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Slide 2: DENSO
DENSO sacra crs anes e ae ao ea
Slide 3: Overview of the consolidated financial results
[Overview of the consolidated financial results] We posted sales of 4,308.8 billion yen, up 212.8 billion yen from the previous year, equivalent to annual revenue growth of 5.2%. Operating income reached 355.1 billion yen, 22.6 billion yen lower than a year ago leading the operating income ratio to
Slide 4: Sales by customer
[Sales by customer] Sales to the Toyota Group The domestic car production level decreased from the previous year, and the increase of sales remained marginal. Sales to non-Toyota Group companies 1)Honda: Sales increased due to the increase in car production mainly in North America and Asia and Ocean
Slide 5: Sales by business segment
[Sales by business segment] Sales of Powertrain Control products Sales increased due to an increase of sales in gasoline direct injection products. Sales of Thermal products Sales increased mainly in North America and Europe due to the production volume increase and sales expansion of car air condit
Slide 6: Factors that contributed to increases or decreases in operating income
[Factors that contributed to increases or decreases in operating income] Negative factors 1) Higher labor cost: An increase of 33.0 billion yen was mainly due to an increase in salaries in emerging countries and also due to strengthen R&D networks. 2) Higher depreciation cost: An increase of 27.7 bi
Slide 7: Sales and operating income by operating region
[Sales and operating income by operating region] * Based on Japanese yen 7
Slide 8: Sales and operating income by operating region
[Sales and operating income by operating region] * Based on local currency, excluding the effect of foreign exchange rates Japan • Sales decreased by 2.0% from the previous year due to the shift towards compact cars, as well as the decrease of export sales. • Operating income diminished by 20.5% fro
Slide 9: Forecasts for consolidated full-year financial forecasts
[Forecasts for consolidated full-year financial forecasts] * Based on International Financial Reporting Standards(IFRS) We expect Sales to be 4,470.0 billion yen and operating income to be 380.0 billion yen. This forecast is based on the currency rate of 115 yen to the dollar and 125 yen to the euro
Slide 10: Factors that contributed to increases or decreases in full-year forecasts for Operating Income
[Factors that contributed to increases or decreases in full-year forecasts for Operating Income] *Following factors based on Japanese accounting standard with IFRS impact. While negative factors, such as depreciation, labor cost and raw material cost, operating income increase by 18.9 billion yen to
Slide 11: Sales and operating income by operating region
[Sales and operating income by operating region] * Based on Japanese yen 11
Slide 12: Sales and operating income by operating region
[Sales and operating income by operating region] * Based on local currency, excluding the effect of foreign exchange rates We expect sales and profit decrease in Japan and increase in other regions. 12
Slide 13: Capital Expenditures, Depreciation and R&D Expenditures
[Capital Expenditures, Depreciation and R&D Expenditures] Capital Expenditures • Capital expenditure reached 356.1 billion yen, up 32.0 billion yen from the previous year. • We expect high level of capital expenditure for new products globally and it will be 335.0 billion yen in the next fiscal year
Slide 14: Policy of shareholders return
Policy of shareholders return DENSO 1DLNSO CORPORATION At igh eer
Slide 15: Dividend
[Dividend] Annual dividend per share is 110 yen, increase by 5 yen from the previous year. For next fiscal year, we expects dividend to be 120 yen , increase by 10 yen from the previous year. For enhancing capital efficiency and further profit return to our shareholders, we announced acquisition of
Slide 16: DENSO
DENSO ©DENSO CORPORATION All rights reserved 16
Slide 17: Long-term Policy 2020 and Mid-term Policy 2015 focus
We have focused on the environment, security and safety in all aspects of our business based on the Long-term Policy 2020. To achieve the goal of the Long-term Policy 2020, we have worked on developing advanced technologies, developing aftermarket and new business, and innovating in monozukuri based
Slide 18: Three priority businesses in our goal for 2018
We have three priority businesses in our goal for2018. The first is, “environment, security and safety.” The second is “aftermarket and new business.” In general, our business tends to focus on the needs of automakers. Through the “aftermarket and new business,” we will create a culture in which we
Slide 19: Environment
<Environment> To protect the global environment, we will create system products to help reduce CO2 emissions. To achieve “ultimate efficiency,” we will develop combustion and exhaust gas technologies to improve ICE efficiency. While promoting CO2-emissions-free electrification, we will also improve
Slide 20: Improvement of ICE efficiency and promotion of electrification
①Improvement of ICE efficiency and promotion of electrification We have proposed powertrain products that meet automakers’ needs, while reducing the size and weight of these products. We will continue to offer gasoline direct injection systems and diesel systems that ensure stable combustion at ever
Slide 21: Improvement of actual fuel economy
②Improvement of actual fuel economy In general, actual fuel economy is lower than catalog fuel economy. Depending on the situation, the gap is considered to be 40 percent. By 2025, we will reduce the gap by half by dealing with contributing factors such as air conditioning and cold start. Concerning
Slide 22: Security & Safety
