EU-WayDevelopmentApproach< Cooperation & Competition Field >Smart Manufacturing / InternationalStandardization Forum 2020

Masato (Max) Nakagawa

DENSO Corporation: Fellow
Hiroshima University: Guest Professor
Place: Nihonbashi Tokyo
February 6th, 2020

Today‘s Discussion Point The Driving force of German-way development isbased on the way of working style“Cooperation” and “ Competition” in the early stage of development
・“Cooperation Field” common technology・standardization
・“Competition Field” differentiated technology

 Hint of our working style – work efficiency
・Average labor working time：Germany = 1,371 hrs vs Japan = 1,719 hrs
・Labor productivity：Germany = 66.6$ vs Japan = 45.5$note)Labor productivity = GDP /person / hour Innovation by “Industry-Academia Collaboration”
・ Good example of “Aachen Cluster”

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Agenda1. Self-Introduction

2. Company Profile
Company Outline Global Viewpoint
Engineering Activities in Europe

3. EU-Way Development Approach
4. Industry-Academia Collaboration

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© DENSO CORPORATION All RightsReserved.

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Agenda1. Self-Introduction

2. Company Profile
Company Outline Global Viewpoint
Engineering Activities in Europe

3. EU-Way Development Approach
4. Industry-Academia Collaboration

This information is the exclusive property of DENSO CORPORATION.
© DENSO CORPORATION All RightsReserved.

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Self-introduction
 Born in Aichi, Japan - December 30th 1956
 Graduated Hiroshima University in 1980

 Entered “Nippondenso”(former DENSO) in 1980
 Long-term experiences in overseas- Iowa, US: 1988-1993 Engineer- London, UK: 2003-2004 Chief Engineer- Düsseldorf, DE : 2005-2014 Engineering Head- Amsterdam, N L : 2014-2015 President & CEO- Munich, DE: 2016-2017 CTO- Tokyo, JP: since 2017.4 Global Affair Officer

Guest Professor, Hiroshima
UniversityMasato(Max) Nakagawa
DENSO CorporationFellow

since 2019.4 Fellow

Established “Aachen Engineering Center”
during working with DENSO Europe

Guest Professor

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© DENSO CORPORATION All RightsReserved.

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Agenda1. Self-Introduction

2. Company Profile
Company Outline Global Viewpoint
Engineering Activities in Europe

3. EU-Way Development Approach
4. Industry-Academia Collaboration

This information is the exclusive property of DENSO CORPORATION.
© DENSO CORPORATION All RightsReserved.

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DENSO Corporation Company Profile
Established

December 16, 1949

Capital187.4 billion yen (US$1.8 billion)

Revenue

Consolidated basis

5,108.3 billion yen (US$48.1 billion)

Operating Profit

Consolidated basis412.7 billion yen (US$ 3.9 billion)

Consolidated basis

168,813

Non-consolidated basis

39,315

Employees
Consolidated Subsidiaries

221 (Domestic 72, Overseas 149）

Affiliates under the Equity Method

38 (Domestic 14, Overseas 24）

Notes : U.S.dollar amounts have been translated, for convenience only, at the rate of 106.24 yen = US$1,
the approximate exchange rate prevailing on March 31, 2018. Billion is used in the American sense of one thousand million.

as of March 31, 2018

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© DENSO CORPORATION All RightsReserved.

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DENSO Global Network <consolidated basis>
total：221 companies

As of March 31, 2018■Europe■North America■Japancompanies

36employees

17,071companies〈DENSO〉

31

employees

employees

39,31524,330〈consolidatedcompanies〉

72

employees

35,289■Asia
companies■South America
companies

76

6employees

employees

49,7403,068This information is the exclusive property of DENSO CORPORATION.
© DENSO CORPORATION All RightsReserved.

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Global Corporate Profile
DENSO Global Network / Engineering

Core Technical Centers (T/C) and Satellites
Core T/CSatellite

NAMichigan

EuropeGermany

Asia & Oceania
ThailandKariya, andTennessee,
othersCalifornia
Korea

EnglandItaly
SwedenVietnam,Philippines,
Taiwan,Australia,

Japan

China
Shanghai

India
GurgaonNorth China,(Southwest,Xian, (Southsouth areas)
China）(SA)
Santa Barbara（Argentina）

Core T/C with satellite engineering centers to meet customer’s needs in 7 regions.
Japan, North America, and Europe are strengthening advanced development.

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© DENSO CORPORATION All RightsReserved.

