Risk of business continuity difficulties and declining logistics demand due to the spread of COVID-19
First written in FY2020. 6 of 17 entries say "Softened", first in FY2022. Latest entry: FY2026.
The whole theme swung hardest in 2020: 103 of 175 companies on the "Worse" side.
- FY2026DroppedAnnual reportThere is no disclosure treating COVID-19 as a separate major risk; infectious diseases have been integrated into general disclosures on geopolitical and other risks.
- FY2025ReframedAnnual report
「The logistics business operated by the group is an important business that supports social infrastructure, and the group believes that continuing its operations as far as possible during emergencies, including infectious disease outbreaks, is a social responsibility.」
The disclosure was reorganized from business environment risks specific to COVID-19 to risks relating to the outbreak and spread of infectious diseases, including unknown viruses. - FY2024SoftenedAnnual report
「Furthermore, based on the experience gained from the spread of COVID-19, the company established the New Infectious Disease Preparedness Regulations, setting out basic principles for responding to the spread of infectious diseases caused by unknown viruses and other pathogens that may emerge in the future, as well as the supplies to be kept on hand.」
The disclosure was reorganized from a focus on the impact of COVID-19 on the current business environment to general business continuity risks and regulations applicable to unknown infectious diseases as well. - FY2024-Q2SoftenedAnnual report
「During the cumulative second quarter, the Japanese economy showed signs of normalization in economic activity as restrictions on activity were lifted following the reclassification of COVID-19, while」
Regarding COVID-19, the disclosure indicates signs of economic activity normalizing following its reclassification and the lifting of restrictions on activity, shifting toward a description of a reduced impact compared with before. - FY2023SoftenedAnnual report
「Although domestic consumption in Japan was on a downward trend due to rising consumer prices, including food and utility costs, caused by the weaker yen, and the end of stay-at-home demand, economic activity regained stability and showed a moderate recovery as social restrictions related to COVID-19 were gradually lifted.」
Regarding COVID-19, the disclosure indicates that social restrictions have been lifted and economic activity is recovering, shifting toward a description of a reduced impact on the business environment compared with before. - FY2023-Q3SoftenedAnnual report
「During the cumulative third quarter, the Japanese economy showed signs of recovery in capital investment and personal consumption as restrictions on activity related to COVID-19 were eased and various measures took effect, although」
The disclosure indicates that the easing of restrictions on activity and recovery in capital investment and personal consumption have resulted in wording that includes a recovery in the economic impact of COVID-19. At the same time, the risk section continues to address responses to changes in the environment associated with the pandemic. - FY2023-Q2ReframedAnnual report
「During the cumulative second quarter, the Japanese economy showed signs of recovery as restrictions on activity related to COVID-19 were eased and various measures took effect. However, the outlook remained uncertain as the resurgence of infections in the seventh wave continued, along with rising consumer prices, including food and energy prices, due to the prolonged situation in Ukraine and the rapid depreciation of the yen.」
The disclosure now indicates that restrictions on activity have been eased and the economy is recovering, while stating that the effects of the pandemic, including the resurgence of infections in the seventh wave, continue. - FY2023-Q1SoftenedAnnual report
「Although signs of a recovery have emerged as restrictions on activity have been eased and preventive measures and economic activity have increasingly been pursued in parallel, partly due to the widespread rollout of COVID-19 vaccinations,」
The disclosure shifted to state that economic activity under the pandemic was recovering as vaccination coverage expanded and restrictions on activity were eased. The impact of the pandemic itself continues to be described. - FY2022SoftenedAnnual report
「The company believes that the impact on the group's business activities and operating results is limited at present. In preparing its consolidated financial statements, the group made accounting estimates based on the assumption that the impact would gradually decline during the following consolidated fiscal year and that cargo volumes would enter a recovery trend.」
Although the risk from infectious diseases continues, the company stated that the impact is limited at present and assumed that the impact would decline and cargo volumes would recover in the following fiscal year. - FY2022-Q3WorsenedAnnual report
「During the cumulative third quarter, personal consumption and other areas of the Japanese economy were on a recovery trend, partly due to the effects of widespread COVID-19 vaccinations. However, the outlook remained uncertain amid concerns about a rapid spread of infections caused by new variants.」
