Rakuten Group, Inc. (Head Office: Setagaya-ku, Tokyo, Chairman and CEO: Hiroshi Mikitani, hereinafter “the Company”) announces that it recorded an impairment loss, etc. in its consolidated financial statements for the second quarter of the fiscal year ending December 31, 2026 (IFRS).
- Details
As part of its logistics business, the Company provides a service that leases a portion of its warehouse space. For the three months ended June 30, 2026, amid uncertainty over future parcel volume growth, the Company has been working to optimize warehouse investment and the utilization of warehouse space. Under these circumstances, the Company held extensive discussions with the lessees regarding future operations. Based on the results of these discussions, the Company decided to use the warehouse space internally rather than continue leasing it to third parties.
This loss was recognized as an impairment loss and related expenses arising from the above event. Due to the event, it became highly probable that the future cash flows expected from these assets would fall significantly below their carrying amount, and therefore an impairment indicator was identified. As a result of the impairment test conducted in response to such indicator, it was determined that the recoverable amount is expected to fall below the carrying amount. The recoverable amount for these assets is measured based on their value in use; however, as no future cash flows are expected, the recoverable amount has been valued at zero.
- Impact on business performance
The Company recorded an impairment loss, etc., on fixed assets of 17 billion yen in its consolidated financial results (IFRS) for the second quarter of the fiscal year ending December 31, 2026. In the Condensed Quarterly Consolidated Statement, this loss is recorded in other expenses.