Sumitomo Heavy Industries, Ltd.
CONSOLIDATED FINANCIAL REPORTFor the Full Year Ended March 31, 2012

All financial information has been prepared in accordance with generally accepted accounting principles in Japan. This document
has been translated from the Japanese original as a guide to non-Japanese investors, and contains forward-looking statementsthat are based on management’s estimates, assumptions, and projections at the time of publication. A number of factors could
cause actual results to differ materially from expectations. Amounts shown in this financial statement have been rounded to thenearest million yen.

Consolidated Results for the Full Year
Ended March 31, 2012

Summary of Consolidated Financial Results
For the Full Year Ended March 31, 2012
Presented May 8, 2012

Sumitomo Heavy Industries, Ltd.
Listed exchanges

Tokyo Stock Exchange, Osaka Securities Exchange

Stock code

6302

Head officeTokyo

President

Yoshinobu Nakamura

URL

www.shi.co.jp

Inquiries

Hideo Oshima
General Manager, Corporate Communications Dept.

Telephone+81 3 6737 2333

Scheduled date of ordinary shareholders’meeting
Scheduled date of payment of cash
dividends
Scheduled date of securities report filing
Availability of supplementary explanatory
materials for financial statement
Holding of meeting to explain financial
statement

June 28, 2012
June 29, 2012
June 28, 2012
Yes
Yes

1. FY 2011 Consolidated Results (April 1, 2011 to March 31, 2012)(1) Business Results(Units: millions of yen)
Current Full Term
April 1, 2011
to March 31, 2012

Previous Full Term
April 1, 2010
to March 31, 2011

% change% change

Net sales

624,100

13.9

548,015

6.2

Operating income

47,1352.9

45,803

62.1

Ordinary income

44,6190.8

44,25368.1

Net income

19,492(30.2)

27,926

110.3

31.75

45.87

Fully diluted net income per share－－

Return on equity (ROE, %)

7.1

10.9

Return on assets (%)

6.8

7.2

Ordinary income to net sales (%)

7.6

8.4

Net income per share (yen)Note: Comprehensive income:Fiscal year ended March 31, 2012: 19,472 million yen (-9.8%)
Fiscal year ended March 31, 2011: 21,601 million yen (―%)
Reference: Equity method investment profit and loss:
Fiscal year ended March 31, 2012: (456 million yen loss)
Fiscal year ended March 31, 2011: (447 million yen loss)

1

Consolidated Results for the Full Year
Ended March 31, 2012

(2) Financial Position(Units: millions of yen)
End of Current
Full Year(March 31, 2012)

End of Previous
Full Year(March 31, 2011)

Total assets

691,841

626,829

Net assets

282,145

269,380

40.3

42.6

454.43435.10Equity ratio (%)
Net assets per share (yen)Reference: Equity:
Fiscal year ended March 31, 2012: 278,891 million yen
Fiscal year ended March 31, 2011: 267,326 million yen(3) Cash Flows(Units: millions of yen)
Current Full Year
(April 1, 2011 toMarch 31, 2012)

Previous Full Year
(April 1, 2010 toMarch 31, 2011)

Cash flows from operating activities

23,30936,521

Cash flows from investing activities(22,671)(23,513)

Cash flows from financing activities

19,879(22,020)

Cash and cash equivalents at end of period

72,37651,7002. Dividends(Units: yen)
Year Ended March 31,
2011

Year Ended March 31,
2012

Year Ending March 31,
2013 (forecast)

Annual dividends per share－－－

Second quarter

0.00

4.00

4.00

Third quarter

－

－

－

End of term

8.00

6.00

6.00

Annual dividends

8.00

10.00

10.00

Total dividends (millions of yen)

4,915

6,137

Payout ratio (consolidated, %)

17.4

31.5

Net assets dividend yield (consolidated, %)

1.9

2.2

First quarter

2

26.1

Consolidated Results for the Full Year
Ended March 31, 2012

3. FY 2012 Consolidated Forecasts (April 1, 2012 to March 31, 2013)(Units: millions of yen)
Second Quarter (Cumulative)
April 1, 2012 to September 30,
2012

Full Year
April 1, 2012 to March 31, 2013

Net sales

300,000% change
2.0

630,000% change
0.9

Operating income

17,000(21.2)

45,000(4.5)

Ordinary income

15,000(25.6)

41,000(8.1)

Net income

8,000(13.4)

23,500

20.6

Projected net income per share (yen)

13.03

38.29

Additional Notes(1) Transfers of important subsidiaries during the fiscal period (moves of specific subsidiaries due to change in scope of
consolidation):
None
Newly consolidated: ―Excluded from consolidation: ―(2) Changes to accounting policies, changes to accounting estimates, and retrospective restatements(i) Changes to accounting policies due to revisions to accounting standards:

None(ii) Changes to accounting policies not otherwise stated in (i):None(iii) Changes to accounting estimates:None(iv) Retrospective restatements:

None(3) Number of shares issued (common shares)(i) Number of shares issued at end of fiscal period (including treasury stock):
As of March 31, 2012
As of March 31, 2011

614,527,405 shares
614,527,405 shares(ii) Number of treasury shares at end of fiscal period:
As of March 31, 2012
As of March 31, 2011

811,946 shares
122,181 shares(iii) Average number of shares during fiscal period:
As of March 31, 2012
As of March 31, 2011

613,952,563 shares
608,820,423 shares

3

Consolidated Results for the Full Year
Ended March 31, 2012

Supplementary Materials – Table of Contents

I.

Results of Operations .....................................................................................................................5
1. Analysis of Operating Results.........................................................................................................5
2. Analysis of Financial Condition .......................................................................................................8
3. Basic Policy on Earnings Appropriation and Dividend for the Consolidated Fiscal Year Under
Review as well as the Current Fiscal Year Ending March 31, 2013 ................................................9

II. Status of the Business Group ......................................................................................................10
III. Management Policies....................................................................................................................12
1. Basic Management Policy ............................................................................................................12
2. Target Management Benchmarks .................................................................................................12
3. Medium- to Long-Term Management Strategy..............................................................................12
4. Action Items for the Group ............................................................................................................12
IV. Consolidated Financial Statements ...............................................................................................15
1. Consolidated Balance Sheets ........................................................................................................15
2. Consolidated Income Statements and Consolidated Statement of Comprehensive Income ..........17
3. Consolidated Statements of Changes to Stockholders' Equity .......................................................20
4. Consolidated Cash Flows Statement .............................................................................................24
5. Significant Events or Conditions that Question the Premise of a Going Concern .........................26
6. Additional Information ...................................................................................................................26
7. Items of Special Note Concerning the Consolidated Financial Statements...................................26(Segment Information).....................................................................................................................26(Per Share Information)...................................................................................................................29(Subsequent Events of Significant Importance)...............................................................................29
8. Orders Received, Sales, and Balance of Orders Received, by Segment.......................................30

