Recognition of Non-Operating Income (Foreign Exchange Gain)
IZAWA TOWEL CO.,LTD. (the filing company)
US dollar, the Company's foreign-currency deposits, and outstanding foreign exchange forward contracts
Due to fluctuations in foreign exchange rates, the yen depreciated against the US dollar from ¥155.77 on 28 February 2026 to ¥159.38 on 31 May 2026, resulting in translation differences on foreign-currency deposits and valuation gains from the mark-to-market valuation of outstanding foreign exchange forward contracts.
¥192 million (non-operating income and foreign exchange gain)
First-quarter accounting period of the fiscal year ending February 2027 (1 March 2026 to 31 May 2026)
The gain has been reflected in the first-quarter financial results summary released today, and no revision to the earnings forecast has been made as a result of this recognition. If it is anticipated that a revision to the earnings forecast will be necessary, the Company will make a timely disclosure.
Because the amount of foreign exchange gains or losses fluctuates depending on foreign exchange rate movements, the earnings forecast will not be revised at this time. If it is anticipated that a revision to the earnings forecast will be necessary, the Company will make a timely disclosure.
| Item | Details |
|---|---|
| Event name | Recognition of Non-Operating Income (Foreign Exchange Gain) |
| Date of occurrence | 1 March 2026 to 31 May 2026 (first-quarter accounting period of the fiscal year ending February 2027) |
| Subject Entity | IZAWA TOWEL CO.,LTD. (the filing company) |
| Target Locations / Products | US dollar, the Company's foreign-currency deposits, and outstanding foreign exchange forward contracts |
| Cause | Due to fluctuations in foreign exchange rates, the yen depreciated against the US dollar from ¥155.77 on 28 February 2026 to ¥159.38 on 31 May 2026, resulting in translation differences on foreign-currency deposits and valuation gains from the mark-to-market valuation of outstanding foreign exchange forward contracts. |
| Amount of Impact on Business Performance | ¥192 million (non-operating income and foreign exchange gain) |
| Accounting period in which recognized | First-quarter accounting period of the fiscal year ending February 2027 (1 March 2026 to 31 May 2026) |
| Impact on Earnings Forecast | The gain has been reflected in the first-quarter financial results summary released today, and no revision to the earnings forecast has been made as a result of this recognition. If it is anticipated that a revision to the earnings forecast will be necessary, the Company will make a timely disclosure. |
| Outlook | Because the amount of foreign exchange gains or losses fluctuates depending on foreign exchange rate movements, the earnings forecast will not be revised at this time. If it is anticipated that a revision to the earnings forecast will be necessary, the Company will make a timely disclosure. |
| Planned follow-up disclosure | If it is anticipated that a revision to the earnings forecast will be necessary, the Company will make a timely disclosure. |
Items this document does not state (15)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.Due to fluctuations in foreign exchange rates, the yen depreciated against the US dollar from ¥155.77 on 28 February 2026 to ¥159.38 on 31 May 2026, resulting in translation differences on foreign-currency deposits and valuation gains from the mark-to-market valuation of outstanding foreign exchange forward contracts.