Legal, Regulatory, Disaster, and Political and Economic Risks Associated with Overseas Business Activities

「During the interim consolidated accounting period, some signs of recovery emerged in the global economy as major countries continued monetary easing and inflation slowed. However, uncertainty over the outlook remained high due to the impact of additional US tariff policies, slowing growth resulting from structural issues in the Chinese economy, the prolonged situation in Ukraine, and heightened geopolitical tensions in the Middle East.」

「During the consolidated fiscal year, the global economy maintained steady growth as inflation continued to ease and personal consumption showed signs of recovery. However, uncertainty over the outlook has intensified due to prolonged geopolitical risks involving Ukraine and the Middle East, as well as the impact of the US's large-scale tariff policies on the economies of various countries.」

「During the interim consolidated accounting period, the global economy remained clouded by uncertainty over its outlook, affected by geopolitical risks involving Ukraine and the Middle East, exchange-rate volatility arising from interest-rate differentials with Europe and the United States, and the prolonged stagnation of the Chinese economy, among other factors.」

「The global environment is becoming increasingly complex as countries and regions strengthen their economic security policies in light of the situations involving Russia and Ukraine, US-China relations, and Taiwan, among other factors.」

「During the first nine months of the fiscal year, the global economy remained uncertain because of the prolonged situation in Ukraine, growing instability in the Middle East, stagnation in the Chinese economy, the effects of monetary tightening mainly in the US and Europe, and exchange-rate fluctuations.」

「During the first six months of the fiscal year, the global economy remained uncertain because of the prolonged situation in Ukraine, rising interest rates and prices mainly in the US and Europe, China’s economic slowdown and the effects of exchange-rate fluctuations.」

「The outlook remained uncertain because of the prolonged situation in Ukraine, persistently high raw-material prices, advancing global inflation and the effects of exchange-rate fluctuations.」

「During the first nine months of the fiscal year, economic activity was moving toward normalization as various restrictions related to COVID-19 were gradually eased. However, the economic outlook remained uncertain because of persistently high raw-material prices due to the prolonged situation in Ukraine, continued increases in energy prices, recession concerns arising from monetary tightening by countries seeking to contain inflation, and substantial exchange-rate fluctuations.」

「During the first six months of the fiscal year, the domestic and overseas economies remained uncertain because of persistently high raw-material prices due to the prolonged situation in Ukraine, continued increases in energy prices, concerns about recession resulting from monetary tightening by countries seeking to contain inflation, and rapidly advancing yen depreciation.」

「The outlook remained uncertain because of concerns about a renewed spread of infectious diseases caused by new variants, global shortages and price increases for components including semiconductors, higher resource prices resulting from the prolonged situation in Ukraine, disruption and stagnation of economic activity under China’s zero-COVID policy, and concerns that inflationary pressure would slow the economic recovery.」

「Overseas sales accounted for 58.6% of sales in the consolidated fiscal year. If disruption caused by unexpected changes in laws or regulations, natural disasters, war, terrorism, the spread of infectious diseases or other economic or political factors occurs in the countries where the Group operates, the Group may be forced to reduce or suspend production or experience a slowdown in sales activities, which could materially affect its operating results and financial position. Although economic sanctions and regulations in various countries have affected business activities in connection with the situation in Ukraine and Russia, the impact on the Group’s operating results and financial position is expected to be minor.」

「Economic activity was showing signs of recovery in the US, Europe and China, but the economic environment remained unpredictable because of supply chain disruptions, higher material prices, logistics disruptions and higher transport costs caused by container shortages, and concerns about a renewed spread of infection from the Omicron variant.」

「Overseas, China, the US and European countries where vaccination had progressed accelerated efforts to normalize economic activity. However, the economic environment remained uncertain because of supply shortages and price increases for components, including semiconductors, logistics disruptions and higher transport costs caused by container shortages, and other factors.」

「In the global economy, normalization progressed in China, while employment recovered and personal consumption improved in the US as vaccination advanced. In other regions, however, infections with COVID-19 variants increased in some areas, including India, and the outlook remained uncertain.」

「Overseas sales accounted for 56.9% of sales in the consolidated fiscal year. If disruption caused by unexpected changes in laws or regulations, natural disasters, war, terrorism, the spread of infectious diseases or other economic or political factors occurs in the countries where the Group operates, the Group may be forced to reduce or suspend production or experience a slowdown in sales activities, which could materially affect its operating results and financial position.」

「Although corporate and economic activity was normalizing in China, the spread of the infectious disease became increasingly serious in the US and Europe, with lockdowns imposed in many countries and regions, raising concerns about a prolonged stagnation in economic activity.」

「Although China showed signs of recovery, the US and Europe had not yet moved toward containing the infectious disease, and economic activity remained limited.」

「Although the extent varied by country and region, economic activity was also restricted overseas in various ways.」

