Uncertainty over the outlook due to the UK’s Brexit issue, the slowdown in China’s economy and other factors

「Geopolitical risks and uncertainty in the trade environment continue to persist.」

「During the interim consolidated accounting period, economic growth rates in major countries remained relatively firm despite uncertainty surrounding developments in U.S. tariff policy and trade restrictions.」

「The global economy lacked momentum during the consolidated fiscal year as uncertainty increased due to the U.S. presidential election, the situation in the Middle East and natural disasters occurring in various locations.」

「During the interim consolidated accounting period, growth in demand for EVs, particularly in Europe, slowed markedly.」

「The global economy remained resilient during the cumulative first quarter of the consolidated fiscal year, driven by the U.S. economy, where personal consumption remained firm against a backdrop of favorable employment conditions. However, economic growth in Europe and China showed signs of slowing.」

「The global economy continued to recover gradually during the consolidated fiscal year, but remained uncertain due to the effects of rising prices, monetary tightening mainly in Europe and the United States, and the slowdown of the Chinese economy.」

「During the cumulative first three quarters of the consolidated fiscal year, global economic growth continued to slow due to persistently high inflation and tight labor markets in many countries and regions. In addition, financial risks increased as global interest rates rose and geopolitical risks materialized.」

「During the cumulative second quarter of the consolidated fiscal year, worldwide inflation and monetary tightening in various countries had begun to ease, but global economic growth remained on a slowing trend due to persistently high inflation and tight labor markets in many countries and regions.」

「During the cumulative first quarter of the consolidated fiscal year, the global economy was on a gradual slowing trend. Concerns arose over the adverse effects on the economy of weaker domestic demand caused by worldwide inflation and monetary tightening in various countries, as well as geopolitical risks such as the situation in Ukraine and tensions between the United States and China.」

「The global economy continued to recover during the consolidated fiscal year, supported by the normalization of economic activity following the COVID-19 pandemic. However, inflation, including rising energy and materials prices, and monetary tightening worldwide have made the slowdown in the pace of recovery more pronounced.」

「Although the global economy was on a recovery track during the cumulative first three quarters of the consolidated fiscal year, concerns have emerged that the pace of recovery will slow as downside economic risks materialize due to monetary tightening in the United States and other countries amid rising inflationary pressures.」

「During the first quarter of the fiscal year, the global economy was in a period of disruption due to the worldwide spread of the Omicron variant of COVID-19, as well as semiconductor shortages and higher crude oil prices. Furthermore, the full-scale invasion of Ukraine by Russia, which began on 24 February, increased concerns over securing resources and energy, particularly in Europe.」

「Although economic measures in various countries had been effective in supporting recovery during the spread of COVID-19 and the subsequent recovery phase, and the rapid spread of new variants, significant uncertainty remained over the outlook amid concerns about the impact of the Omicron variant and the possibility that semiconductor shortages and disruptions to international logistics could continue for some time.」

「During the first 3 quarters of the fiscal year, the global economy entered a recovery phase, supported by the reopening of economic activity in Europe and the United States as vaccinations progressed, despite the spread of COVID-19 variants.」

「During the first 2 quarters of the fiscal year, personal consumption recovered steadily as economic measures were implemented and vaccinations progressed in various countries. In China, the export industry continued to perform well, driven by personal consumption in Europe and the United States. In particular, the medium- to long-term growth rate of the EV market, which has a significant impact on the Company’s business, was expected to accelerate in Europe, the United States and China, supported by government subsidy programs and environmental measures.」

「During the first quarter of the fiscal year, the global economy continued to recover from the COVID-19 pandemic, led by manufacturing, and economic recovery in Europe, the United States and China was expected to accelerate.」

「Although the global economy was significantly affected by the COVID-19 pandemic during the consolidated fiscal year, it began to recover gradually in the second half. However, the pace of recovery varied by country, region and industry. In China, manufacturing investment and personal consumption recovered quickly, and substantial GDP growth was expected again in 2021. In the United States, recovery was expected to continue as the new administration’s economic measures became clear. Meanwhile, recovery in Europe and Japan was expected to take somewhat longer.」

「During the first 3 quarters of the fiscal year, the global economy reached a temporary bottom after the impact of the COVID-19 pandemic, and signs of a recovery in production activity emerged. However, employment was taking time to recover, and even in the absence of further infections, economic activity was expected to recover only gradually. China entered a recovery phase ahead of Japan, the United States and Europe, supported by fiscal policy and led by the automobile industry and other sectors. In Europe, recovery proceeded smoothly through July, supported by government policies to promote automobile sales, but the resurgence of COVID-19 infections from August onward caused the recovery to lose momentum as employment and income conditions deteriorated. In the United States, the pace of recovery also slowed somewhat after the presidential election because the direction of additional economic measures remained uncertain.」

