Economic Conditions in Japan and Kyushu and Demand Fluctuations Caused by Consumption Tax Increases

「In addition, domestic and international conditions, including foreign exchange fluctuations, the emergence of political risks, increasing geopolitical risks including in the Middle East, natural disasters and extreme weather, and infectious disease outbreaks, may lead to fluctuations in the number of foreign visitors to Japan, particularly from neighboring Asian countries and regions such as South Korea, China, Taiwan and Hong Kong, changes in procurement prices for materials and energy, and disruptions to supply chains.」

「In addition, domestic and international conditions, including the recent impact of tariffs imposed by the United States and other countries, foreign exchange market conditions, political factors, natural disasters, extreme weather, accidents and infectious disease outbreaks, may affect the number of tourists from overseas, particularly from neighboring Asian countries and regions such as South Korea, China, Taiwan and Hong Kong, as well as fluctuations in procurement prices for materials and energy.」

「During the first nine months of the current fiscal year, Japan's economy showed signs of recovery, centred on personal consumption, as employment and income conditions improved. However, the economic outlook is expected to remain somewhat uncertain due to the effects of rising prices and fluctuations in financial and capital markets, among other factors.」

「During the cumulative second quarter of the current consolidated fiscal year, Japan's economy showed signs of recovery, particularly in personal consumption and capital investment, amid improvements in employment and income conditions. However, due to factors including higher raw material prices resulting from the weaker yen and fluctuations in financial and capital markets, we expect the economic outlook to remain somewhat uncertain.」

「Under the three-year JR Kyushu Group Medium-Term Management Plan 2022-2024, which began last year, we have pursued the three key strategies of “completing business structure reform,” “creating a rich community development model,” and “developing businesses in new areas of contribution,” while focusing on “developing human resources responsible for executing and realizing the strategies” and “building a foundation for promoting the strategies as one group,” which support the execution of the key strategies.」

「However, due to the effects of factors including higher raw material prices resulting from the prolonged situation in Ukraine and the further weakening of the yen, we expect uncertainty about the economic outlook to persist.」

「During the first six months of the current fiscal year, Japan's economy showed signs of a gradual recovery centred on personal consumption as restrictions on activities were eased and socioeconomic activity moved towards normalisation, despite the continuing impact of COVID-19. However, the economic outlook is expected to remain uncertain due to the effects of rising raw-material prices associated with the prolonged situation in Ukraine and yen depreciation, among other factors.」

「The outlook for the economy remains uncertain, as the number of new COVID-19 cases turned upward from late June and the effects of rising raw-material prices associated with the prolonged situation in Ukraine and other factors have emerged. The Group expects its operating environment to remain challenging.」

「The Group may also be affected by domestic and overseas conditions, including foreign-exchange trends, political factors such as the situation involving Russia and Ukraine, natural disasters, abnormal weather, accidents and infectious-disease outbreaks. These factors may cause fluctuations in the number of tourists from overseas, particularly South Korea, China, Taiwan, Hong Kong and other neighbouring Asian countries and regions, as well as in the procurement prices of materials and energy.」

「During the cumulative third quarter of the current consolidated fiscal year, Japan's economy continued to experience sluggish domestic demand, particularly in the services sector, as COVID-19 infections resurged, a state of emergency was declared and extended several times. Although the spread of vaccinations and other factors are expected to support both infection control and consumer activity, uncertainty remains high regarding the timing and extent of the economic recovery due in part to the emergence of new variants, and we expect difficult conditions to continue for the time being.」

「During the cumulative second quarter of the current consolidated fiscal year, Japan's economy continued to experience sluggish domestic demand, particularly in the services sector, as COVID-19 infections resurged, a state of emergency was declared and extended several times. Although the spread of vaccinations and other factors are expected to support both infection control and consumer activity, uncertainty remains high regarding the timing and extent of the economic recovery, and we expect difficult conditions to continue for the time being.」

「Although personal consumption has shown signs of recovery since the government's state of emergency was lifted in May of this year, uncertainty remains high regarding the timing and extent of the economic recovery, and we expect difficult conditions to continue for the time being.」

「The Group operates a range of businesses mainly in Kyushu, including transport services, construction, real estate and hotels, retail and food services, and other businesses, and is affected by the economic environment in Japan as a whole, including the effects of the consumption tax increase and the government's economic policies, as well as by economic conditions in Kyushu, particularly in Fukuoka and other major urban areas.」