Foreign Exchange and Interest Rate Fluctuation Risks and Hedging Measures

「為替差損 - 90」

「Non-operating expenses Foreign exchange losses 1,042 443」

「Non-operating income Share of profit of investments accounted for using the equity method 68 82 Foreign exchange gains - 54」

「The Group has established an operating structure designed to minimise the impact of foreign exchange fluctuations on its business performance by implementing foreign exchange forward contracts based on a set policy and revising sales prices in consideration of changes in procurement prices caused by foreign exchange fluctuations, among other measures.」

「Non-operating expenses Foreign exchange losses 923 113」

「Non-operating expenses Foreign exchange loss 1,751 1,609」

「Non-operating expenses Foreign exchange loss 1,928 1,262」

「Non-operating expenses Foreign exchange loss 1,431 923」

「Non-operating expenses Foreign exchange loss 797 467」

「Non-operating expenses Foreign exchange loss 873 1,751」

「Non-operating expenses Foreign exchange loss 554 1,928」

「Non-operating expenses Foreign exchange loss 351 1,431」

「Non-operating expenses Foreign exchange loss 289 797」

「Non-operating expenses Foreign exchange loss 68 873」

「Non-operating expenses Foreign exchange loss - 554」

「Non-operating income Foreign exchange gain 64 - Non-operating expenses Foreign exchange loss - 351」

「Non-operating expenses Foreign exchange loss - 289」

「In response, the Group has established an operating structure to minimize the impact of foreign exchange movements on performance through measures such as entering into foreign exchange forward contracts based on a defined policy and revising selling prices to reflect fluctuations in purchase prices caused by foreign exchange movements.」

「Non-operating income Share of profit of entities accounted for using the equity method 57 Foreign exchange gain - 44 Other 94」

「Non-operating income　Foreign exchange gain　－　64　Non-operating expenses　Foreign exchange loss　39　－」

「Ordinary profit was ¥669 million, up 2.4% year on year, and profit attributable to owners of the parent was ¥433 million, up 8.0% year on year, due in part to the recording of a foreign exchange gain.」

「Foreign exchange loss 315 257」

「Foreign exchange loss 405 180」

「There were no material changes during the second quarter of the current consolidated cumulative period in abnormal fluctuations in the financial position, results of operations or cash flows, or in the matters concerning risks of the business described in the annual securities report for the previous fiscal year.」

「Although the Computer Systems business performed strongly, revenue was ¥32,629 million, down 2.7% year on year, and operating profit was ¥716 million, down 4.5% year on year, due mainly to continued sluggish demand for semiconductors and electronic devices amid uncertainty over the economic outlook. However, ordinary profit was ¥654 million, up 12.8% year on year, and profit attributable to owners of the parent was ¥401 million, up 9.7% year on year, due in part to a decrease in foreign exchange losses.」

「Non-operating expenses Interest expense 182 Foreign exchange loss 315」

「Non-operating expenses Interest expense 139 Foreign exchange loss 405」

「Non-operating expenses Interest expense 66 96 Foreign exchange loss - 252」

「Non-operating expenses Interest expense 32 52 Foreign exchange loss - 122」

「Net non-operating expenses decreased by ¥169 million from the previous fiscal year to ¥117 million. The main reason for the decrease was that the Group recorded a foreign exchange loss of ¥220 million in the previous fiscal year, whereas it recorded a foreign exchange gain of ¥47 million in the current consolidated fiscal year.」

「Non-operating expenses Interest expense 76 102 Foreign exchange loss - 187」

「There were no material changes during the second quarter of the current consolidated cumulative period in abnormal fluctuations in the financial position, results of operations or cash flows, or in the matters concerning risks of the business described in the annual securities report for the previous fiscal year.」

「There were no material changes during the first quarter of the current consolidated cumulative period in abnormal fluctuations in the financial position, results of operations or cash flows, or in the matters concerning risks of the business described in the annual securities report for the previous fiscal year.」

「Non-operating expenses, net, increased by ¥425 million from the previous fiscal year to ¥287 million. The main reason for the increase was that the Group recorded a foreign exchange gain of ¥181 million in the previous fiscal year, whereas it recorded a foreign exchange loss of ¥220 million in the current fiscal year.」

「For the Group's consolidated cumulative results for the first 3 quarters of the current fiscal year, revenue was ¥93,818 million, up 8.7% year on year, while operating profit was ¥428 million, down 59.5% year on year, and ordinary profit was ¥459 million, down 46.5% year on year, due to changes in the sales mix and the impact of foreign exchange movements in the Semiconductors and Electronic Devices business, among other factors.」

「Gross profit declined due to changes in the sales mix and sharp foreign exchange movements in the Semiconductors and Electronic Devices business, resulting in an operating loss of ¥128 million, compared with operating profit of ¥788 million in the same period of the previous year.」

「Meanwhile, due to changes in the product mix and sharp foreign exchange movements, segment loss (ordinary loss) was ¥8 million, compared with segment profit of ¥373 million in the same period of the previous year.」

「To address fluctuations in purchase prices caused by foreign exchange movements, the Group takes measures such as revising selling prices based on purchase price trends. However, sharp foreign exchange movements may affect the Group's performance. The Group also finances part of its working capital through borrowings from financial institutions and seeks to mitigate interest rate risk by diversifying its funding sources and taking other measures. However, sharp interest rate movements may affect the Group's performance.」