Risk of economic stagnation and supply chain disruption caused by COVID-19

「During the interim consolidated accounting period, there were no new business or other risks, nor any significant changes to the business or other risks described in the annual securities report for the previous fiscal year.」

「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 nine months ended 31 December 2020, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year. The impact of the spread of COVID-19 during the nine months ended 31 December 2020 is described in “2. Analysis of Financial Position, Operating Results and Cash Flows by Management, (1) Explanation of Operating Results”; however, depending on future developments, it may affect the financial position and operating results of our group.」

「During the six months ended 30 September 2020, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year. The impact of the spread of COVID-19 during the six months ended 30 September 2020 is described in “2. Analysis of Financial Position, Operating Results and Cash Flows by Management, (1) Explanation of Operating Results”; however, depending on future developments, it may affect the financial position and operating results of our group.」

「During the three months ended 30 June 2020, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year. The impact of COVID-19 during the three months ended 30 June 2020 is described in “2. Analysis of Financial Position, Operating Results and Cash Flows by Management, (1) Explanation of Operating Results”; however, depending on future developments, it may affect the financial position and operating results of our group.」

「During the nine months ended 31 December 2020, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year. The impact of the spread of COVID-19 during the nine months ended 31 December 2020 may affect the financial position and operating results of our group, depending on future developments.」

「Meanwhile, overseas economies, particularly those of the United States and China, began to recover, but economic activity stagnated in Southeast Asian countries including Indonesia and Vietnam because of the renewed spread of COVID-19. Supply chain disruptions, including shortages of parts and materials, have also continued because of factors such as power shortages in China and restrictions on factory operations in Southeast Asia.」

「During the three months ended 30 June 2020, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year. The impact of COVID-19 during the three months ended 30 June 2020 is described in “2. Analysis of Financial Position, Operating Results and Cash Flows by Management, (1) Explanation of Operating Results”; however, depending on future developments, it may affect the financial position and operating results of our group.」

「However, as infections began to spread again from the third quarter onward, uncertainty over the economic outlook increased and conditions remained challenging.」

「During the six months ended 30 September 2020 (1 April 2020 to 30 September 2020), Japan's economy saw the lifting of the state of emergency declared in response to COVID-19 and a gradual resumption of economic activity, but conditions remained such that an economic recovery could not yet be foreseen. Overseas, economic activity was also restricted by the impact of COVID-19, and the order environment remained challenging.」

「The spread of COVID-19 has affected our group, including through lower revenue resulting from fewer orders. However, in accounting estimates such as impairment accounting for fixed assets and the recoverability of deferred tax assets, we have determined that COVID-19 has had no impact. Our forecast for the current consolidated fiscal year was prepared on the assumption that the spread of infection would not become more serious than at present and would gradually subside. If the effects of COVID-19 are prolonged or worsen and disrupt our group’s business activities, they may affect the consolidated financial statements for the following quarter and thereafter.」

「With no end to the COVID-19 pandemic in sight, uncertainty over the outlook for both the domestic and global economies has intensified further, and difficult economic conditions are expected to continue. Measures to prevent the spread of infection, including requests to refrain from going out and travel restrictions in various countries, have constrained consumer and business activity, significantly suppressing economic activity on both the demand and supply sides through supply chain disruptions and other effects. There are also concerns that the economic downturn may be prolonged.」