Impact of Foreign Exchange Fluctuations on Raw Material Costs, the Competitive Environment, and Earnings

「Meanwhile, prices have continued to rise due to soaring energy and raw material prices against the backdrop of the prolonged situations in Ukraine and the Middle East, while fluctuations in exchange rates and stock prices have also continued to affect conditions. The outlook therefore remains uncertain.」

「Amid an unstable global economy, crude oil prices and exchange rates are expected to fluctuate substantially, with raw-material, energy and logistics costs also expected to fluctuate significantly.」

「Meanwhile, the yen has continued to depreciate sharply due to differences in monetary policy between Japan and Western countries, concerns over a slowdown in overseas economies remain, and uncertainty surrounding the situations in Ukraine and the Middle East, together with measures taken by oil-producing countries, has kept energy and material prices elevated. The outlook remains uncertain.」

「Meanwhile, the yen has continued to depreciate due to differences in monetary policy between Japan and other countries, concerns over a slowdown in overseas economies remain, and energy and material prices have stayed elevated against the backdrop of the situation in Ukraine and continued production cuts by oil-producing countries. The outlook remains uncertain.」

「Meanwhile, the yen has continued to depreciate due to differences in monetary policy between Japan and Western countries, concerns over a slowdown in overseas economies remain, and energy and material prices have remained elevated against the backdrop of the prolonged situation in Ukraine. The outlook therefore remains uncertain.」

「Our products are affected to some extent by exchange-rate fluctuations. When the yen appreciates, the prices of wood chips, our main raw material, and energy costs decline, helping to reduce manufacturing costs. At the same time, however, appreciation of the yen makes it easier for overseas MDF manufacturers to enter the Japanese market, which can intensify price competition and otherwise affect our operating performance. Conversely, when the yen depreciates, the purchase price of wood chips rises. If the increase cannot be passed on to selling prices, it may reduce revenue and lower profit. We enter into forward exchange contracts to mitigate the risk of sharp exchange-rate fluctuations.」

「During the cumulative third-quarter period, there were no occurrences of matters described in this quarterly securities report concerning the business or financial condition that could have a material impact on investors' decisions, and no material changes to the "Business and Other Risks" described in the annual securities report for the previous fiscal year.」

「During the cumulative second quarter, Japan's economy moved toward normalization of socioeconomic activity as restrictions related to COVID-19 were gradually eased. However, in addition to the impact of a resurgence in infections caused by new variants, disruptions in the international community, including the prolonged situation between Russia and Ukraine, drove up raw material and energy costs, while the widening interest-rate differential between Japan and the United States led to a sharp depreciation of the yen.」

「Prices have risen more than expected as the yen has depreciated sharply due to the widening interest-rate differential between Japan and the United States, and the outlook for the economy remains uncertain.」

「Our group's products are affected to some extent by exchange-rate fluctuations. When the yen appreciates, wood chips, our primary raw material, help reduce manufacturing costs. At the same time, however, appreciation of the yen makes it easier for overseas MDF manufacturers to enter the Japanese market, which can intensify price competition and otherwise affect our operating performance. Conversely, when the yen depreciates, the purchase price of wood chips rises. If the increase cannot be passed on to selling prices, it may reduce revenue and lower profit. We enter into forward exchange contracts to mitigate the risk of sharp exchange-rate fluctuations.」

「During the cumulative third-quarter period, there were no occurrences of matters described in this quarterly securities report concerning the business or financial condition that could have a material impact on investors' decisions, and no material changes to the "Business and Other Risks" described in the annual securities report for the previous fiscal year.」

「During the cumulative second quarter, there were no material changes in matters concerning the business and financial conditions described in this quarterly securities report that could have a material impact on investors' decisions, nor in the risks associated with the business and other matters described in the securities report for the previous fiscal year.」

「Our products are affected to some extent by exchange-rate fluctuations. When the yen appreciates, wood chips, our primary raw material, help reduce manufacturing costs. At the same time, however, appreciation of the yen makes it easier for overseas MDF manufacturers to enter the Japanese market, which can intensify price competition and otherwise affect our operating performance. Conversely, when the yen depreciates, the purchase price of wood chips rises. If the increase cannot be passed on to selling prices, it may reduce revenue and lower profit. We enter into forward exchange contracts to mitigate the risk of sharp exchange-rate fluctuations.」

「During the cumulative third-quarter period, there were no occurrences of matters described in this quarterly securities report concerning the business or financial condition that could have a material impact on investors' decisions, and no material changes to the "Business and Other Risks" described in the annual securities report for the previous fiscal year.」

「During the cumulative second quarter, there were no material changes in matters concerning the business and financial conditions described in this quarterly securities report that could have a material impact on investors' decisions, nor in the risks associated with the business and other matters described in the securities report for the previous fiscal year.」

「During the cumulative first-quarter period, there were no occurrences of matters described in this quarterly securities report concerning the business or financial condition that could have a material impact on investors' decisions, and no material changes to the "Business and Other Risks" described in the annual securities report for the previous fiscal year.」

「Our products are affected to some extent by exchange-rate fluctuations. When the yen appreciates, wood chips, our primary raw material, help reduce manufacturing costs. At the same time, however, appreciation of the yen makes it easier for overseas MDF manufacturers to enter the Japanese market, which can intensify price competition and otherwise affect our operating performance. Conversely, when the yen depreciates, the purchase price of wood chips rises. If the increase cannot be passed on to selling prices, it may reduce revenue and lower profit. We enter into forward exchange contracts to mitigate the risk of sharp exchange-rate fluctuations.」

「During the cumulative third-quarter period, there were no occurrences of matters described in this quarterly securities report concerning the business or financial condition that could have a material impact on investors' decisions, and no material changes to the "Business and Other Risks" described in the annual securities report for the previous fiscal year.」

「During the cumulative first-quarter period, there were no occurrences of matters described in this quarterly securities report concerning the business or financial condition that could have a material impact on investors' decisions, and no material changes to the "Business and Other Risks" described in the annual securities report for the previous fiscal year.」

「During the cumulative third-quarter period, there were no occurrences of matters described in this quarterly securities report concerning the business or financial condition that could have a material impact on investors' decisions, and no material changes to the "Business and Other Risks" described in the annual securities report for the previous fiscal year.」

「Containing imported raw material costs through forward exchange contracts」

「Containing imported raw material costs through forward exchange contracts」

「Our products are affected to some extent by exchange-rate fluctuations. When the yen appreciates, wood chips, our primary raw material, help reduce manufacturing costs. At the same time, however, appreciation of the yen makes it easier for overseas MDF manufacturers to enter the Japanese market, which can intensify price competition and otherwise affect our operating performance. Conversely, when the yen depreciates, the purchase price of wood chips rises. If the increase cannot be passed on to selling prices, it may reduce revenue and lower profit. We enter into forward exchange contracts to mitigate the risk of sharp exchange-rate fluctuations.」

「During the cumulative third quarter, there were no material changes in matters concerning the business and financial conditions described in this quarterly securities report that could have a material impact on investors' decisions, nor in the risks associated with the business and other matters described in the securities report for the previous fiscal year.」

「During the cumulative second quarter, the Japanese economy remained in a state of partial recovery. Corporate earnings growth slowed amid persistent upward pressure on the yen and weak stock markets, but expectations for the government's economic policies provided support. Capital investment showed a modest recovery trend, while personal consumption also improved slightly against a backdrop of firm employment and income conditions.」

「As we passed higher purchase prices for imported goods resulting from the yen's depreciation on to selling prices, sales volume declined. We enter into forward exchange contracts to reduce the risk from sharp exchange-rate fluctuations.」