Political, Economic, Legal and Regulatory, and Labor Risks at Overseas Locations

「To support the overseas expansion of major customers of its core NT die cutter products, the Group established affiliates in the United States, Italy, China and Thailand and conducts business activities there. However, fluctuations in political and economic factors in these regions, changes in laws and regulations and tax systems, labor disputes such as strikes and demonstrations, and social unrest may affect the Group's operating results and financial condition.」

「Despite weak performance at overseas consolidated subsidiaries, operating profit increased 37.2% year on year to ¥397 million, due to an improved operating rate resulting from higher sales centered on重点 products.」

「Looking ahead, while expansion in corporate capital investment and personal consumption is expected in Japan, economic growth is expected to remain highly uncertain due to concerns about stagnation in the Chinese economy, geopolitical risks including the situation in the Middle East, and changes in the international situation resulting from the US presidential election and other factors.」

「During the cumulative third quarter of the consolidated fiscal year, social and economic activity continued to normalize as the COVID-19 pandemic subsided, and conditions followed a gradual recovery trend. However, the outlook remained uncertain due to rising geopolitical risks resulting from the prolonged situation in Ukraine and heightened tensions in the Middle East, as well as concerns about the effects of the slowdown in the Chinese economy.」

「Meanwhile, the outlook remained uncertain due to the slowdown in the Chinese economy, soaring energy and raw material prices resulting from the prolonged geopolitical situation, and global monetary tightening.」

「During the cumulative first quarter of the consolidated fiscal year, concerns arose over a slowing economic recovery due to the prolonged situation in Russia and Ukraine and tighter monetary policies in various countries. In Japan, as economic activity moved toward normalization following the easing of restrictions on activities related to COVID-19, the outlook remained uncertain due to exchange rate fluctuations, rising prices and other factors.」

「During the cumulative third quarter of the consolidated fiscal year, signs of an economic slowdown intensified due to monetary tightening in Europe and the United States to address inflation and soaring resource prices caused by the prolonged situation in Ukraine and Russia. In Japan, the outlook for the economy remained uncertain, partly because economic activity was disrupted by the renewed spread of COVID-19.」

「The outlook for the economy remained uncertain due to concerns about further rises in raw material and energy prices caused by the prolonged Russia-Ukraine situation, anxiety over financial markets resulting from sharp foreign exchange fluctuations, and the possible renewed spread of infectious diseases.」

「However, soaring costs for raw materials, energy and logistics due to the situation in Russia and Ukraine have accelerated, leaving the outlook unpredictable. In Japan, the outlook has also become more uncertain due to expanding procurement risks resulting from soaring resource and raw material prices and the rapid depreciation of the yen.」

「To address the above risks, the Group is taking measures tailored to overseas business risks, including gathering information locally, strengthening its sales structure, launching new products and securing earnings through cost-reduction initiatives.」

「During the cumulative first quarter of the consolidated fiscal year, economic activity in Japan and overseas was restricted by the global spread of COVID-19. Conditions remained uncertain as personal consumption weakened and companies restrained capital investment.」

「To support the overseas expansion of major customers of its core die cutter business, the Group established affiliates in the United States, Brazil, Italy, China and Thailand and conducts business activities there. However, fluctuations in political and economic factors in these regions, changes in laws and regulations and tax systems, labor disputes such as strikes and demonstrations, and social unrest may affect the performance and financial condition of the Group. In addition, rising raw material prices, deterioration in the overseas business environment and intensifying price competition with competitors at each overseas location may affect the Group's performance and financial position.」

「During the nine-month period ended at the third quarter, the economic environment remained uncertain. Although domestic capital investment showed signs of recovery, business sentiment, particularly in manufacturing, deteriorated amid the consumption tax increase, declining production and consumption due to the prolonged US-China trade friction, and slowing overseas capital investment.」

「During the cumulative second quarter of the consolidated fiscal year, the global economy remained uncertain due to the effects of US-China trade friction, including sluggish capital investment in the United States and deteriorating performance at Chinese companies. In Japan, conditions continued to require attention to downside risks to the economy, including deteriorating business sentiment, particularly in manufacturing, and declining exports due to worldwide protectionist trade policies.」

「During the cumulative first quarter of the consolidated fiscal year, the global economy remained uncertain due to the effects of US-China trade friction, the slowdown in the Chinese economy and other factors.」

「To address the maturation of the domestic market and customers' overseas expansion, the Group established subsidiaries and joint ventures in regions around the world and conducts business activities overseas. Fluctuations in political and economic factors in these regions, changes in laws and regulations and tax systems, labor disputes such as strikes and demonstrations, and social unrest may affect the performance and financial condition of the Group. In addition, rising raw material prices and deterioration in the overseas business environment at overseas affiliates may affect the Group's performance and financial position.」

「Overseas markets remained generally firm, particularly in the United States, but the outlook remained uncertain due to the increased downside risk to the global economy from US-China trade friction, China's economic slowdown and other factors.」

「Overseas markets remained generally firm, particularly in Europe and the United States, but the outlook remained uncertain due to the increased downside risk to the global economy from US-China trade friction and other factors.」

「Although conditions overseas, particularly in Europe and the United States, remained firm, uncertainty persisted due to concerns about US trade policy and continuing geopolitical risks.」

「To address the maturation of the domestic market and customers' overseas expansion, the Group established subsidiaries and joint ventures in China, Thailand, the United States and Italy and conducts business activities overseas. In addition, it planned to establish a subsidiary in Brazil in August 2018. Fluctuations in political and economic factors in these regions, changes in laws and regulations and tax systems, labor disputes such as strikes and demonstrations, and social unrest may affect the performance and financial condition of the Group.」

「During the cumulative third quarter of the consolidated fiscal year, overseas economic conditions remained uncertain due to rising geopolitical risks and other factors, although a gradual recovery trend continued overall.」

「During the cumulative first quarter of the consolidated fiscal year, overseas economies were generally recovering gradually, but uncertainty remained due to political developments, rising geopolitical risks and other factors.」

「To address the maturation of the domestic market and customers' overseas expansion, the Group established subsidiaries and joint ventures in China, Thailand, the United States and Italy and conducts business activities overseas. Accordingly, fluctuations in political and economic factors in these regions, changes in laws and regulations and tax systems, labor disputes such as strikes and demonstrations, and social unrest may affect the performance and financial condition of the Group.」

「During the cumulative third quarter of the consolidated fiscal year, economic conditions overseas remained uncertain. The US and European economies remained relatively resilient, while the Chinese economy showed signs of a slowdown.」

「During the first six months of the current consolidated fiscal year, there were no new business or other risks, and no significant changes to the business and other risks described in the securities report for the previous fiscal year.」

「Fluctuations in political and economic factors in these regions, changes in laws and regulations and tax systems, labor disputes such as strikes and demonstrations, and social unrest may affect the performance and financial condition of the Group.」