Foreign Exchange Risk Associated with Overseas Transactions
First written in FY2016. 10 of 27 entries say "Materialised", first in FY2017-Q1. Latest entry: FY2026.
Nippon Thompson moved to the "Worse" side of this theme in 2016, 3 years before the typical company in this theme (2019).
The whole theme swung hardest in 2024: 14 of 31 companies on the "Worse" side.
13 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Non-operating income and expenses were a net gain of ¥1,059 million, due mainly to the recognition of foreign exchange gains, and ordinary profit was ¥5,162 million, up 262.9% year on year.」
Compared with the foreign exchange loss of ¥79 million in the previous period, the Company recorded a foreign exchange gain of ¥625 million in the current period, improving the foreign exchange impact on profit and loss. The Company continues to recognize the need for hedging through forward exchange contracts and the remaining risk. - 2026-05-11Cited as achievedRevisions to earnings forecasts
「Ordinary income and net income attributable to owners of the parent also exceeded the previous forecast, owing to the increase in operating income and the recognition of foreign-exchange gains resulting from the significant depreciation of the yen, among other factors.」
The disclosure stated that foreign-exchange gains resulting from yen depreciation contributed to the outperformance of full-year results. - FY2026-H1MitigatedAnnual report
「Foreign exchange gain - 7」
Compared with the foreign exchange loss of ¥302 million in the same period of the previous year, the Company recorded a foreign exchange gain of ¥7 million in the interim consolidated accounting period, indicating an improvement in the foreign exchange impact on profit and loss. - FY2025MaterialisedAnnual report
「Foreign exchange loss 79」
Sharp exchange rate fluctuations were reflected in profit and loss as a foreign exchange loss of ¥79 million for the period. - FY2025-H1MaterialisedAnnual report
「Sharp exchange rate fluctuations resulting from shifts in monetary policy in various countries」
Sharp exchange rate fluctuations were cited as part of the business environment, and a foreign exchange loss of ¥302 million was recorded in the interim consolidated accounting period, reflecting the impact of foreign exchange fluctuations in the results. - FY2024-Q3RestatedAnnual report
「In Europe, although demand for machine tools remained sluggish, sales increased because demand for general industrial machinery, including various medical devices, remained firm, as well as due to the positive effect of the yen's depreciation and other factors.」
Foreign exchange fluctuations continued to affect regional results, with the effect of the yen's depreciation contributing to higher sales in Europe. - FY2024-Q1Regional impact of the yen's depreciationAnnual report
「In Europe, although demand for machine tools remained sluggish, sales increased due to higher demand for general industrial machinery and the positive effect of the yen's depreciation, among other factors.」
While foreign exchange fluctuation risk continues to affect results, the effect of the yen's depreciation was cited as a factor behind higher European sales in the current quarter. - FY2023RestatedAnnual report
「Accordingly, the Company hedges foreign exchange fluctuation risk through forward exchange contracts and other measures, but it is impossible to eliminate all such risk.」
The Company continues to recognize that foreign exchange fluctuation risk remains despite hedging through forward exchange contracts and other measures. - FY2023-Q3RestatedAnnual report
「Meanwhile, uncertainty about the outlook continued due to soaring raw material prices and inflation against the backdrop of the situation in Ukraine and other factors, as well as sharp exchange rate fluctuations resulting from interest rate hikes and policies to reduce monetary easing by central banks in various countries.」
The Company continues to recognize the risk of sharp exchange rate fluctuations resulting from interest rate hikes and the reduction of monetary easing by central banks in various countries. - FY2023-Q2MitigatedAnnual report
「Meanwhile, uncertainty about the outlook continued due to soaring raw material prices and inflation against the backdrop of the situation in Ukraine and other factors, as well as sharp exchange rate fluctuations resulting from global monetary tightening.」
While the risk of sharp exchange rate fluctuations continues, the Company recorded a foreign exchange gain of ¥1,444 million in the cumulative second quarter due to the effect of the yen's depreciation, making the foreign exchange impact a contributor to profit. - FY2022MitigatedAnnual report
「Non-operating income and expenses were a net gain of ¥1,590 million, due mainly to the recognition of foreign exchange gains, and ordinary profit was ¥7,488 million, compared with ordinary profit of ¥225 million in the previous period.」
The Company recorded a foreign exchange gain of ¥1,219 million in the current period, compared with a foreign exchange gain of ¥399 million in the previous period, making foreign exchange a factor improving profit and loss. The Company continues to recognize the need for hedging through forward exchange contracts and other measures, as well as foreign exchange fluctuation risk. - FY2022-Q2MitigatedAnnual report
「Foreign exchange gain - 141」
In the cumulative second quarter, the Company recorded a foreign exchange gain of ¥141 million, improving the foreign exchange impact on profit and loss from the foreign exchange loss of ¥108 million in the same period of the previous year. - FY2021MitigatedAnnual report
「Non-operating income and expenses were a net gain of ¥785 million, due mainly to the recognition of foreign exchange gains in non-operating income and other factors, and ordinary profit was ¥225 million, down 82.2% year on year.」
