25May2025|6:52PMJST

JapanExportTracker

Number3:Whatcorporatesaretellingus(asofMay16,2025)

TheGSJapanteamlaunchedtheJapanExportTrackerinApril2025,withafocusoncommentaryfromJapanesecorporatesontheimpactoftariffs.Followingonfromthe?rstandsecondeditions,inthisthirdtrackerwesummarizecommentaryfromcorporatesthatannouncedresultsoverMay12-16.Together,thethreeeditionstrackcommentaryfrom127companiesinourJapantech,auto,capitalgoods,and

retail/consumerrelatedcoverage(accountingforc.37%ofTSEmarketcap).As

before,wefocuson:(1)theimpactoftariffs,(2)actionstakeninresponsetotariffs,and(3)changesinassumptionsfortheFY25businessenvironmentand/ormedium-tolong-termstrategies,includingfactorsbesidestariffs.

The10?ndings/implicationsfromthe?rst/secondtrackersarelargelyunchanged.However,wehighlightfourfurtherdevelopmentsinourthirdtracker:

Impactoftariffsbyindustry:Wenowhaveaclearerpictureoftheforecasttotal

impactoftariffs,whichcomestoatleast￥4.5tn,with￥3.6tn(c.80%)attributabletoautomakers/tiremakers.Industrialelectronics,games&entertainment,constructionmachineryeachaccountforc.4-6%,andelectroniccomponentsforc.3%.

Tariffcountermeasures/pricepass-through:Differencesincountermeasuresbyindustry/amongcompanieshavebecomeclearer.Thenetimpactrelativetothe

grossimpactoftariffsisc.70%forautomakers(30%mitigation),20-60%for

constructionmachineryandautoparts-relatedcompanies(40-80%mitigation),andzerofortires(i.e.,100%mitigation).ManyotherB2Bcompanies(upstreamsupplychain)expecttoachieveahighdegreeofmitigation.

Corporategovernancereforms:Duringthetrackingperiodforthisthirdedition,

investorinterestwashighinSonyGroup,Kyocera,andKuraray.Whileeachcompanyisinadifferentphase,investorattentionisalreadyshiftingfromtariffstothedegreeofprogressincorporategovernance.

Opportunities:Inadditiontoseeingpotentialopportunitiesindowntrading,

investmentinef?ciency,andthematerializationofUSsemiconductorinvestment,companiesincreasinglynotedanupturninareasrelatedtoChinacapex,

suggestingpotentialforthistoemergeasanothertheme.

DaikiTakayama

+81(3)4587-9870|

daiki.takayama@

GoldmanSachsJapanCo.,Ltd.

YuichiroIsayama

+81(3)4587-9806|

yuichiro.isayama@

GoldmanSachsJapanCo.,Ltd.

KotaYuzawa

+81(3)4587-9863|kota.yuzawa@GoldmanSachsJapanCo.,Ltd.

ShoKawano

+81(3)4587-9905|sho.kawano@GoldmanSachsJapanCo.,Ltd.

RyoHarada

+81(3)4587-9865|ryo.harada@GoldmanSachsJapanCo.,Ltd.

TakeruAdachi

+81(3)4587-4067|

takeru.adachi@

GoldmanSachsJapanCo.,Ltd.

ShuheiNakamura

+81(3)4587-9932|

shuhei.nakamura@

GoldmanSachsJapanCo.,Ltd.

AtsushiIkeda

+81(3)4587-9940|

atsushi.ikeda@

GoldmanSachsJapanCo.,Ltd.

ChikaiTanaka,CFA

+81(3)4587-9840|chikai.tanaka@GoldmanSachsJapanCo.,Ltd.

MinamiMunakata

+81(3)4587-9830|

minami.munakata@

GoldmanSachsJapanCo.,Ltd.

TakashiMiyazaki

+81(3)4587-9896|

takashi.miyazaki@

GoldmanSachsJapanCo.,Ltd.

MitsuhiroIcho

+81(3)4587-9836|

mitsuhiro.x.icho@

GoldmanSachsJapanCo.,Ltd.

GoldmanSachsdoesandseekstodobusinesswithcompaniescoveredinitsresearchreports.Asaresult,

investorsshouldbeawarethatthe?rmmayhaveacon?ictofinterestthatcouldaffecttheobjectivityofthis

report.Investorsshouldconsiderthisreportasonlyasinglefactorinmakingtheirinvestmentdecision.ForRegACcerti?cationandotherimportantdisclosures,seetheDisclosureAppendix,orgoto

/research/hedge.html.Analystsemployedbynon-USaf

?liatesarenotregistered/quali?edasresearchanalystswithFINRAintheU.S.

