DENSO Philosophy, Vision, Spirit 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 Preserve the Planet To Automotive Society Decrease energy consumption and C02 emissions, even as automobiles double 2025: -50% To Society Contribute to environmental load reduction through energy efficiency/conversion/storage Security and Safety To Automotive Society Decreasing possibility of fatal traffic accidents to protect lives globally 2025: -50% To Society Contribute to security/safety in automotive-related fields through technologies Protecting lives, preserving the planet, and preparing a bright future for generations to come The DENSO Spirit Value and beliefs inherited through the years and the source of our strength and competitiveness. Foresight – Vision, Creativity, Challenge Credibility – Quality first, On-site Verification, Kaizen (Continuous improvement) Collaboration – Communication, Teamwork, Human Development DENSO in Figures –Consolidated (DENSO Group) DENSO Corporation • Established: Dec. 16, 1949 • Capital: US$1.6 billion • Revenue: US$35.9 billion • Profit: US$2.8 billion • Employees: 147,000 in 38 countries Data are consolidated base as of March 31, 2015 U.S. dollar amounts have been translated from Japanese yen for convenience at the rate of 120.17 yen = US$1 Profit attributable to owners of the parent company. Global Network Consolidated Base Europe North America Base: 30 Employees: 22,104 Revenue: US$8.0 billion Base: 35 Employees: 14,489 Revenue: US$4.6 billion Japan Base: 61 Employees: 65,654 Revenue: US$22.2 billion Other Base: 6 Employees: 3,636 Revenue: US$614.2 million Asia & Oceania Base: 58 Employees: 43,731 Revenue: US$8.7 billion U.S. dollar amounts have been translated from Japanese yen for • Financial Figures are consolidated basis as of March 31, 2015 convenience only at the rate of 120.17 yen = US$1 • Company numbers include consolidated and affiliates • Revenue: Figures represent total sales by DENSO company locations, including sales between DENSO companies. Global Sales Consolidated Base (billion yen) US$37.7 billion 4,000 3,500 US$38.4 billion US$38.1 billion US$39.8 billion FY2011 FY2012 FY2013 US$32.0 billion US$35.9 billion 3,000 2,500 2,000 1,500 1,000 500 0 FY2009 FY2010 FY2014 U.S. dollar amounts are approximate and are translated from Japanese yen for convenience only at the rate on March 31 of each year. Consolidated Revenue by DENSO Company Locations South America/Others 1.7% North America Europe Revenue: 942.3 billion yen Revenue: 524.8 billion yen (Including sales between regional segment: (Including sales between regional segment: 966.5 billion yen) 554.8 billion yen) Japan Revenue: 1,838.4 billion yen (Including sales between regional segment: 2,664.5 billion yen) Asia Revenue: 73.5 billion yen Revenue: 930.8 billion yen 73.8 billion yen) Europe 12.2% North America 21.9% Japan 42.6% Total: 4,309.8 billion yen South America/Others (Including sales between regional segment: Asia 21.6% (Including sales between regional segment: 1,049.7 billion yen) Including sales between DENSO companies: 5,309.3 billion yen Consolidated Revenue by Business Groups 0.2% 1.9% 1.0% Powertrain Control 7.0% 8.7% 35.5% 14.5% 31.2% Thermal Information and Safety Systems Electronic Small Motors Industrial Products Consumer Products Others 4,309.8 billion yen Profit Consolidated Base US$3.7 billion (billion yen) 350 US$2.8 billion 300 250 200 150 US$3.0 billion US$2.3 billion US$2.0 billion FY2010 FY2011 US$1.5 billion 100 50 0 FY2009 FY2012 FY2013 FY2014 U.S. dollar amounts are approximate and are translated from Japanese yen for convenience only at the rate on March 31 of each year. Profit attributable to owners of the parent company. Profit Consolidated Base (billion yen) US$2.8 billion US$2.4 billion FY2013 FY2014 250 US$1.9 billion 200 150 100 US$1.7 billion US$1.1 billion FY2010 FY2011 US$789.2 million 50 0 FY2009 FY2012 U.S. dollar amounts are approximate and are translated from Japanese yen for convenience only at the rate on March 31 of each year. Profit attributable to owners of the parent company. R&D Investment Rate (billion yen) 300 US$32.0 billion US$37.7 billion US$3.6 billion US$3.6 billion US$3.3 billion FY2011 FY2012 FY2013 US$3.06 billion 250 200 150 100 50 0 FY2009 FY2010 FY2014 U.S. dollar amounts are approximate and are translated from Japanese yen for convenience only at the rate on March 31 of each year. Global Employee Number Consolidated Base 140,000 146,714 144,567 (People) 139,842 120,812 123,165 126,036 FY2009 FY2010 FY2011 120,000 100,000 80,000 60,000 40,000 20,000 0 FY2012 FY2013 FY2014 DENSO in Figures -North America DENSO North America • North America Regional Headquarters: DENSO International America, Inc. • • • • Companies: 30 Employees: 22,104 Revenue: US$8.0 billion Operating Profit: US$2.8 billion Data are consolidated base as of March 31, 2015 U.S. dollar amounts have been translated from Japanese yen for convenience at the rate of 120.17 yen = US$1 Profit attributable to owners of the parent company. Sales North America (billion yen) 800 700 600 US$5.7 billion US$6.4 billion US$6.2 billion FY2010 FY2011 US$6.8 billion US$7.9 billion US$8.0 billion FY2013 FY2014 500 400 300 200 100 0 FY2009 FY2012 • Sales figures represent total sales by DENSO company locations, including