Dependence on Broad-Based Industrial Demand and Business Cycle Risk

「海外の景気は、中国で緩やかな減速が続く一方、米国や新興国では緩やかな拡大・回復が続いています。」

「During the consolidated fiscal year, the business environment remained on a gradual recovery trend despite the continuing impact of US trade policy. At the same time, uncertainty in the global economy, including the situation in the Middle East, increased, making it necessary to closely monitor future developments. In manufacturing, capital investment was recovering gradually, while production and exports were flat. Overseas, China's economy continued to slow gradually, while the US economy continued to expand gradually despite uncertainty, and emerging economies recovered gradually.」

「当連結会計年度における事業環境については、米国の通商政策の影響が残るなか、緩やかな回復基調で推移した一方、中東情勢をはじめ、世界経済の不透明感が高まっており、今後の動向に注視が必要な状況となっています。」

「Japan's economy was recovering gradually, although the impact of US trade policy, particularly on the automotive industry, was evident. In manufacturing, capital investment was recovering gradually, while production and exports were flat. Overseas, China's economy remained stagnant. In the US, there were signs of uncertainty and the effects of a backlash from front-loaded demand accompanying tariff increases, while emerging economies recovered gradually.」

「Recently, growth in demand for next-generation vehicles, including EVs, has shown signs of slowing, but the shift toward next-generation vehicles is expected to progress over the medium to long term.」

「During the six-month interim consolidated accounting period, Japan's economy was recovering gradually, although it had recently shown signs of stagnation. In manufacturing, capital investment and production showed signs of recovery, while exports were broadly flat. Overseas, China's supply increased as a result of policy measures, but the economy remained stagnant. The US economy was expanding, while emerging economies were recovering.」

「During the nine-month period ended the third quarter, Japan's economy was recovering gradually, although some areas had recently stagnated. In manufacturing, the recovery in capital investment and production stalled, while exports had recently shown signs of recovery. Overseas, China's recovery stalled, while the US and emerging economies recovered gradually.」

「During the six-month period ended the second quarter, Japan's economy was recovering gradually. In manufacturing, capital investment and production were recovering, and exports had recently shown signs of recovery. Overseas, China's recovery stalled, while the US and emerging economies recovered gradually.」

「During the three-month period ended 30 June, there were no new risks that management recognizes as having the potential to materially affect the financial position, operating results or cash flows of the consolidated companies, and no material changes to the business risks described in the annual securities report for the previous fiscal year.」

「Accordingly, the Group depends on trends in capital investment across all industries, semiconductor demand for corrosion-resistant materials, automobile production and unit sales for automotive parts, and housing and building construction demand for building materials. Ultimately, earnings may fluctuate depending on domestic and overseas economic trends and conditions.」

「During the cumulative third quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that management recognizes could materially affect the financial position, operating results and cash flows of the consolidated companies, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」

「During the six-month period ended the second quarter, Japan's economy showed signs of gradual recovery. In manufacturing, capital investment and production were recovering, although exports were broadly flat. Overseas, China showed signs of recovery despite some remaining weakness, while the US and emerging economies were recovering.」

「During the three-month period ended the first quarter, Japan's economy showed signs of recovery overall. In manufacturing, capital investment and production showed signs of recovery, while exports were broadly flat. Overseas, economic activity was restricted in some parts of China due to the spread of COVID-19, causing the recovery to stall, while the US and emerging economies were recovering.」

「During the nine-month period ended the third quarter, Japan's difficult economic conditions caused by COVID-19 were gradually easing, but the recovery remained weak. In manufacturing, the recovery in capital investment and production stalled, while exports were broadly flat. Overseas, the US economy was recovering and emerging economies showed signs of recovery, while the pace of recovery in China had recently slowed.」

「During the six-month period ended the second quarter, the business environment remained difficult due to the impact of COVID-19. In Japan, capital investment and production in the manufacturing sector were recovering, and exports continued to increase gradually. Overseas, economic conditions in emerging economies remained difficult due to a resurgence of infections, but the US economy was recovering steadily and China's economy was recovering gradually.」

「During the three-month period ended the first quarter, the business environment remained difficult due to the impact of COVID-19. In Japan, capital investment and production in the manufacturing sector were recovering, and exports continued to increase gradually. Overseas, economic conditions remained difficult in emerging economies due to the pandemic, but the US economy was recovering steadily and China's economy was recovering gradually.」

