Country Risks Associated with Overseas Transactions and Operations
First written in FY2016. 11 of 31 entries say "Worsened", first in FY2021. Latest entry: FY2026.
The whole theme swung hardest in 2025: 47 of 94 companies on the "Worse" side.
- FY2026MaterialisedAnnual report
「Meanwhile, cargo bound for Dubai was affected by the de facto closure of the Strait of Hormuz.」
The geopolitical risk associated with overseas transactions and overseas bases materialized in the form of an impact on cargo bound for Dubai due to the de facto closure of the Strait of Hormuz. - FY2026-H1WorsenedAnnual report
「In the Group’s business markets, countries have strategically designated critical minerals from the perspective of economic security, and efforts to secure exclusive control over resources have intensified. The importance of resource circulation has also increased further in Japan.」
The strategic designation of critical minerals by various countries and intensifying efforts to secure exclusive control over resources were explicitly identified as new external factors affecting overseas transactions and resource procurement. - FY2025-H1WorsenedAnnual report
「During the interim consolidated accounting period, the outlook remained uncertain due to China’s overproduction and exports of steel products, an unstable US dollar exchange rate resulting from US monetary policy, and concerns that the transition in energy policies in various countries could slow.」
With respect to overseas transactions and the overseas business environment, China’s overproduction and exports, an unstable US dollar exchange rate and concerns about a slowdown in the transition to energy policies in various countries were identified as new factors contributing to uncertainty. - FY2024RestatedAnnual report
「In addition, because the Group has a local subsidiary in Chile, a branch in the Netherlands and representative offices in Vietnam and the United Kingdom, its operating results and financial position may be affected by the economic conditions in the countries where its business partners are located, as well as trade and commercial regulations, tax systems, unexpected changes in laws or regulations and differing interpretations thereof, political upheaval, war, outbreaks of infectious diseases and other factors.」
The risks related to economic conditions, institutions, political upheaval, war and infectious diseases associated with overseas transactions through overseas subsidiaries, branches and representative offices were reaffirmed. - FY2024-Q3WorsenedAnnual report
「During the first nine months of the current fiscal year, the outlook remained uncertain due to the prolonged slump in China’s real estate market, unstable global conditions and concerns about an economic downturn accompanying prolonged global inflation. Global crude steel production remained weak, while domestic crude steel production remained firm.」
The prolonged slump in China’s real estate market, unstable global conditions, prolonged inflation and concerns about an economic recession continued to contribute to uncertainty in the overseas business environment, while global crude steel production also remained weak. - FY2024-Q2MitigatedAnnual report
「In the distribution of recycled resources, procurement conditions for metal scrap remained sluggish, but sales conditions recovered internationally and the volume handled increased.」
Although procurement conditions for metal scrap remained sluggish, the recovery in international sales conditions increased the volume handled and partly eased the deterioration in overseas trading conditions. - FY2024-Q1WorsenedAnnual report
「During the first quarter of the current fiscal year, the outlook remained uncertain due to the prolonged slump in China’s real estate market, the emergence of geopolitical risks in various regions worldwide and soaring energy prices. However, steel demand was recovering in some regions, and global crude steel production increased.」
In addition to the existing risks related to overseas economic conditions and geopolitics, the prolonged slump in China’s real estate market and soaring energy prices continued to be factors contributing to uncertainty. - FY2023-Q3WorsenedAnnual report
「During the first nine months of the current fiscal year, global and Japanese crude steel production fell below the year-earlier period against a backdrop of China’s zero-COVID policy, Europe’s energy crisis and global inflation. Exports of ferrous scrap also declined from the year-earlier period due to these factors, as well as low domestic generation of scrap.」
China’s zero-COVID policy, Europe’s energy crisis and global inflation caused crude steel production and ferrous scrap exports to fall below the year-earlier period, making the deterioration in the business environment, including overseas transactions, more apparent. - FY2023-Q1WorsenedAnnual report
「During the first quarter of the current fiscal year, steel demand declined globally in the Group’s business markets due to China’s economic slowdown, Europe’s energy crisis and continuing supply chain disruptions.」
Global steel demand declined due to overseas economic conditions, Europe’s energy crisis and supply chain disruptions, and deterioration in the business environment, including overseas transactions, was reported. - FY2022-Q3WorsenedAnnual report
「Recently, concerns about the supply of semi-finished steel products and other materials due to the situation in Russia and Ukraine have driven up resource prices overall. At the end of the third quarter of the current fiscal year, the price of ferrous scrap reached ¥64,500 per tonne, the highest level since 2008. Uncertainty has continued due to the renewed spread of COVID-19 infections, heightened geopolitical risks and other factors.」