The result changed from a foreign exchange loss of ¥480 million recorded in the previous period to a foreign exchange gain in the current period, which contributed to ordinary profit. Foreign exchange risk itself and the need for hedging remain. - FY2021-Q3MitigatedAnnual report
「Foreign exchange loss 338 215」
The foreign exchange loss was ¥215 million in the cumulative third quarter, down from ¥338 million in the same period of the previous year. The impact of foreign exchange fluctuations remained, but was smaller than in the same period of the previous year. - FY2021-Q2MitigatedAnnual report
「Foreign exchange loss 549 108」
The foreign exchange loss was ¥108 million in the cumulative second quarter, down from ¥549 million in the same period of the previous year. However, foreign exchange fluctuation risk continued to be reflected in the results. - FY2021-Q1Decrease in quarterly foreign exchange lossAnnual report
「Foreign exchange loss 376 65」
The foreign exchange loss was ¥65 million in the first quarter, down from ¥376 million in the same period of the previous year, but foreign exchange fluctuation risk continued to be reflected in the results. - FY2020MaterialisedAnnual report
「Foreign-exchange losses」
A foreign exchange loss of ¥480 million was recorded during the period, reflecting foreign exchange fluctuation risk in the results. The decline in overseas sales also included the effects of the yen's appreciation and other factors. - FY2020-Q3MaterialisedAnnual report
「In Europe, although demand for machine tools remained firm, sales declined due to sluggish demand for general industrial machinery and other products, as well as the negative effect of the yen's appreciation.」
The negative effect of the yen's appreciation appeared as a decline in European sales, and a foreign exchange loss of ¥338 million was recorded in the cumulative third quarter. - FY2020-Q2MaterialisedAnnual report
「In Europe, sales declined due to sluggish performance in areas such as general industrial machinery and precision machinery, as well as the negative effect of the yen's appreciation.」
The negative effect of the yen's appreciation appeared as a decline in European sales, and a foreign exchange loss of ¥549 million was also recorded in the cumulative second quarter. - FY2020-Q1MaterialisedAnnual report
「Foreign exchange loss 376」
Foreign exchange loss was ¥376 million in the first quarter, and foreign exchange fluctuation risk was reflected in the results. - FY2019RestatedAnnual report
「The Group hedges foreign exchange fluctuation risk through forward exchange contracts and other measures, but it is impossible to eliminate all such risk. In addition, foreign-currency-denominated items, including sales, expenses and assets of overseas consolidated subsidiaries in the United States, the Netherlands, China and Thailand, are translated into yen for the preparation of the consolidated financial statements and are subject to the effects of exchange rate fluctuations.」
The Group continues to disclose foreign exchange fluctuation risk associated with its overseas business and foreign-currency translation while implementing hedges through forward exchange contracts and other measures. - FY2018-Q1MitigatedAnnual report
「In terms of earnings, although net sales increased, operating profit was ¥480 million, down 24.5% year on year, due mainly to higher costs associated with the launch of the new core business system. Ordinary profit was ¥514 million, up 735.2% year on year, reflecting the yen's depreciation against the previous year and other factors. Net income attributable to owners of the parent was ¥702 million, compared with a net loss attributable to owners of the parent of ¥30 million in the same period of the previous year.」
The impact shifted from the negative effect of the yen's appreciation through the previous year, with the yen's depreciation during the current quarter cited as a factor behind the increase in ordinary profit. - FY2017MaterialisedAnnual report
「In overseas markets, demand for electronics-related equipment and precision machinery increased in Europe and North America, and sales increased from the previous fiscal year in local-currency terms, but sales declined due to the negative impact of the stronger yen.」
Although demand and sales increased in local-currency terms, overseas sales on a yen basis declined due to the stronger yen. - FY2017-Q3MaterialisedAnnual report
「In overseas markets, demand for electronics-related equipment and precision machinery and other products remained firm in Europe and North America, and sales increased year on year in local-currency terms, but sales declined due to the negative impact of the stronger yen.」
Although sales increased in local-currency terms in Europe and North America, sales declined on a yen basis due to the negative impact of the stronger yen. - FY2017-Q2MaterialisedAnnual report
「In overseas markets, demand for electronics-related equipment and precision machinery and other products remained firm in Europe and North America, and sales increased year on year in local-currency terms, but sales declined due to the negative impact of the stronger yen.」
Although sales increased in local-currency terms, overseas sales declined due to the stronger yen. The Company also recorded foreign exchange losses of ¥730 million. - FY2017-Q1MaterialisedAnnual report
「In overseas markets, demand for electronics-related equipment and precision machinery and other products remained firm in North America, but sales declined due to the impact of the stronger yen.」
The stronger yen affected overseas sales, and the Company also recorded foreign exchange losses of ¥600 million during the quarter. - FY2016First statedAnnual report
「Although the Company hedges foreign exchange risk through forward exchange contracts and other measures, it is impossible to eliminate that risk entirely.」
The Company recorded foreign exchange losses of ¥415 million during the period, indicating that the impact of foreign exchange movements was reflected in results even after hedging.