2016

8701SK-005 67-95B
 Protecting Lives, Preserving the Planet,
and Preparing a Bright Future for
Generations to Come
We at DENSO have a mission, as
stated in our Philosophy: Contrib-
ute to a better world by creating
value together with a vision for
the future. Tackling that mission is
more important than ever.
The world’s population will exceed
eight billion people by 2025, and
global emissions of carbon dioxide
will exceed the amount that the
Earth can absorb by more than
threefold. The continuing growth
in vehicle ownership is a factor,
of course, in that output. It also
presents other challenges, includ-
ing an increase in traffic accidents.
We need to maximize the conve-
nience and other benefits of motor
transport in ways that minimize the
drawbacks.
1 2
Our Long-term Policy articulates a
shared commitment by all DENSO em-
ployees to optimize our social impact
in all our operations. The Long-term
Policy covers the 10 years to 2020. It
calls for us to step-up our efforts to
preserve environmental quality and
to ensure safety while continuing to
provide people everywhere with the Contents
comfort and convenience of driving. 1 DENSO Goals
3 Automotive Field
In non-automotive operations, we are
5 Environment
working to improve the quality of life
7 Safety
by deploying technologies nurtured in
9 Comfort
our automotive operations as well as
11 Convenience
completely new technologies. Those
technologies include advances in home 13 Non-Automotive Fields
energy management systems and in Consumer and
15
Industrial Products
health maintenance and medical care.
17 New Business Fields
At DENSO—all 150,000 of us world- 19 DENSO and Society
wide—are working in the spirit ex- 21 Monozukuri
pressed in our Long-term Policy’s 23 Hitozukuri
slogan: Protecting Lives, Preserving the 25 Corporate Citizenship
Planet, and Preparing a Bright Future 27 Company Profile
for Generations to Come.
 At DENSO, we work to improve the three basic
functions of the automobile: moving, turning,
and stopping. In addition, we strive to enhance
the driving experience for people worldwide.
This means minimizing the adverse effects of
vehicles, such as environmental degradation
and traffic accidents, while providing the
convenience, the comfort, and the other benefits
of motor transport.
As a leading automotive supplier, we strive
to help shape a world where people, the
environment, and cars coexist in harmony.
We are an automotive industry leader in R&D

Automotive
spending, allocating approximately 9 percent
of our revenue to research and development.
In 2015, this totaled 399.3 billion yen
(US$3.5billion). This supports the work of our
engineers who, day after day, conduct R&D and
product design at our technical centers around
the world.

Continuous innovation
to build a sustainable
automotive society

3 4
 Products for fuel cell vehicles, the
next generation environmentally-
friendly vehicles
DENSO developed a new fuel cell monitoring unit,
pressure sensor, and hydrogen-charging electronic
control unit (ECU) in 2014 using technologies from
developing hybrid vehicle components. Our products and
technologies such as power control unit, cooling module
and cooling pump are used in “Mirai,” Toyota Motor
Corporation’s fuel cell vehicle.

Fuel Cell Control Power Electronics

Environment Products Products
Fuel Cell Power Control Unit
Striving for Ultimate Monitoring Unit

Efficiency in All We Do to
Reduce CO2
DENSO creates products that work to improve
performance and preserve the environment. DENSO’s
gasoline/diesel engines, hybrid/electric vehicles and Hydrogen System Products
other powertrain products such as fuel cell vehicles Hydrogen- Pressure Temperature Infrared Ray
aim to reduce CO2 emissions. Charging ECU Sensor Sensor Transmitter

We also strive to make cars environmentally–friendly

throughout their lifecycle. Our activities include:
Making “Clean Factories” to minimize emissions
and hazardous materials used in our production
processes; reduce the use of natural resources and
environmentally hazardous substances, and improve
recyclability of components. Cooling System Products
Cooling Module Cooling Pump Water Control Valve

