Business Interruption Caused by Major Disasters and Infectious Diseases

「The Group is taking these preventive measures, but if a large-scale disaster or similar event actually occurs, it may be forced to suspend or significantly scale back its business activities, which could have a material impact on the Group's operating results.」

「During the first nine months of the current fiscal year, COVID-19 vaccination steadily expanded and socioeconomic activity was moving toward normalization. However, the economic outlook remained uncertain due to the prolonged situation in Ukraine, soaring global resource prices, and concerns about inflation.」

「During the first six months of the current fiscal year, COVID-19 vaccination steadily expanded and socioeconomic activity was moving toward normalization. However, the economic outlook remained uncertain due to the prolonged situation in Ukraine, semiconductor shortages, soaring global resource prices, and concerns about inflation.」

「During the first quarter of the current fiscal year, COVID-19 vaccination steadily expanded and socioeconomic activity was moving toward normalization, but the situation remained far from bringing infections under control. In addition to the spread of new variants, the economic outlook remained uncertain amid semiconductor shortages, soaring global resource prices, and concerns about inflation.」

「However, the economic outlook remains uncertain amid concerns about the impact of the spread of new variants, global supply chain disruptions, semiconductor shortages, and soaring global resource prices.」

「During the first nine months of the current fiscal year, signs of recovery emerged in socioeconomic activity as COVID-19 vaccination steadily expanded and stringent restrictions on movement were gradually eased. However, the economic outlook remained uncertain amid concerns about the spread of infections caused by new variants and the impact of surging global resource prices.」

「During the first six months of the current fiscal year, the Japanese economy remained in a challenging environment in which socioeconomic activity was restricted due to the spread of COVID-19. However, as vaccination coverage steadily expanded, restrictions on movement were gradually eased and socioeconomic activity was expected to normalize. Nevertheless, the economic outlook remained uncertain due to trends in infectious diseases in Japan and overseas and the impact of higher raw material costs through supply chains.」

「During the first quarter of the current fiscal year, the Japanese economy remained in a challenging environment in which socioeconomic activity was restricted, including through the issuance of the third state of emergency declaration in response to the spread of COVID-19. Although nationwide vaccination coverage is expected to advance, concerns about a renewed spread of infections caused by variants mean that the outlook for the economy remains uncertain.」

「There have been no material changes to the assumptions described in the previous fiscal year's securities report under Additional Information, "Accounting estimates related to the impact of the spread of COVID-19." If the impact of COVID-19 continues for an extended period, future actual results may differ from the estimates.」

「The pachinko and pachislot machine market, the main market for the Company's Group, continues to face challenging conditions, including weak willingness among gaming halls to purchase new machines due in part to the impact of the revised regulations governing the operation of amusement businesses, which were revised to diversify leisure activities and address addiction. In addition, amid the spread of COVID-19, the National Public Safety Commission revised the supplementary provisions of the amended regulations, extending the deadline for removing machines subject to the former regulations from the market, which had initially been required by January 2021. The outlook for the market is therefore extremely uncertain.」

「Amid the spread of COVID-19, gaming halls have taken measures such as temporarily suspending operations, while uncertainty about the outlook has reduced their willingness to purchase new machines. As a result, the outlook for the market has become extremely uncertain.」

「The Company is taking steps, including establishing the necessary response measures, to minimize damage from large-scale disasters such as natural disasters, including major earthquakes and typhoons, and the spread of infectious diseases. However, if a large-scale disaster or similar event actually occurs, the Company may be forced to suspend or significantly scale back its business activities, which could have a material impact on its operating results.」

「The Company has implemented these preventive measures, but if a major disaster or similar event actually occurs, it may be forced to suspend or significantly scale back its business activities, which could have a material impact on the Company's results.」