We have left our previously announced earnings forecasts unchanged.
With events such as the UK’s decision to exit the EU and the US presidential election resulting in considerable volatility in the foreign exchange markets, we have revised our FOREX assumption from ¥105 to ¥110 to the US dollar, while keeping the euro forex assumption unchanged at ¥115 to the euro. As shown by the FOREX sensitivity on p.41 of these materials, the impact versus the dollar is neutral. As for the euro, the unchanged rate implies a stronger yen than recent actual rates, but as we have been using foreign exchange contracts, the recent weaker yen will not have much effect in the fourth quarter.
Going forward, the operating environment does not encourage optimism, but we will work to achieve our current earnings forecasts. In particular, we will strive to achieve our profit commitment, which is a 13% increase in net profit.
With events such as the UK’s decision to exit the EU and the US presidential election resulting in considerable volatility in the foreign exchange markets, we have revised our FOREX assumption from ¥105 to ¥110 to the US dollar, while keeping the euro forex assumption unchanged at ¥115 to the euro. As shown by the FOREX sensitivity on p.41 of these materials, the impact versus the dollar is neutral. As for the euro, the unchanged rate implies a stronger yen than recent actual rates, but as we have been using foreign exchange contracts, the recent weaker yen will not have much effect in the fourth quarter.
Going forward, the operating environment does not encourage optimism, but we will work to achieve our current earnings forecasts. In particular, we will strive to achieve our profit commitment, which is a 13% increase in net profit.