Customer companies' overhead reductions due to deteriorating economic conditions
First written in FY2016. 3 of 6 entries say "Restated". Latest entry: FY2022.
IR Japan Holdings moved to the "Worse" side of this theme in 2019.
2 other companies' latest entry also says "Restated".
- FY2022RestatedAnnual report
「If economic conditions and the business environment in Japan deteriorate, expenses in the indirect departments of the listed companies that are our direct clients may be cut. This could make them more cautious about adopting the services provided by our group or increase pressure to reduce service prices, potentially affecting our group's earnings structure.」
The risk of reduced demand for services and downward pressure on prices as customers cut indirect costs has been reaffirmed. - FY2020WorsenedAnnual report
「During the consolidated fiscal year ended 31 March 2020 (1 April 2019 to 31 March 2020), the global economy, which had achieved stable growth in recent years, was forced to slow sharply as a result of the explosive spread of the novel coronavirus that began in the fourth quarter. Global capital markets became increasingly unstable as market participants reacted to unprecedented economic developments, and significant volatility has continued in Japan's capital markets.」
It was explained that the global economy slowed sharply as the novel coronavirus spread, resulting in instability and significant volatility in the capital markets. - FY2020-Q1WorsenedAnnual report
「As geopolitical and economic uncertainties around the world increased, concerns about near-term earnings growth spread broadly among Japanese companies, although some companies appeared to be reaching a bottom. Against this backdrop, the stock market became increasingly unstable.」
Global political and economic uncertainties, concerns about corporate earnings growth and increasing stock-market instability are described, providing a clearer indication of deteriorating economic and market conditions. - FY2019RestatedAnnual report
「Accordingly, if economic conditions and the business environment in Japan deteriorate, expenses in the indirect departments of the listed companies that are our direct clients may be cut. This could make them more cautious about adopting the services provided by our group or increase pressure to reduce service prices, potentially affecting our group's earnings structure.」
The risk of reduced demand for services and downward pressure on prices as customers cut indirect costs has been reaffirmed. - FY2017RestatedAnnual report
「If economic conditions and the business environment deteriorate, expenses in the indirect departments of the listed companies that are our direct clients may be cut. This could make them more cautious about adopting the services provided by our group or increase pressure to reduce service prices, potentially affecting our group's earnings structure.」
The risk of reduced demand for services and downward pressure on prices as customers cut indirect costs has been reaffirmed. - FY2016First statedAnnual report
「If economic conditions or the business environment deteriorate, client companies that are our direct customers may reduce expenses in their administrative departments, making them more cautious about adopting the services provided by our group or increasing pressure to reduce service prices, which could adversely affect our group's earnings.」
The fact that indirect departments such as IR, corporate planning and general affairs are direct clients is identified as a risk factor.