Disaster Risk from Concentration at a Single Production Site
First written in FY2016. 4 of 14 entries say "Restated". Latest entry: FY2026.
Dainichi moved to the "Worse" side of this theme in 2022, 4 years before the typical company in this theme (2026).
The whole theme swung hardest in 2020: 5 of 10 companies on the "Worse" side.
6 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「The company continues to produce petroleum heating equipment throughout the year and has secured inventory ahead of the demand season. It also stocks products in warehouses at multiple locations nationwide, enabling it to fulfill orders if operations are suspended for a short period, but a prolonged recovery period could make shipments impossible and affect its business results.」
Regarding the disaster risk associated with the concentration of production at a single site, the company reiterates its measures of year-round production, inventory for the demand season, and the use of multiple warehouses nationwide to respond to a short-term shutdown. - FY2023ReframedAnnual report
「The spread of an unknown infectious disease could significantly affect business activities through sluggish consumption, disruptions to domestic and overseas supply chains, and infections among employees and business partners.」
The description of infectious disease risk has been generalized from a focus on COVID-19 to “unknown infectious diseases,” while continuing to indicate impacts on consumption, supply chains, employees and business partners. - FY2023-Q2RestatedAnnual report
「Looking ahead, although the economy is expected to recover as the transition to a new phase of living with COVID-19 progresses, weaker overseas economies pose a risk of putting downward pressure on Japan's economy. In addition, it remains necessary to pay close attention to the impact of rising prices, supply-side constraints and financial and capital market volatility, and the situation therefore remains uncertain.」
Regarding the external environment amid the response to infectious diseases, weaker overseas economies, rising prices, supply-side constraints and financial and capital market volatility continue to be identified as downside and cautionary factors. - FY2023-Q1WorsenedAnnual report
「The company is now in a situation requiring close attention to downside risks from financial and capital market volatility, in addition to rising raw material prices and supply-side constraints amid concerns over a prolonged situation in Ukraine and the impact of restrictions on economic activity in China.」
In addition to the previous concerns relating to infectious diseases and supply chains, the company identifies the situation in Ukraine, restrictions on economic activity in China, rising raw material prices and supply-side constraints as downside factors, broadening the scope of external risks. - FY2022RestatedAnnual report
「The spread of COVID-19 could significantly affect business activities through sluggish consumption, disruptions to domestic and overseas supply chains, and infections among employees and business partners.」
The company continues to identify the spread of infectious diseases, sluggish consumption, supply chain disruptions, and infections among employees and business partners as factors affecting business activities. It is also promoting infection-control measures for employees, web conferencing and telework. - FY2022-Q3WorsenedAnnual report
「Looking ahead, although the economy is expected to recover as various policy measures take effect and overseas economies improve while economic and social activity moves toward normalization, it remains necessary to closely monitor downside risks from supply-side constraints and raw material price trends, the impact of infectious diseases, including new variants, on domestic and overseas economies, and financial and capital market volatility, and the situation therefore remains uncertain.」
In addition to infectious diseases and impacts through supply chains, supply-side constraints, raw material prices and the impact of new variants have been identified as specific downside factors, broadening the scope of external risks described. - FY2022-Q2RestatedAnnual report
「Looking ahead, although the economy is expected to recover as various policy measures take effect and overseas economies improve while measures to prevent the spread of infection are implemented and vaccinations are promoted, it remains necessary to closely monitor downside risks from developments in infectious diseases in Japan and overseas and their impact through supply chains, as well as financial and capital market volatility, and the situation therefore remains uncertain.」
In addition to developments in infectious diseases, downside risks through supply chains and financial and capital market volatility continue to be identified as factors requiring close monitoring. - FY2021MitigatedAnnual report
「We are implementing thorough infection-control measures for employees and promoting new ways of working according to infection conditions, including the use of web conferencing systems for internal and external meetings and the introduction of telework at sales offices.」
As the risk from COVID-19 continues, the Company has implemented infection-control measures, web conferencing and telework at sales offices, specifying concrete responses. Meanwhile, the impact of the infectious disease on the economy itself has materialised. - FY2021-Q3MaterialisedAnnual report
「During the cumulative third-quarter period (1 April 2020 to 31 December 2020), the Japanese economy remained in a difficult situation due to the impact of COVID-19, although signs of recovery were seen, mainly in personal consumption and production activity.」
The document states that the domestic economy remained in a difficult situation during the cumulative third-quarter period due to the impact of COVID-19. However, additional information states that, as of that point, no material specific impact had arisen on production activity or performance. - FY2021-Q2MaterialisedAnnual report
「During the cumulative second-quarter period (1 April 2020 to 30 September 2020), the Japanese economy remained in a difficult situation due to the impact of COVID-19, although signs of recovery were seen, mainly in personal consumption and production activity.」
The document states that the domestic economy remained in a difficult situation during the current cumulative second-quarter period due to the impact of COVID-19. The impact of infectious disease risk continued to materialise. - FY2021-Q1MaterialisedAnnual report
「During the cumulative first-quarter period (1 April 2020 to 30 June 2020), the Japanese economy was in an extremely difficult situation due to the impact of COVID-19, although conditions began to bottom out following the lifting of the state of emergency.」
The document states that the domestic economy was in an extremely difficult situation in the current first quarter due to the impact of COVID-19. It continues to describe infectious disease risks as having an actual impact on the business environment. - FY2020Addition of infectious disease riskAnnual report
「Business activities may be significantly affected by a decline in consumption caused by the spread of infectious diseases such as COVID-19, disruptions to domestic and international supply chains, and infections among employees and business partners.」
In addition to the disaster risk from the previous concentration at a single site, the impact of infectious disease outbreaks on consumption, supply chains, employees and business partners has been added as a risk. - FY2017MitigatedAnnual report
「If operations are suspended for a short period, orders can be fulfilled because products are stocked at warehouses in multiple locations nationwide. However, if recovery takes an extended period, shipments may become impossible and affect the Company's performance.」
Production remains concentrated at a single site, but the Company explicitly states that inventory is positioned at multiple warehouses nationwide to enable shipments during a short-term stoppage. The risk of a prolonged stoppage remains. - FY2016First statedAnnual report
「Because the production site for our core oil-fired heating equipment is located in a single location, operations may be suspended by disasters such as fire, flooding or earthquakes.」
Because oil-fired heating equipment is produced at a single site, the possibility of production stoppages and inability to ship products due to disasters is described.