Okumura to Report Foreign Exchange Reserve Evaluation Gain of 3,987 Million Yen in FY2026

TOKYO, May 11 (Pulse News Wire) – Okumura Corporation (1833.T) reported plans to recognize a foreign exchange reserve evaluation gain of 3,987 million yen in its fiscal year ending March 2026. The company disclosed this information due to changes in the valuation of outstanding foreign exchange reserves at the end of the fiscal period.

According to the disclosure, the cumulative fair value gains and losses from outstanding foreign exchange reserves as of the fiscal year-end are detailed below: | Period | 2025 Fiscal Year | |--------|------------------| | First Quarter | -701 million yen | | Second Quarter | 1,878 million yen | | Third Quarter | 613 million yen | | Fourth Quarter | 3,987 million yen | Additionally, the company noted that its subsidiary, Ishikari Bio Energy Co., Ltd., had previously applied hedge accounting to manage foreign exchange risks related to fuel procurement transactions. However, following an explosion incident at their power plant on July 19, 2024, the application of hedge accounting was discontinued from the second quarter of the 2025 fiscal year onwards.

As a result, the fair value gains and losses from outstanding foreign exchange reserves are now recognized in the consolidated income statement as foreign exchange reserve evaluation gains or losses. Regarding the impact on performance, the company stated that the projected consolidated earnings for the fiscal year ending March 2026, incorporating the aforementioned foreign exchange reserve evaluation gain, were separately published today.

Furthermore, the dividend policy for the medium-term management plan (fiscal years 2025–2027) excludes such one-time special factors, maintaining a payout ratio of at least 70%, subject to a minimum dividend payout rate based on equity (D/E) of 2.0%.