Risk of fluctuations in raw material purchase prices

「Amid an unstable raw-material procurement environment resulting from escalating tensions in the Middle East, we focused on the stable supply of products by taking every available measure, including expanding procurement routes and bringing production of certain raw materials in-house.」

「Surging crude oil prices resulting from changes in the supply-demand balance and geopolitical risks, shortages of upstream raw materials, and foreign exchange fluctuations may affect the Group's operating results and financial position through higher manufacturing costs and adjustments to production and supply.」

「In terms of profitability, prices for various raw materials, including vinyl chloride resin and nylon yarn, the Group's key raw materials, as well as energy costs, remained elevated, while labor costs throughout the supply chain also rose, further intensifying cost pressures on business operations.」

「In terms of profit, although the company worked to reduce manufacturing costs and selling, general and administrative expenses, operating profit was ¥1,012 million, down 22.4% year on year; ordinary profit was ¥1,147 million, down 20.7%; and interim profit attributable to owners of the parent was ¥689 million, down 20.7%, as prices for various raw materials rose and personnel expenses resulting from base-pay increases and promotional expenses associated with major product launches and discontinuations increased.」

「Meanwhile, the outlook remains uncertain, as crude oil prices have resumed an upward trend due to the weaker yen and the prolonged situation in Ukraine.」

「Meanwhile, the outlook remains uncertain, as the prolonged depreciation of the yen and the extended situation in Ukraine have driven up raw material and energy costs, resulting in further inflation.」

「There were no newly arising business or other risks during the cumulative consolidated period for the third quarter. Nor were there any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「In terms of profit, various initiatives to reduce manufacturing costs and the effects of selling price revisions from May contributed to results, but with raw material prices remaining elevated, the improvement in profitability from passing on these increases through subsequent price revisions remained limited.」

「Although various initiatives to reduce manufacturing costs progressed, raw material prices continued to rise, and earnings improvement from subsequent price pass-through remained limited.」

「However, raw material prices have continued to rise, and we decided to implement the third sales price revision since last summer, effective 20 September.」

「In addition, the operating environment has become increasingly challenging due to soaring prices for various raw materials resulting from higher domestic naphtha prices, as well as concerns over supply caused by disruptions to global supply chains.」

「In addition, the operating environment has become increasingly challenging due to soaring prices for various raw materials resulting from higher crude oil and naphtha prices, as well as concerns over supply caused by disruptions to global supply chains.」

「In addition, soaring prices for key raw materials resulting from higher crude oil and naphtha prices created an extremely challenging operating environment in terms of profitability.」

「The business environment became extremely challenging on the earnings front due to surging prices for major raw materials amid higher crude oil and naphtha prices, as well as higher logistics costs resulting from labor shortages and other factors.」

「The Company sought to improve profit through the effects of R&D investment and flexible production planning in response to demand trends, but the earnings environment has remained challenging due to surging raw material prices since the second half of the fiscal year.」

「There were no newly arising business or other risks during the cumulative consolidated period for the third quarter. Nor were there any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「There were no newly arising business or other risks during the cumulative consolidated period for the second quarter. Nor were there any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「Although crude oil prices, which affect raw material prices, were weak, the earnings environment remained challenging due to higher logistics costs resulting from labor shortages, lower plant operating rates and other factors.」

「Most of the raw materials used in the products manufactured by the Group are petrochemical products, and procurement prices are closely related to crude oil market conditions and foreign exchange trends. If raw material prices rise due to surging crude oil prices resulting from changes in the supply-demand balance or geopolitical risks, foreign exchange fluctuations and other factors, the Group's operating results and financial position may be affected.」

「There were no newly arising business or other risks during the cumulative consolidated period for the third quarter. Nor were there any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「There were no newly arising business or other risks during the cumulative consolidated period for the second quarter. Nor were there any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「In the construction industry, which is closely related to the Group's businesses, current new housing starts continued to trend downward, and total demand for interior finishing materials lacked strength. In addition, rising prices of major raw materials and logistics costs affected the Group, resulting in a persistently difficult operating environment.」

「The operating environment remained challenging as higher crude oil and naphtha prices pushed up the prices of major raw materials, while logistics costs rose due to labor shortages.」

「The operating environment remained challenging as higher crude oil and naphtha prices pushed up the prices of major raw materials, while logistics costs rose due to labor shortages.」

「On the profit side, segment profit was ¥244 million, down 63.9% year on year, due to higher prices for major raw materials and surging logistics costs, among other factors.」

「The operating environment became challenging as major raw material prices, which had been surging since last spring, entered a further uptrend under the influence of higher crude oil and naphtha prices.」

「The operating environment became challenging as major raw material prices surged from early spring amid the rise in crude oil and naphtha prices since last autumn.」

「The operating environment also became challenging as major raw material prices rebounded amid the rise in crude oil and naphtha prices since last autumn.」

「Most of the raw materials used in the products manufactured by the Group are petrochemical products, and procurement prices are closely related to crude oil market conditions and foreign exchange trends. If raw material prices rise due to surging crude oil prices resulting from changes in the supply-demand balance or geopolitical risks, foreign exchange fluctuations and other factors, the Group's operating results and financial position may be affected.」

「There were no newly arising business or other risks during the cumulative consolidated period for the third quarter. Nor were there any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「There were no newly arising business or other risks during the cumulative consolidated period for the second quarter. Nor were there any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「There were no newly arising business or other risks during the cumulative consolidated period for the first quarter. Nor were there any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「If raw material prices rise due to factors including surging crude oil prices resulting from increased global demand and geopolitical risks, a weaker yen, and changes in the supply-demand balance, the Group's operating results and financial position may be affected, including through a decline in profit.」