[Reference Translation]

April 24, 2025

To Whom It May Concern:

 

				Company Name: TOYOTA MOTOR CORPORATION
				Name and Title of Representative:
				Koji Sato, President
				(Code Number: 7203
				Prime of the Tokyo Stock Exchange and
				Premier of the Nagoya Stock Exchange)
				Name and Title of Contact Person:
				Yoshihide Moriyama, General Manager,
				Capital Strategy & Affiliated Companies Finance Div.
				(Telephone Number: 0565-28-2121)

Notice of the Difference in Non-Consolidated Financial Results of our

Consolidated Subsidiary from the Previous Fiscal Year

We hereby inform you of the difference in non-consolidated financial results of our consolidated subsidiary, Hino Motors, Ltd. for the fiscal year ended March 31, 2025 compared with the previous fiscal year.

The impact of this matter on our forecasts of consolidated results is expected to be immaterial.

Fiscal Year Ended March 31, 2025 (April 1, 2024 – March 31, 2025)

Fiscal Year Ended March 31, 2024 (April 1, 2023 – March 31, 2024)

 

		(% of change from previous year.)
		Net sales								Operating income								Ordinary income								Profit
		Millions of yen				%				Millions of yen				%				Millions of yen				%				Millions of yen				%
FY2025			910,689				10.0				6,006				—				8,623				—				-210,652				—
FY2024			827,969				-0.5				-31,736				—				-56,894				—				-948				—

For the reason for the difference, please refer to the attached Hino Motors, Ltd. disclosure below.

Financial Results for the Fiscal Year Ended March 31, 2025 [Japanese GAAP] (Consolidated) English translation from the original Japanese-language document

						April 24, 2025
Name of Listed Company		:		Hino Motors, Ltd.		Stock Listing: Tokyo and Nagoya
Code Number		:		7205
URL		:		http://www.hino.co.jp/
Representative		:		Satoshi Ogiso, President & CEO, Member of the Board of Directors
Contact Point		:		Makoto Iijima, General Manager, Government & Public Affairs Div.
Phone		:		(042) 586-5494
Scheduled Date of Annual Meeting of Shareholders		:		June 26, 2025
Scheduled Date of Financial Statements Filing		:		June 24, 2025
Scheduled Date of Dividend Payment Start		:		—
Supplementary materials for Financial Results		:		Yes
Investor conference for Financial Results		:		Yes (For Mass Media and Analysts)

(Amounts are rounded down to the nearest one million yen)

 

1.	Consolidated Financial Results for the Fiscal Year Ended March 31, 2025 (April 1, 2024 – March 31, 2025)

 

(1)	Consolidated Financial Results

 

		(% of change from previous year.)
		Net sales								Operating income								Ordinary income								Profit attributable to owners of parent
		Millions of yen				%				Millions of yen				%				Millions of yen				%				Millions of yen				%
FY 2025			1,697,229				11.9				57,490				—				39,310				—				-217,753				—
FY 2024			1,516,255				0.6				-8,103				—				-9,233				—				17,087				—

(Note)		Comprehensive income FY 2025: ¥-206,726 million (—%) FY 2024: ¥36,847 million (—%)

 

		Profit per share				Diluted Profit per share				Return on equity				Ordinary income to total assets				Operating income to net sales
		Yen				Yen				%				%				%
FY 2025			-379.34				—				-76.3				2.7				3.4
FY 2024			29.77				—				4.5				-0.7				-0.5

(Reference)		Equity in earnings of affiliated companies:  FY 2025: ¥2,120 million FY 2024: ¥3,155 million

 

(2)	Consolidated Financial Position

 

		Total assets				Net assets				Equity ratio				Net assets per share
		Millions of yen				Millions of yen				%				Yen
FY 2025			1,478,180				251,020				12.1				310.90
FY 2024			1,464,375				463,420				26.8				682.98

(Reference) Equity capital:    FY 2025: ¥178,468 million    FY 2024: ¥392,049 million

 

(3)	Consolidated Cash Flows

		Cash flows from operating activities				Cash flows from investing activities				Cash flows from financing activities				Cash and cash equivalents at end of year
		Millions of yen				Millions of yen				Millions of yen				Millions of yen
FY 2025			1,128				-4,600				29,738				88,420
FY 2024			-110,410				39,244				55,638				67,733

 

2.

Dividends

 

		Dividends per share																				Total dividends (annual)				Dividends payout ratio (consolidated)				Dividends on net assets (consolidated)
		1Q				2Q				3Q				Year-end				Annual
		Yen				Yen				Yen				Yen				Yen				Millions of Yen				%				%
FY 2024			—				0.00				—				0.00				0.00				—				—				—
FY 2025			—				0.00				—				0.00				0.00				—				—				—
FY 2026 (forecast)			—				—				—				—				—								—

(Note)		A profit attributable to owners of parent of 20 billion yen is expected to be posted, but it is imperative to restore the financial standing, which has degraded through the falsification for certification, so the expected dividend amount for the fiscal year ending March 2026 is still to be determined.

