Risks of Longer and More Costly R&D Investment
First written in FY2019. 2 of 4 entries say "Materialised", first in FY2020-Q2. Latest entry: FY2022-Q3.
Japan Cash Machine moved to the "Worse" side of this theme in 2019, 2 years before the typical company in this theme (2021).
The whole theme swung hardest in 2019: 6 of 16 companies on the "Worse" side.
2 other companies' latest entry also says "Mitigated".
- FY2022-Q3MitigatedAnnual report
「Containing development costs by concentrating investment on high-priority projects」
In response to the impact of prolonged and more costly development projects on business performance, the Company is concentrating investment on high-priority projects and curbing development costs. - FY2020-Q3MaterialisedAnnual report
「Operating profit was ¥22 million, down 98.8% year on year, due in part to the additional factors of relocation costs for production sites, additional tariffs in the United States, and increased R&D expenses for investment in new products and new businesses.」
Increased R&D expenses for new products and new businesses have emerged as an actual factor depressing operating profit to a 98.8% year-on-year decline. - FY2020-Q2MaterialisedAnnual report
「In addition to the impact of lower revenue, increased R&D investment for the development of new products resulted in operating profit of ¥62 million, down 93.7% year on year.」
Increased R&D investment in new products has emerged as an actual factor depressing operating profit, demonstrating the risk that higher R&D investment may affect business performance. - FY2019First statedAnnual report
「Because research and development of new products involves risks, development costs may become substantial if the development period is extended for certain projects, which may affect business performance.」
While pursuing active R&D investment, the Company explicitly identifies for the first time the extension of development periods and increases in development costs as independent business risks.