Economic trends and dependence on customers’ advertising and promotional budgets
First written in FY2016. 9 of 17 entries say "Worsened", first in FY2020-Q3. Latest entry: 2026-10-30.
Netyear Group moved to the "Worse" side of this theme in 2019, 1 year before the typical company in this theme (2020).
The whole theme swung hardest in 2020: 19 of 26 companies on the "Worse" side.
5 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Our transactions are strongly affected by customers’ DX and marketing budgets. If customers reduce their budgets due to economic fluctuations, including surging resource prices amid heightened geopolitical risks, the impact of higher prices on personal consumption and increasing uncertainty in the external environment, such as recent U.S. tariff measures, orders may decline and sales may decrease. In addition, if corporate investment appetite for our business domain declines, our acquisition of new customers may not progress as expected, potentially affecting the development of our business, our business performance and financial position.」
Regarding the risk of dependence on customers’ DX and marketing budgets, the possibility that new customer acquisition may fall short due to declining corporate investment appetite was specified in addition to the previously cited external factors. - FY2025WorsenedAnnual report
「Our transactions are strongly affected by customers’ DX and marketing budgets. If customers reduce their budgets due to economic fluctuations, including surging resource prices amid heightened geopolitical risks, the impact of higher prices on personal consumption and increasing uncertainty in the external environment, such as recent U.S. tariff measures, orders may decline and sales may decrease.」
Regarding the risk of dependence on economic conditions and customer budgets, increasing uncertainty in the external environment due to U.S. tariff measures and other factors was newly specified in addition to the previously cited geopolitical risks and higher prices. - FY2024WorsenedAnnual report
「Meanwhile, the economic outlook remains uncertain due to higher prices resulting from rising import prices caused by yen depreciation, and rising labor costs caused by severe labor shortages.」
While socioeconomic activity was normalizing and showing signs of recovery, yen depreciation, higher prices and rising labor costs due to labor shortages were identified as new sources of uncertainty. - FY2024-Q2WorsenedAnnual report
「During the cumulative second-quarter period, Japan’s economy was gradually recovering as socioeconomic activity normalized following the easing of restrictions on activities related to COVID-19. Meanwhile, downside risks to the global economy increased due to the prolonged situation in Ukraine and concerns about a slowdown in the Chinese economy, while the domestic economy remained uncertain amid inflationary trends including yen depreciation and higher prices.」
While a recovery trend resulting from the easing of restrictions on activities was described, downside risks and uncertainty arising from the prolonged situation in Ukraine, concerns about a slowdown in the Chinese economy, yen depreciation and higher prices were also noted. - FY2023RestatedAnnual report
「Our transactions are strongly affected by customers’ DX and marketing budgets. If customers reduce their budgets due to economic fluctuations, including surging resource prices amid heightened geopolitical risks and the impact of higher prices on personal consumption, orders may decline and sales may decrease.」
The economic fluctuation risk was reconfirmed, with the previous explanation of dependence on advertising and promotional budgets recast as dependence on DX and marketing budgets. - FY2022WorsenedAnnual report
「Our transactions are strongly affected by customers’ digital transformation (DX) and marketing budgets. If customers reduce their budgets due to economic fluctuations, including stagnation in the global economy resulting from the continued global spread of COVID-19, surging resource prices and the situation in Ukraine, our sales may decline.」
The dependence previously described as reliance on advertising and promotional budgets was recast as dependence on DX and marketing budgets, with infectious disease, surging resource prices and the situation in Ukraine added as factors that could reduce budgets. - FY2021MaterialisedAnnual report
「In terms of sales activities, advertising-related business was negatively affected by the spread of COVID-19, but orders from the third quarter onward remained generally solid amid increased corporate digital investment.」
Although negative effects arising from dependence on customers’ advertising-related budgets actually occurred, orders remained solid due to increased digital investment. - FY2021-Q2MaterialisedAnnual report
「In terms of business performance, projects, particularly advertising projects, were reduced or cancelled due to the spread of COVID-19. However, some customers increased their investment in digital fields, and the overall impact of COVID-19 on business performance was limited.」
Reductions and cancellations of customers’ advertising projects actually occurred, and the impact of dependence on advertising and promotional budgets continued to be described. Meanwhile, the overall impact was explained as limited due to increased digital investment by some customers. - FY2021-Q1MaterialisedAnnual report
「At the subsidiary, sales have declined due to the impact of customers restraining spending in the advertising and promotion fields, but」
The restraint of advertising and promotional spending by customers was documented as having actually resulted in lower subsidiary sales. - FY2020WorsenedAnnual report
「Our Group’s transactions are strongly affected by customers’ advertising and marketing-related budgets, and if customers reduce their advertising and promotional activities, our Group’s sales may decline.」
Dependence on advertising and promotional budgets was linked specifically to the reduction in customers’ advertising activities due to COVID-19, heightening the risk of lower sales. - FY2020-Q3WorsenedAnnual report
「Our Group’s sales for the cumulative consolidated second-quarter period decreased by ¥259 million from the same period of the previous year due to lost large-scale advertising projects at a subsidiary, among other factors, but」
For large-scale advertising projects at the subsidiary, lost orders and other factors, in addition to the previous reduction in transactions, were specifically identified as causes of the sales decline, indicating a worsening business impact from dependence on advertising projects. - FY2020-Q2MaterialisedAnnual report
「Sales decreased by ¥259 million from the same period of the previous year due to a reduction in large-scale advertising projects at a subsidiary, among other factors, but」
The reduction in large-scale advertising projects was specifically identified as a factor behind the decline in sales, documenting an actual business impact arising from dependence on advertising projects. - FY2019RestatedAnnual report
「Our Group’s transactions are strongly affected by customers’ public relations, advertising and promotional budgets. During economic downturns, these budgets are considered relatively likely to be cut, and economic and other factors affecting customers may have a significant impact on our Group’s business performance.」
The risk arising from dependence on economic trends and customers’ advertising and promotional budgets was restated. - FY2018RestatedAnnual report
「Our Group’s transactions are strongly affected by customers’ public relations, advertising and promotional budgets.」
The dependence on economic trends and customers’ public relations, advertising and promotional budgets was restated. - FY2016First statedAnnual report
「Our Group’s transactions are strongly affected by customers’ public relations, advertising and promotional budgets. During economic downturns, these budgets are considered relatively likely to be cut, and economic and other factors affecting customers may have a significant impact on our Group’s business performance.」
Business performance risk arising from fluctuations in customer budgets.