DENSO and Toshiba to Collaborate on IoT-based Manufacturing, Advanced Driver Assistance, Automated Driving, and Others

KARIYA, TOKYO (Japan) – DENSO Corporation and Toshiba Corporation today announced that the two companies have begun talks to enhance collaborations in the fields of Internet of Things (IoT)-based manufacturing, advanced driver assistance, automated driving, and others.

The collaborations aim to combine DENSO’s high level of technology and manufacturing capability accumulated through its experience in the automotive market and Toshiba’s image recognition, IoT, artificial intelligence (AI), and software development technologies, in order to increase the competitiveness to make it through the paradigm shift that is taking place in the automotive industry.

In the fields of advanced driver assistance and automated driving, DENSO and Toshiba have jointly developed AI technologies used in image recognition systems. Moreover, the two companies have worked together in a wide range of areas including the development of automotive lithium-ion battery packs and software for ECUs used in automotive components.

DENSO and Toshiba will collaborate more closely in fields where they can share their visions and speed up the development of technology.

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DENSO Announces Year-end Financial Results

DENSO Corporation today announced its global financial results for the fiscal year ending March 31, 2017:

  • Consolidated revenue totaled 4,527.1 billion yen (US$40.4 billion), a 0.1 percent increase from the previous year.
  • Consolidated operating profit totaled 330.6 billion yen (US$2.9 billion), an 4.7 percent increase from the previous year.
  • Consolidated profit attributable to owners of the parent company totaled 257.6 billion yen (US$2.3 billion), a 5.5 percent increase from the previous year.

“Despite the appreciation of the yen, DENSO’s revenue increased due to production volume increase and sales expansion. Despite the appreciation of the yen, operating profit increased due to the production volume, cost reduction efforts and improved other income /expenses.” said Koji Arima, president and CEO of DENSO Corporation.

In Japan, the production volume increase led to an increase in revenue to 2,686.0 billion yen (US$23.9 billion), a 1.5 percent increase from the previous year. Despite the production volume increase and cost reduction effort, the impact of the exchange rate of export sales led to an operating profit of 130.2 billion yen (US$1.2 billion), a 15.8 percent decrease from the previous year.

In North America, despite an increase in car production and sales expansion, boosted by the steady economic growth, impact of exchange rate led to a decrease in revenue to 1,077.2 billion yen (US$9.6 billion), a 3.2 percent decrease from the previous year. As a result of the increase in production volume, the operating profit totaled 60.0 billion yen (US$534.4 million), a 25.7 percent increase from the previous year.

In Europe, despite car production increase and sales expansion due to the recovery of the market, impact of exchange rate led to a decrease in revenue to 577.3 billion yen (US$5.1 billion), a 2.7 percent decrease from the previous year. As a result of the increase in production volume, the operating profit totaled to 20.2 billion yen (US$179.8 million), a 39.9 percent increase from the previous year.

In Asia, despite the increase of car production and sales expansion, impact of exchange rate resulted in a revenue decrease of 1,139.3 billion yen (US$10.2 billion), an 1.9 percent decrease from the previous year. As a result of the increase in production volume, the operating profit totaled 112.7 billion yen (US$1.0 billion), a 16.7 percent increase from the previous year.

In other areas, mainly the South American region, including Brazil and Argentina, revenue totaled 65.8 billion yen (US$586.6 million), a 10.6 percent increase from the previous year. The operating profit totaled 6.9 billion yen (US$61.4 million).

“For the new fiscal year, revenue will increase due to the increase of car production and sales expansion, despite the increase of car production and sales expansion , the operating profit will decrease due to impact of the other income /expenses. ” said Arima.

(Foreign exchange rates used for the full-year are: US$= 110 yen, Euro= 115 yen)

Forecast for Fiscal Year Ending March 31, 2018

Full-Year Forecast Changes from Previous FY
Revenue 4,610.0 billion yen
[US$41.1 billion]
82.9 billion yen
(1.8 percent)
Operating profit 327.0 billion yen
[US$2.9 billion]
-3.6 billion yen
(-1.1 percent)
Profit before income taxes 360.0 billion yen
[US$3.2 billion]
-0.9 billion yen
(-0.2 percent)
Profit attributable to owners of the parent company 260.0 billion yen
[US$2.3 billion]
2.4 billion yen
(0.9 percent)

(Notes)

The above forecasts are created based on the 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 112.19 yen = US$1, the approximate exchange rate prevailing in the Tokyo Foreign Exchange Market March 31, 2017. Billion is used in the American sense of one thousand million.

