DENSO Corporation and Toyota Tsusho Corporation (Toyota Tsusho) today announced that TD Mobile Corporation (TD Mobile), which is a joint venture of DENSO and Toyota Tsusho has concluded a company split agreement with a newly established subsidiary (the new subsidiary) of ranet Co.,Ltd. (ranet) in relation to its cell phone sales and agency business (excluding some sales stores). TD Mobile will transfer the above business to the new subsidiary as a result of the company split.
TD mobile was established in April 2009 through the separation and integration of the mobile phone sales business, which had been operated by subsidiaries of DENSO and Toyota Tsusho. Since its establishment, TD mobile operated carrier stores and provided mobile phone solutions to corporate users by leveraging the strengths of the two companies. However, DENSO and Toyota Tsusho have decided that it is more appropriate to pursue further growth in this business under the equity of other companies that already have a business base.
ranet, which is the parent company of the new subsidiary, is engaged in the mobile phone sales business as a member of the BicCamera Group, which is a major electronics and home appliances store. It operates 116 carrier stores (as of June 30, 2023, including subsidiaries) across Japan and sells mobile communication products at over 200 electronics stores of the group. TD mobile aims to expand the carrier store business and the business for corporate users under the BicCamera Group while leveraging mutual synergies, including the network of stores and the sales foundation.
DENSO and Toyota Tsusho will rapidly reinforce their focus fields and domains and contribute to the further development of the mobility-centered society while continuing to transform the business portfolio and improve profitability.
For more information, visit www.denso.com/global/en/news/newsroom/2023/20230710-g01/.
DENSO Corporation accepted the IEEE Corporate Innovation Award during a May 5 ceremony in Atlanta. IEEE,(1) the largest international association for electrical and electronic engineering, awarded DENSO for developing the QR Code(2) and spreading its use globally, enabling the world to benefit from its numerous capabilities.
From left, IEEE President-Elect Thomas Coughlin, DENSO President and CEO Koji Arima, IEEE President Saifur Rahman
The IEEE Corporate Innovation Award, one of the most prestigious technical awards in the world, is presented to organizations that have made a significant global impact with innovative technologies and products and contributed to the development of electrical and electronic engineering.
The QR Code was developed in 1994 by DENSO’s applied equipment engineering group (currently DENSO WAVE) as an easy-to-read code that can store large amounts of information. The innovative two-dimensional code can store about 200 times more information than barcodes and can be read at high speed. DENSO started to use the code mainly for inventory management at its manufacturing plants, and later made the patent available free of charge, allowing it to spread globally. In the early 2000s, the QR Code became more familiar to the general public as the use of mobile phones with cameras grew. Today, it is widely used in many daily life applications, including electronic tickets and cashless payments. In 2020, the QR Code was recognized as an IEEE Milestone(3) for its outstanding contribution to the world.
To help commemorate that the company invented the QR Code nearly 30 years ago, DENSO recently launched a free online game – DENSO QR Code Maze – and created a new webpage on its North America website detailing the QR Code’s history and the IEEE honor.
Guided by its Two Great Causes – Green and Peace of Mind – DENSO remains committed to developing innovative technologies that contribute to society and industry, making for a future that’s green, safe and seamless for all.
*Please refer to the December 2, 2022, press release for award details. www.denso.com/global/en/news/newsroom/2022/20221202-g01
(1) The Institute of Electrical and Electronics Engineers, Inc. Headquartered in the United States, it is the world’s largest engineering academy with more than 400,000 members in more than 160 countries. (2) QR Code is registered trademarks of DENSO WAVE Incorporated. (3) An IEEE Milestone commends a historic achievement which has greatly assisted the development of society and industry in electrical and electronic engineering. 2020/10/07 DENSO receives IEEE Milestone for QR Code www.denso.com/global/en/news/newsroom/2020/201007-g01/
– 2023 IEEE Award Recipients https://corporate-awards.ieee.org/recipients/current-recipients/#recognition-awards
– IEEE Corporate Innovation Award Recipients https://www.ieee.org/content/dam/ieee-org/ieee/web/org/about/awards/recipients/corp-inn-rl.pdf
– Details of the QR Code Video featuring the QR Code https://youtu.be/ieAYPNJq1bA About the QR Code: QR Code.com https://www.qrcode.com/en/ QR Code development story https://www.denso-wave.com/en/technology/vol1.html Website commemorating the 25th anniversary of the development of the QR Code (released in 2019) www.denso-wave.com/qr2019/en/ Proposal for recognition of the QR Code as an IEEE Milestone http://ieeemilestones.ethw.org/Milestone-Proposal:QR_Code
About DENSO CORPORATION
DENSO is a $47.9 billion global 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 its around 200 facilities to produce electrification, powertrain, thermal, mobility electronics, advanced devices to create jobs that directly change how the world moves. The company’s around 165,000 employees are paving the way to a mobility future that improves lives, eliminates traffic accidents, and preserves the environment. Globally headquartered in Kariya, Japan, 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 global DENSO, visit www.denso.com/global.
