FY214 1 st Quarter Financial Results ended June 3, 213 July 31, 213
Overview of FY214 1 st Quarter Financial Results 1 / 11 1. 1. Both of Sales and income are increased from the previous year 2. 2. Upward revisions of FY214 1st-half and full year forecast 1
FY214 1 st Quarter Financial Results (Ratio to Sales) 2 / 11 FY14 1Q FY13 1Q Change Sales 997.6 882.4 + 115.2 + 13.1% (1.2%) 12.1 (8.9%) 78.2 + 24. + 3.7% before Taxes (11.7%) 116.7 (9.6%) 85.1 + 31.6 + 37.1% Net 86. 49.1 + 36.9 + 75.2% (8.6%) (5.6%) Foreign JPY 99/$ JPY 8/$ + JPY 19 Exchange Rate JPY129/Euro JPY13/Euro +JPY 26 (Unit: Millions of Units) Domestic Car 2.18 Production Overseas Car Production of of Japanese Manufacturers (North America) 4.33 (1.4) 2. 37 4.16 (1.31) -.19 +.17 (+.9) -8.% +4.1% (+6.9%) [Overview of the consolidated financial results] We posted sales of 997.6billion yen, a 13.1 percent increase from the previous year, income reached 12.1 billion yen, a 3.7 percent increase from the previous year. We earned a net income of 86. billion yen, a 75.2 percent increase from the previous year. 2
Change in 1 st Quarter Consolidated Sales By Customer After-market, New business&others OE Sales for others 94.8 9.5% 41.1% 84.3 9.5% 338.2 38.4% After-market, New business&others OE Sales for others 41.2 FY13 1Q 882.4 FY14 1Q 997.6 Toyota Group 459.9 52.1% Toyota Group 492.6 49.4% 4 42 3 2 1 OE Sales for others 338.2 94.6 9.3 11.9 15.8 14.3 18. 15.9 2. 17.8 15.5 23.2 2.9 11.2 11.5 14.4 18.5 18.6 18.8 21.1 23. 23.3 24.1 28.4 28.9 61. 69.4 FY13 '12/6 1Q 41.2 FY14 '13/6 1Q Others ( ):Change from FY13 1Q (+16.5%) Nissan (+23.7%) Isuzu (+21.1%) Mazda (+17.2%) VW AUDI (+29.5%) Fuji (+4.1%) Chrysler (+32.6%) Suzuki Fiat (+15.3%) (+3.6%) Ford (+55.8%) GM (+22.1%) Hyundai/Kia (+38.4%) Honda (+13.9%) 3 / 11 [Sales by customer] Despite of sales promotion for Toyota, decreasing its production of vehicles in Japan and Asia& Oceania led to sale increased slightly and declined of our sale ratio. Suzuki also decreased production of vehicles in Japan, but thanks to our sales promotion of Lithium-ion Batteries unit led to increase our sales. Sale to Mazda also increased by sales promotion of gasoline direct injection products. On the other hand, sales to overseas automakers also increased. We promoted sales of instrument cluster and remote keyless entry for Hyundai Kia, and car air conditioning system for Ford and Fiat. 3
Change in 1 st Quarter Consolidated Sales By Business Segment 1, 882.4 8 6 26.6 64.7 997.6 28. 69.9 91. 82.7 151. 149.5 Others 4 / 11 ( ):Change from FY13 1Q (+ 5.3%) Small Motors (+ 8.%) Electronic (+ 1.%) Information (+ 1.%) & Safety Systems 4 258.3 38.8 Thermal (+ 19.5%) 2 3.6 348.9 Powertrain Control (+ 16.1%) FY13 1Q FY14 1Q [Sales by business segment] Sales of Thermal systems group rose significantly over the previous year, with promotion sales of car air conditioning system and increased production of vehicles in North America and Asia & Oceania. Powertrain control systems group was primarily due to increase of gasoline direct injection system and Lithium battery unit. 4
