Combined risks from competition, economic conditions, supply constraints, regulation, disasters and other factors

「In fiscal 2025, in addition to these previously existing sources of uncertainty, weak demand in the South Korean market and a delayed recovery in Japan's automotive-related market overlapped, making the operating environment surrounding the group increasingly challenging.」

「During the interim consolidated accounting period, Japan's economy was on a gradual recovery trend because of improvements in employment and income conditions and the effects of various policies. However, downside risks to the economy from the impact of US tariff policy were increasing. In addition, the continued rise in prices posed a risk of weighing on Japan's economy through its impact on personal consumption, including a deterioration in consumer sentiment. The global economy was also recovering at a slower pace, with some regions, including China, showing signs of stagnation. There were also signs of a backlash from front-loaded demand accompanying tariff increases, and attention was required to downside risks to the economy arising from the effects of future tariff policy and other US policy developments.」

「Looking ahead, the operating environment is expected to remain challenging amid an unstable international situation in which trade and investment between countries are contracting against a backdrop of rising global geopolitical risks and concerns over the economic outlook. Increases in energy and raw material prices and transportation costs are anticipated, as are the effects of US tariff policy.」

「During the interim consolidated accounting period, there were no new business or other risks, nor any material changes to the business or other risks described in the annual securities report for the previous fiscal year.」

「Although there were signs of improvement in difficulties procuring components such as semiconductors, the outlook remained uncertain because of an economic slowdown caused by persistently high prices resulting from soaring resource and energy prices and policy rate hikes to contain inflation, as well as the prolonged situation in Ukraine and rising tensions in the Middle East.」

「During the six-month period ended in the second quarter, Japan's economy moved toward normalization of social and economic activity following the reclassification of COVID-19 as a Category V disease. However, amid an unstable international situation, the situation remained uncertain because of price increases resulting from the depreciation of the yen and persistently high resource and energy prices. The global economy also remained uncertain. Although there were signs of easing in difficulties procuring components such as semiconductors, the prolonged situation in Ukraine, price increases caused by soaring resource and energy prices, and policy rate hikes to contain inflation continued. In China, the economy slowed following the strengthening of financial regulations related to real estate.」

「With restrictions on movement in Japan and overseas travel restrictions largely lifted, social and economic activity moved toward normalization, and employment and income conditions also improved. As a result, the economy was on a gradual recovery trend, but the situation remained uncertain because of the sharp depreciation of the yen and persistently high resource and energy prices. The global economy also remained uncertain, as price increases caused by soaring resource and energy prices, policy rate hikes to contain inflation, and the prolonged situation in Ukraine continued to cloud the outlook.」

「The global economy also saw a stalled recovery. While efforts to balance COVID-19 measures with economic activity continued, policy rate increases accompanying accelerating inflation in Europe and the United States, difficulties securing energy supplies due to the prolonged situation in Ukraine, lockdowns in major Chinese cities under the zero-COVID policy, and continued logistics disruptions affecting raw materials such as semiconductors remained in place.」

「During the six-month period ended in the second quarter, Japan's economy faced concerns that the simultaneous rapid depreciation of the yen and soaring resource and energy prices, in addition to the sharp increase in infections caused by the seventh wave of COVID-19, would adversely affect economic and consumer activity, which had been on a recovery trend. The global economy also remained uncertain. Policy rate increases led by the United States to contain inflation slowed the pace of the global economic recovery, while disruptions to the logistics of raw materials such as semiconductors and difficulties securing energy supplies due to the prolonged situation in Ukraine continued to have an impact.」

「During the three-month period ended in the first quarter, Japan's economy became increasingly uncertain despite a recovery in corporate capital investment and personal consumption, amid rising resource and energy prices, continued supply-demand tightness in components including semiconductors, and a sharp depreciation of the yen. The global economy also remained uncertain. The effects of the prolonged situation in Ukraine and China's restrictions on economic activity persisted, while concerns grew over an economic slowdown caused by accelerating inflation in the United States and difficulties securing energy supplies in Europe.」

