Legal, regulatory, political and social risks in overseas countries

「The global construction machinery market remained on an adjustment trend amid an economic environment of rising uncertainty, as the existing global order and political, economic and security systems entered a phase of fundamental change, including disruption to global trade following the implementation of the US high-tariff policy and intensifying US-China trade friction.」

「The global construction machinery market remained on a slowing trend as geopolitical issues associated with policy gridlock during a global election year and conflicts in Ukraine and the Middle East, as well as US-China tensions, became increasingly acute.」

「During the cumulative first quarter under review, there were no new business or other risks, nor any material changes to the business or other risks described in the annual securities report for the previous fiscal year.」

「As the Group actively develops overseas markets, it faces the following risks in countries outside Japan. If any of these events occurs, they may adversely affect the Group's operating results and financial position.」

「During the cumulative third quarter of the current consolidated fiscal year, there were no new business or other risks, nor any material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「During the first six months of the fiscal year under review (1 April 2021 to 30 September 2021), economic recovery in the With-COVID era advanced rapidly amid turbulent global conditions, as society underwent major changes triggered by COVID-19 and global warming. Digital transformation (DX) became fully established, global decarbonization policies (CN) accelerated along with energy and material price increases, supply chains were disrupted as economic activity resumed, and geopolitical tensions centered on the U.S.-China Cold War structure intensified further.」

「Amid rapidly changing global conditions, economic recovery in the with-COVID era began, while geopolitical tensions centered on the U.S.-China Cold War structure intensified further, supply chains were disrupted, and component prices surged.」

「During the three-month period under review, the business environment surrounding the Group changed rapidly, with global restrictions on activity caused by the spread of COVID-19 continuing, alongside a transformation in global socioeconomic activity and a simultaneous slowdown in the global economy. In addition, geopolitical tensions centred on the US-China Cold War structure intensified further following the outbreak of the COVID-19 crisis.」

「During the cumulative third quarter of the current consolidated fiscal year, there were no new business or other risks, nor any material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「Overseas sales fell 38.3% year on year to ¥4,737.560 million, mainly because sales to Asia and emerging markets declined substantially.」

「During the first nine months of the fiscal year under review (1 April 2018 to 31 December 2018), the global economy, which had been expanding since the Lehman shock, reached a peak, while the Group continued to operate in a rapidly changing environment amid structural shifts in the global economy, politics and technology, including heightened geopolitical tensions centered on the U.S.-China new Cold War structure and changes in industrial structures accompanying the technology revolution.」

「During the first six months of the fiscal year under review (1 April 2018 to 30 September 2018), the business environment surrounding the Group showed signs of change and adjustment in the global economy, which had previously been performing well. The North American market remained solid, but in Japan there was a反動減 following special demand related to exhaust-emissions regulations, while overseas emerging-market economies were affected by faster interest-rate hikes by the FRB and intensifying U.S.-China tensions over global dominance.」

「During the cumulative first quarter under review, there were no new business or other risks, nor any material changes to the business or other risks described in the annual securities report for the previous fiscal year.」

「As the Group is actively developing overseas markets, it faces the following risks in countries outside Japan. If any of these events occurs, they may adversely affect the Group's operating results and financial position. ① Unexpected changes in laws and regulations, or changes in tax systems that have an adverse impact ② An impact on the Group's activities due to inadequate social infrastructure ③ The emergence of adverse political factors ④ Social disruption caused by war or other events ⑤ Economic conditions in North America and Asia, its principal markets, and demand fluctuations beyond expectations arising from those conditions」

「During the cumulative third quarter of the current consolidated fiscal year, there were no new business or other risks, nor any material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「During the six-month period under review, there were no new business risks and no significant changes to the business risks described in the securities report for the previous fiscal year.」

「As the Group is actively developing overseas markets, it faces the following risks in countries outside Japan. If any of these events occurs, they may adversely affect the Group's operating results and financial position. ① Unexpected changes in laws and regulations, or changes in tax systems that have an adverse impact ② An impact on the Group's activities due to inadequate social infrastructure ③ The emergence of adverse political factors ④ Social disruption caused by war or other events ⑤ Economic conditions in North America and Asia, its principal markets, and demand fluctuations beyond expectations arising from those conditions」

「During the cumulative third quarter of the current consolidated fiscal year, there were no new business or other risks, nor any material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「During the six-month period ended 30 September 2016 (1 April 2016 to 30 September 2016), the global environment surrounding the Group remained in a low-growth and unstable state. The advanced economies of Japan and the United States reached a pause, while emerging-market economies, particularly those of resource-producing countries, stagnated. Political fluidity against a backdrop of inequality and the worsening of geopolitical issues threatening the existing order also continued.」

「The global economic and political environment remained in a low-growth and volatile state, including the UK's decision to leave the EU and the further escalation of terrorism and geopolitical issues.」

「As the Group is actively developing overseas markets, it faces the following risks in countries outside Japan. If any of these events occurs, they may adversely affect the Group's operating results and financial position. ① Unexpected changes in laws and regulations, or changes in tax systems that have an adverse impact ② An impact on the Group's activities due to inadequate social infrastructure ③ The emergence of adverse political factors ④ Social disruption caused by war or other events」