Risk of supply delays and lower capital investment due to COVID-19
First written in FY2020. 8 of 18 entries say "Materialised", first in FY2021-Q1. Latest entry: FY2025.
The whole theme swung hardest in 2020: 103 of 175 companies on the "Worse" side.
- FY2025ReframedAnnual report
「Our company has major sites in Japan and faces the risk of equipment damage and production stoppages caused by natural disasters such as earthquakes, typhoons and torrential rain. Our business also faces the risk of being affected by outbreaks of infectious diseases. We are working to mitigate these effects by strengthening information sharing with suppliers and major customers.」
The disclosure has been reorganised from a description focused on supply delays and lower capital investment risks specific to COVID-19 to general business continuity risks, including natural disasters and infectious diseases. - FY2024MitigatedAnnual report
「We expect automotive-related companies, which are major users of our Group, to perform steadily as semiconductor supplies stabilise and investment in next-generation mobility development expands.」
The company now expects stable semiconductor supplies and higher capital investment by automotive-related companies, indicating a shift from the previous risks of supply constraints and lower capital investment toward mitigation. - FY2024-Q3MitigatedAnnual report
「Automotive-related companies, which are major users of our Group, saw automobile production volumes recover as supply constraints on components eased. Capital investment and research and development investment to support new technologies, including electrification and other next-generation mobility development, also remained firm.」
The company states that supply constraints on components eased and automobile production volumes began to recover, indicating that the previous risks of supply constraints and lower capital investment were easing. - FY2024-Q2MitigatedAnnual report
「Automotive-related companies, which are major users of our Group, saw automobile production volumes recover as semiconductor supply shortages eased. Capital investment and research and development investment related to next-generation mobility development also remained firm.」
The company states that semiconductor supply shortages eased and automobile production volumes began to recover. It does not directly state that delivery delays for products it handles had been resolved, but indicates that supply constraints and production conditions at major customers were easing. - FY2024-Q1MitigatedAnnual report
「Automotive-related companies, which are major users of our Group, performed well as semiconductor shortages began to ease and automobile production volumes showed a stronger recovery trend. They also planned to actively invest in the development of next-generation mobility.」
The company states that semiconductor shortages began to ease and automobile production volumes showed a stronger recovery trend, indicating that the previous risks of supply constraints and lower capital investment had eased. - FY2023MitigatedAnnual report
「Delivery delays for products handled by our company due to supply constraints on semiconductors and components continued, but moved toward resolution in the fourth quarter. In addition, concentrated sales from large-scale equipment projects provided a major impetus for higher sales and profits.」
The company states that delivery delays caused by supply constraints on semiconductors and components continued, but moved toward resolution in the fourth quarter, indicating that the risk had eased compared with the previous fiscal year. - FY2023-Q3MitigatedAnnual report
「Delivery delays for products handled by our company due to supply constraints on semiconductors and components have continued, but signs of resolution have begun to emerge.」
The company states that delivery delays caused by supply constraints on semiconductors and components have continued, but signs of resolution have begun to emerge, indicating that the risk has eased compared with the previous quarter. - FY2023-Q2RestatedAnnual report
「During the second quarter of the current cumulative consolidated period, customers' willingness to invest remained high and orders were firm, but supply constraints on semiconductors and components had still not been resolved, and delivery delays for products handled by our company continued.」
Delivery delays for products handled by the company have continued due to supply constraints on semiconductors and components. The company states that customer willingness to invest and orders remained firm. - FY2023-Q1MaterialisedAnnual report
「In this environment, our Group has pursued key measures under the 10th Medium-Term Management Plan (FY2021–FY2023), whose basic policies are “Creating New Value” and “Thinking and Acting for Ourselves,” including establishing a framework to strengthen the automotive business, contributing to carbon neutrality in manufacturing, and strengthening the competitiveness of the engineering business. During the current cumulative consolidated period, customers' willingness to invest remained high and orders were firm, but supply constraints on semiconductors and components caused delivery delays for products handled by our company, resulting in lower sales.」
