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Learn about DENSO's achievements in 2017, including 50th anniversary of DENSO Robotics, investments in Maryville, TN plant, and growth in production lines for advanced automotive products. Get insights on DENSO's global operations, technologies, and partnerships for future systems development.
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2017 AAPEX NEWS CONFERENCE • NOVEMBER 1, 2017
HARUHIKO “HAL” KATOPRESIDENTDENSO PRODUCTS AND SERVICES AMERICAS, INC.
2017 – A Milestone Year for DENSO 50th Anniversary of DENSO Robotics 20th Anniversary of DENSO Iridium Spark Plugs 60th Anniversary of DENSO Spark Plugs
10 14 11 9 3 5 16 7 4 6 8 2 15 12 13 1 DENSO Operations in North America 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Production Companies Others *As of March 31, 2016
New OES Sales Office in Plano, TX • Established July 11, 2017 • To support growing OE and dealer network presence in the region
DENSO $1 Billion Investment Maryville, TN Plant • DENSO is making a $1 billion investment in our Maryville, Tennessee location • Will create 1,000 NEW production and support jobs, including technicians and engineers. • Expand multiple production lines to produce advanced safety, connectivity and electrification products– radar components, EV inverters and data control modules
JOE MEJALYSENIOR VICE PRESIDENTDENSO PRODUCTS AND SERVICES AMERICAS, INC.
ENVIRONMENT AT A GLANCE SAFETY 68 YEARS OF DENSO Corporation is one of the largest Automotive suppliers in the world. COMFORT CONVEINIENCE GLOBAL HQ KARIYA, JAPAN 38 COUNTRIES AND REGIONS SERVING CUSTOMERS FOUR KEY FOCUS AREAS SALES & INVESTMENT PEOPLE PEOPLE $9.6B 22,513 $40.4B $3.6B NORTH AMERICA EMPLOYEES 151,755 FY2016 GLOBAL INVESMENT IN R&D DENSO LEADS THE INDUSTRY IN R&D INVESMENT GLOBAL EMPLOYEES FY2016 FY2016 GLOBAL REVENUE FY2016 NORTH AMERICA REVENUE COMMERCIAL & HEAVY DUTY BUSINESS AWARDS AWARDS 15 $2.4B AFTERMARKET COMMERCIAL & HEAVY DUTY PRODUCT LINES JD POWER & ASSOCIATES CHAIRMAN’S AWARD ISO9000/14000 CERTIFIED DEMMING PRIZE FOR QUALITY FY2016 GLOBAL COMMERCIAL & HEAVY DUTY SALES PRODUCTS Powertrain Systems Communications Thermal Systems INVENTOR OF THE QR CODE Safety Systems PowerEdge™ STARTER & ALTERNATOR AUTOMOTIVE OE & AFTERMARKET PORTABLE A/C AUTOMATIC DATA CAPTURE ROBOTICS HEAVY DUTY OE & AFTERMARKET
OEM Automotive Products 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.
Aftermarket Products for North America Heavy Duty Aftermarket AutomaticData Tracking PortableCooling Automotive Aftermarket Robotics
Once-in-a-Century Shift Electrification Autonomous Driving Vehicle Sharing Connected Vehicles Paradigm Shift Facing drastic structural changes: Competition with non-traditional competitors in non-traditional fields
DENSO and its Partners for Future Systems Development* Safety iOT, ArtificialIntelligence Electrification Autonomous Driving Vehicle Sharing Structural Technologies ToyotaMazda DENSO Electric CarSharing University of Michigan Dearborn NextEnergy DENSO Image Recognition, AI Software Toshiba Imagination Carnegie- Mellon DENSO Intelligent Drive/V2X/GPS Ericsson, Intel NIT NTT Docomo Toyota, Toyota Infotech NEC, THINCI, Hitachi Zosen Hitachi Automotive Systems Japan Radio Development Bank of Japan DENSO SafetySystem Technologies University of Michigan Ann Arbor DENSO Lithium-ion Batteries Suzuki Toshiba DENSO iOT, AI Mfg NEC DENSO * Partial list of alliances/partnerships
2017 CES DEMO: DENSO Touchless Human Machine Interface (HMI) • DESIGNED TO REDUCE DRIVER DISTRACTIONS • Gesture control system uses sensors to track eye and head movements • Enables drive to make decisions in the vehicle without having to take your hands off the wheel • Glance at onscreen temperature/stereo volume function to select and adjust • Nod your head to select/confirm
2017 CES Demonstration: HOLOGRAPHIC HAPTIC CONTROLLER TECHNOLOGY • System uses light to project holograms and ultrasonic sound waves to create haptic feedback • User controls vehicle systems mid-air simulating pressing a button
Market Structure change: VIO – Impact of Powertrain Profile on Aftermarket business Source: IHS Forecast, DPAM internal estimates • VIO forecast: steady growth from 283.7M to 329.5M (16% increase) • EV and Hybrid growth from 2020 fueled by declining battery costs and government subsidies • EV and Hybrid cars combined will be 20% of VIO by 2030 • Gasoline cars decline only by 3% in terms of units from 2018 through 2025 • Gasoline cars will still be 75% of total VIO in 2030, at close to 200M units (95% of 2017 volume) • Implication: strong market for both traditional Aftermarket parts and new technology Aftermarket parts
Supporting Aftermarket B2B Customer Needs Online • Aftermarket Customer support (B2B): • 92.7% of B2B transactions are handled electronically (EDI & DENSOConnect.com) • DENSOconnect.com: 24/7 on-demand, online access to pricing, catalogs, ordering, sales, warranty, technical information, etc. • Improved Return Goods Authorization (RGA) processlaunching later this year
Social Media Support– Partner Highlights on Facebook & Instagram • Nine partners highlighted on Facebook, Instagram and Twitter in 2017; will expand in 2018 • 170,000 highly-targeted potential customers reached • Geo-targeted for regional partners • Strong engagement (likes & comments)
Supporting Customer Cataloging and e-Retailing Needs:Investment in 360 degree product photography
Additional Initiatives to improve Customer Satisfaction • Direct sales force increased from 15 to 25 sales managers • Conducting annual customer satisfaction surveys • Extended Helpline Service Hours: 8 am to 8 pm EST
Supporting Customer Training Needs: • DENSO Automotive Technical Academy • E-Learning, Online, On-Demand Technical Training • Key Industry Training Issues: • Industry-wide shortage of technicians • Millennials can’t relate to traditional training methods • DENSO Automotive Technical Academy features: • Latest gaming technology & HD Graphics • Over 1,400 interactive training modules • 100 Hybrid & EV training modules • Apprentice to master tech • Multiple languages with Speech-to-Text option • Available on a subscription basis– Jan 2018
Continuing sponsorship of the NHRA DENSO & NHRA Partnership In 2017! • Highly successful season-- DENSO continues to rack up the wins • Title rights sponsor of the 2018 DENSO NHRA Las Vegas Nationals (April 2018) • New 4-wide format for 2018 • Best fan experience in racing • A perfect fit for DENSO page 27
SUMMARY • Paradigms are shifting-- DENSO is ready to craft a new path towards the future • DENSO exists in both the OEM and Aftermarket realms– we will leverage this position • New technology will flow from OE to Aftermarket, and we will be there to lead • Customer shopping behavior is also evolving and DENSO is committed to servicing the needs of our B2B customers