Global Business Risks Related to Political and Regulatory Developments, Social Disruption, Natural Disasters and Other Factors

「ホルムズ海峡封鎖に伴うルート変更や燃料費の増加、港湾混雑等による運航コストの上昇等により、利益水準が低下しました。」

「The Group is affected by security and geopolitical instability arising from conflicts and terrorism around the world, including the recent situation involving Iran, Russia and Ukraine, as well as tighter regulations and sanctions imposed by various countries. In the Red Sea and Gulf of Aden, where tensions are escalating, and in the Strait of Hormuz, the Group has suspended the navigation of its vessels.」

「VLCC（大型原油タンカー）：市況は大西洋域の貨物需要の増加や中東情勢の緊迫によりホルムズ海峡が事実上封鎖された影響等を受け、前年度を上回りました。」

「Uncertainty in the global economy has increased due to the trade policies and other measures of the Trump administration, which took office in January 2025, and this may affect the performance of the Group.」

「In the automobile business, port congestion, the impact of the situation in the Middle East and higher cargo-handling costs were observed, but the Group worked to maintain the number of vehicles transported through optimal vessel deployment planning and vessel operations.」

「In the Red Sea and Gulf of Aden, where the situation has become tense due to successive attacks by the Houthis, we have suspended the navigation of our group’s vessels.」

「During the third quarter of the current consolidated cumulative period, no significant events requiring changes to the matters concerning business and other risks described in Part I, Corporate Information, Section 2, Business Conditions, 3. Risks Relating to the Business and Other Risks, of the securities report for the previous fiscal year occurred.」

「The situation involving Russia and Ukraine may affect the consolidated financial statements from the second quarter of the current consolidated fiscal year onward, but it is currently difficult to reasonably estimate the financial impact.」

「Our group is affected by conflicts and terrorism around the world, including the Middle East, and by the situation involving Russia and Ukraine, including heightened security concerns and geopolitical instability, tighter regulations in various countries and strengthened sanctions.」

「In the energy business segment, an extraordinary loss was recorded in connection with LNG transportation for the Sakhalin II project and other projects as a result of measures taken in response to the situation involving Russia and Ukraine.」

「In the air transportation business, cargo movements declined due to lockdowns in China, a global economic slowdown and a weakening trend of shifting some ocean cargo to air transportation. The business was also affected by factors including persistently high fuel oil unit prices against the backdrop of the situation involving Russia and Ukraine.」

「In the energy business segment, LNG carriers recognized a special loss of approximately ¥17.8 billion related to the transportation of LNG from the Sakhalin II project, due to deterioration in the business environment resulting from the Russia-Ukraine situation.」

「In the container shipping business, strong cargo demand continued, while disruption across the entire supply chain originating from the spread of the novel coronavirus disease remained unresolved, resulting in strong market conditions throughout the year. In the fourth quarter, the business was affected by the situation involving Russia and Ukraine, but freight market rates continued to rise amid tight supply and demand, and ONE’s performance remained solid.」

「During the third quarter of the current consolidated cumulative period, no significant events requiring changes to the matters concerning business and other risks described in Part I, Corporate Information, Section 2, Business Conditions, 2. Risks Relating to the Business and Other Risks, of the securities report for the previous fiscal year occurred.」

「During the first quarter of the current consolidated cumulative period, no significant events requiring changes to the matters concerning business and other risks described in Part I, Corporate Information, Section 2, Business Conditions, 2. Risks Relating to the Business and Other Risks, of the securities report for the previous fiscal year occurred.」

「Air cargo movements in the market declined due to the spread of the novel coronavirus disease.」

「In the fourth quarter, the novel coronavirus disease spread across broad areas of the world and began affecting the operations of each of our businesses, but its impact on performance for the consolidated fiscal year was limited.」

「For VLCCs (very large crude carriers), the risk of deploying vessels to the Middle East increased following tanker attack incidents near the Strait of Hormuz in May and June, and an attack by unmanned aircraft on Saudi Arabian oil facilities in September.」

「In the air transportation business, measures were implemented in accordance with the improvement plan addressing the past improper maintenance of consolidated subsidiary Nippon Cargo Airlines Co., Ltd. All aircraft had returned to service by the end of the previous fiscal year and were operating. Although transport weight increased from the same quarter of the previous year, demand declined due to the impact of the US-China trade dispute and other factors, resulting in lower cargo load factors and freight rates and the recording of a loss.」

「Transport weight declined due to a significant decrease in air cargo demand originating in Japan and Asia, against the backdrop of the US-China trade dispute and other factors.」

「Our group is affected by risks arising from conflicts and terrorism around the world, including the Middle East, the North Korea issue, and deteriorating relations between the United States and the international community, as well as security concerns and geopolitical instability, including the Venezuela issue.」

「The domestic shipping business was affected by typhoons and earthquakes, and although the number of voyages declined, it maintained strong earnings supported by solid cargo movements.」

「The activities of our group extend across the world and may be affected by economic conditions and other factors in each region. Specifically, several of the risks listed below are inherent in our operations.」

「The activities of our group extend across the world and may be affected by economic conditions and other factors in each region. Specifically, inherent risks include political and economic factors, public regulations, war, riots, terrorism, piracy, epidemics, strikes, computer viruses and natural disasters.」

「In Europe, the UK’s withdrawal from the EU was decided by the referendum held on 23 June, resulting in an unstable economic environment, including declines in share prices and the pound. In Japan, the Kumamoto earthquake caused disruptions including shipment delays following the suspension of operations at some production facilities.」

「The activities of our group extend across the world and may be affected by economic conditions and other factors in each region.」