Changes in Market Conditions and Intensifying Competition

「The businesses operated by the Group may face difficulty securing profits because of changes in user preferences, changes in the macroeconomic environment such as rising inflation and higher prices and labor costs, the emergence of new competitors resulting from technological advances and innovation, and price competition with other companies in the same industry. In particular, the impact of the growing adoption of generative AI on the Group's content and businesses is expected to become greater going forward.」

「It was an extremely unstable year due to concerns over the supply of crude oil and resources arising from US tariff policy and heightened tensions in the Middle East, and uncertainty about the outlook remains.」

「During the consolidated fiscal year, Japan's economy followed a gradual recovery trend, supported by improved corporate earnings, stronger inbound demand and improvements in employment and income conditions. However, the recovery in personal consumption stalled as the prices of daily necessities continued to rise due to higher raw material prices and energy costs. In addition, concerns remained amid unstable international conditions, including the situation in Ukraine and concerns about a global recession resulting from U.S. tariff policy near the end of the fiscal year, making the economic outlook increasingly uncertain.」

「During the interim consolidated accounting period, Japan's economy followed a gradual recovery trend, supported by improved corporate earnings, stronger inbound demand and improvements in employment and income conditions. However, the continued rise in prices of daily necessities resulting from higher raw material prices and energy costs has caused the recent recovery in personal consumption to stall. In addition, many concerns remain, including increasingly unstable international conditions amid heightened tensions in the Middle East, and the economic outlook remains uncertain.」

「Japan's economy maintained a gradual recovery as restrictions on economic and social activity were eased following the reclassification of COVID-19 as a Class 5 infectious disease, among other factors. However, the economy has recently stalled, partly because the Bank of Japan's lifting of its negative interest rate policy temporarily weighed on consumer sentiment. Concerns also remain about downside risks from external factors, including the prolonged global monetary tightening cycle and China's economic slowdown. Against this backdrop, the outlook for the economy remains uncertain.」

「At the same time, concerns persisted about downside risks to the economy, including the prolonged situation in Ukraine, escalating tensions in the Middle East, slower personal consumption linked to rising consumer prices resulting from the yen's depreciation, global monetary tightening and a slowdown in the Chinese economy. Against this backdrop, the economic outlook remained uncertain.」

「During the first six months of the current consolidated fiscal year, restrictions on economic and social activity were eased following the reclassification of COVID-19 as a Class 5 infectious disease, and signs of an economic recovery emerged. At the same time, concerns persisted about downside risks to the economy, including continued inflation and slower personal consumption resulting from the prolonged situation in Ukraine and the depreciation of the yen, as well as global monetary tightening and a slowdown in the Chinese economy, leaving the economic outlook uncertain.」

「During the first three months of the current consolidated fiscal year, demand continued to improve, particularly in the food service, travel and accommodation industries, following the reclassification of COVID-19 as a Class 5 infectious disease. However, economic conditions remained uncertain due to the slowdown in personal consumption caused by continued inflation stemming from the prolonged situation in Ukraine, slowing growth at major US IT companies, and concerns about an economic downturn against a backdrop of global monetary tightening.」

「During the first nine months of the current consolidated fiscal year, the economy entered a gradual recovery phase as restrictions on activity were eased and foreign tourists were again admitted to Japan. Meanwhile, consumer sentiment became more cautious as prices rose due to the prolonged situation in Ukraine and the rapid depreciation of the yen, while sluggish growth in personal income also weighed on consumption, and uncertainty about the economic outlook continued.」

「During the first six months of the current consolidated fiscal year, signs emerged that social activity was normalizing as the impact of COVID-19 waned. However, uncertainty about the economic outlook continued due to a resurgence of infections caused by a variant virus beginning in July and weaker consumer sentiment resulting from inflation caused by the prolonged situation in Ukraine and the depreciation of the yen.」

「During the first three months of the current consolidated fiscal year, signs emerged that social activity was normalizing as the impact of COVID-19 waned. However, the outlook for the economy remained uncertain, as prolonged tensions surrounding Ukraine and a substantial depreciation of the yen caused import raw-material prices and energy costs to surge, driving inflation beyond expectations and dampening consumer sentiment.」

「Subsequently, concerns about downside risks to the economy strengthened again due to factors such as concerns about a resurgence of Omicron infections, surging resource prices following Russia's invasion of Ukraine, and a sharp depreciation of the yen resulting from differences between Japanese and US monetary policies.」

「Personal consumption remained weak while the state of emergency was in effect, but entered a recovery phase after its lifting, particularly in face-to-face services. Recently, however, uncertainty has increased again due to concerns about the Omicron variant, among other factors.」

「During the first six months of the current consolidated fiscal year, corporate earnings recovered sharply from the second half of the previous consolidated fiscal year and exceeded pre-pandemic levels. However, industrial production stagnated after recovering, and personal consumption remained weak, particularly in face-to-face services, due to shorter operating hours accompanying the declaration of a state of emergency. Overall, the economy remained sluggish.」

「During the first three months of the current consolidated fiscal year, personal consumption weakened, particularly in face-to-face services, due to store closures and calls to refrain from going out accompanying the declaration of a state of emergency. However, industrial production and exports recovered as economic activity resumed in Japan and overseas, while capital investment showed signs of bottoming out as corporate earnings improved, leaving the overall economy broadly flat.」

「During the consolidated fiscal year, Japan's economy deteriorated rapidly due to the global spread of COVID-19 and economic activity subsequently began to resume following the full lifting of the first state of emergency. However, following the reissuance of the state of emergency, activity weakened again, particularly in face-to-face services consumption.」

