Risk of performance volatility arising from economic trends and the order-based sales model

「The economic outlook remains uncertain because of geopolitical risks associated with the situation in the Middle East and protracted international conflicts, concerns about energy supplies, and soaring raw-material prices.」

「However, the outlook remains uncertain amid growing geopolitical risks due to heightened tensions in the Middle East and prolonged international conflicts, as well as increasing concerns about energy supplies.」

「However, the outlook remains uncertain due to unstable international conditions resulting from developments in U.S. trade policy and the prolonged situation between Russia and Ukraine, as well as continued increases in raw material prices.」

「During the interim consolidated accounting period, the Japanese economy was on a gradual recovery path, supported by improvements in employment and income conditions and increased inbound demand. However, the outlook remained uncertain due to the prolonged situation between Russia and Ukraine, heightened tensions in the Middle East, and the impact of domestic and overseas interest-rate developments.」

「During the cumulative third quarter of the fiscal year, following the reclassification of COVID-19 as a Category V infectious disease in early May 2023, restrictions on economic activity, including restrictions on movement and entry, were eased and economic activity moved toward normalization, with signs of a gradual recovery. However, the outlook remained uncertain as the situation between Russia and Ukraine continued and energy resources and raw material prices rose amid the weaker yen.」

「During the cumulative second quarter of the fiscal year, restrictions on economic activity were eased as COVID-19 was reclassified as a Category V infectious disease, and the economy showed signs of a gradual recovery. However, the outlook for the economy remained uncertain due to the prolonged situation between Russia and Ukraine, surging raw material and energy prices, and sharp fluctuations in foreign exchange markets.」

「During the cumulative first quarter of the fiscal year, economic activity showed signs of a gradual recovery as restrictions on movement associated with COVID-19 were eased in stages. However, the outlook remained uncertain due to the prolonged situation between Russia and Ukraine, surging raw material and energy prices, and sharp fluctuations in foreign exchange markets.」

「During the cumulative consolidated third quarter under review, Japan's economy showed signs of a gradual recovery as restrictions on economic activity were eased progressively despite the impact of COVID-19. However, the outlook remains uncertain due to fluctuations in foreign exchange rates caused by the rapid depreciation of the yen, surging resource prices resulting from the Russia-Ukraine situation, disruptions to logistics and semiconductor shortages.」

「During the cumulative first quarter of the fiscal year, signs of a recovery in economic activity began to emerge as progress in COVID-19 vaccinations led to the lifting of priority preventive measures. However, the outlook remained uncertain due to volatility in foreign exchange markets caused by the rapid depreciation of the yen, surging resource prices resulting from the situation between Russia and Ukraine, logistics disruptions and semiconductor shortages.」

「Regarding future economic conditions, the outlook for the economy remains difficult to assess due to the prolonged COVID-19 pandemic, which has yet to be brought under control, as well as the impact of geopolitical risks, including the situation between Russia and Ukraine, and the resulting higher prices, including higher crude oil prices.」

「During the cumulative third quarter of the fiscal year, an economic recovery had been expected as the number of cases fell sharply from October amid progress in COVID-19 vaccinations. However, the emergence of a new variant resulted in renewed concerns about the spread of infections.」

「During the cumulative second quarter of the fiscal year, the prolonged impact of COVID-19 continued to impose severe restrictions on social life in Japan. Although the number of cases subsequently began to decline temporarily and the state of emergency was lifted, economic activity is expected to continue while monitoring developments in infections.」

「During the cumulative first quarter of the fiscal year, the Japanese economy remained in a difficult situation as restrictions on economic activity and sluggish private consumption caused by COVID-19 continued. Although some areas showed signs of recovery, the difficult situation continued due to the emergence of highly transmissible variants and the reintroduction of a state of emergency.」

「During the fiscal year, the Japanese economy remained in an extremely difficult situation as the spread of COVID-19 placed severe restrictions on social and economic activity, resulting in deteriorating corporate earnings and business sentiment, declining private consumption, and a sharp fall in inbound demand. Even after the government's first state of emergency was lifted, progress toward an economic recovery remained slow, and the outlook continued to be uncertain.」

「During the cumulative third quarter of the fiscal year, the Japanese economy remained in a difficult situation as the spread of COVID-19 constrained many social and economic activities. Following a sharp increase in new cases, a state of emergency was declared again from January 2021 for the Tokyo metropolitan area and certain other regions, further increasing uncertainty about the outlook.」

