Legal, Foreign Exchange and Labor Cost Risks Associated with Overseas Expansion
First written in FY2022. 9 of 12 entries say "Materialised", first in FY2023-Q2. Latest entry: 2026-08-14.
The whole theme swung hardest in 2025: 47 of 94 companies on the "Worse" side.
- FY2025-H1MaterialisedAnnual report
「Although we recorded operating profit of ¥126,397 thousand, we recorded an interim loss of ¥265,918 thousand because of higher financial expenses, mainly foreign-exchange losses.」
Foreign-exchange losses were identified as the main factor increasing financial expenses, demonstrating the realization of foreign-exchange exposure from overseas operations in interim earnings. - FY2024MaterialisedAnnual report
「We withdrew from most offices, particularly in EMEA, where we had made upfront investments in anticipation of high growth, and implemented workforce reductions. As a result, the Group recorded significant losses from one-time expenses, including impairment of assets, allowance for doubtful accounts and severance payments.」
Because overseas sites became unprofitable, European and Middle Eastern subsidiaries were placed into bankruptcy or liquidated, offices were closed or downsized and headcount was reduced. Legal, labor-cost and collection risks associated with overseas expansion materialized as restructuring and losses. - FY2024-H1MaterialisedAnnual report
「Foreign-exchange gains (losses) (losses shown as △) △ 1,175,377」
Foreign-exchange gains and losses of ¥1,175,377 thousand were recognized as a factor reducing operating cash flow, reflecting foreign-exchange exposure from overseas operations. - FY2024-Q1MaterialisedAnnual report
「Operating profit was an operating loss of ¥891,590 thousand due to lower revenue and higher overseas-site costs resulting from the weaker yen.」
Higher overseas-site costs due to the weaker yen contributed to the operating loss, demonstrating the continuing effect of foreign-exchange exposure on earnings. - FY2023MitigatedAnnual report
「The accelerated depreciation of the yen through the first nine months was offset by the sharp appreciation of the yen during the fourth quarter, resulting in only a minor impact from foreign-exchange movements for the current consolidated fiscal year.」
The impact of yen depreciation through the third quarter was offset by yen appreciation in the fourth quarter, leaving only a minor full-year impact from foreign exchange. Foreign-exchange monitoring, adjustment of foreign-currency balances and natural hedging were also disclosed. - FY2023-Q3MaterialisedAnnual report
「The interim loss attributable to owners of the parent was ¥1,090,748 thousand because financial income included a foreign-exchange gain of ¥663,802 thousand arising mainly from foreign-exchange and fair-value movements on loans from Japan to overseas subsidiaries, denominated in foreign currencies as borrowings at the overseas subsidiaries, and on foreign-currency-denominated investment securities in a U.S. company held by Japan, including Chowly, Inc. shares.」
Foreign-exchange and fair-value movements on overseas subsidiary loans and Chowly shares affected earnings, including recognition of a ¥663,802 thousand foreign-exchange gain. Foreign-exchange exposure remains. - FY2023-Q2MaterialisedAnnual report
「Operating performance resulted in an operating loss because revenue was below expectations, costs such as upfront investment made in anticipation of growth were recognized, and the weaker yen further depressed profit.」
The weaker yen reduced profit through higher labor and other costs, demonstrating the impact of foreign-exchange exposure associated with overseas operations. - FY2022First statedAnnual report
「The ratio of overseas revenue for the fiscal year ended December 2022 was 48.88%.」
Changes in overseas laws, tax systems, political and economic conditions, labor costs, foreign exchange and collection periods may adversely affect overseas operations. The overseas revenue ratio was 48.88%.