Finance Cost Burden from Exchange-Rate Fluctuations and Rising Interest Rates
First written in FY2016. 11 of 23 entries say "Materialised", first in FY2017-Q1. Latest entry: FY2026.
Swcc moved to the "Worse" side of this theme in 2019, 2 years after the typical company in this theme (2017).
The whole theme swung hardest in 2019: 5 of 7 companies on the "Worse" side.
4 other companies' latest entry also says "Other".
- FY2026Higher interest expense and lower foreign exchange lossesAnnual report
「Interest expense ¥642 million, foreign exchange loss ¥55 million」
Interest expense increased from ¥513 million in the previous fiscal year to ¥642 million, while the foreign exchange loss decreased from ¥126 million to ¥55 million. The breakdown of financial expenses and foreign exchange effects changed. - FY2026-H1Decrease in foreign exchange loss and increase in interest expenseAnnual report
「Interest expense 273 322 Foreign exchange loss 122 16」
Interest expense increased from ¥273 million to ¥322 million year on year, while the foreign exchange loss decreased from ¥122 million to ¥16 million, resulting in a change in the breakdown of financial expenses and foreign exchange effects. - FY2025MaterialisedAnnual report
「Non-operating expenses Interest expense 580 513 Foreign exchange loss 9 126」
A foreign exchange loss of ¥126 million was recorded during the fiscal year, while interest expense was ¥513 million. The impact of exchange rate fluctuations was reflected in the full-year results. - FY2025-H1MaterialisedAnnual report
「Although the Japanese economy is expected to continue its gradual recovery against a backdrop of a virtuous cycle of rising prices and wages, uncertainty remains due to sharp fluctuations in the yen exchange rate and ongoing geopolitical instability. Foreign exchange loss 122」
Amid continued sharp fluctuations in the yen exchange rate, a foreign exchange loss of ¥122 million was recorded during the interim consolidated accounting period. - FY2024Annual results: higher interest expense and a substantial decline in foreign exchange lossesAnnual report
「Interest expense ¥580 million, foreign exchange loss ¥9 million」
Interest expense increased from ¥520 million in the previous fiscal year to ¥580 million, while the foreign exchange loss fell sharply from ¥138 million to ¥9 million. - FY2024-Q3Higher interest expense and lower foreign exchange lossesAnnual report
「Interest expense 379 443 Foreign exchange losses 160 78」
Interest expense increased from ¥379 million to ¥443 million year on year, while foreign exchange losses declined from ¥160 million to ¥78 million, separating the breakdown of financial costs and foreign exchange effects. - FY2023WorsenedAnnual report
「Non-operating expenses Interest expense 363 520 Foreign exchange losses － 138」
Interest expense was ¥520 million and foreign exchange losses were ¥138 million for the year, indicating that the effects of financial costs and foreign exchange fluctuations had emerged in the results. - FY2023-Q3WorsenedAnnual report
「Foreign exchange losses 13 160」
Foreign exchange losses for the cumulative third-quarter period totaled ¥160 million, up from ¥13 million in the same period of the previous year. - FY2023-Q2WorsenedAnnual report
「During the cumulative second-quarter period, Japan’s economy showed signs of recovery as social and economic activity normalized against the backdrop of progress in vaccinations. However, it remained unpredictable amid the effects of geopolitical risks, including the Russia-Ukraine situation, continuing surges in raw material and energy prices, disruptions to global supply chains and a further sharp weakening of the yen. Foreign exchange losses 93」
The sharp weakening of the yen was explicitly identified as part of the external environment, and foreign exchange losses for the cumulative second-quarter period totaled ¥93 million. The impact of foreign exchange fluctuations increased from the ¥50 million loss in the previous quarter. - FY2023-Q1MaterialisedAnnual report
「The Group remained in an unpredictable environment amid continuing surges in raw material and logistics prices, the weakening yen and disruptions to global supply chains. Foreign exchange losses 50」
The weakening yen was identified as part of the external environment, and the Group recognized ¥50 million in foreign exchange losses during the first quarter, indicating that the impact of foreign exchange fluctuations had emerged in its results. - FY2022-Q1MaterialisedAnnual report
「Foreign exchange losses 39」
