Foreign Exchange, Political, Economic and Regulatory Risks in Overseas Operations

「At the same time, the current global situation contains considerable uncertainty about the outlook, including expanding geopolitical risks centered on the Middle East. Changes in this external environment could affect domestic corporate activity and consumption, making flexible and appropriate responses necessary while closely monitoring future developments.」

「External risks include geopolitical risks such as political and economic instability and social unrest. In particular, international conflicts may affect the Group's business through higher energy and commodity prices and longer lead times for commodity supplies, requiring continued monitoring. In addition, there are risks of accelerating inflation, recession and currency fluctuations resulting from prolonged international conflicts. If these effects persist, customer traffic and sales at overseas stores, as well as the number of foreign visitors to Japan and tax-free sales, will decline, adversely affecting business performance and financial condition.」

「At the same time, the current global situation contains considerable uncertainty about the outlook, including expanding geopolitical risks centered on the Middle East. Changes in this external environment could affect domestic corporate activity and consumption, making flexible and appropriate responses necessary while closely monitoring future developments.」

「There are also risks of accelerating inflation, recession and currency fluctuations against a backdrop of US tariff policies and other factors. If these effects persist, customer traffic and sales at overseas stores will decline, adversely affecting business performance and financial condition.」

「Energy and raw material prices continue to rise, while the recovery in real wages has been delayed. In addition, fluctuations in the external environment caused by the risk of a slowdown in the US economy and unstable currency markets are creating uncertainty for the domestic economy, and these developments continue to require close monitoring.」

「Meanwhile, the outlook for domestic and overseas economic conditions remains uncertain due to prolonged inflation and the effects of interest rate and currency fluctuations, and the situation continues to require close monitoring.」

「Meanwhile, the outlook for economic conditions remains uncertain due to soaring resource, energy and food prices resulting from the situation in Ukraine and currency market fluctuations.」

「Meanwhile, the global economy is expected to remain uncertain, including due to the global course of COVID-19, price trends and currency fluctuation risks, and these developments are being closely monitored.」

「Meanwhile, the global economy continued to face volatility in financial and capital markets, as well as high raw material prices and supply chain disruptions caused by the situation in Ukraine and the impact of China's zero-COVID policy.」

「In particular, the impact of the recent situation in Ukraine requires close monitoring for the time being, including soaring commodity prices, longer or disrupted lead times for commodity supplies, higher energy costs and the safety of employees stationed overseas.」

「Overseas operations, particularly in China, Southeast Asia and the United States, were forced to suspend operations sequentially amid tighter government restrictions from February 2020, and results fell significantly below the previous year.」

「Overseas, too, the global spread of the infection led to a succession of bankruptcies among long-established department stores and other retailers, making the business environment increasingly challenging.」

「The outlook for business conditions remains deeply uncertain and gives no cause for optimism, amid the aftereffects of the consumption tax increase and heightened tensions related to US-China trade friction and the UK's departure from the EU.」

「Meanwhile, the outlook for the global economy remains uncertain due to escalating US-China trade friction and rising tensions in the Middle East, among other factors, and the risk of recession has become apparent.」

「During the nine-month consolidated period under review, Japan's economy operated amid growing uncertainty in the global economy, including a slowdown in China's economy resulting from worsening US-China trade friction and the United States' protectionist trade policies, as well as downside risks from a slowdown in overseas economies.」

「During the six-month consolidated period under review, Japan's economy continued to improve, with employment and income conditions remaining favorable, although attention must be paid to the impact of developments in trade issues, including the escalating US-China trade war, and volatility in financial and capital markets.」

「Overseas business operations entail several risks, including: 1) unexpected changes in laws or regulations 2) adverse political or economic factors 3) potentially unfavorable tax systems 4) social unrest caused by terrorism, war or other factors」

「Overseas business operations entail several risks, including: 1) unexpected changes in laws or regulations; 2) adverse political or economic factors; 3) potentially unfavorable tax systems; and 4) social unrest caused by terrorism, war or other factors.」