Slide 1: FY2017 2nd Quarter Financial Results ended Sep 30, 2016
FY2017 2 Quarter Financial nd Results ended Sep 30, 2016 Ⅰ．Closing results Ⅱ．Strategies Oct 28, 2016 This information is the exclusive property of DENSO CORPORATION. Without their consent, it may not be reproduced or given to third parties.
Slide 2: Overview of FY2017 2nd Quarter Financial Results
Overview of FY2017 2nd Quarter Financial Results 1 / 21 1. Despite production volume increase and the growth in sales, revenue and operating profit decreased due to appreciation of the Yen. 2. Downward revision to the full-year forecast revenue due to the market trend,upward revision to the full-yea
Slide 3: FY2017 2nd Quarter Financial Results
FY2017 2nd Quarter Financial Results 2 / 21 FY17 1Q FY17 ２Q FY16 FY16 1Q ２Q Change Revenue 2,176.9 2,228.5 -51.5 -2.3% Operating Profit ( Excludes other income/ (6.4%) 138.9 (7.5%) 167.2 -28.3 -16.9% expenses） Other incom e/ expens es 3.8 -19.2 +22.9 Operating Profit (6.6%) 142.7 (6.6%) 148.0 -5.3 -
Slide 4: FY2017 2nd Quarter Consolidated Revenue (By Customer)
FY2017 2nd Quarter Consolidated Revenue ( By Customer） 3 / 21 (Unit: Billions of Yen) ( ):Change from <>:Change from OE Revenue for others FY16 2Q FY16 2Q excludes 1000 997.2 FX difference After-market, 934.6 （△6.3%) <＋5.9%> New business&Others 900 223.8 232.5 199.6 Others 10.4% Toyota (-10.8%) <-0.
Slide 5: FY2017 2nd Quarter Consolidated Revenue (By Product)
FY2017 2nd Quarter Consolidated Revenue ( By Product） 4 / 21 <>:Change from (Unit: Billions of Yen) ( ):Change FY16 2Q excludes from FY16 2Q FX difference 2,400 2,228.5 2,176.9 (-2.3%) <+7.7%> 31.5 32.5 New Business (+3.0%) <+6.1%> 27.9 <-3.8%> 26.3 Other Automotive (-5.9%) 154.4 145.0 Small Motors
Slide 6: Change in 2nd Quarter Operating Profit
Change in 2nd Quarter Operating Profit 5 / 21 (Unit: Billion of Yen) +7.0 148.0 167.2 138.9 142.7 Raw material cost +18.0 Operating profit Excludes other -59.0 Operating profit Excludes other cost reduction Variable Operating profit Operating profit -12.0 -9.0 Currency exchange loss Labor cost -7.0
Slide 7: 2nd Quarter Geographical Segments by Company Location
2nd Quarter Geographical Segments by Company Location 6 / 21 (Unit: Billions of Yen) Revenue Operating [ ]: Ratio to Revenue Profit 1,400 1,292.3 80 71.4 FY16 2Q -26.4% FY16 2Q 1,282.8 [5.6%] FY17 2Q 70 FY17 2Q 1,200 +0.7% 60 1,000 52.6 +9.1% 46.1 [4.1%] 50 42.3 [8.6%] 800 -7.3% -6.3% [7.3%] +18.3%
Slide 8: 2nd Quarter Geographical Segments by Company Location (Local Currency Base)
2nd Quarter Geographical Segments by Company Location （Local Currency Base ,excludes other income/expenses) 7 / 21 (Unit: Billions of Yen) [ ]: Ratio to Revenue Revenue Operating Profit 1,400 1,292.3 100 91.8 FY16 2Q FY16 2Q 1,282.8 [7.2%] 90 1,200 +0.7% FY17 2Q -47.1% FY17 2Q 80 1,000 +35.8% 70 +11
Slide 9: FY2017 Financial Forecast
FY2017 Financial Forecast 8 / 21 (Ratio to Revenue) (Unit: Billions of Yen) As of FY17 Change from June June 2016 FY17 Current Revised Amount Ratio FY16 FY16 Actual Revenue 4,400.0 4,380.0 -20.0 -0.5% 4,524.5 Operating Profit ( Excludes other income/ (6.4%) 282.0 (6.5%) 286.0 +4.0 +1.4% (8.1%) 365.2
Slide 10: Strategies
Strategies １.Revenue/profit target for FY2021 ２.Growth strategy in Security & Safety ３.Financial and capital strategies This information is the exclusive property of DENSO CORPORATION. Without their consent, it may not be reproduced or given to third parties.
