Financial-market volatility and uncertainty about the economic outlook due to yen appreciation and falling stock prices

「Personal consumption and capital investment showed signs of recovery, and the economy remained on a moderate recovery trend. At the same time, costs continued to rise due to higher material prices and material shortages stemming from the situation in the Middle East and other factors, leaving conditions uncertain.」

「During the first quarter of the current fiscal year, from 1 March 2026 to 31 May 2026, the Japanese economy showed signs of improvement in employment and income conditions, while continuing price increases affected personal consumption and corporate activity. In addition, tensions arising from the situation in the Middle East remained, and conditions continued to be uncertain.」

「During the interim consolidated accounting period under review (1 March 2025 to 31 August 2025), the Japanese economy continued to recover moderately, supported by improvements in employment and income conditions, but the outlook remained uncertain because of developments in US economic policy and geopolitical risks.」

「During the fiscal year under review, the Japanese economy remained on a moderate recovery trend, supported by improvements in employment and income conditions, increased inbound demand and higher corporate capital investment. However, the outlook remained uncertain because raw material and fuel prices stayed elevated amid geopolitical risks.」

「During the interim consolidated accounting period under review (1 March 2024 to 31 August 2024), corporate earnings improved and business sentiment remained at a favorable level. Personal consumption remained firm despite rising prices, supported by accelerating wage growth. In the construction industry, although labor shortages and soaring raw material prices had some impact, construction-related demand was trending upward and was supported by strong capital investment, including major projects in the Tokyo metropolitan area, construction related to Expo 2025 Osaka, Kansai, and inbound demand resulting from yen depreciation.」

「During the cumulative consolidated first quarter under review, corporate capital investment remained solid and inbound demand increased, while concerns were raised over the impact of soaring raw material prices resulting from yen depreciation and higher prices, as well as labor shortages. Although there were signs of higher wages and other improvements in consumer sentiment, sentiment remained stagnant because of prolonged price increases, leaving the situation uncertain.」

「Following the reclassification of COVID-19 as a Category V disease, social and economic activity recovered, corporate performance remained strong, and inbound demand driven by the increase in visitors to Japan expanded, supporting sentiment. Personal consumption stagnated as prices rose because of unstable international conditions and yen depreciation, but the domestic economy entered a gradual recovery trend as wage increases and other measures were implemented.」

「During the cumulative consolidated third quarter under review (1 March 2023 to 30 November 2023), risks related to COVID-19 became limited and social and economic activity began to recover. Although personal consumption was affected by soaring prices, there were signs of a recovery in inbound demand, partly because of the trend toward yen depreciation.」

「During the cumulative consolidated second quarter under review, COVID-19 was reclassified as a Category V disease under the Infectious Diseases Control Law, and social and economic activity, including personal consumption, inbound demand and corporate capital investment, began to recover. Meanwhile, uncertainty continued because of soaring raw material and energy prices resulting from heightened geopolitical risks.」

「COVID-19 was reclassified as a Category V disease under the Infectious Diseases Control Law, and economic activity is expected to recover gradually, but the Group's financial condition and operating results could be affected by soaring raw material costs and other circumstances.」

「Meanwhile, the outlook remains uncertain, partly because of the impact of soaring crude oil prices, a sharp depreciation of the yen and rising prices.」

「However, the outlook for the economy remains uncertain, as the worsening situation in Ukraine and the continuing depreciation of the yen have driven up energy prices, resulting in higher raw material and logistics costs.」

「Meanwhile, the outlook remains uncertain, partly because of the impact of soaring raw material prices and the increasingly tense situation in Ukraine.」

「The economy remained in a challenging situation because of the impact of COVID-19. Although there were signs of a recovery as economic activity resumed in stages, infections spread again because of variants, and it remained difficult to forecast the outlook.」

「A resumption of economic activity is expected following the lifting in October of the state of emergency and other priority measures to prevent the spread of disease, together with the wider rollout of vaccinations, but the outlook remains uncertain, including because new variants of COVID-19 have been identified.」

「During the cumulative consolidated second quarter under review (1 March 2021 to 31 August 2021), repeated states of emergency were declared because of the spread of COVID-19, delaying the recovery in corporate activity and personal consumption, while the outlook for when the pandemic would subside remained uncertain.」

「During the cumulative consolidated first quarter under review (1 March 2021 to 31 May 2021), the impact of COVID-19 remained significant, and the economy remained in a challenging situation, with economic activity restricted by the declaration of a state of emergency. It was also difficult to foresee when the spread of infections would subside, leaving the outlook uncertain.」

「During the fiscal year under review, the Japanese economy remained in an extremely challenging situation, as the spread of COVID-19 led to 2 states of emergency and economic activity stagnated because of requests to suspend business operations and refrain from going out. The timing of the pandemic's end remains unclear, and uncertainty continues.」

「As of the filing date, there is still no clear prospect of when the COVID-19 pandemic will subside. Since the state of emergency was reissued on 7 January 2021, raising concerns over a further slowdown in economic activity, the Group's operating results, financial condition and other matters could be affected further depending on developments going forward.」

