Downside Risk from Concerns over Overseas Economies

「In the information and communications sector, which is the Company's business domain, digitalisation across society is progressing, and the sector is becoming the most fundamental infrastructure supporting all socioeconomic activity. At the same time, the situation continues to require close monitoring of risks that could weigh on the economy, including soaring energy prices resulting from unstable conditions overseas, higher consumer prices, developments in the trade policies of various countries, and the impact of conditions in the Middle East.」

「During the interim consolidated accounting period (1 April 2025 to 30 September 2025), the Japanese economy continued to recover moderately, although the impact of US trade policy was evident, particularly in the automobile industry, while personal consumption showed signs of recovery.」

「While a moderate economic recovery is still expected due to improvements in employment and income conditions and the effects of various policies, the situation continues to require attention to factors that could weigh on the economy, including the impact of continued price increases on personal consumption and the impact of the trade policies of various countries. With respect to the series of tariff measures, including the US reciprocal tariffs, introduced on 9 April 2025, we currently assume that the impact on business performance will be limited. However, as conditions are changing rapidly and the outlook is uncertain, we will operate our business while closely monitoring the possibility of indirect effects, including an economic deterioration, supply chain disruption, and customers' restraint on capital investment.」

「The situation continues to require close monitoring of risks, including economic weakness in Europe and the United States due to the persistence of high interest rates, soaring energy prices resulting from unstable conditions overseas, and higher prices.」

「Looking ahead, although an economic recovery is expected due to strong activity in semiconductor-related industries and the recovery in inbound demand, the situation continues to require attention to factors that could weigh on the economy, including geopolitical risks and the rapid depreciation of the yen.」

「The situation continues to require close monitoring of risks that could weigh on the economy, including the impact of global monetary tightening, accelerating inflation accompanying heightened tensions in Ukraine and the Middle East, and concerns about the outlook for the Chinese economy.」

「The situation continues to require close monitoring of risks that could weigh on the economy, including the impact of global monetary tightening, the prolonged situation in Ukraine, and price increases resulting from the depreciation of the yen.」

「Globally, with no end to the conflict in Ukraine yet in sight, price increases and the resulting trend toward monetary tightening continue, and the situation requires continued close monitoring for risks that could weigh on the economy.」

「At the same time, continued attention is required to the risk of an economic downturn resulting from inflation concerns arising from soaring energy prices, including electricity rates, and higher prices, as well as monetary tightening by countries in response, in addition to the prolonged conflict in Ukraine and developments in supply chains, including semiconductors. The outlook therefore remains uncertain.」

「At the same time, the outlook remains uncertain due to price increases resulting from the prolonged situation in Ukraine, the depreciation of the yen, and other factors.」

「In addition, the outlook remains uncertain due to factors including higher raw material prices and supply constraints arising from the prolonged situation in Ukraine and restrictions on economic activity in China, as well as the rapid depreciation of the yen caused by the widening interest rate differential between Japan and the United States.」

「Looking ahead, the business environment surrounding the Company remains uncertain, due to factors including the impact of the renewed spread of COVID-19, the situation in Russia and Ukraine, and the rapid depreciation of the yen.」

「The economy had begun to show signs of a gradual recovery as vaccinations against COVID-19 took effect, and economic and social activity was moving toward normalization. However, the resurgence of infections caused by the Omicron variant from late November 2021 led to a continued need for close attention to the impact of supply chain disruptions and downside risks to overseas economies.」

「The difficult conditions caused by COVID-19 continued. Although there were expectations of an economic recovery following the easing of the fifth wave of infections that began in the summer, the situation remained one requiring close attention to the impact of supply chain disruptions, including semiconductor shortages, and downside risks to overseas economies.」

「During the first quarter of the fiscal year ended 31 March 2022, covering 1 April 2021 to 30 June 2021, Japan's economy remained in a difficult situation due to the impact of COVID-19. Although the Company expected the spread of infections to subside as vaccination began, the outlook remained uncertain.」

「During the first nine months of the fiscal year ended 31 March 2021, covering 1 April 2020 to 31 December 2020, Japan's economy initially deteriorated rapidly due to the global spread of COVID-19. Although signs of recovery emerged temporarily following the lifting of the state of emergency in May, the outlook again became uncertain as the number of infections began to rise sharply from mid-November.」

「During the first half of the fiscal year ended 31 March 2021, covering 1 April 2020 to 30 September 2020, Japan's economy initially deteriorated rapidly due to the global spread of COVID-19. Following the lifting of the state of emergency, economic activity gradually resumed, and the country was seeking to balance preventing a resurgence of infections with revitalizing the economy.」

「During the first quarter of the fiscal year ended 31 March 2021, covering 1 April 2020 to 30 June 2020, Japan's economy deteriorated rapidly due to the global spread of COVID-19, and the outlook remained uncertain.」

