Denso Corporation · TSE:6902
Denso — H1 FY2020 Earnings Presentation
19 slides from Denso's earnings presentation, Oct 31, 2019
Slide 1: FY2020 1st Half Financial Results
DENSO Crafting the Core FY2020 1° Half Financial Results (2019/4-9) Oct 31, 2019 DENSO CORPORATION
Slide 2: Overview of FY2020 1st Half Financial Results
Overview of FY2020 1° Half Financial Results Revenue not including foreign exchange fluctuations increased due to the production increase in Japan and North America. However foreign exchange fluctuations led to slight decrease in revenue. Operating profit decreased due to an increase in investment f
Slide 3: Overview of the Consolidated Financial Results
[Overview of the Consolidated Financial Results] 1. Consolidated revenue totaled 2,618.4 billion yen, decreased by 6.6 billion yen (-0.2%) from the previous year. 2. Consolidated operating profit totaled 134.0 billion yen, decreased by 18.4 billion yen (-12.0%) from the previous year. 3. Consolidate
Slide 4: Sales by Customer (Quantity Base)
[Sales by Customer (Quantity Base)] Sales to Toyota Group Sales to the Toyota Group increased by 6.7% from the previous year. The reasons are as follows; 1) The car production increased in Japan. 2) Vehicles equipped with safety-related products have been increased. Sales to non-Toyota Group compani
Slide 5: Sales by Product (Quantity Base)
[Sales by Product (Quantity Base)] Sales of Thermal Systems and Powertrain Systems Products Vehicles equipped with compressors have been increased and there was sales expansion of Gasoline related product. However, impact of market slowdown by non-Toyota led to decrease in revenue. Sales of Mobility
Slide 6: Factors that Contributed to Increases or Decreases in Operating Profit
[Factors that Contributed to Increases or Decreases in Operating Profit] Negative factors Expense : -13.0 billion yen / Depreciation: 9.5 billion yen were due to the increase of investment for future growth area and IT investment for improving productivity of employees. Labor cost: -9.0 billion yen
Slide 7: Revenue and Operating Profit by Each Region
[Revenue and Operating Profit by Each Region*] *Excluding the effect of foreign exchange In Japan Operating profit increased 5.9% year-on-year, thanks to a rise in production volume resulting from an increase in sales mainly to Toyota as well as streamlining efforts. Overseas In North America, opera
Slide 8: Trends in capital expenditures and R&D expenses
[Trends in capital expenditures and R&D expenses] Capex Capital expenditures amounted to 204.3 billion yen. Full-year forecast is 430.0 billion yen, down 20.0 billion yen from the initial forecast, reflecting a slowdown in markets, particularly in the Asian region. Since the market is in a slump, we
Slide 9: Full year Financial Forecast
[Full year Financial Forecast] Reflecting the recent market downturn and the strong yen, we revised the full-year forecast. 1. We expect revenue of 5,260.0 billion yen. 2. We expect operating profit to be 320.0 billion yen.
Slide 10: Variance from previous estimation at 1st quarter
[Variance from previous estimation at 1st quarter] Expense, labor cost and depreciation We will reduce fixed costs by streamlining R&D and thoroughly implementing disciplined investments. Combined with increased rationalization, we will achieve a 20.0-billion-yen improvement. Production volume While
Slide 11: Factors in Full-Year Forecasts for Operating Profit
[Factors that Contributed to Increases or Decreases in Full- Year Forecasts for Operating Profit] Despite the deterioration in the operating environment, we would like to maintain the year-on-year increase in operating profit. We will also recover increases in labor costs and depreciation costs thro
Slide 12: DENSO
DENSO Crafting the Core
Slide 13: Appendix
Appendix + Change in FY2020 2nd Half Operating Profit + Pre-Conditions (Foreign Exchange Rate/Car Production) * Consolidated Revenue by Customer * Consolidated Revenue by Product - Geographical Segments by Company Location + Capital Expenditures, Depreciation and R&D Expenditures DENSO Crafting the
Slide 14: Change in FY2020 2nd Half Operating Profit
Change in FY2020 2™ Half Operating Profit (Unit: Billion of Yen) ~ +13.0 -7.0 -18.5 +340 42.0 -5.0 -34.0 +37.7 REIRY 5 p rome) =“ f & §8 gS 23 8 32 28 TRS o 3 iow 3G cz qo = a a o i o 2 o 62 oc o = be o 2 a 5 a2 7a 3 J a yy aa ry Q iy oo om iv] 9 ct, = ° 3 &. 34 Ss 8 * =) a * o 9 > am 2 a cal cd oo
Slide 15: Pre-Conditions (Foreign Exchange Rate/Car Production)
Pre-Conditions (Foreign Exchange Rate/Car Production) FY2020 Full Year FY2020 First-Half FY2020 Second-Half , Forecast Forecast | “®* | Forecast Prior Year| Actual | Change [Prior Year| Change [Prior Year] asof Change nae (Revised) * (Original) | 25,5 | (Revised a Foreign Exchange | USO 110] 109 -2]
Slide 16: Consolidated Revenue (By Customer)
Consolidated Revenue (By Customer) Billions of Yen) Change 2018/4-2018/9 2019/4-2019/9 Change — difference,etc. % to Total % to Total % % Toyota, 1,103.6. 42.0 1,159.7, 44.2. 56.2 5.1 6.8 Daihatsu 59.3 2.3 65.3 25 6.1 10.2 10.9 Hino 323 12 30.4 12 2.0/6.1 6.1 Toyota Group 1,195.2 45.5] 1,255.4 47.9)
Slide 17: Consolidated Revenue (By Product)
Consolidated Revenue (By Product) (Unit: Billions of Yen,%) ‘Change 18/4-18/9 19/4-19/9 Change excludes FX difference Amount = % to Total Amount _% to Total Amount %o % Thermal Systems 709.8 27.0 670.1: 25. 39.7 75.6 22.2 Automotive Total 2,538.0 96.7} 2,530.7 96.6) 7.2 -0.3 1.9 Non-Automotive Busin
Slide 18: Geographical Segments by Company Location
Geographical Segments by Company Location Operating (Unit: Billions of Yen) Revenue Profit [ I Ratio to Revenue _+3.4% 1,800 Ls 1,626.0 = 18/4-9 “ scoot ; w19/4-9 100 5 m19/4-9 | -25.7% 1,400 +5.9% so | 67.8 ae | 56.4 [9.4%] ns 53,3 [3.5%] 1) J 60 +[3.4% are 6% 800 + 660.0 «oo | 40 / -27.6% 15.5 11.
Slide 19: Capital Expenditures, Depreciation and R&D Expenditures
Capital Expenditures, Depreciation and R&D Expenditures (Unit: Billions of Yen) 5 Progress 19/3 roar | TP | to 20/3 18/9 19/9 Forecast japan 116.9] 258.2] 126.8 8.5%] 48.5% North America 32.0| 60.3f 22.2 -30.6%| 37.0% Europe 114] 25.59 13.2] 15.8%| 52.8% Asia 317| 69.5] 40.7 28.4%| 40.7% others 13 3