Sumitomo Heavy Industries, Ltd.
CONSOLIDATED FINANCIAL REPORTFor the Full Year Ended March 31, 2009

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, 2009

Summary of Consolidated Financial Results
For the Full Year Ended March 31, 2009
Presented May 11, 2009

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 securities reportfilingScheduled date of payment of cash
dividends

June 26, 2009
June 26, 2009--

1. FY 2009 Consolidated Results (April 1, 2008 to March 31, 2009)(1) Business Results(Units: millions of yen)
Current Full Term
April 1, 2008
to March 31, 2009

Previous Full Term
April 1, 2007
to March 31, 2008

% change% change

Net sales

642,918(2.7)

660,769

10.1

Operating income

56,940(26.8)

77,79021.1

Ordinary income

50,275(33.4)

75,46915.5

Net income

13,649(68.2)

42,974

15.1

22.62

Net income per share (yen)

71.19

Fully diluted net income per share----

Return on equity (ROE, %)

5.9

19.5

Return on assets (%)

7.5

11.8

Ordinary Income to net sales (%)

8.9

11.8

Note:
Equity method investment profit and loss:
Fiscal year ended March 31, 2009:
755 million yen
Fiscal year ended March 31, 2008: 2,436 million yen

1Consolidated Results for the Full Year
Ended March 31, 2009

(2) Financial Position(Units: millions of yen)
End of Current
Full YearAs of March 31, 2009

End of Previous
Full YearAs of March 31, 2008

Total assets

657,436

678,634

Shareholders’ equity

238,697

246,371

34.8

34.9

378.78392.80Equity ratio (%)
Net assets per share (yen)Note:
Equity:Fiscal year ended March 31, 2009: 228,581 million yen
Fiscal year ended March 31, 2008: 237,084 million yen(3) Cash Flows(Units: millions of yen)
Current Full Year
April 1, 2008 to
March 31, 2009

Previous Full Year
April 1, 2007 to
March 31, 2008

Cash flows from operating activities

34,67629,096

Cash flows from investing activities(35,924)(41,250)

Cash flows from financing activities

15,625(5,238)Cash and cash equivalents at period end

42,41429,8792. Dividends(Units: yen)
Year Ended March 31,
2008

Year Ended March 31,
2009

Year Ended March 31,
2010 (forecast)

Annual dividends per share
--

--

--

Second quarter

5.00

6.00

0.00

Third quarter

--

--

--

First quarterEnd of term

5.00

0.00

--

Annual dividends

10.00

6.00

--

Total dividends (millions of yen)

6,036

3,621

Payout ratio (consolidated, %)

14.0

26.5

Net assets dividend yield(consolidated, %)

2.7

1.6

--

Note:
The Company has established March 31 and September 30 as the dates of record for dividends in the Articles ofIncorporation. However, in regard to the fiscal year ending March 2010, there shall be no dividend for the
September 30 date of record. Further, the dividend for the March 31 date of record is yet to be determined.

2Consolidated Results for the Full Year
Ended March 31, 2009

3. FY 2010 Consolidated Forecasts (April 1, 2009 to March 31, 2010)(Units: millions of yen)
Second Quarter (Cumulative)
April 1, 2009 to Sept. 31, 2009

Full Year
April 1, 2009 to March 31,
2010

250,000% change(26.6)

530,000% change(17.6)

Operating income

0(100.0)14,000(75.4)

Ordinary income(2,500)--10,000(80.1)Net income(3,000)--3,500(74.4)

Projected net income per share (yen)(4.97)Net sales

5.80

4. Additional Notes(1) Transfers of important subsidiaries during the fiscal period (transfer of a specific subsidiary due to change in scope of
consolidation):
None
Newly consolidated:

0 companies

Excluded from consolidation:

0 companies(2) Changes in principles, procedures, and presentation of accounting treatment in preparing consolidated financial
statements (list of changes to the basis for presenting consolidated financial statements)(i) Changes resulting from revisions to accounting standards, etc.:

Yes(ii) Changes other than (i):None

Note: For further details, refer to page 25, 7.Revisions to Significant Items Forming the Basis for the Preparation of theConsolidated Financial Statements(3) Number of shares issued (common shares)(i) Number of shares issued at end of fiscal period (including treasury stock):
As of March 31, 2009
As of March 31, 2008

605,726,394 shares
605,726,394 shares(ii) Number of treasury shares at end of fiscal period
As of March 31, 2009
As of March 31, 2008

2,259,483 shares
2,144,702 shares

3

Consolidated Results for the Full Year
Ended March 31, 2009

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, despite the sharp continued increase in crude oil and raw material
prices, the Japanese economy trended mostly positively for the first half of the year. However, after September, theglobal financial crisis led to a significant decline in capital expenditures in the automobile, electrical and semiconductor
sectors. Further, extreme exchange rate fluctuations negatively impacted the revenues of export-reliant companies in asignificant manner. The combination of these two factors led to a rapid worsening of the domestic economy. Overseas
markets did not fare any better with the economies in the US and Europe facing an even deeper economic downturn
triggered by turmoil in the financial markets. Emerging economies such as China and India also saw a softening of therapid growth rates seen in recent years.
With this business environment as the backdrop, the Sumitomo Heavy Industries Group (hereinafter, “the Group”)
bucked the trend by achieving steady sales growth in the Environmental Protection Facilities, Plants and Other Segment;
the Ships, Steel Structures and Other Specialized Equipment Segment; and the Industrial Machinery Segment, with thebacklog of orders in these three segments being quite strong. Unfortunately, this trend did not manifest itself in theMass-Produced Machinery Segment and the Construction Machinery Segment where sales saw a significant
year-on-year decline.
The Group’s outlook is for a long-term continuation of the simultaneous global recession. For this reason, large-scale
investments that were included in the medium-term management plan that commenced this consolidated fiscal year
under review have been put on hold for the time being. Instead, the Group has made securing base revenues as themost pressing strategy to implement.
During the consolidated fiscal year under review, the Group emphasized the following measures not only as part of its
management strategy, but also in response to the worsening business environment.
(i) Responding to Changes in the Business Environment
The impact of the simultaneous global recession is not only being felt in the Japanese, US and European economies but
also in the BRIC countries (Brazil, Russia, India, and China) where rapid growth rates have softened recently. The
impact is also being felt in the resources, energy, and infrastructure sectors where growth was anticipated to occur prior
to the recession. In response to these changes in the business environment, the Group worked to reduce fixed costs byannouncing employee layoffs in certain segments. Further, efforts were made to optimize human resources bytransferring employees from the Mass-Produced Machinery Segment to other segments where the impact of therecession was comparatively low.
(ii) Continued Expansion of Global Projects
The Group continued to strengthen its overseas network of production, sales, and service locations. For example, during
the consolidated fiscal year, a new production plant built in China’s Tangshan City began the manufacturing of gearboxes and hydraulic excavators. Further, efforts were made to continue enhancing the supply chain as exemplified in the
expansion activities carried out at the gear motor plant in Vietnam.
Also, the Group made an offer to acquire the shares of SEN Corporation, an SHI and Axcelis Company (on April 1, 2009,
the name of the company was changed to SEN Corporation; hereafter referred to as “SEN”) from its joint-venture partner,
the US-based semiconductor equipment manufacturer, Axcelis Technologies, Inc. SEN is a manufacturer of ion
implanters, a type of device typically used in the semiconductor manufacturing process. Although negotiations on thismatter continued during the consolidated fiscal year, discussions were terminated due to the rapid decline of thesemiconductor market.
Later on during the year, the Group received a separate request from Axcelis Technologies, Inc. to sell its shares in SEN.
After fruitful negotiations, an agreement was reached whereby the Group would acquire the Axcelis-held shares and its
interests in related patents and sales rights for the ion implanters. This move makes it possible for the Group to manage
SEN in an agile manner, take advantage of potential synergies with other cutting-edge technologies held by the Group,and prepare for the exclusive sale of ion implanters to the global market.

4Consolidated Results for the Full Year
Ended March 31, 2009

In the Plastics Machinery area, the Group continued to strengthen its global product supply system, an area wherestrengthening was especially required in the Europe and US markets. This was achieved mainly through the transitioningof Sumitomo (SHI) Demag Plastics Machinery GmbH (the name of the company was changed from Demag ErgotechGmbH through the acquisition) into the Group’s business activities.
As the above measures show, the Group worked hard to strengthen its business make-up during the consolidated fiscal
year despite the downturn in the global economy.
(iii) Increasing Management Efficiency through Innovation
In addition to improving product innovation to promote the development of first-class products, the Group also worked to
inject innovation into the development, design, manufacturing, and sales process during the consolidated fiscal year to
cement its competitive superiority in the marketplace. One principle example of these efforts is the progress being madeto implement the Toyota Production System (TPS) in the manufacturing division.
(iv) Early Detection of Positive Effects Made by Recent Capital Expenditures
In overseas markets, the Group made efforts to improve its global supply chain mainly in the Mass-Produced Machinery
Segment and Construction Machinery Segment. Further, efforts were made to increase the cost competitiveness of its
production facilities in China and Vietnam, and increase manufacturing output of construction cranes in the US.
(v) Full Implementation of Compliance Measures
The Group has been actively implementing compliance and risk management measures in the spirit of Sumitomo’s
business philosophy. During the consolidated fiscal year under review, internal control systems were also introduced into
the operations of overseas subsidiaries, and further efforts were made with the goal to be recognized as a “Global
Company of Excellence” in the eyes of stakeholders.
Despite these efforts, the fiscal year under review saw orders decrease by 16% from the previous fiscal year to finish at
JPY600.7 billion and sales decrease by 3% from the previous fiscal year to finish at JPY642.9 billion on a consolidated
basis.
From the standpoint of profit and loss, the fiscal year under review saw operating income decrease by 27% from theprevious fiscal year to finish at JPY56.9 billion, and ordinary income decrease by 33% from the previous fiscal year tofinish at JPY50.3 billion on a consolidated basis. Moreover, consolidated net income decreased by 68% from theprevious fiscal year to finish at JPY13.6 billion as the Group accounted for several extraordinary losses including losses
arising from the devaluation of marketable securities. Finally, after-tax ROIC* was 9.6%.
On a non-consolidated basis, the fiscal year under review saw orders finish at JPY221.5 billion, sales finish at JPY241.5
billion, operating income finish at JPY10.8 billion, and ordinary income finish at JPY14.8 billion. Further, the Group
recorded a non-consolidated net loss of JPY10.7 billion for the fiscal year under review.
In regards to dividends from retained earnings for the consolidated fiscal year under review, considerations were made to
the fact that Group profit levels had declined, a loss was recorded on a non-consolidated basis, and the business climate
for the upcoming fiscal year is projected to remain challenging. With these considerations in mind, full-year dividends
were reduced by JPY4 from the previous year to JPY6 per share. Taking into account that the Group already
implemented an interim dividend offering of JPY6 per share, there will no distribution of dividends at the end of theconsolidated fiscal year (March 31, 2009).
*The ROIC (Return on Invested Capital) for the Group is calculated based on the following numerical formula:(Operating Income + Interest Income/Dividend Income) x 55% (1 – Effective Tax Rate)

