Foreign Exchange Rate Fluctuation Risk and Hedging
First written in FY2016. 14 of 24 entries say "Materialised", first in FY2017-Q1. Latest entry: FY2025.
Terumo moved to the "Worse" side of this theme in 2022, 4 years after the typical company in this theme (2018).
The whole theme swung hardest in 2024: 14 of 32 companies on the "Worse" side.
2 other companies' latest entry also says "Worsened".
- FY2025WorsenedAnnual report
「Finance costs comprised interest expense, lease liabilities and a foreign exchange loss of ¥4,205 million, for a total of ¥6,247 million.」
The foreign exchange loss increased from ¥586 million in the previous fiscal year to ¥4,205 million in the current fiscal year, expanding the impact of exchange-rate fluctuations on profit and loss. Meanwhile, the policy of offsetting and mitigating the impact through forward exchange contracts and other measures remains in place. - FY2025-H1MaterialisedAnnual report
「This was mainly due to a ¥41.6 billion decrease in goodwill and intangible assets, primarily reflecting the impact of exchange rates moving toward yen appreciation, a ¥22.7 billion decrease in other financial assets due to the settlement of derivatives associated with the repayment of long-term borrowings, and a ¥10.0 billion decrease in cash and cash equivalents due to the repayment of long-term borrowings and dividend payments.」
The impact of exchange-rate movements toward yen appreciation materialized in the financial position as a ¥41.6 billion decrease in goodwill and intangible assets. - FY2024MaterialisedAnnual report
「At the end of the consolidated fiscal year, total assets were ¥1,831.4 billion, an increase of ¥229.2 billion from the end of the previous consolidated fiscal year. This was mainly due to a ¥28.1 billion increase in trade and other receivables due to the exchange-rate impact and higher revenue, a ¥37.0 billion increase in inventories due to the exchange-rate impact and other factors, a ¥45.0 billion increase in property, plant and equipment due to the exchange-rate impact and investments in production facilities and a new IT system, and a ¥50.0 billion increase in goodwill and intangible assets.」
The exchange-rate impact of yen depreciation materialized for the full year as a factor behind increases in trade and other receivables, inventories, property, plant and equipment, goodwill and intangible assets. The foreign exchange loss narrowed from ¥1.741 billion in the previous fiscal year to ¥586 million. - FY2024-Q3MaterialisedAnnual report
「Total assets increased by ¥89.4 billion to ¥1,691.7 billion. This was mainly due to a ¥27.5 billion increase in trade and other receivables, reflecting the exchange-rate impact from yen depreciation (the "exchange-rate impact") and higher revenue, a ¥22.9 billion increase in inventories due to the exchange-rate impact and other factors, a ¥18.7 billion increase in property, plant and equipment due to the exchange-rate impact and investments in production facilities and a new IT system, and a ¥20.6 billion increase in goodwill and intangible assets, partly offset by a ¥23.7 billion decrease in cash and cash equivalents due to the acquisition of treasury shares and other factors.」
The impact of yen depreciation materialized in FY2024-Q3 as a factor behind increases in trade and other receivables, inventories, property, plant and equipment, goodwill and intangible assets. - FY2024-Q2MaterialisedAnnual report
「Total assets increased by ¥146.2 billion to ¥1,748.4 billion. This was mainly due to a ¥30.4 billion increase in inventories, primarily reflecting the yen's depreciation, a ¥30.0 billion increase in property, plant and equipment due to the same exchange-rate impact and investments in production facilities and a new IT system, and a ¥52.0 billion increase in goodwill and intangible assets.」
The impact of yen depreciation materialized in FY2024-Q2 as a factor behind increases in inventories, property, plant and equipment, goodwill and intangible assets. - FY2024-Q1MaterialisedAnnual report
「Total assets increased by ¥68.6 billion to ¥1,670.8 billion. This was mainly due to a ¥22.9 billion increase in inventories, primarily reflecting the yen's depreciation, a ¥18.3 billion increase in property, plant and equipment due to the same exchange-rate impact and investments in production facilities and a new IT system, and a ¥38.5 billion increase in goodwill and intangible assets, partly offset by a ¥27.3 billion decrease in cash and cash equivalents due to bond redemptions and dividend payments.」
