Geopolitical Risk Arising from Russia’s Invasion of Ukraine
First written in FY2022. 3 of 6 entries say "Restated". Latest entry: FY2024.
The whole theme swung hardest in 2024: 5 of 10 companies on the "Worse" side.
2 other companies' latest entry also says "Mitigated".
- FY2024MitigatedAnnual report
「We have discontinued all sales of main engines and parts to Russia since the partial revision of the Foreign Exchange and Foreign Trade Act Export Trade Control Order by the Ministry of Economy, Trade and Industry in March 2022. We had no previous record of main-engine sales to Russia, and parts sales were small, so the impact on parts revenue has been extremely limited.」
The company explicitly states that it has discontinued all sales to Russia, and characterizes the impact on revenue as extremely limited given the prior suspension of parts shipments. The risk of secondary increases in raw-material and parts prices due to soaring resource costs remains. - FY2024-Q3RestatedAnnual report
「The global economy remains highly uncertain due to continued and prolonged monetary tightening in various countries, the prolonged situation in Ukraine, and the emergence of geopolitical risks in the Middle East, among other factors.」
The prolonged situation in Ukraine, together with monetary tightening and geopolitical risks in the Middle East, continues to create uncertainty for the global economy. - FY2023RestatedAnnual report
「The first risk is the suspension of direct transactions with Russia. Although the amount is small, we have suspended shipments of engine parts that had been ordered and were scheduled for dispatch. The second risk is a surge in the prices of resources such as energy and raw materials.」
The company continues to identify the suspension of direct transactions with Russia and shipments of ordered parts, as well as soaring energy and raw-material costs, as risks. - FY2023-Q3RestatedAnnual report
「During the first 3 quarters of the fiscal year, Japan's economy showed signs of a recovery in personal consumption as restrictions on activity related to COVID-19 were eased. However, uncertainty about the outlook persisted because of high inflation driven by prolonged tensions in Ukraine and surging resource prices, as well as concerns over slowing growth in overseas economies.」
The prolonged situation in Ukraine and higher prices resulting from soaring resource costs continue to create uncertainty about the outlook, alongside a recovery in personal consumption. - FY2023-Q1WorsenedAnnual report
「The global economy had been on a recovery path, with the Omicron variant expected to subside despite inflation concerns, but the acceleration of inflation caused by higher resource prices following the sudden Ukraine crisis has reduced personal consumption and cast a shadow over the post-pandemic economic recovery scenario.」
The company states that higher resource prices associated with the Ukraine crisis have accelerated inflation, resulting in a decline in personal consumption. - FY2022First statedAnnual report
「The first risk is the suspension of direct transactions with Russia. Although the amount is small, we have suspended shipments of engine parts that had been ordered and were scheduled for dispatch. The second risk is a surge in the prices of resources such as energy and raw materials.」
The suspension of direct transactions with Russia and shipments of ordered engine parts has already occurred. The company identifies downward pressure on prices due to higher resource costs, delays in new-vessel construction, and the potential for higher costs and compressed margins as risks.