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Business and Other Risks

7. Natural Disasters and Unforeseen Incidents

Natural disasters and other unforeseen situations could have a major impact on the business results and financial standing of the Fujitsu Group. Examples of the potential risks posed are found below.

7-1. Damage from Earthquakes, Other Natural Disasters and Accidents

Fujitsu group established the company-wide disaster prevention organization and is regularly conducting various kinds of trainings. Having dealt with the Great East Japan Earthquake, we have also taken steps to make our sites resistant to earthquakes and we conduct regular site inspections, along with disaster-readiness drills. Furthermore, the Fujitsu Group has instituted a Business Continuity Plan (BCP), which is continually reviewed and improved, to ensure that, even in the event of natural disasters like earthquakes, major floods, or volcanic eruptions, as well as accidents or the outbreak of infectious diseases like new forms of influenza, we can continue our critical business operations to fulfill our corporate social responsibility, while at the same time continuing to provide a stable flow of high-quality, highly reliable products and services, which our customers rely on for their business. However, in recent years, the frequency and impact of natural disasters such as typhoons, water disasters, and heavy snows have been increasing due to the global climate change. Going forward, there is also a possibility that unforeseen events may occur, such as major earthquakes in the Tokyo metropolitan area or along the Nankai Trough, terrorist attacks, power outages due to incidents, outbreaks of infectious diseases, and volcanic eruptions. In such cases, there is a possibility that the Group may be forced to suspend the delivery of products and services to customers or its support for customer information systems in the event an unforeseen natural disaster or accident forces sites to suspend operations, inflicts damage to facilities and equipment, interrupts the supply of electricity or water, disrupts public transportation or communications infrastructure, or causes damage to our supply chains.

7-2. Geopolitical Issues

Armed conflicts, terrorism, demonstrations, strikes, political instability, currency crises, and other events in nations or regions where the Fujitsu Group operates could have a significant impact on its businesses.