Foreign Exchange Risk Associated with Foreign-Currency-Denominated Purchases and Foreign Exchange Forwards
First written in FY2016. 5 of 8 entries say "Restated". Latest entry: FY2027-H1.
DCM Holdings moved to the "Worse" side of this theme in 2026, 4 years after the typical company in this theme (2022).
The whole theme swung hardest in 2022: 43 of 67 companies on the "Worse" side.
8 other companies' latest entry also says "Worsened".
- FY2027-H1WorsenedAnnual report
「Although DCM-branded products have been affected by higher procurement prices resulting from surging raw material prices and the weaker yen, as well as rising logistics costs」
Higher procurement prices resulting from the weaker yen continued to be cited as an actual impact on DCM-branded products. No measures involving foreign exchange forward contracts were mentioned in this filing. - FY2024RestatedAnnual report
「In response to these risks, our Group is working to mitigate them by entering into forward exchange contracts.」
The risk of foreign exchange fluctuations associated with purchases denominated in foreign currencies and the response using forward exchange contracts were reconfirmed. - FY2023RestatedAnnual report
「In response to these risks, our Group is working to mitigate them by entering into forward exchange contracts.」
The risk of foreign exchange fluctuations associated with purchases denominated in foreign currencies and the mitigation measures using forward exchange contracts were reconfirmed. - FY2023-Q1WorsenedAnnual report
「During the cumulative first quarter of the current consolidated fiscal year, the Japanese economy has shown increasing uncertainty about the outlook due to inflationary pressures from the surge in energy and raw material prices following Russia's invasion of Ukraine, the rapid depreciation of the yen resulting from the widening interest rate differential between Japan and the United States, and supply chain disruptions, despite the easing of the COVID-19 pandemic.」
The rapid depreciation of the yen resulting from the widening interest rate differential between Japan and the United States, together with surging energy and raw material prices and supply chain disruptions, was cited as a factor increasing inflationary pressures. - FY2021RestatedAnnual report
「The Group makes purchases denominated in foreign currencies and is exposed to risks from fluctuations in exchange rates, but enters into forward exchange contracts to reduce this risk.」
The Group reconfirmed the foreign-exchange risk associated with foreign-currency purchases and the use of forward exchange contracts to address it. - FY2018RestatedAnnual report
「The Group makes purchases denominated in foreign currencies and is exposed to risks from fluctuations in exchange rates, but enters into forward exchange contracts to reduce this risk.」
The Group reconfirmed its use of forward exchange contracts to manage the foreign-exchange risk associated with foreign-currency purchases. - FY2017RestatedAnnual report
「The Group makes purchases denominated in foreign currencies and is exposed to risks from fluctuations in exchange rates, but enters into forward exchange contracts to reduce this risk. Accordingly, it believes that the impact of short-term foreign-exchange movements on its results is limited, although its results may be affected if exchange-rate movements exceed expectations.」
The Group reiterated that it enters into forward exchange contracts to manage the foreign-exchange risk associated with foreign-currency purchases and considers the short-term impact limited. - FY2016MitigatedAnnual report
「The Group enters into forward exchange contracts to reduce this risk. Accordingly, it believes that the impact of short-term foreign-exchange movements on its results is limited.」
The Group uses forward exchange contracts to manage the foreign-exchange risk on foreign-currency-denominated accounts payable and explained that the short-term impact is limited.