Japan

DENSO's Headquarters

Fiscal 2012 Results

In the domestic auto market in the first half of the fiscal year, vehicle production, which had slumped due to the effect of the Great East Japan Earthquake, rapidly recovered starting in June in conjunction with supply chains being restored. In the second half, the flooding in Thailand caused a temporary decline in production, but overall in the second half production returned to a level higher than the previous year.

Results for fiscal year under review

Although production dropped in the first half due to the effect of the Great East Japan Earthquake, DENSO strove to make up for this through increased production in the second half. This led to an increase in sales to ¥2,197.6 billion, an increase of 4.0%, or ¥84.7 billion, over the previous year.

Operating income of ¥83.9 billion was recorded, an increase of 32.3%, or ¥20.5 billion, over the previous year, as a result of capacity utilization gains, reductions in fixed costs and rationalization efforts, despite foreign exchange losses due to yen appreciation.

Topics
Strengthening of Competitiveness in Japan
-Development of Low-Cost, Compact Facility Lines-

The yen's strength shows no signs of subsiding and Japan must avoid a hollowing out of Japanese industry caused by production being transferred overseas. It is absolutely necessary that DENSO rigorously pursues domestic competiveness through automation and the elimination of inefficiencies to create an overriding competitiveness that makes exports profitable even when the yen is strong.

DENSO's die-cast facility serves as a model. It rebuffed the traditional approach to production by making facilities compact, improving processing lines, and aligning production volume with assembly. The facility raises productivity substantially by reducing floor space by one third, facility costs by half and processing costs by 30%. This compact, low-cost facility is capable of quickly responding to capacity increases overseas, so it will also be utilized when launching low-cost products in emerging countries.

Moreover, we intend to further raise productivity by expediting and enhancing lines and fully ensuring that the facility is utilized to the maximum extent. DENSO plans to use this plant as a model and develop the concept throughout the whole company.

Net Sales

Operating Income

Strengthening competitiveness in Japan:
Making the overridingly best plant

Miniaturization of die-cast machines

Priority activities Under medium-term plan

DENSO intend to continue creating manufacturing facilities with overriding cost competitiveness even when the yen is strong and develop cutting-edge products using these facilities as the mother factory.

Creating Domestic Plants with "Dantotsu" Outstanding Cost Competitiveness

In January 2012, we established the "Dantotsu" Outstanding Plant Project Office and accelerated activities to strengthen our domestic production system.

Faster lines with enhanced operations, higher productivity from development of compact 1/n facilities, and better efficiency from improved distribution and inspections both inside and outside the factory will be extended throughout DENSO to create domestic manufacturing facilities with overriding cost competiveness. 

Cutting-Edge Product Development at Mother Factory

In establishing a global production system, Japan will play the role of mother factory, developing and deploying cutting-edge products and production technologies.

Low-cost technologies for emerging countries will also be applied to products produced in Japan, and Japanese production capabilities will be further advanced in an effort to also strengthen global competiveness.

Sales Target