Marubeni Corp (8002) Q1 2027 Earnings Call Transcript

Condensed Transcript of Question and Answer Session Briefing on Consolidated Results for the Q1 of the Fiscal Year Ending March 31, 2027 Date: Format: Those Present:

August 3, 2026 (Monday) Webinar Chijo Tajima, Director, Member of the Board, Representative Executive Officer, CFO Hideyoshi Iwane, Managing Executive Officer, General Manager, Corporate Accounting Dept.

Disclaimer Regarding Forward Looking Statements and Original Language This material contains forward‐looking statements about the future performance, events or management plans of Marubeni Corporation and its Group companies (the Company) based on the available information, certain assumptions and expectations at the point of disclosure, of which many are beyond the Company’s control. These are subject to a number of risks, uncertainties and factors, including, but not limited to, economic and financial conditions, factors that may affect the level of demand and financial performances of the major industries and customers we serve, interest rates and currency fluctuations, availability and cost of funding, fluctuations in commodity and materials prices, political turmoil in certain countries and regions, litigation claims, changes in laws, regulations and tax rules, and other factors. Actual results, performances and achievements may differ materially from those described explicitly or implicitly in the relevant forward‐looking statements. The Company has no responsibility for any possible damage arising from the use of information on this material, nor does the Company have any obligation to update these statements, information, future events or otherwise. This material is an English language translation of the materials originally written in Japanese. In case of discrepancies, the Japanese version is authoritative and universally valid.

<1st questioner> Regarding capital allocation, I had understood that, under the mid-term management strategy, the basic policy was to maintain a total payout ratio of around 40% and then allocate any additional free cash generated. This time, you also mentioned utilizing leverage. Do you have a target level for the Net DE ratio, or is the message that you will continue to enhance shareholder returns unless ROE improves? CFO Tajima: After announcing our FY2025 results in May, we held meetings with investors and analysts and, in early June, spoke directly with overseas investors through our Global IR Week. Through those discussions, we gained a clearer understanding of how investors evaluate Marubeni and what they are most concerned about. We believe Marubeni’s appeal to investors lies in our high ROE target and our capital allocation to high‐margin areas where we have strengths, centered on Strategic Platform Businesses. At the same time, many investors told us they wanted to see a firm response to the recent downward trend in ROE, including through new investments and shareholder returns. Based on those discussions, we decided to revise our capital allocation now, rather than wait for the interim results, in order to show our intention to respond as swiftly and seriously as possible. Our original plan was to generate ¥200 billion in free cash flow over the three‐year period of the medium‐term management plan and allocate it appropriately to management priorities. Divestments are progressing steadily, and core operating cash flow is also performing solidly. As a result, we now expect to be able to secure the originally targeted ¥200 billion in free cash flow even while steadily executing new investments going forward. While new investments remain the top priority for the use of that ¥200.0 billion from a medium‐ to long‐term standpoint, we also believed that the free cash generated during this mid‐term management strategy period should be used firmly to improve ROE, the quantitative target investors are most focused on. We manage new investments on a ROIC basis, but it takes about five years to achieve our target ROIC of 10%. Within the current mid‐term management strategy period, it is difficult for investments made in the first or second year to reach a 10% ROIC unless they are outstanding opportunities. Taking that time horizon and relative return into account, we decided to allocate this capital to share buybacks. Even so, that alone would not be sufficient to achieve our ROE target, so we also need to show clear profit growth on the numerator side. We believe our relatively strong first‐quarter results should already demonstrate that the numerator is growing steadily. That is the main reason behind this revision to capital allocation: we believed it would demonstrate our strong commitment to achieving the ROE target from both sides of the equation. As for leverage, we have not disclosed a specific Net DE ratio target. At this stage, we remain conscious of our credit rating and intend to maintain a disciplined financial profile, so around 0.6 times is one benchmark for us. That said, the ratio was 0.43 times at the end of FY2025 and 0.46 times at the end of the first quarter of FY2026, leaving us with ample debt capacity. Accordingly, we have not set out a formal Net DE ratio target at this stage.

