Interim report
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Consolidated Financial Results for the Three Months Ended June 30 , 2026 ( Under IFRS ) English translation from the original Japanese - language document August 12 , 2026 Company name ARCHION Corporation Stock Listing : Tokyo Code Number 543A Representative ( Title ) Contact Point ( Title ) URL https://archion.co.jp/ Representative Director & CEO General Manager , Equity & IR Department ( Name ) Karl Deppen ( Name ) Takao Kemmochi Tel 03-4218-2150 Scheduled Date of Dividend Payment Start : Supplementary materials for financial results : Investor conference for the financial results : Yes Yes ( For Mass Media and Analysts ) ( Amounts are rounded down to the nearest one million yen ) 1. Consolidated financial results for the three months ended June 30 , 2026 ( from April 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated operating results ( cumulative ) Revenue Operating profit before bargain purchase gain Operating profit Profit before income taxes ( Year - on - year changes for the corresponding quarter , % ) Total Profit for the attributable to comprehensiv owners of the quarter Millions Millions Millions Millions parent Millions e income for the quarter % % % % % of yen of yen of yen ARCHION April June 2026 Comparative Information Mitsubishi Fuso 597,869 29,013 262,260 of yen 262,299 of yen Millions of yen % 251,455 256,853 213,793 4,983 4,983 5,380 4,483 6,649 ~ January March 2026 Supplementary Information Combined pro forma financial 523,083 21,960 21,960 25,238 18,223 information April June 2025 ARCHION April June 2026 ~ Comparative Information Mitsubishi Fuso ~ January March 2026 Supplementary Information Combined pro forma financial information April June 2025 Basic earnings per share Diluted earnings per share Yen Yen 91.22 2.58 6.61 Note 1 : Effective April 1 , 2026 , the Company completed a business integration under which the Company became the wholly owning parent company of Hino Motors and Mitsubishi Fuso . For accounting purposes , Mitsubishi Fuso was identified as the accounting acquirer in accordance with IFRS , and the Company's consolidated financial statements have been prepared as a continuation of Mitsubishi Fuso's consolidated financial statements . Accordingly , the comparative information for the previous period is presented based on the consolidated financial statements of Mitsubishi Fuso , which was determined as the accounting acquirer . In addition , Mitsubishi Fuso changed its statutory fiscal year - end , and accordingly , the comparative information for the previous period covers the three - month period from January 2026 to March 2026 . As the reporting period and the scope of consolidation differ significantly between the comparative information for the previous period and the current first quarter , there is no continuity between the two sets of figures , and a full comparison of the Group's consolidated operating results is not possible . Accordingly , year - on - year changes for the corresponding quarter have been omitted . In addition , to enhance comparability in terms of the reporting period and the scope of consolidation , combined pro forma financial information covering the period from April to June 2025 is presented as supplementary information .
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For details, please refer to “Treatment of Comparative Information for the Previous Consolidated Fiscal Year in Connection with the Business Combination (Reverse Acquisition)” below. Note 2: The supplementary information has not been audited or reviewed by the independent auditor. Total comprehensive income for the quarter has not been calculated for the supplementary information. Note 3: Operating profit before bargain purchase gain represents operating profit before recognition of the bargain purchase gain arising from the Business Integration. For details of the Business Integration, please refer to “Treatment of Comparative Information for the Previous Consolidated Fiscal Year in Connection with the Business Combination (Reverse Acquisition)” below. (2) Consolidated financial position Total assets Total equity Equity attributable to owners of the parent Equity attributable to owners of the parent to total assets ratio As of Millions of yen Millions of yen Millions of yen % ARCHION June 30, 2026 2,281,447 1,027,910 943,365 41.3 Comparative Information Mitsubishi Fuso March 31, 2026 720,214 298,304 293,729 41.0 Supplementary Information Combined pro forma financial information March 31, 2026 2,391,252 1,017,767 932,328 39.0 Note 1: The comparative information for the previous period is presented based on the consolidated financial statements of Mitsubishi Fuso, which was identified as the accounting acquirer. In addition, combined pro forma financial information for the fiscal year ended March 31, 2026 is presented as supplementary information. Please also refer to “Treatment of Comparative Information for the Previous Consolidated Fiscal Year in Connection with the Business Combination (Reverse Acquisition)” below. Note 2: The supplementary information has not been audited or reviewed by the independent auditor. 2. Cash dividends Annual dividend First quarter Second quarter Third quarter Year end Annual Yen Yen Yen Yen Yen Fiscal year ended March 31, 2026 - - - - - Fiscal year ending March 31, 2027 - Fiscal year ending March 31, 2027 (Forecast) 4.00 - 4.00 8.00 Note: Revisions to the forecast of cash dividends most recently announced: None 3. Consolidated financial forecast for the fiscal year ending March 31, 2027 (from April 1, 2026 to March 31, 2027) (Changes from the previous period, %) Revenue Operating profit before bargain purchase gain Operating profit Profit before income taxes Profit attributable to owners of the parent Millions of yen % Millions of yen % Millions of yen % Millions of yen % Millions of yen % Fiscal year ending March 31, 2027 2,425,000 - 110,000 - 343,246 - 343,246 - 303,246 - Basic earnings per share Yen Fiscal year ending March 31, 2027 110.01 Note 1: Revisions to the earnings forecasts most recently announced: Yes Note 2: Since the Company commenced the preparation of consolidated financial statements from the first quarter of the fiscal year ending March 31, 2027, year-on-year percentage changes are not presented.
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* Notes (1) Significant changes in the scope of consolidation during the period: Yes Newly included: 73 companies, including Hino Motors, Ltd. Excluded: 9 companies, including Minami Kanto Hino Motor Ltd. (2) Changes in accounting policies and changes in accounting estimates (i) Changes in accounting policies required by IFRS: None (ii) Changes in accounting policies due to other reasons: None (iii) Changes in accounting estimates: None (3) Number of issued shares ① Number of issued and outstanding shares at the period end (including treasury shares) As of June 30, 2026 2,756,582,628 shares As of March 31, 2026 1,736,000,310 shares ② Number of treasury shares at the period end As of June 30, 2026 247 shares As of March 31, 2026 - shares ③ Average number of shares (quarterly period-YTD) Three months ended June 30, 2026 2,756,582,569 shares Three months ended June 30, 2025 1,736,000,310 shares Note 1: The number of issued shares at the end of the first quarter of the fiscal year ending March 31, 2027 (including treasury shares) includes 175,512,774 Class A shares. In addition, the average number of shares during the first quarter of the fiscal year ending March 31, 2027 has been calculated including 175,512,774 Class A shares. Note 2: The number of issued shares at the end of the fiscal year ended March 31, 2026 represents the number of shares calculated by multiplying 5,600,001 shares, the number of issued shares of Mitsubishi Fuso as of March 31, 2026, by the share delivery ratio of 310 applied in the share delivery. In addition, the average number of shares during the first quarter of the fiscal year ended March 31, 2026 represents the number of shares calculated by multiplying 5,600,001 shares, the average number of shares of Mitsubishi Fuso during the first quarter of fiscal year ended March 31, 2026, by the share delivery ratio of 310 applied in the share delivery. Please also refer to the “Treatment of Comparative Information for the Previous Consolidated Fiscal Year in Connection with the Business Combination (Reverse Acquisition)” below and “2. Condensed Quarterly Consolidated Financial Statements and Notes—(5) Notes to the Condensed Quarterly Consolidated Financial Statements (Business Combination)” on page 26 of the attached materials. * Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: Yes (voluntary) * Proper use of earnings forecasts, and other special matters The forward-looking information, including financial forecasts, contained in this report is based on information currently available to the Company and certain assumptions deemed reasonable by management. These statements do not constitute a commitment by the Company to achieve the forecast results. Actual results may differ materially from the forecasts due to various factors.
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(Treatment of Comparative Information for the Previous Consolidated Fiscal Year in Connection with the Business Combination (Reverse Acquisition)) Hino Motors, Ltd. (“Hino Motors”), Mitsubishi Fuso Truck and Bus Corporation (“Mitsubishi Fuso”), Toyota Motor Corporation (“Toyota”) and Daimler Truck AG (“Daimler Truck”) entered into a business integration agreement on June 10, 2025, and completed a business integration on April 1, 2026, under which the Company became the wholly owning parent company of Hino Motors and Mitsubishi Fuso (the “Business Integration”). The Business Integration was effected through a share exchange whereby the Company became the wholly owning parent company and Hino Motors became the wholly owned subsidiary, and a share delivery whereby the Company became the parent company and Mitsubishi Fuso became the subsidiary. However, the Company’s consolidated financial statements have been prepared by treating Mitsubishi Fuso, the accounting acquirer, as the continuing entity and by succeeding to Mitsubishi Fuso’s consolidated financial statements. In addition, Mitsubishi Fuso changed its statutory fiscal year-end, and accordingly its immediately preceding consolidated fiscal year covered the period from January 1, 2026 to March 31, 2026. In line with IFRS requirements, the comparative information for the previous period is based on Mitsubishi Fuso’s consolidated financial information for the same period. On the other hand, to enhance comparability for investment decision-making purposes, this document, excluding “2. Condensed Quarterly Consolidated Financial Statements and Notes,” presents adjusted combined pro forma financial information as reference information. For operating results, the reference information covers the period from April 1 to June 30, 2025, assuming that Hino Motors and Mitsubishi Fuso had been consolidated from the beginning of FY2026, and is used for year-on-year analysis. For financial position, the reference information presents adjusted combined pro forma financial information as of March 31, 2026, assuming that the Business Integration had occurred at the end of March 2026, and is used for comparison with the previous fiscal year-end. The combined pro forma financial information has not been audited or reviewed by the independent auditor.
