Impact of COVID-19 on demand and supply chains

「During the first nine months of the current fiscal year, Japan's economy has been gradually recovering, supported in part by the effects of various government policies, as the impact of COVID-19 eased and economic activity normalised, although some areas have recently shown signs of stagnation.」

「During the second quarter of the consolidated cumulative period under review, Japan's economy continued to show signs of a gradual recovery as the impact of the COVID-19 pandemic eased and economic activity normalized, supported in part by various policy measures. However, the situation remained one that required continued monitoring of the impact of global monetary tightening and concerns about the outlook for the Chinese economy, among other downside risks to overseas economies, as well as rising prices and volatility in financial and capital markets.」

「Regarding the impact of COVID-19, the management plan for the fiscal year ending March 2024 was formulated on the assumption that economic activity would normalise as the disease's legal classification under Japan's infectious disease control laws shifted to Category 5. As of the filing date, the impact of the disease on the Group's cash flows and liquidity is considered limited.」

「During the first nine months of the current fiscal year, Japan's economy showed a gradual recovery, supported in part by the effects of various government policies, as the impact of COVID-19 gradually eased and economic activity normalised. However, the situation continued to require close attention to downside risks for overseas economies resulting from ongoing global monetary tightening, as well as the effects of rising prices, supply constraints, volatility in financial and capital markets, and infection trends in China.」

「During the first six months of the current fiscal year, Japan's economy showed a gradual recovery, supported in part by the effects of various government policies, as the impact of COVID-19 gradually eased and economic activity normalised.」

「During the first three months of the current fiscal year, Japan's economy showed a gradual recovery, supported in part by the effects of various government policies, as the impact of COVID-19 gradually eased and economic activity normalised.」

「As of the filing date (30 June 2022), all business sites were operating generally as usual and the impact on business activities was gradually easing. However, concerns about a renewed spread of infections caused by variants continued.」

「During the first nine months of the current fiscal year, Japan's economy showed some signs of recovery as the impact of COVID-19 gradually eased. However, numerous downside risks remained, including higher raw-material prices, component shortages and concerns over the spread of new variants, and the outlook remained uncertain.」

「During the first six months of the current fiscal year, sales in the Electronic Components Manufacturing business increased against a backdrop of recovering demand in the previously sluggish automotive-related markets in Japan and overseas. Meanwhile, sales of switchboards and industrial distribution boards in Japan declined due to the impact of COVID-19, while sales of network equipment and related components declined as orders for office- and data-center-related projects fell. In addition, sales related to the GIGA School initiative recorded in the previous fiscal year fell away. As a result, revenue was ¥61,014 million, down 3.8% year on year, operating profit was ¥3,902 million, down 23.1%, ordinary profit was ¥4,059 million, down 22.2%, and net profit attributable to owners of the parent was ¥2,622 million, down 19.5%.」

「During the first three months of the current fiscal year, sales of the core switchboards and distribution boards declined due to the impact of COVID-19. Sales of network equipment and related components also remained weak as orders for office- and data-center-related projects declined.」

「As of the filing date (30 June 2021), all business sites were operating generally as usual. However, sales activities, including refraining from visiting customers, remained subject to restrictions, and the intermittent spread of infections and the resulting declarations of a state of emergency had an impact.」

「During the first nine months of the current fiscal year, Japan's economy saw corporate earnings and personal consumption deteriorate rapidly due to the impact of COVID-19. Although signs of an economic recovery emerged as activity gradually resumed, the outlook remained uncertain due to the renewed spread of COVID-19.」

「During the first six months of the current fiscal year, Japan's economy saw corporate earnings and personal consumption deteriorate rapidly due to the impact of COVID-19. Although economic activity has gradually resumed recently, the recovery has been slow and the outlook remains uncertain.」

「In the distribution-board-related manufacturing business, sales of certain products, including custom distribution panels and system racks, increased in line with telecommunications operators' investment in 5G-related facilities. However, overall sales declined as companies' appetite for capital investment weakened due to the impact of the COVID-19 pandemic and other factors.」

「If the prolonged stagnation of economic activity resulting from efforts to prevent the spread of COVID-19 leads to a downturn in private-sector capital investment, lower demand due to delays in electrical and telecommunications infrastructure projects, plant shutdowns, disruptions to supply chains and logistics networks, and other circumstances that make it difficult to maintain supply capacity, the financial condition and operating results of the Group may be affected.」