Potential Risks Associated with Overseas Expansion: Country-Specific Institutional, Economic and Supply-Side Factors
First written in FY2017. 4 of 22 entries say "Worsened", first in FY2018. Latest entry: FY2026.
Oiles moved to the "Worse" side of this theme in 2024, 5 years after the typical company in this theme (2019).
2 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「As a result, although overseas sales account for 39.0% of consolidated net sales, the Group may be affected by recessions in the countries where it manufactures and sells its products, the resulting decline in demand for its products, or changes in the political, social or economic systems of those countries.」
The overseas sales ratio rose from 38.0% in the previous fiscal year to 39.0%, increasing exposure to economic, regulatory and geopolitical risks in overseas countries. - FY2025WorsenedAnnual report
「As a result, although overseas sales account for 38.0% of consolidated net sales, the Group may be affected by recessions in the countries where it manufactures and sells its products, the resulting decline in demand for its products, or changes in the political, social or economic systems of those countries.」
The overseas sales ratio rose from 36.0% in the previous fiscal year to 38.0%, increasing exposure to economic, regulatory and geopolitical risks at overseas operations. - FY2024WorsenedAnnual report
「In particular, the Group recognizes geopolitical risks, such as conflicts in Ukraine and the Middle East in recent years, as material risks because of their potential impact. The Group seeks to minimize these risks through cooperation between the Corporate Planning Department and the business divisions responsible for overseas subsidiaries, close information exchange and continuous monitoring with overseas subsidiaries, and the collection and analysis of information on developments in each country.」
In addition to the situation in Ukraine, the company explicitly identifies conflicts in the Middle East as geopolitical risks, broadening the scope of risks associated with overseas operations. - FY2024-Q3Update to overseas sales ratioAnnual report
「Total overseas sales increased 5.5% from ¥17,351 million in the same period of the previous year (37.9%) to ¥18,305 million (37.6%).」
Although overseas sales increased, their share of consolidated net sales fell from 37.9% in the same period of the previous year to 37.6%. The company states that there have been no material changes in business and other risks related to economic conditions, regulations, and political and social conditions at its overseas operations. - FY2023MitigatedAnnual report
「In particular, the Group recognizes geopolitical risks, such as the conflict in Ukraine in recent years, as material risks because of their potential impact. The Group seeks to minimize these risks through cooperation between the Corporate Planning Department and the business divisions responsible for overseas subsidiaries, close information exchange and continuous monitoring with overseas subsidiaries, and the collection and analysis of information on developments in each country.」
Although the overseas sales ratio increased from the level following its rise to 36.1% compared with the previous fiscal year, the company has made its information exchange, continuous monitoring and country-by-country analysis concerning geopolitical risks more specific. - FY2023-Q2Overseas sales ratio increasedAnnual report
「Total overseas sales increased 5.8% from ¥10,028 million in the same period of the previous year (35.0%) to ¥10,609 million (37.1%).」
The overseas sales ratio rose from 35.0% in the same period of the previous year to 37.1%, increasing exposure to overseas operations. - FY2023-Q1Overseas sales ratio increasedAnnual report
「Total overseas sales increased 13.8% from ¥4,994 million in the same period of the previous year (35.1%) to ¥5,685 million (39.9%).」
The overseas sales ratio rose from 35.1% in the same period of the previous year to 39.9%, increasing exposure to overseas operations. - FY2022Overseas revenue ratio declinesAnnual report
「As a result, although overseas sales account for 32.6% of consolidated net sales, the Group may be affected by recessions in the countries where it manufactures and sells its products, the resulting decline in demand for its products, or changes in the political, social or economic systems of those countries.」
The overseas sales ratio fell from 32.7% in the previous fiscal year to 32.6%, while the company continues to identify risks related to economic conditions, regulations, and political and social conditions at its overseas operations. - FY2022-Q3Overseas sales ratio increasedAnnual report
「Total overseas sales increased 24.6% from ¥12,087 million in the same period of the previous year (31.7%) to ¥15,061 million (34.8%).」
The overseas sales ratio rose from 31.7% in the same period of the previous year to 34.8%, increasing exposure to overseas operations. - FY2022-Q2Overseas sales ratio increasedAnnual report
「Total overseas sales increased 50.6% from ¥6,657 million in the same period of the previous year (28.8%) to ¥10,028 million (35.0%).」
The overseas sales ratio rose from 28.8% in the same period of the previous year to 35.0%, increasing exposure to overseas operations. - FY2022-Q1Overseas sales ratio increasedAnnual report
「Total overseas sales increased 34.7% from ¥3,707 million in the same period of the previous year (33.0%) to ¥4,994 million (35.1%).」
The overseas sales ratio rose from 33.0% in the same period of the previous year to 35.1%, increasing exposure to overseas operations. - FY2021-Q3Overseas revenue ratio declinesAnnual report
