Political, Economic and Foreign Exchange Fluctuations Affecting Overseas Operations
First written in FY2021. 2 of 5 entries say "Worsened", first in FY2023. Latest entry: FY2026.
The whole theme swung hardest in 2025: 72 of 118 companies on the "Worse" side.
- FY2026WorsenedAnnual report
「If overseas businesses fail to progress as planned in the future due to political and economic conditions, foreign exchange movements, amendments to laws and regulations, or the financial condition of partner companies in these countries, the Group's operating results and financial position may be affected.」
For overseas business risks, the financial condition of partner companies is explicitly identified as a risk factor in addition to political and economic conditions, foreign exchange movements and amendments to laws and regulations. - FY2025MaterialisedAnnual report
「In the overseas business, the Company recognized an allowance for doubtful accounts on certain receivables after comprehensively considering the prolonged downturn in the business environment and the collectibility of receivables.」
Deteriorating conditions and the risk of collecting receivables in overseas businesses materialized as an actual accounting treatment involving partial allowances for doubtful accounts. - FY2023WorsenedAnnual report
「If overseas businesses fail to progress as planned in the future due to changes in political and economic conditions, foreign exchange rates or laws and regulations in these countries, the Group's operating results and financial position may be affected.」
In addition to political and economic conditions and foreign exchange movements, amendments to laws and regulations are explicitly identified as a risk factor, broadening the scope of overseas business risks. - FY2022MitigatedAnnual report
「To address these risks, the Group is developing information networks for staff at each overseas location and taking measures such as obtaining the latest local information by utilizing Group companies, including Marubeni Corporation, which has extensive knowledge and information networks relating to overseas expansion, as well as external consultants. The Group also appropriately manages the scale of investments in overseas operating companies so that, even if those businesses do not proceed as planned, they will not have a material impact on the Group's financial position.」
The stated measures for addressing political, economic and foreign exchange risks overseas include gathering local information, managing investment scale and considering foreign exchange forward contracts. - FY2021First statedAnnual report
「If political and economic conditions, foreign exchange rates or other factors in these countries fluctuate significantly in the future and overseas businesses fail to progress as planned, the Group's operating results and financial position may be affected.」
With the expansion of overseas businesses in Thailand, China and elsewhere, the political and economic conditions, foreign exchange rates and business progress in the countries concerned are identified explicitly as separate risks for the first time.