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Regarding Nowlake, its first-quarter performance appears to be somewhat weaker. Including subprime-related issues, should we understand that there are no significant concerns at this stage about the current operating environment and the outlook ahead? CFO Tajima: At Nowlake, the bad debt expense ratio on loans originated to subprime borrowers in 2023 or earlier has been rising since around the third quarter of FY2025. In terms of the customer segments to which Nowlake provides loans, subprime borrowers used to account for a large portion, but the customer mix has gradually been shifted toward near‐prime and prime borrowers. That said, the bad debt expense ratio on loans originated to subprime borrowers in 2023 or earlier has risen since the second half of FY2025, and we believe this may reflect the impact of factors such as the Trump tariffs, which appear to have affected the most vulnerable customer segment. We had already tightened credit for this segment and strengthened risk management, but the impact has continued since the third quarter of FY2025 and has remained into the first quarter of this fiscal year. Meanwhile, both the volume and the number of new originations have been growing steadily. Therefore, if we continue to execute the necessary measures for this customer segment, we expect a recovery in the second half of this fiscal year. Our forecast for this fiscal year is also based on the assumption of such a recovery in the second half. That is the reason why Nowlake’s results for the first quarter of this fiscal year declined year on year. <2nd questioner> Regarding the details of the new investments, page 8 of the IR materials outlines this fiscal year’s growth investment framework. The investments highlighted there— namely those related to power, aircraft-related operations (DASI), and natural gas development and production in the U.S.—appear to be the type that could begin contributing to the P&L relatively quickly. In addition, since the beginning of July, further investments have been announced, including the machine tools distribution business in Europe. Could you elaborate on the strategic rationale behind these investments, the expected timing of their earnings contribution, and their approximate scale? I understand that some aspects of investment size may not be disclosed, but I would appreciate any guidance or color you may be able to provide. CFO Tajima: With respect to new investments, since the announcement of our FY2025 full‐year results in May, our dialogue with investors, including during the Global IR meetings in June, has led us to a clear recognition that we need to steadily build a pipeline of high‐quality new investments that can serve as future earnings sources. We are looking not only at achieving the 15% ROE target under GC2027, but also at what lies beyond it. From that perspective, we believe it is essential to steadily accumulate an investment pipeline that will support future earnings growth. We therefore conducted another round of information gathering across our business units. There are a number of projects under consideration, including some large‐scale opportunities, but that does not mean we will invest in all of them, as each case will be subject to

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rigorous internal review and approval. Even so, we were able to confirm that a solid pipeline is building, particularly in Strategic Platform Businesses, and that is the background to the current allocation of the ¥250.0 billion growth investment framework. As for the projects already reflected in first‐quarter earnings, as you correctly pointed out, those highlighted on page 8 of the IR materials are investments with relatively near‐term earnings impact. In the case of the SmartestEnergy group’s wholesale and retail power trading business in Spain, Portugal and other markets, partial earnings contribution has already started in the first quarter. In the case of DASI’s aircraft parts business in the U.S., we had already owned it as an affiliate, but its conversion into a consolidated subsidiary makes the earnings contribution more certain. The same applies to the natural gas development and production business. In other words, these are projects where earnings contribution begins relatively quickly, essentially from the point of acquisition. We also have several projects that have already completed internal approval and are expected to start contributing to profit going forward. As the timing is not yet appropriate for disclosure in all cases, I will refrain from going into detail on those here. One disclosed example that we believe is likely to begin contributing to earnings in the near term is the South African car maintenance business announced recently. We already operate the B‐Quik car maintenance business in Thailand, and our intention is to replicate that business model in South Africa, where motorization is relatively advanced among fast‐growing countries. Since operations have already commenced and we are acquiring a business with an established operating model in the market, we expect earnings contribution to begin relatively soon. Regarding the performance of the Strategic Platform Businesses summarized on page 6, results appear to vary by business. How do you assess the overall progress of the Strategic Platform Businesses? Please also comment on businesses other than Nowlake. CFO Tajima: In short, performance is progressing in line with our expectations. There have been no major surprises so far, and we will continue to improve and strengthen the businesses. First, regarding Helena, our Agri‐inputs Retail Business, as we explained at the full‐year earnings briefing, the operating environment remains challenging. Its performance is influenced by U.S. farm income and grain prices. Nevertheless, in this environment, we view positively the fact that adjusted net profit has increased year on year, supported by sales of proprietary products. In the United States, Congress is currently considering an additional USD 11 billion in farmer assistance, on top of the USD 12 billion in assistance provided earlier this year. In addition, if the U.S.‐China discussions scheduled for this autumn lead to purchases of U.S. grain, this could support demand in the fall and following spring fertilizer application seasons. In our Mobility Business in North America, as mentioned earlier, Nowlake’s adjusted

