Foreign Exchange Risk from Foreign-Currency Transactions
First written in FY2016. 17 of 42 entries say "Worsened", first in FY2017-Q2. Latest entry: 2026-11-10.
Shinden Hightex moved to the "Worse" side of this theme in 2016, 1 year before the typical company in this theme (2017).
The whole theme swung hardest in 2019: 76 of 133 companies on the "Worse" side.
44 other companies' latest entry also says "Mitigated".
- FY2026Declining foreign-currency sales ratio coexisting with rising foreign-exchange lossesAnnual report
「The Group has a high ratio of foreign-currency-denominated sales (77.9% in the fiscal year ended March 2025 and 75.2% in the fiscal year ending March 2026), with the US dollar as the primary settlement currency.」
The ratio of foreign-currency-denominated sales fell from 77.9% to 75.2%, while the foreign exchange loss increased from approximately ¥34 million in the previous year to approximately ¥251 million, against the backdrop of increased funding needs for US dollar-denominated purchases and interest-bearing debt. - FY2026-H1WorsenedAnnual report
「Because the ratio of US dollar-denominated transactions is high in the semiconductor products and display businesses, the rise in the cost ratio resulting from the stronger yen pushed down gross profit」
The stronger yen increased the cost ratio of US dollar-denominated transactions, pushing down gross profit. The foreign exchange loss also increased from ¥19.816 million in the same period of the previous year to ¥35.202 million. - FY2025Higher ratio of foreign-currency-denominated sales alongside a reduction in the foreign exchange lossAnnual report
「The Group has a high ratio of foreign-currency-denominated sales (65.0% in the fiscal year ended March 2024 and 77.9% in the fiscal year ended March 2025), with the US dollar as the primary settlement currency.」
The ratio of foreign-currency-denominated sales rose from 65.0% to 77.9%, while the foreign exchange loss declined from approximately ¥227 million in the previous year to ¥34 million. Although foreign currency exposure increased, the impact on earnings for the current year improved. - FY2025-H1MitigatedAnnual report
「Foreign exchange loss 146,968 19,816」
The foreign exchange loss declined from ¥146.968 million in the same period of the previous year to ¥19.816 million, reducing the adverse impact of foreign exchange movements on earnings. However, the foreign exchange loss itself continued. - FY2024MitigatedAnnual report
「The Group has a high ratio of foreign-currency-denominated sales (73.4% in the fiscal year ended March 2023 and 65.0% in the fiscal year ended March 2024).」
The ratio of foreign-currency-denominated sales fell from 73.4% to 65.0%, and the foreign exchange loss declined from ¥598 million in the previous year to ¥228 million. However, the Company continued to record a foreign exchange loss. - FY2024-Q3MitigatedAnnual report
「The foreign exchange loss included in non-operating income and expenses declined substantially because the yen had shifted to a strengthening trend as of the end of the third quarter of the current consolidated fiscal year. However, the Company continued to record a foreign exchange loss.」
The shift to a stronger yen caused the foreign exchange loss to decline substantially, from ¥579 million in the same period of the previous year to ¥63 million, but the foreign exchange loss itself continued. - FY2024-Q2MitigatedAnnual report
「In addition, the foreign exchange loss included in non-operating income and expenses declined substantially because the difference in the balance between US dollar-denominated assets and liabilities narrowed, but the Company continued to record a foreign exchange loss.」
The foreign exchange loss declined from ¥623 million in the same period of the previous year to ¥147 million. However, a foreign exchange loss was still recorded, and the disclosure does not state that the risk had been eliminated. - FY2024-Q1MitigatedAnnual report
「The foreign exchange loss included in non-operating income and expenses declined substantially because the difference in the balance between US dollar-denominated assets and liabilities narrowed.」
The difference in the balance between US dollar-denominated assets and liabilities narrowed, and the foreign exchange loss declined from ¥503 million in the same period of the previous year to ¥160 million. However, the foreign exchange loss itself continued. - FY2023WorsenedAnnual report
「The Group has a high ratio of foreign-currency-denominated sales (70.7% in the fiscal year ended March 2022 and 73.4% in the fiscal year ended March 2023), with the US dollar as the primary settlement currency.」
