Market Risks from Share Price Declines, Foreign Exchange Volatility and Pension Assets
First written in FY2018. 3 of 6 entries say "Restated". Latest entry: FY2023-Q3.
The Japan Wool Textile moved to the "Worse" side of this theme in 2022, 2 years after the typical company in this theme (2020).
The whole theme swung hardest in 2019: 12 of 22 companies on the "Worse" side.
4 other companies' latest entry also says "Restated".
- FY2023-Q3RestatedAnnual report
「Despite efforts to reduce costs and improve efficiency, higher procurement costs due to the weaker yen, along with rising material, energy, and logistics costs, weighed on results. Revenue increased, but profit declined.」
We have reconfirmed that the weaker yen and higher material, energy, and logistics costs are reducing profit despite higher revenue. - FY2023-Q2RestatedAnnual report
「Sales increased, but profit declined due to higher wool raw-material costs resulting from the yen's depreciation and the impact of higher energy and logistics costs, among other factors.」
The weaker yen, higher raw material costs, and soaring energy and logistics costs continue to weigh on results, reducing profit despite higher revenue. - FY2023-Q1MaterialisedAnnual report
「Sales remained at about the same level as in the same period of the previous year, but profit declined due to higher wool raw-material costs resulting from the yen's depreciation and the impact of higher energy and logistics costs, among other factors.」
The company states that yen depreciation actually reduced profit by raising wool raw-material costs as part of the foreign-exchange risk. - FY2022-Q2WorsenedAnnual report
「The outlook remains uncertain due to the impact of COVID-19, the rapid depreciation of the yen and soaring material and energy costs, among other factors,」
Regarding foreign-exchange risk, the company specifically identifies the rapid depreciation of the yen as a source of uncertainty in the current operating environment. - FY2021RestatedAnnual report
「For the shares held, the Board of Directors conducts a detailed review for each holding, including whether the purpose of holding it and the associated benefits and risks are commensurate with the cost of capital, and verifies whether continuing to hold it is appropriate.」
The company reconfirmed its policy of having the Board of Directors verify, for each holding, whether policy-held shares are commensurate with the cost of capital in response to market risks such as share-price declines. - FY2018First statedAnnual report
「Our group holds a substantial amount of marketable equity securities. A significant decline in share prices could materially affect operating results and the financial position, including through a decrease in the valuation difference on other securities or losses on sale. In addition, much of the raw material for the textile business is imported from overseas. Although we hedge this risk through forward foreign-exchange contracts and other measures, significant fluctuations in foreign-exchange rates could materially affect operating results and the financial position.」
The company specifically identifies declines in the share prices of its holdings, declines in the share prices of pension assets and foreign-exchange movements associated with imported overseas raw materials as risks to its finances and operating results.