November 30, 2022
To whom it may concern,
Company name: Sumitomo Heavy Industries, Ltd.
Representative: Shinji Shimomura, President and CEO(Code No. 6302 Tokyo Stock Exchange Prime)
Inquiry: Yoshitaka Shimamura, General Manager,
Corporate Communications Dept.
(TEL. 03-6737-2333)

Notice Concerning Additional Acquisition of Shares in a Consolidated Subsidiary to Make it aWholly Owned Subsidiary

We hereby announce that our Board of Directors has resolved, at a meeting held on November 29, 2022, toacquire additional shares of our consolidated subsidiary, Sumitomo Heavy Industries Construction Cranes Co.,
Ltd., in order to make it our wholly owned subsidiary.

1. Reason for acquisition of shares
We and Hitachi Construction Machinery Co., Ltd. (hereinafter, "HCM") merged the crawler crane businessesof the two companies in 2002 to establish what was then called Hitachi Sumitomo Heavy Industries
Construction Crane Co., Ltd. ("HSC") and which is currently Sumitomo Heavy Industries Construction
Cranes Co., Ltd. In March 2017, we acquired a portion of the shares of Sumitomo Heavy Industries
Construction Cranes owned by HCM, and since then we have focused on developing the crawler cranebusiness.
Meanwhile, competition in the industry has become increasingly severe, as competing manufacturers inJapan and overseas continue to pursue new mergers and acquisitions. In addition, the trend toward increased
lifting capacity and technological innovations specific to cranes, such as improvements in transportability,self-assembly, and work performance, have made it even more important to invest in product differentiation.
As part of our business strategy, we have entered into a share transfer agreement with HCM to acquire allof the shares of HSC held by HCM and make it our wholly owned subsidiary. The purpose is to grow andstrengthen the construction crane business, to reinforce cooperation related to the lifting business within ourgroup, and to solidify our Logistics & Construction Segment business, which includes the construction
machinery business.
2. Outline of the subsidiary to be wholly owned(1) Name

Sumitomo Heavy Industries Construction Cranes Co., Ltd.

(2) Location

9-3 Higashiueno 6-chome, Taito-ku, Tokyo1

(3) Representative's title andPresident Michikazu Okada

name(4) Description of business

Manufacture, repair and sale of construction machinery such as crawler cranes andrelated machinery and equipment. All incidental and related businesses.

(5) Capital

4 billion yen(6) Date of establishment

July 1, 2002

(7) Major shareholders andSumitomo Heavy Industries, Ltd. ("the Company") 66%

shareholding ratios

Hitachi Construction Machinery Co., Ltd. 34%(8) Relationship between theCapital

The Company has a 66% stake in Sumitomo Heavy Industries

Company and Sumitomo

relationship

Construction Cranes.

Heavy Industries

Personnel

One director and one corporate auditor have been appointed fromConstruction Cranes

relationship

the Company.

Business

There is a product sales relationship with Link-Belt Construction

relationship

Cranes.

(9) Financial results and financial position of Sumitomo Heavy Industries Construction Cranes for the last three years
Fiscal year

Year ended March 31,

Year ended March 31,

Year ended March 31,

2020

2021

2022

Net assets

18,871 million yen

18,996 million yen

19,315 million yen

Total assets

29,196 million yen

27,955 million yen

28,545 million yen

235,888.92 yen

237,456.05 yen

241,432.47 yen

Sales

36,380 million yen

31,475 million yen

36,479 million yen

Operating profit

2,787 million yen

1,303 million yen

912 million yen

Ordinary profit

2,788 million yen

1,314 million yen

934 million yen

Net profit

1,978 million yen

914 million yen

687 million yen

Net profit per share

24,659.33 yen

11,425.31 yen

8,585.38 yen

Dividends per share

9,750 yen

4,500 yen

3,375 yen

Net assets per share

3. Outline of the counterparty to the share acquisition(1) Name

Hitachi Construction Machinery Co., Ltd.

(2) Location

16-1, Higashiueno 2-chome, Taito-ku, Tokyo(3) Representative's title andRepresentative Executive Officer, President & CEO Kotaro Hirano

name(4) Description of business

Manufacture, sale, rental, and after-sales service of construction machinery,transportation machinery, environment-related products, etc.

(5) Capital

81,576.59 million yen(6) Date of establishment

October 1, 1970

(7) Net assets

380,067 million yen(8) Total assets

752,197 million yen(9) Major shareholders andHCJI Holdings, Ltd. 26.00%

shareholding ratiosHitachi, Ltd. 25.42%

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The Master Trust Bank of Japan, Ltd. (trust account) 16.01%(10) Relationship between theCapitalCompany and Hitachi

relationship

Construction Machinery

Personnel

Not applicableNot applicable

relationship
Business

Not applicable

relationship
Status of related

Not applicableparties

4. Number of shares to be acquired, acquisition price, and status of shares held before and after acquisition(1) Number of shares held

52,800 shares

before the acquisition(Number of voting rights: 52,800)(Percentage of voting rights ownership: 66.0 %)(2) Number of shares to be

27,200 sharesacquired(Number of voting rights: 27,200)(3) Acquisition price

7,322 million yen(4) Number of shares held

80,000 shares

after the acquisition(Number of voting rights: 80,000)(Percentage of voting rights ownership: 100.0%)

5. Schedule(1) Date of resolution at theNovember 29, 2022

Board of Directors meeting(2) Date of signing of the share

November 30, 2022

transfer agreement(3) Date of share acquisition

December 31, 2022 (planned)

6. Future forecasts
We expect this matter to have a negligible effect on our consolidated financial results, but will promptly
announce any significant impact should it become known.

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