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

Issue number 34 | May 2014

 Menu > Follow the links below! Inside this issue… > DENSO annual results > New Lambda Sensors Catalogue > Technical tips: A/C Compressor oils > Making contacts in the Benelux > Sponsoring Acceleration motorsports > Greek customer visits > Russian team expands

INTERVIEW Multi-channel but one focus: To drive your business At the end of its financial year 2013-14, Steve Richardson, Director After Market Sales at DENSO Europe B.V., explains how DENSO’s multi-channel approach is creating new growth.

“DENSO After Market has enjoyed growth across all markets Thanks to our positioning with all the major trading groups and product groups in its past financial year. This is no accident throughout Europe, we are able to work closely with our and demonstrates how, as a major automotive business, we are distribution partners, and engage more frequently and personally able to adapt to each market and customer base. with workshops. The benefits of this close communication are the enhanced confidence that installers have in our products, The notion of ‘being easy to deal with’ is often the simplest thing and their feeling of affinity to the DENSO brand. to say, but the hardest to achieve for some. But at DENSO, ‘being DENSO’ is our biggest asset and one we are very proud of. This means that we sell what we make, that we support our distributors and work with end users to ensure DENSO After Continued on page 2 Market’s products fit first time, every time.

www.denso-am.eu 2 DENSO Newsletter: Your update on what’s new from DENSO After Market Sales Issue number 34 | May 2014

 Continued INTERVIEW from page 1 DENSO announces year-end financial results DENSO Corporation has announced its global financial results for the fiscal year ending March 31, 2014:

• Consolidated net sales totalled 4,095.9 billion yen (US$39.8 billion), up 14.4 percent on the previous year. • Consolidated operating income totalled 377.7 billion yen (US$3.7 > DENSO Europe Headquarters in Weesp, billion), a 44.0 percent increase from the previous year. “Each regional market is different, each has its own model and rather than fight to • Consolidated net income totalled change this, we aim to lead and meet the 287.4 billion yen (US$2.8 billion), specific local requirements of customers 58.2 percent more than the on a daily basis. Russia, Greece & Poland previous year. are just three examples of countries where DENSO After Market has continued to “Sales and operating income rose flourish. due to growth in car production mainly in developed countries, Product development is continuing at a in addition to the impact of the pace and will continue to drive us forward in weak yen,” said Nobuaki Katoh, the coming year. Growth in our advanced, president and CEO of DENSO OE quality air-conditioning compressor and Corporation. engine management ranges, for example, is creating further opportunities for customers. In Europe, the gradual recovery from the economic slump and Our multi-channel approach therefore the effect of the weak yen led to encompasses many strengths, but with a improved sales of 498.9 billion single focus: to drive your business forward. yen (€ 3.7 billion), 34.0 percent up At its core is our ability to supply the on the previous year. As a result market’s best and widest choice of quality, of greater production volumes, replacement car parts and services, backed operating income totalled 12.4 up by market leading technical support. billion yen (€ 93.6 million), 216.1 percent higher than the previous Through this offering DENSO After Market year. is able to bring the automotive aftermarket supply chain closer together, as well as “For the new fiscal year, we expect working closely with distributors to ensure sales to rise and income to reduce. their customers can experience the latest This is due to smaller production OEM technologies quicker than ever before. volume within Japan, investment costs for initiating new products Everyone at DENSO After Market is looking and greater capabilities in overseas forward to delivering even more benefits plants for future competitiveness,” to our customers in the new financial year > Steve Richardson, Director After Market Sales said Katoh. ahead.” at DENSO Europe B.V. DENSO Newsletter: Your update on what’s new from DENSO After Market Sales Issue number 34 | May 2014 3

 Lambda Lambda Sensors expertise Many of the types of Lambda Sensors offered as part of the range expansion IAM programme are unique to DENSO and not offered by other major brands. For example, and new catalogue DENSO was the first company to make the Lambda Sensor a quantitative measurable sensor The new DENSO Europe After Market Lambda Sensors ensuring it can not only sense if Catalogue 2014/15 – part number DELS14-0001 – is available the air/fuel mixture is too lean or now. too rich, but also by how much. This development was a huge step forward helping ECU’s respond and anticipate much more accurately, leading to improvement in fuel economy and lower pollution levels.