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DENSO Global Network / EU Engineering
Coventry
Engineering Center(est. 1993)

Core Center

EU Technical Center
Aachen Engineering CenterTEC

PT, E/E, EHV, Info&Safety

Thermal/R&D
Thermal European Center

Aachen(DE)Coventry(UK)Munich(DE)Gothenburg(SE)Gothenburg(est. 1996)

Engineering
CenterU.K.

• Airconditioners• Heaters• Radiators• Oil Coolers• Intercoolers

GERMANYPOLAND• Compressors• Starters• Small Motors

Aachen Engineering
Center (est. 2005)

MunichEngineering
Center (est. 1984)

Czech (2003)• Airconditioners• Heat Exchangers

HUNGARYITALY
PORTUGAL• Intercoolers• Heaters• Gasoline Coolers• Airconditioners• Heaters• Radiators

SPAIN• Common rail systems• VCT• ETC

Development- and Sales Center
Headquarter
Production: A/C-Komponenten• ECU• Ignition Coils• Stick Coils• Air Flow Meter

ITALY• Starters• Alternators• Small Motors

Production: Powertrain, Electric, Elektronic
Sales Offices

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© DENSO CORPORATION All RightsReserved.

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DENSO AEC / Location
Rheinland in NRW
Wegberg

Düsseldorf

Düsseldorf

AEC
Aachen Engineering Center

Aldenhoven

CologneAachenRhein
AachenAldenhoven ATCWegberg

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© DENSO CORPORATION All RightsReserved.

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DENSO AEC / Site Information

AachenEngineeringCenter AEC Site Information
Establishment / 2005
Location / Wegberg, NRW,
Germany
Site area / 40,200 sqm

Total floor area / 9,500 sqm
Employees / 120

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© DENSO CORPORATION All RightsReserved.

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DENSO AEC / Capabilities
 R&D- Benchmarking- Concept making- Technology Research Advanced Engineering- System Engineering- Demo Engine/Vehicle

 Testing- System Engineering- Demo Engine/Vehicle

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© DENSO CORPORATION All RightsReserved.

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DENSO AEC / Engineering Domains

 Powertrain Diesel

 Powertrain Components
 Electronics

 Electrification

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© DENSO CORPORATION All RightsReserved.

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Agenda1. Self-Introduction

2. Company Profile
Company Outline Global Viewpoint
Engineering Activities in Europe

3. EU-Way Development Approach
4. Industry-Academia Collaboration

This information is the exclusive property of DENSO CORPORATION.
© DENSO CORPORATION All RightsReserved.

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RWTH Aachen University
3 Excellence Clusters• Integrative Production
Technology for High-Wage
Countries• Tailor-Made Fuels fromBiomass• Ultra High-Speed
Information andCommunication

42298 students(in the winter semester 2014/2015)

Foundation year

1929

512 Professors(as of Dec 31st, 2013)

RWTH Aachen
Germany´s BestUniversity2012
For the fields of• Electrical Engineering9 Faculties
260 Institutes
8 Collaborative• Mechanical Engineering• Natural Sciences• Business & Engineering

Research Centers

19% students ratio against Aachen city population

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Aachen Colloquium: International Congress（organized by RWTH Aachen University）

Top two International Congress in Europe
Vienna Motor Symposium & Aachen Colloquium
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Comparison of EU and JP Characteristics
JapanGermany

Business ModelJP unique  Global

EU optimize  Global

Features

Homogeneity / Uniformly

Multinational / Diversity

Working Style

Teamwork / Harmony

Rational / Individualism

Independent

Cooperation&Competition（unique technology by each OEM）
OEM ABDevelopment
StyleG・・・

TCompetition
Field
Uniquetechnology
Standardization

UZ・・・

Competition
Field
Unique technology

Standardization(Common technology)

Non-competition
Field

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© DENSO CORPORATION All RightsReserved.

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Non-Competition vs Competition Field
Example : ICE (Internal CombustionEngine)

Discussion Points

NonCompetition
Field(Cooperation)“WHAT”
・Measure in-cylinder pressure
real time・What kind of function?
・To ensure the accuracy?

“HOW”

Competition
Field

・Element parts
・How to utilize this device?
・Price→Added-value to end users

ExamplesDefinition of CPS
concept

・Pressure accuracy level

Test procedure

・Accurate measurementwith robustness

・Technology and elementparts
・Utilization
・Design andconfigurations
・CostNote）CPS: Cylinder Pressure Sensor
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© DENSO CORPORATION All RightsReserved.

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Example-2 : PEGASUS Project
Testing methodology
MILS-SILS-HILS

Feedback data from FieldScenario base approach

Collaboration among
OEMs, Tiers, Institutes

System Development Process

Tool Chain

ADAS/AD Testing Evaluation/Standardization
Based on Database Approach
Source：http://www.pegasus-projekt.info/files/tmpl/pdf/1st_European_CCAD_Folien.pdf
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© DENSO CORPORATION All RightsReserved.

