Slide 1: FY2018 2nd Quarter Financial Results ended Sep 30, 2017
DENSO Crafting the Core FY2018 2™ Quarter ii - Financial Results ended; = Sep 30, 2017 | - | . Closing results Il. Strategies Oct. 31, 2017 DENSO CORPORATION LAMM
Slide 2: I. Closing results
| . Closing results Crafting the Core 1/39
Slide 3: Overview of FY2018 2nd Quarter Financial Results
Overview of FY2018 2nd Quarter Financial Results 1. The revenue and operating profit have reached the highest level ever. Revenue increased due to an increase in vehicle production, as well as sales expansion. Operating profit also saw an increase due to the production volume increase and company co
Slide 4: FY2018 2nd Quarter Financial Results
FY2018 2™ Quarter Financial Results (Ratio to Revenue) (Unit: Billions of Yen, %) FY18 2Q_ _FY17 2Q Change Revenue 2,363.5 2,176.9) +186.6] +8.6% Operating Profit (Excludes other income/ |(8:0%) 189.3 }(6.4%) 138.9 +50.4] +36.3% expenses) Other income/ expenses Operating Profit (8.7%) 204.4] (6.6%)
Slide 5: FY2018 2nd Quarter Consolidated Revenue (By Customer)
FY2018 2"™ Quarter Consolidated Revenue (By Customer) (Unit: Billions of Yen) OE Revenue for others ( ):Change from FY17 2Q After-market, 1,200 [ ]:Change from FY17 2Q , New business&Ot! excludes FX difference 1,043.6 = (48.6%) | [+5.2%] thers (+16.6%) | [+12.0%] 7-Notvo(+30-5%) | [+23.1%] Isuzu (+1
Slide 6: FY2018 2nd Quarter Consolidated Revenue (By Product)
FY2018 2™ Quarter Consolidated Revenue (By Product) (Unit: Billions of Yen) 2,400 2,000 1,600 1,200 800 400 DENSO Crafting the Core 555.0 (.):Change from FY17 [ ]:Change from FY17 excludes FX difference 2,363.5 (+8.6%) 58.5 __——_ FA: New Business »30:4————_ Other Automotive 152.6 Small Motors Electr
Slide 7: Change in FY2018 2nd Quarter Operating Profit
Change in FY2018 2™ Quarter Operating Profit (Unit: Billion of Yen) 204.4 189.3 = 142.7 ® a +20.0, [Em s o «MR ee ® no) ry > Bis +20.5 9 2 = a9 . a = o ra -10.0 < a = oO 5 = 9 > 7:0 -5.0 +31.0 2 2 zB @Q P| U a m rc =U ov < =a ° me} =) a = x o 2a T an = oad = @ no} 90 @ m + oO = fe) om 71a (0) x 2 x
Slide 8: 2nd Quarter Geographical Segments by Company Location
2™4 Quarter Geographical Segments by Company Location (Unit: Billions of Yen) [ ]: Ratio to Revenue Revenue Operating Profit 1,600 ) 1,406.9 mFY17 2Q +100.7% FY17 20 1,292.3 10 1,400 105.5 +8.9% BFY182Q 7.5%] MFY18 2Q 1,200 100 1,000 +36.3% 46.1 +14.8% 80 62.8 800 . 619.2 52. [10.1%] 548.1 539.3 60
Slide 9: 2nd Quarter Geographical Segments by Company Location (local currency)
2™4 Quarter Geographical Segments by Company Location (Local currency base ,excludes other income/expenses) (Unit: Billions of Yen) [ ]: Ratio to Revenue Revenue Operating Profit 9 1,600 F8-9% 9 FY17 2Q 0 FY17 2Q 1 +92.3% 1,400 1,292.3 MFY18 2Q mFY18 2Q 93.3 1,200 100 [6.6%] 9 1,000 80 +28.2% +9.3%
Slide 10: FY2018 Financial Forecast
FY2018 Financial Forecast (Ratio to Revenue) (Unit: Billions of Yen, %) As of FY18 Change from March FY17 June 2017 Revised Amount} Ratio Actual Revenue 4,740.0 5,000.0} +260.0} +5.5% 4,527.1 Operating Profit (Excludes other income / expenses) (7.2%) 341.01(7.5%) 373.0} +32.0) +9.4%} (7.2%) 326.4 Ot
Slide 11: Change in FY2018 Operating Profit
Change in FY2018 Operating Profit (Unit: Billion of Yen) 390.0 373.0 330.6 326.4 +13.00Ne 3S 9 +19.0 . Bia los fo) - > jad} ~y 3 25.0 +42.0 © 0) & |e -20.5 5 a a Ss S iy ; < 3 a a we s 9 -16.0-12.0 +46.0 2 a 3 = a < g 2 g sp fF ® => [ie fe) » @ oS DD aR oO x + pt) =p a fa) o rs Qe a) -. + + s o 5 5
Slide 12: II. Strategies
Il. Strategies Crafting the Core 11/39
Slide 13: Paradigm shift
Paradigm shift We are not complacent with conventional business model, but aiming to create a new value Our goal -DENSO Group Long Term Policy 2030 Roadmap to change -DENSO Group Long Term Plan 2025 DENSO sone snout Crafting the Core 12/39 [DENSO Group Long Term Policy 2030 and Long Term Plan 2025]
Slide 14: 1. DENSO Group Long Term Policy 2030
1. DENSO Group Long Term Policy 2030 Crafting the Core
Slide 15: Business Environment
