Notice Regarding the Formulation of the Medium-Term Management Plan ‘CORE 2030’

Overview of the Medium-Term Management Plan 'CORE 2030'

DENSO Corporation has formulated the medium-term management plan 'CORE 2030' covering fiscal years 2026 through 2030. Under the previous medium-term plan, '2025 Medium-Term Policy,' the company focused on electrification technologies and ADAS products to contribute to reducing environmental impact and traffic accidents, while developing products and services in new fields such as factory automation (FA) and agriculture. However, profit margins and ROE did not meet targets due to quality-related costs and increased resource allocation for future growth, highlighting the need to strengthen the earnings base. The changing mobility environment requires advancing the creation of high value-added products and innovation in development and manufacturing processes.

Growth Strategy and Management Indicators

The 'CORE 2030' plan aims to become a company that 'realizes the future society expanding from mobility through human potential,' promoting (1) strengthening product development (targeting approximately 4 trillion yen in sales through electrification and intelligence, with 3.7 trillion yen invested in R&D), (2) innovation in manufacturing (improving productivity through the integration of AI and practical knowledge), and (3) talent development and co-creation with partners (expanding sales in agriculture and FA fields and maximizing synergies in the semiconductor business). Financial KPIs for 2030 include net sales exceeding 8 trillion yen, operating income margin over 10%, ROE above 11%, and DOE of at least 4.0%. In the environmental domain, targets include electrification sales of 1.9 trillion yen and CO2 emission reduction goals.