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Newsletter| Your update on what’s new from DENSO Aftermarket Sales

Issue number 45 | June 2015

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> DENSO’s Headquarters in Kariya, Japan.

“DENSO’s sales increased due to an overseas production volume increase,” said Nobuaki Katoh, President and CEO of DENSO Corporation. “However, despite cost reduction efforts and an increase in production volume, there was a decrease in operating income caused by R&D expenditures, and investment costs to strengthen future growth.”

In Japan, the market shift towards compact cars and the decrease of export sales led

to a decrease in sales to 2,663.5 billion Yen, a 2.0 percent decrease from the previous year. The decrease in production volume and the increase in labour costs, and other expenses led to an operating income of 225.2 billion Yen, a 20.5 percent decrease from the previous year.

In North America, an increase in car production, boosted by the steady economic growth, led to an increase in sales to 966.5 billion Yen (US$8.0 billion)*,

an 18.4 percent increase from the previous year. As a result of the increase in production volume, the operating income totalled 38.7 billion Yen (US$321.9 million), a 163.9 percent increase from the previous year.

In Europe, car production increased due to the recovery of the economic slump, which led to an increase in sales to 554.8 billion Yen (Euro 4.11 billion)*, an 11.2 percent increase from the previous year. Due to the increase in production volume, the operating income totalled 16.9 billion Yen (Euro 125.19 million)*, a 36.6 percent increase from the previous year.

“For the new fiscal year, we expect sales and income to increase from the previous year. This is due to the increase in production volume overseas.” said Katoh.

* Foreign exchange rates used for the fiscal year are US$= 120 Yen, Euro= 135 Yen.

DENSO Corporation announced its global financial results for the fiscal year ending March 31st, 2015:

> Consolidated net sales totalled 4,308.8 billion Yen (Euro 31.92 billion)*, a 5.2 percent increase from the previous year.

> Consolidated operating income totalled 355.1 billion Yen (Euro 2.63 billion)*, a 6.0 percent decrease from the previous year.

> Consolidated net income totalled 293.1 billion Yen (Euro 2.17 billion)*, a 2.0 percent increase from the previous year.

DENSO announces year-end financial results

Inside this issue…> Year-end financial results announced

> Intelligent diesel machines

> Trade show round-up

> ‘DENSOmania’ sweeps Russia

DENSO Newsletter: Your update on what’s new from DENSO Aftermarket Sales Issue number 45 | June 20152

> Through innovation, i-ART has given birth to truly intelligent diesel engines.

Intelligent diesel engines

DENSO Newsletter: Your update on what’s new from DENSO Aftermarket Sales Issue number 45 | June 2015 3

In 1893, Rudolf Diesel invented the diesel engine in Germany. Soon, they replaced steam engines across the globe. Later, Clean Diesels were introduced with less CO2 emissions. Now, breakthrough i-ART technology is driving the next stage of diesel evolution.

How can fuel injection be optimised?

Diesel engines ignite fuel by injecting it into compressed air, making fuel injection timing and amount a crucial part of diesel engine performance. Precise control of fuel injection then, is the key to maximising engine performance.

A world first: i-ART technology.

A miniature pressure sensor in each injector monitors injection activity. As fuel injection occurs up to 1,000 times per second, i-ART technology accurately measures the fluctuation of fuel pressure and temperature in each injector, to deliver optimal control of the injection amount and of timing. The result is clean, quiet, fuel efficient performance that ranks among the highest in the world.

The intelligence to correct deviations with 100,000th of a second precision.

i-ART optimises the fuel injection amount and timing with 1/100,000 second precision. This is the equivalent to one-millimetre-travel time of an F-1 car at 300 km/h. Through innovation, i-ART has given birth to truly intelligent diesel engines.

i-ART: Also powering bio-fuel.

i-ART also makes it possible for engines to be powered by biofuels and other fuels that complicate injection. This remarkable technology has captured the world’s attention.

Changes as far-reaching as the jungles of Brazil.

The Brazilian model of the Toyota Hilux is equipped with an i-ART diesel engine that clears strict PROCONVE L6 regulations without employing a Diesel Particulate Filter (DPF). This advance totally eliminates diesel’s reputation for noisy, smoky vehicles and will help bring cleaner air to the jungles of Brazil.

Even in Europe, where diesels are popular, i-ART is a breakthrough development.

i-ART is being promoted as the leading sales point of Volvo’s new eco-friendly Drive-E engine, which boasts the highest engine output and fuel efficiency in its class.

Diesel engine intelligence for a cleaner, brighter future.

i-ART is sparking a breakthrough in clean diesel design that will contribute to an advanced automotive society. DENSO’s development efforts also reach beyond diesel engines to gasoline engines,

electric systems and solutions in other fields. To preserve the planet and prepare a bright future for generations to come, DENSO will never stop taking on new challenges and developing new innovations.

> Invented by DENSO, i-ART technology accurately measures the fluctuation of fuel pressure and temperature in each injector.

The world’s cleanest, quietest, most efficient diesel engines continuously optimise fuel injection. DENSO’s i-ART technology places a pressure sensor in each injector - a world first - to launch the next generation of diesel engines.

• i-ART stands for intelligent-Accuracy Refinement Technology.

• i-ART is a breakthrough technology invented by DENSO, making it a world-first.

