Risk of Store, Logistics and Supply Disruptions Due to Natural Disasters

「６月には大雨被害や大規模地震が発生したことで自然災害に対する警戒感が高まり」

「The Group has implemented fire prevention and earthquake resistance measures at major facilities at its business locations, including stores and logistics facilities, and is working to prevent disasters and other events from stopping business activities or disrupting product supplies.」

「As earthquakes and heavy-rain damage occurred in various regions in August and September, awareness of disaster preparedness stockpiles increased, and we continued to promote rolling stock practices.」

「As the need to respond to daily disasters increased, including frequent major earthquakes, the company rebuilt its disaster-supplies sales areas and took measures to ensure that one week’s worth of supplies could be made available.」

「In the restaurant business, despite people leaving the Tokyo metropolitan area during the extended holiday period and adverse weather in the Tokai and Kanto regions in July and October, revenue increased by ¥2,292 million as Tsubohachi Co., Ltd. was included in the scope of consolidation from 1 December 2018.」

「In the restaurant business, CHIMNEY CO.,LTD., a consolidated subsidiary, recorded a 4.7% decline in revenue due to people leaving the Tokyo metropolitan area during the extended holiday period and adverse weather in the Tokai and Kanto regions in July. However, with Tsubohachi Co., Ltd. included in the scope of consolidation from 1 December of the previous year, revenue increased 10.7%.」

「Disaster-related losses 13」

「Although the domestic economy continued to recover gradually during the fiscal year, multiple natural disasters and adverse weather events occurred, including the Northern Osaka Earthquake, typhoon damage in the Tokai region, the Hokkaido Eastern Iburi Earthquake and an unseasonable cold spell.」

「An uncertain situation persisted as multiple disasters occurred, including the Northern Osaka Earthquake, typhoon damage in the Tokai region and the Hokkaido Eastern Iburi Earthquake.」

「Revenue declined as earthquakes, torrential rain, typhoons and other adverse weather affected western Japan, including the Tokai region.」

「Although some stores were affected by the Northern Osaka Earthquake in June, they were restored promptly, enabling sales on an all-store basis to exceed those in the same month of the previous year. The 7 stores opened last year also got off to a smooth start.」

「Losses due to disasters 72」

「Losses due to disasters 72」

「The Group has implemented fire prevention and earthquake resistance measures at major facilities at its business locations, including stores and logistics facilities, and is working to prevent disasters and other events from stopping business activities or disrupting product supplies.」

「If an earthquake, tsunami, wind, flood, snow or other natural disaster exceeding expectations, or a fire, occurs in areas surrounding the Group’s stores and facilities, causing physical damage to products, stores, logistics facilities, information systems or networks and disrupting the Group’s sales, logistics or procurement activities, or causing personal injury, or if nearby customers are unable to visit the stores, this could affect the Group’s business, financial position and operating results.」