March 24, 2025

One of our Group Companies, Sumitomo Heavy Industries Material Handling Systems Co., Ltd. (Head Office: Shinagawa-ku, Tokyo; Representative Director and President: Shinya Saitoh; a fully owned subsidiary of Sumitomo Heavy Industries, Ltd.; hereinafter “SHI-MH”), was subject to an on-site inspection by the Japan Fair Trade Commission (hereinafter the “JFTC”) on September 12, 2023, on suspicion of violating the Antimonopoly Act (Unreasonable Restraint of Trade) with regard to mechanical parking facility deals, and has since provided full and sincere cooperation to the investigation conducted by the JFTC.
Today, SHI-MH received a cease and desist order and a surcharge payment order from the JFTC under the Antimonopoly Act in regard to the installation work of horizontal circulation separable mechanical parking facilities, and therefore, we would like to inform you of the following:
We would like to once again extend our deepest apologies for causing concern and inconvenience to our shareholders, customers, and business partners, and we will strive in the future to further ensure full compliance.

1. Outline of the cease and desist order
SHI-MH was accused of performing actions that violated Article 3 of the Antimonopoly Act (Prohibition of Unreasonable Restraint of Trade) and was ordered to confirm the termination of said actions and take the necessary measures to prevent them from reoccurring in the future.

2. Outline of the surcharge payment order
Surcharge amount payable: \199,950,000.
As a result of SHI-MH’s request to the JFTC for the application of the Leniency Program, the program was applied and the surcharge was reduced by 30%.

3. Future measures
Our Group is striving to further reinforce the competition laws compliance system under the SHI Group Basic Policy on Compliance with the Competition Laws by establishing the Competition Laws Compliance Rules, disseminating the code of conduct and guidelines for competition laws compliance, operating the rules for contacting competitors, implementing stricter screening for bid participation and submission of quotation, implementing stricter screening for the appointment of sales agents, and conducting regular training and regular audits for competition laws compliance.
We view the risk of violating the competition laws as a major risk for our Group. We will strive to further improve our compliance level by enhancing the monitoring of major risks by the Risk Management Committee and regularly reporting to the Board of Directors.
Our Group will continue to implement these measures in the future in an effort to further strengthen and enhance the compliance system and take preventive measures.

4. Impact on earnings results
The amount stated above in Item 2 has already been incorporated in the FY2024 Consolidated Financial Results.