Risk of shortages and price increases for rare metals and specialty gases

「光源の主要部材であるタングステン等の原材料価格高騰による影響を受けたものの、露光装置の需要回復に伴う販売可能性の見積りを反映した結果、棚卸資産の評価損は純額で戻し入れとなりました。なお、タングステン価格の高騰による影響は、対策を講じることにより、今後抑制される見込みです。」

「The closure of suppliers or tighter regulations in countries of origin may delay or interrupt the supply of raw materials, parts and purchased products, potentially causing production stoppages. Costs may rise due to resource depletion and tight supply and demand.」

「当社グループのリスクに対するアセスメントを定期的に実施し、社長を委員長として設置するリスク管理委員会において、アセスメントの結果をふまえた重要リスクの特定及び評価、対応計画の策定並びにモニタリングを実施します。」

「Analyze the current situation for each component and clarify substitution and backup plans for identified risks. Develop a procurement policy covering group-wide centralized purchasing and decentralized purchasing.」

「Tungsten, molybdenum and other rare metals and specialty gases are used as key raw materials in the manufacture of light sources. Optical equipment and visual imaging equipment also rely on external procurement of key components, including semiconductors. If shortages or price increases occur rapidly on a global scale, stable product supplies could be disrupted and manufacturing costs could rise substantially, potentially having a material impact on the performance and financial condition of the Group.」

「Meanwhile, component procurement costs for the Visual Imaging Equipment business as a whole are trending upward because shortages of components have persisted.」

「During the consolidated cumulative second quarter under review, the Group's business environment remained uncertain. While a lifestyle adapted to living with COVID-19 was becoming established and economic activity was reopening, the pace of economic recovery was slowing due to shortages of semiconductors and other components, higher energy and raw material prices resulting from the situation in Russia and Ukraine and other factors, interest-rate hikes accompanying accelerating inflation in Europe and the United States, and the rapid depreciation of the yen.」

「During the consolidated cumulative first quarter under review, the Group's business environment remained uncertain. Economic activity was gradually reopening amid a global resurgence of COVID-19, but the pace of economic recovery was slowing due to shortages of semiconductors and other components, higher raw material prices, supply chain disruptions, the situation in Russia and Ukraine, and further increases in energy and raw material prices resulting from these factors.」

「Tungsten, molybdenum and other rare metals and specialty gases are used as key raw materials in the manufacture of light sources. Optical equipment and visual imaging equipment also rely on external procurement of key components, including semiconductors. If shortages or price increases occur rapidly on a global scale, stable product supplies could be disrupted and manufacturing costs could rise substantially, potentially having a material impact on the performance and financial condition of the Group.」

「At the same time, the outlook remains uncertain due to the risk of a renewed spread of COVID-19 variants, shortages of semiconductors and other components, higher raw material costs and supply chain disruptions.」

「In addition to ensuring quality, we are working to secure stable volumes and maintain prices by sourcing raw materials from a broad range of suppliers.」

「During the six-month period ended [current second quarter], there were no new business risks and no material changes to the business risks described in the prior fiscal year's annual securities report.」

「During the cumulative first quarter under review, there were no newly arising business or other risks, nor any material changes to the business or other risks described in the securities report for the preceding fiscal year.」

「However, because rare metals such as tungsten and molybdenum and specialty gases are used as key raw materials, particularly in the lamp manufacturing process, shortages of these raw materials or price increases could raise manufacturing costs and have a material impact on the performance and financial condition of the Group.」

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

「During the six-month period ended the second quarter, there were no new business or other risks, nor any significant changes to the business or other risks described in the securities report for the previous fiscal year.」

「During the first 3 months of the current fiscal year, there were no new business or other risks, nor any material changes to the business or other risks described in the annual securities report for the previous fiscal year.」

「However, because rare metals such as tungsten and molybdenum and specialty gases are used as key raw materials, particularly in lamp manufacturing, shortages of these raw materials or price increases could raise manufacturing costs and have a material impact on the performance and financial condition of the Group.」

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

「During the six-month period ended the second quarter, there were no new business or other risks, nor any significant changes to the business or other risks described in the securities report for the previous fiscal year.」

「During the first 3 months of the current fiscal year, there were no new business or other risks, nor any material changes to the business or other risks described in the annual securities report for the previous fiscal year.」

「However, because rare metals such as tungsten and molybdenum and specialty gases are used as key raw materials, particularly in lamp manufacturing, shortages of these raw materials or price increases could raise manufacturing costs and have a material impact on the performance and financial condition of the Group.」