DENSO Announces First-half Financial Results

KARIYA (Japan) – DENSO Corporation today announced its global financial results for the first half of the fiscal year ending March 31, 2017:

• Consolidated revenue totaled 2,176.9 billion yen (US$21.5 billion), an 2.3 percent decrease from the previous year.
• Consolidated operating profit totaled 142.7 billion yen (US$1.4 billion), a 3.6 percent decrease from the previous year.
• Consolidated profit attributable to owners of the parent company totaled 97.5 billion yen (US$964.1 million), a 13.8 percent decrease from the previous year.

“Despite the production volume increase and the growth in sales, DENSO’s revenue and operating profit decreased due to the appreciation of the yen,” said Koji Arima, president and CEO of DENSO Corporation.

In Japan, despite the impact of the exchange rate, the production volume increase led to an increase in revenue to 1,292.3 billion yen (US$12.8 billion), an 0.7 percent increase from the previous year. The impact of the exchange rate of export sales led to an operating profit of 52.6 billion yen (US$519.8 million), a 26.4 percent decrease from the previous year.

In North America, despite an increase in car production and sales expansion, boosted by the steady economic growth, impact of exchange rate led to a decrease in revenue to 516.6 billion yen (US$5.1 billion), a 7.3 percent decrease from the previous year. As a result of the increase in production volume, the operating profit totaled 29.5 billion yen (US$291.9 million), a 18.3 percent increase from the previous year.

In Europe, despite car production increase and sales expansion due to the moderate recovery of the market , impact of exchange rate led to a decrease in revenue to 280.2 billion yen (US$2.8 billion), an 5.1 percent decrease from the previous year. As a result of the increase in production volume, the operating profit totaled to 9.3 billion yen (US$92.5 million), a 50.9 percent increase from the previous year.

In Asia, despite the increase of car production and sales expansion, impact of exchange rate resulted in a revenue decrease of 539.3 billion yen (US$5.3 billion), a 6.3 percent decrease from the previous year. As a result of the increase in production volume, an operating profit totaled 46.1 billion yen (US$456.1 million), a 9.1 percent increase from the previous year.

In other areas, mainly the South American region, including Brazil and Argentina, revenue totaled 30.5 billion yen (US$301.9 million), an 5.4 percent decrease from the previous year. The operating profit totaled 1.7 billion yen (US$17.1 million).

“Considering the market trend, we have decided to revise the original forecasts for the full-year financial results,” said Arima.(Foreign exchange rates used for the full-year are: US$= 105 yen, Euro= 117 yen)

Forecast for Fiscal Year Ending March 31, 2017

(Notes)

The above forecasts are created based on the information obtained by the date of this announcement and the actual results may differ due to various causes in the future.

U.S. dollar amounts have been translated, for convenience only, at the rate of 101.12 yen = US$1, the approximate exchange rate prevailing in the Tokyo Foreign Exchange Market September 30, 2016. Billion is used in the American sense of one thousand million.