Business and financial impact of COVID-19
First written in FY2020. 4 of 11 entries say "Worsened", first in FY2021-Q1. Latest entry: FY2024-Q3.
The whole theme swung hardest in 2020: 103 of 175 companies on the "Worse" side.
52 other companies' latest entry also says "Mitigated".
- FY2024-Q3MitigatedAnnual report
「During the cumulative third quarter of the current fiscal year, with COVID-19 reclassified as a Category 5 infectious disease and activity restrictions further eased, signs of recovery emerged in personal consumption and capital investment, among other areas, and socioeconomic activity moved further toward normalization.」
Against the backdrop of COVID-19 being reclassified as a Category 5 infectious disease and activity restrictions being eased, the company states that socioeconomic activity moved further toward normalization. It continues to recognize that the impact of the infection on the business environment is declining. - FY2024-Q2MitigatedAnnual report
「During the cumulative second quarter of the current fiscal year, as COVID-19 was reclassified as a Category 5 infectious disease and the economy recovered from its effects, socioeconomic activity moved further toward normalization. Economic activity normalized further, and Japan's economy entered a moderate recovery trend.」
Against the backdrop of COVID-19 being reclassified as a Category 5 infectious disease and activity restrictions being eased, the company states that recovery from the effects of the infection and normalization of socioeconomic activity progressed further. - FY2024-Q1MitigatedAnnual report
「The effects of COVID-19 began to subside, the disease was reclassified as a Category 5 infectious disease, various activity restrictions were eased, and signs of normalization in economic and social activity emerged.」
The company states that the effects of COVID-19 were moving toward containment, with the transition to a Category 5 infectious disease and progress in easing activity restrictions. It recognizes that the impact of the infection on its business is trending lower than before. - FY2022RestatedAnnual report
「In the fiscal year ending March 2022, as COVID-19 infections came under control with the spread of vaccinations, our Group's order intake was approaching levels seen around 2019, and average working hours were also trending upward. However, uncertainty over future infection trends remains, and we have taken various measures to reduce the risks of personnel outflows and corporate bankruptcies, including securing profits and maintaining ample funds. In addition, if the effects of the spread of COVID-19 become more severe than our Group expects, our Group's operating results and financial position may deteriorate significantly due to cash outflows associated with lost revenue resulting from the termination of staffing contracts for our Group's technologists.」
While describing the recovery in order intake and average working hours, the company continues to indicate the potential for a significant impact from uncertainty over infection trends, contract terminations and cash outflows. - FY2022-Q2RestatedAnnual report
「During the cumulative second quarter of the current fiscal year, Japan's economy was expected to begin recovering on the back of the effects of preventive measures, including the promotion of COVID-19 vaccinations, and improvements in overseas economies. However, restrictions continued, including the declaration of states of emergency in various areas in response to the renewed spread of infections caused by emerging variants, and the economic outlook remained uncertain.」
The company states that the renewed spread of infection due to variants, restrictions such as states of emergency declarations and uncertainty over the economic outlook continued. It also states that there were no material changes in the risks associated with its business and other matters. - FY2022-Q1WorsenedAnnual report
「During the cumulative first quarter of the current fiscal year, Japan's economy remained subject to restricted social activity due to the issuance of the third state of emergency declaration and the designation by local governments of priority preventive measures to prevent the spread of disease, in response to the spread of COVID-19. Although the end of the pandemic was expected through the rollout of COVID-19 vaccinations, the outlook for the economy remained uncertain, with states of emergency being reimposed due to the emergence of variant viruses and other factors.」
The company cites the third state of emergency declaration, priority preventive measures to prevent the spread of disease and reimposition of restrictions due to variant viruses, and states that restrictions on social activity and uncertainty over the economic outlook continued. - FY2021WorsenedAnnual report
「However, if the effects of the spread of COVID-19 become more severe than our Group expects, our Group's operating results and financial position may deteriorate significantly due to cash outflows associated with lost revenue resulting from the termination of staffing contracts for our Group's technologists.」
In response to the effects of COVID-19, the Group implemented measures including obtaining subsidies and loans from financial institutions and maintaining ample funds, while continuing to identify as significant the risks of deterioration in operating results and financial position due to lost revenue from the termination of staffing contracts and related cash outflows. The accounting assumption was also extended on the premise that the effects would continue through the end of March 2022. - FY2021-Q3WorsenedAnnual report
「Accordingly, based on information available as of the end of the cumulative third quarter of the current fiscal year, the recoverability of deferred tax assets for the period was assessed using the revised assumption that the effects of COVID-19 would continue through the end of June 2021.」
The assumption was revised to reflect that the effects of COVID-19 would continue beyond the end of March 2021, which had been assumed in the previous quarter, extending the accounting assumption through the end of June 2021. - FY2021-Q2RestatedAnnual report
「However, as of the end of September 2020, COVID-19 had still not subsided and its effects continued. Accordingly, in assessing the recoverability of deferred tax assets for the cumulative second quarter of the current fiscal year, we assumed that the effects of COVID-19 would continue through the end of March 2021.」
The effects of COVID-19 were confirmed to be continuing as of the end of September 2020, and the accounting assumption that the effects would continue through the end of March 2021 was maintained. The company stated that there were no material changes in the risks associated with its business and other matters. - FY2021-Q1WorsenedAnnual report
「However, as of the end of June 2020, COVID-19 had not subsided and its effects continued. Accordingly, in assessing the recoverability of deferred tax assets for the cumulative first quarter of the current fiscal year, we assumed that the effects of COVID-19 would continue through the end of March 2021.」
The effects of the infection continued beyond the end of June 2020, which had been assumed in the previous fiscal year, and the accounting assumption was extended through the end of March 2021. Restrictions on business activities, fewer operating days and working hours, lower revenue and an operating loss had actually occurred. The company stated that there were no material changes in the risks associated with its business and other matters. - FY2020First statedAnnual report
「However, if the impact of the spread of COVID-19 continues for longer than expected by our Group, continued cash outflows are anticipated and our Group’s financial position could deteriorate significantly. If the impact continues for an extended period, the financial condition of our customers may deteriorate, leading to business contraction or difficulty continuing operations, and our Group’s revenue may decline, including through the loss of sales caused by the termination of staffing contracts for our technologists.」
The Group identifies prolonged COVID-19 impacts, cash outflows, customer business contraction, staffing-contract terminations, lost sales and deterioration in financial position as risks.