Impact on performance from changes in NEC Corporation’s business policies
First written in FY2016. 6 of 10 entries say "Restated". Latest entry: FY2023.
The whole theme swung hardest in 2022: 3 of 18 companies on the "Worse" side.
2 other companies' latest entry also says "Dropped".
- FY2023DroppedAnnual report
「The previous annual securities report described our relationship with NEC Corporation. However, following the completion of the transition to independent IT systems and collaboration on defense-related products based on our proprietary technical capabilities in Information Systems products, we recognize that the risk that ceasing to be a consolidated subsidiary of NEC Corporation would affect our operating results has declined to a certain extent. Accordingly, this matter was removed from the annual securities report for the current consolidated fiscal year and incorporated into this section.」
The company stopped presenting changes in NEC's business policy as a separate risk item and incorporated them into risks related to customer demand and other factors. It explained that the risk of the impact from ceasing to be a consolidated subsidiary of NEC had declined to a certain extent following completion of the transition to independent IT systems and collaboration based on proprietary technology. - FY2022RestatedAnnual report
「In connection with ceasing to be a consolidated subsidiary of NEC Corporation, we entered into a Memorandum of Understanding Concerning the Continuation of Transactions, aimed at maintaining the partnership between our company and the NEC Group, and a Memorandum of Understanding Concerning Ongoing Collaboration, aimed at ongoing collaboration between the two parties regarding the handling of IT systems, personnel exchanges and other matters.」
The company maintained the memoranda of understanding with NEC concerning the continuation of transactions and ongoing collaboration, reaffirming the relationship of continuing the partnership with NEC after the change in parent company. - FY2021RestatedAnnual report
「The initial term of the Memorandum of Understanding Concerning the Continuation of Transactions was, in principle, from the date of execution through 31 July 2025, after which it is automatically renewed every 3 years. In principle, the term of the Memorandum of Understanding Concerning Ongoing Collaboration is from the date of execution through 31 July 2025.」
The memoranda of understanding with NEC concerning the continuation of transactions and ongoing collaboration were maintained, with the term of both memoranda stated as ending on 31 July 2025. The potential impact of changes in NEC's business strategy continued to be indicated. - FY2020RestatedAnnual report
「Our corporate group collaborates on defense-related products by drawing on its proprietary technical capabilities in Information Systems products, but changes in NEC Corporation's business strategy could affect the operating results and financial condition of our corporate group.」
NEC remained positioned as a principal customer and collaboration partner after ceasing to be the parent company, and the potential impact of changes in its business strategy continued to be noted. - FY2020-Q3MitigatedAnnual report
「Because NEC Corporation tendered all of its holdings of our common shares in the tender offer, we are scheduled to cease to be a consolidated subsidiary of NEC as of 31 January 2020, the scheduled settlement date. However, we intend to maintain our partnership with the NEC Group after the tender offer. Because we entered into a memorandum of understanding with NEC dated 31 July 2019 concerning the continuation of transactions and a memorandum of understanding concerning ongoing collaboration, we do not expect the fact that we will cease to be a consolidated subsidiary of NEC as a result of the tender offer to have an immediate material adverse effect on the operating results or financial condition of our corporate group.」
The plan to cease to be a consolidated subsidiary of NEC became concrete when NEC tendered its common shares in the tender offer. At the same time, the company indicated that it would maintain the partnership based on the memoranda of understanding concerning the continuation of transactions and ongoing collaboration, and did not expect an immediate material adverse effect from changes in business policy. - FY2020-Q2RestatedAnnual report
「However, we intend to maintain our partnership with the NEC Group after the tender offer. Because we entered into a memorandum of understanding with NEC dated 31 July 2019 concerning the continuation of transactions and a memorandum of understanding concerning ongoing collaboration, we do not expect the fact that we will cease to be a consolidated subsidiary of NEC as a result of the tender offer to have an immediate material adverse effect on the operating results or financial condition of our corporate group.」
The company continued to explain that it would maintain its partnership with the NEC Group after completion of the tender offer and, based on the memoranda of understanding concerning the continuation of transactions and ongoing collaboration, did not expect an immediate material adverse effect. - FY2020-Q1MitigatedAnnual report
「However, we intend to maintain our partnership with the NEC Group after the tender offer. Because we entered into a memorandum of understanding with NEC dated 31 July 2019 concerning the continuation of transactions and a memorandum of understanding concerning ongoing collaboration, we do not expect the fact that we will cease to be a consolidated subsidiary of NEC as a result of the tender offer to have an immediate material adverse effect on the operating results or financial condition of our corporate group.」
Although the possibility of ceasing to be a consolidated subsidiary of NEC was indicated, the company entered into memoranda of understanding concerning the continuation of transactions and ongoing collaboration and stated its intention to maintain the partnership. Measures to address the risk of changes in NEC's business policy have become more concrete. - FY2018RestatedAnnual report
「NEC Corporation is our parent company and also our principal customer. As a member of the NEC Group, our corporate group collaborates on defense-related products in the Information Systems business, drawing on its proprietary technical capabilities. In products for private-sector customers, however, we pursue our own business development.」
The company continued to explain that, while NEC Corporation is its parent company and principal customer, it collaborates with NEC in Information Systems and pursues its own business development in products for private-sector customers. - FY2017RestatedAnnual report
「NEC Corporation is our parent company and also our principal customer.」
The company continued to explain that NEC Corporation is its parent company and principal customer, and that changes in its business strategy could affect operating results. - FY2016First statedAnnual report
「NEC Corporation is our parent company and also our principal customer. While our corporate group is working to pursue its own business development more actively, changes in NEC Corporation's business strategy could affect our operating results.」
The company identifies changes in the policy of NEC Corporation, its parent company and principal customer, as a risk.