Shortening and Early Termination of MSR Contracts
First written in FY2018. 4 of 13 entries say "Materialised", first in FY2020. Latest entry: 2026-10-15.
MS&Consulting moved to the "Worse" side of this theme in 2019.
0 other companies' latest entry also says "Materialised".
- 2026-10-15MaterialisedRevision of earnings forecasts
「Revenue from the CX business, including the Company's core service, the customer satisfaction mystery-shopping survey “Mystery Shopping Research” (hereinafter, “MSR”), was affected in the first quarter by the completion of a large spot contract carried out in the previous fiscal year. In the second quarter, however, it exceeded the previous year's level, recovering to approximately the previous year's level for the first half as a whole.」
Although the completion of a large spot contract carried out in the previous fiscal year affected the CX business in the first quarter, it exceeded the previous year's level in the second quarter and recovered to approximately the previous year's level for the first half as a whole. - FY2024MaterialisedAnnual report
「The shortfall related to the expiration of contracts with some major MSR customers in the first quarter could not be fully covered. In addition, results fell below expectations in the fourth quarter due to a lower approval rate and delays in the selection of applications for subsidies and grants.」
The decline in MSR revenue from major customers due to contract expirations actually occurred and reduced full-year MSR growth. - FY2023-Q1Orders recover despite continued postponements and cancellationsAnnual report
「In addition, as economic activity normalizes, inquiries regarding the resumption of MSR and consulting have increased. Orders in the first quarter exceeded orders in the previous first quarter, which had been the highest quarter of the previous fiscal year, and remained firm.」
Inquiries regarding the resumption of MSR and consulting increased, and first-quarter orders exceeded orders in the previous first quarter, the year-earlier period. - FY2022-Q3Postponements and cancellations continue, while orders recoverAnnual report
「Meanwhile, although states of emergency and other measures remained in effect until the early part of the third quarter, resulting in postponements or cancellations of MSR and consulting and a continued severe impact on the Group’s performance, revenue continued to recover steadily as described above, and various cost reductions proved effective, resulting in each level of profit exceeding the Company’s internal budget on a cumulative third-quarter basis.」
Although postponements or cancellations of MSR and consulting continued until the early part of the third quarter, revenue recovery and profits exceeding the Company’s internal budget were indicated. - FY2022-Q2Postponements and cancellations continue, while orders recoverAnnual report
「Meanwhile, as most of the first half was spent under states of emergency and other measures, postponements or cancellations of MSR and consulting, particularly among food-service customers, continued unabated, and the situation remained unchanged, with a continued severe impact on the Group’s performance.」
Although postponements or cancellations of MSR and consulting continued, some customers gradually resumed MSR and online training, and orders increased 86.0% year on year. - FY2022-Q1Postponements and cancellations continue, while orders recoverAnnual report
「Meanwhile, as COVID-19 did not subside and most of the first quarter was spent under states of emergency and other measures, postponements or cancellations of MSR and consulting, particularly among food-service customers, continued unabated, and the situation remained unchanged, with a severe impact on the Group’s performance.」
While existing customers continued to postpone or cancel MSR and consulting, some customers resumed MSR and online training, and orders also recovered. - FY2021Postponements and cancellations continued throughout the year, followed by recoveryAnnual report
「Throughout the consolidated fiscal year under review, COVID-19 did not subside. MSR and consulting services were postponed or cancelled throughout the period due to deteriorating performance at existing customers and concerns about the outlook, and the inability to establish a timetable for resumption resulted in extremely difficult business conditions.」
Customer actions related to deferral or cancellation of contracts and usage periods occurred throughout the fiscal year, while an order recovery was indicated in the fourth quarter. - FY2021-Q3WorsenedAnnual report
「During the third quarter consolidated accounting period, in addition to the adverse impact of the second wave, concerns about a third wave began to emerge. As existing customers seeking to postpone or cancel MSR and consulting and training increased more than expected due to deteriorating performance and concerns about the outlook, and the timing made it almost impossible for services to resume during the fiscal year, the Group’s full-year performance was severely affected.」
Requests by existing customers to postpone or cancel MSR, consulting, and training increased more than expected, making it almost impossible for services to resume during the fiscal year. - FY2021-Q2Orders recover after continued postponements and cancellationsAnnual report
「During the consolidated accounting period under review, through July, existing customers continued to seek postponement or cancellation of MSR and consulting due to deteriorating performance associated with temporary business closures, voluntary restraints on gatherings and going out, and other factors, resulting in a continued severe impact on the Group’s performance.」
It is explained that requests to postpone or cancel MSR and other services continued through July, but orders recovered to 80.0% of the year-earlier level in August. - FY2021-Q1MaterialisedAnnual report
「Among existing customers, there was a sharp increase in cases where customers sought to postpone or cancel MSR and consulting due to deteriorating performance associated with temporary business closures, voluntary restraints on gatherings and going out, and other factors. In order acquisition activities, there was also a sharp increase in cases where customers requested that decisions be postponed or the scale of implementation be reduced, resulting in a severe impact on the Group’s performance.」
For MSR contracts and implementation, requests from existing customers to postpone or cancel increased sharply, while postponement of order decisions and reductions in implementation scale also actually occurred. - FY2020MaterialisedAnnual report
「There has also been an increase in cases where customer companies have requested that decisions on contracts be postponed or that the scale of implementation be reduced, and cases where they have sought to cancel MSR, consulting, and training due to deteriorating performance associated with temporary business closures and other factors.」
In connection with the previously stated risks of deferral of the usage period and early cancellation, requests to postpone contract decisions, reduce scale, or cancel actually increased. - FY2019WorsenedAnnual report
「Under the MSR terms of use, contracts may be cancelled early or the usage period may be deferred at the customer company’s discretion upon 3 months’ notice.」
In addition to the previously stated risk of early cancellation, deferral of the usage period was explicitly added, broadening the scope of contract-period risks. - FY2018First statedAnnual report
「Under the MSR terms of use, contracts may be cancelled early at the customer company’s discretion upon 3 months’ notice. The Group is working to encourage customer companies to continue their MSR contracts as far as possible by continuously identifying customer needs through sales activities, improving services and systems to reflect those needs, and providing comprehensive customer support.」
The possibility of early cancellation upon 3 months’ notice is identified as a risk, while the policy is to encourage continued use through identifying customer needs, improving services, and providing customer support.