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net profit declined year on year. This reflects trends that continued from the second half of the previous fiscal year. As this fiscal year’s profit plan is weighted toward the second half, we need to closely monitor the progress going forward. With respect to subprime lending originated before FY 2023, we have significantly tightened credits. As the targeted customer base has shifted toward higher credit‐quality segments, we will continue to steadily build new assets. In the Wholesale and Retail Power Trading Businesses, we incurred a significant loss in the fourth quarter of the last fiscal year. Accordingly, we expect a substantial year‐on‐ year improvement in the fourth quarter of this fiscal year. The issues that arose in the fourth quarter of last fiscal year have been resolved, and adjusted net profit in the first quarter of this fiscal year was at the same level as in the first quarter of last fiscal year, before the major losses occurred. We believe that, if performance continues to progress steadily through the second, third, and fourth quarters, the business will be on track. The Aviation Aftermarket and Asset Trading Business has shown the strongest growth. In particular, the businesses operated directly by headquarters have continued to perform well, as they did last year. In the Food Marketing and Manufacturing Business, profit declined, mainly due to Iguacu Vietnam, an instant coffee company in Vietnam. Previously, the company was unable to apply hedge accounting, and the impact of hedge gains and losses caused significant quarterly fluctuations in profit. From this fiscal year, hedge accounting has been applied. As seen at Iguacu Brazil, we expect this to reduce one‐off gains and losses. However, as this is a transition period, first‐quarter profit for this fiscal year included a negative impact of approximately ¥1.0 billion from the reversal of hedge gains recognized in the previous fiscal year. This does not reflect the underlying earning power of the business, which we believe is performing steadily. The IT and digital solutions business reported lower profit, partly because I‐DIGIO secured a major contract in the previous fiscal year, creating a high comparison base. We expect its earnings to recover going forward. In the Pharmaceutical Sales Business, profit increased due to the new investments associated with the succession of Sumitomo Pharma’s business in Asia in the previous fiscal year. This is an area we intend to continue expanding. While some businesses recorded year‐on‐year profit declines, our original plan anticipated recovery in the second half, there have been no surprises comparable to those experienced in the fourth quarter of last fiscal year. We do not believe that the business environment has deteriorated materially. Overall, we assess performance as progressing steadily in line with our expectations. <3rd questioner> The strong performance of the Energy & Chemicals Division stands out significantly. In particular, the profit growth in the chemical-related business was especially notable. Could you explain the background behind this and your outlook from the second quarter onward? CFO Tajima: Please refer to page 16 of the IR materials, titled “Petrochemical business

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(Olefins/Naphtha) / Enhancement of Trading Capabilities” Regarding the chemical‐related business, profit declined significantly in FY2025 due to factors such as the absence of hedging and the burden of unprofitable contracts, and we recognized this as one of our key challenges. In response, the chemicals team has worked to refine three main areas. First, we thoroughly reorganized unprofitable assets and contracts. Examples include the termination of a propylene tank contract in Europe and the end of unprofitable transactions with customers in the United States. Second, we integrated the naphtha and olefins trading organizations. Previously, naphtha trading had been handled by the energy team, while olefins trading after production from crackers had been handled by the chemicals team. However, because these products are linked in terms of product characteristics and supply‐demand balance, we integrated the trading functions. Through this organizational integration, we have been building a structure that enables us to make integrated proposals to customers from various angles based on market conditions, and it was in the course of this effort that the recent heightened tensions in the Middle East arose. Third, we have worked on optimizing trading assets, which are strengths of the chemicals team. This has enabled us to establish a structure that allows us to provide products to a wide range of customers in an agile manner. Based on the lessons learned from the sharp profit decline in the previous fiscal year, we believe that these efforts to refine our trading assets and integrate functions through organizational integration enabled us to maximize our trading capabilities and generate synergies amid the current situation in the Middle East. In a trading business that handles products whose prices fluctuate depending on market conditions, there are very few opportunities to demonstrate our capabilities when the market is calm. However, in a volatile market environment, we believe our functions were able to demonstrate their effectiveness and generate profit. As for the outlook for the chemical‐related business going forward, as I explained, we have lightened our position and further refined our operations, so we believe the earnings model has a high degree of reproducibility. We certainly hope that a situation such as a closure of the Strait of Hormuz will not occur again, but if something similar were to happen, we believe we would again be able to demonstrate our capabilities. Regarding SmartestEnergy, its performance has weakened somewhat since Q4 FY2025, and net profit for Q1 FY2026 was ¥2.2 billion. In the past, annual net profit had been around the ¥23.0–25.0 billion level. Could you update us on the current situation in Q1 and share your outlook for Q2 and beyond? In addition, could SmartestEnergy’s performance serve as a driver of improvement from Q2 onward? CFO Tajima: Net profit for Q1 FY2026 includes a one-time loss related to the revision of FY2025 net profit. Excluding this one‐time item, adjusted net profit is higher than in the same period of the previous year. We were quite concerned about Q4 FY2025 at the time, but SmartestEnergy has since

