Translation of Financial Statements of Overseas Subsidiaries and Foreign Exchange Rate Fluctuation Risk
First written in FY2016. 12 of 28 entries say "Worsened", first in FY2017-Q2. Latest entry: FY2026.
Toho Chemical Industry moved to the "Worse" side of this theme in 2026, 9 years after the typical company in this theme (2017).
The whole theme swung hardest in 2019: 71 of 124 companies on the "Worse" side.
14 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Non-operating expenses were a net expense of ¥156 million, mainly due to interest paid and other items, compared with a net expense of ¥62 million in the previous fiscal year. Ordinary profit increased by ¥178 million year on year to ¥1,931 million.」
The Company shifted from a ¥101 million foreign exchange gain in the previous year to a ¥24 million foreign exchange loss in the current fiscal year, eliminating the tailwind from exchange rate movements at overseas subsidiaries for profit and loss. - FY2025-H1MitigatedAnnual report
「Foreign exchange gains 21 80」
Foreign exchange gains increased from ¥21 million in the same period of the previous year to ¥80 million, easing the impact of exchange rate movements on profit and loss during the interim consolidated accounting period under review. The foreign currency translation adjustment account also increased by ¥1,160 million. - FY2024-Q1MitigatedAnnual report
「Foreign exchange losses 6 -」
Whereas a ¥6 million foreign exchange loss was recorded in the same period of the previous year, no foreign exchange loss was recorded in the first quarter under review and an ¥11 million foreign exchange gain was posted. The impact of exchange rate movements on profit and loss eased from the same period of the previous year. - FY2023WorsenedAnnual report
「Ordinary profit fell by ¥753 million year on year to ¥1,179 million, mainly due to the substantial decrease in foreign exchange gains」
Compared with the ¥674 million foreign exchange gain in the previous fiscal year, the Company recorded an ¥18 million foreign exchange loss in the current fiscal year, eliminating the tailwind from foreign exchange for profit. Exchange rate movements emerged as a major factor behind the full-year decline in ordinary profit. - FY2023-Q3RestatedAnnual report
「In addition, the foreign exchange gain of ¥462 million and insurance proceeds of ¥95 million recorded as non-operating income in the same period of the previous year were both immaterial during the cumulative third-quarter consolidated period under review. As a result, ordinary profit fell by ¥729 million year on year to ¥753 million」
Compared with the ¥462 million foreign exchange gain in the same period of the previous year, the Company recorded a ¥17 million foreign exchange loss during the cumulative third-quarter period under review, and the absence of a tailwind from exchange rate movements for ordinary profit has continued. - FY2023-Q2WorsenedAnnual report
「In addition, the foreign exchange gain of ¥387 million and insurance proceeds of ¥89 million recorded as non-operating income in the same period of the previous year were both immaterial during the cumulative second-quarter consolidated period under review. As a result, ordinary profit fell by ¥811 million year on year to ¥198 million,」
Compared with the ¥387 million foreign exchange gain in the same period of the previous year, no foreign exchange gain was recorded during the cumulative second-quarter period under review and a ¥12 million foreign exchange loss was recorded, eliminating the tailwind from exchange rate movements for ordinary profit. - FY2023-Q1WorsenedAnnual report
「In addition, the foreign exchange gain of ¥289 million and insurance proceeds of ¥89 million recorded as non-operating income in the same period of the previous year were both immaterial during the cumulative first-quarter consolidated period under review. As a result, ordinary profit fell by ¥598 million year on year to ¥9 million」
The Company shifted from a ¥289 million foreign exchange gain in the same period of the previous year to a ¥6 million foreign exchange loss in the first quarter under review, reducing ordinary profit to ¥9 million. The impact of exchange rate movements on profit and loss has again turned adverse. - FY2022MitigatedAnnual report
「Non-operating income and expenses were a net gain of ¥588 million, mainly due to a ¥674 million foreign exchange gain and ¥97 million in insurance proceeds received. As a result, ordinary profit increased by ¥508 million year on year to ¥1,933 million.」
The Company shifted from a foreign exchange loss in the previous year to a ¥674 million foreign exchange gain in the current fiscal year, easing the impact of exchange rate movements on profit and loss from the previous fiscal year. However, translation risk for the subsidiary denominated in Chinese yuan remains. - FY2022-Q3MitigatedAnnual report
「Ordinary profit increased by ¥802 million year on year to ¥1,482 million, partly due to a foreign exchange gain and insurance proceeds received, while quarterly net income attributable to owners of the parent increased by ¥478 million year on year to ¥870 million.」
