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© DENSO CORPORATION All Rights Reserved. DENSO CORPORATION October 31st, 2025 FY2026 2nd Quarter Financial Results (2025/4-2025/9)
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© DENSO CORPORATION All Rights Reserved. Overview of FY2026 2nd Quarter Financial Results 1. Even with the yen appreciating compared to the previous year, revenue for the current fiscal year increased compared to last, driven by higher vehicle sales in North America and Asia and expanded sales of focus-area products. However, operating profit declined year-over-year due to quality-related provisions and tariffs, despite the positive impact from cost reduction efforts and increased production volumes. 2. Our revenue forecast has been revised upward to 7,240.0 billion yen, reflecting the actual exchange rates in the first half of the fiscal year and our revised exchange rate projections for the rest of the fiscal year. Operating profit has been revised downward to 651.0 billion yen, incorporating the revised exchange rate projections and quality-related provisions recorded in the second quarter. 3. The annual dividend forecast remains unchanged at DOE 3.5%, with a dividend amount of 64 yen. We will continue to improve DOE levels over the long term and in a stable manner. FY2026 2nd Quarter Financial Results / 31st October 2025 1/12
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© DENSO CORPORATION All Rights Reserved. FY2026 2nd Quarter Consolidated Financial Results (2025/4-2025/9) *Profit attributable to owners of the parent company Unit : Billions of Yen ( ): Ratio to Revenue FY2026 2nd Quarter Financial Results / 31st October 2025 2/12 3,474.9 3,590.5 +115.6 +3.3% (7.2%) 251.2 (5.9%) 211.4 -39.8 -15.8% (8.1%) 281.7 (6.8%) 244.4 -37.3 -13.2% (5.5%) 190.8 (3.7%) 131.4 -59.5 -31.2% Foreign Exchange Rate -6.6 JPY ー +2.2 JPY ー -0.8 JPY ー Domestic Vehicle Production 3.99Mil 3.94Mil -0.05Mil -1.3% Overseas Vehicle Production of Japanese Manufactures 8.11Mil 8.80Mil +0.69Mil +8.5% Profit Before Income Taxes Profit * Precondition JPY 152.6/USD JPY 146.0/USD JPY 165.9/EUR JPY 168.1/EUR JPY 21.1/CNY JPY 20.3/CNY 2024/4-2024/9 2025/4-2025/9 Change Revenue Operating Profit
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© DENSO CORPORATION All Rights Reserved. After-market, Non-Automotive Business etc. Revenue 3,474.9 ⇒ 3,590.5 (+3.3%) [+5.5%] ・Toyota group 1,873.1 ⇒ 2,008.6 (+7.2%) [+9.3%] ・Other OEMs 1,294.1 ⇒ 1,273.8 (-1.6%) [+0.9%] Others (VWG, Mitsubishi, BMW, John Deere etc.） (-0.1%) [+1.2%] Hyundai/Kia (-21.2%) [-16.2%] Isuzu (+13.8%) [+11.8%] Nissan (-17.5%) [-15.5%] Mazda (-9.5%) [-9.6%] GM (-3.1%) [+1.4%] Suzuki (+8.6%) [+12.7%] Stellantis (-11.6%) [-9.0%] FORD (+19.7%) [+23.9%] SUBARU (+10.7%) [+12.6%] Honda (-10.6%) [-7.3%] FY2026 2nd Quarter Consolidated Revenue (By Customer) Unit: Billions of Yen ( ): vs 24/9 (6 months basis) [ ]: vs 24/9 (6 months basis) excluding FX diff. FY2026 2nd Quarter Financial Results / 31st October 2025 3,590.5 25/9 Bill (+0.2%) (+7.2%)(-1.6％) [+9.3%][+0.9%] [+2.4%] (+3.3%) 1,273.8 35.5% 2,008.6 55.9% 308.1 8.6% [+5.5%] 3,474.9 24/9 Bill 1,873.11,294.1 37.2% 53.9% 307.7 8.9% Toyota Group Other OEMs Other OEMs Toyota Group After-market, Non-Automotive Business etc. 226.5 202.6 131.4 145.5 98.5 117.9 121.3 107.2 85.7 93.2 88.5 85.8 61.3 55.5 52.6 43.4 35.8 40.7 47.2 37.2 345.3 344.8 1,294.1 1,273.8 24/9 25/9 3/12
