Risk to Borrowing Costs and Financial Asset Values from Interest Rate Movements
First written in FY2018. 2 of 4 entries say "Worsened", first in FY2019. Latest entry: FY2022.
J.Front Retailing moved to the "Worse" side of this theme in 2022, 2 years before the typical company in this theme (2024).
The whole theme swung hardest in 2019: 1 of 7 companies on the "Worse" side.
3 other companies' latest entry also says "Worsened".
- FY2022WorsenedAnnual report
「The Bank of Japan’s COVID-19 monetary policy measures for large companies have ended, raising concerns about higher funding costs. In addition, inflation stemming from the Ukraine crisis is expected to lead to higher interest rates over the medium to long term, and the financing environment has begun to change.」
The company explicitly identified the possibility of higher funding costs due to changes in monetary policy, the Ukraine crisis, and inflation as factors in interest-rate fluctuation risk. - FY2020MitigatedAnnual report
「To mitigate this interest-rate fluctuation risk, our group hedges the risk through transactions such as interest-rate swaps. The impact of interest payments on our group’s profit or loss is immaterial.」
Regarding interest-rate fluctuation risk, the company explained that it hedges through interest-rate swaps and that the impact of interest payments on profit or loss is immaterial. - FY2019WorsenedAnnual report
「Although low interest rates have continued for an extended period due to the economic slowdown, monetary easing policies, and other factors, the possibility that the “risk related to interest-rate fluctuations” will materialize in the medium term is considered to have increased somewhat.」
The description of interest-rate fluctuation risk changed to indicate that the possibility of materialization in the medium term had increased somewhat. - FY2018First statedAnnual report
「Our group holds financial receivables and interest-bearing debt, and fluctuations in their interest rates affect interest expense, interest income, and the value of financial assets and liabilities, potentially worsening our group’s operating performance and financial position.」
The company separately identified for the first time the impact of interest-rate fluctuations on interest expense, interest income, and the value of financial assets and liabilities as a financial risk.