DENSO : Notice Regarding the Formulation of Mid-Term Management Plan “CORE 2030”

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

March 31, 2026

Company name: DENSO CORPORATION

Name of representative: Shinnosuke Hayashi, President and CEO

(Securities code: 6902;

Tokyo and Nagoya Stock Exchanges)

Inquiries: Tadashi Arai, Director, Finance and Accounting Div.

(Telephone: +81-566-25-5511)

DENSO CORPORATION (the “Company”) hereby announces that the Company has adopted the mid-term management plan “CORE 2030,” covering the period from fiscal year 2027 to 2031, which was resolved at the Board of Directors meeting held on March 31, 2026.

1. Overview of CORE 2030

   Under our “2025 Mid-Term Policy,” which concludes in the fiscal year ending March 31, 2026, we have helped reduce environmental impacts through our leading electrification technologies and contributed to the reduction of traffic fatalities through our highly reliable ADAS solutions. We have also developed products and services in new areas such as factory automation (FA) and agriculture. As a result, we have laid solid groundwork for future growth in each area. Despite these strong efforts, quality costs, along with increased investment in anticipation of future growth, have affected our profit margin. As a result, we have not reached the targets for operating margin and ROE set out in the 2025 Mid-term Policy, and challenges remain in strengthening our revenue base. Furthermore, as changes surrounding mobility accelerate, including sophisticated advanced safety, autonomous driving, and SDV, the areas for strengthening necessary for future growth, such as creating value-added products and innovating development and manufacturing processes, presenting both opportunities and challenges for future growth.

   Based on these conditions, we have formulated a new mid-term management plan, "CORE 2030," to continue enhancing the value we provide to our customers, even amidst a changing external environment.

2. Vision and Growth Strategy in the Mid-Term Management Plan "CORE 2030"

   Since our founding, we have consistently strived to address social issues. We will sincerely listen to the voices of our customers and the market, and deliver better products and services to our customers through technology, manufacturing and the power of our associates to solve problems and create new value for society.

   We strive to be a company that realizes the future society, starting from mobility, through human potential. This mid-term management plan will promote a growth strategy centered on strengthening the following three areas of competitiveness:

   ① Strengthening Product Development to Respond to the Diversification of Mobility

   In response to the diverse and evolving global mobility landscape, which is influenced by the characteristics of each country and region, including energy conditions, policy and industrial trends, and people's lifestyles, we will use technologies to deliver value to customers that are essential for all options and develop them as products.

   Leveraging the cutting-edge research we have cultivated to date, we will deepen our foundational technologies that further enhance our competitiveness, such as high-performance and high-efficiency semiconductors and materials development. Furthermore, we will leverage our systems-level expertise in mechanics, electronics, and software to integrate and optimize key vehicle functions, such as energy management and ADAS systems.

   These improvements will not only boost overall vehicle performance but will also be tailored to meet the evolving needs of our customers and society.

   To strengthen product development, we will invest 3.7 trillion yen in research and development over the five years until 2030, aiming for sales of approximately 4 trillion yen, 1.5 times the current level, through electrification and intelligence.

   ② "Innovation in Manufacturing" through the Fusion of Practical Knowledge and AI

   The unique knowledge and know-how that our company has cultivated over many years are valuable assets in the age of AI. We are developing AI that incorporates this knowledge into our development processes and production sites. Through this fusion of practical knowledge and AI, we will dramatically improve productivity. At our new Zenmyo-Minami Plant in Nishio City, Aichi Prefecture, scheduled for completion in 2027, we will realize this innovation in manufacturing by implementing the advancements in AI.

   ③ Driving the Creation of New Value Through "Human Resource Development and Partner Co-creation" Leveraging our strong connections with customers, partners, the government, and industry associations, we will strengthen current relationships across society to address social challenges that cannot be solved by a single company.

   We will apply our automotive technology, which requires high reliability and advanced systems, to tackle issues such as the workforce gap and productivity improvements in the fields of agriculture and factory automation (FA). We will accelerate collaboration with strategic partners with whom we can grow together, aiming for sales of 100 billion yen in the agricultural sector and 300 billion yen in the FA sector by 2030. In our semiconductor business, we will deploy our refined automotive semiconductor technology to industrial equipment and consumer products, maximizing synergies across various sectors including automotive, to contribute to strengthening the foundation of various industries and achieving further corporate growth.

   The driving force behind our growth is people. We will continue to strongly support the development and growth of each employee so they can adapt their skills to the latest technology trends, create new value, and help DENSO continue to act as a trusted and inspiring partner for our customers and society.

3. Main Management Indicators

   We set the following targets for fiscal year 2031:

   • Sales Revenue: Over 8 trillion yen

   • Operating Margin: Over 10％

   • ROE: Over 11％

   • Investments and Shareholder Returns: Over 8 trillion yen (Cumulative amount from FY2027 to FY2031)

   • DOE: Over 4.0%

   • Green:

     • Electrification Sales: 1.9 trillion yen

     • CO2 Emissions Scope1/2 Carbon Neutral with Credits

       (FY 2036 Target: Carbon Neutral without Credits): Scope3 CO2 Emissions; 25% Reduction Compared to 2020

   • Peace of Mind

     • ADAS (Intelligence) Sales: 1.0 trillion yen

     • Accident Scenario Coverage Ratio: 80％

   • Improvement in Agricultural Productivity: a 75％ Improvement

   • Improvement in Industrial Labor Productivity: Contributing to Alleviating the Workforce Gap Equivalent to 19,000 people

4. Reference Materials

We have published explanatory materials regarding our mid-term management plan "CORE 2030" on our corporate website. Please also refer to these materials.

Website URL: https://www.denso.com/global/en/about-us/corporate-info/policy/mid-term_management_plan2030/

*The information contained in this document is based on forecasts or assumptions made by our company based on information available as of March 31, 2026. Actual results and strategies may differ from the forecasts or assumptions described due to the impact of future uncertainties.