Slide 1: FY2018 Financial Results ended March 31, 2018
FY2018 Financial Results ended March 31, 2018 Ⅰ. Closing results Ⅱ. Strategies Apr. 27, 2018 DENSO CORPORATION
Slide 2: Overview of FY2018 Financial Results
Overview of FY2018 Financial Results 1. Revenue increased due to an increase in vehicle production, as well as sales expansion. Operating profit also saw an increase due to the production volume increase and company cost reduction efforts. 2. For the new fiscal year, revenue will increase due to the
Slide 3: FY2018 Financial Results
FY2018 Financial Results FY18 FY17 1 Finance income,Finance costs, Foreign exchange gains/loss, Share of the profit of 2 Profit attributable to owners of the parent company associates accounted for using the equity method Powerpoint presentation briefing / J© DENSO COPORATION All Rights Reserved. 2
Slide 4: FY2018 Consolidated Revenue (By Customer)
FY2018 Consolidated Revenue (By Customer） ( ):Change from FY17 [ ]:Change from FY17 excludes FX difference ( ):Change from [ ]:Change from FY17 FY17 excludes FX difference OE Revenue for others (Unit: Billions of Yen) （+11.8%) [＋8.3%] Others （+14.4%) [+14.4%] Volvo (+33.6%) [＋23.4%] Isuzu (+13.4%) [
Slide 5: FY2018 Consolidated Revenue (By Product)
FY2018 Consolidated Revenue ( By Product） ( ):Change from FY17 (Unit: Billions [ ]:Change from FY17 excludes FX difference of Yen) (+12.8%) [+10.5%] FA・New Business (+141.7%) [+141.0%] Other Automotive (+29.9%) [+28.0%] Electronic Systems (+6.5%) [+3.6%] Mobility (+32.1%) [+31.7%] Systems ＊ exlcude
Slide 6: Change in FY2018 Operating Profit
(Unit: Billion of Yen) 412.7 5 /35 Operating profit FY18 406.0 （ Excludes other Operating profit income/expenses) +19.5 Others +34.0 Currency exchange gain +44.0 Variable cost reduction Change in FY2018 Operating Profit +65.0 Powerpoint presentation briefing / J© DENSO COPORATION All Rights Reserved
Slide 7: Geographical Segments by Company Location
Geographical Segments by Company Location Revenue Operating (Unit: Billions of Yen) [ ]: Ratio to Revenue Profit Powerpoint presentation briefing / J© DENSO COPORATION All Rights Reserved. 6 /35
Slide 8: Geographical Segments by Company Location (Local Currency Base)
Geographical Segments by Company Location （Local Currency Base ,excludes other income/expenses) Revenue Operating (Unit: Billions of Yen) Profit [ ]: Ratio to Revenue Powerpoint presentation briefing / J© DENSO COPORATION All Rights Reserved. 7 /35
Slide 9: Trend of Capital Expenditures, Depreciation and R&D Expenditures
Trend of Capital Expenditures, Depreciation and R&D Expenditures （ ）Ratio to Revenue [Bil.Yen] (9.2%)（8.8%） （9.0%） （8.8%） （9.3%） 500 495.0 409.2 447.4 399.3 400 400.0 396.4 354.2 334.1 337.4 347.2 300 295.0 236.8 241.1 268.6 220.1 200 100 0 FY15 FY16 FY17 FY18 FY19F FY15 FY16 FY17 FY18 FY19F FY15 FY
Slide 10: FY2019 Financial Forecast
FY2019 Financial Forecast （Ratio to Revenue) （Unit:Billions of Yen, %) FY19 FY19 FY18 Change Forecast FY18 Revenue 5,320.0 5,108.3 +211.7 +4.1% (※3） Operating Profit ( Excludes other income/ (6.9%) 368.0 (7.9%) 406.0 -38.0 -9.4% expenses） Other income/ expenses 8.0 6.7 +1.3 Operating Profit (7.1%) 3
Slide 11: Change in FY2019 Operating Profit
10 /35 FY19F (Unit: Billion of Yen) 376.0 Operating profit 営業利益 -20.0 Investment for future growth 素材費 396.0 ＋28.0 Production volume increase -39.7 +42.5 Variable cost reduction Powerpoint presentation briefing / J© DENSO COPORATION All Rights Reserved. Change in FY2019 Operating Profit Investment f