「During the cumulative second quarter of the fiscal year, the Japanese economy remained in an extremely difficult situation as the global COVID-19 pandemic placed severe restrictions on social and economic activity, resulting in deteriorating corporate earnings and business sentiment, declining private consumption, and a sharp fall in inbound demand. Even after the government's state of emergency was lifted, progress toward an economic recovery remained slow, and the outlook continued to be uncertain.」

「During the cumulative first quarter of the fiscal year, the Japanese economy remained in a difficult environment with no clear outlook for economic conditions, as the global COVID-19 pandemic led to travel restrictions and requests for people to refrain from going out, amid concerns about volatility in the domestic and overseas economies and financial and capital markets.」

「During the fiscal year, the Japanese economy remained uncertain, although favorable employment conditions continued and private consumption grew moderately, due to concerns about developments in trade friction between the United States and China and the impact of the spread of COVID-19 on the global economy.」

「During the cumulative third quarter of the fiscal year, the Japanese economy remained on a gradual recovery path amid continued improvements in employment and income conditions. However, the outlook remained uncertain due to concerns about the impact of developments in trade friction between the United States and China on the global economy and increasing uncertainty in overseas conditions.」

「During the cumulative second quarter of the fiscal year, the Japanese economy remained on a gradual recovery path amid continued improvements in employment and income conditions. However, the outlook remained uncertain, with concerns about the impact of developments in trade friction between the United States and China on the global economy and a decline in consumption following the consumption tax increase.」

「During the cumulative first quarter of the fiscal year, the Japanese economy remained on a gradual recovery path, with improvements in corporate earnings and the employment and income environment. However, overseas, the outlook remained uncertain due to U.S. policy developments, trade friction including between the United States and China, and the impact of the financial and capital markets.」

「During the cumulative third quarter of the fiscal year, concerns arose about the impact of a succession of natural disasters on economic activity in Japan. However, the economy continued on a gradual recovery path, supported by improving employment conditions and corporate earnings. Overseas, the outlook remained uncertain due to the impact of U.S. policy developments, trade friction including between the United States and China, and fluctuations in the financial and capital markets.」

「During the cumulative second quarter of the fiscal year, the Japanese economy remained on a gradual recovery path, with improvements in employment conditions and corporate earnings and continued moderate recovery in private consumption. However, overseas, concerns remain about the impact of U.S. policy developments and trade friction, including between the United States and China, on the global economy going forward, and the outlook remains uncertain.」

「During the cumulative first quarter of the fiscal year, the Japanese economy remained on a gradual recovery path, with improvements in employment conditions and corporate earnings and continued moderate recovery in private consumption. However, overseas, concerns remain about the impact of U.S. policy developments and trade friction on the global economy going forward, and the outlook remains uncertain.」

「The IT industry in which the Group operates is characterized by intense technological innovation and price competition and short delivery times. Because the Group conducts order-based sales, its business performance may be significantly affected by economic conditions and other factors during the period.」

「During the cumulative third quarter of the fiscal year, the Japanese economy was on a gradual recovery path, with improvements in employment conditions and corporate earnings, while private consumption was also recovering moderately. However, the outlook remained uncertain, partly due to the impact of U.S. policy developments and economic conditions in Asian countries.」

「During the cumulative second quarter of the fiscal year, the Japanese economy was on a gradual recovery path, with improvements in employment conditions and corporate earnings, among other areas. However, the outlook remained uncertain, partly due to the impact of U.S. policy developments and economic conditions in Asian countries.」

「During the cumulative consolidated first quarter under review, Japan's economy was on a moderate recovery trend, with improvements in employment conditions and corporate earnings. However, the outlook remains uncertain due in part to the policy direction of the new US administration and economic conditions in Asian countries.」

「In addition to concerns over an economic slowdown in China and emerging Asian economies, the outlook remains uncertain due to the impact of the UK's withdrawal from the EU, the transition of the US administration and fluctuations in financial markets.」

「In addition to concerns over an economic slowdown in China and emerging Asian economies, the outlook remains uncertain as the yen has appreciated and stock prices have fallen due to the impact of the UK's withdrawal from the EU.」

「During the three months ended the first quarter, there were no new business or other risks, nor any material changes to the business and other risks described in the securities report for the previous fiscal year.」

「The IT industry in which the Group operates is characterized by intense technological innovation and price competition and short delivery times. Because the Group conducts order-based sales, its business performance may be significantly affected by economic conditions and other factors during the period.」