Uncertainty Regarding the Benefits of Investments in Research and Development and Business Infrastructure
First written in FY2017. 2 of 5 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2019: 6 of 26 companies on the "Worse" side.
9 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「If the benefits of investment fall short of expectations, the group’s performance and financial condition may be affected over the medium to long term. To address this risk, when considering business investments, the group carefully makes decisions in accordance with the authority limits set out in advance in its Authority Regulations after evaluating the expected benefits and risks. During implementation, it continuously monitors progress against the plan and takes timely measures as necessary to prevent the risk from materializing and mitigate its impact.」
The response to business and capital investment risks was specified as evaluating investment benefits and risks during the consideration stage and monitoring progress after implementation. - FY2022Specificity of Business Investment and Reorganization RisksAnnual report
「However, changes in market conditions or gaps between products under development and market needs may prevent these business investments and reorganizations from generating the expected returns.」
The uncertainty surrounding the effectiveness of the existing investments in research and development and the business foundation was specified as uncertainty regarding the returns from business investments and the reorganization planned for October 2022. - FY2020RestatedAnnual report
「There is no guarantee that the group will always be able to develop new products that contribute to its growth or establish a business foundation that generates returns commensurate with the investment.」
The policy of active investment in research and development and the business foundation, and the possibility that the benefits of investment will not materialize, continue to be disclosed. - FY2018RestatedAnnual report
「The group plans to make active investments in priority areas, including research and development, to strengthen product competitiveness and develop and expand its business foundation, while considering its performance and financial condition, with a view to sustained medium- to long-term growth. However, there is no guarantee that the group will always be able to develop new products that contribute to its growth or establish a business foundation that generates returns commensurate with the investment.」
The policy of active investment in research and development and the business foundation, and the possibility that the benefits will not materialize, continue to be disclosed. - FY2017First statedAnnual report
「The group plans to make active investments in priority areas, including research and development, to strengthen product competitiveness and develop and expand its business foundation, while considering its performance and financial condition, with a view to sustained medium- to long-term growth. However, there is no guarantee that the group will always be able to develop new products that contribute to its growth or establish a business foundation that generates returns commensurate with the investment.」
While stating a policy of active investment in research and development, product competitiveness and the business foundation, the disclosure covers the possibility that new product development and the benefits of investment may not materialize.