ROIC=(Average Shareholder Equity for the Fiscal Year) + (Average Interest-Bearing Liabilities for the Fiscal Year)5

Consolidated Results for the Full Year
Ended March 31, 2009(2) Group Results by Segment(i) Mass-Produced Machinery
The Power Transmission Equipment business was impacted by the sudden downturn in the economic environment, andas a result, most equipment types with the exception of large-scale models saw a decline in orders and sales.
The Plastics Machinery business also saw a decline in orders due to the significantly worsened market conditions in theelectronics and automobile sectors. However, sales increased from the previous year mainly due to the positive impact
from the acquisition of a foreign subsidiary made in the previous fiscal year.
Other businesses in this segment saw a decline in orders and sales mainly due to the rapid worsening of market
conditions in the electronic machinery and semiconductor sectors. One positive note is in the area of proton-based
cancer treatment systems where the Group received a large-scale order during the consolidated fiscal year under review.
As a result, the segment as a whole saw orders decrease by 19% from the previous fiscal year to finish at JPY200.8
billion, and sales decrease by 2% from the previous fiscal year to finish at JPY227.2 billion. Operating income for thesegment decreased by 56% from the previous fiscal year to finish at JPY12.3 billion.
(ii) Environmental Protection Facilities, Plant and Others Segment
The Energy Plant business was able to capture orders for industrial power boilers from the domestic market and air
pollution prevention equipment from the overseas markets during the fiscal year under review. As a result, order levels
remained roughly unchanged from the previous fiscal year. Unfortunately, sales finished lower as compared to theprevious fiscal year.
The Water Treatment Plant business saw a decline in orders mainly due to a fall in private-sector demand. On the other
hand, sales in this sector increased due to the fact that there was a healthy pipeline of orders carried over from theprevious fiscal year.
As a result, the segment as a whole saw orders decrease by 8% from the previous fiscal year to finish at JPY84.2 billion,
and sales increase by 2% from the previous fiscal year to JPY92.6 billion. Operating income for the segment increasedby 55% from the previous fiscal year to finish at JPY10.7 billion.
(iii) Ships, Steel Structures & Other Specialized Equipment Segment
The Ship business was heavily impacted by the major decline in market conditions. Orders for ships remained
unchanged from the seven (7) received during the first half of the fiscal year. Despite this fact, efforts to increase
productivity implemented during the year resulted in the handing over of eight (8) medium-scale tanker vessels, anincrease of one (1) vessel from the previous fiscal year.
The Steel Structures and Machinery business saw a decline in orders as compared to the previous fiscal year mainly due
to the significantly worsened market conditions in the petrochemical industry. On the other hand, sales in this sector
increased due to the fact that there was a healthy pipeline of orders carried over from the previous fiscal year.
As a result, the segment as a whole saw orders decrease by 14% to finish at JPY78.1 billion, and sales increase by 4%
to JPY79.6 billion. Operating income for the segment decreased by 11% from the previous fiscal year to finish at
JPY12.6 billion.
(iv) Industrial Machinery Segment
The Transportation Machinery business saw a rise in orders from steelmakers but a decline in orders from shipbuilders.
As a result, orders declined as compared to the previous fiscal year. On the other hand, sales in this sector increased
from the previous fiscal year due to the fact that there was a healthy pipeline of orders carried over.
The Turbine and Pump business saw a slowdown in the second half of the year. However, strong sales ofbiomass-based power generating turbines to emerging countries facing tight supply and demand in their respective
power sectors buffered this trend. As a result, orders in this segment were generally flat as compared to the previous
fiscal year and sales increased as compared to the previous fiscal year.
For the segment as a whole, orders remained roughly flat from the previous fiscal year to finish at JPY98.8 billion, andsales increased by 4% from the previous fiscal year to finish at JPY84.3 billion. Operating income for the segment
increased by 12% from the previous fiscal year to finish at JPY13.6 billion.

6

Consolidated Results for the Full Year
Ended March 31, 2009(v) Construction Machinery Segment
The Hydraulic Excavator business trended well during the first half of the fiscal year under review, but during the second
half the simultaneous global downturn put significant downward pressure on demand and order levels declined. The
rapid fall in demand for orders in the business meant that sales levels were hit hard during the second half of the year
and this trend carried over to a full-year decline in sales.
The Crane business also saw a decline in orders as compared to the previous fiscal year mainly due to the global
economic downturn and its effect on the North American infrastructure sector. Despite this, the business was able tomaintain sales at roughly the same levels as the previous fiscal year.
As a result, the segment as a whole saw orders decrease by 26% from the previous fiscal year to finish at JPY138.8
billion and sales decrease by 11% from the previous fiscal year to finish at JPY159.2 billion. Operating income for thesegment decreased by 54% from the previous fiscal year to finish at JPY7.5 billion.
(3) Outlook for the Upcoming Fiscal Year (Ending March 31, 2010)
With the global financial crisis as the backdrop, the condition of the Japanese economy rapidly worsened as capital
expenditures declined sharply and currency exchange rates showed extreme fluctuations, with the revenues ofexport-based companies consequently decreasing by a wide margin. Overseas economies also remained in dire straits
triggered by turmoil in the financial markets mainly in the US and Europe. Emerging markets were also not spared as
growth slowed. As a consequence, global markets continued to exhibit challenging conditions and the outlook is for the
long-term continuation of the current simultaneous global downturn. However, the long-term growth outlook for emerging
markets such as the BRIC countries remains unchanged, and as such, the basic premise that growth opportunities for
the Group continue to lie in overseas markets has not changed.
In this type of economic environment, it is necessary to concede that the aggressive growth goals set forth in the Global
21 Medium-Term Management Plan will likely be difficult to achieve. However, the Group actually sees the current
economic downturn and business climate as an opportunity, and will make further efforts to enhance its ability toincrease revenues despite a decrease in sales by carrying out the measures introduced in the medium-term
management plan.
As of the date this document is published, the outlook for the upcoming fiscal year ending March 31, 2010 is as follows:
Consolidated Results

AmountCompared to 2008 Fiscal Year

Sales

JPY530 billion-17.6%

Operating income

JPY14 billion-75.4%

Ordinary Income

JPY10 billion-80.1%Net income

JPY3.5 billion-74.4%(The above figures are calculated at an exchange rate of JPY90 against the dollar)* The above forecast and outlook 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 and outlook due to avariety of factors.

7

Consolidated Results for the Full Year
Ended March 31, 2009

2. Analysis of Financial Condition
Total assets at the end of the consolidated fiscal year stood at JPY657.4 billion, a decrease of JPY21.2 billion from theprevious fiscal year. This was mainly due to decreases in accounts receivables from recoveries, devaluation ofmarketable securities, and a loss on goodwill outweighing the increase in inventory assets, the increase in fixed assets
from capital expenditures and the increase in assets relating to the consolidation of SEN into the Group. The amount ofoutstanding interest-bearing debt increased by JPY20.8 billion from the previous fiscal year to JPY110.3 billion, as theacquisition of SEN resulted in the Group taking on more interest-bearing debt. Moreover, the ratio of outstanding
interest-bearing debt to total assets worsened to 16.8% at the end of the consolidated fiscal year. Finally, shareholders’equity decreased by JPY8.5 billion to stand at JPY228.6 billion, a reflection of the Group’s business performance for the
consolidated fiscal year, with capital stock increasing and the marketable securities valuation difference decreasing.
Cash flow from operating activities was JPY34.7 billion for the consolidated fiscal year, an increase of JPY5.6 billion fromthe previous fiscal year, with accounts payable decreasing, inventory assets increasing, and accounts receivable
decreasing. Cash flow for investing activities was JPY35.9 billion for the consolidated fiscal year, a decrease of JPY5.3
billion from the previous fiscal year, with increases in capital expenditures buffered by decreases in expenses relating to
the acquisition of subsidiary shares for the purpose of amending their consolidation status and acquisitions of marketablesecurities. Cash flow from financing activities was JPY15.6 billion for the consolidated fiscal year, an increase of JPY20.9
billion from the previous fiscal year, with cash outlays for dividend payments being exceeded by the increase inborrowings.
The following table summarizes trends in the cash-flow index of the Group:
FY2004

FY2005

FY2006

FY2007

FY2008

Shareholders’ equity ratio

24.1

29.0

34.1

34.9

34.8

Shareholders’ equity ratio on amarket price basis

44.6

117.4

118.0

57.3

29.8

Redemption period (years)

3.7

2.5

1.6

3.1

3.2

Interest coverage ratio (multiples)

15.0

21.0

34.1

22.3

21.5

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. Group Policy on Profit Sharing
The Group policy on profit sharing is to pay a dividend amount commensurate to the income earned during the period,
and to increase such amount while making an effort to ensure earnings retention sufficient to sustain a stable businessmodel for the long term.
In regards to dividends for the consolidated fiscal year, considerations were made to the fact that Group profit levels had
declined, a loss was recorded on a non-consolidated basis, and the business climate for the upcoming fiscal year is
expected to remain challenging. With these considerations in mind, full-year dividends were reduced by JPY4 from theprevious year to JPY6 per share. Taking into account that the Group already implemented an interim dividend offering of
JPY6 per share, there will no distribution of dividends at the end of the consolidated fiscal year (March 31, 2009).

