Sumitomo Heavy Industries, Ltd.
SECOND QUARTER CONSOLIDATED FINANCIAL REPORTFor the Six-Month Period from April 1 to September 30, 2016

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 statements thatare 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 the nearest
million yen.

Consolidated Results for the Second Quarter
Ended September 30, 2016

Summary of Consolidated Financial Results
For the Second Quarter Ended September 30, 2016
Presented October 31, 2016

Sumitomo Heavy Industries, Ltd.
Listed exchanges

Tokyo Stock Exchange

Stock code

6302

Head officeTokyo

President

Shunsuke Betsukawa

URLwww.shi.co.jp

Inquiries

Tsuneyoshi Sato
General Manager, Corporate Communications Dept.

Telephone+81 3 6737 2331

Scheduled reporting date for quarterly report

November 8, 2016

Scheduled date of payment of cash dividends

December 1, 2016

Availability of supplementary explanations forquarterly financial statement
Holding of meeting to explain quarterly
financial statement

Yes
Yes (for analysts)

1. FY 2016 Second Quarter Consolidated Results (April 1, 2016, to September 30, 2016)(1) Business Results(Units: millions of yen)
Second Quarter
April 1 to September 30, 2016

Previous Second Quarter
April 1 to September 30, 2015

% change% change

Net sales

317,828(1.5)

322,517

5.3

Operating income

18,6201.4

18,372(7.9)

Ordinary income

18,238

8.5

16,815(15.9)Net income attributed to shareholders of the parent
company

13,102

14.3

11,458(6.7)

Net income per share (yen)Fully diluted net income per share (yen)

21.38

18.69

－

－

Note: Comprehensive income
Fiscal quarter ended September 30, 2016: (5,244 million yen), (151.0%)
Fiscal quarter ended September 30, 2015: 10,272 million yen, 57.8%

2

Consolidated Results for the Second Quarter
Ended September 30, 2016

(2) Financial Position(Units: millions of yen)
End of Second Quarter
As of September 30, 2016

End of Previous Full YearAs of March 31, 2016

Total assets

729,927

782,859

Total net assets

371,996

382,817Equity ratio (%)

50.2

48.1

Reference: Equity
Fiscal quarter ended September 30, 2016: 366,304 million yen
Fiscal year ended March 31, 2016: 376,619 million yen

2. Dividends(Units: yen)
Year Ended March 31,
2016

Year Ended March 31,
2017Year Ended March 31,2017 (forecast)

Annual dividends per shareFirst quarter
Second quarter

Note:

－

－

7.00

7.00

Third quarter－－End of term

9.00

7.00

Annual dividends

16.00

14.00

Changes from the most recent dividend forecast: None

3. FY 2016 Consolidated Forecasts (April 1, 2016, to March 31, 2017)(Units: millions of yen)
Full Year
April 1, 2016, to March 31, 2017

% change
Net sales

660,000(5.8)

Operating income

43,000(15.0)

Ordinary income

40,000(18.6)Net income attributed to shareholders of the parent
company

26,000(21.5)

Projected net income per share (yen)

42.43

Note:

Changes from the most recent consolidated forecast: Yes

3

Consolidated Results for the Second Quarter
Ended September 30, 2016

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:

None

Excluded from consolidation:None(2) Special accounting measures applied in the quarterly consolidated financial report:

None(3) Changes to accounting policies, changes to accounting estimates, and restatements(i) Changes to accounting policies resulting from revisions to accounting standards, etc.:

None(ii) Changes other than (i):None(iii) Changes to accounting estimates:None(iv) Restatements:

None(4) Number of shares issued (common shares)(i) Number of shares issued at end of fiscal period (including treasury stock):
As of September 30, 2016
As of March 31, 2016

614,527,405 shares
614,527,405 shares(ii) Amount of treasury stock at end of fiscal period
As of September 30, 2016
As of March 31, 2016

1,702,542 shares
1,647,819 shares(iii) Average number of shares during fiscal period (cumulative quarterly period)
As of September 30, 2016
As of September 30, 2015

612,855,233 shares
612,973,689 shares

Recording of Implementation Conditions regarding Quarterly Review ProceduresThis quarterly financial summary does not fall within the scope of the Quarterly Review Procedures referenced in
the Financial Instruments and Exchange Act. At the time of disclosure of the quarterly financial summary, theGroup was in the process of implementing the quarterly review procedures for its quarterly financial statements.
Explanations and Other Special Items regarding the Pertinent Reasons for the Earnings Forecast
Earnings forecasts and outlooks concerning future financial results are believed to be reasonable based on
information available at the time of publication. Actual financial results may vary from the above forecast andoutlook because of a variety of factors. For information on the assumptions that form the basis of the earnings
forecast and items to note concerning the use of earnings forecasts, please see the Explanation of theConsolidated Earnings Forecast and Other Forward-Looking Estimates in the Supplementary Materials on page8.

