Risk from fluctuations in private-sector economic conditions and government budgets

「一方で、長期化する物価上昇に加え、為替相場をはじめとする金融市場の変動、中東情勢などの世界的な地政学リスク、さらには自然災害による影響など、先行きは依然として不透明な状況が続いております。」

「During the current interim consolidated fiscal period, the domestic economy entered a moderate recovery trend, supported by improvements in employment and income conditions and an increase in visitors to Japan. However, events that could have a significant impact on corporate activity and people’s livelihoods, including the effects of US tariff policy and surging resource, energy and raw material prices, have raised concerns, and the outlook for the economy remains uncertain.」

「During the current interim consolidated fiscal period, the domestic economy entered a moderate recovery trend, supported by improvements in employment and income conditions and an increase in visitors to Japan. However, the outlook for the economy remains uncertain due to the continuing depreciation of the yen, rising prices, difficulties procuring materials, financial market developments and the situation in the Middle East.」

「During the first six months of the current consolidated fiscal year, the domestic economy continued on a moderate recovery trend as economic activity normalised following the easing of COVID-19 countermeasures and wages rose.」

「During the first quarter of the current consolidated fiscal year, restrictions on activity were eased, including through the reclassification of COVID-19 as a Class 5 disease, and economic activity gradually began to resume toward pre-pandemic levels. Meanwhile, the rapid depreciation of the yen and shortages of materials and higher prices, driven in part by the situation between Russia and Ukraine, continued to cast a significant shadow over people’s livelihoods. In addition, concerns about an economic downturn have emerged as countries tighten monetary policy to curb inflation and financial institutions fail, leaving the outlook unstable.」

「During the current consolidated fiscal year, the domestic economy showed signs of normalisation as restrictions on activity related to COVID-19 were gradually eased. However, resource, energy and raw material prices continued to rise, driven in part by the situation in Ukraine, casting a significant shadow over people’s livelihoods. In addition, concerns about a global economic downturn have emerged as countries tighten monetary policy to curb inflation, and the outlook remains uncertain.」

「In addition to the impact of COVID-19, the outlook remains uncertain due to factors including surging resource prices, procurement difficulties and the rapid depreciation of the yen associated with geopolitical risks such as the prolonged crisis in Ukraine.」

「During the first quarter of the current consolidated fiscal year, restrictions on activity were eased as the number of COVID-19 cases declined, and economic activity gradually resumed. However, the outlook remains unstable, with the rapid depreciation of the yen and shortages of materials and higher prices, driven by factors including the situation between Russia and Ukraine, becoming social issues.」

「During the first six months of the current consolidated fiscal year, the domestic economy continued to be severely affected by the spread of COVID-19 and the prolonged state of emergency. Meanwhile, signs of a recovery have emerged as vaccination progresses in Japan and overseas and regulatory easing has gradually expanded with the increase in vaccination rates.」

「During the first quarter of the current consolidated fiscal year, the domestic economy continued to be severely affected, as there was still no clear end to the spread of COVID-19 and a third state of emergency was declared. Although measures to prevent the spread of infection, including the rollout of vaccines in Japan and overseas, have been implemented and signs of a recovery have emerged, the outlook remains uncertain.」

「Our group’s revenue declined year on year due to lower unit sales of mobile devices, a decrease in large-scale projects for government agencies, and lower orders from Mitsubishi Electric Corporation received by our subsidiary 西菱電機エンジニアリング株式会社, among other factors.」

「During the third quarter of the current consolidated cumulative period, social and economic activity remained restricted by the spread of COVID-19. Although economic activity resumed temporarily, there was still no prospect of containment. The renewed increase in infections continued to significantly affect corporate production and investment activities and personal consumption, leaving the economic outlook increasingly difficult.」

「During the second quarter of the current consolidated cumulative period, social and economic activity was restricted by the spread of COVID-19, significantly affecting corporate production and investment activities and personal consumption. Although economic activity was gradually resuming following the lifting of the state of emergency, the economic outlook became increasingly uncertain owing to concerns about a second wave and the impact on markets of behavioural changes based on the new way of living.」

