Unexpected events, including natural disasters and geopolitical risks

「中東情勢を巡る不透明感は依然として高く、金融・財政政策の動向も含めて景気下振れリスクが継続しております。」

「During the interim consolidated accounting period from April 2026 to September 2026, the global economy remained generally resilient, supported by such factors as increased AI-related investment, despite the prolonged elevation of energy prices resulting from heightened tensions in the Middle East. Meanwhile, long-term interest rates rose in financial markets against a backdrop that included concerns over prolonged inflationary pressure. Uncertainty surrounding the situation in the Middle East remains high, and downside risks to the economy continue, including those related to trends in monetary and fiscal policy.」

「However, uncertainty about the outlook increased as the situation in the Middle East deteriorated from the end of February 2026.」

「However, uncertainty about the outlook increased as the situation in the Middle East deteriorated from the end of February 2026.」

「In the United States, interest rate cuts resumed in September 2025 for the first time in 9 months as a response to the risk of an economic slowdown, but the impact of the high-tariff policy on the global economy remains uncertain.」

「Against this backdrop, tariff policies put forward by the new administration that took office in the United States increased uncertainty over the outlook for the global economy.」

「During the six-month consolidated period, global inflation declined as monetary tightening policies continued in the United States and Europe for more than 2 years. As a result, policy rates began to be cut in the United States and Europe, among others, partly to ease concerns over a future economic recession. In China, economic stimulus measures, including monetary easing and property-sector support, were introduced amid concerns over the outlook for the economy.」

「During the fiscal year, global supply chain disruptions caused by the COVID-19 pandemic were resolved, and inflation declined worldwide as restrictive monetary policies were adopted, led by central banks in the United States and Europe. However, although the US economy remained stronger than expected, concerns also increased that prolonged inflation could weigh on the global economy.」

「During the cumulative consolidated period through the third quarter, inflation eased as a result of monetary tightening by central banks in the United States and Europe, and additional rate hikes were deferred from autumn 2023 onward. Against this backdrop, the US economy remained firm, supported by strong personal consumption, while the European economy stagnated more noticeably as the effects of monetary tightening emerged. In China, the economic recovery continued to lack momentum due to sluggish property market conditions and stagnant consumption.」

「During the cumulative consolidated period through the second quarter, monetary tightening by the United States and Europe continued in response to inflation. The US economy remained firm, supported by resilient personal consumption, while downward pressure on the European economy from rate hikes intensified. In China, concerns over an economic slowdown increased due to worsening conditions in the property market and other factors, and uncertainty over the outlook for the global economy continued.」

「During the cumulative consolidated period through the first quarter, the United States and Europe continued to raise interest rates for more than 1 year amid persistent inflation concerns, and concerns over an economic slowdown in the United States and Europe continued. In China, although the "zero-COVID" policy aimed at containing COVID-19 was lifted, there were no signs of strong momentum in the economic recovery.」

「During the fiscal year, global inflation progressed due to soaring prices of energy, food and other items. As a result of rate hikes by the United States and Europe to address this, the inflation rate showed signs of slowing but remained at a high level. Against this backdrop, concerns over instability in the financial systems of the United States and Europe also increased, including the failure of a regional US bank in March 2023.」

「During the cumulative consolidated period through the third quarter, global inflation progressed due to soaring prices of energy, food and other items, and the United States and Europe raised interest rates in response, but concerns over a global economic slowdown intensified. Meanwhile, economic indicators suggesting that inflation was slowing emerged, making the timing of the end of rate hikes a focus.」

「These were insurance proceeds received for damage to equipment and other assets caused by flooding at the factories of Asian NDK Crystal SDN. BHD. and NDK Quartz (M) SDN. BHD. due to torrential rain in Malaysia in December 2021.」

「During the cumulative consolidated period through the first quarter, as demand recovered from the COVID-19 pandemic, global inflation accelerated as Russia's invasion of Ukraine drove up energy and grain prices. Although the United States and Europe continued to raise interest rates to address inflation, US GDP growth in the April-June quarter was negative for the second consecutive quarter, while concerns over an economic slowdown in Europe intensified. In China, economic activity stagnated due to urban lockdowns under the "zero-COVID" policy, and the economy slowed sharply.」

「In 2022, the United States moved toward monetary tightening to curb inflation, while new sources of uncertainty over the outlook for the global economy emerged, including Russia's invasion of Ukraine and urban lockdowns in China under its "zero-COVID" policy.」

「During the cumulative consolidated period through the third quarter, economic recovery was under way in major countries as large-scale monetary easing and aggressive fiscal measures were implemented, but supply chain disruptions caused by shortages of semiconductors and other components and the spread of the Omicron variant of COVID-19 cast a shadow over the momentum of the recovery. In addition, the United States indicated a policy of strengthening monetary tightening to curb inflation, and uncertainty over the outlook for the global economy continued.」