「During the cumulative third quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that management recognizes could materially affect the financial position, operating results and cash flows of the consolidated companies, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」

「During the cumulative second quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that management recognizes could materially affect the financial position, operating results and cash flows of the consolidated companies, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」

「During the three-month period ended the first quarter, the business environment in Japan remained difficult due to the impact of COVID-19. In manufacturing, exports and production declined due to the pandemic, although signs of improvement emerged in business sentiment despite continued difficulty. Overseas, economic conditions remained difficult in the US and emerging economies due to the pandemic. In China, meanwhile, signs of recovery emerged.」

「During the consolidated fiscal year, the business environment in Japan continued to recover gradually overall. In manufacturing, weakness in exports and production intensified, and capital investment also showed weakness as companies took a cautious view of their performance. Overseas, the US economy continued to recover, while emerging economies recovered gradually despite weakness. In China, the economy continued to slow gradually, amid heightened tensions over trade issues between the US and China.」

「In manufacturing, exports and production remained weak, and capital investment also showed weakness as companies took a cautious view of their performance. Overseas, the US economy continued to recover, while emerging economies recovered gradually despite weakness. In China, however, conditions weakened further, particularly in manufacturing, and the economy slowed gradually. Depending on the impact of heightened tensions over trade issues between the US and China, efforts to address excessive debt, and volatility in financial and capital markets, there is also a risk that the economy could deteriorate.」

「During the six-month period ended the second quarter, the business environment in Japan continued to recover gradually overall. In manufacturing, however, exports and production remained weak, and capital investment also showed weakness as companies took a cautious view of their performance. Overseas, the US economy continued to recover, while emerging economies recovered gradually despite weakness. In China, meanwhile, the economy slowed gradually. Depending on the impact of heightened tensions over trade issues between the US and China and developments in crude oil prices, there is also a risk that the economy could deteriorate.」

「Overseas, the US economy continued to recover steadily, although China and emerging economies showed signs of a gradual slowdown and stagnation. In addition, depending on developments in trade issues, including US-China trade friction, and policy uncertainty, the economy may deteriorate.」

「Overseas, the US economy continued to recover steadily, and emerging economies also continued to recover gradually, while China's recovery stalled. Depending on developments in trade issues and financial markets, there is also a risk that the economy could deteriorate.」

「During the six-month period ended [the current second quarter], no new business or other risks arose. There were also no significant changes to the business or other risks described in the annual securities report for the previous fiscal year.」

「During the three-month period ended the first quarter, no new business or other risks arose. There were also no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「During the nine-month period ended the third quarter, no new business or other risks arose. There were also no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「During the six-month period ended [the current second quarter], no new business or other risks arose. There were also no significant changes to the business or other risks described in the annual securities report for the previous fiscal year.」

「During the three-month period ended the first quarter, Japan's economy continued to recover gradually overall, with corporate earnings and employment conditions trending upward. Overseas, the US economy remained firm, while signs of recovery emerged in emerging economies, including China.」

「As a result, demand for capital expenditures across all industries, semiconductor demand for corrosion-resistant materials, automobile production and unit sales for automotive parts, and housing and building construction demand for building materials depend on external trends. Ultimately, they are affected by domestic and international economic conditions and trends.」

「During the nine-month period ended the third quarter, Japan's economy continued to recover gradually overall, with corporate earnings and employment conditions trending upward. Overseas, the US economy remained firm, while signs of recovery emerged in emerging economies, including China.」

「During the cumulative second quarter, the Japanese economy remained on a gradual recovery trend overall, but the improvement in corporate earnings slowed as the yen appreciated sharply, increasing uncertainty about the outlook. Overseas, the US economy remained firm, while uncertainty continued because of economic slowdowns in emerging economies, including China, and the UK's issue of leaving the EU.」

「During the cumulative first quarter, the Japanese economy remained on a gradual recovery trend overall, but uncertainty about the outlook increased due to the Kumamoto earthquake and sharp foreign exchange fluctuations. Overseas, the US economy remained firm, while uncertainty continued because of China's economic slowdown and the UK's issue of leaving the EU.」

「As a result, demand for capital expenditures across all industries, semiconductor demand for corrosion-resistant materials, automobile production and unit sales for automotive parts, and housing and building construction demand for building materials depend on external trends. Ultimately, they are affected by domestic and international economic conditions and trends.」