Post on 16-Aug-2018
Page 1 / 13Page 1 / 13Presentation for India-Thailand round table discussion
Win-Win success in Greater Asia
T d it l i i t ti- Towards vital economics integration -
30.08.2012DENSO INTERNATIONAL ASIA CO LTDDENSO INTERNATIONAL ASIA CO.,LTD
COO & Executive Vice PresidentMasao Suematsu
1.DENSO Profile Page 2 / 13Page 2 / 13
December 16, 1949Established
Capital 187 4 billion en (US$2 3 billion)Capital 187.4 billion yen (US$2.3 billion)
Net sales3,154.6 billion yen (US$38.4 billion)2 031 6 billion yen (US$24 7 billion)
Consolidated basisNon-consolidated basis
Net income89.3 billion yen (US$1,086.5 million)79 2 billion yen (US$963 2 million)
Consolidated basisNon consolidated basis
2,031.6 billion yen (US$24.7 billion)Non-consolidated basis
79.2 billion yen (US$963.2 million)Non-consolidated basis
Employees126,03638 323
Consolidated basisNon consolidated basis
(Japan 68, North America 28, Europe 35, Asia/Oceania 51, Others 6)Consolidated subsidiaries 188
38,323Non-consolidated basis
Notes:
(Japan 13, North America 4, Europe 2, Asia/Oceania 10, Others 2)Affiliates under the equity method 31
Notes:U.S.dollar amounts have been translated, for convenience only, at the rate of 82.19 yen = US$1,the approximate exchange rate prevailing on March 31, 2012. Billion is used in the American sense of one thousand million.
/ as of March 31, 2012
Main Products Page 3 / 13Page 3 / 13
ComfortGasoline engine management system,diesel engine management system
Car air conditioning system,air conditioner for buses air purifier etc
Environment
diesel engine management system,hybrid and electric vehicle components,starter, alternator, radiator, etc.
air conditioner for buses, air purifier, etc.
ConvenienceSafetySensing technologies for driving assist systems,actuator & computer for antilock brake system (ABS) /
Car navigation system,electronic toll collection system (ETC),
t it telectronic stability control (ESC),adaptive front-lighting system (AFS),airbag sensors & electronic control units,periphery monitoring system, instrument cluster,
remote security system,remote touch controller, smart key,advanced vehicle operation system (AVOS),etc.p p y g y , ,
rain sensor for automatic windshield wiper, etc.
Sales by Region (Consolidated basis)Page 4 / 13Page 4 / 13
OthersEuropeNet sales: 373,214 million yen(Including sales between DENSO companies:
387,192 million yen)
North AmericasNet sales: 504,075 million yen(Including sales between DENSO companies:
512,117 million yen)Asia
1.8%Others
Japan 52 0%Japan
11 8%Europe
18.4%Asia
JapanNet sales: 1,639,962 million yen(Including sales between DENSO companies:
2,197,632 million yen)
52.0%
16.0%
The Americas
11.8%
3,154,630 million yenTotal:
Asia-OceaniaN t l 579 752 illi
OthersN t l 57 627 illi
, , yIncluding sales between DENSO companies:
3,781,390 million yen
Net sales: 579,752 million yen(Including sales between DENSO companies:
626,721 million yen)
Net sales: 57,627 million yen(Including sales between DENSO companies:
57,728 million yen)
/ as of March 31, 2012
2.DENSO Operations in Asia Page 5 / 13Page 5 / 13
ASEAN 19
Vietnam 2DMVNIndia 6
DNIN DIINHDVN
Philippine 2
Thailand 8
PACDNKIDNHA
DTPUDTPHDSEC
DNTHDSTHDTTH
SDMADTH
SKD
TBFSTDIATNo of Cos No of Employees
RHQ
(S S)(Thailand: DIAT)
Dubai 1DSMN
Malaysia 2DNMY NWBM
(as of Mar. 31, 2012)ASEAN 19,850
Th il d 8 200Manufacturing 21
RHQ 3No. of Cos No. of Employees (Singapore: DIAS)
Singapore 1
Indonesia 4
DIAS
Australia 1
Thailand 8,200
India 5,000Australia 420
T t l 25 270
Manufacturing 21
Sales 3
27Total DNIA DSIAHDI AINEDNAU
Australia 1Total 25,27027Total
< Production & Supply Strategy >< Production & Supply Strategy >• Bulky products: in each country [ Decentralized ]• Small & High Function products: in a certain country [ Centralized ]
3. Production & Supply Framework Page 6 / 13Page 6 / 13
Strengthen competitiveness by optimum production & supply strategy across ASEAN & India●: Centralized, ○: Decentralized
Vietnam○
India○
Australia○
Philippine TaiwanIndonesia○○○○HVACThermal
MalaysiaThailand
ASEAN
g p y p p pp y gyIndia
○
○
○
○
○
○A/CSys.
