Risks Associated with Overseas Business Expansion: Regulation and Social Conditions, Infrastructure
First written in FY2016. 7 of 19 entries say "Worsened", first in FY2020-Q1. Latest entry: FY2026.
Nikon moved to the "Worse" side of this theme in 2019, 3 years before the typical company in this theme (2022).
The whole theme swung hardest in 2025: 15 of 22 companies on the "Worse" side.
18 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「In recent years, geopolitical risks, including supply chain issues resulting from worsening conditions in the Middle East and US-China trade friction, may affect the macroeconomy, the Group’s business activities and supply chains for semiconductor components and other products.」
Regarding overseas business risks, the company provided specific details on worsening conditions in the Middle East, US-China trade friction and the effects on supply chains for semiconductor components. - FY2026-H1MaterialisedAnnual report
「In the Imaging business, sales of mirrorless cameras, mainly the “Z5II” and “Z50II,” and interchangeable lenses remained strong and unit sales increased. However, in addition to a decline in the average selling price due to changes in the product mix, the effects of foreign exchange and tariffs resulted in lower revenue and profit.」
The effects of tariffs associated with overseas business and the trade environment materialized in the Imaging business as factors contributing to lower revenue and profit. - FY2024-Q3WorsenedAnnual report
「As the Group operates numerous businesses globally, it is subject to various laws and regulations and corporate social responsibility requirements in many countries, including import and export regulations, competition laws, labour laws, anti-corruption requirements and transfer pricing tax rules. These laws, regulations and social responsibility requirements may change substantially, potentially increasing the cost of business activities, constraining operations and damaging the Group’s reputation. In addition, the Group may incur financial losses if it is slow to address the risk of violating laws and regulations in each country and business area or to respond to changes in those laws and regulations.」
Regarding regulatory risks associated with overseas business, the company specified the applicable laws and regulations, including import and export regulations, competition laws, labour laws, anti-corruption requirements and transfer pricing tax rules, and added the possibility of higher costs, business constraints, reputational damage and financial losses. - FY2024-Q2RestatedAnnual report
「In addition, overseas business operations may be materially disrupted and incur losses as a result of changes in political systems and economic conditions, the effects of trade friction and disputes between countries, and social disruption caused by riots, terrorism, war, disasters and various infectious diseases. Although it is difficult to predict specifically the likelihood of these risks materializing or the level of their impact because they depend on social conditions and other factors, the company gathers information, analyses the effects on its business, and considers and implements countermeasures.」
The company continued to address risks associated with political and economic conditions, trade friction, disputes, disasters and infectious diseases in overseas business by gathering information and analysing their potential effects. - FY2023-Q3RestatedAnnual report
「In addition, overseas business operations may be materially disrupted and incur losses as a result of changes in political systems and economic conditions, the effects of trade friction and disputes between countries, and social disruption caused by riots, terrorism, war, disasters and various infectious diseases.」
The company continued to describe risks associated with overseas business, including political and economic conditions, trade friction, disputes, disasters and infectious diseases. - FY2023-Q2WorsenedAnnual report
「During the second quarter cumulative period under review (1 April 2022 to 30 September 2022), the global economy was in a difficult situation due to the effects of global inflation, rising interest rates and higher resource prices associated with the prolonged situation in Ukraine.」
Regarding the overseas business environment, the company described difficult conditions involving global inflation, rising interest rates and higher resource prices associated with the situation in Ukraine, in addition to the previously identified risks related to infectious diseases and political and economic conditions. - FY2022WorsenedAnnual report
「During the consolidated fiscal year under review, the global economy faced a rapidly growing lack of clarity toward the end of the period as Russia’s invasion of Ukraine broke out amid the renewed spread of COVID-19, including the Omicron variant.」
Regarding social-condition risks associated with overseas business expansion, the company stated that global conditions became rapidly more uncertain due to Russia’s invasion of Ukraine, in addition to the renewed spread of infectious diseases. - FY2022-Q3RestatedAnnual report
「As a response, we will further strengthen communication with customers and promote local support by startup and service personnel.」
As countermeasures against restrictions on shipments and sales in the Precision Equipment business caused by infectious diseases and regulations in various countries, the company described strengthening communication with customers and promoting local support by startup and service personnel. - FY2022-Q2MitigatedAnnual report
「In the FPD exposure equipment field, installation work progressed smoothly despite the effects of travel restrictions associated with the spread of COVID-19, and revenue and profit increased substantially compared with the same period of the previous year, when only a limited number of units could be installed.」
