Impact of Disasters, Terrorism, War and Infectious Diseases on Production and Sales Activities

「In response to these risk events, the Group has formulated a business continuity plan (BCP) as a measure for unforeseen events such as major earthquakes. To resume operations quickly after a disaster and maintain a stable supply of products in accordance with its emergency action plan, the Group is advancing preliminary measures such as considering disaster risk reduction and diversifying suppliers, and selecting alternative materials.」

「In response to these risk events, the Group has formulated a business continuity plan (BCP) as a measure for unforeseen events such as major earthquakes. To resume operations quickly after a disaster and maintain a stable supply of products in accordance with its emergency action plan, the Group is advancing preliminary measures such as considering disaster risk reduction and diversifying suppliers, and selecting alternative materials.」

「During the first 3 quarters of the current fiscal year, the domestic economy had been showing signs of recovery from April onward, against the backdrop of eased restrictions on economic activity related to COVID-19. However, the situation remained uncertain due to the renewed spread of infections from July onward, including the seventh and eighth waves, soaring raw material and energy prices resulting from the Russia-Ukraine situation, and sharp fluctuations in exchange rates.」

「During the cumulative first six months of the current consolidated fiscal year, Japan's domestic economy remained uncertain due to the seventh wave of COVID-19, soaring raw-material and energy costs resulting from the situation between Russia and Ukraine, and sharp foreign-exchange fluctuations, which also affected corporate activity.」

「The Group's business continuity may be materially disrupted if raw material procurement is affected or production facilities, human resources or other management resources are damaged, resulting in supply chain disruptions and the suspension of product supplies.」

「In the manufacturing industry in which the Group operates, uncertainty about the outlook continues, including new concerns such as surging resource prices and the risk that demand could fall again due to the global resurgence of Omicron infections.」

「Conditions have begun to diverge by industry, with reduced production in the transportation equipment industry due to the spread of COVID-19 in Southeast Asia weighing on performance.」

「Uncertainty due to the expanding and prolonged impact of COVID-19 remains high.」

「During the cumulative first nine months of the current consolidated fiscal year, Japan's economy was gradually recovering as the effects of COVID-19 continued, but uncertainty about the outlook remained as concerns about renewed infections intensified with the onset of winter. Manufacturing saw a recovery in sales to China, but improvement across manufacturing as a whole was slow, and the economic downturn caused by the COVID-19 shock continued to affect the corporate group.」

「During the cumulative first six months of the current consolidated fiscal year, Japan's economy remained in a downturn caused by the global spread of COVID-19. Although external demand gradually began to recover in manufacturing and other sectors, the sharp economic slowdown caused by the COVID-19 shock affected the corporate group's business.」

「In this environment, the Group's sales activities were substantially constrained by measures such as declarations of a state of emergency under the Act on Special Measures for Pandemic Influenza and New Infectious Diseases Preparedness and Response, but the Group promoted the proactive rollout of products that would become its next growth pillar while adopting new working styles such as telework. However, the sharp global economic slowdown has also affected the Group's business.」

「There have been no material changes in the business and other risks described in the securities report for the previous consolidated fiscal year.」

「There have been no material changes in the business and other risks described in the securities report for the previous consolidated fiscal year.」

「The Group has manufacturing and sales locations not only in Japan but also in North America, Europe and Asia. If these business locations suffer physical or human damage from disasters such as earthquakes, floods and fires, political instability caused by terrorist attacks or war, or the spread of infectious diseases, the Group's production and sales activities may be affected, and its operating results and financial position may be affected.」

「There have been no material changes in the business and other risks described in the securities report for the previous consolidated fiscal year.」

「No new business or other risks arose during the six-month cumulative period under review. There were also no material changes to the business and other risks described in the annual securities report for the previous consolidated fiscal year.」

「The Group has manufacturing and sales locations not only in Japan but also in North America, Europe and Asia. If these business locations suffer physical or human damage from disasters such as earthquakes, floods and fires, political instability caused by terrorist attacks or war, or the spread of infectious diseases, the Group's production and sales activities may be affected, and its operating results and financial position may be affected.」

「If these business locations suffer physical or human damage from disasters such as earthquakes, floods and fires, political instability caused by terrorist attacks or war, or the spread of infectious diseases, the Group's production and sales activities may be affected, and its operating results and financial position may be affected.」