Risks Related to Substantial Borrowings, Interest Rate Fluctuations and Financial Covenants
First written in FY2024. 5 of 6 entries say "Mitigated", first in FY2025. Latest entry: 2026-10-14.
The whole theme swung hardest in 2017: 8 of 54 companies on the "Worse" side.
52 other companies' latest entry also says "Mitigated".
- 2026-10-14MitigatedEarnings
「Cash outflows for repayment of long-term borrowings: ¥266,000 thousand」
Repayment of long-term borrowings continued, reducing the outstanding balance of borrowings. - FY2027-H1MitigatedAnnual report
「Non-current liabilities decreased by ¥64.887 million to ¥712.615 million. The main factors were a ¥266.000 million decrease in borrowings and a ¥164.467 million increase in lease liabilities.」
Repayment of borrowings reduced non-current liabilities and the balance of long-term borrowings, continuing to lower exposure to financial risks, including borrowing and interest-rate fluctuation risks. - FY2026MitigatedAnnual report
「Although the ratio of interest-bearing debt to total assets increased due to higher borrowings from the LBO, the Group's performance has remained strong and borrowings have been repaid steadily. In addition, refinancing with corporate loans has improved the interest rate terms and eliminated the financial covenants. At the end of the most recent consolidated fiscal year (28 February 2026), interest-bearing debt represented 14.1% of total assets, down 6.8 percentage points from 28 February 2025.」
The interest-bearing debt ratio declined from 20.8% to 14.1%, while the improvement in interest rate terms and elimination of financial covenants through refinancing continued. Exposure to financial risk declined further. - FY2026-H1MitigatedAnnual report
「Non-current liabilities decreased by ¥290,488 thousand to ¥1,063,799 thousand. The main factor was a ¥266,000 thousand decrease in borrowings due to repayments and other factors.」
Repayments of borrowings continued, reducing non-current liabilities and the balance of long-term borrowings. This indicates reduced exposure to financial risks such as borrowings and interest rate fluctuations. - FY2025MitigatedAnnual report
「By refinancing with corporate loans, the Group improved its interest rate terms and eliminated its financial covenants. At the end of the most recent consolidated fiscal year (28 February 2025), interest-bearing debt represented 20.8% of total assets, down 8.2 percentage points from 28 February 2024.」
Refinancing improved the interest rate terms and eliminated the financial covenants. The interest-bearing debt ratio also declined to 20.8%. - FY2024First statedAnnual report
「At the end of the most recent consolidated fiscal year, interest-bearing debt represented 29.00% of total assets. As these borrowings carry floating interest rates, changes in funding costs resulting from lending conditions at financial institutions or increases in market interest rates could affect the Group's financial position, operating results and cash flows.」
The risk of loss of the benefit of time due to a breach of financial covenants was also described. The countermeasures are management focused on profitability, cash planning and negotiations with financial institutions over terms.