Risk of Interest Expense from Interest Rate Fluctuations
First written in FY2018. 1 of 3 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2025: 33 of 94 companies on the "Worse" side.
- FY2026WorsenedAnnual report
「Our borrowings total approximately ¥5 billion, so a 1% increase in interest rates would increase interest payment costs by ¥50 million. In addition, as we return to a world of positive interest rates, banks are tightening their screening of bank loans.」
The return to a world of positive interest rates is identified as a new factor driving up funding costs, with a 1% increase in interest rates raising annual interest payments by ¥50 million on approximately ¥5 billion of borrowings. - FY2022RestatedAnnual report
「Borrowings at variable interest rates are exposed to the risk of interest rate fluctuations. For some of these borrowings, derivative transactions, specifically interest rate swaps, are used as hedging instruments under individual contracts to limit the risk of fluctuations in interest payments and fix interest expense.」
The policy of managing interest rate risk on variable-rate borrowings by hedging some of them with interest rate swaps has been reconfirmed. - FY2018First statedAnnual report
「Borrowings at variable interest rates are exposed to the risk of interest rate fluctuations. For some of these borrowings, derivative transactions, specifically interest rate swaps, are used as hedging instruments under individual contracts to limit the risk of fluctuations in interest payments and fix interest expense.」
The disclosure addresses the interest rate risk associated with variable-rate borrowings and the use of interest rate swaps for some borrowings.