Japan's Denso to target $8 billion in electrification revenue by FY 2025

TOKYO (Reuters) -Japanese automotive supplier Denso aims to increase its revenue from electrification to 1.2 trillion yen ($7.97 billion) by the 2025 business year and 1.7 trillion yen by the turn of the decade, the company said on Wednesday.

Denso aimed to grow its revenue from advanced-driver assistance systems (ADAS) to 520 billion yen by the 2025 business year and said it would further unwind cross-shareholdings, according to presentation materials.

The parts maker raised its 2025 revenue target by 20% from last year due to steady expansion of sales of inverters, thermal management and power supply systems as well as the tailwind from a weak yen, Chief Financial Officer Yasushi Matsui told media during a briefing.

"As electrification centred on battery electric vehicles progresses from the 2025 business year onward, we want to reach 1.7 trillion yen by 2030 by expanding sales globally," he said.

Denso has been ahead of other firms in actively reducing its cross-shareholdings, Matsui said, adding that none of the remaining holdings were off limits. The number of cross-shareholdings of the company stood at 18 as of Wednesday, the presentation materials showed.

Denso reiterated an October commitment to invest about 500 billion yen in semiconductors by 2030 and pledged to boost the number of workers in software to some 18,000 people by 2030, about 1.5 times of their current level.

($1 = 150.5400 yen)

(Reporting by Daniel Leussink; Editing by Muralikumar Anantharaman)