Political, Economic and Foreign-Exchange Risks Associated With Overseas Production and Sales

「However, uncertainty about the outlook continues, owing to factors including the impact of sustained inflation on personal consumption, changes in the situation in the Middle East, volatility in financial and capital markets, and developments concerning U.S. trade policy.」

「During the consolidated fiscal year, Japan's economy recovered moderately, supported by improvements in corporate earnings and the employment and income environment. However, the outlook remained uncertain amid heightened geopolitical risks, including conditions in the Middle East and East Asia, developments in U.S. trade policy and continued consumer thrift resulting from rising prices.」

「Regarding the impact of the situation in the Middle East, there has been no change in customer demand in any business at this point, but we expect an impact on profits, mainly in the abrasives and chemical products businesses.」

「Meanwhile, uncertainty remains due to numerous destabilizing factors affecting corporate earnings and prices, including the impact of US trade policy and conflicts in various regions and trends in resource prices.」

「During the consolidated fiscal year, Japan's economy was on a moderate recovery trend, with improvements in corporate earnings and a recovery in personal consumption. However, uncertainty persisted due to changes in the tariff policies of the new US administration, geopolitical risks related to the Middle East and Ukraine, and rising prices accompanying the continued depreciation of the yen and soaring raw-material prices.」

「The outlook remains uncertain amid concerns that capital investment and personal consumption may weaken due to persistently high raw-material and energy prices and continuing price increases.」

「During the first 3 quarters of the current consolidated fiscal year, Japan's economy remained uncertain in outlook despite further progress toward normalization of social and economic activity, due to the prolonged situation in Russia and Ukraine, heightened geopolitical risks in the Middle East, and rising prices accompanying the yen's depreciation.」

「However, the outlook remains uncertain as raw-material prices and energy costs have soared due to the prolonged turmoil surrounding Russia and Ukraine, while prices have risen because of sharp foreign exchange movements.」

「During the first 3 months of the current consolidated fiscal year, Japan's economy showed signs of a moderate recovery as economic activity gradually picked up amid the easing of domestic activity restrictions and entry and exit restrictions under the COVID-19 situation. However, the outlook remained uncertain due to the prolonged situation in Ukraine and Russia, soaring energy and raw-material prices caused by yen depreciation, and rising prices.」

「The difficult environment for textile materials continued as higher logistics and raw-material costs resulting from rising crude oil prices due to the situation in Ukraine and Russia, together with higher procurement and overseas manufacturing costs due to the weaker yen, added further pressure.」

「However, the outlook remains uncertain as the conflict between Russia and Ukraine continues, crude oil prices remain high, raw-material prices remain elevated, and prices continue to rise due to the impact of a sharp depreciation of the yen.」

「However, the outlook remains uncertain amid concerns over the impact of a renewed spread of infections caused by new variants, a sharp depreciation of the yen due to rising US interest rates, soaring resource prices due to the prolonged situation in Ukraine, and weak personal consumption resulting from rising prices.」

「In addition to a recovery in domestic demand, changes in overseas conditions and the emergence of risks to overseas production associated with the spread of infectious diseases have become evident, and the trend toward bringing chemical production back to Japan has continued.」

「During the consolidated fiscal year, Japan's economy continued to recover as economic and social activity improved, supported by the progress of COVID-19 vaccinations and the easing of restrictions on activities. However, the outlook for the economy remained uncertain due to concerns over supply-chain disruptions caused by the resurgence of COVID-19, rising resource prices and worsening international conditions surrounding Ukraine.」

「The B.V.D. business has expanded production in Thailand and elsewhere to improve profitability through the manufacture of competitive products and cost reductions, and its overseas production ratio now exceeds 90%. B.V.D.-brand underwear is sold in Taiwan, Hong Kong and China. Automobiles and machinery are exported to countries in Central America and the Caribbean. Unexpected changes in political or economic systems, terrorism or other social unrest in any of these countries could adversely affect the financial condition, operating results and cash flows of the Fuji Bosho Group.」

「The trading division ended the period weakly as trilateral trade in automobiles, agricultural machinery and other products for Central America and the Caribbean declined.」

「In the trading business, provisions were recorded against certain receivables at the end of the previous fiscal year because major cities in countries across Central America and the Caribbean were under lockdown in connection with trilateral trade in automobiles, agricultural machinery and other products. The receivables were collected after the lockdowns were lifted, and the provisions were reversed.」