4

Consolidated Results for the Full Year
Ended March 31, 2012

I. Results of Operations
1. Analysis of Operating Results(1) Summary of Economic Climate during the Consolidated Fiscal Year
During the consolidated fiscal year under review, tough overall conditions in the Japanese economy continued as theGreat East Japan Earthquake significantly impacted manufacturing activity and the unprecedented strength of the yen
hampered exports. At the same time, the overall global economy remained unstable as the implementation of inflationary
controls in China, a country that drove global economic growth, increased uncertainty. Furthermore, the floods inThailand affected growth, and the disruption to public-sector finance and financial markets in Europe impacted the real
economy in the region.
Set against this economic backdrop, the Sumitomo Heavy Industries Group (hereinafter referred to as the “Group”) madethe earthquake recovery efforts of clients a top priority and worked hard to normalize production activities that were
disrupted. Moreover, keeping in mind the keywords of “Globalization” and “Innovation” that form the basis of the Group’s
Innovation 21 Medium-Term Management Plan, efforts were made to implement strategies that looked to improve market
competitiveness. As a result, although net income fell as compared to the previous year, the consolidated fiscal year
under review saw the Group post improvements to prior-year figures for orders, sales, operating income and ordinary
income.
After careful consideration of the conditions in various overseas markets, the Group looked to strengthen both the
manufacturing and sales platforms in specific areas. Several of the major strategies in this initiative that were introduced
during the consolidated fiscal year under review are outlined below:(i) Enhance and Effectively Use the Group’s Global Network
Several efforts to strengthen and enhance the Group’s manufacturing platform were made during the consolidated fiscal
year under review. Firstly, construction was completed and commercial operations began at a new hydraulic excavator
plant in Indonesia and a new gear box plant in Brazil. Moreover, production capacity was increased at existing plants in
China and Vietnam. In terms of the sales structure, the Group decided to establish a leasing company for hydraulicexcavators in China to capture the expanding demand in the country for those products.
The Group also strengthened its links with overseas subsidiaries in various business lines, including Sumitomo (SHI)
Demag Plastics Machinery GmbH in Germany for the plastics machinery business, Hansen Industrial Transmissions N.V.
in Belgium for the power transmission business, and LBX Company, LLC in the United States for the hydraulic excavatorbusiness. By doing so, the Group was able to more appropriately meet the needs of its global client base.
(ii) Develop and Market Innovative Products (Product Innovation)
With the backdrop of tightening domestic demand for electricity and the cost of energy rising globally, the Group looked
to accelerate the development of “Green Products” that focused on the concepts of achieving energy savings and using
sustainable energy.
For example, first-class products such as the SE-EV Series plastics machine that achieves a 20% reduction in electricity
consumption as compared to previous models was launched by the plastics machinery business. In addition, a compact
circulating fluidized bed boiler that is suited to wood-based biomass electricity generators was brought to market by theboiler business.
In terms of the product development infrastructure, the Group reorganized the Corporate Technology Operations Group
into three distinct areas to strengthen functional capabilities. Today, the Corporate Technology Operations Group is split
into the Product Development Group, which oversees the development of products; the Intellectual Property Group,
which oversees intellectual property; and the Technology Research Center, which is responsible for the development of
medium- to long-term basic and elemental technologies.

5

Consolidated Results for the Full Year
Ended March 31, 2012(iii) Introduce Innovation into Manufacturing, Sales, and Business Execution (Process Innovation)
In the Innovation 21 Medium-Term Management Plan, the Group is not only aiming to bring innovative new products tomarket, it is also aiming to strengthen the internal business processes associated with development, design,
manufacturing and sales. In the area of development and design, the Group focused on introducing innovation into thedesign process. By making efforts to significantly reduce the traditionally long lead-time required in the design phase,development and design efficiency increased, and the time it now takes to bring a new, first-class product to market has
been compressed.
Further, to improve the efficiency and sophistication of the Group’s head office functions, support services such as
Human Resources, Administration, Accounting, and Information Systems were put under the management of a sharedservices company for subsidiaries. From there, various support services were provided to Group companies. During theconsolidated fiscal year under review, the scope of Group companies to receive these services was further expanded.
(iv) Thorough Implementation of Compliance Measures
In line with the Group’s guiding principle of “Prioritizing Compliance Above All Else”, various efforts to ensure that theimportance of compliance is understood across the entire Group have been made repeatedly. Further, to strengthen thecompliance framework for the expanding overseas business units, various training is carried out for both local anddispatched personnel. For example, seminars on antitrust laws as well as corruption prevention have been carried out ona global basis.
Through the efforts outlined above, the fiscal year under review saw orders increase 7% from the previous fiscal year tofinish at JPY571.3 billion and sales increase by 14% from the previous fiscal year to finish at JPY624.1 billion on aconsolidated basis.
From the standpoint of profit and loss, the fiscal year under review saw operating income increase by 3% from theprevious fiscal year to finish at JPY47.1 billion on a consolidated basis, primarily through benefits gained from anincrease in sales as well as the implementation of tough cost-cutting measures. Ordinary income also increased by 1%
from the previous fiscal year to finish at JPY44.6 billion on a consolidated basis while net income decreased by 30% fromthe previous fiscal year to finish at JPY19.5 billion on a consolidated basis. Finally, after-tax ROIC* was 7.4%.
On a non-consolidated basis, the fiscal year under review saw orders finish at JPY155.6 billion and sales finish at
JPY208.5 billion. Further, the Group posted a non-consolidated operating loss of JPY2.9 billion, a non-consolidated
ordinary income of JPY5.4 billion and a non-consolidated net loss of JPY200 million for the fiscal year under review.

*The ROIC (return on invested capital) for the Group is calculated based on the following formula:(operating income + interest and dividends income) × 55% (1 − effective tax rate)
ROIC=(average shareholder equity for the fiscal year) + (average interest-bearing liabilities for the fiscal year)(2) Group Results by Segment(i)

Machinery Components

Expansion in emerging markets, as well as the positive contribution made by the newly acquired Hansen Industrial
Transmissions N.V. in the previous fiscal year, resulted in improvements across almost all product models in thesegment. Consequently, the segment as a whole posted better figures than those in the previous fiscal year for bothorders and sales.
In actual figures, the segment as a whole saw orders increase by 25% from the previous fiscal year to finish at JPY95.1
billion and sales increase by 25% from the previous fiscal year to finish at JPY93.2 billion. In addition, the segment
posted an operating income of JPY4.2 billion, a 13% decline from the previous fiscal year.

