Risk of Recovering Upfront Investments in New Services and New Businesses
First written in FY2020. 1 of 3 entries say "Worsened", first in FY2021. Latest entry: FY2022.
The whole theme swung hardest in 2019: 6 of 25 companies on the "Worse" side.
30 other companies' latest entry also says "Restated".
- FY2022RestatedAnnual report
「The group will continue to actively pursue new services and businesses, but this may result in upfront investment in systems, advertising and promotional expenses to increase awareness, and additional expenses such as personnel costs, potentially reducing profit margins.」
The risk of lower profit margins and an inability to recover investments due to upfront investment in new services and businesses, advertising and promotional expenses, personnel costs and other expenses has been reiterated. - FY2021WorsenedAnnual report
「Because operating income has remained negative in the Nurikae business, the company has identified indications of impairment and is determining whether an impairment loss must be recognized for the current consolidated fiscal year.」
Regarding the risk of recovering investments in new services and businesses, indications of impairment were specifically identified due to continued operating losses in the Nurikae business. No impairment loss was recognized for the current period because future cash flows exceeded the carrying amount. - FY2020First statedAnnual report
「This may result in upfront investment in systems and additional expenses such as personnel costs, potentially reducing profit margins. In addition, if circumstances arise that differ from the initial forecasts and the development of new services and businesses does not proceed as planned, the company may be unable to recover its investment, including because it may need to recognize an impairment loss.」
The disclosure identifies upfront investment in new businesses, additional expenses, lower profit margins, failure to meet plans, impairment and the potential inability to recover investments as risks.