Hino Motors : Notification on the reduction of deferred tax assets, differences between the full-year consolidated earnings forecast and results, and dividends from surplus（2P | 161.4 KB）

〔Translation〕

April 27, 2022

To Whom It May Concern

Company Name: Hino Motors, Ltd.

Representative: (Code Number: Contact Person:

Satoshi Ogiso, President

7205 TSE Prime, NSE Premier) Hiroshi Hashimoto

General Manager, Corporate Communications., Public Affairs Dept.

Phone: [phone]

Notification on the reduction of deferred tax assets, differences between the full-year consolidated earnings forecast and results, and dividends from surplus

Hino Motors Ltd. ("Hino") hereby announces as follows that we reduced deferred tax assets in the term ended March 2022 (April 1, 2021 to March 31, 2022) and there are differences between the consolidated earnings forecast for the term ended March 2022 (April 1, 2021 to March 31, 2022) announced on March 29, 2022 and the results disclosed today.

We also announce that Board of Directors of Hino, at its meeting held on April 27, 2022, resolved that the dividends from surplus with the record date being March 31, 2022 will not be paid.

• 1. Regarding the reduction of deferred tax assets

  We carefully discussed the realizability of deferred tax assets while considering the business performance trends in the current term and the future, reduced deferred tax assets, and posted 33,757 million yen as income taxes-deferred.

• 2. Differences between the full-year consolidated earnings forecast for the term ended March 2022 and the results

  (1) Differences between the full-year consolidated earnings forecast and the results (April 1, 2021 to March 31, 2022)

Net sales	Operating income	Ordinary income	Profit attributable to owners of parent	Net income per share
Previously announced forecast (A)	Million yen 1,420,000	Million yen 32,000	Million yen 34,000	Million yen -54,000	Yen -94.07
Results (B)	1,459,706	33,810	37,986	-84,732	-147.61
Difference (B－A)	39,706	1,810	3,986	-30,732	―
Percentage of Change (%)	2.8％	5.7％	11.7％	―	―
(Reference) Results for the previous fiscal year ended March 31, 2021	1,498,442	12,250	12,261	-7,489	-13.05

(2) Reason for the differences

Regarding the consolidated results for the term ended March 2022, loss attributable to owners of parent fell below the previously announced forecast, as we posted income taxes-deferred due to the reduction of deferred tax assets as mentioned in the above section 1.

3. Regarding dividends from surplus

(1) Detail of dividend

Amount to be proposed as year-end dividend for FY2022	Previous Dividend Forecast (On October 28, 2021)	Actual Results for FY2021
Record Date	March 31, 2022	Same as on the left	March 31, 2021
Dividend per Share (Yen)	0	7	7
Total Amount of Dividends (Million Yen)	―	―	4,019
Effective Date	―	―	June 7, 2021
Dividend Resource	―	―	Retained Earnings

(2) Contents of decision

Our basic dividend policy is to strive to achieve a consolidated payout ratio of 30% stably and continuously, while fortifying its financial standing and considering its business performance, new investments, etc. in each term.

However, for this term, since we recorded a net loss of ¥84,732 million, we have regrettably decided not to pay the term-end dividend.

(Reference) Details of the annual dividends

Dividends Per Share of Common Stock (Yen)
Record Date	End of the First Two Quarters	Year-end	Total
Dividends for FY 2022	10	0	10
Dividends for FY 2021	5	7	12