Impact of deterioration in the Kyushu regional economy on business scale and credit risk

「The Kyushu economy, the Group's operating base, was affected by US tariff policy, the weaker yen and higher prices, but corporate capital investment remained at a high level and personal consumption remained firm.」

「The economy of Kyushu, the Group's operating base, saw increased capital investment in both manufacturing and non-manufacturing industries, driven by new and expanded facilities by companies, particularly those related to semiconductors, and development in the central areas of cities in each prefecture. In addition, services spending such as dining out and accommodation increased as the number of visitors to Japan recovered and inbound demand remained strong.」

「In the first quarter of the fiscal year, Japan's economy recovered moderately as COVID-19 was reclassified under the Infectious Diseases Control Law and restrictions on socioeconomic activity were eased. Personal consumption increased, particularly in face-to-face services such as dining out and travel, while production and exports, including automobiles, showed signs of recovery as semiconductor supply constraints eased.」

「In fiscal 2022, Japan's economy recovered moderately as efforts to balance containment of COVID-19 with economic activity progressed. In Kyushu, FFG's operating base, personal consumption continued to recover, supported by government demand stimulus measures such as the National Travel Assistance scheme and the recovery in inbound tourism, while corporate capital investment remained firm.」

「Personal consumption benefited from an increase in domestic travel due in part to the government's demand stimulus program, the National Travel Assistance scheme, while inbound demand recovered as border measures were eased and the yen depreciated.」

「In Kyushu, the Group's operating base, personal consumption gradually recovered, particularly spending on services such as dining out and travel, despite the effects of COVID-19 and other factors.」

「In Kyushu, the Group's operating base, conditions remained challenging due to COVID-19 and the impact of the July 2020 torrential rains in Kyushu. However, as the global economy recovered, production and exports, particularly those related to automobiles and semiconductors, showed signs of recovery. Personal consumption had gradually recovered since the lifting of the state of emergency in April 2020, but the resurgence of COVID-19 in the second half of the fiscal year intensified downward pressure, particularly on services consumption such as dining and accommodation.」

「In the Kyushu region, exports and production of automobiles to the United States and semiconductors to East and Southeast Asia showed signs of recovery. Private consumption also showed signs of recovery, but conditions continued to be affected by the COVID-19 pandemic.」

「In the Kyushu region, the operating base of the Group, private consumption showed signs of a moderate recovery despite the effects of the July 2020 heavy rains and the COVID-19 pandemic, while production and exports, particularly automobile-related exports, also showed signs of recovery as the Chinese economy recovered.」

「In the Kyushu region, the operating base of the Group, exports and production of automobiles, semiconductors, and other products fell sharply due to supply-chain disruptions and sluggish external demand. Private consumption also remained weak as a result of mobility restrictions imposed to prevent the spread of the pandemic.」

「The Kyushu region, the operating base of FFG, continued to expand moderately, supported by strong capital investment. However, in the second half of the fiscal year, inbound demand declined due to worsening Japan-South Korea relations, personal consumption weakened following the consumption tax increase, and the spread of COVID-19 resulted in weak conditions, particularly in exports, production and personal consumption.」

「As the Group's operating base is centered on Kyushu, including Fukuoka, Kumamoto and Nagasaki prefectures, a deterioration in the regional economy could prevent the Group from expanding its business scale and increase credit risk, adversely affecting the Group's business performance and financial position.」

「As the Group's operating base is centered on Kyushu, including Fukuoka, Kumamoto and Nagasaki prefectures, a deterioration in the regional economy could prevent the Group from expanding its business scale and increase credit risk, adversely affecting the Group's business performance and financial position.」