8

Consolidated Results for the Full Year
Ended March 31, 2009

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.
On March 30, 2009, SEN and one other company were consolidated through the acquisition of shares in the respective
companies. Further, two companies of relatively limited importance and six companies for which mergers and liquidation
activities had been completed were excluded from consolidation.

1. Mass-Produced Machinery Segment
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 of manufacturing anddistribution of the products falls to Sumitomo Machinery Corporation of America in North America; Sumitomo (SHI) Cyclo
Drive Germany GmbH in Europe; Sumitomo (SHI) Cyclo Drive Asia Pacific Pte., Ltd. in Southeast Asia; and Sumitomo(SHI) Cyclo Drive China, Ltd. in China. Distribution of the products in Japanese markets is the responsibility of Sumitomo
Heavy Industries PTC Sales Co., Ltd.
In the area of plastics machinery equipment, Sumitomo Heavy Industries is responsible for the overall manufacturing anddistribution of such products. However, other companies are responsible for the manufacturing, sales, and maintenanceof the products on a global basis. They are SHI Plastics Machinery, Ltd., which is responsible for distribution andafter-sales service in Japan; SHI Plastics Machinery Inc. of America, which is responsible for the overall manufacturing
and distribution of products in North America; and Sumitomo (SHI) Demag Plastics Machinery GmbH, which is
responsible for overall operations in Europe.
Sumitomo Heavy Industries is responsible for overall manufacturing and distribution in the areas of laser (processing)systems, cryogenic equipment, precision-positioning devices, accelerators, LCD manufacturing equipment, precision
forging and casting, control systems equipment, and defense equipment.
In the area of semiconductor manufacturing equipment, both Sumitomo Heavy Industries and SEN are responsible foroverall manufacturing and distribution.
Finally, Sumitomo NACCO Materials Handling Co., Ltd. is responsible for the overall manufacturing and distribution of
forklift equipment.

2. Environmental Protection Facilities, Plants and Others Segment
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, Sumiju Environmental Engineering Co., Ltd. is responsible for the operation andmaintenance (O&M) of industrial waste treatment systems and water treatment systems.
Real estate sales in this segment are handled by Sumitomo Heavy Industries, while Lightwell Co., Ltd. is responsible forthe development and distribution of a wide variety of software products.
Finally, Izumi Food Machinery Co., Ltd. is responsible for the overall manufacturing and distribution of food machinery.

3. Ships, Steel Structures and Other Specialized Equipment Segment
Ship manufacturing is carried out by Sumitomo Heavy Industries Marine and Engineering Co., Ltd. while Sumitomo
Heavy Industries is responsible for the distribution of such ships. Further, the manufacturing and distribution of reactor
vessels is also handled by Sumitomo Heavy Industries.

9

Consolidated Results for the Full Year
Ended March 31, 2009

4. Industrial Machinery Segment
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 Engineering and Services Co., Ltd.
is responsible for the overall manufacturing and distribution of material handling systems. Further, the same company isalso responsible for the after-sales service of material handling systems along with logistics and handling systems.
Sumitomo Heavy Industries Techno-Fort Co., Ltd. is responsible for the overall manufacturing and distribution of forging
machines.
Finally in this segment, Shin Nippon Machinery Co., Ltd. is responsible for the overall manufacturing and distribution ofindustrial turbines and pumps.

5. Construction Machinery Segment
In the area of hydraulic excavators and road construction machinery, Sumitomo (SHI) Construction Machinery
Manufacturing Co., Ltd. is responsible for the manufacturing and distribution of such products to overseas markets while
Sumitomo (SHI) Construction Machinery Sales Co., Ltd. is responsible for the distribution for such products to theJapanese market. Both Sumitomo (SHI) Construction Machinery Manufacturing Co., Ltd. and Sumitomo (SHI)
Construction Machinery Sales Co., Ltd. fall under the umbrella of Sumitomo (SHI) Construction Machinery Co., Ltd., aholding company.
In the area of cranes, Hitachi Sumitomo Heavy Industries Construction Crane Co., Ltd. is responsible for overall
development and distribution along with the 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 suchproducts in North America.
The above-stated status of the business groups is shown on the diagram of businesses in the SHI Group that follows.

10

SHI Cyclo Drive China, Ltd.
Sumitomo Heavy Industries PTC Sales
Co., Ltd.
SHI Plastics Machinery, Ltd.
SHI Plastics Machinery, Inc. ofAmerica

Sumitomo (SHI) Demag Plastics
Machinery GmbH

Distribution of products←------Distribution of products←------Supply of components
Based in North America←-------

Based in Europe←-------

11
Supply of equipment←-------

Sumitomo NACCO Materials HandlingCo., Ltd.

Supply of equipment←-------

Sumitomo Heavy Industries HimatexCo., Ltd.

Purchase of materials-------→

Sumitomo Heavy Industries Environment
Co., Ltd.
↓Consignment of operation and maintenanceConsignment of operation andmaintenance-------→

Sumiju Environmental Engineering Inc.

Purchase of equipment←-------

Nihon Spindle Mfg. Co., Ltd.

Purchase of equipment←-------

Izumi Food Machinery Co., Ltd.

Consignment of softwaredevelopment--------→

Lightwell Co., Ltd.

Consignment of maintenance andmanagement--------→
Purchase of equipment←-------

Sumitomo Heavy Industries Engineering &Services Co., Ltd.

Lease of property, plant, andequipment-------→

Sumitomo Heavy Industries Techno-Fort Co.,Ltd.

Lease of property, plant, andequipment-------→

Sumiju Kenki Crane Co., Ltd.

Shin Nippon Machinery Co., Ltd.

Note:

Consignment of design andmanufacturing←-------

Consolidated subsidiary

Construction Machinery

Sumitomo Heavy Industries Marine &Engineering Co., Ltd.

Ships, Steel Structures and Other
Specialized Equipment↓Lease of property, plant, and equipment
Hitachi Sumitomo Heavy Industries
Construction Crane Co., Ltd.
↓Supply of equipment
Link-Belt Construction Equipment Company
Sumitomo Construction Machinery Co., Ltd.
↓Consignment of manufacturing
Lease of property, plant, andequipment-------→

Sumitomo Construction Machinery
Manufacturing Co. Ltd.
↓ Consignment of manufacturing

Lease of property, plant, andequipment-------→

Sumitomo Construction Machinery Sales Co.
Ltd.

Equity method affiliate*On April 1, 2009, Sumitomo (SHI) Construction Machinery Co., Ltd. took over control of Sumitomo (SHI) Construction Machinery Manufacturing Co., Ltd.

Consolidated Results for the Full Year
Ended March 31, 2008

SEN

Environmental Protection Facilities, Plant,
and Others

Sumitomo (SHI) Cyclo Drive Asia
Pacific., Ltd.

Industrial Machinery

Sumitomo (SHI) Cyclo Drive Germany,GmbH

Sumitomo Heavy Industries Ltd.

Sumitomo Machinery Corporation ofAmerica

Purchase of equipment-------→
Supply of components;
Based in North America←------Supply of components;
Based in Europe←------Supply of components;
Based in Southeast Asia←------Supply of components;
Based in China←-------

Mass-Produced Machinery

SEISA Gear, Ltd.

Consolidated Results for the Full Year
Ended March 31, 2009III. Management Policies
1. Basic Management Policy
The Group is guided by the corporate philosophy set forth by the Sumitomo Group. Remembering the two components ofthe philosophy, namely “the placing of prime importance on integrity and sound management on the conduct of its
business” and “not pursuing easy gains or acting imprudently under any circumstances”, is critical during these times ofturmoil, as these principles should create the overall vision for the Group in any environment, regardless of the era or thestate of economy. The Group rigorously complies with the spirit of the philosophy and actively pursues the reformation of
the business organization so that it is able to build a strong corporate culture.
The Group also believes that by focusing on “creating value for our customers” and thereby earning the long-term trust ofcustomers, it can achieve sustainable growth and an improvement of corporate value. Succeeding in this task will lead to
the Group meeting its corporate citizenship responsibilities to its shareholders, employees, and surrounding
communities.
In order to ensure a high level of stable growth on the global stage, the Group is committed to becoming a “Systematic
Knowledge-Creating Company” that is able to continuously provide customers with first-class products. Moreover, theGroup is actively strengthening its marketing, development, and production efficiencies in the pursuit of producing“workmanship.”

2. Target Management Benchmarks
ROIC has been set forth as an important management benchmark for the Sumitomo Heavy Industries Group. The
Group’s goal is to achieve ROIC figures that exceed WACC and maintain levels at 10% or greater on an annual basis.

