Sharp exchange-rate fluctuations and slowdown in the economies of China and other emerging markets

「During the current interim consolidated accounting period, Japan's economy remained on a gradual recovery trend, but the outlook continued to be uncertain due to higher prices caused by the weaker yen and other factors and the intensifying conflict in the Middle East. The global economy remained in a highly uncertain environment due to the impact of US tariff policy and the situation in the Middle East, among other factors.」

「During the current interim consolidated accounting period, Japan's economy remained on a gradual recovery trend, but the outlook continued to be uncertain due to the impact of tariff measures by the US Trump administration, exchange-rate fluctuations and soaring prices. The global economy also remained uncertain due to the impact of tariff measures by the US Trump administration, concerns over China's economic outlook, and heightened geopolitical risks in Ukraine, the Middle East and elsewhere.」

「During the first 2 quarters of the current consolidated fiscal year, Japan's economy had normalised economic activity and corporate earnings were recovering after overcoming the COVID-19 pandemic, but consumption and investment lacked momentum due to soaring raw-material costs and energy prices and rising corporate goods prices against a backdrop of the weaker yen. The global economy also showed increasing signs of stagnation as high interest rates and high inflation continued in many countries, compounded by a slowdown in China's economy and worsening situations in Israel and Palestine and in Ukraine.」

「During the first quarter of the current consolidated fiscal year, Japan's economy showed signs of a gradual recovery as economic activity moved toward normalisation, but the outlook remained uncertain as raw-material costs and energy prices soared and corporate goods prices continued to rise against a backdrop of the weaker yen. The global economy also remained in a phase of economic slowdown as geopolitical risks, including the situations in Israel and Palestine and in Ukraine, and monetary tightening associated with inflation continued.」

「Meanwhile, the outlook remains uncertain due to rising prices and the rapid depreciation of the yen. The global economy is expected to slow against a backdrop of accelerating inflation, increasing geopolitical risks and monetary tightening, and the risk of a further downturn is rising.」

「The global economy remains uncertain, with inflation and persistently high policy rates in various countries weighing on private consumption, slowing economic growth and causing sharp exchange-rate fluctuations.」

「During the first 2 quarters of the current consolidated fiscal year, Japan's economy showed signs of normalisation in social and economic activity following the easing of COVID-19-related restrictions, while the outlook remained uncertain amid concerns over a downturn in overseas economies as global monetary tightening continued.」

「During the first quarter of the current consolidated fiscal year, Japan's economy continued to face the spread of the eighth wave of COVID-19, rising resource prices and corporate goods prices driven by the weaker yen, but it gradually recovered as economic and social activity normalised. The global economy also continued to recover as economic activity resumed following the easing of restrictions. However, the outlook remains uncertain due to the prolonged situation in Ukraine, the semiconductor shortage and sharp fluctuations in interest rates and exchange rates.」

「Meanwhile, the outlook remains uncertain due to rising prices and the rapid depreciation of the yen. The global economy is expected to slow against a backdrop of accelerating inflation, increasing geopolitical risks and monetary tightening, and the risk of a further downturn is rising.」

「Meanwhile, inflation triggered by Russia's invasion of Ukraine is accelerating in the global economy, including Japan, the pace of global economic growth is slowing rapidly, and uncertainty over the outlook is increasing.」

「However, the economic outlook remains uncertain due to uncertainty in the global economy arising from the situation in Ukraine, rising energy and commodity prices caused by the rapid depreciation of the yen, and semiconductor supply shortages, while the effects of COVID-19 continue to weigh on the economy.」

「Meanwhile, the semiconductor shortage left manufacturers with insufficient inventories of many products, including air conditioners, making it impossible to procure and sell them.」

「During the first 3 quarters of the current consolidated fiscal year, Japan's economy remained in a severe situation, with social activity partly restricted as the spread of COVID-19 continued for an extended period. Although the full-scale rollout of vaccinations and the effects of various policies are expected to support an economic recovery, the outlook remains uncertain amid concerns over the spread of variants and a global semiconductor shortage. In the ASEAN countries where the Company operates, business activities have been severely constrained by lockdowns, travel restrictions and other measures in response to the spread of COVID-19.」

「During the second quarter of the current consolidated cumulative period, Japan's economy deteriorated rapidly as the COVID-19 pandemic caused corporate earnings and private consumption to fall sharply. Economic activity subsequently showed signs of recovery as it resumed in stages, but the timing of an end to the pandemic remains unforeseeable due to its resurgence, and conditions remain uncertain. In the global economy, the United States and China showed strong economic recoveries, while Europe and ASEAN experienced economic deterioration as restrictions were tightened again, resulting in divergent trends.」

