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Global Management

Note: Only major bases are identified on the map.

Sales and Income by Segment

  • Net Sales by Segment
  • Operating Income by Segment

Note: The segments changed from the third quarter of fiscal 2011. Others mainly includes local corporations in South America.

Performance and Outlook by Segments

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Japan

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Results for fiscal 2014

In the domestic automobile market, sales increased 10.3% year on year to ¥2,717.6 billion. Despite the reactionary decline from the effect of the Japanese government's subsidies for eco-friendly vehicles of the previous year, the number of vehicles sold during the year increased due to economic recovery, the market entry of attractive new models, and increased demand ahead of a consumption tax hike. Despite increased expenses, including R&D expenses, operating income soared 66.0% year on year, to ¥283.3 billion, due to such factors as increase in production volume and the currency exchange gain, in addition to the cost reduction effort.

Approach for fiscal 2015

Demand is forecast to be temporarily sluggish as an effect of the consumption tax hike, but it is envisaged that the Japanese economy will make a gradual recovery from the second half onward, underpinned by strong exports and economic measures. Under these circumstances, we will be painstaking in optimum allocation of limited resources and move ahead with power shifts toward growth fields and operational efficiencies. At the same time, we will make ongoing strategic investments—such as in new process methods tailored to the evolution of our products and investments with high cost-reduction effects that incorporate 1/N production equipment—with regard to the creation of Dantotsu plants that are linked to improvements in our global competitiveness and value added. In addition, to lead the Company to future growth we will make contributions to both revenue and society by promoting broader sales strategies that anticipate automaker trends as well as by aftermarket sales expansion and the commercialization of new businesses.

North America

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Results for fiscal 2014

The U.S. automobile market showed strong sales and production due to the U.S. economic recovery, and the Company recorded increases in both its sales and income. Sales increased 28.5% year on year, to ¥816.6 billion, due to the increase in the number of cars produced by GM, Ford, Chrysler (collectively, the Detroit Three), and Toyota and heating, ventilation, and air-conditioning (HVAC) unit sales expansion. Operating income rose 9.1%, to ¥14.7 billion, due to such factors as gains in capacity utilization brought about by the sales increase.

Approach for fiscal 2015

It is envisaged that there will be growth in consumer spending, due to such factors as an improvement in the employment environment and a recovery in the housing market, and that the rate of economic growth will rise. Under these circumstances, we will carry on from the previous year and further our efforts to expand sales to the Detroit Three and commercial vehicle and agricultural and construction equipment manufacturers in addition to expanding aftermarket business with a view to M&A. We will also further evolve hitozukuri (employee development) and monozukuri (the art of making things) on a localized basis and work to reduce variable costs, particularly for example by the local procurement of equipment and molds as well as components. In R&D, we will make progress in creating products that match the needs of the North American market by the localization of design.

Europe

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Results for fiscal 2014

In Europe, both sales and income increased, sales by 34.0%, to ¥498.9 billion, as a result the gradual recovery from the economic slump and the effect of the yen's depreciation. Operating income soared 216.1%, to ¥12.4 billion, due to such factors as production volume increase.

Approach for fiscal 2015

It is envisaged that there will be gradual improvements in the employment and income environments along with an export-driven economic boost that will result in a rise in the rate of economic growth. In addition to ongoing sales promotion activities centering on European customers, we will leverage those contacts and put into place competitive production systems that also set DENSO products apart from those of our rivals to expand sales to businesses in the other regions. With a view to future growth, we will target business expansion, particularly into the security and safety field, and the development of new products using technologies developed in Europe. In addition, we will be working to acquire advanced technologies that leverage alliances.

Asia & Oceania

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Results for fiscal 2014

Although economic growth slowed down in emerging markets, such as Thailand and India, these were buoyed up by the robust Chinese market. Overall, there was an increase in the number of vehicles produced, resulting in our sales increasing by 18.8% year on year, to ¥943.1 billion. On the other hand, as operating income of ¥71.2 billion was 3.3% lower compared with the previous fiscal year, due to such factors as increases in labor costs and the startup costs of the plants and technical centers designed to strengthen our future competitiveness.

Approach for fiscal 2015

The slowdown in growth in emerging countries is expected to continue, but as the region's potential for market growth remains as high as ever, we will take future growth into account in the construction of production and supply systems and of mutually complementary networks within the ASEAN region. We will also proceed with the local procurement of equipment and components to mainly realize expansion in sales for compact cars. In the area of technical development, we will develop locally optimized products in close collaboration with technical centers and connect these to sales expansion achieved by setting DENSO products apart from those of other companies.