Domestic Economic Conditions and Changes in Along-the-Line Demand

「In addition to continued increases in labor costs and construction costs accompanying advancing inflation, the worsening situation in the Middle East has resulted in higher power and fuel costs, as well as rising material prices and supply constraints, particularly for housing equipment.」

「原油価格の高騰などによる業績への影響は、今回計画では加味していない」

「The Group is currently being affected by a substantial increase in construction costs resulting from the prolonged rise in labor costs and the prices of materials and raw materials, as well as by higher domestic interest rates, but will continue implementing every possible measure to improve efficiency and reduce costs.」

「During the cumulative third quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that management recognizes could materially affect the financial position, operating results and cash flows of the consolidated companies, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」

「During the cumulative second quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that management recognizes could materially affect the financial position, operating results and cash flows of the consolidated companies, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」

「During the three-month period ended 30 June 2023 (1 April 2023 to 30 June 2023), the Japanese economy continued to recover, supported by the normalization of socioeconomic activity following the reclassification of COVID-19 to Category 5 under the Infectious Diseases Control Law in May. However, risks that could weigh on personal consumption, including rising prices and the depreciation of the yen, require continued close attention.」

「Sluggish consumption, declines in the value of owned assets, rising material and raw material costs, and supply shortages may affect the Group's operating results and financial condition. The Group is currently being affected by higher energy prices and increases in the prices of materials and raw materials resulting from Russia's invasion of Ukraine.」

「During the nine-month period ended 31 December 2022 (1 April 2022 to 31 December 2022), the Japanese economy showed signs of a gradual recovery as restrictions on activities related to COVID-19 were eased and economic activity normalized. However, close attention must be paid to domestic and international developments, including a downturn in overseas economies resulting from monetary tightening in the US and Europe and elsewhere, rising prices, and infection trends in China.」

「During the six-month period ended 30 September 2022 (1 April 2022 to 30 September 2022), the Japanese economy entered a gradual recovery trend as efforts to control COVID-19 while maintaining economic activity progressed, but concerns over an economic slowdown continued due to factors including globally rising prices and the rapid depreciation of the yen.」

「During the three-month period ended 30 June 2022 (1 April 2022 to 30 June 2022), the Japanese economy showed signs of recovery as restrictions on activities related to COVID-19 were eased, but concerns over an economic slowdown continued due to factors including higher raw material prices resulting from the situation in Ukraine and sharp fluctuations in foreign exchange rates.」

「Sluggish consumption, lower selling prices, reduced rents for leased real estate, a sluggish tourism market, declines in the value of owned assets, and increases in raw material prices and energy prices, including electricity and light diesel fuel costs, due to the situation in Ukraine may affect the Group's operating results and financial condition.」

「After the state of emergency was lifted at the end of September, demand for travel and lodging improved substantially from the same period of the previous year, but had not reached a full recovery. The Company therefore needed to closely monitor changes in consumer behavior and their effects as infections began to spread rapidly again.」

「During the six-month period ended 30 September 2021 (1 April 2021 to 30 September 2021), the Japanese economy showed some signs of recovery, but a full-fledged recovery remained elusive as the state of emergency was extended through the end of September in response to the spread of variant strains of the virus.」

「The Group's business activities were substantially affected, particularly in April and May, by the sharp decline in visitors to Japan, people refraining from going out, shortened operating hours, and temporary closures. Thereafter, the level of socioeconomic activity increased and demand-boosting measures such as the "Go To Campaign" supported a gradual recovery, but the business environment remains severe and difficult to predict, with infections currently spreading again.」

「As a result, consolidated operating revenue declined in every segment other than Other businesses, to ¥138.249 billion, down 36.5% year on year, while consolidated operating loss was ¥16.481 billion.」

「The Group's business activities were also significantly affected by the decline in international visitors to Japan and people refraining from going out, as well as shortened operating hours and temporary closures implemented in connection with the declaration of a state of emergency.」

「The spread of the novel coronavirus caused a sharp decline in visitors to Japan, while personal consumption also stagnated as people refrained from going out, resulting in a substantial impact, including lower sales, on the Group's business activities.」

「During the nine-month period ended 31 December 2019 (1 April 2019 to 31 December 2019), the Japanese economy remained on a moderate recovery trend as employment and income conditions continued to improve, but the outlook remained uncertain due to factors including US-China trade tensions, natural disasters, and the effects of the consumption tax rate increase.」

「During the cumulative second quarter, no new business or other risks arose. In addition, there were no material changes to the business and other risks described in the securities report for the previous fiscal year.」

「During the cumulative first quarter, there were no newly arising business or other risks. There were also no material changes in the business and other risks described in the securities report for the previous fiscal year.」

「There were no newly arising business or other risks during the nine-month period ended 31 December. In addition, there were no material changes to the "Business and Other Risks" described in the annual securities report for the previous fiscal year.」

「During the cumulative second quarter, no new business or other risks arose. In addition, there were no material changes to the business and other risks described in the securities report for the previous fiscal year.」

「During the cumulative first quarter, there were no newly arising business or other risks. There were also no material changes in the business and other risks described in the securities report for the previous fiscal year.」

「Sluggish consumption, lower selling prices, reduced rents for leased real estate, a sluggish tourism market, declines in the value of owned assets, and increases in raw material prices and energy prices, including electricity and light diesel fuel costs, may affect the Group's operating results and financial condition.」

「During the cumulative third quarter, there were no newly arising business or other risks. There were also no material changes in the business and other risks described in the securities report for the previous fiscal year.」

「No new business or other risks arose during the six-month period of the current consolidated fiscal year. There were also no material changes to the “Business and Other Risks” described in the securities report for the previous fiscal year.」

「During the cumulative first quarter, there were no newly arising business or other risks. There were also no material changes in the business and other risks described in the securities report for the previous fiscal year.」

「Sluggish consumption, lower selling prices, reduced rents for leased real estate, a sluggish tourism market, declines in the value of owned assets, and increases in raw material prices and energy prices, including electricity and light diesel fuel costs, may affect the Group's operating results and financial condition.」

「During the cumulative third quarter, there were no newly arising business or other risks. There were also no material changes in the business and other risks described in the securities report for the previous fiscal year.」

「Sluggish consumption, lower selling prices, reduced rents for leased real estate, and declines in the value of owned assets may affect the Group's operating results and financial condition.」