Economic fluctuations and concentration of demand in the automotive industry

「Looking ahead, the global economy is expected to maintain its recovery trend, supported by demand for capital investment and other factors, although uncertainty is expected to continue due to heightened geopolitical risks, fluctuations in resource prices, and the effects of monetary policies in various countries.」

「Looking ahead, although the global economy contains downside factors such as developments in U.S. trade policy and heightened geopolitical risks, we expect it to remain on a recovery trend, supported by economic policies in various countries and demand for capital investment.」

「The Group's results remained strong, with the Chain business maintaining solid performance despite being partly affected by US tariff policies, while the Mobility business also remained firm against a backdrop of growing demand for hybrid vehicles.」

「During the interim consolidated accounting period under review, downside risks to the global economy increased against the backdrop of US tariff policies, but economic policies in various countries provided support and the global economy maintained a moderate recovery trend overall. In the US, personal consumption slowed due to higher corporate costs and inflation resulting from tariffs, but the economy remained firm as capital investment provided support. In Europe and China, economies struggled to grow due to weak external demand, but fiscal stimulus prevented further deterioration.」

「During the fiscal year under review, the global economy remained firm overall. China's prolonged stagnation continued against a backdrop of the property downturn and sluggish domestic demand, while the US economy maintained high growth supported by favorable employment and income conditions, and the European economy moved toward a gradual recovery as inflationary pressures eased.」

「During the interim consolidated accounting period under review, the global economy remained on a moderate recovery track. China's prolonged property downturn continued to weigh on its economy, while the US economy remained firm on the back of resilient personal consumption, and the European economy continued to show signs of recovery as inflationary pressures eased. Looking ahead, uncertainty in overseas economies is expected to increase due to heightened tensions in the Middle East, delayed recovery in China, and the US presidential election.」

「Looking ahead, the global economy is expected to show increasing signs of stagnation due to heightened geopolitical risks in the Middle East, the materialization of the impact of monetary tightening in the US and Europe, and delayed recovery in China. Japan's economy is also expected to remain broadly flat, as the recovery in inbound demand and other areas continues but is offset by the impact of stagnation in overseas economies.」

「Looking ahead, we expect the global economy to show stronger signs of stagnation as the effects of monetary tightening in the US and Europe become more pronounced and China’s economic recovery is delayed. Although Japan’s economy is expected to benefit from continued recovery in inbound demand and other factors, it is expected to remain broadly flat due to the effects of stagnation in overseas economies.」

「During the first quarter of the fiscal year (1 April 2023 to 30 June 2023), the global economy remained uncertain, owing to soaring raw material and energy prices resulting from the prolonged Russia-Ukraine situation and monetary tightening accompanying global inflation.」

「During the third quarter of the fiscal year (1 April 2022 to 31 December 2022), the global economy remained uncertain, owing to soaring raw material and energy prices and parts shortages resulting from the prolonged Russia-Ukraine situation, supply chain disruptions caused by lockdowns in major Chinese cities accompanying the spread of COVID-19, and interest rate hikes in Europe and the United States accompanying accelerating inflation.」

「During the second quarter of the fiscal year (1 April 2022 to 30 September 2022), the global economy remained uncertain, owing to soaring raw material and energy prices and parts shortages resulting from the prolonged Russia-Ukraine situation, as well as supply chain disruptions caused by lockdowns in major Chinese cities accompanying the spread of COVID-19.」

「During the first quarter of the fiscal year (1 April 2022 to 30 June 2022), the global economy remained uncertain, owing to parts shortages and soaring energy prices resulting from the Russia-Ukraine situation, as well as logistics disruptions caused by lockdowns in major Chinese cities accompanying the spread of COVID-19.」

「The business environment surrounding the Group is expected to remain uncertain, as in addition to the impact of COVID-19, the global situation may affect the economy through energy and material prices and foreign-exchange movements.」

