Slump in the real estate and housing markets and decline in advertising spending

「If various real estate transactions stagnate and advertising placements in the real estate and housing industries decline significantly due to an economic downturn, a substantial increase in interest rates, changes in housing-related tax policies or other unforeseen factors, this could affect the financial condition and operating results of the Group.」

「During the six-month period ended [current second quarter], Japan's economy remained uncertain due to rising prices resulting from the yen's depreciation, although economic conditions remained firm, as demonstrated by the Nikkei Stock Average reaching a new all-time high.」

「In May 2023, COVID-19 was reclassified as a Class 5 disease under the Infectious Diseases Control Law, easing restrictions on people's activities and creating signs of a recovery in economic activity. However, the possibility of another increase in infections remains, and the outlook continues to be uncertain. If economic activity were to stagnate over an extended period beyond the Company's assumptions, restrictions on in-person sales activities could disrupt the Company's business activities and affect its financial condition and operating results.」

「During the nine-month period ended [current third quarter], Japan's economy showed a gradual recovery as social and economic activity normalized, including the scheduled reclassification of COVID-19 as a Class 5 disease under the Infectious Diseases Control Law. Meanwhile, due to soaring prices, particularly energy prices, and deteriorating overseas economic conditions, social and economic conditions remain uncertain.」

「Meanwhile, the environment surrounding Japan's economy has become increasingly challenging due to concerns over a global economic recession resulting from soaring global energy and food prices, monetary tightening in the United States, Europe and other countries, and other factors.」

「As of the date of filing, the timing of the end of the COVID-19 pandemic remains uncertain. If the spread of COVID-19 does not subside in Japan and other major countries overseas and continues for several years, restrictions on in-person sales activities could disrupt the Company's business activities and affect its financial condition and operating results.」

「During the nine-month period ended [current third quarter], Japan's economy remained in a situation where social and economic activity continued while infection risk was being reduced as the vaccination rate increased, amid a renewed spread of COVID-19 and continued uncertainty over when it would subside. There are also concerns about the effects of economic sanctions imposed by governments in response to Russia's invasion of Ukraine, and the outlook remains uncertain due to surging raw material and fuel prices, the depreciation of the yen and other factors.」

「Meanwhile, although signs of a normalization of economic activity emerged as vaccination coverage progressed while the effects of COVID-19 continued, infections have recently been spreading again due to the emergence of new variant strains, and the outlook remains uncertain.」

「Meanwhile, Japan's economy continues to be affected by the stagnation of economic activity caused by COVID-19. Although the resumption of economic activity is expected to bring the pandemic under control as vaccination progresses, the outlook for its impact on domestic economic conditions and corporate earnings remains uncertain, as variant strains that could pose new threats have been identified.」

「As of the date of filing, the timing of the end of the COVID-19 pandemic remains uncertain. If the spread of COVID-19 does not subside in Japan and other major countries overseas and continues for several years, restrictions on in-person sales activities could disrupt the Company's business activities and affect its financial condition and operating results.」

「The internet industry and online advertising market surrounding the company are expected to continue growing steadily, driven by the spread of mobile internet, particularly smartphones, and the expansion of social networking services (SNS). Meanwhile, during the cumulative third quarter, Japan's economy was forced to slow as COVID-19 showed no sign of ending and repeated government declarations of a state of emergency led to calls for people to refrain from going out and restrictions on event attendance. The outlook remains uncertain because of concerns about rapid changes in economic activity and a further spread of infections.」

「Although measures to prevent the spread of COVID-19, including the start of vaccination against the disease, are being implemented, infections are spreading again, and the outlook for the domestic and global economies remains uncertain.」

「The outlook for the domestic and global economies remains uncertain, as there is still no clear prospect of the COVID-19 pandemic ending and a state of emergency was declared on 7 January 2021.」

「If the COVID-19 outbreak spreads rapidly in the future, restrictions on face-to-face sales activities could prolong problems arising from the spread of infection, disrupting the company's business activities and potentially affecting its financial position and operating results.」

「During the cumulative third quarter, there were no new business or other risks, nor any material changes to the business and other risks described in the annual securities report for the previous fiscal year. As of the filing date of this document, the impact of the spread of COVID-19 on the company's business and performance was limited, although the company will continue to monitor the impact.」

「Amid the global spread of COVID-19, concerns about an economic downturn and uncertainty about the outlook have increased.」

「If real estate demand weakens and advertising placements in the real estate and housing industries decline substantially because of an economic downturn, a significant rise in interest rates, changes in housing tax policy or other unforeseen factors, this could affect the company's financial position and operating results.」