3.	Forecasts of Consolidated Financial Results for the Fiscal Year Ending March 31, 2025 (April 1, 2025 – March 31, 2026)

 

		(% of change from FY2025)
		Net sales						Operating income						Ordinary income						Profit attributable to owners of parent						Profit per share
		Millions of yen		%				Millions of yen		%				Millions of yen		%				Millions of yen		%				Yen
FY 2026		1,500,000			-11.6			40,000			-30.4			35,000			-11.0			20,000			—			34.84

*Notes

 

(1)	Changes in significant subsidiaries (changes of specified subsidiaries resulting in changes in scope of consolidation) during the current term: None

 

(2)	Changes in accounting policies, accounting estimates and restatements:

 

1)

Changes in accounting policies due to revisions of accounting standards: Yes

 

2)

Changes in accounting policies due to reasons other than above 1): None

 

3)

Changes in accounting estimates: None

 

4)

Restatements: None

 

(3)	Number of outstanding shares (common stock)

 

1)

Number of outstanding shares (including treasury stock) at end of term

 

FY 2025  574,580,850 shares FY 2024  574,580,850 shares

 

2)

Number of treasury stock at end of term

 

FY 2025  536,216 shares FY 2024  554,874 shares

 

3)

Average number of shares

 

FY 2025  574,036,755 shares FY 2024  574,026,355 shares

(Reference) Overview of Non-Consolidated Financial Results

 

1.	Non-Consolidated Financial Results for the Fiscal Year Ended March 31, 2025 (April 1, 2024 – March 31, 2025)

 

(1)	Non-Consolidated Financial Results

		(% of change from previous year.)
		Net sales								Operating income								Ordinary income								Profit
		Millions of yen				%				Millions of yen				%				Millions of yen				%				Millions of yen				%
FY 2025			910,689				10.0				6,006				—				8,623				—				-210,652				—
FY 2024			827,969				-0.5				-31,736				—				-56,894				—				-948				—

 

		Profit per share				Diluted Profit per share
		Yen				Yen
FY 2025			-366.89				—
FY 2024			-1.65				—

 

(2)	Non-Consolidated Financial Position

 

		Total assets				Net assets				Equity ratio				Net assets per share
		Millions of yen				Millions of yen				%				Yen
FY 2025			856,893				-36,465				-4.3				-63.51
FY 2024			854,505				187,641				22.0				326.81

(Reference) Equity capital:    FY 2025: ¥-36,465 million    FY 2024: ¥187,641 million

<Reasons for the difference in non-consolidated results from the previous fiscal year>

In the fiscal year under review, our sales, operating income and ordinary income exceeded the results in the previous fiscal year mainly due to price revisions and exchange rate effects. Although we posted gain on sale of non-current assets as extraordinary income, net income decreased from the previous fiscal year as net loss was recorded due to posting loss related to North American certification and expenses for legal settlement in Australia under the section of extraordinary loss, as outlined under “3. Consolidated Financial Statements and Major Notes: (5) Notes to Consolidated Financial Statements (Notes on Consolidated Statements of Income)” on page 15 of the appendix.

 

*	Summary of financial results is out of scope of audit by Certified Public Accountants or Audit companies.

 

*	Statement regarding the proper use of financial forecasts and other remarks

Descriptions regarding the future, including the financial projections contained in this report, are based on certain assumptions currently available to the Company, which are, at the discretion of the Company, deemed reasonable, and the Company gives no guarantees that it will achieve these results. In addition, actual financial results may significantly vary due to various factors.

Hino Motors, Ltd. (7205) Financial Results for the Fiscal Year Ending March 31, 2025

 

Appendix

Table of contents of the appendix

 

1 Operating Results Overview			2
(1) Operating Results Overview for Current Term			2
(2) Financial Position Overview for Current Term			3
(3) Cash Flow Overview for Current Term			3
(4) Future Outlook			3
(5) Basic Policy on Profit Distribution and Dividends for FY2025 and FY2026			4
2 Basic Policy on Selection of Accounting Standards			5
3 Consolidated Financial Statements and Major Notes			6
(1) Consolidated Balance Sheets			6
(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income			8
(3) Consolidated Statements of Changes in Net Assets			11
(4) Consolidated Statements of Cash Flows			13
(5) Notes to Consolidated Financial Statements			15
(Notes on Going Concern Assumption)			15
(Changes in Accounting Policies)			15
(Notes on Consolidated Balance Sheets)			15
(Notes on Consolidated Statements of Income)			16
(Regarding Shareholders’ Equity, etc.)			17
(Notes on Segment Information, etc.)			18
(Regarding Revenue Recognition)			19
(Per Share Information)			20
(Contingent Liabilities)			21
(Significant Subsequent Events)			21
4 Supplementary Information			22
(1) Actual Production (Consolidated)			22
(2) Actual Sales (Consolidated)			22

 

–1–

Hino Motors, Ltd. (7205) Financial Results for the Fiscal Year Ending March 31, 2025

 

1	Operating Results Overview

 

(1)

Operating Results Overview for Current Term

As for the Japanese domestic truck market in this consolidated fiscal year, production at each company recovered as parts supply improved. As a result, the total demand for heavy-, medium-, and light-duty trucks increased. In the domestic bus market, total demand increased as issues concerning restrictions on supply have been resolved and customers no longer refrain from buying after the subsiding of the COVID-19 crisis. As a result of the above, total domestic demand for trucks and buses was 167.8 thousand vehicles, an increase of 18.4 thousand vehicles (12.3%) compared to the previous fiscal year.

As for Japanese domestic sales, due to favorable sale of certain heavy-duty truck models, whose shipment has been resumed, the total sales volume of heavy-, medium-, and light-duty trucks and buses was 42.0 thousand units, an increase of 3.4 thousand units (8.9%) compared to the previous fiscal year.

