Risk of weaker export competitiveness due to yen appreciation and overseas political and economic conditions
First written in FY2016. 18 of 34 entries say "Worsened", first in FY2017-Q2. Latest entry: 2026-11-12.
Kikukawa Enterprise moved to the "Worse" side of this theme in 2019, the same year as the typical company in this theme.
The whole theme swung hardest in 2025: 72 of 116 companies on the "Worse" side.
22 other companies' latest entry also says "Materialised".
- FY2026WorsenedAnnual report
「During the fiscal year, international conditions were marked by a further deepening of divisions among countries with differing interests, while the intensification and prolongation of conflicts in various regions shook the global economy. In particular, escalating tensions in the Middle East drove up crude oil prices and had a serious impact across the entire supply chain.」
The company describes divisions among countries, the intensification and prolongation of conflicts, surging crude oil prices due to escalating tensions in the Middle East, and the serious impact on supply chains. The effects of overseas political and economic risks have emerged in the actual business environment. - FY2026-H1WorsenedAnnual report
「During the interim accounting period (1 April 2025 to 30 September 2025), Japan's economy was supported by conditions conducive to recovery, including substantial wage increases by many companies that prioritized human resources, the success of Expo 2025 Osaka, Kansai and an increase in inbound tourists. However, corporate earnings prospects remained uncertain due to persistently high consumer prices and the need to respond to U.S. trade policies.」
In addition to persistently high consumer prices, the company identifies the outlook for U.S. trade policy as a factor of uncertainty. - FY2025WorsenedAnnual report
「The future operating environment is expected to remain challenging due to the impact of an unstable international situation, including the difficulty of assessing tariff policies in individual countries, rising labor costs resulting from labor shortages, and persistently high energy prices, consumer prices and logistics costs.」
In addition to the previously identified division between countries, elevated resource prices and monetary tightening, tariff policies in individual countries, labor costs and persistently high logistics costs were explicitly identified as destabilizing factors. - FY2025-H1RestatedAnnual report
「During the interim accounting period (1 April 2024 to 30 September 2024), the international situation remained uncertain, with divisions between countries with conflicting interests persisting and higher energy resource prices resulting from those divisions creating downside risks to economic activity.」
The prolonged divisions between countries, higher energy resource prices and downside risks to economic activity continue to be identified as factors of uncertainty in the overseas business environment. Higher prices and related developments are actually occurring in the business environment. - FY2024WorsenedAnnual report
「The international situation during the fiscal year remained uncertain, with serious divisions between countries with conflicting interests persisting, along with inflation caused by globally elevated raw material and energy prices and downside risks to economic activity associated with monetary tightening by governments worldwide.」
The prolonged divisions between countries, higher raw material and energy prices, inflation and downside risks to economic activity caused by monetary tightening continue to be cited. The price increases and monetary tightening are actually occurring in the business environment. - FY2024-Q3WorsenedAnnual report
「During the cumulative third-quarter period (1 April 2023 to 31 December 2023), the serious divisions between countries with conflicting interests persisted, while the outlook remained uncertain due to inflation caused by globally elevated raw material and energy prices and monetary tightening, particularly in Europe and the United States.」
The prolonged divisions between countries, higher raw material and energy prices, inflation and monetary tightening, particularly in Europe and the United States, continue to be identified as factors of concern in the overseas political, economic and business environment. - FY2024-Q2WorsenedAnnual report
「During the cumulative second-quarter period (1 April 2023 to 30 September 2023), the international situation became increasingly serious as divisions between countries with conflicting interests deepened, while disruptions in China's real estate industry, which had led the global economy since the Lehman shock, cast a shadow over the outlook. However, there continue to be concerns that surging energy and raw material prices, supply constraints in supply chains and downside risks to overseas economies resulting from global monetary tightening could suppress Japan's economic recovery.」
Divisions between countries, disruptions in China's real estate industry, higher energy and raw material prices, supply chain constraints and global monetary tightening were identified as factors of concern in the overseas political, economic and business environment. - FY2024-Q1WorsenedAnnual report
「There are concerns that surging prices for energy and raw materials, supply constraints and downside risks to overseas economies resulting from global monetary tightening could suppress Japan's economic recovery.」
Higher energy and raw material prices, supply constraints and downside risks to overseas economies resulting from global monetary tightening were specifically identified as concerns regarding the economic and overseas business environment. The current price increases and supply constraints are actually occurring. Quantified: false; actually occurred: true. - FY2023-Q3The yen's depreciation paused, while the global economy slowed.Annual report
