Risk of lower customer-industry capital investment due to economic fluctuations

「Due to the impact of U.S. tariff policy and other factors, automotive companies took a cautious approach to capital investment, resulting in sluggish sales to customers related to automotive and automotive components.」

「In addition, capital investment by automotive companies remained sluggish amid uncertainty over the outlook, including the slowdown in global EV market growth and U.S. tariff policy, resulting in sales to customers related to automotive and automotive components falling substantially below the same period of the previous year.」

「各種デバイス向けの汎用メモリ需要は回復が緩やかであり、車載向けパワー半導体につきましても、サプライチェーン全体の在庫調整の影響を受け、半導体関連への販売は伸び悩む結果となりました。」

「Amid the impact of U.S. tariff policy and the global slowdown in the EV market, automotive companies in particular took a cautious approach to capital investment, and sales to customers related to automotive and automotive components fell below the same period of the previous year.」

「Capital investment related to semiconductors is on a recovery trend, driven by the spread of generative AI, DX-related investment and increased data center investment. Sales to customers related to semiconductor manufacturing equipment, a major customer sector, followed a recovery trend from the second half of the fiscal year. In the automotive industry, orders from automotive and automotive component-related customers remained strong, supported by the wider adoption of HVs and ADAS (advanced driver-assistance systems).」

「The recovery in demand for memory semiconductors has been delayed, and sales to some customers related to semiconductor manufacturing equipment showed little growth. Meanwhile, automobile production has been recovering, and orders from customers related to automobiles and automotive components remained strong.」

「The recovery in demand for memory semiconductors has recently been delayed, and sales to customers related to semiconductor manufacturing equipment showed little growth.」

「Sales to customers related to semiconductor manufacturing equipment showed little growth due to the delayed recovery in demand for memory semiconductors.」

「Prolonged weakness in demand for memory semiconductors and other products led to sluggish sales to customers related to semiconductor manufacturing equipment.」

「Prolonged weakness in demand for memory semiconductors and other products led to sluggish sales to customers that manufacture semiconductor and LCD manufacturing equipment.」

「Sales to automotive-related customers declined, partly due to the semiconductor shortage and higher raw-material prices, while capital investment related to electric vehicles continued to expand.」

「Sales to automotive-related customers declined, partly due to the semiconductor shortage and higher raw-material prices, while capital investment related to electric vehicles continued to expand.」

「Sales to automotive-related customers had been sluggish, partly due to the semiconductor shortage and higher raw-material costs, but have gradually begun to recover.」

「Meanwhile, although the recovery in sales to automotive-related customers has been slowing due to the semiconductor shortage and other factors,」

「Meanwhile, the shortage of semiconductors and difficulty procuring parts due to supply-chain disruptions tightened supply and demand for some products sold, resulting in longer delivery lead times to customers, among other effects. In addition, as the recovery in automobile production has been delayed, sales to customers related to automobiles and automotive components remained below the previous year’s level.」

「Meanwhile, the recovery in automobile production has been delayed by the semiconductor shortage and difficulty procuring parts, among other factors, and sales to customers related to automobiles and automotive components have continued to show little growth.」

「Capital investment by customers related to automobiles and automotive components slowed due to the semiconductor shortage and parts shortages caused by the suspension of overseas production during the COVID-19 pandemic, and sales remained below the previous year’s level.」

「In addition, the tight supply of semiconductors affected a range of manufacturing industries, led by the automotive industry, and became a drag on economic growth.」

「There was a global trend towards restraining capital investment. In China, production activities normalised relatively quickly, infrastructure investment and other investment were actively pursued, and the automotive and electronic-components markets recovered. In Japan, although the COVID-19 pandemic sharply expanded the stagnation in economic activity, the economy subsequently entered a gradual recovery trend as economic activity resumed, supported by government payments and measures to strengthen corporate liquidity.」

「During the nine-month period of the current consolidated fiscal year, the global economy saw a worldwide increase in efforts to restrain capital investment due to the impact of the COVID-19 pandemic. In China, production activities normalised relatively quickly, infrastructure investment and other investment were actively pursued, and the automotive market also recovered. In Japan, economic activity gradually resumed after the stagnation caused by COVID-19, and the economy was on a gradual recovery trend, supported by government payments and measures to strengthen corporate liquidity. However, personal consumption remained sluggish as infections resurged, and the impact of COVID-19 showed signs of becoming prolonged.」

