Curbing the Occurrence of Unprofitable Projects and Strengthening Quality Management

「In addition to "third-party verification by the responsible head-office department," "early detection of unprofitable projects at the warning-sign stage," and "individual management of projects where warning signs are detected, together with company-wide measures to bring them to an early resolution," the company has strengthened its internal control framework by establishing a dedicated organisation to bring projects that could become large unprofitable projects to an early resolution through focused action.」

「In addition to continuing from the previous fiscal year its efforts to win highly profitable projects and curb unprofitable projects through stronger quality control,」

「The company has strengthened its internal control framework, including by establishing a dedicated organisation to bring projects that could become large unprofitable projects to an early resolution through focused action.」

「In addition to curbing unprofitable projects through productivity improvements and stronger quality control, initiatives undertaken since the previous medium-term management plan, the company improved the profitability of individual projects by scaling back or withdrawing from low-margin projects and focusing on winning high-margin projects. As a result, the gross profit margin also improved. Operating profit was ¥928 million, an increase of ¥442 million, or 91.2%, from the same quarter of the previous year; ordinary profit was ¥982 million, an increase of ¥456 million, or 86.9%; and quarterly net profit attributable to owners of the parent was ¥689 million, an increase of ¥297 million, or 76.1%.」

「In addition to curbing unprofitable projects through productivity improvements and stronger quality control, initiatives undertaken since the previous medium-term management plan, the company improved the profitability of individual projects by scaling back or withdrawing from low-margin projects and focusing on winning relatively high-margin projects, including projects対応 to the invoice system.」

「In addition to the effect of higher revenue, the gross profit margin improved as a result of improvements in the profitability of individual projects, including a decline in low-margin projects. Operating profit was ¥205 million, an increase of ¥189 million from the same quarter of the previous year; ordinary profit was ¥241 million, an increase of ¥200 million, or 493.0%; and quarterly net profit attributable to owners of the parent was ¥170 million, an increase of ¥145 million, or 577.4%.」

「Although lower revenue had a negative impact, the gross profit margin improved primarily due to preventing the occurrence of unprofitable projects and improving productivity. Consequently, operating profit was ¥485 million, up ¥366 million, or 306.6%, year on year; ordinary profit was ¥526 million, up ¥351 million, or 201.9%; and quarterly net profit attributable to owners of the parent was ¥391 million, up ¥274 million, or 234.8%.」

「Although lower revenue had a negative impact, the improvement in the gross profit margin, primarily due to measures to prevent the occurrence of unprofitable projects, outweighed that impact and lifted gross profit. Consequently, operating profit was ¥273 million, up ¥116 million, or 74.4%, year on year; ordinary profit was ¥301 million, up ¥117 million, or 63.3%; and quarterly net profit attributable to owners of the parent was ¥234 million, up ¥109 million, or 88.2%.」

「In terms of earnings, although lower revenue had a negative impact, the improvement in the gross profit margin, primarily due to measures to prevent the occurrence of unprofitable projects, outweighed that impact and lifted gross profit. Consequently, operating profit was ¥16 million, an earnings improvement of ¥73 million year on year; ordinary profit was ¥40 million, an earnings improvement of ¥67 million; and quarterly net profit attributable to owners of the parent was ¥25 million, an earnings improvement of ¥49 million.」

「In addition to strengthening its organisational response through measures such as reinforcing this framework, the company has also strengthened its systems-based response through monitoring with project management tools, and is working company-wide to curb unprofitable projects and improve quality.」

「Accordingly, to strengthen risk management for large-scale systems development projects, the company has established a framework under which the relevant departments consider whether to accept projects at an "estimation review committee," while members of the management committee review the progress of each project and issue instructions at a "systems project council." In addition, it has further developed and strengthened its internal control framework through measures including "third-party verification by the responsible head-office department," "early detection of unprofitable projects at the warning-sign stage," and "individual management of projects where warning signs are detected, together with company-wide measures to bring them to an early resolution."」

「The company promoted the company-wide implementation and establishment of initiatives newly launched in the previous fiscal year, including "third-party verification by the responsible head-office department," "early detection of unprofitable projects at the warning-sign stage," and "individual management of projects where warning signs are detected, together with company-wide measures to bring them to an early resolution."」

「The company developed and strengthened its internal control framework through measures including "third-party verification by the responsible head-office department," "early detection of unprofitable projects at the warning-sign stage," and "individual management of projects where warning signs are detected, together with company-wide measures to bring them to an early resolution."」