Failure to Monetize Following Expansion of Business Scope
First written in FY2020. 11 of 18 entries say "Worsened", first in FY2021-Q3. Latest entry: FY2026.
Enechange moved to the "Worse" side of this theme in 2021, 2 years before the typical company in this theme (2023).
The whole theme swung hardest in 2022: 4 of 18 companies on the "Worse" side.
6 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「The EV adoption rate fell short of initial expectations, charger utilization remained low, and the installation costs of EV chargers increased, among other factors, resulting in a situation in which sufficient earnings could not be secured.」
The risks of upfront investment in the new business and failure to achieve monetization materialized in the form of slower EV adoption, low utilization rates, higher installation costs, and the filing by the joint venture for civil rehabilitation proceedings. - FY2025ReframedAnnual report
「As of the date of filing this document, the earnings of the Group are significantly affected by the Energy Platform Business and the Energy Data Business. Accordingly, the Group is continually exploring new sources of revenue aligned with the “4Ds of Energy” and working to expand and stabilize its business.」
The risk of having to seek new sources of revenue remains even after the EV charging business became a consolidated subsidiary and was organized as a joint venture, but the business structure has been reorganized from expanding the EV charging business on a fully consolidated basis to stabilizing the earnings base by combining the 2 core businesses with the businesses of affiliated companies. - FY2025-H1WorsenedAnnual report
「As a result, segment revenue was ¥55.881 million, up 101.4% year on year, and the segment loss was ¥1,172.073 million, compared with a segment loss of ¥1,018.570 million in the same period of the previous year.」
Although revenue from the EV charging business increased, the segment loss widened to ¥1,172.073 million, and investment in the new business continues to precede monetization, which has not yet been achieved. - FY2024-Q1WorsenedAnnual report
「As a result, segment revenue was ¥26.955 million, up 149.5% year on year, and the segment loss was ¥618.616 million, compared with a segment loss of ¥474.022 million in the same period of the previous year.」
Although revenue from the EV charging business increased, the segment loss widened from ¥474.022 million in the same period of the previous year to ¥618.616 million. Investment in the new business continues to precede monetization, which has not yet been achieved. - FY2023WorsenedAnnual report
「As a result, segment revenue was ¥139.807 million, down 26.2% from the previous fiscal year, and the segment loss was ¥2,081.636 million, compared with a segment loss of ¥784.491 million in the previous fiscal year.」
Revenue from the EV charging business declined, while the segment loss widened to ¥2.082 billion. The risks associated with upfront investment in the new business and failure to achieve monetization increased further in the full-year results. - FY2023-Q3WorsenedAnnual report
「As a result, segment revenue was ¥762.672 million, compared with ¥2.891 million in the same period of the previous year, and the segment loss was ¥1,107.505 million, compared with a segment loss of ¥406.510 million in the same period of the previous year.」
Although revenue from the EV charging business increased to ¥762.672 million, the segment loss widened to ¥1,107.505 million, further crystallizing the delay in monetization relative to upfront investment. - FY2023-Q2WorsenedAnnual report
「As a result, segment revenue was ¥27.752 million, up 1,596.1% year on year, and the segment loss was ¥997.944 million, compared with a segment loss of ¥208.439 million in the same period of the previous year.」
Although revenue from the EV charging business increased, the segment loss widened from ¥208.439 million in the same period of the previous year to ¥997.944 million, further exacerbating the delay in monetization relative to upfront investment. - FY2023-Q1WorsenedAnnual report
「As a result, segment revenue was ¥10.803 million, up 1,405.6% year on year, and the segment loss was ¥474.022 million, compared with a segment loss of ¥89.709 million in the same period of the previous year.」
Although revenue from the EV charging business increased, the segment loss widened from ¥89.709 million in the same period of the previous year to ¥474.022 million due to upfront investment, further crystallizing the risk that investment in the new business would precede monetization. - FY2022WorsenedAnnual report
「However, if the Group expands its business areas and enters new fields, invests in recruitment, system development and the establishment of sales capabilities, but fails to make progress in monetizing those fields, this may affect the Group’s operating results and financial condition.」
In the EV Charging Business, segment revenue was ¥189,375 thousand against a segment loss of ¥784,491 thousand, indicating that the situation in which investment in the new business precedes revenue generation had worsened. - FY2022-Q3WorsenedAnnual report
「As a result, segment revenue was ¥2,891 thousand and segment loss was ¥406,510 thousand.」
In the EV Charging Business, segment revenue was ¥2,891 thousand against a segment loss of ¥406,510 thousand, indicating that the delay in monetization relative to upfront investment had increased from the previous quarter. - FY2022-Q2WorsenedAnnual report
「As a result, segment revenue was ¥1,636 thousand and segment loss was ¥208,439 thousand.」
In the EV Charging Business, while continuing upfront investments, segment revenue was ¥1,636 thousand against a segment loss of ¥208,439 thousand, indicating that the risk of upfront investment in a new business preceding monetization had increased from the previous quarter. - FY2022-Q1MaterialisedAnnual report
「In the EV Charging Business, the Company made upfront investments, including building an organizational structure through increased recruitment focused on engineers and sales personnel and conducting proactive marketing, to launch and promote the business, and accumulated orders. As a result, segment revenue was ¥717 thousand and segment loss was ¥89,709 thousand.」
As upfront investments in personnel, marketing and other areas progressed following the launch of the new business, the EV Charging Business recorded segment revenue of ¥717 thousand against a segment loss of ¥89,709 thousand. The risk that investment in a new field will precede revenue generation and monetization will come later has emerged in actual results. - FY2021WorsenedAnnual report
「As of the date of filing this document, the Group’s revenue is significantly affected by sales from the Energy Platform Business and Energy Data Business. Accordingly, the Group is constantly exploring new revenue sources based on the Energy 4D concept and working to expand and stabilize its business. However, if the Group expands its business areas and enters fields different from its current areas, invests in recruitment, system development and the establishment of sales capabilities, but fails to make progress in monetizing those fields, this may affect the Group’s operating results and financial condition.」
While the Group continues to expand its business areas through initiatives such as EV charging services and the acquisition of オーベラス・ジャパン, it continues to disclose the risk that investments in new fields may precede revenue generation and fail to achieve monetization. - FY2021-Q3WorsenedAnnual report
「The goodwill arising from the acquisition of the shares is expected to appropriately reflect the expected returns from the acquisition and the future earning power resulting from the realization of future synergies. However, if it is determined that the expected results will not be achieved due to changes in the business environment, competitive conditions or other factors, an impairment loss may arise, affecting the Group’s operating results and financial condition.」
The acquisition of オーベラス・ジャパン gave specific form to the risk of failure to monetize after expanding business areas, namely goodwill impairment if the expected returns and synergies are not realized. - FY2020First statedAnnual report
「However, if the Group expands its business areas and enters fields different from its current areas, invests in recruitment, system development and the establishment of sales capabilities, but fails to make progress in monetizing those fields, this may affect the Group’s operating results and financial condition.」
This indicates the possibility that investments in new businesses based on the Energy 4D concept may not be monetized.