4

Consolidated Results for the Second Quarter
Ended September 30, 2016

Supplementary Materials – Table of Contents
1. Qualitative Information regarding Current Quarterly Consolidated Business Performance ....... 6(1) Explanation of Business Performance ........................................................................................... 6(2) Explanation of the Group’s Consolidated Financial Position .......................................................... 7(3) Explanation of the Consolidated Earnings Forecast and Other Forward-Looking Estimates ......... 8
2. Notes regarding Summarized Information (Explanatory Notes) .................................................... 9(1) Changes Involving Important Subsidiaries during the Current Consolidated Year-to-Date Quarterly
Period ............................................................................................................................................. 9(2) Special Accounting Procedures Adopted during the Development of the Quarterly Consolidated
Financial Report.............................................................................................................................. 9(3) Additional Information ..................................................................................................................... 9
3. Quarterly Consolidated Financial Statements ............................................................................... 10(1) Quarterly Consolidated Balance Sheets ...................................................................................... 10(2) Consolidated Income Statements and Consolidated Statement of Comprehensive Income ........ 12
Consolidated Income Statements ................................................................................................ 12
Consolidated Statement of Comprehensive Income .................................................................... 13(3) Notes regarding Consolidated Quarterly Financial Statements .................................................... 13(Notes on Premise of a Going Concern) ...................................................................................... 13(Notes regarding Significant Fluctuations to Shareholders’ Equity).............................................. 13(Subsequent Events of Significant Importance) ........................................................................... 13
4. Supplementary Information ............................................................................................................. 14(1) Orders, Sales and Operational Profit, and Balance of Orders by Segment .................................. 14(2) (Summary) Consolidated Cash Flows Statement ......................................................................... 175

Consolidated Results for the Second Quarter
Ended September 30, 2016

1. Qualitative Information regarding Current Quarterly Consolidated Business
Performance(1) Explanation of Business Performance
During the first second of the current consolidated fiscal year under review, the feeling of stagnation across the domestic
economy continued mainly as a result of the downward pressure from the stronger Japanese Yen on corporate income
levels. Despite continued improvements in the employment and wage environment, the decline in stock prices had adampening impact on the wealth effect and as a result, personal consumption levels only recovered slightly. On thecorporate side, despite a steady level of investments being made into labor-saving plant and equipment as well as updates
to aging plant and equipment as facility dilapidation progressed and labor shortages remained a problem, in overall terms,
a sense of cautiousness prevailed.
In overseas markets, the recovery of the US economy continued to progress as personal consumption levels remained
steady, and corporate performance showed signs of improvement. In Europe, although the economy was showing asustained level of recovery, the United Kingdom’s decision to leave the EU (i.e. the Brexit) has created a higher level of
economic uncertainty for the future. As for China, public investment looks to be propping up the economy. However, theburden of excessive debt and investments on privately-held companies is resulting in a further slowdown in the pace ofprivate investments. Finally, the bottoming out of resource prices and exchange rate stability in other emerging markets
has resulted in improved economic conditions for these areas. In overall terms, the global economy is in a state of gentle
decline, with a stronger sense of opaqueness in the future mainly due to the risk of political uncertainty in the US andEurope and the risk of a slowdown of the Chinese economy.
Under these conditions, orders decreased across all segments of the Group with the exception of the Environmental
Facilities and Plant segment. On a consolidated basis, the Group posted an order figure of JPY336.6 billion, a 6% decline
as compared to the same period last year (hereinafter referred to as the “previous term”). Sales increased in the Industrial
Machinery, Ships, and Environmental Facilities and Plant segments, while sales fell in all other segments. In total, theGroup posted a sales figure of JPY317.8 billion, a decrease of 1% as compared to the previous term.
Turning to income, the drop in profits from the Precision Machinery and Construction Machinery segments was offset byincreases from other segments. As a result, operating income was JPY18.6 billion, a 1% increase as compared to theprevious term, and ordinary income was JPY18.2 billion, an 8% increase as compared to the previous term. Quarterly net
income attributable to the shareholders of the parent company also increased by 14% as compared to the previous term
to finish at JPY13.1 billion.
Conditions in each business segment of the Group were as follows:
1. Machinery Components
Both orders and sales declined as compared to the previous term. This was mainly due to the softer market environment
for large and medium-scale gear reducers in Japan, as well as the continued market downturn for large-scale gear reducers
in Europe and other overseas markets. In actual figures, the segment received orders worth JPY50.7 billion, a fall of 6%
as compared to the previous term, and posted sales of JPY48.9 billion, a fall of 7% as compared to the previous term.
Further, the segment posted operating income of JPY4.1 billion.
2. Precision Machinery
With respect to plastics machinery, although there was an increase in demand from the European markets, IT-related
investments in China and other markets came to a halt, reducing overall demand. As a result, both orders and sales fellas compared to the previous term. In other product areas, although orders in the semiconductor-related equipment
business fell as compared to the previous term, sales continued to rise. In actual figures, the segment received orders
worth JPY72.8 billion, a fall of 3% as compared to the previous term, and posted sales of JPY69.6 billion, a fall of 8% ascompared to the previous term. Further, the segment posted operating income of JPY7.2 billion.

