Foreign exchange and interest rate risk associated with overseas sales and production
First written in FY2016. 8 of 17 entries say "Materialised", first in FY2017-Q1. Latest entry: FY2025.
Suzuki Motor moved to the "Worse" side of this theme in 2016, the same year as the typical company in this theme.
The whole theme swung hardest in 2019: 29 of 62 companies on the "Worse" side.
21 other companies' latest entry also says "Other".
- FY2025Redefined the overseas sales ratio as 70% or moreAnnual report
「Overseas sales now account for 70% or more of consolidated revenue.」
The description of the overseas sales structure was updated from "nearly 70%" to "70% or more." Foreign exchange hedging and diversification of production sites were also cited as measures. - FY2024-Q3RestatedAnnual report
「By location, Japan reported higher sales and higher profit due to the impact of foreign exchange and increased unit sales, particularly increased exports.」
The sensitivity of results to overseas sales and foreign exchange continued to be evident, with the impact of foreign exchange cited as a factor behind higher sales and higher profit in Japan. - FY2024-Q2RestatedAnnual report
「In particular, overseas sales increased by ¥294.7 billion, or 17.8%, year on year to ¥1,952.0 billion due to increased sales in India and Europe, among other regions, improvements in the sales mix, including price increases, and yen depreciation, among other factors.」
Overseas sales increased 17.8% year on year due to higher sales in India and Europe, among other regions, improvements in the sales mix, including price increases, and yen depreciation, among other factors, with the sensitivity of results to overseas sales and foreign exchange continuing to be evident. - FY2024-Q1RestatedAnnual report
「In particular, overseas sales increased by ¥120.8 billion, or 15.2%, year on year to ¥917.7 billion due to increased sales in India and Europe, among other regions, improvements in the sales mix, including price increases, and yen depreciation, among other factors.」
Overseas sales increased due to higher sales in India and Europe, among other regions, improvements in the sales mix, including price increases, and yen depreciation, among other factors. The sensitivity of overseas sales and foreign exchange to results continued to be evident. - FY2023RestatedAnnual report
「While the progression of yen depreciation accompanying the widening Japan-US interest rate differential provided a tailwind for results, yen depreciation contributed ¥100.6 billion to the increase in profit.」
The sensitivity of overseas sales and overseas production to foreign exchange continued to be evident, with yen depreciation contributing ¥100.6 billion to higher profit in the fiscal year. - FY2020MaterialisedAnnual report
「In the fiscal year ended March 2020, the specific impact of foreign exchange was a factor behind decreases of ¥96.8 billion in sales and ¥29.7 billion in operating profit.」
Foreign exchange fluctuations materialized in actual results as factors behind the ¥96.8 billion decrease in sales and ¥29.7 billion decrease in operating profit in the fiscal year ended March 2020. - FY2020-Q3WorsenedAnnual report
「In the four-wheel vehicle business, revenue was ¥2,377.1 billion, down ¥219.5 billion, or 8.5%, from the same period of the previous year, due to lower sales in India and Pakistan and the impact of the stronger yen. Operating profit was ¥156.6 billion, down ¥87.5 billion, or 35.9%, due to lower revenue, the stronger yen, and higher expenses and other costs.」
Yen appreciation continued to materialize in actual results, together with lower sales and other factors, as a factor behind lower sales and lower profit in the four-wheel vehicle business, with operating profit decreasing by 35.9% year on year. - FY2020-Q2WorsenedAnnual report
「In the four-wheel vehicle business, sales decreased by ¥179.9 billion, or 10.2%, year on year to ¥1,581.4 billion due to the impact of production cuts resulting from the rebuilding of the inspection system in Japan, as well as lower sales in India and Pakistan and yen appreciation. Operating profit decreased by ¥79.4 billion, or 42.8%, to ¥106.1 billion due to lower sales, yen appreciation and increases in various expenses, among other factors.」
Yen appreciation continued to materialize, together with lower sales and other factors, as a factor behind lower sales and lower profit in the four-wheel vehicle business, with operating profit decreasing by 42.8% year on year. - FY2020-Q1MaterialisedAnnual report
「In the passenger vehicle business, net sales fell by ¥83.5 billion, or 9.3%, year on year to ¥817.1 billion, owing to production cuts resulting from the rebuilding of the domestic inspection system, declines in sales in India, Pakistan and Indonesia, and the appreciation of the yen. Operating income decreased by ¥54.8 billion, or 50.1%, to ¥54.6 billion, owing to lower sales, the appreciation of the yen and higher expenses.」