The ratio of foreign-currency-denominated sales rose from 70.7% to 73.4%. The Company recorded a foreign exchange loss of ¥598 million due to the sharp weakening of the yen, and the impact of foreign exchange risk on earnings continued. - FY2023-Q3WorsenedAnnual report
「Foreign exchange loss 174,260 579,107」
The foreign exchange loss increased from ¥174.260 million in the cumulative period of the same quarter of the previous year to ¥579.107 million. The adverse impact of foreign exchange movements on earnings continued. - FY2023-Q2WorsenedAnnual report
「Although earnings below operating profit declined because a valuation loss on foreign exchange continued to be recorded in the second quarter as the yen weakened sharply, the Company returned to profitability from the first-quarter loss.」
The valuation loss on foreign exchange resulting from the sharp weakening of the yen continued in the second quarter, bringing the foreign exchange loss for the six months ended the second quarter of the current fiscal year to ¥623 million. This reduced earnings below operating profit, but the Company returned to profitability from the first-quarter loss. - FY2023-Q1MaterialisedAnnual report
「However, foreign-currency-denominated liabilities had increased because the Company needed to secure inventories and stabilize supply in response to longer delivery times for semiconductors and other products. The sharp weakening of the yen resulted in a valuation loss on foreign exchange, causing earnings below operating profit to decline substantially and the Company to post a loss.」
Foreign-currency-denominated liabilities increased as inventories were secured to stabilize supply, and the sharp weakening of the yen resulted in a foreign exchange loss of ¥503.569 million. Foreign exchange risk has materialized as an actual ordinary loss and net loss. - FY2022WorsenedAnnual report
「The Company secured inventories in response to supply shortages of semiconductors and other products, temporarily increasing foreign-currency-denominated liabilities. As the yen then weakened sharply at the end of the current consolidated fiscal year, the Company recorded a valuation loss on foreign exchange.」
Foreign-currency-denominated liabilities increased as the Company secured inventories in response to supply shortages, and the sharp weakening of the yen at the end of the period resulted in a foreign exchange loss of ¥339 million. - FY2022-Q3WorsenedAnnual report
「The Company recorded a valuation loss on foreign exchange as foreign-currency-denominated liabilities temporarily increased to respond to supply shortages of semiconductors and other products, but the increase in operating profit more than offset the loss. As a result, ordinary profit was ¥929 million, up 50.0% year on year, and quarterly net income attributable to owners of the parent was ¥652 million, up 54.6% year on year.」
Foreign-currency-denominated liabilities temporarily increased in response to supply shortages, resulting in a valuation loss on foreign exchange. The Company shifted from a foreign exchange gain in the same period of the previous year to a foreign exchange loss, and the adverse impact of foreign exchange movements has again been reflected in results. - FY2022-Q2WorsenedAnnual report
「Non-operating expenses Foreign exchange loss — 39,141」
The Company shifted from a foreign exchange gain of ¥98 million in the same period of the previous year to a foreign exchange loss of ¥39 million in the six months ended the second quarter of the current fiscal year, worsening the impact of foreign exchange movements on earnings. - FY2022-Q1Decline in Foreign Exchange GainsAnnual report
「Although the foreign exchange gain declined, the increase in operating profit more than offset the decline, resulting in ordinary profit of ¥353 million, up 100.0% year on year.」
The foreign exchange gain declined from ¥48 million in the same period of the previous year to ¥1 million, but ordinary profit exceeded the prior-year level due to the increase in operating profit. - FY2021Higher ratio of foreign-currency-denominated transactions and reduced impact of foreign exchange movementsAnnual report
「The Group has a high ratio of foreign-currency-denominated sales (70.4% in the fiscal year ended March 2020 and 76.0% in the fiscal year ended March 2021), with the US dollar as the primary settlement currency. ... The Group seeks to avoid and limit the impact of exchange-rate fluctuations, including by balancing foreign-currency-denominated receivables and payables through foreign-currency-denominated borrowings.」