The impact of yen depreciation materialized in FY2024-Q1 as a factor behind increases in inventories, property, plant and equipment, goodwill and intangible assets. - FY2023MaterialisedAnnual report
「Finance costs comprised interest expense, lease liabilities and a foreign exchange loss of ¥1,741 million, for a total of ¥4,016 million.」
The impact of yen depreciation and exchange-rate fluctuations materialized in FY2023 as a foreign exchange loss of ¥1.741 billion and a foreign currency translation adjustment of ¥77.535 billion for foreign operations. - FY2023-Q3MaterialisedAnnual report
「Total assets increased by ¥69.8 billion to ¥1,543.5 billion. This was mainly due to a ¥38.5 billion increase in inventories resulting from the impact of yen depreciation, a ¥22.9 billion increase in property, plant and equipment due to the same foreign exchange impact described above and investment in production facilities and a new IT system, and a ¥21.7 billion increase in goodwill and intangible assets, partly offset by a ¥42.9 billion decrease in cash and cash equivalents due to the purchase of treasury shares and other factors.」
The impact of yen depreciation materialized as a factor behind increases in inventories, property, plant and equipment, goodwill and intangible assets. The impact of foreign exchange movements continued to affect the Company's financial position. - FY2023-Q2MaterialisedAnnual report
「Total assets increased by ¥185.2 billion to ¥1,658.9 billion. This was mainly due to a ¥34.5 billion increase in property, plant and equipment resulting from the impact of yen depreciation and investment in production facilities and a new IT system, and a ¥68.1 billion increase in goodwill and intangible assets.」
The impact of yen depreciation materialized as a factor behind increases in total assets, property, plant and equipment, goodwill and intangible assets. A foreign currency translation adjustment of ¥143.3 billion for foreign operations was also recorded in other comprehensive income. - FY2023-Q1MaterialisedAnnual report
「Total assets increased by ¥109.7 billion to ¥1,583.4 billion. This was mainly due to a ¥19.8 billion increase in property, plant and equipment resulting from the impact of yen depreciation and investment in production facilities and a new IT system, and a ¥48.8 billion increase in goodwill and intangible assets.」
The impact of yen depreciation materialized as a factor behind increases in total assets, property, plant and equipment, goodwill and intangible assets. A foreign currency translation adjustment of ¥95.3 billion was also recorded in other comprehensive income. - FY2022RestatedAnnual report
「Foreign-currency-denominated receivables and payables are exposed to the risk that future cash flows will fluctuate due to changes in exchange rates, but the impact is limited because this risk is offset by foreign exchange forward contracts and other instruments.」
The Company continues its hedging policy using foreign exchange forward contracts, interest rate and currency swaps, and other instruments, and maintains an operating standard of hedging approximately 100% of the foreign exchange risk associated with sales forecasts for the next 3 months. - FY2021MitigatedAnnual report
「Foreign-currency-denominated receivables and payables are exposed to the risk that future cash flows will fluctuate due to changes in exchange rates, but the impact is limited because this risk is offset by foreign exchange forward contracts and other instruments.」
The Company continues its hedging policy using foreign exchange forward contracts, interest rate and currency swaps, and other instruments, and recorded a foreign exchange gain of ¥219 million during the fiscal year. The impact on profit or loss decreased from the foreign exchange loss of ¥3,543 million recorded in the previous fiscal year. - FY2020MitigatedAnnual report
「Finance costs comprised interest expense, lease liabilities and a foreign exchange loss of ¥3,543 million, for a total of ¥5,371 million.」
The foreign exchange loss decreased from ¥3,825 million in the previous fiscal year to ¥3,543 million in the current fiscal year. Although foreign exchange risk itself continues, the Company continues its hedging policy of using structural measures, foreign exchange forward contracts, and interest rate and currency swaps. - FY2020-Q3MitigatedAnnual report
「Profit before income taxes was ¥85.5 billion, up 14.0% year on year, as the foreign exchange loss decreased to ¥800 million in the nine-month period ended 31 December from ¥3.2 billion in the same period of the previous year.」
