Risk of fluctuations in business performance due to economic cycles, competition, and weather

「On the other hand, in addition to the effects of U.S. trade policy and continuing inflation, there are concerns that developments in resource prices and supply conditions associated with heightened tensions in the Middle East could weigh on consumer sentiment, and the outlook therefore remains uncertain.」

「On the other hand, in addition to the effects of U.S. trade policy and continuing inflation, there are concerns that developments in resource prices and supply conditions associated with heightened tensions in the Middle East could weigh on consumer sentiment, and the outlook therefore remains uncertain.」

「However, concerns that could weigh on consumer sentiment remained, including the impact of U.S. trade policy and continuing price increases, leaving the outlook uncertain.」

「During the interim consolidated accounting period, Japan's economy had some positive factors, including improved employment and income conditions and increased inbound demand. However, the yen's continued depreciation contributed to higher energy and raw material prices and persistent inflation, leaving the outlook for personal consumption uncertain.」

「The Group manufactures, wholesales and retails automotive and motorcycle products, primarily in Japan. Accordingly, a deterioration in the Japanese economy or weak personal consumption caused by various factors could adversely affect the Group's operating results and financial position.」

「During the second-quarter cumulative consolidated period, economic activity in Japan normalized as restrictions on activity were lifted following the reclassification of COVID-19 to Category 5 under the Infectious Diseases Control Law. However, the outlook remained uncertain due to concerns that could weigh on consumer sentiment, including higher energy and raw material prices, exchange-rate fluctuations and resulting price increases.」

「During the first-quarter cumulative consolidated period, economic activity in Japan normalized as restrictions on activity were lifted following the reclassification of COVID-19 to Category 5 under the Infectious Diseases Control Law. However, the outlook remained uncertain due to concerns that could weigh on consumer sentiment, including higher energy and raw material prices, exchange-rate fluctuations and resulting price increases.」

「During the consolidated fiscal year, economic activity showed signs of normalization after the lifting of priority preventive measures, even as the impact of COVID-19 continued. However, the outlook remained uncertain due to concerns that could weigh on consumer sentiment, including the renewed increase in infections caused by COVID-19 variants, higher energy and raw material prices, rapid yen depreciation and resulting price increases.」

「During the third-quarter cumulative consolidated period, economic activity showed signs of normalization after the lifting of priority preventive measures, even as the impact of COVID-19 continued. However, the outlook remained uncertain due to concerns that could weigh on consumer sentiment, including the renewed increase in infections caused by COVID-19 variants, higher energy and raw material prices, rapid yen depreciation and resulting price increases.」

「However, concerns that could weigh on consumer sentiment remained, including the seventh wave of infections caused by COVID-19 variants, higher energy and raw material prices, rapid yen depreciation and resulting price increases, leaving the outlook uncertain.」

「However, concerns that could weigh on consumer sentiment remained, including higher energy and raw material prices, rapid yen depreciation and resulting price increases, leaving the outlook uncertain.」

「During the consolidated fiscal year, Japan's economy remained affected by the prolonged COVID-19 pandemic, with weak personal consumption and stagnating economic activity continuing.」

「In the automotive aftermarket industry, demand for driving associated with returning to one's hometown and travel declined due to the fifth wave of COVID-19, which peaked in mid-August. In addition, dashcam sales, which had been strong in the previous year following the strengthening of penalties for dangerous driving, declined as that effect reversed. Sales of studless tires remained solid, at around the previous year's level.」

「During the second-quarter cumulative consolidated period, Japan's economy remained challenging as the spread of COVID-19 led to prolonged weakness in personal consumption and stagnation in economic activity. Although COVID-19 vaccinations began in earnest, the outlook for containment remained uncertain as the state of emergency was extended and priority preventive measures were implemented.」

「During the first-quarter cumulative consolidated period, Japan's economy remained challenging as the spread of COVID-19 led to the reissuance of the state of emergency and the continuation of requests to refrain from going out.」

「During the second-quarter cumulative consolidated period, Japan's economy remained challenging due to the impact of the COVID-19 pandemic, although personal consumption showed signs of recovery as economic activity gradually resumed.」

「In the automotive aftermarket industry, tire sales grew substantially through September as tire manufacturers' pull-forward demand before price increases coincided with rush demand before the consumption tax increase, but sales fell after October due to the subsequent reaction. In addition, sales of winter-related products such as studless tires and tire chains declined substantially because of the nationwide warm winter.」

「Consumer spending remained uncertain due in part to the impact of the consumption tax increase implemented in October. Tire sales grew substantially through September as tire manufacturers' pull-forward demand before price increases coincided with rush demand before the consumption tax increase, but sales fell after October due to the subsequent reaction. In addition, sales of winter-related products such as studless tires and tire chains declined substantially because of the nationwide warm winter.」

「During the second-quarter cumulative consolidated period, Japan's economy remained on a gradual recovery trend against a backdrop of improving employment and income conditions, although corporate earnings showed signs of slowing. While personal consumption was expected to recover, concerns over a deterioration in consumer sentiment following the consumption tax increase meant that conditions remained uncertain.」

「During the consolidated fiscal year, tire sales volume declined from the previous year due to the backlash from the pull-forward in demand before tire price increases in the same period of the previous year and lower-than-usual snowfall nationwide. However, the increase in subsidiary stores and higher revenue from pit services resulted in net sales of ¥139.2 billion, up 101.0% year on year, an increase of ¥1.335 billion.」

「During the third-quarter cumulative consolidated period, Japan's economy was on a gradual recovery trend against a backdrop of improved corporate performance and employment conditions. However, the outlook remained uncertain because labor shortages were expected to drive up labor and logistics costs.」

「During the second-quarter cumulative consolidated period, Japan's economy was on a gradual recovery trend against a backdrop of improved corporate performance and employment conditions. However, the outlook remained uncertain because labor shortages were expected to drive up labor and logistics costs.」

「During the first-quarter cumulative consolidated period, Japan's economy was on a gradual recovery trend against a backdrop of improved corporate performance and employment conditions. However, the outlook remained uncertain because labor shortages were expected to drive up labor and logistics costs.」

「The business of the Group is affected by economic conditions in each region, the activities of competitors and weather-related factors. Accordingly, unexpected economic fluctuations, competitors' activities, adverse weather and other factors may adversely affect the Group's operating results and financial position in the course of future business activities.」

「During the cumulative third quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that could materially affect investors’ decisions, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」

「Although the economy continued to recover against a backdrop of recovery in overseas economies, wage growth remained sluggish and real wages remained weak due to rising prices, leaving the outlook for personal consumption uncertain.」

「In the automotive aftermarket industry, sales of vehicle inspection and other car-maintenance services, tires and consumables centered on oil and batteries remained solid, but car-navigation sales declined, and the challenging operating environment continued.」

「Sales of vehicle inspection and other car-maintenance services, consumables centered on oil and batteries, and dashcams remained solid. However, the Company faced a challenging operating environment as demand for switching from winter to summer tires declined, tire sales fell due to adverse weather, and car-navigation sales decreased.」

「The business of the Group is affected by economic conditions in each region, the activities of competitors and weather-related factors. Accordingly, unexpected economic fluctuations, competitors' activities, adverse weather and other factors may adversely affect the Group's operating results and financial position in the course of future business activities.」