Despite the continuing effects of travel restrictions, installation work for FPD exposure equipment progressed smoothly, resulting in substantial increases in revenue and profit year on year. - FY2022-Q1MitigatedAnnual report
「In the FPD exposure equipment field of the Precision Equipment business, installation work progressed smoothly despite the effects of travel restrictions associated with the spread of COVID-19. As equipment could not be sold in the same period of the previous year, the business recorded substantial increases in revenue and profit.」
Regarding restrictions on the sale and installation of FPD exposure equipment caused by overseas travel restrictions, installation work progressed smoothly despite the continuing effects, and the business recorded substantial increases in revenue and profit. - FY2021-Q3RestatedAnnual report
「In addition, overseas business operations may be materially disrupted and incur losses as a result of changes in political systems and economic conditions, the effects of trade friction and disputes between countries, and social disruption caused by riots, terrorism, war, disasters and various infectious diseases.」
The company continued to address risks associated with political and economic conditions, trade friction, disasters and infectious diseases in overseas business by gathering information and analysing their potential effects. - FY2021-Q2MaterialisedAnnual report
「In the FPD exposure equipment field, installation work resumed in July, but only a limited number of units could be installed due to the effects of travel restrictions and other measures associated with the spread of COVID-19.」
The disruption to overseas business caused by overseas travel restrictions and other measures continued to materialize as a limitation on the installation of FPD exposure equipment. - FY2021-Q1MaterialisedAnnual report
「In the FPD exposure equipment field of the Precision Equipment business, the company was unable to sell equipment due to the effects of travel restrictions and other measures associated with the spread of COVID-19.」
The risk to business activities from overseas travel restrictions and other measures materialized as an inability to sell FPD exposure equipment. - FY2020WorsenedAnnual report
「For the Precision Equipment business as a whole, the global spread of COVID-19 and tighter restrictions imposed in various countries as a result were expected to cause damage to relationships of trust with customers due to shipment delays or stoppages, investment freezes due to declining demand, and a sharp drop in sales.」
Regarding social-condition and regulatory risks associated with overseas business, the company provided specific details on the effects of infectious diseases and tighter regulations in various countries on shipments, demand and sales. - FY2020-Q3RestatedAnnual report
「Much of the Group’s production and sales activities depend on operations outside Japan. As a result, the Group’s operations in Japan and overseas are affected by changes in various laws, tax systems and regulations relating to imports and exports. In addition, overseas operations may be materially disrupted and incur losses as a result of changes in political systems and economic conditions, social disruption caused by riots, terrorism, war and infectious diseases, disruptions to infrastructure such as water, electricity and communications networks and to logistics functions caused by disasters, difficulties in recruiting and outflows of human resources, and the effects of trade friction and disputes between countries. These factors may constrain production and sales and adversely affect the Group’s revenue and financial position.」
The company continued to disclose risks associated with overseas business, including regulations, political and economic conditions, social disruption, infrastructure and logistics, human resources, and trade friction and disputes. - FY2020-Q2WorsenedAnnual report
「The Chinese economy was also trending downward, partly due to the effects of the US-China trade friction.」
The company described the downward trend in the Chinese economy, against a backdrop including US-China trade friction, as a factor worsening the overseas business environment. - FY2020-Q1WorsenedAnnual report
「Much of the Group’s production and sales activities depend on operations outside Japan. As a result, the Group’s operations in Japan and overseas are affected by changes in various laws, tax systems and regulations relating to imports and exports. In addition, overseas operations may be materially disrupted and incur losses as a result of changes in political systems and economic conditions, social disruption caused by riots, terrorism, war and infectious diseases, disruptions to infrastructure such as water, electricity and communications networks and to logistics functions caused by disasters, difficulties in recruiting and outflows of human resources, and the effects of trade friction and disputes between countries. These factors may constrain production and sales and adversely affect the Group’s revenue and financial position.」
In addition to the traditional risks associated with overseas business expansion, including regulatory, political and economic and disaster risks, the company explicitly described trade friction and disputes between countries and the possibility of disruptions and losses affecting production and sales. - FY2017RestatedAnnual report
「Much of the Group’s production and sales activities depend on operations outside Japan.」
The company continues to disclose risks related to overseas laws and regulations, political and economic conditions, disasters, infectious diseases, infrastructure disruptions and outflows of human resources, among other factors. - FY2016First statedAnnual report
「Much of the Group’s production and sales activities depend on operations outside Japan.」
The company lists laws and tax systems, political and economic conditions, riots, terrorism, war, infectious diseases, disasters, infrastructure disruptions and outflows of human resources, among other risks.