Dependence on capital investment and production trends in the automotive, electrical equipment and broader manufacturing sectors

「We captured a recovery in demand in part of the automotive industry, a major customer industry.」

「During the consolidated fiscal year, uncertainty about the outlook continued due to the US tariff policy and its effects on other countries, as well as rising geopolitical risks. As a result, operating rates in the automotive-related sector, a key customer industry, remained stagnant.」

「During the interim consolidated accounting period, uncertainty about the outlook continued due to the US tariff policy and its effects on other countries, as well as volatile foreign exchange markets. This affected operating rates in the automotive-related sector, a key customer industry.」

「During the consolidated fiscal year, global capital investment demand, particularly in manufacturing, continued to recover gradually. Demand for automotive and communications-related products remained firm, mainly in China, Asia and Japan.」

「During the interim consolidated accounting period, global capital investment demand, particularly in manufacturing, was on a recovery trend but recovered more slowly than expected. Demand remained firm, mainly in China, Asia and Japan, and signs of recovery emerged in semiconductors and electronic components, as well as in some automotive-related sectors, the main customer industry. Meanwhile, conditions remained sluggish in Europe and the United States due to weak market conditions, geopolitical risks and other factors, and companies remained cautious about capital investment.」

「During the consolidated fiscal year, the global economy remained in a difficult situation as capital investment demand, particularly in manufacturing, stayed weak worldwide.」

「During the nine-month period ended this quarter, China, where economic activity had stagnated, continued to show little sign of recovery. Concerns about recession in Europe and the United States also remained unresolved, and global capital investment demand was generally sluggish.」

「During the six-month period ended this quarter, capital investment demand, particularly in manufacturing, remained weak globally due to a notably delayed economic recovery in China, which had been heavily affected by the COVID-19 pandemic in the previous fiscal year, and concerns about recession in Europe and the United States.」

「Meanwhile, delayed economic recovery in China caused the company to be strongly affected by weak demand in China and Asia, as in the machine tools industry.」

「The performance of our group may be affected by capital investment trends and production and operating trends in these industries.」

「The company was strongly affected by weak capital investment demand globally, particularly in China and Japan.」

「During the six-month period ended this quarter, the global economy was affected by the continuing impact of COVID-19. Demand slowed in China due to lockdowns and power restrictions in some regions, while conditions in Japan also remained sluggish, particularly in automotive-related sectors, due to the impact of China's lockdowns. The shortage of various materials and components that had continued since the previous year did not materially improve, resulting in lower capital investment related to automation and lower factory operating rates.」

「During the first quarter, the global economy was in an extremely difficult situation as the impact of COVID-19 continued. China imposed lockdowns in multiple cities, and capital investment related to automation and factory operating rates remained weak.」

「During the consolidated fiscal year, global demand for automation generally remained at a high level as the economy continued to recover from the COVID-19 pandemic.」

「During the nine-month period ended this quarter, capital investment demand and operating rates recovered from the beginning of the period and subsequently remained firm.」

「During the six-month period ended this quarter, the global economy continued to recover from the COVID-19 pandemic. Capital investment and operating rates in manufacturing remained firm worldwide, and demand recovered in all regions, including Japan, led by China.」

「As automotive-related demand recovered in each region, net sales in the mold components business were ¥1,898 million, up 27.5% year on year, and operating income was ¥279 million, up 1,160.3%.」

「Although automotive-related activity showed a gradual recovery in the second half, it was insufficient to offset the decline in the first half, and net sales in the mold components business were ¥6,687 million, down 7.7% year on year.」

「Although economic conditions were on a recovery trend globally in the nine-month period ended this quarter, the impact of weak capital investment by manufacturers in the first half resulted in year-on-year declines in both revenue and profit.」

「During the six-month period ended this quarter, the global economy was in an extremely difficult situation, as capital investment by manufacturers remained weak worldwide due to the spread of COVID-19 and the impact of US-China trade friction.」

「However, revenue and profit both declined year on year due to the continued impact of lower operating rates in the manufacturing sector and weak capital investment.」

「During the consolidated fiscal year, the global economy was generally in a difficult situation, as manufacturers' capital investment and operating rates remained sluggish amid prolonged US-China trade friction, compounded by the impact of the spread of COVID-19 toward the end of the fiscal year.」

「During the nine-month period ended this quarter, the global economy generally remained sluggish. In China and elsewhere, restraint on capital investment by manufacturers continued amid prolonged US-China trade friction, while weak automotive-related demand in major countries also persisted. In Japan, manufacturing generally continued to slow due to a weaker export environment, affecting the production machinery and automotive-related sectors.」

「During the six-month period ended this quarter, the global economy slowed further as manufacturers in China and elsewhere continued to reduce capital investment amid prolonged US-China trade friction, and automotive-related demand declined in major countries. In Japan, too, the export environment weakened and manufacturing generally remained sluggish, affecting the production machinery and automotive-related sectors.」

「In addition to weak smartphone and automotive sales, which had continued since the previous fiscal year, concerns about escalating US-China trade friction and other factors further reduced manufacturers' willingness to invest in capital equipment in regions outside Southeast Asia.」

「Although sales activities in Southeast Asia were strong, net sales in the mold components business were ¥7,643 million, down 0.1% year on year, due to lower automotive-related demand in major countries, among other factors.」

「Although sales activities in Asia were strong, net sales in the mold components business were ¥5,758 million, unchanged year on year, due to lower demand in the automotive industries in Japan and the United States, among other factors.」

「Although sales activities in Asia were strong, net sales in the mold components business were ¥3,849 million, down 0.5% year on year, due to lower demand in the automotive industries in Japan and the United States, among other factors.」

「During the cumulative first quarter, there were no material changes in the financial position, operating results or cash flows, including any unusual fluctuations, or in the risks related to the business described in the annual securities report for the previous fiscal year.」

「The performance of our group may fluctuate as a result of capital investment and production trends in the above industries and in the manufacturing industry generally.」

「During the cumulative third quarter, there were no material changes in the financial position, operating results or cash flows, including any unusual fluctuations, or in the risks related to the business described in the annual securities report for the previous fiscal year.」

「During the cumulative second quarter, there were no material changes in the financial position, operating results or cash flows, including any unusual fluctuations, or in the risks related to the business described in the annual securities report for the previous fiscal year.」

「During the cumulative first quarter, there were no material changes in the financial position, operating results or cash flows, including any unusual fluctuations, or in the risks related to the business described in the annual securities report for the previous fiscal year.」

「During the cumulative third quarter, there were no material changes in the financial position, operating results or cash flows, including any unusual fluctuations, or in the risks related to the business described in the annual securities report for the previous fiscal year.」

「During the cumulative second quarter, there were no material changes in the financial position, operating results or cash flows, including any unusual fluctuations, or in the risks related to the business described in the annual securities report for the previous fiscal year.」

「During the cumulative first quarter, there were no material changes in the financial position, operating results or cash flows, including any unusual fluctuations, or in the risks related to the business described in the annual securities report for the previous fiscal year.」

「The performance of our group may fluctuate as a result of capital investment and production trends in the above industries and in the manufacturing industry generally.」