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Business and Other Risks

7. Natural Disasters and Unforeseen Incidents

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 training. Based on the lessons learned from the Great East Japan Earthquake and the 2016 Kumamoto Earthquake, we also strengthen countermeasures in our workplaces such as by conducting procedures and site inspections to enhance our ability to withstand earthquakes.

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 global climate change. Going forward, there is also a possibility that unforeseen events (i.e. major earthquakes in the Tokyo metropolitan area, Tokai district or along the Nankai Trough, outbreaks of infectious diseases, and volcanic eruptions) may occur on a scale that exceeds estimation of damage which is determined by well-considered BCP.

In such cases, there is a possibility that the Group may be forced to suspend the delivery of products and services to customers 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.

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