Notice Concerning Transactions with Affiliates
1. Controls from Toyota Motor Corporation("TMC")
|(As of March 31, 2020)|
2. Relationship to TMC of Toyota Industries Corporation
(1) Business relationship to TMC
Toyota Motor Corporation held 24.92% of the Toyota Industries Corporation's total voting rights. Toyota Industries Corporation is a TMC affiliate accounted for by the equity method.
Toyota Industries Corporation assembles certain cars and produces automobile engines under the consignment from TMC and our sales to TMC accounted for 65.0% of our net sales.
(2) Risk information for principal customers
TMC held 24.92% of the Toyota Industries Corporation's total voting rights. Toyota Industries Corporation maintains close relationship with TMC in terms of capital and business dealings. Under the consignment from TMC, Toyota Industries Corporation has no negative conditions and limitations from TMC. The sales to TMC accounted for 65.0% of our net sales, so TMC's vehicle sales could have an impact on Toyota Industries Corporation's business results.
(3) Conditions of transactions and determination policies
For the conditions of transactions and determination policies, Toyota Industries Corporation offers prices on such products based on their overall costs, considering conditions on arm's-length transactions, and negotiates prices for each fiscal year as for the sales of automobiles and engines etc.
As for the purchase of parts of automobiles and engines etc., Toyota Industries Corporation negotiates prices for each fiscal year, considering offered prices on such products and conditions on arm's-length transactions.
Conditions other than the prices are determined based on arm's-length transactions.
(4) Status of policy for business independency
Toyota Industries Corporation keeps the independency on business without any limitations from TMC.
3. Parent company and major corporate shareholder
|(Unit: millions of yen, As of March 31, 2020)|