Risks in Addressing Intensified Global Competition, Domestic Market Saturation and Technological Change

「As for the impact on the Company of heightened tensions in the Middle East, we expect no direct impact, given that exports outside the Group have always been minimal and that personnel costs account for the majority of costs related to product development. However, we continue to monitor the situation, as we cannot rule out adverse effects if our customers’ investment sentiment weakens.」

「The spread of AI coding has brought us into an era in which we cannot survive by simply extending our existing business.」

「The domestic economy during the interim consolidated accounting period was on a moderate recovery trend, despite some effects from US trade policy. Although downside risks to overseas economies remained due to the destabilization of the international political situation and concerns over the outlook for the Chinese economy, continued moderate recovery in the domestic economy was expected, supported by improvements in employment and income conditions.」

「The impact of higher US tariffs is expected to be limited directly because our group's exports to the United States were originally minimal. However, the adverse impact of weaker investment sentiment among our customers cannot be ruled out, so we will continue to monitor the situation closely.」

「However, the international situation remained unstable due to heightened geopolitical risks, and the outlook for the economy remained uncertain.」

「However, the international situation remained unstable due to heightened geopolitical risks, and the outlook for the economy remained uncertain.」

「However, the international situation remained unstable due to heightened geopolitical risks, and the outlook for the economy remained uncertain.」

「However, the outlook remained uncertain as downside risks in overseas economies threatened to weigh on the Japanese economy amid continued global monetary tightening, while supply constraints related to geopolitical risks, including the situation in Ukraine, and rising prices accompanying the depreciation of the yen also posed risks.」

「However, the outlook remained uncertain as downside risks in overseas economies threatened to weigh on the Japanese economy amid continued global monetary tightening, while supply constraints related to the situation in Ukraine, rising prices accompanying the rapid depreciation of the yen, developments in infections in China and effects on global supply chains also posed risks.」

「However, the outlook remained uncertain as downside risks in overseas economies threatened to weigh on the Japanese economy amid continued global monetary tightening, while supply restrictions resulting from the prolonged situation in Ukraine and rising prices accompanying the rapid depreciation of the yen also posed risks.」

「However, the outlook remained uncertain as the prolonged situation in Ukraine and rising prices accompanying the rapid depreciation of the yen weighed on the economy.」

「During the current fiscal year, the Japanese economy remained in an uncertain environment, as the end of COVID-19 remained out of sight, as in the previous fiscal year, and geopolitical risks such as the situation in Ukraine intensified, heightening tensions in the global situation.」

「During the first nine months of the current fiscal year, the global economy had finally begun to find a path toward containing the pandemic, supported by progress in vaccinations amid repeated waves of COVID-19. However, infections were again beginning to spread as restrictions on going out were eased, and uncertainty about the outlook remained high.」

「During the first six months of the current fiscal year, the global economy remained sluggish due to the prolonged stagnation of economic activity caused by COVID-19 and a slowdown in the global economy resulting from US-China trade friction. However, an economic recovery was expected as vaccinations progressed. Nevertheless, uncertainty about the outlook remained high due to concerns including the arrival of new variants.」

「During the first quarter of the current fiscal year, the global economy remained sluggish due to the prolonged stagnation of economic activity caused by COVID-19 and a slowdown in the global economy resulting from US-China trade friction. However, an economic recovery was expected as vaccination programs began to advance. Nevertheless, uncertainty about the outlook remained high, including the reissuance of a state of emergency in some areas. Against this backdrop, in the information services industry to which our group belongs, expectations and demand for DX (digital transformation) driven by IT innovation were rising, but the industry remained affected by restrained or postponed IT investment and continued to require close monitoring.」

「During the first nine months of the current fiscal year, uncertainty about the outlook for the global economy remained high as the spread of COVID-19 continued. The Japanese economy was also affected by the resulting decline in economic activity. In the information services industry to which our group belongs, expectations and demand for DX (digital transformation) driven by IT innovation were rising, but concerns remained that companies would restrain or postpone IT investment, and the environment continued to require close monitoring.」

「During the first six months of the current fiscal year, uncertainty about the outlook for the global economy remained high as the spread of COVID-19 continued. The Japanese economy was also affected by the resulting decline in economic activity. In the information services industry to which our group belongs, expectations and demand for DX (digital transformation) driven by IT innovation were rising, but concerns remained that companies would restrain or postpone IT investment, and the environment continued to require close monitoring.」

「During the first quarter of the current fiscal year, the global economy deteriorated rapidly as the novel coronavirus disease spread. The Japanese economy was also affected by a decline in economic activity, and the decrease in corporate earnings became pronounced. In the information services industry to which our group belongs, the environment requires close monitoring of risks including potential downside to future earnings, amid concerns that customer companies may restrain or postpone IT investment.」

「Uncertainty about the outlook has increased further amid concerns over a rapid contraction in the global economy resulting from the worldwide spread of the novel coronavirus.」

