Foreign Exchange and Interest Rate Risk
First written in FY2016. 23 of 35 entries say "Materialised", first in FY2017-Q1. Latest entry: FY2026.
Nippon Sheet Glass moved to the "Worse" side of this theme in 2016, 3 years before the typical company in this theme (2019).
The whole theme swung hardest in 2023: 13 of 27 companies on the "Worse" side.
4 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Assuming no changes in other conditions, a 1% increase in interest rates would result in an annual increase in interest expense of ¥4.130 billion (¥3.840 billion in the fiscal year ended March 2025).」
Annual interest expense sensitivity to higher interest rates increased from ¥3.840 billion to ¥4.130 billion. Finance costs also increased from ¥28.732 billion in the previous year to ¥32.966 billion. - FY2026-H1MaterialisedAnnual report
「Total equity was ¥134.4 billion, a decrease of ¥8.1 billion from ¥142.4 billion at the end of March 2025. The decrease in total equity was mainly due to the impact of foreign exchange movements, partly mitigated by an increase in the value of assets in Argentina resulting from hyperinflation adjustments under IAS 29.」
Foreign exchange movements actually emerged as an ¥8.1 billion decrease in total equity from the end of March 2025. The increase in asset values resulting from hyperinflation adjustments in Argentina partly mitigated the impact. - FY2025WorsenedAnnual report
「Assuming no changes in other conditions, a 1% increase in interest rates would result in an annual increase in interest expense of ¥3.840 billion (¥3.299 billion in the fiscal year ended March 2024).」
Annual interest expense sensitivity to a 1% increase in interest rates increased from ¥3.299 billion to ¥3.840 billion. - FY2025-H1MaterialisedAnnual report
「Total equity was ¥141.3 billion, a decrease of ¥12.5 billion from ¥153.8 billion at the end of March 2024. The decrease in total equity was mainly due to the foreign exchange impact of the stronger yen and recognition of an interim loss during the six-month consolidated period.」
Foreign exchange risk emerged in the interim results as a ¥12.5 billion reduction in total equity due to the stronger yen. - FY2024WorsenedAnnual report
「The improvement in profit or loss resulting from these factors was partly offset by net finance costs of ¥28.2 billion, which increased from ¥17.4 billion in the previous consolidated fiscal year, mainly due to higher market interest rates during the period.」
The impact of higher market interest rates increased net finance costs from ¥17.4 billion in the previous year to ¥28.2 billion. Annual interest expense sensitivity to a 1% increase in interest rates also rose from ¥2.458 billion to ¥3.299 billion. - FY2024-Q3MaterialisedAnnual report
「Net finance costs increased to ¥20.4 billion (¥11.3 billion in the same period of the previous year), mainly due to higher market interest rates.」
The impact of higher market interest rates emerged as an increase in finance costs, with finance costs rising from ¥11.3 billion in the same period of the previous year to ¥20.4 billion. - FY2024-Q2MaterialisedAnnual report
「Net finance costs increased to ¥14.0 billion (¥6.6 billion in the same period of the previous year), mainly due to higher market interest rates.」
The risk of higher interest rates emerged as an increase in finance costs, with net finance costs rising from ¥6.6 billion in the same period of the previous year to ¥14.0 billion. - FY2024-Q1MaterialisedAnnual report
「Net finance costs increased to ¥6.4 billion (¥2.8 billion in the same period of the previous year), mainly because interest rates rose in the first quarter.」
The risk of higher interest rates emerged as an increase in finance costs, with net finance costs rising from ¥2.8 billion in the same period of the previous year to ¥6.4 billion. - FY2023Annual update to foreign exchange sensitivity analysisAnnual report
「Assuming no changes in other conditions, a 1% appreciation of the yen against other major currencies would reduce the amount of equity on the consolidated balance sheet for the fiscal year ended March 2023 by approximately ¥3.0 billion (a reduction of approximately ¥4.0 billion in the fiscal year ended March 2022). It would also reduce the loss for the year on the consolidated income statement for the fiscal year ended March 2023 by approximately ¥400 million (in the fiscal year ended March 2022, it would have reduced profit for the year by approximately ¥100 million).」
The sensitivity of equity to a 1% appreciation of the yen was updated from approximately ¥4.0 billion to approximately ¥3.0 billion. The company also disclosed sensitivity showing that a 1% increase in interest rates would increase annual interest expense by ¥2.458 billion. - FY2023-Q2Increase in equity due to foreign currency translation differences and other factorsAnnual report
