Risk of political and economic turmoil, currency depreciation and yen appreciation in export markets

「A major change in the operating environment, namely the attack on Iran by the United States and Israel that occurred at the end of February 2026, caused exports to the Middle East scheduled for March to fall short, making the fourth quarter difficult.」

「Meanwhile, among the overseas consolidated group companies, the Asian entities performed well year on year, while the US entity struggled year on year. Although performance varied by entity, the weakness in demand for vehicle servicing caused by US tariff policy had an impact.」

「The group operates in more than 80 countries worldwide and has broad operations in developing countries in Asia, Central and South America and elsewhere, where Japanese vehicles are widely owned. It is therefore affected by changes in the political and economic conditions of those countries and by foreign-exchange movements, as well as by the global economy and the economic conditions specific to particular overseas regions.」

「With foreign-exchange markets unstable, some regions have seen customers refrain from placing orders, and conditions remain uncertain in some markets. We will monitor and analyze market conditions in a timely manner and take the necessary measures.」

「The group operates in approximately 80 countries worldwide and has broad operations in developing countries in Asia, Central and South America and elsewhere, where Japanese vehicles are widely owned, and is therefore affected by changes in the political and economic conditions of those countries and by foreign-exchange movements. In addition, concerns over war and conflict are spreading globally, creating a risk of unforeseen events.」

「Current performance is strong, but some markets in Central and South America and Asia have seen a slowdown in new orders. We will increase the frequency of communication and overseas visits to understand and analyze conditions on the ground in a timely manner and take the necessary measures.」

「Orders during the quarter were also strong, partly due to the weaker yen, but some concerns have emerged, including an increase in restricted goods destined for Russia and excess inventories in certain Asian and Central and South American markets. We will continue to monitor trends in overseas markets.」

「Exports accounted for 33.9% of group sales in the fiscal year ended March 2022 and 36.1% in the fiscal year ended March 2023. Our primary customers are importers in developing countries, including Asia, Central and South America, and the Middle East, where Japanese vehicles are widely owned.」

「Import permits began to be issued in several Middle Eastern and African countries that had restricted imports because of foreign-currency shortages, and sales were consequently recognized during the cumulative consolidated third-quarter period.」

「Import restrictions in several Middle Eastern and African countries, introduced as measures to address insufficient foreign-exchange reserves, had some impact on sales.」

「Exports accounted for 30.1% of group sales in the fiscal year ended March 2019 and 32.5% in the fiscal year ended March 2020. Our primary customers are importers in developing countries, including Asia, Central and South America, and the Middle East, where Japanese vehicles are widely owned.」

「Exports by the Overseas Sales Headquarters to Russia and the Middle East declined, but exports to Asia and North America remained strong. As a result, sales were ¥9,830 million, up 3.4% year on year.」

「Exports by the Overseas Sales Headquarters to Russia and Central and South America declined, but exports to Asia and North America remained strong. As a result, sales were ¥6,598 million, up 3.7% year on year.」

「The Overseas Sales Headquarters reported strong sales in Europe and Russia and a slight increase in Asia, but sales were ¥12,590 million, down 7.8% year on year, as a result of the decline in special demand in the previous fiscal year and lower sales in North and Central and South America.」

「The Overseas Sales Headquarters performed well in Europe, Russia and Asia, but sales were ¥9,506 million, down 7.3% year on year, as a result of the decline in special demand in the previous fiscal year and lower sales in North and Central and South America.」

「The Overseas Sales Headquarters performed well in Europe, Russia and the Middle East, but was affected by lower sales in North and Central and South America and the decline in special demand in the previous fiscal year. As a result, sales were ¥6,365 million, down 3.6% year on year.」

「Exports accounted for 31.1% of group sales in the fiscal year ended March 2017 and 30.1% in the fiscal year ended March 2018. Our primary customers are importers in developing countries, including Asia, Central and South America, and the Middle East, where Japanese vehicles are widely owned. These regions have repeatedly experienced deteriorating market conditions due to political and economic turmoil and declines in local currencies, which have affected the performance of our Overseas Sales Headquarters.」

「Going forward, the economic recovery is expected to continue, supported by growth in global exports, increased construction investment and improvement in employment income. However, uncertainty remains regarding the Trump administration's policies, downside risks to the Chinese economy and future trends in currently strong IT demand, and developments overseas will require continued attention. The automotive aftermarket, our area of business, will also require continued monitoring of domestic and overseas political and economic developments.」

「Through 2018, the economy is expected to remain firm, supported by the strength of overseas economies, particularly those of the United States and China, and construction demand related to the Tokyo Olympics. However, uncertainty surrounding conditions in Japan and overseas remains, including a sharp rise in the yen triggered by escalating tensions over North Korea and the policies of President Trump. The automotive aftermarket, our area of business, is also expected to remain subject to domestic and overseas political and economic developments.」

「Looking ahead, the global economy is generally on a recovery trend, and Japan's economy is also expected to remain on a recovery trend, supported by firm domestic and external demand. However, uncertainty remains, particularly regarding political developments in Japan and overseas, including the Trump administration's policies in the United States and the decline in support for the Abe administration. The automotive aftermarket, our area of business, is also expected to remain subject to domestic and overseas political and economic developments. Although exports to the Middle East were sluggish, sales at the Overseas Sales Headquarters rose to ¥3,193 million, up 18.4% year on year, as a result of expanded sales of new products in other regions and a focus on new import projects.」

「Exports accounted for 36.2% of group sales in the fiscal year ended March 2016 and 31.1% in the fiscal year ended March 2017. Our primary customers are importers in developing countries, including Asia, Central and South America, and the Middle East, where Japanese vehicles are widely owned. These regions have repeatedly experienced deteriorating market conditions due to political and economic turmoil and declines in local currencies, which have affected the performance of our Overseas Sales Headquarters.」

「Although the US dollar exchange rate shifted toward yen depreciation from November, sales at the Overseas Sales Headquarters remained at ¥8,424 million, down 19.7% year on year.」

「The Overseas Sales Headquarters continued to be significantly affected by exchange rates reflecting further yen appreciation, following the first-quarter cumulative consolidated period. As a result, sales were ¥5,529 million, down 20.3% year on year.」

「The Overseas Sales Headquarters was affected by the continued instability in the Middle East and by exchange rates that had shifted toward further yen appreciation. As a result, sales were ¥2,697 million, down 19.2% year on year.」

「Exports accounted for 36.7% of group sales in the fiscal year ended March 2015 and 36.2% in the fiscal year ended March 2016. Our primary customers are importers in developing countries, including Asia, Central and South America, and the Middle East, where Japanese vehicles are widely owned. These regions have repeatedly experienced deteriorating market conditions due to political and economic turmoil and declines in local currencies, which have affected the performance of our Overseas Sales Headquarters.」