日野自動車（7205） – Submission of a statement to the Ministry of Land, Infrastructure, Transport and Tourism and misconduct concerning the “N04C(Urea-SCR)” engine

To Whom It May Concern March 25, 2022 Company Name: Hino Motors, Ltd. Representative: Satoshi Ogiso, President, Member of the Board (Code Number: 7205 TSE, 1st Section, NSE, 1st Section) Contact Person: Hiroshi Hashimoto Operating Officer, Public Affairs Dept. Phone: (042) 586-5494 Submission of a statement to the Ministry of Land, Infrastructure, Transport and Tourism and misconduct concerning the “N04C (Urea-SCR)” light-duty engine Hino Motors, Ltd. submitted a statement during the hearing procedure conducted by the Ministry of Land, Infrastructure, Transport and Tourism regarding misconduct in the applications for certification of vehicle engines for the Japanese market. In addition, it was determined that there was misconduct concerning falsification of engine performance in the fuel consumption measurements in the certification tests for the “N04C (Urea-SCR)” light-duty engine (installed on minibuses), which was being investigated at the time of the announcement on March 4, 2022. Hino would like to sincerely apologize for any huge inconvenience caused to our customers and other stakeholders. 1. Contents of the statement Hino Motors, Ltd. submitted a statement to the Ministry of Land, Infrastructure, Transport and Tourism to the effect that the Company had no opinion to offer in relation to the facts that caused the adverse disposition scheduled to be rendered against the Company and other cases relating to the hearing. The details of the adverse disposition scheduled to be rendered against the Company by the Ministry of Land, Infrastructure, Transport and Tourism and the facts constituting the cause are as follows: Details of the adverse disposition Model subject to revocation of the homologation A05C-TFA, A05C-TFB Overview Revocation of the type approval of the device for the device to prevent the emission carbon of monoxide of the A05C medium-duty engine Facts constituting the cause of the adverse disposition tests relating Part (catalyst) replaced during the long-distance durability to exhaust emission performance, and even though there was no technical basis that the exhaust emission performance met the standards, it was rated as meeting the standards and the type approval was improperly acquired. 1/3 Revocation of the type approval for the common structure model equipped with the A05C medium-duty engine and the fuel consumption rating Revocation of the type approval the common structure model equipped with the A09C heavy-duty engine and the fuel consumption rating for Common name: Hino Ranger FC-DH0 Common names: Hino S’elega, Hino Profia FR-DH0, FW-DH0, FN-DH0, FH-DH0, PR-DH0, SH-DH0, FR-HH0, FW-HH0, RU-DH0 of Revocation type approval for the common structure model equipped with the E13C heavy-duty engine and the fuel consumption rating Common names: Hino S’elega, Hino Profia FR-DH0, FW-DH0, SH-DH0, SS-DH0, RU-DH0 type approval Improperly obtained through being equipped with a carbon monoxide emission prevention device that had type approval. improperly acquired data method through acquired an Test inappropriate (improper operation of the fuel flow meter) during the fuel consumption measurement tests, and even though there was no technical basis that the fuel economy performance met the standards, it was rated as meeting the standards, and the type approval was improperly acquired. an Test data (improper inappropriate operation of the fuel flow meter) during the fuel consumption measurement tests, and even though there was no technical basis that the fuel economy performance met the standards, it was rated as meeting the standards, and the type approval was improperly acquired. acquired through method * Taken from the Ministry of Land, Infrastructure, Transport and Tourism press release materials 2. “N04C (Urea-SCR)” light-duty engine (installed on minibuses) In relation to the “N04C (Urea-SCR)” light-duty engine installed on minibuses, at the time of the announcement on March 4, 2022, technical verification revealed that the actual fuel economy performance was less than the specification value, and therefore, we continued our investigation with the possibility of misconduct in mind. Based upon the judgment for the inspection by the Ministry of Land, Infrastructure, Transport and Tourism, Hino has determined that there was misconduct concerning falsification of engine performance in the fuel consumption measurement tests on the engines. [Details of the misconduct] Misconduct was confirmed in that, after becoming aware of the possibility that the fuel economy performance did not meet the standards, the tests were conducted under conditions that were advantageous for fuel consumption, such as commencing measurements of fuel consumption while the engine was idling before the fuel flow rate had stabilized, and that the best figures from the results of multiple measurements were adopted, during the fuel consumption measurement for the certification tests. In relation to future measures, as announced, after confirming the correct fuel economy specifications, we will continue to take necessary measures for in-use vehicles, respond to customers using such vehicle types, and deal with the tax incentives. New shipments of the minibus “Hino Liesse II,” which is equipped with the same engine, are not planned at present due to a model change. * The same engine is also installed in the Toyota “Coaster” minibus. (There are no new shipments at present due to a model change.) The small trucks “Hino Dutro” and “Toyota Dyna” are equipped with different models of light-duty engines and are not related to the misconduct that caused the adverse disposition. Hino will continue to carry out a comprehensive review of the engine certification procedures, and the Special Investigation Committee composed of outside experts will attempt to obtain a clearer picture 2/3 of the entire case and analyze the root cause(s). Hino is committed to making efforts to fundamentally prevent a recurrence and to rebuild a “compliance-first” corporate structure based on the proposals for recurrence prevention measures from the Committee in order to restore trust. Hino is currently investigating the impact of these matters on its earnings and will disclose any updates as appropriate in a timely manner. Related announcements March 4, 2022: Notice Regarding Misconduct concerning Engine Certification March 11, 2022: Establishment of the Special Investigation Committee END 3/3