The company states that supply constraints on semiconductors and components actually caused delivery delays for products it handles, leading to lower sales. - FY2022MaterialisedAnnual report
「Automotive-related companies, which are major users of our Group, have been affected in their production activities by semiconductor shortages. However, as efforts to achieve a decarbonised society accelerated, capital investment focused on electrification remained firm.」
The company states that semiconductor shortages have actually affected the production activities of major customers. At the same time, it says that capital investment focused on electrification remained firm. - FY2022-Q3WorsenedAnnual report
「Automotive-related companies, which are major users of our Group, continued to face pressure on profits from the impact of global supply chain disruptions and soaring raw material prices, raising concerns as production and sales activities were affected.」
In addition to the supply and capital investment risks associated with COVID-19, global supply chain disruptions and soaring raw material prices have actually affected production and sales activities at automotive-related companies, broadening the risk factors. - FY2022-Q2MaterialisedAnnual report
「In addition, shortages of materials, including semiconductors, worldwide made some of the products handled by our company difficult to obtain and also affected sales activities targeting individual users.」
The company states that shortages of materials, including semiconductors, actually made some of the products it handles difficult to obtain and affected sales activities targeting users. - FY2022-Q1MaterialisedAnnual report
「At the same time, concerns about the outlook remained as shortages of semiconductors and resin made some of the products handled by our Group difficult to procure.」
Regarding the risk of supply delays and procurement difficulties, the company states that shortages of semiconductors and resin actually made some of the products it handles difficult to procure. - FY2021MaterialisedAnnual report
「Automotive-related companies, which are major users of our Group, saw production volumes begin to recover as demand, particularly in China, recovered. However, the impact of the spread of COVID-19 remained significant, and capital investment continued to be cautious.」
The company states that major customers' cautious approach to capital investment due to COVID-19 continued throughout the fiscal year. It also states that measures were implemented at each site to maintain the system for supplying products to customers. - FY2021-Q3MaterialisedAnnual report
「Automotive-related companies, which are major users of our Group, saw production volumes begin to recover as demand recovered in North America and China, but capital investment remained cautious. Demand related to the next-generation 5G communications standard remained strong among electrical, electronic and semiconductor-related companies, but capital investment was also sluggish in some areas due to the economic downturn. Among machine-tool and industrial-machinery-related companies, demand recovered in North America and China, while domestic capital investment remained sluggish, and production trends therefore lacked strength.」
In connection with the impact of COVID-19, major customers have continued to take a cautious approach to capital investment, or have kept investment at low levels. Although some recovery in demand has been seen in North America and China, the risk of lower capital investment has emerged in the actual business environment. - FY2021-Q2MaterialisedAnnual report
「Automotive-related companies, which are major users of our Group, temporarily suspended plant operations due to the spread of COVID-19, but production gradually recovered. However, as the recovery in automobile sales was expected to take some time, capital investment remained cautious.」
The company states that automotive-related companies actually suspended plant operations due to COVID-19 and that production gradually recovered, but that cautious capital investment continued because the recovery in sales was delayed. - FY2021-Q1MaterialisedAnnual report
「Automotive-related companies, which are major users of our Group, took a cautious approach to capital investment as sales in Japan and overseas remained sluggish and production activity contracted.」
The company describes sluggish sales by major customers, reduced production activity and a more cautious approach to capital investment due to COVID-19 as the actual business environment. It does not mention delays in product supplies from suppliers. - FY2020First statedAnnual report
「The anticipated risks include delays in product supplies from suppliers and a decline in capital investment by major customers due to an economic downturn. We are working to mitigate these effects by strengthening information sharing with suppliers and major customers.」
For COVID-19, the company has for the first time separately identified delays in product supplies from suppliers and lower capital investment by major customers as specific risks.