「In the lithium-ion secondary battery separator business, the Group’s core business, European automotive OEMs closed their factories from March to April as a coronavirus countermeasure, prompting major customers to adjust production. As a result, the Company had no choice but to suspend operations at some production lines from mid-April through May, but resumed operations at all lines in June.」

「Concerns arose over a global slowdown in production activity as the coronavirus outbreak that began in China spread. In China, the resumption of manufacturing production after the Chinese New Year holiday was delayed by approximately 2 weeks to 1 month compared with a typical year.」

「As a result of these factors, sales for the fiscal year ending December 2020 were expected to weaken somewhat in the first quarter because of fewer operating days during the Chinese New Year holiday in China, where many factories operated by major customers for consumer batteries are located, and uncertainty over the impact of the coronavirus outbreak on the market, although」

「During the first 3 quarters of the fiscal year, signs of a slowdown began to emerge in both manufacturing and non-manufacturing in the United States, and the wait for an improvement in trade friction with China continued. In China, GDP growth continued to decline and the economy remained on a slowing trend. In Europe, low growth was expected to continue because of the slowdown in China’s economy.」

「During the first 2 quarters of the fiscal year, concerns over the outlook arising from U.S.-China trade friction caused signs of an economic slowdown to intensify. In Europe, deterioration in manufacturing conditions became pronounced and business sentiment continued to worsen. In China, export growth slowed because of trade friction with the United States, and the economy continued to slow.」

「During the first quarter of the fiscal year, the impact of U.S.-China trade friction began to emerge in various regions, and signs of economic stagnation appeared even in the previously strong U.S. economy. In Europe, deterioration in manufacturing conditions progressed and the economic slowdown became pronounced. In China, economic growth continued to slow moderately as exports stagnated, although the full-scale implementation of economic stimulus measures was expected.」

「Although the U.S. economy had remained strong during the consolidated fiscal year, corporate conditions began to deteriorate markedly from the second half of the year, particularly in manufacturing, prompting greater caution over the outlook. In Europe, concerns over the slowdown in China’s economy, U.S.-China trade friction and the increasing possibility of a no-deal Brexit led to stagnation in corporate activity and a continued decline in growth. In China, growth slowed markedly, particularly in export industries, against a backdrop not only of U.S.-China trade friction but also of a global economic slowdown, and stagnation continued.」

「During the first 3 quarters of the fiscal year, concerns over the impact of U.S. trade policy toward China began to emerge in the United States, although corporate conditions remained firm. In Europe, economic stagnation intensified because of the impact of currency concerns in emerging markets and U.S.-China trade friction. In China, the economic slowdown continued, and concerns grew over the adverse effects of trade friction with the United States.」

「In China, monetary policy has shifted toward greater consideration for economic stability, but growth in consumption and investment has been trending downward. There also remains uncertainty over how production, which had grown on the strength of external demand, will be affected by future U.S. trade policy.」

「During the first quarter of the fiscal year, the global economy continued to expand generally at a firm pace, although several areas of concern began to emerge in various countries and regions. In the United States, concerns arose over the potential economic impact of changes in trade policy. In the euro area, the economy continued to expand firmly, particularly through capital investment, but signs of a slowdown in the pace of growth began to emerge. In China, concerns remained over slowing automobile sales and the impact of U.S. trade policy, although growth was driven by expanding domestic demand against a backdrop of rising personal income.」

「As a result, the global economy as a whole maintained stable growth, and favorable economic conditions continued.」

「During the first 3 quarters of the fiscal year, the U.S. economy remained firm due to improvements in manufacturing, while Europe continued to grow at an annualized GDP rate of more than 2%, driven by increased exports outside the euro area. In China, growth slowed across domestic production, exports, investment and retail sales.」

「During the first quarter of the fiscal year, the global economy continued to recover moderately. The U.S. economy expanded moderately against a backdrop of recovering domestic and external demand, while Europe’s recovery accelerated, driven by an increase in manufacturing orders. Although China showed signs of slowing economic growth, stable growth continued.」

「The U.S. economy remained firm throughout the consolidated fiscal year, while growth in Europe remained below expectations due to geopolitical risks. In China, an economic slowdown became evident, including as a result of declining exports.」

「During the first 3 quarters of the fiscal year, the global economy remained uncertain because of concerns over downside risks arising from geopolitical risks in Europe, the slowdown in China’s economy and sluggish personal consumption in Japan, despite a steady recovery in the United States.」

「The outlook remains uncertain because of concerns over downside risks arising from geopolitical risks in Europe, including Brexit, and the impact of the economic slowdown in China.」