CORRECTING and REPLACING Trend Micro Reports Strong Results for Q4 and Fiscal Year 2017

TOKYO--(BUSINESS WIRE)--Headline of release dated Feb. 15, 2018 should read: Trend Micro Reports Strong Results for Q4 and Fiscal Year 2017 (instead of Trend Micro Reports Strong Results for Q4 and Fiscal Year 2016)

The corrected release reads:

TREND MICRO REPORTS STRONG RESULTS FOR Q4 AND FISCAL YEAR 2017

Trend Micro Incorporated (TYO: 4704; TSE: 4704), a global leader in cybersecurity solutions, today announced earnings results for the fourth quarter and consolidated revenue for fiscal year 2017, ending December 31, 2017.

In 2017, the company had double-digit net revenue growth, evidence of Trend Micro’s continued leadership in the security industry and providing a strong platform to secure the connected world as we move into 2018.

“I’m honored to share the results of our strong financial performance, strategic solution enhancements and impressive market validation,” said Eva Chen, chief executive officer for Trend Micro. “And in keeping with our core value of protecting our customers against the changing threat landscape, I’m also pleased to highlight innovation that enables us to grow in new ways.”

For the fourth quarter, Trend Micro posted consolidated net sales of 41,028 million Yen (or US $363 million, 112.99 JPY = 1USD). The company posted operating income of 8,511 million Yen (or US $75 million) and net income attributable to owners of the parent of 5,175 million Yen (or US $45 million) for the quarter.

For 2017, Trend Micro posted consolidated net sales of 148,811 million Yen (or US $1,326 million, 112.22 JPY=1USD). The company also reported operating income of 36,441 million Yen (or US $324 million) and net income attributable to owners of the parent of 25,691 million Yen (or US $228 million).

Based on information currently available to the company, consolidated net sales for the year ending December 31, 2018 is expected to be 164,800 million Yen (or US $1,484 million, based on an exchange rate of 111 JPY = 1 USD). Operating income and net income are expected to be 40,700 million Yen (or US $366 million) and 28,400 million Yen (or US $255 million), respectively.

Growth rate figures are calculated from Japanese Yen results. Some discrepancy may therefore be noted in US Dollar comparisons owing to fluctuations in currency conversion rates.

Q4 2017 Business Highlights

Valued product development and strategic investments to protect our customers:

  • A strategic relationship finalized with TELUS Security Labs in Q4 will help drive critical insights to navigate the North American threat landscape and protect against cyber threats.
  • Trend Micro solutions grew with the Q4 acquisition of Montréal, Canada-based Immunio, which brought security experts and new capabilities to Trend Micro.

Continued innovation and research to secure the evolving, connected world:

  • As companies build and deploy applications faster across everything from cloud to containers, any drag on the DevOps lifecycle can create drag on an entire business. In response to this, Trend Micro announced the expansion of its Hybrid Cloud Security solution scope that will increase the automated protection through the DevOps process.
  • As vehicles become more connected and smarter, security requirements for automotive systems are constantly growing. Trend Micro IoT Security recently announced support for a related solution from Mentor, a Siemens business. Mentor Automotive ConnectedOS™ is deployed in many in-vehicle infotainment systems (IVI) and driver information systems (Cluster) for a variety of automotive manufacturers.
  • Demonstrating the ongoing commitment to innovate with telcos and managed service providers, Trend Micro collaborated with Telcom Systems on a new joint offering, helping to deliver network security services, including intrusion prevention and web security.

Q4 2017 Reports, Recognitions and Awards

Trend Micro was awarded the following patents in Q4 2017:

Patent No.

     

Issue Date

     

Title

9811664 11/07/2017 Methods and Systems for Detecting Unwanted Web Contents
9813412 11/07/2017 Scanning of Password-Protected E-Mail Attachment
9817974 11/14/2017 Anti-Malware Program with Stalling Code Detection
9843602 12/12/2017 Login Failure Sequence For Detecting Phishing
 

Notice Regarding Forward-Looking Statements

Certain statements that are made in this release are forward-looking statements. These forward-looking statements are based on management's current assumptions and beliefs in light of the information currently available to it, but involve known and unknown risks and uncertainties. Many important factors could cause actual results to differ materially from those expressed in forward-looking statements. These factors include:

  • Difficulties in addressing new virus and other computer security problems
  • Timing of new product introductions and lack of market acceptance for new products
  • The level of continuing demand for, and timing of sales of, existing products
  • Rapid technological change within the antivirus software industry
  • Changes in customer needs for antivirus software
  • Existing products and new product introductions by competitors and pricing of those products
  • Declining prices for products and services
  • The effect of future acquisitions on our financial condition and results of operations
  • The effect of adverse economic trends on principal markets
  • The effect of foreign exchange fluctuations on our results of operations
  • An increase in the incidence of product returns
  • The potential lack of attractive investment targets and
  • Difficulties in successfully executing our investment strategy

About Trend Micro

Trend Micro Incorporated, a global leader in cybersecurity solutions, helps to make the world safe for exchanging digital information. Our innovative solutions for consumers, businesses, and governments provide layered security for data centers, cloud environments, networks, and endpoints. All our products work together to seamlessly share threat intelligence and provide a connected threat defense with centralized visibility and investigation, enabling better, faster protection. With almost 6,000 employees in more than 50 countries and the world’s most advanced global threat intelligence, Trend Micro enables organizations to secure their connected world. For more information, visit www.trendmicro.com.

All product and company names herein may be trademarks of their registered owners.


Contacts

Trend Micro Incorporated
Kateri Daniels, 817-522-7911
media_relations@trendmicro.com
or
Investor Relations, +81-3-5334-4899
ir@trendmicro.co.jp

Wipro Named as a 2018 World’s Most Ethical Company by the Ethisphere Institute® for the 7th Successive Year

LONDON & EAST BRUNSWICK, N.J. & BANGALORE, India--(BUSINESS WIRE)--#EQ--Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO), a leading global information technology, consulting and business process services company, today announced that it has been recognized by the Ethisphere Institute®, the global leader in defining and advancing the standards of ethical business practices, as a World's Most Ethical Company ®.


The Ethisphere® Institute, a global leader in defining and advancing the standards of ethical business practices, has announced the 135 companies spanning 23 countries across 57 industries who have been named to the 2018 World’s Most Ethical Companies® list.

The World's Most Ethical Companies designation recognizes organizations that have had a material impact on the way business is conducted by fostering a culture of ethics and transparency at every level of the company. It emphasizes Wipro’s commitment to value led leadership.

Being a 7th consecutive year honoree underscores Wipro's commitment to leading ethical business standards and practices that also ensure long-term value to key stakeholders including customers, employees, suppliers, regulators and investors.

Abidali Z. Neemuchwala, Chief Executive Officer and Executive Director, Wipro Limited, said, “It is an honor to be recognized as a 2018 World’s Most Ethical Company by the Ethisphere Institute for the 7th successive year. Unflinching commitment to values is the bedrock of our philosophy of doing business. Our values --The Spirit of Wipro -- is at our core and is our moral compass. Businesses are sustainable only if built on a foundation of ethics and responsibility.”

About Ethisphere
Since 2007, Ethisphere has honored those companies who recognize their critical role to influence and drive positive change in the business community and societies around the world and work to maximize their impact wherever possible. Values-based leadership, diversity and inclusion, investment and long-term commitment, and constructive use of a company’s voice are now the hallmarks of what stakeholders are expecting and investors are rewarding.

Methodology
The World’s Most Ethical Companies assessment is based upon the Ethisphere Institute’s Ethics Quotient® (EQ) framework, which offers a quantitative way to assess a company’s performance in an objective, consistent and standardized manner. The information collected provides a comprehensive sampling of definitive criteria of core competencies rather than all aspects of corporate governance, risk, sustainability, compliance and ethics.

Scores are generated in five key categories: ethics and compliance program (35 percent), corporate citizenship and responsibility (20 percent), culture of ethics (20 percent), governance (15 percent), and leadership, innovation and reputation (10 percent).

Honorees
The list of 2018 World’s Most Ethical Companies can be found at http://www.worldsmostethicalcompanies.com/honorees/

About Wipro Limited
Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO) is a leading global information technology, consulting and business process services company. We harness the power of cognitive computing, hyper-automation, robotics, cloud, analytics and emerging technologies to help our clients adapt to the digital world and make them successful. A company recognized globally for its comprehensive portfolio of services, strong commitment to sustainability and good corporate citizenship, we have over 160,000 dedicated employees serving clients across six continents. Together, we discover ideas and connect the dots to build a better and a bold new future.

Forward-looking and Cautionary Statements
Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in our earnings, revenue and profits, our ability to generate and manage growth, intense competition in IT services, our ability to maintain our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which we make strategic investments, withdrawal of fiscal governmental incentives, political instability, war, legal restrictions on raising capital or acquiring companies outside India, unauthorized use of our intellectual property, and general economic conditions affecting our business and industry. Additional risks that could affect our future operating results are more fully described in our filings with the United States Securities and Exchange Commission. These filings are available at www.sec.gov. We may, from time to time, make additional written and oral forward-looking statements, including statements contained in the company’s filings with the Securities and Exchange Commission and our reports to shareholders. We do not undertake to update any forward-looking statement that may be made from time to time by us or on our behalf.


Contacts

Wipro Limited
Shraboni Banerjee
Shraboni.banerjee@wipro.com

Trend Micro Reports Strong Results for Q4 and Fiscal Year 2016

TOKYO--(BUSINESS WIRE)--Trend Micro Incorporated (TYO: 4704; TSE: 4704), a global leader in cybersecurity solutions, today announced earnings results for the fourth quarter and consolidated revenue for fiscal year 2017, ending December 31, 2017.

In 2017, the company had double-digit net revenue growth, evidence of Trend Micro’s continued leadership in the security industry and providing a strong platform to secure the connected world as we move into 2018.

“I’m honored to share the results of our strong financial performance, strategic solution enhancements and impressive market validation,” said Eva Chen, chief executive officer for Trend Micro. “And in keeping with our core value of protecting our customers against the changing threat landscape, I’m also pleased to highlight innovation that enables us grow in new ways.”

For the fourth quarter, Trend Micro posted consolidated net sales of 41,028 million Yen (or US $363 million, 112.99 JPY = 1USD). The company posted operating income of 8,511 million Yen (or US $75 million) and net income attributable to owners of the parent of 5,175 million Yen (or US $45 million) for the quarter.

For 2017, Trend Micro posted consolidated net sales of 148,811 million Yen (or US $1,326 million, 112.22 JPY=1USD). The company also reported operating income of 36,441 million Yen (or US $324 million) and net income attributable to owners of the parent of 25,691 million Yen (or US $228 million).

Based on information currently available to the company, consolidated net sales for the year ending December 31, 2018 is expected to be 164,800 million Yen (or US $1,484 million, based on an exchange rate of 111 JPY = 1 USD). Operating income and net income are expected to be 40,700 million Yen (or US $366 million) and 28,400 million Yen (or US $255 million), respectively.

Growth rate figures are calculated from Japanese Yen results. Some discrepancy may therefore be noted in US Dollar comparisons owing to fluctuations in currency conversion rates.

Q4 2017 Business Highlights

Valued product development and strategic investments to protect our customers:

  • A strategic relationship finalized with TELUS Security Labs in Q4 will help drive critical insights to navigate the North American threat landscape and protect against cyber threats.
  • Trend Micro solutions grew with the Q4 acquisition of Montréal, Canada-based Immunio, which brought security experts and new capabilities to Trend Micro.

