Foreign Exchange and Regional Economic Risks Associated with the Expansion of Overseas Transactions

「Looking ahead, investment in AI-related fields, particularly in the US, is expected to provide support, and moderate growth is expected to continue overall, although uncertainties surrounding trade and tariff policies and geopolitical risks are expected to persist.」

「The outlook is expected to remain uncertain due to uncertainty in the global economy and heightened geopolitical risks.」

「During the fiscal year under review, the global economy remained in a situation where its recovery was generally limited to a moderate pace, amid prolonged heightened geopolitical tensions, delayed economic recovery in China, signs of slowing personal consumption in the US, and stagnation in the manufacturing sector in some regions.」

「During the fiscal year under review, the global economy remained affected by factors weighing on economic activity, including continued economic slowdown in China, the prolonged situation in Ukraine, heightened geopolitical tensions in the Middle East, and concerns about an economic slowdown resulting from globally tighter monetary policy, although some countries and regions saw increased capital investment and a recovery in personal consumption.」

「During the nine-month period under review, the global economy saw continued sluggishness in both domestic and external demand in China, with the economic slowdown persisting. In Europe, the economy also slowed amid the slowdown in overseas economies and the fading of inbound demand. In the US, capital investment remained weak and the manufacturing-sector adjustment phase was prolonged, but personal consumption remained firm against the backdrop of favorable employment and income conditions. In Asia, economic activity remained firm, supported by the recovery in inbound demand and domestic-demand-led economic growth. In Japan, despite the impact of sluggish external demand, the economy continued to recover moderately, led by domestic demand, supported by the recovery in personal consumption accompanying improvements in employment and income conditions.」

「During the six-month period ended 30 September, economic conditions in China continued to slow as both domestic and external demand remained weak. In Europe, economic conditions remained weak as higher raw material prices resulting from surging energy prices and poor external demand weighed on the economy. In Asia, economic conditions continued to slow, particularly in countries highly dependent on external demand, due to the slow recovery in overseas demand. In contrast, economic conditions in the US remained solid, supported by increases in personal consumption and exports. In Japan, a gradual recovery continued, driven by the recovery in personal consumption supported by improved income conditions, in addition to rebound demand in service sectors such as food service.」

「During the three-month period ended 30 June, economic conditions slowed in China as demand other than services consumption was generally weak. In the US, the pace of recovery slowed despite resilient personal consumption and employment conditions. In Europe, economic conditions remained weak due to sluggish external demand and high inflation. In Asia, economic conditions generally slowed, partly because exports declined amid the slowdown in overseas economies.」

「During the nine-month period ended 31 December, the global economy continued to be affected by COVID-19. In China, economic conditions deteriorated as both domestic and external demand remained sluggish due to tighter activity restrictions. In Europe, economic conditions entered a recessionary phase as high inflation and persistently high energy prices weighed on the economy. In Asia, the pace of recovery slowed due to the impact of the global economic slowdown and higher prices and interest rates.」

「During the six-month period ended 30 September, the global economy continued to be affected by COVID-19. In China, economic conditions temporarily deteriorated after activity restrictions were imposed broadly in September. In Asia, the pace of economic recovery slowed against a backdrop of slowing overseas economies. In Europe, economic conditions slowed under the weight of persistently high energy prices and higher policy rates.」

「In the US, concerns about an economic recession have emerged due to higher inflation resulting from rising resource prices and higher policy rates.」

「In the automotive sector, the Group's main market, US vehicle production exceeded the previous fiscal year's level, partly reflecting a rebound from the prior year's decline caused by COVID-19. In Asia, production generally also exceeded the previous fiscal year's level, partly because governments in various countries eased activity restrictions. In China, Europe and Japan, however, production remained below the previous fiscal year's level, partly due to semiconductor supply shortages.」

「During the nine-month period ended 31 December, the global economy continued to be affected by COVID-19. In the US, the economic recovery reaccelerated as further vaccine rollouts and the use of accumulated savings supported personal consumption, although prolonged supply constraints hindered corporate activity. In China, economic conditions followed a recovery trend, supported by continued strong external demand and resilient personal consumption. Japan and Asia also showed signs of recovery, including in personal consumption, following the easing of activity restrictions. In Europe, however, the pace of recovery slowed due to the resurgence of infections, supply constraints and higher energy prices.」

「During the six-month period ended 30 September, the global economy continued to be affected by COVID-19. In China, economic conditions temporarily deteriorated as activity restrictions were imposed broadly in September. In Asia, the pace of recovery slowed against a backdrop of slowing overseas economies. In Europe, economic conditions slowed under the weight of persistently high energy prices and higher policy rates. In the US, conditions remained solid, while Japan experienced a gradual recovery.」