Whereas a foreign exchange loss was recorded in the same period of the previous year, a foreign exchange gain was recorded during the cumulative third-quarter period under review, easing the impact of exchange rate movements on profit and loss. - FY2022-Q1MitigatedAnnual report
「In addition, ordinary profit was ¥608 million, compared with a loss of ¥312 million in the same period of the previous year, partly due to a foreign exchange gain and insurance proceeds received, while quarterly net income attributable to owners of the parent was ¥460 million, compared with a loss of ¥277 million in the same period of the previous year.」
Whereas a ¥140 million foreign exchange loss was recorded in the same period of the previous year, the Company recorded a ¥289 million foreign exchange gain in the quarter under review, easing the impact of exchange rate movements on profit and loss year on year. - FY2021-Q3MitigatedAnnual report
「Foreign exchange losses 236 10」
Foreign exchange losses during the cumulative third-quarter consolidated period amounted to ¥10 million, down substantially from ¥236 million in the same period of the previous year. Although the impact of exchange rate movements on profit and loss remained, it was lower year on year. - FY2021-Q2MitigatedAnnual report
「Foreign exchange losses 178 114」
Foreign exchange losses during the cumulative second-quarter consolidated period amounted to ¥114 million, down from ¥178 million in the same period of the previous year. Although exchange rate movements continued to affect profit and loss, the impact decreased year on year. - FY2021-Q1WorsenedAnnual report
「In addition, a ¥140 million foreign exchange loss was recorded, resulting in an ordinary loss of ¥312 million, compared with ordinary profit of ¥315 million in the same period of the previous year, and a quarterly net loss attributable to owners of the parent of ¥277 million, compared with quarterly net income attributable to owners of the parent of ¥232 million in the same period of the previous year. The Company was therefore forced to report losses.」
A ¥140 million foreign exchange loss was recorded, up from ¥17 million in the same period of the previous year. The impact of exchange rate movements expanded again and became a factor contributing to the ordinary loss. - FY2020WorsenedAnnual report
「As of the end of March 2020, loans from the Company to Toho Chemical (Shanghai) Co., Ltd. (intercompany loans) consisted of ¥4,300 million denominated in Japanese yen and ¥62 million denominated in Chinese yuan (¥953 million translated into Japanese yen), resulting in foreign exchange gains or losses due to fluctuations in the exchange rate between the Japanese yen and Chinese yuan.」
The intercompany loan to the Shanghai subsidiary had balances of ¥4,300 million denominated in yen and ¥62 million denominated in renminbi, clarifying the exposure to the impact of exchange rate movements on profit and loss. Foreign exchange losses for the full fiscal year amounted to ¥190 million. - FY2020-Q3WorsenedAnnual report
「Ordinary profit fell by ¥272 million year on year to ¥1,151 million, with the decline widening further due in part to the impact of foreign exchange losses.」
Foreign exchange losses during the cumulative third-quarter consolidated period amounted to ¥236 million, up from ¥156 million in the same period of the previous year. The impact of exchange rate movements on profit and loss is expanding again. - FY2020-Q2WorsenedAnnual report
「Although lower raw material prices offset the impact of the decline in revenue, this was insufficient to cover the increase in fixed costs, including depreciation and personnel expenses. Operating profit for the cumulative second-quarter consolidated period under review was ¥944 million, a decrease of ¥27 million year on year, while ordinary profit fell by ¥123 million year on year to ¥664 million, with the decline widening further due in part to the impact of foreign exchange losses.」
Foreign exchange losses increased from ¥109 million in the same period of the previous year to ¥178 million, widening the decline in ordinary profit. The impact expanded again after foreign exchange losses had decreased in the previous quarter. - FY2020-Q1MitigatedAnnual report
「Foreign exchange losses 53 17」
Foreign exchange losses during the cumulative first-quarter consolidated period under review amounted to ¥17 million, down from ¥53 million in the same period of the previous year. The impact of exchange rate movements at overseas subsidiaries on profit and loss was lower than in the same period of the previous year. - FY2019MaterialisedAnnual report
「This was because the previous fiscal year included temporary income from technology fees received (¥190 million) and a foreign exchange gain (¥34 million), whereas the current fiscal year included a foreign exchange loss (¥185 million), among other items.」
A ¥185 million foreign exchange loss was recorded during the current fiscal year, reducing ordinary profit as a result of exchange rate movements at overseas subsidiaries. - FY2019-Q2WorsenedAnnual report
「Foreign exchange losses 2 109」
