Regarding Major Organizational Changes (Effective April 1, 2026)

Sugino Machine Co., Ltd. (Namerikawa City, Toyama Prefecture) will implement major organizational changes effective April 1st of this year.

1. Purpose of Organizational Change

We will reorganize our company based on the medium-term management plan "Vision for 2029," which was formulated to enable us to conduct business in response to various changes and demands, such as the declining population in Japan, global geopolitical fluidity, DX (Digital Transformation), GX (Green Transformation), and SDGs (Sustainable Development Goals).

Our company, which celebrated its 90th anniversary in March of this year, will, under the new organizational structure, strive to develop new technologies and expand businesses that "only Sugino Machine can do" in order to fulfill our mission of "contributing to the world through technology" in 2036, our 100th anniversary, and for the next 100 years beyond. We will further evolve and deepen our "Glocal Niche Leader Strategy," which involves fighting globally while rooted in a regional Japanese city and aiming to be a top player in niche markets.

2. Main Changes

The structure will change from the previous five headquarters (Management Planning Headquarters, Administration Headquarters, Legal & Intellectual Property Headquarters, Quality Assurance Headquarters, Procurement Headquarters) and three product-specific business divisions (Precision Machinery Business Headquarters, Plant Equipment Business Headquarters, RI Business Division) until fiscal year 2025, as follows:

1. Establishment of new DX Headquarters, Development Headquarters, and Overseas Business Division

2. Reorganization of the three product-specific business divisions into Precision Machinery Division, High-Pressure Equipment Division, and PRI (P.R.I.) Division, according to business format

3. Objectives of Each New Organization

■DX Headquarters

Established to respond to the rapidly advancing global DX, integrating existing internal DX functions and expanding them externally. By connecting systems, data, operations, equipment, and products, and by transforming business processes, improving productivity, and proposing solutions to customers across group companies, we will accelerate the achievement of our medium-term management plan.

■Development Headquarters

This division will maintain and develop the "super technology" that is the foundation of "Sugino Machine, needed by the world," leading to new products and businesses. It will also oversee development projects across all group companies, promoting technology sharing, enhancing capabilities, and fostering human resources.

■Overseas Business Division

This division aims to develop overseas business with a global perspective, aligning the group's direction by formulating and implementing overseas strategies, developing overseas human resources, and conducting market research.

■Precision Machinery Division

Mainly in the precision machining field of machine tools, this division offers a wide range of products and solutions, including machining centers, robots, drill units, high-pressure water cleaning machines, and special tools, responding to DX, GX, SDGs, and other demands.

■High-Pressure Equipment Division

This business division specializes in products utilizing "ultra-high pressure water," Sugino Machine's core technology. By further evolving "ultra-high pressure water" technology, we will provide products and services needed by markets related to GX and SDGs, such as hydrogen, batteries, bio, and recycling.

■PRI Division

This division was reorganized from two departments that have broadly addressed societal issues, such as various equipment essential for nuclear power generation and nuclear fusion, and infrastructure inspection and automation equipment. We aim to make new contributions to society by leveraging the "seeds that only Sugino Machine possesses" that we have cultivated over the years.

<Company Overview>

■Company Name: Sugino Machine Co., Ltd.

■Representative: Takeshi Sugino, President and Representative Director

■Head Office Location: 2880 Kuriyama, Namerikawa City, Toyama Prefecture 936-8577

■TEL: (076)477-2555 (main)

■Founded: March 1, 1936

■URL: https://www.sugino.com/