Investment Recovery Risk Associated with New Businesses, Collaboration and Strategic Alliances
First written in FY2020. 4 of 6 entries say "Restated". Latest entry: FY2025.
The whole theme swung hardest in 2019: 6 of 25 companies on the "Worse" side.
30 other companies' latest entry also says "Restated".
- FY2025RestatedAnnual report
「New initiatives are expected to require a certain period and investment before they generate stable earnings, which may reduce the overall profit margin.」
The disclosure continues to address the risks of the investment period, lower profit margins and insufficient investment recovery associated with new businesses, collaboration and strategic alliances, as well as decision-making based on multiple scenarios. - FY2023RestatedAnnual report
「New initiatives are expected to require a certain period and investment before they generate stable earnings, which may reduce the overall profit margin.」
The disclosure continues to address the risks of the investment period, lower profit margins and insufficient investment recovery associated with new businesses, collaboration and strategic alliances, as well as decision-making based on multiple scenarios. - FY2022RestatedAnnual report
「On the other hand, new initiatives may cause the Group to miss opportunities unless it proceeds while taking a certain level of risk. Accordingly, the Group seeks balanced decision-making while building a stable management base through its core businesses and increasing its risk tolerance.」
Regarding investment-recovery risks associated with new businesses, collaboration and strategic alliances, the disclosure continues to state the policy of using the core businesses as a stable foundation while preparing multiple scenarios and verifying risks. - FY2021MitigatedAnnual report
「When creating new businesses and services and considering collaboration and strategic alliances, the Group prepares multiple scenarios in advance, verifies each identified risk and makes decisions based on the corresponding measures, thereby working to mitigate those risks.」
As measures against investment-recovery risks associated with new businesses, collaboration and alliances, the disclosure cites decision-making based on multiple scenarios, risk verification and response measures. - FY2021-Q3RestatedAnnual report
「In addition, when new businesses that the Group has not previously operated are added through M&A or other means, business-specific risk factors may also arise.」
The disclosure continues to address business-specific risks when new businesses are acquired through M&A. - FY2020First statedAnnual report
「New initiatives are expected to require a certain period and investment before they generate stable earnings, which may reduce the overall profit margin. In addition, even if sufficient consideration has been given in advance, the Group's operating results and financial position may be affected if the expected results are not achieved, if changes in the future business environment or unforeseeable risks cause the initiatives to diverge from the original plan, or if the investments cannot be sufficiently recovered.」
The disclosure addresses the periods and investments required for new businesses, collaboration and strategic alliances, as well as the possibility of failing to achieve expected results, insufficient investment recovery and lower profit margins.