Yen appreciation materialized in results, together with lower sales and other factors, as a factor behind the 9.3% decrease in sales and 50.1% decrease in operating profit in the four-wheel vehicle business. - FY2019WorsenedAnnual report
「Overseas operations increased in Europe and other locations, but in Asia, operating profit decreased by ¥47.1 billion, or 24.6%, from the previous consolidated fiscal year to ¥144.2 billion due to depreciation in emerging-market currencies, including the Indian rupee, and higher selling-related expenses.」
Foreign exchange risk continued to materialize in full-year results as a factor behind the 24.6% year-on-year decrease in operating profit in Asia. - FY2019-Q3MaterialisedAnnual report
「For the first 9 months of the fiscal year, consolidated sales increased by ¥113.9 billion, or 4.2%, year on year to ¥2,838.8 billion. Operating profit for the October-December period was below the prior-year level for the second consecutive quarter following July-September, due to the impact of depreciation in emerging-market currencies, including the Indian rupee, as well as increased selling expenses and other factors. Operating profit for the April-December period decreased by ¥3.3 billion, or 1.3%, year on year to ¥256.5 billion.」
Depreciation in emerging-market currencies, including the Indian rupee, continued to materialize in actual results, together with increased selling expenses, as a factor behind the 1.3% year-on-year decrease in operating profit. - FY2019-Q2MaterialisedAnnual report
「For the first 6 months of the fiscal year, consolidated sales increased by ¥98.3 billion, or 5.4%, year on year to ¥1,929.4 billion, and operating profit increased by ¥25.6 billion, or 14.8%, to ¥198.5 billion. However, due to the impact of depreciation in emerging-market currencies, including the Indian rupee, the increases in sales and profit were smaller than in the first quarter consolidated accounting period.」
Depreciation in emerging-market currencies, including the Indian rupee, materialized in results as a factor reducing the increases in sales and profit compared with the first quarter consolidated accounting period. - FY2018MaterialisedAnnual report
「Foreign exchange losses」
The company recorded a foreign exchange loss of ¥8.4 billion for the consolidated fiscal year, indicating that foreign exchange fluctuations had materialized in non-operating income and expenses. The foreign currency translation adjustment account was also negative ¥140.1 billion. - FY2017-Q3MaterialisedAnnual report
「Overseas sales decreased by ¥75.4 billion, or 4.7%, year on year to ¥1,526.7 billion, despite increased four-wheel vehicle sales in India and Europe, among other regions, due to lower four-wheel vehicle sales in Indonesia and Pakistan and the impact of foreign exchange, among other factors.」
Overseas sales decreased by 4.7% year on year, with the impact of foreign exchange and other factors materializing in actual results as factors behind the decrease. - FY2017-Q2MaterialisedAnnual report
「Overseas sales decreased by ¥53.1 billion, or 5.0%, year on year to ¥1,002.4 billion, despite increased four-wheel vehicle sales in India and Europe, among other regions, due to lower four-wheel vehicle sales in Indonesia and Pakistan and the impact of foreign exchange, among other factors.」
The impact of foreign exchange and other factors continued to materialize in results as a 5.0% year-on-year decrease in overseas sales, indicating that overseas sales and foreign exchange risks had materialized. - FY2017-Q1MaterialisedAnnual report
「Overseas sales decreased by ¥21.6 billion, or 4.1%, year on year to ¥504.0 billion, despite increased four-wheel vehicle sales in India and Europe, among other regions, due to lower four-wheel vehicle sales in Indonesia and Pakistan and the impact of foreign exchange, among other factors.」
The impact of foreign exchange and other factors materialized in actual results as a year-on-year decrease in overseas sales, indicating that foreign exchange risk had materialized. - FY2016First statedAnnual report
「Overseas sales now account for nearly 70% of consolidated sales. The Group has a high degree of dependence on overseas production plants, particularly in emerging markets, making it susceptible to foreign exchange fluctuations. In addition, because much of its funding is raised in Japan, where interest rates have remained low, it is also structurally susceptible to interest rate fluctuations.」
Against a backdrop of overseas sales accounting for approximately 70% of the total, foreign exchange and interest rate fluctuations are identified as risks.