November 16, 2017
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+81-3-6737-2331

Notice Regarding Decision to Accept the Settlement Recommendation in the Lawsuit
This is to notify that Sumitomo Heavy Industries, Ltd. (the “Company” or “SHI”) has decided to accept the Court’s
settlement recommendation (the “Settlement Recommendation”), regarding the lawsuit that was previously
disclosed in the “Notice Regarding the Filing of a Lawsuit (Appeal) Against the Company,” dated July 15, 2016.
1. Historical Background from the Filing of the Lawsuit to the Acceptance of the Settlement Recommendation
As previously disclosed in the “Notice Regarding the Filing of a Lawsuit (Appeal) Against the Company,” dated
July 15, 2016, an appeal was filed with the Osaka High Court against the Company by the City of Kyoto (the“City”) on June 10, 2016.
Considering all effects on its business comprehensively, the Company has decided to accept the Settlement
Recommendation. It is expected that, if the City also accepts the Settlement Recommendation and thesettlement is reached, the lawsuit at the Osaka High Court will end.
2.

Counterparty of the Settlement Recommendation(1) Name:
The City of Kyoto(2) Address:
488 Kami-Honnoji-Mae-Cho, Oike-agaru, Teramachi-dori, Nakagyo-ku,
Kyoto city, Kyoto, Japan(3) Name of Representative:
Mr. Daisaku Kadokawa, Mayor of the City of Kyoto

3.

Summary of the Settlement Recommendation
The Company shall pay a settlement amount of JPY 15,380,682,685 to the City. The City shall waive any otherclaims against the Company, and the Company shall waive its counterclaim against the City.

4.

Future Outlook
The impact on the Company’s financial performance in the fiscal year 2017 (April 1, 2017 to March 31, 2018)has been reflected in the forecast shown in the “Notice Regarding Revision to Full-Year Financial Forecast andPosting of an Extraordinary Loss” that will be separately disclosed today.
END

(Units: millions of yen)
Net sales

Operatingincome

Ordinary
incomeNet income Net income perattributed toshare(yen)shareholders of
the parentcompany

Consolidated forecast for the current fiscal year(fiscal year ending March 31, 2018)

780,000

60,00059,00028,000228.48

Consolidated results for the previous fiscal year
(fiscal year ended March 31, 2017)674,328

48,431

48,27433,613274.24<References: Material made available to the public in the past>
http://www.shi.co.jp/english/info/2013/6kgpsq0000001jv0-att/6kgpsq0000001jvi.pdf
http://www.shi.co.jp/english/info/2013/6kgpsq0000001jy0-att/6kgpsq0000001jyi.pdf
http://www.shi.co.jp/english/info/2013/6kgpsq0000001kg0-att/6kgpsq0000001kgi.pdf
http://www.shi.co.jp/english/info/2013/6kgpsq0000001ko0-att/6kgpsq0000001koi.pdf
http://www.shi.co.jp/english/info/2014/6kgpsq0000001kw0-att/6kgpsq0000001kwi.pdf
http://www.shi.co.jp/english/info/2014/6kgpsq0000001lj0-att/6kgpsq0000001lji.pdf
http://www.shi.co.jp/english/info/2016/6kgpsq0000001nua-att/6kgpsq0000001nus.pdf
http://www.shi.co.jp/english/info/2016/6kgpsq0000001nz0-att/6kgpsq0000001nzi.pdf
http://www.shi.co.jp/english/info/2016/6kgpsq0000001o80-att/6kgpsq0000001o8i.pdf