Denso Corporation · TSE:6902

Denso — Q1 FY2006 Earnings Presentation

24 slides from Denso's earnings presentation, Jul 27, 2006

  1. Slide 1: FY2006 1st Quarter Financial Results ended June 30, 2006

    FY2006 1st Quarter Financial Resultsẅ ended June 30, 2006 July 27th, 2006 This information is exclusive property of DENSO corporation. Without their consent, it shall not be reprinted or given to third parties.

  2. Slide 2: Overview of FY2006 1st Quarter Financial Results

    ‣ Overview of FY2006 1st Quarter Financial Results 1. 1. Hit Hit aa Sales Sales record record high high with with 13.6% 13.6% increase increase 2. 2. Hit Hit record record high high Operating Operating Income Income with with 16.0% 16.0% increase increase 3. 3. Keep Keep original original forecast f

  3. Slide 3: 1st Quarter Financial Results

    2 1st Quarter Financial Resultsẅ (Unit:Billions of Yen) 06/6 06/6 05/6 05/6 Increase Increase Increase(%) Increase(%) Sales Sales 856.2 856.2 753.4 753.4 +102.8 +102.8 +13.6% +13.6% Operating⅙ Operating⅙ 82.5 82.5 71.2 71.2 +11.4 +11.4 +16.0% +16.0% Income Income Income Income before before 89.9 89.

  4. Slide 4: Geographical Segments by Company Location

    3 Geographical Segments by Company Location * The growth rates are indicated in local currency. ≎11.6≉ The growth rates in parentheses include the reflection of exchange. ᵓᵗᵕᵌᵐ ≎9.3≉ (Unit:Billions of Yen) Sales ᵓᵑᵌᵔ ᵓᵖᵌᵔ Operating Income ᵓᵑᵓᵌᵐ 500 ≎16.4≉ 50 ≋≎26.1≉≌ ᵏᵎᵌᵗ ≐4.0% ≎10.1≉ ≋ ≎5.7≉ ≌ ≋≎18

  5. Slide 5: Change in Consolidated Sales (by Customer /Business Segment)

    Change in Consolidated Sales 4 (by Customer /Business Segment) (Unit:Billions of Yen) ( ):Change from previous period By Customer (+8%) +7.8 By Business Segment (+11%) +7.0 +22.9 +3.1 (+12%) +3.5 (+12%) +11.6 +4.1 (+19%) +8.9 (+14%) +8.1 (+53%) (+14%) +14.3 (+14%) +15.7 (+73%) (+13%) +26.3 +42.1 (+1

  6. Slide 6: Change in Income before Income Taxes (05/6-06/6)

    ‧ Change in Income before Income Taxes (05/6-06/6) (Unit:Billions of Yen) +9.0 89.9 Breakdown Cost Reduction Unit Price (Change from Impact +26.5 previous period) Copper 202% -4.6 Aluminum 143% -3.6 Production -5.8 Volume 06/6 65.8 Platinum, Resin 136% -1.3 Increase Labor Total -9.5 Cost -7.7 Income

  7. Slide 7: Capital Expenditures, Depreciation and R&D

    6 Capital Expenditures, Depreciation and R&D (Unit:Billions of Yen) 06/3 07/3 06/6 Rate change from Progress to 07/3 05/6 06/6 Estimate previous year Estimate Japan 36.9 202.0 40.7 226.5 +10.2% 18.0% The Americas 5.7 31.6 8.9 42.0 +57.4% 21.3% Europe 7.3 23.6 3.7 21.5 -49.7% 17.1% Asia & Oceania 7.1

  8. Slide 8: FY2006 Estimate by Geographical Segments

    7 FY2006 Estimate by Geographical Segments No Change from Estimation at the Beginning of the Term (Unit:Billions of Yen) 06/9 06/9 Est. Est. 05/9 05/9 Change Change 07/3 07/3 Est. Est. 06/3 06/3 Change Change Japan Japan 1,172.0 1,172.0 1,081.2 1,081.2 +8.4% +8.4% 2,431.0 2,431.0 2,289.0 2,289.0 +6.

  9. Slide 9: 2010 Long-term Plan

    ‪ 2010 Long-term Plan This information is exclusive property of DENSO corporation. Without their consent, it shall not be reprinted or given to third parties.

  10. Slide 10: 2010 Long-term Plan

    9 2010 Long-term Plan 1. 1. DENSO DENSO VISION VISION 2015 2015 2. 2. Summary Summary of of Long-term Long-term Plan Plan 3. 3. Primary Primary Tasks Tasks 4. 4. Capital Capital Policyẅ Policyẅ 5. 5. Goal Goal in in 2010 2010 This information is exclusive property of DENSO corporation. Without their

  11. Slide 11: 1. DENSO VISION 2015

    10 1. DENSO VISION 2015 DENSO VISION 2015 ίannounced in April 2004ὸ The Aim of DENSO VISION - Contribute to the creation of an advanced automotive society - Evolve into a truly global corporation Goal Bring “Consideration” and “Fulfillment” to the world Action Principles DENSO Spirit Foresight Credi