3. Medium- to Long-Term Management Strategy
The Global 21 Medium-Term Management Plan sets forth three main policies for the Group. These are:i)

Accelerate the development of global markets;ii) Promote innovation on a group-wide basis; andiii) Pursue a synergistic value chain.
Further, the plan sets forth financial goals of JPY850 billion for sales and JPY100 billion for operating income by FY2010.
Regrettably, the Group concedes that achieving these financial targets will be extremely difficult under the current
economic environment.
However, the direction of the Group and the policies to be implemented according to the Medium-Term Management
Plan remain unchanged. Moreover, the Group actually sees the current economic downturn and business climate as anopportunity for growth, and will make further efforts to enhance its core ability to increase revenues despite a decrease insales.

4. Action Items for the GroupIn order for the Group to become an organization that is able to generate income despite a rapid decline in the businessenvironment, the following measures need to be implemented in an aggressive manner:(1) Enhancing the Group’s Ability to Succeed in a Changing Environment
The current global recession is on an unprecedented scale. Moreover, this downturn is expected to continue in thelong-term, and it therefore has the potential to completely change the global business environment as we know it today.
In this era of change, the two most important tasks to focus on for the Group are thoroughly reviewing and appropriately
managing expenses, and restructuring businesses to improve competitiveness so that the Group is able to takeadvantage of opportunities and grow when the period of economic recovery begins.

12Consolidated Results for the Full Year
Ended March 31, 2009

More specifically, as capital expenditures rapidly decline regardless of industry or geographic location, the market size of
the Group’s main business is shrinking at an unprecedented pace. In response to this trend, the Group needs toimplement cost reductions by reevaluating its business organization on a global basis. Through this exercise, fixed
assets can be scaled down and variable expenses can be reduced by looking at efficiencies achieved by global
procurement and manufacturing methods.
From the standpoint of measures to improve competitiveness, the Group will work to anticipate the regional andsegmental transformations that are likely to occur in the global markets once economic recovery begins. Further, theGroup will use this exercise to make any necessary modifications to its existing business structure so that readiness tochanges in the demand structure can be improved.
(2) Continued Expansion of Global Operations
At the end of the current global economic downturn, Asia is expected to play an even more important role in the global
economy as dependence on the US lessens and China becomes the world’s growth engine. The Group’s global strategy
begins with a focus on this point and the construction of new manufacturing plants in China and Vietnam in recent times
is core to this strategy. As of the consolidated fiscal year under review, manufacturing output at these plants has reachedfull scale. This not only allows the Group to reduce the cost of finished goods but also to decouple the Group from theyen, enabling a level of cost-competitiveness that is not susceptible to currency rate fluctuations.
In addition, the new manufacturing plant in China was not built for the sole purpose of reducing the cost of finished goods.
It was also built with the aim to be situated in the next generation of large-scale markets. This plant manufactures gearboxes and hydraulic excavators, pertinent because China is one of the first countries in the world where the impact of agovernmental fiscal stimulus package has become evident, as can be seen in the recovery in the demand forconstruction machinery and in the economy as a whole. As production in China gets back on track, the Group anticipatesa strong positive impact on financial performance in the coming years.
The economic development of Asia, and China in particular, will be built on the recovery and expansion of the electronic
devices and components industry, namely the large market for semiconductors. The full consolidation of SEN, amanufacturer of ion implanters (one type of semiconductor manufacturing device), into the Group is intended to enhance
the Group’s ability to expand sales in the Asian market.
In Europe, the economic downturn has been going on for about three years now. However, as signs of recovery begin to
emerge, the Group is in a strong position to take advantage of sales opportunities in this market, especially in the field ofelectric injection molding machines, an area of global leadership for the Group. The acquisition of Sumitomo (SHI)
Demag Plastics Machinery GmbH, a manufacturer of plastic processing machines, in the previous year was part of acareful plan to strengthen the Group’s organizational presence in the region in preparation for further global expansion.
(3) Promotion of Innovation on a Group-Wide Basis
The continued expansion into global markets and the activities associated with optimally positioning the Group in suchmarkets will ultimately form a solid footing for the Group’s manufacturing and sales activities worldwide. With this in mind,
the Group has also been actively engaged in promoting innovation in order to maintain and improve the competitive
superiority of its products. Through a relentless focus on research, modifications, and improvements to technology, theGroup has been able to capture the top market share in Japan for such products as power transmissions and controls,
plastics machinery, ion implanters, and circulating fluidized bed boilers. Further, the Group has had the honor to
distribute these products and others to the global marketplace. This history of achievement continues to drive the Groupto develop globally leading technologies and to manufacture and sell products based on these strategies to customers
worldwide.
Further, the Group believes that innovation should not end with research and development. In fact, efforts are being
made to inject innovation on a group-wide basis in processes such as product development, design, manufacturing, anddistribution. For example, the Ship division led the world five years ago when it introduced the Toyota Production System(TPS) into the shipbuilding process. This type of process innovation is being implemented steadily in all of the Group’s
activities.
Finally, efforts are being made to streamline each division, organization, subsidiary, and affiliated company in the Groupso that management can act flexibly and efficiently and with greater innovation.

13

Consolidated Results for the Full Year
Ended March 31, 2009

(4) Full Implementation of Compliance Measures
Now more than ever, companies are being asked to uphold their principles concerning social responsibility, and there isa need for the Group to thoroughly implement efforts towards compliance throughout the organization and to conductbusiness activities in accordance with a Code of Conduct that befits a “Global Company of Excellence.” With this in mind,
the Group is actively engaged in ensuring compliance with rules and regulations in all of its business activities on a
global basis.

14

Consolidated Results for the Full Year
Ended March 31, 2009

IV. Consolidated Financial Statements
1. Consolidated Balance Sheets(Units: millions of yen)
End of Full YearAs of March 31, 2008

End of Full YearAs of March 31, 2009

AmountAmountAssetsCash and deposits

30,25644,685

Notes and accounts receivable

185,912

155,664

Products

39,71743,260Works in progress

70,74984,826

Raw materials and stock

19,985

21,294

Deferred income taxes

8,501

7,631

Other

27,66323,945(836)(1,012)

381,946

380,293

Buildings and structures

45,88749,987

Machinery and transportation tools

31,66336,344

Land

116,536

115,909

Construction in progress

5,406

3,864

Other

4,962

7,925

Tangible assets

204,454

214,028

Intangible assets

15,762

6,392

53,90528,227

98

145

Deferred income taxes

10,346

11,940Other

13,682

17,875

Allowance for doubtful accounts(1,560)(1,464)76,471

56,722

Fixed assets

296,688277,143

Total assets

678,634

657,436

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, 2009

(Units: millions of yen)
End of Full YearAs of March 31, 2008

End of Full YearAs of March 31, 2009

AmountAmountLiabilities
Notes and accounts payable

167,008

136,090

Short-term bank loans

16,932

34,176

Commercial paper

18,00024,000Long-term loans due within one year

2,724

1,136

--

10,000

Income tax payable

14,5234,810

Advance payments received oncontracts

48,60049,977

Allowance for guaranteed construction

6,360

5,661

Allowance for loss on ordered
construction

29

274

Allowance for loss on business transfer

161

161

Allowance for business restructuring

--

1,842

35,84334,258310,181

302,385

Bonds

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

41,911

41,027

Employees’ severance and retirement
benefits

32,74834,808

Allowance for loss on product liability

285

237

Deferred income taxes on revaluation

32,30632,211

Other

4,831

8,071

Long-term liabilities

122,082

116,353

Total liabilities

432,263

418,738

Common stock

30,87230,872

Capital surplus

20,52420,503Retained earnings

142,053

148,725

Treasury stock(1,425)(1,471)

Stockholders’ equity

192,024

198,629

Unrealized gains on securities

4,224

(547)

Profit (loss) on deferred hedge

2,459

1,945

Corporate bonds redeemable within one
year

Other
Current liabilities

Net assets

16Consolidated Results for the Full Year
Ended March 31, 2009

End of Full YearAs of March 31, 2008

End of Full YearAs of March 31, 2009

AmountAmount(999)(3,008)

Revaluation reserve for land

40,47740,360Foreign currency translation adjustments(1,101)(8,798)

Appraisal and translation differences

45,06029,952

Minority interests

9,287

10,116

Total net assets

246,371

238,697

Liabilities and net assets

678,634

657,436

Adjustment regarding pension
obligations of consolidated overseas
subsidiaries

2. Consolidated Income Statements(Units: millions of yen)Previous Full Year
April 1, 2007 to
March 31, 2008

Current Full Year
April 1, 2008 to
March 31, 2009

AmountAmountNet sales

660,769

642,918

Cost of sales

505,366

503,072

Gross income

155,403

139,847

Selling, general & administrative expenses

77,61382,907

Operating income

77,79056,940Interest income

245

268

Dividend income

945

912

Equity in earnings of unconsolidated
subsidiaries and affiliated companies

2,436

755

Other (net)

2,921

1,872

6,547

3,806

Interest expenses

1,194

1,611

Exchange rate losses

1,632

1,941

Other (net)

6,041

6,919

Total non-operating expenses

8,867

10,471

Ordinary income

75,46950,275689--

Non-operating income

Total non-operating income
Non-operating expenses

Extraordinary gains
Gain on sale of securities

17

Consolidated Results for the Full Year
Ended March 31, 2009

Previous Full Year
April 1, 2007 to
March 31, 2008

Current Full Year
April 1, 2008 to
March 31, 2009

AmountAmountTotal extraordinary gains

689

--

Loss on devaluation of marketablesecurities

--

6,043

Goodwill amortization amount

--

4,932

Business restructuring expenses

--

2,019

700

1,904

Extraordinary losses

Loss on impaired assets--

Loss relating to violations of antitrust
laws

1,638

1,204

Settlement figure
Amortization of variance amount relating
to the change in accounting standards forthe treatment of retirement benefits for
new consolidated subsidiaries

