Increase in Interest-Bearing Debt from M&A and Expanded Investment, and Interest Rate Fluctuations
First written in FY2017. 1 of 4 entries say "Worsened", first in FY2018. Latest entry: FY2024.
The whole theme swung hardest in 2025: 16 of 29 companies on the "Worse" side.
12 other companies' latest entry also says "Mitigated".
- FY2024MitigatedAnnual report
「We will mitigate the risk of rising interest rates by optimizing the balance between short- and long-term borrowings and obtaining long-term borrowings at fixed rates. However, a sharp rise in interest rates may affect the Group's operating results and financial position.」
Optimizing the balance between short- and long-term borrowings and obtaining long-term borrowings at fixed rates were identified as measures to address the risk of rising interest rates. - FY2020RestatedAnnual report
「As we expand investments through M&A and other activities going forward, interest-bearing debt may increase, making the Group more susceptible to the risk of rising interest rates.」
The risk of increased interest-bearing debt and rising interest rates associated with expanded investment through M&A and other activities was reiterated, while interest-bearing debt at the end of the fiscal year had declined to ¥4.83 billion. - FY2018WorsenedAnnual report
「The Group has worked to reduce interest-bearing debt and improve its equity ratio through cash flow management based on its medium-term management plan. However, as it expands investments through M&A and other activities going forward, interest-bearing debt may increase. In addition, future interest rate trends may affect the Group's operating results and financial position.」
The potential for expanded investment through M&A and other activities and an increase in interest-bearing debt became clearer following the shift toward a growth investment policy. The planned interest-bearing debt-to-EBITDA ratio is assumed to range from 1.9x to 2.6x. - FY2017First statedAnnual report
「As we expand investments through M&A and other activities going forward, interest-bearing debt may increase, and depending on interest rate trends, this may affect the Group's operating results and financial position.」
The balance of interest-bearing debt was ¥54,137 million, or 33.6% of total assets, and an increase in debt associated with future investment expansion was identified as a risk.