• It controls the accuracy of fuel injection, key to maximising performance and minimising fuel consumption and emissions from diesel engines.

• Fuel is injected with surprisingly high speed, at a rate of a hundred thousand times per second.

i-ART: Fast Facts

DENSO Newsletter: Your update on what’s new from DENSO Aftermarket Sales Issue number 45 | June 20154

A record number of visitors attended and 85 approved suppliers exhibited at the event. This was a testament to the hard work of the AutoCare team and business development managers in encouraging members and their garages to make use of what the show had to offer.

The day proved an invaluable opportunity for DENSO Aftermarket to showcase its

latest products as well as promote its popular Automotive Diamonds loyalty campaign, as they welcomed a high number of independent garage owners to the stand.

Automotive Diamonds, Europe’s largest loyalty rewards programme, has already seen a significant number of UK garages registering to participate, since the announcement last year that DENSO had joined as a major partner in the incentive scheme.

At the show, visitors received free drinks in cups sponsored by DENSO, Gates and TRW, two other leading OE quality partners of the Diamonds programme.

Fatiha Laauich, Marketing Executive for DENSO Aftermarket UK & Ireland, commented: “The response to Automotive Diamonds at this year’s show has been very encouraging. More and more garages are seizing the opportunity to grab some fantastic rewards for their teams, simply for using DENSO products. We hope to be back again next year.”

AutoCare Trade Show marks special anniversary

> DENSO’s stand was another showcase of its latest products and technology.

> The show’s paper cups were sponsored by DENSO, as one of the major partners of Automotive Diamonds.

The annual AutoCare Trade Show for GROUPAUTO’s independent garage members in the UK marked the 10th anniversary of the AutoCare Garage Programme, and was held for the first time at the Milton Keynes Arena, England on the April 17th.

DENSO Newsletter: Your update on what’s new from DENSO Aftermarket Sales Issue number 45 | June 2015 5

The in-house exhibition, which took place on April 19th, attracted a large number of trade customers and consumers, from technicians and retailers to engineering enthusiasts and students. All were eager to see the latest in automotive technology and components, including diagnostic systems and garage tools.

The one-day international fair was attended by over 40 exhibitors. The many visitors who flocked to the DENSO Aftermarket stand took the opportunity to find out more about its world-leading, Original Equipment parts programmes and arm themselves with a wealth of technical information to help gain valuable insight into new developments.

Kapodistrias & Sons Ltd, also a member of ITG Temot, was praised for another impressive show thanks to the high footfall and presence of many leading global brands from the sector.

> Yiannis Fronimakis, DENSO Sales Executive Greece, Cyprus and Malta.

> Konstantinos Kapodistrias (left) with Yiannis Fronimakis, DENSO Sales Executive Greece, Cyprus and Malta.

Yiannis Fronimakis, DENSO Sales Executive Greece, Cyprus and Malta commented: “DENSO has been an active exhibitor at Autofix since 2013 and we have continued to enhance our presence so that visitors can fully experience the quality of DENSO’s products and services. This year, we not only had the opportunity to meet our existing customers but also welcome new enquiries to the stand, underpinning just how highly regarded the DENSO brand is in the automotive industry worldwide.”

Autofix 2015 hailed a Cypriot success

Some of Europe’s biggest spare parts manufacturers attended Autofix 2015 in Nicosia last month, organised by one of DENSO’s distributors and the largest automotive parts supplier in Cyprus, Kapodistrias & Sons Ltd.

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DENSO Newsletter: Your update on what’s new from DENSO Aftermarket Sales6

‘DENSOmania’ sweeps Russia

DENSO Russia’s recent DENSOmania promotion has been hailed a success, with some of the many participants who entered across all three countries becoming lucky prize winners. One of the main prizes, three 3D LED SMART TVs, was on offer to customers who had registered on the promotion’s website and were then automatically entered into a raffle. The draw was held in DENSO’s Moscow office, with the winning recipients based in Tomsk, Novosibirsk and Moscow. The campaign’s prize pool also included 3,000 gift vouchers to spend at the countries’ most popular retail chains.

However, the biggest prize was a three-day trip to DENSO Thermal Systems S.p.A in Italy, awarded to the top 17 distributors that demonstrated the largest increase in purchases during the promotion campaign. The trip included a one-day visit to the Poirino site in Turin where customers enjoyed a highly informative and interesting tour, incorporating its production plant and Research & Development centre as well as its renowned state-of-the-art aftermarket logistics facility. Other highlights included a visit to the Museo Nazionale dell’Automobile, the famous automobile museum, and a walking city tour, where

guests had the opportunity to see Turin’s most impressive sights and tourist attractions. The day was finished off with an informal dinner for distributors to reflect on their deserved trip and professional achievement.

Marina Starkova, Senior Marketing Specialist DENSO Russia commented: “We would like to thank all participants of the DENSOmania promotion campaign which has been tremendously successful. We very much look forward to further active participation from our customers in future DENSO campaigns.”> The distributors at DENSO Thermal Systems S.p.A in Italy.

> The new Aftermarket Warehouse in Poirino.

> Marina Starkova, Senior Marketing Specialist DENSO Russia.

The DENSOmania 2015 promotion campaign, which took place between January 15th and March 30th, offered customers in the Russian Federation, Kazakhstan and Belarus the opportunity to win some exciting prizes.