This information is a brief summary of English translation of a press release made in Japan on April 10, 2017 by Sumida Corporation regarding funding by way of public offering of 2,562,000 new shares including overallotment option to issue additional 938,000 new shares. At the same time, it was announced that a major shareholder offered to sell 3,700,000 Sumida Corporation’s common shares through the underwriters. However, this does not constitute an offer of any securities for sale outside of Japan. 

[Purposes of this Funding] 

Currently, Sumida is in the final year of the mid-term business plan stage II (2015-2017), undertaking the various challenges for further growth, one of which is to improve cost competitiveness through increased production capacity. In pursuit of this challenge, Sumida has decided to finance the capital expenditures by issuance of new shares. With this equity finance we will be able to make strategic capital investments in our production facilities mentioned below preparing for further growth in the mid-term business plan stage III (2018-2021) as well as to improve our financial strength. 

1. Increasing production capacity with automated production lines in satellite plants in China where production needs for the automotive products in addition to the consumer electronics products are on the rise. 

2. Expanding No.2 plant in Vietnam to transfer production from China plants to establish optimal production system in Vietnam. 

3. Expanding production capacity in Romania and Slovenia to accommodate increasing production demands for EV and HEV automotive products. 

4. Making capital investments in R & D facilities in Germany to deal with speed of developments and production demanded by the customers. 

Sumida will continue to work hard on maximizing the interests of our shareholders and other stakeholders through the enhancement of corporate value with every possible effort.