980

Expenses associated with the relocationof the head office

759

--

--

--

Total extraordinary losses

3,643

16,536

Income before income taxes

72,51533,739Corporate income tax current

28,87017,711

Corporate income tax deferred

(58)

979

Total corporate income taxes

28,812

18,690729

1,400

42,974

13,649Minority interests
Net income

3. Consolidated Statements of Changes to Stockholders' Equity(Units: millions of yen)Previous Full Year
April 1, 2007 to March 31, 2008

Current Full Year
April 1, 2008 to March 31, 2009

Stockholders’ equity
Capital stock
Balance at end of previous period

30,87230,872----30,87230,872

20,51820,524

Fluctuation in the period
Total fluctuation in the period
Balance at end of period
Capital surplus
Balance at end of previous period

18Consolidated Results for the Full Year
Ended March 31, 2009

Previous Full Year
April 1, 2007 to March 31, 2008

Current Full Year
April 1, 2008 to March 31, 2009

Fluctuation in the period
Disposal of treasury stock

6

(21)

Total fluctuation in the period

6

(21)

20,52420,503104,950

142,053--(409)

Dividends(5132)(6,639)Net income

42,974

13,649

Disposal of treasury stock

--

(3)

Difference from transfer ofrevaluation reserve for land

(66)

117

Cumulative effect on U.S.
subsidiary of application of FIN 48

(202)

--

Increase from increase of
consolidated subsidiaries withchange in scope of consolidation

67--

Decrease from reduction of
consolidated subsidiaries
accompanying change of scope of
consolidation

(449)

(44)

Decrease from reduction of equity
method affiliates accompanying
change of scope of consolidation

(90)

--

1

--

37,1037,081

142,053

148,725(996)(1,425)Acquisition of treasury stock

(442)

(112)

Disposal of treasury stock

13

66

Total fluctuation in the period

(429)

(46)

(1,425)

1,471

155,344

192,024

Balance at end of period
Earned surplus
Balance at end of previous period
Amount impacted by the adoption of
Accounting Standards Board ofJapan, Practical Issues Task Force
No. 18Fluctuation in the period

Increases due to mergers
Total fluctuation in the period
Balance at end of period
Treasury stock
Balance at end of previous period
Fluctuation in the period

Balance at end of period
Stockholders' equity
Balance at end of previous period

19Consolidated Results for the Full Year
Ended March 31, 2009

Previous Full Year
April 1, 2007 to March 31, 2008

Amount impacted by the adoption of
Accounting Standards Board ofJapan, Practical Issues Task Force
No. 18Current Full Year
April 1, 2008 to March 31, 2009

--

(409)

Dividends(5,132)(6,639)Net income

42,974

13,649Acquisition of treasury stock

(442)

(112)

Disposal of treasury stock19

42

Difference from transfer ofrevaluation reserve for land

(66)

117

Cumulative effect on U.S.
subsidiary of application of FIN 48

(202)

--

Increase from increase of
consolidated subsidiaries withchange in scope of consolidation

67--

Decrease from reduction of
consolidated subsidiaries
accompanying change of scope of
consolidation

(449)

(44)

Decrease from reduction of equity
method affiliates accompanying
change of scope of consolidation

(90)

--

1

--

36,680

7,014

192,024

198,629

11,195

4,224

Fluctuations other thanstockholders' equity in the period(net)(6,971)(4,771)

Total fluctuation in the period(6,971)(4,771)

4,224

(547)

(1,652)2,459

Fluctuation in the period

Increases due to mergers
Total fluctuation in the period
Balance at end of period
Appraisal and translation differences
Unrealized holding gains on othersecurities
Balance at end of previous period
Fluctuation in the period

Balance at end of period
Gain (loss) on deferred hedge
Balance at end of previous period
Fluctuation in the period

20Consolidated Results for the Full Year
Ended March 31, 2009

Previous Full Year
April 1, 2007 to March 31, 2008

Current Full Year
April 1, 2008 to March 31, 2009

Fluctuations other thanstockholders' equity in the period
(net)

4,112

(515)

Total fluctuation in the period

4,112

(515)

2,459

1,945

(772)

(999)

Fluctuations other thanstockholders' equity in the period
(net)

(227)

(2,009)Total fluctuation in the period(227)(2,009)(999)(3,008)40,41140,477

Fluctuations other thanstockholders' equity in the period
(net)

66

(117)

Total fluctuation in the period

66

(117)

40,47740,360166(1,101)

Fluctuations other thanstockholders' equity in the period(net)(1,267)(7,696)

Total fluctuation in the period(1,267)(7,696)(1,101)(8,798)49,34845,060Fluctuations other thanstockholders' equity in the period(net)(4,287)(15,108)

Total fluctuation in the period(4,287)(15,108)

Balance at end of period
Adjustment of pension obligation foroverseas subsidiaries
Balance at end of previous period
Fluctuation in the period

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

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

Balance at end of period
Total appraisal and translationdifferences
Balance at end of previous period
Fluctuation in the period

21Consolidated Results for the Full Year
Ended March 31, 2009

Previous Full Year
April 1, 2007 to March 31, 2008

Balance at end of period

Current Full Year
April 1, 2008 to March 31, 2009

45,06029,952

1,319

9,287

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

7,969

829

Total fluctuation in the period

7,969

829

9,287

10,116

206,010

246,371--(409)

Dividends(5,132)(6,639)Net income

42,974

13,649Acquisition of treasury stock

(442)

(112)

Disposal of treasury stock19

42

Difference from transfer ofrevaluation reserve for land

(66)

117

Cumulative effect on U.S. subsidiaryof application of FIN 48

(202)

--

Increase from increase of
consolidated subsidiaries withchange in scope of consolidation

67--

Decrease from reduction of
consolidated subsidiaries
accompanying change of scope of
consolidation

(449)

(44)

Decrease from reduction of equity
method affiliates accompanying
change of scope of consolidation

(90)

--

1

--

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

3,682(14,279)

Total fluctuation in the period

40,362(7,265)

246,371

238,697

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

Balance at end of period
Total net assets
Balance at end of previous period
Amount impacted by the adoption of
Accounting Standards Board of Japan,
Practical Issues Task Force No. 18
Fluctuation in the period

Increases due to mergers

Balance at end of period

22Consolidated Results for the Full Year
Ended March 31, 2009

4. Consolidated Cash Flows Statement(Units: millions of yen)Previous
Full Year
April 1, 2007 to
March 31, 2008

Current
Full Year
April 1, 2008 to
March 31, 2009

Cash flows from operating activities
Income before income taxes

72,51533,73913,78818,320Gain (loss) on valuation of marketable securities

84

6,043

Loss on impaired assets

700

1,904

Goodwill amortization amount

--

4,932

Business restructuring expenses

--

2,019

Loss relating to violation of antitrust laws

--

1,638

Equity in earnings of unconsolidated subsidiaries andaffiliated companies(2,436)(755)

Increase (decrease) in allowances

1,591

1,329

Interest and dividend income(1,190)(1,179)Interest expenses

1,194

1,611

Increase (decrease) in notes and accounts receivable(9,522)30,033

Increase (decrease) in inventories(21,758)(19,021)

Increase (decrease) in notes and accounts payable

5,755(25,368)

Other (net)(3,030)7,142

57,69062,387

Interest and dividend received

2,499

1,712

Interest expenses(1,303)(1,615)

Payments for income taxes(29,789)(27,807)

29,096

34,676

140

55

Payments for securities(5,283)(475)

Payments for acquisition of subsidiaries’ stock
accompanying changes in scope of consolidation(11,944)(7,921)

769

1,045

Net cash acquired through stock swap with subsidiaries

1,390

--

Expenditures relating to the payment of contributed
capital to affiliated companies(3,465)(4,511)

Payments for purchases of property, plant andequipment(24,243)(28,073)

1,429

1,112

Depreciation

Subtotal

Net cash provided by operating activities
Cash flows from investing activities
Increase (decrease) in time deposits

Proceeds from sale of securities

Proceeds from sale of property, plant and equipment

23

Consolidated Results for the Full Year
Ended March 31, 2009

Previous
Full Year
April 1, 2007 to
March 31, 2008

Current
Full Year
April 1, 2008 to
March 31, 2009

Payments for long-term loans receivable

(68)

(57)

Collection of long-term loans receivable

77

64

Increase (decrease) in short-term loans receivable

(502)

3,137

Other (net)

450

(299)

(41,250)(35,924)

Net increase (decrease) in short-term loans(5,742)

19,643

Net increase (decrease) in commercial paper

3,000

6,000

Proceeds from long-term debt

17,500384

Repayments for long-term debt

(14,443)(2,857)

19

42

(442)

(112)

(5,115)(6,628)

(15)

(382)

--

(466)

(5,238)15,625

Effect of exchange rate changes on cash and cash
equivalents(143)(1,818)Net increase (decrease) in cash and cash equivalents(17,535)

12,560Cash and cash equivalents at beginning of year

47,52329,879

Increase due to new consolidated company

161

--

Net decrease from the change in consolidated companies

(292)

(38)

22

14

29,87942,414

Net cash used in investing activities
Cash flows from financing activities

Proceeds from sale of treasury stock
Disbursement for acquisition of treasury stock
Cash dividends paid
Payment of dividends for minority stockholders
Expenditures relating to the repayment of finance leaseobligations
Net cash used in financing activities

