Downturn in Overseas Economic Conditions and Volatility in Financial and Capital Markets

「During the first quarter of the consolidated fiscal year under review (1 February 2026 to 30 April 2026), the global economy faced a new geopolitical risk in the form of escalating conflict in the Middle East stemming from the situation in Iran from late February onward, amid continued uncertainty caused by protectionist trade policies.」

「During the consolidated fiscal year under review (1 February 2025 to 31 January 2026), the global economy entered a phase of structural decoupling as protectionism, symbolized by U.S. tariff policy, became institutionally entrenched, in addition to the prolonged geopolitical risks. In particular, the continued high-interest-rate environment in major countries and concerns about a resurgence of inflation became unavoidable downside factors for the global discretionary consumer market.」

「During the consolidated fiscal year under review (1 February 2025 to 31 January 2026), the global economy entered a phase of structural decoupling, or economic fragmentation, as protectionism, symbolised by US tariff policy, became institutionally entrenched in addition to prolonged geopolitical risks.」

「During the interim consolidated accounting period under review (1 February 2024 to 31 July 2024), the global economy remained opaque, with downside risks, due to the prolonged Russian invasion of Ukraine, the extended conflict in the Gaza Strip in the Middle East, uncertainty over the economic outlook in Europe, the United States and China, and higher policy interest rates resulting from global inflation.」

「During the cumulative first quarter under review, the global economy remained opaque, with downside risks, due to the prolonged Russian invasion of Ukraine, the extended conflict in the Gaza Strip in the Middle East, and the impact of persistently high inflation resulting from global monetary tightening.」

「As monetary tightening progressed worldwide, an opaque environment accompanied by downside risks continued due in part to the impact of persistently high inflation.」

「During the cumulative second quarter under review (1 February 2023 to 31 July 2023), the global economy showed signs of a gradual recovery, but remained uncertain and opaque due in part to the continued progress of global monetary tightening and persistently high inflation.」

「As monetary tightening progressed worldwide, the global economy remained uncertain and opaque due in part to the impact of persistently high inflation.」

「In addition to rising inflationary pressure against the backdrop of soaring crude oil prices due to the protracted situation between Russia and Ukraine, rapid interest rate increases, yen depreciation, and the impact of airspace restrictions on international logistics, the need to address increasingly diverse geopolitical risks is putting pressure on corporate earnings, amid expectations that disruption to the supply chain supporting the economy will continue.」

「During the cumulative third quarter under review (1 February 2022 to 31 October 2022), the global economy remained uncertain and opaque, as the spread of COVID-19 continued to intensify and the virus repeatedly mutated, while monetary tightening progressed worldwide.」

「In addition, the depreciation of the yen, soaring crude oil prices due to the protracted situation between Russia and Ukraine, and the impact of airspace restrictions on international logistics have placed pressure on corporate earnings, amid expectations that disruption to the supply chain supporting the economy will continue and the need to address increasingly diverse geopolitical risks.」

「In addition, the depreciation of the yen, soaring crude oil prices due to the situation between Russia and Ukraine, and the impact of airspace restrictions on international logistics have placed pressure on corporate earnings, amid expectations of further disruption to the supply chain supporting the economy and the need to address increasingly diverse geopolitical risks.」

「Tensions surrounding Russia and Ukraine remain heightened. There are also concerns about the impact on international logistics from soaring crude oil prices and the potential restriction of airspace for flights to Europe, and further disruption is expected in the supply chain supporting the economy.」

「In addition, over the medium to long term, it will remain necessary to closely monitor developments in infectious diseases in Japan and overseas, and uncertainty over the outlook on a global scale continues to increase.」

「The impact of the renewed worldwide spread of COVID-19 infections continued for an extended period. Although countries were actively promoting vaccination, infections caused by variants were spreading rapidly, and conditions remained challenging.」

「During the cumulative first quarter under review (1 February 2021 to 30 April 2021), the global economy continued to be affected by the prolonged worldwide resurgence of COVID-19 infections due to the emergence of variants. Although countries were actively promoting vaccination and signs of progress toward containing the situation were emerging, conditions remained challenging. In Japan, economic activity declined as a result of the same impact, forcing a rapid deterioration in corporate earnings, while infections continued to spread again, further deepening concerns that the economy could underperform.」

「During the fiscal year under review (1 February 2020 to 31 January 2021), the global economy experienced a prolonged and significant deterioration due to the worldwide spread of COVID-19.」

「During the cumulative third quarter period from 1 February 2020 to 31 October 2020, the significant deterioration of the global economy caused by the worldwide spread of COVID-19 continued for an extended period, and extremely challenging conditions persisted. Japan's economy was also affected by declining economic activity, forcing corporate earnings to fall rapidly, while the spread of the infection began to increase again, deepening concerns that the economy would deteriorate further.」

「During the cumulative second quarter period from 1 February 2020 to 31 July 2020, the rapid and significant deterioration of the global economy caused by the worldwide spread of COVID-19 continued for an extended period, leaving the economy in an extremely challenging situation. Japan's economy was also affected by declining economic activity, with corporate earnings falling rapidly. As concerns deepened that the pandemic would further weigh on the economy, there were still no signs of containment, and uncertainty about the outlook continued to increase.」

