Rakuten Group, Inc. (Head Office: Setagaya-ku, Tokyo, Chairman and CEO: Hiroshi Mikitani, hereinafter “the Company”) announces that it expects to record impairment losses and valuation gains on derivatives in its consolidated financial results for the fiscal year ended December 31, 2025 (IFRS).
- Expected Impairment Losses
The Company expects to record the following impairment losses on fixed assets in our group's businesses.
• Rakuten Symphony Open RAN Business: 20,497 million yen
This is due to the fact that the growth of the Open RAN business as a whole has taken longer than initially expected, resulting in longer than initially expected time to launch the business.
• Logistics Business: 10,024 million yen
This is due to a decrease in the amount of cargo that can be stored in leased warehouses due to a delay in the pace of future cargo volume growth and larger-than-expected product sizes. - Details of Derivative Valuation Gains
The Company entered into currency swap agreements, exchanging USD and EUR for JPY, with respect to the principal and interest of its foreign currency-denominated undated subordinated notes.
The Company expects to record derivative valuation gains of 36,402 million yen related to these currency swaps in our consolidated financial results the fourth quarter of the fiscal year ending December 31, 2025 (IFRS). - Impact on Consolidated Financial Results
• Impairment Loss:
• To be recorded under other expenses in the Consolidated Statements of Income for the fiscal year ending December 31, 2025 (IFRS).
• Derivative Valuation Gains:
• To be recorded under financial income in the Consolidated Statements of Income for the fiscal year ending December 31, 2025 (IFRS).
More details will be reported at the announcement of our consolidated financial results for the fiscal year ending December 31, 2025, scheduled for Thursday, February 12.