Foreign exchange volatility risk accompanying the acceleration of overseas expansion
First written in FY2016. 14 of 28 entries say "Materialised", first in FY2017-Q2. Latest entry: FY2027-H1.
The whole theme swung hardest in 2025: 73 of 159 companies on the "Worse" side.
- FY2027-H1MaterialisedAnnual report
「Foreign exchange loss ¥12 million ¥75 million」
Foreign exchange losses increased from ¥12 million in the same period of the previous year to ¥75 million in the current interim consolidated accounting period, indicating that foreign-exchange fluctuation risk has actually materialized as a non-operating expense. - FY2026MitigatedAnnual report
「The company recorded foreign exchange gains of ¥50 million as non-operating income, while no foreign exchange losses were recorded in non-operating expenses.」
The company shifted from foreign exchange losses of ¥148 million in the previous fiscal year to foreign exchange gains of ¥50 million in the current fiscal year. The foreign exchange risk itself and the impact of a ¥1 fluctuation in the Chinese yuan continue to be disclosed. - FY2026-H1MitigatedAnnual report
「Foreign exchange loss ¥133 million ¥12 million」
Foreign exchange losses decreased from ¥133 million in the same period of the previous year to ¥12 million, reducing the adverse impact of foreign exchange movements on non-operating income and expenses. - FY2025-H1MaterialisedAnnual report
「Foreign exchange loss － ¥133 million」
The company shifted from foreign exchange gains in the same period of the previous year to recording a foreign exchange loss of ¥133 million in the current interim consolidated accounting period. The impact of foreign exchange movements has materialized as a non-operating expense. - FY2024MitigatedAnnual report
「In terms of profit, operating profit was ¥1,240 million, down 49.1% from the previous fiscal year, due to lower plant utilization resulting from declining sales in China and Japan, rising energy costs and other factors, while ordinary profit was ¥1,421 million, down 40.6% from the previous fiscal year, due in part to the recording of foreign exchange gains.」
Although foreign exchange losses and deteriorating profitability at overseas subsidiaries had been reported through the previous year, the company recorded foreign exchange gains of ¥130 million in the current fiscal year, improving the way foreign exchange effects were reflected in non-operating income and expenses. Foreign exchange risk itself remains. - FY2024-Q3MitigatedAnnual report
「Ordinary income was ¥1,164 million, down 41.3% year on year, partly due to the recognition of foreign exchange gains.」
Although foreign exchange losses and deteriorating profitability at overseas subsidiaries had been reported through the same period of the previous year, the company recorded foreign exchange gains of ¥145 million in the current quarter. While the impact of foreign exchange movements remains, their effect on non-operating income and expenses has shifted from deterioration to improvement. - FY2024-Q2MitigatedAnnual report
「Ordinary profit was ¥808 million, down 47.0% year on year, due in part to the recording of foreign exchange gains.」
Although foreign exchange losses and deteriorating profitability at overseas subsidiaries had been reported through the same period of the previous year, the company recorded foreign exchange gains of ¥216 million in the current quarter and identified them as a factor affecting ordinary profit. - FY2023MaterialisedAnnual report
「Due to the impact of deterioration in the cost ratio resulting from increases in procurement costs exceeding price pass-through to products, as well as deteriorating profitability at overseas subsidiaries due to foreign exchange movements, operating profit was ¥2,436 million, down 19.9% from the previous fiscal year, ordinary profit was ¥2,394 million, down 20.4%, and net profit attributable to owners of the parent was ¥1,390 million, down 31.9%.」
Deteriorating profitability at overseas subsidiaries due to foreign exchange movements has materialized as a factor behind full-year declines in operating profit, ordinary profit and net profit attributable to owners of the parent. - FY2023-Q3WorsenedAnnual report
「In terms of profit, in addition to higher selling, general and administrative expenses in line with increased sales, operating profit was ¥2,083 million, down 19.0% year on year, ordinary profit was ¥1,983 million, down 22.0%, and quarterly net profit attributable to owners of the parent was ¥1,093 million, down 38.5%, due to factors including the deterioration in the cost ratio resulting from increases in procurement costs exceeding price pass-through to products, and deteriorating profitability at overseas subsidiaries due to foreign exchange movements.」