●Compressor○○○○Radiator
●Evaporator○○○Condenser
Group
●EPS ECU
○
○
○
○
●
●Meter ClusterElectronic Group Engine ECU
○●Alternator, StaraterElectric Group
●Relay
○ ○
●
●
○ ○○○Air CleanerPower-train Group Oil Filter
2 Relay Flasher
○
○ ○
●Gasoline Injector●Common rail
○● ○Fuel Pump
●Plug, Coil, O2Sensor
●APM●
○
●Horn
●Wiper MotorMotor (ASMO)
EGR Valve
VN Turbo Motor●EPS Motor
○●Power Window Motor
●
●Arm & Blade
2014
1005200095908580751970
4. History of DENSO in Asia Page Page 7 7 / / 1313
1005200095908580751970Vehicle import prohibit Local productionRegulation Deregulation of Local production
Trade
Eco-car policy(Thailand, Indonesia)
AFTA (’93-) FTA outside ASEAN
(200K)
(420K) (330K) (840K) (1,190K) (2,240K) (2,920K)ASEAN Vehicle Production
<1st era> <2nd era> <3rd era>
Trade agreement
(3,300K)
THAILAND
DN’s Strategy Many products at each country ASEAN Complementation Furthermore
Evolution(TH: 25 products, Indonesia: 17 products)
DNTH (’72) DTTH (’87) SDM (’02) DIAT (’07)
<1 era> <2 era> <3 era>
Indonesia
THAILAND DNTH ( 72) DTTH (’87)
DNIA (’75) AINE (’97)
SDM ( 02)ADTH & TBFST (’02)
SKD (’03)DSTH (’02)
DIAT (’07)
Extent of Complementation
Philippines
Malaysia
IndonesiaASEAN
DNIA (’75)
PAC (’95)
HDI (’97)AINE ( 97)
NWB (’95)DNMY(80) Single OGC
DSIA (’04)
DTPH (’05)
Complementation
Singapore
Vietnam
pp PAC ( 95)
DMVN (’01)
DIAS (’98)
Multiple OGC
& ( )DSMN (’10)DNAU(89)
DTPH ( 05)
HDVN (’08)
India
Related Co. (Mfg.)Regional Head Office / Functional Co. Mfg. Co. (Multiple) Mfg. Co. (Single)
DNIN (’93) DNHA & DNKI (’99)DSEC (’11)DIIN (’99)
DTPU (’01)
5. Growth in Great Asia (Lead by India & Thailand)
Focus on global market by enlarging collaboration within Greater Asia
Page Page 8 8 / / 1313
ChinaKorea
Focus on global market by enlarging collaboration within Greater Asia
ACFTA AKFTA
KoreaJapan
AFTA
USA
TPP?AIFTAIndia
AJCEP
AFTAEU
?
TPP?
ASEAN(High added value)
AANZFTA
(High added value)
【Target】 AANZFTA
Australia/
(1) No.1position in Asia
(2) Global supply base Australia/New
ZealandFTA utilization is key for success
Page Page 9 9 / / 13136.Market harmonization of India & ASEANCar Maker (Model) Market SOP Unit Car Maker (Model) Market SOP UnitCar Maker (Model) Market SOP Unit
TOYOTA (ETIOS) IndiaIndonesia
’10/12’13/01
150 K40 K
Car Maker (Model) Market SOP UnitHONDA (BRIO) Thailand
IndiaIndonesia
’11/04’11/09’13/09
60 K110 K80 KIndonesia 13/09 80 K
Car Maker (Model) Market SOP Unit Car Maker (Model) Market SOP UnitMARUTI (MPV/ERTIGA)
IndiaIndonesia
’12/01’12/03
80 K40 K
FORD (FIGO/FIESTA) IndiaThailand
’10/03’10/05
100 K60 K
MARUTI (SWIFT) India ’13/12 170 KMARUTI (SWIFT) IndiaThailand
13/12’14/TBD
170 K110 K
Harmonized market Common model for both Asia (Thailand) and India
•Duty exemption AIFTA+India-Thailand FTA to enhance mutual growth•Logistics infrastructure East-West economic corridor for shorter Lead Time