As for overseas market, due to the decline in sales in ASEAN countries, overseas sales volume of trucks and buses was 85.8 thousand vehicles, a decrease of 6.2 thousand vehicles (-6.8%) compared to the previous fiscal year.

As a result of the above, total unit sales of Hino Brand trucks and buses decreased to 127.8 thousand units by 2.8 thousand units (-2.1%) compared to the previous fiscal year.

As for the volume of sales to Toyota Motor Corporation, because the sales of SUV and light-duty trucks increased, total sales volume increased to 152.5 thousand units by 48.2 thousand units (46.2%) compared to the previous fiscal year.

In addition to the above-mentioned, according to the impact of the conversion of foreign currency to yen currency at overseas subsidiaries and price revisions, net sales in this consolidated fiscal year were ¥1,697,229 million, which is an increase of ¥180,974 million (11.9%) compared to the previous fiscal year. As for profit and loss, due to the depreciation of yen, etc. in addition to the growth in the number of units sold domestically and the number of vehicles for Toyota, operating income was ¥57,490 million which is an increase of ¥65,594 million compared to the previous fiscal year (operating loss of ¥8,103 million in the previous consolidated fiscal year) and ordinary income was ¥39,310 million which is an increase of ¥48,544 million compared to the previous fiscal year (ordinary loss of ¥9,233 million in the previous consolidated fiscal year). In addition, a gain on sale of non-current assets due to the sale of part of the land of the former Hino factory, etc. of ¥34,553 million and a gain on sales of securities through sales of our strategically-held shares, etc. amounting to ¥18,002 were recorded in extraordinary income, while a loss related to North American certification was recorded in the section of extraordinary loss for ¥258,413 million. As a result, loss attributable to owners of parent was ¥217,753 million which is a decrease of ¥234,841 million compared to the previous fiscal year (profit attributable to owners of parent of ¥17,087 million in the previous fiscal year).

The performance in each segment is as follows:

(Japan)

In the Hino brand business, sales of trucks and buses to the Japanese market increased mainly due to an increase in unit sales of heavy-duty truck models. As for overseas sales, overall sales increased due to an increase in unit sales to North America, despite a decline in unit sales mainly to ASEAN countries. Furthermore, sales to Toyota increased due to an increase in unit sales of SUVs, Dyna, etc.

As a result, net sales were ¥1,172,851 million, up ¥146,368 million (14.3%) compared to the previous year. In terms of profit and loss, the profit (operating income) in this segment increased by ¥43,994 million compared to the previous year to ¥28,353 million (a loss of ¥15,640 million in the same period of the previous fiscal year).

(Asia)

Net sales decreased ¥36,768 million (-8.0%) compared to the previous year to ¥424,601 million, mainly due to an economic downturn in Asia, mainly Thailand. The profit (operating income) in this segment was ¥24,601 million, a decrease of ¥7,300 million (-22.9%) compared to the previous year.

(Other)

Net sales were ¥334,658 million, an increase of ¥55,080 million (19.7%) compared to the previous year, mainly due to an increase in the number of units sold mainly in North America. The profit (operating income) in this segment was ¥6,475 million, an increase of ¥32,796 million compared to the previous year (a loss of ¥26,321 million in the same period of the previous fiscal year).

 

–2–

Hino Motors, Ltd. (7205) Financial Results for the Fiscal Year Ending March 31, 2025

 

(2)

Financial Position Overview for Current Term

Total assets as of the end of this fiscal year increased to ¥1,478,180 million by ¥13,805 million compared to the end of the previous fiscal year. This is mainly because cash and deposits increased by ¥116,648 million, although inventories decreased by ¥42,366 million and investment securities decreased by ¥22,567 million.

Liabilities increased to ¥1,227,159 million by ¥226,204 million compared to the end of the previous fiscal year. This is mainly because provision for certification related loss increased by ¥104,267 million and long-term accounts payable - other increased by ¥58,510 million.

Net assets decreased to ¥251,020 million by ¥212,399 million compared to the end of the previous fiscal year. This is mainly because loss attributable to owners of parent of ¥217,753 million was recorded.

 

(3)

Cash Flow Overview for Current Term

Cash flows for this fiscal year are as follows.

Cash provided by operating activities was ¥1,128 million. This was mainly because ¥97,337 million was transferred to the account in which depositing and withdrawal were restricted while inventories increased by ¥43,022 million and notes and accounts receivable - trade decreased by ¥33,084 million.

Cash used in investing activities was ¥4,600 million. This was mainly due to the expenditure of ¥61,987 million on purchase of non-current assets centering on production facilities, despite gain on sale of non-current assets of ¥36,366 million and proceeds from sale of investment securities of ¥23,973 million.

Cash provided by financing activities was ¥29,738 million. This was mainly due to net increase in short-term loans payable of ¥39,705 million.

As a result, cash and cash equivalents at the end of this fiscal year increased to ¥88,420 million by ¥20,687 million compared to the end of the previous fiscal year

 

(4)

Future Outlook

Sales and profit are projected to decline due to the downturn in the overseas market and the yen appreciation. Accordingly, the earnings forecast for the next term is as follows.

 

(Consolidated Earnings Forecast for the Full Fiscal Year)
Net sales		¥	1,500,000 million
Operating income		¥	40,000 million
Ordinary income		¥	35,000 million
Profit attributable to owners of parent		¥	20,000 million
Japan unit sales of trucks and buses			37.0 thousand units
Overseas unit sales of trucks and buses			78.0 thousand units
Unit sales of Toyota brand vehicles			165.2 thousand units

 

*	The above forecasts are created based on the information available to the company and on certain assumptions deemed reasonable and are not guaranteed to be achieved.

