Notice of Settlement Regarding Litigation against TICO and U.S. Subsidiaries

Notice of Settlement Regarding Litigation against TICO and U.S. Subsidiaries

Toyota Industries Corporation, together with its U.S.-based subsidiaries, Toyota Material Handling North America, Inc. and Toyota Material Handling, Inc. (hereafter "TICO Group"), was named in a class-action lawsuit filed on September 22, 2024 (local time) in the United States District Court for the Northern District of California arising from a certification issue for forklift engines.

In the lawsuit, the plaintiffs sought damages and other compensation from the TICO Group. On October 31, 2025, TICO Board of Directors approved entering into a settlement agreement with the plaintiffs, which provides for a settlement payment and complimentary maintenance services. This settlement is subject to court approval before it becomes effective.

The anticipated settlement payment for the lawsuit, USD 299.5 million (equivalent to ¥44,589 million), has been recorded in the consolidated financial results for the second quarter of the fiscal year ending March 31, 2026.

In addition, investigations by the U.S. federal and California state authorities concerning engines for U.S. forklifts, as well as discussions with those authorities, are still ongoing. The Company will continue to address these matters diligently and will promptly disclose any developments requiring public announcement.