Institutional, Political and Infrastructure Risks Associated with Overseas Business Expansion

「The global economy remains uncertain, owing to higher raw material, energy and transportation costs resulting from geopolitical risks, including the situation in the Middle East.」

「During the interim consolidated accounting period, the global economy remained firmer than expected because the impact of the US tariff policy, which had been a concern, was mitigated by companies bringing forward production and trade.」

「During the interim consolidated accounting period, economic sentiment in the United States remained firm, led by personal consumption, while economic stagnation continued in China because of weak domestic demand, including a downturn in the real estate market.」

「In China, infections spread rapidly following the lifting of the zero-COVID policy at year-end, and the economy slowed significantly.」

「In China, lockdowns, including in Shanghai, under the zero-COVID policy caused significant stagnation in industrial production and personal consumption, particularly in April, including the suspension of industrial product manufacturing and logistics delays.」

「Depending on policies concerning COVID-19 in each region and geopolitical risks arising from Russia's invasion of Ukraine, production at the Company's factories may be suspended, shortages of raw materials may occur, and transportation times may be extended.」

「During the nine-month cumulative period, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「In production, the Company's Vietnamese production subsidiary was forced to suspend operations from 3 February to 28 February 2021 because of lockdown measures in the area where it is located.」

「Economic conditions in Europe, the United States and Japan generally recovered from their April trough, and the automobile industry also showed signs of recovery in production and sales volumes as production resumed. Meanwhile, China's economy recovered more quickly because the COVID-19 outbreak peaked early, and continued subsidies for environmentally friendly vehicles and other measures proved effective, resulting in automobile sales exceeding the same period of the previous year.」

「Economic conditions in Europe, the United States and Japan generally recovered from their April trough, and the automobile industry also showed signs of recovery as production resumed.」

「The US and European economies deteriorated sharply in personal consumption and corporate performance because economic activity was suspended following restrictions on going out and factory shutdowns during lockdowns from mid-March 2020.」

「During the third quarter-to-date period of the consolidated fiscal year, the global economy remained on a slowing trend as US-China trade friction reduced trade volumes and depressed corporate investment. In the US economy, domestic demand remained firm against a backdrop of favorable employment and income conditions, while corporate activity, particularly in the automobile manufacturing industry, remained sluggish because of the global economic slowdown and prolonged trade friction.」

「During the second quarter-to-date period of the consolidated fiscal year, the global economy deteriorated as trade volumes declined worldwide amid an uncertain outlook for US-China trade friction. In the US economy, personal consumption remained solid and supported economic activity, but corporate activity, particularly in the automobile manufacturing industry, remained sluggish because of the global economic slowdown and the prolonged trade friction.」

「During the first quarter-to-date period of the consolidated fiscal year, signs of a global economic slowdown and uncertainty continued because of the impact of US-China trade friction.」

「Although global economic uncertainty has deepened because of intensifying trade friction stemming from the protectionist policies of the United States, China's economic slowdown and the United Kingdom's exit from the EU, improvement is expected in the second half of 2019, supported by substantial economic stimulus and accommodative policies in major countries.」

「During the third quarter-to-date period of the consolidated fiscal year, the global economy showed increasing signs of slowdown and uncertainty because of the impact of US-China trade friction.」

「In China, indicators measuring manufacturing activity deteriorated, suggesting an economic slowdown and the impact of US-China trade friction.」

「During the three-month cumulative period, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「During the nine-month cumulative period, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「During the first quarter-to-date period of the consolidated fiscal year, the global economy remained on a gradual recovery trend as production and exports increased, particularly in developed countries, although concerns remained about the impact of the US administration's policies and geopolitical risks in Europe.」

「Business expansion into these overseas markets inherently involves risks including: 1) unexpected changes in laws, regulations or tax systems; 2) adverse political or economic factors; 3) disruption caused by inadequate social infrastructure, such as transport delays or power outages; and 4) political upheaval, terrorism, war and other forms of social disruption.」

「Although the EU market, shaken by the United Kingdom's decision to leave, regained stability, exchange rates fluctuated significantly because of elections and other events in various countries.」

「In Europe, conditions remained solid, led by personal consumption, but uncertainty about the outlook increased because of the United Kingdom's Brexit issue. Meanwhile, Asia, including China, continued to slow.」

「Although economic recovery continued in Europe despite differences in growth among the major countries, the outlook remained uncertain because of the United Kingdom's Brexit issue.」

「Business expansion into these overseas markets inherently involves risks including: 1) unexpected changes in laws, regulations or tax systems; 2) adverse political or economic factors; 3) disruption caused by inadequate social infrastructure, such as transport delays or power outages; and 4) political upheaval, terrorism, war and other forms of social disruption.」