GoldmanSachsJapanExportTracker

25May20252

25May20253

Lookingbackatthe?rsttwotrackers:10key?ndings/implicationsremainunchanged

InExhibits1-3,wepresentsummariesofkeycommentsfromcorporatesthat

announcedresultsbetweenMay12-16.Wecontinuetofocuson:(1)theimpactof

tariffs,(2)actionstakeninresponsetotariffs,and(3)changesinassumptionsforthe

FY25businessenvironmentand/ormedium-tolong-termstrategies,includingfactorsbesidestariffs.The10key?ndingsandimplicationswepresentedinthe?rsttrackerareunchanged.However,wehighlightfourfurtherdevelopmentsinthethirdtracker:

n2:Wenowhaveaclearerpictureofthetotalexpectedimpactinnumericalterms.

n4,5:Thestatusofmitigationeffortsandthedifferencesbyindustryandcompanyhavealsobecomeclearer.

n8:RegardingcompaniessuchasSonyGroup,Kyocera,andKuraray,investor

attentionisalreadyshiftingfromtariffstothedegreeofprogressincorporate

governance,e.g.,(eventhoughthesecompaniesareallindifferingphasesintermsofgovernanceimplementation).

n9:AnupturninareasrelatedtoChinacapexhasstartedtobecomemoreprominent.

1.Guidance:Assumptionsandexpressionsregardingtheimpactoftariffsvarywidelyamongcompanies,re?ectingtheuncertainoutlook.

2.Impactbyindustry:Theimpactandexpressionsofconcernareparticularly

noteworthyintheautosector.Wealsonotecautiousviews,mainlyregarding

indirectimpacts,particularlyintechhardware,electronicdevices,andfactory

automation(FA).Ontheotherhand,semiconductorproductionequipment(SPE)andITservicesappeartoberelativelyinsulatedfromtariffimpacts.

3.Front-loadedorders:Front-loadedordersandcustomerinventoryreplenishment

areevidentforsomeproducts,suchasPCs,tablets,andsmartphones.Front-loadedorders,presumablyrelatedtoApple,areparticularlynoticeable.

4.Tariffactions(upstream):Mostcompaniesinupstreamsupplychains(mainlyB2B)aremovingtopassonpriceincreases.

5.Tariffactions(downstream):Downstreamsupplychains(mainlyB2C)withadirectconnectionwithUSconsumersarealsogenerallylookingtopassonpriceincreases.Thatsaid,corporatesarealsoassessingdemandtrendsandthecompetitiveand

marketsharelandscape.

6.Productionallocation:Manycompaniessaidthattheyarereviewingand

restructuringtooptimizetheirglobalproduction,withsomementioningexpansionofproductioninIndiaandutilizationofEuropeanbases.Somearealsoconsidering

expandingcapacityinNorthAmerica.Companieswithaglobalfootprintappeartobeatanadvantage.

7.Assumptions:ThemainstreamFY2025FXassumptionis￥140-145/US$.Thebasecaseforvolumeassumptionsformajorproducts(smartphones/PCs/tablets)is

roughly?atyoy.

8.Corporategovernancereforms:Thesecontinueunabated,withsomecompaniesactuallyactivelysteppingupshareholderreturns.Capexislargelybeingdirected

25May20254

towardenhancingcompetitiveness.

9.Opportunities:Somecompaniesareviewingtherapidlychangingbusiness

environmentasanopportunity.Threethemesaredowntrading,investmentsin

ef?ciency,andexpansionofsemiconductorinvestment.AnupturninareasrelatedtoChinacapexappearstobegainingfurthermomentum.

10.Noteworthycommentsfromseniormanagement:Acommonthreadisa

managementphilosophythatdoesnotviewtheimpactoftariffsmyopically,butrathermaintainsaclearfocusonpreservinggrowthpotentialeveninarapidlychangingbusinessenvironment,underscoringtheimportanceofleadership.