Change in 1 st Quarter 5 / 11 (Unit: Billion of Yen) 78.2 lncome -9. Labor -7. -3. Expense Raw material -.3 Depreciation -3.1 Others (Mix) +33.5 Currency exchange gain +1. Variable reduction +2.9 Production volume increase 12.1 FY13 1Q FY14 1Q [Factors that contributed to increases or decreases in ] Negative factors (1) Higher Labor : An increase of 9. billion yen was mainly due to an increase promotion and bonus and overtime work. (2) Higher expense: An increase of 7. billion yen was mainly due to in R&D expenditure and outsourcing. Positive factors (1) Currency exchange gain: An increase of 33.5 billion yen was mainly due to a 19-yen depreciation the yen and 26-yen (2) Variable reduction: An increase of 1. billion yen was due to increased productivity and other efficiencies. 5
1 st Quarter Geographical Segments by Company Location 6 7 653.6 62.9 +5.3% 6 5 Sales ( ): Local Currency Basis 6 6 8 75.3 [11.5%] 7 5 +36.6% 6 / 11 [ ]: Ratio to Sales 5 4 3 2 1 +32.1% (+7.8%) +29.9% (+5.9%) 231.5 27.3 +26.1% (+2.2%) 175.3 159.6 117.9 93.5 +51.3% (+32.2%) 21.2 14. FY13 日本 FY14 北米欧州豪亜その他 1Q 1Q North Asia & Japan America Europe Oceania Others 4 6 3 5 2 1 55.1 [8.9%] +25.6% (-1.1%) 21.4 [9.2%] 17. +19.6% (-1.2%) [9.7%] 6.3-4.7% -1.8% 5.2 (-26.1%) [3.%] (-17.3%) 1.8 [3.3%] 1.7 [1.9%] 1. 1. [1.5%] [7.%] [4.5%] FY13 日本 FY14 北米欧州豪亜その他 1Q 1Q North Asia & Japan America Europe Oceania Others [Sales and operating income by operating region] *On a local currency basis excluding the effect of foreign exchange rate In Japan, despite of the decrease in car production, the increase of export sales and the effect of the weak yen led to an increase in sales to 653.6 billion yen, a 5.3 percent increase from the previous year. Despite the decrease in production volume, currency exchange gain and reduction efforts led to an operating income of 75.3 billion yen, a 36.6 percent increase from the previous year. In North America, an increase in car production and the effect of the weak yen led to an increase in sales to 27.3 billion yen, a 5.9 percent increase from the previous year. Despite of the increase in production volume, due to the increase in labor and other expenses,the operating income totaled 6.3 billion yen, a 1.2 percent decrease from the previous year. In Europe, the bottoming out of the economic slump and the effect of the weak yen led to an increase in sales to 117.9 billion yen, a 2.2 percent increase from the previous year. The operating income totaled 1.7 billion yen, a 26.1 percent decrease from the previous year. In Asia and Oceania, the increase of car production and the effect of the weak yen resulted in sales increase to 231.5 billion yen, a 7.8 percent increase from the previous year. The operating income of 21.4 billion yen, a 1.1 percent decrease from the previous year. In other areas, which mainly refer to the South American region, including countries such as Brazil and Argentina, sales totaled 21.2 billion yen, a 32.2 percent increase from the previous year. The operating income totaled 1. billion yen, a 17.3 percent decrease from the previous year. 6
FY214 1 st Half Financial Forecast (Ratio to Sales) FY14 2Q YTD Revised FY14 2Q YTD Original FY13 2Q YTD 7 / 11 Change Sales before Taxes 1,883. 128. (6.8%) (9.%) 137. (7.3%) (9.9%) 1,973. 178. 195. (7.9%) (7.9%) 1,733.1 136.3 137.4 +239.9 +41.7 +57.6 +13.8% +3.6% +42.% Net (4.6%) 87. (6.9%) 137. (4.5%) 78.1 +58.9 +75.5% (Unit:Millions of Units) Foreign Exchange Rate JPY 9/$ JPY12/Euro JPY 98/$ JPY128/Euro JPY 79/$ JPY11/Euro + JPY 19 +JPY27 Domestic Car Production 4.44 4.54 4.7 -.16-3.4% Overseas Car Car Production of of Japanese Manufacturers (North America) 8.65 (2.73) 8.65 (2.68) 8.3 (2.47) +.35 (+.21) +4.2% (+8.5%) [Forecasts for consolidated half financial results] Considering the first-quarter financial results, we have decided to upwardly revise the original forecasts for the first-half and full-year financial results. We expect sales of 1,973. billion yen and operating income of 178. billion yen. 7