The foreign exchange loss decreased from ¥3.2 billion in the same period of the previous year to ¥800 million, reducing the impact of foreign exchange movements on quarterly profit before income taxes compared with the same period of the previous year. - FY2020-Q2MitigatedAnnual report
「Profit before income taxes was ¥58.1 billion, up 30.4% year on year, as the foreign exchange loss decreased to ¥1.1 billion in the six-month period ended 30 September from ¥2.8 billion in the same period of the previous year.」
The foreign exchange loss decreased from ¥2.8 billion in the same period of the previous year to ¥1.1 billion, reducing the impact of foreign exchange movements on quarterly profit before income taxes compared with the same period of the previous year. - FY2020-Q1MitigatedAnnual report
「Profit before income taxes was ¥28.8 billion, up 23.2% year on year, as the foreign exchange loss decreased to ¥300 million in the nine-month period ended 30 June from ¥2.3 billion in the same period of the previous year.」
The foreign exchange loss decreased from ¥2.3 billion in the same period of the previous year to ¥300 million. The impact of foreign exchange movements remained, but the amount affecting profit or loss during the quarter was smaller than in the same period of the previous year. - FY2019MaterialisedAnnual report
「Profit before income taxes was ¥102.7 billion, down 3.7% from the previous fiscal year, as the foreign exchange loss increased by ¥3.3 billion.」
The increase in the foreign exchange loss materialized as a factor behind the decline in full-year profit before income taxes. - FY2019-Q3MaterialisedAnnual report
「Profit before income taxes was ¥75.0 billion, down 12.4% year on year, as the Company recorded a foreign exchange loss in the nine-month period ended 31 December, compared with a foreign exchange gain in the same period of the previous year.」
A foreign exchange loss was recorded during the nine-month period ended 31 December, contributing to the 12.4% year-on-year decline in profit before income taxes. - FY2019-Q2MaterialisedAnnual report
「Profit before income taxes was ¥44.5 billion, down 21.6% year on year, as the Company recorded a foreign exchange loss in the six-month period ended 30 September, compared with a foreign exchange gain in the same period of the previous year.」
A foreign exchange loss was recorded during the six-month period ended 30 September, contributing to the 21.6% year-on-year decline in profit before income taxes. - FY2019-Q1MaterialisedAnnual report
「Profit before income taxes was ¥23.4 billion, down 16.9% year on year, as the Company recorded a foreign exchange loss in the nine-month period ended 30 June, compared with a foreign exchange gain in the same period of the previous year.」
A foreign exchange loss was recorded in the first quarter, contributing to the decline in profit before income taxes. - FY2017-Q3RestatedAnnual report
「The Blood Systems Company reported lower sales due to the negative impact of yen appreciation, in addition to price revisions for products supplied to blood centers in the United States implemented in the second half of the previous fiscal year.」
The negative impact of yen appreciation continues to materialize as a factor behind lower overseas sales, together with price revisions for products supplied to the United States. - FY2017-Q2RestatedAnnual report
「The Blood Systems Company reported lower sales due to the negative impact of yen appreciation, in addition to price revisions for products supplied to blood centers in the United States implemented in the second half of the previous fiscal year.」
The negative impact of yen appreciation continues to materialize as a factor behind lower overseas sales, together with price revisions for products supplied to blood centers in the United States. - FY2017-Q1MaterialisedAnnual report
「Despite the negative impact of official price revisions in Japan and yen appreciation overseas, the catheter (TIS) business remained solid globally.」
The negative impact of yen appreciation materialized as a factor behind lower sales in the Cardiovascular business and other businesses, and a foreign exchange loss was also recorded in the quarterly income statement. - FY2016First statedAnnual report
「In addition to pursuing structural measures such as transferring production to overseas plants and procuring raw materials from overseas, the Company addresses this risk related to its receivables through flexible foreign exchange forward contracts.」
The Company recognized the impact on yen-denominated earnings as a risk and is responding through production transfers, overseas procurement and foreign exchange forward contracts.