Country, Legal and Regulatory, and Labor Risks in Overseas Operations

「Overseas sales accounted for 55.1% of consolidated net sales in the fiscal year, comprising 15.8% in North America, 38.4% in Asia, 0.9% in Europe and 0.1% in other regions, indicating the growing importance of sales to overseas markets.」

「Although higher tariffs in the United States affected some consumption and investment activity, the economy was generally firm. In China, domestic demand slowed due to the sluggish real estate market and other factors, while a certain level of growth was maintained through increased exports.」

「The outlook for the global and Japanese economies is expected to become even more uncertain due to the effects of U.S. tariff policy, the emergence of geopolitical risks, exchange-rate movements and the aftereffects of sustained inflation, among other factors.」

「Meanwhile, the outlook remains uncertain due to geopolitical risks, including the prolonged situation in Ukraine and tensions in the Middle East, as well as recession risks arising from changes in monetary policy in various countries and the downturn in China’s real estate market.」

「In overseas markets, sales volume of malic acid declined, as markets in Europe and the United States fell sharply despite remaining firm in China.」

「Under these conditions, the U.S. economy performed well, supported by firm personal consumption, while the European economy continued to stagnate. In China, the sluggish real estate market continued, consumer conditions remained challenging, and a slowdown in growth became apparent. With the prolonged situation in Ukraine and the intensifying situation in the Middle East also posing issues, the outlook for the global economy remains unpredictable.」

「Under these conditions, the U.S. economy remained firm, while the European economy continued to stagnate. Although a recovery in the Chinese economy from the COVID-19 pandemic was anticipated, the economy has recovered only gradually, as the sluggish real estate market and other factors have continued. With the intensifying situation in the Middle East also becoming an issue, the outlook for the global economy remains unpredictable.」

「Against a backdrop of continued monetary tightening to address inflation, the U.S. economy remained firm, while the European economy stagnated. Although a recovery in the Chinese economy from the COVID-19 pandemic was anticipated, the recovery did not reach the expected level.」

「Overseas sales accounted for 50.3% of consolidated net sales in the fiscal year, comprising 16.7% in North America, 31.2% in Asia, 2.1% in Europe and 0.3% in other regions, with the proportion of sales to overseas markets increasing year by year.」

「During the cumulative third quarter of the consolidated fiscal year under review, global inflation continued to advance, while issues of concern for their economic impact, including a recession caused by interest-rate increases in Europe and the United States, developments in the Chinese economy and the prolonged situation in Ukraine, continued.」

「During the cumulative second quarter of the consolidated fiscal year under review, inflation continued to advance, and concerns about an economic downturn caused by interest-rate increases intensified as central banks in Europe and the United States strengthened monetary tightening. In addition, issues of concern for their economic impact, including the slowdown of the Chinese economy and the prolonged situation in Ukraine, have expanded and continued.」

「Overseas sales accounted for 47.0% of consolidated net sales in the fiscal year, comprising 18.1% in North America, 26.8% in Asia, 1.7% in Europe and 0.4% in other regions, with the proportion of sales to overseas markets increasing year by year.」

「Although the global economy is generally recovering, uncertainty about the outlook has increased further due to soaring resource and energy prices, disruptions in logistics centered on shipping, resulting increases in the prices of grain, raw materials and supplies and concerns about procurement, slowing growth in China, concerns over semiconductor supply, and continuing and emerging political conflicts, including those centered on tensions between the United States and China.」

「In China, efforts to contain the spread of infections are continuing, but various economic challenges have become apparent and economic growth is slowing. In other parts of Asia, Taiwan’s economy is performing well, led by semiconductors, while the spread of infections in Southeast Asia is affecting supply chains across various industries.」

「Overseas sales accounted for 43.6% of consolidated net sales in the fiscal year, comprising 16.4% in North America, 26.3% in Asia, 0.7% in Europe and 0.2% in other regions, with the proportion of sales to overseas markets increasing year by year.」

