Message from the President

Message from the President I am deeply grateful for the support we have received from all our stakeholders. Fiscal 2014, the year ended March 31, 2014, was the second year of our Global Mid-term Policy. Higher production of automobiles in advanced economies and China, cost reduction efforts, and exchange gains from yen depreciation led to growth in both sales and income. Net sales rose 14.4% year on year to 4,095.9 billion, operating income expanded 44.0% year on year to 377.7 billion, income before income taxes grew 48.5% year on year to 418.6 billion, and net income increased 58.2% to 287.4 billion. The results for fiscal 2014 were better than the Company's performance prior to the Lehman Shock. In April 2013, we drew up the "DENSO Group Long-term Policy 2020." The DENSO Group shares the one goal of "Protecting lives, Preserving the planet, and Preparing a bright future for generations to come." We aim to deliver convenience as well as the joy of driving to people all over the world, while striving to balance growth with sustaining the global environment, as well as a society where each and every one of us can live in peace, safety, and happiness. We hope to contribute to the creation of such a society while gaining the confidence of all of our stakeholders. I sincerely appreciate the ongoing support of all our stakeholders. July 2014

Interview with the President Q1 A Please give us an update on the Global Mid-term Policy. How much progress has been made? On creating the DENSO Group Global Mid-term Policy, we set several objectives for fiscal 2016 (the year ending March 2016), namely to expand business to ensure continuous future growth, to evolve by continuing to develop world-first products, and to facilitate Group-wide collaboration worldwide and speed up corporate management. In fiscal 2014, the second year of the Global Mid-term Policy, the DENSO Group expanded business globally. In the environmental field, we developed a new diesel common rail fuel injection system with the world's highest injection pressure of 2,500 bar. In the security and safety field, we developed active safety systems that prevent traffic accidents from happening for not only luxury vehicles, but also compact cars, large-scale trucks, and large tourist busses. Leveraging our technologies in automotive products, we made progress on expanding aftermarket business and new businesses. As a result of these initiatives, in fiscal 2014, the DENSO Group achieved ahead of schedule its targets for net sales of 4,000 billion and an operating margin of 8.0%. With fiscal 2015 the final year of the Global Mid-term Policy, the DENSO Group is determined to see through its ongoing business activities to satisfactory outcomes.

Q2 What is your view of business conditions inside and outside Japan? A In fiscal 2014, the world economy grew at a faster clip than last year, even though growth slowed in emerging countries. In Japan, the economy was buoyed by stimulus measures and yen depreciation. Turning to the automotive industry, despite signs of slowing growth in emerging markets in Asia, such as Thailand and India, the automobile industry expanded overall, achieving record-setting sales volume thanks to market growth in China and advanced economies including North America. In Japan, sales were partially affected by the downward correction to robust demand attributable to eco-car subsidiaries during the previous year. Looking at the year as a whole, however, sales volumes increased owing to a pick-up in the economy, the launch of compelling new models, and the front-loading of demand prior to the consumption tax hike. In fiscal 2015, we project that the global economy will expand moderately, driven by growth in advanced economies while growth continues to taper in emerging economies. Regarding the Japanese economy, we are concerned that domestic demand will be weak for a while in the wake of the consumption tax hike, but we expect gentle expansion from the second half of the year on the back of strong exports and economic stimulus measures. Turning to the automobile industry, we forecast mild growth overall, as economic growth may flatten out in emerging countries. In Japan, we expect demand to be weaker than the previous year owing to the consumption tax hike.

Q3 What measures are being taken to bolster competitiveness? A The DENSO Group has been developing new products and production lines to strengthen its cost competitiveness. In fiscal 2014, DENSO developed the world's first automotive climate control units for automobiles that can be installed in a wide range of models, from compact car to luxury vehicles, without regard to manufacturer or sales region. Using new technologies to shrink the size of components by 20% and innovative engineering to conform the dimensions to car designs, we were able to standardize air conditioning units, which had until now differed for each car model, down to six varieties from the previous 18 types. As a consequence, development costs, which had been required for each car model, have been reduced considerably. The new air conditioning systems have been deployed in the Harrier, Noah, and Voxy models. We aim to expand their deployment to other models while accelerating the development of more standardized products like this. Moreover, DENSO continued to transition to leaner and more competitive plants. In fiscal 2014, we broadened the scope of this transition from the field of forging to the field of treatment processing, and developed a revolutionary painting facility that requires only 1/15th the space at 1/5th the equipment cost, and also realized a 30% reduction in processing costs. We plan to deploy this painting facility to our other plants. In fiscal 2015, we forecast a temporary decline in profits as domestic automobile output decreases following the consumption tax hike and as we make investments to enhance our future competitiveness. From fiscal 2016 onward, however, we look for earnings to increase as we should begin to see returns on our investments in new plants and products while benefits crystallize from our efforts to strengthen cost competitiveness.

Q4 What are your views on shareholder returns? A At DENSO, we strive to meet the expectations of all shareholders through consistent increases in cash dividends, giving due consideration to a comprehensive range of factors, including consolidated performance and the dividend payout ratio. Our dividend payout ratio target is 30%. We will consider future returns after the minimum required earnings retention for appropriate investment and development, taking into account the difficult business environment. In light of our recent performance and the operating environment, we declared an annual dividend of 105.00 per share for the fiscal 2014, an increase of 41.00 from the previous year. We are continually striving to provide a stable return of profits to shareholders.

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.

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.

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 Main Products and Activities 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

Fields Main Products and Activities 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

Fields Main Products and Activities 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

Global Management Note: Only major bases are identified on the map. Sales and Income by Segment Net Sales by Segment Operating Income by Segment Note: The segments changed from the third quarter of fiscal 2011. Others mainly includes local corporations in South America.

Performance and Outlook by Segments Japan Results for fiscal 2014 In the domestic automobile market, sales increased 10.3% year on year to 2,717.6 billion. Despite the reactionary decline from the effect of the Japanese government's subsidies for eco-friendly vehicles of the previous year, the number of vehicles sold during the year increased due to economic recovery, the market entry of attractive new models, and increased demand ahead of a consumption tax hike. Despite increased expenses, including R&D expenses, operating income soared 66.0% year on year, to 283.3 billion, due to such factors as increase in production volume and the currency exchange gain, in addition to the cost reduction effort. Approach for fiscal 2015 Demand is forecast to be temporarily sluggish as an effect of the consumption tax hike, but it is envisaged that the Japanese economy will make a gradual recovery from the second half onward, underpinned by strong exports and economic measures. Under these circumstances, we will be painstaking in optimum allocation of limited resources and move ahead with power shifts toward growth fields and operational efficiencies. At the same time, we will make ongoing strategic investments such as in new process methods tailored to the evolution of our products and investments with high cost-reduction effects that incorporate 1/N production equipment with regard to the creation of plants that are linked to improvements in our global competitiveness and value added. In addition, to lead the Company to future growth we will make contributions to both revenue and society by promoting broader sales strategies that anticipate automaker trends as well as by aftermarket sales expansion and the commercialization of new businesses.

Global Management Note: Only major bases are identified on the map. Sales and Income by Segment Net Sales by Segment Operating Income by Segment Note: The segments changed from the third quarter of fiscal 2011. Others mainly includes local corporations in South America.

Performance and Outlook by Segments North America Results for fiscal 2014 The U.S. automobile market showed strong sales and production due to the U.S. economic recovery, and the Company recorded increases in both its sales and income. Sales increased 28.5% year on year, to 816.6 billion, due to the increase in the number of cars produced by GM, Ford, Chrysler (collectively, the Detroit Three), and Toyota and heating, ventilation, and air-conditioning (HVAC) unit sales expansion. Operating income rose 9.1%, to 14.7 billion, due to such factors as gains in capacity utilization brought about by the sales increase. Approach for fiscal 2015 It is envisaged that there will be growth in consumer spending, due to such factors as an improvement in the employment environment and a recovery in the housing market, and that the rate of economic growth will rise. Under these circumstances, we will carry on from the previous year and further our efforts to expand sales to the Detroit Three and commercial vehicle and agricultural and construction equipment manufacturers in addition to expanding aftermarket business with a view to M&A. We will also further evolve hitozukuri (employee development) and monozukuri (the art of making things) on a localized basis and work to reduce variable costs, particularly for example by the local procurement of equipment and molds as well as components. In R&D, we will make progress in creating products that match the needs of the North American market by the localization of design.

