Denso Corporation · TSE:6902
Denso — Q3 FY2020 Earnings Presentation
18 slides from Denso's earnings presentation, Jan 31, 2020
Slide 1: FY2020 3rd Quarter Financial Results
DENSO Crafting the Core FY2020 3" Quarter Financial Results (2019/4-12) Jan 31, 2020 DENSO CORPORATION
Slide 2: Overview of FY2020 3rd Quarter Financial Results
Overview of FY2020 3" Quarter Financial Results Revenue excluding foreign exchange fluctuations increased due to the sales expansion, despite overall automotive market slowdown. However, foreign exchange fluctuations led to decrease in revenue. Operating profit decreased due to foreign currency loss
Slide 3: Overview of the Consolidated Financial Results
[Overview of the Consolidated Financial Results] 1. Consolidated revenue totaled 3,895.0 billion yen, decreased by 84.6 billion yen (-2.1%) from the previous year. 2. Consolidated operating profit totaled 162.7 billion yen, decreased by 80.9 billion yen (-33.2%) from the previous year. 3. Consolidat
Slide 4: Sales by Customer (Quantity Base)
[Sales by Customer (Quantity Base)] Sales to Toyota Group Sales to the Toyota Group increased by 4.1% 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 Impact of GM strike and slowdown in Asian markets led to decrease in revenue. Sales of Powertrain Systems Products Sales decreased due to a decrease of car production in India and Thailand. Sales of Mobility
Slide 6: Factors that Contributed to Increases or Decreases in Operating Profit
[Factors that Contributed to Increases or Decreases inOperating Profit] Negative factors Expense : -7.0 billion yen / Depreciation: -14.5 billion yen were due to the increase of investment for future growth area and IT investment for improving productivity of employees. Labor cost: -13.0 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 decreased 59.1% year-on-year, despite production volume increase due to increased sales to Toyota and variable cost reduction. Overseas In North America, despite the cost reduction effo
Slide 8: Trends in capital expenditures and R&D expenses
[Trends in capital expenditures and R&D expenses] Capex Capital expenditures amounted to 311.7 billion yen. Full-year forecast is 420.0 billion yen, down 10.0 billion yen from the initial Forecast. According to the market environment, we would like to manage capital investment while keeping an eye o
Slide 9: Full year Financial Forecast
[Full year Financial Forecast] Due to uncertainty of market and currency exchange fluctuations, we have not revised our original forecast. 1. We expect revenue of 5,260.0 billion yen. 2. We expect operating profit to be 280.0 billion yen.
Slide 10: Variance from previous estimation at 2nd quarter
[Variance from previous estimation at 2nd quarter] Others Provision for quality cost in 3Q 42billion yen . Production volume Reflects overall market deterioration in the second half. Currency exchange loss We revised the forecast for currency exchange. Expense Achieved reductions more than planned a
Slide 11: Factors that Contributed to Increases or Decreases in Full-Year Forecasts for Operating Profit
[Factors that Contributed to Increases or Decreases in Full- Year Forecasts for Operating Profit] Profit expected to decrease due to deterioration in foreign exchange rates and the provision of quality provisions in the third quarter. As a result of continuing to accumulate improvement activities, T
Slide 12: DENSO
DENSO Crafting the Core
Slide 13: Appendix
Appendix + 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 Core
Slide 14: Pre-Conditions (Foreign Exchange Rate/Car Production)
Pre-Conditions (Foreign Exchange Rate/Car Production) F¥2020 First Hale 72020 Second Hak Fy2020 Ful Year Q *Q Revised farecaz | Forecast vary | Forecast Pree Year] Actua! | Change fron Year] Actual | Change |rir Year) Syren | Change Prior Year..csmesiv9] (neces) | C'n9€ [Prior Year] =t_| Frese | Cha
Slide 15: Consolidated Revenue (By Customer)
Consolidated Revenue (By Customer) (Unit: Billions of Yen) Change 2018/4-2018/12 2019/4-2019/12 Change Coca difference,etc. Amount | %to Total | Amount | % to Total | Amount | 9% % Toyota 1,677.8 42.2] 1,718.8 “42, 411,24 43 Daihatsu 93.8 2.4 100.0 2.6 61.65 7.0 Hino 49.0 1.2 45.3 12 “3.7, 75 75 Toy
Slide 16: Consolidated Revenue (By Product)
Consolidated Revenue (By Product) (Unit: Billions of Yen,%) Change 18/4-18/12 19/4-19/12 Change excludes FX difference Amount __% to Total Amount %toTotal | Amount % % 1,055.2 998.5 25.7| -56.7, Thermal Systems Sensor & Semiconductor Automotive Total Non-Automotive Dustoee ood 135.6 3.4 130.5 3.3 5.
Slide 17: Geographical Segments by Company Location
Geographical Segments by Company Location Operatin (Unit: Billions of Yen) Revenue 5 9g [ | Ratio to Revenue rofit 3,000 | 40.9% @18/4-12 a 18/4-12 2,432.6 sl . 2,412/0 @19/4-12 id 59.1% 102.2 §19/4-12 2,500 41 97.8 fo] [4.1%] : 100 83.3 2,000 [8.3%] 80 -7.3% 1,500 40.0 -2.1% 1,084.4 co | | [1.6%] 9
Slide 18: Capital Expenditures, Depreciation and R&D Expenditures
Capital Expenditures, Depreciation and R&D Expenditures (Unit: Billions of Yen) Progress 19/3 2ojar | “ange 10 20/3 18/12 19/12 Forecast Dapan 186.1] 258.2) 193.0| 261.5] 3.7%| 73.8% North America 46.1| 60.3 32.5| 60.0 -29.5%| 54.2% Europe 18.5| 25.5) 19.7] 25.0) 6.5%] 78.8% [Asia S17] 69.5] 64.6] 1