Risk of lower customer demand and public investment due to the prolonged COVID-19 pandemic

「Although COVID-19 has been classified as a Category 5 infectious disease, the recurrence of a large-scale infectious disease in the future could affect the Group's business activities. The Group will continue working to prevent the spread of infectious diseases in general and will continuously review and improve its business continuity plan so that it can fulfill its responsibilities as a company to maintain supply even if it suffers damage from an infectious disease.」

「Although COVID-19 has been classified as a Category 5 infectious disease, depending on developments going forward it could affect the Group's business activities.」

「During the first 3 quarters of the current consolidated fiscal year, Japan's economy was gradually returning to normal as restrictions on activities imposed in response to COVID-19 were eased. However, the outlook remained uncertain due to the global shortage of semiconductors and electronic components and higher resource prices resulting from the prolonged situation in Ukraine.」

「The Group continues to operate businesses supporting social infrastructure, including railways, and to eliminate the risk of infection spread by establishing an emergency response headquarters under its risk management regulations and taking measures such as working from home, staggered commuting, and shift work to prevent the spread of COVID-19.」

「As the Group operates businesses supporting social infrastructure, including railways, it established an emergency response headquarters under its risk management regulations to prevent the spread of COVID-19 and continues to eliminate the risk of infection spread by taking measures such as working from home, staggered commuting, and shift work.」

「The Group recognizes that changes in the environment resulting from COVID-19 could have a significant impact on the capital investment plans of railway operators, its major customers in its core business, and will continue to make proposals and develop products from the customers' perspective.」

「During the cumulative third quarter of the current consolidated fiscal year, Japan's economy remained uncertain because the effects of the novel coronavirus disease continued and because of the global shortages of semiconductors and electronic components.」

「The Group focused on an early recovery from the fire that occurred on 14 January 2021 and a recovery in operating performance, and completed restoration work on the damaged buildings in September this year. The Group is also continuing to pursue its strategies toward achieving the medium-term management plan, whose final fiscal year is the fiscal year ending March 2022, while responding to changes in the business environment resulting from the impact of COVID-19.」

「As the Group operates businesses supporting social infrastructure, including railways, it is continuing its business while taking measures to prevent infection, such as working from home, staggered commuting, and shift work, under the direction of an emergency response headquarters established pursuant to its risk management regulations to prevent the spread of COVID-19. However, a further prolongation of the risk of infectious disease spread could affect operating results through revisions to customers' capital investment plans and reviews of public investment under the government's emergency economic measures.」

「In railway signaling systems, orders included signaling equipment and platform screen doors for publicly operated railways, JR and private railway companies, electronic interlocking equipment components for China, and electronic interlocking systems for Indian Railways, but substantially fell below the same period of the previous year because some projects were deferred to the fourth quarter or later due to the spread of COVID-19.」

「Railway signal systems received orders for signaling equipment and platform screen doors for public railways, JR and private railway operators, electronic interlocking equipment for China, and electronic interlocking equipment for Indian Railways. However, order intake was substantially below the same period of the previous year because some projects were deferred to the third quarter and beyond due to the spread of COVID-19.」

「In the railway signaling systems business, orders included signaling equipment and platform screen doors for public railway operators and JR and private railway companies, electronic interlocking equipment supplies for China, and electronic interlocking equipment for Indian Railways. However, orders fell substantially below the same period of the previous year because some projects were postponed to the second quarter or later due to the spread of COVID-19.」

「As the Group operates businesses supporting social infrastructure, including railways, it established an emergency response headquarters under its risk management regulations and is continuing its business while reducing the risk of infection through measures such as working from home, staggered commuting, and shift work. However, the decline in travel demand due to calls for people to refrain from going out has had a significant impact on the business performance of railway operators, its major customers. A prolonged decline in customer needs and a decrease in public investment resulting from deterioration in government finances as economic measures are expanded could affect the Group's operating results.」