Risk from Economic Fluctuations in Key Markets and Procurement Sources

「In addition to concerns about logistics disruptions and soaring resource prices resulting from the prolonged situation in Ukraine and heightened tensions in the Middle East, the impact of US trade policy has further increased uncertainty surrounding the future business environment.」

「Meanwhile, the global economic outlook remained uncertain due to developments in U.S. trade policy, prolonged instability in the international situation, particularly in the Middle East, and the continued stagnation of the Chinese economy.」

「Although some stagnation remained due to persistently high raw material and resource prices, a gradual recovery trend continued against a backdrop of improving employment and income conditions. However, the outlook for the business environment remained difficult to determine due to prolonged geopolitical risks, weakness in the Chinese economy, and the impact of changes in US trade policy accompanying the change in the US administration.」

「During the current interim consolidated fiscal period, the Japanese economy continued on a gradual recovery trend, although some sectors showed signs of stagnation due to persistently high raw material and resource prices, against a backdrop of improving employment and income conditions. However, the outlook for the global economy remained uncertain, owing to inflation concerns in Europe and the United States and the continued stagnation of the Chinese economy.」

「Japan's economy during the nine months ended the third quarter continued on a path toward a gradual recovery as social activity, including personal consumption, normalized. However, the outlook remained uncertain due to globally unstable political and economic conditions and soaring energy and raw material prices.」

「During the current fiscal year, the Japanese economy showed signs of a gradual recovery, but the outlook remained uncertain due to the adverse impact on corporate performance of soaring raw material costs resulting from the prolonged Russia-Ukraine war and the sustained trend of yen depreciation, as well as restrained personal consumption.」

「During the cumulative third quarter of the current consolidated fiscal year, the Japanese economy showed signs of recovery, but stronger inflationary pressure caused by soaring raw material prices and the weaker yen affected corporate activity. The global economy was also on a gradual recovery trend, particularly in Europe and the United States, but the outlook remained uncertain due to the prolonged Russian invasion of Ukraine, soaring energy prices, monetary tightening measures in various countries, and global supply chain disruptions caused by China's lockdowns.」

「The global economy was also recovering moderately, particularly in Europe and the United States, but the outlook remained uncertain due to the prolonged and intensifying situation between Russia and Ukraine, soaring raw-material prices, sharp exchange-rate movements and monetary tightening.」

「The domestic and overseas business environment has again become increasingly uncertain due to supply chain disruptions caused by Russia's invasion of Ukraine and China's lockdowns, soaring raw material prices, and sharp foreign exchange fluctuations.」

「During the fiscal year, the impact of the novel coronavirus disease on social and economic activity eased, and signs of an economic recovery emerged in Japan. The global economy was also on a recovery path, but the Russian military's invasion of Ukraine and China's lockdowns caused further deterioration in soaring raw-material prices and stagnant logistics, leaving the outlook uncertain.」

「During the cumulative third quarter of the current consolidated fiscal year, the Japanese economy showed signs of recovery as vaccination against COVID-19 progressed and social and economic activity recovered. The global economy was also trending toward recovery, but the outlook remained uncertain due to the rapid spread of new variants in Japan and overseas, persistently high raw material prices, stagnant logistics, and shortages of components and other materials, particularly semiconductors.」

「However, the pace of recovery was moderate as social and economic activity was restricted, including through the reissuance of a state of emergency, following the spread of new variants. Although the global economy was recovering, the slowdown in international logistics and shortages of raw materials such as semiconductors and resins were curbing the momentum of the recovery, leaving the outlook uncertain.」

「During the cumulative first quarter of the current consolidated fiscal year, the Japanese economy remained in a difficult situation due to the impact of COVID-19, although signs of a recovery in corporate earnings, particularly in the manufacturing sector, were observed. The global economy also recovered as vaccination became more widespread.」

「During the first six months of the fiscal year, the Japanese economy remained in a severe condition as social and economic activity continued to be restricted by the impact of the novel coronavirus disease, resulting in sluggish corporate earnings. Overseas, infections were increasing again, and the economic outlook remained difficult to predict.」

「During the cumulative first quarter of the current consolidated fiscal year, the Japanese economy faced severe conditions as the global spread of COVID-19 led to the declaration of a state of emergency and restrictions on social and economic activity. Japan, where the state of emergency has been lifted, and countries around the world have gradually resumed economic activity, but conditions remain difficult to forecast, including concerns about the arrival and spread of a second wave.」

「Furthermore, the global spread of COVID-19 from the beginning of 2020 caused the global economy to slow further.」

「In addition, overseas economies remained weak due to the impact of US-China trade friction, the slowdown in the Chinese economy, and rising geopolitical risks resulting from instability in the Middle East.」

「During the first six months of the fiscal year, the Japanese economy continued to recover moderately against a backdrop of improving corporate earnings and employment and income conditions. However, the overseas economies remained sluggish due to the prolonged impact of U.S.-China trade friction and the slowdown in the Chinese economy.」

「However, the overseas economies remained sluggish due to the escalation of U.S.-China trade friction, stagnation in the Chinese economy and issues surrounding the United Kingdom's withdrawal from the EU.」

「As described above, the group operates in various countries and regions. Accordingly, if economic conditions in the group's major markets and sourcing regions, including Japan, North America, Asia, and Europe, change sharply due to a recession, financial crisis, or other factors, resulting in shrinking demand or reduced ability to procure products, the group's operating results and financial position may be affected.」