New Lambda Sensors Catalogue For your free copy of the new DENSO Europe After Market Lambda Sensors Catalogue 2014/15 please contact your > DENSO’s replacement Lambda Sensors offer 64% parc coverage – and growing DENSO representative quoting Including full details of As well as part listings, the continually expanding part number DELS14-0001. DENSO’s recent range catalogue also features an DENSO Lambda Sensors Alternatively, view the catalogue extension - which saw the installation guide for direct programme offers customers online at www.denso-am.eu or addition of 19 new part and universal fit sensors, a the full package: the highest visit TecDoc. numbers covering 54 OE part useful fault analysis guide quality products, strong numbers and 60 applications including causes & solutions, technical support and the - the new catalogue features tips on brand recognition by latest information – such as all 399 part numbers and wire colour, and details of our new catalogue – to help 1,989 references in the the unique selling points of maximise sales potential.” expanded Lambda Sensors DENSO Lambda Sensors. programme, covering 5,300 DENSO’s Lambda Sensor vehicle types. There is also an informative range for the European Questions and Answers aftermarket is founded on an The extended range now section covering common exceptional understanding covers recent, popular queries such as the role of of original Lambda Sensor applications from Opel, Lambdas, how they work, the technology. Each part is Vauxhall, Renault, SAAB, stoichiometric ratio, and the manufactured to the same and DAEWOO, bringing differences between Air/Fuel exacting original equipment the overall European car (A/F) and Zirconia sensors. standards that DENSO parc coverage for DENSO’s supplies to leading car range to 64%; an increase of Stefan Verhoef, DENSO manufacturers around the approximately 5%. Product Manager Lambda world, with guaranteed long > The new DENSO Europe After Market Sensors, said: “The life and reliable operation. Lambda Sensors Catalogue 2014/15 4 DENSO Newsletter: Your update on what’s new from DENSO After Market Sales Issue number 34 | May 2014

TECHNICAL TIPS Why the right oil matters for A/C compressors DENSO After Market’s Senior Engineer Gerard Magielsen reveals why using the wrong A/C compressor oil is the biggest cause of product failure – and offers an essential A/C checklist Maintenance and repair of automotive air-conditioning (A/C) units, either manually or automatically controlled, represents an extensive opportunity for garages and workshops. Indepth technical knowledge of A/C systems, common faults, recommended components and oils are all essential to achieving customer satisfaction and building return business.

Central to this is a comprehensive knowledge of compressors. This is because 99.9% of all compressor problems are not related to product failure, but from a poor understanding of A/C system operation, maintenance and repair. To help, DENSO After Market has launched a new Compressor Installation Guide, which is attached to every DENSO A/C Compressor sold. > Gerard Magielsen, DENSO After Market Senior Engineer

However, there is one aspect that causes What are the pitfalls of If the oil is diluted, the lubricant base the majority of avoidable A/C Compressor universal oil? layer decreases. This results in the piston problems: oil. The use of incorrect oils, such as universal rubbing against the cylinder bearing oils or oil mixtures, inevitably leads to A/C surface. If the oil is too thick, it is unable Universal oil: A key cause compressor damage. This is because to ‘squeeze’ between the cylinder and the of compressor failure universal oils, often preferred by garages, piston. DENSO A/C Compressors have a tight tolerance between cylinder and piston Oil in the A/C system is essential, are PAO-oils, or mineral oils with a different of only 3 μm. A change in the oil viscosity primarily to lubricate moving parts, i.e. viscosity than synthetic PAG-oils. The can cause more frictional resistance, the compressor and the expansion valve differences between these two types of leading to an increase in compressor needle. It also enables heat to escape from oil means that they do not mix, leading temperature and subsequent seizure. the compressor. As with refrigerant, oil in to poor lubrication, damaged seals and the A/C system must retain its chemical increased wear. stability.

