COVID-19 Supply Chain and Business Continuity Risks
First written in FY2020. 4 of 8 entries say "Materialised", first in FY2021-Q1. Latest entry: FY2024.
Okamoto Industries moved to the "Worse" side of this theme in 2020, the same year as the typical company in this theme.
The whole theme swung hardest in 2025: 5 of 16 companies on the "Worse" side.
19 other companies' latest entry also says "Mitigated".
- FY2024MitigatedAnnual report
「With COVID-19 reclassified as a Class 5 disease, social and economic activity is expected to continue returning to normal and the impact of the infectious disease is expected to subside. However, if a new infectious disease occurs and spreads, business activity may stagnate.」
While the impact of COVID-19 is moving toward subsiding, the risk of business stagnation if a new infectious disease occurs remains. - FY2024-Q2MitigatedAnnual report
「With the legal classification of COVID-19 changing to Class 5, social and economic activity moved toward normalization, and personal consumption remained on an upward trend as employment and income conditions improved. ... The economy gradually recovered, supported by increased movement of people and the normalization of supply chains.」
The Company describes the change in the legal classification of the infectious disease, the normalization of social and economic activity, increased movement of people and supply-chain normalization, indicating that the conditions constraining business continuity and supply due to the infectious disease have eased. - FY2022RestatedAnnual report
「The occurrence and spread of COVID-19 and other infectious diseases may seriously disrupt the continued procurement of raw materials, maintenance of the production structure, stable supply of products to the market and supply chains, and may affect operating results and financial condition.」
The impact of infectious diseases on procurement, production, stable supply and supply chains remains a key risk. - FY2021MaterialisedAnnual report
「In response to a request from the state government where the U.S. subsidiary is located following the outbreak of COVID-19, the Company suspended operations and recorded ¥100 million as operation-suspension-related costs.」
The suspension of operations at the U.S. subsidiary's plant in response to the infectious disease continued, and the Company recorded ¥100 million in operation-suspension-related costs during the fiscal year. - FY2021-Q3MaterialisedAnnual report
「Operation-suspension-related costs 101」
The U.S. subsidiary suspended plant operations in response to state-government requests and other measures related to COVID-19, and recorded ¥101 million in fixed costs as operation-suspension-related costs under extraordinary losses. - FY2021-Q2MaterialisedAnnual report
「During the cumulative second-quarter period, in response to requests from the state government and other measures related to COVID-19, the Company suspended plant operations. Accordingly, fixed costs incurred during the period were recorded as operation-suspension-related costs under extraordinary losses.」
Regarding the suspension of operations at the U.S. subsidiary's plant due to state-government requests and other measures related to COVID-19, the Company recorded ¥102 million in operation-suspension-related costs as extraordinary losses. - FY2021-Q1MaterialisedAnnual report
「At a U.S. subsidiary, the Company suspended plant operations in response to requests from the state government and other measures related to COVID-19.」
Due to requests from the state government and other measures related to COVID-19, the U.S. subsidiary actually suspended plant operations and recorded ¥36 million in operation-suspension-related costs as extraordinary losses. - FY2020First statedAnnual report
「The occurrence and spread of COVID-19 and other infectious diseases may seriously disrupt the continued procurement of raw materials, maintenance of the production structure, stable supply of products to the market and supply chains, and may affect operating results and financial condition.」
The Company has, for the first time, identified the occurrence and spread of COVID-19 as a standalone risk that may affect raw-material procurement, production, product supply, supply chains and operating results.