Downside Risks to the Domestic Economy and Uncertainty Over the Outlook

「During the interim consolidated accounting period under review, Japan’s economy remained uncertain, although employment and income conditions continued to improve, due in part to restraint on personal consumption resulting from rising prices. In the corporate sector, capital investment showed signs of recovery, but caution about the outlook remained due to concerns about a slowdown in overseas economies and higher costs resulting from exchange-rate fluctuations.」

「During the interim consolidated accounting period under review, Japan’s economy remained difficult for corporate management as unstable overseas conditions, soaring prices, and financial market volatility exerted an impact.」

「The outlook remains uncertain due to resource price increases associated with geopolitical risks, including the prolonged situation between Russia and Ukraine, concerns about China’s economy, and heightened tensions in the Middle East, as well as volatility in the financial and capital markets.」

「During the cumulative third quarter under review, Japan’s economy continued on a moderate recovery trend as social and economic activity normalized from the COVID-19 pandemic. However, the outlook remained uncertain due to the historically weak yen and soaring prices, including energy prices.」

「During the cumulative second quarter under review, Japan’s economy remained in a situation that warranted continued caution, despite further progress in the normalization of social and economic activity from the COVID-19 pandemic, due to unstable overseas conditions, inflation, and financial market trends.」

「Although normalization progressed further as restrictions related to COVID-19 were eased and personal consumption and inbound demand were recovering rapidly, uncertainty continued due to persistently high energy and raw material prices resulting from the prolonged situation in Ukraine, inflation and the weaker yen, the effects of global monetary tightening, and the situation in the Middle East.」

「The business environment surrounding the company group improved as the COVID-19 pandemic subsided and, from May 2023, COVID-19 was reclassified as a Class 5 disease, with signs of a recovery in personal consumption. However, uncertainty remains due to higher energy and raw material prices, the yen’s continued depreciation, and the uncertain situation in Ukraine.」

「During the cumulative third quarter under review, Japan’s economy showed signs of a gradual recovery as economic activity normalized, including through the easing of restrictions associated with the spread of COVID-19. However, the outlook remains uncertain due to higher energy costs resulting from the prolonged situation between Russia and Ukraine.」

「While coexistence with COVID-19 led to signs of a gradual recovery in economic activity, the outlook remains uncertain due to exchange-rate volatility caused by the sharp depreciation of the yen and higher resource and energy costs resulting from the situation between Russia and Ukraine.」

「During the cumulative first quarter under review, Japan’s economy showed signs of gradually moving toward normalization of economic activity as vaccination became widespread, despite being affected by the resurgence of infections during the seventh wave of COVID-19. In the wedding industry, to which the company group belongs, weddings and receptions were postponed due to the impact of the disease, although that impact is gradually weakening.」

「The business environment surrounding the company continues to affect its performance, as the spread of COVID-19 led to repeated restrictions on business activities by the government and local authorities, including states of emergency. However, vaccination has become widespread in recent wedding operations, and postponements and other responses have gradually declined. The environment for orders has generally recovered to conditions comparable to normal times.」

「During the cumulative third quarter under review, Japan’s economy remained under severe pressure on consumption activity as restrictions on activities under quasi-emergency measures to prevent the spread of disease were imposed in various areas from early January through late March 2022. In the wedding industry, weddings and receptions were postponed, the number of guests declined, and restrictions on serving alcoholic beverages reduced the average price per event, weighing on corporate earnings. However, the market environment has shown a clear recovery since restrictions on serving alcoholic beverages, shortened operating hours and other activities were lifted.」

「During the cumulative second quarter under review, Japan’s economy repeatedly deteriorated and recovered amid the lack of a clear end to COVID-19, fluctuations in the number of new infections, and intermittent restrictions on activities. At present, approximately 80% of Japan’s population has completed COVID-19 vaccination, daily life has gradually begun to return to normal, and signs of a recovery in the market environment were emerging in the wedding industry. Against this backdrop, quasi-emergency measures to prevent the spread of disease were implemented in various areas in January 2022. As people became more inclined to refrain from activities, weddings and receptions were postponed, and the decline in the number of guests led to lower average prices per wedding and reception, resulting in renewed difficulties.」

「During the cumulative first quarter under review, Japan’s economy was significantly constrained by the issuance of a state of emergency and quasi-emergency measures to prevent the spread of COVID-19 from August through September 2021. Personal consumption and corporate activity stagnated markedly, and the outlook remains uncertain.」

「The impact of COVID-19 on our business performance has lasted longer than initially expected, including the issuance of the fourth state of emergency in August 2021 due to the fifth wave.」

「During the cumulative third quarter under review, economic activity was significantly restricted by the declaration of a state of emergency and requests to refrain from going out amid the spread of COVID-19. Personal consumption and corporate activity stagnated markedly, and the outlook remained uncertain.」

