Legal, Regulatory, Financial and Political Risks in Overseas Operations

「Regarding the business environment for fiscal 2026, high uncertainty is expected to persist in both the global and Japanese economies, against the backdrop of trends in U.S. trade policy, stagnant domestic demand in China, and the unstable situation in the Middle East.」

「In addition to continued instability in international politics and the global economy, supply risks have arisen for various petroleum-derived raw materials due to the situation in the Middle East.」

「During the interim consolidated accounting period, the global economy remained unstable due to developments in US trade policy, stagnant domestic demand in China and turmoil in the Middle East.」

「During the interim consolidated accounting period, the global economy remained unstable due to geopolitical risks, including the stagnation of China's economy and the situation in the Middle East.」

「During the first nine months of the current consolidated fiscal year, economic activity continued to recover from the COVID-19 pandemic, but uncertainty about the outlook persisted due to geopolitical risks, including the impact of global monetary tightening, the prolonged Russian invasion of Ukraine and the situation in the Middle East.」

「During the first half of the current consolidated fiscal year, economic activity recovered from the COVID-19 pandemic, but uncertainty about the outlook continued due to an unstable international situation, including prolonged inflation in various countries and Russia's protracted invasion of Ukraine.」

「The global economy remained subject to uncertainty about the outlook due to accelerating inflation in various countries, the prolonged situation in Ukraine and geopolitical risks in East Asia.」

「During the first nine months of the current consolidated fiscal year, the global economy showed signs of recovering from the downturn caused by COVID-19, but remained unstable due to inflation, particularly in resource prices, resulting from the prolonged situation in Ukraine and tighter lockdowns in China.」

「Corporate and consumer prices rose amid a rapidly weakening yen resulting from tighter financial conditions in the major Western economies, while views on the outlook for corporate conditions became somewhat more cautious.」

「Uncertainty about the outlook continued due to rising resource prices and supply constraints resulting from the prolonged situation in Ukraine, as well as fluctuations in financial and capital markets and foreign exchange markets.」

「Although the outlook for the business environment in fiscal 2022 remains uncertain due to factors including the situation in Ukraine, high production levels are expected to continue in the steel industry, one of our group's major customer industries.」

「During the first nine months of the current consolidated fiscal year, the global economy showed signs of recovering from the downturn caused by COVID-19, but uncertainty about the outlook persisted due to the resurgence of infections, mainly involving variants, semiconductor supply shortages and supply chain disruptions.」

「Our group operates production and sales bases overseas, including in Asia, Oceania and the Americas. Overseas operations entail risks including normally unforeseen changes in laws and regulations, sudden changes in financial conditions and other economically adverse factors, as well as political instability.」

「During the first nine months of the current consolidated fiscal year, the global economy remained weak due to the renewed spread of COVID-19, and concerns about the outlook continued despite signs of recovery in some areas, including China.」

「A serious situation has emerged in which infections have begun to spread again, particularly in Europe, raising concerns about the outlook.」

「During the first quarter of the current consolidated fiscal year, the global economy entered an extremely challenging phase as economic activity stagnated amid the worldwide spread of COVID-19.」

「During the first half of the current consolidated fiscal year, Japan's economy remained on a gradual recovery trend. Exports, particularly to China, were weak against the backdrop of China's economic slowdown, although employment and income conditions improved.」

「Although exports remained weak due in part to the impact of US-China trade friction, personal consumption remained firm and a gradual recovery trend continued in the economies where our group operates.」

「We expect significant changes in the operating environment in overseas markets as various destabilizing factors, including the rise of protectionist economic policies, become more pronounced.」

「Overseas operations entail risks including normally unforeseen changes in laws and regulations, sudden changes in financial conditions and other economically adverse factors, as well as political instability.」