Country and foreign exchange risks associated with overseas procurement and international expansion
First written in FY2017. . Latest entry: FY2026.
The whole theme swung hardest in 2025: 72 of 118 companies on the "Worse" side.
- FY2026Expansion of overseas operating-region and currency risksAnnual report
「In addition, electricity sales revenue from the company's battery storage business in the United States, in which it invests and participates, is denominated in US dollars, and fluctuations in exchange rates may affect revenue when translated into yen.」
In addition to Vietnam and the Philippines, the company specifically identifies US dollar-denominated revenue from its US battery storage business and the impact of foreign-exchange fluctuations on yen-translated revenue as overseas risks. - FY2022Specific overseas currency and convertibility risksAnnual report
「Revenue from electricity sales under Vietnam's FIT scheme is denominated in Vietnamese dong, but the FIT electricity sales tariff is revised in accordance with the exchange rate between the US dollar and the Vietnamese dong. The company also invests in and participates in a hydropower generation business in the Philippines. Revenue from electricity sales under the Philippines' FIT scheme is denominated in Philippine pesos.」
As its overseas businesses progress, the company specifies the channels of risk involving electricity sales revenue denominated in Vietnamese dong and Philippine pesos, foreign-exchange fluctuations and increasing difficulty in converting funds into international currencies. - FY2022-Q2Specific overseas regulatory risksAnnual report
「The company invests in and participates in an onshore wind power generation business in Vietnam. Under Vietnam's FIT scheme, facilities that have not commenced operations by the applicable deadline are not eligible for the current FIT.」
As overseas expansion extends beyond Vietnam to the Philippines, the company specifically describes how the different FIT schemes in each country may affect the timing of commercial operations and revenue conditions. - FY2017First statedAnnual report
「Country risk exists in the form of unexpected events arising from various factors, including political, economic and social conditions, culture, religion, customs and terrorism, as well as national expropriation, suspension of remittances, tariffs and other taxes resulting from changes in laws and regulations.」
The company describes political, regulatory, remittance, tariff and foreign-exchange risks associated with imported equipment and fuel, overseas subsidiaries and overseas business expansion.