Risk of Reduced Business Activity and Demand Due to the COVID-19 Pandemic
First written in FY2020. 4 of 6 entries say "Materialised", first in FY2021-Q1. Latest entry: FY2022-Q1.
The whole theme swung hardest in 2020: 103 of 175 companies on the "Worse" side.
- FY2022-Q1RestatedAnnual report
「Assuming that the effects of the spread of COVID-19 would continue for at least a certain period, our group reflected accounting estimates in its accounting treatment based on information available when preparing the quarterly consolidated financial statements. However, the effects of the spread of COVID-19 involve many uncertainties and may affect our group's financial position and operating results from the second quarter of the consolidated fiscal year onward.」
The company made accounting estimates on the assumption that the effects of COVID-19 would continue for a certain period, while stating that the impact on its future financial position and operating results remains uncertain. - FY2021MaterialisedAnnual report
「In the energy-saving consulting business, we continued to propose energy-saving equipment and systems as an energy management service provider and supported applications for subsidies for energy-saving investments. However, corporate investment in energy efficiency was restrained in part by the spread of COVID-19, and both sales and profit fell below the previous fiscal year.」
Corporate investment in energy efficiency was restrained by the spread of COVID-19, resulting in lower sales and profit in the energy-saving consulting business than in the previous fiscal year. - FY2021-Q3MaterialisedAnnual report
「In its energy-efficiency consulting business, the company continued to propose energy-efficiency equipment and systems as an energy management service provider and support subsidy applications for investments in energy efficiency. However, corporate investment in energy efficiency was restrained by the spread of COVID-19, and both revenue and profit fell below the same quarter of the previous year.」
The spread of COVID-19 discouraged corporate investment in energy efficiency, resulting in lower sales and profit in the energy-saving consulting business than in the same period of the previous year. - FY2021-Q2MaterialisedAnnual report
「In the electricity retail business, electricity consumption declined as the operating rates of factories and other facilities fell due to the impact of COVID-19, although」
The company stated that the impact of COVID-19 had actually resulted in lower operating rates at factories and other facilities and reduced electricity consumption. - FY2021-Q1MaterialisedAnnual report
「During the first quarter of the current consolidated fiscal year, the Japanese economy faced requests to restrict corporate activities and refrain from going out under the state of emergency declared in response to the spread of COVID-19. Economic activity stagnated significantly, and the outlook remained extremely uncertain, with no visibility on when the pandemic would subside or on the effects of its spread.」
Regarding COVID-19, which had been disclosed as a risk in the previous fiscal year, the company stated that restrictions on corporate activities, requests to refrain from going out and a significant stagnation in economic activity had actually occurred, with no clear outlook for the impact. - FY2020First statedAnnual report
「If the suspension of operations by other businesses and requests for the general public to refrain from going out, implemented because of the spread of COVID-19 or to prevent its spread, continue for an extended period, household electricity consumption, particularly daytime demand, may increase as people refrain from going out and work remotely. However, electricity demand among businesses may decline and their operating performance may deteriorate, potentially reducing sales in the electricity retail business, which is part of the energy-related business, and making it difficult to collect accounts receivable. In addition, if businesses become less willing to invest in equipment for energy efficiency and other energy-saving measures because they prioritize measures to prevent the spread of COVID-19, sales in the energy-saving consulting business, which is also part of the energy-related business, may decline. In the travel-related business, operating performance may be affected by lower traveler demand, particularly inbound demand, resulting from the spread of COVID-19 and the prolonged effects of the pandemic, including lower occupancy rates at accommodation facilities.」
The company disclosed new business-specific risks from COVID-19 involving electricity demand and collection of accounts receivable, investment in energy-saving equipment, and inbound travel demand and accommodation occupancy rates.