Overseas economic conditions, declining demand, and geopolitical and labor-relations risks

「During the six-month interim consolidated accounting period, the external environment surrounding the group remained uncertain, owing to the impact of US tariff policies and soaring energy and material prices against a backdrop of geopolitical risks, including the situation in the Middle East.」

「During the six-month interim consolidated accounting period, the external environment surrounding the group remained uncertain, as it had been affected since the beginning of the year by developments in US tariffs, alongside intensifying trade friction and downside economic risks, as well as a slowdown in the Chinese economy and rapid foreign-exchange fluctuations.」

「During the interim consolidated accounting period, the external environment surrounding the Group remained uncertain. Although the Japan-US interest rate differential was narrowing as monetary policy entered a transition phase, the yen remained on a depreciation trend. The prolonged situations in China's real estate market and Ukraine, along with growing geopolitical risks in the Middle East, also contributed to the uncertainty.」

「The Group operates not only in Japan but also in the US, Europe and various Asian countries under diverse political and social conditions. Significant changes in those conditions could adversely affect the Group's operating results and financial position.」

「During the nine-month period ended 31 December, the external environment surrounding the group remained uncertain, owing to persistent high inflation, elevated interest rates in various countries, higher energy costs resulting from the prolonged situation in Ukraine, concerns over the outlook for the Chinese economy and escalating tensions in the Middle East.」

「During the first six months of the consolidated fiscal year, the external environment surrounding the Group remained uncertain due to interest rate increases in various countries aimed at curbing inflation, the impact of yen depreciation on foreign exchange, the prolonged situation in Ukraine and concerns over the outlook resulting from sluggish real estate development investment in China.」

「During the first three months of the consolidated fiscal year, the external environment surrounding the Group remained unstable due to interest rate increases in various countries aimed at curbing inflation, exchange rate fluctuations and the prolonged situation in Ukraine.」

「Meanwhile, uncertainty persisted amid higher policy rates in various countries due to accelerating inflation, a slowdown in the Chinese economy, soaring energy and other prices due to the prolonged situation in Ukraine, and soaring raw material prices in Japan accompanying the rapid depreciation of the yen.」

「Meanwhile, the tight supply-demand balance accompanying the rapid recovery in economic activity continued to cause impacts from soaring raw material prices, component shortages and other supply chain disruptions. Uncertainty persisted amid risks of an economic downturn, including accelerating inflation and other monetary tightening through higher interest rates, a rapid depreciation of the yen driven by widening Japan-U.S. interest rate differentials, higher energy and other prices due to the prolonged situation in Ukraine, and the impact of restrictions on economic activity in China.」

「The economy remained subject to downside risks from accelerating inflation, monetary tightening including higher interest rates, the prolonged situation in Ukraine, and the impact of restrictions on economic activity in China, while uncertainty about the outlook continued.」

「The Group operates not only in Japan but also in the US, Europe and various Asian countries under diverse political and social conditions. Significant changes in those conditions could adversely affect the Group's operating results and financial position.」

「The economies of Asia, particularly China, were on a recovery trend, but the pace of recovery slowed due to government restrictions, including tighter activity restrictions and measures to curb investment.」

「In Japan, difficult conditions continued, including the repeated declaration of states of emergency. However, as COVID-19 vaccinations were rolled out in earnest, economic activity was expected to recover, and corporate activity also gradually began to show signs of improvement. In the US, the recovery continued as the effects of additional economic measures took hold and vaccinations became widespread. Europe remained in a difficult situation, but expectations for an economic recovery strengthened as restrictions on activities were gradually eased with the spread of vaccinations. The Asian economy, particularly China's, remained on a recovery path.」

「The Group acquired the US-based Overhead Door Corporation group in 1996 and the European Novoferm group in 2003. More than 40% of the business involves production and sales in North America and Europe. The company is also expanding its business in Asia, primarily China.」

「In North America and Europe, economic conditions showed signs of recovery after deteriorating rapidly in the spring due to the spread of infection. However, the renewed spread of infection from the autumn led to moves to reimpose restrictions, particularly in Europe, affecting economic activity.」

「During the six months ended the second quarter, the external environment surrounding the Group deteriorated rapidly in Japan after a state of emergency was declared in April due to the spread of COVID-19. The construction market also remained weak because some worksites were suspended, affecting order-taking activities. In North America and Europe as well, economic conditions deteriorated rapidly due to travel restrictions, restrictions on going out and other measures resulting from the spread of infection. In Asia, economic conditions deteriorated mainly in China, where the Lunar New Year holiday was extended to prevent the spread of infection. However, as various restrictions were eased from May, economic activity showed signs of recovery, although the outlook remained uncertain.」

「During the three months ended the first quarter, the external environment surrounding the Group deteriorated rapidly in Japan after a state of emergency was declared in April due to the spread of COVID-19. The construction market also remained weak because some worksites were suspended, affecting order-taking activities. In North America and Europe as well, economic conditions deteriorated rapidly due to travel restrictions, restrictions on going out and other measures resulting from the spread of infection.」

「Overseas, partly due to the impact of global trade friction, the US construction market showed some weakness, while growth in the European construction market also began to slow slightly.」

「In the US, the housing market showed some signs of stagnation. In Europe, although the Eastern European market remained firm, growth across the region as a whole tended to slow.」

「In the US, personal consumption remained firm, but the economy showed some stagnation toward the end of the fiscal year due to inflation, higher interest rates and other factors. In Europe, conditions varied by region, with Eastern and Southern Europe performing well while Germany struggled to grow, but the market as a whole remained firm.」

「In addition, concerns over the impact of US-China trade issues on countries around the world persisted, leaving the outlook for the global economy uncertain.」

「In addition, the outlook for the global economy remained uncertain, with conflicts expected between the US and other countries over the new US trade policies.」

「The outlook for the global economy remained uncertain, with conflicts expected between the US and other countries over the new US trade policies.」

「There were no newly arising business or other risks during the first three quarters, and there were no material changes to the business or other risks described in the securities report for the previous fiscal year.」

「During the cumulative second quarter of the current consolidated fiscal year, there were no newly arising business or other risks. In addition, there were no material changes to the business or other risks described in the securities report for the previous fiscal year.」

「The European economy faced concerns over general elections in various countries and the tension surrounding terrorist attacks, but overall remained on a recovery path, supported by firm construction and capital investment.」

「The financial and foreign exchange markets were highly volatile due to the impact of the US presidential election, increasing uncertainty about the global economy.」

「During the six months ended the second quarter, the Japanese economy lacked strength. Personal consumption remained firm as employment conditions improved, but growth in emerging markets slowed, the yen continued to strengthen, and the environment for capital investment showed signs of stagnation. Overseas, from January through June, the US economy was on a moderate expansionary trend, driven by the housing market and consumer spending, but uncertainty remained, partly because of the US presidential election.」

「The domestic economy remained uncertain, with private consumption weakening and capital investment showing signs of stagnation, alongside a weaker stock market, yen appreciation, slower growth in emerging economies and financial-market turmoil following the UK's decision to leave the EU.」

「Approximately 40% of the business involves production and sales in North America and Europe. The company is also expanding its business in Asia, primarily China.」