Foreign Exchange Risk in the EV Business and Overseas Subsidiaries
First written in FY2023. 2 of 3 entries say "Reframed", first in FY2024. Latest entry: FY2026.
Quantum Solutions moved to the "Worse" side of this theme in 2024, 7 years after the typical company in this theme (2017).
The whole theme swung hardest in 2019: 71 of 124 companies on the "Worse" side.
2 other companies' latest entry also says "Reframed".
- FY2026ReframedAnnual report
「Our group also has overseas subsidiaries, and some transactions, assets and financing may be denominated in foreign currencies. Accordingly, foreign-exchange fluctuations when translating into yen may affect the financial position and operating results of our group.」
Foreign-exchange risk has expanded beyond EV component procurement and sales and GPU server procurement to digital assets and the assets, transactions and financing of overseas subsidiaries generally. - FY2024ReframedAnnual report
「In our system solutions business, procurement of GPU servers depends on overseas entities, exposing procurement prices to foreign-exchange fluctuations when translated into yen. If sales proceeds are held in foreign currency, we will also remain exposed to foreign-exchange fluctuations after sales.」
Foreign-exchange risk has expanded from the EV business's procurement in Japan and China and production and sales in Thailand to the AI-related business, including GPU server procurement dependent on overseas entities and the holding of foreign currency. - FY2023First statedAnnual report
「In our EV business, some components are procured from Japan and China, contract manufacturing is conducted in Thailand, and the EVs produced are initially planned to be sold in Thailand. Throughout this process, from component procurement through sales, we are exposed to foreign-exchange fluctuations when translated into yen. We will also remain exposed to foreign-exchange fluctuations after sales if we continue to hold the sales proceeds in foreign currency.」
Foreign-exchange fluctuation risk arising from the EV transaction process of procuring components from Japan and China and conducting contract manufacturing and sales in Thailand, as well as from holding foreign currency, has been identified separately for the first time.