Business and Financial Impact of the Spread of COVID-19

「During the first quarter of the current consolidated fiscal year, the Japanese economy saw inbound demand recover to approximately 90% of pre-COVID levels as COVID-19 was reclassified as a Class 5 disease. Further growth in inbound demand and an improvement in personal consumption are expected going forward.」

「The situation requiring close monitoring continues due to factors including the record depreciation of the yen, surging construction material prices and concerns over a renewed spread of COVID-19.」

「The spread of infectious diseases such as COVID-19, which is prevalent worldwide, could affect business activities, including through the closure of operating locations to ensure employee safety.」

「Meanwhile, there are risks from surging resource prices and concerns about global inflation, as well as the spread of COVID-19 variants, and the economic outlook remains uncertain.」

「However, capital investment varied considerably by industry, while the economic outlook remained uncertain amid concerns about the impact on financial markets of the spread of COVID-19 variants and a management crisis at a major Chinese property company.」

「Personal consumption remains sluggish due to the renewed spread of COVID-19 and the resulting declarations of a state of emergency, leaving the outlook uncertain. Economic normalization is expected as measures such as the widespread administration of vaccines take effect.」

「Our group has made the safety of employees, customers and business partners its top priority, discontinued group meetings, training sessions and business trips through the use of web conferences and other tools, and pursued changes in workstyles, including the promotion of working from home. We also monitor employees' health and take measures to prevent the spread of infection. However, further global spread of infection or the emergence of a more transmissible infectious disease could adversely affect the group's operating results and financial condition, including through a decline in sales resulting from stagnation in economic activity.」

「During the third quarter of the consolidated fiscal year under review, Japan's economy showed signs of improvement due to various economic recovery policies, but the outlook became uncertain as restrictions on economic activity were tightened amid the global resurgence of COVID-19.」

「However, the impact of COVID-19 is expected to continue, and we will continue to monitor the situation.」

「In the prefabricated unit housing industry, some construction projects were suspended or postponed as the COVID-19 pandemic spread, but conditions remained relatively firm, supported by the continued construction of redevelopment projects, particularly in the Tokyo metropolitan area. However, as the impact of COVID-19 continues for an extended period, the situation requires close monitoring going forward.」

「With COVID-19 spreading worldwide, our group has made the safety of employees, customers and business partners its top priority and, to prevent further spread of infection, has in principle prohibited group meetings, training sessions, business trips, social gatherings and similar events, implemented safety measures including the promotion of working from home, and worked to promote the use of web conferences and other tools that enable these measures. However, if the situation is prolonged, the group's operating results and financial condition could be adversely affected, including by a decline in sales resulting from stagnation in economic activity.」