Deteriorating Demand Environment Due to a Stronger Yen, Falling Stock Prices and a Slowdown in Overseas Economies

「At the same time, as prices continued to rise, the situation required continued attention to trends in consumer sentiment. In addition, geopolitical risks, including the situation in the Middle East, and associated fluctuations in crude oil prices continue to pose downside risks to the Japanese economy through uncertainty surrounding overseas economies.」

「Meanwhile, with prices continuing to rise, conditions remain such that consumer sentiment requires continued monitoring. In addition, geopolitical risks, including the situation in the Middle East, and resulting fluctuations in crude oil prices and other factors remain downside risks for Japan's economy amid continued uncertainty surrounding overseas economies.」

「At the same time, personal consumption lacked momentum and consumer sentiment remained cautious because of the prolonged rise in prices and the increased burden on households associated with higher domestic interest rates. In addition, global economic uncertainty increased further due to the prolonged armed conflict in Eastern Europe, instability in maritime transport routes caused by escalating tensions in the Middle East, and fluctuations in crude oil prices.」

「Several geopolitical risks, including the prolonged Russian invasion of Ukraine and military tensions in the Middle East, have emerged. These risks could push up raw-material and logistics costs through higher energy prices and constraints on maritime transportation, and could affect the Group's supply chain and transportation network, creating significant uncertainty about the outlook for future performance.」

「Meanwhile, the global economy remains uncertain, with many destabilizing factors affecting external demand, including U.S. tariff policies, heightened tensions in the Middle East and persistently high energy prices in Europe, and these factors are beginning to affect Japanese companies' export businesses.」

「During the fiscal year, Japan's economy gradually recovered as income and employment conditions improved and the effects of various policies began to emerge. Meanwhile, prices rose due to higher raw-material costs and energy costs. In the global economy, numerous uncertainties could affect domestic economic conditions, including an economic slowdown in China, the direction of future U.S. policies, and the Russia-Ukraine situation, creating uncertainty about the outlook for Japan's economy.」

「During the interim consolidated accounting period, Japan's economy was gradually recovering due to improvements in employment conditions and expanding inbound demand. Meanwhile, prices have been rising due to the prolonged increase in raw-material prices, higher logistics costs and the impact of exchange rates reflecting the yen's depreciation trend. The outlook remains uncertain, including the impact of unstable international conditions on Japan's economy.」

「During the cumulative first quarter period, Japan's economy continued on a gradual recovery trend, with increased human mobility driven by increased opportunities to go out following the reclassification of COVID-19 and expanding inbound demand due to rising numbers of visitors to Japan. Meanwhile, domestic prices continued to rise, affected by prolonged increases in raw-material prices, rising labor and logistics costs and historically weak yen levels. In the global economy, numerous uncertainties could affect domestic economic conditions, including monetary policy rates in the United States and Europe, an economic slowdown associated with stagnant real estate conditions in China, and the situations in Ukraine and the Middle East, leaving the outlook for Japan's economy uncertain.」

「Meanwhile, prolonged increases in raw-material costs and energy prices, historically weak yen levels and the resulting rapid rise in domestic prices have continued. In the global economy, numerous uncertainties could affect domestic economic conditions, including the prolonged Russian invasion of Ukraine and rising interest rates in major countries, and the outlook for Japan's economy remains uncertain.」

「During the cumulative third quarter period, Japan's economy was gradually recovering, particularly in personal consumption, against a backdrop of increased opportunities to go out following the reclassification of COVID-19 as a Class 5 infectious disease. Meanwhile, prolonged increases in raw-material costs and energy prices, historically weak yen levels and the resulting rapid rise in domestic prices have continued. In the global economy, numerous uncertainties could affect domestic economic conditions, including the prolonged Russian invasion of Ukraine and rising interest rates in major countries, and the outlook for Japan's economy remains uncertain.」

「During the cumulative second quarter period, Japan's economy was gradually recovering, particularly in personal consumption, against a backdrop of increased opportunities to go out following the reclassification of COVID-19 as a Class 5 infectious disease. Meanwhile, prolonged increases in raw-material costs and energy prices, historically weak yen levels and the resulting rapid rise in domestic prices have continued. In the global economy, numerous uncertainties could affect domestic economic conditions, including the prolonged Russian invasion of Ukraine and rising interest rates in major countries, and the outlook for Japan's economy remains uncertain.」

「During the cumulative first quarter period, Japan's economy has been moving toward normalization, with personal consumption increasing for the fourth consecutive quarter as activity returns to normal following the containment of COVID-19. Meanwhile, prices of essential goods, including energy and food ingredients, continue to rise. In the global economy, numerous uncertainties could affect domestic economic conditions, including the prolonged Russian invasion of Ukraine and rising interest rates in major countries, making the outlook for Japan's economy extremely uncertain.」

「During the fiscal year, Japan's economy was in an uncertain operating environment, with the impact of COVID-19 declining and a recovery in the flow of people expected following the lifting of activity restrictions, while raw-material and logistics costs continued to rise due to soaring global resource prices and the rapid depreciation of the yen.」

「During the cumulative third quarter period, while the impact of COVID-19 continued for an extended period and a recovery in the flow of people was expected following the lifting of restrictions on activities, the Group remained in an uncertain operating environment, with raw-material and logistics costs continuing to rise due to soaring global resource prices and the rapid depreciation of the yen.」

「During the cumulative second quarter period, while the impact of COVID-19 continued for an extended period and a recovery in the economy was expected as the number of infections declined, the Group remained in an uncertain operating environment, with raw-material and logistics costs rising due to soaring global resource prices and the rapid depreciation of the yen.」

