Risks from Regulation, Political and Economic Conditions, and Social Unrest in Overseas Operations

「In recent years, geopolitical and economic security risks have also increased, including political and military tensions between regions, cross-border conflicts, changes in trade policy and tighter export control regulations.」

「However, amid growing uncertainty about the outlook following the policy shift by the Trump administration in the United States, some signs of a slowdown in the flow of goods and consumer restraint were observed.」

「For the fiscal year ending March 2026, our consolidated earnings forecast incorporates the risk of a global economic slowdown resulting from U.S. tariff measures, while anticipating higher profit from business expansion and improved profitability in growth areas. We forecast revenue of ¥2.67 trillion and business profit of ¥150 billion.」

「In 2021, our group established a dedicated economic security team within the Corporate Planning Office and has been advancing its risk response measures.」

「During the six-month period ended 30 September, the global economy lacked momentum in its recovery due to the effects of inflation and interest rate hikes, mainly in Europe and the United States, as well as the slowdown in China's recovery.」

「During the three-month period ended 30 June, the global economy lacked momentum in its recovery due to the effects of inflation and interest rate hikes, mainly in Europe and the United States, as well as the slowdown in China's recovery.」

「Following the outbreak of the Ukraine conflict in February 2022, we concluded that our systems, rules and other arrangements needed to be reviewed in light of the risk of war. We therefore designated this issue as a priority risk requiring action and decided to strengthen our measures.」

「During the nine-month period ended 31 December, the global economy experienced slower growth due to persistently high resource prices associated with the situation in Ukraine, lockdowns resulting from China's zero-COVID policy, and the effects of accelerating inflation and interest rate hikes, mainly in Europe and the United States.」

「The world economy during the cumulative consolidated second quarter period saw slower growth as persistently high resource prices resulting from the situation in Ukraine, lockdowns under China’s zero-COVID policy, and advancing inflation centered in the United States and Europe affected personal consumption, among other factors.」

「Persistently high resource prices resulting from the situation in Ukraine, lockdowns under China’s zero-COVID policy, and advancing inflation centered in the United States and Europe」

「Each region faces risks including Russia’s invasion of Ukraine, and if any of these events occurs, the Group’s operating results and financial position may be adversely affected.」

「As the US-China confrontation, which became apparent through reciprocal punitive tariffs, expands the scope of its conflict and shows signs of becoming more acute and protracted, economic security risks are also rising.」

「The Group conducts business extensively overseas, particularly in Asia, Europe and the United States. However, each region faces the following risks, including a tendency by countries to adopt protectionist trade policies, and if any of these events occurs, the Group’s operating results and financial position may be adversely affected.」

「The world economy slowed during the cumulative consolidated third quarter period as uncertainty about the outlook increased due to concerns over intensifying US-China trade friction, geopolitical risks including the situation in the Middle East, and growing political turmoil in Europe surrounding BREXIT.」

「The world economy slowed during the cumulative consolidated first quarter period as uncertainty about the outlook increased due to concerns over intensifying trade friction following the US tariff increases on Chinese goods and rising geopolitical risks, including the situation in the Middle East.」

「The world economy in fiscal 2019 is expected to see slower growth, mainly in China and the United States, but to recover somewhat from the latter half of the year. However, attention must be paid to risk factors including intensifying trade friction between the United States and China, downside risks to the Chinese economy, and the course of the UK’s negotiations to leave the EU.」

「In the world economy during the cumulative consolidated third quarter period, trade friction intensified and China’s slowdown became pronounced in the latter half of the year. However, supported by the strong US economy, the economy remained generally firm while incorporating risk factors such as the course of the UK’s negotiations to leave the EU and growing concerns about emerging markets.」

「However, attention must be paid to risk factors including protectionist trade policies in developed countries, expanding trade friction, and financial-market disruption resulting from moves toward monetary-policy normalization in the United States and Europe.」

「However, attention must be paid to risk factors including increasing protectionist policy pressure in developed countries, the effects of normalization of US monetary policy, and rising geopolitical tensions.」

「The Group conducts business extensively overseas, particularly in Asia, Europe and the United States. However, each region faces the following risks, and if any of these events occurs, the Group’s operating results and financial position may be adversely affected.」