However, it is vital to choose the right oil for the job. Insufficient lubrication due to universal oil is the second most frequent reason for A/C compressor damage and failure. Analysis of DENSO A/C Compressor warranty claims for 2012 showed that in 24% of cases, garages did not use the correct PAG-oil needed for DENSO A/C Compressors. > DENSO A/C Compressors DENSO Newsletter: Your update on what’s new from DENSO After Market Sales Issue number 34 | May 2014 5

TECHNICAL TIPS

Quantity as important as quality DENSO also advises that it is not only the quality, but the quantity of oil in the system that matters. Too little oil leads to poor lubrication of the compressor, rising component temperature and oil scorching on the suction side of the compressor. Too much oil will increase the load on the piston-crank system, which can lead to a block in the body of the thrust bearing and the hard front piston co-pivotable skid plate. DENSO recommends To ensure the longevity of your DENSO A/C Compressor, DENSO always advises technicians to refer to the type label and only charge the compressor with refrigerator oil that is of the specified quality and viscosity. Warranty claims received after use of other oils or mixtures will not be accepted.

Don’t mix!  Blending or mixing different types of oils may cause the formation of paraffin. This can block the flow of the refrigerant and oil, leading to compressor seizure and system failure.

 Essential A/C Checklist As well as checking that the A/C system is properly filled with the correct amount and type of refrigerant and oil, garages and workshops must make several other regular checks:

• Check the pressure and temperature of the exhaust before and after the compressor • Check the temperature of the cables from the compressor and the condenser. High pressure should be hot and dry • Check the cleanliness of the condenser and radiator fan. The appearance of moisture or frost on the high pressure side could mean a blockage in the flow of refrigerant • Check the temperature difference before and after the dryer. A difference of more than 3°C indicates too much moisture > DENSO A/C Compressors and packaging • Check the refrigerant flow. Ice on any element of the air conditioning system is due to a blockage • Check the tension and condition of the compressor belt • Check for unusual noises from the compressor, expansion valve, fans, blowers and air-conditioning ducts 6 DENSO Newsletter: Your update on what’s new from DENSO After Market Sales Issue number 34 | May 2014

BUILDING LINKS WITH BENELUX CUSTOMERS ‘All aboard’ the Brevak Trade Show!

> The Jules Verne cruise ship, where the Brezan show took place

DENSO After Market took part in one of Europe’s most unusual exhibitions last month when it exhibited at the Brevak Tradeshow, which took place across several locations in the Netherlands and Belgium from 25 March to 10 April 2014.

Wholesaler Brezan arranged the tradeshow, which occupied two floors of the Jules Verne cruise ship. The ‘floating’ trade show visited 12 key cities across the two countries, ensuring that all Brezan customers had the opportunity to visit the show and meet with suppliers.

The 12-day event attracted more than 5,000 visitors for Brezan, > Visitors flock to the DENSO booth which is one of the biggest wholesaler groups in Belgium and the Netherlands, with a total of 139 outlets and eight depot locations.

Fifty exhibitors were invited to promote their brands and products and give demonstrations to visitors. DENSO took the opportunity to promote its most popular, OE quality parts programmes, which were displayed prominently on the stand.

Dominic Vrieze, DENSO After Market Sales Executive Benelux and Ralph van Delden, DENSO After Market Assistant Manager Export, attended the event.

“The Brevak Tradeshow is one of the most imaginative events in the automotive industry,” explained Mario Gundlach, DENSO After Market Regional Manager Export. “It was an ideal way of enabling customers across two countries to really familiarise themselves with DENSO’s expanding product ranges, and > Dominic Vrieze, DENSO After Market Sales Executive Benelux, alongside increase their technical knowledge.” the DENSO display DENSO Newsletter: Your update on what’s new from DENSO After Market Sales Issue number 34 | May 2014 7

BUILDING LINKS WITH BENELUX CUSTOMERS AutoTechnica, Service Station & Carwash 2014 Expo, Brussels

DENSO Europe After Market exhibited at the AutoTechnica, Service Station & Carwash Trade show in Brussels, Belgium from 30 March to 2 April 2014, held at Brussels Expo Centre.

