Geopolitical Risk

「The global economy is being affected in various ways by factors including the impact of policies under the Trump administration in the United States, including tariff policy; China's export expansion and shift to local production amid a slowdown in its domestic economy; Japan's fragile political and economic conditions; rising geopolitical risks in various regions; and the destabilization of international trade. Uncertainty remains high.」

「The risk of fragmentation in international supply chains has increased due to China's potential countermeasures against US trade policy and the destabilization of international trade. In addition, the business environment contains geopolitical risks related to the situation in Ukraine and US-China confrontation over Taiwan.」

「The risk that weaker overseas economies, resulting from persistently high interest rates in the United States and Europe and the continued stagnation of China's real estate market, will weigh on Japan's economy remains. The impact of rising prices and developments in the Middle East also requires close monitoring.」

「The global economy contains downside risks amid monetary tightening and high inflation in the United States and Europe and the prolonged stagnation of China's real estate market. In addition, the recovery in demand following the COVID-19 pandemic has remained weak, affected by prolonged conflicts surrounding Ukraine and the Middle East and the sluggish European economy.」

「A business environment containing downside risks to the economy due to geopolitical factors surrounding Ukraine and the Middle East continues.」

「The pace of recovery in the global economy has slowed amid persistent global inflationary pressure and the continuing effects of interest-rate hikes by central banks. In China, although services consumption has remained firm, the pace of recovery has also slowed, partly due to the impact of the adjustment in the real estate market.」

「Meanwhile, the operating environment continues to contain downside risks to the economy, including concerns over an economic downturn resulting from constraints on fuel and raw material supplies caused by the prolonged situation in Ukraine, global inflation, monetary tightening in Europe and the United States, and rapid foreign exchange movements.」

「Japan’s economy during the six-month period ended in the second quarter of the current fiscal year was expected to recover as economic activity normalized. However, the operating environment remained uncertain, with downside risks to the economy including constraints on fuel and raw material supplies caused by the prolonged situation in Ukraine, global inflation, and disruption caused by the yen’s rapid depreciation against foreign currencies.」

「During the cumulative first quarter, the Japanese economy showed signs of recovery as economic activity normalized, but a difficult business environment continued due to surging raw material prices and supply chain disruptions arising from the prolonged situation in Ukraine and the impact of lockdowns in China, as well as the recent resurgence of COVID-19 infections.」

「The Company recognizes an uncertain outlook containing significant risks that could weigh on earnings, including surging raw material prices resulting from the situation in Ukraine.」

「In addition, the outlook remained uncertain due to an unstable global situation, including prolonged US-China trade tensions, a slowdown in the Chinese economy and the UK's withdrawal from the EU.」

「In addition, the outlook remained uncertain due to an unstable global situation, including escalating US-China trade tensions and the UK's withdrawal from the EU.」

「The Group exports products and develops its business in the United States, China, Asia, Europe and other regions. Accordingly, business activities may be adversely affected by disruptions in political and economic conditions overseas, unexpected changes in laws and regulations, and other forms of social disruption.」

「However, the economy showed signs of slowing as US-China trade tensions intensified and growth in China's consumption and fixed asset investment declined.」

「The Group exports products and develops its business in the United States, China, Asia, Europe and other regions. Accordingly, business activities may be adversely affected by disruptions in political and economic conditions overseas, unexpected changes in laws and regulations, and other forms of social disruption.」

「The global economy during the period was expected to remain firm, supported by robust employment conditions in developed countries, led by the United States, although uncertainty about the outlook increased due to developments under the new US administration and issues including the UK's withdrawal from the EU.」

「The global economy during the period was expected to remain firm, supported by robust employment conditions in developed countries, led by the United States, although uncertainty about the outlook increased due to issues including the UK's withdrawal from the EU.」

「We recognize that risk factors that may affect the Group include the risk of lower demand due to foreign exchange movements, the risk of fluctuations in resource and raw material prices, and geopolitical risks.」