Economic, Political and Institutional Risks in Countries of Overseas Operations

「The global economy remained uncertain due to changes in the trade environment, including U.S. tariff policies, a slowdown in China's economic recovery, stagnant European economies and continuing geopolitical risks.」

「North American sales account for a high 55.5% of consolidated sales, and economic trends and demand fluctuations in the region's automotive market, as well as developments in US trade policy, may significantly affect the group's operating performance and other results.」

「Against this backdrop, the automotive industry in which the group operates requires close attention to developments in US trade policy because of concerns over the impact of US tariffs and tighter controls on China's rare-earth exports.」

「The group's overseas sales ratio is high at 76.1% of consolidated sales, reflecting its active overseas expansion to date and the shift of customers' production overseas. North American sales account for a high 53.4% of consolidated sales, and economic trends and demand fluctuations in the region's automotive market may significantly affect the group's operating performance and other results.」

「Against this backdrop, the automotive industry in which the group operates has seen sales trend toward recovery as automotive production resumed after being halted because of certification irregularities. However, the outlook remains uncertain, requiring close attention to the impact on consumer purchasing power of inflation trends, monetary policies in various countries, and higher vehicle prices resulting from the shift to EVs.」

「In the medium term, the global economy is expected to recover moderately in Europe and the United States as policy rates continue to be lowered. In China, however, growth is expected to remain weak and the outlook uncertain because of the prolonged slump in the real estate market and the government's reluctance to implement large-scale stimulus measures.」

「The global economy has become increasingly stagnant amid rising interest rates and high inflation. Europe and the United States face concerns over recession resulting from monetary tightening, while China's economy is expected to slow because of weak investment appetite and the prolonged adjustment in the real estate market, leaving the outlook uncertain.」

「The group's overseas sales ratio is high at 74.1% of consolidated sales, reflecting its active overseas expansion to date and the shift of customers' production overseas. North American sales account for a high 46.8% of consolidated sales, and economic trends and demand fluctuations in the region's automotive market may significantly affect the group's operating performance and other results.」

「During the cumulative third quarter of the fiscal year, the pace of global economic recovery slowed. Although US GDP growth turned positive, consumption remained sluggish, while China remained at low growth because of the impact of its zero-COVID policy and other factors. In Europe, further economic slowdown was expected because of the effects of inflation and monetary tightening resulting from the Ukraine crisis and other factors, and uncertainty continued.」

「During the cumulative second quarter of the fiscal year, the pace of global economic recovery slowed, with domestic demand in the United States generally weak and resulting in negative growth, while China posted low growth because of the impact of the Shanghai lockdown. The outlook remained uncertain, as further economic slowdown was expected in all regions because of the effects of inflation and monetary tightening resulting from the Ukraine crisis and other factors.」

「The global economy has remained at a low growth rate as the pace of economic recovery has slowed. All regions are expected to experience slower economic growth because of rising inflationary pressures caused by the Ukraine crisis and other factors, as well as the effects of monetary tightening.」

「During the fiscal year, the global economy remained uncertain, although the impact of COVID-19 eased and the situation in Ukraine became a downside risk.」

「During the cumulative third quarter of the fiscal year, restrictions on activity were eased as COVID-19 vaccinations became more widespread, and economic activity began to recover despite differences among countries and regions. However, the outlook remained uncertain amid concerns over a renewed spread of infections, particularly involving the new Omicron variant.」

「During the cumulative second quarter of the fiscal year, economic activity gradually resumed, mainly in developed countries where COVID-19 vaccinations were progressing, and the economy was on a recovery path. However, the outlook remained uncertain, with concerns that infections could spread again because of variants in some countries and regions.」

「The global economy showed signs of recovery as economic activity gradually resumed, mainly in Europe and the United States, as COVID-19 vaccinations progressed. However, the outlook for the global economy remained uncertain, with concerns that infections could spread again in some countries and regions.」

「North American sales account for a high 35% of consolidated sales, and economic trends and demand fluctuations in the region's automotive market may significantly affect the group's operating performance and other results.」

「During the cumulative third quarter of the fiscal year, the global economy continued to be affected by the spread of COVID-19. Although vaccination had begun ahead of other regions overseas, the end of the pandemic remained unforeseeable, with variant viruses identified in some areas.」

「During the cumulative second quarter of the fiscal year, the global economy continued to be affected by the worldwide spread of COVID-19. Although some restrictions were being eased, recovery remained gradual amid fears of a second wave.」

