Risk of economic slowdown and shifts in sales timing due to COVID-19
First written in FY2020-Q3. 10 of 15 entries say "Materialised", first in FY2020-Q3. Latest entry: FY2024.
Smartvalue moved to the "Worse" side of this theme in 2020, the same year as the typical company in this theme.
The whole theme swung hardest in 2020: 110 of 173 companies on the "Worse" side.
55 other companies' latest entry also says "Mitigated".
- FY2024MitigatedAnnual report
「During the current consolidated fiscal year, Japan's economy gradually recovered overall as economic activity normalised, supported by the easing of various restrictions and the recovery in inbound demand against a backdrop of a weaker currency as the impact of COVID-19 diminished.」
The disclosure shifted from describing the economic slowdown and restrictions on movement caused by COVID-19 to stating that the impact had diminished and economic activity had normalised. - FY2024-Q3MitigatedAnnual report
「During the third quarter of the current consolidated cumulative period, Japan's economy gradually recovered overall as economic activity normalised, supported by the easing of various restrictions and the recovery in inbound demand as the impact of COVID-19 diminished.」
The Company states that the impact of COVID-19 diminished and that restrictions were eased and economic activity normalised. Meanwhile, the Mobility business continued to be affected by fewer company vehicles and delayed deliveries. - FY2024-Q2RestatedAnnual report
「During the second quarter of the fiscal year, there were no material changes in the occurrence of 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 conditions, financial position and other matters described in this quarterly report, or in the "Business and Other Risks" described in the annual securities report for the previous fiscal year.」
The Company states that there were no major risks arising or significant changes relating to the risk of an economic slowdown and sales timing delays due to COVID-19. - FY2024-Q1ReframedAnnual report
「During the first quarter of the current consolidated cumulative period, Japan's economy gradually recovered overall as economic activity normalised, supported by the easing of various restrictions following the reclassification of COVID-19 as a Class 5 infectious disease and the recovery in inbound demand.」
The disclosures shifted from the previous focus on an economic slowdown and restrictions on movement due to COVID-19 to economic activity normalising following the Class 5 reclassification and easing of restrictions. For Mobility Services, higher vehicle maintenance costs due to soaring energy prices and the risk of existing customers cancelling contracts because of an economic downturn continued to be disclosed. - FY2023-Q3RestatedAnnual report
「Although the impact on Digital Government, which provides cloud services for local governments, is considered limited, Mobility Services, which targets companies' business vehicles, remains exposed to a certain degree of impact from restrictions on movement, higher vehicle maintenance costs due to soaring energy prices and the risk of existing customers cancelling contracts because of an economic downturn.」
The impact of restrictions on movement, soaring energy prices and an economic downturn on Mobility Services, as well as the risk of existing customers cancelling contracts, continued to be disclosed from the previous quarter. - FY2023-Q2MaterialisedAnnual report
「Although the impact on the Digital Government and Smart Venue segments, which provide cloud services for local governments, is considered limited, the Mobility Services segment, which targets companies' business vehicles, remains exposed to a certain degree of impact from restrictions on movement, higher vehicle maintenance costs due to soaring energy prices and the risk of existing customers cancelling contracts because of an economic downturn.」
The impact of restrictions on movement during the pandemic continued to affect Mobility Services, and the Company also disclosed higher vehicle maintenance costs due to soaring energy prices and the risk of existing customers cancelling contracts because of an economic downturn. - FY2022-Q3MaterialisedAnnual report
「Although the impact on Digital Government, which provides cloud services for local governments, is considered limited, Mobility Services, which targets companies' business vehicles, remains exposed to a certain degree of impact from restrictions on movement, higher vehicle maintenance costs due to soaring energy prices and the risk of existing customers cancelling contracts because of an economic downturn.」
In addition to the impact of restrictions on movement during the pandemic, higher vehicle maintenance costs due to soaring energy prices and the risk of existing customers cancelling contracts because of an economic downturn were identified as specific factors affecting Mobility Services. - FY2022-Q2MaterialisedAnnual report
「During the second quarter of the current consolidated cumulative period, the use of company vehicles for business declined because of restrictions on movement. In the car-sharing field, however, the Company is strengthening its solutions using Kuruma Base, against a backdrop of a major shift in the concept of car ownership from ownership to sharing and the transition toward EVs (Note 9) in response to the carbon-neutrality trend (Note 8).」