 

–3–

Hino Motors, Ltd. (7205) Financial Results for the Fiscal Year Ending March 31, 2025

 

(5)

Basic Policy on Profit Distribution and Dividends for FY 2025 and FY 2026

Our company will strive to achieve a consolidated payout ratio of 30% stably and continuously, while fortifying its financial standing and considering its business performance, new investments, etc. in each term.

However, retained earnings turned negative through the posting of loss in the fiscal year under review, so we are sorry to inform you that we will not pay a year-end dividend.

A profit attributable to owners of parent of 20 billion yen is projected to be posted, but the expected dividend amount for the fiscal year ending March 2026 is still to be determined, as the loss due to the falsification for certification caused a significant impact on the performance of our corporate group and it is necessary to restore and strengthen our financial standing for the foreseeable future. We will disclose the expected dividend amount as soon as it becomes possible to disclose it.

 

–4–

Hino Motors, Ltd. (7205) Financial Results for the Fiscal Year Ending March 31, 2025

 

2

Basic Policy on Selection of Accounting Standards

As the Group is not listed on overseas markets, and for ease of comparison with other companies, Japanese standards are used, and regarding the selection of IFRS (International Financial Reporting Standards), the accounting standards used by other companies domestically will be considered as we continue to gather information and discuss the issue with experts, and the decision will be made carefully.

 

–5–

Hino Motors, Ltd. (7205) Financial Results for the Fiscal Year Ending March 31, 2025

 

3.	Consolidated Financial Statements and Major Notes

 

(1)	Consolidated Balance Sheets

 

		(Millions of yen)
		As of March 31, 2024				As of March 31, 2025
Assets
Current assets
Cash and deposits			76,955				193,603
Notes and accounts receivable - trade			296,364				263,208
Lease receivables			43,608				51,255
Merchandise and finished goods			233,940				197,832
Work in process			54,207				44,951
Raw materials and supplies			42,467				45,464
Other			64,014				43,106
Allowance for doubtful accounts			-3,251				-3,245
Total current assets			808,307				836,177
Non-current assets
Property, plant and equipment
Buildings and structures, net			184,508				185,139
Machinery, equipment and vehicles, net			82,743				81,349
Tools, furniture and fixtures, net			23,910				20,272
Land			123,861				124,201
Leased assets, net			5,703				5,282
Construction in progress			23,634				26,542
Assets for rent, net			151				49
Total property, plant and equipment			444,513				442,836
Intangible assets
Software			30,231				33,083
Other			1,090				1,274
Total intangible assets			31,322				34,357
Investments and other assets
Investment securities			125,344				102,776
Retirement benefit asset			25,466				32,856
Deferred tax assets			11,527				11,694
Other			21,245				20,547
Allowance for doubtful accounts			-3,351				-3,067
Total investments and other assets			180,231				164,808
Total non-current assets			656,067				642,003
Total assets			1,464,375				1,478,180

 

–6–

Hino Motors, Ltd. (7205) Financial Results for the Fiscal Year Ending March 31, 2025

 

		(Millions of yen)
		As of March 31, 2024				As of March 31, 2025
Liabilities
Current liabilities
Notes and accounts payable - trade			234,846				235,221
Short-term borrowings			328,010				365,543
Current portion of bonds payable			3,367				8,418
Current portion of long-term borrowings			22,251				8,511
Lease liabilities			1,464				1,364
Accounts payable - other			55,948				50,817
Income taxes payable			6,787				7,209
Provision for bonuses			7,980				8,180
Provision for bonuses for directors (and other officers)			581				604
Provision for product warranties			46,215				105,551
Provision for certification related loss			21,129				125,396
Other			124,559				104,548
Total current liabilities			853,141				1,021,370
Non-current liabilities
Bonds payable			7,902				6,703
Long-term borrowings			12,258				18,351
Lease liabilities			14,430				13,581
Deferred tax liabilities			35,266				36,777
Deferred tax liabilities for land revaluation			2,742				2,806
Retirement benefit liability			49,446				43,175
Provision for retirement benefits for directors (and other officers)			1,497				1,559
Asset retirement obligations			1,572				2,404
Long-term Accounts payable - other			—				58,510
Other			22,697				21,917
Total non-current liabilities			147,813				205,789
Total liabilities			1,000,954				1,227,159
Net assets
Shareholders’ equity
Share capital			72,717				72,717
Capital surplus			65,928				66,299
Retained earnings			178,510				-39,243
Treasury shares			-202				-201
Total shareholders’ equity			316,953				99,571
Accumulated other comprehensive income
Valuation difference on available-for-sale securities			46,620				34,938
Deferred gains or losses on hedges			3				-20
Revaluation reserve for land			2,273				2,290
Foreign currency translation adjustment			9,467				13,948
Remeasurements of defined benefit plans			16,731				27,738
Total accumulated other comprehensive income			75,095				78,896
Non-controlling interests			71,371				72,552
Total net assets			463,420				251,020
Total liabilities and net assets			1,464,375				1,478,180

 

–7–

(2)	Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

[Consolidated Statements of Income]

 