sales between DENSO companies • U.S. dollar amounts are approximate and are translated from Japanese yen for convenience only at the rate on March 31 of each year. Operating Income North America (billion yen) 35 30 US$321.9 million US$305.0 million 25 20 15 US$138.7 million US$106.7 million 10 US$142.8 million US$142.4 million FY2012 FY2013 5 0 FY2009 FY2010 FY2011 FY2014 • U.S. dollar amounts are approximate and are translated from Japanese yen for convenience only at the rate on March 31 of each year. Employee Number North America (People) 22,000 20,000 17,000 16,000 15,000 13,000 14,000 15,000 FY2011 FY2012 10,000 5,000 0 FY2009 FY2010 FY2013 FY2014 • U.S. dollar amounts are approximate and are translated from Japanese yen for convenience only at the rate on March 31 of each year. Business Areas DENSO Business Groups DENSO is organized into four business groups to strengthen global management. Powertrain Control Systems Business Group Goals To strengthen links between and among projects for greater systemization and mobility. Electronic Systems Business Group Thermal Systems Business Group To conduct rapid decision-making. To strengthen management linking projects from domestic and overseas group companies. Information & Safety Systems Business Group Develop and manufacture gasoline/diesel engine management systems and components, hybrid/electric vehicle management system and components, transmission control components, starters, and alternators Develop and manufacture electronic control units, semiconductor sensors, integrated circuits, power modules, and electronic luminescent displays Develop and manufacture car air-conditioning systems, radiators, cooling fans, and CO2 heat pump hot water supply systems Develop and manufacture information & communication systems and components (car navigation system, electronic throttle control, telematics), body electronics systems and components (instrument cluster, climate control panel, smart keys, body electronic control units), and safety and driver assistance system and components (airbag/pre-crash/adaptive front lights/electronic stability control electronic control units and sensors) Automotive Products Powertrain Control System Engine management system, Gasoline direct injection, Hybrid components, Starter, Alternator, etc. Thermal Systems Heating Ventilation Air Conditioning (HVAC), Compressor, Heat exchangers, Battery thermal management, etc. Information & Communications Systems Instrument cluster, Head-up display, Human machine interface technologies, Horn, Keyless entry, Wireless phone charger, etc. Driving Control & Safety Systems Passive safety technologies, Airbag sensing system, Active safety technologies, Traction control system, Antilock braking system, etc. Non-Automotive Products Home Equipment Auto ID Data Capture Devices Heating and Cooling Equipment Factory Automation Products Technology/Products North American Technical Center Activities Support North American customers and DENSO groups through the following activities: •Local product design and development (Thermal components and systems; Body electronics; and Powertrain components) •System Engineering across product lines •Application Engineering •Production Engineering •Material Engineering •Engineering Administration •Technical Planning •Research and development for North American unique needs •Vehicle system and component testing North American Technical Center Test Chambers Whole Vehicle • • • • • • • • Semi-anechoic Chamber Quiet Room High Temperature Chamber Environmental Drivability Chamber (2) Vehicle Climate Wind Tunnel Chamber Battery Thermal Management Test Chamber Hybrid Test Chamber Human Machine Interface R&D Lab Note: Information on this slide is for internal and customers use only. North American Technical Center Component Level • Vibration Lab • Fuel Pump Performance Bench • Buzz Shake Rattle (BSR) Chamber • Fuel Pump Durability Bench • Engine Dynamometer Test Cells • Environmental Chambers • Conducted/Radiated Emissions (EMC Chambers) • Air Conditioning Chambers • Electro Static Discharge (ESD) Bench • Direct Injection Flow Bench • TEM Cell • ISS Lab • Electrical Test Lab • Engine Cooling Benches • Strain Gauge Lab Note: Information on this slide is for internal and customers use only. Material Lab Capabilities Mechanical / Physical Tension/Compression Tester Impact Tester (Izod/Charpy) MFR (Melt Flow Rate) Creep Testers (x6) Hardness (Wallace/Shore/Rockwell/Vickers) Fatigue Tester Microscopy Metallography Polarization Microscopy/Microtome Optical/Digital Microscopy Measuring Microscopy SEM (Scanning Electron Microscope) Environmental Analytical EDS (Energy Dispersive Spectrometer) FT-IR (Fourier Transform – Infrared) DMA (Dynamic Mechanical Analysis) TGA (Thermo-Gravimetric Analysis) DSC (Differential Scanning Calorimeter) Karl Fischer Moisture Analyzer GC-MS (Gas Chromatograph – Mass Spectrometer) GC-FID (Gas Chromatograph – Flame Ionization Detector XRF (X-Ray Fluorescence) UV-Vis (UV-Visible Analyzer) Carbon-Sulfur Analyzer Potentiostat/Galvanostat EPMA (Electron Probe Micro Analyzer) IC (Ion Chromatograph) SST (Salt Spray Corrosion Tester) CASS Corrosion Tester CCT (Cyclic Corrosion Tester) Depth Measurement Microscope Note: Information on this slide is for internal and customers use only. Responsibilities in the Evaluation Stage Traditional Way Vehicle Test System Test Component Test DENSO Way Customer Customer Supplier DENSO Automotive Fields Environment Safety Hybrid and electric vehicle components, gasoline engine management system, diesel engine management system, starter, alternator, radiator, etc. 