Notice Regarding the Recognition of Non-operating Expenses (Derivative Losses and Valuation Losses on Derivatives) | NIPPON SHINDO CO.,LTD. (5753) timely disclosure

Worth reading

53Recurring

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Direction

Deterioration

Direction inferred from the company’s description.

Scale

5.22

¥100 million (total of a derivative loss of ¥360 million and a derivative valuation loss of ¥162 million)

Wording

Conditional

How definitive the wording is.

Recognition of Non-Operating Expenses (Derivative Loss and Derivative Valuation Loss)

Subject Entity

NIPPON SHINDO CO.,LTD. (the filing company)

Target Locations / Products

Derivative transactions in businesses for which copper and zinc are the principal raw materials

This disclosure08/07/2026

Cause

Raw material prices rose from April to June 2026. The derivative transactions are intended to avoid or mitigate the risk of fluctuations in the commodity prices of inventories resulting from declines in raw material prices.

Amount of Impact on Business Performance

A derivative loss of ¥360 million and a derivative valuation loss of ¥162 million recognized as non-operating expenses

Accounting period in which recognized

Cumulative first quarter of the fiscal year ending March 2027

Impact on Earnings Forecast

See the Notice Regarding Revisions to Earnings Forecasts announced today. The revised figures are not stated in this document.

Outlook

Derivative valuation gains and losses will fluctuate depending on future raw material price conditions. For the earnings forecast, see the Notice Regarding Revisions to Earnings Forecasts announced today.

Event that occurred
Item	Details
Event name	Recognition of Non-Operating Expenses (Derivative Loss and Derivative Valuation Loss)
Subject Entity	NIPPON SHINDO CO.,LTD. (the filing company)
Target Locations / Products	Derivative transactions in businesses for which copper and zinc are the principal raw materials
Cause	Raw material prices rose from April to June 2026. The derivative transactions are intended to avoid or mitigate the risk of fluctuations in the commodity prices of inventories resulting from declines in raw material prices.
Amount of Impact on Business Performance	A derivative loss of ¥360 million and a derivative valuation loss of ¥162 million recognized as non-operating expenses
Accounting period in which recognized	Cumulative first quarter of the fiscal year ending March 2027
Impact on Earnings Forecast	See the Notice Regarding Revisions to Earnings Forecasts announced today. The revised figures are not stated in this document.
Outlook	Derivative valuation gains and losses will fluctuate depending on future raw material price conditions. For the earnings forecast, see the Notice Regarding Revisions to Earnings Forecasts announced today.

Items this document does not state (17)

Date of occurrenceDate recognized / date notice receivedType of litigation or proceedingCourt or authorityPlaintiffDefendantDate of filing / date of actionClaim amount / surcharge amountAmount of receivables at risk of non-collection or delayed collectionSuspended operationsScheduled resumption dateInvestigation structureMeasures to prevent recurrenceDirectors' and officers' liabilityVoting rights ownership percentage before the changeVoting rights ownership percentage after the changePlanned follow-up disclosure

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Raw material prices, including copper and zinc, rose from April to June 2026. The derivative transactions are intended to avoid or mitigate the risk of fluctuations in the commodity prices of inventories resulting from declines in raw material prices.

How to read this page

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