Risk of Recovering Upfront Investments in Cloud, Mobile, and Overseas Businesses
First written in FY2016. 28 of 31 entries say "Worsened", first in FY2017. Latest entry: 2026-11-06.
Internet Initiative Japan moved to the "Worse" side of this theme in 2017, 5 years before the typical company in this theme (2022).
The whole theme swung hardest in 2019: 12 of 30 companies on the "Worse" side.
11 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Capital expenditures, including assets acquired under finance leases, were ¥26.3 billion and ¥32.2 billion at the ends of the fiscal years ended March 2025 and March 2026, respectively, while depreciation and amortization of capital expenditures (depreciation and amortization expenses related to capital expenditures) were ¥17.3 billion and ¥18.8 billion, respectively.」
Capital expenditures increased from ¥26.3 billion to ¥32.2 billion. Approximately ¥18 billion is scheduled to be invested in Phase 3 of the Shirai Data Center building in the fiscal year ending March 2027, increasing exposure to the risk of recovering upfront investments. - FY2026-H1WorsenedAnnual report
「Cash flows from investing activities during the six-month consolidated accounting period included payments of ¥8,343 million for the acquisition of property, plant and equipment related to data centers and other projects, compared with ¥6,096 million in the same period of the previous year, and ¥3,900 million for the acquisition of intangible assets such as software, compared with ¥4,115 million, resulting in net cash used in investing activities of ¥11,443 million, compared with ¥12,380 million in the same period of the previous year.」
Although total cash outflows from investing activities decreased year on year, spending on the acquisition of property, plant and equipment, including data center-related assets, increased from ¥6,096 million to ¥8,343 million, expanding exposure to upfront investment. - FY2025-H1WorsenedAnnual report
「Cash flows from investing activities during the six-month consolidated accounting period included payments of ¥6,096 million for the acquisition of property, plant and equipment related to the Matsue Data Center Park and other projects, compared with ¥5,732 million in the same period of the previous year, and ¥4,115 million for the acquisition of intangible assets such as software, compared with ¥3,962 million, resulting in net cash used in investing activities of ¥12,380 million, compared with ¥9,066 million in the same period of the previous year.」
Investment in property, plant and equipment and software for the Matsue Data Center Park and other projects increased, and cash used in investing activities rose from ¥9,066 million in the same period of the previous year to ¥12,380 million. - FY2024WorsenedAnnual report
「Capital expenditures, including asset acquisitions through finance leases, were ¥20.8 billion and ¥22.5 billion in the fiscal years ended March 2023 and March 2024, respectively, while depreciation and amortisation of capital investments, including depreciation and amortisation related to capital expenditures, were ¥15.3 billion and ¥15.6 billion, respectively.」
Capital expenditures increased from ¥20.8 billion to ¥22.5 billion, and total investment of approximately ¥23.0 billion is planned for the fiscal year ending March 2025, expanding exposure to upfront investment. - FY2024-Q3Continued investment in data centers and softwareAnnual report
「Cash flows from investing activities during the first 3 quarters of the current consolidated cumulative period included payments of ¥8,261 million for the acquisition of property, plant and equipment related to construction of the Shiroi data center campus and other projects, compared with ¥9,760 million in the same period of the previous year, and ¥5,778 million for the acquisition of intangible assets such as software, compared with ¥4,150 million, resulting in net cash used in investing activities of ¥13,060 million, compared with ¥13,160 million in the same period of the previous year.」
Although cash used in investing activities declined slightly year on year, investment in the Shiroi data center and software and other assets continued, leaving exposure to the risk of recovering upfront investments. - FY2024-Q2WorsenedAnnual report
「Cash flows from investing activities during the first half of the current consolidated cumulative period included payments of ¥5,732 million for the acquisition of property, plant and equipment related to construction of the Shiroi data center campus and other projects, compared with ¥5,704 million in the same period of the previous year, and ¥3,962 million for the acquisition of intangible assets such as software, compared with ¥2,137 million, resulting in net cash used in investing activities of ¥9,066 million, compared with ¥7,219 million in the same period of the previous year.」