Increase due to merger and acquisition
Cash and cash equivalents at end of year24Consolidated Results for the Full Year
Ended March 31, 2009

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

6. Significant Items Forming the Basis for the Preparation of the Consolidated
Financial Statements(1) Valuation Basis and Method for Inventory
Work in progress is mainly valuated at cost based on the specific cost method (the amounts listed on the balance sheet
are calculated by using the book-value write-down method as asset profitability declines). Finished goods, semi-finishedgoods, and raw materials in inventory are mainly valuated at cost based on the gross average method (the amounts
listed on the balance sheet are calculated by using the book-value write-down method as asset profitability declines).
(2) Depreciation Method Used for Important Depreciable Assets(i) Tangible Fixed Assets (Excluding Leased Assets)
Tangible fixed assets are depreciated using the declining balance method.
Further, the calculations for durable lifetime and residual value of tangible fixed assets are mainly based on the method
specified in the Corporate Tax Law. However, Sumitomo Heavy Industries and several of its subsidiaries are using thestraight-line method to depreciate buildings (excluding building improvements) acquired after April 1, 1998.
(Additional Information)
Sumitomo Heavy Industries, along with several of its Japan-based subsidiaries, took the opportunity to the review theusage conditions of its assets with the revisions to the Corporate Tax Law in fiscal 2008. As a result, the durable lifetimeof a portion of equipment and other assets has been amended. The effect of these changes on the consolidated financial
statements is considered to be non-material in nature.
(ii) Non-Tangible Fixed Assets (Excluding Leased Assets)
Non-tangible fixed assets are depreciated using the straight-line method.
Further, the calculations for durable lifetime and residual value of tangible fixed assets are mainly based on the method
specified in the Corporate Tax Law. However, software for internal use within the Group is depreciated using thestraight-line method based on an availability period of five years.
(iii) Leased Assets
Leased assets are depreciated using the straight-line method with the durable lifetime set as the term of the lease and azero residual value. However, those finance lease transactions that do not transfer ownership that are deemed to be low
in importance or began before March 31, 2008 are depreciated using the method considered standard for leasetransactions.
With the exception of the items stated above, there have been no material changes to the “Significant Items Forming theBasis for the Preparation of the Consolidated Financial Statements” since the most recent financial statements(submitted June 27, 2008). Disclosure of such items has therefore been omitted.

7. Revisions to Significant Items Forming the Basis for the Preparation of theConsolidated Financial Statements(1) Application of the “Financial Accounting Standard for the Measurement of Inventories”
Traditionally, inventory held for sale in the ordinary course of business was mainly carried at cost. However, the adoptionof the “Financial Accounting Standard for the Measurement of Inventories (Accounting Standard - ASBJ Statement No. 9
dated July 5, 2006)” during the consolidated fiscal year under review resulted in the carrying of such inventory at the net
selling value on the balance sheet, regarded as a decreased profitability of assets.

25

Consolidated Results for the Full Year
Ended March 31, 2009

As a result of this change in accounting standards, operating income, ordinary income, and net income before tax andother adjustments decreased by JPY2.022 billion for the consolidated fiscal year under review. Further, the impact ofspecific segments is separately noted in the applicable sections.
(2) Application of “Accounting Standards for Lease Transactions”
Traditionally, finance lease transactions that do not transfer ownership were accounted for in a manner similar to theaccounting treatment for ordinary rental transactions. However, from the consolidated fiscal year under review, the“Accounting Standards for Lease Transactions (Accounting Standard – ASBJ Statement No. 13 [First Section of theBusiness Accounting Deliberation Council – June 17, 1993] as revised on March 30, 2007)” and the “Guidance on
Accounting Standards for Lease Transactions (Guidance Document – ASBJ Guidance No. 16 [Accounting Standards
Committee of The Japanese Institute of Certified Public Accounts – January 18, 1994] as revised on March 30, 2007)”
were applied. As such, finance lease transactions that do not transfer ownership are now accounted for in a similarmanner as ordinary sale and purchase transactions.
The effect of this change to the profit and loss generated during the consolidated fiscal year under review is considered
to be non-material in nature.
(3) Application of “Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for
Consolidated Financial Statements”
As of the consolidated fiscal year, the necessary modifications required by the adoption of the “Practical Solutions on
Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial Statements (Practical
Solution – ASBJ Statement No. 18 dated May 17, 2006)” have been made.
The effect of this change to the profit and loss generated during the consolidated fiscal year under review is considered
to be non-material in nature.

8. Items of Special Note Concerning the Consolidated Financial Statements
Special notes concerning lease transactions, transactions with interested parties, tax effect accounting, marketablesecurities, derivative transactions, retirement benefits, and stock options have been omitted as the disclosure of such
notes is considered to have no material significance to the financial statements.

26

Consolidated Results for the Full Year
Ended March 31, 2009

Business Combination Activity
Consolidated Fiscal Year under Review (From April 1, 2008 to March 31, 2009)
Purchase Method Applied
1. Summary of business combinations(1) Name and main business of acquired company
Name of acquired company:

SEN Corporation, an SHI and Axcelis Company

Main business of company:

Development, manufacturing, distribution, and servicing of ion implanters(2) Reason for executing business combination
To accelerate and strengthen the Group’s strategy to expand its global market presence in the field of ion
implanters, a type of semiconductor manufacturing device.
(3) Date of business combination
March 30, 2009(4) Legal form of acquiring combined business and name of company after combination
Legal form of acquiring combined business:

Cash acquisition of stock

Name of company after combination:

SEN Corporation (on April 1, 2009, the name of thecompany was changed from SEN Corporation, an SHI and
Axcelis Company)(5) Ratio of acquired voting rights
50% (100% of voting rights held after acquisition)
2. Period that includes financial results of acquired companies in consolidated financial statements
As the acquisition date was set as March 31, 2009, financial results for the acquired company prior to this day areaccounted for as an investment profit (or loss) based on the equity method of treatment.
3. Breakdown of costs relating to the acquisition
Acquisition price:JPY

11,315 million

Direct expenses incurred relating to the transaction:

JPY

118 million

Total acquisition cost:

JPY

11,433 million

4. Amount of goodwill or negative goodwill generated, reason(s) for generation of such amount, method of amortization,and period of amortization(1) Negative goodwill incurred:

JPY3,334 million(2) Reason for generation of such amount:
A negative goodwill amount was generated when the acquisition cost agreed upon with the seller andvalidated by a third party fell short of the value of total assets at the time of business combination.
(3) Method of amortization and period of amortization
The average amortization applied over a five-year period.

27

Consolidated Results for the Full Year
Ended March 31, 2009

5. Amount of breakdown of assets transferred and liabilities assumed on the date of business combination
Current assets:

JPY

11,477 million

Fixed assets:

JPY

4,242 million

Total assets:

JPY

15,719 million

Current liabilities:

JPY

876 million

Long-term liabilities:

JPY

76 million

Total liabilities:

JPY

952 million

6. Estimated amount of impact on consolidated statement of profit and loss if the business combination had been
completed at the beginning of the consolidated fiscal year
Net sales:

JPY

11,577 million

Operating income:JPY-2,333 million

Ordinary income:

JPY-293 million

Net income before tax and other adjustments:

JPY-609 million

Net income per share:

JPY

-1.01

Method of Calculating Estimated AmountThe estimated amount of impact above is based on the net sales and profit (or loss) generated by the acquired company
between April 1, 2008 and March 31, 2009. It excludes the investment profit (or loss) calculated based on the equity
method as well as the projected goodwill generated as a result of the transaction.
Please note that the above item has not been verified by an auditor.

28

Consolidated Results for the Full Year
Ended March 31, 2009

Segment Information
1. Segment Information by Business
Previous Full Year (April 1, 2007 to March 31, 2008)(Units: millions of yen)Segment

A

B

C

D

232,592

91,25076,393

2,887

2,428

Total

235,479

Operating expenses
Operating income

Consolidation

E

Total

81,163

179,370

660,769--

660,769

1,282

362

7

6,965

(6,965)--93,67877,676

81,525

179,377

667,735(6,965)

660,769

207,272

86,77563,582

69,407163,091

590,127(7,147)582,980

28,208

6,903

14,094

12,11816,286

77,608

181

77,790290,189

69,296105,624

61,033137,097663,239

15,395

678,634

7,392

1,056

2,061

1,355

1,924

13,788--13,788

632

68

--

--

--

700

--

700

13,911

2,305

5,521

2,577

3,866

28,180--28,180Item

F

Net sales(1) Sales to externalcustomers(2) Internal sales between
segments or exchanges

Assets, depreciation,
impairment loss and capital
expenditure
AssetsDepreciation
Impairment loss
Capital expenditure

Segments:
A: Mass-Produced Machinery
B: Environmental Protection Facilities, Plants & Others
C: Ship, Steel Structure & Other Specialized Equipment
D: Industrial Machinery
E: Construction Machinery
F: Cancellation or general29Consolidated Results for the Full Year
Ended March 31, 2009

Current Full Year (April 1, 2008 to March 31, 2009)(Units: millions of yen)Segment

