Japan – DENSO Announces Second Quarter Financial Results

DENSO, a leading mobility supplier, today announced global financial results for its second quarter, ending September 30, 2023, for its 2024 fiscal year, ending March 31, 2024:

  • Consolidated revenue totaled 3,513.5 billion yen (US$23.5 billion), a 16.3 percent increase from the previous year.
  • Consolidated operating profit totaled 211.8 billion yen (US$1.4 billion), a 36.3 percent increase from the previous year.
  • Consolidated profit attributable to owners of the parent company totaled 168.9 billion yen(US$1.1billion), a 59.7 percent increase from the previous year.

“Revenue in the second quarter increased compared to the previous year due to the strong vehicle sales mainly in Japan and North America, foreign exchange gains and expansion of products for electrification, safety and peace of mind areas though decrease of Japanese, European, and American vehicle sales in China. Operating profit in the second quarter increased compared to the previous year due to production volume, foreign exchange gains and improvement, though the continuing rise in the cost of materials, especially electronic components, and the accelerating investment for future as R&D.” said Yasushi Matsui, CFO, Vice President and member of the Board of Directors of DENSO CORPORATION. “In this fiscal year, we forecast 7,000.0 billion yen (US$46.8 billion) in revenue and 630.0 billion yen (US$4.2 billion) in operating profit. Revenue and operating profit will be based on strong sales actuals in the first half and forecast of foreign exchange gains and sales expansions in the third quarter. The annual dividends for the end of the fiscal year will be 52 yen, a 2 yen increase from the previous announcement. This means 208 yen as pre-stock split conversion. We will continue to improve DOE levels over the long term and in a stable manner.”

In Japan, revenue increased to 2061.2 billion yen (US$13.8 billion), up 18.5% from the previous year, and operating profit was 85.2 billion yen (US$569.5 million), down 6.4% from the previous year.

In North America, revenue increased to 856.6 billion yen (US$5.7 billion), up 19.8% from the previous year, and operating profit was 14.2 billion yen (US$94.8 million) (Operating loss of 13.0 billion yen in the same quarter of the previous year).

In Europe, revenue increased to 372.8 billion yen (US$2.5 billion), up 15.8% from the previous year, and operating profit was 13.9 billion yen (US$92.8 million), up 285.0% from the previous year.

In Asia, revenue increased to 974.0 billion yen (US$6.5 billion), up 1.4% from the previous year and operating profit was 88.2 billion yen (US$589.6 million), up 30.9% from the previous year.

In other areas, revenue increased to 60.3 billion yen (US$0.4 billion), up 12.4% from the previous year, and operating profit was 11.5 billion yen (US$76.9 million), up 0.8% from the previous year.

(Notes)The above forecasts are created based on information obtained by the date of this announcement and the actual results may differ due to various causes in the future. U.S. dollar amounts have been translated, for convenience only, at the rate of 149.58 yen = US$1, the approximate exchange rate prevailing in the Tokyo Foreign Exchange Market on September 29, 2023. Billion is used in the American sense of one thousand million. Foreign exchange rates of the Forecast for Fiscal Year Ending March 31, 2024, as a precondition are US$= 140.5 yen, Euro= 151.7 yen, CNY=19.6 yen.

About DENSO CORPORATION

Globally headquartered in Kariya, Japan, DENSO is a $47.9 billion leading mobility supplier that develops advanced technology and components for nearly every vehicle make and model on the road today. With manufacturing at its core, DENSO invests in around 200 facilities worldwide to provide opportunities for rewarding careers and to produce cutting-edge electrification, powertrain, thermal and mobility electronics products, among others, that change how the world moves. In developing such solutions, the company’s 165,000 global employees are paving the way to a mobility future that improves lives, eliminates traffic accidents, and preserves the environment. DENSO spent around 9.0 percent of its global consolidated sales on research and development in the fiscal year ending March 31, 2023. For more information about DENSO’s operations worldwide, visit https://www.denso.com/global.

Copyright ©2023 JCN Newswire. All rights reserved. A division of Japan Corporate News Network.

Shinnnouke Hayashi, President and COO of DENSO CORPORATION said that it is a great pleasure that the Tokyo Motor Show, which has attracted much public attention for decades, has been renamed the JAPAN MOBILITY SHOW. This change reflects the fact that we are entering an era of creating new value by addressing various issues from the viewpoint of a mobility-centered society instead of just vehicles and by connecting people and technologies across industries. This means that we must meet major challenges.

