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)
Foreign exchange forward contracts relating to imported materials denominated in foreign currencies (the primary fuel for woody biomass power generation)
Fluctuations in foreign exchange rates and other factors
¥793 million (non-operating income). The ¥7,076 million valuation gain at the end of the previous consolidated fiscal year was reversed and recognized as non-operating expense, while the ¥7,869 million valuation gain at the end of the current interim period was recognized as non-operating income, resulting in the difference.
The second quarter (interim period) of the fiscal year ending November 2026 (1 December 2025 to 31 May 2026)
The outstanding balance of unsettled 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 fair-value gain or loss on these foreign exchange forward contracts will also be ¥0 in that year. In addition, the cumulative amount of derivative valuation gains and losses on these foreign exchange forward contracts recognized from 2017 and from 2025 through 2039 will also be ¥0 as a result of the reversal process.
| Item | Details |
|---|---|
| Event name | Recognition of Non-Operating Income (Gain on Valuation of Derivatives) |
| Date of occurrence | 31 May 2026 (end of the second quarter (interim period) of the consolidated accounting period) |
| Subject Entity | サーラｅパワー株式会社 (a consolidated subsidiary of the Company) |
| Target Locations / Products | Foreign exchange forward contracts relating to imported materials denominated in foreign currencies (the primary fuel for woody biomass power generation) |
| Cause | Fluctuations in foreign exchange rates and other factors |
| Amount of Impact on Business Performance | ¥793 million (non-operating income). The ¥7,076 million valuation gain at the end of the previous consolidated fiscal year was reversed and recognized as non-operating expense, while the ¥7,869 million valuation gain at the end of the current interim period was recognized as non-operating income, resulting in the difference. |
| Accounting period in which recognized | The second quarter (interim period) of the fiscal year ending November 2026 (1 December 2025 to 31 May 2026) |
| Outlook | The outstanding balance of unsettled 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 fair-value gain or loss on these foreign exchange forward contracts will also be ¥0 in that year. In addition, the cumulative amount of derivative valuation gains and losses on these foreign exchange forward contracts recognized from 2017 and from 2025 through 2039 will also be ¥0 as a result of the reversal process. |
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 valuation gain arose as a result of movements in foreign exchange rates and other factors. The foreign exchange forward contracts were entered into to reduce foreign exchange risk associated with purchases of imported materials denominated in foreign currencies.