Slide 11: Look back on the Revenue
Look back on the Revenue 9 / 21 (Unit: Billion of Yen) 46,000 45,000 4,500 New business Aftermarket & exchange loss for others Revenue OE Currency 44,000 Revenue Group Toyota 43,000 42,000 41,000 Revenue 40,000 4,000 39,000 38,000 14/3 FY2014 17/3予 FY2017 Forcast Reference: Fiscal year in which the
Slide 12: Look back on the operating profit
Look back on the operating profit 10 / 21 (Unit: Billion of Yen) 4,000 400 （ Excludes other income/expenses) Spending to launch new plants cost reduction Variable outside Japan/new products Operating profit Labor cost exchange loss R&D Currency 300 3,000 Depreciation （ Excludes other income/expenses
Slide 13: Growth targets toward 2021
Growth targets toward 2021 11 / 21 ＜Revenue＞ ＜Operating profit （Unit: trillion yen） （Excludes other income/expenses)＞ ($105 (Unit: Billion of Yen) operating profit ratio ($105 (%) /€115) ratio /€115) 5.0 ratio ($105 500 9.0 /€115) ($120 ($105 ◆ ($120 /€133) /€115) /€133) ($105 400 ◆ 8.0 /€115) ($105
Slide 14: Strategies
Strategies １.Revenue/profit target for FY2021 ２.Growth strategy in Security & Safety ３.Financial and capital strategie This information is the exclusive property of DENSO CORPORATION. Without their consent, it may not be reproduced or given to third parties.
Slide 15: Concept of initiatives in Security & Safety
Concept of initiatives in Security & Safety 12 / 21 Values to Flexible mobility with security and safety ensured be offered - reliable ADAS/automated driving systems- technologies Forcast Connection Fail Cyber Sensing Ability to driver operational security Prepare for an Information emergency securi
Slide 16: Strengthen the relationship with partners
Strengthen the relationship with partners 13 / 21 Work with partners to take advantage of mutual strengths ：technologies ・UI software ・high-precision ・Multilingual speech ：examples of partners location recognition ・high-precision maps ・speech recognition NTT DATA MSE based on machine ・Information se
Slide 17: Achieve the recognition of pedestrians at night - Example 1
Achieve the recognition of pedestrians at night –Example①- 14 / 21 Improves Performance of In-vehicle Vision Sensors with Sony Sony Semiconductor Solutions Corporation (released on Oct.25) Current newly products developed products This information is the exclusive property of DENSO CORPORATION. With
Slide 18: Develop AI technologies - Example 2
Develop AI technologies –Example②- 15 / 21 For next-generation image recognition systems The system of developing Deep Neural Network（DNN） algorithms (released on Oct.17) Morpho universities TOSHIBA Hard IP computing Vision Sensors training data environment subsidiaries IT labo venture universities
Slide 19: Image recognition achieved by DNN technology
Image recognition achieved by DNN technology 16 / 21 Recognize individual persons, vehicles and white lines,etc. Input current This information is the exclusive property of DENSO CORPORATION. Without their consent, it may not be reproduced or given to third parties.
Slide 20: Image recognition achieved by DNN technology
Image recognition achieved by DNN technology 17 / 21 Recognize whole driving situations (including signals and roads,etc.) Input DNN Recognize the available road space for driving and enable to predict the movement of pedestrians, vehicles, etc. This information is the exclusive property of DENSO CO
Slide 21: Revenue target in Security & Safety for FY2021
Revenue target in Security & Safety for FY2021 18 / 21 Information & safty Serve as Revenue ADAS DENSO’s １trillion yen profit raito Revenue engine 200 billion yen 700billion yen 150billion yen 100 billion yen 50 billion yen FY16 FY21 FY16 FY17 FY19 FY21 For 2021, Revenue target in Security & Safety
Slide 22: Strategies
Strategies １.Revenue/profit target for FY2021 ２.Growth strategy in Security & Safety ３.Financial and capital strategie This information is the exclusive property of DENSO CORPORATION. Without their consent, it may not be reproduced or given to third parties.