「In the global economy, the United States imposed restrictions on business activity and movement because of the spread of COVID-19, and the impact of a sharp decline in consumer spending expanded, causing uncertainty over the outlook to increase significantly. In China, economic activity that had been halted since mid-February because of COVID-19 began to resume, but the pace of recovery remained slow. In Europe, COVID-19 infections spread explosively from March, so-called lockdowns were imposed in various areas and economic activity came to a halt.」

「During the cumulative third quarter of the fiscal year, the global economy remained uncertain, with some easing in circumstances, including partial agreement in US-China trade negotiations and progress on the United Kingdom's departure from the EU, but also a sharp rise in crude oil prices resulting from escalating tensions between the United States and Iran and increasing instability in the Middle East.」

「The global economy remained uncertain amid intensifying US-China trade friction and rising geopolitical risks. In the United States, consumer spending remained strong on favourable employment and income conditions, but exports in the manufacturing sector showed signs of stagnation due to US-China trade friction and other factors. In China, economic growth continued to slow as external demand stagnated owing to prolonged US-China trade friction, and other emerging Asian economies were also affected, resulting in slower growth. In Europe, growth slowed as the United Kingdom's departure from the EU remained a concern.」

「The global economy remained on a recovery path in the United States, supported by consumer spending, which remained firm on favourable employment and income conditions, and steady growth in corporate capital investment, despite uncertainty over the outlook for protectionist trade policies. In China, growth slowed somewhat as consumer spending and trade stagnated amid prolonged US-China trade friction. In Europe, the euro area maintained moderate growth, supported by consumer spending. In the United Kingdom, growth in both consumer spending and the corporate sector slowed amid uncertainty over the outlook for foreign policy.」

「During the nine months ended December 31, the global economy showed unstable movements. In the United States, fiscal spending boosted the economy and tax cuts supported solid personal consumption and capital investment, but concerns remained about the impact of U.S.-China trade friction and other factors on the global economy, while the Federal Reserve adopted a cautious stance on raising interest rates. In China, capital investment slowed and personal consumption, particularly automobile sales, weakened amid trade friction with the United States, and the economy tended to slow. In Europe, the economy remained broadly flat due to the United Kingdom's withdrawal from the EU and political turmoil in Europe.」

「The global economy remained generally firm. In the United States, while tensions between the United States and China were escalating due to protectionist trade policies, manufacturing remained strong and personal consumption grew, supported by employment and income conditions. In China, personal consumption remained firm, but the economy tended to slow as exports weakened due to the impact of trade friction. In Europe, growth in the euro area slowed, particularly in manufacturing. In the United Kingdom, growth remained flat amid political uncertainty.」

「China maintained growth as private-sector and manufacturing investment remained firm. In Europe, growth in the euro area slowed due to lower exports and other factors, but the expansion continued. In the United Kingdom, personal consumption drove growth, although overall growth slowed.」

「In China, the economy slowed moderately amid solid growth in personal consumption and exports, partly due to a slowdown in fixed-asset investment. In Europe, the euro area continued to expand gradually, supported by improvements in employment, while the United Kingdom's economy slowed as domestic demand, its main driver, weakened.」

「The Chinese market continues to see sales growth. In the European market, unit sales have grown steadily in the euro area, while the United Kingdom has seen a decline.」

「In China, the economy remained firm as investment and consumption increased. In Europe, despite concerns about political risks associated with elections in various countries, the economy maintained a solid recovery trend.」

「The group has actively expanded overseas to date and plans to add overseas production facilities as it diversifies its customer base. Unexpected political or economic instability, changes in laws or tax systems, terrorism, war, and other forms of social unrest in countries hosting overseas production facilities could disrupt operations and affect the group's operating results and other factors.」

「In China, growth in production and consumption slowed modestly, but investment, which had been slowing, showed slight improvement, and parts of the economy began to recover. In Europe, uncertainty related to the United Kingdom's withdrawal from the EU remained, but personal consumption was recovering and the economy was gradually recovering.」

「In China, economic growth continued to slow, with modest declines in the growth of production and consumption and a further slowdown in investment as the effects of policy measures faded. In Europe, the economy was recovering gradually, but uncertainty about the outlook continued, partly due to concerns about the impact of the United Kingdom's withdrawal from the EU.」

「In China, consumption and exports showed signs of recovery, but the environment surrounding consumption, including employment and income, deteriorated, and the economy continued to slow. In Europe, political and economic uncertainty increased following the decision for the United Kingdom to leave the EU, raising concerns about the impact on the economic recovery.」

「Overseas sales accounted for 74.8% of the group's consolidated net sales in the fiscal year, up from 72.6% in the previous fiscal year. As the overseas sales ratio is expected to continue rising, the group's operating results and other factors may be affected by the exchange rates used to translate overseas operations for consolidated reporting.」