Impact of COVID-19 on business activities and performance

「In addition to cases in which the group’s business activities become impossible due to a major earthquake or other natural disaster, sudden accident or other event, sales and procurement of planned machinery and equipment may be disrupted if customers or suppliers suffer substantial damage to production facilities or other assets, or if infrastructure problems occur. If the group’s overall activities are disrupted by an outbreak of an infectious disease or other event, this may have a material impact on the group’s operating results.」

「During the fiscal year, net sales recovered sharply as sales activities were ramped up in earnest in the post-COVID period.」

「During the nine-month period, net sales recovered as sales activities were ramped up in earnest in the post-COVID period.」

「Under these circumstances, the corporate group is working to return its business activities to pre-COVID levels and pursue its targets while taking the safety and health of everyone involved in its business dealings into consideration.」

「Under these circumstances, the corporate group has expanded its business activities while making the safety and health of everyone involved in its business dealings its top priority and working to prevent the spread of COVID-19. During the current period, sales activities gradually returned to pre-COVID levels, and we sought to expand performance while making every effort to address the impact of recent shortages of purchased merchandise, delivery delays and merchandise price increases. The corporate group’s performance for the nine-month period was strong, with net sales of ¥78,634 million, a substantial increase to 118.4% of the previous-year period.」

「As a result, sales activities are gradually returning to pre-COVID levels, and we continue to expand performance while responding flexibly to recent shortages of purchased merchandise, delivery delays and the impact of price increases for merchandise.」

「Under these circumstances, the corporate group has been expanding its business activities while making the safety and health of everyone involved in its business dealings its top priority and working to prevent the spread of COVID-19. Although sales activities remain subject to some restrictions, they are gradually returning to pre-COVID levels.」

「The global impact of COVID-19 continued, compounded at the end of the fiscal year by Russia’s invasion of Ukraine. This had a major impact on the societies and economies of various countries, including semiconductor and energy shortages, logistics disruptions and soaring raw-material prices.」

「The group's operating results for the cumulative third quarter of the current fiscal year benefited from receiving an order for polarizing film production equipment in China and generally more active group-wide order-taking activities. Revenue was ¥66,397 million, a slight increase to 102.1% of the year-earlier period, indicating a recovery trend.」

「The corporate group’s performance for the six-month period was affected in part by an order for polarizer production equipment in China, and order intake increased substantially from the same period of the previous year. Net sales amounted to ¥44,337 million, a slight increase to 101.4% of the previous-year period, indicating a recovery trend.」

「The group's operating results for the cumulative first quarter of the current fiscal year benefited from sales activities gradually becoming more active, mainly in Japan, despite continued restrictions to prevent the spread of infection. Revenue increased to ¥21,036 million, or 109.4% of the year-earlier period.」

「To prevent the spread of infection, we had no choice but to continue restricting and voluntarily suspending direct visits to customers by the sales divisions. Although we conducted sales activities using alternative measures such as teleworking, corporate investment sentiment did not recover. In addition, delivery of the large-volume LCD-related manufacturing equipment recorded in the same period of the previous year was largely completed, leaving only a small amount in the current period. As a result, net sales fell sharply to ¥65,004 million, or 81.6% of the previous-year period. In terms of earnings, despite implementing thorough expense reductions, we were unable to offset the decline in gross profit, resulting in operating income of ¥2,326 million, or 53.2% of the previous-year period, ordinary income of ¥2,798 million, or 59.6%, and net income attributable to owners of the parent of ¥1,885 million, or 60.1%, all representing substantial declines.」

「Regarding the operating results of the Group for the cumulative second quarter consolidated period, direct visits to companies by the sales division had to be restricted and voluntarily curtailed to prevent the spread of infection. Although sales activities were conducted using alternative measures such as teleworking, companies' appetite for capital investment had not recovered. In addition, delivery of the large liquid-crystal display-related manufacturing equipment recorded in the year-earlier period was largely completed. As a result, net sales fell substantially to ¥43,716 million, or 76.4% of the year-earlier period. In terms of earnings, despite thorough cost reductions, the decline in gross profit could not be fully offset, and operating income fell substantially to ¥1,567 million (50.9% of the year-earlier period), ordinary income to ¥1,855 million (56.5%), and profit attributable to owners of the parent to ¥1,255 million (57.9%).」

「In addition to restricting and refraining from direct customer visits by the sales division to prevent the spread of infection, revenue from large liquid-crystal display manufacturing equipment recorded in the year-earlier period amounted to only a small amount in the current period. As a result, revenue fell sharply to ¥19,230 million, or 73.2% of the year-earlier period.」