Foreign-Exchange Risk Arising from a High Overseas Sales Ratio
First written in FY2016. 13 of 36 entries say "Materialised", first in FY2017-Q1. Latest entry: FY2026.
Shin-Etsu Chemical moved to the "Worse" side of this theme in 2017, 1 year after the typical company in this theme (2016).
The whole theme swung hardest in 2019: 29 of 63 companies on the "Worse" side.
17 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Overseas sales accounted for 79% of our group’s consolidated net sales for the fiscal year ending March 2026, and are expected to remain at a high level. The yen-converted amounts of financial statement items of overseas consolidated subsidiaries and other entities are affected by exchange rates, and substantial fluctuations could have a significant impact on the performance of our group as a whole.」
The overseas sales ratio declined from 80% in the previous fiscal year to 79%, but the disclosure states that foreign exchange exposure remains high. - FY2026-H1MaterialisedAnnual report
「Due to the stronger yen, the yen-converted amounts of the assets, liabilities and net assets of overseas consolidated subsidiaries have each decreased.」
Although an increase in translated amounts due to the weaker yen had been disclosed through the previous fiscal year, FY2026-H1 states that the yen-converted amounts of the assets, liabilities and net assets of overseas consolidated subsidiaries actually decreased due to the stronger yen. - FY2025WorsenedAnnual report
「Overseas sales accounted for 80% of our group’s consolidated net sales for the fiscal year ended March 2025, and are expected to remain at a high level.」
The overseas sales ratio rose from 78% in the previous fiscal year to 80%, increasing exposure to exchange-rate movements. Mitigation measures, including foreign exchange contracts, remain in place. - FY2024MitigatedAnnual report
「Overseas sales accounted for 78% of our group’s consolidated net sales for the fiscal year ended March 2024, and are expected to remain at a high level. The yen-converted amounts of financial statement items of overseas consolidated subsidiaries and other entities are affected by exchange rates, and substantial fluctuations could have a significant impact on the performance of our group as a whole.」
The overseas sales ratio declined from 81% in the previous fiscal year to 78%, while foreign exchange exposure remained high. The increase in the foreign currency translation adjustment due to the weaker yen was also quantified at ¥168,583 million. - FY2024-Q3Updated increase in the foreign currency translation adjustment due to yen depreciationAnnual report
「Net assets at the end of the current quarter increased by ¥400,434 million from the end of the previous fiscal year to ¥4,426,643 million. This was due to quarterly net income attributable to owners of the parent and an increase in the foreign currency translation adjustment associated with the weaker yen, despite decreases from dividend payments from retained earnings and the acquisition of treasury stock.」
The increase in the foreign currency translation adjustment associated with the weaker yen contributed to the increase in net assets. In other comprehensive income, the foreign currency translation adjustment increased by ¥296,187 million, leaving a balance of ¥591,046 million. - FY2024-Q2Updated increase in the foreign currency translation adjustment due to yen depreciationAnnual report
「Net assets at the end of the current quarter increased by ¥348,852 million from the end of the previous fiscal year to ¥4,375,061 million. This was due to quarterly net income attributable to owners of the parent and an increase in the foreign currency translation adjustment associated with the weaker yen, despite decreases from dividend payments from retained earnings and the acquisition of treasury stock.」
The increase in the foreign currency translation adjustment associated with the weaker yen contributed to the increase in net assets. The foreign currency translation adjustment increased by ¥220,447 million for the cumulative second quarter. - FY2024-Q1Updated increase in the foreign currency translation adjustment due to yen depreciationAnnual report
「Net assets at the end of the current quarter increased by ¥75,833 million from the end of the previous fiscal year to ¥4,102,042 million. This was due to quarterly net income attributable to owners of the parent and an increase in the foreign currency translation adjustment associated with the weaker yen, despite a decrease from dividend payments from retained earnings.」
Regarding foreign exchange exposure associated with the high overseas sales ratio, the disclosure states that the increase in the foreign currency translation adjustment due to the weaker yen contributed to the increase in net assets. - FY2023WorsenedAnnual report
「Overseas sales accounted for 81% of our group’s consolidated net sales for the fiscal year ended March 2023, and are expected to remain at a high level.」