Impactoftariffs:Totalexpectedimpactofc.￥4.5tn,withautomakersandtiremanufacturersaccountingforc.80%

1.Guidance

IntheguidancefromcompaniesthatannouncedresultsbetweenMay12-16,the

factoringinoftariffimpactcontinuedtovaryfromcompanytocompany,with

somenotincorporatingtariffsintotheirguidance,andsomeincorporatingthem(with

differencesintheperiodandwhetherdirect/indirectimpactswereincorporated).Basedonfeedbackfrominvestors,itappearsthatcompaniesthathavefullyandthoroughlyfactoredintheimpactoftariffsareregardedashavinglowerearningsriskand

viewedmorefavorably.Forexample,SumitomoElectricIndustriesfactoreddetailedestimationoftariffimpactintoguidance,disclosinganexpectedgrossimpactof￥100bnandanetimpactof￥40bnaftermitigationmeasures,brokendownbysegmentandimpacttiming(1H/2H).Thiswasoneofthemostdetaileddisclosuresamongthe

companiesthathavereportedsofar.Meanwhile,regardingthetwoconstruction

machinerymanufacturers(whichannouncedresultsbeforethetrackingperiodforthisthirdtracker),ourinvestorfeedbacksuggestedthatinvestorsarereassuredabout

Komatsu’searnings,asithasfactoredintheimpactoftariffs,whileforHitachi

ConstructionMachinery,whichhasnotfactoredintariffimpact,investorsaretakingawait-and-seeapproachwhiletheyassessearningsrisk.

2.Impactbyindustry

Withalmostallexport-relatedcompanieshavingnowannouncedresults(duringthe

periodcoveredbyour?rstthroughthirdtrackers),wewouldliketorevisitthenumericalimpactoftariffs.

Exhibit1showsthetotalimpactoftariffsatthecompaniescoveredbythe?rstthroughthirdtrackers.Theresultsshowthatthetotalimpactoftariffsisexpectedtobeat

least￥4.5tn.Wesay“atleast”becausesomecompaniesdidnotdisclosethegrossimpactoftariffs(i.e.,theyonlydisclosedthenetimpactaftermitigationmeasures),andforthesecompanieswehaveonlyincludedthenetimpactinourcalculations.The

estimatedtotalimpactwouldbegreaterbasedongrossimpactatthesecompanies.

Theestimatedimpactoftariffsonautomakersisparticularlylarge.Ourestimateofthegrossimpactoftariffs(automakersandtiremanufacturers,13companiesintotal)is￥3.6tn,accountingforc.80%ofthetotal.Industrialelectronics,games&

25May20255

entertainment,andconstructionmachineryeachaccountforc.6-4%,andelectroniccomponentsaccountforc.3%(Exhibit2).

Amongthecompaniesthatannouncedresultsduringthetrackingperiodforthisthird

tracker,SonyGroupdisclosedarelativelylargeimpactfromtariffs(￥100bn)intermsoftheactualamount.However,asthecompanysaiditcanmanagetheimpacttoless

than10%ofcompany-wideoperatingpro?ts,investorsnowappeartobemoreinterestedincapitalallocationandgrowthstrategythantariffs.

ThereisnochangetoourviewthatSPEandITserviceswillremainrelativelyinsulatedfromtheimpactoftariffs,andthatfundamentalsinthesesectorswillremainstrong.

Exhibit1:Totalimpactoftariffsatcompaniescoveredbyour?rstthroughthirdtrackers(includingcompaniesthatdisclosedgrossimpactandcompaniesthatdisclosednetimpact)

Totalforcompaniesthatdisclosedgrossimpact(includingsomeestimatesfromourautosteamforautomakers)andcompaniesthatdisclosednetimpact

Source:Companydata,GoldmanSachsGlobalInvestmentResearch

25May20256

Exhibit2:Impactoftariffsbyindustry(netimpact)

Other

machineryrelated,2%

Chemical,1%SPE,>0%

Electronic

Consumer& Retail,>0%

Components,

3%

Construction,

4%

Games&

Entertainment,

4%

Industrial

Electronics,6%

Automakers,

80%

Forautomakers,weusethenettariffimpactestimatedbyourautosteambasedoncompanyassumptions.

Source:Companydata,GoldmanSachsGlobalInvestmentResearch

3:Front-loadedorders

Therewerenoadditionalhighlightsregardingfront-loadedordersthistime.We

observednochangeinthedatapointsindicatingfront-loadedordersforconsumer

electronicssuchassmartphones(notablyrelatedtoApple)andPCs,particularlyinupstreamsupplychainswheretherearealimitednumberofsuppliers.

