Suppression of customer capital investment due to fluctuations in plastic raw material prices

「The plastics processing industry in the consolidated fiscal year performed generally well because naphtha prices declined and remained stable compared with the previous consolidated fiscal year.」

「Regarding the future business environment, the greatest issue is the lack of visibility surrounding the situation in Iran and the Strait of Hormuz. Plastic raw material prices have risen sharply, and market disruption is evident. A cautious response will be necessary until raw material prices stabilize.」

「イラン情勢とホルムズ海峡の状況が見通せないことが最大の問題です。プラスチック原料価格の大幅上昇が発生しており、市場の混乱が見られます。」

「In Japan, corporate performance remained firm during the fiscal year, but conditions remained unpredictable due to rising prices and exchange-rate fluctuations. In the global economy, uncertainty increased as the Trump administration came into office, with higher tariffs and intensifying US-China tensions. In addition, cost pressures continued amid persistently high crude oil and other resin raw material prices and prolonged international conflicts.」

「In Japan, the business environment remains difficult to forecast, with concerns over adverse effects on the economy and higher prices, including soaring resin raw material prices due to the depreciation of the yen, higher prices for steel and other materials, and higher import prices for materials.」

「If sharp changes in the supply-demand balance for crude oil make procurement difficult, or if plastic raw material prices are expected to rise or fall significantly due to factors such as exchange-rate movements, customers may hold back on new capital investment, potentially resulting in lower revenue.」

「During the cumulative third quarter, Japan’s economy saw the normalization of social and economic activity following the reclassification of COVID-19 as a Class 5 disease, while the global economy remained in a difficult-to-forecast environment amid unstable international conditions, continuing inflation and high energy prices. In Japan, concerns included soaring prices for resin materials, steel and other materials, higher import prices due to the prolonged depreciation of the yen, and stagnant consumption caused by continuing price increases.」

「However, the global economy remains in an economic environment with a difficult outlook, as inflation and high energy prices persist amid unstable international conditions. In Japan, higher crude oil prices caused by the sharp depreciation of the yen and soaring resin material prices are also matters of concern.」

「In the plastics processing industry in which the company operates, there is strong caution toward capital investment, and the industry is in a position where it must pursue further rationalization and enhance its competitiveness,」

「In this business environment, the company’s revenue was lower than initially planned due to the impact of restrained customer capital investment amid uncertain economic conditions.」

「There were no newly arising business or other risks during the cumulative second quarter. There were also no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「During the fiscal year, the suppression of customer capital investment due to the COVID-19 pandemic and other factors, as well as higher crude oil prices, contributed in part to the decline in revenue from the initially planned level.」

「There were no newly arising business or other risks during the cumulative third quarter. There were also no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「There were no newly arising business or other risks during the cumulative second quarter. There were also no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「There were no newly arising business or other risks during the cumulative first quarter. There were also no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「There were no newly arising business or other risks during the cumulative third quarter. There were also no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「There were no newly arising business or other risks during the cumulative second quarter. There were also no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「There were no newly arising business or other risks during the cumulative first quarter. There were also no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「The company’s products remain in use by customers for long periods of 10 or 20 years after delivery. During this period, the company listens to customer feedback and works to reduce risk by improving customer satisfaction through appropriate and timely maintenance and upgrades.」

「There were no newly arising business or other risks during the cumulative third quarter. There were also no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「In the plastics processing industry in which the company operates, synthetic resin prices, a raw material, continue to rise as naphtha prices increase due to higher crude oil prices. The industry is in a position where it must pursue further rationalization and enhance its competitiveness, and the company is also moving toward proposing the development of products that save energy and labor.」

「If sharp changes in the supply-demand balance for crude oil make procurement difficult, or if plastic raw material prices are expected to rise or fall significantly due to factors such as exchange-rate movements, customers may hold back on new capital investment, potentially resulting in lower revenue.」

「In the plastics processing industry in which the company operates, petrochemical manufacturers have repeatedly raised synthetic resin prices as the price of naphtha, the main raw material, has risen due to higher crude oil prices.」

「There were no newly arising business or other risks during the cumulative second quarter. There were also no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「As crude oil and naphtha prices have risen since last year, the price of synthetic resin, a raw material, has continued to increase. The company is in a position where it must pursue further rationalization and enhance its competitiveness,」

「If sharp changes in the supply-demand balance for crude oil make procurement difficult, or if plastic raw material prices are expected to rise or fall significantly due to factors such as exchange-rate movements, customers may hold back on new capital investment, potentially resulting in lower revenue.」

「There were no newly arising business or other risks during the cumulative third quarter. There were also no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「There were no newly arising business or other risks during the cumulative second quarter. There were also no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「There were no newly arising business or other risks during the cumulative first quarter. There were also no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「If sharp changes in the supply-demand balance for crude oil make procurement difficult, or if plastic raw material prices are expected to rise or fall significantly due to factors such as exchange-rate movements, customers may hold back on new capital investment, potentially resulting in lower revenue.」

「During the cumulative third quarter, Japan’s economy was on a gradual recovery trend due to improvements in corporate earnings and employment conditions, but remained in an uncertain outlook amid exchange-rate and crude oil price movements, a slowdown in emerging-market economies, the decision for the UK to leave the EU, and the transition to a new US administration.」

「In the plastics processing industry in which the company operates, some companies are actively investing in equipment as plastic raw material prices decline, while others are holding back on new capital investment by repairing existing machinery.」

「There were no newly arising business or other risks during the cumulative first quarter. There were also no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「There were no newly arising business or other risks during the cumulative first quarter. There were also no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「If sharp changes in the supply-demand balance for crude oil make procurement difficult, or if plastic raw material prices are expected to rise or fall significantly due to factors such as exchange-rate movements, customers may hold back on new capital investment, potentially resulting in lower revenue.」