Decline in orders due to economic downturn and contraction of the construction market

「運輸業界におきましては、適正運賃収受の進展や運賃改定等により概ね増収で推移したものの、ドライバー不足を背景とした人件費及び外注費の上昇、米国によるイラン攻撃以前からの物価高騰に加え、同攻撃による中東情勢の悪化がエネルギー価格の急騰を招き、極めて深刻なコスト上昇圧力に直面し収益環境は依然として厳しい状況となっております。」

「During the interim consolidated fiscal period, the Japanese economy continued on a gradual recovery path as employment and income conditions improved. However, the outlook remained uncertain due to domestic economic conditions, including soaring resource, energy and raw material prices and rising prices, as well as the impact of US trade policy.」

「During the current fiscal year, the Japanese economy continued on a gradual recovery path, supported by improving overall corporate business sentiment and employment and income conditions, although some weakness was seen in personal consumption. At the same time, close attention remained necessary regarding the impact of US tariff measures and other economic policy developments, exchange-rate fluctuations, and geopolitical risks on energy and raw material prices and procurement costs.」

「The combination of numerous external negative factors, including the prolonged Russia-Ukraine war, turmoil in the Middle East and rising US interest rates, destabilized foreign exchange markets and weakened supply chains, resulting in a significant depreciation of the yen and rising prices in Japan.」

「During the third quarter of the current fiscal year, the economy continued to improve modestly, supported by inbound demand and public works. However, persistently high raw material prices and chronic labor shortages were downward pressures, and differences between positive and negative factors became more pronounced, with a clear trend toward polarization among industries and regions.」

「During the second quarter of the current fiscal year, business sentiment recovered in some areas, including automobile production, as semiconductor shortages eased. However, the economy fluctuated within a narrow range as persistently high raw material and energy costs, including gasoline, and prolonged labor shortages remained downward pressures.」

「During the first quarter of the current fiscal year, efforts to adapt to the post-COVID era accelerated, while prolonged labor shortages and inflationary trends weighed on the economy. Economic slowdowns in the United States, Europe and China, as well as developments in the situation in Ukraine, further increased uncertainty.」

「During the current fiscal year, the increased movement of people associated with the transition to life after COVID-19 supported the economy, while persistently high raw material prices affected a broad range of industries and higher energy costs, including electricity charges, were a negative factor. The domestic economy remained stalled.」

「During the third quarter of the current fiscal year, the Japanese economy was on an upward trend as the normalization of economic activity in line with COVID-19 conditions took hold. However, negative factors also became apparent, including the yen reaching its weakest level in approximately 30 years, rising raw material and electricity prices, and successive price increases for essential goods.」

「During the second quarter of the current fiscal year, the Japanese economy remained in an extremely uncertain environment due to the future course of the Russia-Ukraine situation, persistently high crude oil and raw material prices, and the continuing depreciation of the yen, while also being affected by trends in COVID-19 infections.」

「During the first quarter of the current fiscal year, the Japanese economy saw the movement of people gradually return as COVID-19 infections subsided. However, differences in business sentiment among industries and regions emerged due to uncertainty over the future course of the Russia-Ukraine situation, the weaker yen, and persistently high crude oil and raw material prices.」

「During the current fiscal year, the Japanese economy was characterized by both positive and negative factors. Continued strong at-home consumption driven by COVID-19 supported business sentiment, while soaring raw material prices associated with the prolonged situation in Ukraine and persistently high crude oil prices weighed on the economy.」

「During the third quarter of the current fiscal year, sentiment related to personal consumption improved substantially as COVID-19 vaccinations became more widespread in Japan. However, although a gradual recovery continued, supply constraints caused by semiconductor shortages and the impact of spreading infections overseas had an adverse effect, and differences in the degree of recovery among industries became apparent.」

