Preventing and Eliminating Unprofitable Projects
First written in FY2016. 7 of 18 entries say "Mitigated", first in FY2024-Q1. Latest entry: FY2026.
Creo moved to the "Worse" side of this theme in 2021, 5 years before the typical company in this theme (2026).
The whole theme swung hardest in 2022: 2 of 9 companies on the "Worse" side.
8 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「We will also continue to take thorough measures to curb unprofitable projects in order to maintain high profitability.」
The company explicitly identifies curbing unprofitable projects as an ongoing priority for maintaining high profitability. - FY2026-H1MitigatedAnnual report
「Net sales decreased by ¥152 million year on year due mainly to the shift of resources to in-house services. Operating profit increased by ¥13 million as the impact of high-cost projects in the previous fiscal year was absorbed.」
The contract development business recovered from the impact of the high-cost project that actually arose in the previous fiscal year, and operating profit increased by ¥13 million year on year. The adverse impact of unprofitable projects appears to be easing. - FY2025-H1MaterialisedAnnual report
「The acquisition of strategic orders increased net sales by ¥11 million year on year. However, operating profit decreased by ¥96 million due to the impact of lower profitability during the first quarter of the current fiscal year.」
While the company pursues the prevention and elimination of unprofitable projects, lower profitability actually arose in a strategically won project and became a factor behind the ¥96 million decline in operating profit. - FY2024MitigatedAnnual report
「Following the completion of the high-cost project, net sales increased by ¥202 million year on year and operating profit increased by ¥221 million.」
The high-cost project that actually arose in the previous fiscal year was completed, contributing to the improvement in operating profit. The provision for project losses also decreased from ¥197 million to ¥173 million. - FY2024-Q3MitigatedAnnual report
「As high-cost projects approached completion, revenue increased by ¥162 million year on year and operating profit increased by ¥197 million year on year.」
While the company pursues the prevention and elimination of unprofitable projects, the completion of the high-cost project that became problematic in the previous fiscal year contributed to a ¥197 million increase in operating profit. - FY2024-Q2MitigatedAnnual report
「Revenue declined by ¥6 million year on year due to the reactionary decline following the completion of large projects, while operating profit increased by ¥63 million year on year as high-cost projects approached completion.」
While the company pursues the prevention and elimination of unprofitable projects, the benefits of completing the high-cost project that became problematic in the previous fiscal year continued to contribute to operating profit. - FY2024-Q1MitigatedAnnual report
「Operating profit increased by ¥40 million year on year, owing in part to a rebound following the completion of high-cost projects.」
While the company pursues the prevention and elimination of unprofitable projects, the high-cost project that became problematic in the previous fiscal year was completed, contributing to the improvement in operating profit. - FY2023MaterialisedAnnual report
「The high-cost conditions that arose in a strategically won project led to higher development costs as the project approached completion, as well as opportunity losses involving personnel.」
While the company pursues the prevention and elimination of unprofitable projects, high-cost conditions actually arose in a strategically won project, leading to higher development costs and opportunity losses. - FY2023-Q3WorsenedAnnual report
「During the nine-month period ended 31 December, demand for IT investment, including the promotion of DX (digital transformation), continued to trend upward from the previous consolidated fiscal year. However, net sales decreased by ¥46 million year on year and operating profit decreased by ¥36 million, owing in part to opportunity losses resulting from a strategically won project.」
Even amid solid demand for IT investment and order intake, opportunity losses resulting from strategic order-taking projects have continued to reduce consolidated revenue and earnings. - FY2023-Q2WorsenedAnnual report
「During the six-month period ended 30 September, the group's order intake remained solid against a backdrop of continued growth in demand for IT investment since the previous consolidated fiscal year. Net sales increased by ¥9 million year on year, while operating profit decreased by ¥108 million because a strategically won project fell substantially short of plan.」
Order intake remained solid and revenue increased, but a strategically won project fell substantially short of plan, reducing operating profit by ¥108 million. Adverse developments have continued in relation to the theme of curbing unprofitable projects. - FY2023-Q1WorsenedAnnual report
「In addition, net sales decreased by ¥46 million year on year and operating profit decreased by ¥107 million, owing in part to a strategically won project falling substantially short of plan.」
While the company pursues the goal of curbing and eliminating unprofitable projects, a strategically won project fell substantially short of plan and became a factor behind the decline in operating profit. - FY2022-Q3WorsenedAnnual report
「Operating profit decreased by ¥126 million year on year due to the impact of certain unprofitable projects.」
Unprofitable projects continued to be cited as a factor behind the decline in operating profit, with the impact quantified at ¥126 million. - FY2022-Q2WorsenedAnnual report
「Operating profit decreased by ¥10 million year on year due to product development and PR investment aimed at converting products into cloud services, as well as certain unprofitable projects.」
Unprofitable projects were specifically cited as a factor behind the decline in operating profit, indicating an adverse development for the theme of curbing and eliminating unprofitable projects. - FY2019RestatedAnnual report
「To curb the occurrence of unprofitable projects, we manage projects above a certain scale with the PMO (Project Management Office) at the core, reviewing estimates and risk factors when orders are received, improving estimate accuracy and establishing development methodologies.」
With the goal of curbing unprofitable projects, the company continues to implement the PMO, order-stage reviews, improved estimate accuracy and the establishment of development methodologies. - FY2018RestatedAnnual report
「To curb the occurrence of unprofitable projects, we manage projects above a certain scale with the PMO (Project Management Office) at the core, reviewing estimates and risk factors when orders are received, improving estimate accuracy and establishing development methodologies.」
The company continues to pursue the goal of curbing unprofitable projects through measures including the PMO, order-stage reviews and improved estimate accuracy. - FY2016First statedAnnual report
「Through these measures, we share project management expertise across the group and seek to improve project execution capabilities. To ensure the successful completion of large-scale contract projects, we also hold regular study and discussion sessions involving engineers selected from across the group and dedicated organizations, in order to acquire new technologies for the future. In addition, our project audit organization makes project risks visible, including the creditworthiness of highly complex projects, estimate accuracy and criteria for completing each stage. Through these efforts, we work to identify risks at an early stage, eliminate unprofitable projects and continuously improve quality.」
With the elimination of unprofitable projects as the goal, the company cites audits, improved estimate accuracy, stage criteria and risk visualization as measures.