Foreign exchange losses during the cumulative second-quarter consolidated period under review amounted to ¥109 million, up from ¥2 million in the same period of the previous year. The impact of exchange rate movements on profit and loss, which had been decreasing through the previous quarter, is expanding again. - FY2019-Q1MaterialisedAnnual report
「Foreign exchange losses 55 53」
A ¥53 million foreign exchange loss was recorded during the cumulative first-quarter consolidated period under review, and the impact of exchange rate movements at overseas subsidiaries on profit and loss, which had decreased or disappeared through the previous quarter, re-emerged. - FY2018-Q3MitigatedAnnual report
「In particular, ordinary profit improved substantially because foreign exchange losses decreased significantly from the same period of the previous year, while net income attributable to owners of the parent also improved substantially because no extraordinary loss related to the dissolution of the Employees' Pension Fund, which had occurred for 2 consecutive periods, was recorded during the cumulative third-quarter consolidated period under review.」
The ¥743 million foreign exchange loss recorded in the same period of the previous year did not occur during the cumulative third-quarter consolidated period under review, further reducing the impact of exchange rate movements at overseas subsidiaries on profit and loss. - FY2018-Q2MitigatedAnnual report
「In particular, ordinary profit improved substantially because foreign exchange losses decreased significantly from the same period of the previous year, while net income attributable to owners of the parent also improved substantially because no extraordinary loss related to the dissolution of the Employees' Pension Fund, which had occurred for 2 consecutive periods, was recorded during the cumulative period under review. Foreign exchange losses 671 2」
Foreign exchange losses decreased substantially, from ¥671 million in the same period of the previous year to ¥2 million, further reducing the impact of exchange rate movements on profit and loss. Because a foreign exchange loss was still recorded, the risk has in fact materialised. - FY2018-Q1MitigatedAnnual report
「Non-operating expenses Interest expense 67 64 Foreign exchange losses 264 55 Other 21 19 Total non-operating expenses 353 139」
Foreign exchange losses decreased from ¥264 million in the same period of the previous year to ¥55 million, reducing the impact on earnings of exchange-rate movements at overseas subsidiaries compared with the same period of the previous year. - FY2017WorsenedAnnual report
「Non-operating income was ¥157 million, broadly in line with the previous fiscal year. Non-operating expenses increased by ¥214 million to ¥813 million due to higher foreign exchange losses at overseas subsidiaries.」
Non-operating expenses increased by ¥214 million year on year due to higher foreign exchange losses at overseas subsidiaries, with the impact of exchange-rate movements becoming more pronounced in full-year earnings. - FY2017-Q3WorsenedAnnual report
「On the other hand, on the earnings side, although results were affected by the delayed improvement in the operating loss at 東邦化学（上海）有限公司 and the substantial foreign exchange loss incurred by the company due to the stronger yen,」
Foreign exchange losses at the Shanghai subsidiary caused by yen appreciation continued to weigh on profit, reaching ¥743 million for the cumulative third-quarter period. This was an increase from ¥669 million in the cumulative previous quarter. - FY2017-Q2WorsenedAnnual report
「Ordinary profit declined significantly due to substantial foreign exchange losses caused by yen appreciation at 東邦化学（上海）有限公司. The main factors affecting cash inflows included depreciation of ¥981 million, an increase of ¥490 million in the provision for the loss on dissolution of the Employees' Pension Fund, a ¥549 million decrease in inventories, and foreign exchange losses of ¥669 million,」
Foreign exchange losses at the Shanghai subsidiary caused by yen appreciation continued to increase, reaching ¥669 million for the cumulative second-quarter period. The foreign currency translation adjustment account also decreased from ¥1,139 million to ¥725 million. - FY2017-Q1MaterialisedAnnual report
「Meanwhile, the company was forced to record ordinary losses and a quarterly net loss attributable to owners of the parent due to the impact of substantial foreign exchange losses caused by yen appreciation at 東邦化学（上海）有限公司.」
Yen appreciation generated foreign exchange losses at the Shanghai subsidiary, resulting in an ordinary loss of ¥84 million and a quarterly net loss attributable to owners of the parent of ¥182 million. The foreign exchange loss reported in the quarterly income statement was ¥264 million. - FY2016First statedAnnual report
「The financial statements of the Group's overseas consolidated subsidiaries are translated into yen for the preparation of the consolidated financial statements. Because the yen-denominated amounts are affected by exchange-rate movements, significant fluctuations could affect the Group's operating results and financial position.」
The company recognized a foreign exchange loss of ¥189 million during the current fiscal year, and the foreign currency translation adjustment account also decreased by ¥182 million.