Slide 12: Return to Shareholders
Return to Shareholders FY18 Annual Dividend per Share: 130 yen same as the previous financial forecast FY19 Annual Dividend per Share: 130 yen same as FY18 (Yen) Powerpoint presentation briefing / J© DENSO COPORATION All Rights Reserved. 11 /35
Slide 13: Ⅱ. Strategies
Ⅱ. Strategies Powerpoint presentation briefing / J© DENSO COPORATION All Rights Reserved. 12 /35
Slide 14: (1) DENSO Group Long Term Policy 2030
(1) DENSO Group Long Term Policy 2030 Powerpoint presentation briefing / J© DENSO COPORATION All Rights Reserved. 13 /35
Slide 15: (2) Target of Revenue and Profit by FY2026
(2) Target of Revenue and Profit by FY2026 By FY26 Revenue of 7 trillion yen Operating profit ratio of 10% By FY22 Revenue of 5.6 trillion yen （trillion yen） Operating profit ratio of 8% and above （%） 7.0 10.0 Revenue Profit Ratio 6.0 9.0 5.0 8.0 4.0 7.0 3.0 6.0 2.0 5.0 1.0 4.0 0.0 3.0 FY16 FY17 FY1
Slide 16: (3) Strategy for Future Growth
(3) Strategy for Future Growth New Non-Automotive Business customers and Growth and Development value creation Connected Service Promote the value of vehicles Appeal for and drive growth in the new value and services from Integrated platform mobility field. vehicle perspective Pursuit of Earning Cap
Slide 17: (4) Organization Changes for the Strategy
(4) Organization Changes for the Strategy 1. Strengthening overall system perspective ■Optimal proposal to customers with the integrated system ■Integrating the functions of In-Car and Out-Car platform Former Organization Powertrain Systems G Subsystem Electrification Systems G Subsystem Individual
Slide 18: (4) Organization Changes for the Strategy
(4) Organization Changes for the Strategy 1. Strengthening overall system perspective ■Optimal proposal to customers with the integrated system ■Integrating the functions of InCar and OutCar platform New Organization Powertrain Systems G Subsystem Electrification Systems G Subsystem Electronic Platf
Slide 19: (4) Organization Changes for the Strategy
(4) Organization Changes for the Strategy 2. Strengthening competitiveness by integrating key devices ■Developing one and only system by competitive key devices * * ECU, sensor, semiconductor and motor Powertrain Systems G ＥＣＵ Integrating ECU Electrification Systems G ＥＣＵ Thermal Systems G ＥＣＵ Elect
Slide 20: (5) DENSO Group Mid-term Policy 2021
(5) DENSO Group Mid-term Policy 2021 1.Creating new kinds of value (1) Assert leadership in electrification and in automated driving by establishing de facto standards that straddle product sectors in integrated vehicle platforms. (2) Create and propagate business models for spawning new value in mo
Slide 21: (5) DENSO Group Mid-term Policy 2021
(5) DENSO Group Mid-term Policy 2021 3. Transforming Our Business Foundation (1) Honor the spirit of the DENSO Creed in laying a foundation of uncompromising safety and quality that will support peace of mind for customers in traditional sectors and in new sectors, such as intelligent and informatio
Slide 22: (6) Initiatives in Focus Fields of Mobility
(6) Initiatives in Focus Fields of Mobility ⅰ Electrification ⅱ Advanced Safety / Automated Driving ⅲ Connected Cars Powerpoint presentation briefing / J© DENSO COPORATION All Rights Reserved. 21 /35
Slide 23: ⅰ Electrification
