Capitalization of Panasonic EV Energy Co., Ltd. Increased

Tokyo - TOYOTA MOTOR CORPORATION (TMC), along with Matsushita Electric Industrial Co., Ltd. and Matsushita Battery Industrial Co., Ltd. (collectively, the Matsushita Group), today announced that they have increased capitalization of their jointly funded company, Panasonic EV Energy Co., Ltd. (PEVE), from two billion yen to three billion yen. PEVE manufactures nickel metal hydride batteries for hybrid electric vehicles (HEVs). Following this increased capitalization, the equity participation ratio by Toyota and the Matsushita Group changes from 40/60 to 60/40.

Against the backdrop of increased environmental concern and the need to conserve natural resources, the HEV market has reached a phase of peak growth. In order to accelerate the development of HEVs, it has become necessary to develop comprehensive technologies that combine conventional batteries with onboard systems. TMC and the Matsushita Group decided a restructuring of the capitalization ratio of PEVE was necessary to ensure PEVE’s ability to respond to these needs and to allow it to take advantage of TMC’s and the Matsushita Group’s technical expertise and marketing strength, enabling PEVE to continue its lead in the HEV battery market.