「During the six-month period of the current consolidated fiscal year, the global economy remained in a difficult situation as the COVID-19 pandemic expanded, prompting a worldwide increase in efforts to restrain capital investment and causing a severe blow to the economy as a whole. In China, meanwhile, production activities normalised relatively quickly, infrastructure investment and other investment were actively pursued, and signs of recovery emerged in the automotive market. In Japan, economic activity gradually resumed following the lifting of the state of emergency declared in response to COVID-19, and the economy was on a gradual recovery trend, supported by government payments and measures to strengthen corporate liquidity. However, the recovery in personal consumption paused and corporate earnings deteriorated, resulting in a situation in which the effects of COVID-19 appeared likely to persist.」

「The semiconductor market has begun to recover, driven by the recovery in investment in data centres, among other factors, and sales to customers related to semiconductors and semiconductor and LCD manufacturing equipment have recovered. However, orders from customers related to automobiles and automotive components fell sharply, substantially affected by the COVID-19 pandemic.」

「Sales to customers related to semiconductors, semiconductor and LCD manufacturing equipment, and electronic components declined due to restrained capital investment by semiconductor-related companies and weaker smartphone demand.」

「Lower demand for memory semiconductors and weak smartphone sales continued to depress capital investment, particularly among customers related to semiconductors, semiconductor and LCD manufacturing equipment, and electronic components, resulting in Group-wide performance below the previous fiscal year.」

「During the six-month period of the current consolidated fiscal year, the global economy continued to slow as the impact of the Chinese economic slowdown, caused by prolonged US-China trade friction, expanded. The Japanese economy was also affected by the global slowdown, with sluggish exports and increasingly cautious capital investment, among other factors, and showed stronger signs of slowing.」

「Sales to customers related to semiconductor and LCD manufacturing equipment and smartphones fell sharply due to the effects of US-China trade friction and slower growth in the semiconductor market, resulting in Group-wide performance below the previous fiscal year.」

「Domestic sales were affected by slower growth in the semiconductor market, but capital investment by customers in the automotive and automotive-components, electronic-components and battery-related industries remained strong. Meanwhile, overseas sales faced difficulties from the second half of the period due to the impact of US-China trade friction and slower growth in the overall smartphone market, among other factors.」

「During the nine-month period of the current consolidated fiscal year, the global economy saw the previously strong US economy show increasing signs of slowing due to the protectionist trade policies of the Trump administration and the continuation of the Federal Reserve Board’s monetary tightening, among other factors. In Europe, difficult negotiations over the UK’s withdrawal from the EU have also made the outlook for external demand within the EU uncertain. In addition, the US-China trade friction cast a major shadow over the Chinese economy, creating a situation that could lead to a slowdown in the global economy as a whole. In Japan, the economy entered an inventory adjustment phase, while exports, which had previously been strong, showed signs of peaking as they reflected the slowdown in the global economy, leaving the economy in a lull.」

「During the six-month period ended in the second quarter, there were no material changes in the matters concerning the business and accounting conditions described in this quarterly securities report that could materially affect investors' decisions, nor in the business and other risks described in the securities report for the previous fiscal year.」

「During the first three months of the consolidated fiscal year, there were no material changes concerning matters described in the quarterly securities report that could materially affect investors' decisions, or to the business and other risks described in the securities report for the previous fiscal year.」

「During the cumulative third quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that could materially affect investors’ decisions, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」

「During the six-month period ended in the second quarter, there were no material changes in the matters concerning the business and accounting conditions described in this quarterly securities report that could materially affect investors' decisions, nor in the business and other risks described in the securities report for the previous fiscal year.」

「During the first three months of the consolidated fiscal year, there were no material changes concerning matters described in the quarterly securities report that could materially affect investors' decisions, or to the business and other risks described in the securities report for the previous fiscal year.」

「If economic changes in the future result in a sharp decline in capital investment by the relevant industry or the Company’s customers, the operating results and financial position of the Group may be materially affected.」

「However, the yen began to weaken around last autumn’s US presidential election, while the previously sluggish stock market also became more active, among other factors. This has raised expectations for a recovery in capital investment by domestic manufacturers, although the Japanese economy as a whole remains uncertain.」

「Meanwhile, although indicators for personal consumption, capital investment and inventory investment in Japan, based on economic statistics, were trending higher year on year, the deterioration in the export environment caused by the rapid appreciation of the yen and lacklustre personal consumption led to stagnation in capital investment by domestic automotive and consumer-electronics manufacturers. Overall, the Japanese economy remained in a “lull” phase.」

「During the first three months of the consolidated fiscal year, there were no material changes concerning matters described in the quarterly securities report that could materially affect investors' decisions, or to the business and other risks described in the securities report for the previous fiscal year.」

「If economic changes in the future result in a sharp decline in capital investment by the relevant industry or the Company’s customers, the operating results and financial position of the Group may be materially affected.」