Risks from Unprofitable Projects, Delivery Delays and Quality Problems
First written in FY2019. 15 of 27 entries say "Mitigated", first in FY2021-Q2. Latest entry: 2026-10-09.
The whole theme swung hardest in 2020: 6 of 10 companies on the "Worse" side.
3 other companies' latest entry also says "Mitigated".
- 2026-10-09MitigatedEarnings
「受注損失引当金 14,894 1,351」
受注損失引当金は前連結会計年度末の14,894千円から当第1四半期末の1,351千円へ減少している。 - FY2026WorsenedAnnual report
「For certain unprofitable projects, we worked to minimize their impact through measures taken during the fiscal year, and their impact on full-year results remained limited.」
Loss-making projects arose during the current fiscal year, and the company explains that their impact on full-year results remained limited. The provision for contract losses increased from ¥5.767 million at the previous year-end to ¥14.894 million. - FY2026-H1MaterialisedAnnual report
「As a result of these efforts, the impact on full-year results of loss-making projects that arose during the first half has remained limited.」
The company explicitly states that loss-making projects arose during the first half, indicating that the risk has materialized. Meanwhile, it explains that the impact on full-year results has remained limited due to improved project management precision. The provision for contract losses increased from ¥5.767 million at the previous year-end to ¥14.623 million at the interim period-end. - FY2025MitigatedAnnual report
「Orders and sales relating to public-sector development remained firm, the impact of loss-making projects in the previous fiscal year was eliminated, and the expanded use of partners」
The company explains that the impact of loss-making projects in the previous fiscal year has been eliminated. Meanwhile, it has recorded a provision for contract losses of ¥5.767 million on the consolidated balance sheet. - FY2025-H1MitigatedAnnual report
「Provision for contract losses 1,883 88」
The provision for contract losses decreased from ¥1.883 million at the end of the previous fiscal year to ¥88,000 at the end of the interim accounting period, indicating a decline in the provision balance relating to loss-making projects. - FY2024WorsenedAnnual report
「Provision for contract losses 288 1,883」
The provision for contract losses increased from ¥288,000 at the end of the previous fiscal year to ¥1.883 million, increasing the provision balance relating to loss-making projects. - FY2024-Q3MitigatedAnnual report
「Provision for contract losses 288 2,112」
Although the provision for contract losses increased from ¥288,000 at the end of the previous fiscal year to ¥2.112 million, it decreased from ¥4.813 million at the end of the second quarter. Thus, the provision balance relating to loss-making projects declined from the immediately preceding quarter. This disclosure does not indicate that an actual loss has occurred. - FY2024-Q2WorsenedAnnual report
「Provision for contract losses 288 4,813」
The provision for contract losses increased from ¥288,000 at the end of the previous fiscal year to ¥4.813 million at the end of the second quarter under review, increasing the provision balance relating to loss-making projects. The risk has been quantified, but this disclosure does not indicate that an actual loss has occurred. - FY2024-Q1WorsenedAnnual report
「Provision for contract losses 288 625」
The provision for contract losses increased from ¥288,000 at the end of the previous fiscal year to ¥625,000 at the end of the first quarter under review, increasing the provision balance relating to loss-making projects. This disclosure does not indicate that an actual loss has occurred. - FY2023MitigatedAnnual report
「Provision for contract losses ¥26.020 million ¥288,000」
The provision for contract losses decreased from ¥26.020 million at the end of the previous fiscal year to ¥288,000, and the company explains that there were fewer problems and loss-making projects during the fiscal year. - FY2023-Q3Low-profitability projects continued to affect results, while the provision balance fell substantiallyAnnual report
「Although profitability temporarily declined due to low-profitability projects continuing from the previous fiscal year, sales from development projects remained firm as the company actively won orders for functional enhancements and modifications to large-scale projects, building on its strong relationship with a major domestic systems integrator that serves as a prime contractor for public-sector development projects.」
The temporary decline in profitability due to low-profitability projects continues. Meanwhile, the provision for contract losses decreased from ¥26.020 million at the end of the previous fiscal year to ¥989,000, substantially reducing the provision balance. - FY2023-Q2Low-profitability projects continued to affect results, while the provision balance declinedAnnual report
「Although profitability temporarily declined due to low-profitability projects continuing from the previous fiscal year, sales from development projects remained firm as the company actively won orders for functional enhancements and modifications to large-scale projects, building on its strong relationship with a major domestic systems integrator that serves as a prime contractor for public-sector development projects.」
The company disclosed a temporary decline in profitability due to low-profitability projects, indicating that the impact of the risk continues. Meanwhile, the provision for contract losses decreased from ¥26.020 million at the end of the previous fiscal year to ¥2.094 million, reducing the provision balance. - FY2023-Q1MitigatedAnnual report
「Provision for contract losses 26,020 452」
The provision for contract losses decreased from ¥26.020 million at the end of the previous fiscal year to ¥452,000 at the end of the first quarter under review, indicating a decline in the provision balance relating to loss-making projects. This disclosure does not indicate whether an actual loss has occurred. - FY2022WorsenedAnnual report
「Provision for contract losses 3,083 26,020」
The provision for contract losses increased from ¥3.459 million at the end of the previous fiscal year to ¥26.020 million at the end of the fiscal year. Although it decreased from ¥41.933 million at the end of the third quarter, the provision balance relating to loss-making projects increased from the previous year-end. - FY2022-Q3WorsenedAnnual report
「While the provision for contract losses increased by ¥38.474 million」
The provision for contract losses increased from ¥3.459 million at the end of the previous fiscal year to ¥41.933 million at the end of the third quarter under review, a substantial increase in the provision balance relating to loss-making projects. This disclosure does not indicate that an actual loss has occurred. - FY2022-Q2WorsenedAnnual report
「Provision for contract losses 3,459 4,348」
The provision for contract losses increased from ¥3.459 million at the end of the previous fiscal year to ¥4.348 million at the end of the second quarter under review, indicating an increase in the provision balance relating to loss-making projects. - FY2022-Q1MitigatedAnnual report
「Provision for contract losses 3,459 1,782」
The provision for contract losses decreased from ¥3.459 million at the end of the previous fiscal year to ¥1.782 million at the end of the first quarter under review. - FY2021MitigatedAnnual report
「Provision for contract losses ¥8.826 million ¥3.459 million」
The provision for contract losses decreased from ¥8.826 million at the end of the previous fiscal year to ¥3.459 million. - FY2021-Q3MitigatedAnnual report
「Provision for contract losses 8,826 2,828」
The provision for contract losses decreased from ¥8.826 million at the end of the previous fiscal year to ¥2.828 million at the end of the third quarter under review. - FY2021-Q2MitigatedAnnual report
「Provision for contract losses 8,826 4,370」
The balance of the provision for contract losses decreased from ¥8.826 million at the end of the previous fiscal year to ¥4.370 million at the end of the second quarter under review. This disclosure does not indicate whether an actual loss has occurred. - FY2020WorsenedAnnual report
「Provision for contract losses ¥8.826 million」
The provision for contract losses increased from ¥1.046 million in the previous period to ¥8.826 million, quantifying estimated future losses relating to loss-making projects. This does not indicate that an actual loss has occurred. - FY2019First statedAnnual report
「Development is becoming increasingly difficult. To manage risks relating to project development, the company monitors project progress from the emergence of a business opportunity by using process management methods such as PMBOK, but」
The company indicates that increasingly large and complex development projects may lead to losses, delivery delays, claims and litigation, and monitors them using PMBOK.