Risks relating to IT investment trends, competition, customer credit, major projects and project profitability
First written in FY2016. 15 of 26 entries say "Restated". Latest entry: 2026-07-30.
Nsd moved to the "Worse" side of this theme in 2020, the same year as the typical company in this theme.
0 other companies' latest entry also says "Mitigated".
- 2026-07-30MitigatedEarnings
「In the social infrastructure software development business, net sales increased 7.5% year on year to ¥6,153 million, reflecting higher orders from the telecommunications industry, public-sector organizations, and the electricity, gas and water industries. Operating profit increased 20.4% year on year to ¥1,162 million, mainly because low-profitability projects from the previous fiscal year were completed.」
The completion of low-profitability projects from the previous fiscal year is cited as a factor behind the increase in operating profit, indicating that the impact of project profitability had eased to some extent. - FY2026-H1MaterialisedAnnual report
「In the social infrastructure software development business, orders from the communications and transportation industries, as well as public-sector organizations and the electricity, gas, and water utilities, remained strong. Revenue increased 10.8% year on year to ¥11,714 million, while operating profit rose 5.8% to ¥2,088 million, although growth was limited by the impact of some low-profitability projects. In the IT infrastructure business, orders for infrastructure construction projects remained firm across industries, particularly from financial institutions such as banks and public-sector organizations. Revenue increased 9.1% year on year to ¥6,483 million. Operating profit rose 3.9% year on year to ¥1,108 million, although growth was limited by extensions to major projects at a subsidiary.」
The company states that the previously identified risks relating to project profitability and progress materialized, with low-profitability projects and extensions to major projects at a subsidiary affecting operating profit. - FY2025MaterialisedAnnual report
「Total additions to the provision for contract losses included in cost of sales are as follows. Additions to provision for contract losses ¥15 million」
Regarding project profitability risk, the company recognized ¥15 million in additions to the provision for contract losses in the current fiscal year. No such provision was recognized in the previous fiscal year, and projects expected to generate future losses have materialized as an accounting provision. - FY2023MaterialisedAnnual report
「Total additions to the provision for contract losses included in cost of sales Current fiscal year ¥3.097 million」
A software development contract was identified as likely to generate a future loss, and a ¥3.097 million provision for contract losses was recognized. The previously identified project profitability risk has materialized as an accounting provision. - FY2023-Q1RestatedAnnual report
「During the three-month period ended 30 June, there were no new risks that management recognizes as having the potential to materially affect the financial position, operating results or cash flows of the consolidated companies, and no material changes to the business risks described in the annual securities report for the previous fiscal year.」
The company states that there have been no material changes in existing risks, including IT investment trends, competition, customer credit, large projects, and project profitability. - FY2022-Q3MitigatedAnnual report
「During the first 3 quarters of the current fiscal year, revenue and profit increased as business activity moved toward normalization against the backdrop of fewer new COVID-19 infections from the third quarter onward, with new project orders and the resumption of postponed projects.」
The company states that, regarding the longstanding risks associated with large projects and project progress, the resumption of postponed projects and new orders contributed to the normalization of business activity and increases in revenue and profit. - FY2022-Q1RestatedAnnual report
「During the three-month period ended 30 June, there were no new risks that management recognizes as having the potential to materially affect the financial position, operating results or cash flows of the consolidated companies, and no material changes to the business risks described in the annual securities report for the previous fiscal year.」
The company states that there have been no material changes in the key risks, including IT investment trends, competition, customer credit, large projects, and project profitability. - FY2021RestatedAnnual report
「Risks across the Group's businesses that may cause results to fluctuate include changes in IT investment trends resulting from changes in economic conditions and the structural shift from owning systems to using systems such as cloud services, competition with other companies in the industry, including overseas companies, customers' creditworthiness, the success or failure of securing large contracts, the progress and profitability of individual projects, and the status of alliances with partner companies. The Group implements thorough risk management measures, including project management, in response to these risks.」
The company reconfirms the risks relating to IT investment trends, competition, customer credit, large projects, project profitability, and alliances with partner companies, together with responses through project management. - FY2021-Q3WorsenedAnnual report
「In the financial software development business, system reconstruction projects at insurance companies continued to perform steadily. However, revenue decreased 0.8% year on year to ¥15,376 million due to the completion of projects at major banks and project extensions resulting from the impact of COVID-19.」
The company states that the previously identified risks relating to large projects and project progress continued to materialize, with projects for major banks reaching completion and being extended because of COVID-19, resulting in a 0.8% year-on-year decline in financial IT revenue. - FY2021-Q2MaterialisedAnnual report
「In the financial software development business, system reconstruction projects at insurance companies continued to perform steadily. However, revenue decreased 1.5% year on year to ¥10,138 million due to the completion of projects at major banks and project extensions resulting from the impact of COVID-19.」
The company states that the previously identified risks relating to large projects and project progress materialized, with projects for major banks reaching completion and being extended because of COVID-19, resulting in a 1.5% year-on-year decline in financial IT revenue. - FY2021-Q1WorsenedAnnual report
