Country, Trade, and Social Disruption Risks Associated with Global Expansion

「In addition to the impact of the situation in the Middle East and developments concerning U.S. trade policy, concerns including fluctuations in financial and capital markets and foreign exchange rates mean that the outlook remains uncertain.」

「During the current interim consolidated accounting period, Japan’s economy remained on a gradual recovery trend, supported by improvements in employment and income conditions and expanding inbound demand. At the same time, continued price increases and the impact of US trade policy posed downside risks to the economy, and the outlook remained uncertain.」

「In ocean transportation, supply and demand have tightened due to the situation in the Red Sea, and major ports worldwide have become congested.」

「In ocean transportation, container capacity has become insufficient due to tight supply and demand caused by the situation in the Red Sea, congestion at major ports worldwide and rising demand for ocean transportation.」

「However, the outlook remains uncertain due to the effects of global monetary tightening, unstable international conditions, foreign exchange fluctuations and surging prices.」

「As people gradually return to their previous daily lives, consumers have also become more inclined to save due to rising prices stemming from unstable global conditions, the depreciation of the yen and surging raw material prices. The economic outlook therefore remains uncertain.」

「However, raw material and energy prices have surged due to the deterioration of international conditions and the depreciation of the yen. As prices continue to rise, consumers, whose spending had been recovering, have become more inclined to save, and the economic outlook remains uncertain.」

「However, as upward pressure on prices has increased due to surging raw material and energy prices associated with heightened tensions surrounding the situation in Ukraine and the rapid depreciation of the yen, consumers, whose spending had been recovering, have become more inclined to save out of concern about rising prices. The economic outlook therefore remains uncertain.」

「However, the timing of the end of the infectious disease remains uncertain. In addition, prices have risen due to the heightened tensions surrounding the situation in Ukraine, surging raw material and energy prices, and the rapid depreciation of the yen. Concerns have emerged over sluggish personal consumption and deteriorating corporate earnings, leaving the economic outlook uncertain.」

「However, the timing of the end of the infectious disease has yet to come into view, and concerns about the economic outlook remain numerous, including heightened tensions surrounding the situation in Ukraine, surging raw material prices and the rapid depreciation of the yen. The outlook therefore remains uncertain.」

「Although earnings at the Myanmar subsidiary declined due to COVID-19 and political instability, the Taiwan subsidiary secured stable cargo volumes and earnings, while earnings at the Vietnam subsidiary recovered sharply after lockdown restrictions were lifted. As a result, operating revenue amounted to ¥1,309 million, up 10.5% year on year, and segment profit amounted to ¥88 million, up 13.5%.」

「Although the Taiwan subsidiary secured stable cargo volumes and earnings, earnings at the Vietnam subsidiary declined due to the rapid spread of COVID-19. Earnings at the Myanmar subsidiary also declined due to COVID-19 and political instability, and the liquidation of the US subsidiary further affected results. Operating revenue amounted to ¥474 million, down 31.6% year on year, and segment profit amounted to ¥10 million, down 67.1%.」

「Although the subsidiaries in Taiwan and Vietnam secured stable earnings, earnings at the Myanmar subsidiary declined due to the impact of COVID-19 and political instability. In addition, following the liquidation of the US subsidiary, operating revenue amounted to ¥216 million, down 22.8% year on year, and segment profit amounted to ¥5 million, down 73.7%.」

「Our group also operates container transportation and other businesses with regions outside China. Accordingly, in addition to changes in conditions in China, the following risks associated with globalization exist.」

「If the spread and prevalence of the novel coronavirus infection result in production stoppages or prolonged disruptions to logistics in countries including China, this may affect the performance of the Group.」

「If the spread and prevalence of the novel coronavirus infection result in production stoppages or prolonged disruptions to logistics in countries including China, this may affect the performance of the Group.」

「Meanwhile, uncertainty about the outlook remains unresolved due in part to the prolonged US-China trade frictions and the slowdown in overseas economies.」

「Meanwhile, concerns over the economic impact of US-China trade frictions have increased uncertainty about the economic outlook.」

「In addition, the global situation remains unstable due to factors including US-China trade frictions and the UK's withdrawal from the EU, increasing uncertainty about the outlook.」

「Our group also operates container transportation and other businesses with regions outside China. Accordingly, in addition to changes in conditions in China, the following risks associated with globalization exist.」

「Our group also operates container transportation and other businesses with regions outside China. Accordingly, in addition to changes in conditions in China, the following risks associated with globalization exist. If these risks materialize, they may affect our group’s business performance.」