Economic and cost deterioration due to trade friction and higher crude oil prices

「During the fiscal year, Japan's economy remained in a situation requiring close attention to the outlook, due to heightened geopolitical risks arising from tensions in the Middle East and diplomatic relations with neighbouring countries, fluctuations in the financial and capital markets, and the impact of continued inflation on the real economy. Meanwhile, despite continuing uncertainty over US trade policy, AI-related investment, including the construction of new data centres accompanying the spread of generative AI, expanded, while improvements in employment and income conditions, particularly among major companies, provided support, and the economy remained generally firm.」

「During the interim accounting period, a continued moderate recovery in the economy is expected against the backdrop of improving income conditions and increased inbound demand. However, close attention is required to the impact of continued inflation on personal consumption, uncertainty surrounding domestic political developments and future economic policy, and fluctuations in the financial and capital markets.」

「During the cumulative third quarter of the fiscal year, Japan's economy recovered moderately, with signs of improvement in personal consumption and capital investment. However, the impact of higher energy and raw material prices, rising prices and heightened global tensions on the domestic economy remained uncertain.」

「During the cumulative second-quarter period, Japan’s economy was gradually recovering as socioeconomic activity normalized following the easing of restrictions on activities related to COVID-19. Meanwhile, downside risks to the global economy increased due to the prolonged situation in Ukraine and concerns about a slowdown in the Chinese economy, while the domestic economy remained uncertain amid inflationary trends including yen depreciation and higher prices.」

「During the cumulative first quarter of the fiscal year, Japan's economy entered a moderate recovery trend as economic activity moved toward normalisation following the easing of activity restrictions related to COVID-19. However, the outlook remained uncertain due to the prolonged situation involving Russia and Ukraine and rising prices.」

「During the fiscal year, Japan's economy continued to show signs of recovery despite the impact of the COVID-19 pandemic. However, the outlook remained uncertain, with concerns about downside risks from higher global resource prices due to supply chain disruptions and the situation in Ukraine.」

「During the cumulative third quarter of the fiscal year, socioeconomic activity moved toward normalisation despite the impact of the COVID-19 pandemic. However, concerns remained about downside risks from surging resource prices due to the prolonged situation in Ukraine and inflation caused by the weaker yen, and the outlook remained uncertain.」

「During the cumulative second quarter of the fiscal year, Japan's economy showed signs of a moderate recovery as COVID-19 vaccinations became more widespread and activity restrictions were eased. However, inflation driven by geopolitical risks and the rapid depreciation of the yen continued, and the outlook remained uncertain, with concerns about downside risks to the economy.」

「During the cumulative first quarter of the fiscal year, Japan's economy showed signs of normalisation as restrictions on activity, including the priority measures to prevent the spread of the COVID-19 pandemic, were lifted. However, the outlook remained uncertain due to inflation caused by surging global resource prices, the rapid depreciation of the yen, and the risk of a renewed spread of COVID-19 infections due to the emergence of new variants.」

「During the fiscal year, Japan's economy continued to show signs of recovery despite the impact of the COVID-19 pandemic. However, the outlook remained uncertain, with concerns about downside risks from higher global resource prices due to supply chain disruptions and the situation in Ukraine.」

「During the first nine months of the current fiscal year, Japan's economy remained uncertain due to the spread of COVID-19 after the Tokyo Olympics, the emergence of variants and soaring resource prices. Although the state of emergency and priority preventive measures were lifted at the end of September 2021 and signs of recovery emerged in the flow of people and consumption, infections caused by the highly transmissible Omicron variant began to spread again, leaving the timing of the end of the COVID-19 pandemic uncertain.」

「During the first six months of the current fiscal year, the spread of COVID-19 led to the declaration of the fourth state of emergency. The flow of people and economic activity were restricted, including the holding of many Tokyo Olympic events without spectators, and difficult conditions continued, particularly in the food service and travel industries. At the same time, there were signs of improvement, such as a slowdown in the rate of infection spread as vaccinations progressed.」

「During the first quarter of the current fiscal year, Japan's economy was in an extremely difficult situation as economic activity was restricted by the global spread of COVID-19. Although economic activity gradually began to resume following the lifting of the state of emergency, uncertainty persisted, with signs of another increase in infections emerging.」

「Meanwhile, the global economy has deteriorated rapidly due to the impact of the COVID-19 pandemic, while Japan's economic environment has become extremely challenging, with corporate earnings deteriorating significantly amid stagnation in socioeconomic activity.」

「During the cumulative third quarter of the fiscal year, economic uncertainty increased further due to global risks including stagnation in shipments of industrial products caused by natural disasters, the impact of the consumption tax rate increase, and trade friction between the United States and China.」

「During the cumulative second quarter of the fiscal year, uncertainty increased further, mainly due to global risks including trade friction between the United States and China, resulting in slower exports and lower capital investment.」

「During the cumulative first quarter of the fiscal year, Japan's economic outlook deteriorated due to concerns about overseas conditions and the consumption tax increase, among other factors.」

「During the fiscal year, Japan's economy continued to recover moderately, but the outlook remained uncertain due to global risks including stagnation in shipments of industrial products caused by natural disasters and trade friction between the United States and China.」

「During the cumulative third quarter of the fiscal year, downside risks to the economy increased, including stagnation in shipments of industrial products due to natural disasters and global risks such as trade friction between the United States and China.」

「During the cumulative second quarter of the fiscal year, Japan's economy remained on a moderate recovery trend, but uncertainty increased, mainly due to global risks including trade friction between the United States and China.」

「The digital marketing market in which our group operates has continued to grow steadily. The systems market has expanded, including marketing automation (MA), which automates marketing tailored to customer attributes, and data management platforms (DMPs), which centrally manage big data and log data from proprietary websites, while corporate demand for support in introducing tools and systems has also increased. Against this backdrop, from 1 April 2018 our group transitioned to a new organisational structure and implemented measures to strengthen sales capabilities, improve profitability by further strengthening project management systems as in the previous fiscal year, and improve productivity through enhanced employee training and a better work-life balance for employees.」