Mar 15, 2022
The SATO Group is deeply concerned by the developments in Ukraine and takes a serious view of the escalating crisis. Our hope is that peace will prevail in the very near future.
In response to the recent events, we would like to provide an update on our approach to business activities in Russia and the impact on financial results as follows.
1. Approach to business activities in Russia
- ①Base business:
Our sales subsidiaries in Europe have ceased all business in Russia.
- ②Primary labels business:
There are currently two SATO Group companies in Russia — Okil-Holding, JSC and Okil-SATO X-Pack Co., Ltd — producing product labels and other media as part of our primary labels business. We are following the situation closely, reviewing a full range of strategic options to adapt our approach as appropriate in coordination with sanctions and other measures adopted by the international community.
This business recorded approximately 7.3 billion yen of revenue and 0.5 billion yen of operating income for fiscal year 2020.
2. Impact on financial results
While we believe that our financial results for fiscal year 2021 will not be affected significantly, we will continue to assess the situation as circumstances evolve and provide prompt updates should there be any possible material impact on our consolidated forecasts.