「Under these conditions, the Group’s revenue declined owing to a significant decrease in mobile-device sales volumes, reflecting the impact of restrictions on activities associated with the spread of COVID-19. Ordinary profit and loss deteriorated because of the significant decline in revenue, despite improvements in the profit margin and reductions in fixed costs associated with the restrictions on activities.」

「During the third quarter of the current consolidated cumulative period, the domestic economy showed a moderate improvement amid continued improvements in employment and income conditions, but the outlook remained unstable owing to concerns including a slowdown in private consumption resulting from the consumption tax increase. The global economy also remained uncertain, with increasing uncertainty over concerns about an economic slowdown, including developments surrounding US-China trade issues and the United Kingdom’s withdrawal from the EU.」

「In the industries related to the Group, the information and communications devices business is undergoing major changes in its market environment, including higher device prices resulting from the mainstreaming of unbundled plans, growth in the MVNO market and the transition to 5G. In the information and communications systems business, the development and strengthening of social infrastructure to protect the public’s safe and secure daily lives is required in light of the frequent torrential rain disasters and earthquake damage.」

「During the first quarter of the current consolidated cumulative period, the domestic economy continued on a moderate recovery path, supported by improvements in corporate earnings and solid employment conditions. The global economy remained uncertain, however, with numerous factors of concern, including intensifying trade friction centred on the United States that could affect the global economy.」

「In the private-sector market, fluctuations in economic conditions, and in the public-sector market, budget conditions, may affect the Group’s financial position, operating results and other aspects of performance.」

「During the third quarter of the current consolidated cumulative period, the domestic economy continued on a moderate recovery path, supported by continued demand for capital investment against a backdrop of solid improvements in corporate earnings. The global economy was also recovering and regaining momentum, led by the continued strength of the US economy. However, uncertainty continued to increase amid concerns about an economic slowdown, including the US-China trade friction and the United Kingdom’s withdrawal from the EU, leaving the outlook uncertain.」

「During the second quarter of the current consolidated cumulative period, the domestic economy expanded moderately, with improvements in corporate earnings and employment conditions as the government and the Bank of Japan advanced various measures. Meanwhile, the global outlook remained uncertain, including owing to policy management in advanced economies and developments concerning North Korea.」

「During the first quarter of the current consolidated cumulative period, the domestic economy remained on a moderate recovery path, supported by continued improvements in corporate earnings and employment conditions and a trend toward higher capital investment. The overseas economy also remained firm, led by the United States and Europe, but the outlook remained uncertain amid concerns about the impact of unstable political developments overseas and geopolitical risks in neighbouring countries.」

「During the third quarter of the current consolidated cumulative period, the domestic economy showed signs of a moderate recovery, including improvements in corporate earnings and employment conditions, as the government and the Bank of Japan advanced various measures. However, the outlook remained uncertain owing to concerns about the global economy, including uncertainty surrounding policy management in advanced economies.」

「During the second quarter of the current consolidated cumulative period, the domestic economy showed signs of a moderate recovery, including improvements in corporate earnings and employment conditions, as the government and the Bank of Japan advanced various measures. Meanwhile, the global outlook remained uncertain, including owing to policy management in advanced economies and developments concerning North Korea.」

「During the first quarter of the current consolidated cumulative period, the domestic economy remained on a moderate recovery path, as private consumption gradually showed signs of recovery amid continued improvements in employment and income conditions. However, the overseas economy remained uncertain owing to factors including the slowdown in emerging-market economies and concerns about political developments in Europe and the United States.」

「In the industries related to the Group, in the information and communications devices business, the smartphone and tablet market is undergoing structural change. Shipments of mobile devices declined for 4 consecutive years from 2012, while the MVNO and used-device markets expanded, making richer content and more diverse services key to differentiation.」

「The outlook remained uncertain, with signs of stagnation in private consumption and corporate earnings.」

「Although employment and income conditions have improved, the recovery has slowed because private consumption lacks strength amid a growing preference for saving.」

「In the private-sector market, fluctuations in economic conditions, and in the public-sector market, budget conditions, may affect the Group’s financial position, operating results and other aspects of performance.」