Dependence on users' store-opening and capital investment plans

「Product demand remained sluggish, partly because soaring rice prices since the fourth quarter of the previous fiscal year led businesses to postpone capital investment plans.」

「Product demand remained sluggish, partly because soaring rice prices since the fourth quarter of the previous fiscal year led businesses to postpone capital investment plans.」

「During the fourth quarter of the consolidated fiscal year, businesses were affected by cancellations and postponements of capital investment plans due to surging rice prices, among other factors」

「In Europe, the impact on businesses from surging energy prices and increasingly serious supply concerns due to the situation in Ukraine has continued, and sales declined as capital investment plans were canceled or postponed.」

「However, in Europe, the impact on businesses from surging energy prices and increasingly serious supply concerns due to the situation in Ukraine has continued. Product demand declined as capital investment plans were canceled or postponed, and overseas sales fell below the same quarter of the previous year.」

「In Europe, the impact on businesses from surging energy prices and increasingly serious supply concerns caused by Russia's invasion of Ukraine was substantial, and product demand declined as capital investment plans were canceled or postponed.」

「Domestic sales were affected in the first quarter by revisions to capital investment plans by major customers, primarily in the food service, retail, and food-processing industries, and by stagnating business activity due to the spread of COVID-19. From the second quarter onward, however, product demand remained firm as rising hygiene awareness among businesses and end consumers accelerated the shift toward self-service and labor-saving operations accompanying structural changes in the food service industry, such as takeout and delivery.」

「Domestic sales declined slightly from the same quarter of the previous year. Although sales were affected by a decrease in the number of customer stores, revisions to capital investment plans by major customers, primarily in the food service and retail industries, and restrictions on business activity amid the spread of COVID-19, sales of hygiene-related materials expanded as hygiene awareness rose among businesses and end consumers.」

「Our group has also begun to experience an impact on its recent performance as business partners, primarily in the domestic and overseas food service, retail, and food-processing industries, revise their capital investment plans and business activity stagnates.」

「The main factor was a ¥1,060 million decline in domestic sales from the previous consolidated fiscal year to ¥6,012 million, due to fewer new stores opened by major customers and delays in developing new machinery.」

「However, domestic machinery sales fell below plan, primarily because the number of new stores opened by major customers declined from the initial forecast amid growing uncertainty over the performance of major customers, particularly in the food service industry.」

「New store openings by major customers, primarily in the food service industry, have not progressed as planned due to difficulties in hiring personnel and rising labor costs.」

「We regularly enhance our consultative sales activities for customers and launch new products based on their needs, but customers' capital investment plans, including plans to open new stores, may have a significant impact on our operating results.」