The overseas sales ratio rose from 77% in the previous fiscal year to 81%, increasing exposure to exchange-rate movements. Mitigation measures, including foreign exchange contracts, continue to be disclosed. - FY2023-Q3Updated increase in the foreign currency translation adjustment due to yen depreciationAnnual report
「Net assets at the end of the current quarter increased by ¥657,468 million from the end of the previous fiscal year to ¥4,086,676 million. This was due to quarterly net income attributable to owners of the parent and an increase in the foreign currency translation adjustment associated with the weaker yen, despite decreases from the acquisition of treasury stock and dividend payments from retained earnings.」
The disclosure states that the increase in the foreign currency translation adjustment associated with the weaker yen contributed to the increase in net assets. The foreign currency translation adjustment increased by ¥424,708 million for the cumulative 3rd quarter, leaving a balance of ¥495,317 million. - FY2023-Q2Foreign currency translation adjustment continues to increase due to the weaker yenAnnual report
「Net assets at the end of the current quarter increased by ¥472,265 million from the end of the previous fiscal year to ¥3,901,473 million. This was due to quarterly net income attributable to owners of the parent and an increase in the foreign currency translation adjustment associated with the weaker yen, despite a decrease resulting from the acquisition of treasury stock.」
As in the previous quarter, the increase in the translated value of overseas subsidiary assets associated with the weaker yen contributed to the increase in net assets. The foreign currency translation adjustment increased by ¥312,763 million on a cumulative quarterly basis. - FY2023-Q1Updated increase in the foreign currency translation adjustment due to yen depreciationAnnual report
「This was due to a decrease resulting from the acquisition of treasury stock based on resolutions including that of the Board of Directors meeting held on 27 April 2022, partly offset by quarterly net income attributable to owners of the parent and an increase in the foreign currency translation adjustment associated with the weaker yen.」
Although a decrease in the foreign currency translation adjustment due to the stronger yen had been disclosed through the previous fiscal year, the current quarter discloses an increase in the translated value of overseas subsidiary assets due to the weaker yen as a factor contributing to the increase in net assets. - FY2022WorsenedAnnual report
「Overseas sales accounted for 77% of our group’s consolidated net sales for the fiscal year ended March 2022, and are expected to remain at a high level. The yen-converted amounts of financial statement items of overseas consolidated subsidiaries and other entities are affected by exchange rates, and substantial fluctuations could have a significant impact on the performance of our group as a whole.」
The overseas sales ratio rose from 74% in the previous fiscal year to 77%, and exposure to exchange-rate movements is increasing at a high level. - FY2022-Q3Updated increase in the foreign currency translation adjustment due to yen depreciationAnnual report
「Foreign currency translation adjustment 32,802」
The foreign currency translation adjustment increased from negative ¥58,618 million at the end of the previous fiscal year to ¥32,802 million, with the impact of the weaker yen on the increase in the yen-converted value of overseas subsidiary assets continuing. - FY2022-Q2Foreign currency translation adjustment continues to increase due to the weaker yenAnnual report
「This was due in part to an increase in the yen-converted value of overseas consolidated subsidiary assets resulting from the weaker yen, as well as increases in cash and deposits, trade receivables, property, plant and equipment, and other items.」
As in the previous quarter, the company disclosed an increase in the yen-converted value of overseas subsidiary assets due to the weaker yen. The foreign currency translation adjustment increased by ¥82,210 million on a cumulative quarterly basis, leaving a balance of ¥21,766 million. - FY2022-Q1Foreign currency translation adjustment increases due to the weaker yenAnnual report
「This was mainly due to an increase in the yen-converted value of the assets of overseas consolidated subsidiaries as a result of the weaker yen.」
Although a decrease in the foreign currency translation adjustment due to the stronger yen had been disclosed through the previous fiscal year, the current quarter discloses an increase in the yen-converted value of overseas subsidiary assets due to the weaker yen. - FY2021WorsenedAnnual report
「Overseas sales accounted for 74% of our group’s consolidated net sales for the fiscal year ended March 2021, and are expected to remain at a high level.」
