Economic, Foreign Exchange, Regulatory and Security Risks in Overseas Operations

「In China, the slowdown in domestic demand, including housing sales, personal consumption and capital investment, has continued, and difficult conditions persist in the production and sales of Japanese companies.」

「Recently, worsening conditions in the Middle East have affected consumption- and logistics-related activities. However, the impact of the worsening conditions in the Middle East during the fiscal year under review was minor.」

「Although China showed signs of increasing exports to countries other than the United States, sluggish housing sales, personal consumption and appetite for capital investment continued, particularly in domestic demand, resulting in difficult conditions for the production and sales activities of Japanese companies.」

「In general 3PL, storage and transportation operations related to steel products and chemicals increased in Japan, while handling of consumer goods and other products declined. Transportation operations for automotive parts and consumer goods within China also remained weak due to the impact of sluggish domestic demand.」

「In general 3PL, new operations were launched, but transportation operations for automotive parts and consumer goods within China remained weak due to the impact of sluggish domestic demand.」

「In general 3PL, new 3PL operations and other handling increased, but in general logistics, transportation operations for automotive parts and consumer goods within China declined from the previous period due to weak domestic demand in China, while handling of chemical products and consumer goods declined in Japan.」

「In port and international logistics, handling of domestic maritime containers declined, along with yard and storage operations. In addition, maritime and air freight rates in Japan and overseas fell, import and export handling volumes remained weak, and project transportation orders declined. In general 3PL, new 3PL operations and other handling increased, but in general logistics, transportation operations for automotive parts and consumer goods within China remained weak, while handling of chemical products and consumer goods declined in Japan.」

「The Group has established bases such as local subsidiaries in Southeast Asia, East Asia, the United States and Europe, and the Middle East, and is actively expanding its business operations. Accordingly, it may be affected by changes in economic conditions or recessions, exchange-rate fluctuations, unforeseeable changes in laws or regulations, political unrest, or deterioration in public security due to terrorism, war and other factors in these regions.」

「In international logistics, although transportation of large-scale plants in Southeast Asia was delayed, handling of maritime and air freight exports and imports in Japan and overseas increased, and chemical product transportation in the Middle East remained strong.」

「In international logistics, handling of export and import-related operations in Japan and air cargo increased, while logistics for automotive and electronic parts in Southeast Asia and Hong Kong and chemical product transportation in the Middle East recovered.」

「Foreign exchange loss　912」

「In international logistics, there was an increase in overseas project-related transportation and emergency air freight, but import and export handling volumes in Japan and overseas declined due to the impact of COVID-19, while chemical product export operations in the Middle East had not recovered.」

「In international logistics, although project-related transportation from overseas increased, profit declined due to a decrease in import and export handling volumes in Japan and overseas resulting from the impact of COVID-19, compounded by a substantial decline in chemical product export operations in the Middle East.」

「Ordinary income was ¥8,615 million, or 11.9%, as foreign-currency-denominated debt held by overseas subsidiaries was affected by the depreciation of local currencies, resulting in foreign exchange losses」

「In the 3PL business, despite declines in automotive-parts deliveries and consumer-goods logistics in China, revenue and profits increased due to higher domestic transportation volumes for chemical products and consumer goods accompanied by improved delivery unit prices, as well as increased handling of chemical products in Southeast Asia and other factors.」

「Overseas, although some customers brought on-site work in-house, new on-site operations in the Middle East and elsewhere progressed smoothly, expanding earnings across the logistics business as a whole.」

「Overseas, although some customers brought on-site work in-house, new on-site operations in the Middle East progressed smoothly, resulting in higher revenue and earnings across the logistics business.」

「Overseas, although maintenance work declined due to customer withdrawals in Southeast Asia, the machinery engineering business as a whole recorded higher revenue and profit.」

「The Group has established bases such as local subsidiaries in Southeast Asia, East Asia, the United States and Europe, and the Middle East, and is actively expanding its business operations. Accordingly, changes in economic conditions or recessions, exchange-rate fluctuations, unforeseeable changes in laws or regulations, political unrest, or deterioration in public security due to terrorism, war or other factors in these regions may affect the Group's operating performance and financial condition.」

「However, the outlook for the global economy remains uncertain due to concerns about the impact on the overall economy if protectionist U.S. trade policies are pursued, important elections in major eurozone countries and Brexit, as well as concerns in Japan that companies' cautious stance on wage increases may weigh on personal consumption.」

「If changes in economic conditions or recessions, exchange-rate fluctuations, unforeseeable changes in laws or regulations, political unrest, or deterioration in public security due to terrorism, war or other factors occur in individual regions, they may affect the Group's operating performance and financial condition.」