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. 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. Automotive Products Powertrain Control System Engine management system, Gasoline direct injection, Hybrid components, Starter, Alternator, etc. Thermal Systems Heating Ventilation Air Conditioning (HVAC), Compressor, Heat exchangers, Battery thermal management, etc. Information & Communications Systems Instrument cluster, Head-up display, Human machine interface technologies, Horn, Keyless entry, Wireless phone charger, etc. Driving Control & Safety Systems Passive safety technologies, Airbag sensing system, Active safety technologies, Traction control system, Antilock braking system, etc. Environmentally Friendly Products Promoting Recycling Preserving Clean Air • • • • • • • • Monolithic Carrier Air Flow Meter Fuel Injector Spark Plug Stop/Start Starter High Pressure Fuel Injector Oil Control Valve Variable Displacement Compressor • • • • HVAC Unit Starter Alternator Power Window Motor Reducing Hazardous Substances • • • • • • Instrument Cluster Air Conditioning Panel Cooling Fan Motors Windshield Wiper System Power Seat Motor Radiator Tank North American Manufactured Eco-Products Preserving Clean Air Monolithic Carrier The monolithic carrier acts to reduce or oxidize harmful emissions such as hydrocarbons, carbon monoxide, and nitrogen oxides. Air Flow Meter This air flow meter measure the flow rate of air into the intake manifold, resulting in the correct air-fuel ration for efficient combustion. North American Manufactured Eco-Products Preserving Clean Air High-Pressure Fuel Injector The high-pressure fuel injector, developed for gasoline direct-injected engines, allows for more precise controlling of combustion and emissions, which translates to improved fuel economy. Spark Plug Tough metal alloys applied to the tip of the plug ensure proper ignition even during idling, with less fuel consumption and less noise. North American Manufactured Eco-Products Preserving Clean Air Stop/Start Starter Stop/start systems cut the engine when the vehicle is at a stop or in other idle traffic situations, helping improve fuel efficiency by approximately three to five percent and to reduce CO2 emissions. North American Manufactured Eco-Products Preserving Clean Air Oil Control Valve The oil control valve controls the direction of the oil flow and activates the variable camshaft timing valve, providing more fuel savings and power. Viable Displacement Compressor The variable displacement compressor can alter refrigerant displacement to control air conditioner cooling capability, making it highly fuel-efficient. North American Manufactured Eco-Products Preserving Clean Air Injector This fuel injector’s atomizing capability dispenses fuel in precise quantities and allows for better mixing with air, increasing fuel efficiency. Promoting Recycling Starter The die cast process reuses 90 percent of internal scrap aluminum. North American Manufactured Eco-Products Promoting Recycling HVAC Unit The plastic case on this HVAC (heating, ventilation and air conditioning) unit is molded with 20 percent inhouse recycled material. A titanium-based process provides corrosion resistance for the evaporator rather than hexavalent chromium, an environmentally hazardous substance. Lead solder was eliminated from processing operations by a raw material switch from copper to aluminum. North American Manufactured Eco-Products Promoting Recycling Alternator A redesigned segment conductor produces a smaller, lighter alternator with higher efficiency and lower noise. Power Window Motor The power window motor is engineered to be the most compact, and is available in multiple output torque levels and three versions of control: standard, sensor and smart. North American Manufactured Eco-Products Reducing Hazardous Substances Instrument Cluster & Air Conditioning Panel The instrument cluster and air conditioning panel are manufactured without the anticorrosive hexavalent chromium, an environmentally hazardous substance that can leak into the underground water table if a product containing the metal is not disposed properly. North American Manufactured Eco-Products Reducing Hazardous Substances Cooling Fan Motors The fan motor is manufactured with leadfree electrical brushes. Power Seat Motor The power seat motor is engineered to optimize material usage while maintaining performance and size advantages for today’s innovative, lightweight seat system. North American Manufactured Eco-Products Reducing Hazardous Substances Windshield Wiper System The wiper motor is manufactured with lead-free electrical brushes. Radiator Tank (plant-derived resin) The plant-derived resin radiator tank, which is made from castor oil, is green all the way around. Compared to conventional products, it releases less CO2 emissions into the environment during its life cycle because it is partially made from material extracted from plants, which absorb CO2 through the