Impact of foreign exchange movements on overseas subsidiary earnings and borrowings

「一方で、ニュージーランド子会社における前年同期の排出権売却収入の剥落による営業外収益の減少に加え、為替差損の発生等による営業外費用の増加が影響し、経常利益は137百万円（同79.4％減）となりました。」

「Our Group settles its purchases of timber from its New Zealand subsidiary in yen, limiting direct foreign exchange risk. To address these risks, we hedge risks using forward exchange contracts and other instruments as necessary, taking into account the degree to which exchange rate movements affect our Group.」

「Against this backdrop, although revisions to selling prices in Japan had a positive effect on sales and profit, sales and production volumes declined due to lower housing demand in Japan and overseas, including at overseas subsidiaries, while costs also rose due to the depreciation of the yen and advancing inflation. As a result, sales and profits remained weak compared with the previous year.」

「Against this backdrop, although revisions to selling prices in Japan had a positive effect on sales and profit, sales and production volumes declined due to lower housing demand in Japan and overseas, including at overseas subsidiaries, while costs also rose due to the depreciation of the yen and advancing inflation. As a result, sales and profits remained weak compared with the previous year.」

「The ¥1,121 million increase in net assets was mainly due to a ¥1,050 million increase in the foreign currency translation adjustment account.」

「Against this backdrop, in both Japan and overseas subsidiaries, various costs continued to rise or remain high, including material costs for raw materials and auxiliary materials, electricity and fuel costs, and logistics and freight costs, in addition to the impact of exchange rates. For the consolidated fiscal year, consolidated net sales were ¥65,829 million, down 1.1% year on year, operating profit was ¥766 million, down 67.4%, ordinary profit was ¥668 million, down 68.9%, and profit attributable to owners of the parent was ¥365 million, down 72.1%.」

「Against this backdrop, in both Japan and overseas subsidiaries, various costs increased or remained high, including material costs for raw materials and auxiliary materials, electricity and fuel costs, and logistics and freight costs, along with the impact of exchange rates. For the cumulative third quarter of the consolidated fiscal year, consolidated net sales were ¥50,187 million, up 2.7% year on year, operating profit was ¥1,132 million, down 33.8%, ordinary profit was ¥685 million, down 49.4%, and profit attributable to owners of the parent was ¥350 million, down 53.6%.」

「For the cumulative second quarter of the consolidated fiscal year, consolidated net sales were ¥33,003 million, up 4.2% year on year, operating profit was ¥880 million, down 8.5%, and ordinary profit was ¥327 million, down 53.8%, mainly due to an increase in foreign exchange losses and other factors. Profit attributable to owners of the parent was ¥73 million, down 84.7%.」

「Ordinary profit was ¥159 million, down 46.1% year on year, mainly due to an increase in foreign exchange losses and other factors. Profit attributable to owners of the parent was ¥118 million, down 14.0%.」

「As a principal measure, we hedge risks using forward exchange contracts and other instruments as necessary, taking into account the degree to which exchange rate movements affect our Group.」

「The ¥570 million increase in net assets was mainly due to a ¥542 million increase in the foreign currency translation adjustment account.」

「At the end of the third quarter consolidated accounting period, consolidated assets had increased by ¥7,710 million, liabilities by ¥4,603 million and net assets by ¥3,107 million from the end of the previous consolidated fiscal year, partly due to the impact of exchange rates. The ¥3,107 million increase in net assets was mainly due to increases of ¥516 million in retained earnings, ¥318 million in the valuation difference on available-for-sale securities and ¥2,077 million in the foreign currency translation adjustment account.」

「The ¥1,595 million increase in net assets was mainly due to increases of ¥192 million in retained earnings and ¥1,110 million in the foreign currency translation adjustment account.」

「The ¥919 million increase in net assets was mainly due to a ¥1,006 million increase in the foreign currency translation adjustment account, despite a ¥166 million decrease in retained earnings due to dividend payments and other factors.」

「The ¥145 million decrease in net assets was mainly due to a ¥478 million decrease in the foreign currency translation adjustment account, despite a ¥255 million increase in retained earnings.」

「The decrease in net assets was mainly due to a ¥1,920 million decrease in the foreign currency translation adjustment account.」

「The decline in net assets was mainly due to a ¥157 million decrease in retained earnings and an ¥802 million decrease in the foreign currency translation adjustment account.」

「The decline in net assets was mainly due to a ¥130 million decrease in retained earnings, a ¥548 million decrease in the valuation difference on other securities, a ¥1,011 million decrease in the foreign currency translation adjustment account, and a ¥121 million decrease in non-controlling interests.」

「The decline in net assets was mainly due to a ¥341 million decrease in retained earnings, a ¥413 million decrease in the valuation difference on other securities, and, partly due to foreign exchange effects, a ¥614 million decrease in the foreign currency translation adjustment account.」

「The decline in net assets was mainly due to a ¥461 million decrease in retained earnings and, partly due to foreign exchange effects, a ¥448 million decrease in the foreign currency translation adjustment account.」

「The decline in net assets was mainly due to a ¥218 million decrease in retained earnings and, partly due to foreign exchange effects, a ¥642 million decrease in the foreign currency translation adjustment account.」

「The decline in assets was mainly due to decreases in cash and deposits and property, plant and equipment. The decline in liabilities was mainly due to a decrease in interest-bearing liabilities comprising bonds and borrowings. The decline in net assets was mainly due to a decrease in the foreign currency translation adjustment account.」

「Although revenue increased from the same period of the previous year, operating profit declined due to higher costs resulting from foreign exchange movements, while ordinary profit increased due in part to a decline in foreign exchange losses.」

「The increase in net assets was mainly due to a ¥647 million increase in retained earnings and a ¥807 million increase in the foreign currency translation adjustment account.」

「At the end of the second quarter of the current consolidated fiscal year, consolidated financial position compared with the end of the previous consolidated fiscal year reflected a ¥3,859 million decline in assets, a ¥1,850 million decline in liabilities, and a ¥2,009 million decline in net assets, partly due to the foreign currency translation effects at overseas subsidiaries. The decline in net assets was mainly due to a ¥1,797 million decrease in the foreign currency translation adjustment account and a ¥109 million decrease in non-controlling interests.」

「As a result, consolidated revenue was ¥15,785 million, up 0.4% year on year, and operating profit was ¥164 million, compared with an operating loss of ¥97 million in the same period of the previous year. However, the stronger yen resulted in a foreign exchange loss of ¥217 million recorded as a non-operating expense, resulting in an ordinary loss of ¥218 million, compared with an ordinary loss of ¥546 million in the same period of the previous year, and a quarterly net loss attributable to owners of the parent of ¥197 million, compared with a quarterly net loss attributable to owners of the parent of ¥668 million.」

「However, sharp foreign exchange movements resulted in foreign exchange valuation losses at overseas subsidiaries. Mainly as a result, ordinary profit was ¥303 million, compared with an ordinary loss of ¥787 million in the same period of the previous year, while net profit attributable to owners of the parent was ¥62 million, down 91.9% year on year.」