6

Consolidated Results for the Second Quarter
Ended September 30, 2016

3. Construction Machinery
Although the trend of falling demand from China looks to be bottoming out, demand for hydraulic excavators from othermarkets such as Japan and North America continued to fall. As a result, orders for hydraulic excavators fell as comparedto the previous term. In the mobile crane business, the continuing long-term slowdown of the North American market
resulted in sales declining as compared to the previous term. In actual figures, the segment received orders worth JPY80.2
billion, a fall of 14% as compared to the previous term, and posted sales of JPY88.8 billion, a fall of 10% as compared tothe previous term. Further, the segment posted an operating loss of JPY0.7 billion.
4. Industrial Machinery
In the material handling business, there was an increase in orders mainly due to the agreement to merge Mitsubishi Heavy
Industries’ industrial crane business into the Group. However, the number of orders for medical-related devices was low
in the area of industrial equipment. As a result, orders across the whole segment decreased as compared to the previous
term. In terms of sales, steady progress was made on the completion of material handling and industrial equipment projects,
which resulted in an increase as compared to the previous term. In actual figures, the segment received orders similar tothe previous term at JPY47.3 billion, and posted sales of JPY47.5 billion, a gain of 36% as compared to the previous term.
Further, the segment posted operating income of JPY4.5 billion.
5. Ships
The Ships segment was not able to secure any orders during the current quarter under review mainly due to a slowdown
in the market as well as the stronger Japanese Yen. This compares to receiving an order for two new vessels in theprevious term. With regard to sales, two vessels were handed over as compared to one vessel in the previous term. In
actual figures, the segment received orders worth JPY7.9 billion, a fall of 58% as compared to the previous term, andposted sales of JPY14.8 billion, a gain of 14% as compared to the previous term. Further, the segment posted operating
income of JPY0.6 billion.
6. Environmental Facilities & Plants
The energy plant business was able to secure an order for Japan’s largest biomass-fueled power generation plant as well
as a large-scale ash treatment plant. As a result, order levels increased as compared to the previous term. However, orders
fell in the water treatment plant business mainly because of the lack of orders for new large-scale refurbishment projects.
In actual figures, the segment received orders worth JPY74.0 billion, a gain of 17% as compared to the previous term, andposted sales of JPY44.4 billion, a gain of 4% as compared to the previous term. Further, the segment posted an operating
income of JPY2.1 billion.
7. OtherIn this segment, orders and sales both dropped as compared to the previous term. In actual figures, the segment received
orders worth JPY3.8 billion, a fall of 14% as compared to the previous term, and posted sales of JPY3.8 billion, a fall of
32% as compared to the previous term. Further, the segment posted operating income of JPY0.9 billion.