		(Millions of yen)
		FY 2024 (From April 1, 2023 to March 31, 2024)				FY 2025 (From April 1, 2024 to March 31, 2025)
Net sales			1,516,255				1,697,229
Cost of sales			1,282,679				1,401,522
Gross profit			233,575				295,707
Selling, general and administrative expenses
Sales commission			7,086				3,580
Transportation and storage costs			12,833				14,390
Provision for product warranties			46,215				46,781
Advertising expenses			1,271				1,076
Salaries and allowances			59,986				60,762
Provision for bonuses			4,239				4,411
Provision for bonuses for directors (and other officers)			589				603
Retirement benefit expenses			2,668				2,771
Provision for retirement benefits for directors (and other officers)			350				367
Rent expenses			8,468				12,150
Other			97,970				91,319
Total selling, general and administrative expenses			241,679				238,216
Operating profit (loss)			-8,103				57,490
Non-operating income
Interest income			2,234				2,509
Dividend income			2,560				3,739
Rental income			1,135				606
Foreign exchange gains			1,912				—
Share of profit of entities accounted for using equity method			3,155				2,120
Miscellaneous income			3,473				4,202
Total non-operating income			14,472				13,179
Non-operating expenses
Interest expenses			11,608				13,353
Foreign exchange losses			—				14,397
Miscellaneous expenses			3,992				3,608
Total non-operating expenses			15,601				31,359
Ordinary profit (loss)			-9,233				39,310

 

–8–

Hino Motors, Ltd. (7205) Financial Results for the Fiscal Year Ending March 31, 2025

 

		(Millions of yen)
		FY 2024 (From April 1, 2023 to March 31, 2024)				FY 2025 (From April 1, 2024 to March 31, 2025)
Extraordinary income
Gain on sale of non-current assets			92,067				34,553
Gain on sale of investment securities			19,484				18,002
Reversal of provision for domestic certification related loss			17,000				4,739
Other			1,033				2,083
Total extraordinary income			129,585				59,378
Extraordinary losses
Loss on sale and retirement of non-current assets			1,213				2,929
Impairment losses			11,608				7,724
Loss related to domestic certification			24,216				598
Loss related to North American certification			36,363				258,413
Australian litigation settlement			—				8,700
Other			3,860				10,887
Total extraordinary losses			77,263				289,252
Profit (loss) before income taxes			43,088				-190,563
Income taxes - current			19,930				17,351
Income taxes - deferred			-2,062				4,777
Total income taxes			17,867				22,129
Profit (loss)			25,220				-212,693
Profit attributable to non-controlling interests			8,132				5,060
Profit (loss) attributable to owners of parent			17,087				-217,753

 

–9–

Hino Motors, Ltd. (7205) Financial Results for the Fiscal Year Ending March 31, 2025

 

[Consolidated Statements of Comprehensive Income]

 

		(Millions of yen)
		FY 2024 (From April 1, 2023 to March 31, 2024)				FY 2025 (From April 1, 2024 to March 31, 2025)
Profit (loss)			25,220				-212,693
Other comprehensive income
Valuation difference on available-for-sale securities			-5,686				-12,855
Deferred gains or losses on hedges			200				-64
Revaluation reserve for land			—				37
Foreign currency translation adjustment			6,007				6,402
Remeasurements of defined benefit plans, net of tax			9,526				10,897
Share of other comprehensive income of entities accounted for using equity method			1,579				1,549
Total other comprehensive income			11,627				5,966
Comprehensive income			36,847				-206,726
Comprehensive income attributable to
Comprehensive income attributable to owners of parent			24,163				-213,953
Comprehensive income attributable to non-controlling interests			12,684				7,226

 

–10–

Hino Motors, Ltd. (7205) Financial Results for the Fiscal Year Ending March 31, 2025

 

(3)	Consolidated Statements of Changes in Net Assets

Previous Fiscal Year (From April 1, 2023 to March 31, 2024)

 

		(Millions of yen)
		Shareholders’ equity																				Accumulated other comprehensive income
		Share capital				Capital surplus				Retained earnings				Treasury shares				Total shareholders’ equity				Valuation difference on available-for- sale securities				Deferred gains or losses on hedges
Balance at beginning of period			72,717				65,956				161,423				-202				299,894				51,315				-53
Changes during period
Profit (loss) attributable to owners of parent											17,087								17,087
Purchase of treasury shares															-0				-0
Change in ownership interest of parent due to transactions with non-controlling interests							-28												-28
Capital increase of consolidated subsidiaries
Net changes in items other than shareholders’ equity																							-4,695				57
Total changes during period			—				-28				17,087				-0				17,058				-4,695				57
Balance at end of period			72,717				65,928				178,510				-202				316,953				46,620				3

 

		Accumulated other comprehensive income
		Revaluation reserve for land				Foreign currency translation adjustment				Remeasureme nts of defined benefit plans				Total accumulated other comprehensive income				Non- controlling interests				Total net assets
Balance at beginning of period			2,273				7,487				6,996				68,020				65,494				433,409
Changes during period
Profit (loss) attributable to owners of parent																							17,087
Purchase of treasury shares																							-0
Change in ownership interest of parent due to transactions with non-controlling interests																							-28
Capital increase of consolidated subsidiaries
Net changes in items other than shareholders’ equity							1,979				9,734				7,075				5,876				12,952
Total changes during period			—				1,979				9,734				7,075				5,876				30,011
Balance at end of period			2,273				9,467				16,731				75,095				71,371				463,420

 

–11–

Hino Motors, Ltd. (7205) Financial Results for the Fiscal Year Ending March 31, 2025

 

Current Fiscal Year (From April 1, 2024 to March 31, 2025)

 

