DENSO Group s Global Mid-term Policy

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1 DENSO Group s Global Mid-term Policy In fiscal 2014, we were able to achieve our Mid-tem Policy targets for both sales and operating income ahead of schedule. In fiscal 2015, the final year of the DENSO Group Global Mid-term Policy, we will bring the activities on which we have been working to a firm conclusion and make progress in planning the next mid-term policy. Major Policies Basic Strategies and Progress Basic Strategies 1. Strategies to Expand Business for Ensuring Our Continuous Growth in Future Years Strengthen relationship with automakers and expand business in growing emerging markets. Develop system products that make vehicles more attractive for customers. Expand aftermarket business and develop new businesses. 2. Evolve by Continuing to Develop World's First Products Improve capabilities of product development focusing on world's first technologies. Establish global procurement, production and supply systems, that makes us (extremely) cost competitive.

2 3. Facilitating Group-wide Collaboration Worldwide and Speeding-up Corporate Management Strengthen our foundation to facilitate the collaboration of 120,000 associates in the DENSO Group. Foster a corporate climate that encourages associates to act quickly. Progress in FY2014 Under the Mid-term Policy Key points While global automobile production increased by 4.3% year on year, our sales increased by 14.4%, meaning that our sales growth surpassed the increase in production. Despite the increases in expenses and labor costs, operating income grew significantly, rising 44.0% year on year, due to production volume increase and the currency exchange gain, in addition to the cost reduction effort. In fiscal 2015, it is expected that the stagnation in developing countries will continue but that, overall, there will be moderate growth. In Japan, increased sales and decreased income are expected on account of the anticipated effect of the tax hike on consumer spending.

3 Approaches into New Businesses Fields We have identified efforts to foster new businesses as one of the core pillars of the DENSO Group Global Mid-term Policy and are working to expand businesses in order to secure sustainable growth. Fields Micro Grid Contribute to realization of low-carbon society through mutual power supply systems, such as home energy management systems (HEMS), storage batteries, charging / discharging stations and energy management systems, between vehicles and homes

4 Fields Contribute to realization of a society where it is safe, secure, and eco-friendly to live through electric assist technologies that draw on core technologies (motors and control systems) cultivated for vehicles Electric Assist Contribute to customer service improvements as well as safe and secure lifestyles through sensing technology applications Security Help in prevention and early detection of and in response to lifestyle-related diseases as well as contribute to improvements in quality of people's lives through body sensing devices/systems Healthcare Contribute to global environmental protection fuels by getting away from fossil fuels, for example, by absorbing and fixing CO2 and by biomass fuel, through a highly efficient algae culture process Bio Contribute to efficient and stable vegetable growing and improvements in agricultural competitiveness through greenhouse environmental control systems / energy-saving technologies Agriculture Support

5 Fields From the places they were grown to the point of consumption, contribute to secure transportation and supply of products that are safe to eat through energy-saving refrigeration / cold storage technologies and traceability controls Cold Chain Contribute to safe, secure, and comfortable lifestyles by supporting delivery of information within communities Community Network Solution Business