Global Management Note: Only major bases are identified on the map. Sales and Income by Segment Net Sales by Segment Operating Income by Segment Note: The segments changed from the third quarter of fiscal 2011. Others mainly includes local corporations in South America.

Performance and Outlook by Segments Europe Results for fiscal 2014 In Europe, both sales and income increased, sales by 34.0%, to 498.9 billion, as a result the gradual recovery from the economic slump and the effect of the yen's depreciation. Operating income soared 216.1%, to 12.4 billion, due to such factors as production volume increase. Approach for fiscal 2015 It is envisaged that there will be gradual improvements in the employment and income environments along with an export-driven economic boost that will result in a rise in the rate of economic growth. In addition to ongoing sales promotion activities centering on European customers, we will leverage those contacts and put into place competitive production systems that also set DENSO products apart from those of our rivals to expand sales to businesses in the other regions. With a view to future growth, we will target business expansion, particularly into the security and safety field, and the development of new products using technologies developed in Europe. In addition, we will be working to acquire advanced technologies that leverage alliances.

Global Management Note: Only major bases are identified on the map. Sales and Income by Segment Net Sales by Segment Operating Income by Segment Note: The segments changed from the third quarter of fiscal 2011. Others mainly includes local corporations in South America.

Performance and Outlook by Segments Asia & Oceania Results for fiscal 2014 Although economic growth slowed down in emerging markets, such as Thailand and India, these were buoyed up by the robust Chinese market. Overall, there was an increase in the number of vehicles produced, resulting in our sales increasing by 18.8% year on year, to 943.1 billion. On the other hand, as operating income of 71.2 billion was 3.3% lower compared with the previous fiscal year, due to such factors as increases in labor costs and the startup costs of the plants and technical centers designed to strengthen our future competitiveness. Approach for fiscal 2015 The slowdown in growth in emerging countries is expected to continue, but as the region's potential for market growth remains as high as ever, we will take future growth into account in the construction of production and supply systems and of mutually complementary networks within the ASEAN region. We will also proceed with the local procurement of equipment and components to mainly realize expansion in sales for compact cars. In the area of technical development, we will develop locally optimized products in close collaboration with technical centers and connect these to sales expansion achieved by setting DENSO products apart from those of other companies.

Global Management Note: Only major bases are identified on the map. Sales and Income by Segment Net Sales by Segment Operating Income by Segment Note: The segments changed from the third quarter of fiscal 2011. Others mainly includes local corporations in South America.

The DENSO Group's Long-Term Policy 2020 has the slogan "Protecting lives, Preserving the planet, and Preparing a bright future for generations to come," which the Company has established as its mission, with a particular focus on preserving the planet as well as security and safety. Protecting lives, Preserving the planet, and Preparing a bright future for generations to come Preserving the planet Security & Safety Our mission in the next 10 years Value Creation Automobiles Automotive society Society as a whole Enhance the overall environmental friendliness and safety of automobiles Contribute to the creation of a power-efficient, secure society that uses energy and information infrastructures for automobiles Contribute to the creation of a safe, secure, and environmentally friendly society through aftermarket services Contribute to society as a whole by leveraging our core technologies built up through our activities in automobile development The above goals characterize the value that DENSO provides, value created from a global perspective to meet local needs. To achieve these goals, we develop new products and services through R&D activities focused on "world-first technology."

Based on its slogan of "Protecting lives, Preserving the planet, and Preparing a bright future for generations to come," DENSO is engaged in the mission of solving the environmental and safety issues automotive society faces toward the creation of a sustainable automotive society. In the environmental field, DENSO is advancing the development of primarily fuel-saving technology that will help conserve the global environment. In the security and safety field, the Company is aiming to deliver "Everyday Confidence" that supports drivers and prevents accidents and "Extraordinary Safety" that minimizes injuries caused by accidents. At the same time, DENSO is advancing a range of technical developments toward the creation of a sustainable automotive society. The Environment The Environment Reduce emissions of CO2 and harmful gases, reduce use and increase recycling of limited resources, develop alternative technologies

DENSO Environmental Technology Fuel-saving technology is one of the fields in which DENSO is focusing toward the solving of the issues facing automotive society. To make more effective use of energy that is mostly wasted by heat dissipation, the Company is working to make automobiles more energy efficient by such methods as improving the energy efficiency of and reducing the load on engines as well as the reuse of energy and engaging in its own energy management. Not confining itself to improving individual automobiles, the Company is expanding its field of view to encompass road transport infrastructure, such as traffic controls that utilize intelligent transportation systems (ITS), and advancing technical developments that will minimize wasted energy consumption in society as a whole. Commitment Example of technology applied to individual powertarains Internal combustion engine Motor drive (HV/EV) Diesel Engine Management System Common Rail System Increasing vehicle energy efficiency (Energy management) Increasing engine efficiency Increase the efficiency of engines to reduce wasteful use of fuel Autonomous Injection Accuracy Compensation Technology(i-ART) EGR Control System Sensor Technology Rail Ultra-highpressure Pump Direct Injection System EGR Control System Sensor Technology Stop/Start System Injector Engine ECU Gasoline Direct Injection Engine Management System Motor Generator Inverter DC-DC Converter Tandem Solenoid Starter

Commitment Example of technology applied to individual powertarains Internal combustion engine Motor drive (HV/EV) High-efficiency SC Alternator Increasing vehicle energy efficiency (Energy management) Reducing engine load Reduce the workload on the engine by minimizing the amount of energy not used for driving vehicle, such as the energy used for air conditioner Recovering energy Use the energy dissipated as heat in the brakes, to generate electricity Ejector Cycle Air Conditioner Cold Storage Air Conditioner Heat Pump Air Conditioner Deceleration Energy Regeneration System Lithium Ion Battery Pack Battery Monitoring Unit Battery Current Sensor SiC Power Device Heat Storage System Increasing energy efficiency in all sectors of society ITS-based traffic control Ease traffic congestion and allow drivers to avoid congested roads Avoidance and Reduction of Traffic Congestion by Improving Traffic Flow Convoy Driving

Security & Safety Security & Safety Reduce damage from collisions, avoid collisions, develop information and communication technologies, develop future autonomous driving technologies Security & Safety The main causes of accidents are said to be drivers discovering that they are late, errors of judgment, and driving errors. The Company is engaged in the evolution of two core technologies: sensing technology that accurately keeps track of the driving environment / driver / automobile status; and human machine interface (HMI) technology to provide driving support appropriate to the prevalent conditions. On the basis of these core technologies, DENSO is aiming for an automobile accident-free society by endeavoring to provide "Everyday Confidence" to prevent accidents and "Extraordinary Safety" to minimize injuries in the event of an unavoidable collision; a society in which drivers can easily recognize dangers and are assisted to not make errors.

