Dependence on Optical Film Demand, Overseas Political and Economic Conditions, and Exchange Rates

「当第１四半期累計期間における経済環境は、海外ではロシアによるウクライナ侵攻の長期化や中東情勢の緊迫化といった地政学リスクの高まりに加え、各国の通商政策の影響などにより、先行き不透明な状況が続きました。」

「During the fiscal year, the outlook remained uncertain because of heightened geopolitical risks overseas, including the prolonged Russian invasion of Ukraine and escalating tensions in the Middle East, as well as the impact of trade policies in various countries.」

「海外ではロシアによるウクライナ侵攻の長期化や中東情勢の緊迫化といった地政学リスクの高まりに加え、各国の通商政策の影響などにより、先行き不透明な状況が続きました。」

「During the fiscal year, the outlook remained uncertain because of heightened geopolitical risks overseas, including the prolonged Russian invasion of Ukraine and escalating tensions in the Middle East, as well as changes in economic policy accompanying the change of administration in the US.」

「During the interim accounting period, the global economy maintained solid growth against a backdrop of easing high inflation, despite rising geopolitical risks overseas, including the prolonged damage caused by Russia's invasion of Ukraine, stalled ceasefire negotiations in the conflict between Israel and Hamas, and repeated missile launches by North Korea.」

「Russia's invasion of Ukraine remains an ongoing war, with no path to peace in sight. In addition, Israel has indicated that it intends to continue military operations aimed at destroying Hamas, which are expected to continue for some time. Attacks by Yemen's Houthi rebel group on vessels transiting the Red Sea and Suez Canal in response to this have disrupted supply chains and dealt a blow to the global economy.」

「During the cumulative third quarter, the economic environment became unstable in the Middle East because of Israel's military invasion of Palestine, in addition to Russia's prolonged military invasion of Ukraine. Confrontation between democratic countries and hegemonic and authoritarian states intensified further, and the confrontation continued to spread to involve the Global South. China's closely watched economy also continued to slow because of delayed recovery after the lifting of its zero-COVID policy and weakness in the real estate market. Consequently, the outlook for the global economy as a whole remained uncertain because of inflation and rising energy and food prices.」

「During the cumulative second quarter, the economic environment was marked by further confrontation between the democratic West and the hegemonic and authoritarian states of Russia and China as Russia's invasion of Ukraine became prolonged, with the confrontation also spreading to involve the Global South. China's closely watched economy also slowed, owing to a delayed recovery after the lifting of its zero-COVID policy and weakness in the real estate market. Consequently, the outlook for the global economy as a whole remained uncertain because of inflation and rising energy and food prices.」

「Against this backdrop, the US has strengthened efforts to prevent advanced technologies such as semiconductors from flowing overseas and to contain those technologies, while China has also taken steps in response. As a result, the outlook for the economy remains uncertain.」

「After three years of the pandemic, most restrictions on cross-border travel have been lifted and the end of the pandemic is coming into sight. However, energy and food shortages and soaring prices continued worldwide, while the division between the US and China intensified further, leaving the outlook uncertain.」

「In China, strict zero-COVID policies had been implemented as measures against COVID-19, but on 8 December last year the government announced a substantial easing of infection-control measures without providing a detailed explanation. The government's abrupt change in direction suddenly removed restrictions, resulting in an explosive but temporary spread of infections.」

「The situation in Ukraine has become a war of attrition between the West and Russia and has continued for a prolonged period without a solution in sight, causing global energy and food shortages and soaring prices. In the US, the Inflation Reduction Act (IRA), which included the largest-scale climate measures in history, was passed in August this year. In the industrial sector, moves to exclude politically opposed countries such as China and Russia have intensified, raising concerns that such confrontations may escalate further and leaving the outlook uncertain.」

「In addition to ongoing global logistics disruptions and longer lead times for procuring components, including shortages of semiconductors, the entire supply chain has been affected by global energy shortages and rising prices resulting from the escalating situation in Ukraine. Although economic activity is gradually resuming, uncertainty about the outlook remains high and conditions remain unstable.」

「Global logistics have stagnated, lengthening the time required to procure components such as semiconductors and affecting the entire supply chain. Although strong moves toward reopening economic activity have emerged, many industries have been weakened by the pandemic, and recovery to pre-pandemic conditions is expected to take time.」

「During the cumulative third quarter, although the number of new COVID-19 infections had stabilized by autumn, the situation remained one in which vigilance could not be relaxed because of the emergence of new variants. Measures were being advanced in Japan, including the start of third-round vaccinations, but global logistics stagnated, lengthening the time required to procure components such as semiconductors and affecting the entire supply chain. Although strong moves toward reopening economic activity continued, many industries had been weakened by the pandemic, and a full-scale recovery was expected to take time.」

「During the cumulative second quarter, the economic environment had repeatedly fluctuated in response to the spread of COVID-19, but vaccination programs progressed rapidly in various countries and strong moves toward reopening economic activity emerged. However, many industries had been weakened by the pandemic, and a full-scale recovery was expected to take time.」

「During the first quarter, the economic environment had repeatedly fluctuated in response to the spread of COVID-19, but infections were increasing at an unprecedented rate because of the Delta variant. Although vaccination programs were also progressing rapidly in various countries, the outlook remained uncertain, significantly hindering economic activity that was beginning to regain momentum.」

「During the fiscal year, the economic environment deteriorated substantially as economic activity was restricted worldwide because of the spread of COVID-19. As a result, the Company's business performance also declined significantly. However, conditions surrounding the Company are beginning to improve as China resumed economic activity early, countries began vaccinating their populations, and economic activity picked up after the start of the year.」

