For the year ended March 31, 2026, the Company performed impairment test for investments accounted for using the equity method related to a certain joint venture in China because there was objective evidence of impairment due to a significant deterioration of profitability for the year ended March 31, 2026, resulting from intensified competition in China. The Company recognized impairment losses of ¥90,882 million for the year ended March 31, 2026 to the recoverable amounts based on the value in use derived from updated business forecasts. The impairment losses are included in share of profit (loss) of investments accounted for using the equity method in the consolidated statements of income and included in Automobile business. The business plan used reflects management’s best estimate. However, changes in assumptions may affect future recoverable amounts and impairment losses.

For the years ended March 31, 2024 and 2025, the Company did not recognize any significant impairment losses.

 

Combined financial information in respect of affiliates as of March 31, 2025 and 2026, and for the years ended March 31, 2024, 2025 and 2026 is as follows:

 

 

 

Combined financial information in respect of joint ventures as of March 31, 2025 and 2026, and for the years ended March 31, 2024, 2025 and 2026 is as follows: