Uncertainty Regarding the Economic Environment, Supply Systems, Securing Personnel, and Other Factors

「Meanwhile, inflation caused by the weaker yen and rising import material prices and labor costs continues. The outlook for the economy remains uncertain due to restrained personal consumption, pressure on corporate earnings from wage increases and rising crude oil prices resulting from heightened geopolitical risks.」

「Meanwhile, inflation caused by the weaker yen and rising import material prices and labor costs continues. The outlook for the economy remains uncertain due to restrained personal consumption, pressure on corporate earnings from wage increases and rising crude oil prices resulting from heightened geopolitical risks.」

「At the same time, concerns about the economic recovery remained because higher prices caused by the weaker yen and rising import-material and labor costs continued to restrain personal consumption, while additional U.S. tariffs slowed overseas economies.」

「In fiscal 2025, corporate capital investment, including investment to maintain and renew aging facilities, information-technology investment to promote digital transformation, and environmental investment aimed at decarbonization, was expected to support the economy. However, concerns about an economic downturn remained because of a sharp slowdown in the global economy caused by tariff policies and declining real wages as prices rose.」

「During the interim consolidated accounting period, Japan's economy recovered gradually, supported by strong corporate earnings, improving employment conditions, higher wages and the resulting recovery in personal consumption, as well as increased capital investment to address issues such as digitalization, decarbonization and labor-saving. At the same time, concerns remained about whether the economic recovery would continue because of higher policy rates, uncertainty in exchange rates and rising prices.」

「At the same time, concerns about the economic recovery remained as a growing sense of stagnation took hold because of global inflation and concerns about monetary tightening.」

「At the same time, concerns about the economic recovery remained because raw-material prices and consumer prices continued to rise as crude oil prices increased and the yen weakened, while global geopolitical risks intensified.」

「During the first quarter of the fiscal year under review, Japan's economy recovered gradually, as personal consumption began to recover with increases in employment and wages, while corporate capital investment increased on trends toward digitalization and decarbonization. At the same time, real wages continued to decline because wage growth failed to keep pace with rising prices, consumer sentiment did not improve, and concerns about the economic recovery remained.」

「In fiscal 2023, economic activity was expected to recover gradually as the normalization of economic activity led to the resumption of corporate capital investment and stronger personal consumption. However, conditions were expected to remain uncertain as cost-push inflation caused by higher raw-material prices and the weaker yen was expected to continue.」

「In the transportation sector, business and tourism demand was recovering, and investment to maintain and enhance safety, security and comfort was also gradually recovering. However, delays in equipment deliveries caused by delays in the supply of components resulted in sluggish sales.」

「In the transportation sector, business and tourism demand was recovering, and investment to maintain and enhance safety, security and comfort was also gradually recovering. However, delays in equipment deliveries caused by delays in the supply of components, including semiconductors, resulted in sluggish sales.」

「During the first quarter of the fiscal year under review, Japan's economy showed signs of recovery because of the effects of various policies. However, inflationary pressure intensified as energy and raw-material prices rose amid the prolonged situation in Ukraine and the yen depreciated sharply, raising concerns about a slowdown in the recovery of corporate earnings and personal consumption. Conditions remained uncertain.」

「In fiscal 2022, the economic environment was expected to remain uncertain. Risks of a downside to the economy included a slowdown in the global economy caused by supply-chain disruptions associated with COVID-19, international developments surrounding Ukraine, and further increases in resource, fuel and raw-material prices.」

「Although the effects of various policies were expected to support an economic recovery during the third quarter of the fiscal year under review, economic activity remained constrained by global supply-chain disruptions and stagnation caused by COVID-19, and conditions continued to be difficult.」

「Although an economic recovery and revitalization of economic activity were expected as a result of various policies and fewer infections due to increased vaccination, conditions remained uncertain, with the recovery of personal consumption and employment delayed, including because of supply-chain disruptions.」

