Deteriorating order environment due to electricity policy, reduced capital investment in facilities, and natural disasters

「Capital investment in decarbonization-related fields and toward the restart of nuclear power plants, together with capital investment to meet rising electricity demand resulting from the construction of new data centers accompanying the spread of generative AI, has kept the overall environment generally firm.」

「Meanwhile, capital expenditure in power-supply infrastructure and other areas is gaining momentum against a backdrop of investment in decarbonization-related fields, investment aimed at restarting nuclear power plants, and rising electricity demand due to the construction of new data centers accompanying the spread of generative AI. The Group expects favorable conditions for orders to continue.」

「The operating environment surrounding our group remained generally firm, supported by capital investment in decarbonization-related fields, capital investment toward the restart of nuclear power plants, and capital investment to meet rising electricity demand resulting from the construction of new data centers accompanying the spread of generative AI.」

「The operating environment surrounding the Group remains challenging. Although robust capital expenditure in decarbonization-related fields and investment in power-supply infrastructure are expected as electricity demand increases with the spread of generative AI and the construction of new data centers, the Group is also affected by higher costs due to soaring prices for equipment and materials and labor costs, together with chronic labor shortages.」

「The Seventh Strategic Energy Plan and the GX2040 Vision were approved by the Cabinet, and it was announced that electricity demand is expected to increase over the medium to long term as DX (digital transformation) and GX (green transformation) progress. The indication that power sources contributing to energy security and delivering significant decarbonization benefits, including renewable energy and nuclear power, should be utilized to the greatest extent possible represents an opportunity for the Group to expand its business domains.」

「The operating environment surrounding the Group is expected to see active capital expenditure in renewable energy as demand for decarbonization investment rises, while the volume of work at conventional power plants, which have long been the Group's core business, is trending downward.」

「Looking ahead, capital expenditure is expected to continue increasing against a backdrop of higher expected growth rates. However, the Group expects the challenging operating environment to continue as it engages in the energy infrastructure business, due to the impact of unstable international conditions and foreign-exchange movements, as well as the trend toward higher interest rates.」

「The operating environment surrounding the Group remains challenging due to restraint on capital expenditure in the electric power industry and other factors. However, toward achieving both a decarbonized society and economic growth, the enactment of the GX Promotion Act and the GX Decarbonized Power Sources Act, and the presentation of specific pathways including the promotion of energy conservation, the designation of renewable energy as a primary power source, and the use of nuclear power, represent an opportunity for the Group to expand its business domains.」

「The operating environment surrounding the Group remains challenging due to restraint on capital expenditure in the electric power industry and other factors. However, the enactment of the GX Promotion Act and the GX Decarbonized Power Sources Act, and the presentation of specific pathways including the promotion of energy conservation, the designation of renewable energy as a primary power source, and the use of nuclear power, represent an opportunity for the Group to expand its business domains amid the global shift toward a decarbonized society.」

「Affected by soaring resource prices and foreign-exchange movements resulting from unstable international conditions, including Russia's invasion of Ukraine, the Group expects the challenging operating environment to continue as it engages in the energy infrastructure business.」

「The operating environment surrounding the Group remains challenging as deteriorating profitability in the electric power industry due to soaring energy-resource prices and restraint on capital expenditure in power facilities continue, while active capital expenditure for energy conservation and decarbonization is expected amid the global shift toward a decarbonized society.」

「The operating environment surrounding the Group remains challenging due to deteriorating profitability in the electric power industry caused by soaring energy-resource prices and restraint on capital expenditure in power facilities.」

「Looking ahead, the Group expects the challenging operating environment for an energy infrastructure business to continue, owing to intensifying competition resulting from a series of electricity system reforms, restrained investment in power facilities, stagnation in economic activity due to the continuing impact of COVID-19, and additional cost pressures arising from soaring prices for energy resources and other raw materials.」

「The operating environment surrounding the Group remains challenging due to the effects of a series of power-system reforms that have further promoted competition, as well as restraint on capital expenditure in power facilities.」

「The business environment surrounding our Group remains challenging, as a series of electricity system reforms have further promoted competition and restraint in power infrastructure investment has progressed.」

「The business environment surrounding our Group remains challenging, as competition for orders for power-related infrastructure construction has intensified and private-sector capital investment has contracted or been postponed due to the COVID-19 pandemic.」

「In power-related equipment construction, which has a significant impact on the Group, the Group's results may be affected by developments in future electric power and energy policy, a decline in capital expenditure on power facilities exceeding expectations, and the occurrence of major natural disasters such as earthquakes and storm or flood damage, or outbreaks of infectious diseases.」

「The business environment surrounding our Group remains challenging due to the electricity system reforms, including the legal separation of the generation and transmission businesses, as well as reductions in capital investment by electric utilities and their demands for cost reductions.」

「However, in power-related equipment construction, which has a significant impact on the Group, the Group's results may be affected by developments in future electric power and energy policy, a decline in capital expenditure on power facilities exceeding expectations, and the occurrence of major natural disasters such as earthquakes and storm or flood damage, or outbreaks of infectious diseases.」

「The business environment surrounding our Group remains challenging, as the timing of nuclear power plant restarts remains uncertain, restraint in power infrastructure investment continues, and intensified competition for orders and cost reduction demands from electric utilities have an impact.」

「However, in power-related equipment construction, which has a significant impact on the Group, the Group's results may be affected by developments in future electric power and energy policy, a decline in capital expenditure on power facilities exceeding expectations, and events such as natural disasters.」

「However, in power-related equipment construction, which has a significant impact on the Group, the Group's results may be affected by developments in future electric power and energy policy, a decline in capital expenditure on power facilities exceeding expectations, and events such as natural disasters.」