Downside risks to the economy from the Russia-Ukraine situation, yen depreciation, and soaring raw material prices

「Protracted conflicts in other countries and increasing geopolitical risks have kept energy and resource prices elevated and destabilized supply chains, and uncertainty about the outlook continues amid persistent upward pressure on domestic prices.」

「During the interim accounting period, Japan's economy showed a gradual recovery trend, supported by improvements in employment and income conditions and rising inbound demand. However, the outlook remained uncertain due to changes in US policies, persistently high resource and energy prices and other factors.」

「During the fiscal year, Japan's economy showed signs of recovery as social and economic activity became more robust, employment and income improved, and inbound demand recovered. However, personal consumption remained weak because stagnant real wages resulting from higher prices caused by higher raw material prices and yen depreciation, together with uncertainty in the international situation and other factors, and the economic outlook remained uncertain.」

「During the interim accounting period, downside economic risks increased amid global monetary tightening, volatility in financial and capital markets, higher raw material prices and other factors, and uncertainty about the outlook continued.」

「If concerns about higher costs for the small and medium-sized enterprises targeted by our company increase as a result of inflation caused by higher raw material prices, interest rate increases and other factors, and an economic downturn, this may affect their willingness to invest in customer acquisition and recruitment advertising, potentially affecting our business and performance.」

「During the cumulative nine-month period, restrictions on economic activity related to COVID-19 were eased and an economic recovery was expected. However, as monetary tightening progressed globally, downside economic risks increased owing to volatility in financial and capital markets and surging raw material prices, and the outlook remained uncertain.」

「During the cumulative six-month period, restrictions on economic activity related to COVID-19 were eased and an economic recovery was expected. However, as monetary tightening progressed globally, downside economic risks increased owing to volatility in financial and capital markets and surging raw material prices, and the outlook remained uncertain.」

「During the cumulative three-month period, restrictions on economic activity related to COVID-19 were eased and an economic recovery was expected. However, as monetary tightening progressed globally, downside economic risks increased owing to volatility in financial and capital markets and surging raw material prices, and the outlook remained uncertain.」

「During the cumulative nine-month period, restrictions on economic activity related to COVID-19 were eased and an economic recovery was expected. However, as monetary tightening progressed globally, downside economic risks increased owing to volatility in financial and capital markets and surging raw material prices, and the outlook remained uncertain.」

「During the cumulative six-month period, restrictions on economic activity related to COVID-19 were eased and an economic recovery was expected. However, as monetary tightening progressed globally, downside economic risks increased owing to volatility in financial and capital markets and surging raw material prices, and the outlook remained uncertain.」

「However, the DX market in which we operate is expected to reach ¥5.1957 trillion in 2030 (Note 2), and interest in and demand for DX are becoming firmly established across society. We believe this will continue to provide a tailwind for the company.」