Economic Downturn Curbs DX Investment
First written in FY2022. 5 of 10 entries say "Restated". Latest entry: FY2026-H1.
The whole theme swung hardest in 2020: 16 of 36 companies on the "Worse" side.
51 other companies' latest entry also says "Restated".
- FY2026-H1RestatedAnnual report
「Meanwhile, the economic outlook remains uncertain because of developments in U.S. trade and tariff policies, rising geopolitical risks, particularly in the Middle East, inflation and foreign-exchange fluctuations.」
The view that the economic outlook remains uncertain because of trade and tariff policies, geopolitical risks, inflation and foreign-exchange movements was reiterated. - FY2025ReframedAnnual report
「Although the market for AI-related fields is expected to expand, technology trends and customer needs are changing rapidly, and if expected demand does not materialize as anticipated by our Group, this could affect our business development.」
In addition to the traditional risk of reduced DX investment due to economic deterioration, the Company expressly identified the risk that rapidly changing technology trends and customer needs in AI-related fields may prevent expected demand from materializing as anticipated. - FY2025-H1RestatedAnnual report
「During the current interim consolidated accounting period, there were no newly arising business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」
It was expressly stated that there were no material changes to business or other risks during the interim consolidated accounting period. - FY2024-H1RestatedAnnual report
「During the current interim consolidated accounting period, there were no newly arising business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」
It was expressly stated that there were no material changes to business or other risks during the interim consolidated accounting period. - FY2024-Q1RestatedAnnual report
「During the first quarter of the current consolidated cumulative period, there were no newly arising business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」
It was expressly stated that there were no material changes to business or other risks during the quarter. - FY2023RestatedAnnual report
「If the business environment deteriorates because an economic downturn or change in economic conditions exceeding our Group’s expectations suppresses corporate investment in digital transformation, or if the continuation of existing clients or acquisition of new clients does not proceed as expected, this could materially adversely affect our Group’s operating results and financial condition.」
The risk of reduced DX investment and failure to retain existing clients or acquire new clients because of economic deterioration or changes in economic conditions was reiterated. The annual decline in performance was disclosed, but no direct causal link to economic factors was stated. - FY2023-Q3MaterialisedAnnual report
「Revenue declined year on year because some existing-client projects were downsized. Meanwhile, new-project wins progressed smoothly in priority areas.」
Existing-client projects in AMER were downsized, resulting in a 33.0% year-on-year decline in revenue and an operating loss of ¥268,114 thousand. The disclosure did not expressly attribute the downsizing to economic factors, but described a contraction in existing demand. - FY2023-Q2MaterialisedAnnual report
「Amid concerns about a recession in the U.S. market, some existing clients reduced their DX investment, resulting in unexpected downsizing of project teams. Although new projects continued to be won, revenue declined year on year.」
Against a backdrop of concerns about a recession in Europe and the United States, existing clients in AMER reduced DX investment and project teams were downsized. AMER revenue declined 24.9% year on year and the operating loss was ¥95,985 thousand. - FY2023-Q1MaterialisedAnnual report
「Revenue and operating profit both declined, partly because of the impact of the economic downturn in the U.S. market.」
AMER was affected by the economic downturn in the U.S. market. Revenue declined 11.4% year on year and operating profit turned from a prior-year profit to a ¥47,845 thousand loss, demonstrating the impact of economic deterioration on regional performance. - FY2022First statedAnnual report
「If the business environment deteriorates because an economic downturn or change in economic conditions exceeding our Group’s expectations suppresses corporate investment in digital transformation, among other effects」
The risk that economic deterioration or changes in economic conditions suppress corporate DX investment, causing existing-client retention and new-client acquisition to fall short of expectations.