Environment
5 6
 Providing the right information,
in the right place, at the right time
The head-up display (HUD) is a technology that takes
the vehicle speed, various critical warnings, and other
information needed in driving and displays it on the
windshield. This allows the driver to get information
quickly while driving, without having to make large
movements in the line of sight. This provides the driver
with greater safety and assurance and is expected to help
reduce accidents.
DENSO is working toward commercializing the TFT* liquid
crystal HUD in 2017. Aiming to improve the visibility, we
plan to produce 20-inch (50.8cm) models that will be the
world's largest HUD for use in cars.
Safety DENSO's strength is our capability to incorporate our
car navigation systems and image-sensing technologies
For an accident-free to the new HUD technology which will provide "turn-by-
society where drivers, turn guidance" using arrows, warnings when the distance
between the vehicle and the car in front is too close, and
passengers, and other technologies and functions.
pedestrians can have * TFT: Thin Film Transistor

peace of mind Image of HUD Display Currently

under Development
Driving a car brings joy and convenience. However,
as long as humans are driving, we cannot
prevent all driving errors. DENSO combines high-
precision sensors, Human Machine Interface, and
communication technologies to develop active safety
products for preventing collisions and passive safety
products for protecting the driver, passengers, and
pedestrians by minimizing the impact of the collisions
"Turn-by-Turn Guidance" indicates the driver's path with
when accidents occur. Furthermore, DENSO arrows
accelerates the technology development of advanced
driving support to keep the driver away from danger
and automated driving.

Arrow length and color call the driver's attention to the

decreasing space between the vehicle and the car in
front of it

Safety
7 8
 Cold Storage Evaporator

DENSO technologies ensure

Comfort
Towards a society in which
everyone can enjoy
their “moving space” and
their time in it
Regardless of how extreme conditions outside
the vehicle may be, we want the cabin interior to
remain a calm, comfortable space. That way, we
can realize the usefulness of the vehicle and enjoy
driving to the fullest.
As a leading manufacturer of automotive air
conditioners, DENSO continues to spur advanced
climate control technology in pursuit of that “quality
sense” that allows the driver and all passengers
to truly enjoy this moving space and the time they
spend in it.
environmental performance
and comfort
A vehicle’s air conditioner cycle runs on power from the
engine. The stop/start function thus interrupts the supply
of cooled air, and the temperature in the vehicle interior
rises. Our challenge was to find a way to keep drivers
and passengers comfortable without increasing fuel
consumption and carbon dioxide output. Our answer
was the DENSO Cold Storage Evaporator.
An evaporator exchanges heat between warm air and
cold refrigerant to supply cooled and dehumidified air.
Our evaporator contains cold-storage material that can
retain a low temperature. The air conditioning system
cools the cold-storage material while running on power
from the engine, and the material serves as coolant
during the engine stop.
Construction of the Cold Storage Evaporator
Outer fins
Refrigerant tube

Cold storage case

Cold Storage Release

Cooler temperatures Cool air is released
from the refrigerant from the cold storage

Comfort tube retained in

the cold storage
medium
medium through the
refrigerant tube and
outer fins

9 10

Convenience
For a world of
luxurious driving
allowing smooth,
stress-free movement
DENSO anticipates those features that are likely to
prove convenient, and then goes on to create products
incorporating these features. Examples include meters
with superior visibility to reduce driving stress, anti-theft
systems that utilize information and communications
technologies, car navigation systems that allow vehicle
occupants to enjoy a wide variety of entertainment
news and information, and more. When it comes to
convenience, we continue to provide new products
using a broad range of DENSO technology.
Convenience
11
NaviBridge connects your mobile
devices to navigation systems
You can search your destinations in your favorite
compatible apps on your mobile devices and send it to
compatible in-vehicle navigation systems with one tap
on the devices. It eliminates time and effort to type-in
the destinations on your navigation system before you
start driving.
With NaviBridge, you can also share your location and
searched destinations with your family and friends via
e-mail and Social networking service (SNS). It is a handy
app for a meet-up.
DENSO has been developing and manufacturing car
navigation systems and technologies for more than 30
years. By taking full advantage of its expertise, DENSO
will continue to enhance convenience for more users by
providing services that connect car navigation systems
with smartphones.
NaviBridge
For more information
12
 Non-
Automotive
Working toward a society
where everyone can enjoy,
safety and a good quality of life
Over the years, DENSO has expanded our automotive expertise to
include advanced technologies, such as the semiconductor, heat
exchange, communications, and sensing technologies.
We also apply them in non-automotive fields.
Expanding our technological scope and partnerships,
we will continue to develop products and technologies
that help solve new social problems
and bring people a good quality of life.