「Total overseas sales decreased 23.0% from ¥15,689 million in the same period of the previous year (34.9%) to ¥12,087 million (31.7%).」
The overseas sales ratio fell from 34.9% in the same period of the previous year to 31.7%. The company states that there have been no material changes in the risks arising from economic conditions, regulations, supply conditions and other factors in overseas countries. - FY2021-Q2Overseas revenue ratio declinesAnnual report
「Total overseas sales decreased 36.4% from ¥10,473 million in the same period of the previous year (35.4%) to ¥6,657 million (28.8%).」
The overseas sales ratio fell from 35.4% to 28.8%. The company states that there have been no material changes in the risks arising from economic conditions, regulations, supply conditions and other factors in overseas countries. - FY2021-Q1RestatedAnnual report
「No new business or other risks arose during the cumulative first quarter of the current consolidated fiscal year. There were also no significant changes to the business or other risks described in the securities report for the previous consolidated fiscal year.」
The company states that there have been no material changes in the risks related to the regulatory, economic and supply environments in each country arising from overseas expansion. - FY2020-Q3Overseas revenue ratio declinesAnnual report
「Total overseas sales decreased 6.4% from ¥16,766 million in the same period of the previous year (36.9%) to ¥15,689 million (34.9%).」
The overseas sales ratio fell from 36.9% in the same period of the previous year to 34.9%. The company states that there have been no material changes in the risks arising from economic conditions, regulations and other factors in overseas countries. - FY2020-Q2Overseas revenue ratio declinesAnnual report
「Total overseas sales decreased 6.9% from ¥11,252 million in the same period of the previous year (37.8%) to ¥10,473 million (35.4%).」
The overseas sales ratio fell from 37.8% in the same period of the previous year to 35.4%. The company states that there have been no material changes in the risks arising from economic conditions, regulations and other factors in overseas countries. - FY2020-Q1Overseas revenue ratio declinesAnnual report
「Total overseas sales decreased 8.5% from ¥5.679 billion in the same period of the previous year, accounting for 38.2%, to ¥5.194 billion, accounting for 34.1%.」
The overseas sales ratio fell from 38.2% in the same period of the previous year to 34.1%. The company states that there have been no material changes in the risks arising from economic conditions, regulations and other factors in overseas countries. - FY2019Overseas revenue ratio declinesAnnual report
「As a result, although overseas sales account for 35.5% of consolidated net sales, the Group's operating results and financial position may be affected by recessions in the countries where the Group manufactures and sells its products, the resulting decline in demand for the Group's products, or changes in the political, social or economic systems of those countries. The overseas consolidated sales ratio is expected to continue rising year by year.」
The overseas sales ratio fell from 37.0% in the previous fiscal year to 35.5%, while the company continues to expect it to rise year by year and continues to identify risks at its overseas operations. - FY2019-Q3Overseas revenue ratio declinesAnnual report
「Total overseas sales increased 2.1% from ¥16.418 billion in the same period of the previous year, accounting for 37.6%, to ¥16.766 billion, accounting for 36.9%.」
The overseas sales ratio fell from 37.6% in the same period of the previous year to 36.9%. The company states that there have been no material changes in the risks themselves arising from economic conditions, regulations and other factors in overseas countries. - FY2019-Q2RestatedAnnual report
「No new business or other risks arose during the six-month cumulative period under review. There were also no material changes to the business and other risks described in the annual securities report for the previous consolidated fiscal year.」
The company states that there have been no material changes in the risks related to the regulatory, economic and supply environments in each country arising from overseas expansion. - FY2018WorsenedAnnual report
「As a result, although overseas sales account for 37.0% of consolidated net sales, the Group's operating results and financial position may be affected by recessions in the countries where the Group manufactures and sells its products, the resulting decline in demand for the Group's products, or changes in the political, social or economic systems of those countries. The overseas consolidated sales ratio is expected to continue rising year by year.」
The overseas sales ratio rose from 36.8% to 37.0%, and the company expects it to continue rising year by year. - FY2017First statedAnnual report
「Although overseas sales account for 36.8% of consolidated net sales, the Group's operating results and financial position may be affected by recessions in the countries where the Group manufactures and sells its products, the resulting decline in demand for the Group's products, or changes in the political, social or economic systems of those countries.」
Assuming that the overseas sales ratio will rise, the company systematically describes potential risks specific to overseas operations, including regulations, credit, personnel and labor costs, raw material procurement, and foreign exchange.