「During the first nine months of the fiscal year under review (1 April 2021 to 31 December 2021), the global economy generally moved toward recovery due to progress in COVID-19 vaccinations, particularly in developed economies, and economic policies in various countries. China's recovery slowed due to the renewed spread of COVID-19 and other factors, while the US and Europe moved toward recovery supported by government economic measures. Japan's economy was also on a recovery trend due to various policies and improvements in overseas economies, but uncertainty over the outlook continued due to restrictions on economic activity accompanying the renewed spread of COVID-19, particularly variants, semiconductor shortages, and soaring material prices.」

「Although difficult conditions continued due to the global COVID-19 pandemic, economies generally moved toward recovery as a result of economic policies in various countries and progress in vaccinations, particularly in developed economies. China's recovery slowed, while the US and Europe moved toward recovery due to government economic measures. Japan's economy was also on a recovery trend due to various policies and improvements in overseas economies, but uncertainty over the outlook continued due to restrictions on economic activity caused by the renewed spread of COVID-19, semiconductor shortages, and soaring material prices.」

「During the first quarter of the fiscal year under review (1 April 2021 to 30 June 2021), the business environment surrounding the Group generally moved toward recovery, with China, South Korea and Taiwan recovering from the impact of COVID-19 and the US and Europe showing signs of recovery supported by economic measures implemented by their respective governments. In Japan, the economy also showed signs of recovery due to various policies and improvements in overseas economies, but uncertainty over the outlook continued as restrictions on economic activity remained in place amid the renewed spread of COVID-19.」

「In particular, if the automotive industry, the Group's largest customer, were to experience sharp changes in demand or structural changes, such as a decline in the number of vehicles produced with internal combustion engines or reduced capital investment, this could affect the Group's operating results and financial position.」

「After overseas lockdowns and Japan's state of emergency were lifted, signs of recovery emerged both in Japan and overseas, supported by emergency economic measures in various countries. However, the situation remained uncertain as the renewed spread of COVID-19 heightened uncertainty over the outlook. Against this backdrop, orders received during the first nine months of the fiscal year under review amounted to ¥133,756 million, down 23.6% year on year, and net sales amounted to ¥137,531 million, down 18.7%.」

「Orders received during the first six months of the fiscal year under review amounted to ¥85,716 million, down 30.6% year on year, and net sales amounted to ¥88,472 million, down 22.6%.」

「During the first quarter of the fiscal year under review (1 April 2020 to 30 June 2020), the business environment surrounding the Group deteriorated globally as economies slowed due to the spread of COVID-19, with lockdowns imposed in various countries and regions overseas. In Japan, the economy also deteriorated sharply due to restrictions on activities following the declaration of a state of emergency and lower personal consumption. Against this backdrop, orders received during the first quarter under review amounted to ¥39,608 million, down 41.8% year on year, and net sales amounted to ¥40,829 million, down 27.0%.」

「The global spread of COVID-19 had a significant impact on regional economies, resulting in heightened uncertainty over the outlook. Japan's economy entered a recessionary phase due to geopolitical risks, including US-China trade tensions, lower consumption following the consumption tax increase, and the spread of COVID-19 from February onward.」

「Economic slowdowns continued in China and the Indian Ocean Rim due to the impact of US-China trade tensions and other factors. Japan's economy was on a moderate recovery track, supported by improvements in employment and income conditions despite weakness in production and exports, but uncertainty increased due to heightened geopolitical risks, including US-China trade tensions, and a decline in consumption following the consumption tax increase.」

「During the second-quarter consolidated cumulative period (1 April 2019 to 30 September 2019), the US economy remained resilient, supported by personal consumption, despite some impact from US-China trade tensions. The European economy also remained firm, although signs of weakness emerged in production, supported by personal consumption and other factors. Meanwhile, the economies of China and the regions surrounding the Indian Ocean began to slow because of the impact of US-China trade tensions and other factors. Japan's economy was on a moderate recovery track, supported by improvements in employment and income conditions despite weakness in production and exports, but economic conditions weakened because of the prolonged US-China trade tensions and other factors.」

