Sapporo Factory Fire and Business Continuity Measures｜May 27, 2026

Overview of the Fire and Response Measures

On February 16, 2026, a fire occurred at Warabe-ya Nippi Holdings’ consolidated subsidiary Warabe-ya Hokkaido's Sapporo Factory, resulting in one minor injury, and partial destruction of buildings and manufacturing equipment. The cause is attributed to a combination of operator error involving gas equipment and equipment failure, with investigations and preventive measures being implemented by external specialists. Gas equipment inspections and safety measures are being reinforced across all factories, and employee training is also underway. Operations are halted, and recovery is expected to take time.

Impact on Business and Future Outlook

While operations are suspended due to the damage, manufacturing has been transferred to Warabe-ya Kushiro Factory in Hokkaido, and production of prepared bread has temporarily resumed at the Sapporo Nishi Factory. The impact on consolidated performance for the fiscal year ending February 2027 is expected to be limited, with ongoing assessments of recovery costs and timelines. The company maintains insurance coverage, though the amount of insurance proceeds remains undecided. Further disclosures will be made promptly if necessary.