Foreign Exchange Risk Associated with Growth in Overseas Sales

「Overseas revenue accounted for 73.6% of the Group's consolidated revenue in the current consolidated fiscal year (76.1% in the previous consolidated fiscal year), leaving the Group vulnerable to the impact of foreign exchange rates. To prepare for exchange-rate movements beyond the Group's assumptions, we will promote transactions and settlements in local currencies in each region.」

「Net assets were ¥15,998 million, a decrease of ¥6,911 million from the end of the previous consolidated fiscal year (−30.2%). The main factors were a ¥4,060 million decrease in the foreign currency translation adjustment and a ¥1,242 million decrease in retained earnings.」

「Overseas revenue accounted for 76.1% of the Group's consolidated revenue in the current consolidated fiscal year (72.7% in the previous consolidated fiscal year), leaving the Group vulnerable to the impact of foreign exchange rates.」

「Due to increased production volumes at major customers and foreign exchange movements, revenue was ¥49,285 million, an increase of ¥14,081 million year on year (+40.0%).」

「Due to increased production volumes at major customers and foreign exchange movements, revenue was ¥24,707 million, an increase of ¥7,362 million year on year (+42.4%). However, in addition to higher raw material costs resulting from rising crude oil prices and higher logistics and labor costs due to changes in the external environment, the foreign exchange impact resulted in a segment loss of ¥1,694 million, compared with a segment loss of ¥5,196 million in the same quarter of the previous year.」

「Overseas revenue accounted for 74.1% of the Group's consolidated revenue in the current consolidated fiscal year (75.8% in the previous consolidated fiscal year), leaving the Group vulnerable to the impact of foreign exchange rates. To prepare for exchange-rate movements beyond the Group's assumptions, we will promote transactions and settlements in local currencies in each region.」

「(Asia) Due to the foreign exchange impact of the weaker yen, revenue was ¥21,696 million, an increase of ¥2,814 million year on year (+14.9%),」

「Sales increased by ¥4,258 million year on year to ¥35,120 million, up 13.8%, because of higher production volumes at major customers and foreign exchange. However, segment loss was ¥8,616 million because of higher raw material costs resulting from higher crude oil prices, higher logistics and labour costs due to changes in the external environment, increased costs related to new vehicle launches, and the impact of foreign exchange.」

「Sales increased by ¥2,381 million year on year to ¥17,265 million, up 16.0%, because of higher production volumes at major customers, new vehicle launches and foreign exchange. However, segment loss was ¥3,890 million because of higher raw material costs resulting from higher crude oil prices, higher logistics and labour costs due to changes in the external environment, increased costs related to new vehicle launches, and the impact of foreign exchange.」

「Overseas sales accounted for 75.8% of the group's consolidated sales during the fiscal year, compared with 62.9% in the previous fiscal year, leaving the group susceptible to foreign-exchange movements.」

「Overseas sales accounted for 62.9% of the group's consolidated sales during the fiscal year, compared with 68.8% in the previous fiscal year, leaving the group susceptible to foreign-exchange movements.」

「Foreign currency translation adjustment △ 1,961」

「Net assets decreased by ¥14,319 million from the end of the previous consolidated fiscal year to ¥50,673 million, down 22.0%. The main factors were an ¥11,843 million decrease in retained earnings, a ¥1,521 million decrease in the foreign currency translation adjustment, and a ¥1,173 million decrease in non-controlling interests.」

「Net assets decreased by ¥7,158 million from the end of the previous consolidated fiscal year to ¥57,834 million, down 11.0%. The main factors were a ¥4,631 million decrease in retained earnings, a ¥1,402 million decrease in the foreign currency translation adjustment, and a ¥1,248 million decrease in non-controlling interests.」

「Net assets decreased by ¥2,444 million from the end of the previous consolidated fiscal year to ¥67,705 million, down 3.5%. The main factors were an ¥1,898 million decrease in the foreign currency translation adjustment and a ¥398 million decrease in non-controlling interests.」

「The main factors were a ¥701 million increase in retained earnings, offset by a ¥1,308 million decrease in the foreign currency translation adjustment and a ¥632 million decrease in non-controlling interests.」

「The main factors were a ¥1,738 million increase in retained earnings, an ¥855 million decrease in valuation differences on available-for-sale securities, a ¥629 million decrease in the foreign currency translation adjustment, and a ¥628 million decrease in non-controlling interests.」

「The main factors were a ¥1,759 million increase in retained earnings, a ¥1,530 million decrease in the foreign currency translation adjustment, and a ¥302 million decrease in non-controlling interests.」

「Driven by the launch of new vehicles and mold sales, revenue increased to ¥4,531 million, up ¥520 million, or 13.0%, from the same quarter of the previous year. However, due to foreign exchange effects and higher costs at sites preparing for production, segment profit fell to ¥282 million, down ¥286 million, or 50.4%, year on year.」

「Although the launch of new vehicles resulted in higher sales on a local-currency basis, sales decreased by ¥418 million year on year to ¥11,513 million, down 3.5%, because of the impact of foreign exchange. Segment profit was ¥681 million, down ¥391 million year on year, or 36.5%.」

「(Europe) Sales in Europe decreased by ¥759 million year on year to ¥7,662 million, down 9.0%, because of the impact of foreign-exchange movements. Segment profit was ¥668 million, down ¥228 million year on year, or 25.4%.」

「As a result, sales increased in Japan and Asia during the cumulative first quarter of the fiscal year, but, partly because of the foreign-exchange impact of yen appreciation, sales decreased by ¥202 million year on year to ¥55,136 million, down 0.4%.」

「Overseas sales accounted for 69.9% of the group's consolidated sales during the fiscal year, compared with 74.8% in the previous fiscal year, leaving the group susceptible to foreign-exchange movements.」

「As a result, sales for the cumulative third quarter of the fiscal year decreased by ¥11,907 million year on year to ¥164,817 million, down 6.7%, partly because the yen was stronger during the period than in the same period of the previous year.」

「Sales increased steadily in Japan, but mainly because of the impact of yen appreciation, overseas sales decreased by ¥9,407 million year on year to ¥109,616 million, including an approximately ¥8,000 million negative impact from foreign exchange, down 7.9%.」

「(Europe) Strong order conditions resulted in higher sales and earnings on a local-currency basis. On a Japanese-yen basis, despite the foreign-exchange impact of yen appreciation, sales remained ¥4,182 million, up ¥36 million year on year, or 0.9%. Segment profit, however, was ¥400 million, down ¥29 million, or 6.8%, year on year, as the segment was unable to absorb the foreign-exchange impact.」

「Overseas sales accounted for 74.8% of the group's consolidated net sales in the fiscal year, up from 72.6% in the previous fiscal year. As the overseas sales ratio is expected to continue rising, the group's operating results and other factors may be affected by the exchange rates used to translate overseas operations for consolidated reporting.」