「During the fiscal year ended 31 March 2020, covering 1 April 2019 to 31 March 2020, corporate earnings and the employment and income environment continued to improve in Japan. However, in addition to the impact of the consumption tax increase on the economy, the global economy entered a phase of substantial slowdown at the end of the fiscal year due to the spread of COVID-19, creating an uncertain situation as the timing of containment of the outbreak and economic recovery was being assessed.」

「During the first nine months of the fiscal year ended 31 March 2020, covering 1 April 2019 to 31 December 2019, Japan's economy was in an uncertain situation amid unstable international conditions, including the impact of the consumption tax increase on the economy, the U.S.-China trade issue and deteriorating U.S.-Iran relations, although」

「During the first half of the fiscal year ended 31 March 2020, covering 1 April 2019 to 30 September 2019, Japan's economy was in an uncertain situation amid unstable international conditions, including intensifying U.S.-China trade friction and a slowdown in overseas economies, although」

「During the first quarter of the fiscal year ended 31 March 2020, covering 1 April 2019 to 30 June 2019, Japan's economy was in an uncertain situation amid unstable international conditions, including escalating U.S.-China trade friction and difficulties surrounding the UK's withdrawal from the EU, although」

「During the first nine months of the fiscal year ended 31 March 2019, covering 1 April 2018 to 31 December 2018, Japan's economy continued on a moderate recovery path, supported by continued improvements in corporate earnings and the employment and income environment against the backdrop of economic and monetary policies implemented by the government and the Bank of Japan. However, concerns about a global economic slowdown triggered by U.S.-China trade friction and instability in the international financial markets caused downside risks to the economy to increase somewhat.」

「During the first half of the fiscal year ended 31 March 2019, covering 1 April 2018 to 30 September 2018, Japan's economy continued on a moderate recovery path overall, supported by continued improvements in corporate earnings and the employment and income environment against the backdrop of economic and monetary policies implemented by the government and the Bank of Japan. However, downside risks to the economy remained, arising from growing uncertainty in the global economy, including volatility in the international financial markets triggered by U.S.-China trade friction.」

「During the first quarter of the fiscal year ended 31 March 2019, covering 1 April 2018 to 30 June 2018, Japan's economy continued on a moderate recovery path overall, supported by continued improvements in corporate earnings and the employment and income environment against the backdrop of economic and monetary policies implemented by the government and the Bank of Japan. However, downside risks to the economy remained, arising from volatility in the financial and capital markets driven by the economic policies of the U.S. administration and geopolitical risks.」

「During the fiscal year ended 31 March 2018, Japan's economy remained on a moderate recovery path, supported by continued improvements in corporate earnings and the employment and income environment against the backdrop of economic and monetary policies implemented by the government and the Bank of Japan. However, downside risks to the economy remained, arising from volatility in the financial and capital markets driven by the economic policies of the U.S. administration and geopolitical risks.」

「During the first half of the fiscal year ended 31 March 2018, covering 1 April 2017 to 30 September 2017, Japan's economy continued on a moderate recovery path, supported by improvements in corporate earnings and the employment and income environment against the backdrop of economic and monetary policies implemented by the government and the Bank of Japan. However, it remained in an uncertain situation with downside risks to the economy, including the economic policies of the U.S. administration, the political situation in Europe and rising geopolitical risks.」

「During the first quarter of the fiscal year ended 31 March 2018, covering 1 April 2017 to 30 June 2017, Japan's economy continued on a moderate recovery path, supported by improvements in corporate earnings and the employment environment against the backdrop of economic and monetary policies implemented by the government and the Bank of Japan. However, it remained in an uncertain situation with downside risks to the economy, including the economic policies of the new U.S. administration, the political situation in Europe and rising geopolitical risks.」

「During the first nine months of the fiscal year ended 31 March 2017, covering 1 April 2016 to 31 December 2016, Japan's economy continued on a moderate recovery path, supported by improvements in corporate earnings and the employment environment against the backdrop of economic and monetary policies implemented by the government and the Bank of Japan. However, it remained in an uncertain situation with downside risks to the economy, including the outcome of the U.S. presidential election and the impact of the UK's decision to leave the EU.」

「During the first half of the fiscal year ended 31 March 2017, covering 1 April 2016 to 30 September 2016, Japan's economy continued on a moderate recovery path against the backdrop of economic and monetary policies implemented by the government and the Bank of Japan. However, it remained in an uncertain situation with downside risks to the economy, including concerns about an economic slowdown overseas.」

「During the nine-month period ended 30 June 2016, Japan's economy continued to recover moderately against the backdrop of economic and monetary policies by the government and the Bank of Japan, but remained uncertain, with downside risks to the economy, including concerns about overseas economies such as the United Kingdom's withdrawal from the European Union.」