		(Millions of yen)
		Shareholders’ equity																				Accumulated other comprehensive income
		Share capital				Capital surplus				Retained earnings				Treasury shares				Total shareholders’ equity				Valuation difference on available-for- sale securities				Deferred gains or losses on hedges
Balance at beginning of period			72,717				65,928				178,510				-202				316,953				46,620				3
Changes during period
Profit (loss) attributable to owners of parent											-217,753								-217,753
Purchase of treasury shares															1				1
Change in ownership interest of parent due to transactions with non-controlling interests							232												232
Capital increase of consolidated subsidiaries							138												138
Net changes in items other than shareholders’ equity																							-11,681				-23
Total changes during period			—				371				-217,753				1				-217,381				-11,681				-23
Balance at end of period			72,717				66,299				-39,243				-201				99,571				34,938				-20

 

		Accumulated other comprehensive income
		Revaluation reserve for land				Foreign currency translation adjustment				Remeasureme nts of defined benefit plans				Total accumulated other comprehensive income				Non- controlling interests				Total net assets
Balance at beginning of period			2,273				9,467				16,731				75,095				71,371				463,420
Changes during period
Profit (loss) attributable to owners of parent																							-217,753
Purchase of treasury shares																							1
Change in ownership interest of parent due to transactions with non-controlling interests																							232
Capital increase of consolidated subsidiaries																							138
Net changes in items other than shareholders’ equity			17				4,481				11,007				3,800				1,181				4,981
Total changes during period			17				4,481				11,007				3,800				1,181				-212,399
Balance at end of period			2,290				13,948				27,738				78,896				72,552				251,020

 

–12–

Hino Motors, Ltd. (7205) Financial Results for the Fiscal Year Ending March 31, 2025

 

(4)	Consolidated Statements of Cash Flows

 

		(Millions of yen)
		FY 2024 (From April 1, 2023 to March 31, 2024)				FY 2025 (From April 1, 2024 to March 31, 2025)
Cash flows from operating activities
Profit (loss) before income taxes			43,088				-190,563
Depreciation			56,479				59,484
Impairment losses			11,608				7,724
Increase (decrease) in allowance for doubtful accounts			-2,060				-340
Increase (decrease) in provision for product warranties			618				59,336
Increase (decrease) in provision for certification related loss			-78,949				104,267
long-term accounts payable			—				58,510
Decrease (increase) in retirement benefit asset			-2,418				-1,679
Increase (decrease) in retirement benefit liability			616				1,012
Interest and dividend income			-4,794				-6,249
Interest expenses			11,608				13,353
Share of loss (profit) of entities accounted for using equity method			-3,155				-2,120
Loss (gain) on sale of investment securities			-19,484				-18,002
Loss (gain) on sale and retirement of non-current assets			-90,853				-31,624
Decrease (increase) in trade receivables			2,913				33,084
Decrease (increase) in lease receivables			-7,614				-5,224
Decrease (increase) in inventories			-40,644				43,022
Increase (decrease) in trade payables			-14,861				-379
Decrease (increase) in other current assets			4,294				18,687
Increase (decrease) in other current liabilities			51,051				-16,240
Other, net			-3,249				1,019
Subtotal			-85,806				127,077
Transfer to account with restrictions on deposits and withdrawals			—				-97,337
Interest and dividends received			4,915				6,409
Interest paid			-12,036				-12,744
Income taxes refund (paid)			-17,482				-22,276
Net cash provided by (used in) operating activities			-110,410				1,128
Cash flows from investing activities
Payments into time deposits			-2,862				-1,973
Proceeds from withdrawal of time deposits			704				3,907
Purchase of property, plant and equipment			-67,321				-61,987
Proceeds from sale of property, plant and equipment			99,290				36,366
Purchase of intangible assets			-8,474				-11,738
Purchase of investment securities			-74				-75
Proceeds from sale of investment securities			24,611				23,973
Proceeds from sale of shares of subsidiaries and associates			—				1,135
Long-term loan advances			-1,936				-1,987
Proceeds from collection of long-term loans receivable			1,888				1,928
Short-term loan advances			-5,820				—
Proceeds from collection of short-term loans receivable			—				5,824
Other, net			-760				26
Net cash provided by (used in) investing activities			39,244				-4,600

 

–13–

Hino Motors, Ltd. (7205) Financial Results for the Fiscal Year Ending March 31, 2025

 

		(Millions of yen)
		FY 2024 (From April 1, 2023 to March 31, 2024)				FY 2025 (From April 1, 2024 to March 31, 2025)
Cash flows from financing activities
Net increase (decrease) in short-term borrowings			63,088				39,705
Proceeds from issuance of bonds			7,035				6,720
Redemption of bonds			-1,645				-3,513
Proceeds from long-term borrowings			—				13,140
Repayments of long-term borrowings			-5,230				-19,779
Proceeds from share issuance to non-controlling shareholders			—				400
Dividends paid to non-controlling interests			-6,818				-5,822
Purchase of shares of subsidiaries not resulting in change in scope of consolidation			—				-257
Other, net			-790				-855
Net cash provided by (used in) financing activities			55,638				29,738
Effect of exchange rate change on cash and cash equivalents			7,576				-5,324
Net increase (decrease) in cash and cash equivalents			-7,950				20,942
Cash and cash equivalents at beginning of period			75,683				67,733
Decrease in cash and cash equivalents resulting from exclusion of subsidiaries from consolidation			—				-254
Cash and cash equivalents at end of period			67,733				88,420

 

–14–

Hino Motors, Ltd. (7205) Financial Results for the Fiscal Year Ending March 31, 2025

 

(5)	Notes to Consolidated Financial Statements

(Notes on Going Concern Assumption)

There is no related information.