DENSO Corporation and DENSO Fukushima Corporation today announced that they will start a demonstration project at DENSO Fukushima in March 2023 to produce and use green hydrogen at its plant in collaboration with Toyota Motor Corporation as part of the initiative to realize carbon-neutral manufacturing.(1) Through the demonstration project, the two companies aim to build a model of local production for local consumption of hydrogen and realize carbon-neutral plant.
Overview of the demonstration project
Under the slogan of “Bringing hope for the future for our planet, society, and all people” set out in the Long-term Policy 2030, the DENSO Group has been working to maximize the value proposition in the “Green” and “Peace of Mind” fields. In the “Green” field, it has been making various efforts related to manufacturing, mobility products, and energy use to realize carbon neutrality. To contribute to the realization of a recycling-oriented society in addition to a carbon-neutral society, we are working on the interconnection and integrated control of “The Five Flows,” “Free Movement of People,” “Flow of Goods,” “Energy Utilization,” “Minimization of Resource Requirements,” and “Flow of Data” that supports these flows. In particular, in the “Energy Utilization,” we aim to build an energy circulation system that combines various types of energy such as electricity, hydrogen, and fuel. As part of such efforts, it has been developing technologies to produce and use hydrogen, which is attracting much public attention as a source of clean energy in the future.
Meanwhile, DENSO Fukushima has constructed solar and wind power generation systems on its premises to make its plant carbon neutral. It has worked to replace electricity derived from fossil fuels with renewable energy derived from private power generation. Inspired by the concept of social implementation for the development of future cites using hydrogen and related technologies in Fukushima Prefecture initiated by the Fukushima Prefectural Government and Toyota in June 2021, DENSO and DENSO Fukushima have participated as partner companies in a project to realize carbon-neutral factories by using hydrogen as part of the initiative.
DENSO and DENSO Fukushima will embark on a demonstration project in collaboration with Toyota to produce green hydrogen at DENSO Fukushima’s plant and use the produced hydrogen in the plant gas furnace.
In terms of producing hydrogen, Proton Exchange Membrane (PEM) electrolyzer system equipment developed by Toyota will be introduced to produce hydrogen through the electrolysis of water. Renewable energy derived from private power generation at DENSO Fukushima will be used to produce hydrogen. The PEM electrolyzer system offers high reliability and durability and low initial costs by using the same stack-related components as Toyota’s FCEV “MIRAI,” making it possible to produce hydrogen more cheaply than before.
In terms of using hydrogen, LP gas, which is used in the afterburner furnace(2) to make the exhaust gases generated in the plant harmless, will be replaced by hydrogen produced in-house. Combustion of hydrogen at high temperature generates NOx gas.(3) The burner structure has been improved to achieve gentle mixing and combustion of hydrogen and air. Also the combustion temperature in the furnaces has been lowered by using combustion simulation technology refined in the manufacture of automotive component. Thereby suppressing NOx gas emissions and reducing the energy consumption are accomplished simultaneously.
In addition, in terms of transporting hydrogen, local production for local consumption of hydrogen, which aims to achieve self-consumption of hydrogen produced in-house, will help cut the transport cost, which is one of the issues in utilizing hydrogen.
Through the demonstration project, we will build a model that can optimally introduce the required amount of hydrogen according to the size of the factories by establishing a package from hydrogen production to utilization. The project aims to expand the partnership to promote the use of hydrogen in the Fukushima region, with DENSO Fukushima serving as the hub, and spread the model of local production for local consumption of hydrogen from Fukushima Prefecture to the rest of Japan.
DENSO and DENSO Fukushima will spread the use of hydrogen from Fukushima, aiming to achieve carbon neutrality at the plant and, as a model plant for carbon neutrality in the DENSO Group, accelerate the realization of carbon neutrality in the production activities of the entire DENSO Group and contribute to carbon neutral manufacturing and a carbon neutral society.
(1) This project is supported by the New Energy and Industrial Technology Development Organization (NEDO). (2) The afterburner furnace was developed jointly with Chugai Ro Co., Ltd. (3) Nitrogen dioxides, such as nitrogen monoxide (NO) and nitrogen dioxide (NO2)
About DENSO
DENSO is a $45.1 billion global 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 its 198 facilities to produce electrification system, powertrain system, thermal system, mobility electronics, & advanced devices, to create jobs that directly change how the world moves. The company’s 167,000+ employees are paving the way to a mobility future that improves lives, eliminates traffic accidents, and preserves the environment. Globally headquartered in Kariya, Japan, DENSO spent 9.0 percent of its global consolidated sales on research and development in the fiscal year ending March 31, 2022. For more information about global DENSO, visit https://www.denso.com/global/en/.
