Risk of an Economic Downturn and Declining Construction Investment Due to COVID-19

「During the interim consolidated accounting period, there were no material changes in the occurrence of major risks that management recognizes as potentially having a material impact on the financial position, operating results or cash flows of the consolidated companies, among the matters relating to the business conditions, financial position and other matters described in this interim report, or in the "Business and Other Risks" described in the annual securities report for the previous fiscal year.」

「During the interim consolidated accounting period, there were no material changes in the occurrence of major risks that management recognizes as potentially having a material impact on the financial position, operating results or cash flows of the consolidated companies, among the matters relating to the business conditions, financial position and other matters described in this interim report, or in the "Business and Other Risks" described in the annual securities report for the previous fiscal year.」

「Although COVID-19 has now been reclassified as a Class 5 disease under the Infectious Diseases Control Law, if infections spread again, the economy deteriorates once more and construction investment declines substantially, the performance and financial condition of the group may be affected.」

「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 management recognizes could materially affect the financial position, operating results and cash flows of the consolidated companies, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」

「During the cumulative second quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that management recognizes could materially affect the financial position, operating results and cash flows of the consolidated companies, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」

「During the three-month period ended 30 June, there were no new risks that management recognizes as having the potential to materially affect the financial position, operating results or cash flows of the consolidated companies, and no material changes to the business risks described in the annual securities report for the previous fiscal year.」

「The spread of COVID-19 is moving toward containment, and the economy, which had deteriorated as a result of the spread of the virus, has begun to show signs of recovery. However, if this situation does not last, infections spread again, the economy deteriorates once more and construction investment declines substantially, the performance and financial condition of the group may be affected.」

「There have been no significant changes from the previous consolidated fiscal year in the assumptions, including the expected timing of the end of the COVID-19 pandemic, and accounting estimates described in the “Additional Information” section of the previous fiscal year's annual securities report.」

「There have been no significant changes from the previous consolidated fiscal year in the assumptions, including the expected timing of the end of the COVID-19 pandemic, and accounting estimates described in the “Additional Information” section of the previous fiscal year's annual securities report.」

「As a result of restrained customer capital investment amid the spread of COVID-19 and other factors, orders received were ¥118,286 million (down ¥4,120 million year on year) and net sales were ¥114,718 million (down ¥18,201 million).」

「Although public-sector construction increased, revenue was ¥71,280 million, down ¥15,611 million year on year, due to customers restraining capital investment as a result of the COVID-19 pandemic and other factors, and a decrease in private-sector construction resulting from delays in the progress of large-scale building projects.」

「There have been no significant changes from the previous consolidated fiscal year in the assumptions, including the expected timing of the end of the COVID-19 pandemic, and accounting estimates described in the “Additional Information” section of the previous fiscal year's annual securities report.」

「A prolonged period before the pandemic comes to an end is anticipated. In the construction industry, the business environment is expected to remain challenging, with concerns including deterioration in construction profitability due to higher construction costs and delays in construction schedules resulting from infection-prevention measures, and fewer opportunities to receive orders due to changes in the external environment, such as trends in capital investment.」

「There have been no significant changes from the previous consolidated fiscal year in the assumptions, including the expected timing of the end of the COVID-19 pandemic, and accounting estimates described in the “Additional Information” section of the previous fiscal year's annual securities report.」

「There have been no significant changes from the previous consolidated fiscal year in the assumptions, including the expected timing of the end of the COVID-19 pandemic, and accounting estimates described in the “Additional Information” section of the previous fiscal year's annual securities report.」

「There have been no significant changes from the previous consolidated fiscal year in the assumptions, including the expected timing of the end of the COVID-19 pandemic, and accounting estimates described in the “Additional Information” section of the previous fiscal year's annual securities report.」

「However, the economy is deteriorating rapidly as the infection spreads. If this situation continues for an extended period and construction investment declines substantially, the performance and financial condition of the group may be affected.」