1966Gasoline Electronic Fuel Injection1991Air-Conditioning with HFC-134a1995180 Mega-Pascal Diesel Common-Rail System200

Slide 1:Despite severe business environment in recent years, we have continued steady growth; as a result, we are the fourth largest automotive parts supplier in the world by sales. Today, I would like to explain Denso�s targets and strategies to maximize sales and profits from now to the year 2005. Despite severe business environment in recent years, we have continued steady growth; as a result, we are the fourth largest automotive parts supplier in the world by sales. Today, I would like to explain Denso�s targets and strategies to maximize sales and profits from now to the year 2005.

Slide 2:Needless to say, the U.S. is the largest Automobile Market, and we have been striving to win �DENSO Brand� recognition. Consequently, in the fiscal year ending March 31, 2001, DENSO earned a total of 25 supplier awards from U.S.-based automobile manufacturers. Needless to say, the U.S. is the largest Automobile Market, and we have been striving to win �DENSO Brand� recognition. Consequently, in the fiscal year ending March 31, 2001, DENSO earned a total of 25 supplier awards from U.S.-based automobile manufacturers.

Slide 3:Above all, DENSO won GM Supplier Corporation of the Year in 1997 and 2000, Chrysler Supplier Role Model for Technology in 1995, GM Supplier of the Year Award for eight consecutive years, and Arthur D. Little Best of the Best Award for �Pathleading� Achievements in Manufacturing Management� in 1995. Above all, DENSO won GM Supplier Corporation of the Year in 1997 and 2000, Chrysler Supplier Role Model for Technology in 1995, GM Supplier of the Year Award for eight consecutive years, and Arthur D. Little Best of the Best Award for �Pathleading� Achievements in Manufacturing Management� in 1995.

Slide 4:1966 Gasoline Electronic Fuel Injection 1991 Air-Conditioning with HFC-134a 1995 180 Mega-Pascal Diesel Common-Rail System 2002 CO2 Air-Conditioning System

Then, let me begin today�s theme �Denso�s targets and strategies to maximize sales and profits from now to the year 2005�. First, as the mid-term business objective, we set the target sales of 2.7 trillion yen in FY2005. To this end, we plan to increase the number of Global Share #1 Automobile Parts Products from 14 items to 22. In the meantime, we defined ROE as our profit objective and would like to achieve 8% or over by FY2005. Then, let me begin today�s theme �Denso�s targets and strategies to maximize sales and profits from now to the year 2005�. First, as the mid-term business objective, we set the target sales of 2.7 trillion yen in FY2005. To this end, we plan to increase the number of Global Share #1 Automobile Parts Products from 14 items to 22. In the meantime, we defined ROE as our profit objective and would like to achieve 8% or over by FY2005.

Slide 6:Next is Operating Results. Sales of the previous term (FY2000) is increasing smoothly and was approx. Yen 2 trillion (on the consolidated basis). The compounded annual growth rate for the last five years was 5.5% (on the consolidated basis). To achieve the target for FY2005, [Yen 2.7 trillion], we plan to increase sales by approx. Yen 700 billion. ROE was on a track to recovery in the previous term (FY2000) with the bottom at 4.4%; it was 5.2% in 9/2001. Next is Operating Results. Sales of the previous term (FY2000) is increasing smoothly and was approx. Yen 2 trillion (on the consolidated basis). The compounded annual growth rate for the last five years was 5.5% (on the consolidated basis). To achieve the target for FY2005, [Yen 2.7 trillion], we plan to increase sales by approx. Yen 700 billion. ROE was on a track to recovery in the previous term (FY2000) with the bottom at 4.4%; it was 5.2% in 9/2001.

Slide 7:Now, I am going to explain three key points to achieve our long-term objectives. First is �Technology� supporting our Top Line Growth in harmony with Society Needs; �Global Supply� providing global existing and prospective customers with full-line up automobile parts in the next place, and �Profitability Enhancement� realizing the minimum cost at the highest quality in the third. Then, let me begin by �Technology�. Now, I am going to explain three key points to achieve our long-term objectives. First is �Technology� supporting our Top Line Growth in harmony with Society Needs; �Global Supply� providing global existing and prospective customers with full-line up automobile parts in the next place, and �Profitability Enhancement� realizing the minimum cost at the highest quality in the third. Then, let me begin by �Technology�.

Slide 8:As you see in this sheet, we currently manufacture and sell more than 380 automobile parts. i.e. Fuel Pump, Engine Electrical Parts, Radiator, Air-conditioner, Car heater, Meter, Wiper, Keyless Entry, Flasher, Horn, Car Navigation System, ABS, Cruise Control, Airbag We cover virtually all major automobile parts. As you see in this sheet, we currently manufacture and sell more than 380 automobile parts. i.e. Fuel Pump, Engine Electrical Parts, Radiator, Air-conditioner, Car heater, Meter, Wiper, Keyless Entry, Flasher, Horn, Car Navigation System, ABS, Cruise Control, Airbag We cover virtually all major automobile parts.