Inventory Tightness Caused by Natural Disasters, Infrastructure Outages and Logistics Disruptions
First written in FY2019-Q2. 3 of 10 entries say "Materialised", first in FY2020-Q2. Latest entry: FY2026.
Kyodo Paper Holdings moved to the "Worse" side of this theme in 2019, the same year as the typical company in this theme.
The whole theme swung hardest in 2026: 14 of 35 companies on the "Worse" side.
4 other companies' latest entry also says "Other".
- FY2026Increase in the number of locationsAnnual report
「The Group has 8 locations nationwide, including its head office and subsidiaries, and conducts community-based sales activities. However, if a major earthquake, natural disaster or new infectious disease occurs, restrictions on sales activities in surrounding areas, lost sales opportunities due to logistics disruptions, damage to facilities and merchandise, declining sales, increased credit risk involving business partners and other factors may affect the Group's results.」
The exposure to business continuity risks from natural disasters, infectious diseases and other events is disclosed based on 8 locations nationwide. - FY2022ReframedAnnual report
「The Group has 6 locations nationwide and conducts community-based sales activities. However, if a major earthquake, natural disaster or new infectious disease occurs, restrictions on sales activities in surrounding areas, lost sales opportunities due to logistics disruptions, damage to facilities and merchandise, declining sales, increased credit risk involving business partners and other factors may affect the Group's results.」
The business continuity risk has been reorganized from the effects of individual natural disasters, such as past typhoons and warehouse flooding, to encompass earthquakes, natural disasters and new infectious diseases. - FY2020MaterialisedAnnual report
「In connection with the flooding damage at a logistics warehouse caused by Typhoon Hagibis in October 2019, ¥113 million in disaster losses was recorded as an extraordinary loss, and ¥115 million in insurance proceeds under a property insurance contract was recorded as an extraordinary gain.」
For the warehouse flooding caused by Typhoon Hagibis, which had been disclosed since the previous fiscal year, disaster losses of ¥113 million and insurance proceeds of ¥115 million were actually recognized in full-year profit or loss. - FY2020-Q3MaterialisedAnnual report
「Insurance proceeds received － 115,236 Losses from disaster － 113,324」
For the natural disaster whose damage was still being assessed at the time of the previous quarterly report, losses from disaster of ¥113.324 million and insurance proceeds received of ¥115.236 million were actually recognized in profit or loss for the cumulative third quarter. - FY2020-Q3MitigatedAnnual report
「Although efforts were made to resolve supply shortages through the implementation of price revisions, domestic paper demand fell sharply after the consumption tax increase, and domestic shipments remained sluggish.」
It is stated that each manufacturer worked to resolve supply shortages, indicating progress in addressing supply-side constraints. - FY2020-Q2MaterialisedAnnual report
「Due to the effects of Typhoon Hagibis, which made landfall in the Tokyo metropolitan area on 12 October 2019, a tributary of the Arakawa River flooded, inundating the warehouse of our subsidiary Kanto Ryutsu Co., Ltd. (Toda, Saitama Prefecture). Inventory stored on the first floor and goods held on behalf of business partners were damaged. The amount of damage caused by the typhoon is currently being assessed, and losses from disposal of goods and other items, as well as insurance proceeds, are expected to arise.」
The effects of natural disasters on logistics and inventory actually occurred in the form of flooding at a subsidiary's warehouse and damage to inventory and goods held on behalf of others. The amount of damage is being assessed, and losses from disposal and other expenses, as well as insurance proceeds, are expected to arise. - FY2020-Q1RestatedAnnual report
「The paper industry continues to face a distorted environment in which domestic paper demand is declining at an accelerating pace while supply remains insufficient to meet demand, and a well-balanced, stable supply system is awaited.」
The recognition that declining demand and supply shortages are continuing has been reiterated. The difficulty of securing inventory is also mentioned. - FY2019WorsenedAnnual report
「In the paper industry, supply shortages continue because the effects of the natural disasters that occurred one after another last year have persisted, and fires and other incidents at paper mills have occurred frequently since the beginning of the year.」
It is stated that the prolonged effects of natural disasters and frequent fires and other incidents at paper mills have caused supply shortages to continue. The existing risk of tightening inventories has become more specific in the form of supply shortages. - FY2019-Q3RestatedAnnual report
「In the paper industry, the effects of successive natural disasters have persisted, leaving inventories tight. In addition, paper manufacturers have implemented substantial price revisions since January 2019 to cover increases in raw-material, fuel and logistics costs.」
The recognition that the effects of natural disasters have persisted and that inventory remains tight has been reiterated. Price revisions and increases in raw material, fuel and logistics costs also relate to the existing risk of passing through higher costs. - FY2019-Q2First statedAnnual report
「In the paper industry, the effects of successive natural disasters continue to be felt in the form of tight inventories due to infrastructure shutdowns and disruptions to logistics. Along with higher raw-material prices and logistics costs, pricing policies are being closely watched.」
The risk that natural disasters would actually cause infrastructure outages and logistics disruptions, leaving inventories tight, was identified as a standalone theme for the first time.