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addressed a variety of issues, including appropriate position management and hedging, as well as reviewing how it manages customers, particularly in the retail business. As a result, while earnings in Q1 FY2026 did not grow significantly, the results were reasonably solid. Regarding the outlook for Q2 onward, due to seasonality, profits tend to be weighted toward the second half of the fiscal year. In Q4 FY2025, we booked a large loss. If we firmly implement the measures developed in response to this loss during FY2026 and avoid a repeat of such losses, we expect the Wholesale and Retail Power Trading Business, including SmartestEnergy, is generally on track and has good prospects going forward. <4th questioner> Regarding the Food & Agri Business, Creekstone and Iguacu Vietnam appear to have posted weaker results year on year. Could you comment on the situation in the first quarter and your outlook from the second quarter onward? CFO Tajima: If you refer to adjusted net profit on page 4 of the IR materials, the Food & Agri Business was ¥33.0 billion, flat year on year. Looking at the breakdown, one positive factor was MacroSource, the fertilizer wholesale business in the U.S. Since it purchased fertilizer when market prices were low in the previous fiscal year and was able to sell it at a time when prices had risen at the beginning of this fiscal year, there was a certain positive effect. In addition, while Helena, the U.S. agri‐inputs retail business, continues to face a challenging business environment, sales of proprietary products remained at the prior‐year level, and adjusted net profit increased year on year. As you pointed out, these positive factors were offset by Creekstone and Iguacu Vietnam. At Creekstone, in response to the issues faced in the previous fiscal year, the company has thoroughly pursued equipment and plant efficiency improvements, including labor‐ saving initiatives. It is also working to maximize value by expanding the use of by‐ products generated in the production process, such as offal and beef tallow, into areas including cosmetics. That said, we are currently at the bottom of the cattle cycle, and live cattle prices remain elevated. Beef prices have also risen somewhat, but not to a degree sufficient to fully pass through costs. Meanwhile, peers such as Tyson Foods and JBS are proceeding with plant closures and production cuts under these circumstances, and we believe the supply‐demand balance will improve going forward. There may be brighter signs from next year onward, but we expect a challenging situation to continue this fiscal year. For now, we are doing what we can and preparing to ensure that we can capture upside when the business environment improves. Iguacu Vietnam introduced hedge accounting from this fiscal year. Previously, hedge accounting had not been applied, and period earnings fluctuated significantly due to mark‐to‐market valuation gains and losses, making the situation difficult to understand. We expect this to improve with the introduction of hedge accounting. The first quarter was a transition period, and there was an approximately ¥1.0 billion negative impact as a reversal of hedge gains recorded in the previous fiscal year. Excluding this factor, we

