Global Solutions for Business - 43

Infrastructure | Business Focus

Supplying Equipment for Construction and Mining Industries
One of the key components to the success of any construction job or excavation site is the equipment
it uses and the management of those assets. Infrastructure projects require reliable equipment to
ensure everything runs smoothly and on budget.
In North America, we have been helping companies with their procurement of construction equipment for more than four
decades, through our subsidiaries SMS Construction and Mining Systems ("SMS-C") in Canada and SMS International
Corporation ("SMS-I") in the U.S.
SMS-C and SMS Equipment
SMS-C was originally established in 1972 as a wholesaler of Komatsu products (formerly known as Komatsu Canada Limited). In the 1990s,
we acquired, through SMC-C, Komatsu equipment dealers across Canada and entered the retail market. As the business grew and expanded,
we soon emerged as an overall market leader in construction equipment business, a position we still enjoy today.
The SMS-C group has three different operations; SMS Equipment Inc. (SMS-E), which is the largest Komatsu dealer in North America;
SMS Rents, which is a general equipment rental house; and H&R Construction Parts & Equipment, which deals with used parts.
The annual sales volume of this combined group in 2012 was over 1.6 billion Canadian dollars.
Much of equipment consistently required for building and repairing infrastructure projects in Canada is supplied by SMS-E.
Three Canadian equipment dealers, Federal Equipment, Coneco Equipment, and Transwest Mining Systems merged in 2008
to become SMS-E. Collectively, their roots date back as far as 1952, and the cumulative experience of these three companies
results in some of the most creative, unique, and efficient solutions.
SMS-E currently holds a unique position in the industry as a one-stop supplier of the most complete range of equipment, and
offers only world-renowned brand names that meet standards of reliability and productivity. SMS-E also provides a
select range of production attachments for specific market segments such as construction, forestry, mining and utility
industries. This company continuously analyzes the market to provide its customers with all the equipment they
require in the most diverse applications one can imagine. SMS-E currently has 40 locations across Canada,
and more than 2000 employees.
Customer Service
Customer satisfaction continues to be a top priority, with services continuously expanding to meet
emerging customer needs. Today, SMS-E also provides customers with various services including
welding and fabrication, custom-design to meet with customers' needs, remanufacturing
components, and more. In order to provide these varieties of services, SMS-E has the
support of Sumitomo Corporation to make large investments in its facilities and equipment.
Increasing Our Stake in Sunstate Equipment Co. through SMS-I
In the U.S., we own SMS-I, a holding company that had traditionally focused on investments
in Komatsu dealerships. To capitalize on future increases in equipment rentals, we,
through SMS-I, have made a multi million dollar investment in Phoenix, Arizona-based
Sunstate Equipment Company. The original investment was made in 2009 in the form
of a minority investment, and in 2012 our ownership position was increased to 80%.
Founded in 1977, Sunstate is one of the major equipment rental companies in the U.S.,
with over 50 branch locations in nine states in the southwest with about 1,000 employees.
Although the primary focus of Sunstate has been metropolitan areas with high population
growth, the company has the benefit of a large inventory of construction and industrial equipment,
light equipment and tools to suit the needs of a variety of customers. Whether it is scissor lifts, boom lifts,
backhoe, forklift, generator, or water pump, Sunstate can provide it all.

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Increasing at a rate of 25% to 50% over the past decade, the U.S. has the most attractive equipment rental market,
and we will continue to participate in the growth of North American infrastructure, by supplying the construction
and mining industry with quality equipment and services with a tradition of customer satisfaction.

Global Solutions for Business

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