Rising IT-System Development and Operating Costs
First written in FY2022. 3 of 7 entries say "Restated". Latest entry: FY2026-H1.
AlphaPurchase moved to the "Worse" side of this theme in 2023.
0 other companies' latest entry also says "Restated".
- FY2026-H1RestatedAnnual report
「On the SG&A side, amortization associated with IT-system investment and outsourced costs such as cloud fees increased, raising total IT-system-related costs, as did personnel expenses to improve employee compensation.」
The increase in amortization from IT-system investment and outsourced costs such as cloud fees continued, reaffirming the IT-system cost burden. - FY2025-H1RestatedAnnual report
「On the SG&A side, amortization associated with active IT-system investment and outsourced costs such as cloud fees increased, raising total IT-system-related costs, as did personnel expenses to improve employee compensation.」
Amortization from IT investment, outsourced costs such as cloud fees and personnel costs from improved compensation continued to increase. However, MRO profit increased, so no further deterioration in the risk was indicated. - FY2024MitigatedAnnual report
「Because the five-year depreciation period for some intangible fixed assets resulting from past large-scale IT investment expired, the rate of increase in IT costs slowed and the segment’s SG&A ratio declined, even after considering higher outsourced costs such as cloud fees for IT-system operations.」
Although cloud costs increased, the expiration of depreciation periods for past investments slowed the increase in IT costs and reduced the SG&A ratio, partly mitigating the cost-inflation risk. - FY2024-H1RestatedAnnual report
「On the cost side, depreciation and amortization associated with IT-system investment for sustainable growth and outsourced costs such as cloud fees for operating IT systems increased, raising total IT-system-related costs.」
The increase in depreciation and amortization from IT-system investment and outsourced costs such as cloud fees continued, reaffirming the cost burden from IT systems. - FY2024-Q1WorsenedAnnual report
「On the cost side, amortization expenses associated with active IT-system investment for sustainable growth and outsourced costs such as cloud fees for operating IT systems increased, resulting in a substantial rise in total IT-system-related costs.」
Both amortization from IT-system investment and outsourced costs such as cloud fees increased, and the substantial rise in total IT-system costs continued. - FY2023-Q3WorsenedAnnual report
「Costs related to IT systems for new customers also increased substantially in this business.」
A significant increase in IT-system costs for new customers was explicitly reported. In the MRO business, revenue increased while segment profit fell 5.6% year on year, reflecting the higher IT-system cost burden. - FY2022First statedAnnual report
「In recent years, the development and operating costs of our Group’s IT systems have risen, increasing fixed costs and raising the break-even point.」
The Group plans to improve profitability through aggressive sales expansion, but identifies deterioration in performance if sales growth is insufficient as a risk.