Phase Everyday confidence Normal Driving Danger Extraordinary safety Pre-crash In-crash/Post-crash Automation/Information Warning Intervention Protection Assist The system controls the vehicle, and provides information when required.this eliminates difficulties and concerns about driving and reduces driver fatigue. The system warns and supports the driver in avoiding hazardous conditions. The system controls the vehicle when the driver cannot avoid an imminent collision. The system protects and quickly saves the occupants and pedestrians if the vehicle is involved in a collision. Application Forward Lane Keeping Assist Adaptive Cruise Control Full Speed Range Adaptive Cruise Control Forward Collision Warning Lane Departure Warning Lane Change Warning Distance Alert Driver Status Monitoring Autonomous Emergency Braking Airbag Pop-up Hood Automatic Collision Notification System Night Vision Intersection Automatic High Beam Intersection Movement Assist Lane change Blind Spot Detection Electronic Stability Control Parking/ Start Surround Monitoring System Cross Traffic Alert Collision Prevention against Pedal Mishit Surrounding Obstacle Warning Parking Assista

Through the DENSO style of (the art of making things), cutting-edge product development and innovative self-development and self-production of essential technologies, DENSO has generated a range of "world-first" products. This uncompromising stance on has laid the foundations for DENSO's increased competitiveness and enhanced corporate value. Supporting this creation of new value are a large number of engineers and technical personnel. DENSO believes that is, which is to say, the art of making good things is the same thing as the art of making good people, and this is the source and driving force behind value creation for DENSO. This Special Feature presents efforts in DENSO-style, which confronts the challenges of creating new value, and the that brings to fruition. Monozukuri Dantotsu (outstanding) Plants DENSO is working on a transition to superior plants to make its domestic production more competitive. We are targeting increased production efficiency through such measures as cutting processing costs through faster and more continually operating production lines, applying initiatives including the use of 1/N production equipment*. Reduced administrative costs and overheads from the rationalization of logistics and inspections and reduced material costs from reform of procurement and lower purchased parts costs will also contribute to increased efficiency. The Company will advance the extension of these facilities to overseas plants. *Equipment that significantly reduces floor area, investment costs, and by processing costs by aligning production volume (economic units) with assembly, through more-compact production facilities and upgrading the production line.

Ideal situations A plant in Japan that can be internationally competitive in the production field even if the yen appreciates to 70 to the US dollar. Secure production output and keep technological development capabilities An organization that has evolved through a culture that entails the participation of all of its members in a spirit of friendly competition, continuously taking up each challenge and consistently fine-tuning its skills. Activities Development of production technology speedily against overseas competition 1/N processing technology Energy saving technology Increase output Plant in Japan High-speed / Automation Synchronization of processing /Assembly line Optimization of inspection Improve productivity Optimization in / out distribution Customers, Suppliers Expand technology to suppliers Decreased lead time FY2013 FY2014 FY2015 FY2016 Activities of Model Plant The Whole Company Activity All business group Main 9 plants Overseas Expansion Expand globally to monozukuri technology Improve and adopt to local situation speedily

Development Case Study: Small-Scale Electric Die-Casting System One metal mold manufacturing method, die casting, is normally undertaken at large facilities, as the process involves the high-temperature melting and high-pressure injection of metal. Due to its innovation in process methods, DENSO has developed a small-scale electric die-casting system that has significantly reduced the size of the area covered by the facilities and the amount of energy used. Until now Large-scale hydraulic pressure die-casting Now Small-scale electric die-casting system The thinking behind this approach Fills unfilled sections (cavities inside the product) under high pressure Upsizing generates high pressure by hydraulic pump Exterior view: height 4.0m The thinking behind this approach Development of products in which it will be hard for unfilled sections to form even under low pressure Realizing electrification and simplification by low pressure. Exterior view: height 1.8m Product cross section Product cross section If low pressure used, can easily result in unfilled sections (cavities inside the product) Hard for unfilled sections to form, even under low pressure Pressure processing 68MPa 1/2 33MPa Floor area 14m 2 height 4.0m 1/6 5.5m 2 height 1.8m

Efforts in Sharing of Parts / Standardization Among the world's automakers, moves on the sharing of parts and standardization are gaining pace. There is thus the possibility of a significant reduction in the number of development processes for parts that previously differed between each type of car and each automaker, and improvements in both development efficiency and productivity are expected. In the case of upper body products, an area in which design and function are important, efforts are made to set DENSO products apart by reflecting regional and customer needs. Contrastingly, in the case of under body products, DENSO is targeting the development of next-generation products that incorporate improvements in terms of product capabilities at the same time as standardization by combining a number of competitive core technologies. DENSO s Goal: Standardization of the Good Products while Reducing the Type of Product Upper body products (Information/ Telecommunication, Safety Products) Differentiation of the function and the design to reflect regional needs Under body products (Platforms, Unit Products, and Devise) Standardization of the good products while reducing the type of product Regional Tastes / Environment Differentiation (Variation) Standardization Adjustment Optimal location and Products Development without Galapagosization based on other car makers in the future Core engineering which has competitiveness (Global Standards) Universal Value of Vehicles Smaller and lighter, and high-fuel efficiency Platform Marketability Appeal Regional Lows / Environment Car Electronics System Standardization of the system and technology to realize improve marketability in timely manner (Flexibility / Extensibility). Development Case Study: New Automotive Climate Control Unit The first of its kind in the world, this new automotive climate control unit can be shared by automakers, in products ranging from compact to luxury cars, and across sales regions. This was achieved by new DENSO technologies that reduced the unit's size by 20% and by significant standardization (from 18 models to 6) that was enabled by an innovative structure that has achieved commonality in vehicle design. From the production aspect, too, the new product realizes a convention-breaking level of standardization in its method of assembly, so that all 6 models can be assembled on a single production line.

Downsizing New Structure Downsizing by 20% from conventional model enable HVAC to be installed in vehicles ranging from compact to luxury cars. A new structure which enabled standarization of components while realizing required performance. Hitozukuri There are a total of a little less than 140,000 people working in the DENSO Group. The Group's varied and individual associates around the world have integral parts of the corporate DNA passed down to them, such as DENSO's attitude toward, and share values to grow and develop further. The DENSO Spirit In the DENSO Group, the DENSO Spirit clearly expresses our stance regarding the values of "Foresight, Credibility and Collaboration," which have been implicit since the foundation of DENSO Corporation and a driving force behind our activities. The DENSO Spirit has been translated into 17 languages and shared among associates. We are working hard to enhance training policies to develop associates who can study on their own and think for themselves, and who continually seek new challenges. Having put in place management systems tied closely to different countries and regions, we are implementing a range of initiatives.

DENSO Technical College DENSO Technical College is an in-house facility operated by the Company under Ministry of Health, Labour and Welfare certification. The college offers tuition in a wide range of disciplines with a view to nurturing the associates who will underpin DENSO's future. The college marked its 60th anniversary of its founding in April 2014, and at that time more than 9,000 people had graduated, more than 6,000 of whom are currently playing active roles at the forefront of DENSO. Given the constantly changing environment surrounding our industry, we will continue to provide skills and education to flexibly respond to those changes. DENSO Technical Skills Academy Training independently creative associates capable of flexibly responding to changes in the times and environment and who will form nucleus of future workplaces

WorldSkills Competition Training of highly skilled technicians who possess strong mental ability and imagination in abundance Regarding the high levels of skills and know how that shape technology and technical development as inextricably linked factors in, DENSO focuses on technicians and the passing on of skills. As part of that focus, the Company encourages participation in the WorldSkills Competition, where the highest level skills are contested. Over the 50 years, up to and including 2013, in which DENSO has sent participants to competitions, contestants have a track record of 28 gold, 15 silver, and 13 bronze medals. The WorldSkills Competition The Company also trains its gifted technicians from its overseas bases, where the handing down of skills is also encouraged. Thus contestants come not only from Japan but also from Thailand and Indonesia, and Denso (Thailand) Co., Ltd. (DNTH) has won medals at three consecutive WorldSkills Competitions. In the years to come, the Company will work to continue training its highly skilled technicians through these initiatives.

