Higher Costs Due to Rising Raw Material and Logistics Costs

「診療報酬改定等の影響に加え、原材料やエネルギー価格の高騰、医療従事者の慢性的な人手不足による人件費の上昇が継続しており、各医療機関の経営環境は依然として厳しい状況が続いております。」

「The healthcare-related industry to which our group belongs continues to face the effects of revisions to medical service fees, soaring raw material and energy prices, and rising personnel costs due to chronic staff shortages among healthcare professionals. The operating environment for individual medical institutions therefore remains difficult.」

「利益につきましては、設備投資に伴う減価償却費の増加等の影響により、営業利益4,272百万円（同4.8％減）、経常利益4,484百万円（同3.7％減）となりました。」

「In the healthcare industry in which the Group operates, medical institutions continue to face difficult conditions due not only to the impact of revisions to medical service fees and other factors, but also to rising material costs and the chronic shortage of healthcare professionals.」

「As a result, for the current consolidated fiscal year, net sales were ¥22,553.238 million, up 3.2% year on year, while operating income was ¥4,486.793 million, down 4.1%, due in part to higher manufacturing costs.」

「Meanwhile, the outlook remained uncertain due to concerns over the impact of higher resource and energy prices and inflation on consumption, sharp foreign exchange movements, increasing geopolitical risks and uncertainty in the global economy. In the healthcare industry in which the Group operates, the number of surgeries and examinations showed signs of recovering to pre-pandemic levels in medical settings. However, the environment surrounding the healthcare industry remains challenging due to the effects of surging supply prices and chronic labor shortages among healthcare professionals.」

「Meanwhile, Russia's invasion of Ukraine continued, raw material prices surged due to the weaker yen and other factors, and the outlook for the economy remained uncertain.」

「In the healthcare industry in which the Group operates, prices of supplies have continued to rise against a backdrop of further yen depreciation and higher resource prices. In medical settings, the number of surgeries and examinations showed signs of recovering to pre-pandemic levels. The environment surrounding the healthcare industry remains challenging.」

「Meanwhile, Russia's invasion of Ukraine became protracted, while surging energy and raw material prices, the effects of foreign exchange movements and concerns over inflation continued, leaving the outlook uncertain.」

「Meanwhile, Russia's invasion of Ukraine continued, raw material prices surged due to the weaker yen and other factors, and the outlook for the economy remained uncertain.」

「During the six months ended 30 September, infections in the seventh wave of COVID-19 rose sharply, but neither the government nor local authorities imposed restrictions on activity, and economic activity remained on a recovery trend. However, raw-material and crude-oil prices surged due to the impact of Russia's invasion of Ukraine, while a sharp depreciation of the yen and heightened inflationary pressures resulting from higher policy rates in the US and Europe left the economic outlook uncertain.」

「During the three months ended 30 June, restrictions on activity related to COVID-19 were eased in March when priority preventive measures were lifted, and economic activity began to recover despite some remaining restrictions on daily life. However, the outlook became uncertain due to soaring resource and raw-material prices resulting from Russia's invasion of Ukraine, a sharp depreciation of the yen and intensifying inflationary pressures.」

「Toward the end of the fiscal year, concerns arose over the outlook for the economy due to the issuance of priority preventive measures to curb the spread of infection following the renewed increase in COVID-19 cases caused by the emergence of the Omicron variant, surging commodity prices resulting from Russia's invasion of Ukraine, and concerns over inflation due to the weakening yen.」

「During the cumulative third quarter of the consolidated fiscal year, the Japanese economy was in a situation where the intermittent spread and subsiding of COVID-19 continued, while concerns arose over adverse effects on business performance from higher raw material prices resulting from the depreciation of the yen and surging crude oil prices.」

「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 production activities of the Group depend on the supply of raw materials and parts from suppliers outside the Group. …In particular, procurement prices for plastic are generally linked to the prices of naphtha and crude oil, which are its raw materials. A surge in the prices of these raw materials could affect the Group's business performance.」

「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 current fiscal year, external factors including higher raw material prices associated with the rise in crude oil prices and a sudden increase in logistics costs contributed to higher costs. As this trend is expected to continue, the Company believes it is necessary to pursue efficient procurement and logistics planning.」