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© DENSO CORPORATION All Rights Reserved. FY2026 2nd Quarter Consolidated Revenue (By Product) Unit: Billions of Yen ( ): vs 24/9 (6 months basis) [ ]: vs 24/9 (6 months basis) excluding FX diff. FY2026 2nd Quarter Financial Results / 31st October 2025 (+3.3%) [+5.5%] Non-Automotive Business Other Automotive Advanced Devices (+1.4%) [+3.5%] Electrification Systems (+9.0%) [+10.9%] Powertrain Systems (-1.7%) [+0.3%] Thermal Systems (+1.1%) [+3.7%] Mobility Electronics (＋4.1%) [+6.2%] 4/12 962.0 1,001.6 850.4 859.8 719.6 707.5 642.2 699.7 186.6 189.155.5 70.258.6 62.5 24/9 25/9 3,474.9 3,590.5
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© DENSO CORPORATION All Rights Reserved. 251.2 211.4 -28.0 -12.0 -25.5 -25.0 -23.0 +69.5 +38.2 -38.0 +4.0 Change in FY2026 2nd Quarter Consolidated Operating Profit 25/924/9 Operating Profit Fixed cost Parts & material cost etc. Investment for human resources (Wage increase) *including supplier F/X rate Production volume Improvement & Business agility enhancement Operating Profit Parts & material cost ：-22.5 Raw material cost ： -1.0 Logistics cost ： -2.0 Improvement ： +36.0 Biz. Agility ： +33.5 Unit: Billions of Yen Tariffs FY2026 2nd Quarter Financial Results / 31st October 2025 Reduction of tariff costs & reflection of tariffs in price Quality 5/12
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© DENSO CORPORATION All Rights Reserved. FY2026 2nd Quarter Consolidated Geographical Segments by Company Location *Local currency basis excludes FX difference (152.6JPY/1USD, 165.9JPY/1EUR, 21.1JPY/1CNY) Revenue Operating Profit Unit: Billions of Yen ( ): Ratio to Revenue Change from previous fiscal year FY2026 2nd Quarter Financial Results / 31st October 2025 2,030.5 924.3 365.7 937.9 58.6 2,099.5 1,018.0 361.9 981.7 70.6 Japan North America Europe Asia Others 24/9 25/9 116.6 36.5 5.9 76.7 12.2 31.6 60.0 8.6 98.2 13.4 Japan North America Europe Asia Others 24/9 25/9(5.7%) (1.5%) (3.9%) (5.9%) (1.6%) (2.4%) (8.2%) (10.0%) (20.8%) (19.0%) +3.4% +10.1% -1.0% +4.7% +20.5% -72.9% +64.6% +46.5% +28.1% +9.6% 6/12
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© DENSO CORPORATION All Rights Reserved. 170.2 177.1 189.7 185.3 169.9 166.1 178.2 179.6 182.1 177.4 240.9 258.8 266.3 301.6 347.7 353.9 366.8 394.6 371.1 370.0 335.4 353.3 361.7 362.3 365.0 497.6 521.6 550.9 619.4 660.06.4% 5.7% 5.5% 5.2% 5.1% 6.1% 5.5% 5.1% 5.1% 5.0% 9.0% 8.1% 7.7% 8.6% 9.1% Trend of Capital Expenditures, Depreciation and R&D Expenditures CAPEX Depreciation R&D (including asset accrual) 22/3 23/3 24/3 25/3 26/3F 22/3 23/3 24/3 25/3 26/3F 22/3 23/3 24/3 25/3 26/3F ↑ 3~4Q ↓ 1~2Q <120.0><175.0> <80.0><76.0><68.0> Unit : Billions of Yen : Ratio to Revenue < >: Costs to be paid in one lump sum by the customer FY2026 2nd Quarter Financial Results / 31st October 2025 7/12
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© DENSO CORPORATION All Rights Reserved. FY2026 Financial Forecast *1 Profit attributable to owners of the parent company *2 Foreign exchange rate of forecast for the 3rd quarter and after : JPY 145.0/USD, 170.0/EUR, 20.0/CNY Unit : Billions of Yen ( ): Ratio to Revenue FY2026 2nd Quarter Financial Results / 31st October 2025 8/12 7,200.0 7,240.0 +40.0 +0.6% 7,161.8 +78.2 +1.1% (9.4%) 675.0 (9.0%) 651.0 -24.0 -3.6% (7.2%) 519.0 +132.0 +25.4% (10.3%) 743.0 (9.9%) 714.0 -29.0 -3.9% (8.1%) 578.0 +136.0 +23.5% (7.2%) 515.0 (6.9%) 497.0 -18.0 -3.5% (5.9%) 419.1 +77.9 +18.6% 10.7% 9.8% － -0.9% 8.0% ー +1.8% Foreign Exchange Rate +0.6 JPY － -7.1 JPY － +8.1 JPY － +5.3 JPY － +0.1 JPY － -1.0 JPY － Domestic Vehicle Production 8.25Mil 8.17Mil -0.07Mil -0.9% 8.23Mil -0.06Mil -0.7% Overseas Vehicle Production of Japanese Manufactures 16.93Mil 17.05Mil +0.12Mil +0.7% 16.42Mil +0.63Mil +3.8% JPY 20.0/CNY JPY 20.1/CNY JPY 21.1/CNY JPY 144.9/USD JPY 145.5/USD JPY 152.6/USD JPY 161.0/EUR JPY 169.0/EUR JPY 163.7/EUR Revenue Operating Profit Profit before Income Taxes Profit *1 Return on EquityPrecondition Previous Forecast 2026/3 Forecast Change from previous forecast 2025/3 Actual Change from Mar. 2025 *2 *2 *2