A

B

C

D

227,226

92,62579,602

3,883

2,648

231,109

Consolidation

E

Total

84,310159,154642,918--

642,918

650

226

31

7,438

(7,438)--95,27380,25384,537

159,185

650,356(7,438)642,918

218,774

84,55367,691

70,952

151,642593,613(7,634)585,978

12,334

10,71912,562

13,585

7,543

56,743

197

56,940263,192

70,269110,701

69,529118,505

632,196

25,240657,436

Depreciation

9,357

1,127

2,871

1,775

3,189

18,320--18,320

Impairment loss

1,749

--

--

--

--

1,749

155

1,904

Capital expenditure

14,397

999

6,528

3,458

6,371

31,753--31,753Item

F

Net sales(1) Sales to externalcustomers(2) Internal sales between
segments or exchanges
Total
Operating expenses
Operating income
Assets, depreciation,
impairment loss and capital
expenditure
AssetsSegments:
A: Mass-Produced Machinery
B: Environmental Protection Facilities, Plants & Others
C: Ship, Steel Structure & Other Specialized Equipment
D: Industrial Machinery
E: Construction Machinery
F: Cancellation or general30Consolidated Results for the Full Year
Ended March 31, 2009

Notes:
1. Business segment depends on sales total segment.
2. Main products of each business segment
Businesses

Main Products

Mass-Produced Machinery

Power transmission & control, plastic injection molding machines,
laser processing systems, cryogenic equipment,
precision XY stages, ion accelerators, plasma coating systems for FPDs,
precision forgings, control components, defense equipment

Environmental Protection
Facilities, Plants & Others

Power generation systems, industrial waste treatment facilities,
water and sewage treatment systems, real estate, software

Ship, Steel Structure &Other Specialized Equipment

Ships, pressure vessels, bridges

Industrial Machinery

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

Construction Machinery

Hydraulic excavators, mobile cranes, road machinery

3. The value of assets eliminated or company-wide assets included in items for the company as a whole was
41.67 billion yen for the current fiscal year and 47.13 billion yen for the previous fiscal year. This mainly consistsof assets involving surplus funds invested (cash and deposits) and funds invested long-term (securities forinvestment).
4. Changes to accounting methods utilized in the consolidated fiscal year under review
As indicated in Section 77.Revisions to Significant Items Forming the Basis for the Preparation of theConsolidated Financial Statements on page 25, the “Financial Accounting Standard for the Measurement of
Inventories (Accounting Standard - ASBJ Statement No. 9 dated July 5, 2006)” was adopted in the consolidated
fiscal year under review.
As a result of this change in accounting standards, operating expenses increased by JPY2.022 billion andoperating income fell by the same amount.

The impact amount by segment is shown below.
(Units: millions of yen)Segment
Item

A

B

C

D

E

Total

Increase in operating
expenses

1,599

63

--

32

328

2,022

Decrease in operating
income

1,599

63

--

32

328

2,022

Segments:
A: Mass-Produced Machinery
B: Environmental Protection Facilities, Plants & Others
C: Ship, Steel Structure & Other Specialized Equipment
D: Industrial Machinery
E: Construction Machinery31

Consolidated Results for the Full Year
Ended March 31, 2009

2. Segment Information by Geographical Area
Previous Full Year (April 1, 2007 to March 31, 2008)(Units: millions of yen)Segment
Item

Japan

North
America

Others

Total

Cancellationor general

Consolidation

Net sales(1) Sales to externalcustomers

537,268

78,96344,538660,769--

660,769(2) Internal sales between
segments or exchanges

40,351

1,233

13,71055,293(55,293)

--

Total

577,61980,19658,248716,062(55,293)

660,769

Operating expenses

513,355

70,68453,664

637,703(54,723)582,980

Operating income

64,264

9,512

4,584

78,360(570)

77,790Assets533,320

51,35981,426

666,106

12,528678,634

Current Full Year (April 1, 2008 to March 31, 2009)(Units: millions of yen)Segment
Item

Japan

North
America

Others

Total

Cancellationor general

Consolidation

Net sales(1) Sales to externalcustomers

506,320

76,77059,829642,918--

642,918(2) Internal sales between
segments or exchanges

38,210997

11,13650,343(50,343)

--

Total

544,529

77,76770,965693,261(50,343)642,918

Operating expenses

497,860

69,93069,748637,538(51,560)

585,978

Operating income

46,669

7,837

1,217

55,723

1,216

56,940Assets529,250

50,63650,533

630,419

27,017

657,436

Notes:
1. Countries and regions are classified by geographical proximity.
2. Countries and regions belonging to each classification:
North America:
USA, Canada
Others:UK, Germany, Singapore, China
3. The value of and main content included in the item “Cancellation or general” are the same as in “1. Segment
Information by Business” in Note 3 on page 31.

32

Consolidated Results for the Full Year
Ended March 31, 2009

4. Changes to accounting methods utilized in the consolidated fiscal year under review
As indicated in Section 7. Revisions to Significant Items Forming the Basis for the Preparation of theConsolidated Financial Statements on page 25, the “Financial Accounting Standard for the Measurement of
Inventories (Accounting Standard - ASBJ Statement No. 9 dated July 5, 2006)” was adopted in the consolidated
fiscal year under review.
As a result of this change in accounting standards, operating expenses increased by JPY2.022 billion andoperating income fell by the same amount.

The impact amount by segment is shown below.
(Units: millions of yen)Segment
Item

Japan

North America

Others

Total

Increase in operating expenses

1,815

--

207

2,022

Decrease in operating income

1,815

--

207

2,022

33

Consolidated Results for the Full Year
Ended March 31, 2009

3. Overseas Sales
Previous Full Year (April 1, 2007 to March 31, 2008)(Units: millions of yen)North
AmericaI. Overseas salesAsia

120,380

Others108,441

Total

102,989

331,810
660,769

II. Consolidated sales
18.2

III. Overseas sales ratio (％)

16.4

15.6

50.2

Current Full Year (April 1, 2008 to March 31, 2009)(Units: millions of yen)North
AmericaI. Overseas sales

Asia

102,347

Others109,796

Total

117,017642,918

II. Consolidated sales
III. Overseas sales ratio (％)

329,160

15.9

17.1

18.2

Notes:
1. Countries and regions are classified by geographical proximity.
2. Countries and regions belonging to each classification:
North America:
USA, Canada
Asia:
Singapore, China
Others:UK, Germany
3. Overseas sales are sales of the Company and its subsidiaries in countries and regions other than Japan.

34

51.2

Consolidated Results for the Full Year
Ended March 31, 2009

Per Share Information
Previous Full Year
April 1, 2007 to
March 31, 2008

Current Full Year
April 1, 2008 to
March 31, 2009

Net assets per share

392.80 yen

378.78 yen

Net income per share

71.19 yen

22.62 yen

Also note that EPS adjusted for full
Also note that EPS adjusted for full
dilution is not presented because there dilution is not presented because there
are no residual shares.
are no residual shares.
Basis for calculation of net income per share is as follows:
Net income for the period

42,974 million yen

13,649 million yen----

42,974 million yen

13,649 million yen

603,687,000 shares603,510,000 shares

Value not attributable to common
stockholders
Net income for common stockholders
Average number of outstanding
shares for the term

Subsequent Events of Significant Importance
None noted.

35

Consolidated Results for the Full Year
Ended March 31, 2009

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

April 1, 2007 to
March 31, 2008
AmountApril 1, 2008 to
March 31, 2009%

AmountY/Y Change%

Mass-Produced Machinery

247,35634.5

200,803

33.4(46,553)(18.8)

Environmental Protection Facilities,
Plants & Others

91,76412.8

84,24014.0(7,524)(8.2)

Ship, Steel Structure & Other
Specialized Equipment

90,712

12.7

78,08013.0(12,633)(13.9)

Industrial Machinery

98,84813.8

98,752

16.5

(96)

(0.1)

Construction Machinery

187,701

26.2

138,783

23.1(48,918)(26.1)

Total

716,382

100.0

600,658

100.0(115,724)(16.2)

Sales(Units: millions of yen)
Businesses

April 1, 2007 to
March 31, 2008
AmountApril 1, 2008 to
March 31, 2009%

AmountY/Y Change%

Mass-Produced Machinery

232,59235.2

227,22635.3(5,366)(2.3)

Environmental Protection Facilities,
Plants & Others

91,25013.8

92,625

14.4

1,375

1.5

Ship, Steel Structure & Other
Specialized Equipment

76,393

11.6

79,602

12.4

3,209

4.2

Industrial Machinery

81,16312.3

84,310

13.1

3,147

3.9

Construction Machinery

179,37027.1

159,15424.8(20,216)(11.3)

Total

660,769100.0

642,918100.0(17,851)(2.7)

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

April 1, 2007 to
March 31, 2008
AmountApril 1, 2008 to
March 31, 2009%

AmountY/Y Change%

Mass-Produced Machinery

98,68918.3

74,252

14.9(24,437)(24.8)

Environmental Protection Facilities,
Plants & Others

89,08716.5

80,69916.2(8,389)(9.4)

Ship, Steel Structure & Other
Specialized Equipment

217,706

40.4

216,18443.3(1,523)(0.7)

Industrial Machinery

92,38817.1

106,82921.4

14,442

15.6

Construction Machinery

41,2907.7

20,918

4.2(20,372)(49.3)

Total

539,161100.0

498,882

100.0(40,279)

(7.5)

36

Consolidated Results for the Full Year
Ended March 31, 2009

V. Individual Financial Statements
1. Balance Sheets(Units: millions of yen)
End of Full YearAs of March 31, 2008

End of Full YearAs of March 31, 2009

AmountAmountAssetsCash and deposits

9,003

19,741

Notes receivable

1,947

1,394

Accounts receivable

75,00164,991

Products

13,314

13,406

Works in progress

19,53818,609948

1,107

Advanced payments

34,493

34,846

Prepaid expenses

115

92

Deferred income taxes

1,508

1,428

Short-term loans provided to affiliatedcompanies

7,613

6,869

Other accounts receivable

30,521

29,046

Other

5,311

3,166

Allowance for doubtful accounts(102)(2,255)

