Risk of exchange-rate fluctuations due to the high proportion of foreign-currency-denominated transactions
First written in FY2018. 2 of 4 entries say "Softened", first in FY2019. Latest entry: FY2026.
Macnica Holdings moved to the "Worse" side of this theme in 2019, 1 year after the typical company in this theme (2018).
The whole theme swung hardest in 2019: 69 of 120 companies on the "Worse" side.
13 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「The proportion of dollar-denominated purchases in domestic procurement for the fiscal year ending March 2026 was 82.0%, while the proportion of dollar-denominated sales, including overseas sales, was 43.9%, leaving a high proportion of transactions denominated in foreign currencies.」
The proportions of foreign-currency-denominated purchases and sales increased from the previous fiscal year, expanding exposure to foreign-exchange rate fluctuations. - FY2025SoftenedAnnual report
「The proportion of dollar-denominated purchases in domestic procurement for the fiscal year ending March 2025 was 76.5%, while the proportion of dollar-denominated sales, including overseas sales, was 41.8%.」
The proportions of dollar-denominated purchases and sales have both declined from the previously disclosed levels of 89.3% and 52.4%, respectively. However, the explanation that the high proportion of foreign-currency transactions leaves the Group exposed to foreign-exchange risk continues. - FY2019SoftenedAnnual report
「Because the proportion of dollar-denominated purchases in domestic procurement for the fiscal year ending March 2019 was 88.3%, and the proportion of dollar-denominated sales, including overseas sales, was 48.8%,」
The proportion of dollar-denominated purchases declined from 89.3% in the previous fiscal year to 88.3%, while the proportion of dollar-denominated sales declined from 52.4% to 48.8%. However, the possibility that exchange-rate fluctuations could have a material impact, and that hedging cannot completely eliminate the risk, continues to be disclosed. - FY2018First statedAnnual report
「Because the proportion of dollar-denominated purchases in domestic procurement for the fiscal year ending March 2018 was high at 89.3%, and the proportion of dollar-denominated sales, including overseas sales, was high at 52.4%, fluctuations in foreign exchange rates could materially affect the operating results of the Company and its consolidated subsidiaries.」
The Company details the proportions of dollar-denominated purchases and sales and organizes foreign-exchange risk through net sales, cost of sales, foreign-exchange gains and losses, and the translation of overseas subsidiaries. Although foreign-currency receivables and payables are hedged, the Company states that the risk cannot be completely eliminated.