Risk of Failure to Recover Investments in New Businesses
First written in FY2025. 1 of 3 entries say "Worsened", first in FY2026-H1. Latest entry: FY2026.
The whole theme swung hardest in 2020: 28 of 84 companies on the "Worse" side.
88 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「However, if a new business fails to progress as initially planned because of future changes in the business environment and we are unable to recover a sufficient amount of our investment, this could affect our business and financial results.」
The Company continues to describe the risk that insufficient recovery of investments in new businesses could affect profits and performance. - FY2026-H1WorsenedAnnual report
「If, for some reason, including contingent liabilities arising after an acquisition, an acquired business cannot develop as planned and the funds invested cannot be recouped, additional expenses or impairment of goodwill may affect the Company's performance.」
In addition to the risk of failing to recoup investments in new businesses, the Company newly identifies specific M&A risks, including contingent liabilities after an acquisition, failure to meet business plans, additional expenses, and goodwill impairment. - FY2025First statedAnnual report
「It is anticipated that investment in research and development and other activities will be required for a certain period before a new business begins to generate stable earnings, which may reduce the Company's overall profit margin.」
The Company states that it will make investment decisions based on an analysis of market trends and business plans, while considering the balance with earnings from existing businesses.