The decline in corporate use of business vehicles due to restrictions on movement during the pandemic continued to materialise as an impact on Mobility Services. Meanwhile, the Company is strengthening solutions using Kuruma Base in the car-sharing field. - FY2022-Q1MaterialisedAnnual report
「Although conditions remained difficult during the first quarter of the current consolidated cumulative period, partly because of the impact of COVID-19, the Company is working to create high-profit businesses by securing stable earnings, strengthening business areas expected to grow and creating new businesses that could become new pillars, with the aim of transitioning to a sustainable growth model based on the foundation it has built.」
The Company states that the impact of COVID-19 continued during the current quarter and that the business environment remained difficult. - FY2021MaterialisedAnnual report
「During the current consolidated fiscal year, Mobility Services was affected by continued restrictions on user companies' business activities amid the economic downturn caused by COVID-19. The number of orders in the car solutions field, which handles safe-driving support equipment, remained sluggish, and revenue declined substantially from the initial expectations. In the IoT field, including telematics services (Note 1), new orders were also weak and revenue declined from the initial expectations because of restrictions on business activities, such as reduced travel by car for corporate activities.」
The impact of the infection continued throughout the fiscal year as stagnant orders and lower revenue in Mobility Services, which reported revenue of ¥1,713.630 million and a segment loss of ¥276.272 million. - FY2021-Q3MaterialisedAnnual report
「During the third quarter of the current consolidated cumulative period, Mobility Services was affected by continued restrictions on user companies' business activities, a decline in new contracts for leased vehicles and intensifying competition amid the economic downturn caused by COVID-19. The number of orders in the car solutions field, which handles safe-driving support equipment, remained sluggish, and revenue declined from the initial expectations. In the IoT field, including telematics services (Note 8), new orders were also weak and revenue declined from the initial expectations because of restrictions on business activities, such as reduced travel by car for corporate activities.」
The impact of the infection continued to materialise as stagnant orders and lower revenue in the car solutions field and weak new orders and lower revenue in the IoT field. Mobility Services reported revenue of ¥1,220.752 million and a segment loss of ¥72.214 million. - FY2021-Q2MaterialisedAnnual report
「During the second quarter of the current consolidated cumulative period, Mobility Services was affected by continued restrictions on user companies' business activities amid the economic downturn caused by COVID-19. The number of orders in the car solutions field, which handles safe-driving support equipment, remained sluggish, and revenue declined from the initial expectations. In the IoT field, including telematics services (Note 7), new orders were also weak and revenue declined from the initial expectations because of restrictions on business activities, such as reduced travel by car for corporate activities.」
The impact of COVID-19 continued to materialise as sluggish order volumes in the car solutions field and weak new orders and lower revenue in the IoT field. - FY2021-Q1MaterialisedAnnual report
「During the first quarter of the current consolidated cumulative period, Mobility Services was affected by restrictions on business activities due to COVID-19. Sales remained sluggish in the car solutions field, which handles safe-driving support equipment, while in the IoT field, including telematics services (Note 8), new orders were weak because of the impact of restrictions on business activities, such as reduced travel by car for corporate activities, and revenue declined from the initial expectations.」
The impact of COVID-19 continued to materialise as stagnant sales and weak new orders in the Mobility business. The Company also states that procurement for bidding projects was deferred or cancelled and deliveries were delayed in Digital Government. - FY2020MaterialisedAnnual report
「The Group was also affected as automakers adjusted production in response to weak demand for new vehicles, reducing the number of vehicles delivered to automotive leasing companies, which are major customers of the Group's Mobility Services business, and resulting in lower revenue.」
The impact of COVID-19 materialised in the form of production adjustments by automakers, fewer vehicle deliveries to automotive leasing companies and lower revenue in Mobility Services. Impairment of fixed assets and other items was estimated on the assumption that the impact would remain material at least through the second quarter of the fiscal year ending June 2021. - FY2020-Q3MaterialisedAnnual report
「The global spread of COVID-19 increased the risk of a slowdown in the global economy, and conditions remained increasingly uncertain.」
The risk of an economic slowdown due to the global spread of COVID-19 was newly identified, and in the car solutions field, sales were delayed into a subsequent period because of the impact of the infection.