「In the trading business, trilateral trade in automobiles, agricultural machinery and other products for Central America and the Caribbean had begun to recover, but provisions were recorded against certain receivables because major cities in countries across the region were under lockdown at the fiscal year-end.」

「During the first 3 quarters of the current consolidated fiscal year, Japan's economy remained on a moderate recovery trend due to improvements in employment and income conditions. However, the outlook remained uncertain as exports weakened amid uncertainty in overseas economies, including developments surrounding US-China trade issues, the outlook for China's economy and geopolitical risks in the Middle East, while weakness increased, particularly in the manufacturing sector.」

「Meanwhile, the outlook remained uncertain due to uncertainty in overseas economies, including intensifying US-China trade friction, the UK's Brexit issue and deteriorating Japan-South Korea relations.」

「Meanwhile, the outlook remained uncertain due to uncertainty in overseas economies, including US-China trade friction and concerns over an economic slowdown in China.」

「Demand for the Company's core ultra-precision processing abrasives expanded for semiconductor device applications, including CMP, driven mainly by strong semiconductor demand for memory and communications applications. Demand for hard-disk applications, including servers for data centers, also remained solid. However, toward the end of the fiscal year, shipments of electronic components declined against the backdrop of slowing consumption in China.」

「However, the outlook remained uncertain due to uncertainty in overseas economies, including concerns over a global economic slowdown resulting from intensifying trade friction between the United States and China and political turmoil in the United States and Europe.」

「In the trading business, exports of agricultural machinery and other products remained stable, while transactions involving automobiles, including vehicles and tires, declined significantly. However, profit improved through a focus on highly profitable products and reductions in indirect expenses.」

「During the first 3 months of the current consolidated fiscal year, Japan's economy continued on a moderate recovery trend, with improvements also seen in employment and income conditions. However, the outlook remained uncertain due to uncertainty in overseas economies, including rising crude oil and certain imported raw-material prices and trade friction originating in the United States. In the trading business, exports of agricultural machinery and other products remained stable, but transactions involving automobiles, including vehicles and tires, declined significantly due to economic stagnation in Central America and the Caribbean.」

「In the textile business, the Fuji Bosho Group is expanding its overseas operations in Asia, including production in China and Thailand, and the Japanese side bears the foreign exchange risk. In the abrasives business, the high proportion of exports in operating revenue means that prices may fluctuate due to foreign exchange movements. To address foreign exchange risk, the Fuji Bosho Group is taking measures such as entering into forward exchange contracts and adjusting the balance of foreign-currency-denominated export and import transactions, and is seeking to hedge the risk to the extent possible.」

「During the first 3 quarters of the current consolidated fiscal year, Japan's economy continued on a moderate recovery trend. Although uncertainty over the outlook persisted due to uncertainty in overseas economies, including political developments in the United States and Europe and geopolitical risks related to conditions in Asia and the Middle East, the Government's economic measures and the Bank of Japan's monetary policy continued, corporate earnings remained firm, and improvements in the employment environment and a recovery in personal consumption were also observed.」

「However, the outlook remained uncertain due to uncertainty in overseas economies, including political developments in the United States and Europe and geopolitical risks related to conditions in Asia and the Middle East.」

「However, domestic consumption remained sluggish as households became more inclined to economize, and the outlook remained uncertain as uncertainty in the global economy increased, including due to an economic slowdown in China and other emerging Asian economies and resource-producing countries and the UK's Brexit issue.」

「However, domestic consumption remained sluggish as households became more inclined to economize, while the outlook remained uncertain as the yen appreciated and the stock market stagnated amid concerns about the impact on the global economy of an economic slowdown in China and other emerging Asian economies and resource-producing countries, as well as the UK's Brexit issue.」

「However, the outlook remains uncertain as the yen has appreciated and share prices have declined due to overseas factors, including concerns about economic slowdowns in China and other emerging Asian economies and resource-producing countries, increased uncertainty over the European economy, and heightened geopolitical risks in the Middle East, while domestic consumption has remained sluggish as households have become more inclined to economize.」

「Revenue from vehicle exports is generated from sales to Caribbean countries. Unexpected changes in political or economic systems, terrorism or other social unrest in any of these countries could adversely affect the financial condition, operating results and cash flows of the Fuji Bosho Group.」