Impact of Fluctuations in Regional Economic Conditions on Business Performance and Financial Position

「Looking ahead, the business environment surrounding the Group is expected to remain unpredictable due to downward pressure on the global economy from US trade policy and other factors, rising energy prices resulting from heightened geopolitical risks such as the increasingly tense situation in the Middle East, soaring raw material prices and logistics disruptions caused by restrictions on transport routes.」

「During the interim consolidated accounting period, the US economy remained on a gradual recovery trend, with personal consumption and capital investment remaining solid. Although personal consumption in Europe showed signs of recovery, the economy generally remained sluggish as exports declined due in part to the effects of US tariff policy. In China, domestic demand was supported by economic policy, but the economy remained on a slowing trend due to declining exports to the United States and weakness in the real estate market. In Japan, the economy generally remained on a gradual recovery trend, while corporate production activity remained weak, particularly in the automobile industry.」

「Looking ahead, the business environment surrounding the Group is expected to remain unpredictable due to downward pressure on the global economy from various tariff measures, including reciprocal tariffs imposed by the United States, and heightened geopolitical risks related to the situations in the Middle East and Ukraine.」

「During the interim consolidated accounting period, the US economy remained on a recovery trend, with personal consumption and capital investment remaining solid. Although the European economy showed signs of recovery, the pace of economic recovery was extremely slow as weakness in manufacturing persisted. China's economy also remained on a slowing trend against a backdrop of the continuing real estate downturn and stagnant personal consumption. In Japan, the economy generally continued to show little sense of recovery, as manufacturing activity remained weak due in part to the impact of production and shipment suspensions by certain automobile manufacturers.」

「During the period under review, the US economy remained on a recovery trend, with personal consumption remaining solid. In Europe, signs of stagnation generally intensified due to the prolonged situation in Ukraine and the effects of monetary tightening. In China, the pace of recovery slowed due in part to adjustments in the real estate market. In Japan, corporate production activity stagnated due in part to the slowing global economy, but the economy remained on a gradual recovery trend, supported by resilient demand for capital investment and the recovery in inbound demand.」

「During the cumulative third quarter, the US economy remained on a recovery trend, with personal consumption remaining solid against a backdrop of relatively favorable employment conditions. In Europe, the economy generally remained sluggish due in part to the prolonged situation in Ukraine. In China, personal consumption temporarily recovered following the lifting of the zero-COVID policy, but the pace of recovery slowed due to declining demand for real estate. In Japan, exports stagnated as the global economy slowed, but the economy remained on a gradual recovery trend, supported by personal consumption and inbound demand.」

「During the cumulative second quarter, the US economy remained on a recovery trend, with personal consumption such as services consumption remaining solid against a backdrop of relatively favorable employment conditions. In Europe, by contrast, the economy generally remained sluggish, with personal consumption stagnating amid the prolonged situation in Ukraine. In China, personal consumption temporarily recovered following the lifting of the zero-COVID policy, but the pace of recovery subsequently slowed due to stagnant exports and declining demand for real estate. Japan's economy remained on a gradual recovery trend.」

「During the cumulative first quarter under review, the global economy showed the effects of soaring raw material and energy prices due to the prolonged situation in Ukraine and sharp foreign-exchange movements. However, the economy remained on a recovery trend as behavioral restrictions associated with COVID-19 measures were eased and economic activity moved toward normalization. In Japan, the economy remained resilient, supported by increases in personal consumption and inbound demand.」

「Looking ahead, China's economy is expected to recover on the back of domestic demand following the end of its zero-COVID policy. In Europe and the United States, however, concerns remain about an economic slowdown resulting from inflationary pressures and monetary tightening. The business environment surrounding the Group is therefore expected to remain uncertain.」

「During the cumulative third quarter under review, economic activity was returning to normal, mainly in the United States and Europe, while other regions also saw a gradual recovery. However, the economic environment remained uncertain due to automobile production cuts caused by semiconductor shortages, city lockdowns in China following the spread of COVID-19, soaring raw material and energy prices resulting from the prolonged situation in Ukraine, and sharp foreign-exchange movements caused by US policy rate hikes primarily aimed at curbing inflation.」

