Sharp increases in subcontracting and material costs

「The market environment remains challenging because of structural issues such as weaker consumer sentiment, against the backdrop of higher construction costs resulting from surging prices for materials and residential equipment, as well as shortages of skilled workers and construction management personnel.」

「The renovation market in which our Group operates continued to face a challenging business environment due to persistently high construction material prices, rising labor costs, and a chronic shortage of skilled workers.」

「Material prices remain elevated because of higher timber costs and transportation expenses, with no recovery yet in sight. There are also concerns about factors that could weaken consumer sentiment, including lower real wages resulting from the weaker yen and higher prices, and the situation remains uncertain.」

「On the other hand, downside risks to the economy arising from higher raw material prices caused by the situation in Russia and Ukraine, volatility in the financial and capital markets, and supply-side constraints remain.」

「In the renovation industry in which we operate, construction material prices remain persistently high because of surging crude oil prices, the wood shock, and higher logistics costs. The situation remains uncertain, with some products subject to further price increases.」

「Construction-material prices in the remodeling industry in which we operate continue to rise, driven by soaring wood and raw-material prices and higher logistics costs. In addition, concerns remain over the impact on consumer sentiment of declining real wages caused by higher prices, and close monitoring remains necessary.」

「The remodeling industry in which we operate continues to show a gradual recovery, but remains in an unpredictable environment, including soaring construction-material prices driven by the wood shock, raw-material and oil prices, logistics costs, and fluctuations in financial and capital markets.」

「In the remodeling industry to which the company belongs, the order environment remains difficult. High construction material prices and supply chain disruptions have caused delays in the delivery of residential equipment, forcing construction work to be suspended and construction schedules and orders to be postponed.」

「The remodeling industry in which we operate continues to experience extended construction periods due to prolonged delivery times for certain materials caused by the semiconductor shortage. In addition, construction-material prices continue to rise against a backdrop of soaring wood and raw-material prices and higher logistics costs, leaving the outlook uncertain.」

「In addition, the situation remains uncertain, including because of surging construction material prices.」

「In addition to intensifying competition for orders, the Company continues to face a challenging business environment due to surging labor costs and higher construction material prices.」

「However, if prices surge because subcontractors request price increases or demand for materials rises, this may affect our business performance and financial condition.」