Impact of COVID-19 Spread on Business and Supply, and Countermeasures

「If an infectious disease occurs at any of our Group’s workplaces, including our subsidiary in Malaysia, product supply could be disrupted by workplace closures, production stoppages and other measures. In addition, if an outbreak of an infectious disease causes prolonged disruption to the logistics networks needed to transport raw materials, products and other items, it could affect our operating results.」

「In Japan, economic activity normalized as restrictions on movement were eased.」

「In the electronics industry, one of the markets relevant to our Group, the impact of China’s COVID-19 countermeasures was seen in production activity,」

「In Japan, economic activity normalized as the spread of COVID-19 subsided and restrictions on movement were eased, but the outlook remained uncertain due to concerns about the impact on consumption from the rapid depreciation of the yen, in addition to rising raw material and energy prices.」

「During the cumulative consolidated third quarter, the global economy showed signs of stagnation in the summer due to a renewed spread of COVID-19 and the resulting supply chain disruptions, although recovery progressed mainly in developed countries.」

「Although conditions in Japan’s manufacturing sector improved, supported by increased exports accompanying the economic recoveries in the United States and China, economic activity remained restricted as the end of the COVID-19 pandemic was still not in sight.」

「Our Group has long engaged in business continuity management (BCM) activities to fulfill its responsibility to ensure a stable supply of products to customers. In response to the spread of the novel coronavirus, we have taken measures including securing raw materials and product inventories and increasing cash on hand to prepare for unforeseen events. Under our management policy that “safety and health take priority over everything,” we will continue and rigorously implement basic measures to “avoid infection, prevent transmission and keep the virus out,” including handwashing, disinfection, wearing masks, adequate ventilation and maintaining social distancing.」

「During the first 9 months of the fiscal year, social and economic activity that had stagnated owing to the spread of COVID-19 gradually resumed in the first half, and recovery continued owing to proactive economic measures in various countries. However, the end of the pandemic remained out of sight as infections spread again in Europe, the United States and Japan, and the outlook remained uncertain.」

「During the first half of the fiscal year, social and economic activity that had stagnated owing to the spread of COVID-19 was beginning to resume, but concerns about a renewed spread of infections remained, and the situation continued to be difficult to predict.」

「During the cumulative consolidated first quarter, the global and Japanese economies deteriorated rapidly due to the spread of the novel coronavirus. In the electronics industry, one of the markets relevant to our Group, industrial equipment-related activity was sluggish due to the global decline in automobile unit sales and the stagnation of corporate capital investment, while new developments included increased demand in the ICT market accompanying the expansion of remote work.」

「Under our management policy that “safety and health take priority over everything,” we established a task force in response to the spread of the novel coronavirus and put preventive measures in place, including reducing the scale of meetings, prohibiting travel between workplaces, taking employees’ temperatures when they report to work and requiring masks. We also introduced teleworking and took other steps to ensure employee safety and prevent infections. In addition, we increased inventories of our products to ensure stable supply, provide reassurance to customers and prepare for unforeseen events, and took measures including increasing cash on hand.」