「In the United States and Europe, higher policy interest rates against a backdrop of rising prices restrained residential and capital investment, while production activity in China was temporarily restricted by lockdowns in major cities. In Japan, the yen depreciated sharply under the influence of US monetary policy, but the economy remained on a gradual recovery trend as personal consumption recovered with the easing of measures against the disease.」

「During the cumulative first quarter under review, although efforts to balance COVID-19 measures with economic activity progressed worldwide, logistics remained severely disrupted and resource prices rose further due to the prolonged situation in Ukraine and lockdowns in major Chinese cities. In Japan, social and economic activity was returning to normal as measures against the disease were eased, and the economy showed signs of recovery. However, pressure on prices from the rapid depreciation of the yen meant that uncertainty about the outlook continued.」

「Meanwhile, downside risks to the economy remain a concern, including persistently high resource prices resulting from Russia's invasion of Ukraine and the renewed spread of COVID-19 caused by new variants. The business environment surrounding the Group is therefore expected to remain unpredictable.」

「During the cumulative third quarter under review, as the effects of COVID-19 eased, the economies of China and the United States continued to perform solidly, supported in part by strong corporate capital investment. In Japan, exports were trending higher against a backdrop of expanding demand accompanying the global economic recovery, and the economy as a whole moved toward recovery. Meanwhile, uncertainty continued due to the spread of new COVID-19 variants, the effects of tight semiconductor supply and demand, soaring raw material prices and higher logistics costs.」

「During the cumulative second quarter under review, as the effects of COVID-19 eased, China's economy remained solid, supported in part by strong corporate capital investment. In the United States, economic recovery became more pronounced as economic activity gradually reopened with the progress of vaccinations and economic support measures took effect. In Japan, the economy remained on a gradual recovery trend, supported by strong exports as overseas economies recovered and increased capital investment, particularly in the manufacturing sector.」

「During the cumulative first quarter under review, the global economy moved overall toward recovery, supported by the wider availability of COVID-19 vaccinations and economic policies implemented by governments. China continued to perform solidly, supported by the recovery in personal consumption and increased exports. In Japan, the economy also moved toward recovery, with strong exports led by the manufacturing sector and a recovery in demand for capital investment.」

「In Japan and Europe, the economy generally remained on a gradual recovery trend, affected by restrictions on economic activity accompanying the renewed spread of the disease. In contrast, in China, which emerged from the effects of the disease at an early stage, the economy recovered rapidly as government economic stimulus measures drove an increase in capital investment.」

「During the cumulative third quarter under review, the global economy was severely affected within a short period by the spread of COVID-19 and the suspension of economic activity implemented to contain the disease, and a serious recession continued. China saw a solid recovery as it contained the spread of infection at an early stage and benefited from various economic stimulus measures. In other regions, including Japan, the United States and Europe, personal consumption and corporate performance deteriorated substantially and the economy slowed sharply. However, supported by accommodative monetary policy and measures to support automobile purchases in Europe, the economies of advanced countries have also been recovering from the trough in the first quarter.」

「During the six months ended the second quarter, China's economy was recovering, but overall economic conditions remained severe as the global spread of the novel coronavirus significantly constrained economic activity. In Japan, the economy remained sluggish as capital investment was restrained and employment conditions deteriorated amid declining corporate earnings.」

「During the three months ended the first quarter, the global economy deteriorated rapidly as the spread of the novel coronavirus caused economic activity to be suspended for a certain period. Japan, Europe, the United States, China and other regions faced severe conditions as lockdowns and declarations of a state of emergency caused personal consumption to stagnate and corporate earnings and employment conditions to deteriorate.」

「During the nine months ended the third quarter, the U.S. economy remained solid against a backdrop of favorable employment conditions, while the European economy slowed as corporate performance deteriorated, particularly in manufacturing. China's economy remained subject to uncertainty about the outlook because of the impact of U.S.-China trade friction. In Japan, although employment and income conditions improved, the economy overall remained flat as manufacturing activity declined because of sluggish export growth.」

