Political, Regulatory, Personnel and Other Risks Associated with Overseas Expansion
First written in FY2016. 2 of 5 entries say "Mitigated", first in FY2018. Latest entry: FY2023.
The whole theme swung hardest in 2024: 6 of 10 companies on the "Worse" side.
1 other company's latest entry also says "Mitigated".
- FY2023MitigatedAnnual report
「We are working to reduce risks associated with shortages and price increases for parts and other items caused by the impact of COVID-19 and geopolitical risks, including by placing orders early.」
Early ordering of parts and other items has been added as a specific mitigation measure for overseas and procurement-related risks. - FY2021ReframedAnnual report
「1. Unexpected changes in laws or regulations 2. Political and economic instability 3. Difficulty securing personnel 4. Unfavorable tax reforms 5. Social disruption caused by terrorism, war, epidemics, natural disasters and other factors」
Epidemics have been explicitly added to the list of overseas business risks, broadening the scope of social disruption risks surrounding overseas construction and local projects. - FY2018MitigatedAnnual report
「In recent years, overseas construction results have been trending downward, and we recognize that so-called “overseas-related risks” are lower than in the past. However, potential risks continue to exist, particularly in connection with subsidiaries in Indonesia and Malaysia.」
While overseas-related risks are recognized as lower than in the past due to the decline in overseas construction results, potential risks associated with local subsidiaries continue. - FY2017RestatedAnnual report
「These overseas businesses carry the following risks, which could adversely affect operating performance and financial condition: 1. Unexpected changes in laws or regulations; 2. Political and economic instability; 3. Difficulty securing personnel; 4. Unfavorable tax reforms; and 5. Social disruption caused by terrorism, war and other factors.」
The risks of regulatory, political and economic, personnel, tax and social disruption associated with overseas operations have been reiterated. - FY2016First statedAnnual report
「These overseas businesses carry the following risks, which could adversely affect operating performance and financial condition: 1. Unexpected changes in laws or regulations; 2. Political and economic instability; 3. Difficulty securing personnel; 4. Unfavorable tax reforms; and 5. Social disruption caused by terrorism, war and other factors.」
Alongside the expansion of overseas operations, regulatory, political and economic, personnel, tax and social disruption risks have been disclosed.