Political, Economic and Regulatory Risks Associated with Overseas Expansion
First written in FY2016. 12 of 17 entries say "Worsened", first in FY2020-Q1. Latest entry: FY2026-H1.
The whole theme swung hardest in 2025: 49 of 95 companies on the "Worse" side.
- FY2026-H1WorsenedAnnual report
「In addition, uncertainty in the global economy has increased due in part to U.S. tariff policies.」
Regarding political and economic risks associated with overseas expansion, US tariff policy was added and specified as a factor increasing uncertainty in the global economy. - FY2025WorsenedAnnual report
「In addition, uncertainty in the global economy has increased due in part to U.S. tariff policies.」
In addition to the existing geopolitical tensions, monetary tightening, and supply-chain disruptions, US tariff policy was added as a factor increasing uncertainty in the global economy and business environment. - FY2025-H1WorsenedAnnual report
「Meanwhile, amid rising geopolitical tensions, efforts to review supply chains and production sites to reduce risks became more evident, particularly in the automotive industry, and began to affect the display industry as well.」
Regarding the overseas political and economic environment, the company stated that heightened geopolitical tensions had emerged in the form of reviews of supply chains and production bases in the automotive industry and had begun to spill over into the display industry. - FY2024-Q3WorsenedAnnual report
「Recently, uncertainty surrounding the global economy has increased due mainly to continued monetary tightening in Europe and the United States and heightened geopolitical risks, and the challenging business environment is expected to persist.」
The company stated that continued monetary tightening and rising geopolitical risks had increased uncertainty over the global economy and the overseas economic and political environment. - FY2024-Q2WorsenedAnnual report
「Recently, continued monetary tightening centered in Europe and the United States and rising geopolitical risks have increased uncertainty over the global economy, and the business environment is expected to remain unpredictable.」
Regarding overseas economic and political conditions, the company explicitly cited the continued tightening of monetary policy, rising geopolitical risks and uncertainty about the global economy. - FY2024-Q1WorsenedAnnual report
「The economic outlook has become increasingly uncertain due to monetary tightening, particularly in Europe and the United States, and persistent geopolitical risks. The business environment is expected to remain challenging and unpredictable.」
The company stated that uncertainty over the outlook for the overseas economy was increasing as monetary tightening and geopolitical risks persisted. - FY2023-Q3RestatedAnnual report
「The operating environment was challenging in the nine-month period ended December 2022 due to a slowdown in demand for consumer electronics amid accelerating global inflation, supply-chain disruptions caused by the situation in Ukraine and China's coronavirus countermeasures, continuing shortages of semiconductors and other materials, and surging material, energy and transportation costs.」
The Company reiterated that inflation, the situation in Ukraine, China's infectious disease control measures, supply chain disruptions, material shortages and high costs continued to create a challenging business environment. - FY2023-Q2WorsenedAnnual report
「The Company was affected by production adjustments by automakers resulting from supply-chain disruptions caused by the lockdown in the Shanghai area of China from the end of March to the end of May, which were almost resolved by early in the second quarter, as well as continuing semiconductor shortages and wire-harness shortages stemming from the Ukraine crisis. However, supported by strong demand, revenue increased substantially year on year.」
Although the disruption caused by the Shanghai lockdown was almost resolved in early Q2, shortages of wire harnesses attributable to the Ukraine crisis and production adjustments by automakers were cited as new specific impacts. - FY2023-Q1WorsenedAnnual report
「The operating environment surrounding our group in the first quarter was challenging amid gradually declining demand for LCDs used in smartphones, continued shortages of semiconductors and other materials, persistently high material and energy costs, supply-chain disruptions caused by lockdowns in China, the impact of the situation in Ukraine, and customer production constraints resulting from parts shortages.」
Constraints on customer production caused by the lockdown in China, the situation in Ukraine, surging component and energy costs, and component shortages became specific features of the business environment during the quarter. - FY2022WorsenedAnnual report
「As of the filing date of this annual securities report, the business environment surrounding the Group remained adverse, with shortages of semiconductors and other components and soaring component, energy and transportation costs. Supply chain disruptions associated with COVID-19 and the situation in Ukraine have exacerbated these headwinds, while the deterioration in consumer sentiment caused by global inflation is also a concern.」
In addition to traditional overseas political and economic risks, conditions in Ukraine, worldwide inflation and supply-chain disruptions became concrete factors affecting funding needs and business performance. - FY2021-Q1WorsenedAnnual report
「Although the supply chain of our Group, which had stalled in the fourth quarter of the fiscal year ending March 2020, was slow to recover production activity in the Philippines due to the prolonged lockdown, procurement and production in China had almost returned to normal during the first quarter, and the overall impact remained limited.」
The impact of COVID-19 and lockdowns continued in the form of delayed recovery in production activity in the Philippines. Meanwhile, procurement and production in China nearly normalised during the first quarter. - FY2020WorsenedAnnual report
「While demand for automotive displays stagnated against a backdrop of sluggish automobile sales in major regions due to the slowdown in the Chinese economy and the impact of US–China trade friction, among other factors, shipments declined partly because the effects of COVID-19 caused delays in downstream production due to materials shortages and other issues.」
In addition to the slowdown in the Chinese economy and trade friction between China and the United States, shortages of components and production delays in back-end processes caused by COVID-19 emerged as a decline in shipments from overseas operations. - FY2020-Q3RestatedAnnual report
「Sales declined year on year against a backdrop of weak automobile sales in major regions, reflecting the slowdown in the Chinese economy, US-China trade friction and other factors.」
The company stated that overseas economic and political conditions, including the slowdown in the Chinese economy and US-China trade friction, affected weak automobile sales in key regions and lower revenue in the automotive business. - FY2020-Q1WorsenedAnnual report
「During the accounting period, revenue in the non-mobile sector declined both year on year and quarter on quarter, due to lower sales of displays for digital cameras as the market contracted and reduced shipments of displays for high-end notebook PCs affected by U.S.-China trade tensions.」
The impact of US-China trade friction emerged as a decline in shipments of displays for high-end notebook PCs, making the effect of risks related to the overseas economic and political environment concrete. - FY2019RestatedAnnual report
「The overseas business is subject to risks including changes involving overseas subsidiaries, unstable economic and political conditions in foreign countries, wage increases and deterioration in relations with local employees resulting from inflation in emerging markets, tighter foreign exchange controls, and the unexpected enactment or amendment of laws and regulations.」
The company reiterated risks related to politics, the economy, foreign exchange, labor, and regulations arising from overseas expansion. - FY2017RestatedAnnual report
「The expansion of overseas operations involves risk factors including unstable economic and political conditions in foreign countries, wage increases based on inflation in emerging markets and deteriorating relations with local employees, tighter foreign-exchange controls, and the unexpected introduction or amendment of laws and regulations.」
The company reiterated the political, economic, foreign-exchange, regulatory and other risks associated with overseas manufacturing and sales. - FY2016First statedAnnual report
「The expansion of overseas operations entails risk factors including unstable economic and political conditions in foreign countries, wage increases based on inflation in emerging markets and deteriorating relations with local employees, tighter foreign-exchange controls, the unexpected enactment or amendment of laws and regulations, differences in tax systems, legal systems and business environments and unfavorable changes thereto, war, terrorism and boycotts arising from anti-Japanese sentiment.」
The external-environment risks associated with manufacturing bases in China, Taiwan and the Philippines, as well as sales bases around the world, were listed.