Longer Capital Investment Payback Periods and Rising Burden
First written in FY2016. 10 of 22 entries say "Materialised", first in FY2017-Q1. Latest entry: 2026-08-06.
Zacros moved to the "Worse" side of this theme in 2019.
0 other companies' latest entry also says "Worsened".
- 2026-08-06WorsenedEarnings presentation materials
「Protective film is expected to post lower profit because, in addition to higher fixed costs associated with bringing the extra-wide machine into operation, there is expected to be a time lag before higher costs can be passed on to prices.」
Higher fixed costs associated with operating the extra-wide machine and a time lag in price pass-through were expected to reduce protective film profit. - FY2026Annual capital investment decreased, but the large-scale investment plan continuedAnnual report
「Total investment over the 3 years through 2026 is expected to be ¥57 billion.」
Annual capital investment decreased from ¥23.689 billion in the previous fiscal year to ¥17.560 billion, while a plan for total investment of ¥57 billion in fiscal years 2024–2026 was presented, leaving the burden-related risks of investment ongoing. - FY2025WorsenedAnnual report
「Capital investment increased from ¥7.383 billion in the same period of the previous year by ¥16.306 billion to ¥23.689 billion.」
Capital investment increased significantly from ¥7.383 billion in the previous year to ¥23.689 billion, expanding the risk exposure related to investment payback, depreciation and financing costs. - FY2024RestatedAnnual report
「These capital investments may affect the Group's performance through longer investment payback periods resulting from changes in market conditions, higher equipment costs and construction delays, as well as deterioration in profitability due to the increased burden of depreciation and financing costs.」
While capital investment was expanded to ¥7.383 billion, the Company reconfirmed the risks associated with investment payback, depreciation and financing costs, as well as its response through profitability analysis and progress monitoring. - FY2023MaterialisedAnnual report
「The Company recognized an impairment loss of ¥88 million on idle assets for which it determined that there was no prospect of future use during the current consolidated fiscal year. In addition, because the profitability of the Information and Electronics Business had declined during the current consolidated fiscal year, the Company conducted an impairment test on operating assets with a carrying amount of ¥11.036 billion belonging to the asset groups of the Numata and Showa Plants of FUJIMORI KOGYO CO., LTD.」
An impairment loss of ¥88 million was recognized on idle assets, and indications of impairment also arose in the asset groups of the Information and Electronics Business. - FY2022RestatedAnnual report
「These capital investments may affect the Group's performance through longer investment payback periods resulting from changes in market conditions, higher equipment costs and construction delays, as well as deterioration in profitability due to the increased burden of depreciation and financing costs.」
The Company reconfirmed its response to capital-investment risks through profitability analysis at the planning stage, monitoring of construction progress and production conditions, and strengthening its financial position. - FY2022-Q3MaterialisedAnnual report
「Although depreciation increased due to the operation of newly installed machinery at the Company's Showa Plant and elsewhere, strategic and R&D expenses were incurred, and fixed costs increased due to staff reinforcement and other factors,」
Higher depreciation from the operation of newly installed machinery, strategic and R&D expenses, and higher fixed costs associated with staff reinforcement were actually incurred. - FY2022-Q2MaterialisedAnnual report
「Although depreciation increased due to the operation of newly installed machinery at the Company's Showa Plant and elsewhere, strategic and R&D expenses were incurred, and fixed costs increased due to staff reinforcement, relocation of the head office and other factors,」
Higher depreciation from the operation of newly installed machinery, strategic and R&D expenses, and higher fixed costs associated with staff reinforcement and relocation of the head office were actually incurred. - FY2022-Q1MaterialisedAnnual report
「Although depreciation increased due to the operation of newly installed machinery at the Company's Showa Plant and elsewhere, strategic and R&D expenses were incurred, and fixed costs increased due to staff reinforcement, relocation of the head office and other factors,」
Higher depreciation from the operation of newly installed machinery and higher fixed costs associated with staff reinforcement, relocation of the head office and other factors were actually incurred. - FY2021-Q3MaterialisedAnnual report
「Higher depreciation from the operation of newly installed machinery at the Company's Showa Plant」
Higher depreciation resulting from the operation of newly installed machinery at the Showa Plant was actually incurred as part of the fixed-cost burden. - FY2021-Q2MaterialisedAnnual report
「Although depreciation increased as newly installed machinery at the Company's Showa Plant came on stream and fixed costs, mainly personnel expenses, increased with higher production volumes, profit increased year on year due to the contribution from higher revenue, stronger sales of high-value-added products, improved production efficiency across the Group and efforts to improve the profitability of overseas subsidiaries.」
Higher depreciation from the operation of newly installed machinery at the Showa Plant and higher fixed costs associated with increased production volumes were actually incurred. - FY2020-Q2MaterialisedAnnual report