Continued innovation and research to secure the evolving, connected world:

  • As companies build and deploy applications faster across everything from cloud to containers, any drag on the DevOps lifecycle can create drag on an entire business. In response to this, Trend Micro announced the expansion of its Hybrid Cloud Security solution scope that will increase the automated protection through the DevOps process.
  • As vehicles become more connected and smarter, security requirements for automotive systems are constantly growing. Trend Micro IoT Security recently announced support for a related solution from Mentor, a Siemens business. Mentor Automotive ConnectedOS™ is deployed in many in-vehicle infotainment systems (IVI) and driver information systems (Cluster) for a variety of automotive manufacturers.
  • Demonstrating the ongoing commitment to innovate with telcos and managed service providers, Trend Micro collaborated with Telcom Systems on a new joint offering, helping to deliver network security services, including intrusion prevention and web security.

Q4 2017 Reports, Recognitions and Awards

Trend Micro was awarded the following patents in Q4 2017:

Patent No.

     

Issue Date

     

Title

9811664 11/07/2017 Methods and Systems for Detecting Unwanted Web Contents
9813412 11/07/2017 Scanning of Password-Protected E-Mail Attachment
9817974 11/14/2017 Anti-Malware Program with Stalling Code Detection
9843602 12/12/2017 Login Failure Sequence For Detecting Phishing
 

Notice Regarding Forward-Looking Statements

Certain statements that are made in this release are forward-looking statements. These forward-looking statements are based on management's current assumptions and beliefs in light of the information currently available to it, but involve known and unknown risks and uncertainties. Many important factors could cause actual results to differ materially from those expressed in forward-looking statements. These factors include:

  • Difficulties in addressing new virus and other computer security problems
  • Timing of new product introductions and lack of market acceptance for new products
  • The level of continuing demand for, and timing of sales of, existing products
  • Rapid technological change within the antivirus software industry
  • Changes in customer needs for antivirus software
  • Existing products and new product introductions by competitors and pricing of those products
  • Declining prices for products and services
  • The effect of future acquisitions on our financial condition and results of operations
  • The effect of adverse economic trends on principal markets
  • The effect of foreign exchange fluctuations on our results of operations
  • An increase in the incidence of product returns
  • The potential lack of attractive investment targets and
  • Difficulties in successfully executing our investment strategy

About Trend Micro

Trend Micro Incorporated, a global leader in cybersecurity solutions, helps to make the world safe for exchanging digital information. Our innovative solutions for consumers, businesses, and governments provide layered security for data centers, cloud environments, networks, and endpoints. All our products work together to seamlessly share threat intelligence and provide a connected threat defense with centralized visibility and investigation, enabling better, faster protection. With almost 6,000 employees in more than 50 countries and the world’s most advanced global threat intelligence, Trend Micro enables organizations to secure their connected world. For more information, visit www.trendmicro.com.

All product and company names herein may be trademarks of their registered owners.


Contacts

Trend Micro Incorporated
Kateri Daniels, 817-522-7911
media_relations@trendmicro.com
or
Investor Relations, +81-3-5334-4899
ir@trendmicro.co.jp

移民の国カナダのCHINESE NEW YEAR!2018【カナダ】 – T-SITEニュース


T-SITEニュース

移民の国カナダのCHINESE NEW YEAR!2018【カナダ】
T-SITEニュース
ワウネタ海外生活 -海外旅行海外体験-. 海外旅行海外生活の情報なら「ワウネタ海外生活」! 場所が変わればライフスタイルや交通事情、食べ物やファッションやコスメも変わる。 実際に住んでみないと分からない、日本の常識とは異なるアレコレをお届けします。 世界各地のイベント、生活情報やグルメ、観光な ...

ぺこ、ブログの読者は妊娠に気づいていた BLOG of the year 2017 特別インタビュー – AbemaTIMES


AbemaTIMES

ぺこ、ブログの読者は妊娠に気づいていた BLOG of the year 2017 特別インタビュー
AbemaTIMES
読者モデル、ブランドプロデューサーのぺこが2月6日、昨年もっとも注目されたブログをAmebaが表彰する「BLOG of the year 2017」のオフィシャル部門・優秀賞を受賞。インタビューに応じ、喜びを語った。 「BLOG of the year 2017」は、著名人から一般人まで、株式会社サイバーエージェントが運営するネットサービス ...

and more »

PPG Kansai Automotive Finishes Receives Nissan 2017 Regional Monozukuri Spirit Award for Second Consecutive Year

Award recognizes Nissan North America suppliers for quality, cost-reduction efforts


TROY, Mich--(BUSINESS WIRE)--PPG (NYSE: PPG) today announced that PPG Kansai Automotive Finishes (PKAF), its joint venture with Kansai Paint, has received the Nissan 2017 Regional Monozukuri Spirit Award from the Nissan Group of North America for the second consecutive year.

The award recognizes suppliers for their exceptional use of philosophies and processes related to “Monozukuri” – the spirit of striving for manufacturing excellence associated with Nissan’s collaborative strategy of working closely with suppliers to increase quality and reduce cost through continuous improvement. PKAF was one of four suppliers, and the only coatings company, to earn the honor based on 2016 fiscal-year performance during the regional carmaker’s annual supplier conference in Nashville, Tennessee.

“PKAF is proud to be recognized with the Monozukuri Spirit Award for the second consecutive year, which is a testament to our ability to identify ways to continuously improve quality, reduce costs and ultimately, benefit customers,” said Tom Greenwood, president, PPG Kansai Automotive Finishes. “We’re excited to see what future innovations develop from this strong partnership.”

PPG Kansai Automotive Finishes is a joint venture of PPG and Kansai Paint that sells automotive coatings, adhesives and sealants to global original equipment manufacturers, primarily Japanese automakers with manufacturing operations in North America and Europe.

About Nissan North America

In North America, Nissan's operations include automotive styling, engineering, consumer and corporate financing, sales and marketing, distribution and manufacturing. Nissan is dedicated to improving the environment under the Nissan Green Program and has been recognized annually by the U.S. Environmental Protection Agency as an ENERGY STAR® Partner of the Year since 2010. More information on Nissan in North America and the complete line of Nissan and Infiniti vehicles can be found online at www.NissanUSA.com and www.InfinitiUSA.com, or visit the U.S. media sites NissanNews.com and InfinitiNews.com.

About Nissan Motor Co., Ltd.

Nissan is a global full-line vehicle manufacturer that sells more than 60 models under the Nissan, INFINITI and Datsun brands. In fiscal year 2016, the company sold 5.63 million vehicles globally, generating revenues of 11.72 trillion yen. In fiscal 2017, the company embarked on Nissan M.O.V.E. to 2022, a six-year plan targeting a 30% increase in annualized revenues to 16.5 trillion yen by the end of fiscal 2022, along with a core operating profit margin of 8% and cumulative free cash flow of 2.5 trillion yen. As part of Nissan M.O.V.E. to 2022, the company plans to extend its leadership in electric vehicles, symbolized by the world's best-selling all-electric vehicle in history, the Nissan LEAF. Nissan’s global headquarters in Yokohama, Japan, manages operations in six regions: Asia & Oceania; Africa, the Middle East & India; China; Europe; Latin America; and North America. Nissan has a global workforce of 247,500 and has been partnered with French manufacturer Renault since 1999. In 2016, Nissan acquired a 34% stake in Mitsubishi Motors. Renault-Nissan-Mitsubishi is today the world’s largest automotive partnership, with combined annual sales of more than 10 million vehicles a year.

For more information about our products, services and commitment to sustainable mobility, visit nissan-global.com. You can also follow us on Facebook, Instagram, Twitter and LinkedIn and see all our latest videos on YouTube.

PPG: WE PROTECT AND BEAUTIFY THE WORLD™

At PPG (NYSE:PPG), we work every day to develop and deliver the paints, coatings and materials that our customers have trusted for more than 130 years. Through dedication and creativity, we solve our customers’ biggest challenges, collaborating closely to find the right path forward. With headquarters in Pittsburgh, we operate and innovate in more than 70 countries and reported net sales of $14.8 billion in 2017. We serve customers in construction, consumer products, industrial and transportation markets and aftermarkets. To learn more, visit www.ppg.com.

We protect and beautify the world is a trademark and the PPG Logo is a registered trademark of PPG Industries Ohio, Inc.
ENERGY STAR is a joint trademark of the U.S. Environmental Protection Agency and the U.S. Department of Energy.


Contacts

PPG Media Contacts:
Mike Millar, +1 248-641-2237
Automotive OEM Coatings
millar@ppg.com
or
Greta Edgar, +1 412-434-2445
Corporate Communications
edgar@ppg.com
www.ppg.com

Haier’s Chinese New Year Greetings to the World

QINGDAO, China--(BUSINESS WIRE)--#ChineseNewYear--A Chinese New Year Greetings video recently attracted public attention on the Internet. In the video set in the New York City, a young man in New York invites an old vagrant to his home to spend the Christmas holiday with his friends. They eat turkey, sing and talk. “Break the barrier and embrace the warmth of family” – the concluding line reflects the typical loving and inclusive American family culture.


This video was released globally by Haier, the global leading home appliances brand and an active member of China’s National Brands Project. Released right before the Chinese Spring Festival, Haier intends to use this video to show its unique global perspective. Apart from this American family video, there are other 3 videos depicting a romantic French family, a hardworking New Zealand family, and a cross-border Chinese family.

The featured families span different continents and hemispheres. Though different regions have different cultures, and different peoples have different new year traditions, Haier has entered every family’s daily life with its smart technologies, met their varied needs, and accompanied them in the most memorable new year moments.

In the past 33 years, Haier has explored the needs of different families in different countries and formed its unique global family culture. Its lineup of six brands, namely Haier, Casarte, Leader, GE Appliance, Fisher & Paykel, and AQUA, provide a wide range of products for various smart home scenarios.

By meeting the diversified demands of customers from different cultures and classes, Haier has successfully served the global families and become a window to the global family culture. With a global vision and the capability to explore differentiated demands of global customers to facilitate them with enhanced lifestyles, Haier has become a global leading player in the home appliances industry and a model for Chinese global brands.

Watch the video here: https://youtu.be/n2TjWYsQHAA !


Contacts

Haier
Chen Xi, 0086-4006-999-999
chenxi@haier.com
http://www.haier.com

Haier’s Global Vision Reflected in Its New Year Greetings

QINGDAO, China--(BUSINESS WIRE)--#ChineseSpringFestival--As Valentine’s Day approaches, a sweet video from China is going viral. The video was shot in Paris, in which the newlyweds are celebrating the festival at home. The husband gives his letter of resignation as a present and promises not to make any more business trips, while the wife takes out a pair of baby shoes, signaling that she’s pregnant and that the family is about to have a new member. The video is full of love and shows the unique romantic family culture.



This video is made by Haier, the global leading home appliances brand and an active member of China’s National Brands Project. Right before the Chinese Spring Festival, Haier released a series of videos to show the family culture in different countries. Apart from this romantic French family, there are also a cozy American family, a hardworking New Zealand family, and a cross-border Chinese family.

The featured families span different continents and hemispheres. Though different regions have different cultures, and different peoples have different new year traditions, Haier has entered every family’s daily life with its smart technologies, met their varied needs, and accompanied them in the most memorable new year moments.

In the past 33 years, Haier has explored the needs of different families in different countries and formed its unique global family culture. Its lineup of six brands, namely Haier, Casarte, Leader, GE Appliance, Fisher & Paykel, and AQUA, provide a wide range of products for various smart home scenarios.

