Foreign Exchange Risk Associated with Growth in Overseas Sales
First written in FY2016. 5 of 16 entries say "Worsened", first in FY2021. Latest entry: FY2026.
Nippon Chemi-Con moved to the "Worse" side of this theme in 2020, 2 years after the typical company in this theme (2018).
The whole theme swung hardest in 2019: 69 of 120 companies on the "Worse" side.
13 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Overseas sales accounted for 78.6% of consolidated net sales in the fiscal year ended March 2025 and 80.8% in the fiscal year ending March 2026. Accordingly, the Group hedges this risk using forward foreign-exchange contracts and other instruments, but there is no guarantee that all of the risk can be covered, and the Group's performance and financial condition may be affected by foreign-exchange movements.」
The overseas sales ratio rose from 78.6% to 80.8%, again quantifying the Group's exposure to foreign-exchange movements. - FY2025MitigatedAnnual report
「Overseas sales accounted for 79.8% of consolidated net sales in the fiscal year ended March 2024 and 78.6% in the fiscal year ended March 2025. Accordingly, the Group hedges this risk using forward foreign-exchange contracts and other instruments, but there is no guarantee that all of the risk can be covered, and the Group's performance and financial condition may be affected by foreign-exchange movements.」
The overseas sales ratio declined from 79.8% to 78.6%. The Group continues to recognize that forward foreign-exchange contracts and other instruments cannot cover the entire exposure. - FY2024MitigatedAnnual report
「Overseas sales accounted for 80.8% of consolidated net sales in the fiscal year ended March 2023 and 79.8% in the fiscal year ended March 2024. Accordingly, the Group hedges this risk using forward foreign-exchange contracts and other instruments, but there is no guarantee that all of the risk can be covered, and the Group's performance and financial condition may be affected by foreign-exchange movements.」
The overseas sales ratio declined from 80.8% to 79.8%. The Group continues to recognize that forward foreign-exchange contracts and other instruments cannot cover the entire exposure. - FY2024-Q2A weaker yen boosted exports.Annual report
「Overall conditions remained solid as semiconductor shortages at automobile manufacturers began to ease, exports performed well against a backdrop of the weaker yen, and demand for components for vehicle electrification increased.」
Regarding foreign-exchange movements, the disclosure states that the weaker yen had the effect of boosting exports related to automobiles. It does not quantify a change in foreign-exchange risk itself. - FY2024-Q1RestatedAnnual report
「During the cumulative first quarter under review, the global economy was affected by soaring raw material and energy prices resulting from the prolonged situation in Ukraine, as well as sharp foreign-exchange movements, although」
Regarding foreign-exchange risk associated with the high overseas sales ratio, the disclosure states that sharp foreign-exchange movements continued to affect the economic environment. - FY2023WorsenedAnnual report
「Overseas sales accounted for 80.6% of consolidated net sales in the fiscal year ended March 2022 and 80.8% in the fiscal year ended March 2023. Accordingly, the Group hedges this risk using forward foreign-exchange contracts and other instruments, but there is no guarantee that all of the risk can be covered, and the Group's performance and financial condition may be affected by foreign-exchange movements.」
The overseas sales ratio rose from 80.6% to 80.8%, again quantifying the Group's exposure to foreign-exchange movements. - FY2023-Q3WorsenedAnnual report
「The economic environment remained uncertain, including sharp foreign-exchange movements resulting from US policy rate hikes primarily aimed at curbing inflation.」
In addition to the previous rapid depreciation of the yen, the disclosure identifies sharp foreign-exchange movements against a backdrop of US policy rate hikes as an economic risk. - FY2023-Q2Rapid Yen Depreciation AcceleratesAnnual report
「In Japan, although the yen depreciated sharply due to the effects of US monetary policy, the economy remained on a gradual recovery trend as personal consumption recovered with the easing of measures against the disease.」
In connection with the foreign-exchange risk arising from the high overseas sales ratio, the disclosure identifies the rapid depreciation of the yen as part of the economic environment during the quarter. - FY2022WorsenedAnnual report
「Overseas sales accounted for 80.0% of consolidated net sales in the fiscal year ended March 2021 and 80.6% in the fiscal year ended March 2022. Accordingly, the Group hedges this risk using forward foreign-exchange contracts and other instruments, but there is no guarantee that all of the risk can be covered, and the Group's performance and financial condition may be affected by foreign-exchange movements.」
