Foreign Exchange Risk from U.S. Dollar-Denominated AWS Resale Transactions
First written in FY2019. 11 of 21 entries say "Materialised", first in FY2021-Q3. Latest entry: 2026-10-15.
Serverworks moved to the "Worse" side of this theme in 2021, 2 years before the typical company in this theme (2023).
4 other companies' latest entry also says "Restated".
- FY2026-H1MaterialisedAnnual report
「In particular, although the new US tariff policy announced in April 2025 has no direct impact on our Group’s business, the sharp yen appreciation caused by turmoil in the financial and foreign exchange markets has affected our Group’s business (reference: average exchange rate of ¥154.07 per US dollar in the fourth quarter of the previous consolidated fiscal year → ¥146.2 per US dollar in the current interim consolidated accounting period; estimated consolidated foreign exchange sensitivity per ¥1: annual revenue, ¥227.999 million; annual operating profit, ¥22.849 million).」
The company states that the sharp yen appreciation associated with US tariff policy had a negative impact on revenue and profit, and discloses specific average exchange rates and revenue and operating profit sensitivities. - FY2025MaterialisedAnnual report
「Non-operating expenses for the consolidated fiscal year increased by ¥178.645 million from the previous consolidated fiscal year to ¥235.314 million, up 315.2% year on year. This was mainly due to a ¥141.656 million increase in losses on investments accounted for under the equity method. The company also recorded a ¥32.657 million foreign exchange loss.」
The company recorded a ¥32.657 million foreign exchange loss in FY2025 in connection with foreign exchange movements affecting US dollar-denominated AWS transactions and other items, resulting in an impact on reported results. The policy of using forward exchange contracts has continued. - FY2025-H1MaterialisedAnnual report
「Foreign exchange loss — ¥48.922 million」
The company recorded a ¥48.922 million foreign exchange loss in the interim consolidated accounting period, with the impact of foreign exchange movements on US dollar-denominated transactions, including AWS resale, appearing in its results. - FY2025-Q1MaterialisedAnnual report
「Foreign exchange gain ¥45.233 million — Foreign exchange loss — ¥29.458 million」
Compared with the foreign exchange gain of ¥45.233 million in the same quarter of the previous year, the company recorded a ¥29.458 million foreign exchange loss in the first quarter, resulting in an impact from foreign exchange movements on reported results. - FY2024MitigatedAnnual report
「Foreign exchange gain ¥41.004 million」
In FY2024, the company recorded a ¥41.004 million foreign exchange gain, improving reported results from the foreign exchange loss recorded in the previous period. The policy of controlling risk through forward exchange contracts has also continued. - FY2024-Q1MitigatedAnnual report
「Foreign exchange gain — ¥45.233 million」
The foreign exchange loss of ¥11.412 million in the same quarter of the previous year turned into a foreign exchange gain of ¥45.233 million in the first quarter, eliminating the impact of foreign exchange movements on reported results. - FY2023MitigatedAnnual report
「Non-operating expenses decreased by ¥9.199 million from the previous consolidated fiscal year to ¥32.263 million, down 22.2% year on year. This was mainly because foreign exchange losses decreased by ¥14.953 million, despite a ¥3.836 million increase in losses on investment business partnerships.」
The ¥14.953 million foreign exchange loss recorded in the previous period did not occur in the current period, reducing the impact of foreign exchange movements on reported results. The policy of using forward exchange contracts has continued. - FY2023-Q3MaterialisedAnnual report
「Foreign exchange loss ¥3.202 million」
The impact of foreign exchange movements on US dollar-denominated transactions and other items continued, and the company recorded a ¥3.202 million foreign exchange loss for the nine-month period. - FY2023-Q2MaterialisedAnnual report
「Foreign exchange loss ¥4.424 million」
The company recorded a ¥4.424 million foreign exchange loss in the second-quarter cumulative consolidated period, with the impact of foreign exchange movements on US dollar-denominated transactions, including AWS resale, continuing to appear in its results. - FY2023-Q1MaterialisedAnnual report
「Non-operating expenses amounted to ¥19.392 million. This was mainly due to losses on investment business partnerships of ¥7.525 million and foreign exchange losses of ¥11.412 million.」
The company recorded a ¥11.412 million foreign exchange loss as a non-operating expense in the first quarter in connection with foreign exchange movements affecting AWS resale and other transactions. - FY2022MaterialisedAnnual report
「Non-operating expenses amounted to ¥41.463 million. This was mainly due to losses on investment business partnerships of ¥21.447 million and foreign exchange losses of ¥14.953 million.」
The company recorded a ¥14.953 million foreign exchange loss as a non-operating expense in FY2022 in connection with foreign exchange movements. - FY2021RestatedAnnual report
「We seek to minimize foreign exchange risk by entering into forward exchange contracts.」
The policy of controlling risk on US dollar-denominated AWS resale transactions through forward exchange contracts has been reaffirmed. - FY2021-Q3MaterialisedAnnual report
「Although resale revenue benefited from steady ARPU (Note 4), driven by recurring orders from existing customers and increased AWS usage fees among major customers, and the number of accounts also increased steadily with the acquisition of new customers, continued yen appreciation has affected revenue translated into yen. For customers, however, yen appreciation is beneficial, and cloud usage is steadily increasing, resulting in higher revenue. The impact on profit is minor because yen appreciation also reduces procurement costs, just as it reduces revenue.」
The company states that continued yen appreciation has actually affected AWS resale revenue translated into yen. It explains that the impact on profit is minor because procurement costs have also declined. - FY2020RestatedAnnual report
「We seek to minimize foreign exchange risk by entering into forward exchange contracts.」
The policy of controlling the risk associated with US dollar-denominated AWS transactions through forward exchange contracts has been reaffirmed. - FY2019First statedAnnual report
「We seek to minimize foreign exchange risk by purchasing US dollars and depositing the funds with the settlement service provider shortly before the AWS monthly usage fee is finalized, while also using forward exchange contracts as necessary.」
While seeking to reduce foreign exchange risk through US dollar purchases and forward exchange contracts, the company notes the possibility of sharp fluctuations.