Exposure to Major End-Demand Industries and Foreign Exchange Fluctuations

「In the Group's main end markets, demand from the logistics and automotive sectors remained firm, while demand for semiconductor manufacturing equipment entered a recovery trend toward the end of the fiscal year.」

「For the Group, demand from the logistics sector remained firm, and demand from the automotive sector showed signs of recovery, but other sectors continued to stagnate.」

「During the consolidated fiscal year, signs of economic recovery were seen in many regions, but uncertainty about the outlook increased due to the continued high interest-rate levels in Europe and the United States, stagnation in the Chinese economy, developments surrounding Ukraine and the Middle East, and, more recently, developments in U.S. tariff policy.」

「In the Group's main end markets, demand for semiconductor manufacturing equipment showed signs of recovery, and demand from the logistics sector also improved in North America and elsewhere, but demand from the automotive and construction equipment sectors remained sluggish.」

「For the Group, demand for semiconductor manufacturing equipment showed signs of recovery, while demand from the logistics and automotive sectors and others remained sluggish.」

「For the Group, demand from the automotive sector entered a recovery trend as the semiconductor shortage eased, while demand for semiconductor manufacturing equipment remained sluggish due to the impact of production adjustments and other factors.」

「For the Group, demand from the automotive sector entered a recovery trend as the semiconductor shortage eased, while demand for semiconductor manufacturing equipment remained sluggish due to the impact of production adjustments and other factors.」

「For the Group, demand from the automotive sector entered a recovery trend as the semiconductor shortage eased, while demand for semiconductor manufacturing equipment remained sluggish due to the impact of production adjustments and other factors.」

「In the Group's main end markets, demand from the semiconductor and logistics sectors, which had remained firm, slowed toward the second half of the fiscal year due to restrained capital investment and other factors. In contrast, demand from the automotive sector, which had remained sluggish due to the semiconductor shortage and other factors, entered a recovery trend toward the second half of the fiscal year.」

「For the Group, demand from the semiconductor sector, a main end market, remained firm, while demand from the logistics sector entered a slowing trend due to restrained capital investment and other factors. Although demand from the automotive sector showed some recovery, it remained sluggish due to the continuing impact of production adjustments resulting from the semiconductor shortage and other factors.」

「During the first half of the fiscal year, the global economy remained uncertain, with resource prices rising sharply due to the prolonged Russia-Ukraine war and growing concerns about an economic downturn resulting from the global trend toward monetary tightening. In Japan, economic activity moved toward normalization as restrictions on activities to control COVID-19 were eased, but uncertainty about the outlook increased further due to soaring energy and raw material prices, supply constraints affecting some components, and the rapid depreciation of the yen.」

「During the first quarter of the fiscal year, the global economy became more uncertain amid progress in balancing measures to control COVID-19 with economic activity, as well as supply constraints and higher raw material prices resulting from the prolonged Russia-Ukraine war and the impact of lockdowns caused by the spread of COVID-19 in China. Financial and capital markets also fluctuated sharply. In Japan, the risk of severe illness among infected people declined as the vaccination rate rose, and social activity moved toward normalization. However, price increases spread across a wide range of areas, mainly due to the rapid depreciation of the yen and supply constraints affecting various raw materials and products, significantly affecting economic activity.」

「During the consolidated fiscal year, the global economy remained on a recovery track as progress was made in balancing infection control and economic activity through the widespread rollout of vaccines and economic support measures in various countries in response to the successive emergence of new COVID-19 variants. In Japan, economic activity, which had stagnated, gradually resumed with the spread of vaccinations, and the economy showed signs of recovery. More recently, however, uncertainty surrounding the global economy has increased further, with raw material prices rising further as a result of Russia's invasion of Ukraine, disruptions in supply chains, and a rapid depreciation of the yen.」

「Demand from the automotive sector was recovering compared with the same period of the previous year through the second quarter, but subsequently entered a slowing trend due to the impact of the semiconductor shortage and other factors.」

「In the Group's main end markets, demand from the logistics and semiconductor sectors remained strong, while demand from the machine tool sector and others also recovered. Although demand from the automotive sector recovered from the previous fiscal year, the recovery weakened due to the impact of the semiconductor shortage and other factors.」

「In the Group's main end markets, demand from the logistics and semiconductor sectors remained strong, driven by the expansion of e-commerce and robust semiconductor demand, while demand from the automotive and machine tool sectors and others also recovered.」

「In our Group’s key end-market industries, demand from the logistics and semiconductor industries remained firm, and demand from the automotive industry and other sectors showed signs of recovery, although demand from the machine tool industry and other sectors remained sluggish.」

「In our Group’s key end-market industries, demand from the logistics and semiconductor industries remained firm, but demand from the automotive and machine tool industries and other sectors continued to face difficult conditions due to the spread of the novel coronavirus infection.」

「In our Group’s key end-market industries, demand from the logistics industry remained firm, partly due to the increase in people staying at home, while demand from the automotive and machine tool industries and other sectors fell sharply.」