「During the first nine months of the current consolidated fiscal year, Japan's economy deteriorated rapidly due to the global spread of COVID-19 and economic activity subsequently began to resume following the full lifting of the first state of emergency. However, services consumption remained low, partly due to the effects of the second and third waves, and the recovery in the economy slowed.」

「During the first six months of the current consolidated fiscal year, Japan's economy deteriorated rapidly due to the global spread of COVID-19, but economic activity subsequently began to resume following the full lifting of the state of emergency. Although services consumption remained low, partly due to the effects of the second wave, signs of an economic recovery have recently begun to emerge.」

「During the first three months of the current consolidated fiscal year, Japan's economy deteriorated rapidly and remained in an extremely severe condition as corporate activity and personal consumption were significantly restricted by the global spread of COVID-19. Although economic activity began to resume following the full lifting of the state of emergency, the domestic economy remains in a situation that warrants close attention.」

「Recently, the global economy, including Japan, has been hit by a sharp economic contraction due to the worldwide spread of COVID-19, and we recognize that the business environment is extremely uncertain.」

「During the first nine months of the current consolidated fiscal year, Japan's economy generally remained on a path toward a gradual recovery, supported by firm domestic demand. However, views that business conditions were deteriorating, particularly in manufacturing, became more widespread, and uncertainty about the outlook increased amid concerns about downside risks to the economy caused by overseas factors such as prolonged US-China trade tensions and escalating tensions in the Middle East, as well as concerns about volatility in financial markets.」

「During the first six months of the current consolidated fiscal year, Japan's economy continued on a path toward a gradual recovery as corporate earnings and the employment environment improved. Meanwhile, uncertainty about the outlook increased due to overseas factors such as US-China trade tensions, the UK's EU withdrawal issue and escalating tensions in the Middle East, as well as concerns about the impact of the consumption tax increase on the economy.」

「During the first three months of the current consolidated fiscal year, Japan's economy remained on a path toward a gradual recovery, supported by improvements in corporate earnings and the employment situation and increases in capital investment. Meanwhile, uncertainty persisted, with concerns about downside risks to the outlook arising mainly from overseas factors such as escalating trade friction between the United States and China and the situation in the Middle East.」

「During the consolidated fiscal year, Japan's economy generally remained on a path toward a gradual recovery as corporate earnings and the employment environment improved. However, concerns arose over downside risks to overseas economies stemming from factors such as US-China trade tensions and developments related to Brexit, and uncertainty about the economic outlook has recently increased.」

「During the first nine months of the current consolidated fiscal year, Japan's economy generally remained on a path toward a gradual recovery as corporate earnings and the employment environment improved. However, concerns arose over downside risks to overseas economies stemming from factors such as US-China trade tensions and the resulting volatility in financial and capital markets, and the economy has recently entered a somewhat stagnant phase.」

「During the first six months of the current consolidated fiscal year, Japan's economy continued on a path toward a gradual recovery, as corporate earnings and the employment environment improved against a backdrop of the recovery in overseas economies and the effects of various policies by the government and the Bank of Japan. Meanwhile, the outlook remained uncertain, with concerns about downside risks to the economy arising mainly from overseas factors such as protectionist trade policies in the United States.」

「During the first three months of the current consolidated fiscal year, Japan's economy remained on a path toward a gradual recovery, with corporate earnings and the employment situation continuing to improve against a backdrop of the recovery in overseas economies and the effects of various policies by the government and the Bank of Japan. Meanwhile, uncertainty persisted, with concerns about downside risks to the economy arising mainly from overseas factors such as unstable policy management by the United States administration.」

「During the first nine months of the current consolidated fiscal year, Japan's economy continued to expand gradually, supported by simultaneous economic expansion in major countries, including the United States, despite concerns such as the situation surrounding North Korea and excessive debt in certain major countries, against a backdrop of improvements in corporate earnings and the employment environment.」

「During the first six months of the current consolidated fiscal year, Japan's economy continued to recover gradually, supported by improvements in corporate earnings and the employment environment, despite concerns about uncertainty over the outlook for overseas economies and the impact on financial and capital markets arising from policy uncertainty under the United States administration, heightened geopolitical risks and the UK's EU withdrawal issue.」

「Although there were periods of significant foreign-exchange volatility and sharp fluctuations in share prices, mainly due to overseas factors such as concerns about a slowdown in the EU economy following the UK's departure from the EU, trends in crude oil prices, the United States presidential election and the policies of the subsequent Trump administration in the United States, the economy remained on a path toward a gradual recovery, supported by a recovery in the global economy and monetary easing, among other factors, with production and exports remaining firm.」

「There were periods of significant foreign-exchange volatility and sharp fluctuations in share prices, mainly due to overseas factors such as concerns about a slowdown in the EU economy following the UK's departure from the EU, trends in crude oil prices and the impact of the United States presidential election, although」

「There were periods of significant foreign-exchange volatility and sharp fluctuations in share prices, mainly due to overseas factors such as the United States refraining from raising interest rates, concerns about a slowdown in the EU economy following the UK's departure from the EU, and trends in crude oil prices, and uncertainty about the economic outlook continued.」

「Uncertainty about the economic outlook has increased as the yen has appreciated sharply and share prices have fallen, mainly due to external factors such as growing signs of a slowdown in the Chinese economy and the United States refraining from raising interest rates.」

「Changes in user preferences, changes in the macroeconomic environment, the emergence of new competitors due to technological advances and innovation, and price competition with other companies in the same industry could make it difficult to secure profits.」