Political and Protectionist Trade Risks at Overseas Locations

「With respect to the impact of tariff policies, including those of the United States, we are taking certain measures to mitigate the risks. Nevertheless, our group will continue to closely monitor developments and work to respond flexibly.」

「However, in addition to the dramatic escalation in geopolitical risks, the operating environment remains challenging, including the strengthening of preferential policies for domestic Chinese companies.」

「Looking ahead to the next fiscal year, numerous uncertainties could affect the global economy, including US tariff policy, deteriorating diplomatic relations between countries, and conditions in East Asia, Ukraine and the Middle East.」

「During the interim consolidated accounting period under review, the global economy as a whole stagnated due to the continued inflationary trend in major countries and the impact of conflicts in various parts of the world.」

「During the third quarter of the fiscal year under review, the global economy stagnated somewhat due to the recovery from the COVID-19 pandemic reaching a plateau, as well as the effects of military conflicts in various parts of the world and worsening US-China relations.」

「During the second quarter of the fiscal year under review, the global economy overall stagnated due to the recovery from the COVID-19 pandemic reaching a plateau, as well as the effects of inflation, worsening US-China relations and Russia's invasion of Ukraine.」

「During the first quarter of the current consolidated fiscal year, the recovery from COVID-19 leveled off, while higher resource prices resulting from Russia's invasion of Ukraine and inflation in major countries caused the global economy as a whole to stagnate.」

「Looking ahead to the next fiscal year, numerous uncertainties could affect the global economic recovery, including the situation in Ukraine, US-China friction, energy and raw material prices. The company also faces concerns about worsening business conditions in the semiconductor-related industries surrounding the group.」

「During the first quarter of the current consolidated fiscal year, Russia's invasion of Ukraine triggered further increases in resource prices and shortages of goods, significantly affecting the global economy.」

「Looking ahead to the next fiscal year, the company faces numerous uncertainties that could affect the global economic recovery, including COVID-19 and the situation in Ukraine.」

「The pace remained slow, partly because concern about geopolitical risks around the world increased.」

「Overseas economies faced numerous sources of concern about the outlook, including the lack of visibility regarding the end of COVID-19 and the potential worsening of trade issues between the United States and China.」

「Although production of automobiles, semiconductors and other products was moving toward recovery overseas, the situation regarding COVID-19 remained unpredictable in many countries. In addition, numerous concerns remained about the outlook for trade issues between the United States and China, leaving the recovery lacking strength.」

「Overseas, many countries and regions experienced a further deterioration in conditions related to COVID-19. In addition, growing concerns about trade issues between the United States and China and other uncertain factors for the outlook meant that the recovery remained weak.」

「Overseas economies continued to recover only slowly amid the ongoing spread of COVID-19, while trade issues between the United States and China became increasingly serious, resulting in further deterioration.」

「During the first 3 quarters of the current consolidated fiscal year, production and exports in Japan's manufacturing sector showed a declining trend, reflecting the stagnation of the global economy, a slowdown in capital investment and heightened concern about geopolitical risks in various regions. Overseas, although expectations for a resolution of US-China trade friction increased, caution remained strong, while concerns about conflicts in the Middle East also grew. As a result, corporate production activity and personal consumption in major countries generally remained weak.」

「Overseas, in addition to the increasingly pronounced negative effects of trade friction between the United States and China, corporate production activity and personal consumption in major countries were generally weak, reflecting concerns about conflicts in the Middle East and the UK's withdrawal from the EU.」

「In overseas economies, the adverse effects of trade issues between the United States and China became increasingly pronounced, resulting in signs of weakness in corporate performance and personal consumption in major countries.」

「In overseas economies, the effects of trade issues between the United States and other countries gradually became apparent, and signs of weakness emerged in some corporate earnings and personal consumption in major countries.」

「However, for the outlook, trade issues between Japan and the United States and between the United States and China, raw material prices and geopolitical issues remained factors of concern. In addition, concerns about a slowdown in semiconductor-related capital investment meant that Japanese companies were becoming increasingly cautious about the outlook.」

「Political instability in South Korea, military threats from North Korea and protectionist trade policies promoted in the United States and elsewhere may restrict the group's business activities or require additional investment to address them, thereby affecting the group's operating performance and financial position.」