Continued use of leased properties and the risk of recovering security deposits and other amounts
First written in FY2017. 3 of 7 entries say "Worsened", first in FY2022. Latest entry: FY2026.
Ocean System moved to the "Worse" side of this theme in 2022, 1 year before the typical company in this theme (2023).
The whole theme swung hardest in 2025: 6 of 17 companies on the "Worse" side.
2 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「As of the end of the consolidated fiscal year, we had paid landlords guarantee deposits of ¥916 million and security deposits of ¥716 million. Some of these amounts may become unrecoverable due to a landlord’s bankruptcy or other circumstances affecting the landlord.」
Total guarantee deposits and security deposits increased from ¥1.355 billion in the previous fiscal year to ¥1.632 billion, expanding the credit exposure associated with leased properties. - FY2024MitigatedAnnual report
「As of the end of the consolidated fiscal year, we had paid landlords guarantee deposits of ¥710 million and security deposits of ¥645 million. Some of these amounts may become unrecoverable due to a landlord’s bankruptcy or other circumstances affecting the landlord.」
Total guarantee deposits and security deposits decreased from ¥1.598 billion in the previous fiscal year to ¥1.355 billion, reducing the credit exposure associated with leased properties. - FY2023WorsenedAnnual report
「As of the end of the consolidated fiscal year, we had paid landlords guarantee deposits of ¥958 million and security deposits of ¥640 million. Some of these amounts may become unrecoverable due to a landlord’s bankruptcy or other circumstances affecting the landlord.」
Guarantee deposits increased from ¥842 million in the previous fiscal year to ¥958 million, while security deposits increased from ¥622 million to ¥640 million, expanding the credit exposure associated with leased properties. - FY2022WorsenedAnnual report
「As of the end of the consolidated fiscal year, we had paid landlords guarantee deposits of ¥842 million and security deposits of ¥622 million. Some of these amounts may become unrecoverable due to a landlord’s bankruptcy or other circumstances affecting the landlord.」
Guarantee deposits and security deposits increased from the previously disclosed ¥717 million and ¥553 million, respectively, providing an updated quantitative disclosure of the credit exposure associated with leased properties. - FY2020RestatedAnnual report
「As of the end of the consolidated fiscal year, we had paid landlords guarantee deposits of ¥717 million and security deposits of ¥553 million. Some of these amounts may become unrecoverable due to a landlord’s bankruptcy or other circumstances affecting the landlord.」
The company continues to disclose its reliance on leased stores and the risk that guarantee deposits and security deposits may become unrecoverable, and provides specific balances. - FY2018RestatedAnnual report
「Most of the stores operated by the Group occupy properties leased from landlords. This enables the Group to avoid tying up assets and to open and close stores flexibly. However, continued use of leased properties may become difficult due to circumstances on the landlord’s side.」
The annual report also discloses the Group’s reliance on leased stores and the risks that continued use may become difficult and that security deposits and other amounts may become unrecoverable. - FY2017First statedAnnual report
「Most of the stores operated by the Group occupy properties leased from landlords. However, continued use of leased properties may become difficult due to circumstances on the landlord’s side. In addition, if security deposits, guarantee deposits or construction cooperation deposits paid to landlords become partly or wholly unrecoverable due to a landlord’s failure or deterioration in the economic environment, this may affect the Group’s operating results and financial condition.」
The company discloses the risk that reliance on leased properties may make continued store operation difficult, as well as the risk that security deposits, guarantee deposits and other amounts may become unrecoverable.