Risk of Reduced Business and IT Investment Due to COVID-19
First written in FY2020. 4 of 7 entries say "Materialised", first in FY2021-Q1. Latest entry: FY2022-Q2.
4 other companies' latest entry also says "Mitigated".
- FY2022-Q2MitigatedAnnual report
「As companies and government agencies seek strategic management reforms, including the creation of new businesses and services using digital technologies and changes in working styles, demand for IT investment is recovering, and investment in digital transformation (DX) is expected to accelerate further.」
While demand for IT investment remained affected by the spread of infectious diseases, the company explained that demand was recovering and that DX investment would accelerate. This indicated some easing of the demand slowdown seen through the previous quarter. - FY2022-Q1MitigatedAnnual report
「Although demand for IT investment slowed due to the spread of COVID-19, demand is beginning to recover」
The slowdown in demand for IT investment due to the spread of infectious diseases was still noted, but the company explained that demand was beginning to recover, indicating some easing of the impact seen through the previous filing. - FY2021MaterialisedAnnual report
「The Digital Learning business shifted from conventional classroom-based lectures to online delivery using the web due to the spread of COVID-19, but the impact during the first half of the fiscal year resulted in declines in both revenue and gross profit.」
The shift in lecture format and the impact during the first half of the fiscal year affected the Digital Learning business, with revenue down 18.5% year on year and gross profit down 87.0%. - FY2021-Q3MaterialisedAnnual report
「Meanwhile, revenue increased but growth slowed and gross profit declined due to postponements of cloud projects in the aviation and manufacturing industries, as well as higher costs and lost sales opportunities resulting from temporary unprofitable projects.」
Against the backdrop of the spread of COVID-19, delays in cloud migration projects for the aviation and manufacturing industries, lost sales opportunities and higher costs occurred, affecting profit in the Cloud Solutions business. - FY2021-Q2MaterialisedAnnual report
「Gross profit declined due to delays in cloud migration projects for the aviation industry, as well as higher costs and lost sales opportunities resulting from temporarily unprofitable projects.」
In connection with the spread of COVID-19, delays in cloud migration projects for the aviation industry, lost sales opportunities and higher costs continued to occur, resulting in lower gross profit. - FY2021-Q1MaterialisedAnnual report
「Profit declined due to delays in cloud migration projects for the aviation industry, as well as higher costs and lost sales opportunities resulting from temporarily unprofitable projects.」
In connection with COVID-19, delays in cloud migration projects for the aviation industry, lost sales opportunities and higher costs actually occurred, resulting in lower profit in the Cloud Solutions business. - FY2020First statedAnnual report
「If the Group or its customers’ buildings, facilities or employees are affected by a major earthquake, typhoon or other natural disaster, or if an infectious disease such as influenza or COVID-19 spreads, employees may be unable to come to work or perform their duties, which could adversely affect operating results. In addition, if these natural disasters or the spread of infectious diseases affect domestic economic conditions or the performance of our customers, customers may curb their IT investments, potentially resulting in fewer new projects and reduced project sizes and adversely affecting operating results. At this stage, however, no material impact of COVID-19 on the Group’s business activities or operating results has been identified.」
COVID-19 was explicitly identified independently for the first time as a risk that could affect employee attendance and performance of duties, customer IT investment, and new and existing projects. At the time of filing, however, no material impact had been identified.