Foreign Exchange and Interest Rate Risk
First written in FY2022. 2 of 4 entries say "Materialised", first in FY2023-Q2. Latest entry: FY2025-H1.
Genetec moved to the "Worse" side of this theme in 2022, 5 years after the typical company in this theme (2017).
The whole theme swung hardest in 2019: 5 of 6 companies on the "Worse" side.
1 other company's latest entry also says "Materialised".
- FY2025-H1MaterialisedAnnual report
「In terms of profit, dollar-denominated server usage fees increased due to the depreciation of the yen, while higher development costs also resulted in a slight increase.」
The depreciation of the yen increased dollar-denominated server usage fees, having an actual impact on profit in the GPS Business. - FY2023-Q2MaterialisedAnnual report
「In addition, the depreciation of the yen has affected purchase costs by driving up dollar-denominated license fees.」
The depreciation of the yen drove up dollar-denominated license fees, resulting in an actual impact on purchase costs. The Company also recorded a foreign exchange loss of ¥11,711 thousand as a non-operating expense. - FY2023-Q1WorsenedAnnual report
「The economic outlook has become increasingly uncertain due to the rapid depreciation of the yen arising from interest-rate differentials in Japan and overseas.」
The rapid depreciation of the yen was explicitly identified as a factor contributing to uncertainty in the external environment. The Company also recorded a foreign exchange loss of ¥7,079 thousand during the quarter under review. - FY2022First statedAnnual report
「Certain foreign-currency-denominated items are exposed to foreign exchange risk. …Items bearing variable interest rates are exposed to interest rate risk.」
The Company identified foreign exchange risk on foreign-currency-denominated accounts payable and interest rate risk on variable-rate borrowings, with short-term settlement, consideration of forward exchange contracts, and shorter borrowing periods as countermeasures.