13 14
 Home Appliances

CO2 Heat Pump Hot Water Supply System

Vastly reduces the energy used in heating water

Commercial Air Conditioners

Spot Coolers
Simple to install, highly efficient cooling for people and objects

Consumer and Industrial Products

Auto ID Data Capture Devices
Applying core automotive
technologies to
non-automotive fields
DENSO applies the technologies and expertise
developed over the years to the consumer and
industrial product fields. We are developing products Barcode and 2D Code Handy Terminals
Rationalizing distribution and logistics operations and management
in a variety of fields, for example incorporating our heat
exchange technologies in a CO2 heat pump hot water
supply system, utilizing our Integrated Circuits (IC) and
FA Products (Robots)
other electronics technologies with Handy Terminals,
and other automatic recognition products, and further
applying our production technologies in factory
automation products (robots).
*Automatic recognition and factory automation products are handled
by DENSO WAVE, Inc.

Vertical Articulated Robot

Realizing efficient, high-quality production

Home & Development of the QR Code

Now generally visible in daily life, the QR code
was originally developed and used by DENSO in
production control. This two-dimensional code

Industry
developed to hold from dozens to hundreds of
times more data than the barcode, has successfully
spread and is now widely used.

15 16
 Micro Grid
We are helping to realize a low-carbon
society through micro-grid products
and technologies including Home
Energy Management Systems (HEMS),
storage batteries, V2H (vehicle-to-
home) power supply systems, and
other products that create, store,
and conserve energy in the age of
connected cars and homes.

Electric Power Assist

Electric power assist technology
derived from our automotive motor/
control systems contributes to a safer,
more secure and eco-friendly society.

Security
Our sensing technologies are
contributing to safer and more secure
living.
Agricultural support utilizing environment greenhouse control systems

Healthcare
New Business Fields Our biosensor system and surgical-
support robot help in disease
Aspiring to solve prevention, early detection and
recovery, improving the quality of life.
new social issues
with DENSO technologies Biotechnology (Micro Algae)
We aim to contribute to environmental
Our business activities are always based on DENSO's quality by utilizing an efficient algae
philosophy of contributing to the well-being of people cultivation process for CO2 absorption
around the world. We focus our efforts on finding and by producing biofuel as an
alternative to fossil fuels.
solutions to challenges facing the elderly, energy
problems, and other issues facing society. We are Agricultural Support
applying current technologies and collaborating on Utilizing greenhouse environment
projects with new partners in order to move into control systems and energy
other fields where DENSO technologies can make a conservation technologies, we
contribute to more efficient and stable
difference.
vegetable cultivation and improved
agricultural competitiveness.

Cold Chain
Through energy-saving cooling
and freezing technology, as well as
technology to preserve freshness,
we are contributing to safety and
assurance in food transport and supply
from production to consumption.

New Business Community Network Solution

Business
We support information distribution
within communities to help enhance
safety, security, and convenience in
daily lives.
17 18
 Aiming to be a company
trusted and backed

Corporate by the community

Our corporate activities are founded upon

Social the trust and enthusiastic support

we receive from our customers around the world,
our shareholders and investors,
suppliers and employees,

Responsib ility and from the local and international communities.

We put corporate social responsibility (CSR)
front and center in management
and this is reflected in
our manufacturing, human development, corporate
contribution activities,
and in all our corporate conduct.

19 20

World’s smallest motorized car, recognized by the Guinness Book of World Records
Monozukuri - Manufacturing
Engineering and technique,
hand in hand
“Engineering” and “technique” are not true synonyms.
Our engineers substantiate the theories behind
various research results and new concepts, and then
describe these ideas in design drawings. It is our
superior technicians who then give these theories
concrete form as products. We make full use of
molds, jigs, and other tools to create prototypes,
evaluate their performance, and then develop and
manufacture production facilities to enable mass
production of the items.
Our engineers and technicians collaborate throughout
these processes to clear the high hurdles we
encounter. This close fusion of engineering and
technique results in the birth of the products that are
the first and best of their kind in the world.
Monozukuri
21
Piezo Injector
Product development with success
or failure riding on a gap size of a
mere 1/60 the width of a human hair
Common rail systems exhibit revolutionary environmen-
tal performance by delivering jets of ultra-fine, ultra-high
pressure fuel into diesel engine combustion chambers
for complete fuel combustion. The nozzles of these fuel-
spraying units, called “injectors,” have an allowable gap
of just one micron*. That’s 1/60 the width of a human
hair. A gap any bigger than this results in a loss of the
airtight seals. A gap any smaller prevents the injector
from operating smoothly.
After many trial and error, our engineers and technicians
worked together to overcame this challenge. They de-
veloped a micron-machining technology of flowing clay
mixed with micro-gain whetstones. The main reason for
this success was our technicians’ miraculous ability to
detect by sight and touch differences of less than one
micron.
*1/1000 of a millimeter.
Common Rail System
Piezo Injector
Supply Pump
Engine ECU
Common Rail
22
 Gold Medal from
WorldSkills Competition

