Geopolitical, regulatory and foreign exchange risks associated with overseas business expansion

「The operating environment surrounding the domestic and overseas economies remains uncertain, as fluctuations in energy prices associated with heightened geopolitical risks in the Middle East and uncertainty surrounding U.S. trade policy are affecting overseas economies and financial markets.」

「In particular, changes in and the prolonged nature of the situations in Ukraine and the Middle East could cause further economic stagnation and foreign exchange volatility, and if these risks materialize, they could have a material effect on the performance and other results of our group.」

「The impact of heightened geopolitical risks, including tensions in the Middle East, on our financial results has not been incorporated into these earnings forecasts because it is difficult to reasonably calculate the impact at this time.」

「While Japan's employment and income environment has improved to some extent, economic stagnation is spreading because of soaring prices, sluggish personal consumption and other factors. In addition, amid continued international tensions, the emergence of geopolitical risks and uncertainty surrounding US trade policy are weighing on the economy, and the outlook remains uncertain.」

「Meanwhile, stagnation in personal consumption against the backdrop of continued price increases, heightened geopolitical risks resulting from global instability and developments in US trade policy pose downside risks to Japan's economy, and the outlook remains unpredictable.」

「Meanwhile, international instability persists overseas, including the prolonged Russia-Ukraine situation, heightened tensions in the Middle East and the slowdown of the Chinese economy. Surging resource and energy prices and rapid foreign exchange volatility pose downside risks to Japan's economy, and the outlook remained uncertain.」

「In international cargo transportation, exports declined, mainly to China, against the backdrop of slowing overseas economies, and the recovery showed signs of stalling.」

「During the nine months ended 31 December 2023 (1 April 2023 to 31 December 2023), Japan's economy maintained a gradual recovery trend as socioeconomic activity normalized. However, it remained unstable because of heightened geopolitical risks resulting from prolonged global instability, a slowdown in overseas economies against the backdrop of monetary tightening, soaring prices and other factors.」

「Cargo volumes related to Russia and Central Asia continued to decline for production-related and consumer-goods cargo bound for Russia because of the situation in Ukraine and other factors. Cargo volumes for automotive-related and other cargo bound for Central Asia increased.」

「Cargo volumes related to Russia and Central Asia continued to decline for production-related and consumer-goods cargo bound for Russia because of the situation in Ukraine and other factors. Cargo volumes for automotive-related and other cargo bound for Central Asia also declined because of rail freight backlogs in China, a transit country.」

「Our group routinely obtains the latest information on conditions and economic trends in the countries where it operates and neighboring countries from information and alerts issued by their governments, local embassies and other sources. While closely monitoring customers and competitors, we review our business plans as appropriate, including from the perspective of ensuring the safety of employees stationed overseas. In particular, changes in and the prolonged nature of the situation in Ukraine could cause further economic stagnation and foreign exchange volatility, and if this risk materializes, it could have a material effect on the performance and other results of our group.」

「During the nine months ended 31 December 2022 (1 April 2022 to 31 December 2022), Japan's economy showed signs of recovery as socioeconomic activity gradually normalized following the lifting of restrictions on movement, despite the prolonged impact of COVID-19. However, the economy remained unstable because of a downturn driven by geopolitical risks stemming from the situation in Ukraine, soaring global prices and monetary tightening.」

「Cargo volumes related to Russia and Central Asia continued to decline for production-related and consumer-goods cargo bound for Russia, affected by COVID-19, the situation in Ukraine and other factors. Meanwhile, volumes of automotive-related cargo bound for Central Asia and new transportation projects continued to increase.」

「During the three months ended 30 June 2022 (1 April 2022 to 30 June 2022), Japan's economy remained in a severe and unstable condition. Although the severe effects of COVID-19 eased and socioeconomic activity gradually moved toward normalization, the prolonged situation in Ukraine and yen depreciation caused raw-material and energy prices to surge, among other effects.」

「In particular, changes in and the prolonged nature of the situation in Ukraine could cause further economic stagnation and foreign exchange volatility, and if this risk materializes, it could have a material effect on the business performance and other results of our group.」

