Declining Client Company Appetite for Education and Training Investment
First written in FY2018. 6 of 17 entries say "Materialised", first in FY2020. Latest entry: FY2025.
MS&Consulting moved to the "Worse" side of this theme in 2020.
0 other companies' latest entry also says "Materialised".
- FY2025MaterialisedAnnual report
「The overall figure declined 16.1% due to the impact of a lower approval rate and delays in screening in the subsidy and grant support business.」
Lower approval rates and delays in screening for subsidies and grants appeared in the results as a 16.1% decline in consulting revenue and a 56.1% decline in orders. - FY2025-Q1MaterialisedAnnual report
「Consulting revenue related to subsidies declined because the first round of selections for this fiscal year’s business restructuring subsidy was expected to take place from October onward.」
As the timing of subsidy selections was expected to be October or later, the risk related to customer companies’ investment and use of subsidies appeared in the results as a decline in subsidy-related consulting revenue. - FY2024MaterialisedAnnual report
「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 risk related to customer companies’ investment appetite through subsidies and grants materialized as a shortfall against earnings forecasts due to a lower approval rate and delays in the approval period. - FY2023-Q3MaterialisedAnnual report
「Amid continued difficult sales conditions, including the spread of infection and stronger demand for cost control due to higher raw material prices, consulting associated with implementation decreased in the third quarter as SaaS orders using IT adoption subsidies stagnated from the second quarter onward.」
Against a backdrop of the spread of infection and higher raw material prices, stronger customer demand for cost control emerged as a decline in SaaS orders and implementation consulting. - FY2023-Q2Sales activity stagnates due to the seventh wave, while demand for cost control becomes more pronouncedAnnual report
「Orders increased 2.6% compared with the previous first half, but declined 8.9% year on year in the second quarter alone. Adverse effects of the spread of COVID-19 continued, including stagnation in sales activities due to the seventh wave and stronger demand for cost control due to higher raw material prices.」
While orders for the first half as a whole increased 2.6%, they declined 8.9% year on year in the second quarter alone, indicating stagnant sales activities due to the seventh wave and customer demand for cost control amid higher raw material prices. - FY2023-Q1Impact of postponements and cancellations continues, with signs of recoveryAnnual report
「Although the impact of COVID-19 on business performance was declining, conditions remained severe. Consulting, including SaaS implementation and online training, grew sharply and continued to drive performance.」
While the impact of customers restraining investment due to the pandemic was still considered severe, growth in consulting, including SaaS implementation and online training, supported the recovery. - FY2022Postponements and cancellations continue, followed by full-year recoveryAnnual report
「However, the Group continued to operate under prolonged states of emergency and other measures during the fiscal year. Although their impact was diminishing, MSR and consulting services were postponed or cancelled, and the situation remained unchanged, with a continued severe impact on the Group’s performance.」
Although the impact of lower customer companies’ investment appetite due to postponements or cancellations of MSR and consulting continued throughout the fiscal year, revenue increased 47.8% year on year and performance recovered. - FY2022-Q3Postponements and cancellations continue, while revenue recoversAnnual 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.」
While the severe impact of postponements or cancellations of MSR and consulting continued until the early part of the third quarter, revenue continued to recover, and each level of profit exceeded the Company’s internal budget. - FY2022-Q2Impact continues; recovery at some customersAnnual 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.」
The impact of postponements or cancellations of MSR and consulting, primarily by food-service customers, continued. Meanwhile, the impact of states of emergency and other measures diminished among customers outside the food-service sector, and some customers resumed services. - FY2022-Q1Impact continues, with signs of recoveryAnnual 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.」
Although the impact of weaker customer investment appetite due to postponements and cancellations of MSR and consulting continues, the disclosure also indicates that some customers resumed services and that orders recovered. - FY2021Full-year impact confirmed; recovery in the fourth quarterAnnual 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.」
While postponements or cancellations of MSR and consulting due to deteriorating performance at customer companies and other factors continued throughout the year, revenue improvement and an order recovery were 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.」
In addition to the impact of the second wave of COVID-19, concerns about a third wave emerged, and the number of existing customers seeking to postpone or cancel MSR and consulting, training increased more than expected, making it almost impossible for services to resume during the fiscal year. - FY2021-Q2Postponements and cancellations continued through July, followed by signs of recoveryAnnual 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.」
While requests from customer companies to postpone or cancel MSR and consulting due to deteriorating performance and voluntary restraints continued through July, orders recovered to 80.0% of the year-earlier level in August after the state of emergency was lifted. - 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.」
The decline in customer companies’ willingness to invest in education, training, and research actually occurred in the form of a sharp increase in requests from existing customers to postpone or cancel services and requests to postpone order decisions or reduce implementation scale. - 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.」
It is stated that requests to postpone contract decisions, reduce implementation scale, or cancel contracts actually increased as customer companies’ investment appetite declined and their performance deteriorated. - FY2019RestatedAnnual report
「If economic changes and an economic downturn reduce investment appetite in the market, this could affect the Group’s operating results and financial condition through sluggish acquisition of new customers, lower orders from existing customers, and an increase in early cancellations.」
The decline in new orders and existing orders, and the risk of early cancellations, due to lower customer companies’ willingness to invest in education and training, remain ongoing. - FY2018First statedAnnual report
「Given the nature of its business, the Group is affected to a certain extent by customer companies’ investment trends in education and training. If economic changes and an economic downturn reduce investment appetite in the market, this could affect the Group’s operating results and financial condition through sluggish acquisition of new customers, lower orders from existing customers, and an increase in early cancellations.」
A decline in customer companies’ investment in education and training due to an economic downturn and other factors may affect new orders, existing orders, and early cancellations.