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Germany-way working style
Higher Labor Productivity（data from 2015）
・ Average labor working time: Germany＝1,371hrs ｖｓ Japan＝1,719hrs
・ Labor productivity: Germany＝66.6＄ ｖｓ Japan＝45.5＄note）Labor productivity＝GDP / person/ hour

＜Reasons＞
・ The working style: Cooperation field & Competition Field
・ Restricted labor time by law（ex: no more than 10 hrs working a day）
・ Mittelshutant Power（small6mid-size company）【The points to be considers】
1. Japan industry viewpoint・ too many competition field
Cooperation field・ high talented worker
Education systemex) Germany-way internship system

2. Individual & management viewpoint【Individual】 maximize the output with limited working time
【Management】 strategic human development
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© DENSO CORPORATION All RightsReserved.

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Germany-way Internship System
1. Two type of Internship
１）Compulsory Internship (mandatary)
30 credits(maximum), full-time job
2) Voluntary Internship (free apply)

２. Example of Internship・ Spend one semester(4 months) for internship・ Compulsory＋Voluntary Internship(4 to 6months)【ex: RWTH Aachen University】
spring/summer semester：4/7～7/20 3.5months
fall/winter semester：10/8～2/1 4months【Features】
 Less mismatch between student and company by longworking experiences Industry-ready person by on-hand experiences

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© DENSO CORPORATION All RightsReserved.

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Agenda1. Self-Introduction

2. Company Profile
Company Outline Global Viewpoint
Engineering Activities in Europe

3. EU-Way Development Approach
4. Industry-Academia Collaboration

This information is the exclusive property of DENSO CORPORATION.
© DENSO CORPORATION All RightsReserved.

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German-way Collaboration NRW state・GDP１/４ of Germany・Population no#1 in the
16 states
・Biggest industry inGermany

Aachen Cluster

Fund(local government）

Private company
Collaboration

UniversityInstitutes(16 members）
ResearchCollaboration
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© DENSO CORPORATION All RightsReserved.

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Mobility Trend <CASE>

Connected

SharingIndustry Structure
ChangeDynamic Innovation
Huge investment
Resources

Autonomous
Driving

Electrification

Mega trend change once in 100 years,in automotive industry
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© DENSO CORPORATION All RightsReserved.

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Message for sustainable growth“It is not the strongest of thespecies that survive, nor themost intelligent, but the one
most adaptable to change.”

Charles Darwin
To pursuit sustainable growth & contribute
better society, Team Germany & Japan shouldcollaborate each other in many industry domains

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© DENSO CORPORATION All RightsReserved.

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Appendix

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© DENSO CORPORATION All RightsReserved.

Smart Manufacturing / International Standardization Forum 2020

Davos Meeting : 50th Anniversary year
＜World Economic Forum : Annual Meeting 2020＞
Date：2020 1/20-24
Place：Davos Congress Hall / Switzerland【This year’s 6 pillars Discussion Points】

1. Ecology:：Acting Now on Urgent Climate and Environmental Challenges
2. Economy：Anticipating Challenges to Global Economic Stability
3. Society：Investing in Human Capital for Inclusive Societies
4. Technology：Governing Fourth Industrial Revolution Technologies
5. Industry：Transforming Markets towards Sustainable and Inclusive Capitalism
6. Geopolitics：Navigating Geo-Economic Shifts towards a More Cohesive World

Masato Nakagawa / Fellow
DENSO CORPORATION
2020-2-6
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© DENSO CORPORATION All RightsReserved.

Davos Meeting＜WEF Annual Meeting 2020＞0Summary
1. Highlights••

This year’s Theme is “ Stakeholders for a Cohesive and Sustainable World ”
The 50th anniversary of the Annual Meeting was held at Davos. Prof. Klaus Schwas who isa Founder and Executive Chairman made an opening speech saying that the forum isguided by consisting of exceptional individuals from business, politics, academia and civilsociety who act as guardians of its mission and values.

2. Programme and participants••••More than 2800 participants from 118 countries
1680 business leaders from all industries
More than 282 public figures, including 53 Heads of State and government, 34 Heads ofInternational Organizations
50 Global Shapers, 34 social entrepreneurs and over 140 Young Global LeadersThis information is the exclusive property of DENSO CORPORATION.
© DENSO CORPORATION All RightsReserved.

Davos Meeting＜WEF Annual Meeting 2020＞1

＜Inquire＞
masato.nakagawa@jp.denso.com

Thank you for your attention!

- END Smart Manufacturing / International Standardization Forum 2020