Impact of Exchange Rate Fluctuations on Converted Value and Price Competitiveness

「The Group estimates that a ¥1 movement in the yen against the US dollar would affect ordinary profit by approximately ¥30 million annually.」

「Foreign exchange gains 49 48」

「Foreign exchange gains 535 49」

「The Group estimates that a ¥1 movement in the yen against the US dollar would affect ordinary profit by approximately ¥30 million annually. In addition to promoting the smooth localization of production and expanding local procurement of materials, the Group is working to stabilize earnings by reducing production costs in each country.」

「Foreign exchange gains 446 346」

「Foreign exchange gains 572 535」

「Foreign exchange gains 389 350」

「Foreign exchange gains 186 446」

「Foreign exchange gains 111 572」

「Foreign exchange gains 45 389 Foreign currency translation adjustment account 1,063 1,522」

「Foreign exchange gains － 186」

「Foreign exchange gains － 111」

「Foreign exchange gains 31 45」

「Non-operating expenses Interest expense 95 98 Loss on disposal of property, plant and equipment 40 25 Foreign exchange losses 48 134」

「Non-operating expenses Interest expense 66 67 Loss on disposal of property, plant and equipment 34 3 Foreign exchange losses 126 93」

「Foreign exchange gains － 31 Foreign currency translation adjustment account △ 525 △ 1,485」

「Foreign exchange losses 23 48」

「Foreign exchange gains 34 － Foreign exchange losses － 126」

「Non-operating expenses Interest expense 33 33 Foreign exchange losses 0 103」

「Non-operating income for the consolidated fiscal year was ¥284 million, a decrease of ¥33 million, or 10.4%, from the previous consolidated fiscal year. This was mainly due to a decrease in foreign exchange gains. Non-operating expenses were ¥394 million, an increase of ¥61 million, or 18.3%. This was mainly due to an increase in foreign exchange losses.」

「Non-operating income Interest income 30 23 Dividend income 73 79 Foreign exchange gains 70 － Other 106 115 Total non-operating income 281 217 Non-operating expenses Interest expense 101 102 Loss on disposal of property, plant and equipment 18 88 Foreign exchange losses － 23」

「Other comprehensive income Valuation difference on available-for-sale securities 179 96 Foreign currency translation adjustment account △ 236 △ 1,232 Remeasurements of defined benefit plans 7 37 Share of other comprehensive income of equity-method affiliates 3 △ 5 Total other comprehensive income △ 45 △ 1,104」

「Net assets decreased by ¥592 million from the end of the previous consolidated fiscal year, mainly due to a decrease in the foreign currency translation adjustment account, to ¥65,317 million.」

「This was mainly due to an increase in foreign exchange gains. Non-operating expenses were ¥333 million, a decrease of ¥17 million, or 5.0% year on year. This was mainly due to a decrease in foreign exchange losses.」

「Non-operating income Interest income 33 30 Dividend income 69 73 Foreign exchange gains － 70 Other 94 106 Total non-operating income 197 281 Non-operating expenses Interest expense 62 101 Loss on disposal of property, plant and equipment 35 18 Foreign exchange losses 280 －」

「The Japanese economy continued to recover, supported by a stable yen depreciation trend, the Nikkei Stock Average trading around ¥20,000 and the full-scale emergence of Olympics-related construction demand. Personal consumption showed signs of recovery as employment and income conditions improved, with the recovery centred on corporate earnings.」

「In general, a stronger yen against other currencies, particularly the US dollar, which represents a significant portion of the Group’s sales, has an adverse effect on the Group, while a weaker yen has a favorable effect. In addition, for businesses that manufacture products in Japan and export them, a stronger yen against other currencies reduces the price competitiveness of those products and could adversely affect operating results and financial condition.」