6Consolidated Results for the Full Year
Ended March 31, 2012(ii) Precision Machinery
With respect to the plastics machinery business, market recovery in Europe, among other factors, resulted in an increasein both orders and sales as compared to the previous fiscal year. Unfortunately, in other product areas, demand for
medical devices and electronic equipment remained relatively sluggish. As a result, order figures for the segment as awhole decreased as compared to the previous fiscal year. On the other hand, sales figures improved from the previous
fiscal year mainly due to the abundance of orders that were carried forward to the current fiscal year.
In actual figures, the segment as a whole saw orders decrease by 4% from the previous fiscal year to finish at JPY143.9
billion, and sales increase by 9% from the previous fiscal year to finish at JPY144.1 billion. In addition, the segment
posted an operating income of JPY12.5 billion, a 50% improvement from the previous fiscal year.
(iii) Construction Machinery
The hydraulic excavator business saw an increase in both orders and sales, despite the fact that the supply chain for the
product line was severely disrupted due to the Great East Japan Earthquake. The construction crane business also
posted improved orders and sales figures as the North American market showed signs of recovery.
As a result, the segment as a whole saw orders increase by 15% from the previous fiscal year to finish at JPY162.4
billion, and sales increase by 22% from the previous fiscal year to finish at JPY158.9 billion. In addition, the segment
posted an operating income of JPY8.3 billion, a 57% improvement from the previous fiscal year.
(iv) Industrial Machinery
In the turbine and pump business, orders fell as compared to the previous fiscal year as customers reassessed theircapital expenditure plans. However, sales increased as compared to the previous fiscal year in this area mainly due tothe carrying forward of orders outstanding from previous periods. The materials handling equipment business saw bothorders and sales increase from the previous fiscal year as the segment prioritized the needs of those customers thatwere responding to earthquake recovery efforts.
As a result, the segment as a whole saw orders decrease by 5% from the previous fiscal year to finish at JPY69.6 billion,
and sales increase by 21% from the previous fiscal year to finish at JPY80.7 billion. In addition, the segment posted an
operating income of JPY9.5 billion, a 7% decline from the previous fiscal year.
(v) Ships
Market conditions in the ship segment continued to remain stagnant. This is reflected in the fact that no new ship orders
were received during the consolidated fiscal year as compared to two orders received in the previous fiscal year. Further,in terms of sales, seven vessels were handed over during the consolidated fiscal year under review, which is one vessel
less than the previous fiscal year.
As a result, the segment as a whole saw orders decrease by 54% from the previous fiscal year to finish at JPY6.7 billion,
and sales decrease by 2% from the previous fiscal year to finish at JPY58.1 billion. In addition, the segment posted an
operating income of JPY10.9 billion, a 10% improvement from the previous fiscal year.
(vi) Environmental Facilities & Plants
Despite positive activity from certain overseas markets with respect to its industrial power generation boilers, overall
conditions in the energy plant business remained sluggish. This was reflected in the fact that the business was only able
to generate approximately the same level of orders as compared to the previous fiscal year while sales figuresdecreased. Moreover, factors including defective work discovered in the construction of an incinerated ash melting facility
for the city of Kyoto contributed to a fall in profitability. On a positive note, the water treatment plant business saw anincrease in both orders and sales as compared to the previous fiscal year as market conditions improved and efforts torecover from the earthquake continued.
As a result, the segment as a whole saw orders increase by 20% from the previous fiscal year to finish at JPY85 billion,
and sales increased by 5% from the previous fiscal year to finish at JPY80.1 billion. In addition, the segment posted an
operating income of JPY0 billion..

7

Consolidated Results for the Full Year
Ended March 31, 2012

(3) Outlook for the Upcoming Fiscal Year (Ending March 31, 2013)
The economic environment that forms the backdrop of the Group’s business remains unpredictable. On one hand,emerging market economies are anticipated to continue showing strong growth, while at the same time, signs of arecovery are seen in developed economies such as those in Europe, the United States, and Japan. On the other hand,the debt crisis in Europe, a slowdown of the Chinese economy, rising crude oil prices, and the long-term strength of the
yen are all causes of concern that can hamper any kind of positive economic momentum.
In this type of environment, the Group plans to focus on achieving the key goal of “Innovation of Half and Double” while
implementing the following principal strategies set forth in the Innovation 21 Medium-Term Management Plan:
1. Enhance and effectively use the Group’s global network.
2. Develop and market innovative products (Product Innovation).
3. Introduce innovation into manufacturing, sales, and business execution (Process Innovation).
As of the date this document is published, the outlook for the upcoming fiscal year ending March 31, 2013 is as follows:
Consolidated Results

AmountAs Compared to FY 2011

Sales

JPY630.0 billion+0.9%

Operating income

JPY45.0 billion-4.5%

Ordinary income

JPY39.0 billion-12.6%Net income

JPY23.5 billion+20.6%(The above figures are calculated at an exchange rate of JPY80 and JPY105 against the dollar and euro, respectively.)* The above forecast concerning future financial results is believed to be reasonable based on information available atthe time of publication. Actual financial results may vary from the above forecast due to a variety of factors.

2. Analysis of Financial Condition(1) Condition of Assets, Liabilities, and Net Assets
Total assets at the end of the consolidated fiscal year under review stood at JPY691.8 billion, an increase of JPY65.0
billion from the end of the previous fiscal year. Although there was a JPY3.8 billion decrease in inventory and otherassets, this was offset by increases of JPY20.9 billion in cash and deposits, JPY26.0 billion in accounts and notes
receivable, JPY12.9 billion in inventory assets, and JPY5.7 billion in tangible fixed assets.
Total liabilities at the end of the consolidated fiscal year under review stood at JPY409.7 billion, an increase of JPY52.2
billion from the end of the previous fiscal year. Although there was a decrease of JPY4.2 billion in deferred tax liability asa result of a revaluation of the figure based on a lower normal effective tax rate, this was outweighed by increases of
JPY28.7 billion in interest-bearing liabilities as the Group took on new long-term debt, and JPY21.9 billion in notes andaccounts payable. Further, the ratio of outstanding interest-bearing debt to total assets deteriorated by 3.1% to close at
14.0% for the consolidated fiscal year.
Net assets at the end of the consolidated fiscal year under review stood at JPY282.1 billion, an increase of JPY12.8
billion from the end of the previous fiscal year. Although there were decreases of JPY4.0 billion in the foreign currencytranslation adjustment, and JPY1.6 billion in overseas subsidiary pension liability adjustment, these were offset by a
JPY13.4 billion increase in retained earnings.
As a result, the shareholders’ equity ratio for the consolidated fiscal year under review deteriorated by 2.3 points from theend of the previous fiscal year to finish at 40.3%.

8

Consolidated Results for the Full Year
Ended March 31, 2012

(2) Cash Flow Conditions
The cash and cash equivalent balance at the end of the consolidated fiscal year under review stood at JPY72.4 billion,
an increase of JPY20.7 billion as compared to the previous fiscal year. The cash flow conditions in each area and thefactors behind any changes are outlined below:(Cash Flow from Operating Activities)
Cash flow from operating activities was JPY23.3 billion for the consolidated fiscal year under review, a decrease of
JPY13.2 billion from the previous fiscal year. The main factors behind this were the increases to the balance of tradereceivables as well as inventory assets, and the amount paid for corporate and other taxes, exceeding the decrease in
the balance of accounts payable.
(Cash Flow from Investing Activities)
Cash flow used for investing activities totaled JPY22.7 billion for the consolidated fiscal year under review, an increase of
JPY800 million as compared to the previous fiscal year. There was an increase in the cash flow used to acquire fixed
assets.
(Cash Flow from Financing Activities)
Cash flow used for financing activities was JPY19.9 billion for the consolidated fiscal year under review. The main
purpose of the funds was for the borrowing of interest-bearing debt.
The following table summarizes trends in the cash-flow index of the Group:
FY 2007

FY 2008

FY 2009

FY 2010

FY 2011

Shareholders’ equity ratio (%)

34.9

34.8

40.0

42.6

40.3

Shareholders’ equity ratio on amarket price basis (%)

