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Sumitomo Electric Industries, Ltd. (President: Osamu Inoue; the “Company”) hereby announces that, at the Board of Directors meeting held today, it has resolved to acquire common stock of Sumitomo Riko Company Limited (President: Kazushi Shimizu; “SRK”) through a tender offer (the “Tender Offer”), with the aim of making SRK a wholly-owned subsidiary in accordance with the Financial Instruments and Exchange Act. In addition, regarding the tender offer announced by Daiwa House Industry Co., Ltd. (President: Hirotsugu Otomo; “Daiwa House”) for the common stock of Sumitomo Densetsu Co., Ltd. (President: Makoto Tani; “SEM”), aimed at making SEM a wholly-owned subsidiary of Daiwa House, the Company has decided to enter into a “Non-Tender Agreement” with Daiwa House, under which the Company will not participate in the tender offer, and to transfer all shares of SEM held by the Company to SEM through a “Share Buy Back” by SEM.

The Company’s basic philosophy is the “spirit of always contributing to the public benefit through business while striving to ensure mutual prosperity with our stakeholders.” In the “Sumitomo Electric Group 2030 Vision” announced in May 2022, the Company considers its “Purpose” to be “contributing to building a better society by pursuing Top Technology, using the integrated capabilities of the Sumitomo Electric Group (the “Group”).” The Company is committed to providing an extensive range of “products and services for the development of infrastructure and industries,” with the aim of realizing “living in safety and comfort on our green planet.”

SRK, whose core business is in the mobility field—one of the Company’s key focus areas—has established a leading position in automotive anti-vibration rubber, particularly among Japanese automobile manufacturers. Since 1942, SRK has been a consolidated subsidiary of the Company, and the Company has decided to further strengthen the direct capital relationship to realize greater synergies between the Company and SRK.

By making SRK a wholly-owned subsidiary, the Company expects to accelerate collaboration in the important area of CASE by enhancing joint development and expanding the lineup of products such as integrated harness modules, touch sensors, and EV battery-related products. SRK possesses unique technologies in polymers and materials, and synergies are expected not only in the mobility field but also in the enhancement and expansion of technological and R&D capabilities.

Furthermore, by making SRK a wholly-owned subsidiary, the Company will further reinforce its pursuit of Top Technology and the Group’s integrated power, aiming to expand as a “Global Mobility Supplier” that provides one-stop value in the mobility field.

SEM is a comprehensive engineering company whose core business is electrical equipment construction. Since the Company’s capital participation in Taiyo Densetsu Kogyo Co., Ltd., founded in 1950, in 1951, and through the company’s name change to Sumitomo Densetsu Co., Ltd. in 1985, the Company has maintained a long-standing relationship with SEM.

Meanwhile, the Company has sincerely reconsidered the capital relationship to further enhance corporate value for both the Group and SEM, aiming to maximize the Group’s integrated power.

In this context, Daiwa House proposed that SEM’s engineering and strengths in human resources could be further leveraged in relation to the diverse value chains that create social infrastructure and living culture developed by the Daiwa House Group. After consideration by SEM, the Company has concluded that an integration between SEM and Daiwa House will contribute to further enhancement of SEM’s corporate value, and has decided to transfer its shares.

Furthermore, the Company, Daiwa House, and SEM have entered into a business alliance agreement and have agreed to maintain the favorable business relationship that has existed to date even after the transfer of shares, and to consider future collaboration among the three parties.

The Company will strive to further enhance the overall corporate value of the Group and pursue mutual prosperity with all stakeholders by making SRK its wholly-owned subsidiary and transferring its shares in SEM, thereby further strengthening the Group’s integrated power.



＜Overview of SRK＞
President: Kazushi Shimizu
Capital stock: 12.1 billion yen
Revenue: 633.3 billion yen (FY2024)
Business profit: 43.4 billion yen (FY2024)
Number of employees: 25,617 (as of end of March 2025)
Headquarters: Nakamura-ku, Nagoya
Main products: Automotive products (anti-vibration rubber, hoses, sound proofing products, products for fuel cell vehicles, seal products), General industrial products (precision resin blades and rolls, anti-vibration rubber for railroad trucks, housing, bridges, high pressure hoses, feeder hoses)

＜Overview of SEM＞
President: Makoto Tani
Capital stock: 6.4 billion yen
Revenue: 203.6 billion yen (FY2024)
Operating profit: 17.9 billion yen (FY2024)
Number of employees: 3,547 (as of end of March 2025)
Headquarters: Nishi-ku, Osaka
Main businesses: Power transmission works, information & communications works, plant & HVAC works, general electrical works, others