Risk of industrial accidents, natural disasters, and system failures

「To minimize damage, including to the surrounding environment, in the event of a natural disaster, the Company conducts regular facility inspections and periodically reviews its medium- to long-term outlook for repairs and renewals.」

「During the interim consolidated accounting period, there were no new business or other risks, nor any significant changes to the business or other risks described in the annual securities report for the previous fiscal year.」

「During the interim consolidated accounting period, there were no new business or other risks, nor any significant changes to the business or other risks described in the annual securities report for the previous fiscal year.」

「To minimize damage, including to the surrounding environment, in the event of a natural disaster, the Company conducts regular facility inspections and periodically reviews its medium- to long-term outlook for repairs and renewals.」

「During the cumulative third quarter of the current consolidated fiscal year, there were no new business or other risks, nor any material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「During the cumulative second quarter of the current consolidated fiscal year, there were no new business or other risks, nor any material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「During the cumulative first quarter under review, 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.」

「Damage from Typhoon No. 14, which occurred in September 2022, was sustained, and ¥106.670 million in disaster-related losses was recognized as an extraordinary loss.」

「The quarterly net loss attributable to owners of the parent was ¥178 million, reflecting the recognition of ¥106 million in disaster-related losses, ¥67 million in business structure reform costs, and ¥42 million in loss on the sale of investments in affiliates.」

「During the cumulative second quarter of the current consolidated fiscal year, there were no new business or other risks, nor any material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「During the cumulative first quarter under review, 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.」

「During the cumulative third quarter of the current consolidated fiscal year, there were no new business or other risks, nor any material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「During the cumulative second quarter of the current consolidated fiscal year, there were no new business or other risks, nor any material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「Although demand related to semiconductors was solid, the high-silica division, which supplies raw materials for semiconductor encapsulants and other products, including refined silica stone powder, recorded lower revenue and profit year on year due in part to delays in raw material arrivals and quality variability caused by the impact of India's lockdowns accompanying the spread of COVID-19.」

「Damage from Typhoon No. 9 in August 2020 and Typhoon No. 10 in September 2020, among other events, occurred, and ¥205.496 million in disaster-related losses was recognized as an extraordinary loss.」

「Revenue for the third quarter of the current consolidated cumulative period was ¥6,431 million, up 0.4% year on year, operating profit was ¥57 million, up 132.6%, and ordinary profit was ¥62 million, up 82.9%. However, due to the recording of ¥208 million in extraordinary losses related to typhoon damage and other factors, quarterly net loss attributable to owners of the parent was ¥97 million, compared with a ¥13 million loss in the same period of the previous year.」

「Sales and orders for marine equipment both declined because of the slowdown in the pace of construction caused by weak orders at domestic shipyards. Profitability also deteriorated because of large-scale repair work, restoration costs following damage from Typhoon No. 10 in September, and lower operating efficiency.」

「During the first quarter of the consolidated cumulative period, the global economy experienced a sharp decline as the spread of COVID-19 continued unabated. The Japanese economy also deteriorated, and although signs of a bottoming out were seen, a full-fledged recovery was not expected.」

「The quarterly net loss attributable to owners of the parent was ¥13 million, mainly because ¥58 million in losses from damage caused by Typhoon Hagibis in October of the previous year was recognized as an extraordinary loss.」

「Typhoon Hagibis, which struck eastern Japan on 12 October 2019, caused the prefectural road leading to the Chichibu site of the Company's Resources Development Headquarters to collapse, resulting in a road closure. As a result, products could not be transported from the site, which has currently suspended production activities.」

「During the cumulative first quarter under review, 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.」

「With respect to the mines, the Company works to prevent mine pollution in accordance with applicable laws and regulations, including preventing water pollution from mine drainage and ensuring the safe management of tailings facilities. However, amendments to relevant laws and regulations may result in new costs, and substantial costs may also be incurred to implement additional construction and other measures to prevent property damage and personal injury caused by natural disasters and other events at closed or abandoned mines.」

「During the cumulative third quarter of the current consolidated fiscal year, there were no new business or other risks, nor any material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「During the cumulative second quarter of the current consolidated fiscal year, there were no new business or other risks, nor any material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「During the cumulative first quarter under review, 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.」

「The Company recognized ¥175 million in impairment losses related to the crystalline limestone segment and ¥123 million as a provision for stabilization work at a tailings facility at a closed or abandoned mine formerly operated by the Company, both as extraordinary losses.」

「During the cumulative third quarter of the current consolidated fiscal year, there were no new business or other risks, nor any material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「During the cumulative second quarter of the current consolidated fiscal year, there were no new business or other risks, nor any material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「With respect to the mines, the Company works to prevent mine pollution in accordance with applicable laws and regulations, including preventing water pollution from mine drainage and ensuring the safe management of tailings facilities. However, amendments to relevant laws and regulations may result in new costs, and substantial costs may also be incurred to implement additional construction and other measures to prevent property damage and personal injury caused by natural disasters and other events at closed or abandoned mines.」

「During the cumulative third quarter of the current consolidated fiscal year, there were no new business or other risks, nor any material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「During the cumulative second quarter of the current consolidated fiscal year, there were no new business or other risks, nor any material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「During the cumulative first quarter under review, 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.」

「If an industrial accident, natural disaster such as an earthquake, tsunami, or typhoon, system failure, or the spread of an infectious disease were to occur at a factory, business site, or other facility of the Company's group, business activities could be disrupted, and substantial costs could be incurred for countermeasures and compensation, potentially affecting the group's business results and financial position.」