「During the cumulative third-quarter period (1 April 2022 to 31 December 2022), the yen's depreciation trend began to level off as COVID-19 isolation policies were lifted in various parts of the world. However, international conflicts and other factors have driven up resource prices such as crude oil, and signs of a slowdown in the global economy are becoming increasingly clear.」
The pause in the yen's depreciation was presented as a factor easing the export environment, while it was noted that higher resource prices against a backdrop of international conflicts and a slowdown in the global economy were becoming increasingly evident. - FY2023-Q2MaterialisedAnnual report
「As an effect of rising geopolitical risks, business activities in Russia have been restricted. Russia has abundant timber resources, is an important market for the global timber industry and has a certain degree of influence on Japan's timber industry.」
In connection with international conflicts, it was specifically stated that business activities in Russia are actually restricted. - FY2023-Q1WorsenedAnnual report
「During the cumulative first-quarter period, shortages of various materials stemming from the semiconductor shortage, together with the effects of international conflicts whose path toward resolution remains impossible to foresee, have driven up resource prices such as crude oil. Rapid yen depreciation caused by interest-rate differentials between Japan and overseas has also continued, resulting in a sharp increase in costs across the manufacturing sector.」
It was noted that international conflicts, higher resource prices, rapid yen depreciation driven by interest-rate differentials and sharp cost increases across the manufacturing sector continue, specifying the scope of the effects of overseas political and economic and foreign exchange risks. - FY2022WorsenedAnnual report
「In the company's export transactions for manufactured machinery, if exchange rates remain significantly biased toward yen appreciation, this could reduce selling prices and international competitiveness. Conversely, if exchange rates remain significantly biased toward yen depreciation, procurement costs necessary for operating the business could become inflationary. Each could adversely affect business performance. In addition, international conflicts that have already emerged have made travel extremely difficult in some regions.」
In addition to the conventional risk of yen appreciation, inflation in procurement costs due to yen depreciation and difficulties in travel caused by international conflicts that have emerged were explicitly identified as risks, broadening the scope of risks. - FY2021WorsenedAnnual report
「As measures to prevent the spread of COVID-19, travel to countries around the world is currently subject to significant restrictions, making it extremely difficult to reasonably predict how long the effects will continue.」
Travel restrictions to countries around the world and the difficulty of predicting how long their effects will last continue, as do constraints on overseas sales and installation activities. - FY2021-Q3WorsenedAnnual report
「However, during the current fiscal year, restrictions on travel to and from overseas due to the spread of COVID-19 and the marked stagnation of economic activity in individual countries have significantly disrupted the company's overseas product installation and sales activities. The progress toward containing the infection in the next fiscal year will also have an extremely significant impact on business performance.」
It was noted that restrictions on travel to and from overseas due to COVID-19 and the marked stagnation of economic activity in individual countries have actually caused significant disruption to overseas product installation and sales activities. - FY2020WorsenedAnnual report
「As measures to prevent the spread of COVID-19, travel to countries around the world is currently subject to significant restrictions, making it extremely difficult to reasonably predict how long the effects will continue.」
Travel restrictions to countries around the world due to COVID-19 measures, and the difficulty of predicting how long their effects will last, were newly stated explicitly, indicating deterioration in the risks to overseas operations. The travel restrictions are actually in effect. - FY2020-Q3RestatedAnnual report
「Overseas, caution is warranted because geopolitical risks, including U.S.-China trade frictions and increasingly tense relations in the Middle East, could have a negative impact on economic conditions such as foreign exchange and stock markets. However, the moderate expansion of the global economy is expected to generate resilient demand for capital investment.」
Caution continues regarding the possibility that geopolitical risks, including U.S.-China trade frictions and relations in the Middle East, could adversely affect economic conditions. The moderate expansion of the global economy and demand for capital investment were also mentioned. - FY2020-Q2WorsenedAnnual report
「Overseas, caution is warranted because trade frictions between the United States and China and increasingly tense relations between Japan and South Korea could have a negative economic impact. However, the moderate expansion of the global economy is expected to generate resilient demand for capital investment.」
In addition to U.S.-China trade frictions, increasingly tense relations between Japan and South Korea were newly identified as a factor warranting caution in the overseas economic environment. - FY2020-Q1WorsenedAnnual report
「During the cumulative first-quarter period, economic conditions were such that concerns about the business environment caused by intensifying trade frictions between the United States and China were spreading across a wide range of industries both domestically and overseas.」
It was noted that concerns about the business environment caused by intensifying trade frictions between the United States and China were spreading across a wide range of domestic and overseas industries, increasing uncertainty surrounding overseas political and economic conditions. - FY2019WorsenedAnnual report
