Foreign exchange, interest rates and raw material prices

「当中間連結会計期間における世界経済は、通商政策や中東情勢などを巡り不確実性の高い状態が継続したものの、総じて緩やかな成長が続きました。」

「Looking ahead, protectionism in various countries is heightening tensions in the global economy, while peace negotiations concerning Russia's invasion of Ukraine and conflicts in the Middle East continue to proceed fitfully. The outlook therefore remains uncertain.」

「Across the group, revenue for the interim consolidated accounting period increased 5.5% year on year to ¥298,352 million, partly due to the weaker yen. Foreign exchange losses 1,264 3,078」

「In terms of profit, although operating profit benefited from the weaker yen, it was affected by surging raw material and fuel prices and higher research and development expenses, resulting in a 0.5% year-on-year decrease to ¥66,397 million. Ordinary profit decreased 4.3% to ¥63,042 million due to the decline in operating profit and foreign exchange losses, among other factors,」

「In terms of profit, operating profit decreased 12.6% year on year to ¥50,317 million. Although volumes of automotive-related products increased, operating profit was affected by lower volumes of products for semiconductor manufacturing equipment and higher labor costs due to inflation. Ordinary profit decreased 15.6% to ¥47,447 million, due to the decline in operating profit and foreign exchange losses, among other factors.」

「Overseas, although China's economic recovery stalled amid stagnation in the property market, consumption recovered mainly in the United States and the economy recovered moderately. However, the outlook remains uncertain due to the economic slowdown resulting from prolonged global monetary tightening and developments in the Chinese economy.」

「During the first quarter of the current consolidated fiscal year, the Japanese economy showed signs of recovery as economic and social activity normalized following the reclassification of COVID-19 as a Class 5 infectious disease. Overseas, although the economic recovery stalled in some parts of Europe, consumption recovered in the United States, China and elsewhere, and the economy recovered moderately. However, concerns remain that prolonged monetary tightening in response to globally rising prices will slow economic activity, and the outlook remains uncertain.」

「In terms of profit, operating profit benefited from the weaker yen, but was affected by lower volumes, higher labor costs due to inflation and surging raw material and fuel prices, resulting in a 20.1% year-on-year decrease to ¥66,761 million.」

「However, the global monetary tightening has begun to slow economic activity, and the effects of restrained capital investment and declining demand amid worsening business confidence are also emerging. The outlook therefore remains uncertain.」

「In addition to the continuing deterioration in the situation in Ukraine, concerns over an economic recession resulting from global monetary tightening and the impact of slowing semiconductor demand have emerged, leaving the outlook uncertain.」

「Operating profit declined 12.7% to ¥20.635 billion. Although the weaker yen had a positive effect, operating profit was affected by lower volume of automotive-related products, higher labor costs due to inflation, and surging raw material and fuel prices.」

「With regard to materials procurement, higher raw material prices, energy costs and logistics expenses in each region may increase manufacturing and sales costs and adversely affect operating results. Disruptions in the supply chain may also delay materials procurement and cause shipment backlogs to customers, adversely affecting the Group's business operations.」

「Foreign exchange gains 1,539 130」

「Foreign exchange losses － 943」

「Ordinary profit increased 2.0% to ¥53.006 billion due to increases in non-operating income, including foreign exchange gains and employment adjustment subsidies.」

「Foreign exchange gains 590 1,539」

「Foreign exchange gains － 636」

「Foreign exchange losses 735 3,071」

「Foreign exchange gains － 590」

「Foreign exchange losses 389 760」

「Operating profit increased 1.6% year on year to ¥19.114 billion, driven by higher net sales despite increases in research and development expenses, depreciation and amortization and other costs. Ordinary profit was ¥18.144 billion, broadly in line with the previous period due to an increase in foreign exchange losses and other factors. Net income attributable to owners of the parent increased 4.7% to ¥11.809 billion.」

「As a result of lower shipments in the power-related business and the impact of yen appreciation, total consolidated net sales for the fiscal year were ¥401.266 billion, down 7.9% year on year.」

「As a result, consolidated net sales for the nine-month period ended 31 December were ¥293.345 billion, down 5.5% year on year, partly reflecting the impact of yen appreciation.」

「As a result, consolidated net sales for the six-month period ended 30 September were ¥194.254 billion, down 7.8% year on year, partly reflecting the impact of yen appreciation.」

「As a result, consolidated net sales for the first quarter were ¥98.975 billion, down 5.3% year on year, partly reflecting the impact of yen appreciation.」

「The Group hedges short-term fluctuations in exchange rates among major currencies, including the US dollar, euro and yen, through forward foreign exchange contracts and other measures. However, yen appreciation reduces net sales and profit and adversely affects the Group's operating results.」