Risk of Production Suspensions Due to Natural Disasters and Unforeseen Events
First written in FY2018. 3 of 7 entries say "Materialised", first in FY2020. Latest entry: FY2026.
The whole theme swung hardest in 2018: 35 of 131 companies on the "Worse" side.
- FY2026AdvancedAnnual report
「We are working to ensure business continuity by conducting BCP assessments based on the international standard ISO22301, installing emergency generators and securing backup power supplies, diversifying production sites, predefining alternative parts and increasing inventories, and including force majeure clauses in contracts.」
The company has specified BCP measures covering assessments based on ISO22301, emergency power supplies, the diversification of production sites, alternative parts and inventories, and contractual provisions. - FY2023AdvancedAnnual report
「We have taken various measures, including replacing aging buildings by constructing a new facility as an earthquake countermeasure and relocating the head office building as a flood countermeasure.」
In addition to BCP and infectious-disease measures, the company has implemented specific earthquake and flood countermeasures by replacing aging buildings and relocating the head office. - FY2022AdvancedAnnual report
「In particular, in response to COVID-19, we have established a system capable of expanding telework (working from home), recording temperature checks, promptly using activity histories during working hours, conducting in-house PCR testing for early detection of infected individuals and prevention of cluster spread, and carrying out group testing when necessary as part of the group's infection-prevention efforts.」
The company states that it has established an infectious-disease response system capable of group testing when necessary, in addition to its existing BCP, telework and PCR testing systems. - FY2021MaterialisedAnnual report
「Although the segment's profit and loss was affected by the first-quarter loss, higher ocean freight rates in the second half, increased logistics costs due to the extensive use of air freight amid difficulties procuring materials and production delays, and a temporary inventory write-down, profit and loss improved substantially due to the higher proportion of relatively high-margin products from the second quarter onward, lower manufacturing expenses resulting from the penetration of cost management, and improved yields in manufacturing processes, resulting in a profit of ¥433 million, compared with a profit of ¥30 million in the previous fiscal year.」
While higher logistics costs, production delays and inventory write-downs resulting from infectious diseases and unforeseen supply constraints actually occurred, profit and loss improved through cost management and other measures. - FY2021-Q1MaterialisedAnnual report
「Automakers were forced to cut production because of sluggish demand for new vehicles and disruptions and stagnation in the supply chain caused by the spread of COVID-19, resulting in production and sales falling substantially below the same period of the previous year.」
The unforeseen event of an infectious disease actually affected performance through reduced automobile production by automakers and substantial declines in production and sales. - FY2020MaterialisedAnnual report
「In particular, in response to COVID-19, we have introduced telework (working from home), implemented handwashing, gargling and disinfection throughout the group, required employees to wear masks, and taken steps to limit the spread of clusters through the prompt use of temperature records and activity histories, including meeting records.」
The disease risk materialized as COVID-19, and the company describes the resulting impact, including production stoppages and lower operating rates, as well as its response through telework, hygiene management and the use of activity histories. - FY2018First statedAnnual report
「Production stoppages caused by damage to facilities due to earthquakes and other natural disasters or unforeseen events, and difficulties in supplying electricity, water and other utilities, may affect the group's operating results and financial position.」
The company explicitly identifies facility damage and difficulties in supplying infrastructure, as well as production stoppages caused by natural disasters and unforeseen events, as risks.