By meeting the diversified demands of customers from different cultures and classes, Haier has successfully served the global families and become a window to the global family culture. With a global vision and the capability to explore differentiated demands of global customers to facilitate them with enhanced lifestyles, Haier has become a global leading player in the home appliances industry and a model for Chinese global brands.

Watch the video here: https://youtu.be/n2TjWYsQHAA


Contacts

Haier
Chen Xi, 0086-4006-999-999
chenxi@haier.com
http://www.haier.com

Renesas Electronics Reports Full Year 2017 Financial Results

Significant Increase in Full Year Sales Year-On-Year Driven by Growth Mainly in Automotive and Industrial Businesses and Integration of Intersil.

Achieved Improvements in Year-On-Year Full Year Gross and Operating Margins

  • Q4 2017: Non-GAAP(1) semiconductor sales of 206.5 billion yen, up 28.0% year-on-year. Non-GAAP gross margin of 47.9%, up 2.3 points year-on-year and Non-GAAP operating profits (margin) of 34.1  billion yen (16.2%), up 11.3 billion yen (up 2.5 points) year-on-year
  • Full Year 2017: Non-GAAP semiconductor sales of 765.7 billion yen, up 23.4% year-on-year. Non-GAAP gross margin of 46.7%, up 3.1 points year-on-year and Non-GAAP operating profits (margin) of 128.1 billion yen (16.4%), up 50.1 billion yen (up 4.2 points) year-on-year
  • Outlook for Q1 2018: Non-GAAP semiconductor sales of 178.7 billion yen, up 3.5% year-on-year, Non-GAAP gross margin of 43.9%, down 1.6 points year-on-year and Non-GAAP operating margin of 11.3%, down 5.1 points year-on-year

TOKYO--(BUSINESS WIRE)--Renesas Electronics Corporation (TSE:6723, “Renesas”), a premier supplier of advanced semiconductor solutions, today reported financial results for the fourth quarter ended December 31, 2017 (October 1, 2017 to December 31, 2017) and financial results for the year ended December 31, 2017 (January 1, 2017 to December 31, 2017).


“We have been continuously improving our gross and operating margins by pursuing sales growth and cost efficiency,” said Bunsei Kure, Representative Director, President and CEO, Renesas Electronics Corporation. “Our fourth quarter non-GAAP semiconductor sales increased by 28.0% year on year, driven by increased sales mainly in the automotive and industrial businesses, in addition to the integration of Intersil. We expect to achieve traction in semiconductor sales during the coming quarter on a year-on-year basis.”

Quarterly Financial Summary (Billion yen)

           

 

       
Non-GAAP basis  

Q4 FY2017
(Oct-Dec 2017)

 

Q3 FY2017
(Jul-Sep 2017)

 

Q3 FY2016
(Oct-Dec 2016)

  QoQ   YoY
Net Sales   210.2   195.5   166.4   +7.5%   +26.3%
Semi. Sales   206.5   192.3   161.4   +7.4%   +28.0%
Gross Margin   47.9%   47.7%   45.6%   +0.2pts   +2.3pts
Operating Income   34.1   35.9   22.8   -1.9   +11.3
Operating Margin   16.2%   18.4%   13.7%   -2.2pts   +2.5pts
EBITDA(2)   54.5   55.0   38.6   -0.5   +15.9
 
Japan GAAP basis  

Q4 FY2017
(Oct-Dec 2017)

 

Q3 FY2017
(Jul-Sep 2017)

 

Q3 FY2016
(Oct-Dec 2016)

  QoQ   YoY
Net Sales   210.2   195.5   166.4   +7.5%   +26.3%
Semi. Sales   206.5   192.3   161,4   +7.4%   +28.0%
Gross Margin   47.7%   47.6%   44.9%   +0.1pts   +2.8pts
Operating Income   21.9   25.0   21.6   -3.1   +0.3
Operating Margin   10.4%   12.8%   13.0%   -2.4pts   -2.6pts
EBITDA   52.6   54.1   37.4   -1.5   +15.1
         

Yearly Financial Summary (Billion yen)

             

Non-GAAP
basis

 

Full-Year 2017
(Jan-Dec 2017)

 

Full-Year 2016
(Jan-Dec 2016)

  YoY
Net Sales   781.5   638.8   +22.3%
Semi. Sales   765.7   620.4   +23.4%
Gross Margin   46.7%   43.6%   +3.1pts
Operating Income   128.1   78.0   +50.1
Operating Margin   16.4%   12.2%   +4.2pts
EBITDA   203.0   138.8   +64.2
 
Japan GAAP basis  

Full Year 2017
(Jan-Dec 2017)

 

Full Year 2016
(Jan-Dec 2016)

  YoY
Net Sales   780.3   638.8   +22.1%
Semi. Sales   764.4   620.4   +23.2%
Gross Margin   45.2%   42.4%   +2.8pts
Operating Income   78.4   70.4   +8.0
Operating Margin   10.0%   11.0%   -1.0pts
EBITDA   187.1   131.2   +55.9
     
(1)   Non-GAAP Basis: Results excluding non-recurring and certain other items. Non-GAAP basis excludes the impact of sales and profit/loss of Renesas SP Drivers, impact of profit/loss of LTE modem business and profit/loss from inventory buildup until the end of FY2016 ended December 2016. Starting from FY2017 ended December 2017, Non-GAAP definition was revised to exclude amortization of goodwill, amortization of purchased intangible assets, costs related to the Intersil acquisition, stock-based compensation cost, costs related to the offering, and PPA (purchase price allocation) effects associated with the Intersil acquisition. (Reference: The impact on the operating income from the inventory buildup in FY2017 Q4 was negative 0.1 billion yen.) See page 6 for reconciliation of Japan GAAP and Non-GAAP.
(2) EBITDA: Operating income + Depreciation and amortization + Amortization of long-term prepaid expenses. Amortization of goodwill is also included for Japan GAAP-based EBITDA.
 

Quarterly Semiconductor Sales by Application Pro-Forma Basis(3)

Following the completion of the acquisition of Intersil in February 2017, Renesas integrated Intersil into its operations and reformed its business organization into three business units. To align with this change, Renesas redefined its semiconductor sales breakdown to: “Automotive,” “Industrial” and “Broad-based,” the three application categories that constitute the main business of the Group, and “Other semiconductors,” that constitute the businesses that do not belong to the above three application categories.

                     

Semiconductor Sales
by Application
(Billion yen)

 

Q4 FY2017
(Oct-Dec 2017)

 

Q3 FY2017
(Jul-Sep 2017)

 

Q3 FY2016
(Oct-Dec 2016)

  QoQ   YoY
Automotive (4)   107.8   100.6   94.0   +7.2%   +14.7%
Industrial (5)   59.6   53.5   48.2   +11.3%   +23.5%
Broad-based (6)   37.0   37.4   31.6   -1.1%   +17.2%
Other semiconductors   2.2   0.8   2.9   +170.6%   -23.4%
Total   206.5   192.3   176.6   +7.4%   +16.9%
             

Semiconductor Sales
by Application
(Billion yen)

 

Full Year 2017
(Jan-Dec 2017)

 

Full Year 2016
(Jan-Dec 2016)

  YoY
Automotive (4)   408.1   358.4   +13.8%
Industrial (5)   217.7   188.1   +15.7%
Broad-Based (6)   143.7   127.3   +12.9%
Other Semiconductors   5.0   5.5   -10.2%
Total   774.4   679.4   +14.0%
     
(3)   Pro-forma basis: Renesas net sales including Intersil’s historical revenue prior to the close of the acquisition on February 24, 2017.
(4) Automotive: Renesas mainly supplies microcontrollers (MCUs), system-on-chip (SoCs), analog semiconductors and power semiconductor devices for the “Automotive control” and “Automotive information” categories.
(5) Industrial: Renesas mainly supplies MCUs and SoCs for “Smart factory,” “Smart home” and “Smart infrastructure” categories.
(6) Broad-based: Renesas mainly supplies “General-purpose MCUs” and “General-purpose analog semiconductor devices” to a wide variety of end market solutions.
 

Summary of Fourth Quarter 2017 Results (Non-GAAP Basis)

Fourth quarter consolidated net sales were 210.2 billion yen, up 7.5% quarter-on-quarter and up 26.3% year-on-year. Fourth quarter semiconductor sales were 206.5 billion yen, up 7.4% quarter-on-quarter. On a year-on-year basis, semiconductor sales increased by 28.0%, which can be attributed mainly to: the solid growth of the Renesas standalone sales, which excludes the sales of Intersil from the entire Renesas Group sales; the integration of Intersil and the dissipation of the impact from the Kumamoto earthquake that occurred in 2016. Automotive sales increased by 14.7% year-on-year on a pro-forma basis, driven by strong demand for both Automotive Control and Automotive Information products. Industrial and Broad-based sales increased year-on-year on a pro-forma basis by 23.5% and 17.2%, respectively, mainly due to the strong demand for factory automation (FA), home appliance and analog semiconductor devices.

Non-GAAP gross margin in the fourth quarter was 47.9%, 1.6 points above the Company’s guidance, mainly due to inventory revaluation and increased sales. On a sequential basis, gross margin increased by 0.2 point and improved by 2.3 points year-on-year, benefiting from the significant increase in both sales and production as well as integration of Intersil.

Non-GAAP R&D (7) expenses in the fourth quarter were 34.3 billion yen, compared to 31.2 billion yen and 28.2 billion yen in the sequential and year-ago quarter. Fourth quarter R&D ratio to net sales was 16.3%.

Non-GAAP SG&A (8) expenses in the fourth quarter were 32.4 billion yen, compared to 26.2 billion yen and 24.9 billion yen in the sequential and year-ago quarter. Fourth quarter SG&A ratio to net sales was 15.4%.

Excluding seasonal headwinds, OPEX (Operating expenses such as R&D and SG&A) was kept under control within the range of long-term financial targets.

Non-GAAP operating income was 34.1 billion yen, equivalent to 16.2% of operating margin in the fourth quarter, showing a decrease of 1.9 billion yen (2.2 points) from the 35.9 billion yen and 18.4% of operating margin in the 2017 third quarter due to seasonal and temporary cost increases. On a year-on-year basis, non-GAAP operating income improved by 11.3 billion yen (2.5 points) mainly due to sales increases and continued OPEX discipline.

Non-GAAP net income attributable to shareholders of parent company in the fourth quarter was 30.3 billion yen.

Net cash provided by operating activities in the fourth quarter was 51.0 billion yen and net cash used in investing activities was 31.0 billion yen. These resulted in positive free cash flows of 20.0 billion yen.

Capital expenditures for property, plant, equipment (manufacturing equipment) and intangible assets, were 14.0 billion yen in the fourth quarter. These expenditures are based on the amount of investment decisions made and does not refer to the cash outlays in the cash flow statement.

Equity ratio was 47.7% as of December 31, 2017, against 46.5% as of September 30, 2017. Debt/equity ratio (gross) was 0.45 as of December 31, 2017.