Original Hitozukuri creates drama

It was in 1997, on the final day of competition in the pre-
cision device assembly category at WorldSkills Competi-
tion. DENSO’s entrant (representing Japan) pointed out,
“There’s a one-millimeter error in the drawings, so even
if I machine this correctly, the device won’t work.” In
what was an unprecedented turn of events, the judges
Education on DENSO-way Monozukuri checked the drawings and confirmed the error, then af-
ter distributing supplementary tools, reran the competi-
Hitozukuri - Human Development tion. The DENSO competitor won the gold medal with a
world record-breaking score, and in the process marked
Monozukuri is Hitozukuri a legendary moment in the history of this competition.
Our tradition of developing such superior technicians
(Manufacturing is has crossed both time and seas at our production sites
human development) around the world.
At our Thai training academy, established in 2005,
Human capabilities are what propel the high-level “Monozukuri is Hitozukuri ”
craftsmanship in manufacturing that underpins ad- has been adopted as the
vances in high-tech automotive components. In 1954, slogan for the school,
soon after the company’s founding, DENSO estab- which has produced a
lished a Technology Training Center, which later de- string of competitors
veloped into the “DENSO Technical Skills Academy.” representing Thailand,
This company school has now produced more than Original production equipment
Indonesia, and Vietnam at
9,000 graduates. developed by staff at overseas site WorldSkills Competition.
DENSO’s corporate environment promotes joy in
improving engineering and technical skills. This has Number of Medals Won and Winning Percentage
resulted in 31 gold medals at the WorldSkills Compe- at WorldSkills Competition
(As of August, 2015)
tition, an event where youths from around the world
Bronze 14
vie in demonstrating their technical skills. Additionally,
those programs have led to our inimitable system of Winning
Number of
product development, the establishment of 34 skill Medals Won Gold 31 Percentage
training room around the world, and many other simi- 61 66.3 percent

lar achievements. Silver 16

WorldSkills Competition
Held every other year since 1950. Open for entrants aged 22 or younger,

Hitozukuri
who won first place of the domestic competition.
DENSO’s aim for the entry is not only to achieve excellent results, but also
to improve systematic human development and pass on superior techniques
to the next generations. Through the training for the WorldSkills Competition,
the young technicians improve their spirit, technique and physical condition
for fight and prepare to be advanced experts in the future.

23 24
 Harmony with the environment
Sustaining a healthy local natural envi-
ronment, now and in the future
Our business activities
are always based on
DENSO’s philosophy of
contributing to the well-
being of people around
the world. In addition
to our environmentally- Tree planting (Spain)
friendly manufacturing and
production practices, we are actively involved in activities to
help preserve the natural environment in local communities
that future generations can be proud of.

Wheelchair Repair Activities (Thailand / Japan)

Safe and secure community building
Supporting local communities by pro-
Corporate Citizenship moting safe driving
With the aim of protecting
As a corporate citizen, lives around the world,
as global citizens DENSO strives to
develop technologies and
DENSO is committed to building a sustainable society. manufacturing practices
We draw on all the resources of the DENSO Group to with a particular emphasis
participate in community support programs and projects, on safety. We also work Traffic-safety Lessons (Indonesia)

focusing on typical DENSO themes such as “Harmony globally to improve traffic

with the environment,” “Safe and secure community safety so that everyone, especially our children and senior
building,” “Hitozukuri (development of youth and support citizens, can live with greater peace of mind.
for the disabled).” As our employees and individual group
companies work together on these projects, we actively Hitozukuri
(Development of youth and support for the disabled)
promote programs designed by DENSO and a culture of
community engagement. Aiming for human development in areas
of DENSO’s expertise
Basic Policy
DENSO supports hands-
1. Harmony with the environment
Priority 2. Safe and secure community building on activities to promote
3. Hitozukuri
Areas - Development of youth science, technology,
- Support for the disabled
engineering, and math as
Corporate Climate Creating an environment that encourages each the need for professionals
employee to become involved in our activities
in these fields grows.
We also support the Science School (Japan)
independence of disabled
persons by donating wheelchairs as well as supporting
sports activities.