「At the group's and its business partners' production sites, operating rates declined because of production stoppages caused by lockdowns, problems with supply systems and declining orders. In addition, the business environment became challenging, with material prices and transportation costs soaring because of semiconductor shortages and insufficient supply relative to demand for crude oil.」

「During the nine-month period ended in the third quarter, Japan's economy saw increased movement of people as vaccination rates rose and the state of emergency and priority preventive measures were lifted. The effects of various policies and improvements in overseas economies also raised expectations for the normalization of social and economic activity. However, continued caution was necessary because of downside risks arising from supply constraints and raw material price trends, as well as concerns over a resurgence of infections caused by COVID-19 variants. The global economy was also extremely uncertain. China, Europe and the United States remained on a gradual recovery trend, but concerns over inflation caused by rising resource prices and signs of stagflation had recently emerged. In addition, geopolitical risks, including the US-China and US-Russia tensions, were becoming more serious.」

「During the six-month period ended in the second quarter, Japan's economy remained in a difficult situation, as repeated declarations of a state of emergency in response to the resurgence of COVID-19 restricted social and economic activity. Even in manufacturing, where performance had been improving, adverse effects became apparent, including stagnating production due to shortages of semiconductors and other supplies. The global economy was also extremely uncertain. China, Europe and the United States were on a gradual recovery trend, but concerns remained over a resurgence of COVID-19, a global shortage of components including semiconductors, and the prolonged US-China tensions.」

「Although China, the United States and Europe were on a moderate recovery trend, the global economy remained extremely uncertain due to concerns over a resurgence of COVID-19, a worldwide semiconductor shortage and the prolonged U.S.-China dispute.」

「The environment surrounding our group was significantly affected during the current consolidated fiscal year by the contraction of economic activity and changes in supply chains in Japan and overseas economies, as the end of COVID-19 remained unforeseeable. ... Concerns over delays in the rollout of COVID-19 vaccines, developments in U.S.-China relations and geopolitical tensions remained, leaving the outlook uncertain.」

「The global economy saw a gradual recovery in China, while some vaccines were approved and administered in the United States and Europe and economic activity began to resume in stages. However, the threat from a resurgence of COVID-19 continued, and conditions were expected to remain uncertain due to the impact of U.S.-China trade friction and policy changes by the new U.S. president.」

「During the cumulative period of the second quarter of the current consolidated fiscal year, the domestic economy remained challenging as the impact of COVID-19 persisted. Although consumer spending and exports showed signs of recovery following the lifting of the state of emergency, corporate earnings declined and capital investment remained sluggish. In the global economy, China's economy showed signs of recovery, while the United States and European countries began a phased resumption of economic activity, including lifting lockdowns. However, the threat of COVID-19 continued. Other sources of concern included U.S.-China tensions arising from trade friction and the Hong Kong issue, and political and economic stagnation ahead of the U.S. presidential election, leaving conditions extremely uncertain.」

「During the cumulative period of the first quarter of the current consolidated fiscal year, the domestic economy became extremely challenging as the global spread of COVID-19 caused economic conditions to deteriorate sharply worldwide. In Japan, the government's state of emergency declared in April restricted personal life and corporate activities, causing domestic and overseas demand to fall sharply.」

「During the cumulative period of the first 3 quarters of the current consolidated fiscal year, the domestic economy remained stagnant. Although employment and income conditions continued to improve, consumer spending declined due to the impact of natural disasters and the reaction following the rush in demand before the consumption tax increase, while manufacturing earnings deteriorated due to weak exports. The global economy continued to grow in the United States, supported by solid consumer spending, while China's economy slowed due to the impact of U.S.-China trade friction. Overall conditions remained uncertain, including the potential impact of the UK's departure from the EU and developments in the Middle East.」

「The domestic economy had favorable employment and income conditions, but concerns remained over the impact of natural disasters. Manufacturing activity remained sluggish and economic conditions continued to show a strong sense of stagnation against a backdrop of weak exports. The global economy continued to grow in the United States, supported by solid consumer spending, while China's economy slowed due to the impact of U.S.-China trade friction. The overall outlook remained uncertain, including the potential impact of the UK's departure from the EU.」

