Country-specific risks associated with overseas operations

「During the consolidated fiscal year, the domestic economy remained on a gradual recovery path against the backdrop of improving employment and income conditions. However, uncertainty surrounding the operating environment was increasing owing to exchange-rate fluctuations, the impact of U.S. tariff policy, and heightened tensions in the Middle East in the latter half of the fiscal year, which raised concerns over soaring raw material and energy prices and supply chain instability.」

「今後の見通しにつきましては、緩やかな景気回復の継続が期待される一方、中東情勢を始めとする世界的な地政学リスクの高まりによる景気不透明感や原材料価格、エネルギーコストの動向等の懸念材料も多く、足元の情勢は見通しにくい状況が続いております。」

「During the interim consolidated accounting period, signs of an economic recovery continued in Japan against the backdrop of improving employment and income conditions. However, the operating environment remained uncertain owing to exchange-rate fluctuations, the impact of U.S. tariff policy, and persistently high energy and raw material costs resulting from the prolonged situations in Ukraine and the Middle East.」

「Looking ahead, continued gradual economic recovery is expected as employment and income conditions improve. However, many concerns remain, including developments in U.S. tariff policy, exchange-rate fluctuations, concerns over China's economic outlook, and prolonged geopolitical risks, and the challenging operating environment is expected to continue.」

「During the interim consolidated accounting period, economic conditions remained on a gradual recovery path, driven mainly by domestic demand as employment and income conditions improved. However, the operating environment remained uncertain, with geopolitical risks rising amid unstable international conditions, raw material and energy prices remaining high, and logistics and labor costs expected to rise amid an increasingly severe labor shortage.」

「The Group operates mainly through joint ventures in North America, China, Thailand, Indonesia, and India. Its overseas operations may encounter the following difficulties in each country or region, which could affect the Group's operating results and financial position.」

「Although supply chain disruptions caused by the global semiconductor shortage and lockdowns in China, among other factors, affected production volumes at key automotive customers, demand recovered year on year and segment revenue was ¥29.341 billion, up 14.5%.」

「Although the recovery in production volumes at key automotive customers has been somewhat delayed by supply chain disruptions caused by the global semiconductor shortage and lockdowns in China, among other factors, segment revenue remained firm above the year-earlier period at ¥18.104 billion, up 12.9% year on year.」

「During the first three months of the fiscal year, progress in measures to prevent the spread of COVID-19 led to signs of a normalization of economic activity. However, the economic outlook remained uncertain owing to soaring raw material and energy prices against the backdrop of the situation in Ukraine and restrictions on economic activity in China, supply chain disruptions, and the rapid depreciation of the yen, among other factors.」

「Looking ahead, while economic activity is expected to normalize and the economy is expected to recover autonomously as the global COVID-19 pandemic continues, its end remains impossible to predict. Economic trends also face increasing risks of downward pressure on corporate earnings from further increases in raw material prices due to the situation in Ukraine, supply chain disruptions, and the impact of the global semiconductor shortage, among other factors, and the outlook is expected to remain uncertain.」

「Automobile production volumes were below the initial plan due to the global semiconductor shortage and the impact of the spread of COVID-19 in the ASEAN region, among other factors,」

「In the automotive products-related business, earnings moved toward recovery in the latter half of the fiscal year, mainly as a result of recovering demand in the Chinese market, lower raw material prices, and the effects of thoroughly implementing measures to improve profitability. However, during the first six months of the fiscal year, performance fell substantially short of the previous fiscal year, largely because of the decline in production volumes at major customers, which are automakers, and the impact of a temporary factory shutdown by the consolidated subsidiary in Wuhan, China, to prevent the spread of infection.」

「A consolidated subsidiary in Wuhan, China temporarily suspended factory operations to prevent the spread of infection, among other factors, resulting in a substantial decline in orders and production,」

「Toward the end of the fiscal year, economic activity stagnated as the spread of COVID-19 caused domestic and overseas economies to deteriorate rapidly, further increasing uncertainty.」

「During the first nine months of the fiscal year, the Japanese economy remained on a gradual recovery path, supported by improvements in employment conditions, although strong concerns over an economic slowdown in China and global trade friction meant that the economic outlook remained uncertain.」

「Meanwhile, overseas, concerns over an economic slowdown in China and the prolonged global trade friction increased uncertainty over the economic outlook.」

「During the first three months of the fiscal year, the Japanese economy remained on a gradual recovery path, supported by improvements in employment conditions, although the outlook for the global economy remained uncertain owing to concerns over an economic slowdown in China and global trade friction.」

「The Group operates primarily through joint ventures in North America, China, Thailand, Indonesia, and India. Its overseas operations may encounter difficulties in the respective countries and regions in the areas listed below and elsewhere, which could affect the Group's operating results and financial position.」

「During the first nine months of the fiscal year, the Japanese economy remained on a gradual recovery path, supported by improvements in corporate earnings and employment conditions, although concerns arose over stagnation due to rising costs, including raw material prices, and a succession of natural disasters. The outlook for the global economy also remained uncertain, owing to the impact of escalating trade friction stemming from the protectionist policies of the United States.」

「During the first six months of the fiscal year, the Japanese economy remained on a gradual recovery path, supported by improvements in corporate earnings and employment conditions, although concerns arose over stagnation due to rising costs, including raw material prices, and a succession of natural disasters. The outlook for the global economy also remained uncertain, owing to the impact of escalating trade friction stemming from the protectionist policies of the United States.」

「The outlook for the global economy remains uncertain due to concerns about intensifying global trade friction.」

「The Group operates primarily through joint ventures in North America, China, Thailand, Indonesia, and India. Its overseas operations may encounter difficulties in the respective countries and regions in the areas listed below and elsewhere, which could affect the Group's operating results and financial position.」

「Meanwhile, the global economy remains relatively strong, led by the United States, but the outlook continues to be uncertain as geopolitical risks, including the North Korean issue, remain elevated.」

「The global economy remains relatively strong, led by the United States, but the outlook is uncertain due to sluggish growth in the Chinese economy and rising geopolitical risks, including the North Korean issue.」

「The global economy remains relatively strong, led by the United States, but the outlook is uncertain due to rising geopolitical risks, including developments in the Chinese economy, religious conflict in the Middle East, and the North Korean issue.」

「The Group operates primarily through joint ventures in North America, China, Thailand, Indonesia, and India. Its overseas operations may encounter difficulties in the respective countries and regions in the areas listed below and elsewhere, which could affect the Group's operating results and financial position.」

「During the nine months ended the third quarter of the current consolidated fiscal year, the Japanese economy showed signs of recovery due to stable crude oil prices, improving employment conditions, and a recovery in personal consumption. Overseas, however, the outlook remained uncertain, despite continued strength in the U.S. economy, due to the potential impact of the new U.S. administration, the UK's withdrawal from the EU, and the slowdown in the Chinese economy.」

「During the six months ended the second quarter of the current consolidated fiscal year, the global economy remained uncertain, despite continued strength in the U.S. economy, due to the impact of the UK's withdrawal from the EU, a trend toward slower economic growth in China, and economic conditions in emerging markets.」

「During the first quarter of the current consolidated fiscal year, the global economy remained uncertain, despite continued strength in the U.S. economy, due to the UK's withdrawal from the EU and slowing economic growth in China and Southeast Asia.」

「The Group's overseas operations may encounter difficulties in the respective countries and regions in the areas listed below and elsewhere, which could affect the Group's operating results and financial position.」