Risk of business interruption and supply chain disruption caused by natural disasters and other events

「The collapse of the supply chain associated with the worsening situation in Iran is precisely a case in which this risk materialized. We will maintain appropriate preparedness for these risks in our daily operations to reduce their impact when they occur, and if they materialize, we will work to mitigate their impact by responding flexibly to the circumstances at each point in time.」

「The automotive industry, to which the Company belongs, saw production decline because of production adjustments related to scandals and the loss of momentum among Japanese automakers in the Chinese market.」

「The recent Noto Peninsula earthquake has also had a significant impact across Japan, and we recognize that this is a risk for which Japan, a country prone to earthquakes, must always be prepared. We will maintain appropriate preparedness for these risks in our daily operations and work to reduce their impact as much as possible when they occur.」

「Although parts supply issues in the automotive industry, to which the Company belongs, had been resolved, production remained below expectations because of weak performance in the Chinese market, factory fires in Japan, fraudulent certification issues and other factors.」

「In the automotive industry, to which the Company belongs, parts procurement issues appeared to have been largely resolved and a path toward increased production appeared to be in place. However, production did not increase as much as expected because scandals, system failures, fires at suppliers’ factories and other incidents occurred frequently.」

「The automotive industry, to which the Company belongs, remained sluggish as parts supply issues continued unresolved and production cuts persisted.」

「The automotive industry, to which the Company belongs, remained sluggish as parts supplies failed to recover despite a large backlog of orders resulting from production cuts during the pandemic. A cycle in which planned production increases instead resulted in production cuts continued to recur.」

「The automotive industry, the Group’s main customer base, remained sluggish as it struggled more than in the second half of the previous fiscal year to procure semiconductors and other parts, partly because of supply chain disruption caused by the prolonged lockdown in Shanghai, China. As a result, factories around the world successively suspended operations.」

「The automobile industry, one of the Group's main business areas, remained firm in the first quarter at the beginning of the fiscal year as it carried out catch-up production following the semiconductor shortage in the previous year. From the latter half of the second quarter, however, supply chains were disrupted again as infections spread in Southeast Asia, resulting in substantial production cuts again in the third quarter.」

「Although business remained strong in the first half, customers cut production from September onward because it became difficult to procure semiconductors and other parts amid supply chain disruption, resulting in lower sales in the third quarter than in the same period of the previous year.」

「The supply of automotive parts, including semiconductors and wire harnesses, was disrupted by production-site shutdowns and other effects of the spread of the novel coronavirus in Southeast Asia. Production was forced to undergo substantial cuts from late August, bringing operations to an abrupt halt.」

「Shortages in the supply capacity for semiconductors and other raw materials and parts, and more recently factory shutdowns resulting from the spread of infections in Southeast Asia, disrupted the supply of parts and led to situations in which production adjustments became unavoidable. The outlook remains uncertain.」

「In the fourth quarter, this increase in production coincided with semiconductor and resin material plant shutdowns caused by natural disasters and fires, affecting the production of various companies and weakening conditions.」

「The automotive industry, to which the Company belongs, was severely affected during the early and expansion phases of the pandemic, with automakers and others suspending factory operations for extended periods. During the subsequent recovery phase, demand returned, and although conditions varied by company, the industry as a whole was more active during the recovery phase than in the same period of the previous year.」

「Automakers suffered significant damage during the spread of infectious diseases, including prolonged plant shutdowns, but demand returned during the subsequent recovery, and despite differences among companies, the industry as a whole appears to have almost recovered recently. In this environment, the Group's consolidated net sales fell to ¥8,066 million, down 25.1% year on year, affected by the decline caused by customer plant shutdowns and other factors in the April-June quarter.」

「In the automobile industry, one of the Group's main customers, demand disappeared due to lockdowns and requests to refrain from going out implemented around the world, forcing prolonged plant shutdowns and production adjustments, and both production and sales fell sharply.」

「The latest novel coronavirus outbreak affected not only overseas markets but also domestic demand and production, making this a case in which the risk actually materialized.」

「Meanwhile, the domestic economy faced a severe environment: October automobile sales fell 25% year on year due to the impact of successive natural disasters and the reactionary decline following the consumption tax increase, while exports also remained sluggish amid US-China trade friction.」

「No new business or other risks arose during the cumulative first half of the current consolidated fiscal year. In addition, there were no significant changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「No new business or other risks arose during the cumulative first quarter of the current consolidated fiscal year. In addition, there were no significant changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「If social disruption, including supply chain disruptions, occurs due to natural disasters such as earthquakes and floods or accidental disasters such as fires, the Group's operating results and financial position may be affected by business interruptions, lost business opportunities and the costs of recovery, among other factors.」

「No new business or other risks arose during the cumulative first three quarters of the current consolidated fiscal year. In addition, there were no significant changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「No new business or other risks arose during the cumulative first half of the current consolidated fiscal year. In addition, there were no significant changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「No new business or other risks arose during the cumulative first quarter of the current consolidated fiscal year. In addition, there were no significant changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「If social disruption, including supply chain disruptions, occurs due to natural disasters such as earthquakes and floods or accidental disasters such as fires, the Group's operating results and financial position may be affected by business interruptions, lost business opportunities and the costs of recovery, among other factors.」

「If social disruption, including supply chain disruptions, occurs due to natural disasters such as earthquakes and floods or accidental disasters such as fires, the Group's operating results and financial position may be affected by business interruptions, lost business opportunities and the costs of recovery, among other factors.」