Dependence on core operations for the TEPCO Group and fluctuations in activity levels
First written in FY2021-Q3. 5 of 17 entries say "Restated". Latest entry: FY2026.
Inbound Tech moved to the "Worse" side of this theme in 2026, 4 years after the typical company in this theme (2022).
The whole theme swung hardest in 2023: 35 of 119 companies on the "Worse" side.
6 other companies' latest entry also says "Softened".
- FY2026SoftenedAnnual report
「Sales to the group were ¥509.560 million in the fiscal year ended March 2024, representing 15.4% of group sales, ¥463.589 million in the fiscal year ended March 2025, representing 18.2%, and 354,086 in the fiscal year ending March 2026, representing 16.6%.」
The proportion of sales to the TEPCO Group fell from 18.2% in the previous fiscal year to 16.6%. However, the group continues to be identified as the largest major customer. - FY2026-H1RestatedAnnual report
「In the sales outsourcing business, our core operation of conducting sales activities through visits to customers of the TEPCO Group progressed broadly in line with plan.」
Sales activities through visits for the TEPCO Group remain a core operation and progressed broadly in line with plan. - FY2025-H1RestatedAnnual report
「Our core operation of conducting sales activities through visits to customers of the TEPCO Group progressed broadly in line with plan,」
Sales activities through visits for the TEPCO Group have continued to progress broadly in line with plan as a core operation. - FY2024SoftenedAnnual report
「Since the fiscal year ended March 2019, we have provided services to the TEPCO Group primarily through the sales outsourcing business, with sales to the group of ¥397.366 million in the fiscal year ended March 2022, representing 14.3% of group sales, ¥653.567 million in the fiscal year ended March 2023, representing 19.9%, and ¥509.560 million in the fiscal year ended March 2024, representing 15.36%.」
The proportion of sales to the TEPCO Group fell from 19.9% in the previous fiscal year to 15.36%. However, the concentration among specific customers and the risk of fluctuations in customers and products continued to be disclosed. - FY2024-Q3RestatedAnnual report
「In terms of profit, increased outsourcing expenses for contract-switching solicitation services for a major mobile carrier, together with a decline in profit associated with the contraction of outsourced work for the TEPCO Group, which drives segment profit, resulted in profit falling below the same period of the previous year.」
It has continued to be explained that the contraction of outsourced operations for the TEPCO Group was linked to the decline in segment profit, and that the structure of dependence on a major customer continues to affect performance. - FY2024-Q2WorsenedAnnual report
「In terms of profit, increased outsourcing expenses for contract-switching solicitation services for a major mobile carrier, together with a decline in profit associated with the contraction of outsourced work for the TEPCO Group, which drives segment profit, resulted in profit falling below the same period of the previous year.」
The contraction of outsourced operations for the TEPCO Group, which had driven segment profit, was recorded as having contributed to the decline in profit. The risk of dependence on core operations for a specific customer became apparent. - FY2024-Q1RestatedAnnual report
「In the sales outsourcing business, our core operation of conducting sales activities through visits to customers of the TEPCO Group progressed broadly in line with plan, but personnel costs and other expenses related to launching new sales projects undertaken from the beginning of the fiscal year were incurred ahead of the related revenue.」
The core operation for the TEPCO Group progressed broadly in line with plan. No significant change in the structure of dependence on core operations, including those for specific customers, was disclosed. - FY2023WorsenedAnnual report
「We provide services to the TEPCO Group primarily through the sales outsourcing business, with sales to the group of ¥422.700 million in the fiscal year ended March 2019, representing 14.3% of group sales, ¥1,553.559 million in the fiscal year ended March 2020, representing 52.1%, ¥808.933 million in the fiscal year ended March 2021, representing 40.4%, ¥397.366 million in the fiscal year ended March 2022, representing 14.3%, and ¥653.567 million in the fiscal year ended March 2023, representing 19.9%.」
The proportion of sales to the TEPCO Group rose from 14.3% in the previous fiscal year to 19.9%, increasing dependence on a specific customer again. - FY2023-Q3MaterialisedAnnual report
「In the sales outsourcing business, the development and activities of sales personnel fell short of plan, and the termination of existing new electricity-provider acquisition projects for client-related reasons caused a deviation from the initial plan. However, the company worked to secure profit through cost controls, including reductions in outsourcing expenses.」
An existing project to acquire new electricity customers related to a specific client ended at the client's request, resulting in an actual variance from the initial plan. - FY2023-Q2RestatedAnnual report
