The Group owns manufacturing sites not only in Japan but also in overseas countries, including Southeast Asia and China, supplying our products for customers across the globe through sales offices in each country. Accordingly, in the event of unpredictable natural disasters, including earthquakes, tsunamis, fires, and floods, and pandemics of infectious diseases; or man-made disasters, including fires, explosions, transportation accidents, wars, unrest, and riots, facilities and equipment of the Group’s business locations may be subject to damage and its employees’ injury or death, resulting in the possible suspension of business operations. Furthermore, operations and work may be disrupted not only at Group business locations but also at parts and components suppliers, client locations and logistics centers, causing an adverse impact on the Group’s business operations, operating results, and financial position.
In addressing these risks, the Group has prepared various manuals for responding to crisis situations. In preparation for emergencies, the Group also conducts disaster drills, business continuity plan (BCP) drills as well as safety confirmation drills as it makes daily efforts to enhance disaster preparedness among officers and employees. The Group is working across the organization to move forward with Business Continuity Management (BCM) that will ensure the continuity, early recovery from disasters, and the prompt resumption of production, shipments, and services in order to minimize risk.
In addition, there is still no clear outlook on when the new coronavirus infection will be contained, and stagnation of economic activities and its prolonged impact on demand, among other factors may continue to adversely affect the Group's business, performance, and financial position. The Group has continuously held the Contingency Planning and Preparedness Office since January 2020 in order to deal with the pandemic in accordance with its crisis management regulations, and developed measures that placed the highest priority on ensuring employees’ well-being and safety as well as preventing infection within our companies through end-to-end hygiene control in our business offices and promotion of remote working. While limiting the number of people in the workplace in accordance with the policy of Japanese government, the Group has been able to continue its operations in Japan without closing any of its locations. As a result, we have been able to reduce the number of cluster infections to zero in Japan. Also in overseas countries, we have been making efforts to prevent the infection of the novel Coronavirus in compliance with the applicable regulations of each country. As a result, the Group has been able to minimize suspension of domestic and overseas factory operations due to infection.
We are also promoting activities to minimize the impact of shutdowns on the Group by complying with local regulations at our plants in Japan and overseas.
However, for infectious desease, natural disasters, and man-made disasters, even if the Group were to implement the best possible measures a corporate group could take, it would be difficult to completely avoid these risks. If the Group suffers damage that is greater than expected, it may have a negative impact on its business operations, operating results, and financial position.