Foreign Exchange Risk on Foreign-currency-denominated Financial Instruments
First written in FY2020. 5 of 9 entries say "Worsened", first in FY2021. Latest entry: FY2026.
Hikari Tsushin moved to the "Worse" side of this theme in 2021, 3 years after the typical company in this theme (2018).
The whole theme swung hardest in 2019: 69 of 120 companies on the "Worse" side.
33 other companies' latest entry also says "Other".
- FY2026Expanded Foreign Exchange Exposure and Introduced HedgingAnnual report
「Impact on profit or loss (negative figures indicate a decrease): △2,802. Impact on equity after tax (negative figures indicate a decrease): △1,918. The company uses currency swaps to hedge foreign exchange risk associated with foreign-currency-denominated financing transactions.」
If the yen strengthens by 1%, the impact widened to negative ¥2,802 million on profit or loss and negative ¥1,918 million on equity, while the company introduced currency-swap hedges for its foreign-currency-denominated financing. - FY2026-H1Lower finance costs due to yen depreciation boost profitAnnual report
「Interim profit before tax increased 27.6% year on year to ¥88,201 million, mainly due to a decrease in finance costs associated with the weaker yen.」
Regarding foreign exchange fluctuations, the company states that in the current interim period, lower finance costs associated with the weaker yen contributed to a 27.6% year-on-year increase in interim profit before tax. - FY2025WorsenedAnnual report
「If the Japanese yen strengthens by 1%, the impact on profit or loss and equity is as follows: impact on profit or loss (negative figures indicate a decrease): △2,676; impact on equity after tax (negative figures indicate a decrease): △1,832.」
If the yen strengthens by 1%, the impact on profit or loss widened from negative ¥2,435 million in the previous fiscal year to negative ¥2,676 million, while the impact on equity widened from negative ¥1,689 million to negative ¥1,832 million. - FY2025-H1MaterialisedAnnual report
「Interim profit before tax decreased 20.7% year on year to ¥69,139 million, mainly due to an increase in finance costs associated with the stronger yen.」
The Group's previous foreign exchange exposure has translated into an actual earnings impact, with finance costs increasing as the yen strengthened and interim profit before tax declining 20.7% year on year. - FY2024WorsenedAnnual report
「If the Japanese yen strengthens by 1%, the impact on profit or loss and equity is as follows: impact on profit or loss (negative figures indicate a decrease): △2,435; impact on equity after tax (negative figures indicate a decrease): △1,689.」
The impact on profit or loss if the yen strengthens by 1% widened from negative ¥1,195 million in the previous fiscal year to negative ¥2,435 million. - FY2023WorsenedAnnual report
「If the Japanese yen strengthens by 1%, the impact on profit or loss and equity is as follows: impact on profit or loss (negative figures indicate a decrease): △1,195; impact on equity (negative figures indicate a decrease): △1,545.」
If the yen strengthens by 1%, the impact widened from negative ¥806 million to negative ¥1,195 million for profit or loss and from negative ¥1,328 million to negative ¥1,545 million for equity. - FY2022WorsenedAnnual report
「If the Japanese yen strengthens by 1%, the impact on profit or loss and equity is as follows: impact on profit or loss (negative figures indicate a decrease): △806; impact on equity (negative figures indicate a decrease): △1,328.」
If the yen strengthens by 1%, the impact widened from negative ¥701 million to negative ¥806 million for profit before tax and from negative ¥958 million to negative ¥1,328 million for other comprehensive income. - FY2021WorsenedAnnual report
「For financial instruments exposed to foreign exchange risk, assuming that all other variables remain constant, the impact on profit before tax and other comprehensive income, before tax effects, if the Japanese yen strengthens by 1% is as follows. Impact on profit before tax (negative figures indicate a decrease): △701. Impact on other comprehensive income, before tax effects (negative figures indicate a decrease): △958.」
The impact on profit before tax if the yen strengthens by 1% narrowed from negative ¥713 million in the previous fiscal year to negative ¥701 million, while the impact on other comprehensive income widened from negative ¥514 million to negative ¥958 million. - FY2020First statedAnnual report
「The Group is exposed mainly to foreign exchange risk relating to equity instruments and foreign-currency-denominated deposits.」
Discloses U.S.-dollar exposure of ¥71,377 million to pre-tax profit and sensitivity showing a ¥713 million decrease in pre-tax profit if the yen appreciates by 1%.