「Although government measures had prompted signs of a recovery in economic activity, the renewed increase in infections, which could be considered a third wave, means that the outlook is expected to remain uncertain. The business environment surrounding the Group has become more challenging than expected and remains one that allows no room for complacency.」

「During the cumulative consolidated second quarter under review (1 March 2020 to 31 August 2020), economic activity continued to stagnate because of the spread of COVID-19. Although the state of emergency had been lifted, concerns remained over the impact on the economy of a possible second and third wave, and the economic outlook remained uncertain.」

「During the cumulative consolidated first quarter under review (1 March 2020 to 31 May 2020), the Japanese economy was placed under a state of emergency to prevent the spread of COVID-19, and the outlook for the economy is expected to remain extremely challenging, owing to declines in personal consumption resulting from requests to refrain from going out and suspend business operations, as well as declines in corporate production activity.」

「The business environment surrounding the Group remains uncertain, as the recent spread of COVID-19 has raised serious concerns over a slowdown in economic activity, including the postponement of the 2020 Tokyo Olympics and Paralympics.」

「During the cumulative consolidated third quarter under review (1 March 2019 to 30 November 2019), there were signs of a recovery in corporate earnings and improvements in employment and income conditions, but the domestic economy remained lacking in strength, partly because of concerns over a downturn in economic activity resulting from successive natural disasters and the consumption tax increase. In addition, the outlook for the global economy, including US-China trade friction and worsening Japan-South Korea relations, has become increasingly uncertain, raising concerns over the impact on the domestic economy.」

「During the cumulative consolidated second quarter under review (1 March 2019 to 31 August 2019), there were signs of a recovery in corporate earnings and improvements in employment and income conditions, but the domestic economy remained lacking in strength, partly because of the impact of frequent natural disasters and the consumption tax increase planned for this autumn. In addition, the outlook for the global economy, including US-China trade friction and worsening Japan-South Korea relations, has become increasingly uncertain, raising concerns over the impact on the domestic economy.」

「In addition, the outlook for the global economy, including US-China trade friction and the UK's withdrawal from the EU, has become increasingly uncertain, and there are concerns over the impact on the domestic economy, together with the consumption tax increase planned for this autumn.」

「Meanwhile, the outlook for the global economy has become more uncertain, partly because of concerns over a global economic slowdown resulting from natural disasters, US-China trade friction and the UK's withdrawal from the EU, and the outlook for the economy is uncertain.」

「In the first year of the Group’s medium-term management plan, “Interlife Revolution (IR),” the Group (the Company and its consolidated subsidiaries) has identified three priority initiatives: ① establishing a structure to maximise stakeholder value, ② developing growth areas and building a flexible organisational structure that can respond promptly to changes in the environment, and ③ promoting human resources development, awareness reform, and work-style reform, and is working to achieve growth for the Group.」

「In the first year of the Group’s medium-term management plan, “Interlife Revolution (IR),” the Group (the Company and its consolidated subsidiaries) has identified three priority initiatives: ① establishing a structure to maximise stakeholder value, ② developing growth areas and building a flexible organisational structure that can respond promptly to changes in the environment, and ③ promoting human resources development, awareness reform, and work-style reform, and is working to achieve growth for the Group.」

「During the cumulative consolidated first quarter under review (1 March 2018 to 31 May 2018), the Japanese economy continued to see improvements in employment and income conditions, personal consumption and corporate earnings were trending upward, and the economy was recovering moderately.」

「During the cumulative consolidated third quarter under review (1 March 2017 to 30 November 2017), the Japanese economy saw improvements in corporate earnings and employment conditions, but the economic recovery remained stalled, including a sense of stagnation in personal consumption.」

「During the cumulative second-quarter period from 1 March 2017 to 31 August 2017, Japan's economy showed improvements in corporate earnings and employment conditions, but the economic recovery remained stalled, including a sense of stagnation in personal consumption.」

「During the cumulative first-quarter period from 1 March 2017 to 31 May 2017, Japan's economy showed improvements in employment conditions and a gradual recovery in corporate performance. However, the outlook remained uncertain amid unstable political conditions in countries around the world.」

「During the fiscal year, Japan's economy remained on a gradual recovery track as corporate earnings and employment conditions improved. However, the outlook remained uncertain amid concerns about the slowdown in emerging-market economies, the UK's EU withdrawal issue and the impact of US policy direction.」

「During the cumulative nine-month period from 1 March 2016 to 30 November 2016, Japan's economy showed signs of a gradual domestic recovery. However, the outlook remained uncertain because of the UK's EU withdrawal issue, a downturn in the Chinese economy and higher prices associated with yen depreciation.」

「Although conditions were recovering as corporate earnings and employment improved, the outlook remained uncertain because of yen appreciation resulting from the UK's EU withdrawal issue and the slowdown in emerging-market economies.」

「The economic outlook remained uncertain, partly because financial-market volatility caused by yen appreciation and falling stock prices affected conditions.」