Risk of overseas laws and regulations and political and economic instability
First written in FY2016. 13 of 27 entries say "Worsened", first in FY2019-Q3. Latest entry: 2026-05-11.
The whole theme swung hardest in 2025: 47 of 94 companies on the "Worse" side.
- 2026-05-11WorsenedRevision of earnings forecasts
「Looking ahead, the business environment surrounding the Group is expected to remain highly uncertain, owing to higher trade costs resulting from the U.S. government’s tariff policies, soaring resource prices and inflation, sharp foreign-exchange fluctuations, and expanding geopolitical risks amid heightened tensions in the Middle East.」
In addition to the previous uncertainties related to overseas economies and geopolitics, higher trade costs resulting from U.S. tariff policies were identified as a specific source of uncertainty. - FY2025WorsenedAnnual report
「During the consolidated fiscal year, economic conditions remained uncertain due to sharp fluctuations in exchange rates resulting from changes in monetary policy in various countries, heightened geopolitical risks caused by escalating tensions in the Middle East, and the effects of protectionist policies in the United States, among other factors.」
In addition to the previously identified factors contributing to uncertainty in overseas economies, geopolitical risks caused by escalating tensions in the Middle East and the effects of protectionist policies in the United States are newly disclosed. - FY2025-H1WorsenedAnnual report
「During the interim consolidated accounting period, economic conditions remained uncertain due to sharp fluctuations in exchange rates resulting from changes in monetary policy in various countries and heightened geopolitical risks caused by escalating tensions in the Middle East.」
In addition to the previously identified uncertainty surrounding overseas economic and political conditions, heightened geopolitical risks caused by escalating tensions in the Middle East are identified as a new factor contributing to uncertainty. - FY2024-Q3WorsenedAnnual report
「During the cumulative third quarter of the fiscal year, economic conditions showed signs of a gradual recovery as normalization progressed following the easing of activity restrictions related to COVID-19. However, uncertainty persisted due to risks of an economic slowdown arising from new geopolitical risks and the continued implementation of global monetary tightening policies.」
While normalization progressed following the easing of activity restrictions related to the pandemic, new geopolitical risks and the risk of an economic slowdown resulting from continued global monetary tightening were identified as additional factors contributing to uncertainty. - FY2024-Q2RestatedAnnual report
「During the cumulative second quarter of the fiscal year, economic conditions showed signs of a gradual recovery as normalization progressed following the easing of activity restrictions related to COVID-19. However, uncertainty persisted due to risks of an economic slowdown arising from the continuation of global monetary tightening and inflation.」
While economic activity continued to normalize, uncertainty caused by global monetary tightening, inflation and the risk of an economic slowdown continues to be disclosed. - FY2023RestatedAnnual report
「While signs of a gradual recovery were seen, the economy remained uncertain due to soaring raw material and energy prices against the backdrop of the situation in Ukraine, inflation and sharp exchange-rate fluctuations resulting from monetary tightening by central banks around the world.」
The uncertainty of the business environment, including overseas conditions, due to the situation in Ukraine, raw material and energy prices, inflation and monetary tightening continues to be disclosed. - FY2023-Q3RestatedAnnual report
「Meanwhile, uncertainty about the outlook continued due to soaring raw material prices and inflation against the backdrop of the situation in Ukraine and other factors, as well as sharp exchange rate fluctuations resulting from interest rate hikes and policies to reduce monetary easing by central banks in various countries.」
The business environment, including overseas conditions, continues to be described as uncertain due to the situation in Ukraine, inflation and exchange-rate fluctuations caused by monetary tightening. - FY2023-Q2WorsenedAnnual report
「Meanwhile, uncertainty about the outlook continued due to soaring raw material prices and inflation against the backdrop of the situation in Ukraine and other factors, as well as sharp exchange rate fluctuations resulting from global monetary tightening.」
In addition to the previously identified situation in Ukraine and rising raw material prices, sharp exchange-rate fluctuations caused by inflation and global monetary tightening are identified as factors contributing to uncertainty. - FY2023-Q1WorsenedAnnual report
