Forecasts in recent years have indicated that there is a high possibility of a huge earthquake occurring—e.g., epicentral earthquake in Tokyo, Nankai Trough Mega Earthquake. In addition, climate change caused by global warming tends to increase the frequency and severity of typhoons and other natural disasters. The Nissui Group has established the "Post-disaster BCP (Business Continuity Planning) Subcommittee" under the Risk Management Committee and is reinforcing its structure to deal with ever-increasing uncertainties.

In the Nissui Group, we will promote our business continuity plan in accordance with the following policy in order to continue providing necessary assistance, services, etc., for our employees, customers and stakeholders even in the event of a major disaster by giving top priority to human life.

1. Basic Principles

1. (i) The Nissui Group will make utmost efforts to ensure the safety of human life and prevent secondary disasters with respect to its employees and their families as well as relevant parties.
2. (ii) The Nissui Group will pursue early recovery and continuation of operations in accordance with its predetermined business continuity plan by specifically treating the maintenance of supply chains as a key operation in order to fulfill its social responsibility.
3. (iii) The Nissui Group will make efforts to reconstruct local communities in cooperation and collaboration with regions, including providing relief supplies to local governments and residents in disaster-affected areas.

2. Response in the Event of a Disaster

If a disaster is expected to occur or has occurred, the Nissui Group will set up a local disaster response office at the expected/actual disaster location and establish a disaster management headquarters at Nissui's head office (or a backup location if its head office cannot be used) as the Group's central function, and promptly collect information and take action by collaborating with those at the site and Group companies.

3. Implementation of Education and Training

In order to facilitate activities as an organization in the event of a disaster, the Nissui Group will periodically conduct education and training, and also perform inspections and make improvements aimed at developing its structure, and thereby boost its ability to continue business.

Enactment Date: April 2020

The Post-disaster BCP Subcommittee, set up under the umbrella of the Business Foundation Risks Committee with the aim of development of a disaster BCP framework for Nissui and its Group companies in Japan, convenes four times a year and is chaired by an Executive Officer appointed by the Business Foundation Risks Committee. Furthermore, our preparations for disasters involve distributing the "Disaster Countermeasures Pocket Manual"—which outlines the standards for initial actions when a natural disaster such as an earthquake has occurred—to Nissui and its Group companies in Japan and confirming them periodically in drills, etc.

State in which BCM (Business Continuity Management) is Thoroughly Implemented

(i) Raising the level of initial response capabilities

State in which each individual can take action according to his/her role in concrete terms with respect to initial response in the event of a disaster, leading to the further enhancement of Nissui Group's ability to continue business (plan-do-check-action (PDCA) cycle based on repetition drill and BCP review).

• Raising the individual's level: Strictly enforce basic action
• Raising the organization's level: Strictly enforce action according to its role, boost response speed, etc.

(ii) Raising the level of BCP "local recovery strategy" at each business location

State in which BCP at each business location that was put in place is inspected and reviewed on an ongoing basis, and on top of this, improvements are made and the level is raised successfully.

(iii) Developing BCP "business location substitution strategy"

A state in which a structure that takes disaster risks into consideration has been successfully built in the main businesses.

E-learning Course for Disaster Prevention Education

An e-learning course targeted at all employees of Nissui Corporation is conducted once a year, for the purpose of raising their awareness of disaster prevention and checking their initial responses in the event of a disaster.
In the e-learning course conducted in August 2023, the content focused on improving employees’ ability to respond during disasters and enhancing their awareness of disaster prevention by: (i) gaining general knowledge of disaster preparedness and initial actions; (ii) understanding and verifying communication methods during a disaster; and (iii) ensuring familiarity with the “Basic Policy for Post-disaster BCP.” The course had a participation rate of 94.5%. Also, we sent study materials to employees who had not taken the e-learning course to help them catch up on the course.

Checking of and Drill on Method of Using Safety Confirmation System

A safety confirmation system is a mechanism by which a company promptly identifies whether or not its employees and their families are safe primarily based on a scenario in which a huge earthquake with a maximum seismic intensity of "5 Upper" or higher on Japan Meteorological Agency's Seismic Intensity Scale has occurred. Once a year, employees check that their contact details and other information registered in the system are up to date and engage in a reporting drill according to the actual flow. Since introducing this system, we have been able to confirm the safety of employees and their families in a short period of time when an earthquake has actually occurred, thanks to the system functioning effectively.

Drill at Disaster Management Headquarters

We conduct a drill at the disaster management headquarters once a year, mainly to prepare against the occurrence of a massive earthquake. To promptly establish and activate the disaster management headquarters in the event of an emergency, we conduct various drills under different scenarios, including night-time, holidays, and remote environments, to strengthen initial response capabilities.