Impact of Dramatic Changes in the Economic Environment on Business Activities

「During the consolidated fiscal year under review (fiscal 2025), Japan's economy was believed to have remained on a gradual growth path. However, the prolonged tensions in the Middle East and their impact on crude oil prices and other prices, as well as the effects of rising prices and interest rates, are concerns for the future, and we believe developments must continue to be monitored closely.」

「Looking ahead, however, we are concerned about the prolonged tensions in the Middle East and their potential impact on crude oil prices and other factors, as well as the effects of rising prices and interest rates, and believe it will remain necessary to closely monitor developments.」

「During the nine-month period of the consolidated fiscal year ended December 2023 (April 2023 to December 2023), the Japanese economy continued on a gradual recovery path, but the pace of recovery was expected to remain slow due to the effects of monetary tightening in Europe and the US becoming apparent and the impact of the slowdown in the Chinese economy.」

「During the six-month period of the consolidated fiscal year ended September 2023 (April 2023 to September 2023), the Japanese economy remained on a gradual recovery path, but uncertainty about the outlook was expected to continue due to concerns about prolonged monetary tightening in Europe and the US, the sustained depreciation of the yen and a slowdown in the Chinese economy.」

「During the three-month period of the consolidated fiscal year ended June 2023 (April 2023 to June 2023), the Japanese economy appeared to be on a gradual recovery path as economic and social activity normalized. However, uncertainty about the outlook had not been dispelled due to persistently high prices and concerns about a slowdown in the Chinese economy.」

「During the nine months ended 31 December 2022, Japan's economy was assumed to be continuing its gradual recovery. However, in addition to persistent inflation in Europe and the United States and the risk of recession, the impact of soaring prices and rising interest rates in Japan is also a concern, and we believe the outlook remains unpredictable.」

「During the six months ended 30 September 2022, Japan's economy showed signs of a gradual recovery. However, global monetary tightening and the resulting downside risk to overseas economies, the sustained weakness of the yen, and continued increases in resource and food prices were recognized as risks, and we believe uncertainty about the outlook remains unresolved.」

「During the first three months of the fiscal year under review (April 2022 to June 2022), Japan's economy showed signs of a gradual recovery against the backdrop of progress toward normalizing economic and social activity. However, rising resource and food prices and the weakening yen continued to weigh on the economy, and we believe uncertainty about the outlook remains unresolved.」

「The impact of soaring resource prices and prices generally has spread, partly due to Russia’s invasion of Ukraine, and the Company believes that uncertainty about the economic outlook has increased.」

「During the fiscal year ended March 2021, the Japanese economy experienced a substantial decline in both domestic and external demand owing to COVID-19. With no clear prospect for the pandemic to subside, corporate earnings showed divergent trends, with some industries beginning to recover, while the prolonged weakness in personal consumption continued, leaving economic uncertainty unresolved.」

「During the cumulative third quarter of the fiscal year ending March 2021 (April to December 2020), the Japanese economy experienced a substantial decline in both domestic and external demand owing to COVID-19. Although signs of a recovery emerged toward the end of 2020, the impact has recently intensified again, and the uncertain outlook continues.」

「During the cumulative second quarter of the fiscal year ending March 2021 (April to September 2020), the Japanese economy experienced a substantial decline in both domestic and external demand owing to the spread of COVID-19. Although signs of a recent recovery have emerged, the outlook remains highly uncertain because the end of the pandemic cannot be foreseen.」

「During the first quarter of the current consolidated fiscal year (April 2020 to June 2020), Japan’s economy declined sharply in both domestic and external demand due to the spread of COVID-19.」

「If an event causing major global changes in economic conditions occurs, such as a financial panic or the spread of an infectious disease, the Group’s business activities could be affected.」