Interest Rate Risk on Borrowings
First written in FY2017. 4 of 9 entries say "Restated". Latest entry: FY2027-H1.
Star seeds moved to the "Worse" side of this theme in 2026, 3 years after the typical company in this theme (2023).
The whole theme swung hardest in 2025: 31 of 96 companies on the "Worse" side.
40 other companies' latest entry also says "Worsened".
- FY2027-H1WorsenedAnnual report
「In addition, in June 2026, the company issued the Eighth through Tenth Series of Stock Acquisition Rights by way of a third-party allotment (fixed exercise price, total issue of 120,000 rights and potential shares of 12,000,000). Funding through these stock acquisition rights will be realised in stages through their exercise by the allottees. Accordingly, if exercise does not proceed as expected due to share-price trends or other factors, the planned funding may not be realised, which may affect the securing of business funds and the execution of business plans.」
Funding risks have been specified to include, in addition to upfront investment in new businesses and rising interest rates, funding shortfalls due to failure to achieve the expected exercise of stock acquisition rights and potential share dilution resulting from the exercise of unexercised rights. - 2026-06-08WorsenedShare Issuance and Disposal
「If our share price remains below the respective exercise prices of these stock acquisition rights, the planned allottees may not make progress in exercising them, making fundraising difficult and potentially preventing flexible investment from being carried out.」
The staged fundraising through stock acquisition rights with fixed exercise prices was specifically described as potentially raising less than the planned amount if the share price remains weak. - FY2026ReframedAnnual report
「The GPU server business and grid-scale battery storage business require substantial upfront investment in equipment purchases and construction. Although the Group raises funds through borrowings from financial institutions and other means, it may be unable to raise the funds required on appropriate terms due to disruption in financial markets, deterioration in the Group's credit standing or other factors. In addition, if future interest rate increases raise funding costs, this may affect the Group's business performance and financial position.」
The description of interest rate fluctuation risks on borrowings has expanded from a focus on interest rate swaps to comprehensive funding risks, including substantial upfront investment in new businesses, funding terms and rising interest rates. - FY2025RestatedAnnual report
「In addition to rising interest rates due to changes in monetary policy, uncertainty regarding the policies of the new US administration means that we recognise that uncertainty about the outlook will continue.」
Concerns about the interest-rate environment, including rising interest rates due to changes in monetary policy, continue to be described. - FY2024WorsenedAnnual report
「Regarding the future operating environment, a gradual recovery is expected to continue as social and economic activity normalises. However, the business environment is expected to remain difficult, with many factors raising concern about the economic outlook, including inflation caused by the depreciation of the yen and soaring raw-material prices, and rising interest rates resulting from changes in monetary policy.」
In connection with interest rate fluctuation risks on borrowings, rising interest rates due to changes in monetary policy are newly identified as a factor of concern for the future. - FY2023RestatedAnnual report
「Derivatives are used to hedge interest rate fluctuation risks on borrowings, and the company has a policy of not engaging in speculative transactions.」
The response to interest rate fluctuation risks on borrowings and the policy of not engaging in speculative transactions continue to be described. - FY2019RestatedAnnual report
「Derivatives are used to hedge interest rate fluctuation risks on borrowings, and the company has a policy of not engaging in speculative transactions.」
The response to interest rate fluctuation risks on borrowings and the policy of not engaging in speculative transactions continue to be described. - FY2018RestatedAnnual report
「We conduct interest rate swap transactions and other measures to address interest rate fluctuation risks associated with some long-term borrowings.」
The interest rate fluctuation risk associated with long-term borrowings and the policy of addressing it through interest rate swaps and other measures continue to be described. - FY2017First statedAnnual report
「We conduct interest rate swap transactions and other measures to address interest rate fluctuation risks associated with some long-term borrowings.」
The interest rate fluctuation risk associated with long-term borrowings is expressly described in the notes on financial instruments, together with measures such as interest rate swaps.