Risk of slower market growth due to changes in economic conditions and financial sentiment

「The outlook for the economy remains uncertain due to concerns arising from continued inflation and labor shortages, as well as an unstable international situation, including tensions in the Middle East and U.S. tariff policies. Consumers are increasingly concerned about their household finances and future planning.」

「In addition to receiving many inquiries prompted by changes in economic conditions and household finances, the Group was in a favorable sales environment for insurance and investment products that contribute to asset building, supported by strong interest in asset building and the macroeconomic environment.」

「During the interim consolidated accounting period, the stock market was beginning to regain stability while the outlook for U.S. tariff policy remained uncertain. At the same time, prices continued to rise, and consumers' concerns about their current household finances and future planning continued to grow.」

「During the consolidated fiscal year, while the direction of foreign exchange and stock markets remained uncertain amid concerns about the global economic outlook, prices continued to rise, and consumers' concerns about their current household finances and future planning continued to grow.」

「During the interim consolidated accounting period, the yen had been on a weakening trend, but the decision by the Bank of Japan to raise its policy rate and other factors led to rapid changes in the macroeconomic environment, including turmoil in the stock market caused by the yen's sharp appreciation. This has also heightened consumers' concerns about asset building and future planning.」

「The yen's depreciation and elevated prices, against a backdrop of the interest-rate differential with Western countries, continued during the cumulative third quarter, leaving the outlook for households uncertain.」

「During the cumulative second quarter, although the Bank of Japan sought to review its interest-rate policy, the interest-rate differential with Western countries persisted. The yen's depreciation and higher prices, driven mainly by that differential, left the outlook for households uncertain.」

「During the cumulative first quarter, the interest-rate differential between Japan and Western countries that emerged in the previous year remained wide. Against a backdrop of the yen's depreciation and higher prices, the outlook for Japan's economy and households remained uncertain.」

「However, future economic conditions in Japan and changes in consumers' awareness and behavior regarding finance could cause market growth to slow when new financial services emerge, which could affect the Group's financial position and operating results.」

「During the cumulative third quarter, as Japan sought an exit strategy from the COVID-19 pandemic, the interest-rate differential with Japan's Western counterparts widened due in part to differences in the pace of monetary policy. As a result, the yen's depreciation and higher prices continued, making the outlook for Japan's economy and households increasingly uncertain.」

「During the cumulative second quarter, Japan's economy was on a recovery trend as the easing of restrictions on activities progressed, despite the lingering effects of COVID-19. At the same time, pressure for higher prices accompanying the yen's depreciation has made household prospects increasingly uncertain.」

「However, future economic conditions in Japan and changes in consumers' awareness and behavior regarding finance could cause market growth to slow when new financial services emerge, which could affect the Group's financial position and operating results.」