Risk of production stoppages at overseas sites and key production facilities
First written in FY2016. 3 of 5 entries say "Mitigated", first in FY2021. Latest entry: FY2026.
The whole theme swung hardest in 2022: 28 of 60 companies on the "Worse" side.
17 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Assessing flood risks at key sites, including under future climate conditions; developing and promoting a BCP (business continuity plan) covering the supply chain; establishing a globally substitutable structure through the dispersion of operating sites; and examining alternative procurement methods in advance, focusing on production areas with high disaster risks, in preparation for supply chain disruptions」
In addition to dispersing operating sites and establishing alternative production capacity, the Company is making concrete progress on flood-risk assessments incorporating future climate conditions, alternative procurement and a BCP covering the supply chain. - FY2023MitigatedAnnual report
「We are dispersing our operating sites from various perspectives and working to establish a globally substitutable structure.」
The Company continues to disperse its operating sites and establish a global alternative structure in response to the risk of production stoppages caused by natural disasters, infectious diseases and social disruption. - FY2021MitigatedAnnual report
「After considering various factors, we are dispersing our operating sites and working to establish a globally substitutable production structure.」
In response to the risk of production stoppages caused by overseas sites, natural disasters and infectious diseases, the Company has specified the dispersion of operating sites and the establishment of a global alternative production structure. - FY2020MaterialisedAnnual report
「Net income attributable to owners of the parent was ¥27.135 billion, down 23.6% year on year, mainly because impairment losses of ¥12.558 billion were recorded on a Thai manufacturing subsidiary producing automotive-related products affected by COVID-19 and on the packaging business, among others.」
The impact of the infectious disease has materialized as impairment losses at the Thai manufacturing subsidiary and elsewhere. - FY2016First statedAnnual report
「However, regardless of whether the sites are in Japan or overseas, if production facilities at key production sites suffer significant damage from an earthquake, fire or other accident, production activities may be suspended for a considerable period, adversely affecting the Group's operating results and financial condition. In addition, overseas operations are subject to potential risks including (1) the laws, regulations and tax systems of the relevant countries, (2) economic changes, including foreign exchange fluctuations, (3) difficulties in securing and training personnel, (4) inadequate infrastructure, and (5) social disruption such as terrorism and war.」
While describing the dispersion of operating sites, the Company identifies natural disasters, overseas regulatory systems, foreign exchange, personnel, infrastructure and social disruption as risks.