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Comparison of Consolidated Operating Results * Combined pro forma P/L presented as supplementary information has been calculated assuming that Hino Motors and Mitsubishi Fuso had been consolidated from the beginning of the fiscal year ended March 31, 2026, with adjustments made for the transfer of the Hamura Plant and the transfer of control of Hino Motors’ domestic sales subsidiaries, and has not been audited or reviewed by the independent auditor. Comparison of Consolidated Financial Position * Combined pro forma B/S presented as supplementary information has been calculated assuming that the Business Integration of Hino Motors and Mitsubishi Fuso had taken place on March 31, 2026, with adjustments made for the transfer of the Hamura Plant and the transfer of control of Hino Motors’ domestic sales subsidiaries, and has not been audited or reviewed by the independent auditor.
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- 1 - Appendix Table of Contents of the appendix 1. Overview of Operating Results, Financial Position and Other Matters…………………………………………………. P. 2 (1) Information on Consolidated Operating Results……………………………………………………………………………………………………….. P. 2 (2) Information on Consolidated Financial Position………………………………………………………………………………………………………… P. 2 (3) Information on Forecasts of Consolidated Financial Results……………………………………………………………………………………… P. 2 2. Condensed Quarterly Consolidated Financial Statements and Notes .................................................................................... P. 3 (1) Condensed Quarterly Consolidated Statement of Financial Position ........................................................................................................................ P. 3 (2) Condensed Quarterly Consolidated Statements of Income and Condensed Quarterly Consolidated Statements of Comprehensive Income… P. 5 [Condensed Quarterly Consolidated Statements of Income] ......................................................................................................... P. 5 [Condensed Quarterly Consolidated Statements of Comprehensive Income] ............................................................................... P. 6 (3) Condensed Quarterly Consolidated Statement of Changes in Equity.............................................................................. P. 7 (4) Condensed Quarterly Consolidated Statement of Cash Flows ........................................................................................ P. 8 (5) Notes to Quarterly Consolidated Financial Statements ................................................................................................... P. 10 (Notes on Going Concern Assumption) ...................................................................................................................... P. 10 (Reporting Entity) ......................................................................................................................................................... P. 10 (Basis of Preparation) ................................................................................................................................................... P. 10 (Material Accounting Policies) ..................................................................................................................................... P. 11 (Segment Information) .................................................................................................................................................. P. 20 (Business Combination) …............................................................................................................................................ P. 21 (Significant Subsequent Events) ................................................................................................................................... P. 23 (Additional Information) ............................................................................................................................................... P. 24 3. Supplementary Information .................................................................................................................................................. P. 26 (1) Actual Sales (Consolidated) ............................................................................................................................................ P. 26 (2) Comparison with combined pro forma financial information P. 27
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- 2 - 1. Overview of Operating Results, Financial Position and Other Matters As described in “Treatment of Comparative Information for the Previous Consolidated Fiscal Year in Connection with the Business Combination (Reverse Acquisition)” in order to enhance period-to-period comparability for investment decision- making purposes, the discussion of operating results for the current quarter is compared with the combined pro forma financial information for the period from April 1, 2025 to June 30, 2025, which was prepared assuming that Hino Motors and Mitsubishi Fuso had been consolidated from the beginning of the fiscal year ended March 31, 2026, with certain adjustments made. In addition, the discussion of financial position for the current quarter is compared with combined pro forma financial information as of March 31, 2026, which was prepared assuming that the business integration had been completed on March 31, 2026. The combined pro forma financial information has not been audited or reviewed by the independent auditor. (1) Information on Consolidated Operating Results During the current first quarter, domestic truck and bus sales increased by 4 thousand units (+29%) year on year to 20 thousand units, driven by improvements in product supply capacity and other factors. In overseas truck and bus markets, although sales declined significantly in the Middle East reflecting regional instability, unit sales increased significantly in Southeast Asia, primarily due to government orders in Indonesia, resulting in total sales of 40 thousand units, an increase of 3 thousand units (+8%) year on year. On a global basis, total sales reached 60 thousand units, an increase of 7 thousand units (+14%) compared with the same period of the previous fiscal year. As described above, revenue from new vehicle sales increased by 55.0 billion yen (+18%) year on year to 361.7 billion yen, primarily driven by higher unit sales. In addition, revenue from parts and services amounted to 128.6 billion yen (+6%), and revenue from complementary businesses amounted to 107.5 billion yen (+14%). As a result, revenue during the current first quarter was 597.9 billion yen, an increase of 74.8 billion yen (+14%) year on year. In terms of profit and loss, despite increases in raw material prices, other manufacturing costs, and logistics expenses, operating profit before bargain purchase gain increased by 7.1 billion yen (+32%) year on year to 29.0 billion yen, driven by higher revenue. Operating profit increased by 240.3 billion yen (+1,094%) year on year to 262.3 billion yen, driven by the recognition of a preliminary bargain purchase gain of 233.2 billion yen arising from the business integration. In addition, profit for the quarter attributable to owners of the parent increased by 233.2 billion yen (+1,280%) year on year to 251.5 billion yen. (2) Information on Consolidated Financial Position Total assets at the end of the first quarter decreased by 109.8 billion yen from the end of the previous consolidated fiscal year to 2,281.4 billion yen. This was mainly attributable to a decrease of 129.7 billion yen in assets held for sale as a result of the sale of Hino Motors’ sales subsidiaries. Liabilities decreased by 119.9 billion yen from the end of the previous consolidated fiscal year to 1,253.5 billion yen. This was mainly attributable to a decrease of 40.2 billion yen in liabilities directly associated with assets held for sale and a decrease of 69.0 billion yen in trade and other payables. Total equity increased by 10.1 billion yen from the end of the previous consolidated fiscal year to 1,027.9 billion yen. This was mainly attributable to the recognition of profit for the quarter attributable to owners of the parent. (3) Information on Forecasts of Consolidated Financial Results Regarding the revision of the earnings forecast, please refer to the “Notice Concerning the Recognition of Bargain Purchase Gain and the Revision of the Full-Year Financial Forecast for the Fiscal Year Ending March 31, 2027,” announced today (August 12, 2026).
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- 3 - 2. [Condensed Quarterly Consolidated Financial Statements and Notes] (1) [Condensed Quarterly Consolidated Statement of Financial Position] (Millions of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and cash equivalents 47,293 333,193 Trade and other receivables 124,092 390,134 Other financial assets 900 28,614 Inventories 207,787 442,032 Income taxes receivable 643 6,414 Other current assets 14,966 34,392 Subtotal 395,685 1,234,782 Assets held for sale 19,822 22,308 Total current assets 415,508 1,257,091 Non-current assets Property, plant and equipment 152,202 558,091 Right-of-use assets 63,437 110,492 Goodwill and intangible assets 27,055 59,280 Investment property 214 55,914 Investments accounted for using the equity method 22,986 49,128 Other financial assets (non-current) 23,224 101,258 Deferred tax assets 9,616 79,982 Other non-current assets 5,967 10,207 Total non-current assets 304,705 1,024,356 Total assets 720,214 2,281,447
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- 4 - (Millions of yen) As of March 31, 2026 As of June 30, 2026 Liabilities and equity Liabilities Current liabilities Trade and other payables 117,724 288,539 Bonds and borrowings (current) 110,002 288,275 Lease liabilities (current) 11,059 17,958 Other financial liabilities (current) 19,087 43,165 Income taxes payable 3,803 54,675 Provisions (current) 16,998 78,973 Other current liabilities 51,709 168,102 Subtotal 330,385 939,690 Liabilities directly associated with assets held for sale 8,044 8,611 Total current liabilities 338,429 948,302 Non-current liabilities Bonds and borrowings (non-current) - 20,267 Lease liabilities (non-current) 56,620 91,646 Liabilities for retirement benefits 294 38,912 Provisions (non-current) 8,550 99,803 Other financial liabilities 7,161 29,767 Deferred tax liabilities - 11,046 Other non-current liabilities 10,854 13,790 Total non-current liabilities 83,480 305,234 Total liabilities 421,909 1,253,536 Equity Share capital 10,000 10,000 Capital surplus 42,833 437,645 Retained earnings 230,162 483,335 Treasury shares - △0 Other components of equity 10,733 12,384 Equity attributable to owners of the parent 293,729 943,365 Non-controlling interests 4,575 84,545 Total equity 298,304 1,027,910 Total liabilities and equity 720,214 2,281,447 (Note) The consolidated statement of financial position for the previous consolidated fiscal year of Mitsubishi Fuso, which was identified as the accounting acquirer in the Business Integration, is presented as comparative information. Accordingly, such comparative information is not fully comparable with the Group’s consolidated statement of financial position as of the end of the current first quarter. For the basis of preparation of the comparative information, please refer to “(5) Notes to the Condensed Quarterly Consolidated Financial Statements (Basis of Preparation).”
