Profitability and Additional Investment Risks Associated with Launching New Businesses
First written in FY2019. 3 of 4 entries say "Restated". Latest entry: FY2022.
The whole theme swung hardest in 2017: 6 of 20 companies on the "Worse" side.
18 other companies' latest entry also says "Restated".
- FY2022RestatedAnnual report
「Although pursuing new businesses may affect the Group's performance in the short term through factors such as lower profit margins, the Group will invest in new businesses within a range that maintains a balance with earnings.」
The company continues to pursue an investment policy that balances the risks of new-business profitability, short-term declines in profit margins and additional investment against revenue. - FY2021RestatedAnnual report
「Although pursuing new businesses may affect the Group's performance in the short term through factors such as lower profit margins, the Group will invest in new businesses within a range that maintains a balance with earnings.」
The company continues to invest while balancing the risks of new-business profitability and short-term declines in profit margins against revenue. - FY2020RestatedAnnual report
「Although pursuing new businesses may affect the Group's performance in the short term through factors such as lower profit margins, the Group will invest in new businesses within a range that maintains a balance with earnings.」
The company continues to balance investment against revenue while managing the risks related to the profitability of new businesses, additional investment and the time required to monetize them. - FY2019First statedAnnual report
「The Group intends to launch new businesses in order to expand the scale of its operations and diversify its sources of revenue. However, the profitability of new businesses is subject to considerable uncertainty, and the Group may ultimately fail to generate the earnings initially expected. In addition, new investments, including the hiring of additional personnel, the purchase or development of systems and the strengthening of its sales structure, may be required, and it is expected that it may take some time to generate stable earnings.」
The profitability of new businesses, additional investment and the time required to monetize them have been explicitly identified as separate risks for the first time.