Ontheotherhand,itappearsthatfront-loadedordersarenotoccurringacrossall

components/devices.InadditiontoTaiyoYuden(MLCCs)andHiroseElectric

(connectors),whichwementionedinthesecondtracker,SonyGroupalsosaidthatithasnotseenanyparticularfront-loadingforCMOSimagesensors.

25May20257

Actionstakeninresponsetotariffs:B2Bcompaniescontinuetopassonpriceincreases;forB2Ccompanies,theapproachvariesdependingoncompetitionanddemand;tiremanufacturersarelookingtopassthrough100%oftheimpact,whileautomakersaremitigatingc.30%,basedon

initialassumptions

4and5:Tariffactions(upstreamanddownstream)

Aswehavenotedpreviously,mostcompaniesinupstreamsupplychains(mainlyB2B)aremovingtopassthroughpriceincreases.Downstreamsupplychains(mainlyB2C)arealsogenerallylookingtopassonpriceincreases,butthetonevariesbyindustryand

company,re?ectingdemandtrendsandthecompetitiveandmarketsharelandscape.Withalmostallexport-relatedcompanieshavingnowannouncedresults,the

differencesinthedegreeofmitigationbyindustryandcompanyhavebecomeclearerinnumericalterms.

Exhibit3showsthedegreeofmitigationforindustries/companiesthathavedisclosedtheirassumptions,orforwhichwehavebeenabletoestimatetheirassumptions,for

thegrossandnetimpactoftariffs.Theexhibitshowsthatthenetimpactrelativeto

thegrossimpactoftariffsisc.70%forautomakers(30%mitigation),20-60%for

constructionmachineryandautoparts-relatedcompanies(80-40%mitigation),

andzerofortires(i.e.,100%mitigation).Inaddition,manyoftheB2Bcompanies

(upstreamsupplychain)notincludedintheexhibitdataareexpectedtoachieveahighdegreeofmitigation/pricepass-through(thiscanalsobeseeninExhibit2

whichshowstheimpactoftariffsbyindustry).

Automakers

ThefocusinFY3/25resultsannouncementswasonthelikelygrossnegativeimpactoftariffs,andmitigationefforts.Whileitisdif?culttomakedirectcomparisonsas

companiesbasedtheirforecastsondifferingassumptions,ourimpressionisthatmanyautomakershavefactoredinmitigationeffortsofc.30%intotheirinitialoperatingpro?tguidance.

Automakersthatclearlydisclosedmitigationmeasurestooffsettheimpactof

tariffsincludedHonda(31%),Nissan(30%),MitsubishiMotors(20%),andIsuzu

(20%).Webelievethe?guresatthisstagerepresentroughestimates,andthat

companiesaresignalinganintentiontomitigateatleastaround30%oftheimpact.WeexpectfurthermitigationmeasuresintheformofexpansionofsalesofUS-made

models,curbsonvariable/?xedcosts,andincreasesinreal-termsprices.

Japaneseautomakershavenotyetmadeanyof?cialannouncementsregardingpriceincreases.Webelievethattheyarecurrentlyweighinguptwofactors:the

outcomeofUS-Japantradenegotiations,andUSautodemandfundamentals(decliningconsumercon?dence).Weassumethatautomakerswillreininincentivespervehicle(resultinginreal-termspriceincreases)fromMayonward,followedbyregularprice

increasesinconjunctionwithmodelyearchangesintheJuly-Septemberquarter(in

responsetobroaderin?ation).Asaresult,ourearningsestimatesincorporatethe

possibilityofc.70%mitigation,andwecontinuetoseepotentialforpro?tstoexceed

25May20258

companyforecasts.

Tiremanufacturers

Tiremanufacturersplantomitigate100%oftheimpactoftariffs.Overall,they

expressedcon?denceintheirabilitytorespondtotariffs.Bridgestone,Sumitomo

RubberIndustries,andToyoTireallsaidtheycanfullyabsorbtheimpactoftariffs

throughpriceincreasesandinternalefforts,andthattheyexpecttoachievetheirinitialFY12/25guidance.However,whilesayingitcanmitigatethe￥45bndirectimpactoftariffs,Bridgestonenotedapossible￥20bnindirectimpactfromaUSeconomic

slowdownresultingfromthetariffs,whichitseesasanadditionaldownsiderisk.

Exhibit3:Mitigationoftariffimpactbyindustry/company

100%

80%

60%

40%

20%

0%

KubotaNiterraAlpsAlpineTiremakers

AutomakersOmronKomatsuSumitomoElectric

Industries

NetImpactCounterAction

Onlycompaniesthatdisclosedboththegrossandnetimpactoftariffsareincluded.Forautomakers,weusethegross/nettariffimpactestimatedbyourautosteambasedoncompanyassumptions.