In addition to the existing risks associated with overseas transactions and overseas bases, supply concerns arising from the situation in Russia and Ukraine and heightened geopolitical risks were explicitly identified. - FY2022-Q1RestatedAnnual report
「The challenging business environment continued, due to soaring ocean freight rates caused by difficulties in arranging vessels, as well as stagnation in exports of metal scrap to overseas markets accompanying the renewed spread of COVID-19 infections.」
Exports to overseas markets have remained sluggish amid the renewed spread of COVID-19 infections, reaffirming the challenging overseas trading environment. - FY2021WorsenedAnnual report
「In addition, because the Group has local subsidiaries in the United Arab Emirates, Chile and Uganda, its operating results and financial position may be affected by the economic conditions in the countries where its business partners are located, as well as trade and commercial regulations, tax systems, unexpected changes in laws or regulations and differing interpretations thereof, political upheaval, war, outbreaks of infectious diseases and other factors.」
The outbreak of infectious diseases was explicitly added to the existing risks related to overseas economies, institutions and political upheaval. - FY2021-Q2MaterialisedAnnual report
「Although used-vehicle demand in major destination countries was affected by the prolonged lockdowns in some parts of Chile and a decline in sales of used truck parts to Southeast Asia, which had been strong in the same period of the previous year, the recovery from the decline in the fourth quarter of the previous fiscal year was rapid, and handling volume for used vehicles and used auto parts remained above initial expectations.」
While Chile’s prolonged lockdowns and continued weakness in component sales to Southeast Asia persisted, the volume of used vehicles and parts handled recovered from the previous quarter and exceeded initial expectations. - FY2021-Q1MaterialisedAnnual report
「Although used-vehicle demand in major destination countries was affected by the continued lockdowns in some parts of Chile and a decline in sales of used truck parts to Southeast Asia, which had been strong in the same period of the previous year, the recovery from the decline in the fourth quarter of the previous fiscal year was rapid, and handling volume remained above initial expectations.」
While the impact of lockdowns in Chile and the decline in parts sales to Southeast Asia continued to affect the overseas business, handling volume recovered from the previous quarter and exceeded initial expectations. - FY2020-Q3MaterialisedAnnual report
「Demand for used vehicles in Chile, one of the major destination countries, remained weak, and sales of used vehicles and used engines in Chile and Uganda were sluggish in March due to the impact of COVID-19. However, increased sales of used trucks to Southeast Asia, the recovery, centered on Dubai-bound services, in the handling volume of logistics outsourcing services that had been sluggish in the same period of the previous year, and the effect of fixed-cost reductions from downsizing used-vehicle loading yards contributed to earnings.」
Sales of used vehicles and used engines in Chile and Uganda were sluggish due to the impact of COVID-19, and the deterioration in the overseas transaction environment materialized. Meanwhile, sales to Southeast Asia and the recovery of logistics outsourcing services contributed to earnings. - FY2020-Q2MitigatedAnnual report
「Although demand for used vehicles in Chile, one of the major destination countries, remained weak, increased sales to Southeast Asia and improved earnings in the used vehicle sales and maintenance business in Uganda, together with the recovery in logistics outsourcing service volume, which had been sluggish in the same period of the previous year due to regulations in Myanmar, contributed to earnings.」
Although demand for used vehicles in Chile remained weak, the deterioration in earnings associated with overseas operations was mitigated by sales to Southeast Asia, improved earnings in the Uganda business and the recovery of logistics outsourcing services in Myanmar. - FY2020-Q1MitigatedAnnual report
「Although demand for used vehicles in major destination countries remained weak, increased sales of used trucks to Southeast Asia through new customer development, the recovery of logistics outsourcing services that had been sluggish in the same period of the previous year due to regulations in major destination countries, and the effect of fixed-cost reductions from downsizing yards contributed to earnings.」
Demand and regulatory risks in major destination countries remain, but earnings improved through new customer development, increased sales to Southeast Asia, recovery in logistics outsourcing services and fixed-cost reductions from downsizing yards. - FY2019-Q3RestatedAnnual report
「In the used vehicle and used auto parts businesses, the export environment deteriorated due to weak demand and regulations in destination countries, and performance remained sluggish.」
The deterioration in the export environment for used vehicles and used auto parts due to weak demand and regulations in destination countries has continued. - FY2019-Q2MaterialisedAnnual report
