Foreign exchange and country risks associated with overseas business expansion
First written in FY2016. 7 of 19 entries say "Materialised", first in FY2017-Q1. Latest entry: FY2026.
Meiji Electric Industries moved to the "Worse" side of this theme in 2016, 3 years before the typical company in this theme (2019).
The whole theme swung hardest in 2025: 72 of 118 companies on the "Worse" side.
46 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「With regard to the outlook, it will remain necessary to monitor developments in U.S. trade policy, the slowdown in China's economy, and geopolitical risks, including the situation in the Middle East, but economic activity is expected to gradually return to normal.」
Sources of uncertainty related to overseas operations include U.S. trade policy, the slowdown in China's economy, and geopolitical risks, including the situation in the Middle East. - FY2025WorsenedAnnual report
「The global economy remains uncertain, owing to fluctuations in commodity prices accompanying heightened geopolitical risks, the impact of high interest rates in Europe and the United States, stagnation in China's property market, and the impact of the Trump administration's tariff policies in the United States.」
External risks related to overseas operations include geopolitical risks, high interest rates, and stagnation in China's property market, with U.S. tariff policies disclosed as a new source of uncertainty. - FY2023RestatedAnnual report
「Expansion into overseas markets may entail currently unforeseeable risks, including economic risks such as foreign exchange risk and international finance risks, and political and social risks such as war, terrorism and epidemics. If any of these events occur, they may affect business performance and financial position.」
Risks related to foreign exchange, financial, political and social conditions associated with overseas operations continue to be disclosed. - FY2023-Q3WorsenedAnnual report
「The global economy remains uncertain, as the rapid spread of infections following the easing of China's zero-COVID policy, volatility in financial and capital markets, and rising prices continue to have an impact.」
The external environment related to overseas operations identifies the rapid spread of infections following the easing of China's zero-COVID policy, volatility in financial and capital markets, and rising prices as sources of uncertainty. - FY2023-Q2ReframedAnnual report
「The global economy remains in an uncertain condition, owing to sharp foreign exchange fluctuations against a backdrop of monetary tightening and the prolonged situation in Ukraine.」
The focus of the disclosure of uncertainties affecting overseas operations has shifted from infectious diseases and China's policies to sharp foreign exchange fluctuations against a backdrop of monetary tightening and the prolonged situation in Ukraine. - FY2023-Q1WorsenedAnnual report
「The global economy also remains in an uncertain condition, owing to the prolonged geopolitical risks surrounding the situation in Ukraine and the impact of China's zero-COVID policy.」
Regarding country and geopolitical risks associated with overseas operations, the prolonged situation in Ukraine and the impact of China's zero-COVID policy are disclosed as new sources of uncertainty. - FY2022RestatedAnnual report
「Expansion into overseas markets may entail currently unforeseeable risks, including economic risks such as foreign exchange risk and international finance risks, and political and social risks such as war, terrorism and epidemics. If any of these events occur, they may affect business performance and financial position.」
Risks related to foreign exchange, financial, political and social conditions associated with overseas operations continue to be disclosed. - FY2020MaterialisedAnnual report
「Toward the end of the fiscal year, the impact of the novel coronavirus disease spread worldwide, making the outlook for the economy even more uncertain.」
The disclosure of overseas business risks, including epidemics and other risks that had been listed previously, states that the global spread of novel coronavirus disease has affected the actual business environment. - FY2020-Q2MaterialisedAnnual report
「Foreign exchange losses － 30,370」
While no foreign exchange losses were recognized in the same period of the previous year, foreign exchange losses of ¥30.370 million were recognized in the cumulative second quarter, with the impact of foreign exchange movements reflected in profit or loss for the period. - FY2020-Q1MaterialisedAnnual report
「Foreign exchange losses － 32,103」