Business Environment Society Mobility - New leaps in information New and intelligent technologies Paradigm shifts ial mobility assumptions - Further diversification in values . Electrification, automated driving, and consumption patterns connected vehicles, car sharing and ride sharing - Changes in
Slide 16: Bringing hope for the future for our planet, society and all people
Bringing hope for the future for our planet, society and all people Our Goal for 2030 A company that continuously generates value to enrich mobility Paace that achieves sustainability, happiness Green of mind and peace of mind for everyone Craftin Green Lasting vitality for the environment Peace of
Slide 17: Principles: Approach and attitude for achievement of goals
Principles Approach and attitude for achievement of goals Approach Work hand in hand Deliver value Earn people's confidence with diverse partners for all people worldwide by offering value to enrich society that transcends expectations - Contribute to - Take the initiative - Generate value a new mob
Slide 18: 2. DENSO Group Long Term Plan 2025
2. DENSO Group Long Term Plan 2025 Strategy Growth and Development (1) Appeal values in aspect of vehicles and Target of drive the growth in a new mobility field. Revenue & Profit Earning Capacity (2) Increase profitability of existing business and make it as a solid foundation for the profits. Mana
Slide 19: (1) Target of Revenue & Profit
(1) Target of Revenue & Profit Achieve revenue of 7 trillion yen and operating profit ratio of 10% by FY2026 by increasing the performance in a new field of Electrification and Automated Driving [Target of Revenue & Profit Ratio] (%) (trillion yen) 7.0 + 7 10.0 | Revenue -@- Profit Ratio (Excludes o
Slide 20: (2) Management Reform: Pillars
(2) Management Reform: 5 Pillars Point of innovation : “Speed of Decision Making” & “Vitality of Workplace” By accelerating our business execution and taking action/reaction faster, we will become company who has a sense of speed and vitality of workplace. Enhancement of vehicle perspective and cros
Slide 21: (2) Management Reform: Pillars
(2) Management Reform : 5 Pillars Enhancement of vehicle perspective and cross-sector functions Strengthen competitiveness from both cyber and physical sides in the perspective of vehicles. Physical Appeal for value and services from vehicle perspective. (In-Car/Out-Car) Strengthen the company syste
Slide 22: (2) Management Reform: Pillars
(2) Management Reform : 5 Pillars Advanced R&D function to realize agile development globally Arrange satellite facilities globally which are able to react agilely in the rapidly changing business environment, and execute advanced R&D more speedy with global partners. - Promote development at the ce
Slide 23: (3) Initiatives in Focus Fields
(3) Initiatives in Focus Fields i Electrification — iii Connected Cars _ i ii Automated Driving iv Non-Automotive Businesses (Factory Automation / Agriculture) Crafting the Core Sep 30, 2017 22/39 [Initiatives in Focus Fields] we will focus on “electrification,” “automated driving,” and “connected c
Slide 24: i Electrification - Initiative in Focus Fields
i Electrification - Initiative in Focus Fields - Reduction of environmental loading and realization of high efficiency Value ‘ : oe transportation (Economical Driving) 1. Lead of electrification by technology acquired over the years and supply achievement + Technological evolution (High-power, SiC e
Slide 25: i Electrification - Initiative in Focus Fields
i Electrification - Initiative in Focus Fields - ’ Create V7 Thermal /} Management vehicles Crafting the Core 24/39 [Initiatives in Focus Fields : Electrification] The entire process of using, creating, and storing energy must be efficient and optimized. Create —Thermal Systems- In terms of thermal
Slide 26: i Electrification - SiC quality comparison