「Total equity was ¥183.0 billion, an increase of ¥13.6 billion from ¥169.4 billion at the end of March 2022. The increase in total equity was mainly due to foreign currency translation differences, changes in the fair value of cash flow hedges, a decrease in retirement benefit obligations, and hyperinflation adjustments, although these were partly offset by the recognition of impairment losses on goodwill and intangible assets.」
Total equity increased by ¥13.6 billion from the end of March 2022, with foreign currency translation differences, hedge valuations, a decrease in retirement benefit obligations, and hyperinflation adjustments contributing to the increase. - FY2023-Q1Increase in equity due to foreign currency translation differences and other factorsAnnual report
「Total equity was ¥209.6 billion, an increase of ¥40.2 billion from ¥169.4 billion at the end of March 2022. The increase in total equity was mainly due to foreign currency translation differences, changes in the fair value of cash flow hedges, a decrease in retirement benefit obligations, and recognition of profit for the first quarter ended.」
Total equity increased by ¥40.2 billion from the end of March 2022, with foreign currency translation differences, changes in the fair value of cash flow hedges, and a decrease in retirement benefit obligations identified as the main factors behind the increase. - FY2022WorsenedAnnual report
「Assuming no changes in other conditions, a 1% appreciation of the yen against other major currencies would reduce the amount of equity on the consolidated balance sheet for the fiscal year ended March 2022 by approximately ¥4.0 billion (a reduction of approximately ¥3.1 billion in the fiscal year ended March 2021). It would also reduce profit for the year on the consolidated income statement for the fiscal year ended March 2022 by approximately ¥100 million (in the fiscal year ended March 2021, it would have reduced the loss for the year by approximately ¥100 million).」
The foreign exchange sensitivity analysis was updated, with the impact of a 1% appreciation of the yen on equity increasing from approximately ¥3.1 billion to approximately ¥4.0 billion. - FY2022-Q3Increase in equity due to the weaker yen and hedge valuationsAnnual report
「Total equity was ¥118.1 billion, an increase of ¥38.3 billion from ¥79.8 billion at the end of March 2021. The increase in total equity was mainly due to recognition of profit for the nine months ended the third quarter, changes in the fair value of cash flow hedges, and the impact of the weaker yen.」
Total equity increased by ¥38.3 billion from the end of March 2021, mainly due to profit for the year, changes in the fair value of cash flow hedges, and the impact of the weaker yen. - FY2022-Q2RestatedAnnual report
「The Group considers its analysis of business and other risks disclosed in the annual securities report for the previous fiscal year to remain valid during the second quarter of the current consolidated cumulative period. There were no material changes to the business and other risks described in the annual securities report for the previous fiscal year during the second quarter of the current consolidated cumulative period.」
The company stated that there had been no material changes in foreign exchange or interest rate risk. - FY2022-Q1Increase in equity due to foreign currency translation differences and other factorsAnnual report
「The increase in total equity was mainly due to foreign currency translation differences, changes in the fair value of cash flow hedges, and recognition of profit for the first quarter ended.」
Changes in foreign currency translation differences and hedge valuations actually emerged as factors behind the increase in total equity in the first quarter. - FY2021-Q3MaterialisedAnnual report
「Revenue for the nine months ended the third quarter was ¥357.4 billion (¥425.8 billion in the same period of the previous year), down 16% year on year due to the sharp decline in demand in the first quarter. However, revenue for the three months of the third quarter recovered to the previous year’s level. Revenue excluding the impact of foreign exchange was down 14% year on year.」
Revenue including the impact of foreign exchange movements fell 16% year on year on a cumulative basis and was still down 14% excluding that impact, indicating that foreign exchange risk continued to affect performance. Meanwhile, revenue for the three months of the third quarter recovered to the previous year’s level. - FY2021-Q2MaterialisedAnnual report