「During the cumulative consolidated period through the second quarter, the impact of the spread of COVID-19 on supply chains for automotive components and other products became apparent, casting a shadow over the momentum of the economic recovery. In China, rising resource prices were compounded by restrictions on electricity supply, intensifying the sense of stagnation. The impact on supply chains arising from shortages of semiconductors and other components could last longer than expected, increasing uncertainty over the outlook for the global economy.」

「During the cumulative consolidated period through the first quarter, the Chinese and US economies, which had returned to positive growth the previous year, remained firm in the April-June quarter. In the euro area, where growth had been negative for 2 consecutive quarters through the January-March 2021 quarter, the economy also recovered significantly in the April-June quarter following the reopening of economic activity. In Japan, however, personal consumption remained weak and economic conditions continued to be difficult, as the renewed spread of COVID-19 led to the third state of emergency being declared in April. Although vaccination progressed worldwide, infections with the India variant, or Delta variant, of COVID-19 were spreading, and conditions remained highly uncertain.」

「Real GDP growth remained positive in China and the United States during the October-December 2020 quarter, but the euro area again restricted economic activity, prioritizing containment of COVID-19, causing real GDP growth in the region to fall into negative territory during the October-December 2020 quarter. The outlook for the global economy therefore remains highly uncertain.」

「However, moves to tighten economic restrictions in response to a renewed spread of COVID-19 have also emerged, and the outlook for the global economy remains uncertain.」

「During the cumulative consolidated period through the first quarter, real GDP growth in China, which had resumed positive growth after economic activity restarted earlier, turned positive in the April-June quarter, while the economies of the United States, the euro area and Japan appear to have suffered unprecedentedly sharp declines.」

「These were insurance proceeds received for inventory damage caused by Typhoon No. 19 in October 2019.」

「During the cumulative consolidated period through the second quarter, global trade and investment slowed as a result of trade friction between the United States and China. In the United States, the manufacturing sentiment index for September fell to its lowest level since June 2009, while in China, weakness in manufacturing continued and real economic growth slowed for the second consecutive quarter in the July-September period.」

「During the cumulative consolidated period through the first quarter, China introduced economic measures to mitigate the impact of trade friction with the United States, but weakness in manufacturing continued and real economic growth slowed in the April-June 2019 quarter.」

「The global economy remained firm during the period, supported in the United States by improvements in employment conditions and other factors, but in China, the economy showed increasingly clear signs of slowing, including a slowdown in personal consumption, due to the impact of trade friction between the United States and China. Europe also faced political uncertainty, and uncertainty over the outlook for the global economy persisted.」

「During the cumulative consolidated period through the third quarter, the Chinese economy was showing increasingly clear signs of slowing under the impact of trade friction between the United States and China, which in turn was causing sentiment toward the global economy to deteriorate.」

「In addition, trade friction between the United States and China has caused sentiment toward the Chinese economy to deteriorate, raising concerns about the impact on the United States and, by extension, the global economy depending on how the situation develops.」

「However, it is necessary to monitor the impact on the global economy of US protectionist trade policies and the FRB's rate-hike policy.」

「However, continued attention is required regarding the impact on the global economy of the protectionist trade policies being successively introduced in the United States.」

「Following the global economic expansion, the low-interest-rate environment that had been one of the factors supporting the economy has reached a turning point, and it is necessary to monitor policy management in each country going forward.」

「During the cumulative consolidated period through the second quarter, the Chinese economy slowed moderately, partly due to the effects of the authorities' policy of guiding interest rates higher, while in the United States, an economic recovery led by personal consumption continued, and the FRB decided to fully end quantitative monetary easing. Economic recovery also continued in Japan and Europe, and, having determined that concerns over deflation had receded, Europe began moving to end quantitative monetary easing, following the United States.」

「Against this backdrop, the United States and Europe have been moving to shift monetary policy from the monetary easing that had continued to date toward tightening, but uncertainty remains over the outlook for policy management by the Trump administration, and the Chinese economy could also slow depending on monetary policy.」

「These were repair costs and other expenses arising from a fire in the electrical room at the subsidiary Hakodate NDK Co., Ltd.」

「These were repair costs and other expenses arising from a fire in the electrical room at the subsidiary Hakodate NDK Co., Ltd.」

「However, depending on the economic policy management of the new US president and the results of national elections scheduled in Europe, concerns remain about the impact on the global economy, and conditions are expected to remain difficult to view optimistically.」

「The occurrence of unexpected and unforeseen circumstances, such as rising geopolitical risks and major changes in natural phenomena, including earthquakes, could have a material impact on the performance of the Group.」