For more information, visit www.denso.com/global/en/news/newsroom/2023/20230309-g01/.
DENSO, a leading mobility supplier, today announced global financial results for its third quarter, ending December 31, 2022, for its 2023 fiscal year, ending March 31, 2023:
– Consolidated revenue totaled 4,635.7 billion yen (US$34.6 billion), a 15.6 percent increase from the previous year. – Consolidated operating profit totaled 267.9 billion yen (US$2.0 billion), a 4.6 percent increase from the previous year. – Consolidated profit attributable to owners of the parent company totaled 197.8 billion yen (US$1.5 billion), a 2.3 percent increase from the previous year.
“Revenue in the third quarter increased compared to the previous year due to sales recovery, sales expansion and foreign exchange gains. Operating profit increased compared to the previous year due to sales recovery, exchange gains and profit improvements,” said Yasushi Matsui, CFO, senior executive officer and member of the Board of Directors of DENSO Corporation. “We have revised our revenue and operating profit forecasts for the year based on changing foreign exchange preconditions and current vehicle production losses, adjusting our revenue projection to 6,200.0 billion yen (US$46.3 billion) and our operating profit projection to 420.0 billion yen (US$3.1 billion). Challenging external factors, such as increased costs related to inflation, logistics, energy, materials and parts, have led us to pursue profit improvements, and we are working with customers to reflect this impact in sales prices globally.”
In Japan, revenue increased to 2,691.7 billion yen (US$20.1 billion), up 3.9% from the previous year, and operating profit was 146.7 billion yen (US$1.1 billion), a 1.8% rise from the previous year.
In North America, revenue increased to 1,082.2 billion yen (US$8.1 billion), up 28.4% from the previous year, and operating loss was 15.0 billion yen (US$111.7 million). While revenue increased in the region, DENSO’s North American operations faced difficult economic conditions, such as increased logistics and energy costs, which contributed to the operating loss.
In Europe, revenue increased to 490.7 billion yen (US$3.7 billion), up 20.5% from the previous year, and operating profit was 9.1 billion yen (US$68.1 million), up 173.0% from the previous year.
In Asia, revenue increased to 1,469.5 billion yen (US$11.0 billion), up 24.5% from the previous year and operating profit increased to 113.5 billion yen (US$847.6 million), a 8.1% increase from the previous year.
In other areas, revenue increased to 76.8 billion yen (US$0.6 billion), up 42.7% from the previous year, and operating profit increased to 15.4 billion yen (US$115.2 million), up 32.3% from the previous year.
For more information, visit www.denso.com/global/en/news/newsroom/2023/20230203-g01/.
DENSO, a leading mobility supplier, has hosted its annual Dialog Day on December 15th. Aiming to enhance its concepts “Green” and “Peace of Mind” to realize what the company calls a “well-being cycle society,” DENSO has announced its sustainability management strategy that contributes to a sustainable society, its corporate value improvement strategy to strengthen the corporate foundation which supports the creation of values, and “The Five Flows,” which is DENSO’s unique approach to the “2035 Vision.”
“Over the past 10 years, DENSO has allocated a total of approximately 8 trillion yen in research and development and capital expenditures for future investments. DENSO has also been investing in human resources, which can be seen through the large increase of employees worldwide, from 130,000 to 170,000. As a result, the company expects to reach a new record in sales and operating income. On the other hand, as global environmental issues, food shortages, and resource shortages become more serious, we often ask ourselves, “what more can we do to contribute to people’s well-being?” said Koji Arima, President, and CEO of DENSO Corporation. “To date, DENSO has been striving to create a ‘cycle of well-being’ by growing and developing together with everyone in the automotive industry. As part of our efforts to expand this cycle of well-being from mobility to broader society, we have focused on “The Five Flows,” which are: Free Movement of People, Flow of Goods, Energy Utilization, Minimization of Resource Requirements, and Flow of Data. DENSO will work to realize a “well-being cycle society” in which happiness can circulate more widely by interconnecting and integrally controlling “The Five Flows.” Furthermore, DENSO will make future investments of 10 trillion yen over the next 10 years. As top management, I will seek partners who share our ‘2035 Vision’ while enhancing our ability to achieve it.”
Technological Developments towards the World in 2035
To realize a recycling-oriented society that never stops social activities and responds to diverse values and well-being, DENSO will work on “The Five Flows.”
