Economic Conditions and Operational Management Risks in Overseas Business
First written in FY2024. 3 of 4 entries say "Materialised", first in FY2025-H1. Latest entry: FY2026.
Toenec moved to the "Worse" side of this theme in 2024, the same year as the typical company in this theme.
The whole theme swung hardest in 2024: 5 of 18 companies on the "Worse" side.
4 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「On the profit front, profit increased despite the recognition of an allowance for doubtful accounts at overseas subsidiary Tri-En TOENEC Co.,Ltd. and other factors, due to improved construction profitability at the company on a non-consolidated basis and the sale of cross-shareholdings.」
The recognition of an allowance for doubtful accounts at overseas subsidiary Tri-En was identified as a factor affecting profit, and the impact of risks relating to the operation and profitability of overseas businesses continues to be reflected in actual results. - 2026-05-30MaterialisedGeneral Meetings of Shareholders
「The Company recognized an allowance for doubtful accounts of ¥3,992 million against long-term loans receivable. It also recognized a provision for allowance for doubtful accounts of ¥1,863 million during the fiscal year.」
The disclosure specifically demonstrates the impact of risks related to the operation and profitability of the overseas business through the substantial allowance for doubtful accounts and provision recognized against long-term loans receivable from Tri-En TOENEC Co.,Ltd. - FY2025-H1MaterialisedAnnual report
「In terms of profit, operating profit and ordinary profit declined due to factors including lower construction profitability at overseas subsidiaries. Interim net profit attributable to owners of the parent declined due to the recognition of an impairment loss on goodwill relating to Tri-En TOENEC Co., Ltd., an overseas subsidiary, as an extraordinary loss, among other factors.」
Lower construction profitability at overseas subsidiaries contributed to declines in operating profit and ordinary profit, and an impairment loss on goodwill relating to Tri-En was also recognised. The impact of risks relating to the operation and profitability of overseas businesses is reflected in actual results. - FY2024First statedAnnual report
「However, changes in the economic conditions of the relevant country or inappropriate operational management could affect the Group's financial position, results of operations and cash flows.」
With the expansion of its overseas business base, the Company identified changes in the economic conditions of countries in which it operates and inappropriate operational management as independent risks. Measures include the Guidelines for Operating Overseas Affiliates and regular checks.