Agreement to Transfer Sumitomo Corporation’s Stakes in SML Isuzu Limited, a Manufacturer and Distributor of Trucks and Buses in India

Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Shingo Ueno) hereby announces that it has reached an agreement to transfer its stakes in SML Isuzu Limited (Head Office: India; Managing Director and Chief Executive Officer: Yasushi Nishikawa; hereinafter "SML-I"), a company that manufactures and sells trucks and buses in India. Sumitomo Corporation holds 43.96% shareholding in SML-I (“Sumitomo Corporation’s Stake”). Sumitomo Corporation’s Stake will be transferred to Mahindra & Mahindra Limited (Head Office: Mumbai, India; Group CEO & MD: Dr. Anish Shah; hereinafter "M&M") which is a flagship company of the Mahindra Group. In a separate agreement, M&M has also agreed to purchase additional 15.00% shareholding in SML-I from Isuzu Motors Ltd. (Head Office: Yokohama, Kanagawa; President & COO: Shinsuke Minami). The transfer of stakes in SML-I to M&M is expected to be finalized within 2025, subject to the completion of necessary regulatory approvals including from the Competition Commission of India and procedures required under applicable laws and fulfilment of other mutually agreed terms.

Mahindra Group is one of India’s largest multinational federation of companies with interest in several business areas including manufacture and sale of trucks and buses. The Mahindra Truck and Bus business of M&M and SML-I are synergistic and the introduction of M&M as the new promoter of SML-I is expected to help deliver enhanced value to customers by driving innovation while contributing to sustainable and efficient logistics solutions. Based on this synergy, it was deemed optimal to transfer Sumitomo Corporation’s Stake in SML-I to M&M for the long-term growth of SML-I and all its stakeholders.

Sumitomo Corporation's Medium-Term Management Plan 2026 announced in May 2024 calls for business portfolio transformation, and this transaction is part of that strategy. The impact of this stake transfer on Sumitomo Corporation's performance will be reflected in the full-year earnings forecast for fiscal year 2025, which will be disclosed at a later date.