Impact on Business Performance from Changes in Demand, Prices, Competition and Economic Conditions

「As the Russia-Ukraine war continues, military conflict between the United States and Iran has heightened tensions in the Middle East, effectively closing the Strait of Hormuz and causing supply chain disruptions. Geopolitical risk has become the greatest economic risk, leaving the outlook extremely uncertain.」

「There are also concerns over the risk that a global economic downturn caused by soaring energy prices and rising geopolitical risks could lead major customers to adjust production or experience a decline in demand itself.」

「During the current consolidated fiscal year, the business environment surrounding our Group remained one in which global conditions maintained steady, albeit modest, growth, supported by expanding AI demand amid growing concerns that the prolonged Russia-Ukraine war, heightened tensions in the Middle East and the Trump tariffs would weigh on the economy.」

「In particular, tariffs imposed by the Trump administration are expected to weigh on the global economy through lower domestic demand resulting from higher prices for imports into the United States and restrained capital investment by countries due to deteriorating corporate performance.」

「During the cumulative first quarter of the current fiscal year, the business environment surrounding the Group remained uncertain due to persistently high energy and raw material prices, the prolonged Russian invasion of Ukraine, worsening conditions in the Middle East, and stagnation in the Chinese economy.」

「During the cumulative third quarter of the current fiscal year, the pace of economic recovery slowed due to global monetary tightening, the prolonged Russia-Ukraine situation, and persistently high resource and energy prices.」

「Although the US economy had been recovering steadily, the rapid monetary tightening policy aimed at curbing inflation led to the failure of some banks and financial instability.」

「During the cumulative first quarter of the current fiscal year, the business environment surrounding the Group remained difficult, with soaring energy and raw material prices, continued Russia's invasion of Ukraine amid ongoing tensions in US-China relations, and prolonged inflationary pressures.」

「The environment surrounding the Group was affected by severe monetary tightening in many countries and regions, including Europe and the United States, soaring resource prices due to Russia's invasion of Ukraine, and severe lockdowns in China that constrained economic activity and disrupted supply chains.」

「During the cumulative third quarter of the current fiscal year, while signs of recovery from the impact of COVID-19 continued, the prolonged Russian invasion of Ukraine and ongoing tensions in US-China relations accelerated soaring energy and raw material prices, semiconductor shortages and disruptions to logistics networks, further increasing uncertainty about the outlook.」

「During the six-month period ended December 31, while the impact of COVID-19 continued, Russia's invasion of Ukraine further drove up energy and raw material prices, exacerbated the semiconductor shortage and disrupted logistics networks, rapidly increasing uncertainty surrounding future economic activity.」

「During the cumulative first quarter of the current fiscal year, although the end of the COVID-19 pandemic was not in sight, the spread of vaccinations and a decline in infections, particularly in developed countries, led to the gradual easing of restrictions, with personal consumption driving an economic recovery.」

「Although the impact of COVID-19 remained and its resolution was not yet in sight, economic activity in the global economy, particularly in developed countries, followed a recovery trend due to progress in vaccinations and economic stimulus measures.」

「The global economy, which had slowed due to the impact of COVID-19, moved toward recovery as economic activity continued to recover in China, which reopened its economy early, and the United States also progressed with reopening its economy following an accelerated pace of vaccinations and the effects of additional economic measures.」

「During the cumulative first quarter of the current fiscal year, the global economy, which had been slowing due to US-China trade friction and the impact of COVID-19, showed signs of a recovery in personal consumption and exports as economic measures in various countries took effect and demand in China recovered early.」

「During the cumulative third quarter of the fiscal year, the business environment surrounding our Group was significantly affected by restrictions on economic activity worldwide following the spread of the novel coronavirus in early 2020. Although signs of a partial recovery emerged in August, market conditions remained challenging.」

「During the six months ended the second quarter of the current fiscal year, the business environment surrounding our Group became increasingly challenging because, in addition to the economic slowdown in East Asian countries, including China, the spread of COVID-19 restricted economic activity worldwide.」

「The business environment surrounding the Group became more difficult as the impact of COVID-19 on economic activity emerged in 2020, in addition to trade friction between the United States and China and the economic slowdown spreading across East Asian countries, including China, during the cumulative first quarter.」

「The Company's principal business areas are exposed to many factors, including changes in demand, prices, competitive conditions and the economic environment, which may affect business performance.」

「The Company's principal business areas are exposed to many factors, including changes in demand, prices, competitive conditions and the economic environment, which may affect business performance.」