Financial Impact of Rising Foreign Exchange Rates and Interest Rates
First written in FY2016. 7 of 26 entries say "Mitigated", first in FY2021-Q2. Latest entry: FY2026-H1.
Nachi-Fujikoshi Corp. moved to the "Worse" side of this theme in 2018, 1 year before the typical company in this theme (2019).
The whole theme swung hardest in 2023: 13 of 27 companies on the "Worse" side.
9 other companies' latest entry also says "Mitigated".
- FY2026-H1MitigatedAnnual report
「Interest expense 567 519 Foreign exchange gains － 84 Foreign exchange losses 353 －」
Interest expense decreased from ¥567 million in the same period of the previous year to ¥519 million, while foreign exchange losses turned into foreign exchange gains. The impact of interest rates and exchange rates on earnings was more favorable than in the same period of the previous year. - FY2025MitigatedAnnual report
「Non-operating expenses, net, amounted to ¥1,402 million, down ¥997 million from net expenses of ¥2,400 million in the previous consolidated fiscal year. This was mainly due to a ¥368 million decrease in depreciation of idle property, plant and equipment and a ¥350 million decrease in interest expense.」
Interest expense decreased by ¥350 million year on year, and non-operating expenses also declined. - FY2025-H1Foreign exchange losses returned, while interest expense decreasedAnnual report
「Interest expense 780 567 Foreign exchange gains 242 － Foreign exchange losses － 353」
Foreign exchange gains of ¥242 million in the same period of the previous year turned into foreign exchange losses of ¥353 million in the interim consolidated accounting period, while interest expense decreased from ¥780 million to ¥567 million. - FY2024-Q2Interest expense increased, while foreign exchange gains also increasedAnnual report
「Interest expense 746 780」
Interest expense increased from ¥746 million in the same period of the previous year to ¥780 million. Meanwhile, foreign exchange gains increased from ¥68 million to ¥242 million, with the effects of exchange rates and interest rates moving in opposite directions. - FY2024-Q1MaterialisedAnnual report
「Interest expense 302 366」
Interest expense increased from ¥302 million in the same period of the previous year to ¥366 million in the first quarter of the current period. Foreign exchange losses of ¥117 million in the same period of the previous year turned into foreign exchange gains of ¥48 million in the current period. - FY2023-Q3WorsenedAnnual report
「Foreign exchange gains 1,597 273」
Foreign exchange gains decreased from ¥1,597 million in the same period of the previous year to ¥273 million in the current period, while interest expense increased from ¥654 million to ¥1,047 million. The impact of exchange-rate and interest-rate fluctuations on earnings moved in an unfavorable direction. - FY2023-Q2WorsenedAnnual report
「Ordinary profit was ¥7,047 million, down 19.6% year on year, mainly due to foreign exchange losses and higher interest expense during the period.」
Foreign exchange losses and higher interest expense actually materialized, resulting in a 19.6% year-on-year decline in ordinary profit. Foreign exchange gains decreased from ¥1,009 million in the same period of the previous year to ¥68 million in the current period, while interest expense increased from ¥451 million to ¥746 million. - FY2023-Q1MaterialisedAnnual report
「Meanwhile, ordinary income was ¥3,292 million, down 8.8% year on year, due to factors including foreign exchange losses and higher interest payments during the period. Net income attributable to owners of the parent was ¥2,216 million, down 6.9%.」
Foreign exchange losses of ¥117 million and interest expense of ¥302 million were recorded, with the financial impact of exchange-rate fluctuations and higher interest rates reflected in an 8.8% year-on-year decline in ordinary profit. - FY2022MitigatedAnnual report
「Non-operating income (expenses) amounted to net income of ¥75 million, a decrease of ¥335 million from a net expense of ¥260 million in the previous consolidated fiscal year. This was mainly due to a ¥961 million increase in foreign exchange gains.」
Although the realized impact of foreign-exchange fluctuations remains, non-operating income (expenses) shifted from a net expense to net income this fiscal year due to an increase in foreign exchange gains. - FY2022-Q3WorsenedAnnual report
「Uncertainty about the outlook remains, including sharp foreign-exchange fluctuations resulting from the impact of US policy rate increases.」
In addition to the previously cited risks related to foreign-exchange rates and interest-rate fluctuations, sharp foreign-exchange fluctuations resulting from US policy rate increases have emerged as a specific risk in the business environment. Meanwhile, on the profit and loss front, the yen's depreciation is described as a factor increasing profit. - FY2022-Q2MitigatedAnnual report
「Foreign exchange gains 338 1,009」
