War, Terrorism, Infectious Diseases, Workforce and Supplier/Subcontractor Supply Systems

「During the current consolidated fiscal year, Japan's economy remained on a moderate recovery trend, supported by improvements in employment and income conditions and corporate capital investment demand, despite unstable foreign exchange movements and continuing price increases. Meanwhile, the global economy remained uncertain, amid concerns about the effects of surging raw material and energy prices associated with heightened tensions in the Middle East, slowing growth in China, and monetary policy trends in various countries.」

「Looking ahead, the Company expects challenging conditions to continue, given concerns about a slowdown in the global economy, unstable foreign exchange markets and supply disruptions involving crude oil and petrochemical products resulting from the prolonged situation in the Middle East.」

「During the first quarter of the current consolidated fiscal year, Japan's economy moved toward normalization of economic activity following the change in the legal classification of COVID-19. At the same time, the outlook for the economy remained uncertain due to factors including persistently high resource and energy prices resulting from the prolonged Russia-Ukraine situation and the weaker yen, concerns over an economic slowdown associated with monetary tightening in various countries, and unstable foreign exchange markets.」

「Following the change in the classification of COVID-19 to a Class 5 infectious disease, equivalent to seasonal influenza, the need under the Infectious Diseases Control Act for voluntary restraint from going out and basic infection-control measures has ended. However, the Company continues to monitor infectious diseases. If a new, unknown virus spreads in the future, it may adversely affect the Group's financial position and operating results.」

「Although the Company worked to hold inventories of some standard products and place orders early when receiving orders in response to higher steel prices and extended lead times for procured components,」

「To address rising steel prices and longer lead times for procured components, we worked to shorten delivery times and reduce costs by holding inventory of certain standard products and placing early orders when receiving orders.」

「To address rising steel prices and longer lead times for procured components, we placed advance orders when receiving orders and worked to shorten delivery times and reduce costs.」

「To address rising steel prices and shortages of electrical components that have continued since last year, we placed advance orders when receiving orders and worked to shorten delivery times and reduce costs.」

「Although the impact of the spread of COVID-19 on operating results has been minor, concerns include the possibility that sales could be postponed if the situation continues for an extended period or infections spread further, due to delays in business negotiations and machinery and equipment installation caused by voluntary restraints on business travel, as well as delays in customers' construction of new factories and expansion of existing factories.」

「During the nine months ended the third quarter of the current fiscal year, Japan's economy showed signs of improvement from the stagnation in economic activity caused by COVID-19. However, as infections began to spread again, uncertainty about the outlook persisted. Although the Group was affected in its sales activities, machinery and equipment installation work, and other operations, it worked to maintain normal operations by continuing to conduct business negotiations via the web, participate in trade shows, and carry out overseas installation work through remote instruction using web cameras.」

「Although the Group has been affected by sales activities and the installation of machinery and equipment, it has worked to maintain normal operations by continuing business meetings using the Web, participating in trade shows, and conducting overseas installation work through remote instruction using Web cameras.」

「Although the Group experienced only a minor direct impact from COVID-19, it expects difficult conditions to continue, including the need to monitor the risk that COVID-19 could cause domestic and overseas economies to deteriorate.」

「The effects of the spread of COVID-19, including project delays resulting from prolonged restrictions on overseas travel and domestic movement, may affect the Group's financial position and operating results.」

「War, terrorism, epidemics and other factors, as well as the securing or loss of personnel and the supply systems of suppliers and subcontractors, may affect the Company's financial position and operating results.」

「However, as long as the Group continues to conduct business, its financial position and operating results may be affected by war, terrorism, infectious diseases and other factors, as well as the securing or loss of personnel and supply arrangements with suppliers and subcontractors.」

「The global economy showed signs of recovery, particularly in the United States and Europe, although geopolitical risks related to the situation surrounding North Korea remained a concern.」

「Although the U.S. and European economies were on a recovery trend, the global economy remained uncertain due to geopolitical risks, including U.S. policy management and the issue of North Korea.」

「However, as long as the Group continues to conduct business, its financial position and operating results may be affected by war, terrorism, infectious diseases and other factors, as well as the securing or loss of personnel and supply arrangements with suppliers and subcontractors.」

「However, as long as the Group continues to conduct business, its financial position and operating results may be affected by war, terrorism, infectious diseases and other factors, as well as the securing or loss of personnel and supply arrangements with suppliers and subcontractors.」