Barriers to Expanding Overseas Operations and Monetization Risks
First written in FY2016. 2 of 4 entries say "Worsened", first in FY2022. Latest entry: FY2026.
Nec moved to the "Worse" side of this theme in 2022, the same year as the typical company in this theme.
The whole theme swung hardest in 2018: 3 of 6 companies on the "Worse" side.
2 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Moreover, heightened geopolitical risks resulting from growing instability in international affairs pose serious threats to economic activity and people's safe livelihoods in the form of intensifying cyberattacks and disruptions to supply chains.」
The risks associated with overseas business expansion have taken concrete form in geopolitical risks, cyberattacks and supply-chain disruptions, in addition to the conventional regulatory, political and economic barriers. - FY2022WorsenedAnnual report
「In addition, the NEC Group's overseas businesses and investments may be adversely affected by regulations in overseas markets, including foreign exchange controls, various restrictions on foreign investment and the repatriation of profits or invested capital, nationalisation of local industries, changes in import and export requirements and regulations, including those relating to 5G-related technologies, and the acquisition of licences and approvals from overseas authorities; international economic friction, including US-China trade tensions; changes in tax systems and tax rates; and economic, social, political and geopolitical risks, as represented by the recent situation in Ukraine.」
The company explicitly added 5G regulations, economic friction and geopolitical factors such as the situation in Ukraine to the risks associated with overseas business. - FY2017RestatedAnnual report
「The NEC Group is implementing various initiatives to expand its business in overseas markets, but faces various barriers, including long-term relationships between potential overseas customers and local suppliers, and regulations designed to protect domestic businesses.」
Continues to identify partnership, regulatory, political, economic and upfront investment risks associated with overseas business expansion. - FY2016First statedAnnual report
「The NEC Group is implementing various initiatives to expand its business in overseas markets, but faces various barriers, including long-term relationships between potential overseas customers and local suppliers, and regulations designed to protect domestic businesses.」
Lists barriers to overseas expansion, upfront investment, and regulatory, political and economic risks.