199,210

192,440

Buildings (net)28,23529,395Structures (net)

5,506

6,201

Machinery and equipment (net)

11,317

13,797

Ships and vessels (net)0

0

Automotive equipment (net)

85

219

2,527

2,242

101,835

101,319

--

209

2,771

1,392

Tangible assets

152,275

154,775

Utility rights

82

79

Software

2,808

2,519

Others442

515

Intangible assets

3,333

3,113

24,333

12,020Raw materials and stock

Current assets

Tools, equipment and fixtures (net)Land
Lease assets (net)
Construction in progress

Investment securities

37

Consolidated Results for the Full Year
Ended March 31, 2009

End of Full YearAs of March 31, 2008

End of Full YearAs of March 31, 2009

AmountAmountShares of affiliated companies

75,04886,650

Other marketable securities ofaffiliated companies

39--

Contribution to capital

735

600

Capital contributed to affiliatedcompanies

18,166

11,063Long-term loans to employees

20

22

Bankruptcy and reorganization claims

108

115

Long-term prepaid expenses

1,241

780

Deferred income taxes

11,769

8,481

Other

2,290

2,536

Allowance for doubtful accounts

(347)

(421)

133,401

121,846

Fixed assets

289,009279,733

Total assets

488,219472,173

Investments and other assets

38

Consolidated Results for the Full Year
Ended March 31, 2009

(Units: millions of yen)
End of Full YearAs of March 31, 2008

End of Full YearAs of March 31, 2009

AmountAmountLiabilities
Notes payable

6,843

6,021

Accounts payable

65,671

53,615

Short-term bank loans

4,100

21,100Commercial paper

18,00024,000--10,000

2,469

1,101

--

71

Other accounts payable

10,973

11,498

Accrued expenses

3,997

3,436

Income tax payable

9,725

1,481

Advance payments received oncontracts

37,60439,389Deposits

81,057

83,713

Allowance for guaranteed construction

2,700

2,384

Allowance for loss on business transfer

161

161

Other

42

141

243,342

258,111

Bonds

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

41,796

40,696

Lease obligations

--

200

Loss reserve for affiliated companies

--

556

Employees’ severance and retirement
benefits

14,407

14,959Deferred income taxes on revaluation

32,30632,211

Other

1,438

1,404

Long-term liabilities

99,94790,026

Total liabilities

343,289

348,137

30,87230,872

23,792

23,79221--

Corporate bonds redeemable within one
year
Long-term loans due within one year
Lease obligations

Current liabilities

Net assets
Common stock
Capital surplus
Capital surplus reserve
Other capital surplus
Gain from the disposal of treasury stock39

Consolidated Results for the Full Year
Ended March 31, 2009

End of Full YearAs of March 31, 2008

End of Full YearAs of March 31, 2009

AmountAmount23,813

23,792

6,295

6,295

Earned surplus carried forward

40,32823,055

Total earned surplus

46,62329,350Treasury stock(1,425)(1,471)

Stockholders’ equity

99,88382,543

Unrealized gains on securities

2,100

(569)

Profit (loss) on deferred hedge

2,471

1,703

Revaluation reserve for land

40,47740,360Appraisal and translation differences

45,04841,494

Total net assets

144,931

124,036

Liabilities and net assets

488,219472,173

Total capital surplus
Earned surplus
Earned surplus reserve
Other earned surplus

2. Income Statements(Units: millions of yen)Previous Full Year
April 1, 2007 to
March 31, 2008

Current Full Year
April 1, 2008 to
March 31, 2009

AmountAmountNet sales

267,557

241,482

Total cost of sales

221,284

207,002

Gross income

46,272

34,480

Selling, general & administrative expenses

24,76823,698Operating income

21,504

10,782

Interest income

177

145

Dividend income

8,334

8,892

Other

1,983

2,304

10,494

11,341

Interest expenses

1,379

1,650

Exchange rate losses

1,190

1,235

Cost of sales

Non-operating income:

Total non-operating income
Non-operating expenses

40

Consolidated Results for the Full Year
Ended March 31, 2009

Previous Full Year
April 1, 2007 to
March 31, 2008

Current Full Year
April 1, 2008 to
March 31, 2009

AmountAmount

Other

3,578

4,392

Total non-operating expenses

6,146

7,278

Ordinary income

25,852

14,845Gain on sale of securities

689

--

Total extraordinary gains

689

--

Devaluation of capital contributed toaffiliated companies

--

8,780

Loss on devaluation of marketablesecurities

--

8,663

Allowances for bad debts and otherprovisions relating to affiliated companies

--

2,750

Loss relating to violations of antitrust
laws

--

1,638

225

271

1,038

--

759

--

Total extraordinary losses

2,021

22,101

Income before income taxes

24,519(7,256)

Corporate income tax current

5,805(1,285)

Corporate income tax from previous years

127

697

Deferred corporate income tax and other
taxes

9

4,081

Total corporate income taxes

5,941

3,492

Net income

18,578(10,749)

Extraordinary gains

Extraordinary losses

Loss on impaired assets
Settlement figure
Expenses associated with the relocationof the head office41

Consolidated Results for the Full Year
Ended March 31, 2009

3. Statements of Changes to Stockholders' Equity(Units: millions of yen)Previous Full Year
April 1, 2007 to March 31, 2008

Current Full Year
April 1, 2008 to March 31, 2009

Stockholders’ equity
Capital stock
Balance at end of previous period

30,87230,872----30,87230,872

23,792

23,792----

23,792

23,79215

21

Disposal of treasury stock

6

(21)

Total fluctuation in the period

6

(21)

21

--

23,807

23,813

Disposal of treasury stock

6

(21)

Total fluctuation in the period

6

(21)

23,813

23,792

6,295

6,295

--

--

6,295

6,295

26,94840,328Fluctuation in the period
Total fluctuation in the period
Balance at end of period
Capital surplus
Capital surplus reserve
Balance at end of previous period
Fluctuation in the period
Total fluctuation in the period
Balance at end of period
Other capital surplus
Balance at end of previous period
Fluctuation in the period

Balance at end of period
Total capital surplus
Balance at end of previous period
Fluctuation in the period

Balance at end of period
Earned surplus
Earned surplus reserve
Balance at end of previous period
Fluctuation in the period
Total fluctuation in the period
Balance at end of period
Other earned surplus
Earned surplus carried forward
Balance at end of previous
period42

Consolidated Results for the Full Year
Ended March 31, 2009

Previous Full Year
April 1, 2007 to March 31, 2008

Current Full Year
April 1, 2008 to March 31, 2009

Fluctuation in the period
Dividends(5,132)(6,639)Net income

18,578(10,749)

Disposal of treasury stock

--

(3)

Difference from transfer ofrevaluation reserve for land

(66)

117

Total fluctuation in the
period13,380(17,273)

Balance at end of period

40,32823,05533,243

46,623

Dividends(5,132)(6,639)Net income

18,578(10,749)

Disposal of treasury stock

--

(3)

Difference from transfer ofrevaluation reserve for land

(66)

117

Total fluctuation in the
period13,380(17,273)

Balance at end of period

46,62329,350(993)(1,425)Acquisition of treasury stock

(442)

(112)

Disposal of treasury stock

11

66

Total fluctuation in the period

(431)

(46)

(1,425)(1,471)

86,92899,883

Dividends(5,132)(6,639)Net income

18,578(10,749)

Acquisition of treasury stock

(442)

(112)

Disposal of treasury stock17

42

Difference from transfer ofrevaluation reserve for land

(66)

117

Total fluctuation in the period

12,955(17,340)

Total earned surplus
Balance at end of previous
periodFluctuation in the period

Treasury stock
Balance at end of previous period
Fluctuation in the period

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

43Consolidated Results for the Full Year
Ended March 31, 2009

Previous Full Year
April 1, 2007 to March 31, 2008

Balance at end of period

Current Full Year
April 1, 2008 to March 31, 2009

99,88382,543

8,919

2,100

Fluctuations other thanstockholders' equity in the
period (net)(6,819)(2,669)Total fluctuation in the period(6,819)(2,669)

2,100

(569)

(1,654)2,471

Fluctuations other thanstockholders' equity in the
period (net)

4,125

(768)

Total fluctuation in the period

4,125

(768)

2,471

1,703

40,41140,477

Fluctuations other thanstockholders' equity in the
period (net)

66

(117)

Total fluctuation in the period

66

(117)

40,47740,36047,67745,048Fluctuations other thanstockholders' equity in the
period (net)(2,628)(3,555)

Total fluctuation in the period(2,628)(3,555)45,04841,494

134,604

144,931

Appraisal and translation differences
Unrealized holding gains on othersecurities
Balance at end of previous period
Fluctuation in the period

Balance at end of period
Gain (loss) on deferred hedge
Balance at end of previous period
Fluctuation in the period

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

Balance at end of period
Total appraisal and translationdifferences
Balance at end of previous period
Fluctuation in the period

Balance at end of period
Total net assets
Balance at end of previous period

44Consolidated Results for the Full Year
Ended March 31, 2009

Previous Full Year
April 1, 2007 to March 31, 2008

Current Full Year
April 1, 2008 to March 31, 2009

Fluctuation in the period
Dividends(5,132)(6,639)Net income

18,578(10,749)

Acquisition of treasury stock

(442)

(112)

Disposal of treasury stock17

42

Difference from transfer ofrevaluation reserve for land

(66)

117

Fluctuations other thanstockholders' equity in the period(net)(2,628)(3,555)

Total fluctuation in the period

10,326(20,894)

144,931

124,036

Balance at end of period

4. Significant Events or Conditions that Question the Premise of a Going Concern
No event or conditions noted.

45