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do not see any issue with the underlying earnings capacity, and the business is progressing as planned. We expect profits to accumulate in the second half of the fiscal year. Regarding the profit contributions from improvements of existing businesses and growth investments shown in the waterfall chart on page 2 of the IR materials, how has your view changed in light of the high progress against the full-year FY2026 forecast? Also, while you intend to increase investments going forward, how should we think about profit contributions from improvements of existing businesses and new investments during the period of the mid-term management strategy? CFO Tajima: As for the profit contribution from growth investments, against the full‐ year FY2026 forecast of ¥21.0 billion, the first quarter came in at ¥9.0 billion, representing steady progress. Investments executed to date are making solid profit contributions, and investments executed in the first quarter will also be incorporated into earnings and lead to further profit growth going forward. As for improvements of existing businesses, regarding the increase in profits in Chemicals mentioned earlier, our analysis is that this was not simply a one‐time gain, but that it included a substantial contribution from improvements of existing businesses, and therefore we believe it has reproducibility and continuity. Even if some one‐time gains are included, against the full‐year forecast of ¥33.0 billion, approximately ¥20.0 billion has already been recorded. The most significant item within improvements of existing businesses is the SmartestEnergy group, which posted a loss in the fourth quarter of the previous fiscal year. Our plan assumes a return to normal in the fourth quarter of this fiscal year, which should make a large contribution numerically. In Chemicals, meanwhile, the picture is that losses recorded in the previous fiscal year were recouped in the first quarter of this fiscal year. Taking these factors together, we believe overall progress has been steady. <5th questioner> Regarding LNG trading, CEO Omoto previously said that, among the Sogo Shosha, Marubeni handles a large volume of short-term trading. In the first quarter, against the backdrop of the heightened tensions in the Middle East, what kind of situation did you face, and by roughly how much did profit increase year on year? CFO Tajima: A rise in LNG prices also leads to increases in procurement costs and transportation costs, so it does not simply mean that we make money on the long side as it is. However, throughout the first quarter, we believe we generated solid earnings compared with the previous year. Iwane: While we do not disclose the absolute amount, even in a very difficult procurement environment, from this quarter we properly applied hedge accounting and other measures, and although we faced challenges, the result was a slight increase in profit year on year.

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<6th questioner> I very much appreciate your decision to review capital allocation at this early stage. My understanding is that the additional ¥200.0 billion in shareholder returns announced this time was positioned as one of the measures aimed at achieving the FY2027 ROE target of 15% under GC2027. You also indicated that you are considering an upward revision to the forecast. Given these additional shareholder returns and the solid earnings momentum, is it reasonable to interpret this as meaning that your confidence in reaching the ROE target of 15% has risen quite significantly? From a mechanical calculation standpoint, it seems that some additional actions may still be required, so I would appreciate hearing your current thinking. CFO Tajima: Our confidence in achieving the ROE target of 15% has increased considerably. We believe that the ROE target should be achieved not through shareholder returns alone, but through a combination with profit growth. At the time of the second‐quarter results, we plan to review the full‐year forecast based on the market conditions and FX rates at that time, among other factors, but we expect that the valuable buffer from the strong first‐quarter results will remain. In light of this situation, we believe that we will of course be able to show solid returns this fiscal year, and that, when taking into account profit contributions from new investments as well, we may also be able to deliver a commensurate level of returns next fiscal year. Regarding the increase in dividends from affiliates, which is one of the factors behind the improvement in core operating cash flow, could you explain the background, the sustainability of this trend, and which businesses are contributing to it? CFO Tajima: Please refer to page 1 of the IR materials. We define and manage the figure obtained by dividing core operating cash flow by adjusted net profit as the cash conversion rate, and this improved from 120% in the first quarter of FY2025 to 140% in the first quarter of FY2026. The same rate had been above 130% in FY2024, but declined to 120% in FY2025, and as a result we strengthened internal awareness regarding cash. Whether for new investments or shareholder returns, cash is the resource that underpins capital allocation. In order to steadily accumulate cash, it is essential that each business division fully recognize its importance, and for that reason, beginning this fiscal year, we have set not only P&L budgets but also cash conversion rate budgets with each business division. Focusing on P&L alone is not sufficient, and we have therefore introduced an evaluation framework linked to core operating cash flow as well. As a result of these initiatives, management awareness among our business divisions with respect to cash as a whole has increased considerably, including areas that directly affect core operating cash flow, such as working capital management and reducing costs associated with dividends. The increase in dividends from affiliated companies this time is also a reflection of this change in awareness brought about by managing cash conversion rates. In the past, there were cases where we refrained from having affiliated companies pay dividends, taking into account their financing conditions and other factors, but we are seeing a clear shift in behavior, which we view