「During the nine months ended 31 December, Japan's economy remained in a severe and unstable condition. Economic activity recovered as the number of new COVID-19 cases declined, but the emergence of new variants and other factors continued to weigh on the economy.」

「During the six months ended 30 September 2021 (1 April 2021 to 30 September 2021), Japan's economy remained in a severe and unstable condition. New COVID-19 infections, which had temporarily risen, gradually declined as vaccination progressed. In international cargo transportation, exports continued to increase gradually alongside the recovery of overseas economies. Imports remained on an upward trend as domestic demand continued to recover.」

「During the three months ended 30 June 2021 (1 April 2021 to 30 June 2021), Japan's economy remained in a severe and unstable condition. Some signs of recovery were seen, but the end of the COVID-19 pandemic remained unforeseeable amid the issuance and extension of states of emergency.」

「In particular, the prolonged spread of COVID-19 could cause further economic stagnation, and if this risk materializes, it could have a material effect on the business performance and other results of our group.」

「During the nine months ended 31 December, Japan's economy showed signs of a gradual recovery because of the effects of various government policies. However, economic activity slowed against the backdrop of a renewed spread of COVID-19, and the economy remained in a severe and unstable condition.」

「In international cargo transportation, exports recovered gradually as economic activity resumed overseas. Imports remained on a declining trend because of weak corporate capital investment and other factors, although personal consumption showed signs of bottoming out.」

「In international cargo transportation, exports declined sharply overall as the global economy deteriorated, despite signs of recovery in shipments to China. Imports continued to decline because supply constraints persisted, although the reopening of economic activity overseas progressed gradually.」

「In international cargo transportation, exports remained weak because of the slowing recovery in overseas economies.」

「During the six months ended 30 September 2019 (1 April 2019 to 30 September 2019), Japan's economy remained unstable. Personal consumption followed a gradual recovery trend, supported by last-minute demand ahead of the consumption tax increase, but there were no signs of improvement in US-China trade frictions. In international cargo transportation, exports remained weak, affected by sluggish external demand, mainly to Asia.」

「In international cargo transportation, exports declined, mainly to China and other Asian destinations, as the Chinese economy slowed against the backdrop of US-China trade frictions.」

「In international cargo transportation, exports declined, mainly to China, as the Chinese economy slowed because of the impact of US-China trade frictions and other factors.」

「In international cargo transportation, exports continued to increase, although the pace of growth slowed because of the effects of natural disasters and other factors.」

「During the nine months ended 31 December, Japan's economy showed signs of recovery in personal consumption and consumer sentiment as employment conditions and the income environment gradually improved. Meanwhile, the economy remained unstable because of uncertainty surrounding political and economic conditions overseas, including on the Korean Peninsula.」

「Meanwhile, uncertainty surrounding political and economic conditions overseas, including on the Korean Peninsula, increased.」

「During the three months ended 30 June, Japan's economy remained unstable because of uncertainty surrounding political and economic conditions overseas, including in the United States, despite gradual improvement in employment conditions and corporate earnings.」

「To address this globalization, our group has established bases including local subsidiaries in Southeast Asia, East Asia and Russia, and plans to actively expand its overseas business, with Europe also under consideration. During this process, the occurrence of various factors such as those listed below could affect the business operations and performance of our group.」

「In international cargo transportation, exports showed signs of recovery from November onward because of the yen's depreciation, despite concerns about downside risks to the economies of emerging Asian countries, including China. Imports remained broadly flat because of sluggish domestic demand, including personal consumption and capital investment.」

「During the six months ended 30 September 2016 (1 April 2016 to 30 September 2016), Japan's economy remained stagnant amid growing downside risks to corporate earnings, affected by the UK's decision to leave the EU and further yen appreciation.」

「In international cargo transportation, exports lacked momentum, affected by the slowdown in the economies of emerging Asian countries, including China, and the yen's appreciation. Imports continued to decline because of weak domestic demand, including sluggish personal consumption and a leveling off in capital investment.」

「During this process, the occurrence of various factors such as those listed below could affect the business operations and performance of our group.」