「The outlook remained uncertain due to concerns about a prolonged situation in Ukraine, higher raw material prices resulting from the sharp depreciation of the yen, and supply-side effects from lockdowns in China.」
In addition to existing trade friction and infectious diseases, further factors contributing to uncertainty in overseas political and economic conditions included concerns about a prolonged situation in Ukraine and supply-side effects from lockdowns in China. - FY2022MaterialisedAnnual report
「IKO THOMPSON VIETNAM CO., LTD., a consolidated subsidiary of the Company, is undergoing a tax audit by the Vietnamese tax authorities concerning transfer pricing regulations and other matters related to transactions with the Company. In the fourth-quarter consolidated financial statements, the Company recorded ¥271 million as income taxes for prior periods, representing the estimated additional payment considered likely to arise at this time.」
Risks related to overseas laws, regulations and taxation materialized through an investigation by the Vietnamese tax authorities into transfer pricing regulations and other matters, resulting in the recognition of an estimated additional payment of ¥271 million. - FY2022-Q3MitigatedAnnual report
「During the cumulative third quarter of the consolidated fiscal year, economic conditions remained uncertain due to the spread of infections caused by the emergence of new COVID-19 variants and other factors. However, the economy entered a gradual recovery trend as economic activity normalized and signs of recovery emerged in corporate production activity, capital investment and personal consumption.」
Although uncertainty due to new variants remained, the disclosure cites normalization of economic activity and recovery in production activity and capital investment, indicating partial improvement from the deterioration seen through the previous quarter. - FY2021-Q3WorsenedAnnual report
「Although production and exports showed signs of recovery as economic activity resumed in various countries, the outlook remained uncertain as restrictions on movement were tightened again due to renewed infections and the emergence of variant strains.」
Although the resumption of economic activity indicated signs of recovery, uncertainty in the business environment, including overseas markets, continued due to renewed infections, variant strains and the reintroduction of tighter restrictions on movement. - FY2021-Q2RestatedAnnual report
「In other regions, economic activity stagnated due to restrictions in various countries, including India's lockdown, and sales declined.」
The disclosure continues to cite stagnation in economic activity and lower sales due to restrictions in various countries. In China, signs of a recovery emerged as economic activity resumed. - FY2021-Q1WorsenedAnnual report
「Although China was among the first to resume economic activity, demand remained sluggish as the effects of trade friction with the United States persisted. In other regions, economic activity stagnated due to restrictions in various countries, including India's lockdown, resulting in generally difficult conditions.」
In addition to U.S.-China trade friction, restrictions in various countries, including India's lockdown, were cited as factors contributing to uncertainty in the overseas business environment through their impact on economic activity. - FY2020WorsenedAnnual report
「During the consolidated fiscal year, Japan's economy continued a gradual recovery against the backdrop of improving employment conditions and other factors. However, in overseas economies, economic activity in Japan and abroad stagnated due to disruption associated with U.S.-China trade friction and the United Kingdom's withdrawal from the EU, as well as the global spread of COVID-19 that emerged toward the end of the fiscal year, increasing concerns about an economic slowdown.」
In addition to U.S.-China trade friction and the issue of the United Kingdom's withdrawal from the EU, the disclosure cites stagnation in economic activity caused by COVID-19, indicating increased uncertainty from overseas political and economic factors. - FY2020-Q3WorsenedAnnual report
「Overseas economies remained in an uncertain environment due to the widening impact of U.S.-China trade issues and disruption associated with the United Kingdom's withdrawal from the EU.」
The widening impact of U.S.-China trade issues and disruption associated with the United Kingdom's withdrawal from the EU continued to be cited as factors contributing to uncertainty about the outlook for overseas economies. - FY2020-Q2WorsenedAnnual report
「Uncertainty about the outlook for overseas economies increased further as U.S.-China trade friction and the issue surrounding the United Kingdom's withdrawal from the EU continued for an extended period.」
