Declining Competitiveness Due to Intense Price Competition and Yen Appreciation
First written in FY2016. 7 of 24 entries say "Mitigated", first in FY2021-Q1. Latest entry: FY2026.
The whole theme swung hardest in 2026: 41 of 85 companies on the "Worse" side.
5 other companies' latest entry also says "Other".
- FY2026Expanded the scope of price competition and foreign exchange exposure, with foreign exchange gains replacing lossesAnnual report
「The Group works to maintain its competitiveness by supplying high-quality products and services based on proprietary technologies, handling high-value-added products, and reducing procurement and manufacturing costs.」
The explanation expanded the scope of price competition to digital devices, digital engineering and ICT Products, with the Group responding through high-quality, high-value-added products and cost reductions. Foreign exchange effects shifted to a gain during the current fiscal year. - FY2026-H1MitigatedAnnual report
「Foreign exchange loss 65,010 17,177」
The foreign exchange loss declined from ¥65.010 million in the same period of the previous year to ¥17.177 million. Losses from exchange-rate fluctuations continued to arise, but their impact was smaller year on year. - FY2025WorsenedAnnual report
「This was due to the decline in ordinary profit and increases in foreign exchange losses, interest expenses and other items.」
The current fiscal year included a ¥81 million foreign exchange loss, with the impact of exchange-rate fluctuations appearing as a loss in operating results, compared with a foreign exchange gain in the previous fiscal year. - FY2025-H1MaterialisedAnnual report
「Foreign exchange loss 65,010」
The Group recorded a ¥65 million foreign exchange loss during the current interim consolidated accounting period, again reflecting the impact of exchange-rate fluctuations in actual results. - FY2024-Q3MitigatedAnnual report
「Improved margins based on a review of procurement and sales strategies, together with the full emergence of the effects of efforts to reduce selling, general and administrative expenses initiated in the second half of the previous fiscal year, made a significant contribution to the substantial improvement in segment profit.」
In ICT Products, the effects of improved margins from reviewing procurement and sales strategies and reducing selling, general and administrative expenses emerged in full, and segment profit improved despite lower sales. - FY2024-Q1MitigatedAnnual report
「In terms of profit, the Group had struggled in the same period of the previous year mainly because of surging procurement costs driven by yen depreciation and higher raw material costs, but profit improved substantially during the current period as a result of measures including price revisions. The effects of efforts to reduce selling, general and administrative expenses, initiated in the second half of the previous fiscal year, also emerged in full and made a significant contribution to the substantial improvement in segment profit.」
In response to higher procurement costs caused by yen depreciation and higher raw material costs and to the competitive environment, the Group pursued price revisions and reductions in selling, general and administrative expenses, resulting in a substantial improvement in profit. - FY2023-Q3MitigatedAnnual report
「As the rapid depreciation of the yen leveled off, product procurement costs began to decline. Together with a review of selling prices, the Group moved forward with measures to improve gross margins.」
In the digital peripheral-device business, measures to improve gross margins progressed as procurement costs declined following a pause in yen depreciation and selling prices were reviewed. - FY2023-Q2MaterialisedAnnual report
「Gross margins continued to decline due to higher product procurement costs caused by yen depreciation, surging import and domestic logistics costs, and intensifying competition with other companies. In response, the Group revised the selling prices of certain products, strengthened sales of higher-margin products and took other measures to improve margins, while also reducing selling, general and administrative expenses.」
Lower gross margins due to yen depreciation, higher procurement and logistics costs, and intensifying competition continued, prompting measures including price revisions and stronger sales of higher-margin products. - FY2023-Q1MaterialisedAnnual report
「Profit declined due to factors including higher product costs associated with sourcing components for certain products, rising import and domestic logistics costs, the continuing trend toward yen depreciation, and lower gross margins resulting from intensifying competition with other companies.」
Intensifying competition with other companies was reflected in actual operating results as lower gross margins and declining profit. - FY2022Added price competition risk for digital peripheral devicesAnnual report
「The various products offered in the digital peripheral-device business face frequent price competition because there are many competitors handling similar products, and differentiation based on product performance is difficult for some products.」
In addition to the price competition and foreign exchange risks in the existing memory- and device-related businesses, the disclosure identifies the risk that the digital peripheral-device business faces many competitors and ongoing price competition. - FY2022-Q1MitigatedAnnual report
「The foreign exchange loss included in non-operating expenses was ¥6.346 million.」
The foreign exchange loss declined from ¥20.784 million in the same period of the previous year to ¥6.346 million, easing the year-on-year impact of exchange-rate fluctuations on operating results. - FY2021Expanded the businesses subject to foreign exchange exposure, while the full-year foreign exchange loss narrowedAnnual report
「Regarding foreign exchange risk, primarily in the memory-module, telework solutions and digital peripheral-device businesses, foreign-currency-denominated trade receivables and trade payables arising from imports of products, raw materials and other items are exposed to the risk of exchange-rate fluctuations. Although the Group takes measures by engaging in derivative transactions, namely margin foreign exchange transactions, exchange-rate fluctuations may affect its financial condition and operating results.」
In addition to the memory business, the telework solutions and digital peripheral-device businesses were explicitly identified as subject to foreign exchange risk. The full-year foreign exchange loss was ¥9.671 million, down from ¥34.541 million in the previous fiscal year. - FY2021-Q3WorsenedAnnual report
