Risks Relating to Laws and Regulations, Human Resources, Labor, and Social Unrest Associated with Overseas Expansion
First written in FY2016. 6 of 13 entries say "Materialised", first in FY2022-Q2. Latest entry: FY2026.
DaikyoNishikawa moved to the "Worse" side of this theme in 2021, 1 year 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
「In addition to internal risks related to business activities, expansion into these overseas markets entails the following risks. If any of these events occur, they could affect our Group’s financial condition and operating results: ① Unexpected changes in laws and regulations, and changes in tax systems that have an adverse impact ② Adverse political or economic factors, including tariff policies ③ Difficulty recruiting and retaining personnel, and risks related to labor issues ④ Adverse effects on business activities due to inadequate social infrastructure ⑤ Geopolitical risks, natural disasters, infectious diseases and other causes of social or economic disruption」
The risks of overseas expansion have been organized and expanded to include tax systems, tariff policies, inadequate infrastructure and geopolitical risks. - FY2023RestatedAnnual report
「To minimize these risks, we obtain information promptly from lawyers, audit firms and others familiar with local conditions and work to implement countermeasures as quickly as possible. However, if these risks materialize, difficulties such as procuring materials and production, or suspension of sales, may arise and could affect our Group’s operating results and other aspects of its performance.」
We continue to pursue a response policy utilizing local experts for the risks associated with overseas expansion, including regulations, human resources, labor disputes and social disruption. - FY2023-Q3MaterialisedAnnual report
「In China and South Korea, sales were boosted by the impact of currency translation, among other factors. However, due to difficulties procuring automobile parts caused by lockdowns in China, net sales decreased by ¥707 million, or 12.6%, year on year to ¥4,890 million.」
Lockdowns in China and difficulties procuring parts actually occurred, reducing net sales in the China and South Korea segment by 12.6% year on year. The risk continues to be reflected in business results. - FY2023-Q2MaterialisedAnnual report
「In China and South Korea, sales were boosted by the impact of currency translation, among other factors. However, due to difficulties procuring automobile parts caused by lockdowns in China, net sales decreased by ¥598 million, or 15.8%, year on year to ¥3,179 million.」
Lockdowns in China and difficulties procuring automobile parts actually occurred, reducing net sales in the China and South Korea segment by 15.8% year on year. - FY2023-Q1MaterialisedAnnual report
「The stagnation of economic activity caused by lockdowns overseas due to COVID-19 made it difficult for automotive manufacturers to procure some parts for domestic production, resulting in work stoppages and other issues. The company was consequently required to implement measures including temporary closures, and uncertainty continued.」
Lockdowns continued in regions including our overseas markets, causing difficulties in procuring parts and business closures. The risk of social disruption associated with overseas operations continued to materialize. - FY2022MaterialisedAnnual report
「During the fiscal year under review (1 April 2021 to 31 March 2022), efforts to achieve a sustainable society, including carbon neutrality and the SDGs, and the development of next-generation automobiles accelerated further. At the same time, the prolonged global impact of COVID-19, including overseas lockdowns and states of emergency in Japan, together with the global semiconductor shortage and other factors, caused economic activity to stagnate as automobile manufacturers experienced lower sales and production stoppages, significantly affecting our business activities.」
Overseas lockdowns, states of emergency in Japan, and lower sales and production stoppages caused by the semiconductor shortage actually occurred, affecting business activities, including overseas operations. - FY2022-Q3MaterialisedAnnual report
「During the third quarter of the fiscal year under review (1 April 2021 to 31 December 2021), the spread of COVID-19 led to lockdowns overseas, including in Southeast Asia, and the declaration of a state of emergency in Japan. In addition, the global semiconductor shortage and other factors affected the economy, and uncertainty about the outlook continued.」
Lockdowns actually occurred in Southeast Asia and other regions, including our overseas markets, and the risk of social disruption associated with overseas operations continued to materialize. - FY2022-Q2MaterialisedAnnual report
「As the COVID-19 pandemic spread, lockdowns were imposed overseas, including in Southeast Asia, while Japan issued states of emergency. As a result, uncertainty about the outlook continued.」
Lockdowns actually occurred in Southeast Asia and other overseas markets where we operate, making the risk of social disruption associated with overseas operations a reality. - FY2021RestatedAnnual report
「To minimize these risks, we obtain information promptly from lawyers, audit firms and others familiar with local conditions and work to implement countermeasures as quickly as possible. However, if these risks materialize, difficulties such as procuring materials and production, or suspension of sales, may arise and could affect our Group’s operating results and other aspects of its performance.」
We continue to address the risks associated with overseas expansion, including regulations, human resources, labor disputes and social disruption, by utilizing local experts. - FY2020RestatedAnnual report
「To minimize these risks, we also obtain information promptly from lawyers, audit firms and others familiar with local conditions, and work to implement countermeasures as quickly as possible.」
The risks associated with overseas expansion, including regulations, human resources, labor disputes and social disruption, and responses by local experts, continue. - FY2019RestatedAnnual report
「To minimize these risks, we also obtain information promptly from lawyers, audit firms and others familiar with local conditions, and work to implement countermeasures as quickly as possible.」
The risks associated with overseas expansion, including regulations, human resources, labor disputes and social disruption, and the response of obtaining information from local experts, continue. - FY2017RestatedAnnual report
「To minimize these risks, we also obtain information promptly from lawyers, audit firms and others familiar with local conditions, and work to implement countermeasures as quickly as possible.」
The risks associated with overseas expansion, including regulations, human resources, labor disputes and social disruption, and the policy of obtaining information from local experts, continue. - FY2016First statedAnnual report
「In pursuing global expansion, we may face the following risks in the countries where we operate: a Unexpected changes in laws or regulations b Difficulty recruiting and retaining personnel c Labor disputes, including strikes d Social disruption caused by terrorism, war or other factors」
Multiple country-specific risks associated with operations in China and South Korea, ASEAN and Central America are listed.