「During the three-month period ended 30 June, the global economy continued to be affected by COVID-19. In China, the economic recovery continued as personal consumption expanded steadily and exports remained on an expansionary trend. In the US, economic conditions followed a recovery trend, supported by the easing of restrictions on economic activity and large-scale economic measures. In Europe, economic conditions generally recovered steadily despite significant differences in the pace of vaccine rollout and the easing of restrictions. In Japan, signs of recovery continued, although some areas remained weak due to the impact of activity restrictions. In Asia, the pace of recovery slowed in some regions because the resurgence of infections delayed the lifting of activity restrictions.」

「During the consolidated fiscal year, while the impact of COVID-19 continued, China's economic recovery trend persisted as it resumed economic activity ahead of the rest of the world and promoted government-led economic measures. In the US, economic conditions also followed a recovery trend, supported by the easing of restrictions on economic activity and large-scale economic measures.」

「During the nine-month period ended 31 December, China's economic recovery continued, supported by government economic measures and a recovery in exports driven by telework and expanding 5G demand. In the US, Japan and Asia, economic conditions showed some signs of recovery, but the pace remained modest due to tighter activity restrictions amid the resurgence of COVID-19 infections. In Europe, economic conditions continued to slow, partly because lockdowns were prolonged.」

「During the six-month period ended 30 September, China's economic recovery continued, supported by government investment and consumption stimulus measures and a shift to higher exports as countries resumed economic activity. In Asia, economic conditions continued to slow under the substantial impact of COVID-19, while the US, Europe and Japan showed signs of recovery, including in personal consumption.」

「During the three-month period ended 30 June, the global economy deteriorated significantly, partly due to the spread of COVID-19. In China, economic activity was recovering and had recently returned to the previous year's level, but in other regions economic conditions deteriorated sharply, and although some signs of recovery emerged, economic activity remained below its previous level.」

「During the consolidated fiscal year, the global economy had been slowing, with favorable employment and income conditions supporting the US economy through the previous year, a stalled recovery in Europe, and weak external demand slowing economic conditions in China and Asia. However, after the start of the year, the global economic environment deteriorated significantly due to the spread of COVID-19.」

「In the automotive sector, the Group's main market, vehicle production in the US and Europe remained below the previous fiscal year's level. In China, production also remained below the previous fiscal year's level, partly because of the impact of uncertainty over the economic outlook resulting from prolonged US-China trade friction. In Asia, production generally remained below the previous fiscal year's level, also due to the impact of economic slowing and other factors.」

「During the six-month period ended 30 September, favorable employment and financial conditions supported the US economy. In China and Asia, economic conditions continued to slow due to weak external demand and other factors. In Europe, the economic recovery stalled, while in Japan the economy also remained sluggish amid a generally lackluster global economy.」

「Concerns that US trade and foreign policy, among other factors, could affect the global economy continue to exist.」

「Although economic conditions were generally solid, there were concerns that US trade and foreign policy, among other factors, could affect the global economy.」

「Ordinary profit was ¥6,598 million, up 0.4% from the previous consolidated fiscal year. This was because operating profit increased, while foreign exchange losses worsened, among other factors.」

「In the automotive sector, the Group's main market, US vehicle production declined due to sluggish demand for passenger cars, while European production remained at the previous fiscal year's level. In China, vehicle production exceeded the previous fiscal year's level, but Korean vehicle production declined significantly. In Japan, production exceeded the previous fiscal year's level, partly due to the launch of new models.」

「In the automotive sector, the Group's main market, US vehicle production declined partly because replacement demand from consumers had run its course, while production in Europe remained at the previous fiscal year's level. In China, vehicle production exceeded the previous fiscal year's level, but poor sales of Korean vehicles continued.」

「In the automotive sector, the Group's main market, US vehicle production declined partly because replacement demand from consumers had run its course. In Europe, vehicle sales were weak but remained generally solid. In China, vehicle production exceeded the previous fiscal year's level, although signs of slower growth emerged following the reduction of tax cuts for small vehicles. Korean vehicles also experienced a serious sales slump.」

「As a result, for the consolidated fiscal year, partly due to the impact of yen appreciation, sales were ¥88,387 million, down 5.2% year on year, operating profit was ¥5,896 million, down 1.1%, ordinary profit was ¥6,571 million, up 3.3%, and net profit attributable to owners of the parent was ¥4,951 million, up 12.9%.」

「As a result, during the nine-month period ended 31 December, partly due to the impact of yen appreciation, sales were ¥65,772 million, down 7.4% year on year, operating profit was ¥4,200 million, down 3.3%, and ordinary profit was ¥5,013 million, down 0.6%.」

「As a result, partly due to the impact of yen appreciation, sales were ¥43,813 million, down 9.0% year on year, operating profit was ¥2,855 million, down 2.2%, and ordinary profit was ¥2,762 million, down 20.9%.」

「In Europe, the outlook remained uncertain, as the growing risk of the United Kingdom leaving the EU raised concerns about an economic slowdown.」

「The Group is strengthening its overseas production and sales systems, but changes in economic conditions and other factors in each region may affect the Group's business performance and financial position.」