Impact of the spread of COVID-19 on the railway industry and business activities

「At railway operators, one of our major customer groups, domestic passenger demand has continued to recover, supported by increased movement of people as economic activity normalizes and by the recovery in inbound demand. Despite the impact of typhoons and other factors during the summer, conditions are believed to have remained broadly close to a steady-state, post-pandemic level.」

「In the railway industry, as economic activity continued to normalize following the lifting of movement restrictions related to COVID-19, railway passenger numbers, which had declined due to the entrenchment of remote work and sluggish inbound visitor numbers, recovered to approximately 90% of pre-pandemic levels.」

「At railway operators, one of our major customer groups, personal consumption and leisure demand have remained firm following the lifting of movement restrictions, and railway demand has continued to recover, supported by an increase in inbound demand. However, capital investment in areas relevant to our business remains cautious, and procurement of electronic components, including semiconductors, continues to be unstable, so the impact on our orders also continues.」

「At railway operators, one of our major customer groups, movement restrictions have been eased since May and domestic passenger demand has recovered. Despite the impact of typhoons and other factors, passenger volumes and railway revenue have both remained at around 90% of pre-pandemic levels. However, capital investment remains cautious, and procurement of electronic components, including semiconductors, continues to be unstable, so the impact on our orders also continues.」

「From May, COVID-19 was reclassified under the Infectious Diseases Control Law, movement restrictions were eased, domestic passenger demand recovered, and railway revenue has tracked almost in line with plan. However, capital investment remained cautious during the quarter.」

「At railway operators, one of our major customer groups, the recovery trend in railway demand has continued, supported by the easing of movement restrictions, progress in infection-control measures and tourism support measures such as the nationwide travel support program, despite concerns over the impact of the eighth wave of COVID-19. However, the difficulty in procuring electronic components, including semiconductors, has continued, and the impact on our orders also continues, including reviews of capital investment plans and postponements of order timing.」

「At railway operators, one of our major customer groups, passenger demand, which had initially been on a recovery trend, declined due in part to an increase in COVID-19 cases during the summer. Although passenger demand is expected to increase going forward as concerns over infection recede and due to government tourism support measures, the impact on our orders continues, including reviews of capital investment plans and postponements of order timing.」

「Domestic passenger demand recovered among railway-related operators, one of our major customer groups, partly because movement restrictions were not in place during the May holidays for the first time in 3 years. However, amid concerns over a renewed spread of COVID-19, the implementation of additional government economic measures was also postponed, and future passenger demand and capital investment trends may fluctuate.」

「The railway industry, one of our major customer markets, was also affected by the prolonged impact of COVID-19. With intermittent movement restrictions and remote work becoming established, passenger numbers did not recover, and restraint in capital investment and expenses continued.」

「For railway operators, one of our main customer groups, passenger demand was beginning to recover, including through the return of year-end and New Year demand. However, depending on developments concerning the Omicron variant of the coronavirus, uncertainty about the outlook is expected to persist, and the impact on our orders cannot be avoided, including through revisions to capital investment plans and delays in placing orders.」

「For railway operators, one of our main customer groups, passenger demand was sluggish due to intermittent mobility restrictions, the overlap between the peak summer travel season and an increase in COVID-19 cases, and other factors. Although the lifting of the state of emergency at the end of September has raised expectations for a recovery in passenger demand, the impact on our orders cannot be avoided, including through revisions to capital investment plans and delays in placing orders.」

「Railway operators, which are among the company's major customers, remain cautious about investment because the outlook for passenger demand and other factors is difficult to assess, making an impact on the company's operating performance unavoidable.」

「The railway industry, one of our main customer industries, has also been affected by intermittent mobility restrictions and the entrenchment of the new normal, including remote work, resulting from the spread of COVID-19, as well as the sharp decline in the number of visitors to Japan since last year. Passenger numbers have not yet recovered, leading to substantial losses, while revisions to capital investment plans and delays in placing orders are beginning to take concrete shape.」

「However, prolonged restrictions on movement caused by COVID-19 have led major customers to review their capital investment plans and postpone order placements, among other developments, making an impact on the company's operating performance unavoidable.」

「However, prolonged restrictions on movement caused by COVID-19 have led major customers to review their capital investment plans and postpone order placements, among other developments, making an impact on the company's orders unavoidable.」

「The spread of the novel coronavirus severely restricted economic and social activity, causing the economy to deteriorate rapidly. The global spread also led to a synchronized worldwide recession. Major governments and central banks implemented large-scale economic measures to prevent further deterioration, but there was no sign that the novel coronavirus outbreak was subsiding, and the environment surrounding companies remained uncertain amid additional risks including intensifying US-China tensions over issues such as Hong Kong.」

「In the railway industry, the decline in railway ridership has been extremely significant due to the impact of the spread of COVID-19 and the continuing implementation of measures to prevent its spread, including requests to refrain from going out, cancellations of events and restrictions on entry by foreign nationals. An exceptionally challenging environment is expected to continue for a considerable period.」