Risk of business disruption and recovery costs caused by natural disasters

「In responding to this risk, we have prepared a business continuity plan for each business location to enable the early resumption and continuation of business activities.」

「The easing of restrictions on activities has advanced the normalization of socioeconomic activity.」

「Overseas, the prolonged war following Russia's invasion of Ukraine, high inflation and monetary tightening mainly in the United States and Europe, and major supply chain disruptions caused by lockdowns in China, among other factors, resulted in a continued challenging business environment.」

「Overseas, raw material and energy prices, which had begun rising before Russia's invasion of Ukraine, remained elevated. The business environment also remained challenging due to major supply chain disruptions caused by lockdowns in China, among other factors.」

「As the impact of COVID-19 has persisted, sluggish consumer activity and declining inbound demand have continued.」

「The results for the nine months ended the third quarter reflected a rebound from the previous year's prolonged suspension of operations due to lockdowns, resulting in revenue of ¥29,383 million (up ¥3,009 million, or 11.4%, year on year), operating income of ¥934 million (up ¥403 million, or 75.9%), ordinary income of ¥1,167 million (up ¥541 million, or 86.4%), and quarterly net income attributable to owners of the parent of ¥430 million (up ¥247 million, or 135.0%).」

「During the first six months of the current consolidated fiscal year, inbound demand continued to decline in Japan due to the effects of COVID-19. In Japan and overseas, a challenging business environment persisted due to the impact on supply chains from rising raw-material prices, semiconductor shortages, logistics disruptions and other factors.」

「In Japan, lower inbound demand and continued calls to refrain from going out due to COVID-19 persisted. Overseas, despite some regions leading in vaccinations, the business environment remained uncertain because of continued tensions between the United States and China and semiconductor shortages.」

「The Group's consolidated sales for the current consolidated fiscal year were ¥36,589 million, down ¥3,280 million, or 8.2%, year on year, as sales declined across the Group, including in the Americas, which was significantly affected by lockdowns, as well as in the Japan and Southeast Asia segments.」

「Against this backdrop, the Group's results for the nine months ended the third quarter were affected by lockdown measures in the Americas and other factors, resulting in revenue of ¥26,373 million (down ¥3,159 million, or 10.7%, year on year), operating income of ¥531 million (down ¥596 million, or 52.9%), ordinary income of ¥626 million (down ¥634 million, or 50.3%), and quarterly net income attributable to owners of the parent of ¥183 million (down ¥416 million, or 69.4%).」

「During the cumulative second quarter of the current fiscal year, economic conditions in Japan deteriorated due to lower inbound demand and calls to refrain from going out as a result of COVID-19. Overseas, the business environment was challenging because of lockdown measures related to the same disease and U.S.-China trade tensions. Under these conditions, the Group's results for the cumulative second quarter of the current fiscal year were significantly affected by lockdown measures in the Americas and other factors, resulting in sales of ¥16,330 million, down ¥3,700 million, or 18.5%, year on year.」

「In Japan, economic conditions deteriorated due to lower inbound demand and calls to refrain from going out as a result of COVID-19. Overseas, the business environment remained uncertain because of lockdown measures related to the same disease and U.S.-China trade tensions. Due to the impact of production adjustments by customers and other factors, sales of both automotive parts and appliance hoses declined, resulting in sales of ¥795 million, down ¥387 million, or 32.8%, year on year.」

「If a natural disaster such as an earthquake or flood, or a pandemic such as COVID-19, occurs in an area where the Group operates, business activities may become difficult to continue.」

「If an earthquake, flood or other natural disaster occurs in an area where the Group operates, business activities may become difficult to continue. The Group has implemented crisis-management measures in preparation for natural disasters, but if a disaster exceeds anticipated levels, a substantial decline in sales and significant recovery costs could adversely affect the Group's operating results and financial condition.」

「If an earthquake, flood or other natural disaster occurs in an area where the Group operates, business activities may become difficult to continue. The Group has implemented crisis-management measures in preparation for natural disasters, but if a disaster exceeds anticipated levels, a substantial decline in sales and significant recovery costs could adversely affect the Group's operating results and financial condition.」

「If an earthquake, flood or other natural disaster occurs in an area where the Group operates, business activities may become difficult to continue. The Group has implemented crisis-management measures in preparation for natural disasters, but if a disaster exceeds anticipated levels, a substantial decline in sales and significant recovery costs could adversely affect the Group's operating results and financial condition.」