Corporate Profile 2017 Edition as of April 28, 2017
Contents 1. Profile 2. The DENSO Philosophy 3. History of DENSO 4. Organization 5. Business Group 6. Main products : Automotive Fields 7. Main products : Non-Automotive Fields 8. Revenue Growth / Operating Profit Growth 9. Revenue by Business Group 10. Revenue by DENSO Company Location 11. Global Network 12. Domestic bases 2 /15
1. Profile Established Capital Revenue Operating Profit Employees Subsidiaries Affiliates under the Equity Method basis basis basis Nonconsolidated basis December 16, 1949 187.4 billion yen (US$1.7 billion) 4,527.1 billion yen (US$40.4 billion) 330.6 billion yen (US$ 2.9 billion) 154,493 38,914 190 (Domestic 62, Overseas 128) 36 (Domestic 13, Overseas 23) Notes : U.S.dollar amounts have been translated, for convenience only, at the rate of 112.19 yen = US$1, the approximate exchange rate prevailing on March 31, 2017. Billion is used in the American sense of one thousand million. as of March 31, 2017 3 /15
2. The DENSO Philosophy Mission Contributing to a better world by creating value together with a vision for the future. Management Principles Customer satisfaction through quality products and services. Global growth through anticipation of change. Environmental preservation and harmony with society. Corporate vitality and respect for individuality. Individual Spirit To be creative in thought and steady in action. To be cooperative and pioneering. To be trustworthy by improving ourselves. 4 /15
3. History of DENSO 1949 1953 1954 1961 Establishment of Nippondenso Co., Ltd. having been separated from Toyota Motor Co., Ltd. with 15 million yen capital Technical cooperation with Robert Bosch GmbH of Germany Establishment of technical training center Awarded Deming Prize, the most prestigious award for quality control 1991 1995 1996 1997 Opening of DENSO Research Laboratories Establishment of DENSO International Singapore Pte. Ltd. Corporate name changed to DENSO Corporation Adoption of "DENSO VISION 2005" as a long-term management plan 1968 1971 Establishment of IC Research Center Establishment of Nippondenso of Los Angeles, Inc. as the first overseas subsidiary 2002 2003 Achievement of the goal of zero emissions at all 14 operations in Japan Establishment of DENSO (China) Investment Co., Ltd. in China 1972 1973 1977 1984 1985 Establishment of Nippondenso Thailand Co., Ltd., Nippondenso (Australia) Pty. Ltd., and Nippondenso Canada, Inc. Establishment of Nippondenso (Europe) B.V. in the Netherlands Received the first gold medal during WorldSkills Competition Opening of Nukata Testing Center Establishment of Nippondenso America, Inc. 2004 2005 2013 2015 2016 Adoption of DENSO VISION 2015 as a long-term management plan Establishment of first overseas regional training center in Thailand Development of DENSO s Long-term Policy 2020 Development of DENSO s Mid-term Policy 2018 Development of DENSO ECO VISION 2025" 5 /15
4. Organization Audit Global Strategy ADAS (Advanced Driving Assistant System) Business & Technology Development Basis Electronic Technology Board of Directors Information System EDT ( Engineering Digital Transformation ) Promotion Tokyo Office New Business Promotion Chairman Vice Chairman President & CEO Executive Vice Presidents Safety & Environment, Quality Center Corporate Center Engineering Research & Development Center Production Innovation Center Purchasing Group Sales and Marketing Group Safety Health & Environment, Quality Control Corporate Planning, Finance & Accounting, Corporate Communications, Legal, Secretarial, General Admin., Human Resources, Health Care Promotion, External Affairs Technology Planning, Engineering Development Promotion, Intellectual Property, Design, R&D, Smart Motor Revolution, Research Laboratories Innovative Production & Factory Promotion, Production Engineering, Materials Engineering, Measurement & Instrumentation Engineering, Machinery & Tools, Prototype Manufacturing, Parts Engineering, Parts Manufacturing, FA Business, Facility, Strategic Production Planning, Production Control, Logistics Planning, Purchasing Original Equipment Manufacturers Sales, Aftermarket Sales, Global Business Planning, Technical Service as of April 1, 2017 Five Business Groups (Continued on next page) 6 /15
