Risks of Intensifying Competition, Raw Material Price and Foreign Exchange Fluctuations, and Delays in Launching New Products

「Business operations were conducted amid various challenges, including the continued rise in raw material and energy prices and soaring prices for petrochemical-related raw materials associated with worsening conditions in the Middle East, which put pressure on profits from product sales.」

「Operating profit was ¥128 million, down 8.5% year on year, owing to the impact of higher energy costs and raw material prices, among other factors.」

「Operating profit was ¥128 million, down 8.5% year on year, owing to the impact of higher energy costs and raw material prices, among other factors.」

「During the interim consolidated accounting period, net sales exceeded the level in the same period of the previous year, despite a decline in demand from the paper manufacturing industry, as sales of products for the automotive parts industry remained strong and orders for products for the mobile market began to recover. However, profits at every stage were below the levels recorded in the same period of the previous year, due to the impact of higher raw material prices and energy costs, among other factors.」

「Overseas, despite temporary volatility, the yen remained on a weakening trend as policy rates in major Western countries remained high. In addition, due to the substantial rise in energy and resource prices resulting from the prolonged conflict arising from Russia's invasion of Ukraine, the situation in the Middle East, the downturn in China's real estate market, and other factors, the Group expects its operating environment to remain uncertain.」

「During the first 9 months of the current consolidated fiscal year, Japan's economy began to show signs of recovery as the economy normalized after the COVID-19 pandemic, the employment and income environment improved, and various policies took effect. However, the Group expects its operating environment to remain uncertain due to geopolitical risks including the prolonged situation in Ukraine, prolonged monetary tightening in Europe and the United States, the downturn in China's real estate market, persistently high material procurement costs and electricity and gas charges caused by the significant increase in resource prices, rising prices resulting from the weaker yen, and other factors.」

「During the first 6 months of the current consolidated fiscal year, Japan's economy shifted toward a gradual recovery as economic activity normalized with the easing of restrictions on movement related to COVID-19. However, due to geopolitical risks including the prolonged situation in Ukraine, prolonged monetary tightening in Europe and the United States, the downturn in China's real estate market, and the sharp rise in material procurement costs and electricity and gas charges resulting from the significant increase in resource prices, the Group expects its operating environment to remain uncertain.」

「During the first 3 months of the current consolidated fiscal year, Japan's economy shifted toward a gradual recovery as economic activity normalized with the easing of restrictions on movement related to COVID-19. However, due to geopolitical risks including the prolonged situation in Ukraine and the sharp rise in material procurement costs and electricity and gas charges resulting from the significant increase in resource prices, the Group expects its operating environment to remain uncertain.」

「During the first 9 months of the current consolidated fiscal year, Japan's economy showed signs of a gradual recovery in some industries as efforts to contain infections were balanced with economic activity, nationwide travel assistance and the resumption of inbound tourism. However, the global economy and business environment became chaotic, and corporate performance remained extremely challenging due to repeated increases in material procurement costs caused by surging crude oil prices, sharp increases in electricity and gas charges, China's economic slowdown, Russia's invasion of Ukraine, and other factors.」

「During the first 6 months of the current consolidated fiscal year, Japan's economy showed signs of a gradual recovery in some industries due to market trends anticipating the post-COVID period. However, the global economy and business environment became chaotic, and corporate performance remained extremely challenging due to the ongoing unpredictable effects of COVID-19, tight semiconductor supply and demand accompanying digitalization and the spread of high-speed 5G communications, repeated sharp increases in material procurement costs caused by surging crude oil prices, sharp increases in factory electricity and gas prices, electricity restrictions in China and the effects of lockdowns under its zero-COVID policy, as well as the global semiconductor shortage and Russia's invasion of Ukraine.」

「During the first 3 months of the current consolidated fiscal year, Japan's economy showed signs of a gradual recovery in some industries due to market trends anticipating the post-COVID period. However, the global economy and business environment became chaotic, and corporate performance remained extremely challenging due to the ongoing unpredictable effects of COVID-19, tight semiconductor supply and demand accompanying digitalization and the spread of high-speed 5G communications, the sharp rise in material procurement costs caused by surging crude oil prices, delays in container ship operations, electricity restrictions in China and the effects of lockdowns under its zero-COVID policy, as well as the global semiconductor shortage and Russia's invasion of Ukraine.」

「During the first 9 months of the current consolidated fiscal year, Japan's economy remained extremely challenging as the global economy and business environment became chaotic due to the ongoing unpredictable effects of COVID-19, tight semiconductor supply and demand accompanying digitalization and the spread of high-speed 5G communications, the sharp rise in material procurement costs caused by surging crude oil prices, delays in container ship operations, electricity restrictions in China, and other factors.」