「The impact of the spread of COVID-19 has continued, and economic activity has been significantly restricted by the reissuance of a state of emergency in January 2021. Personal consumption and corporate activity have stagnated markedly, and the outlook remains uncertain.」

「Regarding the risk item, “Prolonged impact of COVID-19,” described in the securities report for the previous fiscal year, the impact has lasted longer than initially assumed, resulting in changes to some of the assumptions used in accounting estimates concerning the impact of the spread of COVID-19.」

「Uncertainty has continued as the spread of COVID-19 has depressed consumer sentiment and economic activity.」

「The declaration of a state of emergency by the government led local authorities to request that people refrain from nonessential, nonurgent outings. As a result, a decline in operating rates at existing stores and a decrease in sales are expected to affect our business performance in the fiscal year under review and the following fiscal year. Most wedding ceremonies and receptions scheduled from March 2020 onward have been postponed until the following fiscal year or later (934 postponed ceremonies and receptions as of the filing date).」

「During the cumulative second quarter under review, the Japanese economy was expected to continue recovering gradually, partly due to the effects of various government and Bank of Japan policies and improvements in corporate earnings and employment conditions. However, close attention was required regarding the impact of COVID-19 on the economy. Attention was also required regarding overseas economic developments surrounding trade issues and consumer sentiment following the consumption tax rate increase.」

「During the cumulative first quarter under review, the Japanese economy was on a gradual recovery trend, partly due to the effects of various government and Bank of Japan policies and improvements in corporate earnings and employment conditions. However, attention was required regarding consumer sentiment following the consumption tax rate increase and the impact of a succession of natural disasters on the economy.」

「During the fiscal year under review, the economy continued to recover gradually against the backdrop of a recovery in personal consumption, while corporate earnings and employment conditions continued to improve.」

「During the cumulative third quarter under review, the Japanese economy was on a gradual upward trend, with continued improvements in corporate earnings and employment conditions and a recovery in personal consumption, partly due to the effects of various government and Bank of Japan policies. The global economy also continued to recover steadily, although attention was required regarding the impact of trade issues and uncertainty surrounding economic policies overseas.」

「During the cumulative second quarter under review, the Japanese economy continued to recover gradually, with improvements in corporate earnings and employment conditions and a recovery in personal consumption, partly due to the effects of various government and Bank of Japan policies. In the global economy, the U.S. economy remained strong, while emerging-market economies generally continued to grow, and economic conditions were firm overall.」

「During the cumulative first quarter under review, the Japanese economy showed steady improvements in corporate earnings, partly due to the effects of various government and Bank of Japan policies, while employment and income conditions also showed a gradual recovery. In the global economy, economic conditions remained firm, supported by favorable employment conditions and solid personal consumption in Europe and the United States and strong domestic demand and exports in emerging Asian economies and elsewhere.」

「During the fiscal year under review, the Japanese economy saw improvements in corporate earnings and employment conditions against the backdrop of government economic policies, although personal consumption remained broadly flat. In the global economy, the outlook remained uncertain due to U.S. policy developments and heightened geopolitical risks worldwide.」

「During the cumulative third quarter under review, the Japanese economy continued to recover gradually, with improvements in employment and income conditions and a recovery in consumer sentiment, partly due to the effects of various government and Bank of Japan policies. In the global economy, major economies including Europe, the United States and China maintained a recovery trend, while emerging economies also continued to improve, mainly on the strength of domestic demand, and economic conditions were generally firm.」

「During the cumulative second quarter under review, the Japanese economy continued to recover gradually, although it lacked strength, as employment conditions steadily improved and personal consumption recovered, partly due to the effects of various government and Bank of Japan policies. In emerging economies as well, economic conditions were generally firm, with domestic demand and exports performing well in Southeast Asia and elsewhere.」

「During the cumulative first quarter under review, the Japanese economy continued to show a recovery in corporate earnings, partly due to the effects of various government and Bank of Japan policies, while personal consumption also recovered gradually as employment and income conditions improved. In the global economy, economic conditions were generally firm, with domestic demand and exports performing well in Europe, the United States, China and other emerging Asian economies.」

「The outlook remained uncertain due to the slowdown in the Chinese economy and uncertain political conditions in Europe and the United States.」

「However, the outlook remained uncertain due to concerns about a downturn in China and other emerging Asian economies, the United Kingdom's withdrawal from the European Union and instability in foreign exchange and equity markets resulting from the impact of the new U.S. administration.」

「However, the outlook remained uncertain due to heightened uncertainty in the global economy, including financial market volatility resulting from the U.S. presidential election, the United Kingdom's withdrawal from the European Union and concerns about a downturn in emerging Asian economies.」

「The outlook remained uncertain due to heightened uncertainty in overseas economies, including a slowdown in China and other emerging Asian economies and the United Kingdom's withdrawal from the European Union.」

「The outlook remained uncertain due to the slowdown in overseas economies, including concerns about a downturn in emerging-market economies and the result of the referendum on the United Kingdom's withdrawal from the European Union.」