The overseas sales ratio rose from 73% in the previous fiscal year to 74%. On the consolidated balance sheet, the foreign currency translation adjustment was negative ¥58,618 million, and the impact of exchange rates was quantified for the full fiscal year. - FY2021-Q3Updated the foreign currency translation adjustmentAnnual report
「Foreign currency translation adjustment △¥37,461 million」
The decrease in the foreign currency translation adjustment was quantified at ¥37,461 million in other comprehensive income for the cumulative 3rd quarter. - FY2021-Q2MaterialisedAnnual report
「Foreign currency translation adjustment △23,752」
The decrease in the foreign currency translation adjustment associated with the stronger yen was quantified at ¥23,752 million in other comprehensive income for the cumulative second quarter, and the impact of exchange-rate movements continued to occur. - FY2021-Q1MaterialisedAnnual report
「Foreign currency translation adjustment △¥21,108 million」
The decrease in the foreign currency translation adjustment associated with the stronger yen was quantified at ¥21,108 million in other comprehensive income for the first quarter, indicating that the impact of exchange-rate movements actually occurred. - FY2020MitigatedAnnual report
「Overseas sales accounted for 73% of our group’s consolidated net sales for the fiscal year ended March 2020, and are expected to remain at a high level. The yen-converted amounts of financial statement items of overseas consolidated subsidiaries and other entities are affected by exchange rates, and substantial fluctuations could have a significant impact on the performance of our group as a whole.」
The overseas sales ratio declined from 74% in the previous fiscal year to 73%. Meanwhile, the foreign currency translation adjustment decreased by ¥13,642 million in other comprehensive income for the current period, and the impact of exchange-rate movements continues to be disclosed. - FY2020-Q3WorsenedAnnual report
「Net assets at the end of the current quarter increased by ¥107,698 million from the end of the previous fiscal year to ¥2,640,254 million. This was due to an increase in shareholders’ equity from quarterly net income attributable to owners of the parent, despite a decrease in the foreign currency translation adjustment associated with the stronger yen.」
The decrease in the foreign currency translation adjustment associated with the stronger yen continued, resulting in a decrease of ¥39,411 million in other comprehensive income and a balance of negative ¥33,177 million. The decrease has widened further from the negative impact in the previous quarter. ※quantified=true, materialized=true - FY2020-Q2Foreign currency translation adjustment turns negative againAnnual report
「Net assets at the end of the current quarter increased by ¥74,396 million from the end of the previous fiscal year to ¥2,606,952 million. This was due to an increase in shareholders’ equity from quarterly net income attributable to owners of the parent, despite a decrease in the foreign currency translation adjustment associated with the stronger yen.」
The foreign currency translation adjustment, which had turned positive in the previous quarter, decreased by ¥33,642 million in other comprehensive income for the cumulative second quarter, leaving a balance of negative ¥27,840 million at the end of the quarter. The impact of the stronger yen has been quantified again. - FY2020-Q1Foreign currency translation adjustment turns positiveAnnual report
「Foreign currency translation adjustment 341」
The foreign currency translation adjustment was negative ¥55,970 million in the same quarter of the previous year, compared with ¥341 million in the current quarter. Meanwhile, a foreign exchange loss of ¥2,837 million was recorded in the current quarter, so the impact of exchange-rate movements itself is disclosed. - FY2019MaterialisedAnnual report
「The foreign currency translation adjustment decreased from ¥34,611 million at the end of the previous fiscal year to ¥5,143 million at the end of the current period, resulting in a decrease of ¥30,861 million in other comprehensive income.」
In connection with foreign exchange exposure arising from an overseas sales ratio of 74%, the decrease in the foreign currency translation adjustment was quantified again in the current period, indicating that the impact of exchange-rate movements actually occurred. - FY2019-Q3MaterialisedAnnual report
「Foreign currency translation adjustment: negative ¥556 million」
In other comprehensive income for the 3rd quarter cumulative period, the foreign currency translation adjustment was negative ¥556 million, continuing to quantify the impact of exchange-rate movements. - FY2019-Q2MaterialisedAnnual report
「Net assets at the end of the quarter increased by ¥10,408 million from the end of the previous fiscal year to ¥2,517,033 million. This was because shareholders' equity increased due to quarterly net income attributable to owners of the parent and other factors, although the foreign currency translation adjustment decreased as the yen appreciated.」