「Our former core operation of encouraging customers to switch electricity suppliers for the TEPCO Group through visits changed this fiscal year to a sales model centered on cross-selling to existing customers. As a result, operations progressed broadly in line with plan throughout the quarter without being affected by the sharp deterioration in the sales environment caused by the recent surge in electricity trading prices.」
It has continued to be explained that the change to a sales model centered on cross-selling resulted in performance broadly in line with plan throughout the quarter, even amid soaring electricity trading prices. - FY2023-Q1MitigatedAnnual report
「Our former core operation of encouraging customers to switch electricity suppliers for the TEPCO Group through visits changed this fiscal year to a sales model centered on cross-selling to existing customers. As a result, activities continued throughout the quarter without being affected by the sharp deterioration in the sales environment caused by the recent surge in electricity trading prices.」
It is stated that the change in sales model allowed activities to continue throughout the quarter without being affected by a sharp deterioration in the sales environment amid soaring electricity trading prices. There is no statement that the concentration risk among specific customers itself has been eliminated. - FY2022ReframedAnnual report
「Our group tends to concentrate transactions with several specific customers, mainly in the sales outsourcing business, due to factors including the allocation of management resources. In addition, the products and services handled for those customers must be changed as appropriate to reflect market needs and prevailing trends, so the customers and offerings vary significantly from year to year. Since the fiscal year ended March 2019, we have provided services primarily in the sales outsourcing business to the TEPCO Group, with sales to the group of ¥422.700 million in the fiscal year ended March 2019, representing 14.3% of group sales, ¥1,553.559 million in the fiscal year ended March 2020, representing 52.1%, ¥808.933 million in the fiscal year ended March 2021, representing 40.4%, and ¥397.366 million in the fiscal year ended March 2022, representing 14.3%.」
While dependence on the TEPCO Group fell to 14.3% of sales, the risk assessment expanded to include the broader risk of concentration among specific customers, including NTT Marketing Act at 14.4%. - FY2022-Q3Activity levels remained below previous levels even after the lifting of activity restrictionsAnnual report
「Although the declaration of a state of emergency issued for Tokyo in July 2021 was lifted in September, removing restrictions on sales activities during the third-quarter consolidated cumulative period, the operation remained below its previous activity level due to the need to resecure and retrain sales personnel.」
The lifting of the declaration of a state of emergency removed direct restrictions on sales activities, but the activity level of the core operation had not returned to its previous level because of the need to resecure and retrain sales personnel. - FY2022-Q2WorsenedAnnual report
「Our core operation of encouraging customers of the TEPCO Group to switch electricity suppliers through visits was subject to activity restrictions for almost the entire second-quarter cumulative period after Tokyo issued its fourth declaration of a state of emergency in July 2021, and the operation remained below its previous activity level.」
The fourth declaration of a state of emergency resulted in activity restrictions for almost the entire quarterly cumulative period, and the core operation continued not to recover to its previous activity level. - FY2022-Q1WorsenedAnnual report
「Our core operation of encouraging customers to switch electricity suppliers for the TEPCO Group through visits was restricted when Tokyo issued its third declaration of a state of emergency in April 2021, and the operation did not recover to its previous activity level.」
Activity restrictions resulting from the third declaration of a state of emergency occurred, and the core operation remained below its previous activity level. - FY2021SoftenedAnnual report
「Since the fiscal year ended March 2019, we have provided services primarily in the sales outsourcing business to the TEPCO Group, with sales to the group of ¥422.700 million in the fiscal year ended March 2019, representing 14.3% of our sales, ¥1,553.559 million in the fiscal year ended March 2020, representing 52.1%, and ¥808.933 million in the fiscal year ended March 2021, representing 40.4%.」
The proportion of sales to the TEPCO Group fell from 52.1% in the previous fiscal year to 40.4%, but dependence on a major customer was still identified as a key risk. - FY2021-Q3First statedAnnual report
「The suspension of our core operation of encouraging customers to switch electricity suppliers for the TEPCO Group, caused by the declaration of a state of emergency, forced the operation to close from April through June 2020. Although operations resumed in July, customer acquisitions remained at approximately 50% of the level initially expected under normal operating conditions. Acquisition volumes were on a gradual upward trend in August and September, but remained unstable.」
The suspension of core operations for a specific customer and the resulting decline and instability in acquisition volumes actually occurred.