Uncertainty in the business environment due to slowing overseas economies and yen appreciation

「Although there have been some moves toward a temporary resolution of the situation in the Middle East, concerns that it may become protracted have also emerged. Together with the continuing Russian invasion of Ukraine and the deterioration in relations with China, geopolitical risks are expected to remain elevated for the time being. Trade and monetary policy risks in the United States and other countries have also increased, and uncertainty is expected to persist, including volatility in resource and energy prices, inflation, interest rates, foreign exchange rates and equity markets.」

「Although there have been some moves toward a temporary resolution of the situation in the Middle East, concerns that it may become protracted have also emerged. Together with the continuing Russian invasion of Ukraine and the deterioration in relations with China, geopolitical risks are expected to remain elevated for the time being. Trade and monetary policy risks in the United States and other countries have also increased, and uncertainty is expected to persist, including volatility in resource and energy prices, inflation, interest rates, foreign exchange rates and equity markets.」

「In the second quarter (six-month interim period) of the fiscal year ending February 2027, geopolitical risks, including heightened tensions in the Middle East, remained elevated in the cosmetics industry. Although demand appeared to remain firm, shipments by domestic cosmetics manufacturers showed signs of stagnation, including increased imports and the postponement of some new product launches.」

「Geopolitical risks have increased, including the prolonged Russian invasion of Ukraine, deteriorating relations with China, and escalating tensions in Latin America and the Middle East. Policy risks in various countries, including U.S. trade policy, have also risen.」

「Geopolitical risks have increased, including the prolonged Russian invasion of Ukraine, deteriorating relations with China, and escalating tensions in Latin America and the Middle East. Policy risks in various countries, including U.S. trade policy, have also risen.」

「Geopolitical risks, including the prolonged Russian invasion of Ukraine and conditions in the Middle East, remain elevated, while policy risks in various countries, including trade policy, have risen following the change in the U.S. administration. In addition, higher and volatile resource and energy prices, inflation, and volatility in interest rates, foreign exchange and equity markets are affecting economic activity and increasing uncertainty about the outlook.」

「The Russian invasion of Ukraine has become protracted, and geopolitical risks remain elevated amid worsening conditions in the Middle East. Higher resource and energy prices and logistics delays have spread into global inflation, including in Japan, and have also caused exchange-rate volatility through their impact on monetary policy in various countries, affecting economic activity and increasing uncertainty about the outlook.」

「Overseas economies have followed divergent paths: Europe and the United States are on a moderate growth trajectory despite the impact of inflation and monetary tightening, while China's economy lacks strength as domestic demand weakens against a backdrop of a property downturn. Meanwhile, the Russian invasion of Ukraine has become protracted, and geopolitical risks remain elevated amid worsening conditions in the Middle East. Higher resource and energy prices and logistics delays have spread into global inflation and higher interest rates, including in Japan, while also causing exchange-rate volatility, affecting economic activity and increasing uncertainty about the outlook.」

「Meanwhile, the Russian invasion of Ukraine has become protracted, and geopolitical risks have increased amid heightened tensions in the Middle East. Higher resource and energy prices and logistics delays have spread into global inflation and higher interest rates, including in Japan, causing exchange-rate volatility, affecting economic activity and increasing uncertainty about the outlook.」

「The Russian invasion of Ukraine has become protracted, and higher resource and energy prices and logistics delays have spread into global inflation and higher interest rates, including in Japan, affecting economic activity.」

「In countries overseas as well, lifestyles adapted to living with and after COVID-19 have become established, and its impact on daily life and the economy has eased significantly. However, the Russian invasion of Ukraine, which began in February 2022, has become protracted, particularly causing higher resource and energy prices and logistics delays in Europe, spreading globally into inflation and higher interest rates, and uncertainty about its impact on economic activity and the outlook continues.」

「The impact of COVID-19 on daily life and the economy has eased significantly. However, the Russian invasion of Ukraine, which began in February 2022, has become protracted, particularly causing higher resource and energy prices and logistics delays in Europe, spreading globally into inflation and higher interest rates, and uncertainty about its impact on economic activity and the outlook continues.」

「Although the impact of COVID-19 on daily life and the economy has eased, uncertainty about the outlook continues. The Russian invasion of Ukraine, which began in February 2022, has become protracted, particularly causing higher resource and energy prices and logistics delays in Europe, spreading globally into inflation and higher interest rates, and uncertainty about its impact on economic activity and the outlook continues.」

