Regulatory and Dispute Risks Associated with Overseas Expansion
First written in FY2022. 3 of 5 entries say "Worsened", first in FY2024. Latest entry: FY2025.
The whole theme swung hardest in 2025: 47 of 94 companies on the "Worse" side.
- FY2025WorsenedAnnual report
「Overseas, business practices and customer needs differ by country and region, and localization is required for language, payment methods and external-system integrations. If localization does not proceed as planned, higher development and operating costs, delays in deployment and lower customer satisfaction could affect the group’s business and results.」
As the overseas business expanded, exposure broadened beyond regulations and disputes to local business practices, payments, external integrations, localization and foreign exchange. - FY2025-H1WorsenedAnnual report
「We continued to pursue overseas expansion, a core pillar of the group’s growth strategy, including the establishment of tripla Hong Kong Limited in December 2024, tripla USA, Inc. in February 2025 and tripla Philippines Technologies Inc. in April 2025.」
The overseas footprint expanded to Hong Kong, the United States and the Philippines, further broadening business exposure to overseas regulations and disputes. The company nevertheless stated that there had been no significant change in business risks from the previous fiscal year. - FY2024WorsenedAnnual report
「The number of overseas customers increased, mainly in Southeast Asia, Taiwan and parts of the Middle East, and the operating revenue of overseas subsidiaries also increased in the consolidated financial statements. We plan to continue increasing revenue year by year.」
Overseas subsidiaries, customers and operating revenue actually increased, expanding exposure to legal compliance, employee departures, unrealized synergies and impairment in the overseas business. - FY2023ReframedAnnual report
「In November 2023, we completed the acquisition of BookandLink and made BookandLink and SJM subsidiaries. In December 2023, we entered into an agreement to acquire Surehigh’s shares.」
The focus broadened from overseas regulatory and dispute risks to risks across the overseas business, including acquired subsidiaries, employees, legal compliance and impairment. - FY2022First statedAnnual report
「Changes in laws and regulations that differ from those in Japan, as well as disputes, may occur overseas. We will work to review the laws and regulations and risks in each region. However, sudden regulatory changes or disputes could affect our results.」
Although overseas revenue was immaterial at the time, the company stated that the risk could become more significant as it expands across APAC.