Recognition of Non-Operating Income (Gain on Valuation of Derivatives)
サーラｅパワー株式会社 (a consolidated subsidiary of the Company)
Imported materials denominated in foreign currencies; electricity sales from woody biomass power generation using imported materials as its primary fuel
Fluctuations in foreign exchange rates and other factors
¥313 million (non-operating income), representing the net amount after offsetting the non-operating expense arising from the reversal of the ¥7,076 million valuation gain at the end of the previous consolidated fiscal year against the ¥7,389 million valuation gain at the end of the current period
The first quarter of the fiscal year ending November 2026 (1 December 2025 to 28 February 2026)
The outstanding balance of the foreign exchange forward contracts will decrease as the business progresses and will reach ¥0 in 2039, the final year of application of the Feed-in Tariff Scheme. The gain or loss on fair value measurement of these foreign exchange forward contracts in that year will also be ¥0, and the cumulative amount of gains and losses on derivative valuation recognized in 2017 and from 2025 through 2039 will also be ¥0.
| Item | Details |
|---|---|
| Event name | Recognition of Non-Operating Income (Gain on Valuation of Derivatives) |
| Date of occurrence | 28 February 2026 (the date of fair value measurement of the outstanding foreign exchange forward contracts at the end of the first quarter of the current consolidated cumulative period) |
| Subject Entity | サーラｅパワー株式会社 (a consolidated subsidiary of the Company) |
| Target Locations / Products | Imported materials denominated in foreign currencies; electricity sales from woody biomass power generation using imported materials as its primary fuel |
| Cause | Fluctuations in foreign exchange rates and other factors |
| Amount of Impact on Business Performance | ¥313 million (non-operating income), representing the net amount after offsetting the non-operating expense arising from the reversal of the ¥7,076 million valuation gain at the end of the previous consolidated fiscal year against the ¥7,389 million valuation gain at the end of the current period |
| Accounting period in which recognized | The first quarter of the fiscal year ending November 2026 (1 December 2025 to 28 February 2026) |
| Outlook | The outstanding balance of the foreign exchange forward contracts will decrease as the business progresses and will reach ¥0 in 2039, the final year of application of the Feed-in Tariff Scheme. The gain or loss on fair value measurement of these foreign exchange forward contracts in that year will also be ¥0, and the cumulative amount of gains and losses on derivative valuation recognized in 2017 and from 2025 through 2039 will also be ¥0. |
Items this document does not state (17)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The outstanding balance of the foreign exchange forward contracts was measured at fair value due to fluctuations in foreign exchange rates and other factors. The contracts were entered into to reduce foreign exchange risk associated with the purchase of imported materials denominated in foreign currencies.