ⅰ Electrification - Initiative in Focus Fields - Value Reduction of environmental loading and realization of high efficiency transportation (Economical Driving) 1. Lead of electrification by technology acquired over the years and supply achievement ・ Technological evolution (High-power, SiC etc.) ・
Slide 24: Number of electrification vehicles
1. Electrification – Example - Technology of Market trend & Needs downsizing and high efficiency (1)Rapid expansion of the electrification market 15 million cars by 2025 Cooling Device (2)Acceleration of system with large electric power EV market will be expanding SiC power [Unit: card Thousand vehi
Slide 25: Expanding global manufacturing capacity (in Tennessee)
Expanding global manufacturing capacity (in Tennessee) DENSO MANUFACTURING TENNESSEE, INC. By 2020 ■ Investing $1 billion ■ Creating about 1,000 new production and support jobs Powerpoint presentation briefing / J© DENSO COPORATION All Rights Reserved. 24 /35
Slide 26: ⅱ Advanced Safety and Automated Driving
ⅱ Advanced Safety and Automated Driving - Initiative in Focus Fields - Value Realize a move in a safe and secure manner without traffic accidents 1. Initiative at the system, strengthening of proposal capability ・Advanced Driver Assistance Systems and Automated Driving ・Cockpit system 2. Development
Slide 27: Advanced Safety and automated driving – Example
2. Advanced Safety and automated driving – Example - Denso develops new vision sensor and a millimeter-wave radar sensor that will detect obstacles on the road more precisely. Vision sensor Millimeter-wave radar sensor Stereo vision sensor New standard sensor Improved efficiency of cameras that Impr
Slide 28: Global R&D Tokyo
Global R&D Tokyo 1. Profile of Global R&D Tokyo Opening：April 2018 Location：16th and 17th floors, W Building, 1-8-15 Konan, Minato-ku, Tokyo Employees：Approx. 200 (in April 2018) Functions：R&D on advanced driver assistance, automated driving and connected vehicles 2. Target of Global R&D Tokyo Colla
Slide 29: R&D of automated driving system by open innovation
R&D of automated driving system by open innovation Function Sensors Agile development and demonstration Collecting sensor data under various of competitive logics by collaboration condition by providing standardized vehicle and automated driving systems ＜Collaboration＞ OEM、semiconductor manufacturer
Slide 30: ⅲ Connected Cars
ⅲ Connected Cars - An Example of Efforts - Value Contribute mobility society connected automobiles, human and things. 1. Development of integrated Mobility service (MaaS) system with cloud App ADAS Operational Trouble delivery management forecast • Development of integrated electronic platform OTA •
Slide 31: Connected Cars – Example
3. Connected Cars – Example - Developing advanced vehicle operation system that will realize safety and efficiency for commercial vehicles. DENSO center Internet Customers Recognizing driving condition by speed and acceleration and Sending location regularly and utilize the data for feedback to util
Slide 32: (7) Partnership strategies
(7) Partnership strategies Advanced Safety / Automated Driving Trilumina Sony Semiconductor Global Positioning Morpho Renesas TRI-AD Augmentation Service (Capital alliance) Solutions Corporation (Capital alliance) (Joint research） Corporation (GPAS) (Capital alliance) (Newly established) THINCI (New
Slide 33: (8) Sustainability
