Tsuneo Ishimaru
Hiromu Okabe


The 21st century opened at DENSO in January 1999. That was when we reshaped our whole organization to tackle the challenges and opportunities that lie ahead.
We have reconfigured all our automotive operations into four operating groups. Each group comprises a mix of products and technologies chosen to promote synergies in R&D, manufacturing, and marketing. And each is responsible for its own return on equity and its own cash flow. The stepped-up emphasis on integration and efficiency will make us a leaner competitor in the global marketplace.
You will hear on the following pages from the executives responsible for the operating groups:

Powertrain Control
Electric
Electronic
Thermal

You also will get a look at our strategy and operations in diversified products.
The January reorganization inaugurates the year in which we mark our 50th anniversary. And it culminates another year of sales growth--accompanied by an earnings downturn on account of slumping Japanese demand. You can read more about our sales and earnings performance on pages 14 to 20 and in the financial section, which begins on page 21. We have devoted the first section of this year's report to summarizing our new organization and how it will support lasting, profitable growth for DENSO.
In March 1999, we acquired 80% of the Rotating Machines Division--mainly starters, alternators, and small motors for windshield wipers--of Magneti Marelli S.p.A. That division serves about 20% of European demand in its core product categories. So, the acquisition strengthens our market position in Europe greatly.

June 1999



Tsuneo Ishimaru, Chairman


Hiromu Okabe, President

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