Risk of Strategic Investments Failing to Deliver Expected Results
First written in FY2022. 1 of 2 entries say "Mitigated", first in FY2025. Latest entry: FY2025.
The whole theme swung hardest in 2020: 28 of 84 companies on the "Worse" side.
22 other companies' latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「Before making an investment, we verify the business plan and conduct due diligence before reaching an investment decision. After the investment, we formulate and implement a PMI (Post Merger Integration) plan and maintain a comprehensive framework for launching the business.」
In addressing the risk that strategic investments will not produce the expected results, the Group disclosed pre-investment verification and due diligence, as well as post-investment PMI. - FY2022First statedAnnual report
「However, unforeseen changes in the external environment, including changes in market conditions and the competitive landscape, may prevent us from achieving the results initially expected. In such cases, the Group's financial condition and operating results may be affected.」
The possibility of failing to achieve the results initially expected after making strategic growth investments, including external partnerships and M&A, was identified as a standalone risk.