DENSO (6902) Investor presentation summary

Review of 2025 mid-term policy

• Achieved revenue growth with a CAGR of 9%, outpacing the vehicle market's 3% growth rate, and improved operating margin and ROE.

• Advanced electrification and ADAS, reaching 1.1 trillion yen and 590 billion yen in revenues, respectively.

• Reduced environmental impact through carbon neutrality initiatives and expanded accident scenario coverage to 56%.

• Invested in future growth, but faced challenges in quality cost control and material cost management.

• Received strong external ESG and SRI evaluations, and maintained high credit ratings.

CORE 2030 mid-term management plan

• Aims to realize a future society starting from mobility, leveraging human potential.

• Focuses on enhancing customer value through green and peace of mind initiatives, electrification, intelligence, and expansion into new domains like FA and agriculture.

• Plans over 8 trillion yen in sales revenue by 2030, with operating margin over 10% and ROE over 11%.

• Targets electrification and intelligence sales of 4 trillion yen, FA 300 billion yen, and agriculture 100 billion yen.

• Commits to over 6.6 trillion yen in business investment and 1 trillion yen in dividends by FY31.

Growth strategies

• Three pillars: strengthening product development, innovating manufacturing by combining frontline know-how and AI, and driving new value creation through people and partner co-creation.

• Product development focuses on multi-pathway electrification, advanced ADAS, and energy management systems.

• Manufacturing innovation leverages AI for design, process optimization, and plant automation, including the new Zenmyo South Plant.

• New value creation emphasizes talent development, cross-industry partnerships, and expansion into FA, agriculture, and semiconductors.