Impact of Overseas Conditions

「If significant changes occur in the political, economic, social or legal systems of these countries, or if terrorism or war disrupts the supply chain or distribution, our overseas business activities may be constrained, which could affect our operating results and financial position. Similar effects could also arise if business profitability deteriorates due to surging raw-material prices or ocean freight rates, significant foreign-exchange fluctuations or substantial tariff increases.」

「During the six months ended 30 September, Japan's economy remained on a gradual recovery path against a backdrop of improving employment and income conditions. However, downside risks to overseas economies remained a concern amid the impact of exchange-rate fluctuations and rising prices, the situation in the Middle East, persistently high interest rates in Europe and the United States, and the continued stagnation of China's real estate market, leaving the outlook uncertain.」

「During the fiscal year, Japan's economy continued on a gradual recovery path as social and economic activity moved toward normalization and employment and income conditions improved. However, the outlook remained uncertain amid concerns about the situation in Ukraine and the Middle East, persistently high energy and raw-material prices due to the yen's depreciation, and downside risks to overseas economies resulting from global monetary tightening.」

「During the nine months ended 31 December, Japan's economy continued to recover gradually, with activity moving toward normalization of social and economic activity following the reclassification of COVID-19 to Category 5 and improvements in employment and income conditions. However, the outlook remained uncertain amid concerns about downside risks to overseas economies resulting from the situation in the Middle East and global monetary tightening, in addition to rising prices.」

「In addition to conducting trade with several overseas countries, we have developed a joint venture for agricultural machinery in China. If significant changes occur in the political, economic, social or legal systems of these countries, or if terrorism or war disrupts the supply chain or distribution, our overseas business activities may be constrained, which could affect our operating results and financial position.」

「In addition, overseas sales increased due to sales in new markets, including North America and Central and South America, generated through the use of online trade shows, as well as royalty income from a joint venture」

「Although restrictions on sales activities continued due to the impact of COVID-19, overseas sales increased as the use of online trade shows helped develop new markets and royalty income was received from a joint venture.」

「During the fiscal year, Japan's economy remained in a difficult situation due to the impact of COVID-19, but showed signs of recovery owing in part to the effects of various policies and improvements in overseas economies. However, amid the continuing impact of the disease and uncertainty over the outlook due to the situation in Ukraine, rising raw-material prices, constraints on the procurement of materials and fluctuations in the financial and capital markets made it increasingly necessary to pay close attention to downside risks.」

「Although reduced sales activities continued due to the impact of the pandemic, overseas sales increased as orders for parts from China grew and the use of online trade shows generated benefits.」

「Although the effects of reduced sales activities and sluggish market conditions caused by the spread of COVID-19 continued, overseas sales increased due to solid orders for cutting-type round balers for Europe and the benefits of using online trade shows.」

「Overseas sales declined due to reduced sales activities caused by the spread of COVID-19 and sluggish market conditions, despite some benefit from the use of online trade shows.」

「In addition, if the global container shortage caused by the spread of COVID-19 results in delays in ocean transport for overseas transactions or a surge in ocean freight rates, this could affect our operating results and financial position.」

「Due to the spread of COVID-19, demand for orders of machinery related to feed production and other equipment declined substantially, reflecting reduced appetite for capital investment among agricultural workers amid sluggish consumption of domestically produced agricultural products and the impact of reduced sales activities both in Japan and overseas,」

「Overseas sales also declined because of the impact of COVID-19. Sales in the agricultural machinery business as a whole decreased by ¥232 million year on year to ¥1.298 billion, down 15.2%.」

「Looking ahead, the situation remains uncertain, owing to risks arising from developments surrounding trade issues, the outlook for the Chinese economy, the UK's withdrawal from the EU and fluctuations in the financial and capital markets, as well as the impact of consumer sentiment after the consumption tax rate increase on consumption.」

「During the cumulative second-quarter period, there were no new business risks and no material changes in the business risks described in the annual securities report for the preceding fiscal year.」

「Looking ahead, the situation remains uncertain, owing to factors including the impact of developments in trade issues on the global economy, trends in the Chinese economy and fluctuations in the financial and capital markets.」

「These overseas operations are subject to risks including the economic environment and business conditions in each country and region, unexpected changes in laws or regulations, international tax issues such as transfer pricing taxation, differences in business practices, securing personnel, political upheaval, regional conflicts and disasters,」