Foreign exchange gains increased from ¥338 million in the same period of the previous year to ¥1,009 million in the cumulative second quarter period, and the impact of foreign-exchange fluctuations on profit and loss moved in a favorable direction. - FY2022-Q1MitigatedAnnual report
「In addition, as the yen remained weak, operating income was ¥3.636 billion, up 50.5% year on year, and ordinary income was ¥3.610 billion, up 57.3%,」
Although the impact of foreign-exchange fluctuations continues, the yen's depreciation during the quarter emerged as a factor increasing profit. - FY2021RestatedAnnual report
「In addition, fluctuations in foreign-exchange rates resulting from foreign-currency-denominated commercial transactions may affect the performance and financial condition of our group. In addition, rising interest rates may increase interest expenses.」
The company continues to describe the financial risks arising from foreign-exchange fluctuations and rising interest rates. - FY2021-Q3MitigatedAnnual report
「Foreign exchange gains － 238」
Foreign exchange losses in the same period of the previous year changed to foreign exchange gains of ¥238 million in the cumulative third quarter period, with the impact of foreign-exchange fluctuations on profit and loss shifting from a loss to a gain. - FY2021-Q2MitigatedAnnual report
「Foreign exchange gains － 338」
Foreign exchange losses of ¥568 million in the same period of the previous year changed to foreign exchange gains of ¥338 million in the cumulative second quarter period, with the impact of foreign-exchange fluctuations on profit and loss shifting from a loss to a gain. - FY2021-Q1Foreign exchange gains recorded in the first quarterAnnual report
「Foreign exchange gain － 91」
Foreign exchange losses of ¥130 million recorded in the same period of the previous year changed to foreign exchange gains of ¥91 million in the first quarter. The impact of foreign-exchange fluctuations itself continued. - FY2020-Q3Cumulative third-quarter foreign exchange losses decreasedAnnual report
「Foreign exchange losses 853 666」
Cumulative third-quarter foreign exchange losses were ¥666 million, down from ¥853 million in the same period of the previous year. - FY2020-Q1First-quarter foreign exchange losses decreasedAnnual report
「Foreign exchange losses 181 130」
Foreign exchange losses decreased from ¥181 million in the same period of the previous year to ¥130 million in the first quarter. - FY2019RestatedAnnual report
「Fluctuations in foreign-exchange rates resulting from foreign-currency-denominated commercial transactions may affect the performance and financial condition of our group. In addition, rising interest rates may increase interest expenses.」
The company continues to describe the financial risks arising from foreign-exchange fluctuations and rising interest rates. - FY2019-Q3Cumulative third-quarter foreign exchange losses were unchanged year on yearAnnual report
「Foreign exchange losses 853 853」
Cumulative third-quarter foreign exchange losses were ¥853 million, unchanged from the same period of the previous year. - FY2019-Q2Cumulative second-quarter foreign exchange losses decreasedAnnual report
「Foreign exchange losses were ¥515 million.」
Cumulative second-quarter foreign exchange losses were ¥515 million, down from ¥606 million in the same period of the previous year. - FY2019-Q1First-quarter foreign exchange losses decreasedAnnual report
「Foreign exchange losses 416 181」
Foreign exchange losses decreased from ¥416 million in the same period of the previous year to ¥181 million in the first quarter. The impact of foreign-exchange fluctuations continued, but the loss for the quarter was lower than in the same period of the previous year. - FY2018WorsenedAnnual report
「Non-operating income (expenses) decreased by ¥35 million, from a net expense of ¥1,439 million in the previous consolidated fiscal year to a net expense of ¥1,404 million. Foreign exchange losses increased by ¥532 million.」
While total non-operating income (expenses) improved, foreign exchange losses increased by ¥532 million from the previous fiscal year, indicating a greater realized impact from foreign-exchange fluctuations. - FY2018-Q3WorsenedAnnual report
「Foreign exchange losses 99 853」
Cumulative third-quarter foreign exchange losses were ¥853 million, up from ¥99 million in the same period of the previous year. - FY2017RestatedAnnual report
「Fluctuations in foreign-exchange rates resulting from foreign-currency-denominated commercial transactions may affect the performance of our group. In addition, rising interest rates may increase interest expenses.」
The company continues to describe the financial risks arising from foreign-exchange fluctuations and rising interest rates. - FY2016First statedAnnual report
「Fluctuations in foreign-exchange rates resulting from foreign-currency-denominated commercial transactions may affect the performance of our group. In addition, rising interest rates may increase interest expenses.」
Separately from the impact of yen appreciation, foreign-exchange fluctuations and rising interest rates are described as general financial risks.