Impact of COVID-19 on the Domestic and Overseas Economies

「If an infectious disease pandemic occurs, it may affect the company's operating results through lockdowns in countries of production, restrictions on activity in Japan and the spread of infection.」

「Regarding the impact of COVID-19 on the company, the company has prepared its accounting estimates based on the assumption that the e-commerce market in which it operates has become established as a means of shopping under the new lifestyle, in which people reduce opportunities for contact due to the spread of infection, that there has been no material impact on the business as a whole, and that the impact on its financial position and operating results is immaterial.」

「Although COVID-19 is showing signs of subsiding, the effects seen to date, including delays in the arrival of goods, are expected to continue.」

「Although events performed well, overseas sales were affected by the continued impact of COVID-19-related lockdowns, with returns and order cancellations occurring one after another. Sales fell substantially to 74% of the same period of the previous year, and the Company expects the uncertain and challenging conditions to continue.」

「In overseas sales, although the company received a slight benefit from the weaker yen, returns and order cancellations occurred due to the impact of lockdowns caused by COVID-19, continuing from the first quarter.」

「In overseas sales, the effects of COVID-19-related lockdowns continued, with shipments suspended and orders cancelled one after another. Sales fell below the same period of the previous year, and the Company expects the uncertain and challenging conditions to continue.」

「Furthermore, the resurgence of COVID-19 is expected to prolong the uncertain outlook, including delays in the arrival of goods due to lockdowns in countries of production and increases in procurement costs and shipping charges caused by higher raw material and transportation costs, and may have a material impact on the company's business.」

「During the cumulative third quarter period, Japan's economy was gradually emerging from the difficult situation caused by COVID-19, although signs of recovery remained weak.」

「Looking ahead, recovery is expected to continue as measures are taken to prevent the spread of infection and vaccination is promoted, supported by the effects of various policies and improvements in overseas economies. However, close attention must be paid to the increasing risk of a downturn caused by the spread of infection.」

「In the e-commerce industry in which the company operates, according to the results of the April 2021 Household Consumption Status Survey (households with two or more people) announced by the Ministry of Internal Affairs and Communications in June 2021, the percentage of households using online shopping remained high at more than 50%, although it has been broadly flat since 2021.」

「If COVID-19 spreads rapidly or becomes prolonged, it may have a material impact on the company's business going forward.」

「During the cumulative third quarter period, Japan's economy remained in a difficult situation due to the impact of COVID-19, although signs of recovery were also evident. Looking ahead, as social and economic activity is raised while measures are taken to prevent the spread of infection, recovery is expected to continue, supported by the effects of various policies and improvements in overseas economies. However, close attention must be paid to the risk that the infection could push down domestic and overseas economies, and the outlook remains far from optimistic.」

「During the cumulative second quarter, Japan’s social and economic activity remained in a difficult situation due to the impact of COVID-19, although signs of a gradual recovery were also observed. Looking ahead, a continued recovery is expected as social and economic activity is raised while measures are taken to prevent the spread of infection, supported by the effects of various policies and improvements in overseas economies. However, the situation is such that the timing of the outbreak’s end may be delayed and its impact may continue throughout the fiscal year.」

「During the cumulative first quarter, the Japanese economy remained in an extremely difficult situation as it continued to deteriorate rapidly due to the impact of COVID-19. At present, with no clear prospect of when the outbreak will subside, it is extremely difficult to foresee its impact on our operating results and financial position, although」

「The impact of COVID-19 on the domestic and overseas economies requires close attention, and the outlook continued to be uncertain.」