Business Activity and Performance Risks Arising from COVID-19

「During the second quarter under review, Japan's economy remained in a difficult situation. Although various restrictions related to the COVID-19 pandemic were being almost completely eliminated, supply constraints and price increases for commodities such as food and energy resulting from the prolonged situation in Ukraine, the prolonged trend of yen depreciation, and the resulting increase in consumer prices continued to pose risks to the stability of the Japanese economy.」

「During the first quarter of the current fiscal year, social and economic activity in Japan largely returned to a normal trajectory, as COVID-19 was officially reclassified as a Category 5 disease in May and restrictions on overseas travel were almost entirely lifted.」

「As in the previous fiscal year, COVID-19 infections continued to spread during the current fiscal year. However, no measures involving restrictions on activities, such as a state of emergency, were imposed. With entry restrictions from overseas being eased and a policy decision being made to reclassify COVID-19 as a Category 5 disease, the shift toward a policy of living with COVID-19 began to accelerate, and social and economic activity gradually moved toward normalization despite the risk of further disruption.」

「During the first nine months of the current fiscal year, Japan entered the eighth wave of COVID-19 infections from November onward. However, as during the arrival of the seventh wave after July, no measures involving restrictions on activities, such as a state of emergency, were imposed in preparation for living with COVID-19. Restrictions on entry into Japan from overseas also began to be eased, and social and economic activity gradually moved toward normalization despite the risk of further disruption.」

「During the first six months of the current fiscal year, the Japanese economy saw the seventh wave of COVID-19 infections peak, particularly from July onward. However, no measures involving restrictions on activities, such as a state of emergency, were imposed in preparation for living with COVID-19, and moves toward the normalization of social and economic activity gathered pace.」

「During the first quarter of the current fiscal year, the Japanese economy showed signs of moving toward normalization of social and economic activity as restrictions on economic activity were eased, although the impact of COVID-19 remained.」

「Amid the continuing impact of COVID-19, research and development equipment and production equipment for general industry performed steadily, but sales of residential energy storage systems remained sluggish as the pandemic's impact on sales persisted, and the anticipated recovery in sales did not materialize.」

「Amid the continuing impact of COVID-19, the Group's business environment remained favorable for research and development equipment and production equipment, but consumer products and other items continued to perform more sluggishly than the Company had anticipated due to constraints on sales activities and weak personal consumption.」

「Amid the COVID-19 pandemic, the Group's business environment was generally favorable for research and development equipment and production equipment, but consumer products and other items remained more sluggish than the Company had anticipated due to constraints on sales activities and weak personal consumption.」

「During the first quarter of the current fiscal year, the Japanese economy remained difficult, as there were still no signs that the COVID-19 pandemic was subsiding and restrictions on economic and consumer activity continued.」

「Amid the COVID-19 pandemic, the Group's business environment remained difficult overall, with sales activities for consumer products stagnating and sales of research and development equipment and production equipment remaining sluggish.」

「Despite a significant stagnation in sales activities, we actively pursued initiatives for business growth after the COVID-19 pandemic, including measures to mitigate the impact, strengthened development of energy storage systems in the environment- and energy-related field, preparations for constructing a new plant, and basic research and development investments in IoT, life sciences, and quantum science.」

「In sales, although the COVID-19 pandemic caused disruptions including a slowdown in sales activities, the Group worked to avoid its impact through measures such as sales methods using IT.」

「In addition, although the spread of COVID-19 has not had a significant impact on production, including the procurement of raw materials, if the situation continues for an extended period or worsens, delays or suspensions in the procurement of raw materials and other items and in production activities, as well as a decline in sales activities, are possible, which may affect business activities and performance.」