Risk of business continuity disruptions and declining demand due to the spread of COVID-19

「During the cumulative third quarter of the consolidated fiscal year, restrictions on economic activity related to COVID-19 were eased in Japan, economic and social activity moved toward normalization, and signs of an economic recovery emerged. However, factors including heightened international tensions and the negative impact of higher prices due to increased labor and logistics costs led to the assessment that the economic recovery was moderate.」

「During the six-month period ended 30 September of the current fiscal year, the normalization of economic activity progressed in Japan, partly because COVID-19 was downgraded to Category 5 under the Infectious Diseases Control Law.」

「Although the easing of various restrictions following COVID-19's reclassification under the Infectious Diseases Control Law as a Class 5 disease led to a gradual recovery, the economic outlook remained uncertain due to downside risks from higher prices and risks of deterioration in the global economy resulting from the prolonged situation in Ukraine.」

「Measures taken by governments in response to the global spread of COVID-19 had a substantial impact on domestic and international logistics related to the group's business and on the production systems of its business partners, and the group was also affected by restrictions on some sales activities. However, if a global pandemic occurs in the future, the group's assets and employees could be directly harmed, potentially affecting its business activities.」

「During the nine-month period ended 31 December of the current fiscal year, the Japanese economy was gradually recovering as restrictions on economic activity were eased while society continued to operate under COVID-19 conditions.」

「During the six-month period ended 30 September of the current fiscal year, the Japanese economy generally remained on a recovery track as restrictions on economic activity related to COVID-19 were eased.」

「Restrictions on economic activity were gradually eased as measures to prevent the spread of COVID-19 were implemented and third-dose vaccination became more widespread, and the economy showed a gradual, albeit moderate, recovery trend.」

「Although the group has been affected by restrictions on some sales activities, the impact of COVID-19 on its performance for the fiscal year ended March 2022 was minor.」

「During the cumulative third quarter of the consolidated fiscal year, economic activity gradually resumed in Japan as the state of emergency and priority preventive measures were lifted, alongside rising global vaccination rates. However, with concerns about the global spread of the Omicron variant from December onward, economic conditions in Japan and overseas were expected to remain difficult again.」

「During the cumulative second quarter of the consolidated fiscal year, difficult conditions continued in Japan due to the impact of repeated declarations of a state of emergency following the renewed spread of COVID-19. Conditions showed some improvement as global vaccination rates rose, but the resumption of economic activity remained gradual, and the economic outlook in Japan and overseas was expected to remain uncertain.」

「During the cumulative first quarter of the consolidated fiscal year, the Japanese economy gradually began to recover, supported by increased exports amid the recovery of overseas economies, particularly in developed countries, and the gradual normalization of social activity as access to COVID-19 vaccinations expanded. However, as concerns about a renewed spread of infections persisted, economic activity was expected to continue being restricted and reopened repeatedly for the time being, and the economic outlook was expected to remain uncertain.」

「During the cumulative third quarter of the consolidated fiscal year, the number of COVID-19 cases in Japan temporarily leveled off and signs of a gradual resumption of economic activity emerged, but cases began rising rapidly again across the country from the end of the previous year, and the economy remained in difficult conditions. Overseas, measures restricting economic activity, including movement restrictions and store closures, were again seen, and the timing of the end of the pandemic remained uncertain both domestically and overseas, raising concerns that difficult economic conditions would continue.」

「During the cumulative second quarter of the consolidated fiscal year, signs of economic activity resuming emerged in Japan despite efforts to prevent the spread of COVID-19, and the economy gradually began to recover, led by personal consumption. Overseas, restrictions on economic activity, including movement restrictions and store closures, were eased, and an economic recovery is expected. However, the timing of the end of the pandemic remains uncertain, and there are concerns that domestic and overseas economic conditions could again deteriorate if infections spread again.」

「During the cumulative first quarter of the consolidated fiscal year, the Japanese economy entered a difficult period marked by a rapid slowdown due to the disappearance of inbound demand following the global spread of COVID-19 and restrictions on activities by companies and individuals. Overseas, countries also moved to restrict economic activity through measures such as movement restrictions and store closures, raising continued concerns about a severe downturn in economic conditions both domestically and overseas.」

「Measures taken by governments around the world in response to the global COVID-19 pandemic have had a significant impact on domestic and international logistics related to the Group's business and the production systems of its business partners. The Group has also been affected, including through restrictions on some sales activities.」