The decrease in the foreign currency translation adjustment accompanying the yen's appreciation continued to affect changes in net assets. During the cumulative second quarter, the foreign currency translation adjustment decreased by ¥30,103 million. - FY2019-Q1MaterialisedAnnual report
「This was mainly due to a decrease in the yen-denominated amounts of assets held by overseas consolidated subsidiaries as the yen appreciated. Although shareholders' equity increased due to quarterly net income attributable to owners of the parent and other factors, the foreign currency translation adjustment decreased as the yen appreciated.」
The stronger yen reduced the yen-denominated amounts of overseas subsidiary assets and the foreign currency translation adjustment, contributing to decreases in total assets and net assets. The actual impact of exchange-rate movements continues to occur. - FY2018WorsenedAnnual report
「Overseas sales accounted for 74% of the group's consolidated net sales for the fiscal year ended March 2018, and are expected to remain at a high level.」
The overseas sales ratio rose from the 72% reported for the previous fiscal year to 74%, and exposure to exchange-rate movements remains high. - FY2018-Q3MaterialisedAnnual report
「Foreign currency translation adjustment: negative ¥8,222 million」
Other comprehensive income for the cumulative third quarter included a negative foreign currency translation adjustment of ¥8,222 million, continuing to quantify the impact of exchange-rate movements. - FY2018-Q2MaterialisedAnnual report
「Foreign currency translation adjustment: negative ¥20,670 million」
Other comprehensive income for the cumulative second quarter of the fiscal year included a negative foreign currency translation adjustment of ¥20,670 million, confirming the actual impact of exchange-rate movements. - FY2018-Q1MaterialisedAnnual report
「Foreign currency translation adjustment: negative ¥27,691 million」
Other comprehensive income for the cumulative first quarter of the fiscal year included a negative foreign currency translation adjustment of ¥27,691 million, confirming the actual impact of exchange-rate movements. - FY2017MaterialisedAnnual report
「Overseas sales accounted for 72% of the group's consolidated net sales for the fiscal year ended March 2017, and are expected to remain at a high level. Although the stronger yen caused translation differences on sales of overseas subsidiaries and resulted in lower revenue, the company achieved higher profit due in part to solid shipments.」
The overseas sales ratio fell from the previous 74% to 72%, while translation differences and other effects of the stronger yen actually contributed to the full-year revenue decline. - FY2017-Q3MaterialisedAnnual report
「Although the yen had begun to weaken from the end of November of the previous year, Japan's manufacturing sector was generally affected by the yen's appreciation during the period. / As a result, revenue for the cumulative third quarter of the fiscal year declined mainly due to the stronger yen, although the company achieved higher profit.」
The document states that Japan's manufacturing sector was affected by the stronger yen during the period, which also contributed to the group's revenue decline, confirming the continuing actual impact of exchange-rate movements. - FY2017-Q2RestatedAnnual report
「During the cumulative second quarter of the fiscal year, the U.S. economy continued to recover, but economic growth in Europe and Japan was limited to a slight increase, and Japan's manufacturing sector was particularly affected by the yen's appreciation.」
The impact of the yen's appreciation continued. During the cumulative second quarter, a foreign exchange loss of ¥11,161 million and a ¥128,254 million decrease in the foreign currency translation adjustment were recorded, continuing to confirm the actual impact of exchange-rate movements. - FY2017-Q1MaterialisedAnnual report
「The situation remained unstable as the yen continued to appreciate.」
As the yen appreciated, a foreign exchange loss of ¥8,177 million was recorded in the income statement for the quarter, while the foreign currency translation adjustment decreased by ¥48,692 million in the statement of comprehensive income, confirming the actual impact of exchange-rate movements. - FY2016First statedAnnual report
「Overseas sales accounted for 74% of the group's consolidated net sales for the fiscal year ended March 2016, and are expected to remain at a high level. The yen-denominated amounts of financial statement items of overseas consolidated subsidiaries and other entities are affected by exchange rates, and significant fluctuations could materially affect the group's overall performance.」
The 74% overseas sales ratio has been quantified, and risk mitigation through forward exchange contracts and other measures is described. The analysis of financial position states that the foreign currency translation adjustment decreased as the yen strengthened, confirming the actual impact.