Denso Corporation · TSE:6902
Denso — Q3 FY2019 Earnings Presentation
19 slides from Denso's earnings presentation, Feb 1, 2019
Slide 1: FY2019 3rd Quarter Financial Results
DENSO Crafting the Core FY2019 3rd Quarter Financial Results (2018/4-12) Feb. 1, 2019 DENSO CORPORATI
Slide 2: Overview of FY2019 3rd Quarter Financial Results
Overview of FY2019 3rd Quarter Financial Results 1. Despite market slowdown in Europe and China, revenue increased in all regions due to the increase in global car production and sales expansion as well as the subsidiaries DENSO TEN which was consolidated in Nov. 2017. Operating profit decreased due
Slide 3: Overview of the Consolidated Financial Results
[Overview of the Consolidated Financial Results] 1. Consolidated revenue totaled 3,979.7 billion yen, increased by 280.6 billion yen (+7.6%) from the previous year. 2. Consolidated operating profit totaled 243.5 billion yen, decreased by 71.1 billion yen (-22.6%) from the previous year. 3. Consolida
Slide 4: Sales by Customer (Quantity Base)
[Sales by Customer (Quantity Base)] Sales to Toyota Group Sales to the Toyota Group increased by 13.1% from the previous year. The reasons are as follows; 1) Impact of DENSO TEN. 2) The car production increased in China. 2) Vehicle equipped with safety-related products has been increased in Japan. S
Slide 5: Sales by Product (Quantity Base)
[Sales by Product (Quantity Base)] Sales of Powertrain Systems Products Sales increased in Asia and Japan due to the production volume increase. Sales of Electrification Systems Products Sales increased due to the production volume increase in power control units for Toyota. Sales of Mobility System
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. Expense : -30.0 billion yen / Depreciation: -16.0 billion yen was due to the increase of investment for future growth area. 2. Labor cost : -15.0 billion yen was due to salary increase and bonus mainly in Ja
Slide 7: Revenue and Operating Profit by Each Region
[Revenue and Operating Profit by Each Region*] *Excluding the effect of foreign exchange In Japan 1. The revenue increased by 8.1% from the previous year due to an increase in vehicles equipped with safety-related products, as well as the impact from the newly consolidated subsidiaries, DENSO TEN .
Slide 8: Full year Financial Forecast
[Full year Financial Forecast] Considering environmental factors such as market trend and the increase in raw material cost, 1. We expect revenue of 5,370.0 billion yen. 2. We expect operating profit to be 380.0 billion yen. 3. We used 110 yen to the U.S. dollar and 130 yen to the euro for the 2nd h
Slide 9: Factors in Full-Year Forecasts for Operating Profit
[Factors that Contributed to Increases or Decreases in Full- Year Forecasts for Operating Profit] Negative factors -107.0 billion yen is due to the increase in Expense, Depreciation and Labor cost for investment in future growth as well as the impact of Raw material cost increase and Currency exchan
Slide 10: DENSO
DENSO Crafting the Core
Slide 11: Appendix
Appendix + Change in FY2019 9months Operating Profit + Change in FY2019 Operating Profit + Pre-Conditions (Foreign Exchange Rate/Car Production) + Consolidated Revenue by Customer + Consolidated Revenue by Product + Qmonths Geographical Segments by Company Location + Trend of Capital Expenditures, D
Slide 12: Change in FY2019 9months Operating Profit
Change in FY2019 9months Operating Profi Operating profit 9) Tt N ° a Variable cost reduction + o . tg Production volume ™ increase + st Other @ income/expenses t (Unit: Billion of Yen) t+ % others t (Product Mix etc.) Ln | WN Currency exchange loss t ° . o Raw material cost 1 Labor cost Operating p
Slide 13: Change in FY2019 Operating Profit
Change in FY2019 Operating Profi (Unit: Billion of Yen) Operating profit 18/4-19/3 Variable cost reduction +40.0 + increase \© Other income/expenses a | w Others ' (Product Mix etc.) Raw material cost Currency exchange loss 17/4-18/3 DENSO Crafting the Core 11 [
Slide 14: Pre-Conditions (Foreign Exchange Rate/Car Production)
Pre-Conditions (Foreign Exchange Rate/Car Production) FY2019 First-Halt FY2019 Second-Holf Fv2019 Full Year 3Q 4Q voor eve | cxspe porvead fore. | Foreect | change brior vead remae | Forcast | change pice vear] Actual | change prior Year Actual | change Joror Year SEV | change Prior Yea] a Zits | SS
Slide 15: Consolidated Revenue (By Customer)
Consolidated Revenue (By Customer) (Unit: Billions of Yen) * Sales of industrial systems and consumer products, Seles ‘Change 18/4-12 17/4-12 Change re difference,etc. Amount % to Tota) Amount |% to Total Amount % Toyota 1,677.8, 42.1) 1,525.5| 41.2) 152.3 12.9 Daihatsu 93.8 2.4] 82.2 2.2 117 17.6 H
Slide 16: Consolidated Revenue (By Product)
Consolidated Revenue (By Product) (Unit: Billions of Yen,%) Change 18/4-12 17/4-12 Change an difference Amount | %toTotal| Amount | %toTotal| Amount | _% % Thermal Systems 1,055.2 26.5 1,066.0 28.8) -10.8) 1.0 1.0 Powertrain Systems 957.0| 24.0 929.8) 25.1 27.2| 2.9 3.7 Electrification Systems| 598.
Slide 17: 9months Geographical Segments by Company Location
9months Geographical Segments by Company Location Revenue Operating (Unit: Billions of Yen) Profit [ ]: Ratio to Revenue 3,000 , +8-1% 17/412 -39.3% 17/4-12 2,412.0 igo {161.1 18/4-12 2,500 -2,231.7 wigi2 te 17-2%] 2,000 140 +1.6% , 126 97.8 100.6107 +11.3% [4.1%] %) 1,500 +7.6% 1084.4 100 [10.3%] 9
Slide 18: Trend of Capital Expenditures, Depreciation and R&D Expenditures
Trend of Capital Expenditures, Depreciation and R&D Expenditures < >RatiotoFY19F —_—-)- Ratio to Revenue (Bil. Yen] (9.29%) (8.8%) (9.0%) (8.8%) (9, 306) 500.0) 500 447.4 | 119/1-3 409.2 347.2 400.0 306.4 399.3 | 400 |354.2 | 418 /4-12 <73.7%> 334.1 337-4 <76.2%> 268.6 295.0 300 : 236.8 241.1 220-4
Slide 19: Capital Expenditures, Depreciation and R&D Expenditures
Capital Expenditures, Depreciation and R&D Expenditures (Unit: Billions of Yen) Progress 18/3 19/3F Change (%) to 19/3 17/12 18/12 Forecast Japan 156.8} 217.7] 186.1 240.0 18.7% 775%) North America 26.8 43.8) 46.1 62.5] 72.0% 73.8% Europe 21.0) 30.8} 18.5] 32.0 -11.9% 57.8%) Asia 38.3) 52.7] 51.7 63