Risk of deteriorating profitability on large and increasingly complex projects
First written in FY2018. 8 of 19 entries say "Mitigated", first in FY2021-Q3. Latest entry: FY2026.
System Support Holdings moved to the "Worse" side of this theme in 2025, 5 years after the typical company in this theme (2020).
The whole theme swung hardest in 2020: 6 of 10 companies on the "Worse" side.
2 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Provision for contract loss 693 3,099」
The balance of the provision for contract loss increased from ¥693 thousand at the end of the previous consolidated fiscal year to ¥3.099 million, indicating that the risk of deteriorating profitability on large and increasingly complex projects is reflected in the higher provision. - FY2026-H1WorsenedAnnual report
「Provision for losses on orders 693 837」
The balance of the provision for losses on orders increased from ¥693 thousand at the end of the previous consolidated fiscal year to ¥837 thousand, and the risk of deteriorating profitability on large and complex projects has again emerged through the increase in the provision. - FY2025MaterialisedAnnual report
「Provision for losses on orders — thousand ¥693 thousand」
A ¥693 thousand provision for losses on orders was recognized, and a provision against deteriorating project profitability, which had been zero in the previous fiscal year, arose again. The risk of deteriorating profitability on large and complex projects has materialized in the accounts. - FY2024RestatedAnnual report
「However, as projects become more complex, larger, and subject to shorter delivery schedules, even projects for which profitability was expected when the contract was received and which are managed using the above method may experience substantial specification changes or other events during development. If the required work hours increase beyond the initial estimate, the company may be unable to ensure the planned level of quality or may incur higher costs because the project cannot be completed within the development period.」
The company continues to describe the risks of specification changes, increased work hours, and deterioration in quality, delivery schedules, and profitability on projects that are becoming larger, more complex, and subject to shorter delivery schedules, along with its management methods. - FY2023MitigatedAnnual report
「Provision for losses on orders ¥103 thousand — thousand」
The balance of the provision for losses on orders fell from ¥103 thousand at the end of the previous fiscal year to zero, reducing the provision balance held against the risk of deteriorating project profitability. - FY2023-Q3WorsenedAnnual report
「Provision for losses on orders 103 974」
The balance of the provision for losses on orders increased from ¥103 thousand at the end of the previous consolidated fiscal year to ¥974 thousand, and the risk of deteriorating profitability on large and complex projects has again emerged through the increase in the provision. quantified is true and materialized is true. - FY2023-Q2MitigatedAnnual report
「Provision for losses on orders 103 —」
The balance of the provision for losses on orders decreased from ¥103 thousand at the end of the previous consolidated fiscal year to zero at the end of the current second quarter, indicating an improvement from the previous disclosure in the response to the risk of deteriorating project profitability. - FY2023-Q1WorsenedAnnual report
「Provision for losses on orders 103 863」
The balance of the provision for losses on orders increased from ¥103 thousand at the end of the previous consolidated fiscal year to ¥863 thousand, and the risk of deteriorating profitability on large and complex projects has emerged through the increase in the provision. - FY2022MitigatedAnnual report
「Provision for losses on orders ¥4.144 million ¥103 thousand」
The balance of the provision for losses on orders decreased from ¥4.144 million at the end of the previous fiscal year to ¥103 thousand, and the provision balance, which was ¥8.378 million as of Q3, also declined. The response to the risk of deteriorating project profitability has improved from the previous disclosure. - FY2022-Q3WorsenedAnnual report
「Provision for losses on orders 4,144 8,378」
The balance of the provision for losses on orders increased from ¥4.144 million at the end of the previous consolidated fiscal year to ¥8.378 million, and the risk of deteriorating profitability on large and complex projects has again become more pronounced through the increase in the provision. quantified is true and materialized is true. - FY2022-Q2MitigatedAnnual report
「Provision for losses on orders 4,144 149」
The balance of the provision for losses on orders decreased from ¥4.144 million at the end of the previous consolidated fiscal year to ¥149 thousand, reducing the provision balance held against the risk of deteriorating project profitability. - FY2022-Q1MitigatedAnnual report
「Provision for losses on orders 4,144 582」
The balance of the provision for losses on orders decreased from ¥4.144 million at the end of the previous consolidated fiscal year to ¥582 thousand, further reducing the provision balance held against the risk of deteriorating project profitability. - FY2021MitigatedAnnual report
「Provision for losses on orders ¥2.575 million ¥4.144 million」
The provision for losses on orders increased from ¥2.575 million in the previous consolidated fiscal year to ¥4.144 million, while the balance at the end of the period decreased from ¥5.425 million to ¥4.144 million. The risk of deteriorating project profitability remains, but the provision balance is lower than at the end of the previous fiscal year. - FY2021-Q3MitigatedAnnual report
「Provision for losses on orders 5,425 499」
The balance of the provision for losses on orders decreased from ¥5.425 million at the end of the previous consolidated fiscal year to ¥499 thousand, reducing the provision related to deteriorating project profitability that had materialized at the time of the previous disclosure. - FY2021-Q2MaterialisedAnnual report
「Change in provision for losses on orders (△ indicates a decrease) 7,160」
A ¥7.160 million increase in the provision for losses on orders was recognized, and the balance sheet balance increased from ¥5.425 million at the end of the previous consolidated fiscal year to ¥12.585 million. The risk of deteriorating project profitability has materialized through recognition of the provision. - FY2019RestatedAnnual report
「In recent years, the Group's policy has been to take on an increasing number of large projects, for which more detailed project management is required.」
The company continues to describe the possibility of deteriorating profitability, delivery delays, and damages claims on large and increasingly complex projects. The management thresholds of over ¥5 million and over ¥30 million also continue to apply. - FY2018First statedAnnual report
「If substantial specification changes or other events occur during development and the required work hours increase beyond the initial estimate, the company may be unable to ensure the planned level of quality or may incur higher costs because the project cannot be completed within the development period.」
For projects that are becoming larger, more complex, and subject to shorter delivery schedules, the company describes the possibility of low profitability or losses due to specification changes or estimation errors, as well as liquidated damages for delay or damages claims. It also specifies management thresholds of over ¥5 million and over ¥30 million.