i Electrification - Initiative in Focus Fields - Comparison of the quality (dislocation density) (Unit: pcs/cm?) 27,000 Less defect a (high density) .” 3,000" —— Sy Made by Made by DENSO other companies SiC MOSFET DENSO have achieved to grow high density crystals, which increase the quality of devic
Slide 27: We will pursue advances in gasoline and diesel vehicle systems
We will pursue advances not only in electric vehicle systems, but also in gasoline and diesel vehicle systems in support of eco driving. fow fir fiw fw 26/39 DENSO Crafting the Core To always meet the social and market needs, we will continue to develop internal combustion engine technologies for ga
Slide 28: ii Automated Driving - Initiative in Focus Fields
ii Automated Driving §- initiative in Focus Fields - EI) Realize a move in a safe and secure manner without traffic accidents 1. Initiative at the system, strengthening of proposal capability \ - Advanced Driver Assistance Systems and Automated Driving * Cockpit system 2. Development by open innovat
Slide 29: ii Automated Driving - Recognition
li Automated Driving - Initiative in Focus Fields - DENSO will provide safe and reassuring recognition across 360 degrees around a vehicle by deploying a full range of sensors and on refining the functionality of each of those sensors. DENSO Crafting the Core rane , 28/39 [Initiatives in Focus Field
Slide 30: ii Automated Driving - Deep-learning recognition
ii Automated Driving - initiative in Focus Fields - Future advances at DENSO in refining recognition functionality will incorporate deep-learning artificial intelligence. That will carry us beyond recognition in static space and into the realm of anticipating movement in time. DENSO | ... Quarter Fi
Slide 31: ii Automated Driving - High-performance semiconductor
li Automated Driving - Initiative in Focus Fields - DENSO developed a high-performance semiconductor. Large-scale processing Complex Simple processing processing DFP analyses information at once and be able to determine on the spot Human-like reflexive decision-making Crafting the Core > CORPO c : 3
Slide 32: ii Automated Driving - Data flow processor
li Automated Driving - Initiative in Focus Fields - DFP Suitable task Quantity of task Suitable task Quantity of task | Cd) * > ae Bourn be > SS can be ‘ J dynamically a ans | =e 4 CT) [ Il Il = == Variable calculation length Capable of a aul performing = 2 : g : g, i calculations b 3 Even if = ore
Slide 33: ii Automated Driving - Cybersecurity
ii Automated Driving - Initiative in Focus Fields - We're adopting multilayer protection against cyber threats in all of our electronic control units and vehicle networking. DENSO Crafting the Core [Initiatives in Focus Fields : Automated Driving] Meanwhile, cyberattacks must be blocked to achieve s
Slide 34: iii Connected Cars - An Example of Efforts
iii Connected Cars - An Example of Efforts - Welt) Contribute mobility society connected automobiles, human and things. 1. Development of integrated system with cloud Mobility service (MaaS) App delivery [aoas] Operational }} Trouble OTA management }| forecast \ * Development of integrated electroni
Slide 35: iii Connected Cars - Partnership with MaaS Global
iii Connected Cars - An Example of Efforts - Building a partnership with MaaS GLOBAL in Finland. Opening branch institute for research in Helsinki and Munich in Jan. 2018. WY | al al S Traffic Control GLOBAL Matching Platform ACCT, (MaaS) : exo) Taxi-cab Commuter Mass dia System _ [Transportation :
Slide 36: For the new mobility society
For the new mobility society in the future DENSO forse sss cssnersnanse vnunsonses se er Fina 01 a Crafting the Core 35/39 To achieve a future of people-centered mobility by focusing on electrification, automated driving, and connected cars, it is essential to improve the social infrastructure inclu
Slide 37: Monozukuri + Technology
= - Monozukun + Technology DENSO Crafting the Core 36/39 Strong manufacturing capability is required to embody these new technologies and products and contribute to society. Along with technology development, production is the source of our competitiveness.
