Restrictions on Business and Economic Activity Due to COVID-19

「During the first quarter of the current consolidated fiscal year, Japan's economy saw a return to normal social and economic activity and a recovery in consumer spending following the reclassification of COVID-19 as a Class 5 disease. However, concerns remain over the impact of reduced monetary easing in the United States and other advanced economies, the prolonged situation in Ukraine, and higher procurement prices caused by inflation, leaving the outlook for economic activity uncertain.」

「Although the easing of restrictions on activities related to COVID-19 indicated signs of a recovery in economic activity, concerns remained over the impact of reduced monetary easing in developed countries, including the United States, soaring energy resources prices due to the situation in Ukraine and higher procurement costs due to inflation, leaving the outlook for economic activity uncertain.」

「During the cumulative first quarter, although the impact of partial voluntary restraints on economic activity due to COVID-19 was observed, customers' business activities continued to show movement with an awareness of living with and after COVID-19,」

「During the cumulative third quarter, Japan's economy remained in an extremely difficult and uncertain situation, as personal consumption and corporate earnings continued to deteriorate amid the stagnation and contraction of economic activity due to COVID-19.」

「During the cumulative second quarter, Japan's economy remained in an extremely difficult situation, as the resurgence of COVID-19 led to the application of states of emergency and priority preventive measures in various areas, while personal consumption and corporate earnings continued to deteriorate amid the stagnation and contraction of economic activity.」

「The global spread of COVID-19 continued to affect the economy, resulting in an extremely difficult situation in which personal consumption and corporate earnings continued to deteriorate amid the stagnation and contraction of economic activity. Expectations for the resumption of socioeconomic activity also increased as COVID-19 vaccination programs and other measures progressed, but the pandemic has yet to end, with a resurgence of infections observed, and the economic outlook remained extremely difficult.」

「Although the Group continued to be affected to some extent after the state of emergency was lifted, we were able to limit the impact on the Group's business, operating results, and financial position by promoting the development of telework environments for employees and the active introduction of online business meetings.」

「During the cumulative third quarter, Japan's economy was in an extremely difficult situation as personal consumption and corporate earnings deteriorated rapidly due to the stagnation and contraction of economic activity accompanying the global spread of COVID-19. Economic activity subsequently resumed gradually as a result of government economic stimulus measures and other initiatives, and the economy began to recover. However, a further spread of COVID-19 led to the reissuance of a state of emergency, and there is still no clear end to the pandemic, leaving the outlook for the economy uncertain.」

「During the cumulative second quarter, Japan's economy was in an extremely difficult situation as personal consumption and corporate earnings deteriorated rapidly due to the stagnation and contraction of economic activity accompanying the global spread of COVID-19.」

「The Group's sales activities were subject to certain restrictions as customers were forced to close or work from home following the declaration of a state of emergency due to COVID-19. In addition, as noted above, customers became more cautious about IT investment decisions amid an uncertain economic outlook, affecting both revenue and profit.」

「The spread of COVID-19, which originated in Wuhan, China, significantly changed the business environment as both China and Japan were affected by sharp declines in business travelers and tourists and voluntary restraints on corporate activities.」