Source:Companydata,GoldmanSachsGlobalInvestmentResearch

25May20259

Exhibit4:Companieswiththelargestexpectednettariffimpact

(bnJPY)

1,200

1,000

800

600

400

200

0

ToyotaMotorHondaMotorNissanMotorSubaruCorp.MazdaMotorSonyGroupKomatsuPanasonicHDDaikin

Industires

TDK

Forautomakers,weusethegross/nettariffimpactestimatedbyourautosteambasedoncompanyassumptions.ForPanasonic,weuse￥78bn,the

maximumamountimpliedbythecompany’scommentthattheimpactonconsolidatedsalesislikelytobelessthan1%ofconsolidatedsales(lessthan￥78bn).

Source:Companydata,GoldmanSachsGlobalInvestmentResearch

FY25assumptionsandlonger-termstrategies,includingonfactorsotherthantariffs:Governancereformsprogressingsteadily.Opportunities:

MomentuminChina-relatedcapexisbuilding

6:Productionfacilityallocation

Belowwehighlightcommentaryfromtwocompaniesonallocationofproductionoperations.Aswehavenotedpreviously,companieswithaglobalfootprintaretaking?exiblemeasures.

KurarayhasastrongpresenceintheUS,mainlyincorebusinessessuchasEVAL

(c.56%ofproductioncapacityintheUSasofend-2024),povalresin(c.29%),activatedcarbon(c.69%fornewcarbon),andSEPTON(c.39%),withalocalproductionforlocalconsumptionframeworkinplaceformostproductssoldtotheUSmarket.Forproductssuchasactivatedcarbon,wherethereareexportsfromChinatotheUS,tariffsreducingthecompetitivenessofChineseproductscouldprovidearelativeadvantageforKuraray.Whilethecompanyalsoexportssomeproducts(suchasEVAL)fromtheUStoChina,itcanrespondbyshippingfromotherbasesinJapanandEurope.WelookforKuraray’sabilitytomanageriskbyutilizingitsgloballydispersedmanufacturingbase

networktostandout.

SonyGroupistaking?exiblemeasuresacrossthecompany,includingbuildingup

strategicinventoriesintheUS,adjustingproductshipmentallocationsglobally,and

passingonacertainlevelofcostincreasestopriceswithacloseeyeonmarkettrends.ThecompanycommentedthatithasalreadyexpandedproductionofthePS5frommainlyChinatofourcountries.

GoldmanSachsJapanExportTracker

25May202510

7:FXAssumptions

Ofthe127companiesinoursurvey,90disclosedtheirexchangerateassumptions.

Manycompaniescontinuetoassumeanexchangerateof￥140-145/US$forFY25(theaverageforFY24wasslightlyover￥150/US$).Speci?cally,ofthe90companies,37

used￥140/US$,28used￥145/US,and69assumedaUSD/JPYratewithinthe￥140-145range.Duringtheperiodcoveredbythisthirdtracker,HondaMotorandKyocera

disclosedanassumptionforUSD/JPYbelow￥140,at￥135/US$.

8.Governancereforms

Whilethestageofcorporategovernancereformsvariesfromcompanyto

company,ourviewthatthesereformswillcontinuetoprogressatJapanese

companiesisunchanged.WehighlightcommentsfromSonyGroup,Kyocera,andKuraraydisclosedduringtheperiodcoveredbythisthirdtracker.

SonyGroupexplainedthatinitsmedium-tolong-termstrategyandcapitalallocation,groupreformsassociatedwithitsfocusonentertainmenthavecontributedtostrong

earnings.Thecompanyreiteratedthattheorganicconnectionbetweenthegroup’s

diversebusinessesandhumanresourcesisitsuniquestrength.Italsoexpressed

con?denceinattainingdeepersynergiesamonggroupcompanies,sayingthat

collaborationintheentertainmentbusinesshasshiftedfromatop-downtoabottom-upphase,increasingthespeedofcollaboration.