photosynthesis process. It also helps conserve oil, a fossil fuel which is being depleted. DENSO Organization DENSO Corporation Oganization Board of Directors Corporate Center Engineering Research & Development Center Chairman, Vice Chairman, President & CEO, Executive Vice President Audit, Corporate Planning, Finance & Accounting, Corporate Communications, Legal, Secretarial, General Administration, Human Resources, Healthcare Promotion Technology Planning, Intellectual Property, Engineering Administration, R&D, IT, Research & Development, Information Technology Product Promotion Center Quality Control, Safety & Environment, Production Engineering, Machinery & Tools, Prototype Manufacturing, Construction, Production Control, Logistics Planning Procurement Group Procurement Sales Group Sales & Marketing, Technical Service Powertrain Control Systems Business Group Electric Systems Business Group Electronic Systems Business Group Thermal Systems Business Group Information & Safety Systems Business Group DENSO Corporation Organization Audit Business Innovation New Business Promotion Board of Directors President & CEO Executive Vice Presidents Corporate Center Corporate Planning, Accounting, Corporate Communications, Legal, Information Technology, Secretarial, General Admin., Human Resources, Health Care Promotion, External Affairs Engineering Research & Development Center Technology Planning, Engineering Development Promotion, Intellectual Property, Design, R&D Production Promotion Center Purchasing Group Sales & Marketing Group Quality Control, Safety & Environment, Production Engineering, Materials Engineering. Machinery & Tools, Prototype Manufacturing, Construction, Production Control, Logistics Purchase Original Equipment Manufacturer Sales, Global Business Planning, Technical Service Continued on the next slide. DENSO Corporation Organization Powertrain Control Systems Business Group Develop and manufacture gasoline/diesel engine management systems and components, hybrid/electric vehicle management system and components, transmission control components, starters, and alternators Board of Directors Electronic Systems Business Group President & CEO Executive Vice Presidents DENSO is organized into four business groups to strengthen global management. Goals Thermal Systems Business Group Information & Safety Systems Business Group Aftermarket, Fleet & New Business Group Develop and manufacture electronic control units, semiconductor sensors, ICs, power modules, and EL displays Develop and manufacture car air-conditioning systems, radiators, cooling fans, and CO2 heat pump hot water supply systems Develop and manufacture information & communication systems and components (car navigation system, ETC, telematics), body electronics systems and components (instrument cluster, climate control panel, smart keys, body ECUs), and safety and driver assistance system and components (airbag/pre-crash/AFS/ESC ECU & sensor) Development and sales of aftermarket products To strengthen links between and among projects for greater systemization and mobility. To conduct rapid decision-making. To strengthen management linking projects from domestic and overseas group companies. DENSO Global Structure JAPAN Customers ASIA Customers DENSO DENSO R&D Designing Manufacturing Sales & Marketing Finance R&D Designing Manufacturing Sales & Marketing Finance DENSO DENSO R&D Designing Manufacturing Sales & Marketing Finance R&D Designing Manufacturing Sales & Marketing Finance NORTH AMERICA Customers EUROPE Customers DENSO Locations -Global DENSO Operations in North America DMMI, AMI, S.P.C., ASMI DMCN DSCN MACI DIAM (Waterloo Operations) 1 1 Urbandale Navigation Laboratory (DIAM) DPAM DMAR, SPARC 1 1 DWAM Plants Sales & Others Silao *As of March 31, 2013 TBDN KDMK KYDA ASKY 1 DMAT GNC, NWB ANAM AFCO TACG DMTN ASMX DNMX DRAM EASE Simulation DIAM (Ohio) Kenmore AMI (ATX) DIAM (North America Research and Development) 1 DIAM, ADI ANC DENSO Operations in North America 1 2 3 4 5 6 7 8 9 10 11 15 17 3 6 1 21 23 22 10 7 2 12 9 25 26 13 19 20 5 4 16 14 18 24 11 8 12 13 14 15 16 17 18 19 20 21 22 29 28 27 24 25 Production Companies Others 23 30 26 27 28 *As of March 31, 2015 29 30 DIAM DSCA DMMI DMTN DMAT MACI TBDN AFCO DWAM DMAR TACG DRAM EASE ANAN AMI ANC ADI GNC KYDA KDMK SPC SPAC ASMI NWB DMCN DSCN DNMX ASMX HDMX AMMX DENSO INTERNATIONAL AMERICA, INC. DENSO PRODUCTS AND SERVICES AMERICAS, INC DENSO MANUFACTURING MICHIGAN, INC. DENSO MANUFACTURING TENNESSEE, INC. DENSO MANUFACTURING ATHENS TENNESSEE, INC. MICHIGAN AUTOMOTIVE COMPRESSOR, INC. TBDN TENNESSEE COMPANY ASSOCIATED FUEL PUMP SYSTEMS CORPORATION DENSO WIRELESS SYSTEMS AMERICA, INC. DENSO MANUFACTURING ARKANSAS, INC. TD AUTOMOTIVE COMPRESSOR GEORGIA, LLC DENSO REINSURANCE AMERICA, INC. EASE SIMULATION, INC. ASMO NORTH AMERICA, LLC. ASMO MANUFACTURING, INC. ASMO NORTH CAROLINA, INC. ASMO DETROIT, INC. ASMO GREENVILLE OF NORTH CAROLINA, INC. KYOSEN DENKI AMERICA, INC. KYOSEN DENSO MANUFACTURING KENTUCKY, LLC. SYSTEXS PRODUCTS CORPORATION SYSTEXS PRODUCTS ARKANSAS COMPANY DENSO AIR SYSTEMS MICHIGAN, INC. NWB USA, INC. DENSO MANUFACTURING CANADA, INC. DENSO SALES CANADA, INC. DENSO MEXICO S.A. DE C.V. DENSO AIR SYSTEMS DE MEXICO S.A. DE C.V. HAMADEN MEXICO S.A. DE C.V. ASMO MANUFACTURING DE MEXICO S.A. DE