Calsonic Kansei Corporation

Mid-term Business Plan(FY17-FY21)

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Achieve Mid-term Plan Goals

Reinforce sales

expansion to

customers other than

Nissan & Make a

breakthrough from a

“Nissan-dependent

supplier”

Cycle to Achieve Compass 2021 Goals

Invest for growthCreate growth resources

Accelerate cost reduction

Maximize efficiency

Develop attractive

products

with innovative

technology

Realize Dantotsu

Monozukuri*

* Best-in-classMonozukuri

Reinforce sales expansion activities

Develop innovative new products

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To Be

Financial

Target

Core

Strategy

Mindset

Expand

Sales to

customers

other than

Nissan

Develop ”CK-unique“

new products

Realize

Dantotsu

Monozukuri

Independence & Initiative

5C PromotionCSR, Compliance, Customer Satisfaction,

Corporate Governance, CK WAY

Business

Foundation

Overview of Compass 2021

System Solution ProviderCabin Innovation, Energy Management

Value-added Sales* 750 billion yen

*Sales excluding imposed/supplied parts from OEMs

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Electrification Connectivity

Autonomous

Driving

Diversification of

Mobility

Opportunities for

Growth & Innovation

Disruptive Change in

the Automobile Industry・Changes in technology scope

・Changes in users’ values

・Entries of new players

Environmental Changes in the Future

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Compass 2021: Focusing Domains

Cabin for autonomous driving,

electrification, connectivity

Focusing Domains

Energy Management

Energy Efficiency / Environmental Performance

Cabin Innovation

Cabin Space

Intelligent cabin

• HMI (Large-sized meter, HUD,

Display mirrors, etc.)

• ECUs cooperative control

Cockpit Value products

• Interior products with high

“emotive” value

Electric Energy Management

Total management

New generation power

electronics products(Regenerated power storage system, inverter,

BMS, etc)

New generation

heat exchange products

Heat pump system

Thermal Energy Management

Power-saving high efficiency A/C

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Technology• High voltage system design

• Safety evaluation

System

• HMI • Electric power management

• Circuit/Software development

Products

• Exhaust

• Energy regeneration/conversion

• Interior

Focusing Domains

• Usability

• Sensing

• Displays

• Network/Communication

• CPM

• A/C system

• Thermal management

• Control system

• Energy balance prediction

• Traction control

• Exhaust purification/ restriction compliance

• Optimal temperature control

Energy Management

Energy Efficiency / Environmental Performance

Cabin Innovation

Cabin Space

Compass 2021: To Be

System Solution Provider

• Reliability evaluation

• Mechatronics

• CAE / MBE

• Electronics

• H/E, A/C

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Compass 2021: To Be

By focusing on

Cabin Innovation & Energy Management

Calsonic Kansei will become a “System Solution

Provider” with the DNA of Technology Innovation

and Passion for Monozukuri.

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Independence & Initiative

Compass 2021: Mindset

Taking the opportunity of becoming an independent Monozukuri company,

Calsonic Kansei will realize its robust growth

with each employee’s spirit of independence &

with ONE TEAM mindset among the entire company!

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Robust Growth (Sales Target)

Value-added Sales

Set growth target based on detailed Bid List.

Target to realize 750 billion yen value-added sales in 2021.

Unit: Billion yen

FY16 FY17 FY18 FY19 FY20 FY21

+25%

750

600

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Core Strategy (1)Sales Expansion to Diversified Customers

Targets

• Net sales expansion +150 Billion yen

• Sales of customers other than Nissan

20% ⇒ 30% on Value-added Sales in FY21

Measures

• Keep & expand Nissan business

• Challenge diversified customers

/ Expand sales to new customers

• Reinforce sales-expansion organization– Global team organization specialized in sales expansion– Reinforce the sales resources– Conduct Top management review on Bid status

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Targets

• Increase the sales amount of new products and innovative

products

6% ⇒ 30% on Value-added Sales in FY21

Measures

Core Strategy (2)Development of “CK-unique” New Products

• Development of “CK-unique” New Products– Reinforce Products Planning Function

Plan & develop “CK-unique” products with mid-to-long term viewpoint, and with customer-oriented & system-based cross-BU viewpoint

Set up Product Planning Office（October 2017）

Start “Advanced Product Planning Meeting”

– Strategic Resource Allocation Become possible to secure resources & investments required

for future growth

Decide the priority of new/innovative products and allocate the resources based on the prioritization

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Toward the goal of remaining an honest and trusted

company, we strive to create a rewarding workplace,

develop aware employees who tackle social issues,

build a resilient company, and contribute to the

achievement of a sustainable society

Business Foundation: CSR Activities

• Creating a rewarding workplace (decent work)

• Improving employee awareness about tackling social issues

• Compliance with international standards in human rights and labor rules

• Resolution of social issues through business operations

• CO2 Emission Reduction activities based on SBT

• Achieving the MTP

• Strengthening our CSR activities

Improving employee

awareness

Coexisting with society Improving corporate

value

Applying ISO26000 (International guidance on social responsibility)

Key Goals

CSR Vision

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Business Foundation: CSR Activities

* Abbreviation for Science Based Targets. Global initiative which to request companies to set science-based targets to meet Paris Agreement, which is to keep global warming less than 2℃ in average.

* Scope1: Direct emission by own company, Scope 2: Indirect emission following electricity usage purchased by the own company

As an activity to prevent global warming CK will promote CO2 Emission reduction activities based on SBT*.

• CO2 emission reduction target in scope 1and 2 (vs FY16 amount)FY21: -7%, FY30: -35%, FY 50: -90%

• With intensive energy-saving activities & introduction of reusable energy, we target to reduce CO2 emission.

FY16 FY21 FY30 FY50

･･･ ･････

-7%-35%

-90%

CO2emission

FY16=100

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To Achieve Compass 2021