Risks Related to Overseas Economic, Political and Regulatory Conditions and Foreign Exchange Fluctuations

「Looking ahead, we expect the highly uncertain situation to continue, and it will remain necessary to pay attention to the impact of the situation in the Middle East and fluctuations in financial and capital markets.」

「In particular, if inflation caused by excessive price increases, especially for resources, due to the prolonged situation in Ukraine and turmoil in the Middle East adversely affects the global economy, it could adversely affect the Group's operating performance and financial position.」

「Meanwhile, although the global economy continued to recover gradually, signs of stagnation persisted in some regions, and the outlook remained uncertain due to the impact of U.S. policy developments and volatility in financial and capital markets.」

「Meanwhile, although the global economy continued to recover despite signs of stagnation in some regions, downside risks remained, including the impact of persistently high interest rates in the United States and Europe, continued stagnation in China's property market, developments in the Middle East and volatility in financial and capital markets.」

「Meanwhile, the global economy remained subject to downside risks. Although the U.S. economy continued to recover, Europe remained weak and China's recovery showed signs of stalling, alongside global monetary tightening, soaring resource and other raw material prices against the backdrop of the situation in Ukraine, and the impact of developments in the Middle East.」

「Meanwhile, the global economy remained subject to downside risks. The U.S. economy continued to recover, but Europe remained stagnant and China's recovery slowed, alongside global monetary tightening and the impact of soaring resource and other raw material prices against the backdrop of the situation in Ukraine.」

「Meanwhile, although expectations for an economic recovery remained as the U.S. economy continued to recover gradually and signs of a recovery emerged in China despite continued stagnation in Europe, downside risks remained, including the impact of global monetary tightening and soaring prices for resources and other raw materials against the backdrop of the situation in Ukraine.」

「Meanwhile, although a gradual recovery in the global economy was expected to continue, downside risks remained, including the progression of global inflation due to soaring prices for resources and other raw materials resulting from the prolonged situation in Ukraine, difficulties procuring components caused by supply chain disruptions and a sharp increase in COVID-19 cases in China.」

「Japan's economy remained subject to an uncertain outlook. Although economic activity was normalizing as the impact of COVID-19 eased and the economy was expected to recover, supported by the effects of various policies, rapid yen depreciation in the foreign exchange market and rising prices continued to pose concerns. Meanwhile, although the global economy was expected to continue its gradual recovery despite a slowing pace, downside risks remained, including soaring prices for resources and other raw materials due to the prolonged situation in Ukraine and difficulties procuring components caused by supply chain disruptions.」

「Meanwhile, the global economy remained subject to downside risks. Although a recovery in Europe and the United States was expected to continue, the impact of restrictions on economic activity in some parts of China due to renewed infections and the impact of soaring prices for resources and other raw materials resulting from the situation in Ukraine remained concerns.」

「Although the pace of China's recovery slowed, its gradual recovery trend continued. However, downside risks remained, including the global resurgence of COVID-19 infections caused by the Omicron variant and tensions between the United States and China.」

「Meanwhile, in the global economy, the U.S. economy continued to recover steadily and China maintained a gradual recovery trend. In Europe, signs of an economic recovery emerged despite continued severe conditions, but downside risks remained, including renewed COVID-19 outbreaks.」

「Meanwhile, the global economy remained subject to downside risks from the impact of COVID-19. The U.S. economy was steadily recovering despite severe conditions, while China was showing a gradual recovery trend; however, infections were resurging in India, and economic activity in Europe was being constrained by the resurgence of COVID-19 driven by new variants.」

「Meanwhile, in the global economy, a recovery in China's economy was expected amid the global COVID-19 pandemic, while economic activity was gradually resuming in the United States and Europe. However, the outlook for economic recovery remained uncertain.」

「The outlook for the global economy became even more uncertain as the global spread of the novel coronavirus, which originated in China in December 2019, began to have a pronounced impact on economic activity.」

「The economy remained subject to downside risks as uncertainty regarding overseas economic conditions and policies, including tensions over trade issues, the outlook for China's economy and developments surrounding the UK's withdrawal from the EU, continued to weigh on Japan's economy.」

「However, the economy remained subject to downside risks, including the impact of developments in trade issues on the global economy, the outlook for China's economy and uncertainty regarding overseas economies and policies, as China's economy gradually slowed due to the impact of trade friction caused by U.S. protectionist policies.」

「However, the economy remained subject to downside risks, including the impact of developments in trade issues on the global economy, the outlook for China's economy and uncertainty regarding overseas economies and policies, as China's economy gradually slowed due to the impact of trade friction caused by U.S. protectionist policies.」

「The economy remained subject to downside risks as Japan's economy continued to face the risk of being weighed down by uncertainty in overseas economies arising from future developments in trade issues, with China's economic recovery showing signs of stalling due to the impact of U.S. protectionist trade policies.」

「The economy remained subject to downside risks as Japan's economy continued to face the risk of being weighed down by uncertainty in overseas economies arising from future policy developments, including growing concerns over trade friction caused by protectionist U.S. trade policies.」

「The economy remained subject to downside risks as Japan's economy continued to face the risk of being weighed down by uncertainty in overseas economies arising from future policy developments, including growing concerns over trade friction caused by protectionist U.S. policies.」

「Ordinary income was slightly below the initial forecast of ¥600 million, partly because non-operating expenses, including foreign exchange losses resulting from foreign exchange fluctuations, were recognized.」

「The economy remained subject to downside risks, including the impact of uncertainty in overseas economies arising from future policy developments in the United States and emerging Asian economies, including China, as well as geopolitical risks centered on East Asia.」

「The Company posted an ordinary loss of ¥705 million, compared with an ordinary loss of ¥1.004 billion in the same period of the previous fiscal year, mainly because foreign exchange losses declined substantially and dividend income increased.」

「The Company recognized foreign exchange losses and other non-operating expenses, resulting in an ordinary loss of ¥3.401 billion, compared with ordinary income of ¥281 million in the same period of the previous fiscal year.」

「Ordinary income and loss reflected foreign exchange losses and other non-operating expenses recognized as the yen had remained on an appreciating trend through the first half. As a result, the Company posted an ordinary loss of ¥2.231 billion, compared with an ordinary loss of ¥1.510 billion in the same period of the previous fiscal year.」

「Ordinary income and loss reflected foreign exchange losses and other non-operating expenses recognized as the yen remained on an appreciating trend. As a result, the Company posted an ordinary loss of ¥1.672 billion, compared with an ordinary loss of ¥955 million in the same period of the previous fiscal year.」

「Ordinary income and loss reflected foreign exchange losses and other non-operating expenses recognized as the yen remained on an appreciating trend. As a result, the Company posted an ordinary loss of ¥1.004 billion, compared with an ordinary loss of ¥866 million in the same period of the previous fiscal year.」

「The Group supplies products not only in Japan but also in regions including the United States, Europe, Asia, the Middle East and Russia. Accordingly, economic conditions, political factors, laws and regulations, and other factors in these countries and regions could adversely affect the Group's sales activities. The Group also engages in transactions denominated in foreign currencies. It therefore hedges foreign exchange fluctuation risks through forward exchange contracts and other measures, but it is impossible to eliminate all such risks, and they could adversely affect the Group's operating performance and financial position.」