DENSO is organized around business groups. These businesses coordinate with one another to accommodate systemization and modularization, and decision making is conducted promptly in line with the conditions of each business. 35.0% Powertrain Control Systems 30.4% Thermal Systems Net Sales 4,095.9 billion 15.3% Information and Safety Systems 9.4% Electronic Systems 7.0 % Small Motors 0.9% Industrial Systems Consolidated Sales by Business Group FY 2014 Powertrain Control Systems 1,433.4 Thermal Systems 1,245.5 Information and Safety Systems 628.6 Electronic Systems 382.8 Small Motors 286.7 Others* 57.5 Automotive Total 4,034.5 Industrial Systems 35.6 Consumer Products 10.2 Others 15.6 New Business Total 61.4 Total 4,095.9 *Repair parts, original brand products of subsidiaries 0.2% Consumer Products 1.8% Others (Billions of yen) FY2013 1,238.2 1,057.5 576.9 342.1 256.0 51.7 3,522.4 33.5 9.2 15.8 58.5 3,580.9 Change(%) +15.8 +17.8 +9.0 +11.9 +12.0 +11.0 +14.5 +6.3 +10.9-1.3 +5.0 +14.4

Powertrain Control Systems Fiscal 2014 Topics New Products and Technologies Developed a new diesel common rail (DCR) fuel injection system with the world's highest level of injection pressure at 2,500 bars. Compared with the Company's previous 2,000 bar system, the new system can help increase fuel efficiency by up to 3% while also reducing hazardous substance particulate matter (PM) by up to 50% and nitrogen oxides (NOx) by up to 8%, contributing to lower fuel costs and less environmental impact. The new DCR fuel injection system is part of Volvo's new Drive-E powertrains in Europe. Honored with the 2013 Nikkei Excellent Products & Services Award for Excellence in recognition of the intelligent-accuracy Refinement Technology (i-art) feedback injection control system, a computer that controls common rail systems. The i-art feedback injection control system controls fuel injection precision to within 1mm 3 in volume and 1 / 100,000 of a second in timing. The Toyota Hilux, launched in Brazil in 2012, was the first mass production vehicle featuring i-art to greet the world. The awards recognize the technological development, growth potential, innovativeness, and industry/social impact of the i-art feedback injection control system. Developed an exhaust gas recirculation (EGR) valve unit, a major component of EGR systems that helps make diesel engine emissions cleaner. The new unit, the first in the world to integrate an air intake throttle valve and an EGR valve, which are usually installed separately in vehicles, is half the size of conventional models and reduces costs by 20%. The air intake throttle valve controls the amount of air entering the engine and the EGR valve controls the amount of exhaust gas to be recirculated into the engine.

Business Expansion and New Companies Established a production company in Cambodia, the Company's first presence there, as part of efforts to enhance the production and supply framework in the ASEAN region. In July 2013, production of sensor components for ignition magnetos (starters for motorcycles) commenced. Plans call for steadily expanding production to other products. Built an evaluation facility to strengthen the development of power electronics products, such as inverters used in hybrid vehicles worldwide, on the site of the Anjo Plant. The facility began participating in the development and evaluation of these products in April 2014. Decided to expand operations at the DENSO Mexico S.A. de C.V. (DNMX) manufacturing facility in Silao in order to meet expanding production of automobiles in Mexico. The Company will put in place a new manufacturing line for alternators with production scheduled to commence from October 2014. Construction on the Silao Plant, the third for DNMX, broke ground in March 2012. The plant started manufacturing heating, ventilation and air conditioning (HVAC) units in November 2013 and radiators and washer systems in January 2014. Commenced production at a third newly constructed plant at PT. DENSO INDONESIA in February 2014, in order to keep pace with expanding automobile production in Indonesia. The new plant produces engine control products, including engine electronic control units (ECUs) and variable cam timing (VCT) control systems, as well as starters and alternators. Sales expanded for inverters used in hybrid vehicles made by Nissan Motor Co., Ltd. (Pathfinder) and Mazda Motor Corporation (Axela). Results for Fiscal 2014 and Growth Strategies FY2014 FY2013 Change YoY Sales (Billions of yen) 1,433.4 1,238.2 +15.8% In fiscal 2014, sales increased considerably compared with the previous fiscal year, buoyed by a higher production volume at Japanese automakers and a recovery in China.

In fiscal 2015, to meet environmental regulations around the world, we will provide innovative world-first products that improve internal combustion fuel efficiency. Specifically, we will contribute to greater fuel economy and higher efficiency in internal combustion engines by increasing sales of gasoline direct injection systems and diesel common rail systems. In the field of electric motors, in addition to expanding sales of essential hybrid components such as motor generators and inverters, we will pursue miniaturization and cost reduction in these products. We will also leverage our core technologies and experience in the fields of starters, alternators, engine cooling systems, and semiconductors to develop new products including battery packs that make full use of our proprietary technologies. In aftermarket business for products including iridium plugs, we plan to invest in cost-competitive products suited to market needs and products with our proprietary technology at the core. Main Products Engine Control Components Ignition coils, Magnetos Ceramic substrates Spark plugs Diesel Particulate Filters (DPFs) Glow plugs Engine ECUs for motorcycles Exhaust gas sensors Exhaust gas temperature sensor System Control Components Intake and exhaust products: Exhaust gas recirculation (EGR) valves, Throttle bodies, Integrated air fuel modules, and others Variable valve products: Variable Cam Timing (VCT) components, Oil flow Control Valve (OCV) Drive control products: Integrated mechatronic modules, AT solenoid valves, Valve bodies, Shift-by-wire actuators Evaporator products: Purge valves, Evaporative leak check pump module Sensors: Knock sensors, Air flow meters, Accelerator Pedal Module (APM) Filters: Oil filters, Air cleaners Diesel Injection Products Common rail systems In-line fuel injection pumps, Rotary fuel injection pumps Nozzles Fuel filters Common rail systems

Gasoline Injection Products Fuel pumps Fuel pump modules Fuel injectors Direct injection components (Injector, Pump) Fuel pump module Engine Electrical Systems Starters ISG Alternators Lithium-ion battery pack MG stators Alternator EHV Components Inverters DC-DC converters Battery monitoring units Inverter

Thermal Systems Fiscal 2014 Topics New Products and Technologies Developed a refrigerator system for marine containers based on our cooling system technology for refrigerated trucks. As an industry-first for marine containers, the refrigerator system features independent control of the rotational speed of two compressors via inverters, realizing major savings in fuel costs and greater precision in temperature management. Developed a new automotive climate control unit that can be used in a wide variety of vehicles ranging from compact to luxury cars, regardless of manufacturer or sales region. The new climate control unit is deployed in Toyota Motor Corporation's new Harrier as well as in its Noah and Voxy models. With Hino Motors, Ltd., jointly developed the world's first electric refrigerator system for heavy-duty trucks using a hybrid unit. This system is used in the Hino Profia in Japan. Business Expansion and New Companies DENSO East Japan Corporation (currently Denso Fukushima Corporation) expanded its manufacturing plant to meet demand from increasing vehicle production in eastern Japan. In July 2014, it commenced operations on the new production line for engine cooling modules (ECMs), in addition to its current production of air conditioning systems.