57.3

29.8

55.7

53.2

40.8

Redemption period (years)

3.1

3.2

1.5

1.9

4.2

Interest coverage ratio (multiples)

22.3

21.5

30.8

24.2

13.7

Shareholders’ equity ratio = shareholders’ equity / total assets
Shareholders’ equity ratio on market price basis = total market value of shares / total assets
Redemption period = outstanding interest-bearing debt / operating cash flow
Interest coverage ratio = operating cash flow / interest expense

3. Basic Policy on Earnings Appropriation and Dividend for the Consolidated Fiscal
Year Under Review as well as the Current Fiscal Year Ending March 31, 2013
The Group’s basic stance on profit sharing is to pay a dividend amount commensurate to the income earned during theperiod, and to keep that amount as high as possible. However, the decision on the actual amount of the dividend is madeafter considering the sufficient level of retained earnings needed to ensure that the Group is able to sustain a stablebusiness model in the long term.
For the consolidated fiscal year under review, the Group is forecasting a dividend of JPY10 per share (inclusive of the
JPY4 per share interim dividend), an increase of JPY2 per share from the previous year.
For the fiscal year ending March 2013, the Group is forecasting a dividend of JPY10 per share.

9Consolidated Results for the Full Year
Ended March 31, 2012

II. Status of the Business GroupThe main business areas of the Group and the positioning of major Group companies in such areas are outlined below.
Due to the establishment of new companies or the increased importance of existing companies, a total of sevencompanies, including Sumitomo Heavy Industries Gearmotors Co., Ltd., have been included within the scope of
consolidation during the fiscal year under review. In addition, one company has been excluded from the scope of
consolidation during the fiscal year under review due to the decline in its relative importance.

1. Machinery Components
In the area of transmission power equipment, both Sumitomo Heavy Industries and Seisa Gear, Ltd. are responsible forthe overall manufacturing and distribution of such products. On a global basis, the responsibility for manufacturing anddistribution of these products falls to Sumitomo Machinery Corporation of America in North America; Sumitomo (SHI)
Cyclo Drive Germany GmbH in Europe; and Sumitomo (SHI) Cyclo Drive Asia Pacific Pte., Ltd. in Southeast Asia. In
China, Sumitomo Heavy Industries (Tangshan) Ltd. carries out manufacturing while Sumitomo (SHI) Cyclo Drive China,
Ltd. carries out manufacturing and is also responsible for the overall distribution of products in the country. Distribution of
the products in Japan is the responsibility of Sumitomo Heavy Industries PTC Sales Co., Ltd.

2. Precision Machinery
In the area of plastics machinery equipment, Sumitomo Heavy Industries is responsible for the overall manufacturing,
distribution, and after-sales service of the product line. Globally, SHI Plastics Machinery Inc. of America is responsible forthe overall manufacturing and distribution of these products in North America, and Sumitomo (SHI) Demag Plastics
Machinery GmbH is responsible for overall operations in Europe.
Sumitomo Heavy Industries is responsible for overall manufacturing and distribution functions in the areas of laser
processing systems, cryocoolers, precision positioning equipment, ion accelerators, plasma coating system for FPDs,
precision forgings, control components, and defense equipment.
In the area of semiconductor production equipment, both Sumitomo Heavy Industries and SEN Corporation are
responsible for overall manufacturing and distribution.
Finally, Sumitomo NACCO Materials Handling Co., Ltd. is responsible for the overall manufacturing and distribution of
forklift equipment in this segment.

3. Construction Machinery
In the area of hydraulic excavators and road construction machinery, Sumitomo (S.H.I.) Construction Machinery Co., Ltd.
is responsible for the manufacturing and distribution of such products to overseas markets, Sumitomo (S.H.I.)
Construction Machinery (Tangshan) Co., Ltd. is responsible for the manufacturing of such products in China, PT.
Sumitomo S.H.I. Construction Machinery Indonesia is responsible for the manufacturing of such products in Indonesia,
and Sumitomo (S.H.I.) Construction Machinery Sales Co., Ltd. is responsible for the distribution of such products inJapan.
In the area of mobile cranes, Hitachi Sumitomo Heavy Industries Construction Crane Co., Ltd. is responsible for overall
development, distribution, and manufacturing of such products for the Japanese market, while Link-Belt Construction
Equipment Company, L.P., LLLP mainly oversees the overall manufacturing and sales functions of such products inNorth America.

4. Industrial Machinery
In this segment, Sumitomo Heavy Industries is responsible for the manufacturing and distribution of logistics andhandling systems, as well as automated parking systems.
Sumitomo Heavy Industries Techno-Fort Co., Ltd. is responsible for the overall manufacturing and distribution of forging
machines.

10

Consolidated Results for the Full Year
Ended March 31, 2012

Sumitomo Heavy Industries Engineering and Services Co., Ltd. is responsible for the overall manufacturing anddistribution of material handling systems. Further, the same company is also responsible for after-sales service ofmaterial handling systems along with logistics and handling systems.
Finally in this segment, Shin Nippon Machinery Co., Ltd. is responsible for the overall manufacturing and distribution ofindustrial turbines and pumps.

5. Ships
In this segment, shipbuilding is carried out by Sumitomo Heavy Industries Marine & Engineering Co., Ltd., while
Sumitomo Heavy Industries is responsible for the distribution of the finished product.

6. Environmental Facilities & Plants
In the areas of boiler systems, industrial waste treatment systems, pulp and paper machinery, and air pollution
prevention equipment, both Sumitomo Heavy Industries and Nihon Spindle Manufacturing Co., Ltd. are responsible foroverall manufacturing and distribution.
Sumitomo Heavy Industries Environment Co., Ltd. is responsible for the overall manufacturing and distribution of water
treatment systems.
Further, the manufacturing and distribution of reactor vessels is handled by Sumitomo Heavy Industries and Sumitomo
Heavy Industries Process Equipment Co., Ltd.
Finally, Izumi Food Machinery Co., Ltd. is responsible for the overall manufacturing and distribution of food machinery.

11

Consolidated Results for the Full Year
Ended March 31, 2012

III. Management Policies
1. Basic Management Policy
The Group is guided by the Sumitomo Business Spirit. The two components of the philosophy, namely “the placing ofprime importance on conducting business with integrity and sound management” and “not pursuing easy gains or acting
imprudently under any circumstances”, form the basis of the Group’s vision in any environment, regardless of the era or
the state of the economy. The Group rigorously complies with the spirit of the philosophy, and actively pursues structuralreforms to its business organization to ensure that it is able to build a strong corporate culture.
The Group also believes that by focusing on creating customer value, and thereby earning customers’ long-term trust, it
can achieve sustainable growth and increase overall corporate value. Further, succeeding in this task will also lead to theGroup meeting its corporate citizenship responsibilities to its shareholders, employees, and surrounding communities.
In order to ensure a highly stable growth trajectory on the global stage, the Group is committed to becoming a“Systematic Knowledge-Creating Company” that is able to sustainably supply customers with first-class products.
Moreover, the Group is actively strengthening its functional efficiencies in the areas of marketing, development, andproduction in pursuit of the ultimate level of workmanship.