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- 5 - (2) [Condensed Quarterly Consolidated Statements of Income and Condensed Quarterly Consolidated Statements of Comprehensive Income] [Condensed Quarterly Consolidated Statements of Income] (Millions of yen) Three months ended March 31, 2026 Three months ended June 30, 2026 Revenue 213,793 597,869 Cost of sales 175,251 503,506 Gross profit 38,541 94,362 Selling, general and administrative expenses 35,497 70,827 Other income 2,716 7,403 Other expenses 776 1,925 Operating profit before bargain purchase gain 4,983 29,013 Bargain purchase gain - 233,246 Operating profit 4,983 262,260 Finance income 948 1,374 Finance costs 1,370 2,772 Share of profit of investments accounted for using the equity method 819 1,436 Profit before income taxes for the quarter 5,380 262,299 Income tax expense (193) 7,849 Profit for the quarter 5,574 254,449 Profit for the quarter attributable to Owners of the parent 4,483 251,455 Non-controlling interests 1,090 2,994 Earnings per share for the quarter Basic earnings per share for the quarter (yen) 2.58 91.22 (Note) Comparative information has been derived from the consolidated statement of profit or loss of Mitsubishi Fuso, which was identified as the accounting acquirer in the business integration. Accordingly, such comparative information is not fully comparable with the consolidated operating results of the Group for the current first-quarter cumulative period. For the basis on which the comparative information has been prepared, please refer to “(5) Notes to Quarterly Consolidated Financial Statements (Basis of Preparation).” The calculation of bargain purchase gain has been preliminary based on information currently available, as the allocation of the acquisition cost had not been completed as of the end of the current first-quarter consolidated accounting period.
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- 6 - [Condensed Quarterly Consolidated Statements of Comprehensive Income] (Millions of yen) Three months ended March 31, 2026 Three months ended June 30, 2026 Profit for the quarter 5,574 254,449 Other comprehensive income Items that will not be reclassified to profit or loss Remeasurements of defined benefit liabilities (assets) (28) 13 Equity financial assets measured at fair value through other comprehensive income 1,009 4,943 Share of other comprehensive income of entities accounted for using the equity method 104 (1,025) Total items that will not be reclassified to profit or loss 1,085 3,931 Items that may be reclassified to profit or loss Effective portion of cash flow hedges - 119 Exchange differences on translation of foreign operations (13) (1,363) Share of other comprehensive income of entities accounted for using the equity method 4 (283) Total items that may be reclassified to profit or loss (9) (1,527) Total other comprehensive income, net of tax 1,075 2,403 Total comprehensive income for the quarter 6,649 256,853 Total comprehensive income attributable to Owners of the parent 5,545 253,736 Non-controlling interests 1,104 3,117 (Note) Comparative information has been derived from the consolidated statement of comprehensive income of Mitsubishi Fuso, which was identified as the accounting acquirer in the business integration. Accordingly, such comparative information is not fully comparable with the consolidated comprehensive income of the Group for the current first-quarter cumulative period. For the basis on which the comparative information has been prepared, please refer to “(5) Notes to Quarterly Consolidated Financial Statements (Basis of Preparation).”
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- 7 - (3) [Condensed Quarterly Consolidated Statement of Changes in Equity] Three months ended March 31, 2026 (Millions of yen) Share capital Capital surplus Retained earnings Treasury shares Other components of equity Total equity attributable to owners of the parent Non- controlling interests Total equity Balance as of January 1, 2026 10,000 42,833 249,386 - 9,651 311,871 3,471 315,342 Profit for the quarter - - 4,483 - - 4,483 1,090 5,574 Other comprehensive income - - - - 1,061 1,061 13 1,075 Total comprehensive income for the quarter - - 4,483 - 1,061 5,545 1,104 6,649 Dividends paid - - (23,688) - - (23,688) - (23,688) Other - - - - - - - - Transfer from other components of equity to retained earnings - - (19) - 19 - - - Total transactions with owners - - (23,707) - 19 (23,688) - (23,688) Balance as of March 31, 2026 10,000 42,833 230,162 - 10,733 293,729 4,575 298,304 Three months ended June 30, 2026 (Millions of yen) Share capital Capital surplus Retained earnings Treasury shares Other components of equity Total equity attributable to owners of the parent Non- controlling interests Total equity Balance as of April 1, 2026 10,000 42,833 230,162 - 10,733 293,729 4,575 298,304 Profit for the quarter - - 251,455 - - 251,455 2,994 254,449 Other comprehensive income - - - - 2,280 2,280 123 2,403 Total comprehensive income for the quarter - - 251,455 - 2,280 253,736 3,117 256,853 Dividends paid - - - - - - (2,633) (2,633) Acquisition of treasury shares - - - (0) - (0) - (0) Effects of business combination - 394,965 - - - 394,965 82,677 477,642 Other - (153) (53) - 1,141 934 (3,191) (2,256) Transfer from other components of equity to retained earnings - - 1,771 - (1,771) - - - Total transactions with owners - 394,812 1,717 (0) (629) 395,900 76,852 472,752 Balance as of June 30, 2026 10,000 437,645 483,335 (0) 12,384 943,365 84,545 1,027,910 (Note) The consolidated statement of financial position for the previous consolidated fiscal year of Mitsubishi Fuso, which was identified as the accounting acquirer in the Business Integration, is presented as comparative information. Accordingly, such comparative information is not fully comparable with the Group’s consolidated statement of financial position as of the end of the current first quarter. For the basis of preparation of the comparative information, please refer to “(5) Notes to the Condensed Quarterly Consolidated Financial Statements (Basis of Preparation).”
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- 8 - (4) [Condensed Quarterly Consolidated Statement of Cash Flows] (Millions of yen) Three months ended March 31, 2026 Three months ended June 30, 2026 Cash flows from operating activities Profit before income taxes for the quarter 5,380 262,299 Depreciation and amortization 8,981 23,715 Bargain purchase gain - (233,246) Finance income and finance costs 907 406 Share of profit or loss of investments accounted for using the equity method (negative indicates profit) (819) (1,436) Loss or gain on disposal or sale of fixed assets (negative indicates gain) 13 (2,893) Changes in trade and other receivables (negative indicates increase) 523 24,336 Changes in inventories (negative indicates increase) (13,470) 1,253 Changes in trade and other payables (negative indicates decrease) (17,339) (69,788) Changes in retirement benefit assets and liabilities (138) 89 Changes in provisions (negative indicates decrease) 983 (4,272) Other (operating activities) 1,740 1,793 Subtotal (13,238) 2,257 Interest and dividends received 95 1,497 Interest paid (532) (2,544) Income taxes paid (7,026) (5,647) Cash flows from operating activities (20,701) (4,436) Cash flows from investing activities Proceeds from withdrawal of time deposits - 1,302 Payments for acquisition of property, plant and equipment (924) (17,557) Proceeds from sale of property, plant and equipment - 7,399 Payments for acquisition of intangible assets (248) (2,475) Proceeds from obtaining control of subsidiaries - 276,231 Proceeds from loss of control of subsidiaries - 17,356 Net changes in short-term loans receivable (negative indicates increase) 1,296 14,740 Payments for acquisition of other financial assets (2,920) (143) Other (investing activities) 3,958 (3,104) Cash flows from investing activities 1,159 293,748 Cash flows from financing activities Net changes in short-term borrowings (negative indicates decrease) 73,675 (3,949) Proceeds from long-term borrowings - 2,655 Repayments of long-term borrowings - (1,960) Repayments of lease liabilities (2,812) (5,855) Dividends paid (23,169) - Dividends paid to non-controlling interests - (2,633) Other (financing activities) 74 (70) Cash flows from financing activities 47,767 (11,814)
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- 9 - Effect of exchange rate changes on cash and cash equivalents 995 554 Net increase or decrease in cash and cash equivalents (negative indicates decrease) 29,221 278,052 Cash and cash equivalents at beginning of period 18,071 47,293 Increase or decrease in cash and cash equivalents included in assets held for sale (negative indicates decrease) - 7,847 Cash and cash equivalents at end of quarter 47,293 333,193 (Note) Comparative information has been derived from the consolidated statement of cash flows of Mitsubishi Fuso, which was identified as the accounting acquirer in the business integration. Accordingly, such comparative information is not fully comparable with the condensed quarterly consolidated statement of cash flows of the Group for the current first-quarter cumulative period. For the basis on which the comparative information has been prepared, please refer to “(5) Notes to the Condensed Quarterly Consolidated Financial Statements (Basis of Preparation).”