5. Business Group (Continuation of the previous page) Powertrain Systems Business Group Research and development of next generation powertrain system. Development and production of gasoline/diesel engine management system and components such as fuel injection pump, VVT and sensors, drive-train components such as hydraulic control valves Electrification Systems Business Group Research, development and production of electrification system and components for such as EV and hybrid vehicles. Development and production of electric power supply and starting system components such as alternator and starter Electronic Systems Business Group Development and production of semiconductor sensors, microelectronic devices including ICs (integrated circuits), and electronic products including engine control computers Thermal Systems Business Group Development and production of air conditioning systems for cars, comfort systems, powertrain cooling systems and products Information & Safety Systems Business Group Development and production of car navigation systems, ITS (intelligent transport system) products such as electronic toll collection, telematics, driving safety products including sensor computers for airbags, body ECUs (engine control units), and meters as of April 1, 2017 7 /15
6. Main products : Automotive Fields Environment Hybrid and electric vehicle components, Products for fuel cell vehicles, gasoline engine management system, diesel engine management system, starter, alternator, radiator, etc. Comfort & Convenience Car air-conditioning system, air conditioner for buses, air purifier, Car navigation system, electronic toll collection system (ETC), remote security system, remote touch controller, smart key, advanced vehicle operation system(avos),etc. Safety Sensing technologies for driving assist systems, actuator & computer for antilock brake system (ABS) / electronic stability control (ESC), adaptive front-lighting system (AFS), airbag sensors & electronic control units, periphery monitoring system, instrument cluster, rain sensor for automatic windshield wiper, etc. 8 /15
7. Main products : Non-Automotive Fields Consumer and Industrial Products 1Home Appliances 2Heating and Cooling Equipment 3Auto ID Data Capture Devices 4Factory Automation Products 1 2 3 4 New Business Fields 1 2 3 1Micro Grid 2Electric Power Assist 3Security 4Healthcare 5Biotechnology(Micro Algae) 6Agricultural Support 7Cold Chain 4 5 6 8Community Network Solution Business 7 8 9 /15
8. Revenue Growth/Operating Profit Growth [ basis] (billion yen) 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 3580.9 Revenue Growth 4524.5 4309.8 4095.0 4527.1 (billion yen) 400 350 300 250 200 150 100 50 Operating Profit Growth 371.4 331.4 330.6 315.7 262.4 0 2012 2013 2014 2015 2016 (fiscal year) 0 2012 2013 2014 2015 2016 (fiscal year) Notes : Figure of fiscal year 2013, year ended March 31, 2013 and prior are based on Japanese accounting standards. Figures of fiscal year from 2014 to 2017 are based on IFRS. as of March 31, 2017 10 /15
9. Revenue by Business Group 1.4% 1.4% 6.7% 8.3% 10.0% 16.6% 25.6% 30.0% Thermal Systems Powertrain Systems Information and Safety Systems Electrification Systems Electronic Systems Motor Other Automotive FA / New Business Total:4,527.1 billion yen as of March 31, 2017 11 /15
10. Revenue by DENSO Company Location Europe 550.2 billion yen North America 1,050.5 billion yen South America/Others 1.3% Asia 989.5 billion yen Japan 1,871.8 billion yen South America/Others 65.1 billion yen Asia 21.8% Europe 12.2% North America 23.2% Japan 41.4% Total: 4,527.1 billion yen as of March 31, 2017 12 /15
11. Global Network subsidiaries:190 Europe subsidiaries Companies:35 Employees:16,312 Asia subsidiaries Companies:59 Employees:45,125 Japan DENSO CORPORATION Employees:38,914 subsidiaries Companies:62 Employees:28,687 North America subsidiaries Companies:28 Employees:22,325 South America/ Others subsidiaries Companies:6 Employees:3,130 as of March 31, 2017 13 /15
12. Domestic bases Along with the headquarters located in Kariya City, Aichi Pref., production is carried out at nine plants in Japan. Chubu area Daian Plant Ignition components, driving control and safety products, valve train components, exhaust emission control components Zenmyo Plant Nishio Plant Ikeda Plant Radiators, oil coolers, inter coolers Agui Plant Machinery, tools Electronic diesel fuel injection components Air conditioners, radiators, electronic diesel/gasoline fuel injection components Headquarters Research Laboratories Research in semiconductors, functional material, human machine interface, and bio technologies Anjo Plant Starters, alternators, hybrid vehicle components Nukata Proving Ground Test driving automotive components Takatana Plant Manufacture Information and communications products, driving control and safety products, semiconductor device/sensor Kota Plant Toyohashi Plant Integrated circuits, electronic control components Air conditioners, Natural refrigerant (CO 2 ) heat-pump hot water supply systems as of March 31, 2017 14 /15