Impact of Natural Disasters and Accidents on the Business

「If a major natural disaster or accident were to occur, making agricultural production impossible or difficult over a wide area or causing severe damage to ordinary households, sales of seeds and seedlings, pesticides and agricultural materials for agricultural producers, and gardening products for ordinary households could decline.」

「In domestic agriculture, in addition to the effects of weather fluctuations such as high summer temperatures and localized heavy rainfall, factors that worsen crop yields, including large-scale outbreaks of pests, have occurred frequently,」

「As symbolized by the heavy rainfall in the Kyushu region, precipitation was high and sunlight was insufficient, raising concerns over poor crop yields and revealing various factors that are destabilizing farm management.」

「Numerous agricultural facilities collapsed due to heavy snowfall, particularly on the Sea of Japan side, resulting in many events with a significant impact on farm management.」

「Events with a significant impact on farm management, including poor crop yields due to prolonged rain and surging vegetable prices, occurred frequently.」

「If a major natural disaster or accident were to occur, making agricultural production impossible or difficult over a wide area or causing severe damage to ordinary households, sales of seeds and seedlings, pesticides and agricultural materials for agricultural producers, and gardening products for ordinary households could decline. In addition, business operations could become severely disrupted if, for example, COVID-19 were to spread among employees of our Group.」

「Insufficient sunlight in early summer and crop damage caused by a major typhoon, while the mild winter increased the supply of fresh produce,」

「In addition to the longstanding issues facing domestic agriculture, including declining food consumption due to the declining birthrate and aging population and a shortage of successors to farming households, numerous factors destabilizing farm management emerged, including crop damage from insufficient sunshine in early summer and major typhoons, as well as an outbreak of swine cholera.」

「Recently, typhoons have caused extensive damage to agriculture, particularly in Chiba Prefecture, and the situation has involved numerous negative factors.」

「In summer, extreme heat led to poor crop conditions and typhoons damaged agricultural facilities. From autumn onward, fine weather and a mild winter accelerated vegetable growth, and increased shipment volumes led to lower fresh-produce prices, resulting in rapidly changing conditions.」

「In the facilities materials business, sales of insulating materials to protect crops from cold weather declined due to the mild winter, but demand for restoration of agricultural facilities damaged by repeated typhoons, increased sales of shading and irrigation materials due to last summer’s extreme heat, exports of hydroponic cultivation plants, completion of large-scale projects for plants combined with solar power generation and closed plant factories, and higher revenue from completed greenhouse projects resulted in revenue of ¥10,826 million, up 3.2% year on year. Segment profit also increased 50.6% to ¥345 million.」

「In the facilities materials business, demand for restoration of agricultural facilities damaged by repeated typhoons, increased sales of shading and irrigation materials due to last summer’s extreme heat, and steady performance in the hydroponic cultivation plant business, including exports and the completion of large-scale projects for plants combined with solar power generation and closed plant factories, resulted in revenue of ¥7,384 million, up 7.1% year on year. Segment profit also increased 64.4% to ¥251 million.」

「In addition to the longstanding issues facing domestic agriculture, including declining food consumption due to the declining birthrate and aging population and a shortage of successors to farming households, there are numerous destabilizing factors, including poor crop yields caused by unfavorable weather such as the torrential rains of July 2018, frequent typhoons and extreme heat.」

「Poor crop conditions caused by low temperatures in winter,」

「In addition to the longstanding issues facing domestic agriculture, including declining food consumption due to the declining birthrate and aging population and a shortage of successors to farming households, prolonged rain and typhoons have damaged crops, making farm management increasingly unstable.」

「Agricultural production was severely affected by heavy rainfall that struck Hokkaido and other areas, creating numerous factors that are putting pressure on farm management.」

「Natural disasters or unexpected accidents could affect the business activities and financial results of our Group.」