Foreign Exchange Risk Associated with Overseas Production and Imports

「Ordinary profit or ordinary loss (△) 42,803 △ 896,396"Foreign exchange gains 35,370 −"Foreign exchange losses − 20,096」

「We import products and components from overseas contract manufacturers. Because these transactions are settled in currencies other than the Japanese yen, we are exposed to foreign exchange fluctuation risk. If foreign exchange rates and other factors fluctuate sharply beyond expectations, the performance and financial position of our group may be adversely affected.」

「Segment profit declined from the same period of the previous year due to higher costs resulting from the prolonged historically weak yen.」

「Segment profit declined from the same period of the previous year due to higher costs resulting from the prolonged historically weak yen.」

「Although affected by higher costs resulting from the historically strong dollar and weak yen, a level not seen since 1990, the impact of price revisions, the concentrated launch of new products, and cost-reduction effects enabled」

「In terms of profit, although costs were pushed up by the weaker yen, gross profit increased by ¥68 million year on year and the gross profit margin improved by 2.4 percentage points year on year (compared with the standalone figures for the same period of the previous year) as a result of the price revisions, new product launches and cost reductions implemented in the second half of the previous fiscal year. The operating loss was reduced and improved from the same period of the previous year.」

「In addition to the end of demand for large-scale FPSC product projects related to COVID-19 vaccinations in the previous fiscal year, procurement costs increased due to soaring costs and sharp foreign exchange fluctuations, among other factors.」

「During the cumulative second quarter of the current fiscal year, Japan's economy continued to face severe changes in the external environment, including intensifying inflationary pressure from the prolonged situation in Ukraine, soaring raw material and energy prices, and a sharp depreciation of the yen, amid a renewed spread of COVID-19 infections.」

「Procurement costs have increased due to rising costs and sharp foreign exchange fluctuations since March, among other factors."Foreign exchange gains − 41,938」

「Foreign exchange gains　9,118　41,797」

「Foreign exchange gains − 10,928」

「Foreign exchange loss ¥4.421 million ¥3.697 million」

「Foreign exchange gain - ¥9.118 million」

「Foreign exchange loss ¥7.435 million ¥4.602 million」

「Foreign exchange loss ¥19.346 million ¥4.385 million」

「Foreign exchange loss ¥5.963 million ¥4.421 million」

「We will hedge the risk through detailed foreign exchange forward contracts and work to build a business structure less susceptible to foreign exchange movements by expanding overseas sales and increasing the domestic manufacturing ratio. However, if foreign exchange rates or other factors fluctuate sharply beyond expectations, this could adversely affect the group's business performance and financial position.」

「Foreign exchange loss - ¥7.435 million」

「Foreign exchange loss - ¥19.346 million」

「Foreign exchange loss - ¥5.963 million」

「Because we have a high overseas production ratio, our business is significantly affected by foreign exchange movements. We hedge this risk through detailed foreign exchange forward contracts. We are also working to build a business structure less susceptible to foreign exchange movements by expanding overseas sales and increasing the domestic manufacturing ratio.」

「The increase in procurement costs was also affected by some foreign exchange forward contracts remaining in place during the current fiscal year at rates less favorable than current market rates.」

「Procurement costs for overseas-manufactured products rose sharply because of yen depreciation. Although the company worked to reduce manufacturing costs and expenses, profit declined.」

「Although the company worked to reduce product costs, procurement costs increased because exchange rates for procuring dollar-denominated products were weaker against the yen than in the same period of the previous year. Ordinary profit was ¥61 million, up ¥4 million year on year, or 8.5%, while net profit attributable to owners of the parent was ¥62 million, up ¥19 million, or 46.3%. As a result of efforts to reduce dollar-denominated assets in the previous year, the company did not incur a significant loss in the current quarter and secured higher profit.」

「Although substantial foreign exchange losses in the same period of the previous year pressured profit as the yen appreciated, the company worked to reduce its dollar-denominated assets in the previous fiscal year, and as a result did not incur a significant loss in the current quarter and secured higher profit.」

「Operating profit was ¥76 million, a decline of ¥81 million year on year, or 51.6%. This was because procurement costs increased as the yen weakened year on year against the dollar for products and other items denominated in US dollars, despite efforts to reduce product costs and other measures.」

「A major factor was the ¥156 million foreign exchange loss incurred as the yen generally remained strong during the fiscal year.」

「In the third quarter, the yen generally remained strong, resulting in a ¥150 million foreign exchange loss on US dollar assets and other assets, which was a major factor behind the decline in profit.」

「In the same period of the previous year, foreign exchange gains on US dollar assets and other assets amounted to ¥41 million. However, as the yen appreciated sharply from the beginning of the year, the company recorded a foreign exchange loss of ¥244 million in the second quarter, which was a major factor behind the decline in profit.」

「In the same period of the previous year, foreign exchange gains on US dollar assets amounted to ¥84 million. However, as the yen appreciated from the beginning of the year, the company recorded a foreign exchange loss of ¥61 million in the first quarter, which was a major factor behind the decline in profit.」