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- 10 - (5) Notes to Quarterly Consolidated Financial Statements (Notes on Going Concern Assumption) Not applicable. (Reporting Entity) ARCHION Corporation (the “Company”) is a company domiciled in Japan. Its registered head office and principal place of business are located in Shinagawa-ku, Tokyo. The condensed quarterly consolidated financial statements comprise the Company and its subsidiaries (collectively, the “Group”), as well as the Group’s interests in associates and joint operations. The Group’s principal business activities include the development, manufacture and sale of heavy-duty and medium-duty vehicles, light-duty vehicles, engines, components, and related parts and services. (Basis of Preparation) (1) Applicable Financial Reporting Framework The Group’s condensed quarterly consolidated financial statements have been prepared in accordance with the Tokyo Stock Exchange’s Standards for Preparation of Quarterly Financial Statements. Pursuant to Article 5, Paragraph 2 of the Standards, the condensed quarterly consolidated financial statements have been prepared in accordance with International Accounting Standard 34, “Interim Financial Reporting” (“IAS 34”). However, pursuant to Article 5, Paragraph 5 of the Standards, certain disclosures and notes required by IAS 34 have been omitted. (2) Basis of Measurement The Group’s condensed quarterly consolidated financial statements have been prepared on the historical cost basis, except for certain assets and liabilities, as described in the section “Material Accounting Policies.” (3) Functional Currency and Presentation Currency The Group’s condensed quarterly consolidated financial statements are presented in Japanese yen, which is the Company’s functional currency. All financial information presented in Japanese yen has been rounded down to the nearest million yen. (4) Change in Fiscal Year-End Mitsubishi Fuso and its subsidiaries whose fiscal year-end was other than March 31 changed their fiscal year-end to March 31 in the previous fiscal year. As a result of this change, the previous consolidated fiscal year covered the period from January 1, 2026 to March 31, 2026, while the current first-quarter consolidated cumulative period covers the period from April 1, 2026 to June 30, 2026. Accordingly, the results for the current period are not fully comparable with those for the previous consolidated fiscal year. (5) Basis of Comparative Information Hino Motors, Mitsubishi Fuso, Toyota and Daimler Truck entered into a business integration agreement on June 10, 2025, and completed a business integration on April 1, 2026, under which the Company became the wholly owning parent company of Hino Motors and Mitsubishi Fuso (the “Business Integration”). The Business Integration was effected through a share exchange whereby the Company became the wholly owning parent company and Hino Motors became the wholly owned subsidiary, and a share delivery whereby the Company became the parent company and Mitsubishi Fuso became the subsidiary. However, the Company’s consolidated financial statements have been prepared as a continuation of the consolidated financial statements of Mitsubishi Fuso, which was determined to be the accounting acquirer. In addition, Mitsubishi Fuso changed its statutory fiscal year-end, and its immediately preceding consolidated fiscal year covered the period from January 1, 2026 to March 31, 2026. In line with the IFRS requirements, the comparative information presented in the Condensed Quarterly Consolidated Statement of Financial Position, Condensed Quarterly Consolidated Statement of Profit or Loss, Condensed Quarterly Consolidated Statement of Comprehensive Income, Condensed Quarterly Consolidated Statement of Changes in Equity, and Condensed Quarterly Consolidated Statement of Cash Flows, and the Notes to the Condensed Quarterly Consolidated Financial Statements relates to Mitsubishi Fuso’s immediately preceding consolidated fiscal year from January 1, 2026 to March 31, 2026.
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- 11 - (Material Accounting Policies) (1) Basis of Consolidation ①Subsidiaries Subsidiaries are entities controlled by the Group. Control exists when the Group has power over an investee, is exposed, or has rights, to variable returns from its involvement with the investee, and has the ability to affect those returns through its power over the investee. The financial statements of subsidiaries are included in the consolidated financial statements from the date on which the Group obtains control until the date on which it loses control. If control continues after the disposal of a portion of the Group’s interest in a subsidiary, changes in the Group’s interest are accounted for as equity transactions, and the difference between the adjustment to non-controlling interests and the fair value of consideration is recognized directly in equity as equity attributable to owners of the parent. When control is lost, gains or losses arising from the loss of control are recognized in profit or loss. If an interest in the former subsidiary is retained, that interest is measured at fair value on the date control is lost. In preparing the consolidated financial statements, balances of receivables and payables and transactions within the Group, as well as unrealized gains and losses arising from transactions within the Group, are eliminated. ② Associates Associates are entities over which the Group has significant influence over financial and operating policies but does not have control or joint control. Investments in associates are accounted for using the equity method. Investments in associates are recognized at acquisition cost, including transaction costs. The Company’s investment includes goodwill recognized at acquisition. The Group’s share of profit or loss and other comprehensive income of associates from the date significant influence is obtained until the date significant influence is lost is recognized as changes in the carrying amount of investments in associates. The accounting policies of entities accounted for using the equity method are adjusted as necessary to conform to the accounting policies applied by the Group. The consolidated financial statements include investments in entities accounted for using the equity method with fiscal year-ends different from that of the Company, when it is practically impossible to align their fiscal year-ends with that of the Company due to relationships with other shareholders and other factors. All differences between the fiscal year-ends of such entities and that of the Company are within three months, and adjustments are made for the effects of significant transactions or events occurring between the fiscal year-end of the entities accounted for using the equity method and the fiscal year-end of the Company. If the Group’s share of losses exceeds its investment in an entity accounted for using the equity method, the carrying amount of the investment is reduced to zero, and no further losses are recognized unless the Group has incurred obligations or made payments on behalf of the investee. ③ Joint Operations A joint operation is an operation in which the parties that have joint control have substantive rights to the assets and obligations for the liabilities related to the joint arrangement. When the Group has an interest in a joint operation, it recognizes only its share of the assets and liabilities arising from the jointly controlled operating activities in relation to the investment in the joint operation. (2) Business Combination The Group accounts for transactions that meet the definition of a business combination (and therefore exclude the acquisition of assets or a group of assets that does not constitute a business) using the acquisition method. Non-controlling interests are initially measured at the proportionate share of the acquiree’s identifiable net assets at the acquisition date. When the aggregate of the fair value of the consideration transferred, the amount of any non-controlling interest in the acquiree and, in a business combination achieved in stages, the acquisition-date fair value of the acquirer’s previously held equity interest in the acquiree exceeds the net amount of the identifiable assets acquired and liabilities assumed at the acquisition date, the excess is recognized as goodwill. Conversely, if the aggregate amount of such consideration is less than the net amount of the identifiable assets acquired and liabilities assumed at the acquisition date, the difference is recognized in profit or loss as a gain. Acquisition-related costs incurred in connection with a business combination are expensed as incurred, except for costs to issue debt instruments and equity instruments. If the initial accounting for a business combination is incomplete by the end of the consolidated fiscal year in which a business combination occurs, the items for which the accounting is incomplete are reported at provisional amounts. If, during the period in which information is deemed to have affected the measurement of the amounts recognized (the “measurement period”), information is obtained about facts and circumstances that existed as of the acquisition date and that, if known, would have
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- 12 - affected the measurement of the amounts recognized as of that date, the provisional amounts recognized at the acquisition date are retrospectively adjusted to reflect that information. This newly obtained information may result in the additional recognition of assets and liabilities. The measurement period is a maximum of one year. (3) Foreign Currency Translation 1) Translation of foreign currency transactions Foreign currency transactions are translated into the functional currency of each group entity using the exchange rate at the date of the transaction. Foreign currency monetary assets and liabilities are translated into the functional currency using the exchange rate at the reporting date. Non-monetary assets and liabilities measured at fair value in a foreign currency are translated into the functional currency using the exchange rate at the date on which the fair value is measured. Non-monetary items measured based on historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Foreign exchange differences are generally recognized in profit or loss and presented as finance income or finance costs. However, foreign exchange differences arising from the translation of the following items are recognized in other comprehensive income: - Investments in equity financial assets designated as investments in equity instruments measured at fair value through other comprehensive income - Qualifying cash flow hedges, to the extent the hedge is effective 2) Translation of foreign operations The consolidated financial statements are presented in Japanese yen, which is the functional currency of the parent company and the presentation currency of the consolidated financial statements. To present the consolidated financial statements, assets and liabilities of foreign operations are translated into Japanese yen using the exchange rate at the closing date, and income and expenses are translated using average rates for the period. When translation differences arise, they are recognized in other comprehensive income as “exchange differences on translation of foreign operations,” and the cumulative amount is classified in equity as “exchange differences on translation of foreign operations” (other components of equity). When part or all of a foreign operation is disposed of and control, significant influence or joint control is lost, the cumulative amount of the exchange differences related to that foreign operation is reclassified to profit or loss as part of the gain or loss on disposal. When the Group partially disposes of an interest in a subsidiary but retains control, an appropriate portion of the cumulative amount is reallocated to non-controlling interests. When the Group partially disposes of an associate while retaining significant influence, an appropriate portion of the cumulative amount is reclassified to profit or loss. Goodwill and fair value adjustments arising from the acquisition of a foreign operation are retranslated as assets and liabilities of that operation at the end of the reporting period, and the translation differences are classified as “other components of equity.” (4) Financial Instruments 1) Financial assets excluding derivatives (i) Initial recognition and measurement At initial recognition, financial assets are classified, based on both the business model for managing the financial assets and the contractual cash flow characteristics of the financial assets, as financial assets measured at amortized cost, financial assets measured at fair value through profit or loss, or financial assets measured at fair value through other comprehensive income. The Group recognizes financial assets on the date when the Group becomes a party to the contractual provisions of the instrument. (a) Financial assets measured at amortized cost Financial assets that meet both of the following conditions are classified as financial assets measured at amortized cost: The asset is held under a business model whose objective is to hold assets in order to collect contractual cash flows. The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal outstanding amount. Financial assets measured at amortized cost are measured at initial recognition at fair value plus transaction costs directly attributable to their acquisition. However, trade receivables that do not contain a significant financing component are measured at the amount calculated by applying IFRS 15. (b) Financial assets measured at fair value through profit or loss Financial assets other than financial assets measured at amortized cost are classified as financial assets measured at fair value. Among financial assets measured at fair value, financial assets other than those classified as financial assets measured at fair