2. Target Management Benchmarks, 3.Medium- to Long-Term Management Strategy
Since there are no significant changes from the disclosure made in the “Notice Regarding the Innovation 21 Medium
Term Management Plan”, these sections have been omitted. For further information on previously disclosed materials,
please visit the following Web sites:(Group home page)
http://www.shi.co.jp(Tokyo Stock Exchange home page – link to search page for publicly listed companies)
http://www.tse.or.jp/listing/compsearch/index.html

4. Action Items for the GroupThe economic environment that forms the backdrop of the Group’s business remains uncertain. On one hand, theeconomy is seen to be gradually recovering from the effects of such natural disasters as the Great East Japan
Earthquake and the unprecedented floods in Thailand that caused an untold amount of damage. On the other hand,
structural problems found in the global economy, including the European debt crisis, the slowdown of the Chinese
economy, rising crude oil prices, and the long-term strength of the Japanese yen, are adding another layer of confusion
to the future economic outlook.
In this type of environment, the Group has focused on increasing competitiveness amid intensifying global market
competition, by focusing on the key strategies of the Innovation 21 Medium-Term Management Plan, which are to
introduce innovation into product development and business processes. By doing so, the Group is aiming to become a“Strong and Powerful SHI” that is able to achieve sustainable growth in any type of external environment.

12Consolidated Results for the Full Year
Ended March 31, 2012

(1) The Innovation 21 Medium-Term Management Plan
The financial objectives set forth in the Innovation 21 Medium-Term Management Plan which was launched in April 2011,
call for the Group to achieve sales of JPY730 billion and operating income of JPY73.0 billion by the end of fiscal 2013
(ending March 31, 2014). In addition, the Group is targeting an ROIC of greater than 10% while at the same time
maintaining an ROIC that is greater than WACC on a continuous basis.
In order to achieve these figures, the Group has formulated the following three strategies:
1. Enhance and effectively use the Group’s global network.
2. Develop and market innovative products (Product Innovation).
3. Introduce innovation into manufacturing, sales, and business execution (Process Innovation).
Through the implementation of these measures and a focus on the key phrase of “Innovation of Half and Double”(doubling performance while cutting costs by half), the Group plans to rebuild its competitive structure and establish itself
as a dominant player in the global marketplace.
(2) Key Areas of Focus for the Fiscal Year Ending March 31, 2013
The Group will be focusing on implementing the following measures during FY 2012 in order to achieve the goals set
forth in the plan.
(i)Enhance and Effectively Use the Group’s Global Network

SHI will work to enhance and maximize the use of its global network of manufacturing, sales, and service locations.
In the field of power transmissions, the Group will work to achieve full production as soon as possible at the Tangshan
Plant in China, where production capacity for gearboxes was increased, as well as the newly opened gearbox plant inBrazil. At the same time, SHI will work to improve cooperation between the newly acquired, Belgium-based Hansen
Industrial Transmissions N.V. and the Group’s Okayama Works. By doing so, the Group will look to increase its global
market share in this field. For compact gearmotors, the Group will look to harness the cost-competitiveness of its
Vietnam Plant where production was concentrated, and develop the emerging markets in Asia.
In the field of hydraulic excavators, the Group will look to increase production capacity at the Indonesia Plant that opened
during the previous fiscal year, and at the same time maximize production capacity at the Tangshan Plant in China andthe Chiba Works. By doing so, the Group will target market share expansion in the growing markets of Southeast Asia
and North and South America.
In the field of plastics machinery, the Group will work to further increase co-operation between Sumitomo (SHI) Demag
Plastics Machinery GmbH of Germany and the Chiba Works, and maximize synergy to ensure that any market share
opportunities in growing markets are being captured.
Furthermore, the Group will look to enhance the functions of the regional head offices established in China, the UnitedStates, Indonesia, and Brazil with the goal to establish a structure that allows for the rapid implementation ofmanagement measures that are specific to the needs of each region or market. Through this, SHI will continue to build aglobal network of operations that focuses on “Self-subsistence and Cooperation” and that allows Group companies
around the world to leverage the competitive edge that each boasts.
(ii) Develop and Market Innovative Products (Product Innovation)
The Group will focus its energies on the following markets and products:
In the field of power transmissions, the Group plans to adopt premium efficiency motors compliant with IE3 (theinternational efficiency standard for motors) in its small- to medium-scale gear reducers, and subsequently promoteenergy efficiency in the industrial and social infrastructure sectors globally.
In the field of hydraulic excavators, the Group will aim to expand sales by pushing to further increase the efficiency of its
industry-leading products while improving functions to better meet the needs of emerging markets.
In the field of plastics machinery, following the introduction of its new line of compact equipment in the previous fiscal
year, the Group will begin selling its medium-scale plastic injection molding machine that boasts significant
improvements to yield and energy efficiency.

13

Consolidated Results for the Full Year
Ended March 31, 2012

In addition to the above, the Group will accelerate the development of various other “Green Products” that emphasize theconcepts of energy efficiency and the use of sustainable energy.
Finally, as a result of reorganization efforts, the roles and responsibilities of the Corporate Technology Operations Groupare now better defined. The integration of this group with the various business units will further drive the production
innovation efforts outlined above.
(iii) Introduce Innovation into Manufacturing, Sales, and Business Execution (Process Innovation)
Over the years, the Group has introduced a multitude of process innovation ideas into all stages of the business,
including product planning, design and development, manufacturing, sales, and after-sales service. In the future, these
efforts will be further developed and applied on a global scale. This is anticipated to result in significant cost savings andincreased market share in emerging economies.
(iv) Future Development of the Ship Business
While market conditions worsen in the ship business, the supply capacity of Chinese shipbuilders and thecompetitiveness of Korean shipbuilders are improving. This has made the operating environment even more challenging
than it already was.
Amid these conditions, and the subsequent anticipated fall in order figures, the Group’s goal is to survive this tough era
and minimize the downward pressure that the segment has on overall results, while maintaining a minimum production
presence to sustain business continuity.
(v) Thorough Implementation of Compliance Measures
The Group firmly believes that ensuring compliance across all of its business activities is one of, it not the most,important responsibilities that it holds. As the SHI Group has grown internationally, it has focused on conducting
compliance-related activities not only for its domestic business units, but for all business units across the globe.
In the future, supplemental training and awareness programs for directors and employees will continue, to ensure thatthe importance of compliance permeates the entire Group.