(Changes in Accounting Policies)

(Application of “Accounting Standard for Current Income Taxes” and so on)

“Accounting Standard for Current Income Taxes” (ASBJ Statement No.27, October 28, 2022); hereinafter referred to as “the accounting standards revised in 2022”) has been applied since the beginning of the current consolidated fiscal year.

Regarding the revision to the classification for posting income taxes (taxation on other comprehensive income), we follow the transitional handling set forth in the proviso of Paragraph 20-3 of the accounting standards revised in 2022 and the transitional handling set forth in the proviso of Paragraph 65-2 (2) of “the guidelines for applying the accounting standards for tax effect accounting” (Guidelines for applying corporate accounting standards No. 28; October 28, 2022; hereinafter referred to as “the application guidelines revised in 2022”). Said change in the accounting policy will not produce any effects on consolidated financial statements.

Regarding the revision to the method for deferring gain or loss on sale of shares of subsidiaries among consolidated group companies in consolidated financial statements for tax affairs, the application guidelines revised in 2022 have been applied since the beginning of the current consolidated fiscal year. The changed accounting policy has been applied retroactively, so the consolidated financial statements for the previous consolidated fiscal year indicate the figures after the retroactive application. Said change in the accounting policy will not produce any effects on the consolidated financial statements for the previous consolidated fiscal year.

(Application of “Accounting for and Disclosure of Current Taxes Related to the Global Minimum Tax Rules”)

“Accounting for and Disclosure of Current Taxes Related to the Global Minimum Tax Rules” (Report on practical response No. 46; March 22, 2024) etc., has been applied since the beginning of the fiscal year under review.

The impact of said revision to the accounting policy on consolidated financial statements is minor.

(Notes on Consolidated Balance Sheets)

1. Guaranteed liabilities

The company provides guarantees for loans from financial institutions other than consolidated companies.

 

		FY 2024 (From April 1, 2023 to March 31, 2024)				FY 2025 (From April 1, 2024 to March 31, 2025)
Auto Loans		¥	2 million			¥	1 million
Housing Loans for Employees		¥	167 million			¥	104 million
Total		¥	170 million			¥	105 million

2. *Long-term accounts payable - other

The accounts payable - other and long-term accounts payable - other in the fiscal year under review include the unpaid criminal penalty due to the certification issue of our company, which was posted as extraordinary loss related to the certification issue in North America.

The details of the loss related to the certification issue in North America are as mentioned in “3. Consolidated Financial Statements and Major Notes, (5) Notes to Consolidated Financial Statements (Notes on Consolidated Statements of Income).”

 

		FY 2024 (From April 1, 2023 to March 31, 2024)				FY 2025 (From April 1, 2024 to March 31, 2025)
Accounts payable - other			—			¥	19,503 million
Long-term accounts payable - other			—			¥	58,510 million

 

–15–

Hino Motors, Ltd. (7205) Financial Results for the Fiscal Year Ending March 31, 2025

 

(Notes on Consolidated Statements of Income)

1. Extraordinary income

(Gain on sale of non-current assets)

Gain on sale of non-current assets originates mainly from the sale of part of land for a former Hino factory in Hino City, Tokyo, which took place on February 28, 2025 with the purpose of effectively utilizing management resources and elevating asset efficiency.

As a certain period of time will be required for demolishing the building, turning said land into a vacant lot, and relocating the factory to another site, we concluded an agreement for use and lease with the buyer, planning to keep using the land for a certain period after the sale until the above processes are finished and the land is handed over.

As this transaction falls under sale and leaseback transactions, we examined the price for land transfer, classification of the lease transaction and rental fee as well as the ratio of remaining risks to be borne by our company, etc. based on related accounting standards (ASBJ Guidance No. 16 “Guidance on Accounting Standard for Lease Transactions” and realization principle defined in principles of Accounting Standards) to check whether the sale has been concluded as of the purchase agreement date in terms of accounting. As a result, we judged that almost all risks and economic value pertaining to said land had been transferred to the buyer at the point of the sale, and thus recognize the disappearance of the relevant land and gain on sale of non-current assets. In step with this transaction, we posted a gain on sale of non-current assets of ¥33,676 million as an extraordinary income.

2. Extraordinary loss

(Impairment loss)

Our corporate group recorded impairment loss, mainly with regard to the following asset group.

Fiscal Year under Review (From April 1, 2024 to March 31, 2025)

Location: the U.S.

Purpose of use: Manufacturing facilities, etc.

Type: Mechanical devices and others

Impairment loss: ¥6,652 million

(Method for grouping assets)

Our company groups assets based mainly on business segments. Moreover, we group important idle assets individually. Assets of consolidated subsidiaries are grouped by each company in principle.

(Events leading up to impairment loss)

The profitability of Hino Motors Manufacturing U.S.A., our consolidated subsidiary, declined and signs of impairment were observed. As a result of examining future recoverability, we reduced book value to the recoverable amount and posted this reduction amount as impairment loss under the section of extraordinary loss. The recoverable amount was measured based on the net sale price, and the net sale price has been calculated based on the appraisal value of mechanical devices, etc.

