Risks of Changes in Laws, Regulations and Systems, Difficulty Securing Personnel, and Political Turmoil in Overseas Operations
First written in FY2018. 9 of 22 entries say "Materialised", first in FY2020-Q2. Latest entry: FY2026.
Asahi Yukizai moved to the "Worse" side of this theme in 2019, 3 years before the typical company in this theme (2022).
The whole theme swung hardest in 2024: 11 of 19 companies on the "Worse" side.
14 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Meanwhile, overseas, corporate capital investment in the United States remained cautious amid continued uncertainty surrounding tariff policy. In China, capital investment also stagnated against a backdrop of weak domestic demand and other factors.」
For overseas operations, uncertainty surrounding US tariff policy and weak domestic demand and stagnant capital investment in China were newly identified in specific terms, and overseas sales declined year on year. - FY2026-H1WorsenedAnnual report
「Meanwhile, overseas, corporate capital investment in the United States remained cautious amid continued uncertainty surrounding tariff policy. In China, capital investment also stagnated against a backdrop of weak domestic demand and other factors.」
The risks surrounding overseas operations were specifically described as uncertainty surrounding US tariff policy and weak domestic demand and stagnant capital investment in China, increasing uncertainty in the overseas demand environment. - FY2025MaterialisedAnnual report
「In the United States, business remained solid in areas such as water treatment and waste disposal facilities, but semiconductor-related operations were significantly affected by reviews and postponements of factory construction due to soaring material prices, labor shortages and other factors.」
In the overseas business, reviews and postponements of semiconductor-related factory construction in the United States became an actual cause of lower sales, and the external-environment risk related to overseas operations resurfaced. - FY2025-H1MaterialisedAnnual report
「In the United States, business remained solid in areas such as water treatment and landfill, but semiconductor-related operations were significantly affected by reviews and postponements of factory construction due to soaring material prices, labor shortages and other factors.」
Soaring material prices, labor shortages, and reviews and postponements of semiconductor factory construction in the United States materialized as impacts on the performance of the overseas business. - FY2024-Q3RestatedAnnual report
「In China, demand associated with capital investment in factory construction in electronic industries continued. In the United States, demand associated with semiconductor factory construction was moderating but remained solid. As a result, sales exceeded the previous year, partly due to the weaker yen.」
Demand for electronic-industry factory construction in China and semiconductor factory construction in the United States continued, and overseas sales exceeded the previous year with the additional benefit of the weaker yen. The company continued to hold its previous view of the external environment surrounding overseas operations. - FY2024-Q2RestatedAnnual report
「Overseas, sales exceeded the previous year due to continued strong demand associated with capital investment in factory construction in electronic industries, primarily semiconductors, in the United States and China, as well as the effect of the weaker yen.」
Overseas sales exceeded the previous year against a backdrop of demand for factory construction in the electronic industries of the United States and China and the weaker yen. The company disclosed that the overall impact of risks surrounding overseas operations remained contained, as in the previous period. - FY2024-Q1MitigatedAnnual report
「Overseas, strong demand associated with capital investment in electronic industries, including semiconductors, continued in the United States and China, and sales also exceeded the previous year due to the weaker yen.」
In the overseas business, demand from electronic industries in the United States and China continued, and sales exceeded the previous year with the additional benefit of the weaker yen. The company states that the overall impact of external-environment risks related to overseas operations was mitigated. - FY2023-Q3MitigatedAnnual report
「Overseas, strong demand associated with capital investment in electronic industries, including semiconductors, continued in the United States and China. Sales also exceeded the previous year due to the weaker yen.」
Although demand for semiconductor manufacturing equipment stagnated in some markets, demand generated by electronic-industry investment in the United States and China continued, and overseas sales exceeded the previous year, including the effect of the weaker yen. - FY2023-Q2MitigatedAnnual report
「Although China was affected by lockdowns, strong demand related to capital investment, particularly in the semiconductor industry, continued in the United States and South Korea. Sales also exceeded the previous year due to the weaker yen and product price revisions.」
While the impact of lockdowns remained in China, overseas sales exceeded the previous year due to semiconductor-related demand in the United States and South Korea, the weaker yen and product price revisions. Overall, the impact of risks related to overseas operations was partly mitigated. - FY2023-Q1MaterialisedAnnual report
「Although China was partly affected by lockdowns, strong demand related to capital investment, particularly in the semiconductor industry, continued in the United States and South Korea. Sales also exceeded the previous year due to the weaker yen and product price revisions.」
Lockdowns had some impact in China, bringing the overseas business risk into the actual operating environment. Meanwhile, overseas sales exceeded the previous year due to semiconductor-related demand in the United States and South Korea, the weaker yen and product price revisions. - FY2021MaterialisedAnnual report
「Overseas, semiconductor-related demand in the United States gradually increased, but sales remained sluggish from the middle of the fiscal year due to the impact of the COVID-19 pandemic. Exports were also affected by logistical constraints, including container shortages, and sales fell below the previous year.」
