Impact on earnings from the economic downturn in overseas markets

「During the six-month interim consolidated accounting period, the US economy faced periods in which trade policy and interest rates weighed on businesses and households, but investment in digital sectors, including generative AI, continued and economic conditions remained generally firm. In Europe, household spending was gradually recovering and the economy was moving toward a recovery, but corporate investment appetite remained weak and the pace of recovery was modest. In India, economic expansion continued, supported by domestic demand, particularly private consumption and infrastructure investment, as well as a recovery in exports. In addition, continued attention was required regarding heightened geopolitical tensions, particularly in the Middle East, and fluctuations in energy prices.」

「米国では、市場環境の変動や顧客企業の投資判断の慎重化を背景に購買の意思決定期間が長期化し、複数の大型商談の売上計上時期が後ろ倒しとなったこと等により、売上高は前年同四半期を下回りました。」

「During the consolidated fiscal year under review, US growth was expected to slow due to the impact of tariffs and deterioration in household and corporate sentiment caused by rising prices, but the economy remained resilient, supported also by growth in personal consumption and investment in growth sectors. Europe continued to recover in both the euro area and the United Kingdom. The Indian economy remained firm.」

「During the interim consolidated accounting period under review, US growth was expected to slow in the first half of 2025 due to the impact of tariffs and deterioration in household and corporate sentiment caused by rising prices, but the economy remained resilient, supported also by growth in personal consumption. Europe remained sluggish due in part to ongoing inflation, although signs of recovery were seen in both the euro area and the United Kingdom. The Indian economy remained firm.」

「During the consolidated fiscal year under review, the US economy remained resilient, supported by firm employment, except in manufacturing. Europe remained sluggish due in part to the prolonged war in Ukraine and rising prices, and signs of a slowdown were also seen in the United Kingdom. The Indian economy remained firm.」

「During the interim consolidated accounting period under review, the US economy remained resilient, supported by firm employment, except in manufacturing. Europe remained sluggish due in part to the prolonged war in Ukraine and rising prices, and signs of a slowdown were also seen in the United Kingdom. The Indian economy remained firm.」

「During the consolidated cumulative third quarter under review, inflation and elevated policy interest rates continued in Europe and the United States. In the United States, the economy could have slowed against the backdrop of higher interest rates to contain inflation, but remained resilient. Europe remained sluggish due in part to the prolonged war in Ukraine and rising prices. In China, the recovery in economic activity after the zero-COVID policy was delayed, and the growth rate slowed amid non-performing loan problems in the real estate sector.」

「During the consolidated cumulative second quarter under review, the European and US economies continued to slow moderately due to prolonged inflation and rising policy interest rates, among other factors, and companies' appetite for investment in human resources was declining. In the United States, the economy could have slowed against the backdrop of higher interest rates to contain inflation, but remained resilient. Europe remained sluggish due in part to the prolonged war in Ukraine and rising prices. In China, the recovery in economic activity after the zero-COVID policy was delayed, and the growth rate slowed amid problems with non-performing loans.」

「During the consolidated cumulative first quarter under review, the European and US economies continued to slow moderately due to prolonged inflation and rising policy interest rates, among other factors, and companies' appetite for investment in human resources was declining. In the United States, the economy could have slowed against the backdrop of higher interest rates to contain inflation, but employment data remained firm and the economy consequently remained resilient. Europe remained sluggish due in part to the prolonged war in Ukraine and rising prices. In China, economic activity was returning to normal and the economy was on a path to a gradual recovery.」

「During the consolidated cumulative second quarter under review, the global economy was facing further sharp increases in raw material and energy prices due to the prolonged Russia-Ukraine war, with inflation progressing worldwide and conditions remaining unpredictable. In addition, large-scale lockdowns in China under its zero-COVID policy had a significant impact on production and logistics.」

「Globally, economic activity is moving toward a full reopening, but supply chain disruptions and the outbreak of war in Ukraine have driven inflation, leaving the outlook somewhat uncertain.」

「Globally, economic activity is moving toward reopening, but the outlook remains somewhat uncertain.」

「In Japan, the trend toward reducing or postponing training requiring people to gather in person became pronounced in the latter half of the consolidated cumulative second quarter under review, while a state of emergency was in effect due to the fifth wave. The same trend was seen in the United States, but Europe, China and Asia-Pacific were returning to pre-pandemic conditions.」

「The corporate training market was recovering domestically, but overseas it was significantly affected because the spread of the novel coronavirus had not subsided, with second and third lockdowns in Europe and continued restrictions on going out in the United States, among other factors.」

「From the consolidated third quarter under review onward, the corporate training market was recovering domestically compared with the previous year, but overseas it was significantly affected by the spread of the novel coronavirus, including the implementation of second and third lockdowns in Europe and the United States reaching the peak of its third wave.」

「The domestic economy had been declining since the issuance of the April 2020 declaration of a state of emergency due to the spread of the novel coronavirus and requests from local governments for people to refrain from going out, but it is showing a gradual recovery. Economic activity worldwide has been significantly affected, and the outlook for the global economy remains extremely uncertain amid continued concern about a third wave of infections.」

「The outlook for the global economy remains extremely uncertain due to the significant impact on economic activity worldwide.」

「The outlook has become extremely uncertain due to the significant impact on economic activity from the global spread of the novel coronavirus.」

「However, concern remains about the future impact of the novel coronavirus on the Chinese and global economies.」

「During the consolidated cumulative second quarter under review, the corporate training market remained relatively firm in the United States, but the stagnation of the Chinese economy became more pronounced as the US-China trade friction continued. In Europe, particularly the United Kingdom, the impact of Brexit began to emerge, and corporate investment in training began to stagnate.」

「During the consolidated cumulative first quarter under review, the corporate training market remained relatively firm in the United States and Europe, but the stagnation of the Chinese economy became more pronounced as the US-China trade friction continued.」

「During the consolidated fiscal year under review, economic expansion continued in the United States, although the trade friction with China persisted and adversely affected some companies. Economic growth in Europe also showed signs of slowing, and the outlook remained uncertain due in part to the issue of the UK's withdrawal from the EU and prolonged domestic demonstrations in France. In China, economic growth showed signs of slowing, partly due to the impact of the US-China trade friction.」

「Although economic expansion continued in the United States, the trade friction with China intensified, adversely affecting some companies. In China, economic growth showed signs of slowing, partly due to the impact of the US-China trade friction.」

「The training budgets of customers that were local subsidiaries of global companies headquartered in Europe or the United States declined substantially or were frozen due to the impact of US protectionist policies.」

「The purchasing plans of major multinational companies with which we had direct contracts in China were scaled back or cancelled due to the impact of the Trump administration's trade policies, significantly affecting the consolidated cumulative first quarter under review.」

「The Group also provides human resources development consulting overseas to support talent development, and the economic downturn in overseas markets may also affect the Group's earnings.」