(Loss related to North American certification)

Our company, our U.S. subsidiary and Canadian subsidiary were sued in the Superior Court of British Columbia, Canada, on October 19, 2023, and the same lawsuit was filed in the Superior Court of Quebec, Canada. However, on September 26, 2024, an agreement for the settlement between the plaintiffs and us was approved at the meeting of our board of directors. Through this settlement, an extraordinary loss of ¥5,885 million was posted.

As stated in the “Notice of Settlement between Hino Motors, Ltd. & its U.S. Subsidiary and U.S. Government Authorities concerning Engine Certification Issue” disclosed on January 16, 2025, our company and U.S. subsidiary reached a settlement with U.S. government authorities concerning the issue of emission certification testing and performance of engines in the U.S. market (hereinafter referred to as “the Settlement”).

Through this settlement, we agreed with the payment of criminal and civil penalties. In addition, after obtaining approval of the authorities in the civil settlement, we will implement measures for the engines in the market and a project for reducing environmental burdens. Furthermore, we will extend warranties for vehicles in the wake of the tentative settlement in the class action lawsuit filed in the U.S., the civil settlement with the U.S. authorities, and the tentative settlement in the class action lawsuit filed in Canada. In the fiscal year under review, ¥260,478 million was posted as an extraordinary loss for the above expenses.

The expenses for civil penalties and the project for reducing environmental burdens were included in provision for loss related to certification, and the expenses for market measures and warranty extension were included in provision for product warranties. Criminal penalties were included in accounts payable – other and long-term accounts payable – other, based on the amount written in the agreement for guilty plea, which was confirmed and became effective through the judgment at the federal district court in eastern Michigan in March 2025.

 

–16–

Hino Motors, Ltd. (7205) Financial Results for the Fiscal Year Ending March 31, 2025

 

(Legal settlement in Australia)

Our company and Australian subsidiaries were sued in the Superior Court of Victoria, Australia, on April 17, 2023. However, our board of directors approved the settlement between the plaintiffs and us on December 25, 2024. In step with this settlement, we posted an extraordinary loss of ¥8,700 million as the amount of the legal settlement in Australia.

(Regarding Shareholders’ Equity, etc.)

I Previous Fiscal Year (From April 1, 2023 to March 31, 2024)

1. Dividend payment amount

There is no related information.

2. Dividends with a record date in the current fiscal year but with an effective date after the end of the current fiscal year

There is no related information.

II Current Fiscal Year (From April 1, 2024 to March 31, 2025)

1. Dividend payment amount

There is no related information.

2. Dividends with a record date in the current fiscal year but with an effective date after the end of the current fiscal year

There is no related information.

 

–17–

Hino Motors, Ltd. (7205) Financial Results for the Fiscal Year Ending March 31, 2025

 

(Notes on Segment Information, etc.)

[Segment Information]

 

1.	Overview of Report Segment

The reporting segment for our company can acquire separate financial information for individual components of our company, and is the target of periodic evaluations so that the board of directors can determine allocation of management resources and evaluate results.

The main business of our company is production and sales of trucks and buses, as well as production on commission for Toyota Motor Corporation and other services such as development and planning of related products. Domestic areas are covered by our company and domestic subsidiaries and overseas areas are covered by local overseas subsidiaries, with strategies created for each market for the services and products handled.

Therefore, our company production and sales structure is composed of separate regional segments, with these segments reported as “Japan” and “Asia”.

 

2.

Method of calculating amounts for Sales, Profits, Losses, Assets and Other Categories for Each Reporting Segment Accounting methods for reported business segments are generally the same as those described in “important matters for preparing consolidated financial statements.” Intersegment revenues and transfers are based on prevailing market prices.

 

3.	Information on Amounts for Sales, Profits, Losses, Assets and Other Categories for Each Reporting Segment and Breakdown of Revenue

Previous Fiscal Year (From April 1, 2023 to March 31, 2024)

 

 

		(Millions of yen)
		Report Segment																Total				Adjusted Amount*2				Consolidated financial statements amount*3
		Japan				Asia				Total				Other*1
Net Sales
Trucks and buses			396,448				279,530				675,978				148,878				824,856				—				824,856
Vehicles for Toyota			71,969				236				72,206				—				72,206				—				72,206
Spare parts			77,450				34,330				111,780				50,922				162,702				—				162,702
Other			240,566				137,440				378,006				78,483				456,489				—				456,489
Sales to External Customers			786,434				451,537				1,237,972				278,283				1,516,255				—				1,516,255
Inter-Segment Sales and Transfers			240,047				9,832				249,879				1,294				251,174				-251,174				—
Total			1,026,482				461,369				1,487,852				279,577				1,767,429				-251,174				1,516,255
Segment Profits (Losses)			-15,640				31,901				16,260				-26,321				-10,060				1,956				-8,103
Segment Assets			1,052,198				338,416				1,390,615				166,884				1,557,499				-93,124				1,464,375
Other Categories
Depreciation and amortization			41,816				8,257				50,073				6,405				56,479				—				56,479
Investment in Equity			28,189				778				28,968				2,519				31,487				—				31,487
Method Affiliates Increase in Tangible and Intangible Fixed Assets			49,364				7,886				57,250				16,496				73,747				—				73,747

 

*1	The “other” section is the regions not included in the reporting segments, including North America and Oceania etc.

*2	The adjusted amount is listed as below.

 

(1)

The adjusted amount of segment profit (loss) of ¥ 1,956 million includes inter-segment eliminations and adjustments for inventory assets.

 

(2)

The adjusted amount of segment assets of ¥ -93,124 million includes inter-segment eliminations of debts and credits and

 

–18–