「During the cumulative second quarter of the current consolidated fiscal year, the Company determined that the assets described above had little prospect of future use. It therefore reduced their carrying amount to recoverable amount and recognized the ¥68 million reduction as an impairment loss under extraordinary losses. Recoverable amount was measured based on value in use, but because sufficient future cash flows could not be expected, recoverable amount was assessed at zero.」
The Company recognized an impairment loss of ¥68 million on construction in progress, an idle asset in Numata, Gunma Prefecture, because it had little prospect of future use and sufficient future cash flows could not be expected. The risks associated with recovering and bearing the cost of capital investment materialized as an actual loss. - FY2019RestatedAnnual report
「Capital investment increased from ¥3.517 billion in the same period of the previous year by ¥1.516 billion to ¥5.033 billion. In addition, the planned construction of major new facilities includes ¥6.244 billion for precision coating and processing equipment for the Information and Electronics Business.」
The expansion of capital investment was described, with the risks associated with investment payback periods and depreciation continuing to weigh on the business. - FY2019-Q3MaterialisedAnnual report
「In terms of profit and loss, overseas subsidiaries improved their earnings, domestic revenue increased, and the Group worked to improve production efficiency across the board. However, profit declined year on year due to higher material unit prices, changes in the sales mix and higher fixed costs.」
Higher fixed costs were actually incurred as a factor behind the year-on-year decline in profit, together with higher material prices and the impact of the sales mix. - FY2019-Q2MaterialisedAnnual report
「In terms of profit and loss, although the Company continued efforts to improve performance at overseas subsidiaries and production efficiency across the Group, the impact of lower revenue, higher unit material costs and increased fixed costs resulted in lower profit than in the same period of the previous year.」
Higher fixed costs were actually incurred as a factor behind the decline in profit, together with lower sales and higher material prices. - FY2018RestatedAnnual report
「These capital investments may affect the Group's performance through longer investment payback periods resulting from changes in market conditions, higher equipment costs and construction delays, as well as deterioration in profitability due to the increased burden of depreciation and financing costs.」
The risks of longer capital-investment payback periods and higher depreciation and financing costs were reiterated. - FY2018-Q3RestatedAnnual report
「In terms of profit and loss, although investment in research and development expenses and strategic fixed costs was increased further, the positive impact of higher revenue across all business segments and improved performance at overseas subsidiaries made a significant contribution. In addition, efforts to improve production efficiency resulted in higher profit than in the same period of the previous year.」
The situation was described in which continued additional investment in R&D expenses and strategic fixed costs was offset by higher profit resulting from the effects of revenue growth and improved profitability at overseas subsidiaries. - FY2017RestatedAnnual report
「These capital investments may affect the Group's performance through longer investment payback periods resulting from changes in market conditions, higher equipment costs and construction delays, as well as deterioration in profitability due to the increased burden of depreciation and financing costs.」
The risks of longer capital-investment payback periods and higher depreciation and financing costs were reiterated. - FY2017-Q3RestatedAnnual report
「Although the Group worked to improve production efficiency, strengthen sales of high-value-added products and reduce costs, profit declined year on year due to the significant impact of lower selling prices for protective film, the main product of the Information and Electronics Business, as well as higher fixed costs at the consolidated Taiwanese subsidiary, mainly depreciation, higher costs related to the launch of a new plant at the consolidated U.S. subsidiary, and increased R&D expenses and strategic fixed costs.」
Higher depreciation at the Taiwanese subsidiary, new U.S. plant launch costs, and increased R&D expenses and strategic fixed costs continued to be cited as factors behind the decline in profit. - FY2017-Q2WorsenedAnnual report
「Profit declined year on year due to higher fixed costs at the consolidated Taiwanese subsidiary, mainly depreciation, higher costs related to the launch of a new plant at the consolidated U.S. subsidiary, increased R&D expenses and higher strategic fixed costs.」
In addition to depreciation at the Taiwanese subsidiary, higher launch costs for the new U.S. plant, R&D expenses and strategic fixed costs were cited as factors behind the decline in profit, broadening the scope of the fixed-cost burden. - FY2017-Q1MaterialisedAnnual report
「Higher fixed costs at the consolidated Taiwanese subsidiary, mainly depreciation」
Higher fixed costs at the consolidated Taiwanese subsidiary, mainly depreciation related to its equipment, were actually incurred and were cited as a factor behind the decline in profit for the quarter. - FY2016First statedAnnual report
「The Group's performance may be affected by longer investment payback periods resulting from changes in market conditions, higher equipment costs and construction delays, as well as deterioration in profitability due to the increased burden of depreciation and financing costs.」
Higher payback-period costs, depreciation and financing costs associated with capital investment are anticipated.