Risk of an economic downturn and weaker IT investment stemming from the spread of COVID-19
First written in FY2020. 3 of 8 entries say "Mitigated", first in FY2021. Latest entry: FY2024-Q2.
The whole theme swung hardest in 2020: 6 of 13 companies on the "Worse" side.
6 other companies' latest entry also says "Restated".
- FY2024-Q2RestatedAnnual report
「During the cumulative second quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that management recognizes could materially affect the financial position, operating results and cash flows of the consolidated companies, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」
No material changes were identified regarding the risk that the spread of COVID-19 could weaken economic conditions and IT investment. - FY2023MitigatedAnnual report
「At present, COVID-19 has not had a material impact on our Group's business.」
The company explained that COVID-19 had not had a material impact on the business during the current fiscal year and assumed that the outbreak would subside during the fiscal year ending March 2024, following the change in its disease classification. - FY2022-Q1MitigatedAnnual report
「In the Legal Tech AI business during the first quarter of the current consolidated fiscal year, domestic digital forensics and e-discovery revenue, which had been affected by the spread of COVID-19 in the first half of the previous fiscal year, recovered rapidly.」
The company explained that domestic digital forensics and e-discovery had been affected by COVID-19 in the previous fiscal year, but revenue recovered rapidly in the first quarter of the current fiscal year. - FY2021MitigatedAnnual report
「We are working to minimize the impact by sharing information and assessing its effects, led by our COVID-19 response headquarters chaired by the Representative Director and President, while also assessing the situation and developing countermeasures through key bodies such as the Management Committee and the Board of Directors.」
The risk of COVID-19 affecting sales activities and customer investment continues, but specific measures to minimize the impact have been developed through the response headquarters, key management bodies and the establishment of a remote-work environment. - FY2021-Q3RestatedAnnual report
「In the Legal Tech AI business, the impact of the spread of COVID-19 has continued since the first half of the current consolidated fiscal year. During the third quarter of the current consolidated fiscal year, orders for new domestic e-discovery and forensic engagements remained sluggish.」
The company explained that sluggish orders for new domestic engagements due to the impact of COVID-19 had continued from the first half. - FY2021-Q2WorsenedAnnual report
「Due to the impact of the spread of COVID-19, it became increasingly common for vendors for large cross-border e-discovery engagements to be selected by local U.S. subsidiaries rather than by Japanese headquarters. In addition, during the cumulative period of the first 6 months of the current consolidated fiscal year, the number of investigations by third-party committees at Japanese companies was less than half the level in the same period of the previous year.」
The impact of COVID-19 expanded into specific business effects, including the localization of vendor selection for cross-border engagements and a decline of more than half in the number of third-party committee investigations in Japan. - FY2021-Q1MaterialisedAnnual report
「However, the market is undergoing an accelerating shift in the commercial flow, with vendor selection moving from law firms to the companies themselves. In addition, the operating environment remains uncertain due to the impact of the global spread of COVID-19 on some sales activities.」
The company stated that the global spread of COVID-19 had actually affected some sales activities, making the business environment uncertain. - FY2020First statedAnnual report
「At present, the impact of the spread of COVID-19 on our Group is limited. However, if the situation becomes prolonged or more serious, the resulting deterioration in the global economy could delay IT-related investment plans and dampen investment appetite, potentially affecting our Group's business and financial results.」
While stating that the impact of the spread of COVID-19 was limited as of the filing date, the company disclosed the deterioration in economic conditions, delays in IT investment plans and a decline in investment appetite if the situation becomes prolonged or more serious as new risks.