Change in 1 st Half 8 / 11 (Unit: Billion of Yen) 136.3-16. Labor -12. Expense -7. Raw material -3. Depreciation -12.3 Others (Mix) +63. Currency exchange gain +18. Variable reduction +11. Production volume increase 178. FY13 2Q YTD FY14 2Q YTD [Factors that contributed to increases or decreases in full-year forecasts for recurring profit] While negative factors are expected to depress recurring profit by 5.3 billion yen, positive factors boosted recurring profit by 92. billion yen. Therefore, recurring profit is likely to be 178. billion yen, up 41.7 billion yen from the previous year. 8
1 st Half Geographical Segments by Company Location 1,4 9 1,3 8 1,2 7 1,1 6 5 4 3 2 1 1,318. 1,234. +6.8% Sales 228. 173.1 ( ): Local Currency Base +3.3% +31.3% (+8.%) (+6.7%) 463. 395. +31.7% 355.3 3.8 (+5.1%) +33.% (+17.3%) 4. 3.1 FY13 FY14 日本北米欧州豪亜その他 2Q YTD 2Q YTD North Asia & Japan America Europe Oceania Others 11 14 1 13 12 9 11 8 1 7 6 9 5 4 3 2 1 94. [7.6%] 136. [1.3%] +44.7% +1.3% (-14.9%) +121.4% 7. (+75.%) 6.9[1.8%] [2.3%] 1.4 3. [.8%][1.3%] +1.8% (-18.6%) 34.5 33.9 [7.5%] [9.5%] [ ]: Ratio to Sales 2. 1.8 [5.%] [5.8%] FY13 FY14 日本北米欧州豪亜その他 2Q YTD 2Q YTD North Asia & Japan America Europe Oceania Others 9 / 11 +13.9% (-1.%) [Sales and operating income by operating region] * On a local currency basis excluding the effect of foreign exchange rate We expect sales and income in our operating regions to increase in Japan and Europe, but the other regions expect sales to increase, but income to decrease. 9
FY214 Financial Forecast Sales before Taxes Net (Ratio to Sales) FY214 FY214 Original Revised 3,8. 285. (7.5%) (8.6%) 33. (8.%) (9.3%) 194. (5.1%) (6.3%) 3,89. 335. 361. 244. FY213 (7.3%) (7.9%) (5.1%) 3,58.9 262.4 281.9 181.7 1 / 11 Change +39.1 +72.6 +79.1 +62.3 +8.6% +27.7% +28.1% +34.3% (Unit:Millions of Units) Foreign Exchange Rate JPY 9/$ JPY12/Euro JPY 94/$ JPY124/Euro JPY 83/$ JPY17/Euro + JPY11 + JPY17 Domestic Car Production 9.4 9.14 9.13 +.1 +.1% Overseas Car Car Production of of Japanese Manufacturers (North America) 17.69 (5.58) 17.69 (5.54) 16.63 (5.2) +1.6 (.52) +6.4% (+1.4%) [Forecasts for consolidated financial results] We expect sales of 3,89. billion yen and operating income of 335. billion yen. (Foreign exchange rates used for the full-year financial result forecast are: US$= 94yen Euro=124 yen) This forecast is based on car production of Japanese manufacturers 9.14 million in domestic and 16.57 million in Overseas. A 1 yen gain against the U.S. dollar and euro would reduce operating income at DENSO by 2.7 billion yen and.8 billon yen a year. 1
Change in FY214 11 / 11-28. 262.4 Labor -15. Expense -12. Raw material -1.2 Depre -ciation -4.2 Others (Mix) +71. Currency exchange gain +37. Variable reduction (Unit: Billion of Yen) +34. Production volume increase 335. FY13 FY14F [Factors that contributed to increases or decreases in full-year forecasts for recurring profit] While negative factors are expected to depress recurring profit by 69.4 billion yen, positive factors boosted recurring profit by 142. billion yen. Therefore, recurring profit is likely to be 335. billion yen, up 72.6 billion yen from the previous year. 11
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