「Although the impact of COVID-19 on daily life and the economy has gradually eased, the outlook remains uncertain, with China's continued zero-COVID policy having adverse global effects on the economy and logistics. The Russian invasion of Ukraine, which began in February, has become protracted, particularly causing higher resource and energy prices and logistics delays in Europe, spreading globally into inflation and higher interest rates and increasing its impact on economic activity and uncertainty about the outlook.」

「China's zero-COVID policy continued to have adverse effects globally on the economy and logistics, and the outlook remained uncertain as developments related to COVID-19 continued to affect people's lives and the economy. The Russian invasion of Ukraine, which began in February, subsequently expanded and showed signs of becoming protracted. Through higher global resource and energy prices and logistics delays, it has had an increasing impact on economic activity, and concerns remain that its effects will persist.」

「The Russian invasion of Ukraine added a new source of uncertainty, raising concerns about the impact of global logistics delays, higher prices and other factors on economic activity.」

「In Europe and the United States, lockdowns were lifted as vaccinations progressed, and conditions varied by region and country depending on the pace of vaccination. However, uncertainty about the outlook continued, including due to the emergence of the Omicron variant.」

「As COVID-19 resurged in the fourth and fifth waves, Japan declared its third and fourth states of emergency covering major cities. Although vaccinations had begun and progressed, COVID-19 continued to have a significant impact on economic activity in Japan and overseas, and the economic downturn continued.」

「Japan declared its third state of emergency in April 2021 as COVID-19 infections resurged. Although vaccinations had begun, COVID-19 continued to have a significant impact on economic activity in Japan and overseas, and the economic downturn continued.」

「Japan declared states of emergency in April 2020 and January 2021, while lockdowns were repeatedly imposed in Europe and the United States. Although vaccinations had begun, uncertainty about the outlook continued.」

「Following the lifting of the state of emergency, there were signs of partial recovery in domestic economic activity. However, the spread of the third wave could not be contained, and the outlook remains uncertain.」

「In France as well, economic activity has been depressed by the renewed spread of COVID-19, forcing the company to operate in an environment that remains challenging.」

「The global spread of COVID-19 had a significant impact on global economic activity.」

「However, with inbound demand sluggish and COVID-19 infections spreading globally from January 2020, the cosmetics market is expected to remain in an uncertain situation.」

「In Japan's cosmetics market, the market environment remains fluid due to factors including the implementation of China's E-Commerce Law, political instability in Hong Kong and the weaker Chinese yuan, although inbound spending by visitors to Japan appears to remain firm.」

「In Japan's domestic cosmetics market, the market environment showed fluid aspects due to the implementation of China's e-commerce law, US-China trade friction, the depreciation of the Chinese yuan and other factors.」

「Growth in Europe, where conditions varied by country, remained weak, and growth in North America showed signs of slowing, while solid growth continued in China and Asia.」

「Growth in Europe remained weak and growth in North America showed signs of slowing, while solid growth continued in China and Asia.」

「Although signs of slowing growth emerged in the European and North American cosmetics markets, the Chinese and Asian markets continued to grow solidly, maintaining a moderate expansion trend.」

「Overseas cosmetics markets varied by region and country. Growth remained weak in Europe and North America, while China and Asia maintained solid growth momentum.」

「Although market growth slowed in China and other Asian and emerging markets, overseas cosmetics markets continued to expand moderately overall.」

「During the three months ended 30 June, Japan's economy continued on a moderate recovery trend, as improving corporate earnings across a broad range of industries and stable foreign exchange rates led to a broader recovery in business sentiment, while personal consumption remained firm. Signs of a virtuous economic cycle began to emerge. In overseas cosmetics markets, uncertainty about the outlook in Europe and the United States eased, and the European and Americas markets grew moderately, while markets in Asia and China also remained solid.」

「On a yen basis, however, sales declined slightly due to the impact of yen appreciation and euro depreciation. As a result, net sales for the consolidated fiscal year were ¥1,734 million, down 0.9% year on year.」

「During the nine months ended 31 December, personal consumption in Japan was beginning to recover against a backdrop of improving employment and income conditions. Exports, particularly to Asia, increased, and capital investment remained solid, indicating a generally moderate recovery trend.」

「Although some countries showed signs of recovery, economic growth continued to slow in many Asian and emerging-market countries.」

「During the six months ended 30 September, Japan's economy showed signs of stalling in its recovery, with weakness in exports and capital investment despite higher personal consumption. Conditions of heightened uncertainty continued due to the slowdown in overseas economies, yen appreciation and other factors.」

「Conditions of heightened uncertainty have continued due to the slowdown in overseas economies, yen appreciation and other factors.」