「Although overseas subsidiaries have recently shown signs of recovery, they were affected by downturns in the Chinese and US economies.」

「Although overseas subsidiaries have recently shown signs of recovery, they were affected by downturns in the Chinese and US economies.」

「In Japan, unit selling prices for products whose prices are linked to raw material prices declined, as in the previous consolidated fiscal year, and sales of products for beverage applications and other uses declined due to the impact of reduced demand resulting from people refraining from going out. At overseas subsidiaries, sales were affected by economic downturns in China and the United States, and consequently fell below those in the previous cumulative quarterly consolidated accounting period.」

「In the consolidated fiscal year under review, overseas sales accounted for 41.8% of consolidated sales, comprising 18.0% in North America, 23.3% in Asia, 0.3% in Europe and 0.2% in other regions. The share of sales generated overseas has been rising year by year.」

「However, although signs of short-term easing have emerged, including a partial agreement in the U.S.-China trade dispute, geopolitical risks, including the situation in the Middle East, have increased and concerns about the continued expansion of the economy remain. In China, signs of a bottoming out have emerged as a result of economic policies, but the economy continues to slow due to the impact of trade friction. In Europe, although the issue of the United Kingdom’s withdrawal from the EU is moving toward resolution, the impact of the slowdown in the Chinese economy continues. In Japan, the economy continues to recover, supported in part by signs of a recovery in the semiconductor market, but uncertainty about the outlook persists due to the stagnation of the Chinese economy resulting from the U.S.-China trade dispute, rising geopolitical risks centered on the Middle East and East Asia, and the economic and foreign-exchange effects of the novel coronavirus, among other factors.」

「Although the U.S. economy remained firm, the effects of trade friction gradually emerged, increasing concerns about the continued expansion of the economy. The Chinese economy continued to slow due to the effects of trade friction, while the European economy showed increasingly clear signs of slowing due to the impact of the Chinese economy, political instability and other issues.」

「Although the U.S. economy remained firm, the effects of trade friction gradually emerged, increasing concerns about the continued expansion of the economy. The Chinese economy continued to slow due to the effects of trade friction, while the European economy showed increasingly clear signs of slowing due to the impact of the Chinese economy, political instability and other issues.」

「Sales exceeded those in the previous cumulative quarterly consolidated accounting period, due to strong local sales at overseas subsidiaries in all regions and the effect, among other factors, of the antidumping petition filed by the U.S. subsidiary PMP Fermentation Products, Inc. being accepted. Meanwhile, although efforts were made to reduce costs, the increase in raw material and imported procurement prices and the costs recognized in connection with the antidumping petition became factors weighing on operating profit.」

「Meanwhile, although efforts were made to reduce costs, the increase in raw material and imported procurement prices and the costs recognized in connection with the antidumping petition filed by the U.S. subsidiary PMP Fermentation Products, Inc. became factors weighing on operating profit.」

「Meanwhile, although efforts were made to reduce costs, the increase in raw material and imported procurement prices and the costs recognized in connection with the antidumping petition filed by the U.S. subsidiary PMP Fermentation Products, Inc. became factors weighing on operating profit.」

「Meanwhile, the global economy continued to recover, as improvements in employment conditions in Europe and the United States increased personal consumption and capital investment. However, the outlook remained uncertain due to concerns over political conditions spreading across Western countries, rising geopolitical risks in Asia and economic uncertainty in emerging markets.」

「Meanwhile, the global economy continued to recover, as improvements in employment conditions in Europe and the United States increased personal consumption and capital investment. However, the outlook remained uncertain due to concerns over political conditions spreading across Western countries and rising geopolitical risks in Asia.」

「Meanwhile, although the global economy continued to recover in Europe and the United States, the outlook remained uncertain due to concerns over political conditions spreading across Western countries and rising geopolitical risks in Asia.」

「Businesses operating in overseas markets face specific risks, including social and economic country risks, differences in human resources and labor environments, and tighter regulation and other legal requirements, which may affect the performance of the Group.」