June 26, 2018
To Whom It May Concern:
Company: Sumitomo Heavy Industries, Ltd.

Representative: Shunsuke Betsukawa

Representative: President and Chief Executive Officer

Code: 6302

Contact: Michiko Watanabe General Manager

Contact: Corporate Communications Department

Phone: +81-3-6737-2333

Notice Regarding the Completion of the Acquisition of Shares of Italian Industrial Motor Manufacturer Lafert Group(Update on Previously Disclosed Transaction)
Please be informed that on June 25, 2018 Sumitomo Heavy Industries, Ltd. (hereinafter referred to as “SHI” or the“Company”) completed the acquisition of all shares of Lafert S.p.A. (hereinafter referred to as “Lafert”) and its holding
company, as described under the “Notice Regarding the Acquisition (subsidiary acquisition) of Italian Industrial Motor
Manufacturer Lafert Group and its Shareholding Companies” released on May 25, 2018.
DETAILS
1.

Reasons for Acquisition

Lafert, established in 1962 at San Donà di Piave, Venezia, Italy, is a provider and industrial innovator of customized ElectricMotors and Drives with strategic focus on the areas of Industrial Automation, Energy Saving and Wind Power. Lafert excels
in supporting its customers to improve performance and achieve environmentally friendly and energy efficient operation.
Also, Lafert has its own state-of-art R&D capability to offer a unique solution to the wide range of industrial customers andproduces over 90% of non-standard products to meet customers’ specifications.
With the acquisition of Lafert, SHI will be able to reinforce its strategic position in the electric motors industry andmachineries electrification. Both SHI and Lafert are expected to expand the product portfolio and to service a wide range ofcustomers with more comprehensive set of solutions. The Company plans to utilize the technologies derived from Lafert’s
research and development activities into its products, with the aim to achieve business expansion in such areas as electricmotors, gear motors and servomotors.
2.

Summary of Subsidiaries Being Transferred

Lafert S.p.A.
(1)

Name

Lafert S.p.A.

(2)

Address

J.F. Kennedy, 43 30027 San Donà di Piave - Venezia, Italy(3)

Name and Title ofReprensentative

Chairman, Luca Trevisiol(4)

Business Operations

Manufacturer and distributor of electric motor and electric geared equipment(5)

Paid-Up CapitalEUR 3,483,872(6)

Date of Establishment

October 25th, 1962

(7)

Major Shareholders andShareholdings(8)

9FIN S.r.l. (25%), 3FIN S.r.l. (25%)

Relationship Between

Capital Ties

Not Applicable

Subject Company andPersonnel Ties

Not ApplicablePublicly-Traded

Transactional Ties

Not Applicable1Company(9)

Financial Performance and Condition of the Subject Company for the Most Recent Three Year Period(in JPY million, otherwise specified)Accounting Period

Period Ending

Period Ending

Period Ending

December 2015

December 2016

December 2017

Net Assets

2,672

3,280

3,949

Total Assets

14,004

14,735

15,794

Sales

18,17718,066

19,670Operating Income

1,409

1,408

1,305

882

875

889

Net Income for the Period
9FIN S.r.l.
(1)

Name

9FIN S.r.l.

(2)

Address

San Donà di Piave (VE) - via Cesare Battisti, n. 45(3)Name and Title ofReprensentative

Director: Andrea Novello(4)

Business Operations

Shareholding company(5)

Paid-Up Capital

EUR 100,000(6)Date of Establishment

March 01, 2006

(7)

Total Assets

EUR 2,309,000(8)Net Assets

EUR 2 ,277,000(9)Major Shareholders andShareholdings

Not Disclosed

Relationship Between

Capital Ties

Not Applicable

Subject Company andPersonnel Ties

Not ApplicablePublicly-Traded

TransactionalCompanyTies

(1)

Name

3FIN S.r.l.

(2)

Address

San Donà di Piave (VE) - via Tintoretto, n. L

(3)

Name and Title of

Director: Fabrizio Trevisiol

Reprensentatives

Director: Luca Trevisiol(4)

Business Operations

Shareholding company(5)

Paid-Up Capital

EUR100,000(6)Date of Establishment

March 01, 2006

(7)

Total Assets

EUR 3 ,651,000(8)Net Assets

EUR 3 ,651,000(9)Major Shareholders and(10)Not Applicable

3FIN S.r.l.

Shareholdings(10)

Not Disclosed

Relationship Between

Capital Ties

Not Applicable

Subject Company andPersonnel Ties

Not ApplicablePublicly-Traded

TransactionalCompanyTies

Not Applicable2

3.

Number of Shares Being Acquired and Acquisition Price

Lafert S.p.A.
(1)

Acquired shares

870,968 shares(2)

Acquisition Price

JPY 7,093 million *1(1)Acquired shares

100.0%*2(2)Acquisition Price

JPY 7,093 million *1(1)Acquired shares

100.0%*2(2)Acquisition Price

JPY 7,171 million *1

9FIN S.r.l.

3FIN S.r.l.

*1 Total acquisition price is EUR 166.61 million (JPY 21,356 million) and an earn-out of up to EUR 6 million (JPY 769 million)
may be paid additionally depending on the financial outcome for the calendar years 2019 or 2020
*2 Shown as the equity ratio because the company is a limited company under Italian corporate law.
4.

Key Timeline of Transaction(1) Date of Resolution at a Board of Directors Meeting

May 25, 2018

(2) Date of Signing the Equity Purchase Agreement

May 25, 2018(3) Execution Date of Share Transfer

June 25, 2018

5.

Future Outlook

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

3