Country Risk at Overseas Bases and Risk of Product Supply Disruptions
First written in FY2016. 3 of 9 entries say "Materialised", first in FY2020-Q1. Latest entry: FY2025.
Mani moved to the "Worse" side of this theme in 2017, 5 years before the typical company in this theme (2022).
The whole theme swung hardest in 2022: 38 of 76 companies on the "Worse" side.
8 other companies' latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「To enable sustained growth in global markets, we are strengthening our overseas network by establishing RHQs and sales locations in each region, enabling us to capture local market trends from multiple perspectives.」
In response to country risk at overseas locations, the disclosure describes the establishment of RHQs and regional sales locations to obtain local information from multiple perspectives. - FY2024ReframedAnnual report
「Our Group has subsidiaries in Vietnam, Myanmar, Laos, China, Germany, India, Malaysia and the United States, which produce and sell medical devices and their components, among other activities.」
The United States has been added to the countries covering overseas locations, bringing the country-risk coverage for production and sales locations to 8 countries. - FY2023WorsenedAnnual report
「Our Group has subsidiaries in Vietnam, Myanmar, Laos, China, Germany, India and Malaysia, which produce and sell medical devices and their components, among other activities. ... In China, an economic slowdown, policies favoring domestic products and an anti-corruption campaign, among other developments, are underway. Although these have not affected our product sales as of now, they may have an impact over the medium to long term.」
Malaysia has been added to the countries covered, and the disclosure states that, in addition to regulatory and political risks at overseas locations, China's economic slowdown and other factors may affect sales over the medium to long term. - FY2020WorsenedAnnual report
「Due to orders from government and other authorities prohibiting employees from reporting to work, a decline in the number of surgeries at hospitals and other factors, some of our Group's production sites have taken measures including production cuts. Depending on how the situation develops, this may continue to affect our Group's business activities and earnings.」
An additional factor in country risk at overseas locations has emerged in the form of production cuts at some sites due to COVID-19-related restrictions on reporting to work and a decline in the number of surgeries. - FY2020-Q3MaterialisedAnnual report
「Due to orders from government and other authorities prohibiting employees from reporting to work, a decline in the number of surgeries at hospitals and other factors, some of our Group's production sites have taken measures including production cuts.」
External-environment-related supply and operating risks at overseas locations actually materialized as production cuts at some sites due to orders prohibiting employees from reporting to work and a decline in the number of surgeries. - FY2020-Q2MaterialisedAnnual report
「In addition to the decline in net sales, temporary production inefficiencies caused by the cleanroom fire at MHC PY1 and other factors resulted in segment profit (operating profit) of ¥827 million, down 5.6% year on year.」
The operating impact of an accident at an overseas production site actually materialized as temporary production inefficiencies and a decline in segment profit for surgical-related products. - FY2020-Q1MaterialisedAnnual report
「In production, following the fire that occurred on 3 October 2019 in the cleanroom at MANI HANOI CO.,LTD.'s Phu Yen Plant 1 in Vietnam, we proceeded to establish an alternative production system, restore the cleanroom promptly and implement measures to prevent recurrence in order to minimize the impact on surgical-related products. We have insurance coverage for the damage caused by the fire at the Vietnam plant. However, because the amount of insurance proceeds receivable for the damage had not been fully determined as of the date of this report, only the portion that had been finalized was recognized during the cumulative first quarter of the current consolidated fiscal year.」
The impact of an accident at an overseas production site on product supplies actually materialized, requiring alternative production, early restoration, measures to prevent recurrence and partial recognition of insurance proceeds. - FY2017ReframedAnnual report
「Our Group has subsidiaries in Vietnam, Myanmar, Laos, China, Germany and India, which produce and sell medical devices and their components, among other activities.」
India has been added to the existing overseas locations, bringing the countries identified as subject to country risk to 6. - FY2016First statedAnnual report
「Our Group has affiliated subsidiaries in Vietnam, Myanmar, Laos, China and Germany, which produce and sell medical devices and their components, among other activities. ... If an accident or other event occurs due to force majeure, such as political instability, war, terrorism, riots or natural disasters, product supplies may be temporarily disrupted.」
For the first time, risks involving supply stoppages and instability in business continuity due to regulatory changes, political instability, conflicts and disasters, among other factors, are organized for multiple overseas locations.