(7)   R&D: Research & Development
(8) SG&A: Selling, general and administrative expenses
 

Summary of Full Year 2017 Results (Non-GAAP Basis)

Full year consolidated net sales were 781.5 billion yen, up 22.3% year-on-year. Full year semiconductor sales were 765.7 billion yen. On a year-on-year basis, semiconductor sales increased by 23.4%, which can be attributed mainly to: the solid growth of the Renesas standalone sales, which excludes the sales of Intersil from the entire Renesas Group sales; the integration of Intersil and the dissipation of the impact from the Kumamoto earthquake that occurred in the same period a year ago. Automotive sales increased by 13.8% year-on-year on a pro-forma basis, driven by strong demand for both Automotive Control and Automotive Information products. Industrial and Broad-based sales increased year-on-year on a pro-forma basis by 15.7% and 12.9%, respectively, mainly due to the strong demand for FA, home appliance and analog semiconductor devices.

Non-GAAP gross margin in the full year was 46.7%, and increased by 3.1 points due to an increase in net sales and integration of Intersil.

Non-GAAP R&D expenses in the full year were 125.9 billion yen, compared to 105.3 billion yen year-on-year. Full year R&D ratio to net sales was 16.1%.

Non-GAAP SG&A expenses in the full year were 111.3 billion yen, compared to 95.4 billion yen year-on-year. Full year SG&A ratio to net sales was 14.2%.

With regard to OPEX (Operating expenses such as R&D and SG&A), while R&D investments were made to attain future growth, we continued to control SG&A discipline.

Non-GAAP operating income was 128.1 billion yen, equivalent to 16.4% of operating margin in the full year. On a year-on-year basis, non-GAAP operating income improved by 78.0 billion yen equivalent to 12.2% of operating margin mainly due to sales increases and continued OPEX discipline.

Non-GAAP net income attributable to shareholders of parent company in the full year was 123.9 billion yen. Non-GAAP net income per share for the full year was 74.3 yen.

Net cash provided by operating activities in the full year was 164.2 billion yen and net cash used in investing activities was 432.6 billion yen, mainly due to expenditures in the amount of 311.4 billion yen. These resulted in negative free cash flows of 268.4 billion yen.

Capital expenditures for property, plant, equipment (manufacturing equipment) and intangible assets, were 78.5 billion yen in the full year. These expenditures for the acquisition of Intersil are based on the amount of investment decisions made and does not refer to the cash outlays in the cash flow statement.

Outlook for First Quarter 2018

In the first quarter of the 2018, Renesas expects semiconductor sales of 178.7 billion yen, up 3.5% year-on-year. Non-GAAP gross margin is expected to decrease by 4.1 points quarter-on-quarter, mainly due to a decrease in sales, and 1.6 points down from year-ago quarter to 43.9%, mainly due to an increase in depreciation cost and non-GAAP operating margin is expected to decrease by 4.9 points quarter-on-quarter, down 5.1 points from year-ago quarter to 11.3%. The forecasts for the first quarter of the 2018 are calculated at the rate of 107 yen per USD and 132 yen per Euro.

Capital expenditures are based on the amount of investment decisions made for property, plant and equipment (manufacturing equipment) and intangible assets during the first quarter, and are expected to be 10.4% of net revenue.

References

Refer to Renesas Electronics’ earnings report “Renesas Electronics Reports Financial Results for the Year Ended December 31, 2017” for the consolidated balance sheets, the consolidated statements of income and the consolidated statements of cash flows.

Forward-Looking Statements

The statements in this press release with respect to the plans, strategies and financial outlook of Renesas Electronics and its consolidated subsidiaries (collectively “we”) are forward-looking statements involving risks and uncertainties. We caution you in advance that actual results may differ materially from such forward-looking statements due to several important factors including, but not limited to, general economic conditions in our markets, which are primarily Japan, North America, Asia, and Europe; demand for, and competitive pricing pressure on, products and services in the marketplace; ability to continue to win acceptance of products and services in these highly competitive markets; and fluctuations in currency exchange rates, particularly between the yen and the U.S. dollar. Among other factors, downturn of the world economy; deteriorating financial conditions in world markets, or deterioration in domestic and overseas stock markets, may cause actual results to differ from the projected results forecast.

About Renesas Electronics Corporation

Renesas Electronics Corporation (TSE: 6723) delivers trusted embedded design innovation with complete semiconductor solutions that enable billions of connected, intelligent devices to enhance the way people work and live—securely and safely. A global leader in microcontrollers, analog & power and SoC products, Renesas provides the expertise, quality, and comprehensive solutions for a broad range of Automotive, Industrial, Home Electronics, Office Automation and Information Communication Technology applications to help shape a limitless future. Learn more at renesas.com.


Contacts

Media Contacts
Renesas Electronics Corporation
Kyoko Okamoto, +81 3-6773-3001
pr@renesas.com
or
Investor Contacts
Renesas Electronics Corporation
Makie Uehara, +81 3-6773-3002
ir@renesas.com

「鉄旅 OF THE YEAR 2017」東京駅~金沢駅間を北陸新幹線の貸切団体臨時列車を利用した初のツアーが「審査員特別賞」を受賞しました! – 時事通信


時事通信

「鉄旅 OF THE YEAR 2017」東京駅~金沢駅間を北陸新幹線の貸切団体臨時列車を利用した初のツアーが「審査員特別賞」を受賞しました!
時事通信
旅行のプロが、企画性やオリジナリティにこだわって造成した国内の優れた鉄道旅行商品に対して表彰を行い、「鉄道旅行」ならではの魅力を発信することで、鉄道旅行及び国内旅行のプロモーションに資することを目的としています。第7回目の今回は、2016年11月から2017年10月にかけて実際に販売し催行された鉄 ...

Sosei Announces Restatements of Previously Issued Quarterly and Full Year Accounts

  • Revenues and operating expenses are not impacted by restatements
  • Restatements limited to changes in previous tax charge estimates under IFRS
  • Q3 FY2017 results to be released on 14 February 2018

TOKYO & LONDON--(BUSINESS WIRE)--Sosei Group Corporation (“Sosei” or the “Company”; TSE Mothers Index: 4565), the world leader in GPCR medicine design and development, today announced that it will be restating selected financial statements previously issued by the Company.


Revenues and operating expenses are not impacted by the restatements.

The following periods will be subject to adjustments related to estimated tax charges under IFRS and associated balance sheet values1.

  • Q2 FY2016 (three-month period ended 30 September 2016)
  • Q3 FY2016 (three-month period ended 31 December 2016)
  • Q4 FY2016 / FY2016 (three- and 12-month periods ended 31 March 2017)
  • Q1 FY2017 (three-month period ended 30 June 2017)
  • Q2 FY2017 (three-month period ended 30 September 2017)

During 2017, the Company appointed new tax advisors and conducted a comprehensive global tax review. The outcome of the review indicated that tax advice previously received by the Company was inconsistent with the current global tax environment and, accordingly, the Company may have filed two erroneous tax returns in Japan, related to an additional Japanese tax liability arising from its UK operations. The Company has taken immediate and voluntary action to amend the previously filed tax returns, and to make all necessary disclosures to the relevant tax authorities.

The Company has assessed the total tax expense increase on FY2016 reported earnings (Q2, Q3 and Q4 FY2016) to be less than JPY 500 million (before potential penalties which are capped2), and will restate these accounts to reflect these changes. In addition, Q1 and Q2 FY2017 tax expenses will see modest increases (estimated to be less than JPY 200 million combined) which will be reflected in restated accounts. It is important to note that revenues and operating expenses are not impacted by the restatements in any way.

The Company will release its Q3 FY2017 results (three-month period ended 31 December 2017), together with all the restated accounts on 14 February 2018.

1

  The only items that are impacted are the tax expense/benefit line in the Statement of Comprehensive Income, and the associated deferred tax asset/liability and tax creditor values in the Statement of Financial Position.

2

Potential penalties only apply to FY2016 and are capped at a maximum amount of JPY 150 million. Management expect any potential penalty amount to be less than this given the Company self-reported the issue immediately and voluntarily to the relevant tax authorities.
 

About Sosei
Sosei is an international biopharmaceutical company focused on the design and development of new medicines originating from its proprietary GPCR-targeted StaR® technology and structure-based drug design platform capabilities. The Company is advancing a broad and deep pipeline of partnered and wholly owned product candidates in multiple therapeutic areas, including CNS, cancer, metabolic diseases and other rare/specialty indications. The Company’s leading clinical programs include a proprietary Phase 2 candidate for dementia with Lewy bodies (DLB) in Japan, together with partnered candidates aimed at the symptomatic treatment of Alzheimer’s disease (with Allergan) and immuno-oncology approaches to treat cancer (with AstraZeneca). Sosei’s additional partners and collaborators include Novartis, Teva, Pfizer, Daiichi-Sankyo, PeptiDream, Kymab and MorphoSys. The Company is headquartered in Japan with R&D facilities in the UK.

Sosei is listed on the Mothers Index of the Tokyo Stock Exchange (ticker: 4565). For more information, please visit http://www.sosei.com/en/.

Sosei Forward-looking statements
This press release may contain forward-looking statements, including statements about the discovery, development and commercialisation of products. Various risks may cause Sosei’s actual results to differ materially from those expressed or implied by the forward-looking statements, including: adverse results in clinical development programmes; failure to obtain patent protection for inventions; commercial limitations imposed by patents owned or controlled by third parties; dependence upon strategic alliance partners to develop and commercialise products and services; difficulties or delays in obtaining regulatory approvals to market products and services resulting from development efforts; the requirement for substantial funding to conduct research and development and to expand commercialisation activities; and product initiatives by competitors. As a result of these factors, prospective investors are cautioned not to rely on any forward-looking statements. We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.


Contacts

Sosei Group Corporation
Chris Cargill, +44 (0)7912 892 199
Head of Investor Relations and Corporate Communications
ccargill@sosei.com
or
Harumi Banse, +81 3 5210 3399
Corporate Communications (Japan)
hbanse@sosei.com
or
Citigate Dewe Rogerson (for International media)
Mark Swallow / David Dible, +44 (0)20 7638 9571
sosei@citigatedewerogerson.com

Murphy Oil Corporation Announces Preliminary Fourth Quarter and Full Year 2017 Financial and Operating Results, 2018 Capital Investment Program

EL DORADO, Ark.--(BUSINESS WIRE)--Murphy Oil Corporation (NYSE: MUR) today announced its financial and operating results for the fourth quarter ended December 31, 2017, including a net loss from continuing operations of $285 million, or $1.65 per diluted share. The fourth quarter loss included a $274 million charge associated with U.S. tax reform.


The company’s income from continuing operations before income taxes, was $2 million in the fourth quarter, and $72 million for the full year 2017. Financial highlights for the fourth quarter and full year 2017 include:

  • Achieved competitive EBITDAX per barrel of oil equivalent over $22 in the fourth quarter
  • Generated free cash flow from offshore assets near $120 million in the fourth quarter, and over $500 million for 2017
  • Lowered lease operating expense for onshore assets achieving a company record low in Eagle Ford Shale of $6.70 per barrel and $4.50 per barrel in Canada
  • Reduced selling and general expenses by 21 percent quarter-over-quarter
  • Maintained approximately $1.0 billion of cash on balance sheet at year-end 2017, totaling five sequential quarters at this level

Operating highlights for the fourth quarter and full year 2017 include:

  • Increased onshore production by 16 percent, quarter-over-quarter, excluding asset sales, driven by increased Kaybob Duvernay production of 31 percent, quarter-over-quarter
  • Replaced 123 percent of total reserves with a one year finding and development cost of $13.09 per barrel of oil equivalent
  • Solidified 2018 Gulf of Mexico near-infrastructure drilling schedule by farming into King Cake prospect and planning for Samurai delineation well

FOURTH QUARTER 2017 RESULTS

Murphy recorded a net loss from continuing operations of $285 million, or $1.65 per diluted share, for the fourth quarter 2017. The company reported adjusted income, which excludes both the results of discontinued operations and certain other items that affect comparability of results between periods, of $13 million, or $0.08 per diluted share. The adjusted income excludes the following items after-tax: the impact from the Tax Cuts and Jobs Act of $274 million, a foreign exchange gain of $22 million, a loss of $20 million from mark-to-market of open crude oil hedge contracts, a write down of inventory materials value of $14 million, and a redetermination expense of $9 million. The redetermination expense relates to a liability for past revenues and costs from an overall change in the unitization of the Kakap Gumusut field by the governments of Malaysia and Brunei. Details for fourth quarter results can be found in the attached schedules.

Earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations totaled $289 million, or $19.10 per barrel of oil equivalent (boe) sold. Earnings before interest, taxes, depreciation, amortization and exploration expenses (EBITDAX) totaled $334 million, or $22.12 per boe sold. Both EBITDA and EBITDAX for the fourth quarter included certain one-off items that reduced those balances by $21 million. Details for fourth quarter EBITDA and EBITDAX reconciliation can be found in the attached schedules.

Production in the fourth quarter 2017 averaged 168 thousand barrels of oil equivalent per day (Mboepd). Production was impacted in the quarter due to the following temporary factors: delayed production recovery following Hurricane Harvey along with shut-ins for offset operator fracs in the Eagle Ford Shale of 900 barrels of oil equivalent per day (boepd); unplanned downtime at the non-operated Habanero field, which is shut-in due to a fire at the Enchilada facility, and unplanned downtime at the non-operated Hibernia field for a combined total of 900 boepd; and the impacts from Typhoon Tembin and Tropical Storm Kai Tak in Malaysia of 800 boepd.

Over the course of the year, we stabilized our production. We achieved higher fourth quarter 2017 production year-over-year, which was primarily driven by a 16 percent increase from our onshore business, when adjusted for asset sales,” stated Roger W. Jenkins, President and Chief Executive Officer. “Our constant focus on cost reductions, consistent cash balance, premium price-advantaged portfolio, and the ongoing financial strategy of spending within cash flow places our company in an excellent position moving forward.”

FULL YEAR 2017 RESULTS

Murphy recorded a net loss from continuing operations of $311 million, or $1.81 per diluted share, for the full year 2017. The company reported an adjusted loss, which excludes both the results of discontinued operations and certain other items that affect comparability of results between periods, of $22 million, or $0.13 per diluted share. Details for full year 2017 results can be found in the attached schedules.

EBITDA from continuing operations totaled $1,211 million, or $20.42 per boe sold. EBITDAX totaled $1,334 million, or $22.49 per boe sold. Production for full year 2017 averaged 164 Mboepd.

The company continued to emphasize cost control during 2017, achieving a full year lease operating expense of $7.89 per boe, flat with 2016 in a year of onshore service cost inflation. In addition, 2017 selling and general expenses were $223 million, a 16 percent reduction from 2016.

FINANCIAL POSITION

As of December 31, 2017, the company had $2.8 billion of outstanding fixed-rate notes and approximately $1.0 billion in cash and cash equivalents. The fixed-rate notes have a weighted average maturity of 8.8 years and a weighted average coupon of 5.5 percent. The next senior note maturity for the company is in 2022. There were no borrowings on the $1.1 billion unsecured senior credit facility, which was extended to 2021, at quarter end.

IMPACT FROM THE TAX CUTS AND JOBS ACT

On December 22, 2017, the U.S. enacted into legislation the Tax Cuts and Jobs Act (“the Act”). For the year ended December 31, 2017, Murphy recorded a provisional tax expense of $274 million. The charge includes the impact of deemed repatriation of foreign income and the re-measurement of deferred tax assets and liabilities. Murphy will receive cash refunds of $30 million over the next four years relating to Alternative Minimum Taxes (AMT) paid in an earlier year. Murphy continues to assess the impact of this legislation including, among other things, the carry-forward of 2017 net operating losses, the change to U.S. federal tax rates, the possible limitations on the deductibility of interest paid, the option for expensing of capital expenditures, the migration from a “worldwide” system of taxation to a territorial system, and the use of certain border adjustments. The provisional tax expense recorded in 2017 is based on a reasonable estimate. The ultimate impact of the Act may differ from these estimates due to changes in interpretations and assumptions made by the company, as well as additional regulatory guidance that may be issued.

Under the Act, the company will have the flexibility to repatriate most past and future foreign earnings tax-free, except for a five percent withholding tax required to be paid on Canadian earnings repatriated to the U.S. parent company. The company’s statutory U.S. tax rate is 21 percent beginning in 2018, a decrease from the previous rate of 35 percent.

YEAR-END 2017 PROVED RESERVES

Murphy’s preliminary year-end 2017 proved reserves are 698 million barrels of oil equivalent (Mmboe) an increase from 685 Mmboe at year-end 2016. The change in year-over-year reserves is mainly attributed to additions from onshore assets, primarily oil-weighted Eagle Ford Shale and Tupper Montney natural gas.

The company’s total reserves replacement was 123 percent with organic reserves replacement of 113 percent. The reserve life index increased to 11.7 years from 10.6 years at year-end 2016. Final information related to the company’s year-end 2017 proved reserves will be provided in Murphy’s Form 10-K to be filed with the Securities and Exchange Commission in February.

We achieved another year of strong reserves replacement with total proved reserves nearing 700 Mmboe, which puts us back to pre-asset sale levels, and resulted in a competitive one year finding and development cost of $13.09 per boe,” commented Jenkins.

REGIONAL OPERATIONS SUMMARY

North American Onshore

The North American onshore business produced over 96 Mboepd in the fourth quarter, with 52 percent liquids. Fourth quarter 2017 operating expenses were $5.68 per boe, a 21 percent decrease from fourth quarter 2016.

Eagle Ford Shale – Production in the quarter averaged 51 Mboepd, with 90 percent liquids. During the quarter, the company brought 18 operated wells online, of which 15 were in the Catarina area, with an average initial production rate over 30 days (IP30 rate) exceeding 1,090 boepd, and three were in the Karnes area. Of the three Karnes wells, two were in the Austin Chalk and had an average IP30 rate over 1,070 boepd, and one was in the Upper Eagle Ford Shale and had an IP30 rate over 1,400 boepd. The company continued implementing cost-saving solutions resulting in a record company-low operating expense of $6.70 per boe, a 20 percent reduction from the same quarter in 2016.

In 2017, Murphy brought 78 Eagle Ford Shale wells online with 35 wells in Karnes, 31 wells in Catarina, and 12 wells in Tilden. The company continued proving the multi-stacked potential that is primarily in the Karnes and Catarina areas with production from the Lower Eagle Ford Shale, the Upper Eagle Ford Shale, and the Austin Chalk. The chart below illustrates the areas, zones and IP30 rates for the 2017 online wells.

 
2017 Eagle Ford Shale Wells Online
        Lower EFS       Upper EFS       Austin Chalk
        Wells   Avg IP30

boepd

      Wells   Avg IP30

boepd

      Wells   Avg IP30

boepd

Catarina       29*   1,057       2   1,131       -   -
Karnes       17   1,325       10   1,018       8   881
Tilden       12   657       -   -       -   -
Total Wells Online       58           12           8    

*includes one non-operated well

We continue to see robust results across our Eagle Ford Shale business, from reserves replacement to cost management to stacked pay potential. The outcome of the 2017 program supports our estimate of nearly 800 remaining wells that are profitable below $40 per barrel West Texas Intermediate (WTI) oil price. In addition, we have been able to demonstrate a 150 percent improvement in Catarina IP30 rates over the last five-year period,” commented Jenkins.

Midland Basin – In the fourth quarter, Murphy completed and brought online two wells in Dawson County that are currently being flowed back. At this time, oil rates are increasing as the wells continue to clean up. Murphy has two contiguous land positions in Dawson and Andrews Counties that total 30,800 net acres at an average cost of $1,700 per acre. The acreage in Andrews County is prospective in the Spraberry and Wolfcamp benches, as demonstrated by recent offset peer company tests.

Tupper Montney – Natural gas production in the quarter averaged 223 million cubic feet per day (MMcfd). Murphy brought a five well pad online in the Lower Montney with lateral lengths averaging greater than 10,000 feet. The Estimated Ultimate Recoveries (EURs) of these wells are exceeding the 16 billion cubic feet (Bcf) type curve and trending in line with 18 Bcf wells. Full cycle break-even costs continue to be less than C$2.00 AECO per thousand cubic feet (Mcf). As a result of long-term forward sales contracts and other marketing agreements, Murphy achieved industry-leading fourth quarter netbacks in the Tupper Montney of C$2.49 per Mcf, and C$2.58 per Mcf for full year 2017. The company has significantly reduced its future exposure to AECO prices through a combination of forward sales contracts and market diversification to the Malin, Chicago, Emerson and Dawn markets.

Kaybob Duvernay – Production in the quarter averaged over 4,100 boepd with 63 percent liquids, an increase of 31 percent from fourth quarter 2016. During the fourth quarter, three wells were brought online with peak rates greater than 1,000 boepd with 75 percent liquids. These wells are performing at or above the pre-drill type curves, ranging from 650 to 800 Mboe. The company will continue to optimize completion designs by testing well placement, lateral length, frac design and flow-back strategy. During 2017, the company brought 11 Kaybob West wells online, which are expected to have de-risked this area of the play. Murphy has 200 locations at 1,000 foot well spacing de-risked in the Kaybob West and Saxon areas. The company’s planned appraisal program over the coming years is expected to yield an inventory of approximately 1,000 de-risked well locations across the play.

Global Offshore

The offshore business produced near 72 Mboepd for the fourth quarter, with 72 percent liquids. Fourth quarter 2017 operating expenses were $11.53 per boe.

Malaysia – Production in the quarter averaged over 48 Mboepd, with 63 percent liquids. Block K and Sarawak averaged over 30 thousand barrels of liquids per day, while Sarawak natural gas production averaged over 99 MMcfd. The company’s ownership of the Kakap Gumusut field, operated by Shell, was slightly lowered due to a recent unitization agreement between the countries of Malaysia and Brunei that has impacted various production sharing contracts across both borders. The agreement altered the split between countries from 88/12 to 84/16 on a Malaysia/Brunei basis. Effective January 1, 2018, Murphy’s working interest was reduced by 0.195 percent resulting in the new overall working interest in the Kakap Gumusut field of 6.78 percent. This adjustment is reflected in Murphy’s production guidance and going forward, the company will have oil production from Brunei.

North America Production in the quarter for the Gulf of Mexico and East Coast Canada averaged over 23 Mboepd, with 91 percent liquids.

EXPLORATION UPDATE

Gulf of Mexico Exploration – During the fourth quarter, Murphy farmed into the King Cake prospect (AT 23). Murphy has also planned and is making final partner agreements for a Samurai (GC 432) delineation well. Both prospects are in line with the company’s strategy of pursuing oil-weighted, lower risk and lower working interest tie-back opportunities, with estimated net well costs in the range of $18 to $22 million per well.

We are pleased with our 2018 Gulf of Mexico exploration program as it focuses on prospects close to existing infrastructure, with expected F&D costs near $15 per barrel and break-even prices below $35 per barrel WTI,” commented Jenkins. “With the tax reform in the U.S. and continued low offshore service cost environment, we are expecting after-tax internal rates of return for this program, on a full cycle basis, to now exceed 30 percent on a modest $52 per barrel WTI price deck.”

