Declining Demand and Production Suspensions Caused by COVID-19

「Demand for electronic photography carriers, our core product, remained affected by customers' distribution inventory adjustments at the end of the previous fiscal period, despite the recovery in economic activity and office utilization. Demand for oxygen absorbers used to preserve food quality began to recover as COVID-19 activity restrictions were lifted.」

「Demand for oxygen absorbers used to preserve food entered a recovery trend as COVID-19-related restrictions on movement were lifted, although the delayed recovery in inbound demand and other factors continued to have an impact.」

「While economic activity is moving toward normalization following the removal of measures against COVID-19 in various countries, economic conditions may deteriorate due to global inflation, financial instability, and other factors.」

「Against this backdrop, economic activity and office utilization improved, and the operating rates and production of copiers, commercial printing presses and other equipment continued to recover. Carrier demand, our core product, increased year on year. Demand for oxygen absorbers used to preserve food quality exceeded the same period of the previous year as restrictions on activities were eased.」

「Against this backdrop, the operating rates of copiers, commercial printing presses and other equipment continued to recover as economic activity and office utilization recovered, and carrier demand, our core product, increased year on year. Demand for oxygen absorbers used to preserve food quality exceeded the same period of the previous year as restrictions on activities were eased.」

「As economic activity and office operations resumed, the operating rates of copiers, commercial printing presses and other equipment continued to recover, and carrier demand, our core product, increased from the previous fiscal period.」

「As economic activity and office operations resumed, the operating rates of copiers, commercial printing presses and other equipment continued to recover, and carrier demand, our core product, increased year on year. Demand for oxygen absorbers used to preserve food quality increased from the same period of the previous year, although it continued to be affected by declining tourism and inbound demand.」

「Against this backdrop, the operating rates of copiers, commercial printing presses and other equipment continued to recover as economic activity and office operations resumed, and carrier demand, our core product, increased year on year. Demand for oxygen absorbers used to preserve food quality increased from the same period of the previous year, although it continued to be affected by declining tourism and inbound demand.」

「Against this backdrop, the operating rates of copiers, commercial printing presses and other equipment continued to recover as economic activity and office operations resumed, and carrier demand, our core product, increased year on year. The oxygen absorber market, used to preserve food quality, continued to be affected by declining tourism and inbound demand, but increased from the same period of the previous year. Demand for iron powder for hand warmers, its main application, exceeded the same period of the previous year as production adjustments caused by two consecutive unusually warm winters were nearly completed.」

「However, if the time required for vaccines to become widely available or for infections to subside is longer than expected, this may affect the Group's business results and financial position going forward.」

「Against this backdrop, the recovery in the operating rates of copiers, commercial printing presses and other equipment was delayed by reduced office use due to mobility restrictions and the increase in working from home caused by COVID-19. Although carrier demand, our core product, has been recovering since the third quarter, it declined significantly year on year. The oxygen absorber market, used to preserve food quality, deteriorated sharply because of declining tourism and inbound demand and the closure of department stores and other facilities.」

「Against this backdrop, office use declined because of mobility restrictions and the increase in working from home caused by COVID-19, reducing the operating rates of copiers, commercial printing presses and other equipment. Demand for carrier, our core product, declined significantly. The oxygen absorber market, used to preserve food quality, deteriorated sharply because of declining tourism and inbound demand and the closure of department stores and other facilities. Demand for iron powder for hand warmers, its main application, was below the same period of the previous year due to the impact of two consecutive unusually warm winters.」

「Against this backdrop, during the first quarter, offices and other facilities were closed in many countries because of lockdowns and restraints on economic activity, and copiers, commercial printing presses and other equipment were not operating. Demand for carrier, our core product, declined significantly. The oxygen absorber market, used to preserve food quality, deteriorated sharply because of declining tourism and inbound demand and the closure of department stores and other facilities. Demand for iron powder for hand warmers, its main application, was below the same period of the previous year due to the impact of two consecutive unusually warm winters.」

「Demand for carrier, the Group's core product, has begun to be affected as lockdowns and calls for people to refrain from activities have been implemented in many developed countries, including those in Europe and North America, which are major end markets, due to COVID-19. Copiers, commercial printing presses and other equipment have not been operating because offices have been closed, and the impact is expected to become more pronounced going forward. The iron powder business, particularly products related to oxygen absorbers used to preserve food quality, has also been affected by the decline in tourism and inbound demand, as well as nationwide requests to refrain from going out from April through May. The impact has included the temporary suspension of operations at the production plant of ㈱ワンダーキープ高萩, a subsidiary that manufactures oxygen absorbers. If this situation continues for an extended period, it may affect the Group's business results and financial position going forward.」