C.V. DENSO Operations in South America 2 1 DNBR DENSO DO BRASIL LTDA. 2 DNAZ DENSO INDUSTRIAL DA AMAZONIA LTDA. 3 DMBR DENSO MAQUINAS ROTANTES do BRASIL LTDA. 4 DTBR DENSO SISTEMAS TERMICOS do BRASIL LTDA. 5 PIL PECVAL INDUSTRIA LTDA. 6 DNAR DENSO MANUFACTURING ARGENTINA S.A. 3 4 5 1 6 Production Companies Others *As of March 31, 2015 DENSO Operations in Europe-Others 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 DIEU DNEU DFHO DIUK DSUK DNMN DMUK DNDE TDDK ADASENS DNBA DTSP DSIT DNTS DMIT CTR DSFR DMHU DSSE DTPO DNPO TBMECA DSBE J.DEUS DENSO INTERNATIONAL EUROPE B.V. DENSO EUROPE B.V. DENSO FINANCE HOLLAND B.V. DENSO INTERNATIONAL UK LTD. DENSO SALES UK LTD. DENSO MARSTON LTD. DENSO MANUFACTURING UK LTD. DENSO AUTOMOTIVE Deutschland GmbH TD Deutsche Klimakompressor GmbH 25 26 27 28 29 30 31 32 33 DMCZ ACZ LIP DACZ DNTR DJKSC DSRU SML DTMO DENSO MANUFACTURING CZECH s.r.o. ASMO CZECH s.r.o. LIPLASTEC s.r.o. DENSO AIR SYSTEMS CZECH s.r.o. DENSO OTOMOTIV PARCALARI SANAYI ANONIM SIRKET DJ COOL KLIMA VE SOGUTMA CIHAZLAR SAN. TIC. A.S. DENSO SALES RUS L.L.C. SMITHS MANUFACTURING (PTY) LIMITED DENSO THERMAL SYSTEMS MOROCCO S.A.R.L. ADASENS Automotive GmbH DENSO BARCELONA S.A. DENSO SISTEMAS TERMICOS ESPANA S.A. 1 2 3 DENSO SALES ITALIA S.R.L. DENSO THERMAL SYSTEMS S.p.A. 6 7 4 5 DENSO MANUFACTURING ITALIA S.p.A. CTR S.R.L DENSO SALES FRANCE S.A.R.L. 19 31 23 DENSO MANUFACTURING HUNGARY LTD. DENSO SALES SWEDEN AB 17 DENSO THERMAL SYSTEMS POLSKA Sp.z o.o DENSO POLAND Sp. z o.o TBMECA Poland Sp.z o.o DENSO SALES BELGIUM N.V. JOAO DE DEUS & FILHOS S.A. *As of March 31, 2015 10 8 18 13 14 16 Production Companies Others 9 25 22 21 28 26 27 20 12 11 24 33 15 29 30 DENSO Operations in China 1 DENSO (CHINA) INVESTMENT CO., LTD. 2 YANTAI SHOUGANG DENSO CO., LTD. 3 TIANJIN DENSO ENGINE ELECTRICAL PRODUCTS CO., LTD. 4 GONGCHENG DENSO (CHONGQING) CO., LTD. 5 TIANJIN DENSO ELECTRONICS CO., LTD. 6 TIANJIN DENSO AIR-CONDITIONER CO., LTD. 7 DENSO SOFTWARE SHANGHAI CO., LTD. 8 GUANGZHOU DENSO CO., LTD. 9 SHANGHAI DENSO FUEL INJECTION CO., LTD. 10 TIANJIN FAWER DENSO AIR-CONDITIONER CO., LTD. 11 TIANJIN TOYOTA BOSHOKU AUTOMOTIVE PARTS CO., LTD. 12 DENSO (GUANGZHOU NANSHA) CO., LTD. 13 J-WORKS PARTS SALES (TIANJIN) CO., LTD. 3 5 10 11 14 14 DENSO (TIANJIN) THERMAL PRODUCTS CO., LTD. 17 19 24 27 28 15 WUXI DENSO AUTOMOTIVE PRODUCTS CO., LTD. 16 TOYOTA BOSHOKU FOSHAN CO., LTD. 17 DENSO TIANJIN ITS CO., LTD. 18 TD AUTOMOTIVE COMPRESSOR KUNSHAN CO., LTD. 19 DENSO (TIANJIN) BODY PARTS CO., LTD. 20 DENSO (CHANGZHOU) FUEL INJECTION SYSTEM CO., LTD. 21 YANGZHOU JIEXIN DENSO AIR-CONDITIONER CO., LTD. 22 YANTAI SHOUGANG TD AUTOMOTIVE COMPRESSOR CO., LTD. 23 HEFEI DYNE AUTO AIR CONDITIONER CO., LTD. 24 TIANJIN ASMO AUTOMOTIVE SMALL MOTOR CO., LTD. 25 ASMO GUANGZHOU SMALL MOTOR CO., LTD. 26 ASMO HANGZOU XIAOSHAN SMALL MOTOR CO., LTD. 27 TIANJIN SHIMIZU PENG YING PLASTICS CO., LTD. 28 DENSO AIR SYSTEMS TIANJIN CO., LTD. 1 13 2 6 22 18 20 15 7 9 21 23 26 4 Production Companies 25 12 8 16 Others *As of March 31, 2015 DENSO Operations in India/Africa 11 1 649 5 2 8 1 DNJM DENSO ABDUL LATIF JAMEEL CO., LTD. 2 DSMN DENSO SALES MIDDLE EAST & NORTH AFRICA FZE 3 SMITHS SMITHS MANUFACTURING (PTY) LIMITED 4 DIIN DENSO INTERNATIONAL INDIA PVT. LTD. 7 5 DNIN DENSO INDIA LTD. 10 6 DNHA DENSO HARYANA PVT. LTD. 7 DNKI DENSO KIRLOSKAR INDUSTRIES PVT. LTD. 8 DTPU DENSO THERMAL SYSTEMS PUNE PVT. LTD. 9 DSEC DENSO SUBROS THERMAL ENGINEERING CENTRE INDIA LIMITED 10 DPIN DENSO AUTO BODY PARTS INDIA PRIVATE LIMITED 11 AHTL ATLAS HITEC (PRIVATE) LIMITED Production Companies Others 3 *As of March 31, 2015 DENSO Operations in Asia/Oceania 23 6 81024 13 4 5 7 11 9 12 14 15 16 17 27 28 25 26 3 18 19202122 Production Companies Others *As of March 31, 2015 1 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 DIAU DENSO INTERNATIONAL AUSTRALIA PTY. LTD. DNAU DENSO AUTOMOTIVE SYSTEMS AUSTRALIA PTY LTD. DIAS DENSO INTERNATIONAL ASIA PTE. LTD. DIAT DENSO INTERNATIONAL ASIA CO.,LTD. DNTH DENSO (THAILAND) CO., LTD. DTTH DENSO TOOL & DIE (THAILAND) CO., LTD. SDM SIAM DENSO MANUFACTURING CO., LTD. TBFST TOYOTA BOSHOKU FILTRATION SYSTEM (THAILAND) CO., LTD. DSTH DENSO SALES (THAILAND) CO.,LTD. SIAM KYOSAN DENSO CO., LTD. ANDEN (THAILAND) CO., LTD. AIR SYSTEMS (THAILAND) CO., LTD. AMM ASMO MYANMAR CO., LTD. PIT & GO AUTOMOTIVE SERVICE (CAMBODIA) CO., LTD. DNKH DENSO (CAMBODIA) CO., LTD. DNMY DENSO (MALAYSIA) SDN. BHD. NIPPON WIPER BLADE (M) SDN. BHD. DSIA PT. DENSO SALES INDONESIA TACI PT.TD AUTOMOTIVE COMPRESSOR INDONESIA DNIA PT. DENSO INDONESIA PT. HAMADEN INDONESIA MANUFACTURING PT. ASMO INDONESIA DMVN DENSO MANUFACTURING VIETNAM CO., LTD. HAMADEN VIETNAM CO., LTD. DENSO TECHNO PHILLIPINES, INC. PAC PHILIPPINE AUTO COMPONENTS, INC. DENSO TAIWAN CORP. CRYOMAX COOLING SYSTEM CORP. DENSO Corporation HQ and Plants Daian Plant Ikeda Plant Headquarters Research Laboratory Anjo Plant Nukata Proving Ground Agui Plant Takatana Plant Nishio Plant Chubu area Zenmyo Plant Kota Plant Toyohashi Plant DENSO Corporation Plant Locations and Main Products Ikeda Plant: Radiators, oil coolers, inter coolers Daian Plant: Ignition components, driving control and safety products, valve train components, exhaust emission control components Agui Plant: Machinery, tools Nishio Plant: Air conditioners, radiators, fuel