January 31, 2013
To whom it may concern:
Company
Representative::

CodeContact::

Phone:

Sumitomo Heavy Industries, Ltd.
Yoshinobu Nakamura
President and Chief Executive Officer6302
Hideo Oshima
General Manager, Corporate
Communications Department+81-3-6737-2333

Announcement Regarding Transfer of Business Operation to Our Subsidiary
Company Due to Divestiture
We hereby announce that a resolution was reached at the meeting of the Board ofDirectors of Sumitomo Heavy Industries Co., Ltd., (hereinafter referred to as “SHI”) onJanuary 31, 2013, to divest our Logistics and Parking System Division, to merge byabsorption to Sumitomo Heavy Industries Engineering and Services Co., Ltd., our wholly
owned subsidiary (hereinafter referred to as “SHI Engineering & Services”).
Furthermore, since this divestiture is a Small Scale Reorganization, with which business
operations are transferred to a wholly owned subsidiary, portions of the disclosure items, aswell as descriptions, have been abbreviated in this disclosure.
Description
1. Purpose of corporate divestiture
SHI carries out logistics system and mechanical parking system business operationsin the company’s Logistics and Parking System Division. The logistics system businesshandles primarily general logistics systems for the domestic market, as well as film rolltransport systems and the like, whereas the mechanical parking business handles
mainly underground parking for offices and residential buildings in the implementationof business operations. SHI Engineering & Services, on the other hand, carries out
business operations primarily with material handling systems and relevant after saleservices.
However, the market environment of material handling systems and logistics
systems, as well as mechanical parking systems, are changing, due to such reasons
as restraints on new facility investments in the domestic market. It was therefore
determined that this corporate divestiture must be implemented as an urgent necessity,in order to continue and expand these business operations, with the consolidation ofour material handling business and amalgamation of technologies and skills of bothcompanies, while optimally allocating limited management resources and building anorganizational framework that operates efficiently.
2. Summary of corporate divestiture(1) Schedule of divestiture
Divestiture contract approved by the Board of Directors: January 31, 2013
Divestiture contract execution date:

January 31, 2013

Divestiture contract approved at the General Meeting of Shareholders (SHIEngineering and Services):

March 22, 2013 (planned)

Divestiture date (effective date):

April 1, 2013 (planned)(2) Method of divestitureThis will be an absorption type of divestiture with SHI as the divested corporation andSHI Engineering & Services as the surviving company. This divestiture will beconducted by SHI without any other shareholders meeting for approval, inaccordance with Section 3 under Article 784 of the Corporation Law that provides
stipulations on Small Scale Reorganization.
(3) Quota of shares
The number of new shares issued by SHI Engineering & Services, in connection withthis divestiture, will be one share of common stock and that share in its entirety will beallotted to SHI.
(4) Capital increase or decrease due to divestiture
Increases or decreases in capital will not occur due to this divestiture(5) Handling of new share subscription rights and bonds with share option of divested
company
SHI has not issued any new share subscription rights or bonds with share options.
(6) Rights and obligations transferred to surviving company
The assets and liabilities, as well as the contracts pertaining to the applicablebusiness operations subject of this divestiture, which are deemed necessary for SHIEngineering & Services to execute business operations subject of this divestiture, as
well as associated rights and obligations, will be transferred.
(7) Prospects on performance of obligations
It has been determined that no issues exist, relating to the probability of SHI and SHIEngineering & Services carrying out obligations, to be executed from the day on
which this divestiture takes effect.

3. Summary of companies of divestiture(1) Business nameSumitomo Heavy Industries Co.,
Ltd., (divested corporation)* Current as of January 31,2013(2) Businessdescription(3) Establishment date(4) Head officelocation(5) Representativeofficer(6) Capital(7) Total number ofoutstanding shares(8) Fiscal year end(9) Major shareholders
and shareholding
ratiosManufacture and sale of various
types of industrial machinery,ranging from general industrial
machinery to precision control
systems.
November 1, 1934
2-1-1 Osaki, Shinagawa-ku,Tokyo, Japan
Yoshinobu Nakamura, President
and CEOJPY30.872 million
614,527,405 shares

March 31
Japan Trustee Services Bank,Ltd., (trust account)
7.5%
T h e Ma s te r Tru s t B a n k o f
Japan, Ltd., (trust account)
7.0%Japan Trustee Services Bank,Ltd., (9 trust accounts)
4.2%
Sumitomo Life Insurance
Company
3.5%
Sumitomo Mitsui Banking
Corporation
2.5%(10) Operating results and financial status
Sumitomo Heavy Industries Co.,
Ltd., (consolidated)

Sumitomo Heavy Industries
Engineering and Services Co.,
Ltd., (surviving company)* Current as of January 31,
2013
Design, manufacture and sales,
as well as modifications, repairs,
inspections and maintenance ofmaterial handling systems andgeneral industrial machinery.
December 1, 1999
2-1-1 Osaki, Shinagawa-ku,
Tokyo, Japan
Katsuhide Yokota, President
and CEO
JPY480 million
9,600 shares
March 31
Sumitomo Heavy Industries Co.,
Ltd.,
100%

Sumitomo Heavy Industries
Engineering and Services Co.,Ltd.
JPY16,513 million
JPY29,448 million
JPY1,720,077.36
JPY32,734 million
JPY5,012 million

Net assets
JPY282,145 million
Total assets
JPY691,841 million
Net assets per share
JPY454.43
Net sales
JPY624,100 million
Operating profit andJPY47,135 million
lossOrdinary profit andJPY44,619 million
JPY5,131 million
loss
Current net income
JPY19,492 million
JPY3,040 million
Current net income
JPY31.75
JPY316,620.90
per share
Operating results and financial status information, current as of March 31, 2012.

4. Description of business operations to be divested(1) Description of business operation to be divested
Logistics system and mechanical parking system business operations, belonging tothe Logistics and Parking System Division.
(2) Net sales of divested business operations, as of fiscal term ending March 2012
Divested business
SHI record (b)Ratio (a/b)
operations (a)Net sales
JPY12,678 million
JPY208,526 million
6.1%(3) Amount of transferred assets and liabilities (predicted at time of divestiture)
Assets subject to transfer:

Approx. JPY2,200 million

Liabilities subject to transfer:

Approx. JPY600 million

5. Situation of listed company following corporate divestiture
The corporate name, address, as well as the names and titles of the representative
officers or capital and fiscal term ending date, will not change due to the divestiture.
6. Predicted impact on business performance, due to divestitureSince the scale of business operations subject to the divestiture is about 6% of theoverall sales for SHI, as described in Item (2) of Section 4 above, any impact on thesingle corporate entity will be negligible. Furthermore, since SHI Engineering &Services is a wholly owned consolidated subsidiary, hardly any impact will be felt on
the consolidated business performance arising from this divestiture.
End of document