Investment in the Shiroi data center and software and other assets continued, and cash used in investing activities increased from ¥7,219 million in the same period of the previous year to ¥9,066 million. - FY2024-Q1WorsenedAnnual report
「Cash flows from investing activities during the first quarter of the current consolidated cumulative period included payments of ¥3,670 million for the acquisition of property, plant and equipment related to construction of the Shiroi data center campus, compared with ¥1,839 million in the same period of the previous year, and ¥2,689 million for the acquisition of intangible assets such as software, compared with ¥1,149 million, resulting in net cash used in investing activities of ¥6,366 million, compared with ¥2,366 million in the same period of the previous year.」
Investment in the Shiroi data center and software and other assets increased cash used in investing activities from ¥2,366 million in the same period of the previous year to ¥6,366 million, expanding exposure to the risk of recovering upfront investments. - FY2023WorsenedAnnual report
「Capital expenditures, including asset acquisitions through finance leases, were ¥16,130 million and ¥20,825 million in the fiscal years ended March 2022 and March 2023, respectively.」
Capital expenditures increased, and investment in the Shiroi data center facilities rose from ¥1.5 billion to ¥5.4 billion. In addition, investment of approximately ¥7.0 billion is planned for the fiscal year ending March 2024, including construction of the second building, expanding exposure to upfront investment. - FY2023-Q3WorsenedAnnual report
「Cash flows from investing activities during the first 3 quarters of the current consolidated cumulative period included payments of ¥9,760 million for the acquisition of property, plant and equipment related to construction of the Shiroi data center campus and other projects, compared with ¥4,893 million in the same period of the previous year, and ¥4,150 million for the acquisition of intangible assets such as software, compared with ¥3,627 million, resulting in net cash used in investing activities of ¥13,160 million, compared with ¥9,832 million in the same period of the previous year.」
Payments for the acquisition of property, plant and equipment for the Shiroi data center and other facilities increased year on year, and cash used in investing activities rose from ¥9,832 million to ¥13,160 million, expanding exposure to the risk of recovering upfront investments. - FY2023-Q2WorsenedAnnual report
「Cash flows from investing activities during the first half of the current consolidated cumulative period included payments of ¥5,704 million for the acquisition of property, plant and equipment, compared with ¥4,164 million in the same period of the previous year, ¥2,137 million for the acquisition of intangible assets such as software, compared with ¥2,167 million, and proceeds of ¥947 million from the sale of property, plant and equipment, compared with ¥1,011 million, resulting in net cash used in investing activities of ¥7,219 million, compared with ¥8,185 million in the same period of the previous year.」
Although total cash used in investing activities declined year on year, payments for the acquisition of property, plant and equipment increased from ¥4,164 million to ¥5,704 million. Property, plant and equipment related to construction of the Shiroi data center campus also increased, and exposure to upfront investment has continued and expanded. - FY2022-Q3WorsenedAnnual report
「Cash flows from investing activities during the first 3 quarters of the current consolidated cumulative period included payments of ¥4,893 million for the acquisition of property, plant and equipment, ¥3,627 million for the acquisition of intangible assets such as software, and ¥2,612 million for the acquisition of PTC, net of cash acquired, resulting in net cash used in investing activities of ¥9,832 million, compared with ¥8,918 million in the same period of the previous year.」
In addition to investment in property, plant and equipment and software, spending on the acquisition of PTC was incurred, increasing cash used in investing activities from the same period of the previous year. Exposure to the risk of recovering upfront investments has expanded. - FY2022-Q2WorsenedAnnual report
「Cash flows from investing activities during the first half of the current consolidated cumulative period included payments of ¥4,164 million for the acquisition of property, plant and equipment, compared with ¥2,754 million in the same period of the previous year, ¥2,167 million for the acquisition of intangible assets such as software, compared with ¥2,772 million, and ¥2,612 million for the acquisition of PTC, net of cash acquired, resulting in net cash used in investing activities of ¥8,185 million, compared with ¥6,547 million in the same period of the previous year.」
Payments for property, plant and equipment and the acquisition of PTC increased cash used in investing activities from ¥6,547 million in the same period of the previous year to ¥8,185 million, expanding exposure to the risk of recovering upfront investments. - FY2022-Q1WorsenedAnnual report
