Developed an exhaust gas recirculation (EGR) valve unit, a major component of EGR

systems that helps make diesel engine emissions cleaner. The new unit, the first in the

world to integrate an air intake throttle valve and an EGR valve, which are usually installed

separately in vehicles, is half the size of conventional models and reduces costs by

20%. The air intake throttle valve controls the amount of air entering the engine and

the EGR valve controls the amount of exhaust gas to be recirculated into the engine.

Honored with the 2013 Nikkei Excellent Products & Services Award for Excellence in

recognition of the intelligent-Accuracy Refinement Technology (i-ART) feedback injec-

tion control system, a computer that controls common rail systems. The i-ART

feedback injection control system controls fuel injection precision to within 1mm3 in

volume and 1 / 100,000 of a second in timing. The Toyota Hilux, launched in Brazil in

2012, was the first mass production vehicle featuring i-ART to greet the world. The

awards recognize the technological development, growth potential, innovativeness, and

industry/social impact of the i-ART feedback injection control system.

Developed a new diesel common rail (DCR) fuel injection system with the world's

highest level of injection pressure at 2,500 bars. Compared with the Company's

previous 2,000 bar system, the new system can help increase fuel efficiency by up to

3% while also reducing hazardous substance particulate matter (PM) by up to 50%

and nitrogen oxides (NOx) by up to 8%, contributing to lower fuel costs and less

environmental impact. The new DCR fuel injection system is part of Volvo's new

Drive-E powertrains in Europe.

New Products and Technologies

Fiscal 2014 Topics

Powertrain Control Systems

In fiscal 2014, sales increased considerably compared with the previous fiscal year, buoyed

by a higher production volume at Japanese automakers and a recovery in China.

+15.8%1,238.21,433.4Sales (Billions of yen)

Change YoYFY2013FY2014

Results for Fiscal 2014 and Growth Strategies

Sales expanded for inverters used in hybrid vehicles made by Nissan Motor Co., Ltd.

(Pathfinder) and Mazda Motor Corporation (Axela).

Commenced production at a third newly constructed plant at PT. DENSO INDONESIA in

February 2014, in order to keep pace with expanding automobile production in Indo-

nesia. The new plant produces engine control products, including engine electronic

control units (ECUs) and variable cam timing (VCT) control systems, as well as

starters and alternators.

Decided to expand operations at the DENSO Mexico S.A. de C.V. (DNMX) manufactur-

ing facility in Silao in order to meet expanding production of automobiles in Mexico.

The Company will put in place a new manufacturing line for alternators with produc-

tion scheduled to commence from October 2014. Construction on the Silao Plant, the

third for DNMX, broke ground in March 2012. The plant started manufacturing

heating, ventilation and air conditioning (HVAC) units in November 2013 and radia-

tors and washer systems in January 2014.

Built an evaluation facility to strengthen the development of power electronics

products, such as inverters used in hybrid vehicles worldwide, on the site of the Anjo

Plant. The facility began participating in the development and evaluation of these

products in April 2014.

Established a production company in Cambodia, the Company's first presence there, as

part of efforts to enhance the production and supply framework in the ASEAN region. In

July 2013, production of sensor components for ignition magnetos (starters for motor-

cycles) commenced. Plans call for steadily expanding production to other products.

Business Expansion and New Companies

Common rail systems

Common rail systems

In-line fuel injection pumps, Rotary fuel injection pumps

Nozzles

Fuel filters

Diesel Injection Products

Intake and exhaust products: Exhaust gas recirculation (EGR) valves, Throttle bodies, Inte-

grated air fuel modules, and others

Variable valve products: Variable Cam Timing (VCT) components, Oil flow Control Valve

(OCV)

Drive control products: Integrated mechatronic modules, AT solenoid valves, Valve bodies,

Shift-by-wire actuators

Evaporator products: Purge valves, Evaporative leak check pump module

Sensors: Knock sensors, Air flow meters, Accelerator Pedal Module (APM)

Filters: Oil filters, Air cleaners

System Control Components

Ceramic substrates

Diesel Particulate Filters (DPFs)

Engine ECUs for motorcycles

Exhaust gas temperature sensor

Ignition coils, Magnetos

Spark plugs

Glow plugs

Exhaust gas sensors

Engine Control Components

Main Products

In fiscal 2015, to meet environmental regulations around the world, we will provide innova-

tive world-first products that improve internal combustion fuel efficiency. Specifically, we will

contribute to greater fuel economy and higher efficiency in internal combustion engines by

increasing sales of gasoline direct injection systems and diesel common rail systems. In the

field of electric motors, in addition to expanding sales of essential hybrid components such as

motor generators and inverters, we will pursue miniaturization and cost reduction in these

products. We will also leverage our core technologies and experience in the fields of starters,

alternators, engine cooling systems, and semiconductors to develop new products including

battery packs that make full use of our proprietary technologies. In aftermarket business for

products including iridium plugs, we plan to invest in cost-competitive products suited to

market needs and products with our proprietary technology at the core.

Inverter

Battery monitoring unitsInverters

DC-DC converters

EHV Components

Alternator

ISG

Lithium-ion battery pack

Starters

Alternators

MG stators

Engine Electrical Systems

Fuel pump module

Fuel pumps

Fuel pump modules

Fuel injectors

Direct injection components (Injector, Pump)

Gasoline Injection Products