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- 13 - value through other comprehensive income are classified as financial assets measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss include financial assets held for trading. Financial assets measured at fair value through profit or loss are measured at fair value at initial recognition, and transaction costs directly attributable to their acquisition are recognized in profit or loss as incurred. (c) Financial assets measured at fair value through other comprehensive income For investments in equity instruments that are not held for trading, an irrevocable election is permitted at initial recognition to present subsequent changes in fair value in other comprehensive income, and the Group makes this designation for each financial instrument and classifies such instruments as equity financial instruments measured at fair value through other comprehensive income. Equity financial instruments measured at fair value through other comprehensive income are measured at initial recognition at fair value plus transaction costs directly attributable to their acquisition. Dividends are recognized in profit or loss unless the dividends clearly represent a recovery of part of the cost of the investment. (ii) Subsequent measurement After initial recognition, financial assets are measured as follows according to their classification. (a) Financial assets measured at amortized cost They are measured at amortized cost using the effective interest method, and interest is recognized in profit or loss as “finance income.” Impairment losses are deducted from the gross carrying amount to which the effective interest method has been applied. (b) Financial assets measured at fair value For equity financial instruments for which the Group has elected designation as financial assets measured at fair value through other comprehensive income, changes in fair value are recognized in other comprehensive income, and cumulative gains or losses are transferred to retained earnings when recognition is discontinued (or when fair value has declined significantly). For assets other than those described above, changes in fair value are recognized in profit or loss. (iii) Derecognition A financial asset is derecognized when the contractual rights to the cash flows from the financial asset expire, or when the contractual rights to receive the cash flows from the financial asset are transferred and substantially all the risks and rewards of ownership of the financial asset have been transferred. 2) Impairment of financial assets The Group recognizes loss allowances for expected credit losses on the following financial instruments: Financial assets measured at amortized cost Lease receivables The Group measures loss allowances at an amount equal to lifetime expected credit losses. However, for the following items, the Group measures loss allowances at an amount equal to 12-month expected credit losses: Debt securities determined to have low credit risk at the reporting date Financial assets other than the above for which credit risk (that is, the risk of default occurring over the expected remaining life of the financial instrument) has not increased significantly since initial recognition Notwithstanding the above, trade receivables are measured at an amount equal to lifetime expected credit losses. In addition to trade receivables and contract assets, the Group measures loss allowances for trade receivables and contract assets that include a significant financing component and for lease receivables at an amount equal to lifetime expected credit losses. Lifetime expected credit losses described above are expected credit losses that result from all possible default events over the expected remaining life of a financial instrument. Twelve-month expected credit losses are expected credit losses that result from default events that are possible within 12 months after the reporting date. When determining whether the credit risk of a financial instrument has increased significantly since initial recognition and when estimating expected credit losses, the Group considers relevant information that is available without undue cost or effort and that is relevant, reasonable and supportable. This includes quantitative and qualitative information and analysis based on the Group’s historical experience and informed credit assessments, and also includes forward-looking information. The Group considers that the credit risk of a financial asset has increased significantly when the financial asset is more than 30 days past due. The Group considers a financial asset to be in default in either of the following cases: - It is unlikely that the borrower will repay its borrowings to the Group in full unless the Group takes actions such as realizing
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- 14 - collateral, if any. - The financial asset is more than 90 days past due. Expected credit losses are probability-weighted estimates of credit losses. Credit losses are measured as the present value of all cash shortfalls, that is, the difference between the cash flows due to the entity in accordance with the contract and the cash flows that the Group expects to receive. Expected credit losses are discounted using the effective interest rate of the financial asset. A financial asset is credit-impaired when one or more of the following events that have an adverse effect on the estimated future cash flows of the financial asset have occurred: - Significant financial difficulty of the debtor or issuer - A breach of contract, such as default or being more than 90 days past due - A concession by the Group to the borrower on terms of the loan that the Group would not otherwise consider if the borrower were not experiencing financial difficulty - It is probable that the debtor will enter bankruptcy or other financial reorganization - The disappearance of an active market for a security because of financial difficulties If it is reasonably determined that all or part of a financial asset is not recoverable, the carrying amount of the financial asset is written off directly. The Group does not expect to recover significant amounts written off directly; however, financial assets that have been written off directly remain subject to collection activities in accordance with the Group’s procedures for collecting receivables. 3) Financial liabilities excluding derivatives The Group initially recognizes financial liabilities on the date when it becomes a party to the contractual provisions of the instrument and measures them at amortized cost. At initial recognition, financial liabilities are measured at fair value less transaction costs directly attributable to their issuance. After initial recognition, they are measured at amortized cost using the effective interest method. Financial liabilities are derecognized when they are extinguished, that is, when the obligation specified in the contract is discharged, cancelled or expires. 4) Derivatives and hedge accounting The Group enters into derivative transactions, such as forward foreign exchange contracts, to hedge foreign currency fluctuation risk. At the inception of a hedge, the Group formally designates and documents the hedging relationship and the risk management objective and strategy for undertaking the hedge. The documentation includes identification of the hedging instrument, the hedged item or transaction, the nature of the hedged risk, and the method for assessing the effectiveness of the hedging instrument in offsetting exposure to changes in the fair value or cash flows of the hedged item attributable to the hedged risk. The Group also expects these hedges to be highly effective in offsetting changes in fair value or cash flows attributable to the hedged risk. Derivatives are initially recognized at fair value. After initial recognition, derivatives are measured at fair value, and subsequent changes are accounted for as follows. (i) Cash flow hedges The effective portion of changes in the fair value of derivatives that are hedging instruments is recognized in other comprehensive income. The ineffective portion of changes in the fair value of derivatives is recognized immediately in profit or loss. Amounts recognized in other comprehensive income are reclassified from other components of equity to profit or loss in the accounting period in which the hedged transaction affects profit or loss. However, if a hedge of a forecast transaction subsequently results in the recognition of a non-financial asset or non-financial liability, the amount recognized in other comprehensive income is accounted for as an adjustment to the initial carrying amount of that non-financial asset or non-financial liability. If the hedging instrument expires, is sold, terminated or exercised, or if the hedge no longer meets the qualifying criteria for hedge accounting even after adjustment of the hedge ratio, hedge accounting is discontinued prospectively. If the forecast transaction is no longer expected to occur, the amount recognized in other comprehensive income is immediately reclassified from other components of equity to profit or loss. (ii) Derivatives not designated as hedging instruments Changes in the fair value of derivatives are recognized in profit or loss.
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- 15 - 5) Offsetting financial assets and financial liabilities Financial assets and financial liabilities are offset and presented on a net basis when the Group has a legally enforceable right to offset the recognized amounts and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously. (5) Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand, demand deposits, and short-term investments with maturities of three months or less from the acquisition date that are readily convertible to cash and subject to an insignificant risk of changes in value. (6) Inventories Inventories are measured at the lower of cost and net realizable value. Cost includes purchase costs, conversion costs and all other costs incurred in bringing inventories to their present location and condition, and is determined using the weighted-average method. Inventories and work in process manufactured by the Group include an allocation of manufacturing overheads based on normal operating capacity. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. (7) Property, Plant and Equipment 1) Recognition and measurement Property, plant and equipment are accounted for using the cost model and are measured at cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly related to the acquisition of the asset, dismantling, removal and restoration costs, and borrowing costs that should be capitalized. If the useful lives of components of an item of property, plant and equipment differ from one another, each component is accounted for as a separate item of property, plant and equipment. 2) Subsequent expenditure Subsequent expenditure on property, plant and equipment is expensed as incurred for ordinary repairs and maintenance, and expenditure for major replacement and improvement is capitalized only when it is probable that future economic benefits will flow to the Group as a result of the expenditure. 3) Depreciation Property, plant and equipment other than land and construction in progress is depreciated using the straight-line method over the respective estimated useful lives from the time the assets are available for use. The estimated useful lives of major items of property, plant and equipment are as follows: Buildings and structures: 2 to 75 years Machinery, equipment and vehicles: 2 to 25 years Tools, furniture and fixtures: 2 to 25 years Depreciation methods, residual values and estimated useful lives are reviewed annually and adjusted as necessary. (8) Goodwill and Intangible Assets 1) Goodwill Goodwill is not amortized. It is allocated to assets, cash-generating units or groups of cash-generating units identified based on the region and type of business, and impairment tests are performed at the same time every year and whenever indications of impairment are identified. Impairment losses on goodwill are recognized in profit or loss and are not reversed. 2) Intangible assets Other intangible assets are accounted for using the cost model and are measured at cost less accumulated amortization and accumulated impairment losses. Separately acquired intangible assets are measured at cost, and the cost of intangible assets acquired in the Business Integration is measured at fair value at the date of the Business Integration. Internally generated research costs are recognized as expenses when incurred. Internally generated development costs are capitalized as intangible assets for the aggregate amount of costs incurred from the date on which all of the recognition criteria are first met until development is completed, only when the costs can be measured reliably, the development is technically and commercially feasible, it is probable that future economic benefits will be obtained,
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- 16 - and the Group has the intention and adequate resources to complete the development and to use or sell the asset. Subsequent expenditure is capitalized only when it increases the future economic benefits associated with the specific asset to which the expenditure relates. Intangible assets with finite useful lives are amortized using the straight-line method over their respective estimated useful lives. The estimated useful lives of major intangible assets are as follows: Software: 3 to 6 years Development costs: 6 years Other intangible assets: 2 to 15 years Amortization methods and estimated useful lives are reviewed annually and adjusted as necessary. (9) Leases The Group determines at contract inception whether a contract is, or contains, a lease. If a contract transfers the right to control the use of an identified asset for a period of time in exchange for consideration, the contract is, or contains, a lease. To assess whether a contract transfers the right to control the use of an identified asset, the Group considers the following. - Whether the contract involves the use of an identified asset. This may be specified explicitly or identified implicitly, and the identified asset must be physically distinct or must represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive right to substitute the asset, the asset is not identified. - Whether the Group has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use. - Whether the Group has the right to direct the use of the asset. The Group has that right when it has the decision-making rights that are most relevant to changing how and for what purpose the asset is used. In the rare cases in which how and for what purpose the asset is used is predetermined, the Group has the right to direct the use of the asset if either of the following applies. The Group has the right to operate the asset and the supplier of the asset does not have the right to change the Group’s operating instructions. The Group designed the asset in a way that predetermines how and for what purpose the asset will be used. At the inception or reassessment of a contract that contains lease components, the Group allocates the consideration in the contract to each lease component and non-lease component based on the relative stand-alone prices of each component. However, for leases of land and buildings in which the Group is the lessee, the Group has elected not to separate non-lease components and accounts for the lease component and the related non-lease components as a single lease component. 1) Lessee The Group recognizes a right-of-use asset and a lease liability at the commencement date of the lease. The right-of-use asset is initially measured at cost. This cost is calculated by adjusting the initial measurement amount of the lease liability for lease payments made at or before the commencement date, adding initial direct costs incurred and estimated costs to dismantle and remove the underlying asset and restore the underlying asset or the site on which it is located, and deducting lease incentives received. After initial recognition, the right-of-use asset is depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset and the end of the lease term. The estimated useful life of a right-of- use asset is determined in the same manner as for owned property, plant and equipment. The lease liability is initially measured at the present value of lease payments not paid at the commencement date, discounted using the interest rate implicit in the lease. If the interest rate implicit in the lease cannot be readily determined, the Group uses its incremental borrowing rate and generally uses the incremental borrowing rate as the discount rate. The total lease payments included in the measurement of the lease liability consist of the following. - Fixed lease payments, including in-substance fixed lease payments. - Variable lease payments that depend on an index or a rate, using the index or rate as at the commencement date for initial measurement. - Amounts expected to be payable under residual value guarantees. - The exercise price of a purchase option if the Group is reasonably certain to exercise that option, lease payments for the optional period if the Group is reasonably certain to exercise an extension option, and payments of penalties for early termination of the lease unless the Group is reasonably certain not to terminate early. The lease liability is measured at amortized cost using the effective interest method. The lease liability is remeasured when future lease payments change due to a change in an index or rate, when the estimate of amounts expected to be payable under a residual value guarantee changes, or when the assessment of whether to exercise a purchase, extension or termination option changes.
