Overseas Economic, Political, Foreign Exchange and Regulatory Risks Associated with Global Expansion

「However, there are also downside risks to the economy resulting from a prolonged impact of the situation in the Middle East, and attention must be paid to future developments.」

「During the consolidated fiscal year under review, Japan's domestic economy remained on a moderate recovery trend, supported by improving employment and income conditions, despite uncertainties including rising prices, volatility in financial and capital markets resulting from Bank of Japan rate hikes and other factors, and developments in US trade policy. However, risks of a downturn in the economy resulting from worsening conditions in the Middle East have recently emerged, requiring close attention to future developments.」

「Although there were uncertainties, including the effects of fluctuations in the financial and capital markets caused by rising prices and interest-rate hikes by the Bank of Japan, as well as developments in U.S. trade policy, the domestic economy remained on a moderate recovery trend, supported by improvements in employment and income conditions. However, there are currently downside risks to the economy stemming from the worsening situation in the Middle East, and attention must be paid to future developments.」

「During the interim consolidated accounting period under review, Japan's domestic economy remained on a moderate recovery trend, supported by improving employment and income conditions, despite uncertainties including rising prices and developments in US trade policy.」

「At the same time, risks that could weigh on Japan's economy remain, including the effects of US economic policy and stagnation in China's economy, requiring continued attention to future developments.」

「At the same time, risks of a downturn in the economy remain, including the prolonged war in Ukraine, worsening conditions in the Middle East and a slowdown in overseas economies, requiring close attention to future developments.」

「At the same time, risks of a downturn in the economy, including the situation in Ukraine, the situation in the Middle East and a slowdown in overseas economies, remain a concern, requiring close attention to future developments.」

「During the first quarter under review, Japan's economic outlook was uncertain because of rising prices and the weakening yen. However, the economy remained on a moderate recovery trend as personal consumption, including inbound tourism consumption, recovered with the normalisation of social and economic activity, while corporate earnings and employment conditions also showed signs of improvement.」

「During the fiscal year under review, prices rose because of supply constraints resulting from the situation in Ukraine and the weakening yen, while the slowdown in overseas economies caused by monetary tightening in Europe and the United States also limited Japan's economic recovery to moderate growth. In March, the failure of banks in the United States and Europe raised concerns that a further slowdown in overseas economies could cause a downturn in Japan's economy.」

「During the nine months ended the third quarter under review, economic and social activity in Japan moved towards normalisation after the COVID-19 pandemic. However, prices rose because of supply constraints resulting from the situation in Ukraine and the weakening yen, while the slowdown in overseas economies caused by monetary tightening in Europe and the United States weighed on the economy, limiting its recovery to moderate growth. Recently, interest rates have risen in Japan following adjustments to its monetary easing policy, raising concerns about a future economic downturn.」

「In addition to rapidly rising prices caused by the prolonged situation in Ukraine and the weakening yen, the rapid spread of new COVID-19 variants has recently raised concerns about a downturn in the economy.」

「As we promote global expansion, these risks may increase, including those relating to local economic and political developments, foreign exchange, legal and regulatory requirements, and differences in business practices. We address these risks by conducting monitoring through the Board of Directors and other bodies.」

「During the nine months ended the third quarter under review, Japan's economy remained on a moderate recovery trend. However, external demand declined because of the impact of US-China trade friction and other factors, production activity in the manufacturing sector stagnated, and personal consumption recently showed signs of weakness because of the consumption tax increase and typhoon damage.」

「During the six months ended the second quarter under review, capital investment and personal consumption remained solid, but external demand declined because of the impact of US-China trade friction and other factors, while production activity in the manufacturing sector stagnated, with some areas showing signs of economic weakness.」

「During the three months ended the first quarter under review, Japan's economy entered a moderate recovery phase as capital investment and personal consumption remained firm. However, the outlook remained uncertain because of the impact of US-China trade friction and other factors, and some areas showed signs of economic weakness.」

「As part of its business strategy, the Group is actively promoting global expansion, but recognizes that risks such as local economic and political developments, foreign exchange, legal and regulatory requirements, and differences in business practices may increase as its operations expand. It addresses these risks by having the Corporate Planning Department and business promotion departments collect information and review business policies.」

「During the nine months ended the third quarter under review, the expansion of Japan's economy showed some signs of weakening because of worsening US-China relations and the effects of large-scale natural disasters such as earthquakes and typhoons. However, personal consumption and capital investment remained firm, supported by solid corporate earnings and improving employment conditions, and the economy continued to recover moderately.」

「During the six months ended the second quarter under review, Japan's economic outlook remained uncertain because of the impact of US-China trade friction. However, personal consumption and capital investment continued to expand moderately, and the economy remained on a recovery trend, supported by solid corporate earnings and steady improvement in employment conditions.」

「During the nine months ended the third quarter under review, Japan's economic outlook remained uncertain because of uncertainty surrounding the policies of the new US administration and geopolitical risks in East Asia. However, personal consumption and capital investment continued to expand moderately, and the economy remained on a recovery trend, supported by strong corporate earnings and improving employment conditions.」

「During the six months ended the second quarter under review, Japan's economic outlook remained uncertain because of uncertainty surrounding the policies of the new US administration and geopolitical risks in East Asia. However, the economy remained on a recovery trend as personal consumption and capital investment recovered and employment conditions continued to improve, supported by the continued strength of corporate earnings and other factors.」

「During the first quarter under review, Japan's economic outlook remained uncertain because of uncertainty surrounding the policies of the new US administration and geopolitical risks in East Asia. However, the economy entered a moderate recovery phase as personal consumption and capital investment recovered and employment conditions improved, supported by the continued strength of corporate earnings and other factors.」

「During the consolidated fiscal year under review, Japan's economy entered a moderate recovery phase as employment and income conditions continued to improve and corporate earnings generally remained strong. However, the economic outlook remained uncertain because of concerns about a downturn in overseas economies resulting from Brexit and policy changes by the new US administration, as well as volatility in financial and capital markets.」

「Although signs of improvement in corporate earnings and domestic consumption emerged from November onward as a result of a weaker yen and rising share prices, the economic outlook remained uncertain because of concerns about a downturn in overseas economies resulting from slower growth in Asian economies and the UK's Brexit issue, as well as volatility in financial and capital markets.」

「However, concerns about a downturn in overseas economies resulting from slower growth in emerging Asian and resource-producing economies and the UK's Brexit issue, as well as volatility in financial and capital markets resulting from a stronger yen and falling share prices, left the economic outlook uncertain.」

「The outlook remained uncertain because of the risk of a downturn in Japan's economy resulting from slower growth in emerging Asian and resource-producing economies, a stronger yen and falling share prices.」

「As our operations expand, these risks may increase, including those relating to local economic and political developments, foreign exchange, legal and regulatory requirements, and differences in business practices.」