Earnings Dependence on Subsidies and Program Changes
First written in FY2020. 8 of 16 entries say "Materialised", first in FY2023-Q1. Latest entry: 2026-08-14.
Smile Holdings moved to the "Worse" side of this theme in 2022.
0 other companies' latest entry also says "Mitigated".
- 2026-08-14MitigatedResults presentationSuggests it is closing out
「“Complete” independence from reliance on opening subsidies.」
The company used the stronger expression “complete independence,” rather than merely reducing reliance on opening subsidies, suggesting that the related risk has been brought to an end. The canonical thread itself remains unchanged. - FY2026MitigatedAnnual report
「Viewing this business environment as an opportunity, the Group will focus on developing private-sector education services that do not rely on subsidies, while developing new businesses targeting families as a whole, including postpartum care services and architectural design. By leveraging the expertise, brand strength and name recognition of its existing licensed childcare and preschool-integrated childcare businesses, the Group will work to diversify its earnings base through the development of global schools, overseas study-abroad support and alliances with other companies.」
To address the risk of dependence on subsidies, the Group indicates that it intends to leverage private-sector education, postpartum care, architectural design, global schools, overseas study-abroad support and alliances, as well as new businesses of WITH Holdings. - FY2026-H1MitigatedAnnual report
「Subsidy income 221 847」
Subsidy income in the interim consolidated income statement was ¥847 thousand. Together with its policy of diversifying its business areas into private-sector education, international education, postpartum care and family support, the Group continues to address its dependence on subsidies. - FY2025MitigatedAnnual report
「While focusing on developing private-sector education services that do not rely on subsidies, the Group is also developing new businesses targeting parents, including postpartum care services,」
While continuing to recognize the risk of dependence on subsidies and institutional changes, the Group is putting measures into practice by expanding into private-sector education, international education and postpartum care, among other areas. Subsidy income was ¥26 million. - FY2024MaterialisedAnnual report
「Ordinary profit was ¥311 million, down ¥319 million from the previous consolidated fiscal year, or 17.7% year on year, as subsidy income recorded in non-operating income declined with the decrease in the number of licensed childcare centers opened, from 3 in the previous consolidated fiscal year to 1 in the current consolidated fiscal year,」
The decline in subsidy income accompanying the decrease in licensed childcare center openings was reflected in full-year results as ordinary profit of ¥311 million, down 17.7% year on year. - FY2024-Q3MaterialisedAnnual report
「Ordinary profit was ¥151 million, down ¥319 million from the same quarter of the previous year, or 50.0%, as subsidy income recorded in non-operating income declined with the decrease in the number of licensed childcare centers opened, from 3 in the same period of the previous year to 1 in the first nine months of the current consolidated fiscal year,」
The decline in subsidy income accompanying the decrease in licensed childcare center openings continues to be reflected in results as a 50.0% year-on-year decline in ordinary profit. - FY2024-Q2MaterialisedAnnual report
「Ordinary profit was ¥56 million, down ¥319 million from the same quarter of the previous year, or 77.2%, as subsidy income recorded in non-operating income declined with the decrease in the number of licensed childcare centers opened, from 3 in the same period of the previous year to 1 in the first six months of the current consolidated fiscal year,」
The decline in subsidy income accompanying the decrease in licensed childcare center openings was reflected in results as a ¥319 million year-on-year decline and ordinary profit of ¥56 million. - FY2024-Q1MaterialisedAnnual report
「Subsidy income recorded in non-operating income declined by ¥273 million from the same quarter of the previous year with the decrease in the number of licensed childcare centers opened, from 2 in the same quarter of the previous year to 1 in the first quarter, resulting in an ordinary loss of ¥20 million, compared with ordinary profit of ¥147 million in the same quarter of the previous year,」
The decline in subsidy income accompanying the decrease in licensed childcare center openings was reflected in first-quarter results as a shift to an ordinary loss. - FY2023MaterialisedAnnual report
「Ordinary profit was ¥378 million, down ¥999 million from the previous consolidated fiscal year, or 67.0% year on year, as subsidy income recorded in non-operating income declined with the decrease in the number of licensed childcare centers opened, from 9 in the previous consolidated fiscal year to 3 in the current consolidated fiscal year. Net income attributable to owners of the parent was ¥188 million, down 72.6% year on year.」
The decline in subsidy income accompanying the decrease in licensed childcare center openings was reflected in full-year results, confirming earnings volatility arising from dependence on subsidies. - FY2023-Q3MaterialisedAnnual report
「Ordinary profit was ¥302 million, down ¥999 million from the same period of the previous year, or 74.8%, as subsidy income recorded in non-operating income declined with the decrease in the number of licensed childcare centers opened, from 9 in the same period of the previous year to 3 in the first nine months of the current consolidated fiscal year. Net income attributable to owners of the parent was ¥182 million, down 76.6% year on year.」
The decline in subsidy income accompanying the decrease in licensed childcare center openings continues to be reflected in actual results as declines in ordinary profit and quarterly net income. - FY2023-Q2MaterialisedAnnual report
「Ordinary profit was ¥248 million, down ¥999 million from the same quarter of the previous year, or 80.2%, as subsidy income recorded in non-operating income declined with the decrease in the number of licensed childcare centers opened, from 9 in the same period of the previous year to 3 in the first six months of the current consolidated fiscal year. Net income attributable to owners of the parent was ¥152 million, down 81.2% year on year.」
The decline in subsidy income accompanying the decrease in licensed childcare center openings was reflected in actual results as declines in ordinary profit and quarterly net income. - FY2023-Q1MaterialisedAnnual report
「Ordinary profit was ¥147 million, down ¥1,045 million from the same quarter of the previous year, or 87.8%, as subsidy income recorded in non-operating income declined with the decrease in the number of licensed childcare centers opened, from 9 in the same quarter of the previous year to 2 in the first quarter.」
The decline in subsidy income accompanying the decrease in licensed childcare center openings was reflected in actual results as earnings volatility arising from dependence on subsidies. - FY2022RestatedAnnual report
「Many of the licensed childcare centers operated by the Group are funded by subsidies from the national and local governments. While the business is expected to remain stable, it tends to be susceptible to the effects of policy and institutional changes.」
The Group continues to recognize its revenue structure's reliance on subsidies and its dependence on policy and system changes. - FY2022-Q3RestatedAnnual report
「During the first nine months of the current consolidated fiscal year, there were no material changes in the major risks that management recognizes as potentially having a material impact on the financial position, operating results or cash flows of the consolidated companies, among the matters relating to the business and accounting matters described in the quarterly report, or in the "Business and Other Risks" described in the securities report for the previous fiscal year.」
States that there have been no material changes regarding dependence on subsidies and system changes for earnings. - FY2021RestatedAnnual report
「Many of the licensed daycare facilities operated by the Group are funded by subsidies from national and local governments. While this provides stability to the business, it also tends to leave the business vulnerable to the effects of policy and system changes.」
The Group continues to recognize its revenue structure's reliance on subsidies and its dependence on policy and system changes. - FY2020First statedAnnual report
「Many of the facilities operated by the Group are funded by subsidies from national and local governments. While this provides stability to the business, it also tends to leave the business vulnerable to the effects of policy and system changes.」
The Group recorded subsidy income of ¥2,282 million as non-operating income in the fiscal year ended March 2020.