Risk of insufficient returns on investments in new products and services
First written in FY2016. 1 of 4 entries say "Restated". Latest entry: FY2021.
The whole theme swung hardest in 2019: 7 of 29 companies on the "Worse" side.
10 other companies' latest entry also says "Mitigated".
- FY2021MitigatedAnnual report
「Accordingly, for each investment, the Group carefully examines the validity of the business plan and other matters at the Investment Committee, Business Review Committee and the Management Committee, the senior decision-making body, and works to minimize risks arising from its investment decisions.」
The Group identifies review of individual investments by the Investment Committee, Business Review Committee and Management Committee in response to the risks of insufficient returns, strategic divergence and failure to achieve expected growth accompanying expanded investment. - FY2019WorsenedAnnual report
「The Group is also continuing and expanding investments, including investments in partners with advanced technologies and expertise, both in Japan and globally, as well as investments in startups and funds. Sufficient returns on these investments are not always guaranteed, and the investments may affect operating results if the Group's management strategy diverges from that of its partners or the businesses fail to grow as initially expected.」
Regarding investment risks, the Group identifies the risks of strategic divergence and failure to achieve expected growth while continuing and expanding global investments, M&A and investments in startups and funds. - FY2018RestatedAnnual report
「The Group is making substantial investments to provide new products and services in order to strengthen its competitiveness and expand its business. However, sufficient returns on investments are not always guaranteed, and the investments may affect operating results.」
The Group continues to manage the risk of insufficient returns on investments in new products and services through investment reviews. - FY2016First statedAnnual report
「The Group is making substantial investments to provide new products and services in order to strengthen its competitiveness and expand its business. For these investments, the Investment Committee, Business Review Committee and the Management Committee, the senior decision-making body, carefully examine the validity of the business plans and other matters. However, sufficient returns on investments are not always guaranteed, and the investments may affect operating results.」
While positioning investment in new products and services as a means of growth, the Group identifies the risk that sufficient returns may not be guaranteed.