Slide 23: Financial and capital strategies: How to spend the cash
Financial and capital strategie 19 / 21 How to spend the cash Cash flow from operation Return to Shareholders about 300 billion yen ・ M&A about 1 trillion R&D about 400 billion yen yen Capital about 300 billion yen investment the source How to use Allot the cash to investment for growth and return t
Slide 24: Capital investment・R&D
Capital investment・R&D 20 / 21 Capital investment R&D (Unit: Billion of Yen) (Unit: Billion of Yen) （%） 4,500 450 4,500 450 12.0 R&D Expenditures 研究開発費 売上収益比 Revenue ratio 4,000 400 400 4,000 11.0 3,500 350 350 3,500 10.0 300 3,000 300 3,000 9.0 250 2,500 250 2,500 8.0 2,000 200 200 200 2,000 7.0 FY
Slide 25: Return to Shareholders
Return to Shareholders 21 / 21 １．Improve the dividend level stably on an ongoing basis by comprehensively taking into account the consolidated operating results, the payout ratio and the amount of dividends. ２．The flexible acquisition of treasury stock while paying attention to the status of funds a
Slide 26: © DENSO CORPORATION All rights reserved.
2009. 6. 25 © DENSO CORPORATION All rights reserved. This information is the exclusive property of DENSO CORPORATION. Without their consent, it may not be reproduced or given to third parties.
Slide 27: Appendix
Appendix ・ Non-Consolidated Financial Results ・ Pre-Conditions (Foreign Exchange Rate/Car Production) ・ Consolidated Revenue by Customer ・ Consolidated Revenue by Product ・ Trend of Capital Expenditures, Depreciation and R&D Expenditures ・ Capital Expenditures, Depreciation, and R&D Expenditures Thi
Slide 28: Non-Consolidated Financial Results
Non-Consolidated Financial Results 22 Income Statements(Japanese accounting standards) (Ratio to Sales) (Unit: Billions of Yen,%) Change Account FY17 FY2017 2Q FY2016 FY16 2Q Amount ％ Net Sales ( 100.0 ) 1,190.0 ( 100.0 ) 1,175.3 14.7 1.3 Operating Incom e ( 1.4 ) 17.2 ( 5.9 ) 68.9 -51.7 -75.1 Incom
Slide 29: Pre-Conditions (Foreign Exchange Rate/Car Production)
Pre-Conditions (Foreign Exchange Rate/Car Production) 23 FY2017 Full Year FY2017 First-Half FY2017 Second-Half Forecas t Forecast Forecas t Forecast Forecas t Forecas t Forecast Forecas t Prior Year as of Ｊｕｌ.29 Actual Change Prior Year as of Ｊｕｌ.29 Change Prior Year Change (Original) (Original) (Re
Slide 30: Consolidated Revenue (By Customer)
Consolidated Revenue (By Customer) 24 (Unit: Billions of Yen, %) FY 2 0 1 7 FY 2 0 1 6 C h an g e e x c lu de s C h an g e En de d S e p. 3 0 , 2 0 1 6 En de d S e p. 3 0 , 2 0 1 5 FX dif f e re n c e Am o u n t % to T o tal Am o u n t % to T o tal Am o u n t % % Toyota 932.5 42.8 930.1 41.7 2.3 0.3
Slide 31: Consolidated Revenue (By Product)
Consolidated Revenue (By Product) 25 (Unit: Billions of Yen,%) FY2 0 1 7 FY2 0 1 6 Ch an ge e xc lu de s Ch an ge En de d Se p. 3 0 , 2 0 1 6 En de d Se p. 3 0 , 2 0 1 5 FX diff e re n c e Amo u n t % t o T o t al Amo u n t % t o T o t al Amo u n t % % Powertrain Control 774.0 35.5 798.1 35.8 -24.1
Slide 32: Trend of Capital Expenditures, Depreciation and R&D Expenditures
Trend of Capital Expenditures, Depreciation and R&D Expenditures 26 [Bil.Yen] < > Ratio to FY17F （ ） Ratio to Revenue 500 （9.2%） （8.8%）（9.5%） ↑ 2nd-half （9.0%） 396.4 399.3 415.0 400 354.2 334.1 343.0 ↓ 1st-half 368.7 324.1 300 236.8 243.0 203.1 220.1 <48.0%> 200 <48.5%> ＜47.9％＞ 100 194.0 200.1 199.4
Slide 33: Capital Expenditures, Depreciation and R&D Expenditures
Capital Expenditures, Depreciation and R&D Expenditures 27 (Unit: Billions of Yen) 2Q YTD Progress FY17 FY16 Change to FY17 ２Q ２Q Forecast from PY Forecast Japan 93.0 191.0 103.9 210.5 11.7% 49.4% North America 23.3 45.6 29.0 62.5 24.5% 46.4% Europe 13.0 30.9 10.9 24.0 -16.2% 45.4% Asia 33.3 64.9 21