「During the fiscal year under review, economic activity in Japan remained severely depressed and conditions were extremely difficult because of the spread of COVID-19. Although there were signs of recovery partly because of the effects of various policies, the outlook remained uncertain.」

「During the third quarter of the fiscal year under review, economic activity stagnated because of the COVID-19 pandemic. Although signs of recovery emerged partly because of the effects of various policies, the rapid spread of infections from December onward led to the reissuance of a state of emergency, and the outlook for the economy remained extremely difficult and uncertain.」

「During the fiscal year under review, Japan's economy had been recovering gradually as employment and income conditions continued to improve. However, the economy deteriorated rapidly as the COVID-19 pandemic caused personal consumption to stagnate and corporate capital investment to decline, and conditions remained extremely difficult.」

「Uncertainty in overseas economies caused by developments in trade issues, the effects of volatility in financial and capital markets, and a trend toward declining investment in equipment and machinery, particularly in manufacturing, have further weakened conditions, which remain difficult.」

「During the second quarter of the fiscal year under review, Japan's economy continued to recover gradually, supported by the effects of various policies as employment and income conditions improved. However, conditions remained difficult, owing to uncertainty in overseas economies caused by developments in trade issues and a trend toward lower investment in equipment and machinery, particularly in manufacturing.」

「During the first quarter of the fiscal year under review, Japan's economy continued to recover gradually, supported by the effects of various policies as employment and income conditions improved. However, conditions remained uncertain because of developments in trade issues and the effects of exchange rates trending toward a stronger yen.」

「Japan's economy is currently expected to recover gradually, with corporate earnings remaining at high levels and capital investment plans proving firm. However, concerns about the outlook remain because of sluggish overseas economies, including in Asia, and the consumption-tax rate increase.」

「During the third quarter of the fiscal year under review, Japan's economy remained on a gradual recovery track, with corporate earnings and employment and income conditions continuing to improve. However, uncertainty about the outlook continued because of uncertainty in the global economy and volatility in financial and capital markets.」

「During the second quarter of the fiscal year under review, Japan's economy remained on a gradual recovery track, with corporate earnings and employment conditions improving. However, uncertainty about the outlook continued because of uncertainty in the global economy and the effects of natural disasters.」

「During the first quarter of the fiscal year under review, Japan's economy remained on a gradual recovery track, with employment and income conditions and corporate earnings showing improvement. However, uncertain conditions, including geopolitical risks, continued in the global economy.」

「During the third quarter of the fiscal year under review, Japan's economy remained on a gradual recovery track, as employment and income conditions continued to improve, personal consumption recovered gradually and corporate earnings improved due to the effects of various government policies. However, conditions remained uncertain, partly because of uncertainty in overseas economies and volatility in financial markets.」

「During the second quarter of the fiscal year under review, Japan's economy remained on a gradual recovery track, as corporate earnings improved and personal consumption began to recover due to the effects of various government policies. However, conditions remained uncertain, partly because of uncertainty in overseas economies.」

「During the third quarter of the fiscal year under review, Japan's economy was on a gradual recovery track, with corporate performance tending to improve because of the effects of economic policies and the weaker yen. However, concerns about a slowdown in overseas economies, particularly emerging markets, remained, and conditions continued to be uncertain.」

「To achieve the targets set out in the 14th medium-term management plan launched this fiscal year, the Group aims to become an engineering company by strengthening its solution-engineering capabilities, its first priority initiative. It is also focusing on expanding business opportunities through its business network and expanding the profitability and business scope of Group companies. In addition, following completion of its new head office building in September 2016, the entire company is working to improve productivity and strengthen profitability through its new creative office.」

「The Group's financial condition and operating results could be affected by the economic environment; force majeure events such as natural disasters, war, terrorism and infectious diseases; regulations imposed by financial markets, the stock market and government authorities; suppliers' supply arrangements; the securing of products; and the securing or loss of human resources.」