Political, Economic and Legal Change Risks Associated with Overseas Expansion

「In addition to heightened geopolitical risks, including growing tensions in the Middle East, concerns remain that China's economic stagnation and developments in U.S. trade policy will continue to affect energy and raw-material price volatility, logistics and supply chains, and the outlook remains uncertain.」

「In addition to the slowdown in China’s economy and the lack of predictability surrounding US trade policies, geopolitical risks, including escalating tensions in the Middle East, continue to rise.」

「Capital investment in the corporate sector remains firm, but uncertainty about the outlook is increasing due to the slowdown in overseas economies and the impact of US trade policies. Overall, the economy is on a moderate recovery trend, but conditions remain unstable and the outlook is susceptible to changes in the external environment.」

「The company may be affected by the economic and trade policies of governments in various countries. Specifically, risks include previously duty-free exports becoming subject to tariffs, or tariffs on products that were already subject to duties being raised substantially.」

「However, uncertainty persists in international affairs, including downside risks to the economy from continued global monetary tightening, ongoing conflicts and rising geopolitical risks in various regions, concerns about China’s economic outlook, and continued yen depreciation in the foreign exchange market.」

「Overseas conditions remain uncertain due to the prolonged Russian invasion of Ukraine, escalating tensions in the Middle East, the impact of global monetary tightening, and concerns about China’s economic outlook.」

「Meanwhile, caution is warranted regarding developments in overseas economies, including global monetary tightening, rising risks of an economic downturn due to inflation, escalating tensions in the Middle East, and China’s real estate downturn, and the outlook remains uncertain.」

「Meanwhile, the global outlook remains uncertain due to the prolonged invasion of Ukraine, persistently high inflation, and concerns about an economic slowdown resulting from accelerated monetary tightening.」

「Prices remain elevated and conditions uncertain due to higher resource, raw material and energy prices resulting from the prolonged invasion of Ukraine and higher import prices caused by yen depreciation.」

「Meanwhile, the company operated in an uncertain environment amid surging energy and raw material prices resulting from the prolonged situation in Ukraine, supply constraints caused by semiconductor shortages and supply chain disruptions, and the lifting of China’s zero-COVID policy. In addition, yen depreciation driven by global monetary tightening and global inflationary trends increased upward pressure on prices and had a significant impact on economic activity.」

「The company remains exposed to changes in the global environment, including the impact of rapid yen depreciation on household purchasing power and consumer sentiment, surging energy and raw material prices following Russia’s invasion of Ukraine, logistics disruptions resulting from China’s zero-COVID policy, and efforts to address global environmental and social issues. The economic outlook therefore remains uncertain.」

「In addition to a prolonged semiconductor shortage, supply chain disruptions, surging raw material prices and logistics costs, and rapid yen depreciation, Russia’s invasion of Ukraine has further occurred, and the outlook remains uncertain.」

「However, the outlook remains uncertain amid concerns about the risk of renewed infections following the emergence of the Omicron variant.」

「During the six months ended the second quarter, economic activity partially resumed in some foreign countries following the lifting of strict lockdowns imposed because of the spread of COVID-19, and demand recovered sharply in some overseas markets, particularly the automobile market. There was also some positive news, including the holding of the Tokyo Olympic and Paralympic Games as vaccination rates reached a certain level. However, the issuance of a fourth state of emergency declaration and requests to refrain from nonessential outings significantly restricted economic activity in Japan, while personal consumption remained weak and conditions continued to be challenging.」

「During the nine months ended the third quarter, the impact of the spread of COVID-19 persisted, economic activity remained restricted, and corporate earnings declined significantly across a wide range of business areas. Personal consumption, which had shown signs of a gradual recovery, remained weak as infections began to spread again, leaving the economic outlook uncertain.」

「During the six months ended the second quarter, Japan’s economy saw economic activity restricted by the global spread of COVID-19. Personal consumption showed some signs of recovery following the introduction of economic stimulus measures such as the issuance of regional common coupons by the government, but the outlook remained uncertain amid declines in automobile production and in the number of travelers, including inbound visitors, as well as persistently high numbers of new COVID-19 cases in Europe and the United States, where the economy was stagnating.」