To evolve from “a Tier 1 supplier that supports the auto industry “to “a Tier 1 supplier that supports a mobility-centered society” to create value for more diverse customers, we address three intiatives. To promote these three initiatives, we will recruit new employees in the electrification and software field and actively shift our employees from the mature field to the electrification and software fields and strengthen about 4,000 employees during the four years from 2022 to 2025.

The contribution to the “evolution of mobility”

In the “Green” field, “the environment”, in addition to our product lineup in the “horizontal” direction to enable installation in HEVs, PHEVs, BEVs, and FCEVs, the lineup will be expanded in the “vertical” direction ranging from large systems, which link electrification products with energy management, to components, including power modules, thereby meeting the needs of various customers as BEVs proliferate and helping to achieve carbon neutrality in respective countries.

In the “Peace of Mind” field, “worry-free society”, in addition to around-vehicle monitoring systems, we will focus on driver status monitoring systems and cloud-based large systems, which connect with the social infrastructure. Through these efforts, we will help eliminate fatalities.

Furthermore, we will extend our commitment to the evolution of mobility to the sky to help realize more freedom of traveling and expand the possibilities of mobility.

The challenge to “to create new value”

We have been studying the possibility of developing and commercializing many technologies in non-mobility fields, including energy, food and agriculture, and the circular economy. Specifically, we plan to market energy system products such as Solid Oxide Electrolysis Cell*¹ and Solid Oxide Fuel Cell*² in 2024 and beyond.

Strengthening semiconductors and software

In terms of semiconductors, we will actively invest about 500 billion yen by 2030. We will triple the scale of the business from the current level by 2035. To expand production, we must ensure stable procurement of materials. Thus, we will forge strategic partnerships with various companies.

In the softaware field, the implementation phase to embody concepts, we will accelerate the planning of electronic platform and over-the-air technology development based on user needs while strengthening partnerships with various customers and promote integrated development across companies. We will increase the number of software engineers and improve their skills and integrate two group companies which have excellent proprietary technologies, into DENSO. One is NSITEXE, which specializes in the semiconductor intellectual property, and the other is AUBASS, which specializes in developing basic in-vehicle software. We will double the speed of development by applying specialized AI, which incorporates our knowledge and experience gained through in-vehicle software.

You can check images and full speech draft of the press conference:
www.denso.com/global/en/about-us/corporate-info/press-info/

(1) SOEC (Solid Oxide Electrolysis Cell): Fuel cells that generate electricity and heat through a chemical reaction between hydrogen and other fuels and oxygen.
(2) SOFC(Solid Oxide Fuel Cell): Equipment that operates at high temperatures using ceramic membranes as electrolytes to electrolyze water vapor and produce hydrogen.

About DENSO CORPORATION

Globally headquartered in Kariya, Japan, DENSO is a $47.9 billion leading mobility supplier that develops advanced technology and components for nearly every vehicle make and model on the road today. With manufacturing at its core, DENSO invests in around 200 facilities worldwide to provide opportunities for rewarding careers and to produce cutting-edge electrification, powertrain, thermal and mobility electronics products, among others, that change how the world moves. In developing such solutions, the company’s 165,000 global employees are paving the way to a mobility future that improves lives, eliminates traffic accidents, and preserves the environment. DENSO spent around 9.0 percent of its global consolidated sales on research and development in the fiscal year ending March 31, 2023. For more information about DENSO’s operations worldwide, visit https://www.denso.com/global. 

Japan – DENSO Launches “Everycool,” a Commercial Vehicle Cooling System for Trucks that Improves Cooling Efficiency and Reduces Environmental Impact

DENSO CORPORATION has announced that it has developed “Everycool,” an advanced cooling system that provides comfort and energy efficiency when a commercial vehicle’s engine is off. This product will be available for purchase starting December(1) of this year in Japan through DENSO SOLUTION CORPORATION.

