Toyota Motor Corporation (‘Toyota') and Aisin Seiki Co., Ltd. (‘Aisin') have agreed to increase Aisin's equity participation in Toyota's subsidiary, Toyota Autoparts Philippines, Inc. ("TAP"), from the current 34 percent to 61 percent and to make it Aisin's subsidiary. The purpose of this arrangement is to strengthen its competitiveness in the manual transmission ("MT") business. TAP will be renamed Toyota Aisin Philippines, Inc., and Aisin will take the lead in managing the new company's business operations.

In November 2014, Toyota and Aisin agreed to strengthen their competitiveness by consolidating the MT functions of Aisin AI Co., Ltd. ("Aisin AI"), a wholly owned subsidiary of Aisin, and those of Toyota, allowing more efficient allocation of resources. Research & Development and production of MTs for mass-produced vehicles in Japan were consolidated and transferred to Aisin AI before January 2017. In January 2016, Aisin made a partial equity investment in TAP as part of its overseas MT business and has since participated in the management of its business operations.

(Continued on the next page)