「During the first-quarter consolidated cumulative period (1 April 2019 to 30 June 2019), the Group's business environment saw the US economy maintain its recovery trend despite some impact from trade tensions. The economies of Europe and the regions surrounding the Indian Ocean also remained on a gradual recovery track, although China's economy began to slow because of the impact of trade tensions and sluggish consumption. Japan's economy was also on a moderate recovery track, supported by improvements in employment and income conditions despite weakness in production and exports, but uncertainty increased partly because of the impact of US-China trade tensions.」

「During the consolidated fiscal year, economic conditions remained generally firm in the US, Europe, the regions surrounding the Indian Ocean and East Asia, but China's economy began to slow because of the impact of US-China trade tensions and sluggish consumption. Japan's economy remained on a recovery track, supported by increased production and exports, but uncertainty increased partly because of the impact of trade tensions between the US and China.」

「China's economy began to slow as a result of sluggish consumption and deteriorating corporate performance. Although Japan's economy remained on a recovery track, supported by increased production and exports, economic conditions weakened partly because of the impact of trade tensions between the US and China.」

「During the first-quarter consolidated cumulative period (1 April 2018 to 30 June 2018), the Group's business environment saw firm conditions in the US and Europe and a recovery trend in China. The economies surrounding the Indian Ocean and in East Asia also remained generally firm. Japan's economy continued its moderate recovery, supported by increased production and exports and higher capital investment.」

「During the consolidated fiscal year, the Group's business environment saw continued recovery in the US and a gradual recovery in Europe. China's economy remained on a recovery track, while the economies surrounding the Indian Ocean and in East Asia remained generally firm. In Japan, the economy recovered moderately, supported by increased production and exports and higher capital investment.」

「During the third-quarter consolidated cumulative period (1 April 2017 to 31 December 2017), the Group's business environment saw continued recovery in the US and a gradual recovery in Europe. China's economy was also on a recovery track, while the economies surrounding the Indian Ocean and in East Asia remained generally firm. In Japan, the economy continued its moderate recovery, supported by increased production and exports and higher capital investment.」

「In the Group's business environment, the US economy expanded moderately and the European economy remained firm. China moved onto a recovery track, while the economies surrounding the Indian Ocean and in East Asia also remained generally firm. In Japan, the economy continued its moderate recovery, supported by increased production and a recovery in exports.」

「In the Group's business environment, the US economy remained firm and the European economy continued its gradual recovery. The slowdown in China appeared to have bottomed out, while the economies surrounding the Indian Ocean and in East Asia also remained generally firm. The Japanese economy remained on a moderate recovery track, supported by increased production and a recovery in exports.」

「The Asian economy remained generally firm, with signs of a recovery in the Chinese economy.」

「Growth in the Asian economy, including the Chinese economy, slowed. Although the Japanese economy was on a moderate recovery track, considerable uncertainty continued, including as a result of the stronger yen. Against this backdrop, the Group's business environment remained generally firm, but the translation effect of the stronger yen affected results. Orders received during the second-quarter consolidated cumulative period amounted to ¥99,203 million, down 4.6% year on year, while sales amounted to ¥95,740 million, down 5.7%.」

「Growth in the Asian economy, including the Chinese economy, slowed. The Japanese economy remained stagnant due to sluggish exports against the backdrop of a slowdown in emerging-market economies and a stronger yen, as well as stagnant capital investment resulting from deteriorating corporate earnings. Against this backdrop, orders received during the first-quarter consolidated cumulative period amounted to ¥49,944 million, down 5.0% year on year, while sales amounted to ¥46,596 million, down 3.7%.」

「A decline in demand due to an economic downturn or other factors, particularly a sharp change in demand in the automotive industry, the Group's largest customer, could have a significant impact on operating results.」