Political, Institutional and Regulatory Change Risks Associated with Overseas Expansion

「The global economy remains in a highly uncertain environment against a backdrop of inflationary pressure, geopolitical risks, concerns about the outlook for the Chinese economy and escalating tensions in the Middle East.」

「The economic environment in the next fiscal year is expected to remain uncertain due to factors including global geopolitical risks, particularly the situation in the Middle East.」

「Although a slowdown in the global economy was a concern during the interim consolidated accounting period against a backdrop of geopolitical risks and growing uncertainty over trade policy, the economy remained generally resilient. However, U.S. tariff policy is affecting the global economy as a whole, and uncertain conditions are expected to continue.」

「The global economy has seen increasing uncertainty about its outlook due to geopolitical risks, accelerating global inflation, the prolonged stagnation of the Chinese economy and the impact of U.S. tariff policies.」

「During the interim consolidated accounting period, uncertainty about the outlook for the global and Japanese economies continued due to geopolitical risks, accelerating global inflation, rising policy interest rates in Europe and the United States, and the sluggish Chinese economy.」

「During the fiscal year, uncertainty about the outlook for the global and Japanese economies continued due to geopolitical risks, accelerating global inflation, elevated policy interest rates in Europe and the United States, and stagnation in the Chinese economy.」

「During the cumulative third quarter of the fiscal year, uncertainty about the outlook for the global and Japanese economies continued due to geopolitical risks, accelerating global inflation, elevated policy interest rates in Europe and the United States, and stagnation in the Chinese economy.」

「During the cumulative second quarter of the fiscal year, uncertainty about the outlook for the global and Japanese economies increased due to geopolitical risks, accelerating global inflation, rising policy interest rates in Europe and the United States, and the slowdown in the Chinese market.」

「During the cumulative first quarter of the fiscal year, the global economy showed growing signs of slowdown as restrictions on movement related to COVID-19 were eased and economic activity normalized, while inflation accelerated and policy interest rates rose in Europe and the United States. In particular, in China, which was heavily affected by the COVID-19 pandemic in the previous fiscal year, the subsequent economic recovery was significantly delayed and demand remained weak. In Japan, uncertainty about the outlook continued due to declining exports resulting from global inflationary pressure and the slowdown in the global economy.」

「During the cumulative third quarter of the fiscal year, the global economy showed growing signs of slowdown due to continued monetary tightening accompanying the worldwide acceleration of inflation, the prolonged Russian invasion of Ukraine, and disruption caused by China's zero-COVID policy and its lifting. In Japan, uncertainty about the outlook persisted amid sharp foreign-exchange fluctuations, including a shift from the rapid depreciation of the yen to yen appreciation toward year-end, soaring resource prices and electricity rate increases.」

「During the cumulative second-quarter period, the global economy showed increasingly strong signs of slowing due to continued monetary tightening accompanying global inflation, the prolonged invasion of Ukraine by Russia, and China's zero-COVID policy. In Japan, the outlook remained uncertain due to fluctuations in foreign exchange rates caused by the sharp depreciation of the yen and rising prices resulting from soaring resource prices.」

「During the cumulative first-quarter period, the global economy remained uncertain due to the continuing lockdowns in China caused by the spread of the novel coronavirus, the effects of monetary tightening by countries seeking to contain inflation, and the situation in Ukraine and the resulting surge in global resource prices. In Japan, the economic outlook also remained uncertain due to the adverse effects of the rapid depreciation of the yen.」

「The situation in Ukraine has no material impact on the company at present. However, we will closely monitor the future impact on our business of soaring resource prices resulting from the situation in Ukraine.」

「During the cumulative third-quarter period, the global and Japanese economies showed signs of recovery due to the resumption of economic activity accompanying the spread of vaccines against the novel coronavirus disease and the implementation of economic stimulus measures in various countries. However, conditions remained unpredictable due to the spread of variants, rising resource prices and supply chain disruptions.」

「During the cumulative second-quarter period, restrictions on economic activity due to the spread of the novel coronavirus disease were prolonged. Although some signs of recovery emerged as a result of measures to contain the disease, overall economic activity remained slow to recover.」

「Although the reopening of economic activity progressed gradually in the United States and Europe and signs of an economic recovery emerged, some Asian countries continued to face difficulty containing the spread of infections due to delays in vaccine rollouts, leaving considerable uncertainty over the outlook.」

「In addition, the competitive environment is becoming increasingly challenging against a backdrop of advanced development of development and manufacturing technologies, new market entry by companies in emerging countries with competitive advantages in areas such as cost structures, M&A among competitors, and competition for semiconductor investment arising from tensions between the United States and China.」

「During the cumulative second-quarter period, the global economy slowed sharply due to restrictions on economic activity aimed at containing the spread of the novel coronavirus disease.」

「The economy had continued to show signs of slowing due to trade friction between the United States and China and the United Kingdom's departure from the EU. After the start of the year, the effects of the novel coronavirus spread rapidly worldwide and began to significantly affect the real economy as well.」

「During the nine months ended in the third quarter, the global economy slowed due to prolonged US-China trade friction and concern surrounding the UK's withdrawal from the EU.」

「During the six months ended in the second quarter, the global economy slowed due to the prolonged US-China trade friction, the UK's EU withdrawal issue, and growing concern over geopolitical risks in the Middle East and Asia.」

「During the cumulative first-quarter period, the global economy was under difficult conditions, including intensifying trade friction between the United States and China and prolonged uncertainty surrounding the United Kingdom's departure from the EU.」

「During the cumulative third-quarter period, the global economy entered a gradual recovery trend, although attention needed to be paid to the outlook for economic conditions due to trade issues between the United States and China and the United Kingdom's departure from the EU.」

「During the cumulative second-quarter period, the global economy entered a gradual recovery trend overall, although attention needed to be paid to the policy direction of the US administration, trade issues and the effects of geopolitical risks.」

「During the cumulative first-quarter period, the global economy entered a gradual recovery trend overall, although attention needed to be paid to the policy direction of the US administration, trade issues and the effects of geopolitical risks.」

「Although uncertainty remained due to political events in major Western countries and geopolitical risks in East Asia and the Middle East,」

「During the cumulative third-quarter period, the global economy continued to recover gradually, led by the United States, but the outlook remained uncertain due to political and economic developments in Europe, the United States and emerging Asian countries, as well as the situation in North Korea.」

「The US economy remained strong in terms of corporate earnings, employment and personal consumption. The European economy remained on a gradual recovery path, although the outlook for negotiations over the United Kingdom's departure from the EU remained uncertain. Overall, the European economy remained firm. In Asia, the economy also remained broadly firm, although China showed signs of slower growth.」

「Although downside risks remain, including uncertainty over US policy management, monetary tightening and rising geopolitical risks,」

「The outlook remains uncertain due to the United Kingdom's departure from the EU, slower growth in China and other emerging countries, and the election of a new US president.」

「In Europe, concerns over downside risks to the economy emerged following the decision for the United Kingdom to leave the EU. In emerging markets, although the Indian economy remained firm, economic slowdown continued in China and elsewhere, and overall economic conditions remained uncertain.」

「Changes in laws, regulations or tax systems, deterioration in economic or political conditions, political instability such as terrorism, emergencies such as riots, or disruption caused by the spread of infectious diseases could adversely affect the operating results and financial position of our group.」