Mexico Exploration – The company submitted the Exploration Plan for Deepwater Block 5 to Mexico’s regulatory agency. Along with its partners, Murphy expects to spud the first well late in the fourth quarter of 2018 with an estimated net well cost of $15 million.

Vietnam Exploration – In the Cuu Long Basin Block 15-01/05, Murphy is progressing the field development plan, which is on track for the Declaration of Commerciality in 2018.

Australia Exploration – Murphy added to its Vulcan Basin acreage position by farming into the AC/P-21 block with a 40 percent non-operated working interest. Currently, the company is acquiring 3D seismic over this block with an optional well commitment in 2019. Should a well be drilled, the net well cost is expected to be approximately $10 million.

2018 CAPITAL EXPENDITURE AND PRODUCTION GUIDANCE

Murphy is planning 2018 capital expenditures to be $1,056 million which assumes an oil price of $50 to $55 per barrel WTI and a Henry Hub natural gas price of $2.90 to $3.00 per Mcf. The table below illustrates the capital allocation by area.

 
2018 Capital Expenditure Guidance
Area Percent of Total CAPEX
U.S. Onshore 33
Canada Onshore 29
Malaysia 15
Exploration 10
North America Offshore 9
Other 4

For 2018, Murphy has allocated $650 million of capital, or 62 percent, to its North America onshore assets, which is a reduction of approximately 18 percent from $791 million in 2017.

In the Eagle Ford Shale, Murphy will spend $330 million in 2018 which includes 38 operated wells being brought online along with investments for continued field development. The company has allocated $300 million toward onshore Canadian assets in the Kaybob Duvernay, Placid Montney, and Tupper Montney. In the Tupper Montney, production is expected to be approximately 230 MMcfd per day, which is the volume required to keep the third-party operated natural gas processing plant at full capacity.

Production for North America onshore assets, with conservative capital spend in 2018, is expected to increase approximately nine percent, to over 96,200 boepd as compared to 88,200 boepd in 2017, excluding asset sales.

The Kaybob Duvernay and Placid Montney areas are expected to have annual production over 11 Mboepd, a 92 percent increase from 2017. Production in the Eagle Ford Shale is expected to be maintained close to full year 2017 levels, between 45,000 and 46,000 boepd.

Murphy has allocated $260 million of capital to its global offshore assets. The capital is primarily related to three major offshore field development projects: a subsea pump installation in the Gulf of Mexico, a subsea gas lift project for the Kikeh field in Malaysia, and the capital required in preparation to deliver gas into the PETRONAS floating LNG project for Block H Malaysia. The subsea pump project in the Gulf of Mexico will kick off production late in 2018 and it is expected the Kikeh gas lift project will produce mid 2018. Each of these projects are highly economic with planned internal rates of return averaging nearly 50 percent based on a $52 per barrel WTI price. In addition, investment is required for subsea equipment and drilling over the next two years in conjunction with the PETRONAS floating LNG project which remains on track to produce in 2020.

The company plans to allocate $106 million on exploration in 2018, with 45 percent for drilling, 20 percent for geological and geophysical studies, and the remainder for other explorations costs.

Production for the first quarter 2018 is estimated to be in the range of 164 to 168 Mboepd with full year 2018 production to be in the range of 166 to 170 Mboepd. North America onshore unconventional production represents 57 percent of full year guidance. Details on guidance can be found in the attached schedules.

Our 2018 capital program supports our strategy of investing in our growing onshore assets while supporting our long-lived, free cash flow providing offshore assets. Our increase in capital in 2018 is related to investments in subsea projects along with our Block H FLNG project in Malaysia. Our investment program is based on our strong desire to spend within our means and provide free cash flow in addition to our current dividend level. Our program is also strongly supported by our diversified portfolio that provides high netback prices,” commented Jenkins.

CONFERENCE CALL AND WEBCAST SCHEDULED FOR FEBRUARY 1, 2018

Murphy will host a conference call to discuss 2017 financial and operating results as well as provide 2018 guidance and an updated multi-year outlook on Thursday, February 1, 2018, at 11:00 a.m. ET. The call can be accessed either via the Internet through the Investor Relations section of Murphy Oil’s website at http://ir.murphyoilcorp.com or via the telephone by dialing toll free 1-833-832-5124, International 469-565-9821, reservation number 6498569. Replays of the call will be available through the company’s website at http://ir.murphyoilcorp.com.

FINANCIAL DATA

Summary financial data, operating statistics and a summary balance sheet for the fourth quarter 2017, with comparisons to the same period from the previous year, are contained in the following schedules. Additionally, a schedule indicating the impacts of items affecting comparability of results between periods and schedules comparing EBITDA and EBITDAX between periods are included with these schedules as well as guidance for the first quarter and full year 2018.

ABOUT MURPHY OIL CORPORATION

Murphy Oil Corporation is a global independent oil and natural gas exploration and production company. The company’s diverse resource base includes offshore production in Southeast Asia, Canada and Gulf of Mexico, as well as North America onshore plays in the Eagle Ford Shale, Kaybob Duvernay and Montney. Additional information can be found on the company’s website at http://www.murphyoilcorp.com.

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identified through the inclusion of words such as “aim”, “anticipate”, “believe”, “drive”, “estimate”, “expect”, “expressed confidence”, “forecast”, “future”, “goal”, “guidance”, “intend”, “may”, “objective”, “outlook”, “plan”, “position”, “potential”, “project”, “seek”, “should”, “strategy”, “target”, “will” or variations of such words and other similar expressions. These statements, which express management’s current views concerning future events or results, are subject to inherent risks and uncertainties. Factors that could cause one or more of these future events or results not to occur as implied by any forward-looking statement include, but are not limited to, increased volatility or deterioration in the level of crude oil and natural gas prices, deterioration in the success rate of our exploration programs or in our ability to maintain production rates and replace reserves, reduced customer demand for our products due to environmental, regulatory, technological or other reasons, adverse foreign exchange movements, political and regulatory instability in the markets where we do business, natural hazards impacting our operations, any other deterioration in our business, markets or prospects, any failure to obtain necessary regulatory approvals, any inability to service or refinance our outstanding debt or to access debt markets at acceptable prices, and adverse developments in the U.S. or global capital markets, credit markets or economies in general. For further discussion of factors that could cause one or more of these future events or results not to occur as implied by any forward-looking statement, see “Risk Factors” in our most recent Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (SEC) and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K that we file, available from the SEC’s website and from Murphy Oil Corporation’s website at http://ir.murphyoilcorp.com. Murphy Oil Corporation undertakes no duty to publicly update or revise any forward-looking statements.

NON-GAAP FINANCIAL MEASURES

This news release contains certain non-GAAP financial measures that management believes are good tools for internal use and the investment community in evaluating Murphy Oil Corporation’s overall financial performance. These non-GAAP financial measures are broadly used to value and compare companies in the crude oil and natural gas industry, although not all companies define these measures in the same way. In addition, these non-GAAP financial measures are not a substitute for financial measures prepared in accordance with GAAP, and should therefore be considered only as supplemental to such GAAP financial measures.


Contacts

Murphy Oil Corporation
Investor Contacts:

Kelly Whitley, 281-675-9107
kelly_whitley@murphyoilcorp.com
or
Amy Garbowicz, 281-675-9201
amy_garbowicz@murphyoilcorp.com
or
Emily McElroy, 870-864-6324
emily_mcelroy@murphyoilcorp.com


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LINE Corporation Announces Summary of Consolidated Financial Results for the Fiscal Year Ended December 31, 2017

Prepared in Accordance with the International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”)

TOKYO--(BUSINESS WIRE)--LINE Corporation (NYSE:LN) (TOKYO:3938) announces the summary of its consolidated financial results for the fiscal year ended December 31, 2017.


This is an English translation of the original Japanese-language document. Should there be any inconsistency between the translation and the original Japanese text, the latter shall prevail. All references to the “Company,” “we,” “us” or “our” shall mean LINE Corporation and, unless the context otherwise requires, its consolidated subsidiaries.

 
Company name:  

LINE Corporation (Stock Code: 3938) (the “Company”)

Stock exchange on which the shares are listed:   Tokyo Stock Exchange
URL:

http://linecorp.com/

Representative: Takeshi Idezawa, Chief Executive Officer
Contact: Kokan Ki, Executive Officer and Head of Finance and Accounting
Telephone: +81-3-4316-2050
Scheduled date of annual general meeting of shareholders: March 29, 2018
Payment date of dividends: –
Filing date of annual securities report: March 30, 2018
Supplemental materials prepared on financial results: Yes
Financial results conference scheduled: Yes (for institutional investors and analysts)
 

(Yen amounts are rounded to the nearest million, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended December 31, 2017 (from January 1, 2017 to December 31, 2017)

(1) Consolidated operating results   (Percentages indicate year-on-year changes.)
    Revenues  

Profit from operating
activities

 

Profit before income
taxes

  Profit for the year
Fiscal year ended

Millions of yen

  % Millions of yen   % Millions of yen   % Millions of yen   %
December 31, 2017 167,147 18.8 25,078 26.0 18,145 0.9 8,210 15.6
December 31, 2016   140,704   16.9   19,897   915.1   17,990     7,104  

 

   

Profit attributable to the
shareholders of the
Company

 

Comprehensive income
for the year

  Basic earnings
per share
  Diluted earnings
per share
Fiscal year ended Millions of yen   % Millions of yen   % Yen Yen
December 31, 2017 8,078 19.4 11,743 100.7 36.56 34.01
December 31, 2016   6,763     5,852     34.84   31.48
 
    Return on equity attributable to
the shareholders of the Company
  Ratio of profit before tax
to total assets
  Ratio of operating profit
to revenue
Fiscal year ended % % %
December 31, 2017 4.7 6.5 15.0
December 31, 2016   7.6   9.5   14.1

(Reference) Share of profit (loss) of associates accounted for using the equity method:

Fiscal year ended December 31, 2017     (6,321) million yen     Fiscal year ended December 31, 2016     (833) million yen

 

(2) Consolidated financial position

    Total assets   Total equity  

Equity attributable
to the shareholders
of the Company

 

Ratio of equity
attributable to the
shareholders of the
Company to total
assets

 

Equity attributable
to the shareholders
of the Company
per share

As of Millions of yen Millions of yen Millions of yen % Yen
December 31, 2017 303,439 189,977 185,075 61.0 779.30
December 31, 2016   256,089   161,023   160,834   62.8   738.53
 

(3) Consolidated cash flows

   

Cash flows from
operating activities

 

Cash flows from
investing activities

 

Cash flows from
financing activities

 

Cash and cash
equivalents at the end
of the year

Fiscal year ended Millions of yen Millions of yen Millions of yen Millions of yen
December 31, 2017 10,965 (34,230) 11,439 123,606
December 31, 2016   28,753   (34,086)   106,628   134,698
 

2. Cash dividends

    Annual dividends per share   Total amount of
cash dividends
(annual)
  Payout ratio
(consolidated)
 

Dividend on
equity attributable to the
shareholders of
the Company ratio
(consolidated)

First
quarter-end
 

Second
quarter-end

 

Third
quarter-end

 

Fiscal
year-end

  Total
Yen Yen Yen Yen Yen Millions of yen % %
For the year ended
December 31, 2016
0.00 0.00 0.00 0.0 0.0

For the year ended
December 31, 2017

0.00 0.00 0.00 0.0 0.0
For the year ending December 31, 2018 (Forecast)                    
 

3. Consolidated earnings forecasts for 2018 (from January 1, 2018 to December 31, 2018)

Amid rapid international and domestic changes, there is a level of uncertainty within the mobile applications market for smartphones and other mobile devices, the main business of the Company and its subsidiaries (collectively, the “Group”). As the state of this market significantly impacts the Group’s financial results, it is difficult to formulate a precise earnings forecast. Furthermore, as the Company’s shares are listed on the New York Stock Exchange as well as the Tokyo Stock Exchange, we are also carefully considering risks relating to U.S. securities regulations. Accordingly, an announcement concerning earnings forecasts is not made at this time.