The Group recognized ¥39 million in foreign exchange losses during the cumulative first-quarter period, indicating that the impact of foreign exchange fluctuations had emerged in its results. - FY2021-Q3RestatedAnnual report
「Foreign exchange losses 16 30」
The Group recognized ¥30 million in foreign exchange losses during the cumulative third-quarter period, indicating that the impact of foreign exchange fluctuations continued to appear in its results. - FY2021-Q2MaterialisedAnnual report
「Foreign exchange losses 33」
The Group recognized ¥33 million in foreign exchange losses during the cumulative second-quarter period, indicating that the impact of foreign exchange fluctuations had emerged in its results. - FY2021-Q1MaterialisedAnnual report
「Foreign exchange losses 21」
The Group recognized ¥21 million in foreign exchange losses during the cumulative first-quarter period, indicating that the impact of foreign exchange fluctuations had emerged in its results. - FY2020RestatedAnnual report
「As of the end of the fiscal year, interest-bearing debt was ¥42.3 billion, equivalent to 34.5% of total assets. The Group is working to reduce this debt by cutting working capital through inventory reductions, raising funds through the sale of assets held and improving the efficiency of fund management through group financing.」
Interest rate risk is quantified as interest-bearing debt of ¥42.3 billion, or 34.5% of total assets, and the Group continues to respond through debt reduction and interest rate swaps. Its foreign exchange hedging policy is also reconfirmed. - FY2020-Q3MaterialisedAnnual report
「Foreign exchange loss 16」
The Group recognized ¥16 million in foreign exchange losses as a non-operating expense during the cumulative third-quarter period, indicating that the impact of foreign exchange fluctuations had emerged in its results. - FY2020-Q1MaterialisedAnnual report
「Foreign exchange loss 28」
The Group recognized ¥28 million in foreign exchange losses as a non-operating expense during the cumulative first-quarter period, indicating that the impact of foreign exchange fluctuations had emerged in its results. - FY2019-Q3MaterialisedAnnual report
「Foreign exchange losses 75」
The Group recognized ¥75 million in foreign exchange losses as a non-operating expense during the cumulative third-quarter period, indicating that the impact of foreign exchange fluctuations had emerged in its results. - FY2017RestatedAnnual report
「Although a high proportion of the Group’s domestic transactions are denominated in yen, some transactions are denominated in US dollars and other foreign currencies. Accordingly, the Group’s basic policy is to hedge to minimize foreign exchange risk. However, fluctuations in foreign exchange rates may result in foreign exchange losses, potentially affecting the Group’s performance and other aspects of its business.」
The Group continues to state that its basic policy is to hedge foreign exchange risk while acknowledging the possibility of losses from foreign exchange fluctuations. - FY2017-Q3RestatedAnnual report
「Foreign exchange losses 64」
The Group recognized ¥64 million in foreign exchange losses during the cumulative third-quarter period, indicating that the impact of foreign exchange fluctuations continued to appear in its results. - FY2017-Q2MaterialisedAnnual report
「Japan’s economy during the cumulative second-quarter period showed a gradual recovery in capital investment, but the outlook remained uncertain because of the yen’s appreciation and increasing uncertainty in overseas economies. Foreign exchange losses 168」
The business environment was characterized by the yen’s appreciation and increasing uncertainty in overseas economies, while ¥168 million in foreign exchange losses was recognized during the cumulative second-quarter period. - FY2017-Q1MaterialisedAnnual report
「Foreign exchange losses － 153」
The Group recognized ¥153 million in foreign exchange losses as a non-operating expense in the first quarter, indicating that the impact of foreign exchange fluctuations had emerged in its results. - FY2016First statedAnnual report
「The Group has a considerable amount of interest-bearing debt and is working to reduce it. However, a substantial rise in interest rates could increase its financial cost burden, potentially affecting the Group’s performance and other aspects of its business.」
The Group describes its interest-bearing debt as a “considerable amount” and also sets out its hedging policy for rising interest rates and foreign exchange fluctuations.