Foreign-Exchange Risk Associated with Overseas Sourcing
First written in FY2018. 4 of 6 entries say "Restated". Latest entry: FY2024.
TRaaS On Product moved to the "Worse" side of this theme in 2024, 2 years after the typical company in this theme (2022).
The whole theme swung hardest in 2022: 43 of 67 companies on the "Worse" side.
1 other company's latest entry also says "Reframed".
- FY2024ReframedAnnual report
「The company outsources the manufacture of IoT products to overseas companies and conducts overseas transactions relating to the sale of and provision of services for some IoT products. As most of these transactions are denominated in foreign currencies, primarily U.S. dollars, the company considers measures from time to time to mitigate foreign exchange risk in response to currency movements. However, it is difficult to eliminate foreign exchange risk completely, and sudden currency movements could affect the company's business and results.」
In addition to the previously disclosed risk associated with outsourced overseas production, the company now includes overseas transactions relating to IoT product sales and service provision as subject to foreign exchange risk. - FY2023RestatedAnnual report
「The company outsources the manufacture of IoT products to overseas companies, and most of its purchasing transactions are denominated in foreign currencies, primarily U.S. dollars. Accordingly, the company enters into transactions to mitigate foreign exchange risk in response to currency movements. However, it is difficult to eliminate foreign exchange risk completely, and sudden currency movements could affect the company's business and results.」
The company continues to disclose the foreign exchange risk associated with foreign-currency purchases that remains after hedging. - FY2021RestatedAnnual report
「Most purchasing transactions are denominated in foreign currencies, primarily U.S. dollars. Accordingly, the company enters into transactions to mitigate foreign exchange risk in response to currency movements, but it is difficult to eliminate foreign exchange risk completely, and」
The company continues to describe foreign-currency purchases, foreign exchange hedging, and the foreign exchange risk remaining after hedging. - FY2020RestatedAnnual report
「The Group outsources the manufacture of IoT devices to overseas companies, and most of its purchasing transactions are denominated in foreign currencies, primarily U.S. dollars. Accordingly, the Group enters into transactions to mitigate foreign exchange risk in response to currency movements. However, it is difficult to eliminate foreign exchange risk completely, and sudden currency movements could affect the Group's business and results.」
The company has reconfirmed the foreign exchange risk associated with outsourced overseas production and foreign-currency purchases, as well as the residual risk that cannot be completely eliminated even after hedging. - FY2019RestatedAnnual report
「The Group outsources the manufacture of IoT devices to overseas companies, and most of its purchasing transactions are denominated in foreign currencies, primarily U.S. dollars. Accordingly, the Group enters into transactions to mitigate foreign exchange risk in response to currency movements. However, it is difficult to eliminate foreign exchange risk completely, and sudden currency movements could affect the Group's business and results.」
The company continues to disclose foreign-currency purchases, foreign exchange hedging using currency options and other instruments, and the residual risk. - FY2018First statedAnnual report
「The Group outsources the manufacture of IoT devices to overseas companies, and most of its purchasing transactions are denominated in foreign currencies, primarily U.S. dollars. Accordingly, the Group enters into transactions to mitigate foreign exchange risk in response to currency movements. However, it is difficult to eliminate foreign exchange risk completely, and sudden currency movements could affect the Group's business and results.」
Purchases denominated in foreign currencies account for a substantial portion of procurement, and although the company hedges them using currency options and other instruments, it states that sudden currency movements cannot be completely eliminated.