Hino Motors : New Management Structure

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December 27, 2022

Hino's New Management Structure

Where all employees "think together, run together, and manufacture vehicles together."

Hino Motors, Ltd. (Hino) is pleased to announce incoming changes to its management structure effective from February 1, 2023. These changes are part of Hino's implementation of its "three reforms" program announced on October 7.

The new management structure, which aims to promote the "three reforms," reflects Hino's commitment to change and to conducting certification processes in a compliant manner. We will review all of our previous processes and rebuild our organizational structure from the ground up. In conjunction with organizational culture reforms, including awareness and behavioral reforms at the management level, we will realize a structure where all employees have a shared purpose across divisions and "think together, run together, and manufacture vehicles together." Furthermore, we are working to foster a corporate culture in which all employees working at Hino work together with the common goal of respecting all Hino staff, contributing customers and society.

Under this new structure, we will build trust with our stakeholders, and make concerted efforts to implement our reforms as quickly as practicable so that we can continue our mission of contributing to customers and society at large.

1. Outline of the New Management Structure

Our new management structure is designed to address issues that have been identified with our existing organizational culture, such as "excessively strong command hierarchy," "broadening of sectionalism," and "failing to promote issues with a sense of speed." Specifically, we will establish an organization (i) that contributes to the development of human resources; (ii) in which every employee contributes to serving customers and society and is committed to Hino's vehicle manufacturing process; and (iii) that is efficient with swift and autonomous decision-making.

We have established an organizational structure that combines Hino's business axis with its functional axis. Under the new structure, each of the business units will be integrated with the upstream and downstream vehicle manufacturing functions within Hino to establish a system focused on serving customers. Business unit staff responsible for Hino products will now be involved in all manufacturing processes including development, production, sales, and total support to support the business operations of customers as well as

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	3-1-1,Hino-dai,Hino-shi, Tokyo 191-8660, Japan
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appropriate regulatory compliance, rather than the previous role of leading product development from afar. Additionally, by including business unit staff in the whole product development process, certain departments will be consolidated and existing divisions removed, decreasing organizational hierarchy. We will also establish the new role of CxO (a Chief Officer in each function and role) or Function Officer within each function to more easily delegate authority and accelerate decision-making. By doing so, we aim to eliminate inefficiencies, becoming an organization that can think quickly and make independent judgments, while creating high quality products that contribute to our customers and society. We will also bolster internal management oversight by re-establishing the position of general manager to provide leadership and foster a corporate culture that respects each and every employee.

Through the transformation of Hino into an organization that integrally involves its employees across all stages of planning and development, sales, and production, we aim to foster a holistic view of the entire organization as well as a cooperative and collaborative mindset, awareness of each employee's involvement within the activities of the Company, and the employee's ability to consider, decide and propose solutions. As a result, our organization will be able to more effectively contribute to customers and society. In addition, these reforms will have the effect of proactively fostering the development of the personnel who will play a leading role in Hino's activities going forward.

Organizational Structure Overview

2. Establishment of the CTrO and the Transformation Management Office

Hino is also planning to create the new role of CTrO (Chief Transformation Officer) and the Transformation Management Office to conscientiously and efficiently implement company-wide initiatives, including the "three reforms."

Their role will be to promote and manage the overall reform program, coordinate initiatives that cut across businesses and functions, and follow up on and support the reform measures being taken by each department

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across the company.

3. Senior Management Officers, CxOs, Function Officers (As of February 1, 2023)

(1) Composition of Senior Managing Officers

Title	Name
Senior Managing Officer	Hiroshi Semba
Senior Managing Officer	Noboru Yamate
Senior Managing Officer	Hisaki Torisaka
Senior Managing Officer	Megumu Yamashiki

1. • The above four Senior Management Officers are reappointed
   • Shigehiro Matsuoka and Masanari Watanabe, the current Senior Managing Officer will retire at the expiration of their term of office on January 31, 2023.
2. Composition of CxOs and Function Officers

