DENSO Announces Third-quarter Financial Results

Contact: Bridgette LaRose
DENSO International America, Inc.
Phone: (248) 372-8266
bridgette-larose@denso-diam.com

KARIYA (Japan) – DENSO Corp. today announced its third quarter global financial results for the nine months of the fiscal year ending March 31, 2016:

• Consolidated revenue totaled 3,370.9 billion yen (US$27.9 billion), a 6.6 percent increase from the previous year.
• Consolidated operating profit totaled 243.1 billion yen (US$2.0 billion), a 2.3 percent increase from the previous year.
• Consolidated profit attributable to owners of the parent company totaled 191.3 billion yen (US$1.6 billion), an 1.9 percent increase from the previous year.

“DENSO’s revenue increased due to an overseas production volume increase and the growth in sales in addition to the impact of the weak yen. Operating profit increased due to the production volume increase and the cost reduction effort in addition to the depreciation of yen,” said Kenichiro Ito, executive director of DENSO Corporation.

In Japan, a production volume decrease mainly in compact cars led to a decrease in revenue to 1,967.4 billion yen (US$16.3 billion), an 0.3 percent decrease from the previous year. The decrease in production volume in addition to the increase in R&D cost for future growth and other expenses led to an operating profit of 126.5 billion yen (US$1.0 billion), a 14.2 percent decrease from the previous year.

In North America, an increase in car production, boosted by the steady economic growth, led to an increase in revenue to 828.1 billion yen (US$6.9 billion), a 19.0 percent increase from the previous year. As a result of the increase in production volume, the operating profit totaled 32.2 billion yen (US$266.7 million), a 19.0 percent increase from the previous year.

In Europe, car production increased due to the recovery of the economic slump, which led to an increase in revenue to 440.6 billion yen (US$3.7 billion), a 9.4 percent increase from the previous year. Due to the start-up costs, the operating profit totaled 10.7 billion yen (US$88.8 million), a 0.2 percent decrease from the previous year.

In Asia, the increase of car production resulted in a revenue increase of 883.1 billion yen (US$7.3 billion), a 14.4 percent increase from the previous year. As a result of the increase in production volume as well as cost reduction effort, an operating profit totaled 73.4 billion yen (US$608.8 million), a 34.7 percent increase from the previous year.

In other areas, mainly the South American region, including Brazil and Argentina, revenue totaled 45.9 billion yen (US$380.9 million), a 19.2 percent decrease from the previous year. The operating loss totaled 1.4 billion yen (US$11.4 million).

“Considering the financial results of the third quarter, as well as the change in foreign exchange rate, we have decided to revise the original forecast for the full-year financial results,” said Ito. (Foreign exchange rates used for the full-year are: US$= 120 yen Euro=132 yen)

Forecast for Fiscal Year Ending March 31, 2016

About DENSO Corporation
DENSO Corp., headquartered in Kariya, Aichi prefecture, Japan, is a leading global automotive supplier of advanced technology, systems and components in the areas of thermal, powertrain control, electronics and information and safety. Its customers include all the world’s major carmakers. Worldwide, the company has more than 200 subsidiaries and affiliates in 38 countries and regions (including Japan) and employs more than 146,000 people. Consolidated global sales for the fiscal year ending March 31, 2015, totaled US$35.9 billion. Last fiscal year, DENSO spent 9.2 percent of its global consolidated sales on research and development. DENSO common stock is traded on the Tokyo and Nagoya stock exchanges. For more information, go to www.globaldenso.com, or visit our media website at www.densomediacenter.com.

About DENSO in North America
In North America, DENSO employs more than 22,000 people at 30 consolidated companies and affiliates. Of these, 25 are manufacturing facilities located in the United States, Canada and Mexico. In the United States alone, DENSO employs more than 14,000 people in California, Michigan, North Carolina, South Carolina, Tennessee, Kentucky, Georgia, Iowa, Ohio, Pennsylvania, Texas and Arkansas. DENSO’s North American consolidated sales totaled US$8.0 billion for the fiscal year ending March 31, 2015. For more information, go to www.densocorp-na.com.

(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 120.61 yen = US$1, the approximate exchange rate prevailing in the Tokyo Foreign Exchange Market on Dec 30, 2015. Billion is used in the American sense of one thousand million.

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