14

Consolidated Results for the Full Year
Ended March 31, 2012

IV. Consolidated Financial Statements
1. Consolidated Balance Sheets(Units: millions of yen)
End of Full YearAs of March 31, 2011

End of Full YearAs of March 31, 2012

AmountAmountAssetsCash and deposits

52,48673,373

Notes and accounts receivable

155,267

181,248

Products

41,82751,326

Works in progress

70,802

71,562

Raw materials and stock

18,406

21,034

Deferred income taxes

9,648

12,196

Other

17,898

19,161

(991)

(855)

365,342429,046

Buildings and structures (net)50,79949,927

Machinery and transportation tools(net)

37,00337,032

Land

117,157

116,306

Construction in progress

1,938

9,448

Other (net)

7,259

7,099

Tangible assets

214,156

219,812Intangible assets

6,936

6,374

26,281

23,921

67

63

Deferred income taxes

8,319

7,419

Other

7,199

6,620

Allowance for doubtful accounts(1,472)(1,414)40,39536,609Fixed assets

261,487

262,795

Total assets

626,829

691,841

Allowance for doubtful accounts
Current assets

Investment securities
Long-term loans

Investments and other assets

15

Consolidated Results for the Full Year
Ended March 31, 2012

(Units: millions of yen)
End of Full YearAs of March 31, 2011

End of Full YearAs of March 31, 2012

AmountAmountLiabilities
Notes and accounts payable

131,951

153,843

Short-term bank loans

21,504

27,383Long-term loans due within one year

4,411

19,796

Income tax payable

11,574

11,329Advance payments received oncontracts

33,29527,770Allowance for guaranteed construction

5,196

5,106

Other allowances

1,804

5,351

Other

32,77337,883

242,507288,461

Bonds

10,00010,000Long-term debt due after one year

31,91839,343

Employees’ severance and retirement
benefits

31,38035,884

208

54

Deferred income taxes on revaluation

31,83627,651

Other

9,600

8,303

Long-term liabilities

114,943

121,235

Total liabilities

357,450

409,696

Common stock

30,87230,872

Capital surplus

23,78923,789Retained earnings

188,047

201,433

(67)

(445)

242,641

255,649

Unrealized gains on securities

981

2,267

Loss on deferred hedge

960

277

Adjustment regarding pension
obligations of consolidated overseas
subsidiaries(1,978)(3,573)

Revaluation reserve for land

39,851

43,381

Foreign currency translation adjustments(15,129)(19,113)

Current liabilities

Other allowances

Net assets

Treasury stock
Stockholders’ equity

16

Consolidated Results for the Full Year
Ended March 31, 2012

End of Full YearAs of March 31, 2011

End of Full YearAs of March 31, 2012

AmountAmountTotal accumulated other comprehensive
income24,68623,239Minority interests

2,053

3,258

Total net assets

269,380

282,145

Liabilities and net assets

626,829

691,841

2. Consolidated Income Statements and Consolidated Statement of Comprehensive
IncomeConsolidated Income Statements(Units: millions of yen)Previous Full Year
April 1, 2010 toMarch 31, 2011

Current Full Year
April 1, 2011 toMarch 31, 2012

AmountAmountNet sales

548,015624,100

Cost of sales

426,479

490,878

Gross income

121,537

133,222

Selling, general & administrative expenses

75,73386,087

Operating income

45,80347,135Interest income

136

480

Dividend income

1,380

473

Other

2,474

2,777

3,989

3,730

Interest expenses

1,489

1,652

Other

4,050

4,594

Total non-operating expenses

5,539

6,246

Ordinary income

44,25344,619Gain from negative goodwill

3,437

－

Total extraordinary gains

3,437

－

220

2,863

Non-operating income

Total non-operating income
Non-operating expenses

Extraordinary gains

Extraordinary losses
Loss on contracts

17

Consolidated Results for the Full Year
Ended March 31, 2012

Previous Full Year
April 1, 2010 toMarch 31, 2011

Current Full Year
April 1, 2011 toMarch 31, 2012

AmountAmountLoss on devaluation of marketablesecurities

－

2,166

Amount amortized for prior service cost

－

706

1,396

688

Loss arising from revisions to retirement
benefits scheme

503－

Financial impact due to the application of
the accounting standard for asset
retirement obligations

480－

Total extraordinary losses

2,598

6,423

Income before income taxes

45,091

38,195

Corporate income tax current

16,555

19,077

Corporate income tax deferred(468)(1,395)

Total corporate income taxes

16,087

17,682

Net income before adjusting for profit (loss)
from minority interests

29,004

20,513

Minority interests

1,078

1,021

Net income

27,926

19,492

Loss on impaired assets

18

Consolidated Results for the Full Year
Ended March 31, 2012

Consolidated Statement of Comprehensive Income(Units: millions of yen)Previous Full Year
April 1, 2010 to March 31, 2011

Current Full Year
April 1, 2011 to March 31, 2012

AmountAmount

Net income before adjusting for profit (loss)
from minority interests

29,004

20,513

Unrealized gains on securities(1,046)

1,287

Profit (loss) on deferred hedge

(120)

(680)

Adjustment regarding pension
obligations of consolidated overseas
subsidiaries(224)(1,596)－

3,918(5,970)(3,966)

Amount applied for equity method
accounting of affiliates

(43)

(3)

Total other comprehensive income(7,403)(1,041)

21,601

19,472

20,756

18,434845

1,039

Other comprehensive income

Revaluation reserve for land
Foreign currency translation adjustments

Comprehensive income(Breakdown)Comprehensive income relating to parent
company shareholdings
Comprehensive income relating tominority interests

19Consolidated Results for the Full Year
Ended March 31, 2012

3. Consolidated Statements of Changes to Stockholders' Equity(Units: millions of yen)Previous Full Year
April 1, 2010 to March 31, 2011

Current Full Year
April 1, 2011 to March 31, 2012

Stockholders’ equity
Capital stock
Balance at beginning of period

30,87230,872－－30,87230,872

20,50323,7895－

Changes as a result of a stock
swap

3,281

－

Total fluctuation in the period

3,286

－

23,78923,789161,951

188,047

Dividends(2,414)(7,370)Net income

27,926

19,492

Disposal of treasury stock

(1)

(1)

Difference from transfer ofrevaluation reserve for land

535

388

Increase from addition of
consolidated subsidiaries
accompanying changes in scopeof consolidation

50

877

Increase from reduction of
consolidated subsidiaries
accompanying changes in scopeof consolidation－

0

26,097

13,386

188,047

201,433

Fluctuation in the period
Total fluctuation in the period
Balance at end of period
Capital surplus
Balance at beginning of period
Fluctuation in the period
Disposal of treasury stock

Balance at end of period
Earned surplus
Balance at beginning of period
Fluctuation in the period

Total fluctuation in the period
Balance at end of period

20Consolidated Results for the Full Year
Ended March 31, 2012

Previous Full Year
April 1, 2010 to March 31, 2011

Current Full Year
April 1, 2011 to March 31, 2012

Treasury stock
Balance at beginning of period(1,494)

(67)

(164)

(383)

8

5

Changes as a result of a stock
swap

1,583

－

Total fluctuation in the period

1,427

(378)

(67)

(445)

211,831242,641

Dividends(2,414)(7,370)Net income

27,926

19,492Acquisition of treasury stock

(164)

(383)

Disposal of treasury stock

125

Difference from transfer ofrevaluation reserve for land

535

388

Changes as a result of a stock
swap

4,864

－

Increase from addition of
consolidated subsidiaries
accompanying changes in scopeof consolidation

50

877

Increase from reduction of
consolidated subsidiaries
accompanying changes in scopeof consolidation－

030,81013,008242,641

255,649

2,003

981

Fluctuations other thanstockholders' equity in the period(net)(1,022)

1,289

Total fluctuation in the period(1,022)

1,289

981

2,267

Fluctuation in the period
Acquisition of treasury stock
Disposal of treasury stock

