Non-speculative Treasury Management and Risk Mitigation Using Derivatives
First written in FY2016. 4 of 7 entries say "Restated". Latest entry: FY2025.
The whole theme swung hardest in 2019: 2 of 23 companies on the "Worse" side.
9 other companies' latest entry also says "Other".
- FY2025Specification of hedging transactions, including forward foreign exchange contracts, and the reporting structureAnnual report
「We have established internal rules allowing the use of forward foreign exchange contracts for foreign-currency-denominated receivables and payables and purchases of inventories, principally imported raw materials, to avoid losses from future fluctuations in foreign exchange rates. The status of derivatives transactions during the relevant period is reported to the Executive Officers' Meeting.」
In addition to the previous use of interest rate swaps and metal forward contracts, forward foreign exchange contracts for foreign-currency-denominated receivables and payables and imported raw materials, as well as a reporting structure to the Executive Officers' Meeting every 6 months, have been specified. - FY2024Specification of hedged items and the reporting structureAnnual report
「We have established internal rules allowing the use of interest rate swaps on part of our borrowings from financial institutions to reduce interest expense, and metal forward contracts to avoid the risk from price fluctuations in raw materials affected by international market prices. These transactions entail risks from fluctuations in foreign exchange rates, market interest rates and metal prices, respectively.」
The purposes and eligible items for interest rate swaps and metal forward contracts have been specified under the previous policy of avoiding risks associated with fluctuations in foreign exchange rates, interest rates and raw material prices. - FY2023RestatedAnnual report
「Derivatives are used to avoid the risks associated with fluctuations in foreign exchange rates, interest rates and raw material prices, and our policy is not to engage in speculative transactions.」
The company continues its policy of limiting cash management to short-term deposits and similar instruments, relying primarily on bank borrowing for funding, and using derivatives while avoiding speculation. - FY2021RestatedAnnual report
「Our group limits cash management to short-term deposits and similar instruments, while its basic policy for raising funds is to borrow from banks and other financial institutions. Derivatives are used to avoid the risks associated with fluctuations in foreign exchange rates, interest rates and raw material prices, and our policy is not to engage in speculative transactions.」
The company continues its policy of limiting cash management to short-term deposits and similar instruments, relying primarily on bank borrowing for funding, and using derivatives while avoiding speculation. - FY2018RestatedAnnual report
「Our group limits cash management to short-term deposits and similar instruments, while its basic policy for raising funds is to borrow from banks and other financial institutions. Derivatives are used to avoid the risks associated with fluctuations in foreign exchange rates, interest rates and raw material prices, and our policy is not to engage in speculative transactions.」
The company continues its policy of limiting cash management to short-term deposits and similar instruments, relying primarily on bank borrowing for funding, and using derivatives while avoiding speculation. - FY2017RestatedAnnual report
「Our group limits cash management to short-term deposits and similar instruments, while its basic policy for raising funds is to borrow from banks and other financial institutions. Derivatives are used to avoid the risks associated with fluctuations in foreign exchange rates, interest rates and raw material prices, and our policy is not to engage in speculative transactions.」
The company continues its policy of limiting cash management to short-term deposits and similar instruments, relying primarily on bank borrowing for funding, and using derivatives while avoiding speculation. - FY2016First statedAnnual report
「Our group limits cash management to short-term deposits and similar instruments, while its basic policy for raising funds is to borrow from banks and other financial institutions. Derivatives are used to avoid the risks associated with fluctuations in foreign exchange rates, interest rates and raw material prices, and our policy is not to engage in speculative transactions.」
Cash management is limited to short-term deposits and similar instruments, and bank borrowing is the basic source of funding. Derivatives are limited to mitigating risks from fluctuations in foreign exchange rates, interest rates and raw material prices, and the company does not engage in speculative transactions.