「During the cumulative third quarter, the economic environment remained severe as the number of infections surged worldwide because of the third wave of COVID-19, causing economic activity in various countries to stagnate. Although moves toward reopening economic activity emerged, centered on East Asia, where the spread of COVID-19 had stabilized relatively early, uncertainty about the outlook remained high because the timing of containment could not be foreseen, significantly affecting the Japanese economy.」

「During the cumulative second quarter, the economic environment saw a significant global decline in consumption and investment because of the spread of COVID-19 and prolonged US-China trade friction. Meanwhile, signs of a move toward reopening economic activity emerged in East Asia and elsewhere, ahead of Europe and the US, as the spread of COVID-19 appeared to be stabilizing. However, uncertainty about the outlook remained high because of concerns about a resurgence and prolongation of infections, significantly affecting the Japanese economy.」

「During the cumulative first quarter, the global economy deteriorated sharply because economic activity stagnated under the impact of the global spread of COVID-19, including in the US, as well as the impact of prolonged US-China trade friction. In Japan, infections resurged as economic activity and other activities resumed following the lifting of the government's state of emergency declaration, and the outlook remained unforeseeable.」

「Furthermore, toward the end of the fiscal year, the rapid global spread of COVID-19 led countries to restrict the movement of people, including through lockdowns to prevent infections. This caused economic activity and social life to stagnate, deepening the global economic downturn.」

「During the cumulative third quarter, the global economy remained in an uncertain situation because the unstable political situation in the Middle East had come to the fore, along with the UK's EU departure issue and prolonged US-China trade friction. In Japan, the economy continued to show strong signs of stagnation because of slower exports and capital investment.」

「During the cumulative second quarter, the global economy remained in an uncertain situation because of unstable political conditions in the Middle East and the postponement of the UK's EU departure issue. In particular, the slowdown in the Chinese economy resulting from prolonged US-China trade friction also affected the Japanese economy.」

「During the cumulative first quarter, concerns surrounding the global economy, including US-China trade friction and disruption associated with negotiations over the UK's departure from the EU, remained unresolved, and the global economy remained in an uncertain situation. Although the Japanese economy continued to recover moderately, signs of an economic slowdown, including weak exports and production, emerged.」

「As US-China trade friction expanded in scale and continued for longer, uncertainty in the global economy increased, raising the risk of instability.」

「During the cumulative third quarter, the global economy continued to recover, led by the US, but remained in an uncertain situation because of intensifying global trade friction resulting from the US administration's trade policies. In Japan, the economy continued to expand moderately, but concerns about an economic slowdown spread because of the impact of worsening US-China trade friction.」

「During the cumulative second quarter, the global economy continued to recover, led by the US, but remained in a situation where concerns including the intensifying US-China trade friction could not be dispelled. In Japan, the economy continued to expand moderately, but remained in an uncertain situation because of risk factors such as political instability in various countries and deterioration in emerging-market economies.」

「Although the Japanese economy continued to recover moderately, the business environment surrounding the Company remained uncertain because of the US's protectionist trade policies and geopolitical risks in Far East Asia.」

「The global economy remained firm during the period, supported by improving employment conditions in the US and increased capital investment in Europe, although concerns about policy developments under the US administration and rising international tensions, particularly in the Middle East and Far East Asia, increased. In Japan, the moderate recovery trend continued, but the business environment surrounding the Company remained uncertain because of protectionist moves by the US and China and geopolitical risks.」

「In Japan, the recovery trend continued, with the stock market reaching new post-bubble highs. However, the economy remained in an uncertain situation because of policy developments under the US administration and rising international tensions in the Middle East and East Asia.」

「In Japan, the economy continued to recover moderately, led by export-related companies and manufacturers. However, it remained in an uncertain situation because of concerns about policy developments under the US administration and geopolitical risks.」

「During the cumulative first quarter, the global economy remained in a situation where concerns about a downside could not be dispelled, including political instability in the US and Europe and uncertainty surrounding the Chinese economy, which continued to slow.」

「During the fiscal year, the global economy remained in a situation where concerns about a downside in China and emerging economies could not be dispelled, despite signs of recovery in the US economy, amid rising political uncertainty, including the UK's decision to leave the EU and an unexpected outcome in the US presidential election.」

「During the cumulative third quarter, the global economy remained on a moderate recovery trend overall, including in the US, although economic policies under the incoming US administration and political and policy developments in European countries remained uncertain. In Japan, personal consumption continued to stagnate, while a moderate recovery trend continued, led by exporters. However, the outlook remained uncertain because of changes in the foreign exchange environment and uncertainty surrounding overseas conditions.」

「During the cumulative second quarter, the global economy remained in an uncertain situation, with the US economy continuing to expand moderately, while uncertainty surrounding the UK's departure from the EU in Europe and concerns about a downside in the Chinese economy persisted.」

「Uncertainty about the outlook increased as a result of the impact of the UK's decision to leave the EU on the European economy and growing signs of stagnation in the Chinese economy. In the optical film coating equipment industry, capital investment in large-scale equipment declined overall, while modification and renewal work on existing equipment became more prominent.」

「Because the optical films produced on our machinery are used primarily in thin display components for high-performance mobile devices such as smartphones, and in hard-coated films for touch panels, consumer trends in Japan and overseas may have a significant impact on our business performance. In addition, given our overseas demand, our business is structured to be highly susceptible to overseas political and economic conditions and foreign exchange movements.」