「During the current consolidated fiscal year, in addition to the slowdown in the Chinese economy caused by prolonged US-China trade friction, the spread of the novel coronavirus from the fourth quarter onward affected economic activity in countries around the world, further increasing uncertainty about the outlook.」

「During the cumulative third quarter of the current consolidated fiscal year, the global economy remained difficult to forecast, including due to a slowdown in the Chinese economy caused by prolonged US-China trade friction. The domestic economy also showed stronger signs of slowing due to weak external demand and a cautious stance toward domestic capital investment. In our Group’s key end-market industries, demand from the logistics industry remained firm, but demand from the semiconductor and machine tool industries and other sectors continued to be sluggish.」

「During the cumulative second quarter of the current consolidated fiscal year, the global economy entered an uncertain period as China’s economic growth slowed due to prolonged US-China trade friction and uncertainty increased in the European economy due to the United Kingdom’s withdrawal from the EU and other factors. The domestic economy also showed stronger signs of slowing, despite resilient domestic demand, due to deteriorating external demand and a cautious stance toward capital investment. In our Group’s key end-market industries, demand from the logistics industry remained firm, while demand from the semiconductor and machine tool industries and other sectors slowed.」

「During the cumulative first quarter of the current consolidated fiscal year, the global economy grew moderately overall, but business sentiment deteriorated and downside risks to the outlook strengthened amid concerns over a slowdown in the Chinese economy due to the impact of US-China trade friction. The domestic economy also followed a moderate recovery trend, but the earnings environment deteriorated, particularly for export companies, amid concerns over an economic downturn due to US-China trade friction and other factors. In our Group’s key end-market industries, demand from the logistics industry remained firm, while demand for the semiconductor industry and other sectors slowed both in Japan and overseas.」

「During the current consolidated fiscal year, the global economy was generally strong in the first half, but uncertainty about the outlook increased in the second half due to China’s economic slowdown associated with worsening US-China trade friction, the United Kingdom’s withdrawal from the EU and other factors.」

「During the cumulative third quarter of the current consolidated fiscal year, the global economy continued to expand in the United States, although worsening trade friction with China had a negative impact on the performance of some companies. In Europe, a gradual economic recovery continued, but the outlook remained uncertain due in part to the United Kingdom’s withdrawal from the EU. In China, economic growth slowed due in part to the impact of US-China trade friction. The domestic economy followed a gradual recovery trend, supported by improved corporate earnings and conditions in the employment market. However, concerns over deterioration in corporate performance due to the impact of US-China trade friction have increased downside risks. In our Group’s key end-market industries, domestic demand from the logistics and automotive industries remained robust, although signs of slowing demand were seen in the semiconductor industry and other sectors. Overseas, demand from the logistics industry and other sectors remained firm, mainly in Europe and the United States.」

「In our Group’s key end-market industries, domestic demand, including demand from the logistics industry and for semiconductor manufacturing equipment, remained robust. Overseas, demand from the logistics industry and other sectors remained firm, mainly in Europe and the United States.」

「Our Group’s key end-market industries continued to perform well, and demand remained firm. In particular, demand from the logistics and construction machinery industries remained at high levels both in Japan and overseas.」

「In our Group’s key end-market industries, demand for the logistics and semiconductor-related industries remained robust globally, while demand related to the robotics industry in Japan and the automotive industry in Asia remained firm.」

「In our Group’s key end-market industries, domestic demand, including demand from the logistics industry and for semiconductor manufacturing equipment, remained robust. Overseas, demand from the automotive and logistics industries and other sectors remained firm in North and Central/South America, while demand from the semiconductor industry also remained robust in Asia.」

「In terms of earnings, although the benefits of ongoing productivity improvements were realised, operating profit declined to ¥4.288 billion, down ¥310 million, or 6.7%, from the previous consolidated fiscal year due to upfront costs for achieving the medium- to long-term management plan and foreign exchange effects. Although the performance of equity-method affiliates remained firm, equity in earnings of affiliates decreased by ¥459 million from the previous consolidated fiscal year due to foreign exchange and other factors.」

「As for ordinary profit, the performance of equity-method affiliates was somewhat weak due to the impact of foreign exchange and other factors, resulting in ¥7.187 billion, down ¥1.42 billion, or 16.5%, year on year.」

「Overseas, demand for the automotive and logistics industries and other sectors remained firm in North and Central/South America, although a trend toward lower construction machinery production continued in Asia.」

「Demand for construction materials and sealing products for machine tools was sluggish in the rubber products business. In addition, the performance of an equity-method affiliate was somewhat weak due to the impact of foreign exchange and other factors, resulting in ¥2.46 billion, down ¥486 million, or 16.5%, year on year.」

「The performance of our Group may be affected by trends in the machine tool, construction machinery, precision machinery, automotive, electronics and semiconductor industries, as well as foreign exchange movements.」