Slide 1: DENSO Corporation
DENSO CORPORATION ~
Slide 2: Overview of FY2016 3 Quarter Financial Results
Overview of FY2016 3 Quarter Financial Results =r 1. Revenue increased due to overseas production volume increase and the growth in sales as well as the depreciation of yen. Operating profit increased due to the depreciation of yen and cost reduction efforts. 2. Downward revision to the full-year fo
Slide 3: Overview of the consolidated financial results
[Overview of the consolidated financial results] We posted revenue of 3,370.9 billion yen, up 209.2 billion yen from the previous year, equivalent to annual revenue growth of 6.6%. Operating profit (excludes other income/ expenses) reached 271.1 billion yen, 13.1 billion yen higher than a year, up 5
Slide 4: Sales by customer
[Sales by customer] Sales to the Toyota Group Domestic car production level decreased mainly due to compact cars. However, total sales increased boosted by the steady production in North America and China. Sales to non-Toyota Group companies 1)Honda: Sales increased due to the increase in car produc
Slide 5: Sales by business segment
[Sales by business segment] Sales of Powertrain Control products Sales increased due to production volume increase in North America and Europe on the top of sales expansion in gasoline direct injection products. Sales of Thermal products Sales increased mainly in Europe due to the production volume
Slide 6: Factors that contributed to increases or decreases in operating profit
[Factors that contributed to increases or decreases in operating profit] Negative factors 1) Higher expense: An increase of 12.5 billion yen was mainly due to an increase in R&D expenses for future growth. 2) Higher depreciation cost: An increase of 12.5 billion yen was due to an increase in investm
Slide 7: Revenue and operating profit by operating region
[Revenue and operating profit by operating region] * Based on Japanese yen
Slide 8: Revenue and operating profit by operating region
[Revenue and operating profit by operating region] * Excluding the effect of foreign exchange rates and other income / expenses. Japan • Revenue decreased by 0.3% from the previous year due to reduction of production mainly in compact cars. • Operating profit diminished by 8.0% from the previous yea
Slide 9: Forecasts for consolidated full-year financial forecasts
[Forecasts for consolidated full-year financial forecasts] Considering the change in foreign exchange rate, we have decided to revise the original forecasts for the full-year financial results. This forecast is based on the currency rate of 120 yen to the dollar and 132 yen to the euro. We expect re
Slide 10: DENSO
DENSO
Slide 11: Appendix
Appendix + Change in FY2016 Operating Profit «Change in FY2016 Geographical Segments by Company Location Forecast + 34 Quarter(3months) Geographical Segments by Company Location * Non-Consolidated Financial Results « Pre-Conditions (Foreign Exchange Rate/Car Production) * Consolidated Revenue by Cus
Slide 12: Change in FY2016 Operating Profit
Change in FY2016 Operating Profit | Other incom / expenses -28.0 332.0 FY16 Excludes other ° So © Operating profit income/expenses) (Unit: Billion of Yen) } Currency exchange increase Raw material cost +5.0 +17.0 Production volume increase +21.0 Te) a Variable cost reduction + 7 (Excludes other pera
Slide 13: Change in FY2016 Geographical Segments by Company Location Forecast
