The NSG Group announces the recognition of an exceptional loss, differences between actual results and the previous consolidated forecast for the first half year ending March 2023 (from April 1, 2022, to September 30, 2022), and also a revision to its consolidated forecast for full year ending March 2023 (the financial year ending on 31 March 2023).
The Group recorded an exceptional loss of JPY 48,776 million due to an impairment of goodwill and intangible assets. This represents a full impairment of all remaining goodwill and intangible assets relating to the Group’s automotive business unit in Europe, originally arising on the acquisition of Pilkington in 2006. The impairment was calculated by comparing the value-in-use with the accounting book values of this business unit.
The value-in-use was calculated by discounting predicted future cash flows using an appropriate discount rate, determined using bond and equity market conditions prevailing at the balance sheet date. The group still considers the medium-term prospects of this business to be positive, and processed this impairment largely as a consequence of a significant increase in discount rates used in the preparation of this impairment test, reflecting interest rate rises in Europe during the second quarter.
To download the full report click here.