Loss-Making Projects in the ERP Business and Provisions for Order Losses
First written in FY2017-Q2. 12 of 27 entries say "Mitigated", first in FY2018. Latest entry: FY2027-H1.
The whole theme swung hardest in 2025: 5 of 16 companies on the "Worse" side.
3 other companies' latest entry also says "Worsened".
- FY2027-H1WorsenedAnnual report
「Provision for loss on orders 10,521 16,518」
The balance of the provision for loss on orders increased from ¥10.521 million at the end of the previous consolidated fiscal year to ¥16.518 million at the end of the interim consolidated accounting period. The text does not explicitly state that any new unprofitable projects had arisen. - 2026-04-14MitigatedRevision of earnings forecasts
「Provision for loss on orders 3,834 10,521」
The provision for loss on orders increased from ¥3,834 thousand at the end of the previous consolidated fiscal year to ¥10,521 thousand at the end of the current fiscal year. It declined, however, from ¥27,061 thousand reported at the end of the immediately preceding interim period. - FY2026-H1WorsenedAnnual report
「Provision for loss on orders 3,834 27,061」
The balance of the provision for loss on orders increased from ¥3.834 million at the end of the previous consolidated fiscal year to ¥27.061 million at the end of the interim consolidated accounting period. - FY2024MitigatedAnnual report
「No provision for loss on orders was recorded at either the end of the previous fiscal year or the end of the current fiscal year.」
The provision for loss on orders remaining at the end of the previous quarter was no longer recorded at the end of the current fiscal year. - FY2024-Q3MitigatedAnnual report
「Provision for loss on orders － 1,280」
The balance of the provision for loss on orders increased from none at the end of the previous fiscal year to ¥1.280 million. Although the balance is small, a provision related to an unprofitable project remains recorded. - FY2024-Q2WorsenedAnnual report
「Provision for loss on orders － 1,433」
The provision for loss on orders increased from none at the end of the previous fiscal year to ¥1.433 million at the end of the second quarter accounting period. - FY2023MitigatedAnnual report
「No provision for loss on orders was recorded at the end of the current fiscal year.」
For the unprofitable ERP projects that arose in the past, there was no balance of the provision for loss on orders at the end of the current fiscal year, and no new provision was recorded. - FY2023-Q2WorsenedAnnual report
「This was due to a ¥29.064 million decrease in accounts payable, a ¥340.312 million decrease in advances received, a ¥439.313 million increase in contract liabilities, and a ¥16.524 million increase in the provision for loss on orders, among other factors.」
The company stated that the provision for loss on orders among current liabilities at the end of the second quarter increased by ¥16.524 million. - FY2022-Q3WorsenedAnnual report
「Provision for loss on orders 231,609 33,663」
The provision for loss on orders declined from ¥231.609 million at the end of the previous fiscal year to ¥33.663 million, but increased from ¥8.974 million in the previous filing, indicating an increase in the provision balance related to the remaining unprofitable projects. - FY2022-Q2MitigatedAnnual report
「Decrease in provision for loss on orders: ¥222.634 million」
The provision for loss on orders fell substantially from ¥231.609 million at the end of the previous fiscal year to ¥8.974 million at the end of the second quarter, reducing the additional loss burden related to the unprofitable project that arose in the previous fiscal year. - FY2022-Q1MitigatedAnnual report
「The unprofitable project that arose in the previous fiscal year has already been delivered, and no additional loss will arise in the current fiscal year.」
The company expressly stated that the unprofitable ERP project that arose in the previous fiscal year had been delivered and that no additional loss would arise, indicating that the risk of additional losses as the project progressed had been contained. The balance of the provision for loss on orders is ¥232.914 million. - FY2021WorsenedAnnual report
「In the current fiscal year, the company recorded ¥231.609 million as a provision for loss on orders, covering all of the expected increase in development costs associated with this matter.」
For the unprofitable ERP project disclosed from the second quarter onward, the company recorded a ¥231.609 million provision for loss on orders for the increase in development costs, up from ¥193.209 million at the end of the previous quarter. - FY2021-Q3WorsenedAnnual report
「For the unprofitable project, the company adjusted the schedule with the customer to ensure quality and extended the planned start of operations. Following a review of the staffing plan, the provision for loss on orders increased by ¥65.544 million from the cumulative second-quarter period, bringing the recorded provision to ¥193.209 million.」
For the unprofitable project that arose during the cumulative second-quarter period, the provision for loss on orders increased by ¥65.544 million to ¥193.209 million as a result of the extension of the planned start of operations and the review of the staffing plan. - FY2021-Q2MaterialisedAnnual report
