DENSO Announces H1 Financial Results

• Consolidated revenue totaled 2,363.5 billion yen (US$21.0 billion), a 8.6 percent increase from the previous year.
• Consolidated operating profit totaled 204.4 billion yen (US$1.8 billion), a 43.3 percent increase from the previous year.
• Consolidated profit attributable to owners of the parent company totaled 154.2 billion yen (US$1.4 billion), a 58.2 percent increase from the previous year.
• Annual dividend payment will be 130 yen per one stock, a 5 yen increase from the previous forecast on each of interim and fiscal year-end payment.

"DENSO’s revenue increased due to an increase in vehicle production, as well as sales expansion. DENSO’s operating profit also saw an increase due to the production volume increase and company cost reduction efforts,” said Koji Arima, president and CEO of DENSO Corporation.

In Japan, a rise in vehicle production resulted in an increase in revenue to 1,406.9 billion yen (US$12.5 billion), a 8.9 percent growth from the previous year. As a result of the increase in production volume and cost reduction efforts, the operating profit totaled 105.5 billion yen (US$935.8 million), a 100.7 percent increase from the previous year.

In North America, a sales expansion led to an increase in revenue to 548.1 billion yen (US$4.9 billion), a 6.1 percent increase from the previous year. On the other hand, the operating profit totaled 20.8 billion yen (US$184.5 million), which resulted in a 29.5 percent decrease from the previous year due, which is attributed to depreciation increases.

In Europe, the slight rise in vehicle production by the moderate recovery of the market led to an increase in revenue to 309.9 billion yen (US$2.7 billion), a 10.6 percent increase from the previous year. Due to depreciation increases, operating profit decreased to 8.9 billion yen (US$78.7 million), a 5.1 percent decrease from the previous year.

In Asia, an increase in both vehicle production and sales expansion resulted in an increase in revenue to 619.2 billion yen (US$5.5 billion), a 14.8 percent rise from the previous year. As a result of the increase in production volume, an operating profit totaled 62.8 billion yen (US$557.5 million), a 36.3 percent growth from the previous year.

In other areas, mainly the South American region, including Brazil and Argentina, revenue totaled 40.4 billion yen (US$358.7 million), a 32.7 percent increase from the previous year. The operating profit totaled 7.1 billion yen (US$62.8 million).

“After considering our first-half financial results, and the latest movement in the foreign exchange markets, we have revised up our full-year financial result forecasts. We also revised up dividend payment for both of interim and fiscal year-end,” said Koji Arima.
(Foreign exchange rates used for the full-year are US$= 111 yen, Euro= 126 yen)

(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 112.73 yen = US$1, the approximate exchange rate prevailing in the Tokyo Foreign Exchange Market Sep. 29, 2017. Billion is used in the American sense of one thousand million. 
DENSO Worldwide
DENSO Corp., headquartered in Kariya, Aichi prefecture, Japan has more than 200 subsidiaries and affiliates in 38 countries and regions (including Japan) and employs more than 150,000 people worldwide. Consolidated global sales for the fiscal year ending March 31, 2017, totaled US$40.4 billion. Last fiscal year, DENSO spent 8.8 percent of its global consolidated sales on research and development. DENSO common stock is traded on the Tokyo and Nagoya stock exchanges.