April 28, 2014
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+81-3-6737-2333

Notice Regarding the Strengthening of the Relationship with CNH Industrial N.V.
Sumitomo Heavy Industries, Ltd. (hereinafter referred to as “SHI” or the “Company”) today passed a resolution for Sumitomo(S.H.I.) Construction Machinery Co., Ltd. (hereinafter referred to as “Sumitomo Construction Machinery”), a wholly-ownedsubsidiary of SHI, to enter into a basic agreement regarding the licensing of technologies, and other matters with CNH Industrial
N.V. (hereinafter referred to as “CNHi”) in order to strengthen and expand the current partnership between the two companies.
Details of this agreement are outlined below:
1. Purpose and Reasons for the Technical Tie-Up
For over 20 years commencing in 1992, Sumitomo Construction Machinery has been supplying CNHi with CNHi’s CASE branded
hydraulic excavators in models ranging from 7 to 80 tons as an OEM manufacturer. With this new tie-up that is the subject of thispress release, the two companies have reached a basic agreement to strengthen its partnership for hydraulic excavators sold by
CNHi through its own distribution network.
More specifically, the new tie-up will result in Sumitomo Construction Machinery and CNHi extending its OEM contract. In addition,
the new agreement will result in the finalization of new contracts relating to technology licensing and main component supply forhydraulic excavators between the two companies. The contract period has been set as seven years to ensure that there is time tostrengthen the already formidable relationship between the two companies. As a consequence, CNHi will continue to receive astable supply of OEM products from Sumitomo Construction Machinery, and at the same time, CNHi will be able to manufacture
products in models ranging from 13 to 35 tons that utilize Sumitomo Construction Machinery technology at its own plant. Start ofproduction of the new localized models is planned around mid-2016. These products can then be sold all across the globe throughthe distribution network of both companies.
Sumitomo Construction Machinery and CNHi’s relationship will reach a new stage as both companies pursue synergies throughthis agreement. By maintaining and building-on the strong relationship between the two companies, they will aim to be the ones
left standing in the ever intensifying battle for market share in the construction machinery field.
Now more than ever in the hydraulic excavator market, there is an increasing need for manufacturers to respond to stricter
emission regulations as well as demand from customers for more innovation in the areas of performance and fuel efficiency of themachinery itself. Competition is also intensifying among manufacturers to be the first to develop new technologies including thosethat adapt to the new information age into the design of hydraulic excavators. Sumitomo Construction Machinery’s competitive
advantages in the field of product development and product features including such areas as fuel efficiency and operational
performance, and the ability for each company to maximize the synergy effects arising from this, form the backdrop of thisagreement. Through this, each company will aim to develop and grow their individual businesses.
2. Summary of Technical Tie-Up(1) Contract Agreement Date: April 28, 2014
(2) Details of Technical Tie-Up• Extension of OEM supply period1••Provision of key technologies relating to the manufacturing of hydraulic excavators (component specifications,manufacturing technology, etc.)
Provision of core parts (hydraulic parts, etc.)(3) Summary of Subject Companies (as of March 31, 2014)(1) Company Name
(2) Business Description(3) Date of Establishment(4) Address(5) Representative(6) End of Fiscal Year
(7) Major Shareholder(s)(8) Sales
3.

Sumitomo (S.H.I.) Construction Machinery Co.,Ltd.
Manufacturing, sales and after-sale servicing ofconstruction machinery (hydraulic excavators,road machinery, etc.)
October 1986
2-1-1 Osaki, Shinagawa-ku
Tokyo 141-6025
JapanMikio Ide
President and CEO
March 31
Sumitomo Heavy Industries, Ltd. – 100%
JPY117.4 billion (Sumitomo Construction
Machinery Group as at the end of FY2012)

CNH Industrial N.V.
Manufacturing, sale and after-saleservicing of agricultural and construction
equipment, commercial vehicles, engines
September 2013 (Merger between Fiat
Industrial S.p.A. and CNH Global N.V.)
Cranes Farm Road
Basildon, Essex SS14 3AD
United Kingdom
Richard Tobin
CEO and Brand President of Case and New
Holland Construction
December 31
Exor S.p.A – 27.2%
25,778 milliom Euro(FY2013)

Future Outlook
The impact of this agreement on current year financial performance is anticipated to be minimal.
END2