Denso Korea Automotive Corporation Business Report up until FY ended Mar. 2015

Financial Overview

(in millions of won)
FY ended Mar. 2015 FY ended Mar. 2014 FY ended Mar. 2013
Sales 591,272 598,629 583,368
Operating income 6,287 20,379 18,195
Net income 5,100 22,005 12,143

-Sales for the FY ended March 2015 were 591,272 million won, down 1.2% from the previous year.
-By product, electric components account for 66.1%, motors for 31.3%, and cooling and heating parts for 2.7%.R&D Structure and its Operation
-In September 1992 the Company established a technical center.
-As of March 31, 2015 the center has 72 employees in charge of development.
-The Company became the first Korean company that developed fuel motors and compressors through technical alliance with Denso Corporation and Asmo Co., Ltd.
-Currently promoting proprietary technology of wiper systems and developing R&D on modules of radiator. fan motor, regulator and A/C systems.

-In October 2013, the Company announced that its new R&D center in Korea has been completed. The Company invested USD 56 million in this 7,397-square-meter-facility located on 20,586 square meters in Uiwang, Gyeonggi-do. By utilizing this local development base, Denso aims to enhance business with the Hyundai Kia Automotive Group. (From a press release, October 1, 2013)

R&D Expenditure

(in millions of won)
FY ended Mar. 2015 FY ended Mar. 2014 FY ended Mar. 2013


5,312 4,336 4,416
% of sales 0.90% 0.72% 0.75%


Recent R&D Achievements

Products R&D Themes Period
Alternators Smaller products/ higher output
Wiper system Design blade
(Uni blade type)
Wiper system Smaller products/ higher output
Wiper system Design arm 2008-2009
Fuel pump motors Small pre regulator 2004-2006
Fuel pump motors Enhances higher efficiency
Fuel pump motors Unit type module 2007-2009
Ignition coils Utilize engine plug hole space 1998-2003
Bus cooler 1 unit type
(Cooling capacity : 25,000 kcal/h)
Stick coils Smaller product/higher output (40kv) 2008-2009


Capital Expenditure

-The Company is planning to invest approximately 20.5 billion won in FY ended March 2016.

-Denso Korea Electronics Corporation, a Korean subsidiary of Denso, held a ceremony to celebrate the completion of its new plant in Changwon on April 21, 2015. The plant has 58,676 square meters of building area, which is built on 82,845 square meters of land. It will produce instrument panels, smart keys, air conditioner panels, head-up displays, and other components, and will supply them to global automakers. (From a press release on April 22, 2015)

-In July 2013, the Company announced that it will expand the production capacity at its Hwaseong Plant. Having been awarded a new program from the Hyundai Motor Group, Denso will invest approximately USD 45 million to build a new plant adjacent to its existing facility. (From a press release, July 19, 2013)

-Denso Poong Sung Electronics Corporation will establish an electronic parts production facility (floor area: 40,000 square meters) and a research building (floor area: 6,000 square meters) in Changwon, Korea. Construction of the new facilities will begin in August 2013, based on a plan to start commercial operations in May 2014 when the buildings are completed. The total investment in this project is expected to reach 400 billion won by 2020. (From a press release, December 12, 2012)


Sales by Products (Non-consolidated)

(in billions of won)
Product FY ended Mar. 2015 FY ended Mar. 2014 FY ended Mar. 2013
Motors 390.6 183.6 192.7
Electrical components 185.0 395.2 374.2
Air conditioning components 15.7 19.8 16.4
Total 591.3 598.6 583.3


Production Capacity (Non-consolidated)

(in millions of won)
FY ended Mar. 2015 FY ended Mar. 2014 FY ended Mar. 2013
Motors 215,986 215,986 215,986
Electrical components 441,200 441,200 425,400
Air conditioning components 21,055 21,055 19,253
Total 678,241 678,241 660,639


Production Result (Non-consolidated)

(in millions of won)
FY ended Mar. 2015 FY ended Mar. 2014 FY ended Mar. 2013
Motors 186,174 183,304 193,720
Electrical components 399,704 397,087 386,718
Air conditioning components 14,604 18,107 16,232
Total 600,482 598,498 596,670


Capacity Utilization Rate (Non-consolidated)

FY ended Mar. 2015 FY ended Mar. 2014 FY ended Mar. 2013
Automotive parts 89% 88% 90%

*The utilization rate was calculated by dividing the actual production volume by the annual production capacity in monetary amount.