Second Report Concerning Impact of the Heavy Rainfall in July, 2018

We extend our deepest sympathies to all those who have been affected by the recent heavy rainfall.

Many districts in Hiroshima Prefecture where our plants are located are still affected by the heavy rainfall. We have confirmed that facilities and equipment at our Hiroshima Operations—Kure Production Department (Hirokoshingai, Kure City), Gohara Production Department (Goharacho, Kure City), and Shiwa Production Department (Shiwahigashi, Higashihiroshima City)—have not been damaged, and it is possible to secure water necessary for production activities. We have therefore recommenced operations since July 11.

We were able to secure our supply of water by using shuttles of water tanks to transport water from our Gohara Production Department. Finding methods to bring those employees who have difficulties making their way to work back to the workplace is still an issue. We have started operations with those employees who can make their way to work, while we continue to strike a balance between reestablishing the livelihoods of our employees and making sure they can commute to work safely.

However, as reported in the media, the area around Kure Production Department continues to suffer from water outage. Roads in the vicinity of our production departments, including Kure, are still severed, making it difficult to transport materials and for some employees to make their ways to work. We will continue to make detailed assessments of the impact, and will provide further reports of the disaster situation and circumstances regarding our product offering and so forth when these details become available.

We expect the situation regarding road closures to improve with time due to the government’s diligent recovery efforts. Our entire company will put in our best efforts so that things can return to normal as early as possible.