December 27, 2016
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 Acquisition of Shares Associated with a Transfer of Consolidated Subsidiary
At a Board of Directors meeting held today, a resolution was passed to finalize a Memorandum of Understand thatwill see Sumitomo Heavy Industries, Ltd. (hereinafter referred to as “SHI” or the “Company”) acquire additional
shares of Hitachi Sumitomo Heavy Industries Construction Crane Co., Ltd. (hereinafter referred to as “HSC”),
currently an equity‐method affiliate of SHI. As a result of this additional share acquisition, HSC will become aconsolidated subsidiary of SHI. Further details on this transaction are provided below.
DETAILS
1. Reasons for Acquiring Shares
In 2002, SHI and Hitachi Construction Machinery Co., Ltd. (hereinafter referred to as “HCM”) merged each other’s
crawler crane business into one entity and established HSC, and have worked to increase competitiveness in both
domestic and overseas markets ever since. On the other hand, M&A activity in the industry as well as therestructuring of production locations at the Group level has continued across both domestic and overseas
competitors. In addition, Chinese manufacturers have started to push their overseas agenda in recent years,
resulting in even more severe competition in the industry. Moreover, technologies unique to cranes including thetrend towards larger lifting capacity, better transportability, self‐assembly, and increases in operational performance,continues to advance, making investments aimed at product differentiation even more of a priority.
As a key business strategy, SHI intends to accelerate enhancements to the global competitiveness of its crawler cranebusiness. As part of this strategy, the Company intends to utilize its production facilities/capacity as well as North
American mobile crane business. With today’s announcement, SHI and HCM have finalized a Memorandum ofUnderstanding to allow SHI to acquire a portion of HSC shares held by HCM, and to make HSC a consolidated
subsidiary of the Company. Both SHI and HCM will continue to provide mutual support to one another with respect
to areas such as sales channels, technology, know‐how, etc. and cooperate with each other to further develop thecrawler crane business.
2. Profile of Subsidiary to be Transferred(1) Name(2) Address(3) Name and Title of Representative(4) Business Operations(5) Paid‐Up Capital(6) Date of Establishment

Hitachi Sumitomo Heavy Industries Construction Crane Co., Ltd.
(HSC)
9‐3 Higashi Ueno 6‐Chome, Taito‐ku, Tokyo, Japan
Shogo Yokoyama, President and Representative Director
Manufacture, repair, and sales of construction equipment such ascrawler cranes, and other related equipment. Also, the operation ofrelated businesses.
JPY4 billion
July 1, 2002

1(7) Major Shareholders and Shareholdings

Hitachi Construction Machinery Co., Ltd. – 50%
Sumitomo Heavy Industries, Ltd. – 50%(8) Relationship Between Subject Company Capital Ties
SHI has a 50% stake in HSC
and Publicly‐Traded Company
Personnel Ties
SHI posts one director and two auditors to HSC
Transactional Ties HSC has a product and sales relationship withLink‐Belt Construction Equipment Company(9) Financial Performance and Condition of the Subject Company for the Most Recent Three Year Period(in JPY)
Fiscal Period
Period Ended March 2014
Period Ended March 2015
Period Ended March 2016
Net Assets
9,911 million
12,202 million
13,744 million
Total Assets
20,399 million
26,261 million
26,385 million
Net Assets Per Share
123,895.95
152,529.32
171,811.51
Sales
37,240 million
42,855 million
44,125 million
Operating Income
3,255 million
5,798 million
5,317 million
Ordinary Income
3,266 million
5,838 million
5,424 million
Net Income for the Period
2,156 million
2,930 million
3,882 million
Net Income Per Share
26,950.99
36,633.36
48,532.19
Dividend Per Share
8,000
29,25038,7503. Profile of the Company Selling the Shares(1) Name(2) Address(3) Name and Title of Representative(4) Business Operations(5) Paid‐Up Capital(6) Date of Establishment(7) Net Assets(8) Total Assets(9) Major Shareholders and Shareholdings(10) Relationship Between Subject Company andPublicly‐Traded Company

Hitachi Construction Machinery, Co., Ltd.
16‐1 Higashi Ueno 2‐Chome, Taito‐ku, Tokyo, JapanYuichi Tsujimoto President and Chief Executive Officer
Manufacture, sales, rental and after‐sales service ofconstruction machinery, transportation machinery,environment‐related products, and other machines anddevices.
JPY81,576,590,000
October 1, 1970
JPY202,394 million
JPY458,715 million
Hitachi, Ltd. – 50.23%
The Master Trust Bank of Japan, Ltd. (Account in Trust) – 6.02%
Japan Trustee Services Bank, Ltd. (Account in Trust) – 4.97%
Capital Ties
Not Applicable
Personnel Ties
Not Applicable
Transactional Ties
Not Applicable
Applicability to Related Parties
Not Applicable

4. Number of Shares to be Acquired, Acquisition Price, and Shareholdings Before and After the Transaction(1) Number of Shares Held Prior to the Transfer
40,000 shares(Number of voting rights 40,000)(Proportion of voting rights held – 50.0%)(2) Number of Shares to be Acquired
12,800 shares(Number of voting rights 12,800)(3) Acquisition Price
A notice will be provided once this figure has been established(4) Number of Shares Held After the Transaction 52,800 shares(Number of voting rights 52,800)(Proportion of voting rights held – 66.0%)
5. Key Timeline of Transaction(1) Date Resolution was Passed at a Board of Directors Meeting(2) Date that Memorandum of Understanding was Finalized(3) Execution Date of Share Transfer

2

December 27, 2016
December 27, 2016
March 31, 2017 (Projected)

6. Future Outlook
The impact of this transaction on SHI’s consolidated financial performance is expected to be minimal. However, if it is
discovered that this transaction will have a significant impact on consolidated financial performance, SHI will disclosesuch information as soon as practicable.
END3