Hedging Foreign Exchange and Interest Rate Risk
First written in FY2017. 7 of 14 entries say "Restated". Latest entry: FY2026.
Japan Lifeline moved to the "Worse" side of this theme in 2018, 7 years before the typical company in this theme (2025).
3 other companies' latest entry also says "Softened".
- FY2026SoftenedAnnual report
「At present, approximately 70% of the group's merchandise purchases are conducted in yen, limiting the direct impact of foreign exchange movements. For certain transactions denominated in foreign currencies, the group is reducing risk by including contractual foreign exchange clauses that allow prices to be revised when exchange rates move beyond a specified level.」
While the disclosed proportion of purchases denominated in yen changed from approximately 75% to approximately 70%, price revisions under foreign exchange clauses were additionally identified as a risk-mitigation measure. - FY2025RestatedAnnual report
「At present, approximately 75% of the company's merchandise purchases are denominated in yen, limiting the impact of yen depreciation.」
Regarding its response to foreign exchange and inflation, the company disclosed that the proportion of purchases denominated in yen had risen from approximately 70% to approximately 75% and continues to explain that the impact of yen depreciation is limited. - FY2025-H1RestatedAnnual report
「Although the yen has continued to fluctuate significantly against the US dollar, the impact on the company's performance has been limited. The main reasons are that approximately 70% of the company's merchandise purchases are denominated in yen and that the weighted-average method is used to calculate the cost of sales, which spreads the impact of temporary increases in procurement costs over an extended period.」
The company reconfirms that despite continued fluctuations in the yen, the impact on performance is limited because approximately 70% of purchases are denominated in yen and the weighted-average method is used. - FY2024-Q3RestatedAnnual report
「Although foreign exchange rates have continued to fluctuate significantly in recent years, the impact on the company's performance has been limited. Yen depreciation raises merchandise purchase prices, but approximately 70% of the company's merchandise purchases are denominated in yen. In addition, because the weighted-average method is used to calculate the cost of sales, the impact of temporary increases in procurement costs for some purchased products and components is spread over an extended period.」
The company reconfirms that the impact of yen depreciation and foreign exchange movements on performance is limited because approximately 70% of purchases are denominated in yen and the weighted-average method is used. - FY2023-Q3RestatedAnnual report
「Regarding foreign exchange market conditions, the yen fluctuated sharply against the US dollar, but there was no significant impact on profit or loss. The main reasons are that approximately 70% of the company's merchandise purchases are denominated in yen and that the weighted-average method is used to calculate the cost of sales, which spreads the impact over an extended period even when temporary increases in procurement costs occur for some purchased products and components.」
The company explains that despite sharp fluctuations in the yen, there was no significant impact on profit or loss because approximately 70% of purchases are denominated in yen and the weighted-average method is used. - FY2023-Q2RestatedAnnual report
「Regarding foreign exchange market conditions, the yen depreciated significantly against the US dollar, but there was no significant impact on profit or loss. The main reasons are that approximately 70% of the company's merchandise purchases are denominated in yen and that the weighted-average method is used to calculate the cost of sales, which spreads the impact over an extended period even when temporary increases in procurement costs occur for some purchased products and components.」
The company explains that even during a period of significant yen depreciation, the impact on profit or loss was not significant because approximately 70% of merchandise purchases are denominated in yen and the weighted-average method is used. - FY2023-Q1RestatedAnnual report
「Although the yen depreciated significantly against the US dollar, fluctuations in foreign exchange rates have had only a minimal impact on profit or loss because approximately 70% of the company's merchandise purchases are denominated in yen.」
The company explains that even during a period of significant yen depreciation, the impact of foreign exchange movements on profit or loss was minimal because approximately 70% of merchandise purchases are denominated in yen. - FY2021No year-end disclosure on currency swaps.Annual report
「Current consolidated fiscal year (from 1 April 2020 to 31 March 2021): Not applicable.」
No disclosure was provided for the currency swaps that had generated a ¥244 million valuation loss in the previous fiscal year as derivatives not subject to hedge accounting, while only borrowings hedged with interest rate swaps were described. - FY2020Recorded a ¥244 million valuation loss on currency swaps.Annual report
「As ¥900 million in interest expense and derivative valuation losses and other costs related to currency swap transactions were recorded as non-operating expenses, ordinary profit for the period was ¥10,425 million, down 3.5% year on year.」
Recorded non-operating expenses including a ¥244 million derivative valuation loss related to currency swap transactions. - FY2020-Q3Recorded a valuation loss on currency swaps.Annual report
「Recorded ¥338 million in interest expense and derivative valuation losses and other costs related to currency swap transactions as non-operating expenses.」
Recorded non-operating expenses including a ¥143 million derivative valuation loss related to currency swap transactions. - FY2020-Q2RestatedAnnual report
「Currency derivatives have become important to the operation of the business group, and significant changes have occurred compared with the end of the previous consolidated fiscal year.」
During the second quarter accounting period, the company disclosed currency swap transactions with a contract amount of ¥2,885 million and an unrealized valuation loss of ¥73 million. - FY2019ReframedAnnual report
「The company uses derivatives to mitigate foreign exchange and interest rate risk and does not engage in speculative transactions.」
The description has reverted from focusing on interest rate fluctuation risk on long-term borrowings in the previous filing to stating that both foreign exchange and interest rate risks are being hedged. - FY2018ReframedAnnual report
「The group limits the investment of funds to short-term deposits and similar instruments, and its policy for financing is to rely on bank borrowings. It uses derivatives to mitigate interest rate risk on long-term borrowings and does not engage in speculative transactions.」
The description of derivatives use was revised from hedging both foreign exchange and interest rate risks, as previously stated, to focus on hedging interest rate fluctuation risk on long-term borrowings. - FY2017First statedAnnual report
「The company uses derivatives to mitigate foreign exchange and interest rate risk and does not engage in speculative transactions.」
The company stated in its financial instruments policy that it uses forward exchange contracts and interest rate swaps solely to mitigate risk and does not engage in speculative transactions.