Constructed a new plant at DENSO Mexico S.A. de C.V. (DNMX) in response to higher production at automakers' bases in Mexico. The new plant began making heating, ventilation and air conditioning (HVAC) units in November 2013, as well as radiators and washer systems in January 2014. Jointly established Yantai Shougang TD Automotive Compressor Co., Ltd. (YST) with Toyota Industries Corporation to manufacture compressors for heating, ventilation and air conditioning (HVAC) units. The new company began operations in December 2013. DENSO's product competitiveness and robust global supply structure were behind an increase in sales to General Motors. Results for Fiscal 2014 and Growth Strategies FY2014 FY2013 Change YoY Sales (Billions of yen) 1,245.5 1,057.5 +17.8% In fiscal 2014, sales increased as a result of higher automobile output in Japan and North America, and also growth in sales in Europe. In fiscal 2015, amid growing need for fuel efficiency, we plan to differentiate ourselves from our competitors through technologies that provide real-world improvements in fuel economy. In addition, we aim to please our customers with comfortable cabin environments that are secure and safe drawing on the key words of "human comfort." Main Products Thermal Systems Products Air-conditioning systems for cars Radiators Cooling fans Inter coolers Oil coolers Engine cooling modules Reserve tanks Air-conditioning system

Climate, Cooling, and Heating Products Air-conditioning systems for buses and construction equipment Truck refrigeration units Air purifiers Engine cooling module

Information and Safety Systems Fiscal 2014 Topics New Products and Technologies Developed a laser radar as a sensor for safety systems that help avoid crashes and lessen the impact of collisions. A first for compact vehicles, the new laser radar is used as a sensor for the Smart Assist System that Daihatsu Motor Co., Ltd. deploys in its Move, Mira e:s, and Tanto car models. Developed a new in-vehicle infotainment (IVI) system with dual large-size touch-panel displays. The top screen displays maps and other information, and the bottom screen is a touch panel display with smooth controls. The IVI system is used in the Infiniti Q50 made by Nissan Motor Corporation for the U.S. market. Developed a driver status monitoring system that is able to detect a driver inattentiveness or drowsiness with facial recognition technology. Consisting of a near-infrared camera and an electronic control unit (ECU), the system is installed under the instrument panel visor. The ECU analyzes pictures taken by the camera of the driver's face to determine the angle of the head and openness of the eyelids. If the eyes are closed or the head is at an odd angle for a preset length of time, the system sounds an alarm for the driver, reminding them to drive safely. This driver monitoring system is currently used in the Hino Profia large truck and the Hino Selega tourist bus made by Hino Motors, Ltd.

Business Expansion and New Companies Acquired shares of Pricol Components Limited, a subsidiary of Pricol Limited, a major automotive parts maker in India, in order to expand the instrument cluster business in India. Pricol Components designs, manufactures, and sells instrument clusters for passenger vehicles. DENSO has a 51% stake and Pricol has a 49% stake in the company. Decided to expand the two technical centers of DENSO AUTOMOTIVE Deutschland GmbH in Germany (Aachen Engineering Center and Munich Engineering Center). With this expansion, we aim to more rapidly address customer needs and enhance the design of products for local customers. We will also contribute to development in other regions by promoting future developments in advanced technological areas in Europe. Acquired a stake in ADASENS Automotive GmbH, a developer of image recognition technologies for advanced safety systems, to help accelerate the development of active safety technologies. ADASENS develops advanced driver assistance systems, particularly in the area of image recognition technologies using cameras to detect obstacles ahead, behind, and around vehicles. Results for Fiscal 2014 and Growth Strategies FY2014 FY2013 Change YoY Sales (Billions of yen) 628.6 576.9 +9.0% In fiscal 2014, sales increased as a result of higher automobile production, increased adoption of active safety systems, and stronger sales of IVI and instrument clusters. In fiscal 2015, we will leverage our strengths in millimeter-wave radar, laser radar, cameras, and sonar to coordinate core sensing, control, and human-machine interface (HMI) technologies as a system supplier and develop cutting-edge safety technology. Also, as we gather increased data about not only safety but also convenience and comfort, improving HMI technologies in cars has become a more important problem to tackle. For this reason, we continue to work on development of communication between cars and between cars and infrastructure.

Main Products Information and Communications Instrument clusters Head-up displays Integrated climate control panels Smart keys Remote keyless entry controllers Rear and corner sonars Car security systems Body ECUs Tire pressure monitoring system Remote touch controller Car navigation systems Electronic Toll Collection (ETC) on-board equipment Telematics control units Advanced vehicle operation system In-vehicle infortainment systems (IVI) Driver status monitoring system Instrument cluster Car navigation system Driving Assist and Safety Products Airbag sensors and ECUs ABS/ESC actuators and ECUs Millimeter-wave radars and ECUs for pre-crash safety systems and adaptive cruise control systems Laser radars and ECUs for adaptive cruise control systems Cameras and ECUs for Lane Keeping Assist ECUs for adaptive front lighting systems Millimeter-wave radar Electric Control Components Sensors and ECUs for Electric Power Steering (EPS) systems Electric Drive Unit (EDU) for electric Variable Cam Timing (e-vct) system

Electronic Systems Fiscal 2014 Topics New Products and Technologies Advancing the development of products integrating mechanical and electronic components including transmission, variable-cam timing, idle-stop, and motor ECUs to achieve lower costs, better adaptability, smaller sizes, and lighter weight with the aim of increasing the appeal of electronic systems. Advancing the development of silicon carbide (SiC) power devices that boast considerable durability against high voltages and temperatures and low power loss to help realize more compact, lower cost inverters and sensors for hybrid vehicles. Business Expansion and New Companies Established a new engineering and development base in Tokyo in July 2014 to strengthen our engineering and development framework for automotive electronic components that improve environmental and security and safety performance. Established the Basis Electronic Technology Unit in July 2013 for the purpose of developing electronic systems with a bird's-eye view of the entire vehicle. We will work on creating new integrated products while enhancing standardization and security. We took steps to increase sales of engine ECUs and various sensors to overseas automakers including customers in Europe.

Results for Fiscal 2014 and Growth Strategies FY2014 FY2013 Change YoY Sales (Billions of yen) 382.8 342.1 +11.9% In fiscal 2014, sales expanded firmly for electronic products for environmentally friendly vehicles, especially hybrid vehicles and cars with MAZDA SKYACTIV technology. In fiscal 2015, while further refining our existing products, we will work to create new products through the development of cutting-edge semiconductors and core products integrating mechanical and electronic components for use in environmental and safety products. We will continue to strengthen our global expansion, focusing on important customers and emerging markets. Main Products Electronics Products Engine ECUs Transmission ECUs Power management ECUs Engine ECU Electronics Devices Semiconductor sensors ICs Power modules Semiconductor sensor (Inertia sensor) Relays

Small Motors Fiscal 2014 Topics New Products and Technologies Developed a power window motor with enhanced safety features. In addition to preventing fingers and hands from getting caught in the window when it is raised, the new world-first safety feature entails sensors that prevent fingers and hands from getting pinched in the window when it is lowered, by stopping the movement of the glass. The motor is smaller and lighter than before, thanks to multi-polarization and improved power efficiency. We began mass producing the power window motor in Japan as the first step to expanding production to seven plants overseas. Business Expansion and New Companies Built a new manufacturing facility at DENSO HARYANA Pvt. Ltd. (DNHA) to keep pace with growth in automobile production in India. In July 2013, the new plant began manufacturing small motors for products, such as windshield wipers, power windows, and thermal component engine cooling modules. Established a new company in Myanmar through joint investment between ASMO Co., Ltd. and its subsidiary PT. Asmo Indonesia, as part of a plan to reinforce the production and supply structure in the ASEAN region. The new company began manufacturing components related to small motors used in automobiles in January 2014. Decided to establish a new company in Mexico through joint investment between ASMO Co., Ltd. and its subsidiary ASMO NORTH AMERICA, LLC., as a part of efforts to strengthen the production and supply structure in North America. The new company will start to produce small motors and related components for automobiles in April 2016.