「In the information services industry, demand for IT remained solid, including demand for digital transformation and the development of remote-work environments as a measure against infectious diseases. However, the order environment became challenging as the spread of infectious diseases restricted face-to-face sales activities and work at customer sites, while some companies reduced or postponed IT investment because of deteriorating business performance.」
The previously identified risks relating to IT investment trends and the order environment worsened as the spread of infectious diseases restricted face-to-face sales and work at customer sites, and some companies reduced or postponed IT investment. The company also states that the impact of unprofitable projects in the same period of the previous year had disappeared. - FY2020-Q3RestatedAnnual report
「During the nine-month cumulative period, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」
The company states that there were no new risks or material changes relating to existing business risks, including IT investment trends, competition, customer credit, large projects, and project profitability. - FY2020-Q2MitigatedAnnual report
「Operating profit recovered from the impact of unprofitable projects incurred in the first quarter through higher revenue and reductions in selling, general and administrative expenses, increasing 12.9% year on year to ¥4,430 million.」
The company states that the impact of unprofitable projects incurred in the first quarter was recovered on a cumulative second-quarter basis through higher revenue and reductions in selling, general and administrative expenses. - FY2020-Q1MaterialisedAnnual report
「Operating profit increased through higher revenue and lower selling, general and administrative expenses, but was affected by unprofitable projects and rose 1.0% year on year to ¥1,953 million.」
The company states that the previously identified project profitability risk materialized, with unprofitable projects affecting operating profit in the first quarter. - FY2019RestatedAnnual report
「Risks in the system solutions services business that may cause the Group's results to fluctuate include changes in IT investment trends resulting from changes in economic conditions and the structural shift from owning systems to using systems such as cloud services, competition with other companies in the industry, including overseas companies, customers' creditworthiness, the success or failure of securing large contracts, the progress and profitability of individual projects, and the status of alliances with partner companies. The Group implements thorough risk management measures, including project management, in response to these risks.」
The company reiterates the existing risks relating to IT investment trends, competition, customer credit, large projects, project progress and profitability, and alliances with partner companies, together with responses including project management. - FY2019-Q3RestatedAnnual report
「During the nine-month cumulative period, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」
The company states that there were no new risks or material changes relating to existing business risks, including IT investment trends, competition, customer credit, large projects, and project profitability. - FY2019-Q2RestatedAnnual report
「During the six-month period ended [the current second quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
The company states that there were no new risks or material changes relating to existing business risks, including IT investment trends, competition, customer credit, large projects, and project profitability. - FY2019-Q1RestatedAnnual report
「During the three-month period ended [the current first quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
The company states that there were no new business or other risks and no material changes to existing risks. - FY2018-Q3RestatedAnnual report
「During the nine-month period ended [the current third quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
The company states that there were no new business or other risks and no material changes to existing risks. - FY2018-Q2RestatedAnnual report
「During the six-month period ended [the current second quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
The company explicitly states that no new risks arose and no material changes occurred to existing risks. - FY2018-Q1RestatedAnnual report
「During the three-month period ended [the current first quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
The company explicitly states that no new risks arose and no material changes occurred to existing risks. - FY2017RestatedAnnual report
「Risks in the system solutions services business that may cause the Group's results to fluctuate include changes in IT investment trends resulting from changes in economic conditions and the structural shift from owning systems to using systems such as cloud services, competition with other companies in the industry, including overseas companies, customers' creditworthiness, the success or failure of securing large contracts, the progress and profitability of individual projects, and the status of alliances with partner companies.」
The company reiterates the existing risks related to IT investment trends, competition, customer credit, large projects, and project profitability, together with responses including project management. - FY2017-Q3RestatedAnnual report
「During the nine-month period ended [the current third quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
The company explicitly states that no new risks arose and no material changes occurred to existing risks. - FY2017-Q2RestatedAnnual report
「During the six-month period ended [the current second quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
The company explicitly states that no new risks arose and no material changes occurred to existing risks. - FY2017-Q1RestatedAnnual report
「In the information services industry, although some companies remained cautious about IT investment, the order environment continued to be favorable, supported by the proactive use of cutting-edge IT technologies in strategic areas and the renewal of existing large-scale systems.」
Although some companies remained cautious about IT investment, the order environment was described as favorable. The company states that there were no material changes in business and other risks, and reiterates the status of existing risks. - FY2016First statedAnnual report
「Risks in the system solutions services business that may cause the Group's results to fluctuate include changes in IT investment trends resulting from changes in economic conditions and the structural shift from owning systems to using systems such as cloud services, competition with other companies in the industry, including overseas companies, customers' creditworthiness, the success or failure of securing large contracts, the progress and profitability of individual projects, and the status of alliances with partner companies.」
Project management and other risk management measures are described as responses to these risks.