Deteriorating profitability at overseas subsidiaries due to foreign exchange movements continued to be a factor behind declines in operating profit, ordinary profit and quarterly net profit attributable to owners of the parent, while foreign exchange losses also amounted to ¥179.121 million. - FY2023-Q2MaterialisedAnnual report
「In terms of profit, in addition to higher selling, general and administrative expenses in line with increased sales, operating profit was ¥1,537 million, down 13.1% year on year, ordinary profit was ¥1,524 million, down 12.2%, and quarterly net profit attributable to owners of the parent was ¥905 million, down 28.0%, due to factors including the deterioration in the cost ratio resulting from increases in procurement costs exceeding price pass-through to products, and deteriorating profitability at overseas subsidiaries due to foreign exchange movements.」
Deteriorating profitability at overseas subsidiaries due to foreign exchange movements continues to be reflected in actual results as a factor behind year-on-year declines in operating profit, ordinary profit and quarterly net profit attributable to owners of the parent. - FY2023-Q1MaterialisedAnnual report
「In terms of profit, in addition to higher selling, general and administrative expenses in line with increased sales, operating profit was ¥705 million, down 11.4% year on year, ordinary profit was ¥698 million, down 8.3%, and quarterly net profit attributable to owners of the parent was ¥427 million, down 18.7%, due to factors including the deterioration in the cost ratio resulting from increases in procurement costs exceeding price pass-through to products, and deteriorating profitability at overseas subsidiaries due to foreign exchange movements.」
The impact of foreign exchange movements, including the sharp depreciation of the yen, has materialized as deteriorating profitability at overseas subsidiaries and year-on-year declines in operating profit, ordinary profit and quarterly net profit attributable to owners of the parent. - FY2022WorsenedAnnual report
「In the consolidated financial statements, the impact of fluctuations in the Chinese yuan on translated amounts during the current fiscal year is approximately ¥1.4 billion in sales and approximately ¥100 million in operating profit for each ¥1 fluctuation in the yuan.」
The company has quantified the impact of foreign exchange risk for the first time, indicating an impact of approximately ¥1.4 billion on sales and approximately ¥100 million on operating profit for each ¥1 fluctuation in the Chinese yuan. - FY2022-Q3MaterialisedAnnual report
「Foreign exchange losses 44,169 60,990」
Foreign exchange losses increased from ¥44.169 million in the same period of the previous year to ¥60.990 million, and foreign exchange risk continued to materialize as a non-operating expense. - FY2022-Q2MaterialisedAnnual report
「Foreign exchange losses 14,961 47,115」
Foreign exchange losses increased from ¥14.961 million in the same period of the previous year to ¥47.115 million, and foreign exchange risk continued to materialize as a non-operating expense. - FY2022-Q1MaterialisedAnnual report
「Foreign exchange losses 15,451 42,189」
Foreign exchange losses increased from ¥15.451 million in the same period of the previous year to ¥42.189 million, meaning foreign exchange risk materialized as a non-operating expense. - FY2021-Q3MaterialisedAnnual report
「Foreign exchange losses － 44,169」
The company recorded a foreign exchange loss of ¥44.169 million, which had not occurred in the same period of the previous year, meaning foreign exchange risk materialized as a non-operating expense. - FY2021-Q1MitigatedAnnual report
「Foreign exchange losses 40,374 15,451」
Foreign exchange losses decreased from ¥40.374 million in the same period of the previous year to ¥15.451 million. Meanwhile, the foreign currency translation adjustment declined, becoming a factor reducing net assets. - FY2020-Q3MaterialisedAnnual report
「Net assets amounted to ¥12,090 million, a decrease of ¥3,643 million compared with the end of the previous consolidated fiscal year (March 2019). This was mainly due to decreases in retained earnings accompanying the recognition of a quarterly net loss attributable to owners of the parent and in the foreign currency translation adjustment account.」
The impact of foreign exchange movements has appeared as a decrease in the foreign currency translation adjustment, a factor reducing net assets. - FY2020-Q2MaterialisedAnnual report
