Impact of Major Disasters on Operations, Supply Chains and Customer Production

「Manufacturing and sales of soundproofing materials for home appliances remained sluggish due to inventory adjustments and other factors, although the impact of the Shanghai lockdown experienced in the previous fiscal year had ended.」

「Although sales at overseas subsidiaries increased due to the weaker yen, production at factories was suspended for an extended period as a result of the Shanghai lockdown.」

「The disruption to supply chains caused by the Shanghai lockdown, among other factors, further heightened uncertainty about the outlook.」

「If a large-scale disaster exceeding expectations, such as the Great East Japan Earthquake that occurred in March 2011, or an infectious disease such as the novel coronavirus that emerged in 2020 occurs, business activities may be restricted, and the Group may be directly or indirectly affected by supply-chain conditions, electricity shortages, lockdowns and production adjustments by major users. In addition, a decline in consumption trends resulting from disasters or other events could adversely affect the Group's operating results and financial condition.」

「Regarding the impact of coronavirus disease (hereinafter, the infection), the Group is continuing its business activities after implementing measures to prevent employee infections.」

「The Group as a whole was significantly affected by the spread of coronavirus disease, resulting in a substantial decline in revenue due to production stoppages and delays in the launch of new vehicles in the automotive and electrical and electronic components industries, which are major customers.」

「The infection also had a significant impact on operating results during the nine-month period of the third quarter of the current fiscal year.」

「The infection also had a significant impact on operating results during the six-month period of the second quarter of the current fiscal year.」

「Regarding the impact of coronavirus disease (hereinafter, the infection), the Group is continuing its business activities at present after implementing stringent measures. During the nine-month period of the first quarter of the current fiscal year, the infection had a significant impact on operating results.」

「If a large-scale disaster exceeding expectations, such as the Great East Japan Earthquake that occurred in March 2011, or an infectious disease such as the novel coronavirus that emerged in 2020 occurs, business activities may be restricted, and the Group may be directly or indirectly affected by supply-chain conditions, electricity shortages, lockdowns and production adjustments by major users. In addition, a decline in consumption trends resulting from disasters or other events could adversely affect the Group's operating results and financial condition.」

「During the nine-month period of the current fiscal year, Japan's economy remained on a gradual recovery trend overall, despite the effects of large-scale natural disasters caused by typhoons and the consumption tax increase, supported by improvements in employment and income conditions.」

「Although Japan experienced successive natural disasters, including the heavy rains in western Japan and earthquakes, as well as unfavorable weather, the economy remained on a gradual recovery trend overall, supported by increased capital investment accompanying improved corporate earnings and stronger personal consumption resulting from improvements in employment and income conditions.」

「Meanwhile, although Japan experienced successive natural disasters and unfavorable weather, the economy remained on a gradual recovery trend overall, supported by increased capital investment accompanying improved corporate earnings and stronger personal consumption resulting from improvements in employment and income conditions.」

「The Japanese economy remained sluggish, partly due to the effects of the prolonged August rains, particularly in eastern Japan. In domestic car-care chemicals, sales remained strong despite the effects of the prolonged August rains, particularly in eastern Japan.」

「Losses from disasters 25」

「Losses from disasters 25,700」

「Regarding the Japanese economy, although business sentiment in industries such as automobiles improved as production recovered after the Kumamoto Earthquake, the income environment improved and personal consumption was beginning to bottom out, corporate performance, particularly in manufacturing, deteriorated due to the stronger yen.」

「If a major disaster exceeding expectations, such as the Great East Japan Earthquake in March 2011, occurs, business activities could be restricted, and the Group could be indirectly affected by supply chain conditions and production adjustments by major customers due to power shortages. In addition, a decline in consumption trends resulting from a disaster or other event could adversely affect the Group's operating results and financial position.」