injection systems for diesel and electronic fuel injection components Research Laboratories: Research in semiconductors, information and communications systems, material human machine, interface technologies Anjo Plant: Starters, alternators, hybrid vehicle components Takatana Plant: Instrument clusters, displays, car navigation systems, various sensors Headquarter s Nukata Proving Ground Test driving automotive components Kota Plant: Integrated circuits, electronic control components Toyohashi Plant: Air conditioners, natural refrigerant (CO2) heat-pump hot water supply systems Zenmyo Plant: Electronic diesel injection systems DENSO Locations -North America DENSO North America Companies DENSO International America, Inc. Locations: Southfield, Michigan (North American Headquarters) Waterloo, Iowa (Waterloo Operations) Vista, California (North American Research Development) San Jose, California (North American Research Development) Long Beach, California (Sales & Engineering) Dublin, Ohio (Sales & Quality Engineering) Belleville, Michigan (North American Logistics Center) Fremont, California (North American Logistics Center) Laredo, Texas (North American Logistics Center) Established: 1985 Employees: 1,063 Main Business: Regional headquarters for North American operations, sales, engineering, design, technical support and finance DENSO North America Companies DENSO Products and Services America, Inc. Locations: Long Beach, California Murrieta, California Main Business: Established: 1971 Employees: 468 Long Beach: Sale of automotive components, spot-coolers, and robots Murrieta: Manufacturing of alternators and starters DENSO North America Companies DENSO Manufacturing Michigan, Inc. Locations: Battle Creek, Mich. Urbandale, Iowa Montgomery, Alabama Main Business: Manufacturing of car air conditioners and radiators, sale of HVAC components Established: 1984 Employees: 2,837 DENSO North America Companies DENSO Manufacturing Tennessee, Inc. Location: Maryville, Tennessee Main Business: Manufacturing of automotive electrical components, instrument clusters, starters, alternators, and automotive electronic products Established: 1988 Employees: 3,065 DENSO North America Companies DENSO Manufacturing Athens Tennessee, Inc. Location: Athens, Tennessee Main Business: Manufacturing of injectors, oxygen sensors, and stick coils Established: 2003 Employees: 1,186 DENSO North America Companies DENSO Wireless systems America, Inc. Location: Vista, California Main Business: Manufacturing of GPS navigation systems and other automotive electronic parts Established: 1997 Employees: 184 DENSO North America Companies DENSO Manufacturing Arkansas, Inc. Location: Osceola, Arkansas Main Business: Manufacturing of car air conditioners and radiators Established: 2003 Employees: 457 DENSO North America Companies Michigan Automotive Compressor, Inc. Location: Parma, Michigan Main Business: Manufacturing of car air conditioning compressors and magnetic clutches Established: 1989 Employees: 1, 028 DENSO North America Companies TBDN Tennessee Company Location: Jackson, Tennessee Main Business: Manufacturing of air cleaners and oil filters Established: 1989 Employees: 403 DENSO North America Companies Associated Fuel Pump Systems Corporation Location: Anderson, South Carolina Main Business: Manufacturing of fuel pumps Established: 1989 Employees: 302 DENSO North America Companies ASMO Manufacturing, Inc. Locations: Battle Creek, Michigan Ennis, Texas Main Business: Manufacturing of windshield washer systems and servo motors Established: 1986 Employees: 248 DENSO North America Companies ASMO North Carolina, Inc. Location: Statesville, North Carolina Main Business: Regional Headquarters for ASMO group in North America Established: 1988 Employees: 3 DENSO North America Companies ASMO Greenville of North Carolina, Inc. Location: Greenville, North Carolina Main Business: Manufacturing of windshield wiper systems and windshield washer systems Established: 1994 Employees: 597 DENSO North America Companies Kyosan Denki America, Inc. Location: Mt. Sterling, Kentucky Main Business: Headquarters for KYOSAN DENSO MANUFACTURING KENTUCKY, LLC. Established: 2000 Employees: - DENSO North America Companies Kyosan DENSO Manufacturing Kentucky, Inc. Location: Mt. Sterling, Kentucky Main Business: Manufacturing of fuel pump modules Established: 2003 Employees: 568 DENSO North America Companies DENSO Air Systems Michigan, Inc. Locations: Battle Creek, Michigan Hopkinsville, Kentucky Main Business: Manufacturing of automotive tube and pipe components for automotive heating and air conditioning Established: 1987 Employees: 339 DENSO North America Companies DENSO Manufacturing Canada, Inc. Location: Guelph Ontario, Canada Main Business: Manufacturing of heating, ventilation and air conditioning; and engine control module Established: 1972 Employees: 600 DENSO North America Companies DENSO Sales Canada, Inc. Location: Mississauga Ontario, Canada Main Business: Sales of car air conditioners, radiators, pump components, and automotive electrical components Established: 2007 Employees: 33 DENSO North America Companies DENSO Mexico S.A. DE. C.V. Locations: Apodaca, Nuevo León Puerto Interior, Silao Guanajuato Rancho Viejo, Guadalupe NL Main Business: Manufacturing of instrument