「This was mainly due to a decrease in the foreign currency translation adjustment and a decline in retained earnings resulting from the recording of a quarterly net loss attributable to owners of the parent, among other factors.」
The impact of foreign exchange movements has appeared as a decrease in the foreign currency translation adjustment, a factor reducing net assets. - FY2020-Q1MaterialisedAnnual report
「Foreign exchange losses 31,086 40,374」
Foreign exchange losses increased from ¥31.086 million in the same period of the previous year to ¥40.374 million, meaning foreign exchange risk materialized as an actual non-operating expense. - FY2019RestatedAnnual report
「We will continue to mitigate risk through currency-by-currency matching of receivables and payables, forward exchange contracts and other measures, while also working to build a more resilient business structure that is less affected by foreign exchange movements.」
The company continues to address foreign exchange exposure associated with overseas expansion through receivables and payables matching and forward exchange contracts. - FY2019-Q2WorsenedAnnual report
「In addition, partly due to the impact on net financial income and expenses of an increase in US dollar-denominated borrowings to fund additional investment in the Vietnam Plant, ordinary income was ¥1,340 million, down 4.2% year on year.」
The company states that US dollar-denominated borrowings increased with additional investment in the Vietnam plant, affecting financial income and expenses. Although foreign exchange losses are not specifically mentioned, the increase in exposure resulting from foreign-currency-denominated borrowings is indicated. - FY2019-Q1MaterialisedAnnual report
「Meanwhile, partly due to foreign exchange losses at a Chinese subsidiary, ordinary income was ¥682 million, down 4.0% year on year.」
Foreign exchange risk materialized as foreign exchange losses at a Chinese subsidiary and became a factor behind the year-on-year decline in ordinary profit. The quarterly consolidated income statement recorded a foreign exchange loss of ¥31.086 million. - FY2018RestatedAnnual report
「We will continue to mitigate risk through currency-by-currency matching of receivables and payables, forward exchange contracts and other measures, while also working to build a more resilient business structure that is less affected by foreign exchange movements. Chinese group companies and others have foreign-currency-denominated liabilities, including borrowings, and are therefore exposed to foreign exchange risk.」
The company continues to describe foreign exchange exposure associated with global expansion and the use of receivables and payables matching and forward exchange contracts as countermeasures. - FY2017WorsenedAnnual report
「In addition, the acceleration of global expansion is expected to increase foreign-currency-denominated transactions.」
The company describes an increase in exposure to foreign exchange risk, as the acceleration of global expansion is expected to increase foreign-currency-denominated transactions. - FY2017-Q3MitigatedAnnual report
「In terms of profit, although the cost ratio improved from the previous year, mainly overseas, operating profit was ¥1,405 million, down 9.4% year on year, due in part to the impact of lower sales. Meanwhile, non-operating income and expenses improved as a result of hedging foreign exchange risk, and ordinary profit was ¥1,340 million, up 2.8% year on year.」
While the decline in China sales in yen terms due to foreign exchange movements has continued, the company states that non-operating income and expenses improved as a result of hedging foreign exchange risk. - FY2017-Q2MaterialisedAnnual report
「In China, automotive-related business continued to drive performance, while newly developed high-value-added strategic products also grew. As a result, sales significantly exceeded the year-earlier period on a local-currency basis, but fell below the year-earlier period in yen terms due to the impact of foreign-exchange movements.」
The impact of foreign exchange movements has materialized as China sales, which increased in local-currency terms, falling below the prior-year level in yen terms. - FY2016First statedAnnual report
「Despite the impact of foreign exchange movements, including the depreciation of the Chinese yuan, ordinary profit was ¥1,666 million, up 3.1% year on year.」
The company states that foreign exchange impacts, including the depreciation of the Chinese yuan, worsened non-operating income and expenses and affected ordinary profit.