Declining demand and business continuity risks resulting from the spread of COVID-19
First written in FY2020. 4 of 12 entries say "Worsened", first in FY2021-Q1. Latest entry: FY2024.
Hiroshima Electric Railway moved to the "Worse" side of this theme in 2020, the same year as the typical company in this theme.
The whole theme swung hardest in 2020: 62 of 94 companies on the "Worse" side.
27 other companies' latest entry also says "Mitigated".
- FY2024MitigatedAnnual report
「Our group steadily captured transportation demand as a result of increased mobility opportunities in the post-COVID period, the arrival of many tourists from Japan and overseas for the G7 Hiroshima Summit, and continued investment in community development and participation in various initiatives during the pandemic. As a result, revenue in the transportation and distribution businesses remained solid」
The impact of pandemic-related demand declines was less severe than through the previous fiscal year, owing to an environment without restrictions on activities, the recovery in tourism demand, the G7 Hiroshima Summit and investment in community development. However, this did not state that usage levels had fully recovered to pre-COVID levels. - FY2024-Q3MitigatedAnnual report
「Against this backdrop, our group performed well in the transportation and distribution businesses as a result of steadily capturing demand for travel arising from increased daily mobility opportunities in the post-COVID period, visitors from Japan and overseas attending the G7 Hiroshima Summit, and our continued investment in community development and participation in various initiatives during the pandemic.」
The transportation and distribution businesses performed well against a backdrop of increased mobility opportunities in the post-COVID period, the G7 Hiroshima Summit and continued investment in community development, partly easing the impact of pandemic-related demand declines. - FY2024-Q1Demand recovery progressing but still below pre-COVID levelsAnnual report
「Although ridership has not recovered to pre-COVID-19 levels, it has been trending upward as socioeconomic activity recovers. Revenue increased year on year, helped by convenience-enhancement measures including the standardisation in November 2022 of tram and route-bus fares within the delta urban area in central Hiroshima at a flat ¥220, creating a simpler fare structure, the expansion of common commuter passes usable on both trams and buses, and sales of digital unlimited-ride tickets usable on trams and route buses during weekday daytime hours and on weekends and public holidays.」
The number of users showed an increasing trend as socioeconomic activity recovered, and the impact of declining demand was partly eased, but usage levels had not returned to pre-COVID levels. - FY2023-Q2Partial recovery but still below pre-COVID levelsAnnual report
「Although some recovery centered on domestic demand was seen during the Golden Week holiday and other periods without restrictions on activities for the first time in 3 years, the effects of changes in social behavior had become entrenched, and the recovery in foreign tourists whose entry resumed in June 2022 remained limited. Overall, conditions continued to be challenging in the transportation and distribution businesses.」
Although the lifting of restrictions led to some recovery in domestic demand, changes in social behavior became entrenched and the recovery in foreign tourists remained limited, so the impact of the pandemic on the transportation and distribution businesses continued. - FY2023-Q1Partial recovery, but the impact continuesAnnual report
「Although some recovery centered on domestic demand was seen during the Golden Week holiday and other periods without restrictions on activities for the first time in 3 years, the effects of changes in social behavior had become entrenched, and the recovery in foreign tourists whose entry resumed in June 2022 remained limited. Overall, conditions continued to be challenging in the transportation and distribution businesses.」
Although the lifting of restrictions led to some recovery in domestic demand, changes in social behavior became entrenched and the recovery in foreign tourists remained limited, so challenging conditions continued in the transportation and distribution businesses. - FY2022-Q3WorsenedAnnual report
「The spread of infections was curbed by the wider adoption of COVID-19 vaccinations and the repeated issuance and lifting of states of emergency and priority preventive measures. Although signs of an economic recovery emerged, infections caused by the new Omicron variant were detected in regions around the world as a new threat, and conditions remained uncertain as to when the pandemic would end.」
Although vaccinations and the lifting of declarations supported a recovery, the Omicron variant was detected as a new threat, and uncertainty over when the pandemic would end continued. - FY2022-Q2RestatedAnnual report
「Demand from domestic and international travelers remained weak, while the cancellation of various events, the closure of commercial facilities and people refraining from going out as working from home became more widespread had a significant impact. Overall transportation demand remained sluggish, and conditions continued to be extremely challenging in the transportation and distribution businesses.」
Demand remained weak because of the decline in domestic and international travelers, event cancellations, commercial facility closures and working from home, and the impact of the pandemic on the transportation and distribution businesses continued to be reported. - FY2022-Q1RestatedAnnual report
「Foreign tourists, whose numbers had declined as a result of the spread of COVID-19, had not recovered. The cancellation of various events, the closure of commercial facilities and the impact of people refraining from going out because of working from home remained significant, and conditions continued to be extremely challenging in the transportation and distribution businesses.」
Demand continued to decline because foreign tourists had not returned, events were cancelled, commercial facilities were closed and people refrained from going out, and the impact on the transportation and distribution businesses continued to be reported. - FY2021WorsenedAnnual report
「As a result, operating revenue for the current fiscal year decreased by 22.8%, or ¥7,501 million, from the previous fiscal year to ¥25,409 million, owing to the significant impact of the novel coronavirus infection on the Transportation, Distribution, and Leisure and Services segments. The operating loss widened from ¥309 million in the previous fiscal year to ¥6,057 million, while the ordinary loss widened from ¥290 million to ¥6,049 million.」
The impact of the pandemic became apparent over the full fiscal year, with operating revenue down 22.8% and an operating loss of ¥6,057 million. - FY2021-Q3WorsenedAnnual report
「Operating revenue for the nine months ended the third quarter declined 23.8%, or ¥6,055 million, from the same period of the previous year to ¥19,417 million, as the Transportation, Distribution, and Leisure and Services businesses were significantly affected by COVID-19. The company recorded an operating loss of ¥4,417 million, compared with operating profit of ¥702 million in the same period of the previous year.」
The impact of the continuing spread of COVID-19 was broadly reflected across the businesses, with operating revenue down 23.8% and an operating loss of ¥4,417 million. - FY2021-Q1WorsenedAnnual report
「Operating revenue for the cumulative first quarter of the current fiscal year decreased by 39.5%, or ¥3,370 million, from the cumulative first quarter of the previous fiscal year to ¥5,153 million, owing to the impact of the spread of the novel coronavirus infection on the Transportation, Distribution, Real Estate, and Leisure and Services segments. Operating profit declined from ¥434 million in the previous fiscal year's cumulative first quarter to an operating loss of ¥2,338 million. Ordinary profit declined from ¥478 million to an ordinary loss of ¥2,321 million.」
The impact of the spread of COVID-19, previously a concern as of the end of the preceding fiscal year, became more pronounced across the businesses, reflected in a 39.5% decline in operating revenue, an operating loss of ¥2,338 million and an ordinary loss of ¥2,321 million. - FY2020MaterialisedAnnual report
「As the spread of COVID-19 caused a substantial decline in foreign tourists, while the cancellation of large events and calls for people to refrain from going out began to affect Japan, conditions became extremely challenging across all businesses toward the end of the fiscal year.」
The company stated that the spread of COVID-19 had begun to affect each business through foreign tourists, events and demand for outings. It also described its responses, including its BCP, an emergency response headquarters, revisions to operating plans, infection prevention measures, staggered working hours and working from home.