Risk of financial market fluctuations, including share prices, interest rates and foreign exchange rates
First written in FY2016. 3 of 8 entries say "Mitigated", first in FY2017. Latest entry: FY2026.
The whole theme swung hardest in 2022: 14 of 25 companies on the "Worse" side.
8 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Assuming a constant notional principal, the impact on the Group’s profit for the period before income taxes if variable interest rates rise by 1% is as follows. / Profit for the period before income taxes: △582」
The impact on profit before income taxes of a 1% rise in variable interest rates declined from ¥680 million to ¥582 million, with a reduction in borrowings and measures using interest rate swaps described. - FY2025WorsenedAnnual report
「As the Group raises funds through borrowings from financial institutions, it is exposed to interest rate fluctuation risk. …If variable interest rates rise by 1%, the impact on the Group’s profit for the period before income taxes is a loss of ¥680 million.」
Interest rate fluctuation risk newly materialized due to ¥135 billion in borrowings associated with the acquisition of デサイフェラ社, and the impact on profit before income taxes of a 1% rise in variable interest rates was quantified at ¥680 million. - FY2024Expanded foreign exchange hedging and lower share price sensitivityAnnual report
「To mitigate the above risks, the Group hedges foreign exchange risk through forward exchange contracts for a certain proportion of its foreign-currency-denominated transactions, based on its market risk management policy.」
The notional amount of forward exchange contracts to sell U.S. dollars increased from US$52 million to US$385 million, while the impact on accumulated other comprehensive income of a 10% change in share prices declined from ¥8,308 million to ¥7,923 million. - FY2023Lower share price sensitivity and higher foreign exchange sensitivityAnnual report
「To mitigate the above risks, the Group hedges foreign exchange risk through forward exchange contracts for a certain proportion of its foreign-currency-denominated transactions, based on its market risk management policy.」
While the Group continues to hedge through forward exchange contracts, the impact on accumulated other comprehensive income of a 10% change in share prices declined from ¥8,568 million to ¥8,308 million. - FY2022MitigatedAnnual report
「To mitigate the above risks, the Group hedges foreign exchange risk through forward exchange contracts for a certain proportion of its foreign-currency-denominated transactions, based on its market risk management policy.」
The Group continues to hedge foreign exchange risk through forward exchange contracts. The impact on accumulated other comprehensive income of a 10% change in share prices declined from ¥10,503 million to ¥8,568 million. - FY2018RestatedAnnual report
「To mitigate the above risks, the Group hedges foreign exchange risk through forward exchange contracts for a certain proportion of its foreign-currency-denominated transactions, based on its market risk management policy.」
The use of forward exchange contracts to address financial market and foreign exchange risks has been reconfirmed. - FY2017MitigatedAnnual report
「To mitigate the above risks, the Group hedges foreign exchange risk through forward exchange contracts for a certain proportion of its foreign-currency-denominated transactions, based on its market risk management policy.」
The Group explicitly describes hedging a certain proportion of foreign exchange risk on foreign-currency-denominated transactions through forward exchange contracts. - FY2016First statedAnnual report
「There is a risk that the fair value of assets and pension assets held by the Group will decline due to fluctuations in share prices, interest rates, foreign exchange rates and other financial markets, or that the yen value of payments for foreign-currency-denominated expenses will increase as the yen depreciates. If the share prices of equity instruments held by the Group at the reporting date fluctuate by 10%, accumulated other comprehensive income, net of tax, will increase or decrease by ¥10,802 million from the amount at the end of the previous consolidated fiscal year and by ¥10,657 million from the amount at the end of the current consolidated fiscal year.」
The Group’s exposure to financial market fluctuations, foreign-currency-denominated research and development expenses, pension assets, and price fluctuations in cross-shareholdings is described.