(2) Explanation of the Group’s Consolidated Financial Position
1. Condition of Assets, Liabilities, and Net Assets
Total assets at the end of the second quarter of the current consolidated fiscal year under review (ended September 30,2016) amounted to JPY729.9 billion, a decrease of JPY52.9 billion as compared to the end of the previous consolidated
fiscal year. This was mainly due to decreases of JPY27.3 billion in trade notes and accounts receivable, JPY6.0 billion intangible fixed assets, and JPY5.0 billion in marketable securities.
Total liabilities fell to JPY357.9 billion, a decrease of JPY42.1 billion as compared to the end of the previous consolidated
fiscal year. This was mainly due to decreases of JPY15.1 billion in notes and accounts payable, and JPY13.0 billion in thebalance of interest-bearing liabilities.
Net assets fell by JPY10.8 billion as compared to the end of the previous consolidated fiscal year to finish at JPY372.0
billion. This was mainly due to the JPY2.1 billion decrease in the foreign currency translation adjustment account.
As a result of the above, the shareholders’ equity ratio improved by 2.1% from the end of the previous consolidated fiscal
year to finish at 50.2%.

7

Consolidated Results for the Second Quarter
Ended September 30, 2016

2. Cash Flow Condition
The increase in cash flow from operating activities was JPY17.8 billion (as compared to a decrease in cash flow of JPY7.8
billion in the previous term). When broken down, the main components of the proceeds were JPY18.2 billion in quarterly
net income before tax and other adjustments, and the JPY20.3 billion reduction in trade receivables. The main sources ofthe outflow of cash were the JPY9.9 billion increase in inventory assets and the JPY9.7 billion payment of corporate andother taxes.
The decrease in cash flow as a result of investing activities was JPY10.1 billion (as compared to a decrease in cash flowof JPY8.2 billion in the previous term). The main reason for the cash outflow was the JPY10.4 billion used to acquire fixed
assets.
The decrease in cash flow as a result of financing activities was JPY13.7 billion (as compared to a decrease in cash flowof JPY175 billion in the previous term). The main reasons for the cash outflow were the JPY7.0 billion (net amount withcash inflow of loans) used to repay loans and the JPY5.5 billion used to pay dividends.
As a result of the foregoing, the balance of cash and cash equivalents at the end of the second quarter of the current
consolidated fiscal year under review totaled JPY58.6 billion, an increase of JPY1.0 billion as compared to the end of theprevious consolidated fiscal year.

(3) Explanation of the Consolidated Earnings Forecast and Other Forward-Looking Estimates
The consolidated earnings forecast for the full-year ending March 31, 2017 that was previously released in conjunction
with the Financial Report dated May 10, 2016 has been revised as follows:(Full-Year Ending March 31, 2017)(Units: millions of yen)Previous
Forecast(A)

Current
Forecast(B)

Increase or
Decrease(B-A)

Percent
Increase or
Decrease (%)

Previous Year
Performance(for reference)

Net sales

700,000

660,000(40,000)(5.7)

700,838

Operating income

47,00043,000(4,000)(8.5)

50,568

Ordinary income

44,50040,000(4,500)(10.1)

49,131

28,00026,000(2,000)(7.1)

33,133

45.69

42.43

―

―

54.06

Net income attributed to shareholders of theparent company
Projected net income per share (yen)As a result of a change in the projected currency exchange rates due to the strengthening of the Japanese Yen, and thecontinued market decline in the Construction Machinery segment, the FY2016 (ending March 2017) full-year forecasts forsales, operating income, ordinary income and net income attributable to the shareholders of the parent company havebeen revised downwards from the figures previously announced on May 10, 2016.
Please note that from the third quarter of the current consolidated fiscal year, the main exchange rates are assumed to be
USD1 = JPY100 and EUR1 = JPY110.

8

Consolidated Results for the Second Quarter
Ended September 30, 2016

2. Notes regarding Summarized Information (Explanatory Notes)(1) Changes Involving Important Subsidiaries during the Current Consolidated Year-to-Date Quarterly
PeriodThere are no applicable items.

(2) Special Accounting Procedures Adopted during the Development of the Quarterly Consolidated
Financial Report
There are no applicable items.

(3) Additional Information(Adoption of the Implementation Guidance on the Recoverability of Deferred Tax Assets)
The “Implementation Guidance on the Recoverability of Deferred Tax Assets” (Accounting Standards Board of Japan(ASBJ) Revised Guidance – ASBJ Guidance No. 26 dated March 28, 2016) has been adopted from the first quarter of thecurrent consolidated fiscal year under review.