Everycool

DENSO is committed to realizing a “well-being cycle society” for the future in 2035 – a society filled with people’s smiles by connecting and harmonizing “The Five Flows”: “Free Movement of People,” “Flow of Goods,” “Energy Utilization,” “Minimization of Resource Requirements,” and the “Flow of Data.” In the realm of “Flow of Goods,” DENSO is focused on addressing challenges within the logistics industry, such as improving working conditions for truck drivers and achieving efficient energy utilization.

The newly developed “Everycool” by DENSO is a cooling system that can be used when a truck’s engine is not running. It achieves the dual objectives of improving driver working conditions during hot summer seasons and reducing environmental impact and promoting efficient energy utilization by lowering fuel consumption.

Key Features of Everycool

Comfort and Energy Efficiency Combined:
“Everycool” leverages DENSO’s expertise in air conditioning technology, directing cool air intensively towards the driver, enhancing comfort. Compared to traditional cabin-wide cooling systems in Japan, it reduces power consumption by approximately 57%,(2) achieving energy efficiency. As a result, it can be powered using the standard vehicle battery.

Compact and Lightweight:
Unlike conventional cooling systems that had separate indoor and outdoor fans for heat exchange, “Everycool” integrates the fan, enabling a single unit to perform the entire heat exchange. Additionally, it features a small electric compressor specially developed using in-vehicle technology. These two innovations result in a reduction of approximately 30% in size*2 and approximately 63% in weight(2) compared to conventional cooling systems in Japan. This compact design contributes to ensuring cabin space for drivers, enhancing the quality of their rest breaks, and supporting safe and efficient operations. Furthermore, its lightweight design minimally affects the cargo capacity, contributing to the maintenance of delivery efficiency.

Compatibility with a Wide Range of Vehicle Types:
The smaller size of “Everycool” compared to traditional cooling systems allows for installation without obstructing the rear window’s(3) visibility, making it suitable for a variety of vehicle types, including not only large trucks but also medium-sized trucks, and tractor-trailers. It can be installed in both new and existing vehicles.

DENSO will continue to address challenges within the logistics industry and strive to provide new value that benefits society.

(1) Starting from December 2023, “Everycool” will be available for sale for certain large trucks. Sales for other vehicle models are planned for 2024 and beyond.
(2) The average value calculated from stationary air conditioners currently available on the market (according to DENSO’s research).
(3) Rear Window: The window located at the rear of the vehicle, responsible for ensuring rearward visibility.

Copyright ©2023 JCN Newswire. All rights reserved. A division of Japan Corporate News Network.

DENSO Announces Organization and Personnel Changes

DENSO, a leading mobility supplier, today announced changes to its organization and personnel, effective September 1, 2023.
About DENSO

Globally headquartered in Kariya, Japan, DENSO is a $47.9 billion leading mobility supplier that develops advanced technology and components for nearly every vehicle make and model on the road today. With manufacturing at its core, DENSO invests in around 200 facilities worldwide to provide opportunities for rewarding careers and to produce cutting-edge electrification, powertrain, thermal and mobility electronics products, among others, that change how the world moves. In developing such solutions, the company’s 165,000 global employees are paving the way to a mobility future that improves lives, eliminates traffic accidents, and preserves the environment. DENSO spent around 9.0 percent of its global consolidated sales on research and development in the fiscal year ending March 31, 2023. For more information about DENSO’s operations worldwide, visit www.denso.com/global/en/.

For more information, visit www.denso.com/global/en/-/media/secure-news/global/en/news/news-releases/2023/20230831-g01news.pdf.


Topic: Press release summary

Japan – DENSO to Exhibit at IAA Mobility 2023 in Munich

DENSO Corporation today announced that it will exhibit at the IAA Mobility 2023 to be held in Munich, Germany, September 5-10.

DENSO Exhibition Stand, Munich Exhibition Center (Hall A2 – D21)

DENSO will showcase the concepts of “Green” and “Peace of Mind” and DENSO’s unique approach to the ?2035 Vision?.

On the 4th of September recently-appointed DENSO President and COO Shinnosuke Hayashi will make his first European public appearance and speaking engagement during a press event at the DENSO exhibition stand.

DENSO Press Event
Date and time: 4 September 2023, 14:20 to 14:40 CEST
Location: DENSO Exhibition Stand, Munich Exhibition Center (Hall A2 — D21)
Presenters: Shinnosuke Hayashi, President and COO of DENSO Corporation Yasushi Mukai, President and CEO, DENSO International Europe

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