Corporate
Citizenship
25 26
 Corporate Data

DENSO Global Website

Facts & Figures

Profile

Company Name DENSO CORPORATION

Established Dec. 16, 1949

Head Office 1-1, Showa-cho, Kariya, Aichi 448-8661, Japan

Capital ¥187.4 billion [US$1.7 billion]

Revenue Consolidated Basis: ¥4,524.5 billion [US$40.2 billion]

Operating Profit Consolidated Basis: ¥315.7 billion [US$ 2.8 billion]

company Profit
*Profit attributable to owners of the parent company.

Employees

Consolidated Subsidiaries
Consolidated Basis: ¥244.3 billion [US$2.2 billion]

Consolidated Basis: 151,775

Non-consolidated Basis: 38,490
188 (Japan 62, North America 28, Europe 34, Asia 58,

profile
South America/Others 6)
Affiliates Under 36 (Japan 13, North America 4, Europe 4, Asia 13,
the Equity Method South America/Others 2)
*U.S. dollar amounts have been translated, for convenience only, at the rate of 112.68 yen = US$1,
the approximate exchange rate prevailing on March 31, 2016.
Billion is used in the American sense of one thousand million.

Consolidated Revenue by Consolidated Revenue by

Business Group DENSO Company Locations
New Business South America/Others
1.4％ 1.3％
Other Automotive
1.4％
Europe
Small Motors 6.8％
12.6％
Electronic Powertrain Control
8.2％ 35.8％
Information
and Safety Japan
Systems
¥4,524.5 billion Asia ¥4,524.5 billion 39.8％
15.2％ 22.4％

Thermal North America

31.2％ 23.9％

As of March 31, 2016

27 28
 Corporate Data

Revenue Operating Profit Global Network (Consolidated Basis)

(billion yen) (billion yen) JAPAN NORTH AMERICA

5,000 400
371.4 (billion yen) (billion yen)
4,524.5 3,000 12,000
4,309.8 1,112.7
4,095.0 331.4 2,716.7 2,664.5 2,646.6
4,000 315.7
3,580.9 300 2,500 10,000 966.5
3,154.6 262.4 816.6
3,000 2,000 8,000

200 1,500 6,000

2,000 160.7
1,000 4,000
100
63 28
1,000 500 2,000
66,311 0
21,513 0
0 0 2014 2015 2016 (FY) 2014 2015 2016 (FY)
2012 2013 2014 2015 2016 (FY) 2012 2013 2014 2015 2016 (FY)

EUROPE ASIA
(billion yen) (billion yen)
600 593.6 1,200 1,161.2
554.8
1,049.7
500 498.9 1,000 943.1

400 800

Profit*1 R&D Expenditures 300 600

200 400
(billion yen) (billion yen) Ratio to Revenue % 34 58
300 500 9.5 9.4 10 100 200
277.2 9.0 9.2 8.8 15,646 45,040
258.4 0 0
244.3 R&D Expenditures 396.4 399.3 2014 2015 2016 (FY) 2014 2015 2016 (FY)
400 8
368.7
200 335.5
181.7 298.4
300 6 SOUTH AMERICA OTHERS
(billion yen)
80
74.3 73.8
200 4
70
100 89.3
60 59.5

100 2 50
40
0 0 0 30
2012 2013 2014 2015 2016 (FY) 2012 2013 2014 2015 2016 (FY) 6 20
10
3,265 0
DENSO Global Website
2014 2015 2016 (FY) Global Network

*1：Profit attribatable to owners of the parent company. *Figures of fiscal are based on IFRS.
*Figures of fiscal 2013, year ended March 31, 2013 and prior are based on Japanese *Figures represents total revenue by DENSO company locations,
accounting standards. Figures of fiscal year 2014, 2015 and 2016 are based on IFRS. including sales between DENSO companies.
* Number of companies, Number of employees

As of March 31, 2016

29 30