Impact of COVID-19 on Demand and Business Continuity

「Consolidated revenue increased 8.5% year on year to ¥63,719 million. The Property and Global businesses achieved double-digit growth through the expansion of assistance services, while revenue also increased in the Automotive business, the Group's core business. The Financial Guarantee business also drove revenue growth through an increase in the number of contracts, overcoming the impact of the winding down of vaccine-related operations.」

「The economy entered a moderate recovery trend as behavioral restrictions were lifted following the reclassification of COVID-19 as a Category V infectious disease in May 2023, and inbound demand recovered.」

「Higher use of services attached to overseas travel insurance as the economy recovered from the COVID-19 pandemic, together with increased use of local businesses, mainly in the Philippines and India, including Japanese Help Desks providing support for medical consultations at medical institutions, contributed to revenue of ¥550 million, up 71.6% year on year.」

「During the first quarter under review (1 April 2023 to 30 June 2023), the global economy saw a faster recovery in the movement of people, partly due to the reclassification of COVID-19 as a Category V infectious disease, and growth in personal consumption became even more pronounced.」

「Revenue was ¥479 million, up 41.1% year on year, as the number of corporate expatriates showed signs of recovery after the COVID-19 pandemic, while the number of users of local medical institutions and support desks within those institutions increased.」

「The global business, which provides claims-agent services for overseas travel insurance and medical support services for expatriates, was affected by lockdowns in parts of East Asia, but the number of service users increased steadily as economic activity picked up, making the recovery trend increasingly clear.」

「Consolidated revenue for the first quarter was ¥12,611 million, up 17.9% year on year, reflecting recovering economic activity and increased demand, centered on the Automotive and Customer businesses, although the impact of COVID-19 remained.」

「In the Group's overseas businesses, the number of customers using its services was trending upward, but remained below pre-pandemic levels. The Company expects the overseas businesses to continue to be affected, albeit to a limited extent, during the fiscal year ending March 2023.」

「In the economic environment surrounding the Group during the third quarter (1 October 2021 to 31 December 2021), difficult conditions persisted due to lower automobile production caused by parts shortages and higher costs resulting from rising resource prices, including crude oil. Personal consumption, however, showed signs of recovery in foot traffic and consumer sentiment following the lifting of long-standing restrictions on activities, the domestic vaccination rate reaching nearly 80% for 2 doses, and the continued low number of new infections. Nevertheless, the emergence of variant strains near the end of the quarter meant that conditions remained uncertain, and the Company stated that developments in the Japanese economy would continue to require close monitoring.」

「During the period, the resurgence of COVID-19 infections and the continuing public-health measures taken in response kept personal consumption subdued. Toward the end of the quarter, the fifth wave of infections showed signs of subsiding, but the overall outlook for the economy remained highly uncertain. In addition to tight semiconductor supplies, automakers were affected by parts shortages resulting from the resurgence of COVID-19 in Southeast Asia, causing domestic vehicle production and sales to plunge.」

「In the economic environment surrounding the Group during the first quarter (1 April 2021 to 30 June 2021), the global economy continued to be affected by COVID-19. In Japan, personal consumption remained weak, although the decline appeared to have bottomed out. Going forward, the Company expects the progress of vaccination to lead to a full recovery in personal consumption.」

「The Company expects it to take approximately 2 to 3 years to return to economic and social activity levels comparable to those before the pandemic.」

「In the economic environment surrounding the Group during the third quarter (1 October 2020 to 31 December 2020), infections with COVID-19 began spreading again, and conditions rapidly worsened, making it increasingly necessary for authorities in Japan and overseas to issue states of emergency and impose lockdowns. Uncertainty is therefore expected to intensify again.」

「In Asia and Oceania, revenue was ¥230 million, down 41.8% year on year, as overseas travelers, including business travelers, tourists and international students, had virtually stopped traveling and the business was limited to serving existing customers.」

「Consolidated revenue for the first quarter was ¥9,473 million, down 5.3% year on year, as corporate and individual activity declined due to the impact of COVID-19.」

「The following risks have materialized as a result of the spread of COVID-19, which emerged in 2020.」