「Cash flows from investing activities during the first quarter of the current consolidated cumulative period included payments of ¥2,839 million for the acquisition of property, plant and equipment, ¥1,325 million for the acquisition of intangible assets such as software, and ¥2,612 million for the acquisition of PTC, net of cash acquired, resulting in net cash used in investing activities of ¥6,414 million, compared with ¥4,592 million in the same period of the previous year.」
In addition to investment in property, plant and equipment and software for the Shiroi data center and other facilities, ¥2,612 million was spent on the acquisition of PTC, increasing cash used in investing activities from the same period of the previous year. Exposure to the risk of recovering upfront investments has expanded. - FY2021-Q3WorsenedAnnual report
「Cash flows from investing activities during the first 3 quarters of the current consolidated cumulative period included payments of ¥4,555 million for the acquisition of property, plant and equipment, ¥3,722 million for the acquisition of intangible assets such as software, proceeds of ¥1,859 million mainly from the sale of property, plant and equipment in sale-and-leaseback transactions, and ¥2,754 million in investments in equity-method affiliates, resulting in net cash used in investing activities of ¥8,918 million, compared with ¥6,461 million in the same period of the previous year.」
Acquisitions of property, plant and equipment and software, together with investments in equity-method affiliates, increased cash used in investing activities from ¥6,461 million in the same period of the previous year to ¥8,918 million, expanding exposure to upfront investment. - FY2021-Q2WorsenedAnnual report
「Cash flows from investing activities during the first half of the current consolidated cumulative period included payments of ¥2,754 million for the acquisition of property, plant and equipment, ¥2,772 million for the acquisition of intangible assets such as software, proceeds of ¥1,448 million mainly from the sale of property, plant and equipment in sale-and-leaseback transactions, and ¥2,754 million in investments in equity-method affiliates, resulting in net cash used in investing activities of ¥6,547 million.」
Cash used in investing activities, including ¥2,754 million invested in equity-method affiliates, was ¥6,547 million, up from ¥4,087 million in the same period of the previous year. - FY2021-Q1WorsenedAnnual report
「Cash flows from investing activities during the first quarter of the current consolidated cumulative period included payments of ¥1,407 million for the acquisition of property, plant and equipment, ¥1,805 million for the acquisition of intangible assets such as software, proceeds of ¥1,017 million mainly from the sale of property, plant and equipment in sale-and-leaseback transactions, and ¥2,754 million in investments in equity-method affiliates, resulting in net cash used in investing activities of ¥4,592 million.」
Including ¥2,754 million invested in equity-method affiliates, cash used in investing activities was ¥4,592 million, maintaining exposure to upfront investment and investment recovery risk. - FY2020-Q3WorsenedAnnual report
「Cash flows from investing activities during the first 3 quarters of the current consolidated cumulative period included payments of ¥6,222 million for the acquisition of property, plant and equipment, compared with ¥5,358 million in the same period of the previous year, ¥4,017 million for the acquisition of intangible assets such as software, compared with ¥4,401 million, and ¥2,750 million in proceeds from the sale of other investments, including shares. Net cash used in investing activities was ¥6,461 million, compared with ¥6,843 million in the same period of the previous year.」
Payments for the acquisition of property, plant and equipment increased year on year, while investment in software and other assets and the acquisition of equity-method investments continued, leaving exposure to upfront investment in place. - FY2020-Q2WorsenedAnnual report
「Cash flows from investing activities during the first half of the current consolidated cumulative period included payments of ¥4,788 million for the acquisition of property, plant and equipment, compared with ¥3,111 million in the same period of the previous year, and ¥2,422 million for the acquisition of intangible assets such as software, resulting in net cash used in investing activities of ¥4,087 million.」
Payments for the acquisition of property, plant and equipment increased year on year, and investment in software and other assets continued, expanding the scale of upfront investment. - FY2020-Q1WorsenedAnnual report
