Risks from Emerging-Market Slowdown, Yen Appreciation and Falling Resource Prices

「During the interim consolidated accounting period, the global economy continued to recover, but at a slower pace. In addition to downside risks from trade policies, including U.S. tariff increases, it was necessary to closely monitor the impact of volatility in financial and capital markets and other factors.」

「Geopolitical tensions continue to pose risks to the global macroeconomic environment. In addition to uncertainty stemming from the war in Ukraine, the situation in the Middle East and trade friction among major economies, including the United States and China, developments concerning additional tariffs in the United States have recently also created uncertainty, significantly affecting global trade and supply chains.」

「During the interim consolidated fiscal period, the global economy continued to recover, but downside risks to overseas economies require close monitoring, including the continued high level of interest rates in Europe and the United States, the ongoing stagnation of China's property market and developments in the Middle East. In Japan, economic conditions were gradually recovering, but the economy was affected by exchange-rate fluctuations, and the outlook for the global economy requires close monitoring.」

「The global macroeconomic environment has been significantly affected by the war in Ukraine and the situation in the Middle East. Energy prices have risen and remain elevated worldwide.」

「During the cumulative third-quarter period, the global economy continued to recover, but the effects of global monetary tightening and the prolonged stagnation of China's property market posed downside risks to the economy, and the impact of developments in the Middle East also requires close monitoring. In addition, the war in Ukraine and global inflation resulted in impacts from rising raw-material prices and supply-chain constraints. In Japan, economic conditions were gradually recovering, but the country was also affected by exchange-rate fluctuations, rising raw-material prices and supply-chain constraints, as was the global economy, while the impact of the 2024 Noto Peninsula Earthquake also requires close monitoring.」

「During the cumulative second-quarter period, the global economy continued to recover, but the effects of global monetary tightening and the prolonged stagnation of China's property market posed downside risks to the economy. The impact of developments in the Middle East also requires close monitoring.」

「During the cumulative first-quarter period, the global economy continued to recover, but global monetary tightening posed a downside risk to the economy. In addition, the war in Ukraine and global inflation resulted in impacts from rising raw-material prices, supply-chain constraints and component shortages.」

「During the consolidated fiscal year, the global economy continued to recover as economic activity resumed from the severe conditions caused by the COVID-19 pandemic. However, global monetary tightening posed a downside risk to the economy. In addition, the spread of COVID-19 in China, the war in Ukraine and global inflation resulted in impacts from rising raw-material prices, supply-chain constraints, and shortages of semiconductors and other components.」

「During the cumulative third-quarter period, the global economy continued to recover as economic activity resumed from the severe conditions caused by the COVID-19 pandemic. However, global monetary tightening posed a downside risk to the economy. In addition, the spread of COVID-19 in China, the war in Ukraine and accelerating global inflation resulted in impacts from rising raw-material prices, supply-chain constraints, and shortages of semiconductors and other components.」

「In Japan, economic conditions were gradually recovering as economic activity resumed, but the country was also affected by the rapid depreciation of the yen, rising raw-material prices, supply-chain constraints, and shortages of semiconductors and other components, as was the global economy.」

「The yen depreciated against the US dollar, euro and Chinese yuan compared with the same period of the previous year. The average exchange rates during the period were ¥129.57 per US dollar (¥109.49 in the same period of the previous year), ¥138.12 per euro (¥131.96) and ¥19.58 per yuan (¥16.96), resulting in a ¥21.826 billion year-on-year increase in revenue and a ¥8.320 billion year-on-year increase in operating profit.」

「The company has also been affected by the impact on supply chains in certain countries and regions associated with the spread of COVID-19, the global semiconductor shortage associated with the spread of COVID-19 and US-China trade friction, the war in Ukraine and soaring resource prices.」

「The company has also been affected by a global semiconductor shortage associated with the spread of COVID-19 and US-China trade friction, as well as by soaring resource prices.」

「The yen depreciated against the US dollar, euro and Chinese yuan compared with the same period of the previous year. The average exchange rates during the period were ¥109.8 per US dollar (¥106.92 in the same period of the previous year), ¥130.9 per euro (¥121.3) and ¥16.99 per yuan (¥15,26), resulting in a ¥20.9 billion year-on-year increase in revenue and a ¥4.127 billion year-on-year increase in operating profit.」

「The yen depreciated against the US dollar, euro and Chinese yuan compared with the same period of the previous year. The average exchange rates during the period were ¥109.49 per US dollar (¥107.62 in the same period of the previous year), ¥131.96 per euro (¥118.48) and ¥16.96 per yuan (¥15.17), resulting in a ¥10.802 billion year-on-year increase in revenue and a ¥429 million year-on-year increase in operating profit.」

「The average exchange rates during the period were ¥106.11 per US dollar (¥108.67 in the same period of the previous year), ¥122.38 per euro (¥121.05) and ¥15.44 per yuan (¥15.60), resulting in a ¥8.425 billion year-on-year reduction in revenue and a ¥5.639 billion year-on-year reduction in operating profit.」

「The yen appreciated against the US dollar, euro and Chinese yuan compared with the same period of the previous year. The average exchange rates during the period were ¥106.92 per US dollar (¥108.63 in the same period of the previous year), ¥121.30 per euro (¥121.42) and ¥15.26 per yuan (¥15.68), resulting in a ¥5.457 billion year-on-year reduction in revenue and a ¥4.7 billion year-on-year reduction in operating profit.」

「The yen appreciated against the US dollar, euro and Chinese yuan compared with the same period of the previous year. The average exchange rates during the period were ¥107.62 per US dollar (¥109.90 in the same period of the previous year), ¥118.48 per euro (¥123.49) and ¥15.17 per yuan (¥16.07), resulting in a ¥5.381 billion year-on-year reduction in revenue and a ¥1.732 billion year-on-year reduction in operating profit.」

