#SumitomoHeavyIndustries

In March 2026, 659,500 shares of treasury stock were acquired on the Tokyo Stock Exchange for a total acquisition price of JPY 3,453,610,000. The acquisition period was from March 2 to March 31, 2026.

The voting rights ratio in the Notice of Change in Major Shareholders announced on March 2, 2026, was corrected, revising the pre-change ratio from 10.25% to 10.50%, and the post-change ratio from 9.23% to 9.46%.

We announce that as of February 25, 2026, the voting rights holding ratio of Silchester International Investors LLP decreased from 10.25% to 9.23%, and the number of shares owned decreased from 12,596,100 shares to 11,346,100 shares.

For the fiscal year ending December 2025, consolidated net sales amounted to 1,066,881 million yen (0.4% decrease YoY), operating income was 51,482 million yen (6.6% decrease YoY), and net income attributable to owners of parent was 30,937 million yen (300.7% increase YoY). A share buyback program and subsidiary share transfer were also approved.

Sumitomo Heavy Industries, Ltd. will conduct treasury stock acquisition through market purchase from March 2 to November 30, 2026, with an upper limit of 10 billion yen and 4 million shares (3.32% of total issued shares) to improve capital efficiency and enhance shareholder returns.

In fiscal 2026, a voluntary retirement incentive program will be implemented targeting a workforce reduction of approximately 500 employees within the domestic group. Costs related to additional payments are expected to be 2.5 to 3 billion yen, with an anticipated annual cost reduction effect of 5 billion yen.

Sumitomo Heavy Industries, Ltd. has resolved to transfer all 17,397,200 shares of its consolidated subsidiary Shin Nippon Machinery Co., Ltd. to Torishima Pump Mfg. Co., Ltd. for 14.9 billion yen, with the transfer execution scheduled for July 1, 2026.

Sumitomo Heavy Industries Conveyance Systems’ mechanical parking business (2024 sales of 7,090 million yen) will be succeeded by IHI Conveyance Machinery on November 1, 2026, via an absorption-type company split. No capital increase or decrease is expected, and the impact on performance is anticipated to be minor.