「Revenue for the six months ended the second quarter was ¥221.5 billion (¥288.6 billion in the same period of the previous year), down 23% year on year, due to the sharp decline in demand in the first quarter. Revenue excluding the impact of foreign exchange was down 21% year on year.」
Revenue for the six months ended the second quarter fell 23% year on year and was still down 21% excluding the impact of foreign exchange. The impact of foreign exchange movements on performance continued to emerge in actual results. - FY2021-Q1MaterialisedAnnual report
「Revenue for the first quarter ended was ¥91.9 billion (¥147.1 billion in the same period of the previous year), down 38% year on year, reflecting unprecedented deterioration in market conditions as well as the impact of foreign exchange movements, although the latter was relatively limited. Revenue excluding the impact of foreign exchange was down 34% year on year.」
The impact of foreign exchange movements continued to emerge in actual results as one factor behind the decline in revenue. - FY2020MaterialisedAnnual report
「Assuming no changes in other conditions, a 1% appreciation of the yen against other major currencies would reduce the amount of equity on the consolidated balance sheet for the fiscal year ended March 2020 by approximately ¥3.1 billion (a reduction of approximately ¥3.3 billion in the fiscal year ended March 2019). It would also reduce the loss for the year on the consolidated income statement for the fiscal year ended March 2020 by approximately ¥100 million (in the fiscal year ended March 2019, it would have reduced profit for the year by approximately ¥200 million).」
The company updated its foreign exchange sensitivity analysis and explained that the impact of the stronger yen had actually emerged in equity, profit or loss, and revenue. - FY2020-Q3MaterialisedAnnual report
「Third-quarter revenue was ¥425.8 billion (¥459.5 billion in the same period of the previous year), down 7% year on year, due to the impact of foreign exchange movements and deteriorating market conditions in the Group’s key regions, among other factors. Revenue excluding the impact of foreign exchange was down 3% year on year.」
Revenue for the nine months ended the third quarter fell 7% year on year due to foreign exchange movements and other factors, and was still down 3% excluding the impact of foreign exchange. - FY2020-Q2MaterialisedAnnual report
「In the second quarter, revenue was ¥288.6 billion (¥308.1 billion in the same period of the previous year), down 6% year on year, due mainly to the impact of foreign exchange movements and other factors. Excluding the impact of foreign exchange, revenue was down 2% year on year.」
Foreign exchange movements emerged as one of the main factors behind the 6% year-on-year decline in revenue. Revenue was down 2% even excluding the impact of foreign exchange. - FY2020-Q1MaterialisedAnnual report
「Revenue was ¥147.1 billion (¥158.4 billion in the same period of the previous year), down 7% year on year, mainly due to the significant impact of the stronger yen.」
Revenue fell 7% year on year due to the stronger yen, indicating that foreign exchange risk had emerged in the company’s performance. - FY2019MaterialisedAnnual report
「Assuming no changes in other conditions, a 1% appreciation of the yen against other major currencies would reduce equity on the consolidated balance sheet for the fiscal year ending March 2019 by approximately ¥3,300 million and reduce profit for the year on the consolidated income statement for the fiscal year ending March 2019 by approximately ¥200 million.」
Foreign exchange sensitivity was updated, with disclosure that a 1% appreciation of the yen would reduce equity by approximately ¥3.3 billion and profit for the year by approximately ¥200 million. In actual results, total equity also declined by ¥11.2 billion due to foreign currency translation differences and other factors related to the stronger yen. - FY2019-Q3MaterialisedAnnual report
「Total equity decreased by ¥15.1 billion from the end of March 2018, after restatement, to ¥128.7 billion during the cumulative third quarter of the current consolidated fiscal year. This decrease was mainly because the negative foreign currency translation impact of the stronger yen against the currencies of the Group’s major regions exceeded quarterly profit for the cumulative third quarter and the increase in asset values resulting from the application of hyperinflationary accounting in Argentina.」
The negative foreign currency translation impact of the stronger yen materialized as a ¥15.1 billion decrease in total equity from the end of March 2018. - FY2019-Q2MaterialisedAnnual report
