Political, regulatory and foreign-exchange risks associated with overseas operations
First written in FY2018. 3 of 4 entries say "Worsened", first in FY2022. Latest entry: FY2026.
Dexerials moved to the "Worse" side of this theme in 2022, 3 years after the typical company in this theme (2019).
The whole theme swung hardest in 2025: 73 of 117 companies on the "Worse" side.
46 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Against a backdrop of intensifying competition among countries for technological hegemony and stronger economic security policies by governments, global supply chains and sales markets are under structural pressure to be reorganized.」
The disclosure of overseas business risks was made more specific and expanded from the previous focus on political, regulatory and foreign-exchange risks to include geopolitical risks such as competition for technological hegemony, economic security, export controls, additional tariffs and contingencies in East Asia. - 2026-05-13WorsenedManagement Plan
「The difficulty of forecasting procurement and logistics conditions over the long term as geopolitical risks become more pronounced is another factor.」
For political, regulatory and other risks associated with overseas operations, geopolitical risk became more concrete as a source of long-term uncertainty in procurement and logistics conditions. - FY2022WorsenedAnnual report
「Overseas business involves risks including unstable political conditions, an uncertain economic environment, laws and regulations concerning the manufacture, import and export, and use of the Group's products, including environmental and safety regulations, labor-management issues and rising labor costs, high tariffs and stringent trade regulations, the unexpected enactment or amendment of laws, tax systems and policies or differences in their interpretation, unstable infrastructure that may cause interruptions or delays in essential services such as electricity, transportation and communications, exchange-rate fluctuations, differences in laws, regulations, business practices and practical treatment, terrorism, war, economic sanctions, trade friction, the global spread of infectious diseases and boycotts.」
The disclosure of overseas business risks was expanded to specifically include geopolitical and regulatory factors such as economic sanctions, trade friction, infectious diseases, and terrorism and war. - FY2018First statedAnnual report
「In addition to Japan, the Group has manufacturing sites in China, Europe and the United States. It is actively expanding its global operations in countries around the world, and a substantial portion of its sales comes from products sold to overseas customers.」
The company listed risks associated with the expansion of overseas sales and manufacturing sites, including political conditions, laws and tax systems, tariffs, infrastructure, labor issues, foreign exchange, and terrorism and war.