  12. Slide 12: 2. Summary of Long-term Plan: Target in 2015

    11 2. Summary of Long-term Plan: Target in 2015 ẅ VISION 2015 Management as Global Excellent Company - Leadership for Development of Automotive Society Bring ẅ DENSO continuously develops the first and best products “Consideration” and contributes to development of society and customers, and “Fulfil

  13. Slide 13: 2. Summary of Long-term Plan: Goal by 2010

    12 2. Summary of Long-term Plan: Goal by 2010 Contributing to the creation of an advanced automotive society Product Development - Develop low-cost and high-functional products for unique market demands - Offer the world-first and market-leading products in systems and components New Business Develo

  14. Slide 14: 2. Summary of Long-term Plan: Goal by 2010

    13 2. Summary of Long-term Plan: Goal by 2010 Evolving into a truly global corporation Business Operations -Implement development and design in each region of the world with input from all employees - Realize stable business against shifting exchange rates through suitable centralization and decentr

  15. Slide 15: 3. Primary Tasks Product Development

    14 ẅ3. Primary Tasks Product Development Promote Development of Innovative Component and System in Four Important fieldsίEnvironmentẆSafetyẆComfortẆConvenienceὸ - Accelerate creation of world-first product with new technique and function - Expansion of “World-Leading Product” > World-first and Marke

  16. Slide 16: 3. Primary Tasks Product Development

    15 3. Primary Tasks Product Development Business group reorganization in January 2006 Integrate ITS Product Division, Body Electronics Product Basic Ideas on Safety Field Division, Driving Safety Product Division as Information & Safety Business Group and strengthen system development Society Connec

  17. Slide 17: 3. Primary Tasks Product Development

    16 ẅ3. Primary Tasks Product Development Connecting to Person ẅ Driver Assistant System Steering Electro- cardiographic Sensor Camera ίElectrocardiographic measurement) Confirmation of Face, Count of Blink Driver Monitoring Cold Air ECU Seat, Side Mirror (Adjust to driver’s position) Air Conditioner

  18. Slide 18: 3. Primary Tasks Product Development

    17 ẅ3. Primary Tasks Product Development Connecting to Society ẅẅSafety System of Harmonized Infrastructure Global Positioning Communication Hot Spot Satellite( GPS ) Network Traffic Control Center Communication between Two Cars Communication between Car and Road This information is exclusive proper

  19. Slide 19: 3. Primary Tasks Business Management - Establishment of Development and Design System

    18 3. Primary Tasks Business Management - Establishment of Development and Design System The number of Engineers in 2010 ίincrease from 2004ὸ China Europe Japan 50 ί+ 40 ) 14,500 800 ( + 2,700 ) ί+150ὸ Beijing, Tianjin, Shanghai Germany DENSO, ASMO, The Americas (MunchenẆAachen) ANDEN, etc. UK Asia

  20. Slide 20: 3. Primary Tasks Group Management - CSR activity

    19 ẅ3. Primary Tasks Group Management - CSR activity ẅίίCSR = Corporate Social Responsibilityὸ ẅ- Achieve growth of DENSO groups through contribution to sustainable development of society ẅ- Practice responsible corporate activities with a good balance of economic (business results), environmental a

  21. Slide 21: 3. Primary Tasks Group Management - CSR activity

    20 ẅ3. Primary Tasks Group Management - CSR activity ẅίίCSR = Corporate Social Responsibilityὸ - Develop and integrate activities of all DENSO groups to promote “Environment Preservation”, “Contribution to Society” and “Respect for Employees” - Spread and establish “Compliance” for CSR to all member

  22. Slide 22: 4. Capital Policy

    21 4. Capital Policy Return to Stockholders Trends of Total Payment for Stockholders 1. Dividends Execute increased dividends by (billion yen) taking consolidated financial results into considerationẅ 㪏㪇 㪎㪇 2. Share buybacks 㪍㪇 Share buybacks in a timely manner under 㪌㪇 Total amount of the considera

  23. Slide 23: 5. Goal by 2010

    22 5. Goal by 2010 < 2005 > <2010> World’s automotive production 65.7 million units 77.0 million units 3%὾year More than 4,000 billion Sales 3,188.3 billion yen 5%὾year yen ᾡᾞᾔ 9.4 ήẅ 10ẅή Japan Overseas Japan Overseas Sales breakdown 47% 48% 53% 52% This information is exclusive property of DENSO c

  24. Slide 24: [Appendix] Sales by Geographical Segments

    23 [Appendix] Sales by Geographical Segments Japan Consolidated elimination: The Americas 2,630 billion yen 2005 600 billion yen 2,290 2010 680 billion yen 780 billion yen - 2% 690 Annual rate 3.0 % ӳྸ҄ Annual rate ẅ2.5 % 05 10 05 10 Automobileẅ10.7 Æ 11.1 million units Automobileẅ18.3 Æ 20.4 millio

DENSO — Q1 FY2006 Earnings Presentation on 6ix