Foreign Exchange Fluctuation Risk

「Foreign exchange losses 1,662 5,281」

「Business profit increased to ¥16,862 million, up 60.4% year on year, and operating profit increased to ¥11,407 million, up 15.5%, driven by the recovery in European sales and growth in renovation sales in Japan. Although financial expenses increased due in part to foreign exchange fluctuations, profit before tax from continuing operations also increased to ¥4,459 million, up 9.1% year on year.」

「Pre-tax income (1,416)」

「In addition to continued price increases, the depreciation of the yen resulting from factors such as the widening interest-rate differential between Japan and the United States, and global monetary tightening, pose risks of putting downward pressure on the domestic economy.」

「In addition to the continued high prices of materials and energy, the depreciation of the yen resulting from factors such as the widening interest-rate differential between Japan and the United States, and global monetary tightening, pose risks of putting downward pressure on the domestic economy.」

「In addition to the continued high prices of materials and energy, the rapid depreciation of the yen resulting from factors such as the widening interest-rate differential between Japan and the United States, and global monetary tightening, pose risks of putting downward pressure on the domestic economy.」

「In addition, rapidly advancing exchange-rate movements, including the yen’s depreciation, and rising prices have become obstacles to a full-fledged recovery in economic activity.」

「Overseas business also recorded a substantial decline in revenue, as all regions were affected by lockdowns and by the impact of foreign-currency translation resulting from the weaker euro.」

「Although revenue increased in local-currency terms, the impact of foreign-currency translation resulting from the weaker euro led to a decline in revenue in yen terms.」

「Although overseas business generated higher revenue in local-currency terms amid challenging market conditions, the impact of foreign-currency translation resulting from the weaker euro led to a decline in revenue in yen terms.」

「Although overseas business grew in Europe, the Middle East and Africa, it was sluggish in the United States and Asia due in part to deteriorating business conditions. In addition, the impact of foreign-currency translation resulted in lower revenue year on year.」

「In addition to the finance department in Japan, the group has established four Regional Treasury Centers, one each in China, Singapore, Germany and the United States. Each center monitors foreign exchange monthly and executes hedging procedures as necessary to reduce the impact of exchange-rate movements.」

「In addition to the finance department in Japan, the group has established four Regional Treasury Centers, one each in China, Singapore, Germany and the United States. Each center monitors foreign exchange monthly and executes hedging procedures as necessary to reduce the impact of exchange-rate movements.」

「Operating profit declined 3.9% year on year to ¥69.570 billion, partly due to gains on the sale of subsidiaries and impairment losses at overseas subsidiaries. Although interest expense declined following the repayment of borrowings, profit before tax fell 13.3% to ¥68.216 billion, mainly because the one-off valuation gain associated with foreign-currency translation recognized in the previous consolidated fiscal year was no longer recorded.」

「Operating profit declined 8.4% year on year to ¥37.751 billion, partly due to impairment losses at overseas subsidiaries. Although interest expense declined following the repayment of borrowings, profit before tax fell 20.0% to ¥36.564 billion, mainly because the one-off valuation gain associated with foreign-currency translation in the same quarter of the previous year was no longer recorded.」

「Although interest expense declined following the repayment of borrowings, profit before tax fell 15.1% year on year to ¥17.183 billion, mainly because the one-off valuation gain associated with foreign-currency translation in the same quarter of the previous year was no longer recorded. Profit for the quarter attributable to owners of the parent declined 12.1% to ¥10.234 billion.」

「Revenue for the current consolidated fiscal year declined to ¥1,786.447 billion, down 5.5% year on year, due to the impact of foreign-currency translation, the deconsolidation of certain subsidiaries following the sale of businesses, and a decline in domestic demand resulting from the end of the energy-efficient housing points program in the previous year.」

「In the cumulative third quarter, revenue declined to ¥1.333672 trillion, down 7.4% year on year, due to the effects of foreign exchange translation, selective order acceptance, delays in the progress of core construction work at contracted properties, declining domestic renovation demand and changes in the scope of consolidation associated with the sale of a subsidiary, among other factors.」

「However, revenue for the six-month period ended in the second quarter of the current consolidated fiscal year declined to ¥870.428 billion, down 7.6% year on year, due in part to lower overseas revenue resulting from the impact of foreign-currency translation, the results of selective order acceptance in recent years and delays in the progress of main construction work, as well as changes in the scope of consolidation.」

「Revenue was ¥426.632 billion, down 7.2% year on year, due in part to lower overseas revenue resulting from the impact of foreign-currency translation and delays in the progress of main construction work for projects received, as well as changes in the scope of consolidation.」

「Exchange-rate movements may have a significant impact on the yen-denominated amounts of assets and liabilities arising from our group’s foreign-currency transactions. They may also have a significant impact on the prices and sales revenue of products traded in foreign currencies.」