Disruption of Production and Logistics Functions Due to Natural Disasters
First written in FY2016. 3 of 9 entries say "Materialised", first in FY2019-Q2. Latest entry: FY2024.
Mitsui DM Sugar moved to the "Worse" side of this theme in 2018, 2 years before the typical company in this theme (2020).
The whole theme swung hardest in 2018: 32 of 131 companies on the "Worse" side.
90 other companies' latest entry also says "Restated".
- FY2024RestatedAnnual report
「In addition to its own factories in Chiba, Kobe and Fukuoka, the Group has secured a supply network of 6 factories, including contract sugar refineries. It has also established systems to enable the early recovery of its core businesses in the event of weather-related disasters, including regular BCP training and reviews, coordination with raw material suppliers and multiple sourcing.」
The response structure for natural disasters and equipment failures, including a 6-factory supply network, BCP training and multiple sourcing, remains in place. - FY2023MitigatedAnnual report
「To address the uncertainty surrounding the emergence of risks from climate change, the Group conducts regular equipment maintenance as a preventive measure and has established systems to enable the early recovery of its core businesses when such events occur. These include a supply network comprising 6 factories, including contract sugar refineries, in addition to its own factories in Chiba, Kobe and Fukuoka, as well as regular BCP training and reviews, coordination with raw material suppliers and multiple sourcing.」
The response to natural disasters and equipment failures has expanded from the previous 3-factory structure to a 6-factory supply network including contract sugar refineries, while BCP training and multiple sourcing continue. - FY2021MitigatedAnnual report
「As a preventive measure, the Group conducts regular equipment maintenance and maintains 3 own factories in Chiba, Kobe and Fukuoka. It has also established systems to enable the early recovery of its core businesses when such events occur, including regular BCP training and reviews, coordination with raw material suppliers and multiple sourcing.」
To address natural disaster and equipment failure risks, the Group has put in place regular maintenance, a 3-factory structure, BCP training and multiple sourcing. - FY2020WorsenedAnnual report
「We recognize that the risk of wind and water disasters, including major typhoons and torrential rains, has increased in recent years. In addition, because ours is a capital-intensive industry, there is also a risk of incidents such as unexpected production stoppages caused by equipment failures.」
The natural disaster risk disclosure specifically identifies the increased risk of major typhoons and torrential rains, and also includes unexpected production stoppages caused by equipment failures. - FY2019MaterialisedAnnual report
「These were disaster-related expenses associated with Typhoon No. 21 and the Hokkaido Eastern Iburi Earthquake. In addition, ¥211 million in insurance proceeds related to the damage was recorded as extraordinary income.」
Damage from Typhoon No. 21 and the Hokkaido Eastern Iburi Earthquake was reflected in the annual results as ¥207 million in disaster-related expenses and ¥211 million in insurance proceeds. - FY2019-Q3MaterialisedAnnual report
「The consolidated subsidiaries reported lower profits. At 北海道糖業㈱, selling prices declined and logistics costs rose due to the fall in overseas raw sugar prices, in addition to the impact of the Hokkaido Eastern Iburi Earthquake. At 生和糖業㈱, sugarcane had historically low sugar content due to adverse weather conditions.」
The impact of the Hokkaido Eastern Iburi Earthquake and the historically low sugar content of sugarcane due to adverse weather conditions actually occurred and became factors behind lower profits at the consolidated subsidiaries. - FY2019-Q2MaterialisedAnnual report
「Shipments in the Kansai and Chugoku-Shikoku regions remained sluggish due to the impact of the torrential rains in western Japan, while Kobe Plant was damaged by Typhoon No. 21 in September. Although the damage was not extensive, operations were nevertheless affected, and sales volume ultimately fell below the same period of the previous year.」
The torrential rains and typhoon caused sluggish shipments, damage to Kobe Plant, and sales volume to fall below the same period of the previous year. - FY2017RestatedAnnual report
「The Group conducts business activities in Japan and overseas, but if an unforeseen event exceeding expectations, such as a major natural disaster including an earthquake, occurs and disrupts product production or logistics operations for an extended period, it may affect the Group's operating results and financial position.」
The risk of production and logistics operations being suspended due to natural disasters has been reiterated. - FY2016First statedAnnual report
「The Group conducts business activities in Japan and overseas, but if an unforeseen event exceeding expectations, such as a major natural disaster including an earthquake, occurs and disrupts product production or logistics operations for an extended period, it may affect the Group's operating results and financial position.」
The Group assumes the possibility of prolonged disruption from major natural disasters at its production and logistics facilities in Japan and overseas.