「During the six months ended the second quarter, the U.S. economy remained solid, supported by firm personal consumption, while China's slowdown intensified as U.S.-China trade friction continued. The European economy also remained sluggish, with automobile production declining. In Japan, the economy remained weak, with corporate earnings and capital investment deteriorating in the manufacturing sector.」

「The Chinese economy remained on a slowing trend due to the impact of U.S.-China trade friction. In Japan, although a moderate recovery continued against a backdrop of improving employment and income conditions, signs of a stronger slowdown emerged as manufacturing activity weakened and exports, particularly to China, declined because of U.S.-China trade friction.」

「During the nine months ended the third quarter, the U.S. economy continued to expand steadily, driven by personal consumption and capital investment, while the European economy remained on a recovery track. In China, uncertainty about the economic outlook increased as U.S.-China trade friction intensified. In Japan, the economy remained on a moderate recovery track, with personal consumption and capital investment remaining firm as employment conditions improved.」

「During the six months ended the second quarter, the U.S. economy continued to expand steadily, driven by personal consumption and capital investment, while the European economy remained on a recovery track. Although signs of an economic slowdown were seen in China, the economy continued to grow stably overall. In Japan, the economy remained on a moderate recovery track, with personal consumption and capital investment remaining firm as employment conditions improved.」

「During the three months ended the first quarter, the global economy remained firm in the United States, despite uncertainty over the impact of trade policies on the global economy, supported by improving employment conditions and solid personal consumption, while Europe also recovered moderately. In China, although weakness was seen in some areas, including durable consumer goods and exports, the economy remained generally solid. In Japan, the economy was on a moderate recovery track as personal consumption recovered while capital investment continued to increase.」

「During the fiscal year, the global economy continued to expand moderately in the United States, with capital investment showing solid growth, while the European economy was generally on a recovery track. China maintained stable growth, supported by an increase in exports and other factors. In Japan, moderate economic recovery continued, with personal consumption picking up as employment conditions steadily improved.」

「During the nine months ended the third quarter, the global economy continued to expand moderately in the United States, supported by expanding personal consumption and improving employment conditions, while the European economy was generally on a recovery track. China continued to maintain a high growth rate, led by infrastructure investment and personal consumption. In Japan, the economy remained on a moderate recovery track due to improving corporate earnings and employment conditions and solid capital investment.」

「During the six months ended the second quarter, the global economy continued to expand moderately in the United States, supported by solid capital investment and personal consumption, while the European economy was generally on a recovery track. China continued to maintain a high growth rate, partly because of the effects of government measures to support the economy. In Japan, the economy remained on a moderate recovery track, with employment conditions continuing to improve and capital investment remaining firm.」

「During the three months ended the first quarter, the global economy remained firm in the United States due to expanding personal consumption and improving employment conditions. In Europe, economic and political uncertainty, including the issue of the United Kingdom's withdrawal from the EU, persisted. Meanwhile, signs of a recovery emerged in Asia, including China. In Japan, the economy remained on a moderate recovery track as corporate earnings and employment conditions improved.」

「During the nine months ended the third quarter, the global economy remained firm in the United States, led by personal consumption as employment conditions improved, and the economy was on a recovery track. However, uncertainty increased because of the United Kingdom's withdrawal from the EU and policies of the new U.S. administration. In China, although the economic slowdown continued, it remained moderate.」

「In China, the economic slowdown continued, while uncertainty in the European economy increased because of the United Kingdom's withdrawal from the EU and other factors. In Japan, although employment conditions continued to improve, the yen remained on an appreciating trend, resulting in weak movements in the earnings and production of companies, particularly manufacturers, and the economy generally remained sluggish.」

「Uncertainty about the outlook increased as a result of the issue of the United Kingdom's withdrawal from the EU and the economic slowdown in China and emerging markets.」

「The Group's principal business is the manufacture and sale of capacitors and other electronic components, and its business activities are conducted globally in Japan, the Americas, Europe, Asia and elsewhere. Accordingly, changes in economic conditions in the countries and regions where the Group's products are sold may affect the Group's operating results and financial position.」