Dependence on Banknote Validator Units and Intensifying Competition
First written in FY2016. 6 of 14 entries say "Advanced", first in FY2022-Q2. Latest entry: FY2026.
The whole theme swung hardest in 2026: 29 of 92 companies on the "Worse" side.
- FY2026AdvancedAnnual report
「The Group's banknote validator units support currencies from more than 140 countries worldwide.」
The stated coverage expanded from more than 135 countries to more than 140, continuing to demonstrate the need for prompt software revisions and support in response to counterfeit banknotes and equipment fraud. - FY2025-H1RestatedAnnual report
「In commercial markets in Japan and overseas, demand for products associated with the broader adoption of contactless, non-face-to-face payment methods remained steady.」
The spread of contactless, non-face-to-face payments continues to provide an opportunity supporting demand for banknote-processing products. - FY2023AdvancedAnnual report
「In commercial markets in Japan and overseas, demand remained strong for the Group's banknote validator units, driven by the continued spread of contactless, non-face-to-face payment methods, which are becoming standard worldwide.」
The shift to cashless and contactless payments has materialized not only as a factor reducing demand for banknote validator units, but also as an opportunity that is increasing demand for commercial products related to contactless, non-face-to-face payments. - FY2023-Q3AdvancedAnnual report
「In commercial markets, overseas operations were affected by delays and other issues in some projects due to the Chinese government's zero-COVID policy, but domestic operations remained generally firm, driven by increased demand for infrastructure development associated with the expansion of contactless, non-face-to-face payments.」
Demand associated with the shift to cashless and contactless payments continues to present a tangible business opportunity through increased domestic demand for infrastructure development. - FY2023-Q2AdvancedAnnual report
「Sales in this segment were ¥917 million, up 12.7% year on year, and segment profit was ¥93 million, up 177.9% year on year, mainly because sales increased for banknote recycling units used in ticket vending machines at restaurants and payment machines at hotel check-in counters for contactless, non-face-to-face payment applications designed to prevent the spread of COVID-19 during the pandemic.」
The expansion of contactless, non-face-to-face payments has materialized as increased sales of products for restaurant ticket vending machines and hotel check-in payment machines. - FY2022-Q3RestatedAnnual report
「In commercial markets in Japan and overseas, demand tended to increase, particularly for products associated with the expansion and promotion of contactless, non-face-to-face cash payments as an infection-prevention measure.」
The expansion of the shift toward contactless, non-face-to-face payments continues to be positioned not only as a factor reducing demand for currency-processing equipment, but also as a factor increasing demand in commercial markets. - FY2022-Q2AdvancedAnnual report
「In addition, demand increased significantly, particularly in commercial markets in Japan and overseas, as infection concerns accelerated and expanded the shift toward contactless, non-face-to-face payment methods.」
It states that the expansion of contactless, non-face-to-face payments has materialized as a significant increase in demand for currency-processing equipment in commercial markets. - FY2022-Q2AdvancedAnnual report
「In addition, demand increased significantly, particularly in commercial markets in Japan and overseas, as infection concerns accelerated and expanded the shift toward contactless, non-face-to-face payment methods.」
Regarding demand for currency-processing equipment accompanying the shift to cashless and contactless payments, it demonstrates not only the conventional risk of declining demand, but also the actual significant increase in demand in commercial markets. - FY2022-Q1ReframedAnnual report
「Demand from the distribution industry increased against the backdrop of growing use of contactless, non-face-to-face payments due to infection concerns.」
Regarding the shift to cashless payments, it describes not only the risk of declining demand for currency-processing equipment, but also the opportunity for increased demand from the distribution industry driven by the spread of contactless, non-face-to-face payments. - FY2021-Q3WorsenedAnnual report
「Demand for our products is expected to decline as cashless adoption becomes more widespread, a trend expected to accelerate in the wake of the COVID-19 pandemic.」
The company explicitly states that the risk associated with cashless adoption is expected to result in further penetration going forward and declining demand for its products in the wake of the COVID-19 pandemic. - FY2020-Q3WorsenedAnnual report
「In Japan's commercial market, demand remained firm, supported partly by capital investment ahead of the Tokyo Olympics. In China and Southeast Asia, however, signs of a slowdown in demand for currency-handling equipment are becoming apparent, particularly in the retail market, as cashless adoption takes hold.」
The previously general risk of cashless adoption is beginning to materialize as signs of slowing demand for currency-handling equipment in the retail markets of China and Southeast Asia. - FY2018WorsenedAnnual report
「Cashless adoption, or the shift to electronic transactions, is advancing rapidly worldwide. If this causes demand for our products to fluctuate substantially in the future, our Group's performance may be affected.」
In addition to the risk of dependence on banknote validator units, the risk of substantial future fluctuations in demand due to the global shift toward cashless transactions has been identified. - FY2017RestatedAnnual report
「Banknote validator units are a core product that accounts for a large proportion of our Group's total sales and represents a high proportion of products sold to the gaming market.」
We continue to disclose the risks associated with dependence on sales of banknote validator units and competition, including price competition, in the gaming market. - FY2016First statedAnnual report
「Banknote validator units are a core product that accounts for a large proportion of our Group's total sales and represents a high proportion of products sold to the gaming market. ... Our Group's performance may be affected by intensifying competition in technological development and pricing, among other factors.」
Dependence on core products, along with fluctuations in market share and technological and price competition, are identified as risks.