Regional Risks Associated with Global Business Operations

「Uncertainty continued due to rising geopolitical risks, including the situation in the Middle East, upward pressure on prices and developments in trade policy.」

「As measures to address these risks, the Group is developing a system under its regulations for managing affiliated companies to receive timely and appropriate reports on the operations of affiliated companies, including consolidated subsidiaries. Through the development and proper operation of its internal control systems, it regularly verifies and provides guidance on the development and operation of appropriate internal systems, including compliance systems, at affiliated companies, and is working to strengthen its governance structure. In addition, in response to tariff increases resulting from policy changes in the United States, the Group will seek to strengthen supply chain management and pass higher costs on to selling prices as appropriate.」

「During the interim consolidated accounting period, the global economy was generally on a moderate recovery trend, but remained uncertain because of geopolitical risks including the unstable situation in the Middle East and the negative impact of U.S. tariffs on the global economy.」

「The Group operates in Japan as well as throughout the world, including North America, Asia and Europe. Changes in the political and economic conditions in these regions, export-related regulations concerning Russia resulting from the situation in Ukraine, the impact of U.S. tariff policies, and various issues arising from changes in regulations, wage systems, labour-management relations, human rights and other factors could affect the Group's operating results and financial position.」

「During the interim consolidated accounting period, the global economy was generally on a moderate recovery trend, but remained unstable because of the continued monetary tightening resulting from accelerating inflation in Europe, the United States and other countries, geopolitical risks including the situations in Ukraine and the Middle East, and the slowdown of the Chinese economy.」

「In light of heightened geopolitical risks, this risk has been designated a "top-priority risk" from the current fiscal year.」

「During the six-month period ended this quarter, the outlook for the global economy remained uncertain because of continued concerns over an economic slowdown caused by the prolonged situation in Ukraine and interest rate increases to curb inflation, as well as persistently high raw material and energy prices. Meanwhile, semiconductor shortages eased in the automotive industry, and production by major automotive customers continued to recover.」

「During the three-month period ended this quarter, the outlook for the global economy remained uncertain because of continued concerns over an economic slowdown caused by the prolonged situation in Ukraine and interest rate increases to curb inflation, as well as soaring raw material and energy prices and sharp exchange-rate fluctuations. Meanwhile, in the automotive industry, semiconductor shortages eased and production by major automotive customers was recovering.」

「During the nine-month period ended this quarter, economic activity was increasingly normalised as the impact of COVID-19 eased, and developed economies including Japan, Europe and the United States showed signs of recovery. In the automotive industry, production gradually recovered in the United States and China despite the impact of shortages of semiconductors and components. However, the business environment remained uncertain because of higher raw material and energy prices resulting from the prolonged situation in Ukraine and the impact of global inflation.」

「During the six-month period ended this quarter, economic activity was increasingly normalised as the impact of COVID-19 eased, and developed economies including Japan, Europe and the United States showed signs of recovery. However, the business environment remained challenging and the outlook uncertain because of production cuts by major automotive customers due to shortages of semiconductors and components, higher raw material and energy prices resulting from the prolonged situation in Ukraine, global inflation, and the significant depreciation of the yen.」

「During the three-month period ended this quarter, economic activity was increasingly normalised as the impact of COVID-19 eased, and the economies of developed countries including Japan, Europe and the United States showed signs of recovery. However, the business environment remained challenging and the outlook uncertain because of semiconductor supply shortages in the automotive industry, production cuts by automakers due to the spread of COVID-19 and the Shanghai lockdown in China, as well as higher raw material and energy prices resulting from the prolonged situation in Ukraine and the sharp depreciation of the yen.」

「During the nine-month period ended this quarter, the global economy generally showed a moderate recovery, supported by solid consumption and government spending in developed countries in Europe and the United States, which were seeking to normalise economic activity. However, the outlook remained uncertain because of the resurgence of COVID-19 and the impact of production cuts by automakers resulting from the prolonged semiconductor shortage.」

「During the six-month period ended this quarter, economic activity was increasingly normalised, particularly in developed countries in Europe and the United States, where vaccinations were progressing, and the economy was gradually recovering. However, the outlook remained uncertain because of shortages of industrial products resulting from the resurgence of COVID-19, particularly in Southeast Asia, and the impact of production cuts by automakers caused by the continuing global shortage of semiconductor supplies.」

