Risk of Dependence on China for Imported Raw Materials

「Meanwhile, because production of yttrium and medium-to-heavy rare earths is concentrated in China and the impact of export controls continues, stable supplies of products using these materials could be disrupted.」

「資源面では、電動化や再生可能エネルギー関連分野における需要拡大に加え、主要供給国における輸出規制や管理強化の動きを背景として、レアアースを含む重要鉱物の需給逼迫や供給集中リスクが意識されました。」

「Resource prices were generally stable within a range, led by crude oil, but the risk of volatility associated with international conditions remains, and rare-earth prices increased.」

「The Company has established a procurement structure sourcing ZOC from 2 locations, its operations in China and the local subsidiary VREC in Vietnam, in order to diversify supply risks.」

「All raw materials used in the Group's principal products, including zirconium, rare earths and cesium, are imported from overseas. Accordingly, if their purchase prices or stable procurement are affected by political or economic conditions, the Group's operating results and financial position could be affected. In response, the Group is working to mitigate these risks by diversifying its sources of supply, including by procuring raw materials from multiple countries, and by regularly reviewing and maintaining appropriate inventory levels.」

「In SOFC (solid oxide fuel cell) and SOEC (solid oxide electrolyzer) applications, sales volume remained at the previous year's level, but revenue declined year on year due to lower selling prices resulting from fluctuations in market prices for raw materials.」

「The Group's principal product, automotive exhaust-gas purification catalyst materials, was affected by lower automobile production resulting from shortages of materials and parts stemming from the semiconductor shortage, as well as restrictions on activity under China's “zero-COVID” policy, and sales volume fell below the previous year. However, demand recovered as automobile sales rebounded. Meanwhile, revenue increased due to higher selling prices resulting from soaring raw-material prices and the foreign-exchange impact of the weaker yen.」

「The Group's principal product, automotive exhaust-gas purification catalyst materials, was affected by lower automobile production resulting from shortages of materials and parts stemming from the semiconductor shortage, as well as restrictions on activity under China's “zero-COVID” policy, and sales volume fell below the previous year. However, revenue increased due to higher selling prices resulting from soaring raw-material prices and the foreign-exchange impact of the weaker yen.」

「The Group's principal product, automotive exhaust-gas purification catalyst materials, was affected by lower automobile production resulting from parts shortages and fell below the previous year in sales volume, which had benefited from demand accompanying the sharp recovery in automobile sales. However, revenue increased due to higher selling prices resulting from soaring raw-material prices and the foreign-exchange impact of the weaker yen.」

「All raw materials used in the Group's principal products, including zirconium, rare earths and cesium, are imported from overseas. Accordingly, if their purchase prices or stable procurement are affected by political or economic conditions, the Group's operating results and financial position could be affected.」

「In response, the Group is working to mitigate these risks by diversifying its sources of supply, including by procuring raw materials from multiple countries, and by regularly reviewing and maintaining appropriate inventory levels.」

「All raw materials used in the Group's principal products, including zirconium, cesium and rare earths, are imported from overseas. If their purchase prices are affected by political or economic conditions, factors such as write-downs of inventories due to lower profitability could have a significant impact on the Group's operating results and financial position.」

「During the cumulative third quarter of the fiscal year under review, there were no newly arising business or other risks. There were also no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」

「No new business or other risks arose during the 2nd quarter cumulative period. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」

「No new business or other risks arose during the 1st quarter cumulative period. There were also no material changes to the risks described in the securities report for the previous fiscal year.」

「Operating profit was ¥4,218 million, down 9.0% from the previous fiscal year, due to higher depreciation and personnel expenses resulting from capital investment in preparation for higher demand, as well as other factors」

「Operating profit was ¥3,499 million, down 4.9% year on year, due to higher cost of sales resulting from higher raw-material prices and increased depreciation, as well as higher selling, general and administrative expenses and other factors」

「Operating profit was ¥2,243 million, up 2.1% year on year, despite higher cost of sales resulting from higher raw-material prices and increased depreciation, as well as higher selling, general and administrative expenses and other factors, supported by strong sales」

「Operating profit was ¥1,308 million, up 5.3% year on year, constrained by higher cost of sales resulting from higher raw-material prices and increased depreciation, as well as higher personnel expenses and other factors.」

「All raw materials used in the Group's principal products, including zirconium, cesium and rare earths, are imported from overseas.」

「During the cumulative third quarter of the fiscal year under review, there were no newly arising business or other risks. There were also no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」

「No new business or other risks arose during the 2nd quarter cumulative period. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」

「No new business or other risks arose during the 1st quarter cumulative period. There were also no material changes to the risks described in the securities report for the previous fiscal year.」

「All raw materials used in the Group's principal products, including zirconium, cesium and rare earths, are imported from overseas.」

「During the cumulative third quarter of the fiscal year under review, there were no newly arising business or other risks. There were also no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」

「All raw materials used in the Group's principal products, including zirconium, cesium and rare earths, are imported from overseas.」