「The yen appreciated against the US dollar, euro and Chinese yuan compared with the previous fiscal year. The average exchange rates during the period were ¥108.74 per US dollar (¥110.91 in the previous fiscal year), ¥120.82 per euro (¥128.41) and ¥15.60 per yuan (¥16.54), resulting in a ¥26.659 billion year-on-year reduction in revenue and a ¥10.450 billion year-on-year reduction in operating profit.」

「The yen appreciated against the US dollar, euro and Chinese yuan compared with the same period of the previous year. The average exchange rates during the period were ¥108.67 per US dollar (¥111.14 in the same period of the previous year), ¥121.05 per euro (¥129.49) and ¥15.60 per yuan (¥16.61), resulting in a ¥21.940 billion year-on-year reduction in revenue and a ¥8.318 billion year-on-year reduction in operating profit.」

「The yen appreciated against the US dollar, euro and Chinese yuan compared with the same period of the previous year. The average exchange rates during the period were ¥108.63 per US dollar (¥110.26 in the same period of the previous year), ¥121.42 per euro (¥129.85) and ¥15.68 per yuan (¥16.75), resulting in a ¥13.401 billion year-on-year reduction in revenue and a ¥4.322 billion year-on-year reduction in operating profit.」

「During the cumulative first-quarter period, the global economy was generally recovering moderately, but uncertainty persisted owing to the US-China trade dispute and developments in the United Kingdom concerning its withdrawal from the EU.」

「The global economy is expected to slow overall, and downside economic risks remain owing to the prolonged US-China trade dispute, China's economic slowdown and volatility in the financial and capital markets.」

「The average exchange rates during the period were ¥111.14 per US dollar (¥111.70 in the same period of the previous year) and ¥129.49 per euro (¥128.53), resulting in a ¥2.565 billion year-on-year reduction in revenue and a ¥475 million year-on-year reduction in operating profit.」

「The yen appreciated against the US dollar compared with the same period of the previous year, while it depreciated against the euro. The average exchange rates during the period were ¥110.26 per US dollar (¥111.06 in the same period of the previous year) and ¥129.85 per euro (¥126.29), resulting in a ¥887 million year-on-year increase in revenue and a ¥247 million year-on-year increase in operating profit.」

「The average exchange rates during the period were ¥109.07 per US dollar (¥111.09 in the same period of the previous year) and ¥130.06 per euro (¥122.19), resulting in a ¥2.017 billion year-on-year increase in revenue and a ¥186 million year-on-year increase in operating profit.」

「The yen depreciated against both the US dollar and the euro compared with the previous fiscal year. The average exchange rates during the period were ¥110.85 per US dollar (¥108.38 in the previous fiscal year) and ¥129.70 per euro (¥118.79), resulting in a ¥28.784 billion year-on-year increase in revenue and a ¥10.689 billion year-on-year increase in operating profit.」

「The yen depreciated against both the US dollar and the euro compared with the same period of the previous year. The average exchange rates during the period were ¥111.70 per US dollar (¥106.63 in the same period of the previous year) and ¥128.53 per euro (¥118.02), resulting in a ¥26.199 billion year-on-year increase in revenue and a ¥8.549 billion year-on-year increase in operating profit.」

「The yen depreciated against both the US dollar and the euro compared with the same period of the previous year. The average exchange rates during the period were ¥111.06 per US dollar (¥105.29 in the same period of the previous year) and ¥126.29 per euro (¥118.15), resulting in a ¥15.813 billion year-on-year increase in revenue and a ¥2.984 billion year-on-year increase in operating profit.」

「The yen depreciated against both the US dollar and the euro compared with the same period of the previous year. The average exchange rates during the period were ¥111.09 per US dollar (¥108.14 in the same period of the previous year) and ¥122.19 per euro (¥122.02), resulting in a ¥1.707 billion year-on-year increase in revenue and a ¥1.147 billion year-on-year increase in operating profit.」

「The yen appreciated against both the US dollar and the euro compared with the previous fiscal year. The average exchange rates during the period were ¥108.38 per US dollar (¥120.14 in the previous fiscal year) and ¥118.79 per euro (¥132.58), resulting in a ¥74.281 billion year-on-year reduction in revenue and a ¥30.069 billion year-on-year reduction in operating profit.」

「The yen appreciated against both the US dollar and the euro compared with the same period of the previous year. The average exchange rates during the period were ¥106.63 per US dollar (¥121.70 in the same period of the previous year) and ¥118.02 per euro (¥134.36), resulting in a ¥66.2 billion year-on-year reduction in revenue and a ¥24.6 billion year-on-year reduction in operating profit.」

「The yen appreciated against both the US dollar and the euro compared with the same period of the previous year. The average exchange rates during the period were ¥105.29 per US dollar (¥121.80 in the same period of the previous year) and ¥118.15 per euro (¥135.07), resulting in a ¥43.5 billion year-on-year reduction in revenue and a ¥14.3 billion year-on-year reduction in operating profit.」

「The yen appreciated against both the US dollar and the euro compared with the same period of the previous year. The average exchange rates during the period were ¥108.14 per US dollar (¥121.36 in the same period of the previous year) and ¥122.02 per euro (¥134.16), resulting in a ¥17.251 billion year-on-year reduction in revenue and a ¥3.673 billion year-on-year reduction in operating profit.」

「Concerns about a downside to the economy are expected to intensify as a result of slower growth in emerging markets, including China, and falling resource prices. In Japan, uncertainty is also expected to persist, owing to the risk of deteriorating corporate earnings resulting from a slowdown in the global economy and further yen appreciation, as well as concerns about a resulting decline in consumer sentiment.」