9Consolidated Results for the Second Quarter
Ended September 30, 2016

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Units: millions of yen)
End of Previous Fiscal YearAs of March 31, 2016

End of Second Quarter
As of September 30, 2016

AmountAmountAssetsCash and deposits

65,80460,616

Notes and accounts receivable

219,929

192,665

5,000―

Inventory assets

156,270

152,608

Other

47,67345,755

Allowance for doubtful accounts(1,674)(2,758)493,002448,885Land

108,285

107,710

Other (net)

119,484

114,090

Total tangible assets

227,769

221,800

11,21911,066

11,21911,066

Other

55,23954,153

Allowance for doubtful accounts(4,371)(5,977)50,86848,177

Fixed assets

289,857

281,043

Total assets

782,859

729,927

Marketable securities

Current assets

Other
Total intangible assets

Investments and other assets

10Consolidated Results for the Second Quarter
Ended September 30, 2016

(Units: millions of yen)
End of Previous Fiscal YearAs of March 31, 2016

End of Second Quarter
As of September 30, 2016

AmountAmountLiabilities
Notes and accounts payable

142,304

127,240

Short-term bank loans

42,70834,198Long-term loans due within one year

7,300

3,040

Allowance for guaranteed construction

9,092

8,849

Other allowance amount

5,709

3,243

Other

87,80679,754294,919

256,324

Bonds

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

8,224

7,955

160

154

Defined benefit liability

51,62348,936

Deferred income taxes on revaluation

21,02721,027Other

14,08913,536

Total fixed liabilities

105,123

101,608

Total liabilities

400,042

357,931

Common stock

30,87230,872

Capital surplus

25,35425,354Retained earnings

265,588273,174

(861)

(887)

320,953

328,513

Unrealized gains on securities

2,355

2,357

Profit (loss) on deferred hedge

(121)

1,901

Revaluation reserve for land

41,481

41,481

Foreign currency translation adjustments

21,558

511

Re-measurement of defined benefit plans(9,607)(8,458)

Total accumulated other comprehensive income

55,66737,791

Non-controlling interest

6,197

5,692

Total net assets

382,817

371,996

Total liabilities and net assets

782,859

729,927

Current liabilities

Allowance

Net assets

Treasury stock
Total shareholders' equity

11Consolidated Results for the Second Quarter
Ended September 30, 2016

(2) Consolidated Income Statements and Consolidated Statement of Comprehensive Income
Consolidated Income Statements(Units: millions of yen)Previous Second Quarter
April 1, 2015, to September
30, 2015

Present Second Quarter
April 1, 2016, to September
30, 2016

AmountAmountNet sales

322,517317,828

Cost of sales

249,553244,886

Gross income

72,96572,941

Selling, general & administrative expenses

54,59354,321

Operating income

18,372

18,620Interest income

249

214

Dividend income

381

537

1,002

952

753

958

2,386

2,660

1,020

735

356

304

2,566

2,004

Total non-operating expenses

3,943

3,042

Ordinary income

16,815

18,238Loss on impaired assets

199

16

Total extraordinary losses

199

16

Income before income taxes

16,616

18,222

Corporate income taxes

5,827

5,402

Net income

10,78912,820Net income (or loss) attributable to non-controllinginterests

(670)

(282)

Net income attributed to shareholders of the parent
company

11,458

13,102Non-operating income

Investment gain on equity method
Other
Total non-operating income
Non-operating expenses
Interest expense
Loss on foreign currency exchange
Other

Extraordinary losses

12Consolidated Results for the Second Quarter
Ended September 30, 2016

Consolidated Statement of Comprehensive Income(Units: millions of yen)Previous Second Quarter
April 1, 2015, to September 30,
2015

Present Second Quarter
April 1, 2016, to September 30,
2016

AmountAmount

Net income

10,78912,820

Unrealized gains on securities(1,874)

2

Profit (loss) on deferred hedge

211

2,049

Revaluation reserve for land

55―

Foreign currency translation adjustments

1,545(21,236)

Adjustment to retirement benefits

(454)

1,144

Amount applied for equity method
accounting of affiliates

2

(23)

Total other comprehensive income(516)(18,064)

10,272(5,244)

10,887(4,773)

(614)

(471)

Other comprehensive income

Comprehensive income(Breakdown)Comprehensive income relating toparent company shareholdings
Comprehensive income relating to noncontrolling interests(3) Notes regarding Consolidated Quarterly Financial Statements(Notes on Premise of a Going Concern)
There are no applicable items.

(Notes regarding Significant Fluctuations to Shareholders’ Equity)
There are no applicable items.

(Subsequent Events of Significant Importance)
There are no applicable items.

