Risks associated with developing, marketing and achieving profitability for new products
First written in FY2017. 1 of 3 entries say "Restated". Latest entry: FY2023.
Idemitsu Kosan moved to the "Worse" side of this theme in 2023, 1 year before the typical company in this theme (2024).
The whole theme swung hardest in 2026: 19 of 24 companies on the "Worse" side.
5 other companies' latest entry also says "Worsened".
- FY2023WorsenedAnnual report
「Investment in growth fields such as these requires a certain amount of time before it generates the necessary cash flows, and the Group may therefore lose anticipated revenue opportunities. In addition, if these investments fail to generate returns as planned owing to economic conditions, political developments, delays in market expansion, competition from other companies in development, including the development of new materials, or other factors, the Group may recognize impairment losses on fixed assets.」
Regarding the risk of achieving profitability for new products and new businesses, the company explicitly stated not only the possibility of delays in recovering growth investments but also the possibility of recognizing impairment losses if plans are not achieved. - FY2018RestatedAnnual report
「However, owing to factors including delays in market expansion and competition from other companies in development, including the development of new materials, there is no guarantee that the Group will achieve results in developing or producing these products or cultivating markets for them.」
The company continues to disclose the risks of delayed market expansion, development competition and failure to achieve a profitable scale in Electronic Materials and Agribio. - FY2017First statedAnnual report
「However, owing to factors including delays in market expansion and competition from other companies in development, including the development of new materials, there is no guarantee that the Group will achieve results in developing or producing these products or cultivating markets for them. If the Group is unable to sell these products at a scale sufficient to generate a profit, it may be unable to recover development costs and secure profits.」
The company discloses the risks of delayed market expansion, development competition and failure to recover development costs due to insufficient sales scale in Electronic Materials and Agribio.