DENSO and IBIDEN to Collaborate on Developing Powertrains

KARIYA (Japan) ― Global automotive supplier DENSO Corporation and electronics and ceramics company IBIDEN Co., Ltd. have today formed a capital and business alliance to jointly develop the next-generation vehicle exhaust system. This collaboration will combine IBIDEN’s advantages in high-performance ceramic materials with DENSO’s advantages in developing products as systems to synergistically develop high-performance yet simple and low-cost vehicle exhaust systems. DENSO will acquire the treasury stock of IBIDEN through a third-party allocation. In addition, to respond to an increasingly diverse range of powertrains, DENSO and IBIDEN will consider collaboration in the area of vehicle electrification to make vehicle electrification more efficient.

As international regulations on vehicle exhaust emissions become more strict, internal combustion engines must be more efficient and the exhaust systems improved. This capital and business alliance will enable the two companies to pool their accumulated technological strengths to speed up the development of high-performance vehicle exhaust systems for internal combustion engines, including gasoline, diesel, hybrid, and plug-in hybrid engines.

DENSO has developed and provided systems components to better control the intake, power, and exhaust events in the operating cycle of gasoline and diesel engines. Meanwhile, IBIDEN has focused on its ceramic business and developed high-performance ceramic materials, such as for diesel particulate filters (DPF), for the exhaust system of diesel engines.

The two companies will develop eco-friendly products that improve fuel efficiency and reduce exhaust emissions, thus helping to preserve the global environment.

About DENSO Corporation

DENSO Corp., headquartered in Kariya, Aichi prefecture, Japan, is a leading global automotive supplier of advanced technology, systems and components in the areas of thermal, powertrain control, electronics and information and safety. Its customers include all the world’s major carmakers. Worldwide, the company has more than 200 subsidiaries and affiliates in 38 countries and regions (including Japan) and employs more than 150,000 people. Consolidated global sales for the fiscal year ending March 31, 2016, totaled US$40.2 billion. Last fiscal year, DENSO spent 8.8 percent of its global consolidated sales on research and development. DENSO common stock is traded on the Tokyo and Nagoya stock exchanges. For more information, go to www.denso.com, or visit our media website at www.denso.com/global/en/news/media-center/

About DENSO in North America
DENSO is a leading global automotive supplier of advanced technology, systems and components in the areas of thermal, powertrain control, electronics and information and safety. With its North American headquarters located in Southfield, Michigan, DENSO employs more than 23,000 people at 30 consolidated companies and affiliates across the North American region. Of these, 28 are manufacturing facilities located in the United States, Canada and Mexico. In the United States alone, DENSO employs more than 15,000 people in Alabama, Arkansas, California, Iowa, Georgia, Kentucky, Michigan, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee and Texas. DENSO’s North American consolidated sales totaled US$9.9 billion for the fiscal year ending March 31, 2016. For more information, go to www.densocorp-na.com. Connect with DENSO on Facebook at www.facebook.com/DENSOinNorthAmerica
About IBIDEN Co., LTD.

IBIDEN Co., Ltd. is a Japanese company with more than 100 years history. The IBIDEN Group consists of 37 subsidiaries and 3 affiliates. IBIDEN Group is managing businesses centering around electronics and ceramics. In the electronics business, the company designs and manufactures plastic packages and printed-wiring boards that are used for personal computers and smart phones as well as contributing to the development of telecommunication equipment which the world is expecting. In the ceramics business, IBIDEN produces Diesel Particulate Filters (DPF) that purifies the exhaust gas of diesel cars, and also produces graphite specialty products used for semiconductor and solar cell manufacturing devices. IBIDEN designs and manufactures the products that reduce the global-environmental load with long-established ceramic technologies. For more information, visit their website www.ibiden.com

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