 

Notes

(1)  

Changes in significant subsidiaries during the fiscal year ended December 31, 2017 (changes in specified subsidiaries resulting in change in scope of consolidation): None

 
(2) Changes in accounting policies and estimates
a. Changes in accounting policies due to revisions in accounting standards under IFRS: None
b. Changes in accounting policies due to other reasons: None
c. Changes in accounting estimates: None
 
(3) Number of shares issued and outstanding (common stock)
a. Total number of common shares issued and outstanding at the end of the fiscal year (including treasury shares)
    As of December 31, 2017   238,496,810 shares
As of December 31, 2016 217,775,500 shares
b. Number of treasury shares at the end of the fiscal year
As of December 31, 2017 1,007,710 shares
As of December 31, 2016 – shares
c.

Average number of common shares outstanding during the fiscal year

For the fiscal year ended December 31, 2017 220,945,548 shares
For the fiscal year ended December 31, 2016 150,693,608 shares
        Note:   As of December 31, 2015, the Company had issued 174,992,000 class A shares. However, through an amendment to its articles of incorporation effective as of March 31, 2016, the Company terminated its dual class structure and converted all class A shares into common shares. The average number of class A shares outstanding during the fiscal year ended December 31, 2016 was 43,390,387. The combined average number of common shares and class A shares outstanding for the fiscal year ended December 31, 2016 was 194,083,995.
 

(Reference) Separate financial results for the fiscal year ended December 31, 2017 (from January 1, 2017 to December 31, 2017) under Japanese GAAP

(Yen amounts are rounded down to the nearest million, unless otherwise noted.)

 
(1) Separate operating results       (Percentages indicate year-on-year changes.)
    Revenues  

Profit from operating
activities

 

Profit from ordinary
activities

  Profit for the year
Fiscal year ended Millions of yen   % Millions of yen   % Millions of yen   % Millions of yen   %
December 31, 2017 125,929 17.7 13,848 59.9 14,157 44.4 7,733 206.2
December 31, 2016   107,032   21.0   8,661   134.4   9,806   182.4   2,525  
 
    Basic earnings
per share
  Diluted earnings
per share
Fiscal year ended Yen Yen
December 31, 2017 35.00 32.56
December 31, 2016   13.01   11.75
 

(2) Separate financial position

    Total assets   Net assets   Equity ratio   Net assets
per share
As of Millions of yen Millions of yen % Yen
December 31, 2017 265,517 185,332 67.7 756.39
December 31, 2016   237,786   164,229   61.6   672.78

(Reference) Equity:

Fiscal year ended December 31, 2017     179,633 million yen     Fiscal year ended December 31, 2016     146,515 million yen
 

Reasons for variance between separate financial results for the fiscal years ended December 31, 2017 and 2016

Revenues, profit from operating activities, profit from ordinary activities, and profit for the year ended December 31, 2017 increased significantly as a result of the significant growth in “performance ads” such as Timeline Ads and LINE News Ads provided through the LINE advertising platform, the performance-based advertising platform we operate.

* Information regarding the audit procedures

This summary financial results report is not subject to the audit procedures in accordance with the Financial Instruments and Exchange Act.

* Cautionary statement with respect to forward-looking statements, and other information

This document contains forward-looking statements with respect to the current plans, estimates, strategies and beliefs of the Company. Forward-looking statements include, but are not limited to, those statements using words such as “anticipate,” “believe,” “continue,” “expect,” “estimate,” “intend,” “project” and similar expressions and future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” “may,” or similar expressions generally intended to identify forward-looking statements. These forward-looking statements are based on information currently available to the Company, speak only as of the date hereof and are based on the Company’s current plans and expectations and are subject to a number of known and unknown uncertainties and risks, many of which are beyond the Company’s control. As a consequence, current plans, anticipated actions and future financial position and results of operations may differ significantly from those expressed in any forward-looking statements in the document. You are cautioned not to unduly rely on such forward-looking statements when evaluating the information presented and the Company does not intend to update any of these forward-looking statements. Risks and uncertainties that might affect the Company include, but are not limited to:

          i.   its ability to attract and retain users and increase the level of engagement of its users;
ii. its ability to improve user monetization;
iii. its ability to successfully enter new markets and manage its business expansion;
iv. its ability to compete in the global social network services market;
v. its ability to develop or acquire new products and services, improve its existing products and services and increase the value of its products and services in a timely and cost-effective manner;
vi. its ability to maintain good relationships with platform partners and attract new platform partners;
vii. its ability to attract advertisers to the LINE platform and increase the amount that advertisers spend with LINE;
viii. its expectations regarding its user growth rate and the usage of its mobile applications;
ix. its ability to increase revenues and its revenue growth rate;
x. its ability to timely and effectively scale and adapt its existing technology and network infrastructure;
xi. its ability to successfully acquire and integrate companies and assets;
xii. its future business development, results of operations and financial condition;
xiii. the regulatory environment in which it operates;
xiv. fluctuations in currency exchange rates and changes in the proportion of its revenues and expenses denominated in foreign currencies; and
xv. changes in business or macroeconomic conditions.
 

Index

1. Overview of operating results and others
2. Basic approach to the selection of accounting standards
3. Consolidated financial statements - unaudited

1. Overview of operating results and others

(1) Overview of operating results for the fiscal year

In the fiscal year ended December 31, 2017 (from January 1, 2017 to December 31, 2017), despite continuing geopolitical risk related to North Korea and the Middle East, there were no exceptional monetary policy surprises in various countries, and the global economy remained stable. In addition, exports in Thailand and Taiwan, countries with which the Company has close relationships, were robust, and both countries continued to record positive GDP growth. Meanwhile, the Japanese economy showed signs of recovery in exports in industries such as the IT industry, firm improvement in employment rates and personal income levels, while personal spending showed moderate improvement.

Amid such circumstances, in the internet industry in which the Group is engaged, the total number of mobile phone shipments in Japan is forecast to be 37.4 million for the period from April 2017 to March 2018, an increase of 2.5% year on year. During the same period, the ratio of smartphones to the total number of mobile phone shipments in Japan is forecast to reach 84.8%, an increase of 2.2 percentage points year on year. Although the overall number of mobile phone shipments has hit a ceiling, there was an increase in users switching from feature phones to smartphones and an increase in the number of SIM-free smartphones. Current estimates suggest that the number of smartphone contracts in Japan will exceed 100 million by FY 2018, and the mobile internet market is expected to continue to grow on the back of this expansion. (Source: MM Research Institute, Overview of domestic mobile phone shipments for FY 2017).

In this business environment, the Group actively moved forward with business development focused on the LINE business and portal segment. As of December 31, 2017, MAUs* in our four key countries (Japan, Taiwan, Thailand and Indonesia) had reached 167.5 million, a year-on-year increase of 0.3%.

* Monthly Active Users (“MAUs”) in a given month refers to the number of user accounts that (i) accessed the LINE messaging application or any LINE Games through mobile devices; (ii) sent messages through the LINE messaging application from personal computers; or (iii) sent messages through any other LINE application from mobile devices, in each case at least once during that month.

Revenues

The Group’s revenues from continuing operations from its major services in the fiscal years ended December 31, 2016 and 2017, are as follows:

   

(In millions of yen)

   

For the fiscal year
ended December 31,

  2016   2017
LINE business and portal segment  
Communication and content
Communication(1) 29,290 30,225
Content(2) 44,784 40,144
Others(3)   11,923 20,241
Sub-total   85,997 90,610
Advertising
LINE advertising(4) 44,521 66,104
Portal advertising   10,186 10,433
Sub-total   54,707 76,537
Total   140,704 167,147
 
    (1)   Revenues from communication increased mainly due to the steady growth of Creators’ Themes, as well as an increase in the number of new stickers available due to a shortening of the time needed for stickers to pass the review process and enhancement of products by popular creators of Creators’ stickers.
(2) Revenues from content decreased mainly due to a decrease in revenues generated by the LINE Games business as a result of fewer new title releases, although we are steadily promoting existing services such as LINE Manga, LINE Fortune and LINE MUSIC.
(3) Revenues from others saw the expansion of LINE Friends service outlets overseas, primarily in Asia, as well as a steady growth of LINE Mobile, which was launched in September 2016. Furthermore, LINE Pay posted significant growth, particularly in Taiwan.
(4) In LINE advertising, in addition to substantial growth of “performance ads” (Timeline and LINE NEWS etc.), “messenger ads” (LINE@) also grew, contributing to an increase in revenues.

Profit from operating activities

Profit from operating activities consists of revenues and other operating income reduced by operating expenses. In the fiscal year ended December 31, 2017, other operating income included 10,444 million yen in gain on transfer of business resulting from the restructuring of our camera application business. With respect to operating expenses, while partially offset by a decrease in share-based payment expenses, employee compensation expenses increased due mainly to headcount growth in accordance with our business expansion. Marketing expenses increased due mainly to the active running of TV commercials for LINE Mobile and cloud AI platform “Clova”. Authentication and other service expenses increased due mainly to additional network costs for LINE Mobile to serve an increasing number of users. Depreciation expenses of furniture and fixtures which were newly purchased increased due mainly to the relocation of our headquarter offices. And other operating expenses increased due mainly to rent payments for the new headquarter offices and cost of goods sold for Clova and LINE Friends. Accordingly, the Group recorded operating expenses of 154,080 million yen, a year-on-year increase of 21.6%.

As a result, for the fiscal year ended December 31, 2017, the Group recorded a profit from operating activities of 25,078 million yen, a year-on-year increase of 26.0%.

Profit for the year from continuing operations

The Group recorded profit before tax from continuing operations of 18,145 million yen in the fiscal year ended December 31, 2017, a 0.9% increase year on year. The main factors of increase were an increase in profit from operating activities and an increase in other non-operating income due to the revaluation of conversion right and redemption right of preferred stock. The main factors of decrease were an increase in share of loss of associates and joint ventures mainly related to the Group’s interest in Snow Corporation, an increase in loss on foreign currency transactions, net, and an increase in other non-operating expenses due to the impairment loss for available-for-sale financial assets. On an after-tax basis, profit for the year from continuing operations was 8,223 million yen in the fiscal year ended December 31, 2017, a decrease of 9.5% year on year. The effective tax rate for the fiscal year ended December 31, 2017 of 54.7% differed from the Japanese statutory tax rate of 31.7% for the year ended December 31, 2017. The effective income tax rate of 54.7% was primarily due to pre-tax losses recorded by some subsidiaries on a standalone basis and recognition of share of loss on associates and joint ventures for which no deferred tax assets were recognized as the related tax benefits could not be recognized. The effective tax rate for the fiscal year ended December 31, 2016 was 49.5%. The effective tax rate of the fiscal year ended December 31, 2017 increased to 54.7% from the effective tax rate of the fiscal year ended December 31, 2016 of 49.5% due mainly to an increase in the share of loss of associates and joint ventures.