The four-day event attracted over 31,000 visitors from the automotive industry. In total, there were 400 exhibitors showcasing their products to workshops.

On display was DENSO’s full aftermarket product range, which attracted plenty of attention from visitors. Also popular on stand was the ‘Know Your Torque’ competition, with participants invited to install a DENSO Spark Plug using the correct torque. Successful participants were awarded a DENSO > Customers could win a DENSO branded gift by installing spark plugs to the correct torque branded gift. were on hand throughout the event commented: “This was a very large Dominic Vrieze, DENSO After Market Sales to answer questions on all DENSO event and gave us the opportunity Executive Benelux; Arlette Augustin, DENSO After products available to wholesalers and to engage face to face with Belgian Market Marketing Communications Export & Eastern workshops. customers from various market Europe; Stefan Verhoef, DENSO After Market segments; thereby supporting our Lambda Sensors Product Manager; and Peter Valek, Mario Gundlach, DENSO After distributor customer base.” DENSO After Market Thermal Products Manager Market Regional Manager Export, Cartal-Rijsbergen Expo Tradeshow, Alkmaar DENSO also exhibited its aftermarket Onstand, visitors could see the vast array products and services at the Cartal- of DENSO After Market products now Rijsbergen Expo Tradeshow in Alkmaar, available from Cartal-Rijsbergen outlets. Netherlands, which took place from 17 to Dominic Vrieze, DENSO After Market 19 March 2014. Sales Executive Benelux; Ramon Mers, DENSO After Market Customer Service The location of the tradeshow was the Representative; and Ralph van Delden, AZ Alkmaar soccer stadium, with more DENSO After Market Assistant Manager than 70 exhibitors taking part. Export, attended the tradeshow.

The three-day event attracted 4,000 Mario Gundlach, DENSO After Market visitors, all of which were customers of Regional Manager Export, said: “We the Cartal-Rijsbergen wholesaler group were delighted to take part in this very – one of the biggest in the Netherlands productive event, and show at first hand with 20 outlets. the quality and support available to Cartal-Rijsbergen group customers.” > Cartal-Rijsbergen Expo Tradeshow in Alkmaar 8 DENSO Newsletter: Your update on what’s new from DENSO After Market Sales Issue number 34 | May 2014

 Report The first ACCELERATION 2014 event, DENSO sponsors in Portimão, Portugal on 26-27 April, attracted motorsports fans and families from across the country. Thirty three ACCELERATION cars lined up on the starting grid for nine races: Formula ACCELERATION 1, Legend SuperCup and MW-V6 Pickup Series, with DENSO branding race series featuring on the circuit and winners’ podium, above the pit lane and DENSO International Europe has joined innovative new race garages, and at food courts. Also in series ACCELERATION as a sponsor for its first ever season attendance were employees of DENSO in 2014. subsidiary Joao de Deus Thermal Systems, celebrating 100 years of manufacturing and aftermarket expertise. The weekend included a multi-artist concert headlined by David Hasselhoff, and a dance event featuring five international DJs.

For details of the full ACCELERATION 2014 event season, visit www.acceleration14.com.

strong background in motorsports. This will definitely help us raising the profile of our new series and boosting recognition.”

