Risk of declining profitability in system development projects
First written in FY2024. 2 of 5 entries say "Dropped", first in FY2025-H1. Latest entry: FY2026.
5 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「Because each contract is highly individual, profitability may not be secured due to increased work hours resulting from increasingly sophisticated customer requirements, greater project complexity and changes in the business environment before completion, even for projects expected to be profitable when orders are received.」
The company has again disclosed the risks of increased work hours and declining profitability in system development projects, together with regular monitoring of projects requiring close attention. - FY2026-H1DroppedAnnual report
「Not applicable.」
The section on business and other risks in this interim report does not separately mention the risk of declining profitability in system development projects. This does not establish that the risk itself has disappeared. - FY2025RestatedAnnual report
「Because each contract is highly individual, profitability may not be secured due to increased work hours resulting from increasingly sophisticated customer requirements, greater project complexity and changes in the business environment before completion, even for projects expected to be profitable when orders are received.」
The company has again disclosed the risks of increased work hours and declining profitability in system development projects, together with regular monitoring of projects requiring close attention. - FY2025-H1DroppedAnnual report
「Not applicable.」
The section on business and other risks in this interim report does not separately mention the risk of declining profitability in system development projects. This does not establish that the risk itself has disappeared. - FY2024First statedAnnual report
「Because each contract is highly individual, profitability may not be secured due to increased work hours resulting from increasingly sophisticated customer requirements, greater project complexity and changes in the business environment before completion, even for projects expected to be profitable when orders are received.」
For system development projects, the company has for the first time disclosed increased work hours and declining profitability due to increasingly sophisticated customer requirements, greater project complexity and environmental changes as a separate risk. As a response, it describes regular monitoring of projects requiring close attention.