July 31, 2013
To Whom It May Concern:
Company
Representative::

CodeContact::Phone:

Sumitomo Heavy Industries, Ltd.
Shunsuke Betsukawa
President and Chief Executive Officer
6302
Tsuneyoshi Sato
General Manager, Corporate
Communications Department+81-3-6737-2333

Notice Regarding the Merger of Certain Subsidiaries
On July 31, 2013, the Board of Directors of Sumitomo Heavy Industries, Ltd. (hereinafter referred to as “SHI” or the“Company”) passed a resolution to merge two gear-reducer related subsidiary companies in the United States and Australia,
respectively. The details of this decision are provided below:
1. Purpose of the Merger
Despite acquiring Belgium-based Hansen Industrial Transmissions NV (hereinafter referred to as “HIT”) in March 2011, theCompany has maintained separate global sales offices for SHI and HIT. Through this resolution, the Company has decided tomerge the respective subsidiaries in the North America and Australia regions to increase the efficiency of the sales channel
and to improve the convenience level of its services for customers.
【Australia】【North America】
SHI

SHI

ＨＩＴ

ＳＣＡ

ＨＩＴ

ＳＭＡ
（Surviving Entity）

ＨＮＡ（Redundant Entity）

ＳＭＡＵ
ＨＴＡＵ（Surviving Entity）（Redundant Entity）※Company name change is planned

ＳＭＡ：SHI Subsidiary

ＨＮＡ：HIT Subsidiary

ＳＣＡ：SHI Subsidiary
ＳＭＡＵ：SCA Subsidiary

2. Merger Schedule (Proposed)
North America: August 5, 2013
Australia: October 1, 2013

ＨＴＡＵ：HIT Subsidiary3. Profile of Companies to be Merged (as of March 31, 2013)[North America](1) Company Name
Sumitomo Machinery Corporation ofAmerica(Surviving Entity)(2) Business Description
Manufacturing, sale and after-saleservice of industrial gear reducers andgear motors(3) Date Established
June 30, 1966
(4) Head Office Locaiton4200 Holland Boulevard, Chesapeake,
VA 23323, USA(5) Representative
Ronald J. Smith(6) Capital
USD12,423,000(7) Total Number of Shares
914
Outstanding(8) Month of Fiscal Year EndDecember(9) Major Shareholder andSumitomo Heavy Industries, Ltd. – 100%Shareholding(10) Operating Results and Financial Condition)
For the Fiscal Year Ended December 31,
2012
Sales
USD148,864,000[Australia](1) Company Name
(2) Business Description(3) Date Established(4) Head Office Locaiton(5) Representative(6) Capital(7) Total Number of Shares
Outstanding(8) Month of Fiscal Year End(9) Major Shareholder andShareholding

Hansen Transmissions Inc.
(Redundant Entity)
Assembly, sale and after-sale service ofindustrial gear reducers
June 10, 1974
33 Lakeview Court Verona, VA 24482, USA
Brandan Sommerfield
USD10,564,000500
MarchHansen Industrial Transmissions NV(Wholly-Owned Subsidiary of SHI) – 100%
For the Fiscal Year Ended March 31, 2013
USD27,245,000

SM Cyclo (Australia) Pty Limited(Surviving Entity)
Assembly, sale and after-sale service ofindustrial gear reducers and gear motors
April 26, 1995
9 Holbeche Road Arndell Park, NSW
2148, Australia
Robert Proietti
AUD4,000,000
4,000,000

Hansen Transmission Pty Ltd(Redundant Entity)
Assembly, sale and after-sale service ofindustrial gear reducers
September 1970
Unit 2/88 Henderson Road Rowville, VIC
3178, Australia
Steve Wightman
AUD50,000
50,000December
Sumitomo (SHI) Cyclo Drive Asia PacificPte. Ltd. (Wholly-Owned Subsidiary ofSHI) – 100%

MarchHansen Industrial Transmissions NV(Wholly-Owned Subsidiary of SHI) – 100%

(10) Operating Results and Financial Condition
For the Fiscal Year Ended December 31,2012
SalesAUD14,029,000

For the Fiscal Year Ended March 31, 2013
AUD16,825,000

4. Profile Upon Completion of Merger[North America](1) Company Name
Sumitomo Machinery Corporation of America(2) Business Description(3) Date Established(4) Head Office Locaiton

Manufactuer, sale and after-sale service of gear reducers and gear motors
June 30, 1966
4200 Holland Boulevard Chesapeake, VA 23323, USA(5) Representative(6) Capital(7) Total Number of Shares
Outstanding(8) Month of Fiscal Year End(9) Major Shareholder andShareholding

Ronald J. Smith
Approximately USD23,200,000914[Australia](1) Company Name
(2) Business Description(3) Date Established(4) Head Office Locaiton(5) Representative(6) Capital(7) Total Number of Shares
Outstanding(8) Month of Fiscal Year End(9) Major Shareholder andShareholding

December
Sumitomo Heavy Industries, Ltd. – 100%

To be determined
Assembly, sale and after-sale service of industrial gear reducers and gearmotors
April 26, 1995
9 Holbeche Road Arndell Park, NSW 2148, Australia
Steve Wightman
AUD13,300,000
13,300,000
December
Sumitomo (SHI) Cyclo Drive Asia Pacific Pte. Ltd. (Wholly-Owned Subsidiaryof SHI) – 100%

5. Impact of Financial Results
As this is a merger between two consolidated subsidiaries, there will be no impact to the consolidated financial results.
END