Natural Disasters and External Factors, Including Overseas Political and Regulatory Developments

「During the fiscal year, the global economy continued to show signs of a gradual recovery in each region, but uncertainty over the outlook increased due to U.S. tariff policies and the heightened tensions in the Middle East that emerged toward the fiscal year-end.」

「In addition to supply constraints for certain raw materials resulting from geopolitical risks, there are concerns that higher raw material, logistics, and labor costs could cause performance to fall below expectations.」

「During the interim consolidated accounting period, the global economy showed signs of uncertainty due to the impact of U.S. tariff policies and other factors, but many regions showed signs of economic recovery. In Japan, a gradual recovery was seen as employment and income conditions improved, although downside risks remained due to the impact of U.S. tariff policies, higher prices and other factors.」

「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.」

「During the cumulative third quarter of the fiscal year, some regions showed weakness due to global monetary tightening, concerns over the outlook for the Chinese economy and developments in the Middle East, but the global economy continued to recover overall. In Japan, a gradual recovery trend continued as employment and income conditions improved.」

「During the cumulative second quarter of the fiscal year, the global economy continued to show signs of recovery in many regions despite persistently high raw material prices and elevated energy costs. In Japan, a gradual recovery trend continued as employment and income conditions improved.」

「During the cumulative first quarter of the fiscal year, the global economy showed signs of recovery in many regions despite persistently high raw material prices and higher energy costs. In Japan, the economy entered a gradual recovery trend as employment and income conditions improved.」

「The global economy during the fiscal year was affected by the prolonged invasion of Ukraine by Russia and global monetary tightening, resulting in a downturn in economic conditions. With high prices for resources and energy, including crude oil, continuing, concerns about an economic slowdown increased.」

「During the cumulative third quarter of the fiscal year, the global economy remained uncertain, with the prolonged Russia-Ukraine war and global monetary tightening causing a downturn in economic conditions, while high prices for resources and energy, including crude oil, continued.」

「During the cumulative second quarter of the fiscal year, uncertain conditions continued, including higher resource prices due to the prolonged Russia-Ukraine war and growing concerns about an economic recession resulting from global monetary tightening.」

「During the cumulative first quarter of the fiscal year, although efforts to contain COVID-19 and maintain economic activity progressed, uncertainty over the outlook increased due to the prolonged Russia-Ukraine war and the impact of lockdowns in China resulting from the spread of COVID-19, as well as constraints on the supply of raw materials, higher prices and substantial volatility in financial and capital markets.」

「More recently, uncertainty over the global economy has increased further, with additional increases in raw material prices and supply chain disruptions resulting from Russia's invasion of Ukraine, as well as rapid yen depreciation.」

「Meanwhile, infections with new variants have recently been spreading, while shortages of semiconductor components and elevated raw material prices and transportation costs have continued, increasing uncertainty over the economic outlook.」

「During the cumulative second quarter of the fiscal year, some regions remained in difficult conditions due to the impact of COVID-19, but economic activity resumed in major countries and their economies showed signs of recovery. In Japan, the number of infections declined as vaccinations progressed, allowing economic activity to resume, and the economy began to recover.」

「During the cumulative first quarter of the fiscal year, economic activity resumed in major countries as COVID-19 vaccinations progressed, and the global economy showed signs of recovery. In Japan, although some industries remained in difficult conditions due to the effects of states of emergency and other measures to contain COVID-19, signs of recovery continued, including in capital investment.」

「During the cumulative third quarter of the fiscal year, the Chinese economy showed signs of recovery after China contained the spread of COVID-19 at an early stage and resumed economic activity, while the spread of the virus continued in Europe and the United States, and recovery was expected to take time.」

「During the cumulative second quarter of the fiscal year, the Chinese economy showed signs of recovery as China resumed economic activity at an early stage, while the spread of COVID-19 remained unabated in Europe and the United States, and the economic outlook was that recovery would take time.」

「During the first quarter of the fiscal year, economic activity was severely restricted by the impact of COVID-19, and the economy deteriorated rapidly. The Japanese economy was similarly affected by COVID-19, and restrictions on going out and travel caused major changes in the demand structure, resulting in divergent conditions across industries.」

「During the consolidated fiscal year, the spread of COVID-19 caused some supply chain disruptions, but did not have a material impact.」

「During the first nine months of the fiscal year, the global economy remained in a situation where the outlook was difficult to foresee, including due to a slowdown in the Chinese economy resulting from prolonged trade friction between the United States and China.」

「During the first half of the fiscal year, uncertainty in the European economy increased due to the slowdown in China's economic growth resulting from prolonged trade friction between the United States and China, as well as the United Kingdom's withdrawal from the EU and other factors, leaving the global economy in an uncertain state.」

「During the first quarter of the fiscal year, the global economy grew moderately overall, but business sentiment deteriorated and downside risks to the outlook increased amid concerns about a slowdown in the Chinese economy resulting from trade friction between the United States and China.」

「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 first nine months of the fiscal year, the U.S. economy continued to expand, but the trade friction issue with China became more serious and had a negative impact on the results of some companies. A moderate economic recovery also continued in Europe, but the outlook remained uncertain due in part to the United Kingdom's withdrawal from the EU.」

「During the first half of the fiscal year, the U.S. economy continued to expand, but concerns grew about the impact on the global economy as trade friction with China became more serious. In Europe, a moderate economic recovery continued, but issues remained, including the United Kingdom's withdrawal from the EU and fiscal risks in Southern Europe.」

「During the cumulative first-quarter consolidated period, there were no material changes in matters described in this quarterly report concerning the status of the business, financial information and other matters that could materially affect investors' decisions, or in the business and other risks described in the annual securities report for the previous fiscal year.」

「During the cumulative third-quarter consolidated period, there were no material changes in matters described in this quarterly report concerning the status of the business, financial information and other matters that could materially affect investors' decisions, or in the business and other risks described in the annual securities report for the previous fiscal year.」

「During the cumulative second-quarter consolidated period, there were no significant changes in the matters described in the quarterly report concerning business conditions and financial information that could materially affect investors’ decisions, or in the business risks described in the securities report for the previous fiscal year.」

「During the cumulative first-quarter consolidated period, there were no material changes in matters described in this quarterly report concerning the status of the business, financial information and other matters that could materially affect investors' decisions, or in the business and other risks described in the annual securities report for the previous fiscal year.」

「For the Group, results and financial condition may be affected by natural disasters such as earthquakes and typhoons, disruptions arising for other reasons, and, at overseas subsidiaries, social unrest resulting from unforeseeable changes in the political conditions, laws and regulations, tax systems, and other factors in the countries where they operate, as well as terrorism and war.」

「President-elect Trump was elected last November, and depending on how his policies are implemented, there are concerns that this could create uncertainty about the outlook for the Japanese economy and the economies of China and emerging markets. In Europe, national elections scheduled in various countries this year and management crises at financial institutions could also lead to financial instability.」

「During the cumulative second-quarter consolidated period, there were no significant changes in the matters described in the quarterly report concerning business conditions and financial information that could materially affect investors’ decisions, or in the business risks described in the securities report for the previous fiscal year.」

「During the cumulative first-quarter consolidated period, there were no material changes in matters described in this quarterly report concerning the status of the business, financial information and other matters that could materially affect investors' decisions, or in the business and other risks described in the annual securities report for the previous fiscal year.」

「The Group's results and financial condition may be affected by natural disasters such as earthquakes and typhoons, disruptions arising for other reasons, and, at overseas subsidiaries, social unrest resulting from unforeseeable changes in the political conditions, laws and regulations, tax systems, and other factors in the countries where they operate, as well as terrorism and war.」