clusters, valves, and VCT Established: 1994 Employees: 5,828 DENSO North America Companies DENSO Air Systems de Mexico S.A. DE. C.V. Location: Frontera Coahuila, Mexico Main Business: Manufacturing of hose & tubes for car air conditioning, and portable industrial air conditioner units (Movingcool) Established: 2001 Employees: 1,443 History DENSO Establishment Establishment of Nippondenso Co., Ltd. (Currently DENSO Corporation) 1949 DENSO History: 1949-1972 Established Nippondenso Co., Ltd. (Now DENSO Corporation) 1949 1954 First Technical Training School Awarded Deming Prize 1961 Integrated Circuit Research Center 1966 First Overseas Sales/Service Office: Chicago 1968 First overseas manufacturing subsidiaries: Australia and Tailand 1971 First Overseas Subsidiary: Los Angeles 1972 DENSO History: 1973-2000 DENSO Europe B.V. Established 1973 DENSO Research Laboratories Nukata Testing Center 1977 1984 DENSO Employee Received the First Gold Medal in WorldSkills Competition 1985 1991 DENSO International America, Inc. Established Change name to DENSO Corporation 1995 1996 DENSO International Asia Pte. Ltd Established 2000 DENSO’s NAVI System Offers Complete Map Coverage for United States DENSO History: 2001-2010 DENSO Manufacturing Michigan, Inc. Earns U.S. EPA Performance Award DENSO Manufacturing Arkansas, Inc. Established 2003 2006 DENSO Mexico Establishes Worm Farm 2007 DIAM Named Preferred Supplier by Ford Motor Company 2008 DIAM Named GM Supplier of the Year 2009 2010 DIAM Named GM Supplier of the Year DENSO History: 2011-Current Outstanding Supplier Performance Award from John Deere. Established R&D Office in Silicon Valley 2011 DENSO to invest nearly $1 billion in North America 2012 DENSO Develops World’s First Integrated, in-vehicle Wireless Cell Phone Charger 2013 DENSO Athens Tennessee expands 2014 DENSO Expands North American Headquarters in Southfield, Michigan DENSO Opens New Silao, Mexico Facility DENSO Expands Presence in Silicon Valley 2015 Current Approximately 140,000 Employees Work at DENSO Today, in More than 38 Countries and Regions Environment DENSO EcoVision 2015 Eco Management Strengthen cooperation with DENSO Group and partners Eco Friendly Enhancement of external relationships and information disclosure Eco Products Development of environmentally friendly technologies and products Eco Factory Reduction of environmental impact in global production Environmentally Friendly Products Promoting Recycling Preserving Clean Air • • • • • • • • Monolithic Carrier Air Flow Meter Fuel Injector Spark Plug Stop/Start Starter High Pressure Fuel Injector Oil Control Valve Variable Displacement Compressor • • • • HVAC Unit Starter Alternator Power Window Motor Reducing Hazardous Substances • • • • • • Instrument Cluster Air Conditioning Panel Cooling Fan Motors Windshield Wiper System Power Seat Motor Radiator Tank Five Key Evaluations before Mass Production • Enhance fuel efficiency • Reduce volume of refrigerants used, and develop substitutes • Improve recyclables rate • Reduce environmentally hazardous substances • Remove pollutants from exhaust gases North American Manufactured Eco-Products Preserving Clean Air Monolithic Carrier The monolithic carrier acts to reduce or oxidize harmful emissions such as hydrocarbons, carbon monoxide, and nitrogen oxides. Air Flow Meter This air flow meter measures the flow rate of air into the intake manifold, resulting in the correct air-fuel ratio for efficient combustion. North American Manufactured Eco-Products Preserving Clean Air High-Pressure Fuel Injector The high-pressure fuel injector, developed for gasoline direct-injected engines, allows for more precise controlling of combustion and emissions, which translates to improved fuel economy. Spark Plug Tough metal alloys applied to the tip of the plug ensure proper ignition even during idling, with less fuel consumption and less noise. North American Manufactured Eco-Products Preserving Clean Air Stop/Start Starter Stop/start systems cut the engine when the vehicle is at a stop or in other idle traffic situations, helping improve fuel efficiency by approximately three to five percent and to reduce CO2 emissions. North American Manufactured Eco-Products Preserving Clean Air Oil Control Valve The oil control valve controls the direction of the oil flow and activates the variable camshaft timing valve, providing more fuel savings and power. Variable Displacement Compressor The variable displacement compressor can alter refrigerant displacement to control air conditioner cooling capability, making it highly fuel-efficient. North American Manufactured Eco-Products Preserving Clean Air Injector This fuel injector’s atomizing capability dispenses fuel in precise quantities and allows for better mixing with air, increasing fuel efficiency. Promoting Recycling Starter The die cast process reuses 90 percent of internal scrap aluminum. North American Manufactured Eco-Products Promoting Recycling HVAC Unit The plastic case on this HVAC (heating, ventilation and air conditioning) unit is molded with 20 percent inhouse recycled material. A titanium-based process provides corrosion resistance for the evaporator rather than hexavalent chromium, an environmentally hazardous substance. Lead solder was eliminated from processing operations by a raw material