Uncertainty over the outlook due to overseas policy and economic trends, financial market volatility and the consumption tax rate increase

「Meanwhile, in addition to continued inflation, the blockade of the Strait of Hormuz triggered by the military conflict between Iran and the United States caused crude oil and naphtha prices to rise. Through higher energy costs and procurement costs for petrochemical-related raw materials, this raised concerns about the impact on domestic price trends and corporate earnings, and the outlook remained uncertain.」

「In addition to weaker consumer sentiment resulting from continued inflation, concerns remain about the impact on the global economy of developments in U.S. trade policy, the outlook for the Chinese economy and the protracted conflict in Ukraine, and uncertainty about the outlook continues.」

「Downside risks to the economy are increasing due to weaker consumer sentiment resulting from continued inflation and the broadening impact of policy developments, including U.S. trade policy, and uncertainty about the outlook continues.」

「Meanwhile, the downside risk to Japan's economy from a downturn in overseas economies, including the impact of global monetary tightening and concerns about the outlook for the Chinese economy, is increasing. In addition, uncertainty about the outlook continues due to inflation, persistently high raw material and energy prices, and volatility in financial and capital markets.」

「Meanwhile, as global conditions remained unstable due to the protracted conflict in Ukraine and the situation in Gaza, concerns remained about the impact of monetary tightening, the outlook for the Chinese economy, and persistently high raw material and energy prices, and uncertainty about the outlook continued.」

「During the current consolidated fiscal year, Japan's economy was on a gradual recovery trend from the COVID-19 pandemic after COVID-19 was classified as a Class 5 disease under the Infectious Diseases Control Law in May 2023. However, prices continued to rise across various sectors, including food, as higher energy prices and the weaker yen drove up raw material prices and led to further pass-through of costs to consumers.」

「During the six-month period of the current consolidated fiscal year, Japan's economy was on a gradual recovery trend as the spread of COVID-19 subsided and various policy measures and the easing of restrictions progressed. However, concerns remain about the impact of surging raw material and energy prices and inflation, and the outlook for the domestic economy remains uncertain.」

「During the three-month period of the current consolidated fiscal year, Japan's economy showed signs of moving toward normalization as economic support and the easing of restrictions related to COVID-19 progressed. However, concerns remain about the impact of unstable foreign-exchange movements associated with global developments, surging raw material and energy prices, and inflation, and uncertainty about the outlook continues.」

「During the current consolidated fiscal year, Japan's economy showed signs of a gradual recovery after the priority preventive measures were lifted, but uncertainty about the outlook continued due to the resurgence of COVID-19, surging resource and energy prices resulting from the situation between Russia and Ukraine, and the rapid depreciation of the yen.」

「As the situation in Ukraine has become protracted, uncertainty in the global situation has increased due to supply shortages and higher prices for food, resources and other goods. Japan has also experienced a rapid depreciation of the yen and impacts on the prices of energy resources and raw materials, and uncertainty is expected to continue in future economic activity.」

「Furthermore, amid an increasingly unstable international situation following Russia's invasion of Ukraine in February 2022, Japan has experienced a rapid depreciation of the yen and impacts on the prices of energy resources and raw materials, and uncertainty is expected to continue in future economic activity.」

「Since the beginning of 2022, the rapid increase in new infections caused by new variants has led to the priority preventive measures being declared in areas across Japan, and the difficult situation has continued, including renewed restrictions on economic activity. In addition, the economic outlook remains uncertain, as shown by higher prices for petroleum products accompanying the surge in crude oil prices.」

「During the current consolidated fiscal year, Japan's economy remained in a difficult situation, including the reissuance of the state of emergency declaration due to the spread of COVID-19. However, various infection-prevention measures were implemented in Japan, and as vaccinations progressed, the spread of infections was brought under control and economic activity began to return to normal. Globally, however, infections were spreading again in some areas, and we recognize that uncertainty about the outlook is expected to continue, including uncertainty over the future course of new variants.」

「During the nine-month period of the current consolidated fiscal year, COVID-19 had still not moved toward containment and continued to have a significant impact on economic activity, as the areas subject to the state of emergency declaration and the priority preventive measures were expanded from August and the periods were extended. Although vaccinations have been administered in stages, the situation is expected to remain unpredictable due to the emergence of new variants, including the Delta variant.」

「During the six-month period of the current consolidated fiscal year, Japan's economy remained uncertain, as the rapid resurgence of COVID-19, centered on the major metropolitan areas of Tokyo and Osaka, continued to cloud the economic outlook.」

「During the nine-month period of the current consolidated fiscal year, there were no material changes in matters described in this quarterly report concerning the business and accounting situations that could have a material impact on investors' decisions, nor were there any significant changes in the "Business and Other Risks" described in the annual securities report for the previous fiscal year. However, depending on how the spread of COVID-19 develops, it may affect the business activities of our Group and its ability to secure earnings.」

「As COVID-19 spread worldwide, various measures were introduced in Japan under the state of emergency declaration to prevent infections. Economic activity in Japan and overseas was significantly affected and curtailed, raising concerns about the future impact on business activity and the economy and further increasing uncertainty about the outlook.」

「The coronavirus disease that began spreading mainly in Wuhan, China, in December 2019 has spread rapidly worldwide, raising concerns about its impact on economic activity both in Japan and overseas and further increasing uncertainty about the outlook.」

「The Japanese economy during the current consolidated fiscal year remained on a gradual recovery trend, supported by improvements in employment and income conditions. However, it also faced various issues, including concerns about the economy following the consumption tax increase, worsening Japan-South Korea relations, and the impact of natural disasters on domestic companies. It is also necessary to closely monitor the impact of the overseas economy on the Japanese economy, including the prolonged trade friction between the United States and China.」

「The Japanese economy during the third quarter of the current consolidated fiscal year remained on a gradual recovery trend, supported by improvements in employment and income conditions. However, concerns remained over the impact on the economy of the consumption tax rate increase scheduled to take effect on 1 October 2019. It is also necessary to closely monitor the impact of the overseas economy on the Japanese economy, including the prolonged trade friction between the United States and China and the UK's negotiations to leave the EU.」

「Meanwhile, it is necessary to closely monitor the impact of the overseas economy on the Japanese economy, including developments in the trade dispute between the United States and China and the UK's negotiations to leave the EU and their effects.」

「The outlook remains uncertain due to policy and economic trends in the United States and Asia, volatility in the financial and capital markets, and the potential impact of a future increase in the consumption tax rate.」