Dependence on External Parts Suppliers and Rising Raw Material Prices

「原材料価格上昇影響や再発防止策実施に伴う人件費などの費用増やリスクを見込み、減益予想」

「In terms of profit, operating profit decreased 0.2% from the previous fiscal year to ¥5,436 million, affected by higher raw material prices and other factors.」

「In terms of earnings, despite the impact of higher raw-material prices and other factors, operating profit increased 28.1% year on year to ¥2,715 million, ordinary profit increased 65.5% to ¥3,013 million, and interim profit attributable to owners of the parent increased 91.1% to ¥2,081 million due to cost reductions and the effects of structural reforms.」

「In terms of profit, in addition to sluggish sales growth, higher raw material prices and other factors resulted in operating profit of ¥2,119 million, down 36.1% year on year, ordinary profit of ¥1,820 million, down 55.8%, and interim net profit attributable to owners of the parent of ¥1,089 million, down 65.6%.」

「In terms of earnings, although the company continued efforts to improve the earnings structure and promote cost reductions, operating profit declined 30.8% year on year to ¥967 million, ordinary profit declined 21.7% from the previous fiscal year to ¥1,625 million, and profit attributable to owners of the parent for the quarter declined 12.9% year on year to ¥1,251 million due to continued high raw-material prices and increased selling, general and administrative expenses, including costs related to the new ERP system scheduled to be introduced during the current cumulative consolidated period.」

「In terms of earnings, although the suspension of operations at the Shanghai production subsidiary due to lockdowns in China during the first quarter and higher raw-material prices had an adverse effect, the recovery in revenue from the second quarter, efforts to improve the earnings structure and cost reductions resulted in operating profit increasing 54.8% year on year to ¥5,242 million, ordinary profit increasing 72.5% to ¥5,864 million, and profit attributable to owners of the parent for the quarter increasing 47.3% to ¥4,350 million.」

「In terms of earnings, although the suspension of operations at the Shanghai production subsidiary due to lockdowns in China during the first quarter and higher raw-material prices had an adverse effect, the recovery in revenue from the second quarter, efforts to improve the earnings structure, lower transportation costs and cost reductions resulted in operating profit increasing 21.3% year on year to ¥3,063 million, ordinary profit increasing 64.6% to ¥4,045 million, and profit attributable to owners of the parent for the quarter increasing 33.8% to ¥2,901 million.」

「In terms of profit, the Group promoted greater fixed-cost absorption resulting from higher sales and cost reductions through measures including increased in-house production. However, due to the adverse impact of surging raw material and transportation costs and higher logistics costs resulting from supply chain disruptions, operating profit increased 55.9% from the previous fiscal year to ¥4,520 million,」

「In terms of earnings, although higher raw-material and transportation costs and increased logistics expenses due to supply-chain disruptions had an adverse effect, the company promoted greater recovery of fixed costs through higher revenue and cost reductions through increased in-house production. Operating profit increased 94.7% year on year to ¥3,387 million, ordinary profit increased 115.1% to ¥3,399 million, and profit attributable to owners of the parent for the quarter increased 167.4% to ¥2,953 million.」

「In terms of profit, despite the impact of higher-than-expected raw material prices and higher per-unit transportation costs, the substantial increase in sales resulted in operating profit of ¥2,526 million, up 1357.0% year on year, ordinary profit of ¥2,458 million, up 3101.3%, and quarterly net profit attributable to owners of the parent of ¥2,168 million, up 26541.2%.」

「In terms of profit, despite surging prices of raw materials such as gold and copper and higher transportation costs in response to strong demand, the substantial increase in sales resulted in operating profit of ¥1,264 million (operating loss of ¥395 million in the same period of the previous year), ordinary profit of ¥1,207 million (ordinary loss of ¥410 million in the same period of the previous year), and quarterly net profit attributable to owners of the parent of ¥1,052 million (quarterly net loss attributable to owners of the parent of ¥432 million in the same period of the previous year).」

「The main factors were rising wages in Asia, surging prices of materials such as gold and copper, and an increase in depreciation resulting from capital investment for new products and rationalization, despite cost-reduction activities producing some results.」

「In terms of earnings, operating profit declined 52.1% year on year to ¥1,739 million due in part to lower revenue and higher gold prices, although the company worked diligently on thorough cost-reduction activities.」

「In terms of earnings, despite the effects of lower revenue and higher gold prices, thorough cost-reduction activities resulted in operating profit of ¥173 million, down 92.7% year on year,」

「Despite thorough cost-reduction efforts, a substantial decline in sales and the surge in gold prices resulted in an operating loss of ¥395 million (operating profit of ¥1,398 million in the same period of the previous year) and an ordinary loss of ¥410 million (ordinary profit of ¥1,347 million in the same period of the previous year) in terms of profit」

「Although further cost reductions and expense cuts produced some results, operating profit declined due to lower revenue resulting from the deteriorating external environment, production adjustments made in the first half in light of the outlook for future sales, and higher gold prices.」

「During the three-month cumulative period, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「The Group is working to reduce costs in response to changes in market conditions for raw materials and components by increasing in-house production and promoting local procurement through global sourcing. However, if market prices rise sharply due to changes in supply and demand in the market for raw materials and other inputs, the cost of the Group's products could increase, affecting its operating results and financial condition.」

「During the cumulative third quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that could materially affect investors’ decisions, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」

「During the cumulative second quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that could materially affect investors’ decisions, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」

「During the three-month cumulative period, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「During the nine-month cumulative period, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「The Group will work to reduce costs in response to changes in market conditions for raw materials and components by increasing in-house production and promoting local procurement through global sourcing. However, if market prices rise sharply due to changes in supply and demand in the market for raw materials and other inputs, the cost of the Group's products could increase, affecting its operating results and financial condition.」

「The Group depends on external suppliers for all major raw materials and some components. Although it has established cooperative relationships with these suppliers to ensure stable supply, a supply shortage caused by sharp fluctuations in demand or delays in supply from suppliers could prevent the Group from supplying customers and cause delivery delays, resulting in a loss of competitiveness.」