Foreign-Exchange Risk Accompanying Growth in Overseas Revenue
First written in FY2020. 2 of 3 entries say "Mitigated", first in FY2024. Latest entry: FY2026.
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
「Although overseas sales currently account for only 25.7%, overseas operations are affected by foreign exchange fluctuations, and a further increase in this ratio could affect the operating results of the Group.」
The company disclosed that overseas sales account for 25.7% and continues to address foreign exchange risk through balancing profit and loss by currency, matching currency inflows and outflows, local-currency borrowing and foreign exchange forward contracts. - FY2024MitigatedAnnual report
「Because profit and loss are currently relatively well balanced by currency, we recognize that the impact and risk to earnings from foreign exchange fluctuations are small. To minimize this risk as far as possible, we will seek to hedge it by paying income and expenses in the same currency wherever possible, considering local-currency borrowing at overseas locations, and entering into foreign exchange forward contracts as necessary.」
Foreign exchange risk associated with the rising proportion of overseas sales remains, but the company recognizes that the impact is small because profit and loss are balanced by currency, and is addressing it through matching currency inflows and outflows, local-currency borrowing and foreign exchange forward contracts. - FY2020First statedAnnual report
「Although the ratio currently stands at only 29%, it is in fact at a level susceptible to the effects of foreign exchange movements, and the company expects to face greater foreign exchange risk as it raises the ratio to 50%.」
The company indicates that foreign exchange risk may increase as the overseas sales ratio rises from 29% to 50%, and cites matching revenues and expenses in the same currency, borrowing in local currencies, and foreign exchange forward contracts as hedging measures.