Consolidated Statements of Cash Flows

DENSO Corporation and consolidated subsidiaries
Years ended March 31, 1997 and 1996 and three months ended March 31, 1995

	Millions of yen			Thousands of U.S. dollars (Note 1)
/	1997	1996	1995 (3 months)	1997
Operating Activities:
Net income	Y 71,376	Y 49,845	Y 7,442	$ 575,613
Adjustments to reconcile net income
to net cash provided by
operating activities:
Depreciation	94,890	91,167	21,275	765,242
Loss on sale or disposal of property,
plant and equipment, net	3,258	3,199	462	26,274
Net provision for accrued
retirement benefits	10,690	9,636	2,636	86,210
Minority interests in income of
consolidated subsidiaries	2,329	2,062	561	18,782
Foreign currency translation adjustments	(328)	(3,427)	(4,731)	(2,645)
Other, net	(3,889)	(864)	(6,806)	(31,363)
Changes in assets and liabilities: [net of
effects from consolidating 9 previously
unconsolidated subsidiaries (1995)]
(Increase)/decrease in
notes and accounts receivable	(21,549)	2,891	(11,355)	(173,782)
Increase in inventories	(16,558)	(6,678)	(8,886)	(133,532)
(Increase)/decrease in other
current assets	(6,707)	320	(1,437)	(54,089)
Increase/(decrease) in notes
and accounts payable	29,108	(9,883)	15,687	234,742
Increase/(decrease) in
income taxes payable	19,609	12,345	(10,020)	158,137
Increase in accrued expenses	2,163	15,489	19,408	17,443
Increase/(decrease) in
other current liabilities	13,468	(706)	2,793	108,613

Net cash provided by
operating activities	Y 197,860	Y 165,396	Y 27,029	$ 1,595,645

/
Investing Activities:
Additions to property,
plant and equipment	Y (124,789)	Y (96,632)	Y (15,500)	$ (1,006,363)
Proceeds from sale of property,
plant and equipment	7,449	432	269	60,073
Increase/(decrease) in payables
for property, plant and equipment	7,961	5,678	(762)	64,202
Net (increase)/decrease in
short-term investments	(33,524)	34,788	(110,401)	(270,355)
Increase in investment securities	(10,677)	(12,247)	(2,392)	(86,105)
(Increase)/decrease in investments in
non-consolidated subsidiaries
and associated companies	(2,189)	(7,115)	8,385	(17,653)
Other, net	(1,682)	4,399	9,719	(13,565)

Net cash used in investing activities	Y (157,451)	Y (70,697)	Y (110,682)	$ (1,269,766)

/
Financing Activities:
Decrease in long-term debt	Y (709)	Y (1,869)	Y --	$ (5,718)
Increase in short-term borrowings	811	86	331	6,540
Proceeds from exercise of warrants	--	--	321	--
Repayments of debt securities	--	(40,000)	--	--
Cash dividends paid	(12,170)	(9,128)	(6,919)	(98,145)
Payments to acquire treasury stocks	(19,998)	--	--	(161,274)
Other, net	502	(77)	(68)	4,048

Net cash used in financing activities	Y (31,564)	Y (50,988)	Y (6,335)	$ (254,549)

/
Cash and Cash Equivalents Increased by
Consolidating 9 Previously
Unconsolidated Subsidiaries	Y --	Y --	Y 9,918	$ --

Net Increase/(Decrease) in
Cash and Cash Equivalents	8,845	43,711	(80,070)	71,330
Cash and Cash Equivalents at
Beginning of Year	166,622	122,911	202,981	1,343,726

Cash and Cash Equivalents at
End of Year	Y 175,467	Y 166,622	Y 122,911	$ 1,415,056

/
Additional cash flow information:
Cash paid during the year for:
Interest	Y 3,485	Y 4,517	Y 116	$ 28,105
Income taxes	60,325	45,276	27,812	486,492
Non-cash financing activities:
Conversion of convertible bonds
to common stock and
paid-in capital	Y 35,346	Y 847	Y 6,953	$ 285,049

See accompanying notes to consolidated financial statements.