	Unit/Function			CxO / Function Officer		Currently in charge
				Title		Name
-			CEO (Executive)		Satoshi Ogiso		President, Representative Director
	Internal Audit		Function Officer		Norio		DCCO
			Yoshida
	Compliance,				Kenji		CCO, Operating Officer, Legal &
		CCO (Compliance)			Intellectual Property, Operating
			Futamura
	Legal &					Officer, Internal Audit
	Intellectual
				Norio
	Property		DCCO (Compliance)			DCCO
			Yoshida
	Quality		CQO (Quality)		Masahiro Ono		Chief Officer, Quality Division;
	Safety &						Operating Officer, Safety &
				Motoshi		Environmental Promotion, Operating
	Environmental		Function Officer
			Umeoka		Officer, Plant Personnel
	Promotion
						Enhancement
-			CTrO (Transformation)		Hiroki		Officer, Assistant to Operating
			Yokohari		Officer, Business Planning
				COO (Operating) in charge of		Naoki Sato		Operating Officer, Strategy &
	Business		Japan Business			Planning
	Management		COO (Operating) in charge of		Junichi Kato		Secondment to HMA
				the Overseas Business

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	CPO (Product)	Koji	Chief Officer, Advanced Technology
	Toyoshima	Division
Digital Strategy	CDO (Digital)	Hidenori	CDO, Operating Officer, Digital
Osano	Strategy
Technology	CTO (Technical)	Makoto	DCCO
Development	Wakimura
Production	Function Officer	Kazuki Okabe	Operating Officer, Production
Engineering	Engineering No.2
Purchasing	Function Officer	Shigeki Sugiu	Operating Officer, Purchasing
Total Support		Nozomu	Chief Officer in Charge of Total
CTSO (Total Support)	Support, Operating Officer, Total
(TS)	Harada
	Support
			Operating Officer, General
Monozukuri	CMO (Monozukuri)	Tokuichi	Administration & Human Resources
Shiga	Development, Head of Hino
			Academy
Finance &	CFO (Financial)	Yasushi	Operating Officer, Profit & Cost
Accounting	Nakano	Planning
Strategy	CSO (Strategy)	Tatsuya	Deputy Operating Officer, Strategy &
Nomura	Planning
Human	CHRO (Human Resources)	Satoshi Ogiso	President, Representative Director
Resources
General		Hiroshi
Administration,	Function Officer	Operating Officer, Public Affairs
Hashimoto
Public Affairs

Charoen Pokphand Group ("CP") in Thailand and Toyota Motor Corporation (Toyota) recently announced* that they will explore a collaboration toward carbon neutrality in Thailand. This initiative also involves companies that have invested in the Commercial Japan Partnership Technologies Corporation. These companies and CP, which is a customer of Hino, have invited Hino to participate in this initiative in Thailand. We take this opportunity seriously and we will promptly put in place a structure to implement this initiative. We will do our utmost so that we can give back to the people of Thailand who have nurtured the Hino brand and can earn as much trust as possible in our contribution to this initiative.

We recognize that it is firstly a major premise for us to sincerely promote our efforts to change the awareness and behavior of each individual, led by the management, and to make us essential to the world. We will once again engage with our stakeholders and make efforts to minimize the impact on our various related parties and to promote the "three reforms."

* CP and Toyota to join forces to study path toward carbon neutrality in Thailand

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Former Organizational Structure Overview

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March 25, 2022:Submission of a Statement to the Ministry of Land, Infrastructure, Transport and Tourism and Misconduct Concerning the "N04C(Urea-SCR)"Light-DutyEngine

March 25, 2022:Recall of vehicles equipped with the "A05C(HC-SCR)"medium-dutyengine

March 29, 2022:Notice Regarding Recording of Expected Operating Charges and Extraordinary Losses and Revision of Earnings Forecast

August 2, 2022:Investigation Results by the Special Investigation Committee, and Recurrence Prevention Measures and Other Responses

August 22, 2022:Additional Findings Concerning Engine Certification

August 24, 2022:Regarding CJPT Decision to Expel Hino

August 30, 2022:Hino Launches the "Trust Restoration Project"

August 30, 2022:Launch of the "Zero Workplace Bullying" Initiative

September 2, 2022:Reform of Processes of Development, Regulatory Certification and Quality Assurance

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