Shortages of Raw Materials and Components and Rising Prices

「In addition to diversifying procurement sources, we regularly check supply conditions through collaboration with major raw material suppliers and consider alternative transportation routes and procurement plans in preparation for emergencies.」

「We continue to implement measures to address higher production costs, including soaring raw material prices and rising logistics costs. However, because these effects cannot be fully absorbed through internal efforts alone, our Group has revised shipment prices for household appliances sold in Japan since August 2022.」

「Although operating profit was affected by higher fixed costs associated with increased production and higher labor costs, as well as higher component prices, gains from higher sales volume, price revisions reflecting higher component costs, and rationalization resulted in operating profit of ¥37.9 billion, compared with ¥0 billion in the same period of the previous year.」

「Although operating profit was affected by higher fixed costs associated with increased production and higher labor costs, as well as higher component prices, gains from higher sales volume, price revisions reflecting higher component costs, and cost reductions resulted in operating profit of ¥15.3 billion, compared with an operating loss of ¥12.5 billion in the same period of the previous year.」

「The impact on our company of higher raw material and logistics costs and shortages of semiconductors and components is expected to be largely resolved through product and service price revisions and diversification of procurement sources. However, shortages of automotive semiconductors and other items for Automotive and Industry are expected to continue.」

「(e) Energy Revenue was ¥717.2 billion, up 25% year on year. Sales of automotive batteries increased on strong EV demand in addition to price revisions, and revenue also benefited from foreign exchange translation, resulting in higher revenue. Operating profit was ¥28.9 billion, down 47% year on year. Despite the impact of foreign exchange, operating profit declined due to higher raw material and logistics costs and higher fixed costs associated with increased production.」

「Operating profit was ¥63.7 billion, down 39% year on year. The effects of the Shanghai lockdown, shortages of semiconductors and components, and higher raw material prices could not be offset by gains from higher sales volume or pricing initiatives, resulting in lower earnings.」

「In response to higher raw material and component prices, our Group is actively promoting futures hedging, further accelerating centralized procurement across the Group, and working to contain price increases and secure stable supplies. In response to higher logistics costs, we are working to reduce the number of containers used by improving loading efficiency, diversify ocean shipping routes, and secure container capacity over the medium to long term.」

「Lifestyle Business Although gains from higher sales volume and rationalization initiatives were made, the significant impact of higher raw material prices and other factors resulted in operating profit of ¥105.1 billion, down 30% year on year. …(b) Automotive Revenue was ¥774.9 billion, up 7% year on year. Although the business was affected by semiconductor shortages,」

「Although gains from higher sales volume and rationalization initiatives were made, the significant impact of higher raw material prices and other factors resulted in operating profit of ¥45.5 billion, down 11% year on year.」

「Operating profit in Appliances increased to ¥42.1 billion, up 177% year on year, as the effects of higher raw material prices and other factors were offset by gains from higher sales volume and curbs on selling and marketing expenses.」

「We identified suppliers and items presenting issues and worked to secure alternative suppliers and production sites. As a result, although we initially experienced difficulty in obtaining supplies of some components, we have now achieved largely uninterrupted supply.」

「In the second quarter, market conditions recovered in line with the lifting of restrictions on movement and the progress of economic reopening in various countries. Supply-side issues were also resolved, and conditions are gradually improving.」

「We identified suppliers and items presenting issues and worked to secure alternative suppliers and production sites. As a result, although we initially experienced difficulty in obtaining supplies of some components, we have now achieved largely uninterrupted supply.」

「Operating profit was ¥292.8 billion, down 8% year on year. Despite gains from higher sales volume and improvements in other income and expenses, including gains on the sale of land, operating profit declined due to higher fixed costs and raw material prices.」

「Operating profit increased because gains from higher sales volume offset the negative effects of higher fixed costs and raw material prices, while other income and expenses also improved, including gains on the sale of land.」

「Although raw material prices rose, mainly for white goods such as air conditioners, efforts to control purchase prices for raw materials and components and to consider alternative materials and substitute products, together with gains from higher sales volume, increased operating profit by ¥5.5 billion from the previous fiscal year.」

「Operating profit was ¥196.6 billion, up 10% year on year. Despite the effects of higher raw material prices, higher fixed costs due to upfront investments and the reversal of one-time gains recorded in the previous year, operating profit increased on improved profitability in businesses including Industrial.」

「Although higher fixed costs from upfront investments and other factors, as well as higher raw material prices, reduced earnings, higher revenue in businesses including the Industrial business, where the shift toward automotive and industrial applications is progressing, together with improvements in other income and expenses, resulted in higher earnings.」

「If supply becomes insufficient or is interrupted due to disasters, accidents or the bankruptcy of a supplier, or if demand increases across the industry, it may be difficult to replace or add suppliers or switch to other components.」