Country, foreign-exchange and litigation risks associated with overseas expansion
First written in FY2020. 4 of 6 entries say "Worsened", first in FY2022. Latest entry: FY2026.
Bushiroad moved to the "Worse" side of this theme in 2022, 4 years after the typical company in this theme (2018).
The whole theme swung hardest in 2022: 5 of 11 companies on the "Worse" side.
1 other company's latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「The Group's overseas sales ratio has expanded to slightly above 29%, most of which is generated by the English-language TCG business of its overseas consolidated subsidiaries. However, the Chinese-language TCG business is also trending upward, as are figures, character merchandise, anime distribution rights, professional wrestling events and video streaming services.」
The overseas sales ratio expanded from slightly above 27% in the previous fiscal year to slightly above 29%, and overseas transactions broadened beyond TCGs to include figures, merchandise, anime distribution rights, professional wrestling events and video streaming services. Exposure to foreign exchange and country risks associated with overseas expansion increased further. - FY2025WorsenedAnnual report
「The Group's overseas sales ratio has expanded to slightly above 27%, most of which is generated by the English-language TCG business of its overseas consolidated subsidiaries. However, the Chinese-language TCG business is also trending upward, as are figures, character merchandise, anime distribution rights, professional wrestling events and video streaming services.」
The overseas sales ratio expanded from above 20% to above 27%, and overseas transactions broadened beyond TCGs to include figures, merchandise, anime distribution rights and professional wrestling events, increasing exposure to foreign exchange and country risks. - FY2024WorsenedAnnual report
「The Group's overseas sales ratio has expanded to slightly above 20%, most of which is generated by the English-language TCG business of its overseas consolidated subsidiaries. However, the Chinese-language TCG business is also trending upward, as are figures, character merchandise, anime distribution rights, professional wrestling events and video streaming services. The exchange rates applied in preparing the consolidated financial statements of overseas consolidated subsidiaries may affect the Group's financial position and operating results after translation into yen.」
As the overseas sales ratio expanded to above 20% and overseas transactions outside the TCG business broadened, the impact of foreign currency translation on the financial position and operating results became an identifiable standalone risk. - FY2022WorsenedAnnual report
「Overseas transactions may be exposed to various country risks, including higher manufacturing and shipping costs, the suspension of foreign exchange transactions by local governments, tariff increases and the confiscation of property through government expropriation. In addition, overseas transactions entail foreign exchange risk, and where the Group is contractually required to bear that risk, the Company may incur the resulting financial burden.」
In addition to the existing country risks, higher manufacturing and shipping costs and the financial burden arising from foreign exchange fluctuations were explicitly identified, broadening the scope of risks associated with overseas expansion. - FY2021RestatedAnnual report
「The Company's Group has been expanding its overseas transactions, including the launch of its products overseas and the localized distribution of mobile online games. However, overseas transactions may be exposed to various country risks, including the suspension of foreign exchange transactions by local governments, tariff increases and the confiscation of property through government expropriation.」
Country risks, including foreign exchange, tariffs, expropriation and litigation, associated with the expansion of overseas sales and MOG localization continue to be recognized. - FY2020First statedAnnual report
「Overseas transactions may be exposed to various country risks, including the suspension of foreign exchange transactions by local governments, tariff increases and the confiscation of property through government expropriation.」
Risks including foreign exchange, tariffs, property confiscation, product liability, labor issues and bankruptcy associated with the expansion of overseas product sales and MOG localization were presented systematically for the first time.