While foreign exchange losses were "－" in the same period of the previous year, foreign exchange losses of ¥32.103 million were recognized in the cumulative first quarter, with the impact of foreign exchange movements reflected in profit or loss for the period. - FY2019RestatedAnnual report
「Expansion into overseas markets may entail currently unforeseeable risks, including economic risks such as foreign exchange risk and international finance risks, and political and social risks such as war, terrorism and epidemics. If any of these events occur, they may affect business performance and financial position.」
Risks related to foreign exchange, financial, political and social conditions associated with overseas operations continue to be disclosed. - FY2019-Q3Foreign exchange gains: continued recognition and declineAnnual report
「Foreign exchange gains 42,541 20,351」
Foreign exchange gains continued to be recognized in the cumulative third quarter, but declined from ¥42.541 million in the same period of the previous year to ¥20.351 million. - FY2018MaterialisedAnnual report
「Ordinary income was ¥3,010 million, up 35.9% year on year, as non-operating income declined due in part to lower foreign exchange gains and the recognition of foreign exchange losses.」
Regarding foreign exchange risk associated with overseas operations, the profit or loss position changed from foreign exchange gains in the previous year to the recognition of foreign exchange losses in the current fiscal year. - FY2018-Q3Continued recognition of foreign exchange gainsAnnual report
「Foreign exchange gains 71,919 42,541」
Foreign exchange gains continued to be recorded in the cumulative third quarter of the current consolidated fiscal year, as in the same period of the previous year, and the profit or loss situation differs from the recent period when foreign exchange losses were reflected in results. - FY2018-Q1Foreign exchange losses recorded in the current quarter disappearedAnnual report
「Foreign exchange losses 57,015 －」
The Company recorded foreign exchange losses of ¥57.015 million in the same period of the previous year, whereas foreign exchange losses were “－” in the cumulative first quarter of the current consolidated fiscal year. This does not mean that foreign exchange risk itself has disappeared; rather, the amount recognized in current-quarter profit or loss has changed. - FY2017-Q3MaterialisedAnnual report
「As a result, revenue for the cumulative third quarter of the consolidated fiscal year was ¥41,921 million, up 2.0% year on year. Operating profit was ¥1,161 million, down 19.3% year on year, mainly because the stronger yen increased the cost of sales at overseas subsidiaries and selling, general and administrative expenses increased, primarily due to higher personnel expenses. Ordinary profit was ¥1,353 million, down 14.4% year on year, and quarterly net income attributable to owners of the parent was ¥948 million, down 8.7% year on year.」
The stronger yen's effect in raising the cost of sales at overseas subsidiaries continued to weigh on operating profit in the cumulative third-quarter period. - FY2017-Q2MaterialisedAnnual report
「Operating profit was ¥760 million, down 13.5% year on year, mainly because the stronger yen increased the cost of sales at overseas subsidiaries and selling, general and administrative expenses increased, primarily due to higher personnel expenses. Ordinary profit was ¥791 million, down 17.7% year on year, partly due to foreign exchange losses.」
The stronger yen's effect in raising the cost of sales at overseas subsidiaries and foreign exchange losses continued to weigh on operating profit and ordinary profit in the cumulative second-quarter period. - FY2017-Q1MaterialisedAnnual report
「Operating profit was ¥115 million, down 57.8% year on year, mainly because the stronger yen increased the cost of sales at overseas subsidiaries and selling, general and administrative expenses increased, primarily due to higher personnel expenses. Ordinary profit was ¥114 million, down 67.3% year on year, due to the impact of foreign exchange losses.」
The impact of foreign exchange fluctuations, previously disclosed as a risk, has materialized in current-quarter results through higher costs of sales at overseas subsidiaries and foreign exchange losses. The Company states that there were no significant changes in the Business and Other Risks section. - FY2016First statedAnnual report
「Expansion into overseas markets may entail currently unforeseeable risks, including economic risks such as foreign exchange risk and international finance risks, and political and social risks such as war, terrorism and epidemics. If any of these events occur, they may affect business performance and financial position.」
Alongside its policy of expanding the overseas business, the Group lists foreign exchange, financial, political and social risks.