Human, operational and supply chain risks arising from COVID-19
First written in FY2020. 5 of 10 entries say "Materialised", first in FY2021-Q1. Latest entry: FY2023.
The whole theme swung hardest in 2020: 103 of 175 companies on the "Worse" side.
- FY2023ReframedAnnual report
「The “Risk relating to operating rates of facilities and other assets” disclosed in the previous consolidated fiscal year has been included within this risk from the current consolidated fiscal year because it was largely attributable to disasters and other events.」
Although risks including COVID-19 continued to be disclosed, they were reorganized under the item “Disasters, accidents, COVID-19 and other risks,” which integrates risks including those relating to operating rates of facilities and other assets. - FY2023-Q2MaterialisedAnnual report
「During the cumulative period of the second quarter of the current consolidated fiscal year, the company faced a more challenging business environment than initially expected, with production and shipments delayed by renewed lockdowns in the Asia-Pacific region, difficulties procuring components, and higher ocean freight costs due to a shortage of shipping containers, among other factors,」
Lockdowns, difficulties procuring components, and container shortages arising from the renewed spread of COVID-19 actually occurred, resulting in production and shipment delays and higher transportation costs. - FY2023-Q1MaterialisedAnnual report
「Although performance during the cumulative period of the first quarter of the current consolidated fiscal year was affected by supply chain disruptions and lockdowns in China, revenue increased year on year, supported by foreign exchange effects and growth in renovation sales in the domestic business.」
Lockdowns in China and supply chain disruptions related to COVID-19 actually occurred as impacts on business activities during the quarter. - FY2022MitigatedAnnual report
「There are many uncertainties regarding the impact of the spread of COVID-19 on economic activity, and changes in conditions could have a considerable impact on the Group’s financial position and operating results. As the company is currently addressing the matter through its day-to-day risk management, it has included it within related risks rather than describing it as a separate risk.」
As the impact of COVID-19 on business activities became limited, the company stopped presenting it as a separate risk item and instead included it within related risks. - FY2022-Q3MaterialisedAnnual report
「In the Asia-Pacific region, production was restricted in some areas, including Vietnam and Thailand, due to the renewed spread of COVID-19. However, economic activity across the region continued to recover, and revenue increased 19% year on year.」
While the renewed spread of COVID-19 actually resulted in restrictions on production in Vietnam, Thailand and other areas, revenue across the Asia-Pacific region increased 19% year on year. - FY2022-Q2MaterialisedAnnual report
「During the cumulative period of the second quarter of the current consolidated fiscal year, the company faced a more challenging business environment than initially expected, with production and shipments delayed by renewed lockdowns in the Asia-Pacific region, difficulties procuring components, and higher ocean freight costs due to a shortage of shipping containers, among other factors,」
Renewed lockdowns in the Asia-Pacific region, difficulties procuring components, container shortages, and higher ocean freight costs arising from the renewed spread of COVID-19 actually occurred, resulting in production and shipment delays. - FY2021MitigatedAnnual report
「The global spread of COVID-19, first confirmed in November 2019, brought economic and social activity to an abrupt standstill and consequently had a considerable impact on the Group’s performance. However, despite regional variations, both the domestic and overseas businesses are generally moving toward recovery.」
Although the infection risk continued and its likelihood was considered high, the domestic and overseas businesses were generally recovering, and the company assessed its significance as lower than in the previous year. - FY2021-Q3MitigatedAnnual report
「Revenue at domestic sites for the cumulative period from October to December 2020 declined 6% year on year (down 12% year on year from April to June 2020 and down 16% from July to September 2020). In the overseas business, revenue at overseas sites for the cumulative period from October to December 2020 continued to recover, increasing 2% year on year overall.」
Although the impact of COVID-19 continued, the decline in revenue at domestic sites narrowed from the first and second quarters, while overseas sites returned to year-on-year revenue growth, indicating that the impact on the business had eased. - FY2021-Q1MaterialisedAnnual report
「As the global spread of COVID-19 brought economic and social activity to an abrupt standstill, its impact on the Group’s performance during the first quarter of the current consolidated fiscal year became more pronounced.」
The infection risk actually affected domestic and overseas sales and profits: sales at domestic sites declined 12% year on year, sales at overseas sites declined 22%, and sales in the Asia-Pacific region generally declined by more than 30%. The company also assumed that some overseas regions would require 1 to 3 years to recover. - FY2020First statedAnnual report
「The greatest concern arising from the spread of COVID-19 is the possibility of harm to employees and their families across the globally operating Group, and the possibility of human harm because it may become difficult to ensure occupational health and safety at workplaces at each site.」
COVID-19 was disclosed independently for the first time as a cross-business risk whose change from the previous year was classified as “new” and whose likelihood and impact were both high. The disclosure also stated that production had been suspended at some plants, domestic shipments in April had declined by approximately 10%, and overseas shipments in April had declined by approximately 30%.