Mazda 2010 Annual Report Download - page 49

Download and view the complete annual report

Please find page 49 of the 2010 Mazda annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 78

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78

7. International Business Activities
In addition to Japan, the Mazda Group sells its products and
carries out business activities in markets around the world,
including the United States and Europe, as well as devel-
oping and emerging markets. In these markets, the Group
is subject to the following potential risks, which could affect
the Mazda Group’s business results and financial position:
• Adverse political and economic developments
• Impediments arising from changes in laws and regulations
• Potential adverse impact from tax regulations
• Difficulties in attracting and securing personnel
• Undeveloped infrastructure
• Strikes and other labor disputes
• Terrorist incidents, war, disease, and other factors leading
to social disorder
8. Protection of Intellectual Property
In order to maintain competitiveness, the Mazda Group is
working to accumulate and protect its technologies and
expertise that help it to develop unique products. At the
same time, the Group is taking steps to prevent the
infringement of third-party intellectual property rights.
Nonetheless, in the event of a disputed infringement of
third-party intellectual property rights by the Mazda Group,
the Mazda Group may be subject to substantial damages
claims or be forced to halt the production and sale of its
products. This could also adversely affect the Mazda
Group’s business results and financial position.
The Mazda Group’s intellectual property is not subject to
complete protection in certain regions. In the event that third
parties use the Group’s intellectual property on an unau-
thorized basis to produce similar products, the Group may
have to pay substantial expenses for litigation or experience
a decline in sales due to an inability to offer unique products.
This could adversely affect the Mazda Group’s business
results and financial position.
9. Defective Products
While striving to improve the quality of its products to meet
the requirements of the market, the Mazda Group also does
its utmost to ensure the safety of its products. However, the
Group cannot guarantee that large-scale product recalls or
other issues will not occur due to product defects arising
from unforeseen circumstances. Such events may lead to
significant costs or a loss of trust in the Group, which could
adversely affect Mazda’s business results and financial
position.
10. Natural Disasters and Accidents
In addition to measures to protect its manufacturing sites
and other important facilities against fire and earthquakes,
the Mazda Group has concluded natural disaster insurance
contracts and taken other steps to minimize the financial
risk of such events. However, the ability of the Mazda Group
to supply products may be severely disrupted in the event
of a major earthquake, typhoon or other natural disaster, or
fire or other accident, which could adversely affect the
Mazda Group’s business results and financial position.
47
                      