Financial, Economic and Political Risks Associated with Overseas Market Expansion

「Although the Japanese economy during the interim consolidated accounting period continued to recover gradually, the outlook remains uncertain due to the effects of rising prices and US trade policies.」

「Rising semiconductor product and electronic component prices due to higher resource prices resulting from the prolonged situations in Ukraine and the Middle East, as well as changes in supply and demand resulting from shifts in customers' and suppliers' production trends following changes in tariff policies in the United States and other countries, may affect the performance and financial position of the Group.」

「The Japanese economy during the cumulative third quarter under review has been recovering gradually due to improvements in employment and income conditions, but uncertainty remains high due to rising geopolitical risks, global inflation and the sluggish Chinese economy.」

「The Japanese economy during the cumulative second quarter under review has been recovering gradually due to improvements in employment, income and other conditions, but uncertainty remains high due to the prolonged situation in Ukraine, global inflation and concerns about the outlook for the Chinese economy.」

「The Japanese economy during the cumulative first quarter under review has recovered following the lifting of restrictions after the reclassification of COVID-19 as a Class 5 disease, but uncertainty remains high due to factors including US-China economic friction, the prolonged situation in Ukraine, global inflation and the ongoing depreciation of the yen.」

「During the third-quarter cumulative consolidated period, Japan's economy picked up as efforts to contain the novel coronavirus were balanced with economic activity. However, uncertainty over the outlook remained high owing to the prolonged situation in Ukraine, monetary tightening by countries in response to global inflation, and changes to China's zero-COVID policy.」

「During the first-quarter cumulative consolidated period, Japan's economy remained on a recovery trend as the impact of the novel coronavirus gradually eased. However, the outlook remained highly uncertain because of factors driving inflation, including the prolonged Russian invasion of Ukraine, lockdowns in China, including Shanghai, and yen depreciation accompanying US Federal Reserve rate hikes.」

「During the second-quarter cumulative consolidated period, Japan's economy showed clear polarization across industries: services for consumers remained sluggish owing to the resurgence of the novel coronavirus, while manufacturing continued to recover as the global economy picked up.」

「During the first-quarter cumulative consolidated period, Japan's economy showed clear polarization across industries: services for consumers remained sluggish owing to the resurgence of the novel coronavirus, while manufacturing continued to recover as the global economy picked up.」

「Although stagnation in the global economy continued as the spread of the novel coronavirus persisted in Japan and overseas, demand in the electronics industry grew for PCs used for telework and automotive electrical equipment, with supply and demand becoming tight in some areas.」

「During the second-quarter cumulative consolidated period, Japan's economy remained in a difficult condition owing to the impact of the novel coronavirus. Although recent gradual reopening of economic activity has brought signs of a gradual recovery, uncertainty is expected to persist. Market conditions in the electronics industry consequently remained sluggish.」

「During the first-quarter cumulative consolidated period, economic conditions deteriorated rapidly owing to the global spread of the novel coronavirus. Market conditions in the electronics industry also continued to deteriorate.」

「The global and Japanese economies are expected to remain in an increasingly severe and uncertain condition as the spread of the novel coronavirus continues. Further deterioration in economic conditions is also a concern for the Group's major markets, namely industrial equipment, automotive electrical equipment and amusement equipment, which are expected to be significantly affected.」

「Demand for 5G communications and automotive applications, particularly ADAS and autonomous driving, is expected to grow in the electronics industry, but challenging conditions are expected to continue against the backdrop of a global economic slowdown and a worldwide decline in IT demand.」

「The economic environment is expected to remain in a low-growth phase, against the backdrop of a slowdown in the global economy and a worldwide decline in IT demand. Conditions in the electronics industry are also expected to remain challenging.」

「The global economy showed signs of a downturn, driven by the prolonged US-China trade dispute and the continuing slowdown in China's economy.」

「The economic outlook has entered a phase of marked deterioration, owing to US-China trade frictions, China's economic slowdown, and the UK's withdrawal from the EU. Conditions in the global economy have also become increasingly uncertain, leaving little room for complacency.」

「The global economy remains at risk of a slowdown amid the US's protectionist trade policies, the risk that the resulting US-China trade dispute will be prolonged, a slowdown in China's economy, and instability in Europe.」

「The global economy is generally on a path of moderate growth, but downside risks remain due to trade frictions arising from protectionist trade policies in the United States and China, monetary tightening in Europe and the United States, and heightened geopolitical risks in East Asia. The outlook therefore remains uncertain.」

「Although the global economy has generally remained on a path of moderate growth, concerns about downside risks remain, including US-China trade frictions, uncertainty over the political situation in Europe, and heightened geopolitical risks in the Middle East and Asia.」

「Overall conditions remained stable, as exports expanded in China against the backdrop of a recovery in the global economy and personal consumption continued to recover gradually in Europe as employment conditions improved.」

「In the United States, personal consumption has remained resilient and corporate sentiment firm, but continued close monitoring is required, including of the new administration's monetary policy. Concerns that domestic economic conditions could weaken also remain, owing to uncertainty over economic trends and policies in China and emerging Asia and heightened geopolitical risks in the Middle East and East Asia, leaving the outlook uncertain.」

「The economies of China and other emerging markets slowed, while Europe faced the UK's withdrawal from the EU, geopolitical risks and non-performing loan problems, and South Korea was affected by political instability. Economic conditions remained uncertain in all three regions.」

「The global economy faces concerns that downturns in China, emerging Asian economies and resource-producing countries could weigh on Japan's economy. The need for increased vigilance regarding the outlook for overseas developments, including the UK's withdrawal from the EU and the direction of policy after the inauguration of the new US president, as well as volatility in financial and capital markets, has become greater than before.」

「The economies of China and other emerging markets have continued to slow. Concerns include capital outflows from emerging markets following expectations of US interest-rate hikes, lower growth in resource-exporting countries due to weak resource prices, heightened geopolitical tensions, and the impact of the UK's withdrawal from the EU. The economic outlook therefore remains uncertain.」

「The European economy had continued to recover gradually, but signs of an economic slowdown have been intensifying, including downside risks from the UK's withdrawal from the EU. The outlook for the economy remains uncertain amid the impact of economic slowdowns in emerging markets, including China, lower oil prices, and heightened global geopolitical risks arising from instability in the Middle East.」

「The Group has made expansion in overseas markets one of its strategic priorities. The Group's businesses and investments, primarily in Asia, could have a material impact on its performance if problems arise in overseas financial markets or economies, or if social or political problems arise in those countries, resulting in a substantial decline in demand from customers closely connected with those markets.」