Results for Fiscal 2014 and Growth Strategies FY2014 FY2013 Chage YoY Sales (Billions of yen) 286.7 256.0 +12.0% In fiscal 2014, sales increased largely attributable to the increase in auto production and growth in sales of windshield wiper systems and power window motors mainly in North America. In fiscal 2015, we aim to increase sales further by launching products tailored to customer needs, focusing on the development of unique products such as highly efficient, highly reliable system controllers amid tightening fuel economy regulations and growing demand for environmentally friendly vehicles. We plan to expand the overseas production structure in response to customer expectations for local procurement. Affiliated Company: ASMO Co., Ltd. Main Products Windshield wiper systems Windshield washer systems Power window motors, seat motors Power sliding door motors Power steering motors Motors for engine control systems Other automotive motors Windshield wiper system Power window motor

Industrial Systems Fiscal 2014 Topics New Products and Technologies Launched the WS1-QB scanner, a 35-gram scanner that the user wears on their head, enabling them to scan bar codes and QR codes without touching the scanner. First in the world to develop a robot arm that moves pieces in shogi (Japanese chess) based on commands from computer software. The robot arm is based on the VS-060 six-axis articulated robots, which offer the world's highest speed and precision in their class. This robot arm was featured in the Third Computer vs. Player Shogi Competition. Business Expansion and New Companies Decided to merge DENSO WAVE Incorporated, which develops and sells automatic data capture devices and industrial robots and other systems and devices, and DENSO ELECS Co., Ltd., which manufactures products developed by DENSO WAVE, in January 2015 in order to further increase our competitiveness in the industrial equipment field. Results for Fiscal 2014 and Growth Strategies FY2014 FY2013 Change YoY Sales (Billions of yen) 35.6 33.5 +6.3%

In fiscal 2014, sales rose 6.3% compared with the previous fiscal year, thanks to higher sales of AUTO-ID products in Japan and industrial controllers inside and outside Japan. In fiscal 2015, we will focus on strengthening core businesses, creating new businesses, and expanding business domains in line with the 2015 Mid-term Policy, and translate these efforts into growth. Affiliated Company: DENSO WAVE INC. Main Products Automatic ID Data Capture Devices Bar code handy scanners and handy terminals QR code scanners and handy terminals IC card readers/writers Radio Frequency-Identification (RF-ID) systems Industrial robot Factory Automation (FA) Products Industrial robots Programmable controllers Refrigeration and Air-conditioning Systems Cooling units for electronic devices (mobile phone base stations and other devices) Spot coolers and heaters

Consumer Products Net Sales (Billions of yen) 10.7 9.2 10.2 2012 2013 2014 (FY) Fiscal 2014 Topics New Products and Technologies Introduced a new model for home energy management system (HEMS) that helps homeowners conserve energy. This new model lets homeowners see in real time their electricity usage in each area of their home on a smartphone, tablet, or PC. While at home, users can also turn on and off home appliances compatible with HA and ECHONET standards. Results for Fiscal 2014 and Growth Strategies FY2014 FY2013 Chage YoY Sales (Billions of yen) 10.2 9.2 +10.9% In fiscal 2014, overall sales were slightly decreased from the previous fiscal year. Sales of HEMS increased as brand awareness of smart houses improved, but this growth faded by weaker sales of CO2 refrigerant heat-pump water heaters in the market as a whole. In fiscal 2015, outside the automobile field, we aim to launch products created with our proprietary technologies and expand our presence in the housing equipment business through the application of core automotive technologies.

Main Products CO 2 refrigerant heat-pump water heaters Automatic faucets Central air conditioner Home energy management system (HEMS) CO 2 refrigerant heat-pump water heater

In a global environment of continued severe competition, DENSO has further strengthened its R&D development in order to create new value and produce new technologies. In conjunction with this, we have instituted roadmaps to track the progress for each development span from the short term (up to 5 years) through the medium term (up to 10 years) to the long term (more than 10 years). These roadmaps are updated every year, incorporating changes in society and regulations, and shared between each division and engineering research and development center so that decisions can be made about which projects to start and which to alter or terminate. Roadmaps are used throughout the Group, including proposals for unique kinds of value and technologies in each region. Presently, the Company's R&D Division makes decisions about new technology proposals, but in the future we aim to build a global R&D structure centered on European and North American sites. Technology management strategies * DENSO projects: accelerated development limited to 2 years at business groups or Engineering Research & Development Center

Roadmaps Technology management strategies Society, regulations Social trends, changes in regulations Customer value Future automobiles, the automotive society New value Systems Necessary future systems Products Products adapted to systems Adjustment and reconciliation Adjustment and reconciliation Technologies Core / component technologies for products Development Network In order to develop products that are optimized to meet the conditions and needs in each of the world's regions, the DENSO Group maintains seven technical centers and is strengthening its global development network. Overseas in fiscal 2014, we expanded two technical centers in Germany (the Aachen Engineering Center and the Munich Engineering Center) and invested in the German company ADASENS Automotive GmbH, which develops image recognition technologies for advanced active safety. In Japan, we established a design and development base for automotive semiconductor circuits in Tokyo, aiming to enhanced our advanced technologies in environment, security and safety fields. In the fiscal 2014, R&D expenditure amounted to 368.7 billion, of which the overseas segment accounted for approximately 15%. Going forward, we will be enhancing the utilization of our overseas bases and are thus planning to increase the proportion of overseas R&D expenses.

In fiscal 2015, we are expecting R&D expenditure of 390.0 billion and will continue R&D activities at an ongoing high level. We will also continue to conduct enterprising R&D with a view to enhancing our competitiveness. We consider R&D expenditures at 8% 9% of sales to be an appropriate level and will work proactively on the power shift to priority fields, enhancing our integrated development/production network, and raising operational efficiency by the promotion of standardized procedures. Core Technical Centers Europe India Asia & Oceania China North America South America R&D Expenditures / Ratio of R&D Expenditures to Net Sales

Cutting-edge R&D Innovations: DENSO s Thoughts on Future Car Society Amid reports that errors in awareness and handling as well as of judgment on the part of drivers are contributory factors in 75% of all road traffic accidents, DENSO is accelerating the development of technologies linked to proper car handling. These technologies correctly recognize the driving conditions, convey audio and video information about those conditions to drivers, and are linked to proper car handling in order to accurately support driver awareness, handling, and judgment. Here, we provide an example of those efforts. Interactive Communication Cockpit Realized through DENSO's accumulated sensing and human-machine interface (HMI) technologies, the Interactive Communication Cockpit represents the safety and security technologies of the near future. Sensing technologies These technologies combine information from multiple sensors to more reliably project recognized images showing the presence of pedestrians and bicycles or leverage vehicle-to-vehicle communication and infrastructure-to-vehicle communication technologies, so that drivers detect the presence of blind-spot hazards. HMI technologies These technologies link meters with a head-up display and remote touch controller to provide drivers with necessary video and audio information at the appropriate time and in an easily understood format. DENSO will continue to advance R&D with an eye to the future, to reach the stage where driving is made safer, more secure, and more enjoyable by car to driver communication. More development of the technologies installed in the Interactive Communication Cockpit will be conducted toward product commercialization at an early stage.

Key technologies 1 Communication Robot: Provides information through dialogue with the driver. A friendly humanoid robot provides information through dialogue based on a driver's individuality and preferences. The robot is designed to give a sense of security, and a safe and fun driving experience. 2 Large LCD Display: Presents information flexibly Depending on the driving situation, the large LCD flexibly adjusts its display mode to make the information easier to read.

3 Large Head-up Display: Presents information in a safe manner Drivers can safely obtain information while keeping their eyes on the road ahead. The large color display presents information on the driver's forward view in a timely and easy to see manner. 4 Electronic Rearview Mirror: Clearly presents information The mirror covers a wider field of view than ever before. In combination with image processing technologies, the mirror can clearly present information that requires the driver's attention. 5 Biometric Monitor: Checks the driver s health When the driver grasps the steering wheel with both hands, built-in sensors assess the driver's health.

1 Corporate Governance Basic Stance DENSO believes that establishing a corporate governance system designed to strengthen Group competitiveness is the key to maintaining and improving long-term corporate performance in a quickly changing global marketplace. It is also essential to promoting CSR management that is essential for sustainable growth on an ongoing basis. We are working to strengthen our corporate governance in accordance with this belief. Promotion Structure DENSO Corporation has adopted a corporate auditor system. In addition to statutory bodies such as the General Meeting of Shareholders, Board of Directors, Board of Audit and Supervisory Board Members and Accounting Auditor, DENSO Corporation has developed various internal control mechanisms. For rapid decision making and the execution of our operations, we have adopted an executive officer system that separates and clarifies the roles of the Board of Directors that is charged with management (decision making / oversight) and the senior managing directors and managing officers who are responsible for business execution.