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- 17 - When the lease liability is remeasured in this way, the corresponding adjustment is made to the carrying amount of the right-of- use asset, or is recognized in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. Short-term leases and leases of low-value assets The Group has elected not to recognize right-of-use assets and lease liabilities for short-term leases of machinery with a lease term of 12 months or less and leases of low-value assets including IT equipment. The Group recognizes lease payments for these leases as expenses on a straight-line basis over the lease term. 2) Lessor When the Group is the lessor in a lease, it classifies each lease as either a finance lease or an operating lease at the inception of the lease. In classifying each lease, the Group makes an overall assessment of whether substantially all the risks and rewards incidental to ownership of the underlying asset are transferred. If they are transferred, the lease is classified as a finance lease; otherwise, it is classified as an operating lease. As part of this assessment, the Group considers certain indicators, such as whether the lease term is for the major part of the economic life of the underlying asset. If a contract contains lease components and non-lease components, the Group applies IFRS 15 to allocate the consideration in the contract. The Group recognizes revenue from finance leases at the commencement date of the lease. Revenue from operating leases is recognized on a straight-line basis over the lease term. Such revenue is presented as “Revenue.” (10) Investment Property Investment property is property held to earn rental income or capital gains, or both. Investment property is measured after recognition using the cost model and is presented at cost less accumulated depreciation and accumulated impairment losses. Depreciation of each asset other than land is calculated using the straight-line method over the respective estimated useful lives of 2 to 50 years. Estimated useful lives, residual values and depreciation methods are reviewed at each fiscal year-end and revised as necessary. (11) Impairment of Non-financial Assets For non-financial assets other than inventories, deferred tax assets and non-current assets held for sale, the Group assesses whether there are any indications that the assets may be impaired. If indications of impairment exist, the recoverable amount is measured for each individual asset or cash-generating unit. Goodwill, intangible assets with indefinite useful lives and intangible assets not yet available for use are not amortized and are tested for impairment at the same time each fiscal year and whenever indications of impairment exist. The recoverable amount is calculated as the higher of value in use and fair value less costs of disposal. Value in use is calculated by discounting estimated future cash flows to present value using a pre-tax discount rate that reflects the time value of money and the risks specific to the asset. If the carrying amount of an individual asset or cash-generating unit exceeds its recoverable amount, an impairment loss is recognized in profit or loss and the carrying amount of the asset is reduced to its recoverable amount. An impairment loss recognized for a cash-generating unit is allocated first to reduce the carrying amount of any goodwill allocated to that cash- generating unit, and then to reduce the carrying amounts of the other assets in the cash-generating unit on a pro rata basis. Impairment losses on goodwill are not reversed. For impairment losses on non-financial assets other than goodwill, when there are indications that the impairment loss may no longer exist or may have decreased, the Group estimates the recoverable amount of the asset, and if the recoverable amount exceeds the carrying amount after impairment accounting, the impairment loss is reversed. The reversal of an impairment loss is limited so that the carrying amount does not exceed the carrying amount that would have been determined if no impairment loss had been recognized for the asset in prior periods, and the difference between the recoverable amount and the carrying amount is recognized in profit or loss. (12) Non-current Assets Held for Sale and Discontinued Operations Non-current assets or disposal groups whose carrying amounts are expected to be recovered principally through sale transactions rather than through continuing use are classified as held for sale. Classification as held for sale requires that the asset be available for immediate sale in its present condition and that the sale be highly probable, and is limited to cases in which the Group’s management is committed to a plan to sell and the sale is expected to be completed, in principle, within one year. After classification as held for sale, the assets are measured at the lower of carrying amount and fair value less costs to sell, and are not depreciated or amortized. (13) Employee Benefits
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- 18 - ① Post-employment benefits The Group has adopted defined benefit plans and defined contribution plans as post-employment benefit plans for employees. 1) Defined benefit plans Defined benefit plans are post-employment benefit plans other than defined contribution plans (see (2) below). For defined benefit plans, the net amount of the present value of the defined benefit obligation and the fair value of plan assets is recognized as a liability or an asset. The present value of the defined benefit obligation, related current service cost and past service cost are calculated using the projected unit credit method. However, when a defined benefit plan is in surplus, the net defined benefit asset is limited to the present value of economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan. 2) Defined contribution plans Defined contribution plans are post-employment benefit plans under which fixed contributions are paid to another independent entity and the Group has no legal or constructive obligation to pay amounts in excess of those contributions. For defined contribution plans, contributions payable to the defined contribution plan are recognized as expenses when the employees render the related service. ② Short-term employee benefits Short-term employee benefits are recognized as expenses when the related service is provided, without discounting. Bonuses and paid vacation costs are recognized as liabilities for the amounts estimated to be paid under those programs when the Group has a legal or constructive obligation to pay them and a reliable estimate can be made. ③ Other long-term employee benefits The Group’s net obligation for long-term employee benefits is the amount of future benefits that employees have earned in return for services provided in prior periods and the current fiscal year. This benefit amount is discounted to present value. Remeasurement differences are recognized in profit or loss in the period in which they arise. (14) Provisions Provisions are recognized when, as a result of past events, the Group has a present legal or constructive obligation, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the outflow. 1) Provision for product warranties The Group recognizes provisions for expected expenditures relating to future repairs and maintenance provided free of charge under product warranty programs, as well as future repairs and maintenance provided free of charge required pursuant to filings with, or requests from, the relevant regulatory authorities. Estimated future costs and the discount rates applied are reviewed annually. Any revisions deemed necessary are reflected as adjustments to the carrying amount of the related provision and are accounted for as changes in accounting estimates. 2) Asset retirement obligations For asset retirement obligations, the Group recognizes provisions for dismantling and removal costs, restoration costs, and expenditures arising from the use of assets, and adds those amounts to the cost of the related assets. Future estimated costs and the discount rate applied are reviewed annually, and if revisions are determined to be necessary, they are added to or deducted from the carrying amount of the related asset and accounted for as changes in accounting estimates. 3) Provision for certification-related losses To provide for losses related to certification testing issues, the Group recognizes a provision based on a reasonable estimate. (15) Revenue For transactions within the scope of IFRS 15 “Revenue from Contracts with Customers” (“IFRS 15”), the Group recognizes revenue based on the following five-step approach, excluding interest and dividend income under IFRS 9 and lease payments received under IFRS 16 “Leases.” Step 1: Identify the contract. Step 2: Identify the performance obligations.
