DENSO CORPORATION (the 'Company') announces that it has sold a part of its TOYOTA INDUSTRIES CORPORATION ('Toyota Industries') shareholding and entered into a share forward agreement for all of its remaining shares.

Reasons for Partial Sale of Shares and Execution of Share Forward Agreement

The Company announced in the 'DENSO Announces Cross-Shareholdings Reduction Policy' on November 29, 2023, its policy to reduce shares held for the purposes other than pure investment, including Toyota Industries.

In accordance with this reduction policy, the Company examined how to dispose of Toyota Industries shares, and decided to sell all of its Toyota Industries shareholdings through the transactions described below, which ensures a complete disposition of the Company's shareholdings while giving maximum consideration to the market impact of the sales on Toyota Industries' share price. Under the contracts described below, the Company will proceed with a phased sale to the counterparty banks and completely dispose of its Toyota Industries shares over two and a half years.

The Company will continue to maintain and strengthen its business relationship with Toyota Industries even after the completion of this share sale.

Impacts on financial results

The Company has adopted the International Financial Reporting Standards (IFRS), and the gain or loss from the sale of the Toyota Industries shares is recognized in Other Comprehensive Income (OCI) in the consolidated financial statements and has no impact on consolidated results.

Contact:

Tadashi Arai

Tel: +81-50-1738-6018)

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