13Consolidated Results for the Second Quarter
Ended September 30, 2016

4. Supplementary Information(1) Orders, Sales and Operational Profit, and Balance of Orders by Segment
Orders Received(Units: millions of yen)Segment

April 1, 2015, toSeptember 30, 2015

April 1, 2016, toSeptember 30, 2016

AmountAmountY/Y Change
Amount%Machinery Components

54,03350,651(3,382)(6.3)

Precision Machinery

75,01372,754(2,259)(3.0)

Construction Machinery

93,74680,159(13,587)(14.5)

Industrial Machinery

47,53247,304

(228)

(0.5)

Ships

18,5997,896(10,702)(57.5)

Environmental Facilities & Plants

63,02974,02911,000

17.5

Other

4,389

3,786

(604)

(13.8)

Total

356,341

336,579(19,762)(5.5)

Sales and Operational Profit(Units: millions of yen)Segment

April 1, 2015, toSeptember 30, 2015
Operational
ProfitSales

April 1, 2016, toSeptember 30, 2016
Operational
ProfitSales

Y/Y Change
Operational
ProfitSales

Machinery Components

52,332

3,567

48,9004,084(3,432)

516

Precision Machinery

75,483

9,385

69,638

7,167(5,845)(2,218)Construction Machinery

98,342

2,205

88,796(665)(9,545)(2,870)Industrial Machinery

34,9452,601

47,514

4,534

12,569

1,933

Ships

13,003(3)

14,760

575

1,757

578

Environmental Facilities & Plants

42,737(88)

44,386

2,061

1,649

2,149

Other

5,675

736

3,833

881

(1,842)

145

―

(31)

―

(16)

―

15

322,517

18,372

317,828

18,620(4,690)249

Adjustments
Total

14

Consolidated Results for the Second Quarter
Ended September 30, 2016

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

End of Previous Fiscal
Year
As of March 31, 2016

End of Second Quarter
As of September 30,
2016

AmountAmountChangeAmount%Machinery Components

25,864

27,615

1,751

6.8

Precision Machinery

44,512

47,6283,116

7.0

Construction Machinery

27,65719,020(8,637)(31.2)

Industrial Machinery

115,095

114,885

(210)

(0.2)

Ships

58,557

51,693(6,864)(11.7)

Environmental Facilities & Plants

109,672

139,315

29,643

27.0

Other

1,939

1,892

(47)

(2.4)

Total

383,296

402,048

18,751

4.9

The Group’s operating segments are categorized as follows:Businesses

Main Products

Machinery Components

Power transmission and control equipment

Precision Machinery

Plastics machinery, film forming machines, semiconductor production
equipment, laser processing systems, cryogenic equipment, precision
positioning equipment, precision forgings, control components, defense
equipment, machining tools

Construction Machinery

Hydraulic excavators, mobile cranes, road machinery

Industrial Machinery

Ion accelerators, medical machines and equipment, forging press 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, mixing vessels, air-conditioning equipment, foodprocessing machinery

15

Consolidated Results for the Second Quarter
Ended September 30, 2016(2) (Summary) Consolidated Cash Flows Statement(Units: millions of yen)Previous Second
Quarter
April 1, 2015 to
September 30, 2015

Present Second
Quarter
April 1, 2016, toSeptember 30, 2016

Y/Y Change

Income before income taxes

16,616

18,2291,613

Depreciation

9,556

9,976

420

(Increase) decrease in notes and accounts
receivable

8,797

20,293

11,497(Increase) decrease in inventories(17,206)(9,924)

7,282

Increase (decrease) in notes and accounts
payable(8,846)(6,624)

2,222

Payments for income taxes(10,928)(9,664)

1,264

Other

(5,760)(4,515)

1,245(7,772)

17,771

25,543

Payments for purchases of property, plant,
and equipment(9,973)(10,414)

(441)

Other

1,817

303

(1,515)(8,156)(10,112)(1,956)

Net increase (decrease) in short-term loans(12,249)(6,979)5,270

Cash dividends paid

(4,290)(5,509)(1,218)(986)(1,178)(192)(17,526)(13,666)

3,860

802

(3,985)(4,786)

Cash and cash equivalents at beginning of period

90,324

68,625(21,699)

Cash and cash equivalents at end of period

57,672

58,634962

Net cash provided by operating activities

Net cash used in investing activities

Other
Net cash used in financing activities
Other

16