Impact of the COVID-19 Pandemic on Business and Capital Investment

「Our Group continues to work on infection prevention in the workplace and is advancing smooth business operations while managing the implementation of telework and remote working at each location according to the spread of infection.」

「Our Group's automotive-related materials, including our core automotive exhaust-gas purification catalyst materials, dental materials, industrial structural components and electronic component materials performed steadily as demand recovery was led by the North American and European markets, where economic normalization was progressing.」

「Our Group's automotive-related materials, including our core automotive exhaust-gas purification catalyst materials, dental materials, industrial structural components and electronic component materials performed steadily as demand recovery was led by the North American and European markets, where economic normalization was progressing.」

「The North American market, where GDP recovered to levels approaching those before the COVID-19 crisis due to large-scale economic stimulus measures and the expansion of COVID-19 vaccinations, led demand. Automotive-related materials, including our core automotive exhaust-gas purification catalyst materials, performed strongly, resulting in sales above expectations.」

「Our Group was severely affected by the spread of COVID-19 during the first half, mainly through sales of automotive products, including our core automotive exhaust-gas purification catalyst materials. In the second half, however, sales exceeded expectations due to the recovery in vehicle unit sales and advance orders placed in anticipation of tight ocean logistics.」

「Our Group was severely affected by the spread of COVID-19, mainly through sales of automotive products, including our core automotive exhaust-gas purification catalyst materials. However, it is now in a recovery phase after bottoming out in the first-quarter consolidated accounting period (1 April 2020 to 30 June 2020), and sales grew steadily as inventory sales by local sales subsidiaries, an initiative undertaken for some time, enabled us to meet the increase in demand from a faster-than-expected recovery in the automotive market.」

「Our Group was severely affected by the spread of COVID-19 during the cumulative second-quarter consolidated accounting period, mainly through automotive product sales, including our core automotive exhaust-gas purification catalyst materials, although sales began to recover in the second quarter. As a result, sales for the cumulative second-quarter consolidated accounting period amounted to ¥8,970 million, down 35.0% year on year, reflecting a 35.0% year-on-year decline in sales volume and other factors; operating income was ¥58 million, down 96.8% year on year, due to the decline in sales volume and the effects of production adjustments; ordinary loss was ¥8 million due in part to foreign exchange losses; and the quarterly net loss attributable to owners of the parent was ¥81 million.」

「Our Group was also severely affected by the worldwide spread of COVID-19 during the cumulative first-quarter consolidated accounting period, and sales of automotive products, including our core automotive exhaust-gas purification catalyst materials, declined sharply.」

「Although it is difficult to predict the impact on the operating results and financial position of our Group of a novel infectious disease for which vaccines and treatments have not been established, such as the COVID-19 pandemic that continues worldwide, sluggish personal consumption and declining corporate willingness to invest in equipment as a result of the spread of infection could have a material impact on our Group's operating results and financial position. In addition, restrictions on the movement of people may delay the schedule for capital projects, including by preventing pre-purchase inspections of machinery and equipment.」