Business Disruption and Impact on Performance Caused by COVID-19

「During the interim consolidated accounting period, there were no new occurrences of the major risks that management recognizes as potentially having a material impact on the group’s financial position, operating results or cash flows, among the matters concerning the business and accounting conditions described in this interim report, nor were there any material changes to the risks described in the “Business and Other Risks” section of the annual securities report for the previous fiscal year.」

「During the cumulative third quarter, there were no new occurrences of the major risks that management recognizes as potentially having a material impact on the company’s financial position, operating results or cash flows, among the matters concerning the business and accounting conditions described in this quarterly report, nor were there any material changes to the risks described in the “Business and Other Risks” section of the annual securities report for the previous fiscal year.」

「During the first six months of the current fiscal year, the normalization of socioeconomic activity, including private consumption and inbound demand, progressed further following the reclassification of COVID-19 to Class 5.」

「During the first three months of the current fiscal year, Japan's economy saw further progress toward the normalization of economic and social activity, including the reclassification of COVID-19 to Class 5. However, market conditions remained challenging, with the protracted situation in Ukraine, inflation caused by soaring energy and raw material prices, and downside risks to the economy from global monetary tightening requiring continued attention.」

「Although the company expects the movement of people and flow of goods, which had been suppressed by the spread of COVID-19, to become more active as the pandemic moves toward containment and economic and social activity normalizes, price increases for a wide range of products, including energy and food, have become a reality, making it difficult to take an optimistic view of consumption and capital investment.」

「During the cumulative third quarter, there were no new occurrences of the major risks that management recognizes as potentially having a material impact on the company’s financial position, operating results or cash flows, among the matters concerning the business and accounting conditions described in this quarterly report, nor were there any material changes to the risks described in the “Business and Other Risks” section of the annual securities report for the previous fiscal year.」

「During the cumulative second-quarter period of the current consolidated fiscal year, disruptions in the supply of parts and products from overseas had yet to be resolved due to the continuing impact of COVID-19. In addition to the prolonged situation in Ukraine, downside risks to the economy had become apparent, including soaring energy resource prices, supply constraints and the rapid depreciation of the yen, and it remained necessary to continue monitoring their impact.」

「During the cumulative first quarter, there were no new occurrences of the major risks that management recognizes as potentially having a material impact on the company’s financial position, operating results or cash flows, among the matters concerning the business and accounting conditions described in this quarterly report, nor were there any material changes to the risks described in the “Business and Other Risks” section of the annual securities report for the previous fiscal year.」

「Although the end of the COVID-19 pandemic remains difficult to foresee, economic activity is expected to recover gradually as vaccination progresses.」

「However, since around the end of the year, infections caused by highly transmissible variants have begun to spread again, and the application of priority preventive measures in many regions has meant that close attention remains necessary to the impact on domestic and overseas economies.」

「During the first six months of the current fiscal year, the re-expansion of COVID-19 prolonged the state of emergency, and economic activity continued to be restricted. However, signs of improvement had begun to emerge, including progress in vaccinations and a decline in the number of positive cases.」

「During the first three months of the current fiscal year, Japan's economy remained in an uncertain situation, as economic activity continued to be restricted by repeated declarations of a state of emergency and the application of priority preventive measures following the spread of COVID-19, while private consumption showed weakness.」

「In the construction-related industry in which our group operates, companies became more cautious about capital investment because of the consumption tax increase in October 2019, the decline following Olympic-related demand, and the uncertain outlook for the containment of COVID-19. Some projects involving construction work for commercial facilities and stores were postponed or reduced in scale.」

「Amid uncertainty in the domestic economy caused by the spread of COVID-19, as well as the effects of the previous year's consumption tax increase and the decline following Olympic-related demand, some projects involving construction work for commercial facilities, stores and factories were postponed or reduced in scale.」

「In the construction-related industry in which our Group operates, public demand remained relatively firm. However, private-sector demand remained in difficult conditions, as the domestic economy stagnated under the impact of the spread of COVID-19, against a backdrop that included the reactionary decline following the previous year's consumption tax increase and the decline following Olympic-related demand, resulting in project postponements, cancellations and reductions in scale.」

「During the first three months of the current fiscal year, much of the market's functioning was constrained by the spread of COVID-19, including through widespread requests to refrain from going out and business closures. The flow of people, goods and money stagnated, leaving the domestic economy in an extremely severe condition. The outlook remained uncertain even after the state of emergency was lifted.」

「The global impact of COVID-19 has created an uncertain outlook for the business environment surrounding our group. If an unforeseen situation, such as a further spread of the infection, occurs, it could have a material impact on the financial condition and business performance of our corporate group.」