「Although the ERP business is steadily expanding, the company recorded a provision for loss on orders of ¥127.665 million in the cumulative second-quarter period because an unprofitable project arose.」
A new unprofitable project arose in the ERP business, resulting in a ¥127.665 million provision for loss on orders. Operating profit in the ERP and AI businesses also fell 93.7% year on year. - FY2021-Q1WorsenedAnnual report
「Provision for loss on orders 17 15,269」
The balance of the provision for loss on orders increased from ¥17,000 at the end of the previous fiscal year to ¥15.269 million. The text does not state that any new unprofitable projects had arisen. - FY2020MitigatedAnnual report
「Provision for loss on orders 6,246 17」
The balance of the provision for loss on orders declined from ¥6.246 million at the end of the previous fiscal year to ¥17,000, leaving almost no provision balance related to unprofitable projects. - FY2020-Q3MitigatedAnnual report
「Decrease in provision for loss on orders: ¥2.100 million」
The provision for loss on orders declined from ¥6.246 million at the end of the previous fiscal year to ¥4.145 million, but a balance remains. - FY2020-Q2MitigatedAnnual report
「Provision for loss on orders 6,246 902」
The balance of the provision for loss on orders declined from ¥6.246 million at the end of the previous fiscal year to ¥902,000 at the end of the second quarter accounting period. - FY2020-Q1MitigatedAnnual report
「Provision for loss on orders 6,246 －」
The balance of the provision for loss on orders fell from ¥6.246 million at the end of the previous fiscal year to zero at the end of the first quarter accounting period. Meanwhile, the company explained that the operating loss in the ERP and AI businesses reflected a plan weighted toward the second half, and did not state that any new unprofitable projects had arisen. - FY2019-Q3MitigatedAnnual report
「Provision for loss on orders 982,618 －」
The provision for loss on orders fell from ¥982.618 million at the end of the previous fiscal year to zero at the end of the third quarter accounting period, eliminating the previously disclosed provision balance related to unprofitable projects. - FY2019-Q1RestatedAnnual report
「Provision for losses on orders 982,618 976,126」
The balance of the provision for loss on orders remains recorded, declining from ¥982.618 million at the end of the previous fiscal year to ¥976.126 million. - FY2018MitigatedAnnual report
「During the current fiscal year, stronger operating controls for SI Object Browser PM helped us avoid almost all loss-making projects and achieve record-high profit. However, as loss-making projects have occurred in the past, project failure remains a risk that could significantly affect our business.」
The company stated that stronger operating controls for SI Object Browser PM resulted in almost no loss-making projects during the current fiscal year, demonstrating the effectiveness of its risk response. At the same time, it stated that the risk of project failure itself remains. - FY2018-Q3RestatedAnnual report
「Provision for losses on orders 1,256,494 1,269,042」
The balance of the provision for losses on orders increased from ¥1,256.494 million at the end of the previous fiscal year to ¥1,269.042 million. The main text contains no new explanation of the loss-making ERP project. - FY2018-Q2RestatedAnnual report
「Provision for losses on orders 1,256,494 1,263,706」
The balance of the provision for losses on orders related to the loss-making ERP project increased from ¥1,256.494 million at the end of the previous fiscal year to ¥1,263.706 million. The main text contains no new explanation of the project, but the provision balance continues to be recognised. - FY2018-Q1RestatedAnnual report
「Provision for losses on orders 1,256,494 1,256,778」
Although the previous explanation of the loss-making ERP project is not repeated in the main text, the balance of the provision for losses on orders on the balance sheet increased from ¥1,256.494 million at the end of the previous fiscal year to ¥1,256.778 million. - FY2017-Q3RestatedAnnual report
「During the fiscal year, we recorded a provision of ¥194.211 million for losses on orders due to a loss-making project in the ERP business. The project is expected to incur a loss because costs have increased to recover from a schedule revision.」
The company reiterates the occurrence of a loss-making project in the ERP business and the recording of a ¥194.211 million provision for losses on orders. It continues to state that recovery costs have increased due to a schedule revision and that a loss is expected. - FY2017-Q2MaterialisedAnnual report
「During the second quarter, we recorded a provision of ¥194.211 million for losses on orders due to a loss-making project in the ERP business. The project is expected to incur a loss because costs have increased to recover from a schedule revision.」
Separate from the large loss-making project that arose the year before last, a new loss-making project arose in the ERP business during the quarter, and the company recorded a ¥194.211 million provision for losses on orders.