「During the first 6 months of the current consolidated fiscal year, Japan's economy showed signs of a gradual recovery in some industries due to market trends anticipating the post-COVID period. However, the global economy and business environment became chaotic, and corporate performance remained extremely challenging due to the ongoing unpredictable effects of COVID-19, tight semiconductor supply and demand accompanying digitalization and the spread of high-speed 5G communications, the sharp rise in material procurement costs caused by surging crude oil prices, delays in container ship operations, and other factors.」

「The global economy and business environment became chaotic due to the sharp rise in material procurement costs caused by surging crude oil prices, among other factors, and corporate performance has remained extremely challenging.」

「The company focused on paperboard-related products such as corrugated cardboard and applications outside the paper industry, and worked to develop new sales of multifunctional coagulants, contributing to sales of some products. However, amid severe competition with competitors and the effects of the spread of COVID-19, revenue declined 12.9%.」

「Although the company promoted sales activities focused on strong paperboard-related products such as corrugated cardboard and applications outside the paper industry and converted these efforts into results, revenue declined 14.5% amid severe competition with competitors and the effects of the spread of COVID-19.」

「Although the company has focused its sales activities on paperboard-related products such as corrugated cardboard and applications in markets outside the paper industry, revenue declined 16.0% amid severe competition with competitors and the effects of the spread of COVID-19.」

「Amid intense competition with other companies, sales of the company's products increased, particularly sales of papermaking chemicals with improved quality and functionality.」

「Amid intense competition with other companies, sales of industrial disinfectants declined, but sales of papermaking chemicals increased 9.2% as the launch of products with improved quality and functionality led to new adoptions.」

「Although sales of industrial biocides declined amid intense competition with competitors, the launch of products with improved quality and functionality contributed to higher sales of other paper-making chemicals products, resulting in a 12.3% increase in revenue.」

「In the third quarter, local procurement prices for major imported products rose sharply due to adverse weather conditions and other factors, substantially increasing import costs and pushing up transaction prices. Although this resulted in higher revenue, the pass-through to domestic selling prices remained below expectations, leaving profits under continued pressure. As a result, revenue for the business as a whole was ¥1.07 billion, up 36.0% year on year, while operating profit was ¥78 million, down 12.6% year on year.」

「In the second quarter, local procurement prices for major imported products rose sharply due to adverse weather conditions and other factors, substantially increasing import costs and pushing up transaction prices. Although this resulted in higher revenue, the pass-through to domestic selling prices did not progress as expected, creating a challenging profit environment. As a result, revenue for the business as a whole was ¥630 million, up 35.1% year on year, while operating profit was ¥46 million, down 28.1% year on year.」

「In the first quarter, local procurement prices for major imported products rose sharply due to adverse weather conditions and other factors, substantially increasing import costs and pushing up transaction prices. Although this resulted in higher revenue, the pass-through to domestic selling prices did not progress as expected, creating a challenging profit environment.」

「The increase in selling prices has not kept pace with higher import procurement costs resulting from the weaker yen and adverse weather conditions at the source, resulting in operating profit of ¥89 million, down 23.5% year on year.」

「The company has been working diligently to expand sales of differentiated products and develop new applications and markets, mainly in the paper industry, its primary customer base. However, amid severe competition with competitors, sales of related product groups were mixed, with some strong and some weak.」

「The company has been working diligently to expand sales of differentiated products and develop new applications and markets, mainly in the paper industry, its primary customer base. However, amid fierce competition with competitors, sales of related product groups were mixed, with some strong and some weak.」

「In addition, particularly in the electronics and automotive industries, customers' values are becoming more diverse, needs for related products and services are becoming more complex and sophisticated, and the pace of change is accelerating further. As a result, the business environment has become increasingly challenging, with competition among competitors growing ever more intense.」

「As these factors continued to affect the Group's sales activities in the relevant industry, competition with competitors grew increasingly intense, resulting in broadly sluggish sales of related products.」

「Sales of high-performance resin products also declined, as sales of related products for the automotive parts industry were affected by sluggish domestic automobile production and deteriorating conditions in overseas markets due in part to the appreciation of the yen.」

「As a result of these factors, competition with competitors in the Group's sales activities remains intense, and sales of related products stagnated under their influence.」

「In addition to intensifying competition with competitors on quality and prices, if the purchase prices of raw materials for the Group rise due to fluctuations in international crude oil market prices or exchange rates, if the technology development division is unable to launch new products in a timely manner in response to customer requirements and market trends as a result of its research and development, or if products develop defects, the Group's business performance and financial position may be adversely affected by lower sales volumes, lower selling prices and higher manufacturing costs.」