Overseas Economic Uncertainty and Volatility in Foreign Exchange Rates and Equity Markets

「During the current consolidated fiscal year, the global economy was on a path of gradual slowdown, entering a highly uncertain period of transition as a result of geopolitical risks arising from regional conflicts in the Middle East and Ukraine, persistent inflationary pressure, and other factors that have forced revisions to optimistic forecasts.」

「During the interim consolidated accounting period, the global economy remained uncertain due to pressure on trade from US protectionist policies and higher tariffs, stagnation in the Chinese economy, and rising geopolitical risks.」

「During the interim consolidated accounting period, the global economy was in an environment where inflation in Europe and the US was subsiding to the point that central banks were implementing rate cuts. The US maintained solid growth, while Europe was recovering from stagnation at zero growth.」

「On the other hand, concerns remain about the impact on the performance of Japanese companies of the heightened tensions in the Middle East and fears that global inflation, driven by the strong US economy, will persist.」

「On the other hand, upward pressure on prices, driven mainly by the yen's depreciation, remains strong, and concerns persist about a slowdown in the pace of recovery in the domestic economy.」

「During the cumulative first quarter period, economic and social activity in Japan was normalizing as the effects of COVID-19 subsided, while geopolitical risks, including the situation involving Russia and Ukraine, persisted. Globally, the outlook remained uncertain due to soaring energy and raw material prices resulting from the situation in Ukraine, the impact of monetary policies adopted by countries in response to global inflation, and the resulting depreciation of the yen.」

「During the cumulative third quarter period, Japan's economy was returning to normal as COVID-19 restrictions were eased, but uncertainty increased due to soaring prices of resources and food resulting from Russia's invasion of Ukraine, growing uncertainty about economic trends resulting from monetary policies to curb inflation, and heightened financial concerns and fears of downward pressure on the economy following the failure of a mid-sized US bank.」

「During the cumulative second quarter period, Japan's economy was returning to normal as COVID-19 restrictions were eased, but globally, uncertainty persisted due to soaring energy and raw material prices resulting from the situation in Ukraine and growing concerns about an economic recession caused by central banks' policy rate increases to curb inflation.」

「During the cumulative first quarter period, Japan's economy was returning to normal as the effects of the COVID-19 pandemic subsided, but globally, uncertainty persisted due to soaring energy and raw material prices resulting from the situation in Ukraine, renewed financial instability caused by inflation and higher interest rates, and other factors.」

「Meanwhile, globally, uncertainty about the outlook has increased due to concerns about the protracted situation in Ukraine, stagnation in the Chinese economy resulting from its zero-COVID measures, and rapidly rising inflation.」

「During the cumulative third quarter period, Japan's economy saw signs of slowing corporate activity and personal consumption as infections resurged in many regions due to the spread of the Omicron variant of COVID-19. Globally, uncertainty about the outlook has increased due to constraints on production activity caused by semiconductor shortages, soaring resource prices resulting from heightened tensions over Ukraine, sharp foreign exchange movements, and inflation concerns.」

「In addition, the outlook remains uncertain due to the impact on industries of semiconductor shortages and difficulties procuring components, soaring fuel prices, and concerns about inflation in the global economy.」

「Around the world, regions where the effects of the pandemic have subsided and regions where they have not remain divided according to vaccination rates and each country's infection-control measures, but the global economy as a whole remains unpredictable.」

「At synchrotron radiation facilities in Europe and the US that are customers of the Company, many facilities have continued to require research activities to be conducted mainly remotely because beamlines remain shut down, or have restricted access even though the beamlines are operating. By contrast, synchrotron radiation facilities in East Asia, including China, South Korea, and Taiwan, are generally operating normally. However, business travel restrictions have yet to be lifted due to the spread of COVID-19, preventing travel to key sales regions such as China and constraining sales activities.」

「At synchrotron radiation facilities in Europe and the US that are customers of the Company, research activities have continued to rely mainly on remote work, with strict limits on access to the facilities due to beamline shutdowns, or access restrictions despite the beamlines remaining operational. Further stringent restrictions were imposed following lockdown measures introduced at the end of the year, leaving many facilities close to a standstill. In addition, a German manufacturing subcontractor ceased operations due to the country's lockdown measures, and difficult conditions have continued across the industry.」

「The global economy has begun to show a moderate recovery in China and Asia as the effects of the pandemic have subsided, while in Europe and the US the situation remains unpredictable, with no end to the pandemic in sight.」

「The spread of COVID-19 has also had a major impact in countries around the world where synchrotron radiation facilities, the Company's major customers, are located. Economic activity has been unable to continue under normal conditions, leaving the outlook highly uncertain.」

「During the cumulative third quarter period, Japan's economy was in a difficult situation as uncertainty about the outlook increased significantly due to the spread of COVID-19. The situation was similar worldwide, and the Company, which conducts business with public research institutions in countries around the world, has also begun to feel the effects.」

「During the cumulative second quarter period, Japan's economy remained on a moderate recovery trend, supported by improvements in corporate earnings and the employment environment, but the outlook remained uncertain, with concerns persisting about overseas political and economic developments.」

「During the cumulative first quarter period, Japan's economy remained on a moderate recovery trend, supported by improvements in corporate earnings and the employment environment, but the outlook became uncertain as consumer sentiment weakened ahead of the consumption tax increase and unstable overseas political conditions, including US-China trade friction, affected the economy.」

「Japan's economy was on a moderate recovery trend during the fiscal year, supported by improvements in corporate earnings and the employment environment, but the outlook remained uncertain due to escalating trade friction resulting from protectionist trade policies by the US and China, as well as diplomatic issues between Japan and South Korea.」

「During the cumulative third quarter period, Japan's economy remained on a moderate recovery trend, supported by improvements in corporate earnings and the employment and income environment, but the outlook remained uncertain due to concerns including US-China trade friction and the UK's withdrawal from the EU.」

「During the cumulative second quarter period, Japan's economy remained on a moderate recovery trend as corporate earnings gradually improved, but concerns remained about the uncertain outlook due to successive natural disasters and volatility in domestic financial markets. The effects of trade friction resulting from US protectionist trade policies spreading across Asia were also a concern.」

「Concerns remain about the uncertain outlook due to disruptions to logistics and production caused by successive natural disasters, including torrential rains and typhoons in western Japan and earthquakes in Osaka and Hokkaido, as well as trade friction resulting from US protectionist trade policies beginning to affect Asian countries outside China.」

「Although uncertainty remains in the global economy, including the slowdown in economic growth in China and emerging markets, the economy showed signs of a moderate recovery.」

「However, concerns remain about the uncertain outlook, including significant volatility in foreign exchange and equity markets.」