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- 19 - Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations. Step 5: Recognize revenue when the performance obligations are satisfied. 1)The content of the main performance obligations in the principal businesses and the normal timing of revenue recognition (i) Heavy-duty and medium-duty vehicles and light-duty vehicles For sales of trucks and buses, the Group has an obligation to deliver ordered products based on sales contracts concluded with customers, and recognizes revenue at the time of delivery of the products because the Group determines that the customer obtains control of the products and the performance obligation is satisfied at that time. (ii) Engines, components, parts and others For sales of engines, components and parts, the Group has an obligation to deliver replacement parts based on sales contracts concluded with customers, and recognizes revenue at the time of delivery of the replacement parts because the Group determines that the customer obtains control of the replacement parts and the performance obligation is satisfied at that time. (iii)Maintenance, services and others The Group provides extended warranties and service and maintenance contracts for certain products. Revenue from these contracts is deferred to the extent customers have prepaid and is normally recognized when service provision is completed and the performance obligation is satisfied. 2)Transactions in which materials are supplied for a fee For certain transactions in which materials are supplied for a fee that qualify as repurchase agreements, the Group continues to recognize inventories as financial transactions and recognizes financial liabilities for the ending inventory balance of supplied goods remaining with the counterparty. 3)Sales with a right of return The Group does not sell products with rights of return or similar rights. However, assuming cases in which returns are accepted mainly due to reasons attributable to the Company, estimated returns based on historical return rates are deducted from revenue for the current period. (16) Finance Income and Finance Costs Finance income consists of interest income, dividend income, foreign exchange gains, derivative gains excluding gains on hedging instruments recognized in other comprehensive income, and similar items. Interest income is recognized as it accrues using the effective interest method. Dividend income is recognized when the Group’s right to receive payment is established. Finance costs consist of interest expenses, foreign exchange losses, derivative losses excluding losses on hedging instruments recognized in other comprehensive income, and similar items. Interest expenses are recognized as they accrue using the effective interest method. (17) Income Taxes Income tax expense is presented as the sum of current tax and deferred tax. Current tax is the estimated amount payable to, or refundable from, the tax authorities, calculated using tax rates enacted or substantively enacted at the closing date and adjusted for unpaid income taxes and refundable income taxes through the prior year. The amount of current tax payable or current tax receivable is based on the best estimate of the amount of tax expected to be paid or received, reflecting uncertainties related to income taxes, if any. These amounts are recognized in profit or loss for the period, except for items related to business combinations and items recognized directly in equity or other comprehensive income. Income tax receivables and income tax payables are offset when certain requirements are met. Deferred tax assets and liabilities are measured at the tax rates expected to apply to the period in which the asset is realized or the liability is settled, based on tax laws enacted or substantively enacted by the closing date. Deferred tax assets and liabilities are calculated based on temporary differences, which are differences between the accounting carrying amounts of assets and liabilities and their tax bases at the closing date, and on tax loss carryforwards. Deferred tax assets are recognized for deductible temporary differences, tax loss carryforwards and tax credit carryforwards to the extent that it is probable that taxable profit will be available against which they can be utilized. Deferred tax assets and liabilities are not recognized for temporary differences arising from initial recognition in transactions that are not business combinations and that affect neither accounting profit nor taxable profit at the time of the transaction. Deferred tax liabilities are also not recognized for taxable temporary differences
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- 20 - arising on the initial recognition of goodwill. Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries, associates and interests in joint operations. However, they are not recognized if the Group can control the timing of the reversal of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax assets for deductible temporary differences associated with investments in subsidiaries, associates and interests in joint operations are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available. Deferred tax assets and deferred tax liabilities are offset when the Group has a legally enforceable right to offset current tax assets against current tax liabilities, and they relate to income taxes levied by the same taxation authority on the same taxable entity. By applying the exception provided in IAS 12 “Income Taxes” (amended in May 2023), the Group does not recognize or disclose deferred tax assets and deferred tax liabilities related to income taxes arising from tax laws enacted or substantively enacted to implement the Pillar Two model rules published by the Organization for Economic Co-operation and Development. Income tax expense for the first quarter consolidated accounting period is calculated based on the estimated average annual effective tax rate. (18) Equity 1) Share Capital and Capital Surplus Equity instruments issued by the Company are recognized as share capital and capital surplus at the proceeds received. Incremental costs directly attributable to the issuance of equity instruments are deducted from capital surplus. Class A shares are classified as equity as the Company has no contractual obligation to deliver cash or another financial asset to redeem the shares. 2) Treasury shares Treasury shares are measured at cost and deducted from equity, and gains or losses are not recognized in profit or loss on purchase, sale or cancellation of treasury shares. The difference between the carrying amount and the consideration on disposal is recognized as capital surplus. 3) Dividends Among dividends to the Company’s shareholders, year-end dividends are recognized as liabilities in the period that includes the date on which they are approved by the Company’s general meeting of shareholders, and interim dividends are recognized as liabilities in the period that includes the date on which they are approved by the Board of Directors. (19) Earnings per Share Basic earnings per share is calculated by dividing profit for the period attributable to owners of the parent by the weighted- average number of ordinary shares outstanding during the period, adjusted for treasury shares. Diluted earnings per share is calculated by adjusting for the effects of all potential ordinary shares with dilutive effects. (20) Government Grants Government grants are recognized at fair value when the conditions attached to the grant are satisfied and there is reasonable assurance that the grant will be received. Government grants related to assets are recognized as deferred income and reclassified regularly to profit or loss over the estimated useful life of the related asset. Government grants related to income are recognized in profit or loss over the period in which the costs subject to compensation are incurred. (Segment Information) Because the Group is a single segment whose principal business is the manufacture and sale of heavy-duty and medium-duty vehicles, light-duty vehicles, engines, components, parts and others, disclosure is omitted.
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- 21 - (Business Combination) On April 1, 2026, the Company completed the business integration between Hino Motors, Ltd. and Mitsubishi Fuso Truck and Bus Corporation (the “Business Integration”) and transitioned to a holding company structure pursuant to the Business integration Agreement entered into on June 10, 2025 by the Company, Hino Motors, Ltd., Mitsubishi Fuso Truck and Bus Corporation, Toyota Corporation, and Daimler Truck AG. The Business Integration was effected through a share exchange under which the Company became the wholly owning parent company and Hino Motors became its wholly owned subsidiary (the “Share Exchange”), and a share delivery transaction under which the Company became the parent company and Mitsubishi Fuso became its subsidiary (the “Share Delivery”). (1) Overview of the share exchange 1) Details of the share exchange A share exchange in which the Company became the wholly owning parent company through share exchange and Hino Motors became the wholly owned subsidiary through share exchange. 2) Date of the share exchange April 1, 2026 3) Method of the share exchange The Company newly issued and allotted 845,069,543 common shares and 175,512,774 Class A shares to shareholders of Hino Motors recorded or registered in the final shareholder register of Hino Motors on the day immediately preceding the share exchange date. 4) Share exchange ratio The Company Hino Motors Share exchange ratio 1 1 5) Basis for calculating the share exchange ratio Because the Share Exchange was conducted solely for the purpose of reversing the wholly owning parent-subsidiary relationship, with the Company, which was established as a wholly owned subsidiary of Hino Motors to implement the management integration, becoming the wholly owning parent company through share exchange and Hino Motors becoming the wholly owned subsidiary through share exchange, the share exchange ratio is set at 1 to 1. (2) Overview of the share delivery 1) Details of the share delivery A share delivery in which the Company became the wholly owning parent company through share delivery and Mitsubishi Fuso became the wholly owned subsidiary through share delivery. 2) Date of the share delivery April 1, 2026 3) Method of the share delivery The Company delivered 1,736,000,310 common shares of the Company to transferors of common shares of Mitsubishi Fuso by multiplying the total number of common shares of Mitsubishi Fuso held by each transferor by 310. 4) Share delivery ratio The Company Mitsubishi Fuso Share delivery ratio 1 310
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- 22 - 5) Basis for calculating the share delivery ratio The share value ratio between Mitsubishi Fuso and Hino Motors that serves as the premise for the share delivery ratio, with the share value of Mitsubishi Fuso set at 1, was agreed as follows, and based on the share value ratio, 310 common shares of the Company were allotted and delivered for each common share of Mitsubishi Fuso. Mitsubishi Fuso Hino Motors Share value ratio between Mitsubishi Fuso and Hino Motors 1 0.588 As a result of this transaction, because the shareholder group of Mitsubishi Fuso, the subsidiary in share delivery, holds the largest proportion of the voting rights of the Company, Mitsubishi Fuso was determined to be the acquirer, and the Company and Hino Motors were determined to be the acquiree. Accordingly, the Company prepared the consolidated financial statements as if Mitsubishi Fuso had acquired the Company and Hino Motors on that date. (3) Name and description of business of the acquiree Name: ARCHION Corporation and Hino Motors, Ltd. Description of business: Manufacture of trucks and buses, light commercial vehicles and passenger vehicles commissioned by Toyota, various engines, replacement parts and others. For information about the Company, please refer to “Segment Information” and “Reporting Entity.” (4) Purpose of the Business Integration The purpose is for Hino Motors and Mitsubishi Fuso to combine their strengths, solve the issues they face, such as carbon neutrality and logistics efficiency, refine the competitiveness of Japanese commercial vehicle manufacturers, protect the foundation of the automotive industry in Japan and Asia, and make meaningful and lasting contributions to society and stakeholders. (5) Fair value of consideration transferred, the identifiable assets acquired and liabilities assumed at the acquisition date (Millions of yen) Item Amount Current assets 951,161 Non-current assets 711,264 Total assets 1,662,426 Current liabilities (726,605) Non-current liabilities (224,931) Total liabilities (951,537) Fair value of identifiable assets acquired and liabilities assumed, net 710,889 Non-controlling interests (Note 1) (82,677) Bargain purchase gain (Note 2) (233,246) Fair value of consideration transferred 394,965 Note 1: Non-controlling interests are measured at the non-controlling shareholders’ ownership percentage of the identifiable net assets of the acquiree. Note 2: This gain arose because the fair value of the identifiable net assets acquired exceeded the acquisition consideration. This gain is recorded as “bargain purchase gain” in the condensed quarterly consolidated statement of profit or loss. As of the end of the first quarter of the current fiscal year, the purchase price allocation remains incomplete. Therefore, the amounts have been provisionally recognized based on the information currently available. Note 3: The fair value of the consideration transferred is measured based on the market capitalization of Hino Motors, calculated using the closing price of Hino Motors’ shares on the last trading day on the Tokyo Stock Exchange.
