Downside Risk to Economic Conditions and Advertising Budgets from COVID-19

「At present, socioeconomic activity is normalizing following, among other developments, the downgrading of COVID-19 to Category 5 under Japan’s Infectious Diseases Control Law, and advertiser demand for internet advertising remains high. However, if these conditions change, leading to a significant decline in personal consumption or demand for services or continued restraints on advertising placements, this may materially affect the Group’s business and performance.」

「During the second quarter of the current consolidated cumulative period, there were no new business or other risks, nor any material changes to the business or other risks described in the annual securities report for the previous fiscal year.」

「During the first quarter of the current consolidated fiscal year, there were no new business or other risks, and no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」

「During the first nine months of the fiscal year, restrictions on socioeconomic activity implemented to prevent the spread of COVID-19 were almost entirely lifted, and the economy continued to recover moderately, supported in part by the effects of various government policies.」

「During the first six months of the fiscal year, the Japanese economy showed signs of recovery, particularly in services-related consumption and inbound demand, due in part to the lifting of priority preventive measures against the spread of COVID-19 and the effects of various government policies.」

「During the first three months of the fiscal year, the Japanese economy showed signs of recovery, supported in part by the effects of various government policies under the “living with COVID-19” approach. However, with global monetary tightening and other factors continuing, the outlook remains uncertain, and close attention is required to downside risks to overseas economies, the effects of rising prices, supply-side constraints, volatility in financial and capital markets, and infection trends in China.」

「The company expects the impact of COVID-19 on accounting estimates for the current consolidated fiscal year to be immaterial. However, the impact of the spread of COVID-19 remains subject to considerable uncertainty, and changes in conditions may affect accounting estimates for the following fiscal year and beyond.」

「During the third quarter of the current consolidated cumulative period, the impact of the spread of COVID-19 eased and economic and social activity normalised. Japan’s domestic economy also showed signs of recovery, supported by the effects of various government policies. However, it remains necessary to closely monitor the impact of the prolonged situation in Ukraine, rising raw-material prices, economic and monetary policies in countries around the world, including the US, exchange-rate trends, and a renewed spread of COVID-19, and the outlook remains uncertain.」

「During the first six months of the fiscal year, the Japanese economy has been gradually improving as measures to prevent the spread of infection, including COVID-19 booster vaccinations, have been implemented, despite repeated prolonged periods of COVID-19 and intermittent resurgences driven by new variants.」

「During the first quarter of the current consolidated cumulative period, the spread of COVID-19 had begun to subside and a recovery in economic activity was expected. However, the emergence of new variants left the outlook for economic activity and the economy uncertain.」

「At present, the number of people infected with COVID-19 is declining due to repeated declarations of a state of emergency, the issuance of measures to prevent the spread of disease, and the growing availability of vaccinations. Advertiser demand for internet advertising is also strong. However, if these conditions change, resulting in a substantial decline in personal consumption and demand for services or continued restrictions on advertising placements, the group's business and performance could be materially affected.」

「During the third quarter of the current consolidated cumulative period, weak activity continued, particularly in services consumption, due to the impact of restrictions, including priority preventive measures to prevent the spread of COVID-19. Meanwhile, efforts to promote vaccination continued, and consumption was expected to recover.」

「During the second quarter of the current consolidated cumulative period, Japan’s economy was recovering as measures were taken to prevent the spread of COVID-19. However, economic activity continued to proceed with consideration for infection levels, including restraints on face-to-face services such as dining out, and the uncertain situation is expected to continue.」

「Japan's economy remained in a difficult situation during the first quarter of the current fiscal year. Although a recovery is expected as measures to prevent the spread of COVID-19 are implemented, the outlook for economic activity and the economy remains uncertain.」

「During the 22nd consolidated fiscal year, uncertainty surrounding the resurgence of COVID-19 remained high. Some restrictions on consumption activities such as dining out and travel continued, and Japan's economic recovery was expected to be slow.」

「During the third quarter of the current consolidated cumulative period, Japan’s economy was in a difficult situation, with economic activity restricted due to the impact of COVID-19. Following the lifting of the state of emergency, economic activity gradually resumed, and personal consumption showed signs of recovery in areas including dining out and consumer electronics. Although concerns remained over a possible second wave of COVID-19, personal consumption was expected to recover as economic activity normalised.」

「Recently, restrictions on travel, dining out and other activities due to the impact of COVID-19 have continued, and concerns about an economic downturn, particularly in the services sector, remain. The outlook for the economy is also expected to be difficult, and the company believes close attention should be paid to the risk that COVID-19 could cause further deterioration in domestic and overseas economies.」