Supply and Sales Disruptions Caused by Natural Disasters and Unforeseen Events

「Adjusted operating profit increased 175.4% year on year due to the receipt of fire insurance proceeds related to a fire at a subsidiary’s factory in January 2021, as well as lower depreciation and amortization expenses in the current fiscal year following impairment losses on factories, stores, and other assets in the bakery business recognized in the previous fiscal year.」

「To address customer concerns about radioactive contamination of domestically grown tobacco caused by the accident at the Fukushima Daiichi Nuclear Power Station operated by Tokyo Electric Power Company following the Great East Japan Earthquake and tsunami, and to deliver products that customers can purchase with confidence, the Group has established its own standards with reference to government standards for agricultural products such as vegetables. It has also implemented a system of repeated testing and checks at each stage: before purchasing raw materials, before processing raw materials, before using them at product factories, and before shipping products.」

「If a major earthquake, tsunami, typhoon, flood or other natural disaster occurs in Japan or overseas, or if infrastructure shutdowns, political instability, explosions or other man-made disasters or unforeseen events occur, the Group’s business performance could be adversely affected by supply shortages caused by damage to suppliers, disruptions to transportation, distribution services and sales channels, power and water outages, declining demand, and damage to employees, among other factors.」