「The Group has production facilities in China, South Korea and Vietnam and sells products worldwide, primarily in the US and Russia. Overseas sales accounted for 55.5% of sales in the consolidated fiscal year. If disruption caused by unexpected changes in laws or regulations, natural disasters, war, terrorism, the spread of infectious diseases or other economic or political factors occurs in the countries where the Group operates, the Group may be forced to reduce or suspend production or experience a slowdown in sales activities, which could materially affect its operating results and financial position.」

「During the first nine months of the fiscal year, the economic environment surrounding the Group remained uncertain. In Japan, corporate performance remained firm, but relations with South Korea deteriorated and external demand slowed because of US-China trade friction. Domestically, there was a reactionary decline following front-loaded demand ahead of the consumption tax increase in October, while overseas uncertainty persisted because of the tense situation in the Middle East and the UK’s Brexit issue.」

「During the first six months of the fiscal year, the economic environment surrounding the Group remained uncertain. In Japan, corporate performance remained firm, but relations with South Korea deteriorated and external demand slowed because of US-China trade friction. Domestically, there were concerns about weaker consumer activity following the consumption tax increase in October, while overseas uncertainty persisted because of the turmoil surrounding Brexit and the situation in the Middle East.」

「The outlook for the global economy remained uncertain as concerns emerged that the previously strong US economy might have peaked, in addition to the UK’s Brexit issue in Europe and the situation in the Middle East.」

「Overseas sales accounted for 52.7% of sales in the consolidated fiscal year. If disruption caused by unexpected changes in laws or regulations, natural disasters, war, terrorism or other economic or political factors occurs in the countries where the Group operates, the Group may be forced to reduce or suspend production or experience a slowdown in sales activities, which could materially affect its operating results and financial position.」

「The US economy remained firm, but the global economy was affected by growing tensions arising from US-China trade friction, China’s economic slowdown, the UK’s Brexit issue in Europe and concerns about immigration restrictions.」

「The global economy generally remained firm, led by the US, although the Trump administration’s hard-line trade policies affected the world. In China, issues arising from US-China trade friction became apparent in part, and the economy showed signs of slowing. In Europe, concerns about Brexit and the Trump administration’s conservatism remained unresolved, although a moderate recovery continued, mainly in the EU.」

「The global economy generally remained on an expansionary trend, led by the US, but uncertainty persisted because of trade friction with other countries arising from US protectionist policies, the UK’s Brexit issue in Europe, and geopolitical risks in Asia, including the situation in the Middle East.」

「The Group has production facilities in China, South Korea and Vietnam and sells products worldwide, primarily in the US and Russia. Overseas sales accounted for 51.5% of sales in the consolidated fiscal year. If disruption caused by unexpected changes in laws or regulations, natural disasters, war, terrorism or other economic or political factors occurs in the countries where the Group operates, the Group may be forced to reduce or suspend production or experience a slowdown in sales activities, which could materially affect its operating results and financial position.」

「The global economy generally remained firm, led by the US, supported by improving employment and a recovery in personal consumption. The outlook nevertheless remained clouded by the policies of the Trump administration, the UK’s Brexit issue, China’s slowing economy and heightened geopolitical risks in Asia.」

「The global economy generally remained on an expansionary trend, led by the US, although the outlook remained clouded by the policies of the Trump administration, the UK’s Brexit issue, concerns about a downturn in the Chinese and emerging-market economies, and heightened geopolitical risks in Asia.」

「The global economy generally remained on an expansionary trend, led by the US, although the outlook remained clouded by US policy, the UK’s Brexit issue, concerns about a downturn in the Chinese and emerging-market economies, and geopolitical risks in Asia.」

「The Group has production facilities in China, South Korea and Vietnam and sells products worldwide, primarily in the US and Russia. Overseas sales accounted for 49.1% of sales in the consolidated fiscal year. If disruption caused by unexpected changes in laws or regulations, natural disasters, war, terrorism or other economic or political factors occurs in the countries where the Group operates, the Group may be forced to reduce or suspend production or experience a slowdown in sales activities, which could materially affect its operating results and financial position.」

「In the US, there was confusion surrounding the presidential election and the policy outlook for the subsequent new administration. In Europe, the UK’s Brexit issue continued, as did the economic downturn in Russia stemming from sanctions. In China, the economy continued to slow, with no clear resolution to excessive debt and excessive capital investment by local governments and private companies, leaving the outlook uncertain.」

「In Russia, however, economic stagnation stemming from sanctions continued, while tensions with the US and Europe kept the outlook uncertain. In China, the economy showed signs of recovery with support from public investment, but continued to slow amid excessive debt and excess capacity among private companies.」

「The US, Europe, China and other regions each experienced moderate expansion. In Russia, however, the economic downturn stemming from sanctions related to the situation in Ukraine continued. The outlook also remained uncertain because of the UK’s Brexit issue and concerns about a downturn in the Chinese and emerging-market economies.」

「Overseas sales accounted for 51.4% of sales in the consolidated fiscal year. If disruption caused by unexpected changes in laws or regulations, natural disasters, war, terrorism or other economic or political factors occurs in the countries where the Group operates, the Group may be forced to reduce or suspend production or experience a slowdown in sales activities, which could materially affect its operating results and financial position.」