Capital Investment Burden and Changes to the Investment Plan Accompanying Business Expansion
First written in FY2019. 3 of 6 entries say "Materialised", first in FY2021. Latest entry: FY2026.
eole moved to the "Worse" side of this theme in 2020, 5 years before the typical company in this theme (2025).
The whole theme swung hardest in 2020: 3 of 7 companies on the "Worse" side.
9 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「However, if the actual number of users and traffic, or demand for new services, diverges significantly from the initial forecasts, we may have no choice but to change the timing, content and scale of our capital investments.」
Reiterated the risks of changes to capital investment plans, depreciation burdens and impairment. No impairment loss was recorded in the current consolidated fiscal year. - FY2025-H1MaterialisedAnnual report
「During the interim accounting period, we identified indicators of impairment for the Rakuraku Renrakumō service included in the Communications Data business and the Pokekaru service included in the Travel business because the revenues originally expected from these services could no longer be anticipated, and for the Kyūjitsu Inu-bu and perrole services included in the Pet business because they had continued to record operating losses since the previous fiscal year. Based on business plans, we estimated future cash flows and found that their total undiscounted future cash flows were below their carrying amounts. Accordingly, we reduced their carrying amounts to their recoverable amounts and recorded the reductions as impairment losses.」
The impairment risk materialized, and impairment losses of ¥463.862 million were recorded for Rakuraku Renrakumō, Pokekaru, Kyūjitsu Inu-bu and perrole. - FY2022MaterialisedAnnual report
「In addition, as stated in the notice titled “Notice Regarding the Difference Between the Full-Year Forecast and Actual Results for the Fiscal Year Ended March 2022 and the Recording of an Extraordinary Loss,” announced on 13 May 2022, we recorded an impairment loss of ¥101.394 million.」
Regarding the risk of impairment arising from divergence between capital investment and demand for new services, the company actually recorded an impairment loss of ¥101.394 million in the current fiscal year. - FY2021MaterialisedAnnual report
「However, if the actual number of users and traffic, or demand for new services, diverges significantly from the initial forecasts, we may have no choice but to change the timing, content and scale of our capital investments. If this occurs, capital investment and depreciation expenses are expected to increase, and the resulting risk of impairment could affect our operating performance and financial position.」
While describing the possibility of capital investment and depreciation burdens and impairment as risks, the company actually recorded an impairment loss of ¥297.471 million in the current fiscal year. - FY2020WorsenedAnnual report
「However, if the actual number of users and traffic, or demand for new services, diverges significantly from the initial forecasts, we may have no choice but to change the timing, content and scale of our capital investments. If this occurs, capital investment and depreciation expenses are expected to increase, and the resulting risk of impairment could affect our operating performance and financial position.」
Added the risk of impairment arising from divergence in the number of users and demand for new services to the existing risks of capital investment burdens and changes to investment plans. - FY2019First statedAnnual report
「However, if the actual number of users and traffic diverge significantly from the initial forecasts, we may have no choice but to change the timing, content and scale of our capital investments. If this occurs, capital investment and depreciation expenses are expected to increase, which could affect our operating performance and financial position.」
Described the risk that capital investment plans may be changed because the number of users and traffic diverge from forecasts, increasing the burden of capital investment and depreciation expenses.