Risk of delayed investment recovery due to regulatory and economic conditions and insufficient penetration in overseas markets
First written in FY2016. 1 of 3 entries say "Materialised", first in FY2019. Latest entry: FY2020-Q1.
The whole theme swung hardest in 2018: 3 of 6 companies on the "Worse" side.
0 other companies' latest entry also says "Mitigated".
- FY2020-Q1MitigatedAnnual report
「While making upfront investments to strengthen the management structure accompanying the expansion of overseas locations, primarily through M&A, and to prepare for the adoption of IFRS, the Group sold subsidiaries in new businesses that were difficult to monetise in the short term.」
Regarding the recovery of investments in overseas and new businesses, the Group sold subsidiaries and took other measures where short-term monetisation was difficult. - FY2019MaterialisedAnnual report
「While the Group continued to make upfront investments at each location to expand its businesses, it decided to liquidate at an early stage locations including its subsidiaries in Turkey and Australia, where short-term monetisation was difficult to expect. In addition, because adGeek and its subsidiary The Studio by CtrlShift were not generating the excess earnings originally anticipated, the Group fully impaired the unamortised goodwill.」
The risk of overseas market penetration and investment recovery materialised in the disclosed decision to liquidate the Turkish and Australian operations and the full impairment of goodwill at adGeek and The Studio by CtrlShift. - FY2016First statedAnnual report
「In addition, if overseas markets fail to grow as expected or the Group’s services fail to gain traction with overseas customers, among other factors, the Group may be unable to recover its investments, which could affect its business and performance.」
The disclosure describes the risk of failing to recover investments due to overseas markets falling short of expected growth, insufficient service penetration, and factors such as laws and regulations, foreign exchange rates and infrastructure.