Page Page 10 10 / / 13137. Business opportunity in India for DENSO<Vehicle production> <Sales> 213<Sales> 213<Sales> 213<Vehicle production> <Sales> 213
128500
600
700(00 thousand)
<Vehicle production>
CV435
598
<100> <108>
<148>
<VS FY11>10 Mill market in 2020 (World No.3)
DNHA
DNKI
<120>
(00 Mill Rs)
DNHA
DNKI
<Sales>
<VS FY11>
Double growth in 2015(00 Mill Rs)
DNHA
DNKI
<120>
(00 Mill Rs)
DNHA
DNKI
<213>
<VS FY11>
Double growth in 2015(00 Mill Rs)
300
400
500
DNHA
DNKI
<120>
(00 Mill Rs)
DNHA
DNKI
<Sales>
<VS FY11>
Double growth in 2015(00 Mill Rs)
DNHA
DNKI
<120>
(00 Mill Rs)
DNHA
DNKI
<213>
<VS FY11>
Double growth in 2015(00 Mill Rs)
300
400
500
DNHA
DNKI
<120>
(00 Mill Rs)
DNHA
DNKI
<Sales>
<VS FY11>
Double growth in 2015(00 Mill Rs)
DNHA
DNKI
<120>
(00 Mill Rs)
DNHA
DNKI
<213>
<VS FY11>
Double growth in 2015(00 Mill Rs)
300
400
500
128500
600
700(00 thousand)
<Vehicle production>
CV435
598
<100> <108>
<148>
<VS FY11>10 Mill market in 2020 (World No.3)
DNHA
DNKI
<120>
(00 Mill Rs)
DNHA
DNKI
<Sales>
<VS FY11>
Double growth in 2015(00 Mill Rs)
DNHA
DNKI
<120>
(00 Mill Rs)
DNHA
DNKI
<213>
<VS FY11>
Double growth in 2015(00 Mill Rs)
300
400
500
7592
95
294 312 340
470200
300
400
500
PV369 404 435100 DNHA
DNIN
<120>
SMB shift
DNHA
DNIN
<100> SMB shift
<VS FY11> DNHA
DNIN
<120>
SMB shift
DNHA
DNIN
<100> SMB shift
<VS FY11>
100
200
300DNHA
DNIN
<120>
SMB shift
DNHA
DNIN
<100> SMB shift
<VS FY11> DNHA
DNIN
<120>
SMB shift
DNHA
DNIN
<100> SMB shift
<VS FY11>
100
200
300DNHA
DNIN
<120>
SMB shift
DNHA
DNIN
<100> SMB shift
<VS FY11> DNHA
DNIN
<120>
SMB shift
DNHA
DNIN
<100> SMB shift
<VS FY11>
100
200
300
7592
95
294 312 340
470200
300
400
500
PV369 404 435100 DNHA
DNIN
<120>
SMB shift
DNHA
DNIN
<100> SMB shift
<VS FY11> DNHA
DNIN
<120>
SMB shift
DNHA
DNIN
<100> SMB shift
<VS FY11>
100
200
300
0
100
FY10 FY11 FY12 FY15
DENSO will expand the business more than market growth in India.
DNIN
FY10 FY11 FY12 FY15
DNINDNINDNIN
0
100 DNIN
FY10 FY11 FY12 FY15
DNINDNINDNIN
0
100 DNIN
FY10 FY11 FY12 FY15
DNINDNINDNIN
0
100
0
100
FY10 FY11 FY12 FY15
DNIN
FY10 FY11 FY12 FY15
DNINDNINDNIN
0
100
Import amount from India to Thailand
2,500,000
DENSO will expand the business more than market growth in India.Export amount from Thailand to India
90,000,000
100,000,000Localization
New product (Starter/FP)New product
(VCT/HTR )
1,000,000
1,500,000
2,000,000
TH
B
40,000,000
50,000,000
60,000,000
70,000,000
80,000,000
, ,
TH
B
JPN Earth quake & MS strike
TH flood
(VCT/HTR case)
TH flood
0
500,000
,000,000
0/1
0/2
0/3
0/4
0/5
0/6
0/7
0/8
0/9
/10
/11
/12
1/1
1/2
1/3
1/4
1/5
1/6
1/7
1/8
1/9
/10
/11
/12
2/1
2/2
2/3
0
10,000,000
20,000,000
30,000,000
, ,
10/1
10/3
10/5
10/7
10/9
0/11
11/1
11/3
11/5
11/7
11/9
1/11
12/1
12/3
10 10 10 10 10 10 10 10 10
10/
10/
10/ 11 11 11 11 11 11 11 11 11
11/
11/
11/ 12 12 12
Year/Month
Both India & Thailand are increasing mutual trading (export amount Thailand : India = 4 : 1).