switch from copper to aluminum. North American Manufactured Eco-Products Promoting Recycling Alternator A redesigned segment conductor produces a smaller, lighter alternator with higher efficiency and lower noise. Power Window Motor The power window motor is engineered to be the most compact, and is available in multiple output torque levels and three versions of control: standard, sensor and smart. North American Manufactured Eco-Products Reducing Hazardous Substances Instrument Cluster & Air Conditioning Panel The instrument cluster and air conditioning panel are manufactured without the anticorrosive hexavalent chromium, an environmentally hazardous substance that can leak into the underground water table if a product containing the metal is not disposed properly. North American Manufactured Eco-Products Reducing Hazardous Substances Cooling Fan Motors The fan motor is manufactured with leadfree electrical brushes. Power Seat Motor The power seat motor is engineered to optimize material usage while maintaining performance and size advantages for today’s innovative, lightweight seat system. North American Manufactured Eco-Products Reducing Hazardous Substances Windshield Wiper System The wiper motor is manufactured with lead-free electrical brushes. Radiator Tank (plant-derived resin) The plant-derived resin radiator tank, which is made from castor oil, is green all the way around. Compared to conventional products, it releases less CO2 emissions into the environment during its life cycle because it is partially made from material extracted from plants, which absorb CO2 through the photosynthesis process. It also helps conserve oil, a fossil fuel which is being depleted. CO2 Emission Target – DENSO North America Reduce CO2 Emissions 89.2 90.0 92.8 83.4 79.8 80.0 T-CO2/M USD 70.0 68.9 65.3 60.0 53 51.7 50.0 40.0 48 47 47.5 FY 2011 FY 2012 FY 2013 30.0 20.0 10.0 0.0 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2014 Reduce Water Consumption Target – DENSO North America Reduce Water Consumption 400.00 350.00 304.7 300.00 263.27 M3/M USD 250.00 246.5 221.1 199.8 200.00 160.9 202.15 206.0 190.0 185.0 160.9 160.9 160.9 160.9 160.9 150.00 100.00 50.00 0.0 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Reduce Landfill Waste Target – DENSO North America Reduce Landfill Waste 6,000,000 5,554,439 4,886,536 4,838,626 5,000,000 3,943,084 M3/M USD 4,000,000 3,000,000 2,272.893 2,159,469 2,000,000 1,380,726 1,375,302 1,115,807 967.336 1,000,000 452,290 452,290 452,290 452,290 452,290 452,290 0.0 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Reduce Toxic Chemical ReleasesTarget – DENSO North America 45 Reduce Toxic Chemical Releases kgs/M USD 40 Color Key 35 Transferred To POTW 30 Landfill Air 25 20 15 10 5 0 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 Others Major Worldwide Customers Toyota Honda Isuzu Subaru Mazda Daihatsu Hino Suzuki Mitsubishi Nissan Hyundai Kia Volkswagen GM Chrysler Ford Volvo Jaguar Land Rover OPEL BMW Mercedes-Benz Volkswagen Audi Renault PSA Fiat Tata Tesla John Deere Caterpillar Cummins CNH Harley-Davidson Perkins Paccar Volvo Trucks Freightliner Major North American Customers GM Chrysler Ford BMW Mercedes-Benz Hyundai Kia Tesla Volkswagen Toyota Honda Isuzu Subaru Mazda Hino Suzuki Mitsubishi Nissan John Deere Caterpillar Cummins CNH Harley-Davidson Perkins Paccar Volvo Trucks International Truck & Engine Polaris Mack Trucks Freightliner Product Flow Vehicle Purchaser OEM Customer First Tier Supplier DENSO Second Tier Supplier Second Tier Supplier DENSO’s Procurement Policy • Open door • Mutual growth based on mutual trust • Promotion of local procurement • Promotion of green procurement • Strict legal compliance and confidentiality Purchasing Process Flow SUPPLIER DENSO First Contact Presentation Issue of Quotation Prototype Production Issue of Final Quotation First Contact Preliminary Review Second Review Quotation Request Evaluation of Quotation Initial Plant Visit Prototype Order Evaluation of Prototype Quality Process Audit Final Quotation Request Overall Evaluation Final Selection Contract Order Placement Regular Production Setup DENSO Culture in North America Culture Blending Management Principles American Culture Development for Every Associate DENSO Philosophy Good Company Japanese Culture Community Commitment DENSO Corporate Culture American Culture DENSO Philosophy Creativity Entrepreneurial spirit Equality Volunteerism Recognition Respect humanity Long-term vision Continuous Improvement Japanese Culture Long-term vision Continuous improvement Consensus Teamwork Participation DENSO Culture Consensus Equality Teamwork Recognition Participation Monozukuri (Making Things) DENSO is committed to making high-quality components. Quality Strong attention to even a single defect. Delivery Strict adherence to delivering on time. Competitiveness Continuous improvement with technologies & skills. Safety & Environment Cherishing people, community, and environment. Humanity Participative management with self-improvement. Corporate Social Responsibility Goals • Achieve growth of DENSO Groups through contribution to sustainable development of society. • Practice responsible corporate activities with a good balance of economic aspects (business results). • Environmental and social aspects.