Risk of market contraction due to financial and economic turmoil

「If domestic or global financial or economic disruption causes significant contraction in the markets in which the Group operates, sales may decline and the collection of receivables may take longer, potentially affecting the Group’s business results and financial position.」

「Sales and operating profit were lower than in the previous fiscal year because customer companies cancelled or postponed capital investment, repairs and maintenance, price competition with competitors intensified as a result, and sales to South Korea and Southeast Asia declined due to restrictions on overseas travel.」

「However, in the difficult environment created by the spread of the novel coronavirus and the resulting uncertainty about the outlook, sales and profit in the core testing equipment business were adversely affected because customer companies cancelled or postponed capital investment projects more often than expected.」

「In the difficult environment created by the spread of the novel coronavirus, the Company reviewed its sales structure and strengthened sales activities in its core testing equipment business. However, customer companies cancelled or postponed capital investment projects more often than expected, resulting in very difficult results.」

「If domestic or global financial or economic disruption causes significant contraction in the markets in which the Group operates, sales may decline and the collection of receivables may take longer, potentially affecting the Group’s business results and financial position.」

「During the first nine months of the current consolidated fiscal year, the Japanese economy was severely affected as the novel coronavirus disease spread throughout the world in a short period. Restrictions on overseas travel, the declaration of a state of emergency in Japan, requests to refrain from going out and to suspend business operations, and other measures severely restricted corporate activities and personal consumption. Although some recovery was subsequently seen as economic activity gradually resumed and as a result of government policies, the outlook remained uncertain, including because infections of the novel coronavirus disease were spreading again nationwide.」

「Economic activity and social life generally came to be severely affected. Restrictions on overseas travel, the declaration of a state of emergency in Japan, requests to refrain from going out and to suspend business operations, and other measures severely restricted corporate activities and personal consumption, causing the economy to deteriorate rapidly, with little sign of a resolution, and creating an uncertain outlook.」

「The novel coronavirus disease, which began spreading around the end of the previous year, mainly in Wuhan, Hubei Province, China, spread throughout the world in a short period and came to have a devastating impact on economic activity and social life generally. Restrictions on overseas travel, the declaration of a state of emergency in Japan, requests to refrain from going out and to suspend business operations, and other measures severely restricted corporate activities and personal consumption, causing the economy to deteriorate rapidly and creating an uncertain outlook.」

「Looking ahead, growth in not only the Chinese economy but also the global economy is expected to decline significantly because of the global spread of the novel coronavirus, and there are concerns that the Japanese economy may also enter a recession as a result.」

「If domestic or global financial or economic disruption causes significant contraction in the markets in which the Group operates, sales and gross profit may decline and the collection of receivables may take longer, potentially affecting the Group’s business results and financial position.」