Risk of Factory Shutdowns and System Failures Caused by Natural Disasters
First written in FY2016. 7 of 12 entries say "Materialised", first in FY2019-Q2. Latest entry: FY2023.
Shinobu Foods Products 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".
- FY2023RestatedAnnual report
「Our Group operates 8 plants in areas extending from Kanto through Tokai, Kansai and the Chugoku-Shikoku regions. If a major natural disaster such as an earthquake or typhoon, or a major accident, occurs」
The risks of natural disasters, accidents, logistics disruptions and system shutdowns associated with locating 8 plants across multiple regions continue to be disclosed. Plant shutdowns and sales declines due to infectious diseases also continue to be identified. - FY2023-Q1MaterialisedAnnual report
「As it is difficult to predict the future spread of or timeframe for the containment of COVID-19, we have assumed that its impact will continue during the current consolidated fiscal year」
The impact of COVID-19 was assumed to continue into the current consolidated fiscal year and was reflected in estimates including impairment accounting for fixed assets. - FY2021-Q3MaterialisedAnnual report
「Operating results for the first 9 months of the current consolidated fiscal year were affected by COVID-19, with net sales of ¥37.358 billion, down 6.1% year on year; operating profit of ¥887 million, down 22.7%; ordinary profit of ¥905 million, down 21.9%; and quarterly net income attributable to owners of the parent of ¥674 million, down 34.0% year on year. The Company also recorded a gain on the sale of investment securities of ¥55 million.」
The decline in sales and profit due to infectious diseases also materialized in results for the nine months ended the third quarter. - FY2021-Q2MaterialisedAnnual report
「For the six months ended the second quarter of the current consolidated fiscal year, operating results were affected by COVID-19. Net sales were ¥24.348 billion, down 7.1% year on year; operating income was ¥520 million, down 26.9%; ordinary income was ¥521 million, down 25.8%; and a gain on sales of investment securities of ¥55 million was recorded. Net income attributable to owners of the parent was ¥410 million, down 24.7% year on year.」
As in the previous quarter, the decline in sales and profit due to COVID-19 materialized in results for the six months ended the second quarter. - FY2021-Q1MaterialisedAnnual report
「Operating results for the first quarter of the current consolidated cumulative period were affected by COVID-19, with net sales of ¥11.806 billion, down 7.1% year on year; operating profit of ¥181 million, down 38.0%; ordinary profit of ¥207 million, down 34.4%; and quarterly net income attributable to owners of the parent of ¥132 million, down 39.9%.」
The decline in sales and other effects of infectious diseases identified as risks in the previous period materialized in actual results as declines in sales and profit due to the impact of COVID-19. - FY2020WorsenedAnnual report
「In addition to natural disasters, if an epidemic or infectious disease occurs and has a devastating impact on society as a whole, or if employees become infected, the Group's operating results and financial condition could be affected through plant shutdowns, declines in sales and other effects.」
In addition to the previously identified risks of natural disasters, accidents and logistics disruptions, plant shutdowns and sales declines due to epidemics and infectious diseases were explicitly identified as risks. It was also stated that the global spread of COVID-19 made the outlook extremely difficult to predict. - FY2019MaterialisedAnnual report
「However, in the fiscal year ending March 2020, the final year of the plan, the start of production at the New Kansai Plant was delayed by 3 months due largely to natural disasters such as Typhoon Jebi. Consolidated net sales of ¥52.0 billion and ordinary income of ¥1.1 billion are forecast.」
The 3-month delay in the start of production at the New Kansai Plant due to natural disasters such as Typhoon Jebi was explicitly identified as affecting the forecast for the next fiscal year. - FY2019-Q3MaterialisedAnnual report
「The plan as of the end of the previous consolidated fiscal year called for completion in March 2019, but the construction schedule is expected to be delayed due to the impact of natural disasters, including the Northern Osaka Earthquake, the torrential rains in western Japan and Typhoon No. 21, and has therefore been changed as described above.」
It is stated that natural disasters including the Northern Osaka Earthquake, the torrential rains in western Japan and Typhoon Jebi affected the delay in the construction schedule for the New Kansai Plant. - FY2019-Q2MaterialisedAnnual report
「In the torrential rains in western Japan in July, the Hiroshima Plant in Onomichi, Hiroshima Prefecture, suspended operations for 17 days due to a water outage, but resumed normal operations on 25 July.」
The Hiroshima Plant experienced a 17-day shutdown due to a water outage caused by the torrential rains in western Japan. It subsequently resumed normal operations on 25 July. - FY2018WorsenedAnnual report
「If a major natural disaster such as an earthquake or typhoon, or a major accident, occurs in these areas, the suspension of essential utilities such as electricity, gas and water, damage to production facilities, disruption of logistics, or computer network disconnection or failure could make manufacturing and supply difficult. In addition, if poor harvests occur in producing regions due to adverse weather or other factors, procurement costs could rise and supply shortages could result.」
In addition to the previously identified risks of plant and system shutdowns due to natural disasters, major accidents, logistics disruptions, and price increases and supply shortages resulting from poor harvests in raw-material-producing regions were added as risks. - FY2017RestatedAnnual report
「Our Group operates 8 plants in areas extending from Kanto through Tokai, Kansai and the Chugoku-Shikoku regions. If a major natural disaster such as an earthquake or typhoon occurs in these areas, the supply of essential utilities such as electricity, gas and water could be suspended, and production facilities could be damaged, making it difficult for the plants to operate. Computer network systems could also be disconnected or disrupted.」
The risk of natural disasters and plant or system shutdowns associated with locating 8 plants across multiple regions continues to be disclosed. - FY2016First statedAnnual report
「Our Group operates 8 plants in areas extending from Kanto through Tokai, Kansai and the Chugoku-Shikoku regions. If a major natural disaster such as an earthquake or typhoon occurs in these areas, the supply of essential utilities such as electricity, gas and water could be suspended, and production facilities could be damaged, making it difficult for the plants to operate. Computer network systems could also be disconnected or disrupted.」
Assuming that 8 plants are located across multiple regions, production and network shutdowns due to natural disasters are anticipated.