Overview of Corporate Governance System Format Number of directors Number of outside directors Term of directors Number of Audit and Supervisory Board members Number of outside Audit and Supervisory Board members Number of meetings of Board of Directors Policy regarding incentives for directors Number of independent officers Remuneration disclosure Retirement benefit allowance system for Audit and Supervisory Board members As of June 20, 2014 Audit & Supervisory Board system 14 2 1 year 5 3 13 Stock option system 4 Disclosure of total figure None Total for the period from April 2013 to March 2014

Director Remuneration Monthly remuneration has been set within the range of the maximum amount of total compensation (Directors: 80 million a month; Audit and Supervisory Board members: 15 million a month) determined by resolution at a General Shareholders' Meeting. Upon receipt of the Board of Director's authority, the representative director decides the monthly remuneration of each director on the basis of Company-set criteria, the remuneration of each Audit and Supervisory Board members being decided following consultation with the auditor. Following approval by resolution at an Ordinary General Shareholders' Meeting, a number of stock options are granted to directors by rank. However, since it was difficult to offer stock options as an incentive following the chaos in the markets, the stock options granted up to and including fiscal 2010 were continued until the end of the period in which they could be exercised, and stock options not granted from fiscal 2011 onward. Following its resolution at an Ordinary General Shareholders' Meeting, bonuses to be paid to the Board of Directors receives approval. The amount of bonus for each director, which takes into account the level of contribution directors have made to the Company, is then determined by the representative director upon receipt of the Board of Directors' authority. At the Board of Directors' meeting held on May 12, 2014, a resolution was passed abolishing the payment of bonuses to auditors to further strengthen auditor independence with regard to management. Compensation of Directors Compensation of Directors and Audit and Supervisory Board members for fiscal 2014 is as follows. Position Total compensation ( million) Total compensation by type ( million) Base Stock option Base Retirement benefits Directors / Audit and Supervisory Board members Directors 989 573 416 16 Audit and Supervisory Board members Outside Directors 96 58 38 2 32 23 9 3

2 Compliance Basic Stance We believe that key actions to earn the trust and understanding of society pertain to the DENSO Group's observance of all applicable national and regional laws and all Group associates' fair and faithful conduct with the highest ethical standards. We see compliance as not only the observance of laws but also a responsibility to meet the expectations of stakeholders. In this sense, we consider it to be the cornerstone of all conduct. Based on this recognition, in 2006 we adopted the Code of Conduct for DENSO Group Associates, which clearly indicates the standards of conduct for each and every associate. While developing the Code of Conduct for DENSO Group Associates, we consulted the United Nations Universal Declaration of Human Rights, United Nations Global Compact, OECD Guidelines for Multinational Enterprises, and the Charter of Corporate Behavior formulated by Nippon Keidanren (Japan Business Federation). Since the Code was adopted, we confirm the Code in training and workplace activities and utilize it for raising CSR awareness of associates. Overseas Group uses a regional version of the Code of Conduct for DENSO Group Associates formulated by their regional headquarters in accordance with national and regional laws and customs. Key Items in the Code of Conduct for DENSO Group Associates I. Your conduct as a member of the DENSO Group Recognizing your role in society / Integrity as the foundation of trust / Compliance with laws and ethical principles II. Creating a vibrant workplace Understanding DENSO's philosophy and values and pursuing personal development / Respecting human rights, ensuring open communication and respecting the privacy of others / Maintaining mental and physical health and maintaining a healthy workplace / Maintaining order and ethics in the workplace / Maintaining a clear distinction between public and private matters III. Earning trust and meeting the expectations of customers Remembering to express appreciation, providing ureshisa (consideration) and yasashisa (fulfillment), and providing timely and sincere solutions / Transactions based on free and fair competition

IV. Building win-win relationships with our suppliers Adherence to laws related to competition such as antitrust laws and subcontracting laws as well as the contract conditions of agreements with suppliers and affiliated service stores / Respecting intellectual property rights V. Living up to the trust and expectations of our shareholders Managing corporate assets effectively and preventing risk / Practicing proper accounting / Managing inside information VI. Upholding the best interests of society Pursuing eco-friendly practices / Serving as a member of your community / Taking a forceful stand against anti-social organizations and ensuring moderate relationships with governmental authorities / Serving as a member of the automotive industry 3 CSR Promotion System Basic Stance In our corporate philosophy, we describe our mission as "contributing to a better world by creating value together with a vision for the future." Cooperating, collaborating, and sharing values with our many stakeholders are indispensable to achieving this mission based on corporate behavior that earns the trust and support of society. To ensure that all Group companies conducting business worldwide put this philosophy into practice, we adopted the DENSO Group Declaration of Corporate Behavior in April 2006, making clear our responsibility to stakeholders. We have placed corporate social responsibility (CSR) at the core of our management and are working to contribute to building a sustainable society through our business activities. Promotion Structure In 2006, we established the CSR Promotion Meeting (secretariat: CSR Promotion Center), which is chaired by the president and in which the basic policies behind CSR activities are discussed and examined. The meeting is held twice yearly to set the direction for and make decisions on CSR management and to confirm the progress of CSR-related activities. To lead the way in promoting CSR at workplaces and Group companies, we select one CSR leader at each department and company in line with efforts to permeate and firmly establish CSR.

4 Risk Management Basic Stance In keeping with the global expansion of business, the DENSO Group is striving to strengthen risk management as part of its internal control system to help minimize risk. Specifically, emergence of circumstances with the potential to cause damage to corporate management are classified as risks (situations in which risks have not yet been realized) and crises (emergency situations in which risks have already been realized). For the former, efforts focus on nipping risks in the bud before they have the chance to manifest themselves; for the latter, DENSO strives to make an initial response and response for restoring business operations in a prompt and appropriate manner. Promotion Structure We selected 55 risk items with the potential to impact life, credit, business activities, or property; and designated a responsible department for each. Activities for ongoing improvement in the risk management system and structure and permeation of risk management are now the domain of the CSR Promotion Meeting, while the Risk Management Meeting deals with initial response when a crisis or emergency situation arises. We also form specialized contingency organizations depending on the extent of the situation and degree of urgency, which facilitates agile response to minimize damage.

We integrated the traditional roles of the general risk manager into those of the CSR leader at domestic and overseas companies subject to our managerial consolidation rules as well as Group companies in which DENSO Corporation is the largest shareholder, and appointed risk managers for each risk item under that umbrella. We are constantly working to upgrade our risk management based on support from key functional departments and overseas regional headquarters.

Intellectual Property Activities DENSO's intellectual property strategy is directed at unifying its business unit and technology strategies, and it is one of the important management strategies that will sustain growth into the future. Intellectual Property Activities Policy DENSO believes that business unit strategies will not be viable unless they are backed by intellectual property (IP) strategies and is consequently unifying the two accordingly. In line with the DENSO Group's Global Mid-term Policy, the Company promotes activities to establish a focused patent portfolio for world-first and systems products as well as IP activities related to open innovation. The Company is supporting efforts to expand its business and achieve continued growth from the IP standpoint by utilizing the patents that have been acquired in a strategic manner. Respect for other companies IP rights DENSO sees problems related to other companies' IP rights as equally important as major quality problems in its own products. From the development stage, the Company examines the IP rights of other companies and has clearly defined internal rules to ensure that its products do not infringe the IP rights of third parties. Measures against counterfeit products DENSO takes active measures against counterfeit products (in particular those with imitation trademarks). There are many quality problems with counterfeit products, and there is the possibility that purchasing such a product in the belief that it was manufactured by DENSO could be detrimental to the purchaser. In 2005, the Company commenced activities to detect counterfeit products in cooperation with government and customs agencies. DENSO is continuing those activities and, since more recently, has been monitoring Internet auctions and other sales channels for counterfeit products.

