Notice Concerning Sale of Cross-Shareholdings
[Translation]
Toyota Industries Corporation ("Toyota Industries") hereby announces that its Board of Directors, at a meeting held on October 31, 2024, resolved to sell all shares of DENSO CORPORATION held by Toyota Industries. Details are as follows.
| 1. | Policy for reducing cross-shareholdings |
| Toyota Industries recognizes that improvement of profitability, capital efficiency, and asset efficiency is one of the important management issues in aiming at sustainable business growth and increased corporate value over the mid- to long-term, and has sought to continuously strengthen corporate governance, taking into consideration the expectations of stock markets as well. With regard to cross-shareholdings, it promotes reduction and allocates funds appropriately to proactive investments for growth, investments to strengthen management and business foundations, and shareholder returns. In accordance with the reduction policy, Toyota Industries sold its cross-shareholdings worth 300.9 billion yen within the one year period ended October 31, 2024, and will also review other held shares in the future. |
| 2. | Details of the resolution |
| (1) Shares to be sold 184,897,656 common shares of DENSO CORPORATION | |
| (2) Period of sale From December 2024 to March 2027 | |
| (3) Method of sale To be determined |
| 3. | Future prospects |
| Toyota Industries will carry out notification promptly if the sale of shares conducted pursuant to the above resolution requires timely disclosure. However, there is a possibility that the sale may not be carried out, depending on deteriorating market conditions, the status of discussions with the issuer, and internal assessment of the appropriateness of holding the shares. Toyota Industries will continue to maintain its business relationship with the issuer after the sale of the shares is completed. As Toyota Industries has adopted International Financial Reporting Standards (IFRS) and the gain or loss on the sale of the shares will be treated as other comprehensive income in the consolidated financial statements, there will be no impact on profit in the consolidated financial statements. |
(For reference) Initiatives to Enhance Corporate Value (described in the presentation materials for the FY2024 financial results, announced on May 13, 2024)
The following are the targets for the generation and allocation of funds for the three years starting from the fiscal year ending March 31, 2025.
