Impact of the July 2018 Heavy Rain Disaster on Business Activities and Performance

「In the restaurant business, we are working to raise the level of QSC (quality, service and cleanliness) and improve our ability to develop new menus so that we can fully meet customer expectations. We opened Tendon Tenya Furukawa in Matsuyama, Ehime Prefecture, in June, Yakiniku Jangjaka Uwajima and Food Court Uwajima in Uwajima, Ehime Prefecture, in November, renovated 3 existing stores, and closed 1 store to improve operating efficiency. However, the July 2018 heavy rains caused some stores to suspend operations and had a significant impact on performance.」

「Meanwhile, the July 2018 heavy rains disaster, which caused extensive damage across a wide area of western Japan, also caused considerable damage in the areas where our group operates. To fulfill our role as a lifeline for local communities, our group continued normal operations to the extent possible and provided various forms of recovery support. However, performance was affected not only by direct damage but also by indirect factors, including disruptions to transportation networks, a decline in tourists caused by reputational damage, the spread of a mood of self-restraint and a reluctance to make purchases resulting from deteriorating consumer sentiment.」