Soaring Raw Material and Component Prices, Tight Supply and Demand, and Supply Disruptions

「At the end of the consolidated fiscal year, based on the assumption that the effects of material supply issues and surging prices, higher transport costs resulting from the recovery in economic activity, and rising energy costs would continue to a certain extent from the following consolidated fiscal year onward, the Group reflected these effects in its initial business plan based on current results and incorporated them into its accounting estimates.」

「The Group's products use most raw materials and some components procured externally. However, there is a risk that shortages of raw materials and components may arise due to surging prices, tight supply and demand, or unforeseen accidents involving suppliers, thereby affecting the Group's financial results.」

「The automotive industry, one of the Group's major customers, remained in a difficult environment as, in addition to the impact of COVID-19, automakers continued to cut production in response to tight global semiconductor supply, while continuing to be affected by material supply issues and surging prices, as well as higher transport costs resulting from the recovery in economic activity. However, as conditions gradually recovered from the second half onward, domestic production shifted to an increase compared with the previous year.」

「The automotive industry, a major customer of our Group, remained in difficult conditions as automakers continued to adjust production due to the global semiconductor shortage. It was also affected by weak sales of Japanese OEMs in the Chinese market, material supply issues, higher prices and rising energy costs, including electricity charges. However, as the impact of semiconductor shortages eased, domestic production turned to an increase year on year.」

「The automotive industry, a major customer of our Group, remained in difficult conditions as automakers continued to adjust production due to the global semiconductor shortage. It was also affected by weak sales of Japanese OEMs in the Chinese market, material supply issues, higher prices and rising energy costs, including electricity charges. However, as the impact of semiconductor shortages gradually eased, domestic production increased year on year.」

「The automotive industry, a major customer of our Group, remained in difficult conditions as automakers continued to adjust production due to the global semiconductor shortage. It was also affected by weak sales of Japanese OEMs in the Chinese market, material supply issues, higher prices and rising energy costs, including electricity charges. However, as the impact of semiconductor shortages gradually eased, domestic production increased year on year.」

「The automotive industry, one of the Group's major customers, remained in a difficult environment as automakers continued to cut production in response to tight global semiconductor supply, while continuing to be affected by material supply issues and surging prices, as well as higher transport costs resulting from the recovery in economic activity. However, as conditions gradually recovered from the second half onward, domestic production shifted to an increase compared with the previous year.」

「The automotive industry, a major customer of our Group, remained in difficult conditions as production cuts by automakers continued due to the global semiconductor shortage, in addition to the impact of COVID-19. It was also continuously affected by material supply issues, higher prices and increased transportation costs accompanying the economic recovery. However, as conditions gradually recovered from September onward, domestic production turned to an increase year on year.」

「The automotive industry, a major customer of our Group, remained in difficult conditions as production cuts by automakers continued due to the global semiconductor shortage, in addition to the impact of lockdowns and other factors related to COVID-19. It was also affected by material supply issues, higher prices and increased transportation costs. As a result, domestic production also declined year on year.」

「The automotive industry, a major customer of our Group, remained in difficult conditions as production cuts by automakers continued due to the global semiconductor shortage, in addition to the impact of lockdowns and other factors related to COVID-19. It was also affected by material supply issues, higher prices and increased transportation costs accompanying the economic recovery. As a result, domestic production declined year on year.」

「The Group procures most raw materials and some components externally. However, there is a risk that shortages of raw materials and components may arise due to surging prices, tight supply and demand, or unforeseen accidents involving suppliers, thereby affecting the Group's financial results. Accordingly, the Group is working to maintain stable business relationships with suppliers.」

「The automotive industry, a major customer of our Group, remained in difficult conditions, affected not only by COVID-19 but also by pronounced production cuts by automakers due to the global semiconductor shortage, as well as material supply issues, higher prices and increased transportation costs accompanying the economic recovery. However, as production declines and plant shutdowns caused by lockdowns and other factors such as those seen in the previous fiscal year did not occur this fiscal year, domestic production also increased substantially year on year.」

「The automotive industry, a major customer of our Group, was affected by pronounced production cuts by automakers due to the global semiconductor shortage, as well as material supply issues, higher prices and increased transportation costs accompanying the economic recovery. However, as production declines and plant shutdowns caused by lockdowns and other factors such as those seen in the previous fiscal year did not occur this fiscal year, domestic production increased substantially year on year.」

「Regarding material costs, the Group will respond to rising prices for both metal and resin materials, strengthen relationships with material suppliers to secure stable supplies despite global supply issues affecting resin materials, and pursue further cost reductions.」

「Accordingly, the Group is working to maintain stable business relationships with suppliers.」

「In terms of earnings, the Group worked together to promote initiatives to improve profitability. However, as the cost burden remained elevated, mainly due to higher labour and material costs, operating profit was ¥5,987 million, down 26.8% year on year.」

「In terms of earnings, the Group worked together to promote initiatives to improve profitability. However, mainly due to the increased cost burden resulting from higher material costs and other factors, operating profit was ¥4,041 million, down 27.9% year on year.」

「In terms of earnings, the Group worked together to promote initiatives to improve profitability. However, mainly due to lower marginal profit resulting from the decline in revenue and the increased cost burden from higher material and labour costs, operating profit was ¥1,721 million, down 33.8% year on year.」

「There is a risk that shortages of raw materials and components may arise due to surging prices, tight supply and demand, or unforeseen accidents involving suppliers, thereby affecting the Group's financial results.」

「On the profit side, although we promoted further rationalization, operating profit was ¥7,734 million, down 3.4% year on year, ordinary profit was ¥8,572 million, down 1.9%, and profit attributable to owners of the parent was ¥6,487 million, up 2.2%, due mainly to the increased expense burden resulting from soaring material and labor costs.」

「In terms of earnings, the Group worked together to promote initiatives to improve profitability. However, mainly due to the increased cost burden resulting from higher material and labour costs, operating profit was ¥5,603 million, down 0.4% year on year.」

「On the earnings front, although further rationalization measures were implemented, increased expenses due in part to higher material and labor costs resulted in operating profit of ¥2,598 million, down 1.0% from the previous period, ordinary profit of ¥2,829 million, up 0.9%, and profit attributable to owners of the parent for the quarter of ¥2,186 million, up 5.1%.」

「There is a risk that shortages of raw materials and components may arise due to surging prices, tight supply and demand, or unforeseen accidents involving suppliers, thereby affecting the Group's financial results.」

「There is a risk that shortages of raw materials and components may arise due to surging prices, tight supply and demand, or unforeseen accidents involving suppliers, thereby affecting the Group's financial results.」