Slide 38: In DENSO, human possibilities and equipment possibilities come together
In DENSO, human possibilities and equipment possibilities come ew ZV <i together in raising : Buildup a knowledge Feed back our manufacturing possibilities around the world. od "3 SS ia <s a ‘ d Realization Crafting the Core c DRATION Al RghtsReserve 37/39 We will further improve our advanced manufa
Slide 39: iv Non-Automotive Businesses
iv Non-Automotive Businesses -Factory Automation / Agriculture- Contribute to Improved Social and Industrial Productivity [ Strengths of DENSO's Monozukuri | Speedy and High slim down the operating ratio of logistics & Monozukuri at a Factory-loT production lines inspection DANTOTSU* price | x | hum
Slide 40: For mobility society full of smiles
For mobility society full of smiles, DENSO will keep providing solutions that will provides people everywhere with something to smile about. DENSO arter Financial Results ended Sep 30, 2017 x Crafting the Core OWA ' 39/39
Slide 41: DENSO
DENSO Crafting the Core
Slide 42: Appendix
Appendix ¢ Non-Consolidated Financial Results ¢ Pre-Conditions (Foreign Exchange Rate/Car Production) * Consolidated Revenue by Customer * Consolidated Revenue by Product ¢ Trend of Capital Expenditures, Depreciation and R&D Expenditures ¢ Capital Expenditures, Depreciation, and R&D Expenditures ¢ R
Slide 43: FY18 2nd Quarter Non-Consolidated Financial Results
FY18 2™4 Quarter Non-Consolidated Financial Results Income Statements (Japanese accounting standards) (Ratio to Sales) (Unit: Billions of Yen,%) Account 20 ‘Amount ohana % Net Sales 78.4 6.6 Operating Income 34.3 199.6 income Before 37.6 48.0 Income Taxes Net Income 27.7 40.6 DENSO 41/39 Crafting th
Slide 44: Pre-Conditions (Foreign Exchange Rate/Car Production)
Pre-Conditions (Foreign Exchange Rate/Car Production) FY2018 First-Half FY2017 Second-Half FY2018 Full Year Prior Year Forecast oO Actual Change |Prior Year| Forecast “or Forecast Change /Prior Year| Forecast — Forecast Change i (Original)| sry, 28 ge Pri (Original)] "Vy 25|(Revised) 9 (Original)] 5
Slide 45: Consolidated Revenue (By Customer)
Consolidated Revenue (By Customer) (Unit: Billions of Yen) Change excludes FY18 2Q FY17 2Q Change ST eens Amount |% to Total Amount |% to Tota Amount] % % Toyota 967.3 40.9 932.5 42.8 34.9 | 3.7 1.4 Daihatsu 53.0 2.2 42.2 1.9 10.8 | 25.6 24.4 Hino 28.1 1.2 25.6 1.2 2.5 10.0 9.6 Toyota Group 1,048.4
Slide 46: Consolidated Revenue (By Product)
Consolidated Revenue (By Product) (Unit: Billions of Yen,%) Change FY2018 2Q FY2017 2Q Change excludes FX difference Amount | %toTotal | Amount | % toTotal) Amount % % Thermal Systems 711.1 30.1 663.4, 30.5 47.7 7.2 3.3 Powertrain Systems 604.3 25.6 555.0. 25.5 49.3 8.9 5.0 Information & Safety Syst
Slide 47: Trend of Capital Expenditures, Depreciation and R&D Expenditures
Trend of Capital Expenditures, Depreciation and R&D Expenditures < >Ratio to FYI8F (_) Ratio to Revenue (Billions of yen) (9.0%) (9.2%) (8.8%) (9.0%) (9.0%) 500 409.2 450.0 13~4Q 396.4 399-3 ~ 400 368.7 . 324.1 354.2 334 4 337.4 351.0 y1~2Q 300 | 260.0 220.1 236.8 241.1 ‘ : 203.1 <44.8%> 200 <45.1%>
Slide 48: Capital Expenditures, Depreciation and R&D Expenditures
Capital Expenditures, Depreciation and R&D Expenditures (Unit: Billions of Yen) FYI7 FY18 | Change | torI6 2Q 2Q Forecast from PY Forecast Japan 103.9 215.7) 106.3 213.5) 2.3% 49.8% North America 29.0 51.8 16.2 57.5] -44.1% 28.2% Europe 10.9 23.6 13.8 21.0) 26.6% 65.7% Asia 21.8 44.1 21.3 57.0] -2.3
Slide 49: Return to Stockholders
Return to Stockholders 1. We will continue to pay dividends sustainably with taking into accounts our consolidated results, consolidated dividend payout ratio, and dividend amount. 2. We continue to repurchase our own shares adapting flexibly to environmental changes and considering finance status.
Slide 50: Target of Revenue & Profit in FY2026 (By Product)
Target of Revenue & Profit in FY2026 (By Product) (Unit: Trillions of Yen ? New Business (FUJITSU TEN LIMITED, etc.) Non-Automotive (FA / Agriculture, etc.) 64 (2.0 times) Small Motors // \eistines) Electronic Systems 5 Electrification Systems (2.1 times) Information & Safety Systems (1.2 times) Pow