「In the Americas, revenue for the cumulative second quarter declined by ¥200 million from the same period of the previous year to ¥82.8 billion, because hyperinflationary accounting was applied to the business in Argentina and its results were consolidated using the exchange rate at the end of the period.」
Application of hyperinflationary accounting to the Argentine business and translation at the period-end exchange rate reduced revenue in the Americas by ¥200 million year on year. - FY2019-Q1MaterialisedAnnual report
「As of the end of June 2018, total equity decreased by ¥8.7 billion from the end of March 2018 to ¥135.1 billion during the cumulative first quarter of the current consolidated fiscal year, due to the foreign currency translation impact of the stronger yen.」
The foreign currency translation impact of the stronger yen was reflected in an ¥8.7 billion decrease in total equity. - FY2018RestatedAnnual report
「Assuming no changes in other conditions, a 1% appreciation of the yen against other major currencies would reduce equity on the consolidated balance sheet for the fiscal year ending March 2018 by approximately ¥3,500 million and reduce profit for the year on the consolidated income statement for the fiscal year ending March 2018 by approximately ¥50 million.」
The Group disclosed full-year sensitivity to foreign exchange risk, indicating that a 1% appreciation of the yen would reduce equity by approximately ¥3.5 billion and profit for the year by approximately ¥50 million. - FY2018-Q3MaterialisedAnnual report
「In Europe, revenue for the cumulative third quarter of the current consolidated fiscal year increased by ¥14.6 billion from the same period of the previous year to ¥177.1 billion, due to the foreign currency translation impact of the weaker yen.」
The foreign currency translation impact of the weaker yen was reflected in a year-on-year increase of ¥14.6 billion in European revenue. - FY2018-Q2MaterialisedAnnual report
「As of the end of September 2017, total equity increased by ¥16.7 billion from the end of March 2017 to ¥150.4 billion, due to the recognition of quarterly profit during the cumulative second quarter of the current consolidated fiscal year and the foreign currency translation impact of the weaker yen.」
The foreign currency translation impact of the weaker yen continued to materialize as an increase in total equity. - FY2018-Q1MaterialisedAnnual report
「As of the end of June 2017, total equity increased by ¥7.0 billion from the end of March 2017 to ¥140.7 billion, due to the recognition of quarterly profit during the cumulative first quarter of the current consolidated fiscal year and the foreign currency translation impact of the weaker yen.」
The foreign currency translation impact of the weaker yen was reflected in the increase in total equity, and foreign exchange risk continued to materialize. - FY2017MaterialisedAnnual report
「Revenue from the architectural glass business in the current consolidated fiscal year declined from the previous fiscal year due to the foreign currency translation impact of the stronger yen.」
The foreign currency translation impact of the stronger yen materialized as a decline in full-year revenue. - FY2017-Q3MaterialisedAnnual report
「Revenue for the cumulative third quarter of the current consolidated fiscal year was below the same period of the previous year due to the foreign currency translation impact of the stronger yen, but increased on a like-for-like basis excluding the translation impact.」
The foreign currency translation impact of the stronger yen has continued to materialize as a year-on-year decline in cumulative revenue. - FY2017-Q2MaterialisedAnnual report
「Revenue from the architectural glass business in the cumulative second quarter of the current consolidated fiscal year declined from the same period of the previous year due to the foreign currency translation impact of the stronger yen.」
The foreign currency translation impact of the stronger yen has continued to materialize as a decline in architectural glass business revenue. - FY2017-Q1MaterialisedAnnual report
「Revenue from the architectural glass business in the cumulative first quarter of the current consolidated fiscal year declined from the same period of the previous year due to the foreign currency translation impact of the stronger yen.」
The foreign currency translation impact of the stronger yen was reflected in revenue, and foreign exchange risk materialized. - FY2016First statedAnnual report
「Because the Group has production facilities in 28 countries and conducts sales activities in more than 130 countries, it is exposed to risks from fluctuations in foreign exchange rates and interest rates in the countries and regions where it operates.」
The Group recognizes foreign exchange and interest rate risks associated with its global production and sales network and seeks to hedge them.