「During the second quarter of the current fiscal year, the Japanese economy temporarily stalled as restrictions on movement were tightened under the declaration of a state of emergency and priority preventive measures, while personal consumption-related activity fell sharply due to the effects of record heavy rainfall.」

「No new business or other risks arose during the 1st quarter cumulative period. There were also no material changes to the risks described in the securities report for the previous fiscal year.」

「In the construction industry, the volume of public works orders remained high as a result of emergency measures to strengthen national resilience, but the impact of COVID-19 became apparent in private-sector construction, including temporary suspensions at construction sites.」

「In the construction industry, although a substantial supplementary budget for public works was approved following natural disasters, private-sector projects were canceled or postponed, and some construction work was suspended due to COVID-19 infections. Conditions remained unpredictable.」

「During the first quarter of the current fiscal year, the Japanese economy was severely constrained by the government's declaration of a state of emergency to prevent the spread of COVID-19. Economic activity was significantly restricted, market functions stagnated, and domestic demand cooled rapidly.」

「If order values decline substantially due to a sharp deterioration in the construction and real estate markets, including an economic downturn in Japan or overseas, a contraction in construction demand beyond expectations, a substantial decrease in public works ordered by government agencies, or major changes in supply and demand conditions or prices in the real estate market, this could affect the operating results of the Group.」

「In the construction industry, both public-sector construction and private capital investment have remained firm. However, conditions requiring close monitoring, including rising construction costs and the supply and demand situation for skilled workers, continue, and the intensified competition for orders has made the environment challenging.」

「The economy was on a gradual recovery path as employment and income conditions continued to improve, supported by strong corporate earnings. However, concerns over global trade friction made the outlook increasingly uncertain.」

「No new business or other risks arose during the 1st quarter cumulative period. There were also no material changes to the risks described in the securities report for the previous fiscal year.」

「If order values decline substantially due to a sharp deterioration in the construction and real estate markets, including an economic downturn in Japan or overseas, a contraction in construction demand beyond expectations, a substantial decrease in public works ordered by government agencies, or major changes in supply and demand conditions or prices in the real estate market, this could affect the operating results of the Group.」

「In the construction industry, the problems of soaring material prices, labor shortages and higher labor costs have not been resolved. Although private capital investment is on an upward trend, public investment is declining, and the challenging operating environment continues.」

「In the construction industry, challenging conditions continue, including soaring material prices and higher labor costs due to labor shortages. Private capital investment increased gradually, while public investment was on a declining trend, and the order environment is becoming increasingly challenging.」

「In the construction industry, both public-sector construction and private capital investment have remained firm, but competition for orders has intensified and challenging conditions continue.」

「If order values decline substantially due to a sharp deterioration in the construction and real estate markets, including an economic downturn in Japan or overseas and a contraction of the construction market, this could affect the operating results of the Group.」

「In the construction industry, public-sector construction has remained firm, but competition for orders has intensified. The challenging operating environment continues, with soaring material prices and higher labor costs due to labor shortages.」

「No new business or other risks arose during the 2nd quarter cumulative period. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」

「No new business or other risks arose during the 1st quarter cumulative period. There were also no material changes to the risks described in the securities report for the previous fiscal year.」

「If orders received decline substantially due to a rapid deterioration in conditions in the construction and real estate markets, including an economic downturn in Japan or overseas or a contraction in the construction market, this could affect the operating results of the Group.」

「During the cumulative third quarter of the fiscal year under review, there were no newly arising business or other risks. There were also no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」

「No new business or other risks arose during the 2nd quarter cumulative period. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」

「Although government construction projects have declined, private-sector projects, including central Tokyo redevelopment and the Chuo Shinkansen, have remained firm in terms of construction orders received.」

「If orders received decline substantially because of an economic downturn in Japan or overseas, a construction demand decline exceeding expectations, a significant decrease in public works by government agencies, or major fluctuations in supply and demand or prices in the real estate market resulting from a contraction in the construction market or other factors, this could affect the operating results of the Group.」