「Cash flows from investing activities during the first quarter of the current consolidated cumulative period included payments of ¥2,947 million for the acquisition of property, plant and equipment, compared with ¥1,571 million in the same period of the previous year, and ¥1,650 million for the acquisition of intangible assets such as software, compared with ¥1,564 million, resulting in net cash used in investing activities of ¥2,141 million.」
Payments for the acquisition of property, plant and equipment increased from ¥1,571 million in the same period of the previous year to ¥2,947 million, and investment in software and other assets continued, expanding exposure to the risk of recovering upfront investments. - FY2019WorsenedAnnual report
「We launched full MVNO services in March 2018. Since the launch, fixed costs of approximately ¥100 million per month have been incurred, including depreciation from capital investments in customer management systems and other systems, as well as additional interconnection charges associated with modifications to NTT DOCOMO's network. Revenue from full MVNO-related services was ¥660 million in the fiscal year ended March 2019. Although revenue is growing, costs are being incurred ahead of revenue.」
Although revenue from full MVNO-related services grew, fixed costs of approximately ¥100 million per month were incurred, specifically disclosing the cost-before-revenue position. - FY2019-Q2MitigatedAnnual report
「Continued revenue growth in network services and higher gross profit resulting from improved gross margins in systems integration absorbed the increase in fixed costs associated with full MVNO services and other businesses, resulting in a 25.8% year-on-year increase in operating profit.」
The increase in fixed costs associated with full MVNO services and other businesses was absorbed by higher revenue from network services and the increase in gross profit resulting from improved SI gross margins. This does not state that the risk of recovering upfront investments has been eliminated. - FY2018WorsenedAnnual report
「Capital expenditures, including asset acquisitions through capital leases, were ¥16,531 million and ¥20,828 million in the fiscal years ended March 2017 and March 2018, respectively, while depreciation and amortisation were ¥10,894 million and ¥12,365 million, respectively.」
Capital expenditures increased from ¥16,531 million to ¥20,828 million, expanding exposure to the risk of recovering upfront investments. - FY2018-Q3WorsenedAnnual report
「Cash flows from investing activities during the first 3 quarters of the current consolidated cumulative period included ¥11,785 million in payments for the acquisition of property, plant and equipment, including ¥1,205 million for land, compared with ¥7,940 million in payments in the same period of the previous year.」
Payments for the acquisition of property, plant and equipment increased year on year, further expanding the scale of upfront investment, including construction of data centers. - FY2018-Q2WorsenedAnnual report
「Cash flows from investing activities during the first half of the current consolidated cumulative period included ¥6,423 million in payments for the acquisition of property, plant and equipment, resulting in net cash used in investing activities of ¥4,499 million.」
Payments for the acquisition of property, plant and equipment increased from ¥5,358 million in the same period of the previous year to ¥6,423 million, further expanding the scale of upfront investment. - FY2018-Q1WorsenedAnnual report
「Cash flows from investing activities during the first quarter of the current consolidated cumulative period included ¥3,839 million in payments for the acquisition of property, plant and equipment, resulting in net cash used in investing activities of ¥2,572 million.」
Payments for the acquisition of property, plant and equipment increased from ¥3,085 million in the same period of the previous year to ¥3,839 million, expanding the scale of upfront investment. - FY2017WorsenedAnnual report
「Capital expenditures, including asset acquisitions through capital leases, were ¥14,812 million and ¥16,531 million in the fiscal years ended March 2016 and March 2017, respectively. The Group plans to continue making capital investments in cloud computing services in Japan and overseas.」
Capital expenditures increased, and additional investments in customer management systems and other systems were planned in connection with the launch of the full MVNO business, expanding exposure to upfront investment and recovery risk. - FY2016First statedAnnual report
「Based on these business investments and expenditures, the Group anticipates continued growth in revenue and profit. However, if the investments and expenditures are ineffective and fail to produce the expected business benefits, or if revenue from businesses requiring upfront capital expenditure and development investment fails to grow as expected」
Capital expenditures in the fiscal year ended March 2016 were ¥14.812 billion, including approximately ¥4.4 billion in cloud-related capital expenditures.