Global Intellectual Property Network Global IP system As we bolster development in our overseas technical centers, we are working to set up IP systems at our centers in North America, Europe, and China, thereby strengthening our acquisition of IP rights for local inventions and examination of other companies' IP rights. In addition, as a cooperative framework within the Group, we support patent disputes in North America through our bases in North America, and our bases in China engage in product protection by taking measures against counterfeit products and the taking out of Chinese petty patents. Problems are shared between the IP staff at each technical center and Head Office, and a global IP meeting is in place to work on plans to stimulate and develop the IP activities in each region. In place to allow discussions between IP staff from Group companies in Japan, a similar meeting works on plans to stimulate and develop the IP activities at each Group company. Meetings to support IP activities Activities Meetings held Technology development meetings: (IP strategy committee) Decision making regarding DENSO's IP strategies, involving discussions and decisions about related matters As required Business unit patent promotion meetings Follow up of progress made as regards each unit's IP activities, and steady development of these activities Twice a year Liaison meetings for full-time patent personnel Implement IP activities policies and measures regarding each technology department's patent representative Six times a year Global IP meetings DENSO Group IP Conference Discussion of issues and planning of stimulation and development of regional IP activities by Head Office and IP staff at technical centers in North America, Europe, and China Discussion of issues by IP staff (those in charge) at DENSO consolidated subsidiaries and Head Office, planning to stimulate and develop each company's IP activities Once a year Once a year

Number of domestic patent applications Number of domestic patents held Number of overseas patent applications

Percentage of patent applications for each overseas country reagion 40.0% North America 25.7% Germany 19.8 % China 4.0% South Korea 2.0% France 1.8% India 1.7 % Thailand 0.8% Brazil 0.6% United Kingdom 3.6% Other Number of overseas patents held

Company Summary Company Name Established Capital Head Office Employees DENSO CORPORATION December 16, 1949 187.5 billion (as of March 31, 2014) 1-1, Showa-cho, Kariya, Aichi 448-8661, Japan Consolidated basis : 139,842 (as of March 31, 2014) Non-consolidated basis : 38,581 (as of March 31, 2014) Fiscal Year From April 1 to March 31 Ordinary General Shareholders' Meeting Share Trading Unit Number of Shares Issued Number of Shareholders Securities Identification Code Stock Exchange Listings June 100 shares 797,259,319 Shares (excluding DENSO CORPORATION owning 86,809,394 shares of treasury stock ) (as of March 31, 2014) 54,825 (Including DENSO CORPORATION owning treasury stock) (as of March 31, 2014) 6902 Tokyo, Nagoya

Philosophy The "DENSO Philosophy" guides our corporate actions, ensuring that we will continue to be a corporation that is trusted by people around the world. Mission Contributing to a better world by creating value together with a vision for the future. Management Principles 1. Customer satisfaction through quality products and services. 2. Global growth through anticipation of change. 3. Environmental preservation and harmony with society. 4. Corporate vitality respect for individuality. Individual Spirit 1. To be creative in thought and steady in action. 2. To be cooperative and pioneering. 3. To be trustworthy by improving ourselves.

Technological Development Timeline Since its foundation, DENSO has contributed to the realization of a new automotive society by repeatedly developing technologies and products that are ahead of the times, while refusing to compromise on quality. The following introduces many of the "world-first" products that DENSO has developed through its innovative technology. Foundation and early years 1949 Establishment of Nippondenso Co., Ltd., after separation from Toyota Motor Co., Ltd. 1954 Established technical training center 1980s to 1990s 1987 Developed car navigation system using CD digital maps 1994 Invented QR code, a matrix bar code 1995 Developed first mass-produced common rail fuel-injection system 1997 Developed long-life iridium plugs with superfine iridium alloy center electrodes

1997 Developed two-dimensional scanning laser radar system that scans using vertical and horizontal beams Early 2000s 2000 Introduced semiconductor into stator coil. With simultaneous transition to use of one regulator chip, achieved high efficiency and power in small and light sizes 2000 Started mass production of Single Fin Cooling Module, which integrates the radiator and condenser 2001 Developed heat pump water heater using the natural refrigerant CO2 2002 Developed common rail system that reaches 180 MPa injection pressure through the use of outer-cam-type supply pump 2003 Developed world's first ejector combining the functions of an expansion valve and compressor, which efficiently uses energy lost after use of conventional expansion valve 2003 Developed millimeter-wave radar and pre-crash electronic control unit as pre-crash safety systems to reduce damage from impact

2004 Developed electric compressor that achieves both comfortable air conditioning and fuel efficiency during an idling stop 2004 Developed mercury-free eco-friendly discharge headlamp ballast 2005 to today 2006 Developed electric variable cam timing (VCT) powered by the motor rather than hydraulic pressure, leading to increased performance and fuel efficiency and reduced environmental impact 2006 Developed matrix infrared sensors for controlling air conditioning to match the surface temperature of passengers when they enter the vehicle 2007 Developed small, high-output inverter with cooling on both sides 2008 Developed night-view system for detection of pedestrians using near-infrared rays 2009 Developed world's first radiator tank made from plant-derived resin (from the castor oil tree) as an environmental initiative 2009 Developed first remote touch controller with a two-dimensional cursor

2009 Developed ejector-based car air conditioning system 2010 Developed UC injector with two injectors on each suction port and smaller-than-ever fuel particle injection 2011 Developed ISS (idle-stop system) tandem solenoid starter to make it possible to restart the engine when it is coasting, shaving up to 1.5 seconds off the restart time 2011 Launched 20 MPa direct-injector, high-pressure pump with state-of-the-art injection, atomization, and spray formation technologies, as well as durability 2012 Developed motor generator using DENSO's proprietary coil technology 2012 Developed air-conditioning system that divides the car interior into three zones, the driver's seat, front passenger seat, and rear seats, and allows air conditioning of the driver's seat only if there are no passengers 2013 Developed common rail fuel injection system for use in diesel engines that realized the world's highest* injection pressure of 2,500 bar * For diesel common rail fuel injection systems comprising injector, fuel pump, and common rail. As at June 2013, DENSO data. 2014 Developed highly standardized automotive climate control unit which can be installed across vehicle models from compacts to luxury cars.

2014 Developed an exhaust gas recirculation (EGR) valve unit, the first in the world to integrate the air intake throttle valve and the EGR valve, that is half the size of conventional products and reduces costs by 20%

Facts & Figures Net Sales Operating Income / Operating Margin R&D Expenditures / Ratio of R&D Expenditures to Net Sales Capital Expenditures / Depreciation Ordinary Income / Net Income EPS / Dividends per Share

Total Assets / Equity ROE / ROA Foreign Exchange Rate Net Sales by Customer (Billions of yen) 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 2,976.7 6,723 334 445 520 522 520 457 797 1,053 761 2,049 15,586 3,131.5 3,154.6 7,578 488 502 569 581 611 693 811 847 939 2,211 15,485 8,080 538 595 548 553 599 779 779 777 833 1,971 15,494 3,580.9 8,261 613 612 664 730 734 903 868 675 942 2,487 18,320 4,095.9 FY2010 FY2011 FY2012 FY2013 FY2014 9,730 894 757 878 709 975 1,142 990 844 1,191 2,854 19,995 Toyota Group Ford Fuji Honda GM FIAT Suzuki Hyundai / Kia Mazda VW / Audi Chrysler Other

Domestic Car Production Overseas Car Produciton of Japanese Manufacturers Number of Employees by Region (Domestic) Number of Employees by Region (Overseas)