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© DENSO CORPORATION All Rights Reserved. 519.0 651.0 +31.0 -20.0 -34.5 -49.5 +177.5 +11.5 +16.0 -130.0 +130.0 Change in FY2026 Forecast Operating Profit Operating Profit Fixed cost Investment for human resources (Wage increase) *including supplier Quality F/X rate Production volume Improvement & Business agility enhancement Operating Profit Parts & material etc. Tariffs (+10.0)(-34.0) Parts & material cost ：-29.5 Raw material cost ： -0.5 Logistics cost ： -4.5 Improvement ： +106.5 Biz. Agility ： +71.0 Reduction of tariff costs & reflection of tariffs in price Unit: Billions of Yen ( ): Diff. from previous forecast FY2026 2nd Quarter Financial Results / 31st October 2025 26/325/3 9/12
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© DENSO CORPORATION All Rights Reserved. 5,515.5 6,401.3 7,144.7 7,161.8 7,240.0 341.2 426.1 380.6 519.0 651.0 22/3 23/3 24/3 25/3 26/3 Revenue Operating Profit 6.4% 7.3% 6.3% 8.0% 9.8% 5.3% 6.1% 5.5% 7.1% 8.6% 22/3 23/3 24/3 25/3 26/3 ROE ROIC 6.2% 6.7% 5.3% 7.2% 9.0% : 7.3% WACC Shareholder’s equity cost : 7.8% Major Financial Indicator Revenue/Operating Profit/ Operating Profit Margin ROE・ROIC (F) (F) [Ref.] Calculation formula of ROIC ・ Invested capital is calculated by averaging results or forecast at the end of the previous fiscal year and the current fiscal year. ・ Invested capital＝Profit attributable to owners of the parent company ＋Interest-bearing debt ・ ROIC＝Profit attributable to owners of the parent company / Invested Capital 10/12 Operating Profit Margin (Unit : Billions of Yen) FY2026 2nd Quarter Financial Results / 31st October 2025
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© DENSO CORPORATION All Rights Reserved. 3.1 ％ 3.2 % 3.3 % 3.5 % 3.5 % 3 20.00 22.50 25.00 32.00 32.00 21.25 23.75 30.00 32.00 32.0041.25 46.25 55.00 64.00 64.00 22/3 23/3 24/3 25/3 26/3 Shareholder returns (Annual dividends/Share Repurchases) 11/12 (billions of yen) FY2026 2nd Quarter Financial Results / 31st October 2025 Annual dividends Share Repurchases • Continue to improve DOE levels over the long term and in a stable manner. • The annual dividend for 26/3 is expected to remain unchanged at 64 yen. • The 450 billions market stock purchase announced in 2024 was completed as planned. • The tender offer for shares held by Toyota Industries Corporation (up to 357.8 billion yen) expected to commence in or after March 2026.* 97.5 100.0 200.0 196.6 253.4 357.8 22/3 23/3 24/3 25/3 26/3 27/3 Tender offer Limit DOE *For details regarding the revised schedule of the tender offer, please refer to the disclosure dated October 6, 2025: "Update on Disclosed Matters: Notice Concerning Progress of the Tender Offer for Own Shares." (F) (F) (F) Announced in 2024 Market stock purchase 450B (yen) Yearly Year-end Interim
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© DENSO CORPORATION All Rights Reserved. 12/12 DENSO published “Integrated Report 2025” FY2026 2nd Quarter Financial Results / 31st October 2025