Increased Burden and Costs Associated with Implementing the New Core System
First written in FY2025. 5 of 6 entries say "Materialised", first in FY2026-H1. Latest entry: FY2026.
OKUMURA ENGINEERING corp. moved to the "Worse" side of this theme in 2025, 1 year after the typical company in this theme (2024).
The whole theme swung hardest in 2024: 19 of 45 companies on the "Worse" side.
33 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「For the asset related to the implementation of the system, recorded as a long-term prepaid expense, the carrying amount was reduced to its recoverable amount, and the reduction was recognized as an impairment loss under extraordinary losses. As the future cash flows estimated in calculating value in use are zero, the carrying amount was assessed at zero.」
The risk of higher workloads and costs associated with the new core system implementation materialized as a ¥98 million SaaS contract termination loss and a ¥68.012 million impairment loss. Future cash flows from system-related assets were assessed at zero. - FY2026-H1MaterialisedAnnual report
「Although communication expenses increased due to the transition to the new core system, operating income was ¥627.741 million, up 31.7% year on year, owing mainly to improved profitability of valves for LNG (liquefied natural gas) and overall expense controls.」
The company stated that higher communication expenses associated with the transition to the new core system affected actual interim earnings, indicating that the risk of rising implementation costs has materialized. - FY2025First statedAnnual report
「The fiscal year ending March 2026 is the final year of the "transformation period." As preparations proceed across the organization for the full-scale launch of the new core system, higher workloads in individual departments and rising costs are expected to affect earnings.」
The company newly disclosed that higher workloads in individual departments and rising costs associated with preparations for the full-scale launch of the new core system may affect earnings in the fiscal year ending March 2026.