Risk of Demand Decline and Business Location Closures Due to a Novel Viral Infection
First written in FY2020. 7 of 13 entries say "Materialised", first in FY2021-Q1. Latest entry: FY2026.
The whole theme swung hardest in 2020: 103 of 175 companies on the "Worse" side.
- FY2026RestatedAnnual report
「Our business group operates at locations spread over a wide area, thereby diversifying risks associated with natural disasters and infectious disease outbreaks occurring in specific areas. However, if we suffer catastrophic damage beyond our assumptions, our business activities may be restricted, affecting our operating results and financial position.」
The risks of natural disasters and infectious disease outbreaks, as well as risk diversification through the geographic dispersion of business locations, have been reconfirmed. - FY2023MitigatedAnnual report
「During the current consolidated fiscal year, progress toward the normalization of social and economic activity in Japan accelerated as vaccination against the novel virus infection became more widespread and restrictions on activities were eased.」
The text states that the spread of vaccinations and the easing of restrictions on activities accelerated progress toward the normalization of social and economic activity. It does not state that the risk of infectious disease has been eliminated, and the possibility of declining demand and the closure of business locations continues to be listed under risks. - FY2023-Q3MitigatedAnnual report
「During the third quarter, Japan's economy moved further toward the normalization of social and economic activity as vaccination against the novel virus infection became more widespread and restrictions on activities were eased, and the economy is gradually recovering.」
The text states that the spread of vaccinations and the easing of restrictions on activities are advancing progress toward the normalization of social and economic activity. It does not state that the risk of infectious disease has been eliminated, and other uncertain factors continue. - FY2023-Q2MitigatedAnnual report
「During the second quarter, Japan's economy moved further toward the normalization of social and economic activity as vaccination against the novel virus infection became more widespread and restrictions on activities were eased, and the economy is gradually recovering.」
The spread of vaccinations and the easing of restrictions on activities indicated progress toward the normalization of social and economic activity. The text does not state that the risk of infectious disease has been eliminated, and other uncertain factors, including resource prices and exchange-rate fluctuations, continue. - FY2023-Q1MitigatedAnnual report
「During the first quarter, Japan's economy showed signs of moving toward the normalization of social and economic activity as restrictions on activities associated with the spread of the novel virus infection were eased.」
Restrictions on activities associated with the spread of the infectious disease were eased, indicating progress toward the normalization of social and economic activity. The text does not state that the risk of infectious disease has been eliminated, and other uncertain factors continue. - FY2022MaterialisedAnnual report
「During the current consolidated fiscal year, Japan's economy showed signs of a gradual recovery as vaccination progressed, despite the intermittent impact of the spread of the novel virus infection and the resulting restrictions on activities, which continued from the previous fiscal year.」
Although the effects of the spread of the infectious disease and restrictions on activities continued throughout the year, a recovery supported by vaccinations was also noted. The risk of infectious disease continues to be reflected in the actual business environment. - FY2022-Q3MaterialisedAnnual report
「With the spread of new variants also a factor, the outlook for the domestic economy remains uncertain. The situation also remains unpredictable due to the impact of the semiconductor shortage on various industries and soaring resource prices, including crude oil prices.」
The spread of new variants of the infectious disease has emerged in the actual economic environment, and economic uncertainty continues. The semiconductor shortage and soaring resource prices are also cited as factors affecting the business environment. - FY2022-Q2MaterialisedAnnual report
「In the second quarter, Japan’s economy remained in difficult conditions as the state of emergency was extended due to the spread of the novel viral infectious disease, personal consumption stagnated, and economic activity was restricted.」
The extension of the state of emergency due to the spread of the infectious disease, stagnant personal consumption, and restrictions on economic activity continued as actual business conditions in the current quarter. At the same time, the company also reported signs of improvement from progress in vaccinations and the lifting of the state of emergency. - FY2022-Q1MaterialisedAnnual report
「In the first quarter, Japan’s economy remained under restrictions on social and economic activity due to the spread of the novel viral infectious disease. Some signs of improvement emerged in manufacturing, including profit levels exceeding those before the spread of the disease. However, the outlook for the economy remained uncertain due to the emergence of highly transmissible variants and repeated declarations of a state of emergency.」
The infectious disease risk continued to affect the actual business environment through restrictions on social and economic activity, variants, and declarations of a state of emergency. At the same time, the company also reported some improvement, including profit levels in manufacturing exceeding those before the spread of the disease. - FY2021MaterialisedAnnual report
「The spread of the novel viral infectious disease resulted in capital investment being postponed or canceled in various fields, and supply and demand deteriorated substantially. ... Stainless steel production in calendar 2020, on a hot-rolled steel products basis, fell 18.6% year on year to 2.172 million tonnes, a substantial decline from the previous year.」
The postponement or cancellation of capital investment, deterioration in supply and demand, weak market conditions, and difficult conditions in the domestic distribution market caused by the infectious disease also materialized over the full year. - FY2021-Q3MaterialisedAnnual report
「In the stainless steel industry to which the company group belongs, capital investment was postponed or canceled in various fields due to the spread of the novel viral infectious disease, and supply and demand deteriorated substantially. Although some product categories saw price increases due to rising nickel prices, the stainless steel market was generally weak, and difficult conditions continued in the domestic distribution market.」
The postponement or cancellation of capital investment, substantial deterioration in supply and demand, weak market conditions, and difficult conditions in the domestic distribution market caused by the spread of the infectious disease continued into the third quarter. - FY2021-Q1MaterialisedAnnual report
「In the stainless steel industry in which our corporate group operates, capital investment was postponed or canceled in various fields due to the spread of the novel coronavirus infection, and supply and demand deteriorated sharply. The stainless steel market weakened, and the domestic distribution market faced extremely challenging conditions.」
The decline in demand caused by the infectious disease, identified as a major risk in the previous period, has materialized in the current quarter through postponed or canceled capital investment, deteriorating supply and demand, weak market conditions, and deterioration in the domestic distribution market. - FY2020First statedAnnual report
「However, if the situation continues or the infection spreads further, the temporary closure of business sites due to infections among employees and declining demand in various fields resulting from deterioration in domestic and overseas economic conditions could affect the operating results and financial position of the company group.」
In response to the global spread of the novel viral infectious disease, the company identified business site closures due to employee infections and deteriorating domestic and overseas economic conditions and declining demand as new major risks. It stated that the impact on current-period results was limited.