Failure to monetize investments in new and expanded businesses and inability to execute M&A
First written in FY2017. 6 of 12 entries say "Restated". Latest entry: FY2025.
Recruit Holdings moved to the "Worse" side of this theme in 2020, 1 year before the typical company in this theme (2021).
The whole theme swung hardest in 2020: 28 of 84 companies on the "Worse" side.
10 other companies' latest entry also says "Worsened".
- FY2025WorsenedAnnual report
「In the human resources matching market, our group has a long-term vision of automating corporate clients' recruiting activities through advanced technology, large volumes of data and agentic AI rather than conventional manual work. However, there is no guarantee that our group will achieve this long-term vision, as we may be unable to develop efficient solutions, demand for monetizing such solutions may be insufficient, or regulations and other legal requirements may prevent us from doing so.」
Regarding the risks of investing in new and expanded businesses, the disclosure details the possibility that the development, monetization and regulatory compliance of recruiting automation using agentic AI may not progress as expected. - FY2024-Q1MaterialisedAnnual report
「Cash flow from operating activities for the first quarter was ¥54.5 billion, ¥54.0 billion lower than in the same period of the previous year, due to payments of costs and other expenses related to workforce reductions in the HR Technology business that had been accrued as unpaid expenses at the end of the previous fiscal year.」
Costs associated with workforce reductions in the HR Technology business were actually paid, and operating cash flow declined ¥54.0 billion year on year. - FY2023MaterialisedAnnual report
「This includes ¥17,685 million in costs associated with reducing the workforce by approximately 2,400 employees, equivalent to approximately 15% of segment employees in the HR Technology business.」
In relation to the risk that investments in new and expanded businesses may fail to generate returns, the HR Technology business actually incurred workforce reduction costs for approximately 2,400 employees and restructuring costs of ¥17.8 billion. - FY2020MaterialisedAnnual report
「The strategic change at Treatwell resulted from clarifying investment priorities for the existing businesses, with the highest priority placed on accelerating growth investment to expand SaaS solutions centered on Air Business Tools in this business segment.」
Regarding the risk that investments in new and expanded businesses may fail to generate returns as expected, the strategic change at Treatwell and a ¥14.533 billion goodwill impairment loss actually occurred. - FY2020-Q2WorsenedAnnual report
「If a business newly launched or expanded by our group fails to produce the results initially expected, or if we determine that its growth potential is limited, our withdrawal from or reduction of these businesses may result in expenses or losses and adversely affect the group's operating results or financial condition.」
Regarding the risks of investing in new and expanded businesses, the disclosure details not only the failure to recover investments but also withdrawal and downsizing costs, prolonged losses and declining profitability due to competition with existing businesses. - FY2020-Q1RestatedAnnual report
「During the first quarter, there were no material changes in matters described in the quarterly report concerning the business and financial condition that could materially affect investors’ decisions, nor in the risks described under “Business and Other Risks” in the securities report for the previous fiscal year.」
The disclosure states that there have been no material changes regarding the risks of investments in new and expanded businesses failing to generate returns and of being unable to execute M&A. - FY2019RestatedAnnual report
「The Group is actively expanding its existing businesses and developing new businesses as it works to build a business portfolio that is not concentrated in any particular area, with the aim of achieving sustainable growth while securing competitive advantages, and plans to continue these initiatives.」
The disclosure reiterates the risks that investments in new and expanded businesses may fail to generate returns and that suitable acquisition targets, terms, funding or regulatory approvals may not be secured. - FY2019-Q3RestatedAnnual report
「During the nine months ended the third quarter, there were no material changes in matters described in the quarterly report concerning the business and financial condition that could materially affect investors’ decisions, nor in the risks described under “Business and Other Risks” in the securities report for the previous fiscal year.」
The disclosure states that there have been no material changes regarding the risks of investments in new and expanded businesses failing to generate returns and of being unable to execute M&A. - FY2018-Q3RestatedAnnual report
「During the nine months ended the third quarter, there were no material changes in matters described in the quarterly report concerning the business and financial condition that could materially affect investors’ decisions, nor in the risks described under “Business and Other Risks” in the securities report for the previous fiscal year.」
The disclosure states that there have been no material changes regarding the risks of investments in new and expanded businesses failing to generate returns and of being unable to execute M&A. - FY2018-Q2RestatedAnnual report
「During the six months ended the second quarter, there were no material changes in matters described in the quarterly report concerning the business and financial condition that could materially affect investors’ decisions, nor in the risks described under “Business and Other Risks” in the securities report for the previous fiscal year.」
The disclosure states that there have been no material changes regarding the risks of investments in new and expanded businesses failing to generate returns and of being unable to execute M&A. - FY2018-Q1RestatedAnnual report
「During the first quarter of the current consolidated cumulative period, there were no occurrences of matters that could materially affect investors’ investment decisions among the matters relating to the business and financial position described in this quarterly report, nor were there any material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」
The disclosure states that there have been no material changes regarding the risks of investments in new and expanded businesses failing to generate returns and of being unable to execute M&A. - FY2017First statedAnnual report
「If user or client needs for businesses newly launched or expanded by our group fall below expectations or preferences change, if the costs of entering the target market and securing and developing the necessary personnel increase beyond expectations, if competition in the market intensifies, or if measures to increase our appeal to users or the number of clients with whom we do business are inadequate, among other factors, we may be unable to generate returns commensurate with investments to expand existing businesses or develop new businesses.」
The risks of failing to generate returns commensurate with investments in new and expanded businesses and of being unable to execute M&A or business alliances are disclosed as separate items under business strategy.