「During the cumulative first quarter period, Japan's economy is expected to remain in an uncertain environment due to higher prices for energy, food ingredients and other items resulting from Russia's invasion of Ukraine. The situation also remains such that COVID-19 cannot yet be considered to have ended.」

「During the fiscal year, Japan's economy faced concerns about the impact on energy, mineral and food prices of Russia's invasion of Ukraine, in addition to the COVID-19 pandemic, and trade and supply chains are also expected to be affected. The outlook is expected to remain uncertain.」

「During the cumulative third quarter period, Japan's economy was gradually returning to normal, including the emergence of new variants of COVID-19, but the outlook is expected to remain uncertain.」

「Within our group, some stores have suspended operations due to the closure of facilities where our food-service outlets are located. Depending on how the situation develops, this may affect our group's business activities and ability to secure earnings.」

「During the cumulative third quarter period, Japan's economy continued to face an uncertain outlook due to increasing uncertainty in overseas economies, including trade issues between the United States and China and the UK's withdrawal from the EU, sluggish growth in corporate earnings and personal income, and the expected continuing impact of the government's consumption tax increase.」

「During the cumulative second quarter period, Japan's economy continued on a gradual recovery trend, supported by steady corporate earnings and signs of a recovery in personal consumption against a backdrop of improving employment conditions. However, the outlook continues to be uncertain due to increasing uncertainty in overseas economies, including intensifying trade friction between the United States and China and the UK's withdrawal from the EU, as well as concerns about the impact on personal consumption and other areas of the consumption tax increase to be implemented in October this year.」

「During the cumulative first quarter period, Japan's economy continued on a gradual recovery trend, supported by steady corporate earnings and signs of a recovery in personal consumption against a backdrop of improving employment conditions. However, the outlook continues to be uncertain due to increasing uncertainty in overseas economies, including intensifying trade friction between the United States and China and the UK's withdrawal from the EU, as well as concerns about the impact on personal consumption and other areas of the consumption tax increase planned by the government for October this year.」

「However, the outlook continues to be uncertain due to a rapid increase in uncertainty in overseas conditions, including the rise of protectionism, particularly in the United States and China, the UK's withdrawal from the EU and concerns about slowing economies in emerging countries, particularly China, as well as concerns about the impact on personal consumption and other areas of the consumption tax increase planned by the government for October this year.」

「During the cumulative third quarter period, Japan's economy continued on a gradual recovery trend, supported by steady corporate earnings and signs of a recovery in personal consumption against a backdrop of improving employment conditions. However, the outlook continues to be uncertain due to the rise of protectionism, particularly in the United States and China, and concerns about the impact on personal consumption and other areas of the consumption tax increase planned by the government.」

「During the cumulative second quarter period, Japan's economy continued on a gradual recovery trend, supported by steady corporate earnings and signs of a recovery in personal consumption against a backdrop of improving employment conditions. However, the outlook continues to be uncertain, with the rise of protectionism, particularly in the United States, raising concerns about increasing uncertainty in overseas economies.」

「During the cumulative first quarter period, Japan's economy continued on a gradual recovery trend, supported by steady corporate earnings and signs of a recovery in personal consumption against a backdrop of improving employment conditions. However, the outlook continues to be uncertain, with the rise of protectionism, particularly in the United States, raising concerns about increasing uncertainty in overseas economies.」

「During the fiscal year, Japan's economy was gradually recovering, with corporate earnings improving as a result of various government policies aimed at economic revitalization and signs of a recovery in personal consumption. However, uncertainty in overseas economies has been rising rapidly due to the rise of protectionism, particularly in the United States, and the outlook continues to be uncertain.」

「During the cumulative third quarter period, Japan's economy was gradually recovering, with corporate earnings improving as a result of various government policies aimed at economic revitalization and signs of a recovery in personal consumption. However, uncertainty in overseas economies and the impact on financial and capital markets remain a concern due to political developments in the United States, Europe and East Asia and the rise of protectionism, and the outlook continues to be uncertain.」

「During the cumulative second quarter period, Japan's economy was gradually recovering, with corporate earnings improving as a result of various government policies aimed at economic revitalization and signs of a recovery in personal consumption. However, uncertainty in overseas economies and the impact on financial and capital markets remain a concern due to political developments in the United States, Europe and East Asia and the rise of protectionism, and the outlook continues to be uncertain.」

「During the cumulative first quarter period, Japan's economy was gradually recovering, with corporate earnings improving as a result of various government policies aimed at economic revitalization and signs of a recovery in personal consumption. However, uncertainty in overseas economies and the impact of volatility in financial and capital markets remain a concern due to political developments in the United States and Europe and the rise of protectionism, and the outlook continues to be uncertain.」

「During the cumulative third quarter period, Japan's economy continued to recover gradually amid ongoing improvements in employment and income conditions, although some weakness has recently emerged. However, uncertainty in overseas economies, including the slowdown in China and other emerging Asian economies and the UK's withdrawal from the EU, as well as the impact of volatility in financial and capital markets, remains a concern, and the outlook continues to be uncertain.」

「During the cumulative second quarter period, Japan's economy remained sluggish in terms of both corporate investment and personal consumption due to the continued trend toward yen appreciation and falling share prices since the end of last year and signs of slowing overseas economies, particularly in emerging markets, leaving the economy at a standstill.」

「Against this backdrop, we have worked to develop our human resources, further strengthen existing stores and enhance our internal systems.」