「During the cumulative first quarter period from 1 February 2020 to 30 April 2020, the global economy deteriorated rapidly and significantly due to the worldwide spread of COVID-19 and entered an extremely challenging situation. Japan's economy was also affected by a decline in economic activity, with corporate earnings falling rapidly, and as concerns deepened that the pandemic would further weigh on the economy, the outlook became increasingly uncertain.」

「During the fiscal year from 1 February 2019 to 31 January 2020, Japan's economy recovered gradually in the first half, led by strong corporate earnings and supported by improving employment and income conditions. From the second half onward, however, risks emerged that the global economy would slow due to prolonged US-China trade friction, the UK's EU withdrawal, conditions in the Middle East and the global spread of the novel coronavirus. Against a backdrop of growing downside risks to the domestic economy, corporate earnings began to weaken, indicating that employment and income growth going forward would be sluggish.」

「From the second half onward, risks remained that the global economy would slow, including the impact of developments in US-China trade relations and uncertainty in overseas economies. Against a backdrop of weakening corporate earnings, employment and income growth going forward were indicated to be sluggish.」

「During the cumulative second quarter period from 1 February 2019 to 31 July 2019, Japan's economy continued to recover gradually, supported by strong corporate earnings and improving employment and income conditions, although exports and production showed weakness, particularly due to China's economic slowdown. At the same time, risks remained that the global economy would slow, including the impact of developments in US-China trade relations and uncertainty in overseas economies, and uncertainty about the global economic outlook had continued to intensify.」

「During the cumulative first quarter period from 1 February 2019 to 30 April 2019, Japan's economy had been gradually recovering against a backdrop of increased corporate capital investment and exports and improving employment and income conditions. However, uncertainty about the outlook for the global economy had intensified due to the impact of trade friction centered on the United States, concerns about US interest-rate hikes and foreign exchange movements resulting from difficulties in the UK's EU withdrawal negotiations.」

「In addition to the impact of US-China trade friction and concerns about US interest-rate hikes, increased foreign exchange volatility resulting from difficulties in the UK's EU withdrawal negotiations has heightened uncertainty about the outlook for the global economy.」

「Although personal consumption showed signs of recovery and the economy gradually recovered against a backdrop of increased corporate capital investment and exports and improving employment and income conditions, uncertainty about the outlook remained widespread due to foreign exchange movements caused by concerns about escalating trade friction resulting from the United States' protectionist trade policies and instability in overseas political conditions, including the UK's EU withdrawal issue.」

「The outlook has remained difficult to predict due to uncertainty in the external environment, including foreign exchange movements caused by concerns about escalating trade friction resulting from the United States' protectionist trade policies and instability in overseas political conditions, including the UK's EU withdrawal issue.」

「During the cumulative first quarter period from 1 February 2018 to 30 April 2018, Japan's economy showed signs of a gradual recovery. However, the economic outlook remained uncertain due to an unclear external environment, including foreign exchange movements caused by instability in overseas political conditions, such as policy changes in the United States and Central America, North Korea's nuclear and missile issues and the UK's EU withdrawal issue.」

「The company continues to cite uncertainty in the external environment caused by overseas political conditions, including policy changes in the United States, North Korea's nuclear and missile issues and the UK's EU withdrawal issue, foreign exchange movements and slowing economic growth in emerging economies as a concern for the economic outlook.」

「During the cumulative third quarter period, Japan's economy remained in a situation where the outlook was extremely difficult to assess due to an uncertain external environment, including foreign exchange movements caused by instability in overseas political conditions, such as policy changes in the United States, North Korea's nuclear and missile issues and the UK's EU withdrawal issue, as well as slowing economic growth in emerging economies, particularly China.」

「During the cumulative second quarter period, Japan's economy remained in a situation where the outlook was extremely difficult to assess due to an uncertain external environment, including foreign exchange movements caused by instability in overseas political conditions and slowing economic growth in emerging economies, particularly China, although corporate earnings and employment remained relatively stable due in part to continued monetary easing by the Bank of Japan and government economic measures.」

「During the cumulative first quarter period, Japan's economy remained in a situation where the outlook was extremely difficult to assess due to an uncertain external environment, including sharp foreign exchange movements caused by instability in overseas political conditions and slowing economic growth in emerging economies, particularly China, although corporate earnings and employment remained relatively stable due in part to continued monetary easing.」

「Amid concerns about a downturn in the global economy originating in China and other emerging Asian economies and resource-rich countries, as well as the potential impact on Japan's economy of volatility in international financial and capital markets and the UK's EU withdrawal issue, the outlook for the economy remains unpredictable.」

「In addition to concerns about a downturn in the global economy originating with China's economic slowdown in the latter half of the previous year, the sharp appreciation of the yen and decline in share prices since the beginning of the year heightened uncertainty about the outlook, and the pace of economic recovery slowed. There were no newly arising business or other risks during the cumulative second quarter period, and there were no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」