「In the used vehicle and used auto parts businesses, the export environment deteriorated due to weak demand and regulations in destination countries, resulting in lower earnings.」
The deterioration in the overseas transaction environment caused by weak demand and regulations in destination countries continued to materialize as lower earnings in the used vehicle and used auto parts businesses. Import regulations in China are also cited as a factor behind sluggish exports of iron scrap and other materials. - FY2019-Q1MaterialisedAnnual report
「In the used vehicle and used auto parts businesses, the export environment deteriorated due to weak demand and regulations in destination countries, and used vehicle sales and logistics services remained sluggish.」
Weak demand and regulations in destination countries materialized as sluggish used vehicle sales and logistics services, revealing the deterioration in the overseas transaction environment. - FY2018MitigatedAnnual report
「Against this backdrop, collection and production of recycled resources at factories and export transactions, taking advantage of upswings in the respective markets, remained strong and made a significant contribution to earnings. Sales of used vehicles and used auto parts also remained firm, while earnings increased as fixed costs were reduced.」
Export transactions and sales of used vehicles and used auto parts remained strong or firm, mitigating the deterioration in earnings associated with overseas transactions. - FY2018-Q2MitigatedAnnual report
「Against this backdrop, collection and production of recycled resources at factories, iron scrap export transactions and sales of used vehicles and used auto parts, taking advantage of upswings in the respective markets, remained strong and made a significant contribution to earnings.」
Iron scrap export transactions and sales of used vehicles and used auto parts remained strong, mitigating the deterioration in earnings associated with overseas transactions. - FY2018-Q1MitigatedAnnual report
「Against this backdrop, collection and production of recycled resources at factories, iron scrap export transactions and sales of used vehicles and used auto parts, taking advantage of upswings in the respective markets, remained strong and made a significant contribution to earnings.」
Iron scrap export transactions and sales of used vehicles and used auto parts remained strong, mitigating the deterioration in earnings associated with overseas transactions. - FY2017RestatedAnnual report
「The Group’s performance and financial position may be affected by the economic conditions in the countries of its business partners, as well as trade and commercial regulations, tax systems, unexpected changes in laws or regulations and differences in their interpretation, political upheaval, war and other factors, because it has local subsidiaries in the United Arab Emirates, Chile and Uganda.」
The company reiterates the country risks associated with overseas sales, imports, triangular trade and overseas subsidiaries, including economic, institutional and political risks. - FY2017-Q3MitigatedAnnual report
「Earnings from iron scrap export sales also increased from the previous year through sales that capitalized on market conditions.」
Within overseas transactions, iron scrap export sales generated higher earnings than in the previous year by capitalizing on market conditions. This does not state that the institutional risks associated with overseas subsidiaries or individual countries were resolved, but that the earnings performance of export transactions improved. - FY2017-Q2MaterialisedAnnual report
「Although sales of iron scrap exports made a significant contribution to earnings from November onward by capitalizing on rising markets, they did not make up for the weak first half, and earnings declined from the previous year. Sales of used vehicles and used auto parts also remained sluggish due to deteriorating overseas market conditions.」
Deteriorating overseas market conditions continued to materialize as sluggish sales of used vehicles and used auto parts, while earnings from iron scrap export sales declined from the previous year because of weakness in the first half. - FY2017-Q1MaterialisedAnnual report
「The deterioration in the export environment had a significant impact through weak iron scrap export transactions, worsening earnings. Sales of used vehicles and used auto parts also remained sluggish due to deteriorating overseas market conditions. As a result, revenue was ¥6,237 million, down 28.6% year on year.」
Deterioration in overseas transactions and overseas market conditions materialized as weak iron scrap exports and sluggish sales of used vehicles and used auto parts. The deterioration emerged as weaker export conditions and overseas market conditions, rather than as political upheaval or regulatory changes in specific countries. - FY2016First statedAnnual report
「The Group has a high proportion of overseas sales and engages in imports and triangular trade. It also has local subsidiaries in the United Arab Emirates, Chile and Uganda. As a result, its performance and financial position may be affected by the economic conditions in the countries of its business partners, as well as trade and commercial regulations, tax systems, unexpected changes in laws or regulations and differences in their interpretation, political upheaval, war and other factors.」
The company indicates country-specific economic, institutional and political risks associated with sales to Asia, South America, Africa and other regions and with its overseas subsidiaries.