January 29, 2016
Toyota Motor Corporation
Daihatsu Motor Co., Ltd.

Toyota Motor Corporation (Toyota) and its subsidiary Daihatsu Motor Co., Ltd. (Daihatsu) have reached an agreement whereby Daihatsu will become a wholly-owned subsidiary of Toyota by way of a share exchange (expected to be completed in August 2016).

The purpose of the agreement is to develop of ever-better cars by adopting a unified strategy for the small car segment, under which both companies will be free to focus on their core competencies. Ultimately, this will help Daihatsu and Toyota to attain their joint goal of achieving sustainable growth.

Additionally, the aim of the share exchange is to enhance the value of both brands. Although Toyota and Daihatsu will engage in friendly competition and maintain separate management styles that capitalize on their respective capabilities, bringing the two together under a shared strategy will enable them to jointly overcome otherwise prohibitive obstacles in the future, including resource-intensive undertakings such as the development of next-generation technologies and entry into business areas with growth potential.

Explaining the decision, Toyota President Akio Toyoda said, “This is an opportunity for us both to stop feeling that we need to go it alone, and trust each other to take full advantage of our respective strengths. In other words, we can now focus on our core competencies. That, I believe, is the key to achieving and sustaining global competitiveness.”

Daihatsu President Masanori Mitsui commented, “I believe we have now found a course of action that will enable us to continue our growth for the next 100 years. We see this as the perfect opportunity to cement our relationship with Toyota, and, by doing so, to embark on a new period of growth, and to elevate the Daihatsu brand to a global standard.”

The key details of the agreement are as follows:

Objective

Under a joint strategy, Toyota and Daihatsu intend to combine their bases of operations in addition to sharing their respective areas of proficiency and technical expertise. This will leverage the advantages of both brands, allowing the development of attractive products that are competitive on a global basis.

Areas of strategic collaboration

a) Small cars

The differentiation between Toyota’s and Daihatsu’s brands will continue, and the product lineups of both will be optimized in accordance with customer preferences, with Daihatsu taking the lead in developing products offered within the small car lineups of both brands. At the same time, Daihatsu will continue to focus on developing vehicles aimed specifically at customers in the areas in which the brand already has a strong presence, while also honing its expertise and processes related to product planning and technological development for minivehicles.

b) Technology

Both companies will share development and deployment strategies for new technologies from the initial conceptual stages. Toyota’s focus will remain on technologies related to the environment, safety, user experience, and comfort, while Daihatsu will continue to leverage its aptitude for turning technologies into packages for vehicles, as well as developing cost- and fuel-efficient technologies. Daihatsu will also contribute to the development of next-generation technologies from the perspective of cost-efficiency and miniaturization. The company’s specialized car manufacturing expertise will be shared within the Toyota Group, which will contribute to further enhancing the cost competitiveness of larger vehicles.

c) Operations

Both companies will utilize each other’s bases of operations in emerging markets. Daihatsu will take the lead in enhancing efficiency and adaptability in development, procurement, and production processes.

Within Japan, Toyota’s sales expertise and infrastructure will be utilized by both companies to improve Daihatsu’s branding and profitability.

Outline of the share exchange

1. Timeline of the Share Exchange

Notes:
- Toyota will consummate the Share Exchange by means of a “simple share exchange” under Article 796, Paragraph 2 of the Companies Act, which does not require approval by shareholders at a shareholders’ meeting.
- The expected date of consummation of the Share Exchange (effective date) is subject to change by mutual agreement between Toyota and Daihatsu.

2. Details of Allotment in the Share Exchange

Note: 0.26 shares of common stock of Toyota will be allotted and delivered for each share of common stock of Daihatsu.

参考译文

2016年1月29日
丰田汽车公司
大发工业公司

丰田和大发两大品牌合作加强小型车业务

- 大发成为丰田全资子公司，专注国际化战略 -

丰田汽车公司（以下简称丰田,社长：丰田章男）及其子公司大发工业公司（以下简称大发，社长：三井正则）就通过股份交换使大发成为丰田的全资子公司（计划于2016年8月执行）达成一致。本次协议旨在实现丰田和大发的进一步可持续发展，在同一战略领导下对小型车业务进行择优和集中，进一步促进两大品牌“制造出更好的汽车”。

协议的主要内容如下：

1.目的

丰田和大发将在共同战略的领导下，通过融合两家公司的技术经验和业务基础，充分发挥两大品牌的特色，创造出富有魅力及国际竞争力的商品。

2.合作概要

＜小型车战略＞

・进一步区别丰田品牌和大发品牌，为各自的客户群体打造专属商品，扩充商品阵容。

・以大发为主体，进一步加强一直以来从当地客户的角度出发进行汽车制造和以轻型汽车为基础出发点的商品策划及技术研发的经验、过程，开发两大品牌在小型车领域的商品。

＜技术战略＞

・丰田和大发从初期构想阶段开始，共享技术战略。

・丰田负责环保、安全、放心、舒适等技术方面的技术研发，大发负责提高封装能力、低成本技术、低油耗技术并推进先进技术的低成本化和小型化。

・在丰田集团内部共享大发独有的汽车制造经验，提升高级车型的成本竞争力。

＜业务战略＞

・在新兴国家市场，通过有效利用各自的业务基础，以大发为主体，迅速而高效地推进研发、采购、生产等制造环节。

・日本国内业务方面，通过有效利用丰田的销售经验和基础设施，提高大发的品牌影响力和创收能力。

通过本次协议，丰田和大发今后将继续发挥自己的优势，在保持管理方面的独立性的同时，共享战略，相互扶持，齐心协力应对高度的技术革新和高速的业务发展等高难度课题，共同致力于提高双方的企业价值。

丰田章男社长表示，“双方将以开放的态度，相互信任相互依靠，全力提高各自擅长的领域，也就是所谓的‘择优和集中’，正是在全球化竞争中获胜的关键”。

大发的三井社长则表示，“我们成功描绘出了今后100年的发展道路。我们将通过进一步加强与丰田的关系，向大发今后的发展以及‘大发品牌迈向世界标准化’踏出新的一步”。

大发工业成为全资子公司的概要

（1）本次股份交换日程

（注1）丰田依据《日本公司法》第796条第2款的规定，计划将按照简易股份交换手续，在未获得股东大会批准的情况下，进行本次股份交换。

（注2）本次股份交换的计划实施日期（生效日期）可能会根据两家公司的协商结果进行调整。

（2）　本次股份交换的相关折算内容

（注）将大发普通股每股折算成丰田普通股0.26股进行交付。