Profit for the year

Loss for the year from discontinued operations related to the MixRadio business, which existed in the fiscal year ended December 31, 2016, decreased. Therefore, after subtracting the loss for the year from discontinued operations, profit for the year was 8,210 million yen in the fiscal year ended December 31, 2017, an increase of 15.6% year on year. Profit attributable to the shareholders of the Company was 8,078 million yen in the fiscal year ended December 31, 2017, an increase of 19.4% year on year.

(2) Overview of financial position for the fiscal year

Regarding the financial position of the Group as of December 31, 2017, total assets of the Group increased by 47,350 million yen compared to the end of the fiscal year ended December 31, 2016 to 303,439 million yen. The main factors of increase were a 14,725 million yen increase in trade and other receivables due to an increase in revenues, a 13,367 million yen increase in goodwill resulting from acquisition of subsidiaries, and a 12,132 million yen increase in investments in associates and joint ventures mainly due to the acquisition of additional shares of Snow Corporation, an associate of the Group, in exchange for the camera application business, while the main factor of decrease was a 11,092 million yen decrease in cash and cash equivalents.

Total liabilities increased by 18,396 million yen to 113,462 million yen as of December 31, 2017. The main factors of increase were a 7,278 million yen increase in trade and other payables due to increased costs associated with the expansion of businesses and a 6,689 million yen increase in advances received mainly due to an increase in unused LINE Points.

Total shareholders’ equity increased by 28,954 million yen to 189,977 million yen as of December 31, 2017. The main factors of increase were a 14,513 million yen increase in share capital, recognition of 8,078 million yen of profit attributable to the shareholders of the Company in the fiscal year ended December 31, 2017, and a 2,352 million yen increase in share premium mainly due to the exercise of stock options.

(3) Overview of cash flow position for the fiscal year

The balance of cash and cash equivalents (hereinafter, “cash”) as of December 31, 2017 decreased by 11,092 million yen from the end of the fiscal year ended December 31, 2016 to 123,606 million yen.
The respective cash flow positions are as follows.

Cash flows from operating activities
Net cash provided by operating activities was 10,965 million yen in the fiscal year ended December 31, 2017, compared to net cash provided by operating activities of 28,753 million yen in the fiscal year ended December 31, 2016. The cash inflows, and related adjustments for non-cash items and changes in working capital, in the fiscal year ended December 31, 2017 are primarily related to recognition of profit before tax from continuing operations of 18,145 million yen, recognition of depreciation and amortization expenses of 7,149 million yen, recognition of share of loss of associates and joint ventures of 6,321 million yen, an increase of 6,338 million yen in advances received, and an increase of 6,215 million yen in trade and other payables. The cash outflows, and related adjustments for non-cash items and changes in working capital, in the fiscal year ended December 31, 2017 are primarily related to recognition of gain on loss of control of subsidiaries and business transfer of 10,444 million yen, an increase of 13,539 million yen in trade and other receivables, and income taxes paid of 12,421 million yen.

Cash flows from investing activities
Net cash used in investing activities was 34,230 million yen in the fiscal year ended December 31, 2017, compared to net cash used in investing activities of 34,086 million yen in the fiscal year ended December 31, 2016. Factors affecting the cash flows in the fiscal year ended December 31, 2017 are primarily related to acquisition of property and equipment and intangible assets of 12,622 million yen, acquisition of subsidiaries and businesses, net of cash acquired of 11,887 million yen, and investments in debt instruments of 6,433 million yen.

Cash flows from financing activities
Net cash provided by financing activities was 11,439 million yen in the fiscal year ended December 31, 2017, compared to net cash provided by financing activities of 106,628 million yen in the fiscal year ended December 31, 2016. The cash inflows in the fiscal year ended December 31, 2017 are primarily related to 11,489 million yen in exercise of stock options.

(4) Forecasts for the next quarter

The Group’s revenues for the first quarter of FY 2018 (January 1, 2018 to March 31, 2018), driven by the steady growth of revenues from advertising services, are expected to be higher compared to the corresponding period of 2017. Specifically, in LINE advertising, in addition to revenues from LINE Official Accounts, revenues from “messenger ads” following the steady growth of LINE@ accounts both in domestic and overseas markets as well as revenues from “performance ads” following the enhancement of the LINE advertising platform are expected to contribute to revenue growth. With respect to content distribution, the Group expects to continue to generate steady revenues, mainly because the Group plans to appropriately update existing titles as well as the titles launched at the end of FY 2017 and to implement marketing activities.


Contacts

LINE Corporation
Michiko Setsu, +81-3 4316 2104
Global PR
dl_gpr@linecorp.com


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Seoul Semiconductor achieves 1.04 billion US$ record annual revenues for fiscal year 2017

  • Reported 2017 revenues of US$ 1.04 billion and an operating profit of US$ 92 million, an increase of 16% and 71% year-over-year respectively as a result of rising sales across all business divisions
  • The increased revenue and profit are attributable to its portfolio of differentiated technologies and patents, which are gaining global wide recognition from its customers

ANSAN, South Korea--(BUSINESS WIRE)--$KOSDAQ046890 #Acrich--Seoul Semiconductor Co., Ltd. (KOSDAQ 046890), a market leader in LED (light emitting diode) design and manufacturing, today announced 2017 fiscal year consolidated revenues of US$ 1.04 billion. The 16% rise in consolidated revenues far exceeds the industry average, which grew 2% during the same period. The growth of revenue is contributed to improvements in both general lighting sales and IT product related sales growing in the mid-teens as well as the automotive lighting business which grew more than 20%.


The rise in revenue for the general lighting segment was largely due to an increase in sales of 220V and 370V Acrich MJT products for household and industrial applications. Other notable revenue increases were reported for WICOP, an innovative product line of package-less LEDs, as well as for the Acrich NanoDriver, which incorporates step drive methods that achieve results greater than those of conventional SMPS technology. In addition to offering these differentiated technologies, Seoul expects its SunLike natural spectrum LED technology, which may offer health benefits for human eyes, to lead the future of LED lighting and become a large contributor to the future sales and profit for the company.

Researchers who won the Nobel Prize in 2017 were recognized for their new findings of the impact of light on circadian rhythm in humans. This has proven to be an important topic in our society and generated great attention for Dr. Charles Czeisler, the Harvard professor that has dedicated his research to this particular area. He is now conducting research study with NASA on how light affects the circadian rhythms of astronauts.

According to new research, myopia (near-sightedness) increased from 20% in the 1950s to 80% in 2010 among populations in Asia. Fluorescent lights and conventional LED light sources emit a strong blue light that is known to cause eye fatigue, which may later result in retinal damage. Seoul Semiconductor, together with Toshiba Materials of Japan, has jointly developed SunLike natural spectrum LED technology, which provides lighting conditions most similar to actual sun light and can be seen as a solution that helps to protect human eyes from this potential damage.

Company outlook

The company provided a revenue guidance of KrW 270 to 290 billion for the first quarter of 2018. This figure is in range of 5% to 13% on a year-over-year basis. Although first quarter is normally considered to be an off-season, the company is showing a positive outlook for growth from last year for this 2018 fiscal year.

Sangbum Kim, the company’s Chief Financial Officer, has stated that fiscal year 2017 sales were a result of the company’s relentless efforts to stay ahead of competition by continuously investing in R&D and strengthening global sales organizations. In order to further accelerate revenue growth into the double digit range for 2018, the company plans to further drive sales of differentiated products such as SunLike while also shifting more focus to its rapidly growing automotive lighting business.

About Seoul Semiconductor:

Seoul Semiconductor develops and commercializes light emitting diodes (LEDs) for automotive, general illumination, specialty lighting, and backlighting markets. As the fourth-largest LED manufacturer globally, Seoul Semiconductor holds more than 12,000 patents, offers a wide range of technologies, and mass produces innovative LED products such as SunLike – delivering the world’s best light quality in a next-generation LED enabling human-centric lighting optimized for circadian rhythms; Wicop – a simpler structured package-free LED which provides market leading color uniformity, cost savings at the fixture level with high lumen density and allows design flexibility; NanoDriver Series – World’s Smallest 24W DC LED Drivers; Acrich, the world's first high-voltage AC-driven LED technology developed in 2005, includes all AC LED-related technologies from chip to module and circuit fabrication, as well as multi-junction technology (MJT); and nPola, a new LED product based on GaN-substrate technology that achieves over ten times the output of conventional LEDs. UCD constitutes a high color gamut display which delivers over 90 % NTSC.

For more information about Seoul Semiconductor, please visit http://www.seoulsemicon.com

# Trademarks

Wicop and Acrich are trademarks of Seoul Semiconductor Co., Ltd.

Investor information and additional product details are available on the company website, www.seoulsemiconductor.com

Forward-looking statements:

This press release material contains forward-looking statements which reflect Seoul Semiconductor’s current views with respect to future events and financial performance, which are subject to certain risks and uncertainties which could cause actual results to differ materially from those anticipated. Although Seoul Semiconductor believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be attained. Seoul Semiconductor undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. All financial figures are consolidated unless stated otherwise.


Contacts

Europe
Seoul Semiconductor Europe GmbH
Ariane Heim
Tel: +49 (0)89 450 3690-0
Email: press.eu@seoulsemicon.com
or
North America
Seoul Semiconductor Inc.
David Cox
Tel: +1 (919) 410-9856
Email: David.cox@seoulsemicon.com
or
Asia
Seoul Semiconductor Co., Ltd
Jake Jung
Tel: +82 070.4391.8270
Email: pr@seoulsemicon.com

Gshopper Japan Achieved Strong Sales Performance in Its Second Year

TOKYO & SEOUL, South Korea--(BUSINESS WIRE)--#Gshopper--Gshopper, a leading cross-border e-commerce company, today announced that Gshopper Japan’s 2017 annual sales exceeded JPY 640 million. Gshopper’s global annual sales exceeded its annual sales target of USD 100 million in early December 2017.


The expansion of Japan business is one of the prestigious achievements that contributed to the remarkable growth of Gshopper in 2017. Established in February 2016 in Tokyo's Toranomon area where famous Japanese IT companies are concentrated, Gshopper Japan has recruited local talents and has been working closely with renowned Japanese consumer brands and suppliers. At the same time, the company has improved its logistics system with larger geographical coverage and faster delivery speed.

Gshopper Japan’s monthly sales grew to JPY 190 million at the end of 2017. The number is about 20 times’ increase from the beginning of 2017. Gshopper Japan team achieved the significant growth in high efficiency – 7 employees worked together with great teamwork spirit and accomplished the fastest growth in Gshopper group.

Gshopper Japan provides integrated cross-border distribution solutions including procurement, sales, marketing, CS, and logistics to Japanese brands. Gshopper’s local sales experts in Japan, Korea, and China offices have been working closely with over 40 global channels including Tmall, JD.com, VIP, and Kaola, providing customized services by utilizing its own big data technology. Recently, there has been increasing requests for business cooperation from various Japanese brands in many industries such as cosmetics, household, childcare, food, and home appliances.

Kazunori Shibukawa, sales director of Gshopper Japan, said, "We are delighted that Gshopper Japan has achieved rapid growth through recruitment and business model diversification in 2017. Gshopper Japan will work more closely with Japanese suppliers and brands targeting for monthly sales of JPY 1 billion by the end of this year. Gshopper will continuously strive to enter the global market such as USA, Southeast Asia, Russia, etc. and stabilize the 'Global to Global (G2G) business model’ ".


Contacts

Gshopper Korea
Yoo Na Min, 82-70-5121-4043
yoona.min@gshopper.com