Yasushi Yamanaka, President & CEO DENSO International Europe, said: “We see ACCELERATION as a truly new concept in motorsports. Combining the three car > DENSO in the Winners’ Circle racing classes with two motor bike classes ACCELERATION brings a new dimension to technical partner since 2002; providing parts in one weekend will bring many fans to motorsports. With ten events taking place in such as tailor-made cooling components the race tracks around Europe. This will ten different countries, the new concept is a and spark plugs for the team’s V8 engine. definitely enhance our company’s presence multi-day, family-focused festival featuring Today, DENSO supports the FIA World in society.” three days of exciting car and motorbike Endurance Championship team based at racing, top music performances, shopping Toyota Motorsport GmbH. The new TS040 opportunities and excellent food and HYBRID race car is driven by a DENSO hospitality. rear motor. In Sweden, DENSO Sales also supports Volvo Polestar Racing in the The first of these unique ACCELERATION Scandinavian Touring Car Championship. racing and music festivals took place on April at the Autódromo do Algarve in In addition, DENSO spark plugs are Portugal. The series will now tour some of the featured in many classes of motor bike > Formula ACCELERATION 1 Single Seater best racetracks in Europe – including , racing. The fact that ACCELERATION Germany, , , Belgium, France, features car and motor bike racing in the Hungary, Croatia and The Netherlands. same weekend, makes this new event concept an especially good fit for DENSO DENSO has been sponsoring motorsports International Europe. since 1971. Among many sponsorship programmes, DENSO supported Panasonic Loek Bodelier, CEO of ACCELERATION

Toyota Racing in Formula 1 not only as said: “We are very proud to welcome > ACCELERATION runs both European Stock corporate sponsor from 2004, but also as a DENSO, a world-known company with a 1000 & 600 series DENSO Newsletter: Your update on what’s new from DENSO After Market Sales Issue number 34 | May 2014 9

Knowledge growth from Greek visits DENSO After Market’s European Just a week later, 15 key personnel from headquarters in Weesp, Netherlands Iaponiki SA (TEMOT) also visited, headed recently welcomed three further visits from by Marketing Manager Anna Magopoulos Greek distributor customers. and Import Manager, Stavros Angelakis.

The visits are part of an ongoing initiative to Mario Gundlach, DENSO After Market familiarise key customers’ senior personnel Regional Manager Export, said: “All three with details of DENSO’s expanding parts days were extremely positive and DENSO programmes, to build relationships, and After Market’s hospitality was very well > (Pictured L-R): Marios Gerogiannis, DENSO explore the opportunities that exist from received. Such visits to our headquarters After Market Assistant Manager OES & Commodities, Yiannis Golfinos, Product working together. provide a unique insight into the expanding Manager of Multipart-GA, and Yiannis product ranges we now offer, and highlight Fronimakis, DENSO After Market Sales Yiannis Golfinos, Product Manager at the exceptional product quality and Executive for Greece, Cyprus and Malta Multipart-GA, was first to visit the Weesp technical support that is available to all head office, followed by Panayiotis distributors.” Pantikidis, Product Manager of S&M-ATR in late March.

> Thirteen branch managers from Iaponiki SA (TEMOT) visited in April, together with (front row second from left) Marketing Manager Anna Magopoulos, and (middle row, far right) Import Manager, Stavros > DENSO’s Yiannis Fronimakis (L) and Marios Angelakis. Pictured with them are (middle row, third from right) Steve Richardson, Director After Gerogiannis (R) with Panayiotis Pantikidis, Market Sales at DENSO Europe, and (middle row, second from right) Yiannis Fronimakis Product Manager at S&M-ATR May we introduce… A warm welcome to DENSO Regional Sales Representative. in Moscow, Novosibirsk and Sales Russia’s new employee Denis graduated from the Vladivostok and a warehouse in Denis Martynovsky, who Institute of Economics and Moscow. has taken up the position of Psychology with a degree Regional Sales Representative in Psychology of Company Sales of DENSO Engine for aftermarket customers in the Management. Management Systems products, Central Region of Russia. Condensers and Engine Cooling This is the third appointment products in Russia increased by Denis has more than five years’ in the past two months to the 50% in 2013. Furthermore sales > Denis Martynovsky experience in the automotive expanding team in Russia; and of DENSO Starters, Alternators, industry, having worked with underlines DENSO’s continued Lambda Sensors and Spark companies such as Nokian Tyres growth in the country. Its Plugs increased by more than by and Goodyear in the role of presence now includes offices 20%.

DENSO EUROPE B.V. Hogeweyselaan 165 | 1382 JL Weesp | The Netherlands Tel. +31 (0)294 - 493 493 | Fax. +31 (0)294 - 417 122

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