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positively. <7th questioner> Could you explain your thinking on capital allocation? Based on the current company plan and the calculations from pages 10 and 11 of the IR materials, the total payout ratio for the three years of GC2027 comes close to 50%. Naturally, I understand that this also depends on what level of ROE you intend to target in the next mid-term management strategy, but do you believe it would be appropriate to raise the total payout ratio going forward from the current level of around 40%? Page 10 of the IR materials also mentions “short-term effects on capital efficiency,” and investors are highly interested in how this will develop going forward. From a more long-term perspective, what message do you intend to communicate to investors regarding capital efficiency improvement? If you have any thoughts at this point, please share them. CFO Tajima: First of all, as a corporation, we recognize that ROE is important. One of the key issues is how we should set the ROE level we aim for over the medium to long term, including whether we should establish it as a clearly defined target. In doing so, we need to consider it in conjunction with our sustainable growth. What will matter is the extent of our growth potential through new investments and improvements of existing businesses. I would refrain from commenting on specific figures, as doing so could lead to misunderstandings, but basically, if the total payout ratio is raised, then, naturally, assuming ROE of 15%, the sustainable growth rate would decline. As our profit scale grows, if there are changes in opportunities for growth investments and in the time required for growth, it is possible that shareholder returns could be increased. On the other hand, at our current scale, if we determine that we can achieve sufficient results through growth investments, then we believe we should allocate capital more aggressively to reinvestment rather than increasing shareholder returns. We see this as one of the key themes in the post‐GC2027 period. <8th questioner> Regarding capital allocation on page 10 of the IR materials, cash-in has increased by ¥250.0 billion this time. Could you please provide an explanation of the breakdown of this increase? In addition, ¥100.0 billion has been allocated to share buybacks in FY2026. Should we understand that this is the planned amount of share buybacks for FY2026 for the time being? CFO Tajima: The ¥600.0 billion of divestments and the ¥2,000.0 billion of core operating cash flow shown on the left side of the bar chart on page 10 are the figures that were set when we formulated GC2027, our current mid-term management strategy. If these amounts remain unchanged, we believe that the ¥250 billion at the top of the left‐hand side would need to be funded through leverage, such as

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borrowings, in order to finance the new investments, CAPEX, and shareholder returns shown on the right‐hand side of the chart. As I mentioned at the beginning, divestments and core operating cash flow are both steadily accumulating. Therefore, whether the entire ¥250.0 billion will be funded by borrowings is something we will need to monitor over the next roughly one to two years. What we intended to illustrate with this chart is that we will flexibly utilize leverage on the premise of maintaining financial discipline. With regard to shareholder distributions, of the ¥200.0 billion shown, we would like you to understand that we are firmly committed to executing the ¥100.0 billon share buyback in FY2026 during this fiscal year. On page 4 of the IR materials, adjusted net profit in three operating segments — Metals & Mineral Resources Division, Energy & Chemicals Division, and Aerospace & Mobility Division — increased significantly year on year. We understand that this increase includes both one-time factors arising from the heightened tensions in the Middle East and factors that could continue to support earnings growth from the second quarter onward. Could you share your views on the earnings outlook from the second quarter onward for these three operating segments? CFO Tajima: As for the Aerospace & Mobility Division, as well as the Next Generation Business Development Division, which also posted a large increase in adjusted net profit, the impact of the heightened tensions in the Middle East on the increase in profit was minimal. For the Metals & Mineral Resources Division and the Energy & Chemicals Division, it is extremely difficult to clearly separate the profit increase attributable to the heightened tensions in the Middle East from the increase attributable to other factors. For example, in the energy business, we do not have significant involvement in upstream energy projects, and therefore we were not in a position to be significantly affected by the rise in oil prices associated with the heightened tensions in the Middle East. In addition, with respect to MIECO, which conducts natural gas pipeline trading in the United States, while there may have been both positive and negative indirect effects, we understand that there was no direct impact. In the chemicals business, after taking into account the losses incurred in the previous fiscal year, we have been sharpening our focus on the businesses we should prioritize this fiscal year, and that has become the basis for the significant profit growth. For this reason, it is difficult to isolate and assess only the impact of the heightened tensions in the Middle East. When announcing our FY2025 results, we analyzed Middle East‐related risk scenarios in three stages, and the first quarter results this time were affected by the “price surge” that we had assumed as the Phase 1. Including the effect of the price surge as well as cost‐related impacts such as diesel fuel, we believe the impact amounted to several tens of billions of yen. However, thanks to the response of the Japanese government and the efforts of private‐sector companies, supply chains were restored, and as a result, the impact has not been as severe as initially feared.

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On the other hand, from the second half onward, if a similar event were to occur again, the impact could expand in proportion to the combination of the “depth” and “duration” of the event — in other words, its “area.” Accordingly, we believe it will be necessary to assess the situation accurately and respond both prudently and with agility.

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