The overseas sales ratio rose from 80.0% to 80.6%, again quantifying the Group's exposure to foreign-exchange movements. - FY2021WorsenedAnnual report
「Overseas sales accounted for 76.0% of consolidated net sales in the fiscal year ended March 2020 and 80.0% in the fiscal year ended March 2021. Accordingly, the Group hedges this risk using forward foreign-exchange contracts and other instruments, but there is no guarantee that all of the risk can be covered, and the Group's performance and financial condition may be affected by foreign-exchange movements.」
The disclosure shows that the overseas sales ratio rose from 76.0% to 80.0% and again explicitly identifies the Group's exposure to foreign-exchange risk. - FY2021-Q2MaterialisedAnnual report
「The main factors were an increase of ¥321 million in capital stock and capital surplus from the exercise of stock acquisition rights, and a decrease of ¥1,143 million in the foreign currency translation adjustment account.」
The foreign currency translation adjustment account decreased by ¥1,143 million, contributing to a decrease in net assets during the quarter. The statement of income also recorded a ¥272 million foreign-exchange loss, reflecting the effects of foreign-exchange movements in actual results. - FY2018RestatedAnnual report
「Overseas sales accounted for 76.0% of consolidated net sales in the fiscal year ended March 2017 and 77.6% in the fiscal year ended March 2018. Accordingly, the Group hedges this risk using forward foreign-exchange contracts and other instruments, but there is no guarantee that all of the risk can be covered, and the Group's performance may be affected by foreign-exchange movements.」
Against a backdrop of an overseas sales ratio of 77.6%, the Group continues to recognize the risk that forward foreign-exchange contracts cannot hedge the entire exposure. The fiscal year also included a ¥883 million foreign-exchange loss. - FY2017-Q3MaterialisedAnnual report
「The Group worked to strengthen its earnings base by strengthening information sharing among sales, production and materials procurement and optimizing intra-group logistics to reduce inventories and transportation costs. However, due to sharp fluctuations in foreign-exchange rates, net sales for the cumulative third quarter were ¥8,609.9 million, down 3.3% year on year, operating income was ¥1,906 million, down 8.8%, ordinary income was ¥1,233 million, down 29.3%, and the net loss for the quarter attributable to owners of the parent was ¥464 million, compared with a net loss attributable to owners of the parent of ¥6,427 million in the same period of the previous year.」
Sharp fluctuations in foreign-exchange rates were reflected in the cumulative third-quarter results through declines in net sales, operating income and ordinary income, as well as a net loss for the quarter attributable to owners of the parent. - FY2017-Q2RestatedAnnual report
「Due in part to the effects of the stronger yen through the end of the cumulative second quarter, ordinary income was ¥6 million, down 99.6% year on year, and the net loss for the quarter attributable to owners of the parent was ¥1,485 million, compared with net income attributable to owners of the parent of ¥1,131 million in the same period of the previous year.」
The effects of the stronger yen continued to be reflected in the results through the cumulative second quarter, with a substantial decline in ordinary income and a net loss for the quarter attributable to owners of the parent. - FY2017-Q1MaterialisedAnnual report
「Due in part to the stronger yen, net sales for the cumulative first quarter were ¥2,846.3 million, down 5.2% year on year, operating income was ¥328 million, down 77.0%, and ordinary loss was ¥80 million, compared with ordinary income of ¥1,569 million in the same period of the previous year.」
The effects of the stronger yen were reflected in the quarter's net sales, operating income and ordinary income or loss. The quarterly consolidated statement of income also recorded a ¥467 million foreign-exchange loss. - FY2016First statedAnnual report
「Overseas sales accounted for 76.5% of consolidated net sales in the fiscal year ended March 2015 and 79.2% in the fiscal year ended March 2016. Accordingly, the Group hedges this risk using forward foreign-exchange contracts and other instruments, but there is no guarantee that all of the risk can be covered, and the Group's performance may be affected by foreign-exchange movements.」
While the overseas sales ratio rose to 79.2%, the disclosure describes the risk that forward foreign-exchange contracts cannot cover the entire exposure. Actual results also included a ¥875 million foreign-exchange loss and a decrease in the foreign currency translation adjustment account due to the stronger yen.