Nov. 29, 2023

Boosting Growth Investment to Power Mobility Company Transformation Toyota-DENSO Capital Ties Revised

Toyota Motor Corporation (Toyota) has today decided to sell a portion of its shareholdings in DENSO CORPORATION (DENSO).

Toyota has been restructuring its groupwide business with a "home & away" perspective since 2016. This is part of its transformation into a mobility company, stimulating mutual improvement through greater collaboration with highly specialized group companies. Amid these efforts, the core group companies of Toyota, DENSO, Toyota Industries Corporation, and Aisin Corporation have held extensive discussions and have come to an agreement that, to start, Toyota will sell a portion of its shares in DENSO. By effectively leveraging funds obtained through the sale, Toyota can boost capital efficiency and achieve further growth for the Group, while maintaining the capital ties that have sustained a strong relationship. DENSO will continue to strengthen the Toyota Group's competitiveness as a leader in software. Toyota plans to use the generated capital to make growth investments focused on electrification, intelligence, and diversification initiatives.

Toyota also intends to carefully review its capital ties with other group companies on an individual basis, examining elements such as human resources, operations, culture, and business relationships while exploring the potential for strengthening competitiveness. The Group will continue working as one to drive Toyota's transformation into a mobility company.

Overview of DENSO stock sale

Number of shares to be sold		124,868,100 shares (planned)
Ownership ratio^*	Before sale	24.2%
Ownership ratio^*	After sale	20.0% (planned)

*	Toyota's shareholdings as a percentage of current total issued shares (2,995,373,516 shares, excludes treasury stock).

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.