「During the three-month period ended this quarter, the global economy remained firm as economic activity recovered in Europe and the United States, where COVID-19 vaccinations were progressing, as well as in China, where economic expansion continued. However, the outlook remained uncertain because of concerns over a resurgence of COVID-19 and a global shortage of semiconductors.」

「The global economy subsequently began to recover as countries lifted their activity restrictions, but the pace of recovery slowed as the number of infections rose through December 2020.」

「During the nine-month period ended this quarter, the global economy showed signs of a slowdown in its recovery as the prolonged COVID-19 pandemic and resurgence of infections led to tighter activity restrictions in some regions. However, economic activity was increasingly normalised in countries including China, and signs of a bottoming-out were also seen in Asian countries and elsewhere.」

「During the six-month period of the fiscal year, demand in China began to recover gradually as economic activity resumed following the lifting of the state of emergency, but conditions became extremely difficult in other regions.」

「During the three-month period of the fiscal year, the global economy slowed sharply due to the spread of COVID-19, in addition to the global slowdown caused by US-China trade friction and other factors. In Japan, restrictions on going out were imposed for similar reasons, private consumption declined, production activity stagnated, and substantial production cuts continued in the automotive industry.」

「During the consolidated fiscal year, the global economy was affected by US-China trade friction, the UK's withdrawal from the EU and the emergence of geopolitical risks in the Middle East, among other factors. In the first half of the year, exports, particularly in China and Europe, were sluggish and production remained weak, further intensifying signs of an economic slowdown. In the second half, tensions between the United States and China eased somewhat and optimism about the outlook for the global economy spread, but after the start of 2020, conditions deteriorated rapidly as the spread of COVID-19 became a pressing issue.」

「During the nine-month period of the fiscal year, uncertainty increased in the global economy due to the impact of US-China trade friction, the UK's withdrawal from the EU and geopolitical risks in the Middle East, while signs of a slowdown intensified further.」

「During the six-month period of the fiscal year, the negative impact of escalating US-China trade friction expanded, and the economic slowdown spread globally.」

「During the three-month period of the fiscal year, the global economy became more uncertain due partly to the impact of US-China trade friction, and signs of economic stagnation and slowing growth spread across the global economy.」

「During the nine-month period of the fiscal year, concerns about the sustainability of the economic recovery increased due to concerns about a slowdown in the US economy and sharp declines in stock prices.」

「The global economy continued to recover moderately overall during the six-month period of the fiscal year, but concerns remained about the outlook due to the impact of the US-China trade war and monetary policy normalization in Europe and the United States.」

「Meanwhile, uncertainty in overseas economies increased due to the outlook for US trade policy, moves toward protectionism and geopolitical risks, and conditions developed amid growing uncertainty about the outlook.」

「Meanwhile, conditions continued in which attention was required regarding increasing uncertainty in overseas economies, including rising geopolitical risks and moves toward protectionism in the United States, the United Kingdom and elsewhere.」

「Meanwhile, uncertainty in overseas economies increased due to the UK's withdrawal from the EU, the United States' shift toward an America-first policy, and rising geopolitical risks. Conditions remained uncertain regarding the outlook.」

「Meanwhile, uncertainty in overseas economies increased due to the UK's withdrawal from the EU, moves toward an America-first policy under the new US administration, and rising geopolitical risks. Conditions remained uncertain regarding the outlook.」

「The business environment surrounding the Group is undergoing major changes. Geopolitical risks have increased globally, including the UK's withdrawal from the EU and the transition to a new administration in the United States」

「Meanwhile, currencies and stock prices fluctuated significantly due to the UK's withdrawal from the EU and the transition to a new administration in the United States, among other factors, and conditions remained uncertain.」

「Difficult economic conditions continued in emerging markets such as Russia and Southeast Asia, partly due to local currency depreciation, while uncertainty about the outlook increased further in connection with the UK's withdrawal from the EU.」

「If problems arise in these regions due to changes in political or economic conditions, the outbreak of conflicts, changes in regulations, wage systems, labor-management relations or other factors, the Group's business results and financial position may be affected.」