Initiatives for the Free Movement of People and the Flow of Goods for Safe and Valuable Mobility
– Free Movement of People Aiming to eliminate fatalities from traffic accidents, DENSO will expand the scope of support to include everyday driving. DENSO has developed algorithms that support safe driving by integrating not only the vehicle’s surroundings, but also the driver’s condition, skills, and driving tendencies. This will realize a higher level of safety. In addition, to realize mobility that responds to diverse values, DENSO will develop an electronic platform that updates vehicle functions following the values sought by individuals.
– Flow of Goods To solve social issues such as driver shortages and increased cargo volumes, DENSO intends to realize a logistics system that combines automated driving and advanced operating systems. The advanced operating system will embark on efforts to eliminate long-hour operations and empty cargo on return trips in trunk routes, and eventually utilize quantum computing to optimize teams, goods, and time in logistics as a whole.
Initiatives for Energy Utilization and Minimization of Resource Requirements for Eco-Friendly Monozukuri
– Energy Utilization DENSO will build an energy circulation system that combines various types of energy such as electricity, hydrogen, and fuels, aiming to realize carbon neutrality in monozukuri, or the art of making things. In addition, DENSO has started demonstrating this system at its factory and will expand it to other industries and regions.
– Minimization of Resource Requirements To sustainably manufacture products with limited resources and minimize environmental impacts, DENSO will build an ecosystem for car manufacturing in which car resources are recycled in cooperation with various partners and industries, enabling the collection of discarded products and their reintroduction as recycled products. DENSO will progress with the development of new disassembly methods and materials to achieve low-cost, high-efficiency recycling.
Initiatives to Join Flows Together to Maximize Value
– Flow of Data We will build a standard data platform that connects supply chains with data and apply it to battery traceability systems for electric vehicles. DENSO will also provide new values by connecting all data generated from “The Five Flows” in the lifecycle of mobility. Furthermore, DENSO will realize a world where new cars are reborn from old cars.
– Strategies for Enhancing Corporate Value Through the initiatives of Green and Peace of Mind, DENSO will promote sustainability management that leads to solutions to social issues, and work on financial strategies to improve Return on Equity (ROE) to achieve business growth.
Promoting Sustainability Management
– The Progress of Green and Peace of Mind Strategies DENSO is making steady progress in efforts to maximize the values of Green and Peace of Mind. In order to achieve carbon neutrality by 2035, DENSO has achieved sales of 550 billion yen in the electrification field, and has been improving the cumulative number of inverters produced, and is working to develop technologies to recycle and repurpose CO2. In addition, sales in the advanced driver assistance systems (ADAS) field have reached 320 billion yen, and the introduction of thermal management systems for battery EVs is progressing, accelerating the safety strategy to deliver peace of mind to society.
– Strengthening the Corporate Foundation DENSO has established various sustainability key performance indicators (KPIs) corresponding to materiality. In addition to establishing KPIs for a thriving, diverse workforce such as the ratio of female managers and the ratio of local human resources among the heads of overseas bases, we have introduced some of these KPIs into the evaluation of executive compensation.
Financial Strategies to Improve ROE
– Growth Strategies that Balance Both Philosophy and Profitability DENSO will further accelerate the transformation of its business portfolio to eliminate CO2 emissions and eliminate traffic fatalities and increase profitability. While promoting convergence in products for internal combustion engines, DENSO will expand CASE areas and new businesses, aiming for sales of 7 trillion yen in growth areas in 2035. In the electrification sector, DENSO aims to achieve annual production of 19 million inverters in 2030, which will also contribute to the expansion of battery EVs. In addition, for semiconductors that support electrification and ADAS, DENSO will strengthen in-house development and strategic collaboration with competitive partners. Over the next 3 years, DENSO aims to invest 250 billion yen in the semiconductor field.
– Resource Strategies DENSO will shift its resources to CASE areas, including semiconductors while reducing capital expenditures mainly in mechanical and hardware for products of internal combustion engines. DENSO will also focus on software development, targeting a research and development expenditure of 450 billion yen and a capital expenditure of 350 billion yen by 2025.
– Improvement of Capital Structure and Shareholder Return Policy With a target of a shareholders’ equity ratio of 50% or more, DENSO will improve its capital structure to achieve both efficiency and safety and improve ROE. In 2021, DENSO has raised its dividend standard to a dividend on equity (DOE) of 3.1%, and will continue to improve the level of dividends in a stable manner over the long term with an awareness of the cost of shareholders’ equity.
About DENSO
DENSO is a $45.1 billion global 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 its 198 facilities to produce electrification system, powertrain system, thermal system, mobility electronics, & advanced devices, to create jobs that directly change how the world moves. The company’s 167,000+ employees are paving the way to a mobility future that improves lives, eliminates traffic accidents, and preserves the environment. Globally headquartered in Kariya, Japan, DENSO spent 9.0 percent of its global consolidated sales on research and development in the fiscal year ending March 31, 2022. For more information about global DENSO, visit www.denso.com/global/en/.