The company indicated a recovery trend in personal consumption and other areas due to vaccinations, while adding concerns about a rapid spread of infections caused by new variants. Uncertainty over the outlook continued. - FY2022-Q2ReframedAnnual report
「During the cumulative second quarter, the Japanese economy was significantly constrained by the rapid spread of COVID-19 and declarations of a state of emergency in various regions, but subsequently began to recover as vaccination coverage expanded. Nevertheless, the outlook remained unpredictable due to the risk of a resurgence in infections and rising raw material prices caused by tight supply and demand.」
Following the rapid spread of infections and restrictions on activity under declarations of a state of emergency, a recovery trend emerged as vaccination coverage expanded. At the same time, the risk of a resurgence in infections and tight raw material supply and demand, together with rising prices, were cited as new sources of uncertainty. - FY2022-Q1ReframedAnnual report
「The effects of COVID-19 have continued for an extended period. Although signs of a partial recovery have emerged with the progress of vaccinations, the situation remains unpredictable as economic activity has been restricted by renewed declarations of a state of emergency and extensions to their duration.」
The company continues to identify the prolonged effects of the pandemic and restrictions on economic activity as ongoing risks, while adding that vaccinations have produced signs of a partial recovery. - FY2021RestatedAnnual report
「In preparing its consolidated financial statements, the group made accounting estimates based on the assumption that conditions in the following consolidated fiscal year would remain highly uncertain and that a significant recovery in cargo volumes would be difficult.」
The company continues to recognize the stagnation of socioeconomic activity caused by COVID-19 and the uncertainty surrounding a recovery in cargo volumes, while also stating that the impact on business activities and operating results is limited. - FY2021-Q3ReframedAnnual report
「The company revised its assumption that the stagnation of socioeconomic activity caused by the spread of COVID-19 would continue through the end of the second quarter and that economic activity would recover to some extent in the third quarter, but would temporarily stagnate again from the fourth quarter onward. However, the company believes that the impact on the group's business activities and operating results is limited at present, has identified no indications of impairment of property, plant and equipment, and determined that no additional valuation allowance for deferred tax assets is necessary. Nevertheless, if a more serious spread of infection occurs in Japan or other countries, domestic and import and export cargo volumes could decline significantly, potentially affecting the group's operating results and other matters.」
The company indicated an expected partial recovery in economic activity in the third quarter, while also pointing to temporary renewed stagnation from the fourth quarter onward and the possibility of lower cargo volumes in the event of a more serious outbreak. It also stated that the impact on business activities and operating results is limited at present. - FY2021-Q2WorsenedAnnual report
「However, if a more serious spread of infection occurs in Japan or other countries, the volume of domestic cargo and import and export cargo could decline significantly, potentially affecting the group's operating results and other matters.」
The company indicated signs that the containment of infections could take longer and that infections could resurge globally, adding that a more serious outbreak could cause a significant decline in domestic and import and export cargo volumes. - FY2021-Q1MaterialisedAnnual report
「During the cumulative first quarter, the Japanese economy remained in extremely difficult circumstances. Corporate economic activity and personal consumption were significantly restricted by business closures and requests to refrain from going out following the declaration of a state of emergency in response to the spread of COVID-19, while inbound demand also declined.」
Restrictions on corporate activity and personal consumption caused by COVID-19, declining inbound demand and lower cargo volumes have emerged as actual impacts on the business environment and operating performance. The accounting estimates also describe the possibility of additional effects from a resurgence of infections. - FY2020First statedAnnual report
「The possibility that employees of the group may become infected as the disease spreads cannot be ruled out. In that event, the group may have difficulty carrying out its ordinary operations and continuing its business, which could affect its operating results and other matters.」
COVID-19 was first presented separately as a major risk, including the possibility that employee infections could make ordinary operations and business continuity difficult, as well as the possibility of a slowdown in the global economy and lower domestic and international cargo volumes.