「The global economy continued to recover in the United States, supported by increased consumer spending and capital investment, while in China concerns over an economic slowdown intensified due to the impact of U.S.-China trade friction. Overall, conditions remained uncertain.」

「The environment surrounding our group has become increasingly uncertain due to concerns over economic conditions, including U.S. trade policy, a slowdown in the Chinese economy and instability in Europe, and growth is expected to slow.」

「The global economy continued to recover in the United States, supported by expanding consumer spending and increased capital investment, while in China there were signs of uncertainty over the economic outlook as growth in consumption and exports slowed.」

「The global economy continued to recover in the United States, supported by expanding consumer spending and increased capital investment, while China's economy continued to recover, supported by solid consumer spending and exports. However, continued attention is required regarding uncertainty in overseas economies and the development of trade issues spreading worldwide.」

「The global economy continued to recover in the United States, supported by expanding consumer spending and increased capital investment, while China's economy continued to recover, supported by solid consumer spending and exports. However, continued attention is required regarding uncertainty in overseas economies and the development of trade issues spreading worldwide.」

「Although concerns remain over the impact of fluctuations in the global economy and geopolitical risks arising from U.S. policy and developments in China, moderate overall growth is expected. However, the business environment is expected to remain uncertain due to intensifying competition, changes in market structure, market conditions affecting raw material procurement and foreign exchange fluctuations.」

「The global economy continued to recover in the United States, supported by expanding consumer spending and increased capital investment, while China's economy continued to recover, supported by solid consumer spending and exports. However, geopolitical risks, including the situations in North Korea and the Middle East, and political developments in the United States and Europe continued to require attention.」

「The global economy continued to recover in the United States, supported by improvements in consumer spending, employment and income conditions, while China's economy continued to recover, supported by solid consumer spending and exports. However, geopolitical risks, including the situations in North Korea and the Middle East, and political developments in the United States and Europe continued to require attention.」

「The global economy continued to recover in the United States, supported by growth in consumer spending and capital investment, while China's economy continued to recover due to the effects of fiscal policy. However, geopolitical risks, including the situations in North Korea and the Middle East, and political developments in the United States and Europe continued to require attention.」

「The environment surrounding our group is expected to become increasingly challenging, with significant fluctuations in foreign exchange rates and share prices due to policies of the new U.S. president and other factors, uncertainty over the outlook for the European economy, concerns about a slowdown in the Chinese economy, geopolitical conditions in the Middle East and East Asia, and intensifying competition in Japan and overseas.」

「The global economy continued to recover in the United States, centered on solid consumer spending, while emerging-market and resource-rich economies also showed signs of recovery. However, many issues warrant attention, including the economic policies of the new U.S. president and developments in European and Asian countries, and the outlook for foreign exchange markets remains uncertain. Concerns over downside risks to the economy therefore continue.」

「The domestic economy remained on a moderate recovery trend, but concerns arose over increased downside risks to the economy due to the UK's EU withdrawal issue and volatility in financial and capital markets. In addition, domestic production of four-wheel vehicles, which affects our business, was somewhat weak due to the Kumamoto earthquake, the fuel economy data falsification issue and other factors.」

「The domestic economy had remained on a moderate recovery trend, but the yen strengthened and stock prices declined amid growing uncertainty in the global economy, including the UK's decision to leave the EU. In addition, the Kumamoto earthquake occurred in Japan, creating concerns about increased downside risks to the economy.」

「However, in conducting our business, competition with other companies in the same industry, economic conditions worldwide and in the regions where we sell our products, the insolvency of business partners, rising raw material prices, financial and securities markets, regulations imposed by governments in various countries, natural disasters, war, terrorism, infectious diseases and other force majeure events, and securing personnel in Japan and overseas may, depending on circumstances, materially affect the performance and financial condition of our group.」