Dear business partners,
November 11, 2022
Sumitomo Precision Products Co., Ltd.
Representative Director and President
Hideaki Takahashi

Tender Offer for the Company’s Shares by SUMITOMO CORPORATIONSUMITOMO CORPORATION, a major shareholder and the largest shareholder of the Company,
announced today that it will conduct a tender offer (the “Tender Offer”) and a series of subsequent
procedures (the “Transaction”) with the aim of privatizing the Company and making it its wholly owned
subsidiary.
At the same time, at a meeting of the Board of Directors held today, the Company also resolved to approve
the Tender Offer by SUMITOMO CORPORATION and recommend that our shareholders tender theirshares in the Tender Offer. We would like to inform our business partners of the outline of the Transactionin this document.

1.

Outline of the Transaction
The purpose of the Tender Offer by SUMITOMO CORPORATION for all of the outstanding commonshares of the Company is to privatize the Company’s shares and to make the Company a wholly
owned subsidiary.
Therefore, if the Tender Offer is successful, through a series of subsequent procedures, the Company’s
shares will be delisted from the Standard Market established by the Tokyo Stock Exchange, Inc., asthey fulfil the delisting criteria.

2.

Background and Process1) Medium- to long-term management strategy of the Company
The Company was established in January 1961 as a successor company to Sumitomo Metal Industries,
Ltd. (currently Nippon Steel Corporation) when the aerospace equipment business was spun off fromSumitomo Metal Industries, Ltd. At present, in the three business segments of “Aerospace Business,”“Industrial Equipment Business,” and “ICT Business,” we are contributing to solving social issues
with our one and only precision technology based on Sumitomo’s business spirit and corporate
philosophy, aiming to achieve corporate management that meets the expectations of all stakeholders.
In formulating the Mid-Term Business plan for FY 2021-23, we have organized the roles expected ofeach product in the “Aerospace Business,” “Industrial Equipment Business,” and “ICT Business”
segments, and developed a business portfolio. Based on this business portfolio, we have designatedthe “Aerospace Field,” “Thermal Management Field,” “Precision Hydraulic Equipment Field,” and“ICT Field” as our four business fields of our profit base, with the “Thermal Management Field” and“ICT Field” positioned as our business expansion and strategic fields. In FY 2021, the first year of ourMid-Term Business plan, we began shifting our business foundation to these business expansion andstrategic fields and have been promoting the development of technologies and new products in theseareas. We intend to accelerate our efforts to achieve “sustainable growth” and “medium- to long-term
enhancement of corporate value” by making greater use of our domestic and overseas networks,
human resources, and funds than ever before.
2)

Reasons for the Company’s endorsement of the Tender Offer
The Company has determined that becoming a wholly owned subsidiary of SUMITOMOCORPORATION is the best way for the Company to enhance its corporate value. This will enable thefollowing five objectives to be achieved: (i) explore new products and technologies through
SUMITOMO CORPORATION’s global network and utilize SUMITOMO CORPORATION’s
marketing capabilities; (ii) make various investments to accelerate growth backed by SUMITOMOCORPORATION’s capital injection; (iii) strengthen the Company’s management and the capabilities
of officers and employees through mutual exchange of personnel with SUMITOMO CORPORATION
and the injection of corporate governance knowledge from SUMITOMO CORPORATION; (iv)consider and execute a portfolio shift from a medium- to long-term perspective; and (v) reduce costs
and operational burdens dedicated to maintaining the Company’s listing and thereby transfer
management resources to business divisions (to accelerate business growth).

3.

Management Policy after the Transaction
Even after the Transaction, SUMITOMO CORPORATION and the Company will continue to achievethe Mid-Term Business plan that is currently in progress, under the basic policy that the Company will
manage itself autonomously and independently with maintaining the current management system. The
entire management team will be more aware than ever of their roles and responsibilities, and will leadthe way for the growth of the Group.
The publicity and social credibility that the Company has enjoyed as a result of listing will bemaintained even after delisting, and delisting will not impede our future business operations. The
Company does not expect major changes in the commercial distribution channel due to thisTransaction.
We believe that the Transaction will provide an opportunity for the development and expansion of ourbusiness, and we would like to ask all of our business partners for your continued support.
Sincerely