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 SALA CORPORATION
Foreign-currency-denominated imported materials (the primary fuel for woody biomass power generation) and related foreign exchange forward contracts
Fluctuations in foreign exchange rates and other factors
¥1,021 million (non-operating income)
Third-quarter consolidated accounting period for the fiscal year ending November 2026 (1 December 2025 to 31 August 2026)
The unsettled balance of the foreign exchange forward contracts will decline as the business progresses and reach ¥0 in 2039, the final year of the application of the feed-in tariff scheme. The fair value gains and losses on those foreign exchange forward contracts in the same year will also be ¥0, and all derivative valuation gains and losses recognized in 2017 and from 2025 through 2039 will be offset against each other through the wash-out treatment, resulting in a cumulative amount of ¥0.
| Item | Details |
|---|---|
| Event name | Recognition of Non-Operating Income (Gain on Valuation of Derivatives) |
| Date of occurrence | 31 August 2026 (end of the current third-quarter consolidated accounting period) |
| Subject Entity | サーラｅパワー株式会社, a consolidated subsidiary of SALA CORPORATION |
| Target Locations / Products | Foreign-currency-denominated imported materials (the primary fuel for woody biomass power generation) and related foreign exchange forward contracts |
| Cause | Fluctuations in foreign exchange rates and other factors |
| Amount of Impact on Business Performance | ¥1,021 million (non-operating income) |
| Accounting period in which recognized | Third-quarter consolidated accounting period for the fiscal year ending November 2026 (1 December 2025 to 31 August 2026) |
| Outlook | The unsettled balance of the foreign exchange forward contracts will decline as the business progresses and reach ¥0 in 2039, the final year of the application of the feed-in tariff scheme. The fair value gains and losses on those foreign exchange forward contracts in the same year will also be ¥0, and all derivative valuation gains and losses recognized in 2017 and from 2025 through 2039 will be offset against each other through the wash-out treatment, resulting in a cumulative amount of ¥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.Because fluctuations in exchange rates and other factors resulted in a fair value gain on foreign exchange forward contracts. The forward contracts were entered into to reduce the risk of exchange rate fluctuations associated with purchases of foreign-currency-denominated imported materials.