Dependence on the Production, Supply and Management Strategies of Specific Customers, Including Nissan Motor

「In the automotive-related business, our group has entered into authorized dealership agreements with specific business partners, including NISSAN MOTOR CO.,LTD. The vehicles sold are produced and supplied by these business partners. Accordingly, operating results and other matters could be affected by the business strategies of specific business partners and by their production and supply conditions resulting from disasters and other events.」

「During the first half of the current consolidated fiscal period, there were no material changes in the occurrence of matters among those relating to the business and accounting conditions described in this interim report that could materially affect investors' decisions, or in the business and other risks described in the annual securities report for the previous fiscal year.」

「Although new-vehicle unit sales fell below the previous fiscal year, revenue was maintained at approximately the previous year's level because used-vehicle sales were strong. In terms of profit, operating profit exceeded the previous fiscal year as a result of efforts to reduce expenses.」

「The gradual resolution of vehicle supply shortages in new-vehicle sales increased unit sales and, together with higher average selling prices for new vehicles and steady performance in maintenance and other services, resulted in revenue and operating profit both exceeding the previous fiscal year.」

「Although used-vehicle selling prices declined and the company adjusted its inventory holdings, delays in vehicle deliveries due to the semiconductor shortage and other factors had improved from before, and new-vehicle registrations and sales progressed steadily.」

「Although delays in vehicle deliveries due to the global semiconductor shortage and other factors continued and used-vehicle selling prices declined, average selling prices for new vehicles rose due to increased electric vehicle sales, and revenue exceeded the same period of the previous year. In addition, maintenance and other services performed steadily, resulting in operating profit exceeding the same period of the previous year.」

「Although delays in vehicle deliveries due to the global semiconductor shortage and other factors continued to have an impact, new-vehicle sales exceeded the same period of the previous year following the launch of new models.」

「Although the company was affected by delays in vehicle deliveries due to the global semiconductor shortage, orders for new vehicles accumulated steadily following the introduction of new models by manufacturers.」

「Delays in new-vehicle supply from manufacturers have continued due to the global semiconductor shortage. In addition, the possibility of defective parts arose, and an investigation into the cause took time. As a result, orders and registrations for certain models were suspended for more than 2 months, affecting new-vehicle revenue.」

「Orders for new vehicles have been growing following the launch of key new models, but supply delays from manufacturers due to the global semiconductor shortage have continued, and the situation has persisted in which this has not been fully reflected in revenue. In tandem, shortages of used-vehicle inventory and other issues have become more serious.」

「The automotive-related business operated in a difficult environment, including continued delays in new-vehicle deliveries and supply constraints due to the global semiconductor shortage.」

「During the cumulative second-quarter consolidated period, there were no significant changes in the matters described in the quarterly report concerning business conditions and financial information that could materially affect investors’ decisions, or in the business risks described in the securities report for the previous fiscal year.」

「During the first quarter of the current consolidated cumulative period, there were no occurrences of matters that could materially affect investors’ investment decisions among the matters relating to the business and financial position described in this quarterly report, nor were there any material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」

「Although some rush demand was seen ahead of the consumption tax increase, the situation became difficult due to the impact of the subsequent decline in demand after the tax increase, as well as generally sluggish new-vehicle unit sales.」

「Although some rush demand was seen ahead of the consumption tax increase, the overall situation was difficult, with new-vehicle unit sales remaining sluggish. However, revenue and operating profit exceeded the same period of the previous year because the operating results of Kitami Mitsubishi Motor Sales Co., Ltd. were reflected from the first quarter of the current fiscal year.」

「Although unit sales remained sluggish due to the continuing impact of the failure to dispel the decline in brand image caused by manufacturers' misconduct, revenue exceeded the same period of the previous year because the operating results of Kitami Mitsubishi Motor Sales Co., Ltd. were reflected from the first quarter of the current fiscal year.」

「Although concerns arose over the impact of declining brand image due to manufacturers' final inspection issues and other factors, revenue exceeded the same period of the previous year as the company pursued an active business expansion, including relocating and reopening its Monbetsu store in Monbetsu, Hokkaido, in October 2018.」

「During the cumulative second quarter of the current consolidated fiscal year, concerns arose about the impact of a decline in brand image resulting from manufacturers' final inspection problems and other issues. However, net sales exceeded the year-earlier period, partly because electric vehicle sales were strong.」

「No new business or other risks arose during the first quarter of the current consolidated cumulative period. There were also no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「In the automobile-related business, sales of certain vehicle models were suspended for a period, but net sales exceeded the year-earlier period due to an increase in new-vehicle sales, particularly of mini vehicles. However, profit fell below the year-earlier period due to higher operating expenses.」

「During the first six months 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 and other risks described in the annual securities report for the previous fiscal year.」

「No new business or other risks arose during the first quarter of the current consolidated cumulative period. There were also no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「In the automobile-related business, sales of certain vehicle models were suspended for a period, but net sales were roughly unchanged from the previous year due in part to the launch of new models. In terms of profit, operating income exceeded the previous year due in part to reductions in operating expenses.」

「In the automobile-related business, net sales and operating income both fell below the previous year due in part to periods during which sales of certain vehicle models were suspended. As a result, net sales were ¥3,723 million, down 5.9%, and operating income was ¥4 million, down 85.4%.」

「In the automobile-related business, net sales fell below the previous year due in part to the suspension of sales of certain vehicle models, although」

「The automobile-related business has entered into authorized dealer agreements with specific customers, including NISSAN MOTOR CO.,LTD. The automobiles it sells are produced and supplied by these specific customers.」