(8) Sustainability Sustainability management in DENSO To inspire various stakeholders by creating value in the areas of the environment and safety, and thereby achieve sustainable growth of the company and society Environment Social Governance ・Fuel economy and ・ADAS/AD-related ・Corporate governance
Slide 34: Example (Environment) ECO Vision 2025
Example (Environment) ECO Vision 2025 Powerpoint presentation briefing / J© DENSO COPORATION All Rights Reserved. 33 /35
Slide 35: Example (Social)
Example (Social) Awarded for two years in a row The Company with Health and Productivity -White 500- The Company with Health and Productivity Powerpoint presentation briefing / J© DENSO COPORATION All Rights Reserved. 34 /35
Slide 36: For mobility society full of smiles
For mobility society full of smiles, DENSO will keep providing solutions that will provides people everywhere with something to smile about. Powerpoint presentation briefing / J© DENSO COPORATION All Rights Reserved. 35 /35
Slide 37: DENSO Crafting the Core
DENSO Crafting the Core
Slide 38: Appendix
Appendix ・ Non-Consolidated Financial Results ・ Pre-Conditions (Foreign Exchange Rate/Car Production) ・ Consolidated Revenue by Customer ・ Consolidated Revenue by Product ・ Capital Expenditures, Depreciation and R&D Expenditures Powerpoint presentation briefing / J© DENSO COPORATION All Rights Reser
Slide 39: FY18 Non-Consolidated Financial Results
FY18 Non-Consolidated Financial Results Income Statements(Japanese accounting standards) (Ratio to Sales) (Unit: Billions of Yen,%) Change Account FY18 FY2018 3Q FY17 FY2017 3Q Amount ％ Net Sales ( 100.0 ) 2,671.9 ( 100.0 ) 2,472.8 199.1 8.1 Operating Income ( 4.0 ) 108.2 ( 2.0 ) 49.6 58.6 118.2 Inc
Slide 40: Pre-Conditions (Foreign Exchange Rate/Car Production)
Pre-Conditions (Foreign Exchange Rate/Car Production) FY2018 Full Year FY2019 Full Year FY2018 First-Half FY2018 Second-Half Prior Year Actual Change Prior Year Actual Change Prior Year Actual Change Forecast Change Foreign Exchange USD 105 111 ＋6 111 111 -0 108 111 +3 105 -6 Rate (Yen) EUR 118 126
Slide 41: Consolidated Revenue (By Customer)
Consolidated Revenue (By Customer) (Unit: Billions of Yen) Change FY2018 FY2017 Change excludes Amount % to Total Amount % to Total Amount % % Toyota 2,124.2 41.5 1,926.3 42.5 197.9 10.3 8.2 Daihatsu 116.0 2.3 95.9 2.1 20.1 21.0 20.5 Hino 60.3 1.2 52.8 1.2 7.5 14.3 14.1 Toyota Group 2,300.6 45.0 2,0
Slide 42: Consolidated Revenue (By Product)
Consolidated Revenue (By Product) (Unit: Billions of Yen,%) Change excludes FY2018 FY2017 Change FX difference Amount % to Total Amount % to Total Amount % % Thermal Systems 1,452.2 28.4 1,356.6 30.0 95.5 7.0 3.6 Powertrain Systems 1,260.6 24.7 1,160.6 25.7 100.0 8.6 5.2 Electrification Systems 815.
Slide 43: Consolidated Revenue (By Product) - Previous product category
Consolidated Revenue (By Product) - Previous product category - (Unit: Billions of Yen,%) Change FY2018 FY2017 Change excludes Amount % to Total Amount % to Total Amount % % Thermal Systems 1,452.2 28.4 1,356.6 30.0 95.5 7.0 3.6 Powertrain Systems 1,260.6 24.7 1,160.6 25.7 100.0 8.6 5.2 Information
Slide 44: Capital Expenditures, Depreciation and R&D Expenditures
Capital Expenditures, Depreciation and R&D Expenditures (Unit: Billions of Yen) Change FY19F Change FY17 FY18 Percent Percent Japan 215.7 217.7 0.9% 240.0 10.2% North America 51.8 43.8 -15.4% 62.5 42.7% Europe 23.6 30.8 30.5% 32.0 3.9% Asia 44.1 52.7 19.5% 63.0 19.5% Others 2.2 2.2 0.0% 2.5 13.6% Ca