In the overseas business, the impact of the pandemic in the United States, container shortages and lower demand in China during the first half materialized as lower sales and sales below the previous year. - FY2021-Q3MaterialisedAnnual report
「Overseas, semiconductor-related demand in the United States gradually increased, but orders remained sluggish due to the delayed economic recovery and other factors, causing sales to fall below the previous year. In China, restrictions on economic activity were gradually lifted, but sales remained below the previous year because the company did not achieve a full recovery in demand due to the impact of restrained investment resulting from US-China trade friction and other factors.」
Orders remained sluggish in the United States and investment restraints due to US-China trade friction continued in China, with the overseas business risk materializing as year-on-year sales declines in both regions. - FY2021-Q2MaterialisedAnnual report
「Overseas, orders for infrastructure development and other projects in the United States remained solid, and semiconductor-related demand gradually increased, but sales fell below the previous year because this was insufficient to offset the decline in demand from resources-related markets such as mining. In China, restrictions on economic activity were gradually lifted, but sales remained below the previous year because the company did not achieve a full recovery in demand due to the impact of restrained investment resulting from US-China trade friction and other factors.」
In the overseas business, the decline in US demand from resources-related markets and restrained investment in China due to US-China trade friction materialized as lower sales. - FY2021-Q1MaterialisedAnnual report
「Overseas, orders for infrastructure development and other projects in the United States remained solid, but sales declined year on year because lower investment in shale-related projects resulting from weak crude oil prices affected some products. In China, the company was significantly affected by restrictions on economic activity after the Chinese New Year and by US-China trade friction.」
In the overseas business, the decline in shale-related investment in the United States appeared as lower sales of some products, while China was affected by restrictions on economic activity and US-China trade friction. - FY2020-Q3MaterialisedAnnual report
「Overseas, the company continued to capture solid demand in the United States, but sales declined due to the impact of delays in semiconductor and other investments in China.」
Delays in semiconductor and other investments in China materialized as lower sales, bringing the external-environment risk related to overseas operations to the fore. - FY2020-Q2MaterialisedAnnual report
「Overseas, demand from both the private and public sectors in the United States remained strong. In China, however, sales declined due to the impact of investment deferrals caused by US-China trade friction.」
Investment deferrals in China caused by US-China trade friction materialized, with the risk to overseas operations appearing as lower sales in China. - FY2020-Q1WorsenedAnnual report
「Overseas, uncertainty about the outlook intensified further due to the effects of global economic uncertainty, including the prolonged US-China trade friction, the slowdown in the Chinese economy, and heightened tensions in the Middle East.」
The environment surrounding overseas operations was specifically described as being affected by the prolonged US-China trade friction, the slowdown in the Chinese economy and rising tensions in the Middle East, increasing uncertainty about the outlook. - FY2019WorsenedAnnual report
「Overseas, global instability intensified, including the US-China trade friction and the United Kingdom’s withdrawal from the EU, and uncertainty about the outlook continued.」
Uncertainty surrounding the external environment for overseas operations increased due to US-China trade friction, the United Kingdom’s withdrawal from the EU, geopolitical risks and other factors. - FY2019-Q3WorsenedAnnual report
「Overseas, US-China trade friction was steadily adversely affecting the Chinese economy, and the outlook remained uncertain.」
The external environment for overseas operations was described as including the steadily worsening impact of US-China trade friction on the Chinese economy, making the uncertainty about the outlook more specific. - FY2019-Q2RestatedAnnual report
「Overseas economies in general were on a recovery trend, and capital investment in the US and China remained solid. However, conditions remained uncertain, including concerns about trade friction resulting from protectionist policies in other countries.」
Concerns about trade friction caused by protectionist policies and uncertainty surrounding overseas operations continue. - FY2019-Q1WorsenedAnnual report
「Overseas, although the outlook remained uncertain due to issues surrounding protectionist trade policies and rising geopolitical risks, business remained firm, supported by strong capital investment appetite in the electronics sector in China and South Korea.」
Issues surrounding protectionist trade policies and heightened geopolitical risks have newly been identified as specific sources of uncertainty regarding overseas operations. - FY2018First statedAnnual report
「Overseas business activities involve risks including the existence or occurrence of economically adverse factors such as unexpected changes in laws and regulations, weak industrial infrastructure, and difficulties in recruiting and retaining personnel, as well as social or political turmoil caused by terrorism, war or other factors. If these risks materialize, overseas business activities may be disrupted, potentially affecting the performance and future plans of the group.」
With the expansion of its overseas operations, the company newly identified and disclosed changes in laws and regulations, industrial infrastructure, personnel retention, and terrorism, war and other social and political instability as risks specific to overseas operations.