Impact on Business Performance and Operations from the Spread of COVID-19

「Japan's economy during the current consolidated fiscal year moved toward normalization of social activity following the reclassification of COVID-19 to Category 5, while inbound demand increased and signs of recovery emerged in corporate activity and personal consumption, leading to a moderate recovery.」

「Japan's economy during the six-month period of the current consolidated fiscal year recovered moderately as restrictions on movement were eased and inbound demand recovered.」

「Japan's economy during the three-month period of the current consolidated fiscal year recovered moderately as social activity moved toward normalization after the COVID-19 pandemic.」

「Japan's economy during the current consolidated fiscal year moved toward a gradual recovery as the transition to living with COVID-19 progressed.」

「During the nine-month consolidated cumulative period, Japan's economy moved toward a gradual recovery under the conditions of living with COVID-19, but raw material and fuel prices continued to rise against the backdrop of the prolonged situation in Ukraine and the weaker yen.」

「During the first quarter of the current consolidated fiscal year, there were no newly arising business or other risks, and no material changes to the business or other risks described in the securities report for the previous fiscal year.」

「Measures such as restrictions on economic activity due to the spread of COVID-19, as well as infections among employees, may affect the Group's business activities.」

「The situation remains uncertain amid concerns about a downturn in the economy due to the spread of newly emerging variants, disruption to logistics, and the continued high cost of raw materials and fuel.」

「During the six-month consolidated cumulative period, Japan's economy remained in a difficult situation due to the impact of COVID-19. Although social and economic activity is expected to normalize and the economy to recover as vaccinations progress, the risk of a resurgence in infections remains a concern, leaving the situation uncertain.」

「Japan's economy during the three-month period of the current consolidated fiscal year was expected to recover moderately as vaccination was promoted, despite the continuing impact of the spread of COVID-19. However, the outlook remained uncertain amid the risk of renewed infection spread, including the spread of variants.」

「Japan's economy during the nine-month period of the current consolidated fiscal year became uncertain going forward as infections began to spread again from around autumn, despite some expectations of a recovery after the first wave of COVID-19 had passed.」

「The paper and pulp industry, which includes the Group's major customers, is a provider of essential goods, and we expect a certain level of demand to be maintained even during an economic slowdown triggered by the spread of COVID-19. Accordingly, estimates of allowance for doubtful accounts and the recoverability of deferred tax assets, among other items, are calculated on the assumption of normal economic activity.」

「There have been no material changes from the information described under Additional Information in the annual securities report for the previous consolidated fiscal year regarding the assumptions used in accounting estimates and other matters concerning the impact of COVID-19 on the Group's business during the first quarter of the current consolidated fiscal period.」

「The spread of COVID-19 may affect the Group's performance and operating conditions.」