Although the ratio of foreign-currency-denominated sales increased, the Company explicitly identified balancing receivables and payables through foreign-currency-denominated borrowings as a measure. The full-year foreign exchange gain was ¥7 million, down from ¥91 million in the previous year. - FY2021-Q3MitigatedAnnual report
「Ordinary profit was ¥619 million, up 233.4% year on year, because interest expenses were reduced by lower US dollar interest rates and the foreign exchange gain increased substantially from the same period of the previous year.」
Lower US dollar interest rates and the increase in the foreign exchange gain improved the impact of foreign exchange and interest-rate movements on earnings from the same period of the previous year. - FY2021-Q2MitigatedAnnual report
「Ordinary profit was ¥409 million, up 78.9% year on year, due to reduced interest expenses resulting from lower US dollar interest rates and an increase in the foreign exchange gain.」
In addition to reduced interest expenses resulting from lower US dollar interest rates, the increase in the foreign exchange gain improved the impact of foreign exchange and interest-rate movements on earnings from the same period of the previous year. - FY2021-Q1Decline in Foreign Exchange GainsAnnual report
「Ordinary profit was ¥176 million, down 23.4% year on year, as lower interest rates on US dollar borrowings reduced interest expenses, but the foreign exchange gain declined from the same quarter of the previous year.」
Interest expenses were reduced, but the foreign exchange gain declined from the same period of the previous year, resulting in a 23.4% year-on-year decline in ordinary profit. - FY2020MitigatedAnnual report
「The Group has a high ratio of foreign-currency-denominated sales (76.0% in the fiscal year ended March 2019 and 70.4% in the fiscal year ended March 2020), with the US dollar as the primary settlement currency.」
The ratio of foreign-currency-denominated sales fell from 76.0% to 70.4%. In addition, the Company recorded a foreign exchange gain of ¥91 million for the year, improving the impact on earnings from the foreign exchange loss in the previous year. - FY2020-Q3Reduction in foreign exchange gains due to the weaker-yen trendAnnual report
「Although earnings below operating profit included a valuation gain on foreign exchange due to the balance of foreign-currency-denominated assets and liabilities, the amount of the gain was compressed from the previous quarter as the yen weakened.」
A valuation gain on foreign exchange arose from the balance of foreign-currency-denominated assets and liabilities, but the amount of the gain decreased from the previous quarter due to the weaker-yen trend. - FY2020-Q2MitigatedAnnual report
「Earnings below operating profit included a valuation gain on foreign exchange due to the balance between foreign-currency-denominated liabilities and assets. Ordinary profit was ¥229 million, up 364.0% year on year, and quarterly net income attributable to owners of the parent was ¥153 million, up 355.7% year on year.」
A valuation gain on foreign exchange arose against the backdrop of the balance between foreign-currency-denominated liabilities and assets, improving the impact on earnings from the adverse effect of the valuation loss on foreign exchange in the same period of the previous year. - FY2020-Q1MitigatedAnnual report
「Earnings below operating profit returned to profitability, owing in part to the increase in operating profit and the valuation gain on foreign exchange that arose as the exchange rate remained on a strengthening-yen trend at the end of the first quarter of the current consolidated fiscal year while foreign-currency-denominated liabilities exceeded foreign-currency-denominated assets.」
Although foreign-currency-denominated liabilities continued to exceed foreign-currency-denominated assets, the stronger-yen trend resulted in a valuation gain on foreign exchange, improving the impact on earnings from the valuation loss on foreign exchange in the same period of the previous year. - FY2019WorsenedAnnual report
「The Group has a high ratio of foreign-currency-denominated sales (67.9% in the fiscal year ended March 2018 and 76.0% in the fiscal year ended March 2019), with the US dollar as the primary settlement currency.」
The ratio of foreign-currency-denominated sales rose from 67.9% to 76.0%. The yen weakened while foreign-currency-denominated liabilities exceeded foreign-currency-denominated assets, resulting in a valuation loss on foreign exchange. - FY2019-Q3MitigatedAnnual report
