Spread of COVID-19 and other infectious diseases

「During the interim consolidated accounting period, there were no material changes in the occurrence of major risks that management recognizes as potentially having a material impact on the financial position, operating results or cash flows of the consolidated companies, among the matters relating to the business conditions, financial position and other matters described in this interim report, or in the "Business and Other Risks" described in the annual securities report for the previous fiscal year.」

「During the interim consolidated accounting period, there were no material changes in the occurrence of major risks that management recognizes as potentially having a material impact on the financial position, operating results or cash flows of the consolidated companies, among the matters relating to the business conditions, financial position and other matters described in this interim report, or in the "Business and Other Risks" described in the annual securities report for the previous fiscal year.」

「Since May 2023, when COVID-19 was reclassified as a Class 5 disease under the Infectious Diseases Control Act, the Group has followed the measures required under the Act and recommended by the national government in handling infections. For day-to-day infection prevention, the Group continues to implement measures, such as hand disinfection, based on their effectiveness in mitigating restrictions while respecting individuals' judgment. The Group has also formulated a Business Continuity Plan for Measures Against Novel Influenza and Other Diseases and is working to minimize the risk of business interruptions by implementing measures based on the plan.」

「During the cumulative third quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that management recognizes could materially affect the financial position, operating results and cash flows of the consolidated companies, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」

「During the cumulative second quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that management recognizes could materially affect the financial position, operating results and cash flows of the consolidated companies, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」

「The Group's business environment during the current consolidated fiscal year was characterized by the spread of COVID-19 during the first half, followed by signs of a recovery in social and economic activity during the second half.」

「Residential gas sales volume decreased by 1.0% from the first nine months of the previous consolidated fiscal year, due to lower heating demand as temperatures remained high in early spring and early winter. Commercial sales volume increased by 3.5%, as the impact of COVID-19 eased, particularly in hotel-related and restaurant businesses.」

「Gas sales increased 1.6% from the first six months of the previous fiscal year to 225 million m³. Household sales declined as temperatures remained relatively high in early spring, while commercial sales increased as economic activity recovered and commercial demand, including demand from hotels, recovered.」

「Gas sales increased 0.3% overall from the first three months of the previous fiscal year to 130 million m³. Household sales declined as temperatures remained relatively high in early spring, while commercial sales increased, particularly in the hotel and food-service sectors, as the impact of the COVID-19 pandemic eased.」

「Although the COVID-19 pandemic continued during the current consolidated fiscal year, its impact on sales volume eased from the previous consolidated fiscal year as utilization rates improved, particularly in the commercial sector. For the following consolidated fiscal year, social and economic activity is gradually returning as vaccination progresses. Although some impact is expected to remain in parts of the commercial sector, the overall impact of COVID-19 on sales volume is expected to be almost negligible compared with before the pandemic, due to factors including staying at home and more frequent ventilation.」

「Residential gas sales volume increased by 0.8% from the first nine months of the previous consolidated fiscal year, mainly due to an increase in the number of installed meters. Commercial sales volume increased by 5.1%, as the impact of the COVID-19 pandemic on sales volume eased and air-conditioning utilization improved.」

「Residential gas sales volume increased by 2.2% from the first six months of the previous consolidated fiscal year, mainly due to an increase in the number of installed meters. Commercial sales volume increased by 9.7%, as the impact of the COVID-19 pandemic on sales volume eased and air-conditioning utilization improved.」

「Residential gas sales volume increased by 4.6% from the first quarter of the previous consolidated fiscal year, mainly due to an increase in the number of installed meters. Commercial sales volume increased by 14.7%, as the impact of the COVID-19 pandemic on sales volume was smaller than in the first quarter of the previous consolidated fiscal year.」

「City gas sales volume was affected by the COVID-19 pandemic. Residential sales volume increased by 8.9% year on year to 219 million m³, due to more time spent at home as people refrained from going out, temperature-related factors and other considerations. Commercial sales volume decreased by 4.8% year on year to 364 million m³, as sales volumes at restaurants, hotels and other businesses declined due to requests to refrain from operating, fewer tourists and other factors.」

「Gas sales volume was affected by the COVID-19 pandemic. Residential sales volume increased by 6.5% from the first nine months of the previous consolidated fiscal year, due to working from home, increased demand for home cooking and other factors. Commercial sales volume decreased by 9.8%, as sales volumes at restaurants, hotels and other businesses declined due to requests to refrain from operating, fewer tourists and other factors.」

「Gas sales volume was affected by the COVID-19 pandemic. Residential sales volume increased by 11.3% from the first six months of the previous consolidated fiscal year, due to working from home, increased demand for home cooking and other factors. Commercial sales volume decreased by 14.0%, as sales volumes at restaurants, hotels and other businesses declined due to requests to refrain from operating, fewer tourists and other factors.」

「Gas sales volume was affected by the COVID-19 pandemic. Residential sales volume increased by 12.0% from the first quarter of the previous consolidated fiscal year, due to working from home, increased demand for home cooking and other factors. Commercial sales volume decreased by 17.6%, as sales volumes at restaurants, hotels and other businesses declined due to requests to refrain from operating, fewer tourists and other factors.」

「Impact of the spread of infectious diseases, including COVID-19 and novel influenza: If infections spread among employees of the Group, operations could be temporarily suspended, potentially affecting business activities and performance.」