「During the three months ended the first quarter, Japan’s economy was affected by the global spread of COVID-19, which severely restricted the movement of people, significantly reduced personal consumption, particularly in the leisure and services sectors, and affected production activity across a broad range of industries. The outlook is therefore extremely uncertain.」

「However, numerous sources of international uncertainty, including US-China trade friction, worsening Japan-South Korea relations and turmoil in the Middle East, remain, while the spread of COVID-19 domestically since late in the fiscal year has made economic activity unpredictable.」

「The company faces an extremely uncertain operating environment, with concerns about a pullback following front-loaded demand ahead of the consumption tax increase and weaker consumer sentiment, as well as numerous ongoing sources of uncertainty internationally, including US-China trade friction, the prolonged issue of the United Kingdom’s withdrawal from the EU, worsening Japan-South Korea relations, and turmoil in the Middle East.」

「During the six months ended the second quarter, Japan’s economy benefited from solid employment and income conditions, and some areas remained on a recovery trend. However, external demand was weakening due to the global economic slowdown, while the outlook remained uncertain because of prolonged bilateral trade issues between the United States and China, the United Kingdom’s withdrawal from the EU, and instability in the Middle East.」

「Meanwhile, overseas conditions remain uncertain due to continued instability, including prolonged US-China trade friction and concerns about a slowdown in China’s economy.」

「In the regions where the Group operates, political and economic conditions and regulatory amendments may result in labor shortages, strikes, terrorism and war. These events may affect the Group’s operating results and financial position.」

「However, the outlook remains uncertain due to destabilization in overseas conditions, including US-China trade friction, political turmoil in Europe and the United States, a slowdown in China’s economy, yen appreciation, and geopolitical risks in various regions.」

「However, the outlook remains uncertain due to factors including escalating US-China trade friction, rising US interest rates, and the resulting increase in the risk of a global economic downturn.」

「While the global economy continued to grow gradually, overseas conditions remained uncertain due to the potential impact of developments in trade issues and volatility in financial and capital markets.」

「The Group operates globally, but recent international developments have led to pronounced economic downturns in some regions and heightened political tensions in others. In the regions where the Group operates, political and economic conditions and regulatory amendments may result in labor shortages, strikes, terrorism and war.」

「While the global economy continues to grow moderately, overseas conditions remain uncertain due to economic slowdowns in some emerging markets and rising geopolitical risks.」

「In addition, overseas conditions remain uncertain amid protectionist moves in developed countries such as those in Europe and the United States and rising geopolitical risks in East Asia.」

「Overseas conditions remain uncertain due to stagnant emerging-market economies, rising geopolitical risks in the Middle East and East Asia, and the economic policies of the US administration, among other factors.」

「The Group operates globally, but recent international developments have led to pronounced economic downturns in some regions and heightened political tensions in others. In the regions where the Group operates, political and economic conditions and regulatory amendments may result in labor shortages, strikes, terrorism and war.」

「However, the outlook remains uncertain due to factors including capital outflows from emerging markets following US interest-rate hikes, economic slowdowns in resource-rich countries resulting from lower resource prices, political instability in Europe stemming from the United Kingdom’s withdrawal from the EU, and financial market turmoil following a change of government in the United States.」

「There is a risk that economic downturns in China and other emerging Asian economies and resource-rich countries could weigh on Japan’s economy, while overseas conditions, including the United Kingdom’s withdrawal from the EU, remain uncertain.」

「In Europe, concerns remain about the potential impact of the United Kingdom’s withdrawal from the EU on the global economy, while overseas conditions have become uncertain due to factors including the outcome of the US presidential election and global geopolitical risks arising from instability in the Middle East.」

「The Group operates globally, but recent international developments have led to pronounced economic downturns in some regions and heightened political tensions in others. In the regions where the Group operates, political and economic conditions and regulatory amendments may result in labor shortages, strikes, terrorism and war.」