「The risk of a slowdown in the global economy resulting from unstable conditions overseas, including US-China trade friction and geopolitical risks, has yet to be eliminated.」

「During the first six months of the current fiscal year, the Japanese economy remained supported by solid corporate earnings, but uncertainty about the outlook continued amid a slowdown in the global economy, driven in part by intensifying US-China trade friction.」

「During the first quarter of the current fiscal year, the Japanese economy remained supported by solid corporate earnings, but uncertainty about the outlook was increasing due to the prolonged trade friction overseas and the psychological impact of the increase in the consumption tax rate.」

「Corporate earnings remained solid and a moderate recovery was expected to continue, with capital investment also expected to remain firm, centered on rationalization and labor-saving investment against a backdrop of labor shortages. However, caution was required due to the risk that intensifying trade friction overseas could lead to an economic slowdown overseas.」

「During the first six months of the current fiscal year, corporate earnings remained solid and a moderate recovery continued. Capital investment was also expected to remain firm, centered on rationalization and labor-saving investment against a backdrop of labor shortages, although uncertainty about the outlook remained due to intensifying trade friction overseas.」

「During the first quarter of the current fiscal year, the Japanese economy continued to recover, supported by a rising trend in capital investment, particularly investment in rationalization and labor-saving measures against a backdrop of solid corporate earnings and labor shortages. However, it remained in an uncertain environment due to risks of a slowdown stemming from concerns over political and economic developments in countries overseas.」

「Technology and business models have entered an era in which DX is being created through the widespread adoption of IT innovation, including AI, IoT, RPA and big data. Expectations and demand are rising, while corporate system development is also shifting toward service-based businesses represented by the cloud, amid changing customer needs from ownership to usage.」

「The information services industry to which our group belongs has remained solid as IoT (Internet of Things), blockchain and AI (artificial intelligence), enabled by innovation in IT technology, began to be used as new social infrastructure, raising expectations and demand for IT technology, while corporate system development also shifted toward service-based businesses represented by the cloud, amid changing customer needs from ownership to usage. At the same time, growing demand for corporate IT-related investment and information security measures has made issues involving critical business resources, including shortages and rising costs of IT engineers, increasingly apparent, making it urgent to train and secure engineers capable of addressing the latest technologies and IT innovation.」

「The information services industry to which our group belongs has remained solid as IoT (Internet of Things), blockchain and AI (artificial intelligence), enabled by innovation in IT technology, began to be used as new social infrastructure, raising expectations and demand for IT technology, while corporate system development also shifted toward service-based businesses represented by the cloud, amid changing customer needs from ownership to usage. At the same time, growing demand for corporate IT-related investment and information security measures has made issues involving critical business resources, including shortages and rising costs of IT engineers, increasingly apparent, making it urgent to train and secure engineers capable of addressing the latest technologies and IT innovation.」

「The information services industry to which our group belongs remained on a moderate growth trend as IoT (Internet of Things) and blockchain, enabled by innovation in IT technology, began to be used as new social infrastructure, raising expectations and demand for IT technology, while corporate system development also shifted toward service-based businesses represented by the cloud, amid changing customer needs from ownership to usage. At the same time, growing demand for corporate IT-related investment and information security measures has made issues involving critical business resources, including shortages and rising costs of IT engineers, increasingly apparent, making it urgent to train and secure engineers capable of addressing the latest technologies and IT innovation.」

「The information services industry to which our group belongs remained on a moderate growth trend as IoT (Internet of Things) and FinTech, enabled by innovation in IT technology, began to be used as new social infrastructure, raising expectations and demand for IT technology, while corporate system development also shifted toward service-based businesses represented by the cloud, amid changing customer needs from ownership to usage. At the same time, issues involving critical business resources, including shortages and rising costs of highly skilled engineers, have become apparent, making it urgent to train and secure engineers capable of addressing the latest technologies and IT innovation.」

「The information services industry to which our group belongs remained on a moderate growth trend as IoT (Internet of Things) and FinTech, enabled by innovation in IT technology, began to be used as new social infrastructure, raising expectations and demand for IT technology, while corporate system development also shifted toward service-based businesses represented by the cloud, amid changing customer needs from ownership to usage. At the same time, issues involving critical business resources, including shortages and rising costs of highly skilled engineers, have become apparent, making it urgent to train and secure engineers capable of addressing the latest technologies and IT innovation.」

「The economy remained in an uncertain environment, due to continued yen appreciation and share price declines, changes in inbound consumption that had driven domestic demand, and turmoil in financial markets stemming from the UK's withdrawal from the EU.」

「An era is emerging in which business innovation is accelerating through the creation of new businesses, shifts in business models, creation of new customer value, differentiation of existing businesses and collaboration across industries, driven by changes in the business environment, such as intensifying global competition, signs of saturation in the domestic market, changes in industry structures and increasingly diverse customer needs, as well as advances in technology, including mobile, cloud, big data and IoT.」