Change in FY2016 Geographical Segments by Company Location Forecast 10} J (Unit: Billions of Yen) Revenue Operating ; |. Ratio to Revenue Deas 196.9 Profit “2,650.0 200 07 “a mu -0.5% 6.7%] 2,400 -9.6% 150 il +14.9% 1,200 250) 100 80.9 ini +19.0% (7.7%) 800 all 9 5{4381-4.9% 50 Pe —- % il 16.9169 20
Slide 14: Change in FY2016 Geographical Segments by Company Location
Change in FY2016 Geographical Segments by Company Location Forecast (Local Currency Base,excludes other income/expenses) 11 Revenue 2,664.5 2,600 2,650.0 -0.5% 2,400 +6.8% 1,121.2 1,049.7; FY1S FY16F North Japan America Europe Asia Others. DENSO 200 150 100 50 i (Unit: Billions of Yen) Operating ; |
Slide 15: 3rd Quarter (3 months) Geographical Segments by Company Location
3" Quarter(3months) Geographical Segments by Company Location HW Revenue 679.4.684.6 i +0.7% 600 450 +11.3% +8.6% 307.5 271.1 276.4 249.5 +5.7% 145.2 137.4 —-28.2% 191437 oo FY15 FY16 a North Japan America Europe Asia Others DENSO 50 40 30 20 (Unit: Billions of Yen) ]: Ratio to Sales Operating' 55,
Slide 16: 3rd Quarter (3 months) Geographical Segments by Company Location
Revenue 700 679.7, 684.6 650 +0.7% 600 550 +11.6% 350 +4.7% 308.5 300 ory 276.4 249.5 250 200 +14.2% 157.0 150 137.4 100 -1.7% i 19.1 188 ° pun) FY15 FY16 a North Japan America Europe Asia Others DENSO 50 0 (Unit: Billions of Yen) []: Ratio to Sales 619 60 Operating (9.18) (sq) Income -2.8% +42.9% 3
Slide 17: Non-Consolidated Financial Results
Non-Consolidated Financial Results 14) Income Statements(Japanese accounting standards) (Ratio to Sales) (Unit: Billions of Yen,%) Change Account FY2016 30 FY2015 30 Amount __| Percent Net Sales (100.0 ) 1,802.0] ( 1000 ) 1,804.2 -2.2 -0.1 Operating Income ( 6.0 ) 1088]( 68 ) 123.5 -14.7] -11.9 Inco
Slide 18: Pre-Conditions (Foreign Exchange Rate/Car Production)
FY2006 First Hatt FY20%6 Full Year PProrvear| Acsai | change Forecaat Rowse Foreign Exchange 103] 122] + 188 120 Rate (Yes) i ed 132 sora ot Yen) 07] Car Production of Japanese 40) 432] -o% 290] 313] + om (otions ef Ur) ors] o2r] ots 18.56 DENSO
Slide 19: Consolidated Revenue by Customer
(Unit: Billions of Yen) FY2016 30 FY2015 30 Change Amount _|% to Total] Amount _|§ to Total| Amount s Toyota 1,420.0 | 42.1 1,365.6 | 432 544 40 Daihatsu 645 19 74 24 =126 =16.3 Hino 39.0 12 408 13 18 -44 Toyota Group 1,523.5 45.2 1,483.5 46.9 40.0 27 Honda 268.1 80 229.5 73 38.7 16.9 FCA 167.0 50 1
Slide 20: Consolidated Revenue by Product
(Unit: Billions of Yen) FY2016 3 FY2015 3 Change Amount Sto Total Amount & to Total Amount s Powertrain Control 1,204.4) 35.7] 1.1165) 353} 879 79 “Thermal —968.1| 28.1] 9078 28.7 603 66 Information & Safety Systems 503.1 149 455.7 144) 414 104 Electronic 279.7 33 281.1 EX) -14 -05 ‘Small Motors 232
Slide 21: Trend of Capital Expenditures, Depreciation and R&D Expenditures
Trend of Capital Expenditures, Depreciation and R&D Expenditures 48 (Unit:Billions of Yen) [%] 40 weap 04 9-15 7 apa1 3642 3350 Mu ] 8.9% -10 -@- Ratio to Revenue 200 <> Ratio to FYI6F 5 4Q 100 1] t Bib 0 HM FY14 FY15 FY16F FY14 FY15 FY16F FY14 FY15 FY16F CAPEX Depreciation R&D DENSO MNO CORPORATION
Slide 22: Capital Expenditures, Depreciation and R&D Expenditures
Capital Expenditures, Depreciation and R&D Expenditures 19} DENSO (Unit: Billions of Yen) FY16 | 32 YTD | Progress FY15 Change | toFY16 3 3Q_ [Forecast] from py | Forecast Japan 131.4) 189.0] 135.3) 183.0) 3.0%] 73.9% North America 35.9) 48.5) 32.6 45.0] -9.2%| 72.4% Europe 21.5] 29.2 20.9) 28.0) -2