Risk of fluctuations in crude oil prices

「米国の通商政策や中東・ウクライナ情勢など不安定な国際情勢を背景としたエネルギー価格の高騰や物価上昇の影響により、先行きは依然として不透明な状況が続いております。」

「The business environment surrounding our group is expected to remain challenging, due to factors including declining demand for mobility in regional areas resulting from population decline and the declining birthrate and aging population, soaring fuel costs and higher vehicle maintenance costs against a backdrop of geopolitical risks, and severe labor shortages, particularly of drivers.」

「During the interim consolidated accounting period, Japan's economy entered a gradual recovery phase, supported by an increase in personal consumption accompanying improvements in employment and income conditions, as well as increased inbound demand. However, the outlook remains uncertain due to rising prices resulting from factors including soaring energy prices caused by the situation in the Middle East, as well as labor shortages.」

「Buses rely heavily on crude oil as their energy source, and movements in crude oil prices affect our results. Even if we transition to electric buses in the future, electricity prices are largely dependent on crude oil prices and are expected to continue affecting results. We estimate that a ¥1 change in the purchase price would affect operating income by approximately ¥20 million annually.」

「However, the outlook remains uncertain, including because energy prices are trending higher amid an unstable international situation and because of developments in domestic monetary policy.」

「However, the cost of fuel, which is indispensable particularly to the bus business, is rising due to soaring crude oil prices and the depreciation of the yen against foreign currencies, among other factors.」

「In the contract management segment, although requests were made to shorten operating hours and suspend operations, the suspension period was shorter than in the same period of the previous year, and the number of users of accommodation facilities, campgrounds and restaurants increased after the state of emergency was lifted. As a result, revenue increased by ¥90 million, or 3.9%, year on year to ¥2,392 million, while operating income decreased by ¥10 million, or 6.9%, to ¥145 million due to the impact of soaring fuel costs and other factors.」

「We estimate that a ¥1 change in the purchase price would affect operating income by approximately ¥20 million annually. To hedge the risk of price fluctuations in diesel procurement, our group is considering introducing crude oil swap transactions.」

「Although personnel costs related to business expansion and securing drivers increased, operating results improved by ¥48 million, or 6.7%, compared with the same period of the previous year due to lower fuel unit prices, among other factors, resulting in an operating loss of ¥670 million.」

「The outlook remains uncertain due to factors including a decline in South Korean tourists visiting Japan resulting from worsening Japan–South Korea relations and soaring crude oil prices.」

「Our business areas are also progressing steadily, supported by improvements in the employment environment and an increase in visitors to Japan. However, the outlook remains uncertain due to factors including a decline in South Korean tourists visiting Japan resulting from worsening Japan–South Korea relations and trends in crude oil prices.」

「As a result, revenue increased by ¥407 million, or 2.0%, year on year to ¥20,754 million, while operating income decreased by ¥254 million, or 39.1%, to ¥397 million due to higher expenses associated with business expansion, higher personnel costs to secure drivers, and soaring fuel prices, among other factors.」

「As a result, revenue increased by ¥307 million, or 2.2%, year on year to ¥14,606 million, while operating results deteriorated by ¥284 million compared with the same period of the previous year due to higher personnel and fuel costs, among other factors, resulting in an operating loss of ¥719 million.」

「As a result, revenue increased by ¥38 million, or 0.4%, year on year to ¥9,487 million, while operating results deteriorated by ¥247 million compared with the same period of the previous year due to higher depreciation and fuel costs, among other factors, resulting in an operating loss of ¥503 million.」

「As a result, revenue increased by ¥83 million, or 1.8%, year on year to ¥4,778 million, while operating results deteriorated by ¥104 million compared with the same period of the previous year due to higher personnel and fuel costs, among other factors, resulting in an operating loss of ¥291 million.」

「In the shared-route bus segment, revenue from regular-route buses increased due to stronger access to commercial facilities along the routes, increased services on routes originating in Sannomiya, and higher use of commuter passes and IC cards resulting from increased commuting demand. Revenue from highway buses also increased, as the Akashi City/Kobe Nishi Ward–Sannomiya route and the Kansai International Airport limousine route performed well. The taxi segment saw lower revenue due to a decline in its operating rate caused by a shortage of drivers. As a result, revenue increased by ¥223 million, or 1.1%, year on year to ¥20,346 million, while operating income decreased by ¥269 million, or 29.3%, to ¥651 million due to higher personnel and fuel costs, among other factors.」

「As a result, revenue increased by ¥126 million, or 0.9%, year on year to ¥14,298 million, while operating income declined by ¥232 million from the same period of the previous year because of higher labor and fuel costs and other factors, resulting in an operating loss of ¥434 million.」

「The taxi business recorded lower revenue because of a decline in its operating rate caused by a shortage of drivers. As a result, revenue increased by ¥151 million, or 1.6%, year on year to ¥9,448 million, while operating income declined by ¥85 million from the same period of the previous year because of higher labor and fuel costs and other factors, resulting in an operating loss of ¥255 million.」

「As a result, revenue increased by ¥2 million, or 0.1%, year on year to ¥4,695 million, while operating income declined by ¥89 million from the same period of the previous year because of higher fuel costs and other factors, resulting in an operating loss of ¥187 million.」

「The company relies heavily on crude oil as the fuel for its buses, and price trends affect its business performance.」

「During the cumulative third quarter of the current consolidated fiscal year, there were no newly arising business or other risks. In addition, there were no material changes to the business or other risks described in the securities report for the previous fiscal year.」

「During the cumulative second quarter of the current consolidated fiscal year, there were no newly arising business or other risks. In addition, there were no material changes to the business or other risks described in the securities report for the previous fiscal year.」

「During the first quarter of the current consolidated fiscal year, there were no newly arising business or other risks. In addition, there were no material changes to the business or other risks described in the securities report for the previous fiscal year.」

「The company relies heavily on crude oil as the fuel for its buses, and price trends affect its business performance.」