Notice Regarding Recording of Special Profit (Gain on Sale of Investment Securities) Associated with the Sale of Shares in Hotai Motor Co., Ltd.

Overview of Special Profit Recording

Hino Motors, Ltd. has resolved to sell its 2.0% stake in Hotai Motor Co., Ltd. to its parent company, Toyota Motor Corporation, with the sale scheduled for February or March 2026. As a result of this sale, a gain on sale of investment securities amounting to JPY 30,116 million is expected to be recorded as special profit in the fiscal year ending March 2026. The reason for the sale is to improve financial condition related to engine certification issues and as part of funding to smoothly promote the business integration with Mitsubishi Fuso Truck and Bus Corporation.

Ensuring Fairness and Protection of Minority Shareholders

Since the sale involves a transaction with the parent company, a special committee composed of independent outside directors examined the appropriateness and fairness of the purpose, terms, and procedures of the sale and concluded that there would be no disadvantage to minority shareholders. The Board of Directors, excluding Mr. Jun Nagata, unanimously resolved the matter, taking measures such as obtaining legal advice to avoid conflicts of interest. The transfer price was reasonably determined based on market price, subject to approval from the Taiwan Ministry of Economic Affairs.