Regulatory, Foreign-Exchange and Political/Economic Risks Associated with Overseas Expansion

「Revenue was ¥89.007 billion, down 0.3% year on year, as revenue-decreasing factors, including lower air cargo handling volumes in international operations and reduced handling volumes resulting from fewer international passenger flights in airport-related operations, outweighed other factors.」

「Meanwhile, the outlook remains uncertain, with various changes in the economic environment overlapping, including continued price increases resulting from the persistence of yen depreciation and chronic labor shortages, sluggish personal consumption, higher import tariffs imposed by the United States, worsening Japan-China relations and heightened tensions in the Middle East.」

「In expanding its overseas operations, although tariffs have had an impact, FSNL Private Ltd., newly consolidated from the previous fiscal year, has generally progressed as planned in expanding handling volumes, improving efficiency and implementing PMI. The company is working to establish a stable earnings base while responding to high levels of demand.」

「Although warehouse and transport volumes increased in India, Thailand, the United States and elsewhere, the negative effects of declining demand for ocean and air freight and freight market conditions were significant, resulting in revenue of ¥59,136 million, down 15.8% from the previous consolidated fiscal year.」

「Although warehouse and transport volumes increased in the United States, India, Thailand and elsewhere, the negative effects of declining demand for ocean and air freight and freight market conditions were significant, resulting in revenue of ¥42,992 million, down 21.5% year on year. Profit was ¥2,334 million, down 11.9%, due mainly to lower volumes handled.」

「Although warehouse and transport volumes increased in the United States, India, Thailand and elsewhere, the effects of declining demand for ocean and air freight and lower freight rates were significant, resulting in revenue of ¥28,197 million, down 20.7% year on year. Profit was ¥1,532 million, down 17.5%, due mainly to lower volumes handled.」

「Although warehouse and transport volumes increased and large projects were secured in the United States, India, Thailand and elsewhere, demand for ocean and air freight declined and freight rates fell, resulting in revenue of ¥13,917 million, down 18.8% year on year. Profit was ¥761 million, down 12.0%, due mainly to lower volumes handled.」

「Although international flight operations have gradually begun to recover, the recovery of flights to China is expected to take more time because of Japan’s tighter border-control measures, despite China’s shift away from its zero-COVID policy.」

「The outlook remains uncertain due to factors including the impact of the prolonged situation in Ukraine on resource and energy prices, the rapid depreciation of the yen and the renewed spread of infections caused by new variants.」

「These businesses are affected in each region by laws and regulations, foreign-exchange rates, and social, political and economic trends, among other factors. The company may also face obstacles related to overseas business practices and cultures in areas such as collecting receivables, building and expanding relationships with business partners, and managing employees.」

「Profit was ¥667 million, down 28.0% year on year, due to lower collection volumes for the European market and the slowdown in air cargo demand associated with US-China trade friction, among other factors.」

「In the international logistics business, revenue was ¥23,578 million, up 28.3% year on year, due to the contribution of the Hong Kong forwarding company BEL INTERNATIONAL LOGISTICS LTD., which was consolidated in the previous fiscal year, as well as increases in equipment dismantling and installation operations. Profit was ¥535 million, down 15.1% year on year, due to lower collection volumes for the European market, a slowdown in air cargo demand resulting from US-China trade friction, and the economic slowdown caused by the prolonged Hong Kong protests.」

「In the international logistics business, revenue was ¥11,762 million, up 27.9% year on year, due to the contribution of the Hong Kong forwarding company BEL INTERNATIONAL LOGISTICS LTD., which was consolidated in the previous fiscal year, as well as increases in equipment dismantling operations and gas-turbine export operations to the US. Profit was ¥210 million, down 38.8% year on year, due to the slowdown in the eurozone economy and other factors.」

「In addition, expanding overseas businesses may require a long period and substantial funds before investment returns are realized, and expenses from investments may exceed the resulting increase in revenue.」

「Looking ahead, there are concerns that the impact of trade issues such as US-China trade friction on the global economy may persist and expand, further slowing the domestic economy.」

「Looking ahead, there are concerns about the impact of trade issues such as US-China trade friction on the global economy, but Japan’s economy is expected to continue its gradual recovery as the effects of natural disasters subside.」

「Looking ahead, there are concerns about the impact of developments in trade issues on the global economy and the economic impact of the torrential rains in July, but a gradual economic recovery is expected to continue.」

「These businesses are affected in each region by laws and regulations, foreign-exchange rates, and social, political and economic trends, among other factors. The company may also face obstacles related to overseas business practices and cultures in areas such as collecting receivables, building and expanding relationships with business partners, and managing employees.」

「The company expects the recovery trend to continue, led by strong domestic demand, despite downside risks to external demand including rising geopolitical risks, particularly concerning North Korea, and concerns about a slowdown in the US economy due to monetary tightening.」

「The company expects a gradual recovery to continue, despite downside risks including US trade policy and rising geopolitical risks in Europe.」

「Downside risks to the economy remain, including rising uncertainty in the global economy resulting from the UK’s decision to leave the EU and policy uncertainty under the new US administration,」

「Revenue was ¥16,217 million, down 3.7% year on year, due to lower revenue at overseas subsidiaries resulting from yen appreciation.」

「Uncertainty in the external-demand environment has also increased, with concerns including stock price declines and further yen appreciation following the decision to leave the EU in the UK referendum held in late June, and difficult conditions are expected to continue.」

「These businesses are affected in each region by laws and regulations, foreign-exchange rates, and social, political and economic trends, among other factors.」