「The overseas corporate business was severely affected by COVID-19, including travel and commuting restrictions in some countries and difficulties assigning responsible personnel to local operations. Against this backdrop, the Company worked to strengthen sales of virus disinfection equipment and recruited and trained local sales staff, thereby establishing a local sales structure. As a result, revenue decreased 71.1% year on year to ¥179 million. Segment loss was ¥60 million, compared with a ¥106 million loss in the same period of the previous year, despite efforts to improve margins and reduce expenses, due to the substantial decline in revenue.」

「At overseas locations, periods arose during which business activities could not be conducted due to lockdowns, travel restrictions and other factors. Even after operations resumed, operating efficiency declined significantly as corporate investment sentiment deteriorated rapidly.」

「However, at overseas locations, circumstances arose in which operations had to be suspended for periods due to the impact of the spread of COVID-19 on the economies of individual countries, lockdowns and other factors.」

「The overseas corporate business was also affected by the spread of COVID-19, with operations in China unable to continue from February and operations and construction work at ASEAN locations unable to continue from March, among other impacts.」

「However, the economic outlook remains uncertain due to the impact on the global economy of the course of US-China trade friction and the impact of the COVID-19 threat on domestic and overseas economies.」

「Overseas corporate business revenue decreased 21.7% year on year to ¥511 million, partly due to the negative impact of exchange rates resulting from the yen's appreciation.」

「Although revenue increased, segment profit was ¥88 million, down 9.5% year on year, due in part to the time required to develop products following LED lighting and the negative impact on earnings of the yen's appreciation.」

「During the second quarter of the current consolidated cumulative period, Japan's economy continued on a gradual recovery trend, with continued improvements in corporate earnings and the employment and income environment. However, the outlook remains uncertain due to the impact of trade friction arising from US trade policy, uncertainty about overseas economies, and volatility in financial and capital markets.」

「During the first quarter of the current consolidated cumulative period, Japan's economy continued to recover gradually amid ongoing improvements in corporate earnings and the employment and income environment. However, the economic outlook remains uncertain due to the impact of US-China trade friction on the global economy, uncertainty about overseas economies, and volatility in financial and capital markets.」

「The outlook has become uncertain due to trade friction resulting from US trade policy and concerns about an economic downturn in China and emerging markets.」

「During the third quarter of the current consolidated cumulative period, Japan's economy was generally on a gradual recovery trend, with improvements in corporate earnings and the employment and income environment. However, concerns about trade friction emerged after the Trump administration in the United States introduced protectionist policies, including tariff increases, leaving the global economic outlook uncertain.」

「During the second quarter of the current consolidated cumulative period, Japan's economy was generally on a gradual recovery trend, with improvements in corporate earnings and the employment and income environment. However, concerns about trade friction emerged after the Trump administration in the United States introduced protectionist policies, including tariff increases, leaving the global economic outlook uncertain.」

「Despite cost-cutting measures, segment loss was ¥0 million, compared with a ¥10 million profit in the same quarter of the previous year, partly due to the yen's weakening trend.」

「Despite substantial revenue growth, segment profit was ¥54 million, approximately the same as in the previous year, due in part to the effect of the weaker yen.」

「Corporate consumption and investment behavior has also become more cautious. In the information and communications industry to which the Company belongs, the leasing volume of information and communications equipment remained below the previous year's level even during April-June, indicating difficult conditions across the industry.」

「During the second quarter of the current consolidated cumulative period, Japan's economy was generally on a gradual recovery trend, with improvements in corporate earnings and the employment and income environment. However, uncertainty about the outlook increased due to the UK's EU withdrawal issue and changes in policies following the change of administration in the United States.」

「During the first quarter of the current consolidated cumulative period, Japan's economy was on a gradual recovery trend, with corporate sentiment improving as the yen weakened and stock prices rose. However, the outlook has become even more uncertain amid concerns about the impact on the global economy of the UK's decision to leave the EU and policies pursued by the new US administration.」

「The economic environment remains uncertain, owing to the impact of the slowdown in China and emerging-market economies, uncertainty about the global economy following the sharp decline in crude oil prices, and volatile exchange rates.」

「Amid sharp exchange-rate fluctuations and an economic slowdown in emerging markets, led by China, the outlook remains uncertain.」