The disclosure states that prolonged U.S.-China trade friction and the issue of the United Kingdom's withdrawal from the EU further increased uncertainty in overseas economies. - FY2020-Q1WorsenedAnnual report
「Although the U.S. economy remained firm, weakness emerged in Europe and Asia, and uncertainty about the global economy increased due to U.S.-China trade issues and China's economic slowdown. In China, sales declined as demand slowed due to the impact of trade friction with the United States and other factors.」
The disclosure notes increasing uncertainty due to U.S.-China trade issues and China's economic slowdown, which actually affected China through slower demand and lower sales. - FY2019MaterialisedAnnual report
「Although demand in India and ASEAN remained strong in other regions, sales declined partly due to the impact of economic sanctions against Iran.」
The disclosure states that economic sanctions against Iran actually affected full-year results through a decline in sales in other regions. - FY2019-Q3WorsenedAnnual report
「Although the U.S. economy remained strong, concerns about the impact of escalating international trade friction caused uncertainty about the outlook for overseas economies to increase.」
The uncertainty factor from trade friction through the previous quarter was described this time as having escalated, resulting in greater uncertainty. In addition, economic sanctions against Iran caused sales in other regions to decline. - FY2019-Q2MaterialisedAnnual report
「Regarding customer-related assets recognized upon the acquisition of a Chinese subsidiary, the carrying amount was reduced to the recoverable amount because economic sanctions against Iran, a major sales destination, were expected to cause a significant decline in profitability from Iranian customers. The resulting reduction was recorded as an impairment loss under extraordinary losses.」
An impairment loss of ¥43 million was recorded on customer-related assets recognized upon the acquisition of a Chinese subsidiary as a result of economic sanctions against Iran. Overseas political and economic factors actually affected asset values and profitability. - FY2019-Q1RestatedAnnual report
「Although international trade friction remained a source of uncertainty in overseas economies, the U.S. economy continued to expand on increased personal consumption and capital investment, while economies in Europe and Asia generally remained firm.」
Regarding overseas economies, the Company recognized uncertainty stemming from trade friction, while stating that economic conditions in the United States, Europe and Asia were generally firm. - FY2017RestatedAnnual report
「As the proportion of the Group's business conducted in overseas markets has increased, changes in the laws and regulations of foreign countries and political or economic turmoil may affect its business activities.」
The Company continues to recognize legal, regulatory, political and economic risks associated with the increasing proportion of its overseas business. - FY2017-Q3RestatedAnnual report
「Meanwhile, overseas economies remained in an uncertain environment, with exchange rates fluctuating sharply due to concerns about an economic slowdown in emerging economies, including China, and the impact of the transition to a new U.S. administration.」
The Company continues to recognize uncertainty in overseas economies and foreign exchange markets due to concerns about an economic slowdown in emerging economies, including China, and the impact of the transition to a new U.S. administration. - FY2017-Q2RestatedAnnual report
「Meanwhile, although economic recovery continued in developed countries, led by the United States, uncertainty about the outlook increased against the backdrop of concerns about an economic slowdown in emerging economies, including China.」
The Company continues to recognize concerns about an economic slowdown in emerging economies, including China, and the resulting uncertainty in overseas economies. - FY2017-Q1RestatedAnnual report
「Meanwhile, overseas economies faced an uncertain outlook due to the issue of the United Kingdom's withdrawal from the EU and the economic slowdown in emerging Asian economies, including China.」
The Company continues to recognize uncertainty in overseas economies, including the issue of the United Kingdom's withdrawal from the EU and the economic slowdown in emerging Asian economies. - FY2016First statedAnnual report
「As the proportion of the Group's business conducted in overseas markets has increased, changes in the laws and regulations of foreign countries and political or economic turmoil may affect its business activities.」
The disclosure addresses institutional, political and economic risks associated with the expansion of overseas sales and production.