1. NA Market: Sales and Production Footprint
Management Briefing Seminars
Tuesday, August 1, 2017
DENISE CARLSON
Vice President
North America Production Innovation Center
DENSO International America

2. Humble Beginnings and a Few Mistakes
Our environmental consciousness
was awoken early in our heritage

3. DENSO: We Make Everything
Powertrain Control System
Engine management system, Gasoline direct injection, Starter, Alternator, etc.
Electrification Systems
Hybrid and electric vehicle components, inverter, DC/DC converter, motor generator, relays, 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.

4. SUBSIDIARIES & AFFILIATES
Global Supplier of Advanced Automotive Technology, Systems and Components with $40.4 Billion in Sales
(For fiscal year ending March 31, 2017)
EMPLOYING MORE THAN
MORE THAN IN
200 36
154,000
SUBSIDIARIES & AFFILIATES
COUNTRIES & REGIONS
PEOPLE WORLDWIDE

5. DENSO in North America with $9.6 Billion in Sales32
WITH 28
24,000
COMPANIES & AFFILIATES
MANUFACTURING
LOCATIONS
EMPLOYEES

6. DENSO’s societal responsibility must be equal or greater than our business size and scope.

7. Once-in-a-Century Shift
Connected Vehicles
Vehicle Sharing
Autonomous Driving
Electrification
Paradigm Shift
Facing drastic structural changes:
Competition with non-traditional competitors
in non-traditional fields

8. Business Environment – Mega Trends/Paradigm Changes
New flow design
Business Environment – Mega Trends/Paradigm Changes
MIN CO2 → ZERO CO2
Recycling societies by renewable energy
VEHICLE → SOCIETY
Lifecycle solutions
OWNER → PUBLIC
Minimize vehicle volume by public services
（Source : Signs Report 2017)
Mega Trends (years to )
Mobility Paradigm Changes
EARLIER ASSUMPTIONS
Urbanization, demographic aging
Global warming and air pollution
Conventional Values
Mobility Value
Automated Drive (owner)
HEMS
Smart grid
Intelligent
IoT
Traffic congestion and accidents
ADAS
New leaps in information and intelligent technologies
Concierge/
agent service
Monitoring support
Customization
NEW ASSUMPTIONS
Luxury car for car lovers
New industrial revolution based on Smart factories
Shift to use
Car sharing, personal mobility
(seniors, children)
AD car-sharing
Autonomous driving
Continuing shift to service economy
Fleet/ compact car
Shift
to use
Driverless transportation services
New Values
Shift
to use
Bad road running performance
Entry car ($5,000)
Expansion of middle income
Driverless logistics
Further diversification in values, consumption patterns
B to C (for end-users)
TARGET
B to B (for businesses/societies)

9. How to transform and make changes so we can be successful in short and long term
Making good decisions no matter if the forecast changes

10. Decisions Driven by Four Key Areas
Technology
Places
People
Partnerships

11. Decisions Driven by Technology: Focus For Future Mobility
Connected
Automated Driving
F-IoT
Electrification

12. Decisions Driven by Technology
Thermal Systems
Powertrain Systems
Electrification Systems
Information & Safety

13. Decisions Driven By Technology: F-IoT
Efficient Plants
Faster & more continually operating production
Rationalization of logistics & inspections
Competitive Monozukuri
“DANTOTSU plants”
Expand to 130 factories worldwide
F-IoT connects the world
FY2021　
Significantly UP in Productivity （vs FY2016) ×
Creating more-compact facilities (1/N)
Various production lines
Electrification Technology and Knowledge
Robots
Inspection
Logistics
Automated Production Lines
IoT 検査 写真
ライン写真
IOT写真

14. Future DENSO Business Growth in North America
Info & Safety will be a driving force for DENSO business growth

15. Decisions Driven By Locations: Global and North America
Mindset Change
Not only will we make decisions based on customer location, we will make decisions based on innovations and skillset
Recent Announcement
DENSO will invest $75.5 million to fuel technology development at regional headquarters

16. Need the right people, with the right skills, at right place at the right time doing the right thing.

17. Decisions Driven by People
Skilled Trades
Engineering
NEW: Customer Service

18. Decisions Driven by Partnerships
High Tech Companies
Universities
Sony
Morpho
Toshiba
Fujitsu Ten
ThinCi
TriLumina
Lemnos Labs
Peleton
Next Energy
Carenegie Mellon
MIT
University of Michigan
Iowa State
University of California- Berkley

19. BILLION IN ANNUAL REVENUE ACTIVE PATENTS WORLDWIDE
Humble, Yet Bold.
$40.4 9%
38,000
BILLION IN ANNUAL REVENUE
REVENUE in R&D
ACTIVE PATENTS WORLDWIDE