<Security & Safety> With the expansion of motorization, the number of vehicles has increased primarily in emerging countries, but this has been accompanied by an increase in the number of traffic accidents. DENSO started to develop safety products in the 1990s. We will step up efforts to help create
Slide 23: Safe driving support
①Safe driving support More than 1.2 million people are killed in traffic accidents annually around the world. Against this backdrop, a New Car Assessment Program (NCAP) will be introduced and enhanced as a vehicle safety assessment standard in major markets. DENSO will accelerate mass production of
Slide 24: Advanced Driving Assistant System
②Advanced Driving Assistant System DENSO has been conducting field tests on a highway. We will accelerate our efforts to achieve the system, including field tests outside Japan, in cooperation with companies in various fields, as well as public authorities. 24
Slide 25: Creation of a comfortable cabin
③Creation of a comfortable cabin It is essential to increase driver comfort to help enhance the security and safety of vehicles. We will develop system products that help drivers concentrate on driving by using cold air and scents, that will ensure both comfort and visibility, and achieve intuitive
Slide 26: Basic study of human beings
④Basic study of human beings DENSO Research Laboratories have been pursuing this study. The objective is to increase driver comfort and ensure security and safety by simulating various situations that the driver is likely to face. The study will be conducted from the viewpoints of medical science an
Slide 27: Aftermarket and new business
<Aftermarket and new business> In January 2015, our fifth business group was established to integrate sales and business into a single group, thereby enhancing the organization of our development and sales. We will expand our business in respective fields from the viewpoint of social needs and end u
Slide 28: Service business
①Service business We will establish a cycle from vehicle diagnosis and repair to preventive maintenance. A cloud service will be used to quickly respond to customers’ needs. We will provide users with reliable and convenient services in respective regions. 28
Slide 29: New business
②New business We have launched business in six fields, including microgrids, security, and agriculture support systems. We will produce substantial results from a small start, and continuously expand the business. During this fiscal year, we will promote field tests in the traffic infrastructure fie
Slide 30: World market
<World market> Customers’ needs vary in respective countries and regions. Advanced development themes must be set from a long-term perspective in anticipation of regulations, market trends, and our competitors’ situations. DENSO opened the Shanghai Technical Center last July, and established a syste
Slide 31: Global production system and cost competitiveness
Price is an important factor from the viewpoint of meeting customers’ needs. In this regard, we have made preparations to establish a global production system and increase our cost competitiveness. We are now ready to globally launch the DANTOTSU factory activities that have, up to now, been promote
Slide 32: Appendix
Appendix 31 - Ath Quarter(3months) Geographical Segments by Company Location * Non-Consolidated Financial Results * Pre-Conditions (Foreign Exchange Rate/Car Production) * Consolidated Sales by Customer * Consolidated Sales by Business Segment * Capital Expenditures, Depreciation, and R&D DENSO 32
Slide 33: 4th Quarter (3 months) Geographical Segments by Company Location
4th Quarter(3months) Geographical Segments by Company Location 3, (Unit: Billions of Yen) [ ]: Ratio to Sales 697.6 691.1 700 Sales 65 $2 606 Operating 8] Income 600 55 500 45 400 35 300 25 +313.7% 200 12.4 -3.5%) 100 5 nN Ke 0.4 FY14 FY15 FY14 FY15 4a 42 North Asia & 4a 40 North Asia & Japan americ
Slide 34: 4th Quarter (3 months) Geographical Segments by Company Location (Local Currency Base)
Ath Quarter(3months) Geographical Segments by Company Location (Local Currency Base) 33] (Unit: Billions of Yen) [ ]: Ratio to Sales yoo 897-6 691.1 Sales sslaseos Operating 88s) [Income 600 55 500 45 400 35 300 25 200 100 5 Res 0.4 FY14 FY15 FY SEVIS 4a 42 North Asia & 4a 40 North Asia & Japan amer
Slide 35: Non-Consolidated Financial Results
Non-Consolidated Financial Results Income Statements (Ratio to Sales) (Unit:Billions of Yen,%) Change FY2015 Change from FY14 Account FY2014 FY2013 Anuar Foecceay Ase | Patan Net Sales. ¢ 100.0 ) 249087 ( 1000 ) 22768 2140) ¢ 100.0) 2,323.0 167.8} 6.7) Cost of Sales ¢ 847 ) 211020 ( 881 ) 20061 104.
Slide 36: Pre-Conditions: Foreign Exchange Rate and Car Production
FY2014 Full Year FY2015 Full Year FY2014 First-Half FY2014 Second-Half Prior Year} Actual ‘Change | Prior Year} Actual | Change | Prior Year| Actual | Change | Forecast| Change Foreign Exchange usD 99 103 +4 102 117 +15 100 110 +10 115, +5 Rate (Yen) EUR 130 139 +9 139 139 -0 134 139 +4 125 -14 Fore
Slide 37: Sales by Customer
(Unit: Billion of Yen) Sales by Customer FY2015 FY2014 Ended Mar. 31, 2015 Ended Mar. 31, 2014 Amount % to Total Amount % to Total Amount Toyota 1846.5 1.8286 6 Daihatsu 105.6 1143 28 Hino 35.0 32.8 13 Toyota Group 2,007.1 1,995.8 48.7 Honda 316 285.4 7.0 HyundaiK ia 140.7 114.2 28 GM 129.9 118.4 29
Slide 38: Sales by Business Segment
(Unit: Billion of Yen) FY2015 FY2014 Change Ended Mar. 31, 2015 Ended Mar. 31, 2014 Amount ‘% to Total Amount % to Total Amount % Powertrain Control 1,529.0) 35.5) 1,433.4) 35.0 95.6 6.7 Thermal 1,229.5 28.5] 1,140.9) 27.8) 88.6 78 Information & Safety Systems 626.6 14.5] 628.6 15.3 73.5) 0.3 Electr
Slide 39: Capital Expenditures, Depreciation and R&D
| Capital Expenditures, Depreciation and R&D 38) (Unit: Billion of Yen) FY2014 FY2015 ae e | ryzo16r | Change ercent Percent Japan 156.0 189.1] 21.2% 183.0] -3.2% North America 43.3] 48.5] 12.0% 45.0[ -7.2% Europe 27.9) 30.2 8.2% 28.0] -7.3% Asia & Oceania 88.6) 83.8) -5.4% 76.0] -9.3% Others 83 44]