Risk of fluctuations in demand and market conditions due to economic fluctuations

「The semiconductor manufacturing-related market targeted by the Group's core high-performance resin products business entered an adjustment phase and slowed, but gradually shifted toward recovery as the end of the consolidated fiscal year approached.」

「High-performance resin products reported lower revenue, as orders for semiconductor manufacturing equipment declined due to weak semiconductor market conditions outside AI applications.」

「Functional resin products reported higher revenue, as orders for high-performance resin products for semiconductor manufacturing equipment recovered and orders for functional films for solar cells performed well.」

「The semiconductor manufacturing-related market served by the Group's high-performance processed resin products and other growth and focus businesses entered an adjustment phase and slowed, but gradually shifted toward recovery as the end of the consolidated fiscal year approached.」

「Functional resin products reported lower revenue. Orders for functional films for solar cells and automotive applications recovered, but orders for high-performance resin-processed products for semiconductor manufacturing equipment decreased as semiconductor demand slowed.」

「Functional resin products reported higher revenue. Orders for high-performance resin-processed products for semiconductor manufacturing equipment decreased amid slowing semiconductor demand, but orders for functional films for solar cells and automotive applications recovered.」

「As the impact and restrictions associated with the spread of COVID-19 gradually eased and socioeconomic activity moved toward normalization, signs of an economic recovery emerged. However, the outlook remained uncertain due to higher costs resulting from surging raw material and energy prices and yen depreciation, as well as shortages of semiconductors, electronic components and other products.」

「As the impact and restrictions associated with COVID-19 gradually eased and socioeconomic activity moved toward normalization, signs of an economic recovery emerged. However, the outlook remained uncertain due to higher costs resulting from surging raw material prices and yen depreciation, as well as disruptions to global supply chains caused by factors including the Shanghai lockdown.」

「The Group operates in a variety of markets, but its principal markets are the apparel, automotive, semiconductor, housing, machine tool and real estate industries. If economic conditions deteriorate in these markets due to changes in economic conditions or other factors, the business concerned could be materially affected in terms of its operating performance and financial position, including through lower sales resulting from a decline in orders.」

「The economy began to recover as the number of infections declined from the middle of the fiscal year and the state of emergency and other restrictions were lifted. However, the recovery did not become full-fledged due in part to higher costs from surging raw material and fuel prices and reduced automobile production caused by semiconductor shortages.」

「The spread of COVID-19 was expected to reduce orders as a result of an economic downturn, affect production due to disruptions to supply chains and logistics in the apparel, automotive and other industries, and cause stagnation in sales and deliveries in Japan and overseas due to various voluntary restrictions and other limitations. Depending on the magnitude of these specific impacts, the Group's business development and operating performance could be materially affected.」

「During the first 3 quarters of the fiscal year, Japan's economic recovery slowed due to the impact of US-China trade friction, tighter export controls between Japan and South Korea, the UK's withdrawal from the EU and the sluggish European economy.」

「The recovery trend in the economy slowed due to the unresolved US-China trade friction, tighter export controls between Japan and South Korea, the UK's withdrawal from the EU and the sluggish European economy.」

「During the first 3 months of the fiscal year, observations began to emerge that Japan's economy, which had been on a prolonged though moderate recovery path, had stalled or entered a recessionary phase due to US-China trade friction and the resulting slowdown in China.」

「During the cumulative third-quarter period, there were no new business or other risks, nor any material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「During the cumulative first quarter of the fiscal year, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「If demand and market conditions fluctuate due to changes in economic conditions or trends in capital investment, they could have a material impact on the operating performance and financial position of the business concerned.」