Legal, Labor, Infectious Disease and Geopolitical Risks Associated with Overseas Activities

「The unstable economic environment continued, including the prolonged Russian invasion of Ukraine and escalating tensions in the Middle East.」

「Meanwhile, the impact of the situation in the Middle East is difficult to reasonably forecast at this time and has not been incorporated into the above forecasts.」

「In addition, the unstable economic environment continued, including the Russia-Ukraine situation and military conflicts in the Middle East.」

「Although stable growth is expected for the global economy going forward, downside risks are increasing due to factors including the escalating regional conflicts in the Middle East and the possibility of changes in trade and industrial policies.」

「Looking ahead, the balance of risks is tilted to the downside due to factors including the possibility of a further slowdown in China's economy and greater volatility in commodity prices as geopolitical fragmentation advances.」

「Continued postponement of customer construction projects due to the slowdown in China's economic recovery」

「Although the Information and Communications Solutions business was affected by continued increases in raw material and fuel prices, lower revenue from domestic network-related products due to growing difficulties procuring semiconductors and higher semiconductor prices, and lower optical cable sales to Europe due to the Russia-Ukraine situation,」

「Although the Information and Communications Solutions business was affected by continued increases in raw material and fuel prices, difficulties procuring semiconductors and higher semiconductor prices, and lower optical cable sales to Europe due to the Russia-Ukraine situation,」

「Decline in optical cable sales to Europe due to the Russia-Ukraine situation」

「Supply chain disruption due to the impact of economic sanctions between states, and the collapse of the global division of labor due to escalating U.S.-China trade friction, amid the worsening Russia-Ukraine situation」

「The Company has conducted risk questionnaires and awareness surveys, including at affiliated companies in Japan and overseas, and carried out risk-reduction activities. It will further expand these efforts to strengthen risk management.」

「In China in particular, the Company has numerous operating locations, mainly in Guangzhou, Shanghai, Beijing and Tianjin. Business operations may be disrupted by unavoidable events such as changes in laws and regulations concerning investment, foreign exchange, finance and imports and exports in China, suspension of power supplies, and outbreaks of infectious diseases.」

「In China in particular, the Company has numerous operating locations, mainly in Guangzhou, Shanghai, Beijing and Tianjin. Business operations may be disrupted by unavoidable events such as changes in laws and regulations concerning investment, foreign exchange, finance and imports and exports in China, suspension of power supplies, and outbreaks of infectious diseases.」

「During the nine months ended the third quarter of the fiscal year, the global economy generally remained on a moderate recovery trend, as the impact of the UK's EU withdrawal issue was limited, expectations for fiscal stimulus under the next U.S. administration were added to the prolonged U.S. recovery, and the yen recently shifted toward depreciation in Japan. However, uncertainty about the outlook has increased due to downside risks to economic conditions in Asia, centered on China, and uncertainty surrounding policies in Europe and the U.S.」

「During the six months ended the second quarter of the fiscal year, the global economy remained uncertain, although the U.S. was in a prolonged recovery phase that lacked strength, as were emerging markets including China. In Japan, stagnation continued amid factors including the appreciation of the yen.」

「In addition to the economic slowdown in emerging markets, including China, concerns about the economic outlook have increased due to the turmoil in financial markets surrounding the UK's decision to leave the EU.」

「In addition, rising tensions in international relations in countries and regions related to the Group's business activities, conflicts and political instability, financial system instability and other factors may have a significant impact on the Group's operating results and financial position, not only through their effects on public safety and security but also through their impact on production, sales and other activities.」