Risk to the Video Business from Production Bases in China and Vietnam
First written in FY2017. 4 of 7 entries say "Worsened", first in FY2019-Q2. Latest entry: FY2020-Q3.
Olympus moved to the "Worse" side of this theme in 2019, 2 years before the typical company in this theme (2021).
The whole theme swung hardest in 2022: 27 of 56 companies on the "Worse" side.
9 other companies' latest entry also says "Worsened".
- FY2020-Q3WorsenedAnnual report
「We continue activities aimed at transferring the equity interest held by our consolidated subsidiary Olympus (China) Co., Ltd. in our Chinese local subsidiary Olympus (Shenzhen) Industrial Ltd., located in Shenzhen, China. Depending on progress in implementing the transfer, this could affect the performance and financial condition of our Group.」
Even after the agreement to transfer the equity interest in the production subsidiary in Shenzhen, China was terminated, transfer activities continued, and the status of implementation was identified as a risk that could affect performance and financial condition. - FY2019WorsenedAnnual report
「Sales and operating income declined because, in addition to supply constraints for certain existing products and limitations on the number of new products resulting from the restructuring of production sites, competition among mirrorless cameras intensified.」
The supply constraints and limitations on the number of new products resulting from production restructuring, together with intensifying competition among mirrorless cameras, resulted in lower full-year sales and operating income. - FY2019-Q3WorsenedAnnual report
「Imaging Business sales declined, partly because intensifying competition among mirrorless cameras and the restructuring of production sites constrained the supply of certain existing products and the number of new products.」
Supply constraints and limitations on the number of new products continued following the production restructuring associated with ceasing operations at the China site and consolidating production in Vietnam, and cumulative third-quarter Imaging Business sales declined 19.0% year on year. - FY2019-Q2WorsenedAnnual report
「Imaging Business sales declined, partly because the restructuring of production sites constrained the supply of certain products.」
Supply constraints continued following the production restructuring associated with ceasing operations at the China site and consolidating production in Vietnam, and first-half Imaging Business sales declined 16.0% year on year. - FY2019-Q1MaterialisedAnnual report
「Imaging Business sales declined, partly because the restructuring of production sites constrained the supply of certain products.」
The production restructuring associated with ceasing operations at the China site and consolidating production in Vietnam actually resulted in supply constraints for certain products, contributing to the decline in Imaging Business sales. - FY2018MitigatedAnnual report
「We decided to cease operations at OSZ on 7 May 2018 and consolidate production at Olympus Vietnam. This is intended to improve production efficiency and profitability and strengthen the global competitiveness of the digital camera business.」
Decided to restructure the two-site production system in China and Vietnam by ceasing operations at the China site and consolidating production in Vietnam. - FY2017First statedAnnual report
「The Imaging Business is centered on production sites in China and Vietnam, so exchange-rate fluctuations and other factors could increase costs and affect the ability to secure earnings. In addition, destabilization of conditions in China, including anti-Japanese activities, and deteriorating public security could affect production activities.」
For the concentration of Imaging Business production in China and Vietnam, explicitly identified for the first time the risks of cost and production impacts from exchange rates, political conditions and public security.