Intermsofcapitalpolicy,Sonyraisedtheamountearmarkedforcapitalallocationover

thethree-yearbusinessplancoveringFY3/25-FY3/27from￥4.5tnto￥4.8tn,re?ectingstronger-than-expectedearnings.Thecompanysaidthe￥0.3tnincreasewillbe

allocatedtoshareholderreturns.SonyguidesforDPStoriseby￥5yoyinFY3/26(from￥20to￥25),whichislargerthanthe￥3increaseinFY3/25vs.FY3/24.Thecompanyalsosetasharebuybackallowanceof￥250bnforFY3/26,thesameasatthebeginningof

FY3/25.

WhileSonyexpectstoreducecapexintheI&SS(Imaging&SensingSolutions)to

c.70%ofthelevelinthepreviousmedium-termplan(FY3/22-FY3/24),itsaidthatfromthenextmedium-termplanaheadof2030,capexrelatedtotheproductionof?ner

mobileimagesensorswillgraduallyincreasetoalevelsimilartothatintheprevious

plan(cumulativeinvestmentcash?owfortheI&SSbusinesswasc.￥1tnoverthethreeyearsfromFY3/22toFY3/24).

Investorinterestinoptimalcapitalallocationremainsverystrong,withactivediscussionscontinuingonhowtobalancetheneedforfurtherinvestmentto

strengthenSonyGroup’sgloballeadershipinentertainmentwiththeneedfor

investmentinthesemiconductorbusiness,inordertofurtherraiseROIC.Webelievethisre?ectshighexpectationsfortheevolutionofJapanesecompaniesbeyondcorporategovernancereforms.

Meanwhile,Kyocerareaf?rmedits(1)steadyexecutionofsharebuybacksandreductionofstrategicshareholdings,(2)steadymovetowardpro?tabilityatKyoceraAVX(KAVX)

andinorganicpackaging,and(3)executionofbusinesstransfers/withdrawals(￥200bn)asplanned.

25May202511

Thecompanyformallyannounceda￥200bnsharebuyback(c.9.67%ofoutstanding

shares).Italsostateditwillreducestrategicshareholdingsbyroughly￥500bnby

FY3/27,andthatitssubsequenttargetisforthesetoaccountforlessthan20%of

equity(weestimatethisimpliesafurtherreductionofc.￥500bn).Intermsofbusinessselection,Kyocera’sassumptionofbusinesstransfers/withdrawalsof￥200bnduringFY3/26remainsunchanged.Intermsofresourceconcentration,initsdevicesbusinessthecompanywillfocusonSPEcomponents,ceramicpackaging,MLCCs,andtantalumcapacitors,whileinsolutionsitwillpromotebusinessmodeltransformation.

WhileKyocera’sgovernancereformsarestillintheirearlystages,thecompanyhasbeguntakingactionstosteadilyimprovepro?tsandcapitalef?ciency.

Kuraray,whichhasbeenviewedbytheequitymarketasnotparticularlyactiveinsharebuybacks,announceda￥30bnbuybackin1QFY25(c.6.79%oftotaloutstandingsharesexcludingtreasurystock).Furthermore,attheresultsbrie?ng,managementcommentedthatitviewsitscurrentequityratioofc.59%assomewhathigh,andwouldliketolowerittothelowerendofthe50-60%range,inordertoraiseROE.Weunderstandthis

impliesthatalarge-scalesharebuybackwillbenecessary,consideringthatnet

pro?tsareexpectedtoincreasesigni?cantlyduetotop-linegrowthinthe

company’scorebusinesses(basedonourestimates).Wewillbewatchingforfurthereffortstoenhanceshareholderreturns.

Exhibit5showstheresultsofouranalysisofactualcapexinFY24vs.FY25capex

guidanceatcompaniescoveredbythe?rstthroughthirdtrackers.Manycompaniesplantoincreasecapexyoy.

25May202512

Exhibit5:Aggressiveinvestmenttobolstercompetitivenessandtechnologicalstrengths:Actualandplannedcapexfor127companiesthatannouncedresultsthroughMay16(34companiesthatdidnotdiscloseguidancewereexcludedfromtheexhibit)

FY24~FY25CAPEX(billionJPY)

15,000

14,380

13,554

10,000

5,000

0

FY25

FY24

Auto

Chemicals

Industrialelectronics

MachineryITservicesRetails

Electorniccomponents/SemisSPE

Game&InternetConsumers

Source:Companydata,GoldmanSachsGlobalInvestmentResearch

9.Opportunities

Intermsofpositiveopportunities,thethreethemesofdowntrading,investmentsin

ef?ciency,andexpansionofsemiconductorinvestment(mainlyconcretedevelopmentsintheUS)remain