「Foreign exchange loss 43,950」
The foreign exchange loss for the cumulative third-quarter period was ¥43.950 million, exceeding ¥10.069 million in the same period of the previous year and ¥31.973 million reported for the previous quarter. Losses attributable to foreign exchange exposure are increasing. - FY2021-Q2MitigatedAnnual report
「The foreign exchange loss included in non-operating expenses was ¥31.973 million.」
The foreign exchange loss declined from ¥37.159 million in the same period of the previous year to ¥31.973 million. However, losses from exchange-rate fluctuations continued to arise. - FY2021-Q1MitigatedAnnual report
「A foreign exchange loss of ¥20.784 million was recorded as a non-operating expense.」
The foreign exchange loss declined from ¥44.340 million in the same period of the previous year to ¥20.784 million. However, losses from exchange-rate fluctuations continued to arise. - FY2020-Q3MaterialisedAnnual report
「The Group recorded a ¥10 million foreign exchange loss as a non-operating expense because the value of its foreign-currency-denominated assets declined as a result of exchange-rate fluctuations during the cumulative third-quarter period of the current fiscal year.」
Exchange-rate fluctuations reduced the value of foreign-currency-denominated assets, resulting in a ¥10 million foreign exchange loss. - FY2020-Q2MaterialisedAnnual report
「Other operating income included a ¥43 million equity-method investment gain on Japan Sign Holdings Co., Ltd. However, the Group also recorded a ¥37 million foreign exchange loss because the value of its foreign-currency-denominated assets declined as a result of exchange-rate fluctuations during the cumulative second-quarter period of the current fiscal year.」
Exchange-rate fluctuations reduced the value of foreign-currency-denominated assets, resulting in a ¥37 million foreign exchange loss. The impact of foreign exchange exposure on operating results continues to be recognized. - FY2020-Q1MaterialisedAnnual report
「Other operating income included a ¥15 million equity-method investment gain on Japan Sign Holdings Co., Ltd. However, the Group also recorded a ¥44 million foreign exchange loss because the value of its foreign-currency-denominated assets declined as a result of exchange-rate fluctuations during the cumulative first-quarter period of the current fiscal year.」
Exchange-rate fluctuations reduced the value of foreign-currency-denominated assets, resulting in a ¥44 million foreign exchange loss. The impact of foreign exchange exposure on operating results was actually recognized. - FY2018Expanded the foreign exchange hedging measuresAnnual report
「Although the Group takes measures by engaging in derivative transactions, namely foreign exchange forward transactions and margin foreign exchange transactions, exchange-rate fluctuations may affect its financial condition and operating results.」
In addition to the existing foreign exchange forward transactions, margin foreign exchange transactions were also explicitly identified as a measure against exchange-rate fluctuations. - FY2017Expanded the applicable businesses and foreign exchange exposureAnnual report
「Price competition in the electrical and electronics industry is extremely intense. Since most of the principal customers of the device-related, touch-panel-related and memory-module-related businesses are major electrical and electronics manufacturers, the Group is naturally subject to strong demands from these customers for reductions in delivery prices. In addition, regarding foreign exchange risk, primarily in the memory-module-related business, foreign-currency-denominated trade receivables and trade payables arising from imports of raw materials and other items are exposed to the risk of exchange-rate fluctuations.」
The memory-module-related business was added to the businesses exposed to price competition risk, and its foreign exchange exposure from foreign-currency-denominated receivables and import payables was specified. - FY2017-Q3RestatedAnnual report
「However, there is no guarantee that these measures will remain effective and enable the Group to compete in the future. In particular, if relatively well-capitalized emerging manufacturers enter the Group's markets in earnest, it may become difficult to maintain or expand market share and preserve profitability.」
In addition to price competition and demands from major customers for price reductions, the risk of declining market share and profitability if emerging manufacturers enter the market continues to be disclosed. - FY2017-Q2RestatedAnnual report
「Price competition in the electrical and electronics industry is extremely intense. Since most of the principal customers of the device-related and touch-panel-related businesses are major electrical and electronics manufacturers, the Group is naturally subject to strong demands from these customers for reductions in delivery prices. In response, the Group continues to work to ensure a stable supply of reliable, high-quality products based on proprietary technologies.」
Demands from major electrical and electronics manufacturers for price reductions and intense price competition continue, and the policy of responding through a stable supply of high-quality products is reiterated. - FY2017-Q1RestatedAnnual report
「Price competition in the electrical and electronics industry is extremely intense. Since most of the principal customers of the device-related and touch-panel-related businesses are major electrical and electronics manufacturers, the Group is naturally subject to strong demands from these customers for reductions in delivery prices.」
Demands from major electrical and electronics manufacturers for price reductions and intense price competition continue to be identified as risks. - FY2016First statedAnnual report
「Price competition in the electrical and electronics industry is extremely intense. Since most of the principal customers of the device-related and touch-panel-related businesses are major electrical and electronics manufacturers, the Group is naturally subject to strong demands from these customers for reductions in delivery prices.」
The current business environment is described as including demands from major electrical and electronics manufacturers for price reductions, with the effects of new entrants and yen appreciation on profitability and price competitiveness also identified.