Balance at end of period
Stockholders' equity
Balance at beginning of period
Fluctuation in the period

Total fluctuation in the period
Balance at end of period
Accumulated other comprehensive income
Unrealized holding gains on othersecurities
Balance at beginning of period
Fluctuation in the period

Balance at end of period

21Consolidated Results for the Full Year
Ended March 31, 2012

Previous Full Year
April 1, 2010 to March 31, 2011

Current Full Year
April 1, 2011 to March 31, 2012

Loss on deferred hedge
Balance at beginning of period

1,125

960

Fluctuations other thanstockholders' equity in the period
(net)

(165)

(683)

Total fluctuation in the period

(165)

(683)

960

277

(1,753)(1,978)Fluctuations other thanstockholders' equity in the period
(net)

(224)

(1,596)

Total fluctuation in the period(224)(1,596)(1,978)(3,573)40,38639,851

Fluctuations other thanstockholders' equity in the period
(net)

(535)

3,530

Total fluctuation in the period

(535)

3,530

39,851

43,381(9,370)(15,129)Fluctuations other thanstockholders' equity in the period(net)(5,759)(3,983)

Total fluctuation in the period(5,759)(3,983)(15,129)(19,113)

32,39024,686

Fluctuation in the period

Balance at end of period
Adjustment regarding pension obligationsof consolidated overseas subsidiaries
Balance at beginning of period
Fluctuation in the period

Balance at end of period
Difference from transfer of revaluation
reserve for land
Balance at beginning of period
Fluctuation in the period

Balance at end of period
Foreign exchange translation
adjustments
Balance at beginning of period
Fluctuation in the period

Balance at end of period
Total accumulated other comprehensive
incomeBalance at beginning of period
Fluctuation in the period

22Consolidated Results for the Full Year
Ended March 31, 2012

Previous Full Year
April 1, 2010 to March 31, 2011

Current Full Year
April 1, 2011 to March 31, 2012

Fluctuations other thanstockholders' equity in the period(net)(7,705)(1,446)

Total fluctuation in the period(7,705)(1,446)

24,68623,239

9,931

2,053

Fluctuations other than stockholders'equity in the period (net)(7,878)

1,204

Total fluctuation in the period(7,878)

1,204

2,053

3,258

254,153

269,380

Dividends(2,414)(7,370)Net income

27,926

19,492Acquisition of treasury stock

(164)

(383)

Disposal of treasury stock

125

Difference from transfer ofrevaluation reserve for land

535

388

Changes as a result of a stock swap

4,864

－

Increase from addition of
consolidated subsidiaries
accompanying changes in scope of
consolidation

50

877

Increase from reduction of
consolidated subsidiaries
accompanying changes in scope of
consolidation－0

Fluctuations other than stockholders'equity in the period (net)(15,583)(242)

Total fluctuation in the period

15,227

12,766269,380

282,145

Balance at end of period
Minority interests
Balance at beginning of period
Fluctuation in the period

Balance at end of period
Total net assets
Balance at beginning of period
Fluctuation in the period

Balance at end of period

23Consolidated Results for the Full Year
Ended March 31, 2012

4. Consolidated Cash Flows Statement(Units: millions of yen)Previous
Full Year
April 1, 2010 toMarch 31, 2011

Current
Full Year
April 1, 2011 toMarch 31, 2012

Cash flows from operating activities
Income before income taxes

45,091

38,195

Depreciation

17,941

17,820Loss on contracts

220

2,863

Loss on devaluation of marketable securities

－

2,166

Amount amortized for prior service cost－

706

Loss on impaired assets

1,396

688

Gain from negative goodwill(3,437)－

Interest and dividend income(1,515)(953)

Interest expenses

1,489

1,652

(Increase) decrease in notes and accounts receivable(30,224)(30,305)(Increase) decrease in inventories(6,280)(14,485)

Increase (decrease) in notes and accounts payable

26,42021,159Other(1,807)

3,538

Subtotal

49,29543,045Interest and dividend received

1,014

1,438

Interest expenses(1,508)(1,660)

Payments for income taxes(12,280)(19,514)36,521

23,309Acquisition costs associated with fixed assets(14,393)(24,227)

Payments for acquisition of subsidiaries’ stock
accompanying changes in scope of consolidation(10,607)

－

457

768

1,030

788

(23,513)(22,671)

Net cash provided by operating activities
Cash flows from investing activities

Proceeds from sale of securities
Other
Net cash used in investing activities

24Consolidated Results for the Full Year
Ended March 31, 2012

Previous
Full Year
April 1, 2010 toMarch 31, 2011

Current
Full Year
April 1, 2011 toMarch 31, 2012

Cash flows from financing activities
Net increase (decrease) in short-term loans(7,260)6,246

Proceeds from long-term debt－

27,213

Repayments for long-term debt

(10,697)(4,416)

Cash dividends paid

(2,423)(7,354)

(347)

(49)

(1,294)(1,763)(22,020)

19,879Effect of exchange rate changes on cash and cash
equivalents

(977)

649

Net increase (decrease) in cash and cash equivalents(9,989)19,867

Cash and cash equivalents at beginning of year

61,45251,700

Increase due to new consolidated companies

236

809

Decrease due to exclusion of previously consolidated
entities－(0)51,70072,376

Payment of dividends to minority stockholders
Other
Net cash used in financing activities

Cash and cash equivalents at end of year25Consolidated Results for the Full Year
Ended March 31, 2012

5. Significant Events or Conditions that Question the Premise of a Going Concern
No events or conditions are noted.

6. Additional Information(Application of Accounting Standard for Accounting Changes and Error Corrections)With regard to any accounting changes or corrections to previous errors that are made after the beginning of the current
fiscal year under review, the “Accounting Standard for Accounting Changes and Error Corrections” (Accounting Standard– ASBJ Statement No. 24 dated December 4, 2009) and the “Guidance on the Accounting Standard for Accounting
Changes and Error Corrections” (Implementation Guidance – ASBJ Statement No. 24 dated December 4, 2009) havebeen applied.

7. Items of Special Note Concerning the Consolidated Financial Statements(Segment Information)
1. Summary of Reporting Segments
The Group’s reporting segments are based on those units within the Group where separate financial information isavailable and where the Group’s Board of Directors periodically deliberates over matters such as the distribution ofmanagement resources and the financial performance of such segments.
The Group formulates a comprehensive international and domestic strategy for individual products and services for thehead office and for each consolidated subsidiary, and executes such strategies at the operating level. Consequently, theGroup comprises segments that are split by categories of products and services offered by the head office andconsolidated subsidiaries. More specifically, the six reporting segments of the Group are “Machinery Components”,“Precision Machinery”, “Construction Machinery”, “Industrial Machinery”, “Ships”, and “Environmental Facilities & Plants”.

