Higher cost ratio due to difficulty obtaining materials and rising raw material prices
First written in FY2022. 3 of 12 entries say "Materialised", first in FY2023-Q1. Latest entry: FY2027-H1.
Tokai Lease moved to the "Worse" side of this theme in 2022, 1 year after the typical company in this theme (2021).
The whole theme swung hardest in 2021: 43 of 72 companies on the "Worse" side.
27 other companies' latest entry also says "Worsened".
- FY2027-H1WorsenedAnnual report
「The outlook is uncertain due to soaring crude oil prices associated with heightened tensions in the Middle East, concerns about procuring crude oil-derived products, prolonged inflation in Japan and chronic labor shortages.」
In addition to the previous concerns about inflation and persistently high raw material prices, the company explicitly identifies soaring crude oil prices and concerns about procuring crude oil-derived products as raw material and procurement risks. - FY2025ReframedAnnual report
「The temporary buildings and unit houses handled by the company are leasing products, and a certain level of inventory is constantly held at factories and distribution centers nationwide. Accordingly, even if the availability of steel frames, steel sheets, urethane and other principal raw materials temporarily becomes difficult or purchase prices temporarily surge, this will not immediately affect the group’s business performance. However, if the situation continues for an extended period, it may affect the group’s business performance and financial condition.」
The company has returned to a specific risk description covering difficulty procuring and surging prices of steel frames, steel sheets, urethane and other materials, stating that nationwide inventories will limit the short-term impact while acknowledging the impact if the situation persists, rather than expressing only general concerns about raw material prices and inflation. - FY2025-H1SoftenedAnnual report
「The outlook is uncertain, with concerns including sluggish personal consumption due to prolonged inflation and labor shortages.」
Although references to inflation have continued, the company now focuses on sluggish personal consumption and labor shortages rather than the direct impact on resource prices and raw material procurement described in the previous fiscal year. - FY2024ReframedAnnual report
「Even if the availability of steel frames, steel sheets, urethane and other principal raw materials temporarily becomes difficult or purchase prices temporarily surge, this will not immediately affect the group’s business performance. However, if the situation continues for an extended period, it may affect the group’s business performance and financial condition.」
The description of raw material price risk has shifted to a structure that states that short-term effects are limited because a certain level of inventory is held at factories and distribution centers nationwide, while explicitly describing the impact if difficulty obtaining materials and price surges persist over the long term. - FY2024-Q3RestatedAnnual report
「During the first nine months of the consolidated fiscal year, economic activity in Japan was gradually normalizing after the COVID-19 pandemic, and personal consumption continued to recover moderately. However, the outlook remained uncertain, with energy and raw material prices remaining elevated and concerns about stagnation in personal consumption due to continued inflation.」
The company continues to identify persistently high energy and raw material prices and ongoing inflation as concerns in the business environment. - FY2024-Q2RestatedAnnual report
「The outlook is uncertain, with energy and raw material prices remaining high and concerns that continued inflation will cause personal consumption to stagnate.」
The company continues to identify persistently high energy and raw material prices and ongoing inflation as concerns relating to costs and the business environment. - FY2023MaterialisedAnnual report
「The business environment surrounding the group includes concerns about persistently high costs for outsourced construction and other items. The group is working to reduce the impact on its business performance by further improving the quality of temporary buildings and controlling costs.」
Persistently high costs for outsourced construction and other items remained a concern for current-year business performance, while lower contract prices, higher costs and a 2.4-point increase in the cost ratio actually occurred. - FY2023-Q3MaterialisedAnnual report
「During the first nine months of the consolidated fiscal year, Japan's economy saw raw material costs increase alongside rising resource prices and the yen's depreciation. Overseas, the outlook remained uncertain due to factors including heightened tensions surrounding Ukraine.」
The company stated that higher raw material costs due to rising resource prices and the weaker yen actually occurred. - FY2023-Q1MaterialisedAnnual report
「Raw material costs increased as resource prices rose, costs including raw materials increased, and costs for outsourced construction and other items increased.」
The company stated that higher raw material costs and costs for outsourced construction and other items resulting from rising resource prices actually occurred during the quarter and squeezed profit. - FY2022First statedAnnual report
「Regarding the outlook for the next fiscal year, higher costs due to difficulty obtaining materials are a concern, while the cost ratio increased by 1.5% from the previous consolidated fiscal year as costs, including raw materials, rose.」
The company identified difficulty obtaining materials and higher costs separately as concerns for the next fiscal year for the first time, and explained that costs, including raw materials, actually rose during the current fiscal year, resulting in a 1.5% increase in the cost ratio.