「Factors causing instability, including trade frictions between the United States and China and the UK's withdrawal from the EU, have rapidly heightened uncertainty about the outlook.」
Trade frictions between the United States and China and the UK's withdrawal from the EU were cited as new destabilizing factors, and it was noted that uncertainty about overseas political and economic conditions had increased. - FY2019-Q2RestatedAnnual report
「Overseas operations also remained generally firm.」
The view that overseas political and economic conditions are generally firm continues to be held. Dependence on overseas resource policies and foreign exchange trends is noted separately. - FY2019-Q1MitigatedAnnual report
「Overseas operations also remained generally firm, including in the United States, Europe and China, with no major political disruptions.」
Overseas political and economic conditions were described as generally firm, with no major political disruptions, indicating that uncertainty surrounding overseas conditions had eased in the current quarter compared with the previous period. Separately, the company's dependence on overseas resource policies and foreign exchange trends continues to be noted. - FY2018RestatedAnnual report
「If the exchange rate for exports of the company's manufactured machinery remains significantly biased toward yen appreciation, this could result in lower selling prices and international competitiveness or foreign exchange losses, potentially adversely affecting business performance.」
Yen appreciation, foreign exchange losses and political and economic conditions in export destination countries were reaffirmed as risks to overseas operations. - FY2018-Q3RestatedAnnual report
「Domestic operations are particularly affected by demand trends in the housing industry, while overseas operations are significantly affected by resource policies and foreign exchange trends in individual countries.」
The company reaffirmed its view that domestic housing demand, overseas resource policies and foreign exchange trends affect business performance. - FY2018-Q2RestatedAnnual report
「Domestic operations are particularly affected by demand trends in the housing industry, while overseas operations are significantly affected by resource policies and foreign exchange trends in individual countries.」
The company reaffirmed its view that the performance of its woodworking machinery business is affected by domestic housing demand, overseas resource policies and foreign exchange trends. - FY2018-Q1MitigatedAnnual report
「Overseas, the U.S. and European economies were generally on a moderate expansionary trend, while China also showed signs of recovery. Accordingly, the yen exchange rate against other currencies remained stable.」
The expansion of the U.S. and European economies, the recovery of the Chinese economy and the stability of the yen exchange rate were noted. Compared with the uncertainty caused by yen appreciation and overseas political and economic conditions through the previous period, external conditions improved in the current quarter. - FY2017RestatedAnnual report
「If the exchange rate remains significantly biased toward yen appreciation, this could result in lower selling prices and international competitiveness or foreign exchange losses, potentially adversely affecting business performance.」
Yen appreciation, foreign exchange losses and political and economic conditions in export destination countries were reiterated as risks to overseas operations. - FY2017-Q3The direction of the yen reversed, while uncertainty continued.Annual report
「Overseas, economic activity had been significantly unsettled by the decline in the international competitiveness of Japanese products resulting from the yen's appreciation since the beginning of the year, international conflicts arising from geopolitical risks in the Middle East, Russia and elsewhere, and slower economic growth in China and emerging markets. Following the unexpectedly significant outcome of the U.S. presidential election, however, the yen shifted to a depreciating trend toward year-end, making future economic conditions difficult to predict.」
In addition to noting the decline in international competitiveness caused by yen appreciation, it was noted that the yen's shift to depreciation toward year-end changed the direction of foreign exchange movements and made economic trends more difficult to predict. - FY2017-Q2WorsenedAnnual report
「Overseas, economic activity has also been significantly unsettled by uncertainty over the outcome of the U.S. presidential election, concerns about international conflicts and terrorism arising from geopolitical risks in the Middle East and elsewhere, and slower import growth in various countries as China's economic growth matures. As a result, the yen has continued to appreciate since the beginning of the year, reducing the international competitiveness of Japanese products.」
It was noted that geopolitical risks, the U.S. presidential election and slower Chinese imports, together with yen appreciation, have reduced the international competitiveness of Japanese products. - FY2017-Q1MaterialisedAnnual report
「As the yen appreciation trend since the beginning of the year accelerated, concerns about the international competitiveness of Japanese products increased.」
The yen appreciation trend actually progressed, increasing concerns about international competitiveness. A foreign exchange loss of ¥20.748 million was also recorded in the first quarter. - FY2016First statedAnnual report
「If the exchange rate remains significantly biased toward yen appreciation, this could result in lower selling prices and international competitiveness or foreign exchange losses, potentially adversely affecting business performance.」
Political and economic conditions in export destination countries, including terrorism, conflicts and fiscal crises, were also identified as risks in addition to foreign exchange fluctuations.