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- 23 - (6) Net cash flow from acquisition of subsidiary (Millions of yen) Item Amount Acquisition consideration in cash and cash equivalents - Cash and cash equivalents held by the acquiree at the time of acquisition 276,231 Net cash flow from acquisition of subsidiary 276,231 (7) Amounts of revenue and profit or loss of the acquiree after the acquisition date recognized in the consolidated statement of profit or loss (Millions of yen) Item Amount Revenue 379,062 Profit for the quarter 14,131 The Business Integration was completed on April 1, 2026, the first day of the current fiscal year. Accordingly, except for the gain arising from the transfer of the Hamura Plant immediately prior to the Business Integration, all profit and loss for the three months ended June 30, 2026 is reflected in the Group’s revenue and profit for the quarter. The gain arising from the transfer of the Hamura Plant constitutes part of the bargain purchase gain. The above profit for the quarter does not include the bargain purchase gain. (Significant Subsequent Events) Not applicable.
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- 24 - (Additional Information) (Sale of Shares and Change in Other Affiliated Company Status) The Company conducted a secondary offering of its common shares with a settlement date of July 29, 2026 (the “Secondary Offering”). As a result of the Secondary Offering, a change occurred in the Company’s other affiliated company. For details of the Secondary Offering, please refer to “Notice Concerning Secondary Offering of Shares and Change in an Other Related Company” announced on July 6, 2026. The Secondary Offering is expected to result in a change in the Company's other related company. However, depending on the actual outcome of the exercise of the Green Shoe Options, such change may not occur. The Secondary Offering and the change in the other related company have no impact on the Company’s operating results or financial position. (1) Overview of the Shareholder that Ceased to be an Other Affiliated Company 1) Name Toyota Motor Corporation 2) Address 1 Toyota-cho, Toyota-shi, Aichi 3) Name and title of representative Kenta Kon President, Member of the Board of Directors (Representative Director) 4) Description of business Automotive operations, financial services operations and all other operations 5) Share Capital 635,402 million yen (as of March 31, 2026) 6) Date of incorporation August 28, 1937 7) Consolidated net assets 41,020,068 million yen (as of March 31, 2026) 8) Consolidated total assets 105,522,331 million yen (as of March 31, 2026) 9) Major Shareholders and Shareholding Ratios (as of March 31, 2026) The Master Trust Bank of Japan, Ltd. 12.80% Toyota Industries Corporation 9.15% Custody Bank of Japan, Ltd. 6.10% Nippon Life Insurance Company 4.86% State Street Bank & Trust Company (Standing proxy: Mizuho Bank, Ltd. Settlement Sales Department) 4.62% JP Morgan Chase Bank (Standing proxy: Mizuho Bank, Ltd. Settlement Sales Department) 4.13% DENSO CORPORATION 3.45% The Bank of New York Mellon as Depositary Bank for Depositary Receipt Holders (Standing proxy: Sumitomo Mitsui Banking Corporation) 2.73% Toyota Fudosan Co., Ltd. 1.92% AISIN CORPORATION 1.33% 10) Relationship between the listed company and the shareholder Capital Relationship The shareholder holds 1,142,162,628 shares (41.43%) of the total number of issued shares of the Company as of July 6, 2026. Personnel Relationship 5 employees have been seconded by Toyota to Hino Motors, a subsidiary of the Company, and 16 employees have been seconded by Hino Motors to Toyota as of July 1, 2026. Business Relationship Hino Motors, a subsidiary of the Company, supplies the “DYNA” light-duty trucks to Toyota as an OEM. The Company contracts to manufacture “DYNA” and our “DUTRO” light-duty trucks with a subsidiary of Toyota.
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- 25 - (2) Number of voting rights held by the shareholder and percentage thereof before and after change Attribute Ownership ratio of voting rights Number directly owned Number subject to consolidation Total Before the Change Other related company and major shareholder 37.46% - 37.46% After the Change (Expected) Major shareholder 19.90% - 19.90% Note 1: The voting rights ownership ratios before and after the change are calculated based on the total number of voting rights of all shareholders as of April 1, 2026, being 25,806,847 voting rights Note 2: The percentage of voting rights held is rounded to the second decimal place. Note 3: The expected voting rights ownership ratio after the change has been calculated based on the number of voting rights held prior to the change, after deducting 590,891 voting rights attributable to the exercise of the Green Shoe option, assuming full exercise of such option. Depending on the actual exercise of the Green Shoe Options, the number of voting rights after the change may increase from the number of voting rights stated above.
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- 26 - 3. Supplementary Information (1) Actual Sales (Consolidated) Category Previous Q1 Units Previous Q1 Amount (millions of yen) Current Q1 Units Current Q1 Amount (millions of yen) Change Units Change Amount (millions of yen) Domestic 15,408 137,311 19,801 185,712 4,393 48,401 Overseas 36,830 169,465 39,913 176,027 3,083 6,561 New vehicle sales 52,238 306,777 59,714 361,739 7,476 54,962 Domestic - 88,505 - 93,072 - 4,566 Overseas - 33,142 - 35,521 - 2,378 Parts & service - 121,648 - 128,594 - 6,945 Complementary business - 94,657 - 107,535 - 12,878 Total sales - 523,083 - 597,869 - 74,786 Note 1: Amounts less than one million yen are rounded down. Note 2:” Previous Q1” in this table represents unaudited pro forma financial information calculated assuming that Hino Motors and Mitsubishi Fuso had been consolidated from the beginning of the fiscal year ended March 31, 2026, with adjustments made for the transfer of the Hamura Plant and the transfer of control of Hino Motors' domestic sales subsidiaries.
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- 27 - (2) Comparison with combined pro forma financial information [Condensed Quarterly Consolidated Statement of Financial Position] (Millions of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and cash equivalents 323,525 333,193 Trade and other receivables 380,714 390,134 Other financial assets 30,638 28,614 Inventories 440,571 442,032 Income taxes receivable 6,895 6,414 Other current assets 29,442 34,392 Subtotal 1,211,788 1,234,782 Assets held for sale 152,032 22,308 Total current assets 1,363,820 1,257,091 Non-current assets Property, plant and equipment 617,574 558,091 Right-of-use assets 113,604 110,492 Goodwill and intangible assets 61,252 59,280 Investment property 214 55,914 Investments accounted for using the equity method 50,842 49,128 Other financial assets (non-current) 84,150 101,258 Deferred tax assets 89,050 79,982 Other non-current assets 10,741 10,207 Total non-current assets 1,027,432 1,024,356 Total assets 2,391,252 2,281,447
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- 28 - (Millions of yen) As of March 31, 2026 As of June 30, 2026 Liabilities and equity Liabilities Current liabilities Trade and other payables 357,537 288,539 Bonds and borrowings (current) 284,287 288,275 Lease liabilities (current) 17,023 17,958 Other financial liabilities (current) 42,028 43,165 Income taxes payable 45,668 54,675 Provisions (current) 136,703 78,973 Other current liabilities 188,855 168,102 Subtotal 1,072,103 939,690 Liabilities directly associated with assets held for sale 48,763 8,611 Total current liabilities 1,120,866 948,302 Non-current liabilities Bonds and borrowings (non-current) 25,018 20,267 Lease liabilities (non-current) 95,517 91,646 Liabilities for retirement benefits 38,991 38,912 Provisions (non-current) 42,753 99,803 Other financial liabilities 28,016 29,767 Deferred tax liabilities 7,229 11,046 Other non-current liabilities 15,089 13,790 Total non-current liabilities 252,617 305,234 Total liabilities 1,373,484 1,253,536 Equity Share capital - (Note) 10,000 Capital surplus - (Note) 437,645 Retained earnings - (Note) 483,335 Treasury shares - (Note) △0 Other components of equity - (Note) 12,384 Equity attributable to owners of the parent 932,328 943,365 Non-controlling interests 85,439 84,545 Total equity 1,017,767 1,027,910 Total liabilities and equity 2,391,252 2,281,447 Note 1: The combined pro forma financial information has not been audited or reviewed by independent auditors. Note 2: A breakdown of equity attributable to owners of the parent was not prepared for the combined pro forma financial information and is therefore not disclosed.
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- 29 - [Condensed Quarterly Consolidated Statements of Income] (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Revenue 523,083 597,869 Cost of sales 434,675 503,506 Gross profit 88,407 94,362 Selling, general and administrative expenses 65,709 70,827 Other income 1,857 7,403 Other expenses 2,595 1,925 Operating profit before bargain purchase gain 21,960 29,013 Bargain purchase gain - 233,246 Operating profit 21,960 262,260 Finance income 6,383 1,374 Finance costs 3,351 2,772 Share of profit of investments accounted for using the equity method 245 1,436 Profit before income taxes for the quarter 25,238 262,299 Income tax expense 3,842 7,849 Profit for the quarter 21,395 254,449 Profit for the quarter attributable to Owners of the parent 18,223 251,455 Non-controlling interests 3,172 2,994 Earnings per share for the quarter Basic earnings per share for the quarter (yen) 6.61 91.22 Note: The combined pro forma financial information has not been audited or reviewed by independent auditors.