-Industry lens units which it continues to sell, through production efficiency improvement and structural reforms.
3. Future Outlook
The impacts on the financial results from the above have been incorporated into the consolidated earnings forecasts for the year ending March 31, 2025 announced on November 5, 2024. When it is judged necessary to revise the earnings forecast considering future performance trends, the Company will announce it promptly.