10 10 10 10 10 10/ 11 11 11 11 11 11/ 12 12
Year/Month
8. FTA utilization situationDuty/other logistics cost by country
Page Page 11 11 / / 1313
Cost
amount
Sales am
o
Duty
Other cost
Sales
38.3%
FY11
unt
35.4%12 5% 9 5% (0%)
9.0%
63.5%
TH IA MY PH VN AU IN
12.5% 9.5% (0%)
DENSO i Th il d & I di d t tDuty ratio : 39 0%(FY10) 32 1%(FY11) DENSO in Thailand & India pay duty most.
Amt (MB) Analysis of FTA/EPA utilization (Thailand case)Threat
Duty ratio : 39.0%(FY10) 32.1%(FY11)Reduced by utilizing FTA/EPA, but still too high
Imported Amt97.8%
y ( )
• Less competitiveness by Duty
• Less merit from regional complementationImported AmtApplied Tax privilege Can not get the global demand by Asia/India
【Issue】
JTEPA ATIGA ACFTA TAFTAAIFTA AKFTA
13.1%
26.5% 100%11.3% 74.6%
(1) Short term
(2) Long term
[Bilateral agreement]
[RCEP concept ]
Short term issue (Bilateral agreement)
Local content:Added Value ratio more than 35 % & Tariff code change standard satisfaction (6 digit)
Page Page 12 12 / / 1313
Local content:Added Value ratio more than 35 % & Tariff code change standard satisfaction (6 digit)
<DENSO product related>
ASEAN India India ASEAN (Thai)Normal track Condenser, Evaporator, Expansion valve,
Shroud, Fan blowerSensitive track Radiator, CDI amplifier, A/C amplifier, ECU
Washer
ExemptionStarter, Alternator, Motor, Cooling unit, Compressor, Common rail, Meter, Injector, Fuel pump module, Fuel filter, MagnetoMany sensitive track item, then Duty
Radiator, Oil cooler, Fuel heater
M j it it b 0% d t b 2014Remarks Many sensitive track item, then Duty reduction up to 5% ← limited merit Majority item becomes 0% duty by 2014Remarks
DESCRIPTION From HS CODE Normal rate % FTA rate % FTA SAVINGS % FTA SCHEME FTA BENEFIT
STARTER ASSY Thailand 85114000 7.5 ‐ ‐ NOT APPLICABLE <Example>
STATOR ASSY Thailand 85119000 7.5 6 1.5 TIFTA 1.5
SHAFT Thailand 84831099 7.5 ‐ ‐ NOT APPLICABLE
SLIP RING Thailand 40169990 7.5 7 0.5 TIFTA 0.5
CORE, ROTOR POLE Thailand 85119000 7.5 6 1.5 TIFTA 1.5
Many exemption@ India
CORE, ROTOR POLE Thailand 85119000 7.5 6 1.5 TIFTA 1.5
TERMINAL SUB‐ASSY Thailand 85369090 7.5 ‐ ‐ NOT APPLICABLE
SHAFT, ARMATURE Thailand 84831099 7.5 ‐ ‐ NOT APPLICABLE
GEAR, STARTER INTERNAL Thailand 84834000 7.5 ‐ ‐ NOT APPLICABLE
AIFTA has difficulties for us. Bilateral agreement or Condition change is appreciated.
SHAFT,STARTER ARMATURE,1W Thailand 84831099 7.5 ‐ ‐ NOT APPLICABLE
Page Page 13 13 / / 1313Long term issue (RCEP concept)
Th il d
Japan India
No COOJ 3333 J
110A’
Double investment
Thailand
33J
J K
A 10034 A
Korea
No COO
T Duty
Higher costJ33110
KJ
34 +10110A’
TLess
competitiveness JK
K
33 33 33
K 33
J KK
K
33
33
yThailand customer
India customer
33p
for export
K 33K33
Regional agreement of FTA is desirable to maximize the benefit for global competition.
【Th il d/I di t b l d t FTA h l b ll 】
•Rolling up ROO cost calculation (ASEAN value = ASEAN + others)
•Simple & Easy method to roll up
【Thailand/India to be a leader to engage FTA scheme globally】
•Simple & Easy method to roll up
•Flexible operation of ROO definition (made in Thailand/India)