Political, Regulatory and Foreign Exchange Risks in Overseas Operations

「The outlook remains uncertain due to inflation, persistently high energy prices, escalating tensions in the Middle East and other factors. Although the global economy continues to show signs of recovery, the outlook remains uncertain amid heightened geopolitical risks arising from ongoing regional conflicts, including the situation in the Middle East.」

「Uncertainty in the global economy is increasing against a backdrop of persistent inflation, rising geopolitical risks, and developments in monetary and trade policies in various countries. In particular, multiple external factors could affect the Group's business activities, including surging crude oil and energy prices as tensions escalate in the Middle East, and moves by the US to impose additional tariffs.」

「During the interim consolidated accounting period, Japan's economy continued to recover moderately as social and economic activity normalised. However, uncertainty about the outlook persisted, owing to elevated energy prices and inflation, fluctuations in the financial and capital markets, and other factors. The global economy also remained uncertain, despite increased economic activity, amid rising geopolitical risks including protracted regional conflicts with no clear end in sight.」

「The Group operates in North America, Europe and Asia, and the overseas markets in which it operates involve several inherent risks, as described below. The impact on operations of geopolitical risks, including additional US tariff policies, also requires continued monitoring.」

「During the interim consolidated accounting period, Japan's economy continued to recover moderately as social and economic activity normalised. However, uncertainty about the outlook persisted, owing to elevated energy prices and inflation, fluctuations in the financial and capital markets, and other factors. The global economy also remained uncertain, despite increased economic activity, amid rising geopolitical risks including protracted regional conflicts with no clear end in sight.」

「The Group operates in North America, Europe and Asia, and its operations in these overseas markets involve several inherent risks, as described below. In addition, the Group will need to continue monitoring the business impacts of geopolitical risks, including Russia's invasion of Ukraine.」

「Overseas, the economic outlook remains uncertain, including due to the Russia-Ukraine situation, which shows no clear end in sight.」

「Overseas, the economic outlook remains uncertain, including due to the Russia-Ukraine situation, which shows no clear end in sight.」

「The automotive industry, a major customer of our Group, remained in difficult conditions as automakers continued to adjust production due to the global semiconductor shortage. It was also affected by weak sales of Japanese OEMs in the Chinese market, material supply issues, higher prices and rising energy costs, including electricity charges. However, as the impact of semiconductor shortages gradually eased, domestic production increased year on year.」

「Overseas sales account for more than 60% of the Group's total sales, and foreign exchange fluctuations may affect the Group's management. The Group enters into forward exchange contracts to mitigate the risk associated with future foreign exchange fluctuations. However, sudden foreign exchange movements exceeding expectations could materially affect the Group's earnings.」

「During the cumulative third-quarter period, although restrictions and stagnation in economic activity associated with the COVID-19 pandemic were gradually easing, energy prices and other prices rose sharply amid a weaker yen and higher crude oil prices, and economic conditions remained extremely challenging. Overseas, lockdowns originating from the COVID-19 pandemic occurred frequently in China, disrupting and hindering production and logistics worldwide, and the economic outlook remained uncertain.」

「During the cumulative second-quarter period, although restrictions and stagnation in economic activity associated with the COVID-19 pandemic were gradually easing, prices rose sharply amid the prolonged Russia-Ukraine situation, a weaker yen and stronger dollar, and higher crude oil prices, and economic conditions remained extremely challenging. Overseas, lockdowns occurred in the Shanghai region due to the COVID-19 pandemic in China, disrupting and hindering production and logistics worldwide, and the economic outlook remained uncertain.」

「During the cumulative first-quarter period, although restrictions and stagnation in economic activity associated with the COVID-19 pandemic were gradually easing, prices rose sharply amid the prolonged Russia-Ukraine situation, a weaker yen and stronger dollar, and higher crude oil prices, and economic conditions remained extremely challenging. Overseas, frequent lockdowns occurred in areas including Shanghai due to explosive increases in COVID-19 cases in China, disrupting and hindering production and logistics worldwide, and the economic outlook remained uncertain.」

「The Group operates in North America, Europe and Asia, and its operations in these overseas markets involve several inherent risks, as described below. In addition, the Group will need to continue monitoring the global situation and business impacts arising from Russia's invasion of Ukraine.」

「Although overseas economies have gradually recovered as COVID-19 vaccination programs have progressed, uncertainty about the outlook continues due to explosive outbreaks of COVID-19 variants and other factors.」

「The Group operates in North America, Europe and Asia, and its operations in these overseas markets involve several inherent risks, as described below. ① Unexpected changes in laws or regulations ② Adverse political or economic factors ③ Potentially adverse tax consequences ④ Social disruption due to geopolitical risks ⑤ Trade friction between foreign countries」