「Although valuation losses on foreign exchange continued to arise because foreign-currency-denominated liabilities still exceeded foreign-currency-denominated assets at the end of the third quarter of the current consolidated fiscal year, earnings below operating profit improved because the yen was slightly stronger than at the end of the previous quarter.」
Foreign-currency-denominated liabilities continued to exceed assets, and valuation losses on foreign exchange continued, but the impact improved from the previous quarter due to the slightly stronger yen. - FY2019-Q2WorsenedAnnual report
「Profit was also affected significantly by the negative impact of valuation losses on foreign exchange, as the yen weakened while foreign-currency-denominated liabilities exceeded foreign-currency-denominated assets at the end of the second quarter of the current consolidated fiscal year, in addition to the decline in gross profit from the same period of the previous year due to the aforementioned termination of the high-margin business.」
The yen weakened while foreign-currency-denominated liabilities exceeded foreign-currency-denominated assets, and valuation losses on foreign exchange had a significant impact on earnings. The foreign exchange loss was ¥120 million. - FY2019-Q1MaterialisedAnnual report
「Negative factors, including recognition of valuation losses on foreign exchange resulting from a weaker yen when foreign-currency-denominated liabilities exceeded foreign-currency-denominated assets at the end of the first quarter of the fiscal year under review, affected our group's performance.」
With foreign-currency-denominated liabilities exceeding foreign-currency-denominated assets, the yen weakened and a valuation loss on foreign exchange of ¥61.901 million was recorded. After the foreign-exchange impact had eased through the previous fiscal year, its negative effect on performance has emerged again. - FY2018-Q3MitigatedAnnual report
「Foreign-exchange losses 309,780 11,945」
Foreign-exchange losses included in non-operating expenses declined from ¥309.780 million in the cumulative period of the same quarter of the previous year to ¥11.945 million, reducing the adverse impact of foreign-exchange fluctuations on profit. - FY2018-Q1MitigatedAnnual report
「Non-operating income Interest received 135 117 Purchase discounts 4,133 1,542 Foreign-exchange gains － 20,503」
Compared with a foreign-exchange loss of ¥104.662 million in the same quarter of the previous year, the first quarter produced a foreign-exchange gain of ¥20.503 million, meaning the impact of foreign exchange on the quarter shifted to the profit side. - FY2017WorsenedAnnual report
「Our group has a high ratio of sales denominated in foreign currencies (80.6% for the fiscal year ended March 2016 and 69.5% for the fiscal year ended March 2017), with the U.S. dollar being the primary settlement currency.」
Although the ratio of foreign-currency-denominated sales declined from 80.6% to 69.5%, foreign-exchange losses totaled ¥174.432 million in the fiscal year under review, up from ¥3.501 million in the previous year. - FY2017-Q3WorsenedAnnual report
「Against this backdrop, the Group continued to focus on sales activities for highly profitable businesses centered on industrial LCDs and electronic equipment. However, due to exchange-rate fluctuations and other factors, both sales and earnings fell below the previous year.」
The impact of foreign-exchange fluctuations continued to emerge in performance, with foreign-exchange losses on the quarterly consolidated income statement totaling ¥309.780 million. - FY2017-Q2WorsenedAnnual report
「Sales and profit were both substantially below the previous year owing to factors including production adjustments by automakers and rapid foreign-exchange fluctuations.」
Rapid foreign-exchange movements toward a stronger yen put pressure on performance, and foreign-exchange losses for the six-month period under review were ¥160.625 million. The impact of foreign-exchange risk has continued to materialize following the previous quarter. - FY2017-Q1MaterialisedAnnual report
「Profit was also substantially below the previous year owing to sharp foreign-exchange fluctuations.」
The impact of foreign-exchange fluctuations materialized, resulting in an ordinary loss of ¥98 million. Foreign-exchange losses included in non-operating expenses were also ¥104.662 million. - FY2016First statedAnnual report
「Our group has a high ratio of sales denominated in foreign currencies (80.5% for the fiscal year ended March 2015 and 80.6% for the fiscal year ended March 2016), with the U.S. dollar being the primary settlement currency.」
Foreign-exchange rates may cause fluctuations in sales, profit, foreign-currency-denominated assets and the yen-converted amounts of overseas subsidiaries.