Toyota City, Japan, October 14, 2021―Concerning the lawsuit filed by Nippon Steel Corporation (Nippon Steel) regarding a patent on electromagnetic steel sheets, Toyota's view is that such matters should be discussed between material manufacturers, and we have learned of this lawsuit with great regret.

In our dealings with various material manufacturers, our company implements on each occasion a careful process of confirming with them that there are no patent conflicts. Concerning the electromagnetic steel sheets manufactured by Baoshan Iron & Steel Co., Ltd. (Baosteel), as well, we confirmed that there was no infringement of another company's patent before concluding a contract. We also received a written statement from Baosteel to that effect.

Because Nippon Steel mentioned to us its concerns, we confirmed again with Baosteel, which, in turn, expressed its view to us that there was no patent infringement.

It is again with great regret that we have learned that Nippon Steel, which has supported the Japanese automobile industry and our company's automobile manufacturing for many years and is an important business partner of ours, decided to file such a lawsuit against us, as we are a material user.

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Toyota Motor Corporation works to develop and manufacture innovative, safe and high-quality products and services that create happiness by providing mobility for all. We believe that true achievement comes from supporting our customers, partners, employees, and the communities in which we operate. Since our founding over 80 years ago in 1937, we have applied our Guiding Principles in pursuit of a safer, greener and more inclusive society. Today, as we transform into a mobility company developing connected, automated, shared and electrified technologies, we also remain true to our Guiding Principles and many of the United Nations' Sustainable Development Goals to help realize an ever-better world, where everyone is free to move.

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