「① Unexpected changes in laws or regulations ② Adverse political or economic factors ③ Potentially adverse tax consequences ④ Social disruption due to geopolitical risks ⑤ Adverse consequences of Brexit ⑥ Trade friction between foreign countries」

「During the cumulative third-quarter period, Japan's economy remained on a moderate recovery trend overall, with personal consumption and employment conditions remaining firm due to economic policies and monetary easing by the government and the Bank of Japan. However, against a backdrop of trade friction arising from the US's protectionist trade policies, the UK's EU withdrawal issue, and rising geopolitical risks in Asia, uncertainty about the outlook continued.」

「During the cumulative second-quarter period, Japan's economy remained on a moderate recovery trend overall, with personal consumption and employment conditions remaining firm due to economic policies and monetary easing by the government and the Bank of Japan. However, against a backdrop of trade friction arising from the US's protectionist trade policies and rising geopolitical risks in Asia, uncertainty about the outlook continued.」

「During the cumulative first-quarter period, Japan's economy remained on a moderate recovery trend overall, with personal consumption and employment conditions remaining firm due to economic policies and monetary easing by the government and the Bank of Japan. However, against a backdrop of trade friction arising from the US's protectionist trade policies and rising geopolitical risks in Asia, uncertainty about the outlook continued.」

「The Group operates in North America, Europe and Asia, and its operations in these overseas markets involve several inherent risks, as described below.」

「During the cumulative third-quarter period, Japan's economy remained on a moderate recovery trend overall, with personal consumption and employment conditions remaining firm due to economic policies and monetary easing by the government and the Bank of Japan. However, against a backdrop of trade friction arising from the US's protectionist trade policies and rising geopolitical risks in Asia, uncertainty about the outlook continued.」

「During the cumulative second-quarter period, Japan's economy remained on a moderate recovery trend overall, with personal consumption and employment conditions remaining firm due to economic policies and monetary easing by the government and the Bank of Japan. However, against a backdrop of trade friction arising from the US's protectionist trade policies and rising geopolitical risks in Asia, uncertainty about the outlook continued.」

「During the cumulative first-quarter period, Japan's economy remained on a moderate recovery trend overall, with personal consumption and employment conditions remaining firm due to economic policies and monetary easing by the government and the Bank of Japan. However, against a backdrop of the US's protectionist trade policies and geopolitical risks in Asia, uncertainty about the outlook continued.」

「During the cumulative third-quarter period, Japan's economy remained on a moderate recovery trend overall, with personal consumption and employment conditions remaining firm due to economic policies and monetary easing by the government and the Bank of Japan. However, against a backdrop of the US administration's policies, concerns over a slowdown in emerging-market economies, and rising geopolitical risks in Asia, uncertainty about the outlook continued.」

「During the cumulative second-quarter period, Japan's economy remained on a moderate recovery trend overall, with personal consumption and employment conditions remaining firm due to economic policies and monetary easing by the government and the Bank of Japan. However, against a backdrop of the US administration's policies, concerns over a slowdown in emerging-market economies, and rising geopolitical risks in Asia, uncertainty about the outlook continued.」

「During the cumulative first-quarter period, Japan's economy remained on a moderate recovery trend overall, with personal consumption and employment conditions remaining firm due to economic policies and monetary easing by the government and the Bank of Japan. However, against a backdrop of the US administration's policies, concerns over a slowdown in emerging-market economies, and rising geopolitical risks in Asia, uncertainty about the outlook continued.」

「The Group operates in North America, Europe and Asia, and its operations in these overseas markets involve several inherent risks, as described below.」

「During the cumulative third-quarter period, Japan's economy remained on a moderate recovery trend overall, with personal consumption and employment conditions remaining firm due to economic policies and monetary easing by the government and the Bank of Japan. However, against a backdrop of instability in equity and foreign exchange markets caused by concerns over a slowdown in emerging-market economies, the EU withdrawal issue, and the transition to a new US administration, uncertainty about the outlook continued.」

「During the cumulative second-quarter period, Japan's economy remained on a moderate recovery trend overall, with personal consumption and employment conditions remaining firm due to economic policies and monetary easing by the government and the Bank of Japan. However, amid concerns over a slowdown in emerging-market economies, turmoil in equity markets stemming from the UK's withdrawal from the EU, and unstable foreign exchange markets due to the yen's appreciation, uncertainty about the outlook continued.」

「The Group operates in North America, Europe and Asia, and its operations in these overseas markets involve several inherent risks, as described below.」