Business continuity risks arising from political, regulatory, economic and disaster-related factors in overseas countries

「At the same time, concerns remain about the impact on consumer sentiment of developments in U.S. trade policy and higher crude oil prices resulting from the situation in the Middle East, and uncertainty about the outlook continues both in Japan and overseas.」

「As the situation surrounding Russia and Ukraine has become protracted, sales to Russia remain suspended. In addition, the escalating tensions in the Middle East have affected sales throughout the Middle East and neighboring countries. This could lead not only to lower sales but also to lower factory utilization rates and disruptions to production adjustments.」

「Looking ahead, significant changes in the external environment are expected to continue, including geopolitical risks such as the escalating situation in the Middle East, developments in U.S. trade policy, and surging resource prices.」

「During the interim consolidated accounting period, the US economy remained unstable due to the backlash from front-loaded demand following tariff increases, persistently high inflation, and developments in monetary policy. In Asia, India continued to show economic expansion supported by stronger domestic demand, while China's economy remained stagnant. Although the European economy was on a recovery trend, uncertainty over the outlook due to prolonged high prices and geopolitical risks remained unresolved.」

「As the situation surrounding Russia and Ukraine has become protracted, sales to Russia remain suspended. In addition, the escalating tensions in the Middle East have affected sales throughout the Middle East and neighboring countries. This could lead not only to lower sales but also to lower factory utilization rates and disruptions to production adjustments.」

「During the interim consolidated accounting period, the US economy remained relatively resilient, but showed unstable movements, including a slowdown in employment growth. The European economy continued to grow slowly, while China's economy remained weak amid an uncertain outlook, sluggish capital investment, and slowing household consumption against a backdrop of continued weakness in employment.」

「During the cumulative third quarter of the current consolidated fiscal year, the US economy remained relatively firm, but concerns persisted over the impact of global monetary tightening, the uncertain outlook for the Chinese economy, rising prices, and the situation in the Middle East.」

「In Europe, the prolonged impact of soaring energy prices has damaged economic activity, and economic growth in developed countries has remained relatively low. China continued to face severe economic conditions, with no clear signs of an economic recovery even after the lifting of its zero-COVID policy. Overall, the global economy followed an unstable course.」

「During the cumulative third quarter of the current consolidated fiscal year, the global economy remained on a slowing trend due to globally coordinated monetary tightening in response to inflationary pressures, disruption caused by China's zero-COVID policy, and shortages of energy and resources resulting from the prolonged Russian invasion of Ukraine. In Japan, under the living-with-COVID environment, personal consumption has been gradually recovering, particularly in travel and dining out, helped by the effects of various government policies, despite continued price increases. However, concerns remain over the growing risk that an economic downturn overseas will weigh on the domestic economy.」

「However, the surge in resource and raw-material prices caused by the situation surrounding Russia and Ukraine has not abated. In addition, countries have continued to tighten monetary policy to curb inflation, raising concerns over downside risks to economic activity and stagnation in the economic recovery.」

「The business environment remained challenging, with supply constraints continuing amid parts shortages and disruptions to logistics networks, while the company was also forced to suspend shipments to Russia.」

「The situation surrounding Russia and Ukraine has made the outlook for the global economy even more uncertain and represents a new area of concern.」

「During the cumulative first quarter of the current consolidated fiscal year, restrictions on movement were eased in countries around the world as COVID-19 vaccinations became more widespread and economies moved toward a full-scale reopening. However, the outlook remained uncertain due to concerns over a resurgence of infections caused by new variants and escalating tensions between the United States and China.」

「However, concerns over a renewed spread of infections have increased, with restrictions on going out being tightened again in Europe.」

「Meanwhile, although restrictions such as stay-at-home orders and requests to suspend business operations have been lifted gradually in some countries and regions where infections have peaked, and economic activity is gradually resuming, the risk of second and third waves remains and uncertainty about the outlook continues.」

「The global economy became increasingly stagnant due to prolonged US-China trade friction. From January 2020, the COVID-19 outbreak spread worldwide, forcing countries to suspend economic activity and causing a rapid recession.」

「During the cumulative consolidated period through the third quarter, the global economy showed signs of bottoming out amid continued economic slowdown, but uncertainty about the outlook persisted due to prolonged US-China trade friction and other factors.」

「Meanwhile, downside risks to the economy remained unresolved and uncertainty about the outlook persisted as global trade declined amid the prolonged US-China trade friction, which still showed no sign of ending.」

「During the cumulative consolidated period through the first quarter, moderate recovery continued, but uncertainty about the outlook persisted due to the impact of prolonged US-China trade friction and other factors.」

「During the cumulative consolidated period through the third quarter, the global economy continued to grow moderately, but the outlook became even more uncertain due to the impact of prolonged US-China trade friction and other factors.」

「Meanwhile, uncertainty about the outlook remained due to the impact of intensifying US-China trade friction and downward pressure on emerging-market currencies generally associated with higher US interest rates.」

「Meanwhile, concerns over trade friction caused by the US with other countries and its announced withdrawal from the Iran nuclear deal, among other factors, have not been dispelled.」

「Meanwhile, uncertainty about the outlook continued due to the impact on the global economy of geopolitical risks, including the slowing Chinese economy and tensions on the Korean Peninsula, and growing trade friction between the US and China.」

「During the cumulative consolidated period through the third quarter, the global economy continued to expand moderately, led by developed economies, but concerns about the outlook remained due to geopolitical risks, including the situations in the Middle East and on the Korean Peninsula, and the tendency toward a slowdown in the Chinese economy.」

「During the cumulative consolidated period through the second quarter, the global economy continued to recover moderately, led by developed economies, but uncertainty about the outlook remained due to geopolitical risks, including US policy developments, difficult negotiations over the UK’s withdrawal from the EU, and rising tensions on the Korean Peninsula.」

「During the cumulative consolidated period through the first quarter, uncertainty about the outlook continued amid heightened geopolitical risks, including concerns over policy developments in the US and Europe, the slowdown in emerging economies, and rising tensions in the Middle East and on the Korean Peninsula.」

「In countries where the Group conducts production and sales activities, changes in political systems, changes in laws and regulations, political and economic fluctuations, natural disasters such as earthquakes and typhoons, and wars and terrorism may occur, making it difficult to continue business activities and potentially affecting the Group’s performance.」

「During the cumulative consolidated period through the third quarter, the global economy recovered moderately, led by developed economies, but uncertainty about the outlook continued due to concerns over the slowdown in emerging economies, policy developments following the inauguration of the new US administration, the UK’s withdrawal from the EU and other factors.」

「The company was unable to dispel uncertainty about the outlook due to slower growth in emerging economies, the UK’s withdrawal from the EU, and heightened geopolitical risks, including a series of terrorist attacks.」

「In countries where the Group conducts production and sales activities, changes in political systems, changes in laws and regulations, political and economic fluctuations, natural disasters such as earthquakes and typhoons, and wars and terrorism may occur, making it difficult to continue business activities and potentially affecting the Group’s performance.」