Kansai Q3 Report 2023

In the fiscal year under review, although supply constraints have generally been resolved and the inflation rate has been slowing, geopolitical risks have remained high and upward pressure on prices has been persistent. Monetary tightening has continued, particularly in the United States and Europe, and the pace of recovery has slowed.

Under such circumstances, the economic recovery in China has remained at a slow pace after the termination of the zero-corona policy, partly due to the impact of the stagnant real estate market. In Europe, the economy continues to be depressed by monetary tightening due to price hikes and interest rate hikes. In other regions, the economy showed signs of recovery or a pick-up supported by robust domestic demand. Japan’s economy has picked up moderately, mainly in domestic demand, reflecting the normalization of economic activity, while being affected by such factors as the rise in prices and the slowdown in the pace of recovery in overseas economies.

The Group’s net sales in the consolidated cumulative third quarter of this fiscal year were 422,294 million yen (up 10.3% year- on-year). Operating income was 41,390 million yen (up 71.3% year-on-year) as a result of efforts to reduce costs and improve selling prices, despite an increase in fixed costs such as personnel expenses.

Ordinary income was 44,189 million yen (up 53.4% year-on-year) mainly due to an increase in equity in earnings of unconsolidated subsidiaries and affiliates, despite foreign exchange losses and loss on net monetary position related to the hyperinflation accounting standard. Profit attributable to owners