Risk of Deteriorating Business Performance Due to Market Trends and Economic Fluctuations

「Meanwhile, in addition to persistently high prices, concerns over a downturn in overseas economies stemming from U.S. trade policy and geopolitical risks, as well as volatility in financial and capital markets, continue to make the outlook uncertain.」

「However, the economic outlook remained uncertain due to persistently high prices and rising labor and other costs, fluctuations in exchange rates and the financial and capital markets, U.S. policy developments, and heightened geopolitical risks, including the prolonged situations in the Middle East and Ukraine.」

「During the six-month interim accounting period, the Japanese economy showed a moderate recovery trend against a backdrop of improving employment and income conditions and expanding inbound demand. However, downside risks from overseas factors, including high interest rates in Europe and the United States, a slowdown in the Chinese economy, U.S. trade policy, and conditions in the Middle East, persisted. There were also concerns over the impact on consumer sentiment of higher prices due to the weak yen and higher resource and logistics costs, and the outlook remained uncertain.」

「The outlook remained uncertain due to geopolitical risks, including higher crude oil and materials prices, higher prices resulting from exchange-rate fluctuations, the Ukraine crisis, and deteriorating conditions in the Middle East.」

「During the six-month interim accounting period, there were signs of some recovery in economic activity due to increased inbound demand, higher personal consumption resulting from improved income conditions, and the effects of various policies. However, the outlook remained uncertain due to higher resource prices caused by unstable international conditions, higher prices accompanying rapid exchange-rate fluctuations, and the impact of volatility in the financial and capital markets.」

「During the cumulative first quarter under review, the Japanese economy continued to recover moderately as socioeconomic activity normalized and inbound demand recovered. However, the outlook remained uncertain amid numerous concerns, including unstable international conditions due to heightened geopolitical risks and higher resource prices and prices rising against a backdrop of the weakening yen.」

「During the fiscal year under review, the Japanese economy continued to recover moderately as socioeconomic activity normalized, but there was still no prospect of an end to the global trend of higher energy and raw material prices. International instability and the weakening yen also persisted, and the economic outlook remained uncertain.」

「During the cumulative third quarter under review, the Japanese economy continued to recover moderately as socioeconomic activity normalized, but the outlook remained unpredictable amid numerous concerns, including higher global raw material prices, global monetary tightening, inflation driven by the weak yen, and concerns over the outlook for the Chinese economy.」

「There were also continuing concerns over a slowdown in the global economy, including persistent inflation due to the prolonged elevation of resource prices caused by the weak yen and higher resource prices, and stagnation in economic activity resulting from policy rate hikes to contain inflation. The outlook for the Japanese economy remained uncertain.」

「Because the Company's terminal solutions business sells IoT products and provides related services, as well as SaaS services, it is affected by trends in the IoT solutions, digital signage, and SaaS services markets.」

「During the cumulative second quarter under review, the Japanese economy remained in difficult conditions amid the prolonged impact of COVID-19, despite progress in vaccinations and other developments, due to supply constraints including semiconductors, higher raw material prices, and sharp exchange-rate fluctuations. There were also continuing concerns over a slowdown in the global economy, including rising resource prices due to the situation in Ukraine and Russia and supply chain disruptions, as well as the possibility of a renewed spread of infections from variants such as Omicron, and the outlook for the Japanese economy remained increasingly uncertain.」

「During the cumulative first quarter under review, the Japanese and global economies remained in difficult conditions despite signs of recovery in some areas due to measures addressing COVID-19, owing to supply constraints including semiconductors, higher raw material prices, and sharp exchange-rate fluctuations. The impact of Russia's invasion of Ukraine was also a concern, and uncertainty over the outlook for the Japanese economy increased.」

「However, in the Platform, Planning & Product business (the "PPP business"), the signage business for beauty salons has taken longer than expected to see advertisers' willingness to place advertisements recover amid the nationwide spread of COVID-19. In addition, semiconductor shortages caused by the global shortage to deplete semiconductors essential for manufacturing the Company's existing and new products sold to other media platforms. There is no clear prospect of an end to rising costs or longer lead times for product deliveries, and uncertainty over order and delivery timing in business negotiations had a significant impact on sales activities.」

「The company's business may also be affected by the spread of COVID-19 through sluggish demand for DOOH advertising, difficulty managing overseas contract manufacturers due to restrictions on international travel, and longer procurement lead times for products due to the global semiconductor shortage.」

「During the cumulative first quarter under review, the Japanese economy remained uncertain, as repeated declarations of a state of emergency in response to the spread of COVID-19 affected personal consumption and economic activity.」

「Because the Group's terminal solutions business sells IoT products and provides related services, as well as offering media platform services, it is affected by trends in the IoT-related, advertising, and digital signage markets.」

「During the cumulative third quarter under review, the Japanese economy saw deterioration in personal consumption, capital investment, and corporate earnings in response to the spread of COVID-19.」

「During the cumulative second quarter under review, the Japanese economy experienced a significant downturn, including declines in production activity and personal consumption, due in part to the spread of COVID-19.」

「Because the Group's terminal solutions business sells IoT devices and provides related services, it is affected by trends in the IoT-related market. Accordingly, the business environment could deteriorate due to an economic downturn in that market or obsolescence of the Group's products resulting from technological innovation, which could affect the Group's business and earnings.」

「However, the economic outlook remained uncertain due to downside risks including slower growth in emerging-market economies, the situation in Europe, economic tensions between the United States and China, and deteriorating Japan-South Korea relations.」

「However, the economic outlook remained uncertain due to downside risks including slower growth in emerging-market economies, the situation in Europe, and economic tensions between the United States and China.」

「However, the economic outlook remained uncertain due to downside risks including slower growth in emerging-market economies, the situation in Europe, and economic tensions between the United States and China.」

「Accordingly, the business environment could deteriorate due to an economic downturn in the market or obsolescence of the Group's products resulting from technological innovation, which could affect the Group's business and earnings.」

「Against a backdrop of the expansion of IP broadcasting and OTT (Over the Top) video content distributed over internet connections, such as Netflix and YouTube, as well as an increase in new business hotel construction starts, the global STB market in the video distribution field, where the Group has strengths, is expected to expand from ¥168.0 billion in 2016 to ¥188.0 billion in 2017. Sales of the Group's IoT devices and provision of related services are also expected to progress steadily. However, the business environment in this field could deteriorate due to economic fluctuations or rapid changes in industry trends, which could affect the Group's business and earnings.」