Businesses

Main Products

Machinery Components

Power transmission and control

Precision Machinery

Plastic injection molding machines, film forming machines, semiconductor
production equipment, laser processing systems, cryocoolers, precision
positioning equipment, ion accelerators, medical machines and equipment,
plasma coating systems for FPDs, precision forgings, control components,
defense equipment, machining tools

Construction Machinery

Hydraulic excavators, mobile cranes, road machinery

Industrial Machinery

Forging machines, material handling systems, logistics systems,
automated parking systems, turbines, pumps

Ships

Ships

Environmental Facilities & Plants

Private power generation facilities, boilers, industrial waste treatment facilities,
air pollution control equipment, water and sewage treatment systems, processequipment, pressure vessels, agitation tanks, air-conditioning equipment, foodprocessing machinery

26

Consolidated Results for the Full Year
Ended March 31, 2012

2. Information Regarding Net Sales, Profits, Assets, Liabilities, and Other Items by Reporting Segment
Previous Full Year (April 1, 2010, to March 31, 2011)(Units: millions of yen)Segment
Item

A

B

C

D

E

F

66,54459,496

Subtotal

Other

1

Total

2

H

G

Net sales(1) Sales to externalcustomers

74,591 131,944 130,811(2) Internal sales
betweensegments or
exchanges

1,810

9

137

74

Total

76,401 133,103 130,821

66,681

59,57076,864 543,440

10,748 554,188

Segment profit

4,874

5,290

10,252

9,897

5,566

1,518

105,947 138,405 121,339

49,921

80,23052,246 548,087

Segment assets

1,158

8,340

76,070 539,458

794

3,983

44,2198,558 548,015

2,190

6,173

45,73739,466 587,553― 548,015(6,173)―(6,173) 548,015
66

45,80339,276 626,829

Other categories
Depreciation expense

3,298

5,304

3,720

1,706

2,422

1,037

17,488453

17,941―

17,941

Increase in tangible
and intangible assets

3,848

2,976

4,442

869

1,106

712

13,953339

14,292―

14,292

Segments:
A: Machinery Components
B: Precision Machinery
C: Construction Machinery
D: Industrial Machinery
E: Ships
F: Environmental Facilities & Plants
G: Adjustments
H: Value included on the consolidated income statement
Notes:
1. The “Other” segment represents those business segments that are not included as part of any other reporting
segment. This includes the Group’s real-estate businesses, software-related business, and other businesses.
2. Mainly due to the deletion of intersegment transactions
3. Segment profits have been adjusted with operating income recorded in the consolidated income statement.

27

Consolidated Results for the Full Year
Ended March 31, 2012

Current Full Year (April 1, 2011 to March 31, 2012)(Units: millions of yen)Segment
Item

A

B

C

D

E

F

80,683

58,111

Subtotal

Other

1

Total

2

H

G

Net sales(1) Sales to externalcustomers

93,206 144,145 158,942(2) Internal sales
betweensegments or
exchanges

2,310

18

321

90

Total

95,516 145,561 158,960

81,00458,201

Segment profit (loss)

4,238

8,293

9,499

10,935

104,660 144,859 143,153

59,344

79,26660,241 591,524

Segment assets

1,416

12,507

80,116 615,202

607

4,763

80,723 619,965
645,4788,898 624,100

2,886

7,649

11,784 631,749
1,631

47,10945,599 637,123― 624,100(7,649)―(7,649) 624,100
25

47,13554,718 691,841

Other categories
Depreciation expense

3,750

5,063

3,929

1,536

2,081

1,026

17,385435

17,820―17,820

Increase in tangible
and intangible assets

7,516

3,488

5,901

825

924

853

19,508175

19,682―

19,682

Segments:
A: Machinery Components
B: Precision Machinery
C: Construction Machinery
D: Industrial Machinery
E: Ships
F: Environmental Facilities & Plants
G: Adjustments
H: Value included on the consolidated income statement
Notes:
1. The “Other” segment represents those business segments that are not included as part of any other reporting
segment. This includes the Group’s real-estate businesses, software-related business, and other businesses.
2. Mainly due to the deletion of intersegment transactions.
3. Segment profits have been adjusted with operating income recorded in the consolidated income statement.

28

Consolidated Results for the Full Year
Ended March 31, 2012

(Per Share Information)
Previous Full Year
April 1, 2010 toMarch 31, 2011

Current Full Year
April 1, 2011 toMarch 31, 2012

Net assets per share

435.10 yen

454.43 yen

Net income per share

45.87 yen

31.75 yen

Note that EPS adjusted for full dilution is not presented because there are noresidual shares.
The basis for calculation of net income per share is as follows:
Previous Full Year
April 1, 2010 toMarch 31, 2011

Current Full Year
April 1, 2011 toMarch 31, 2012

27,926 million yen

19,492 million yen――

Net income for common stock

27,926 million yen

19,492 million yen

Average number of outstanding
shares for the term

608,820,000 shares

613,953,000 shares

Net income for the period
Value not attributable to common
stockholders(Subsequent Events of Significant Importance)
No events are noted.

29

Consolidated Results for the Full Year
Ended March 31, 2012

8. Orders Received, Sales, and Balance of Orders Received, by Segment
Orders Received(Units: millions of yen)Segment

April 1, 2010 toMarch 31, 2011
AmountApril 1, 2011 toMarch 31, 2012%

AmountY/Y Change%

Amount%Machinery Components

75,83914.2

95,082

16.6

19,243

25.4

Precision Machinery

150,54728.1

143,918

25.2(6,629)(4.4)

Construction Machinery

141,250

26.4

162,359

28.4

21,10914.9

Industrial Machinery

73,228

13.7

69,60712.2(3,621)

(4.9)

Ships

14,581

2.7

6,721

1.2

(7,860)(53.9)

Environmental Facilities & Plants

70,57213.2

85,00614.9

14,434

20.5

Others

8,881

1.7

8,594

1.5

(286)

(3.2)

Total

534,897100.0

571,285100.0

36,389

6.8

Sales(Units: millions of yen)Segment

April 1, 2010 toMarch 31, 2011
AmountApril 1, 2011 toMarch 31, 2012%

AmountY/Y Change%

Amount%Machinery Components

74,591

13.6

93,20615.0

18,61525.0

Precision Machinery

131,94424.1

144,145

23.0

12,2009.2

Construction Machinery

130,81123.9

158.942

25.5

28,13021.5

Industrial Machinery

66,54412.1

80,68312.9

14,139

21.2

Ships

59,496

10.8

58,1119.3(1,386)(2.3)

Environmental Facilities & Plants

76,07013.9

80,116

12.9

4,046

5.3

Others

8,558

1.6

8,898

1.4

340

4.0

Total

548,015100.0

624,100

100.0

76,085

13.9

Balance of Orders Received(Units: millions of yen)Segment

End of Full YearAs of March 31, 2011

End of Full YearAs of March 31, 2012

AmountAmount%%Y/Y Change
Amount%Machinery Components

25,048

6.9

26,923

8.7

1,875

7.5

Precision Machinery

64,82217.8

64,594

20.8

(227)

(0.4)

Construction Machinery

22,694

6.3

26,111

8.4

3,417

15.1

Industrial Machinery

82,97722.9

71,901

23.2(11,076)(13.3)

Ships

96,022

26.4

44,632

14.4(51,390)(53.5)

Environmental Facilities & Plants

69,55219.2

74,442

24.0

4,890

7.0

Others

1,942

0.5

1,638

0.5

(304)

(15.6)

Total

363,057

100.0

310,242100.0(52,815)(14.5)

30