Impact of the spread of COVID-19 on business activities and results

「If a large-scale natural disaster or an outbreak of an emerging infectious disease occurs, production or sales activities may have to be reduced or suspended, potentially affecting the operating results of our group.」

「During the cumulative second quarter under review, Japan’s economy showed a gradual recovery in domestic conditions, supported by the easing of various restrictions related to COVID-19 and the recovery in inbound demand. However, the outlook for the economy remained uncertain due to persistently high raw-material prices and energy costs and slower growth in overseas economies.」

「During the cumulative first quarter under review, Japan’s economy remained uncertain, despite the easing of various restrictions related to COVID-19 and progress toward normalizing socioeconomic activity, due to persistently high raw-material prices and energy costs and slower growth in overseas economies.」

「During the fiscal year under review, Japan’s economy remained in a challenging environment, with inflation driven by soaring resource and energy prices and rising labor costs. However, the economy generally remained on a recovery track as various restrictions related to COVID-19 were eased and socioeconomic activity continued to normalize.」

「During the first nine months of the current fiscal year, Japan’s economy showed signs of a gradual recovery as COVID-19 moved toward containment and various restrictions on activities were eased in stages, although」

「During the first six months of the current fiscal year, Japan’s economy saw restrictions on activities related to COVID-19 eased and signs of a recovery in economic activity, although」

「During the three months ended Q1, the Japanese economy remained uncertain despite an easing in the spread of COVID-19, due to soaring raw material and energy prices and the rapid depreciation of the yen.」

「Following the spread of COVID-19, installation and adjustment work has been prolonged, including as a result of urban lockdowns in China. At present, however, the impact on operating results is minor. As measures to prevent the spread of COVID-19, we are using web conferencing systems and promoting work from home. We are continuing to operate our business while prioritizing the safety of employees and their families, collecting detailed information on infection rates and healthcare systems in each region with the cooperation of customers and related companies, and taking all possible measures to prevent infection.」

「During the nine months ended Q3, the Japanese economy showed signs of a gradual recovery while the impact of COVID-19 continued. However, the outlook remained uncertain due to rising raw material prices, supply shortages and the situation in Ukraine.」

「Revenue from the Mechatronics Systems business increased year on year. Semiconductor manufacturing equipment sales increased against the backdrop of expanding capital investment demand in China aimed at improving semiconductor self-sufficiency, as in the previous fiscal year. Medical equipment sales also recovered slightly from the sharp decline in the previous fiscal year, despite continued weakness in demand for dialysis equipment due to the impact of COVID-19.」

「Following the spread of COVID-19, installation and adjustment work for overseas projects has been prolonged or postponed, particularly because border-control measures for international travel have been strengthened. At present, however, the impact on operating results is minor.」

「During the nine months ended Q3, the Japanese economy remained in difficult conditions due to restrictions on corporate activity and personal life associated with the spread of COVID-19. Although signs of a partial recovery emerged in manufacturing as overseas economies recovered, the outlook remained uncertain amid a renewed spread of infections.」

「During the six months ended Q2, the Japanese economy remained in difficult conditions due to the spread of COVID-19. Although some signs of recovery were seen, the outlook for economic activity remained extremely uncertain due to the renewed spread of infections.」

「Sales in the Mechatronics Systems business decreased year on year. Although market conditions for semiconductor manufacturing equipment were recovering in both Japan and overseas, with a particularly strong increase in sales to China, sales of medical equipment decreased as demand for dialysis equipment continued to decline due to the spread of COVID-19. As a result, net sales were ¥4,824 million, down 10.7% year on year, and the operating loss was ¥270 million, compared with an operating loss of ¥208 million in the same period of the previous year.」

「Following the spread of COVID-19, shipments for overseas projects were temporarily suspended and installation work was interrupted due to the voluntary suspension of business travel. At present, however, the impact on operating results is minor. As measures to prevent the spread of COVID-19, we have implemented measures including the voluntary suspension of business travel and the promotion of working from home. We are continuing to operate our business while prioritizing the safety of employees and their families, collecting detailed information on infection rates and healthcare systems in each region with the cooperation of customers and related companies, and taking all possible measures to prevent infection.」

「The impact of the spread of COVID-19 on our business will continue to be closely monitored. Sales in the Mechatronics Systems business decreased year on year. Sales of semiconductor manufacturing equipment declined because sales activities were restricted by the spread of COVID-19 and shipments of equipment for overseas customers that had already been ordered were suspended from February onward. Sales of medical equipment also decreased, particularly in Japan and China. As a result, net sales were ¥18,770 million, down 16.2% year on year. In terms of earnings, operating profit was ¥71 million, down 93.3% year on year, as the decline in operating rates for semiconductor manufacturing equipment and medical equipment increased the fixed-cost burden.」