Sumitomo Heavy Industries, Ltd.
FIRST QUARTER CONSOLIDATED FINANCIAL REPORTFor the Three-Month Period from April 1 to June 30, 2019

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 First Quarter
Ended June 30, 2019

Summary of Consolidated Financial Results
For the First Quarter Ended June 30, 2019
Presented July 31, 2019

Sumitomo Heavy Industries, Ltd.
Listed exchanges

Tokyo Stock Exchange

Stock code

6302

Head officeTokyo

President

Shinji Shimomura

URL

www.shi.co.jp

Inquiries

Michiko Watanabe
General Manager, Corporate Communications Dept.

Telephone+81 3 6737 2331

Scheduled reporting date for quarterly reportAugust 9, 2019

Scheduled date of payment of cash dividends－

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

None
None

1. FY 2019 First Quarter Consolidated Results (April 1, 2019, to June 30, 2019)(1) Business Results(Units: millions of yen)First Quarter
April 1 to June 30, 2019

Previous First Quarter
April 1 to June 30, 2018

% change% change

Net sales

204,1810.7

202,678

21.2

Operating income

13,531(21.4)

17,214

45.3

Ordinary income

13,339(21.7)

17,044

38.5(18.1)

10,871

26.3

Net income attributed to shareholders of the parent
8,907
company
Note: Comprehensive income
Fiscal quarter ended June 30, 2019: 10,057 million yen, 128.2%
Fiscal quarter ended June 30, 2018: 4,406 million yen), (25.1%)

Net income per share (yen)Fully diluted net income per share (yen)2First Quarter
April 1 to June 30, 201972.69

Previous First Quarter
April 1 to June 30, 2018
88.71

－

－

Consolidated Results for the First Quarter
Ended June 30, 2019

(2) Financial Position(Units: millions of yen)
End of First Quarter
As of June 30, 2019

End of Previous Full YearAs of March 31, 2019

Total assets

950,585954,051

Total net assets

466,430

465,001

Equity ratio (%)

47.9

47.5

Reference: Equity
Fiscal quarter ended June 30, 2019: 455,120 million yen
Fiscal year ended March 31, 2019: 453,468 million yen

2. Dividends(Units: yen)
Year Ended March 31,
2019Year Ending March 31,
2020

Year Ending March 31,
2020 (forecast)

Annual dividends per share――First quarter

50.00

56.00

Third quarter――End of term

62.00

56.00

Annual dividends

112.00112.00

Second quarter

Note 1: Changes from the most recent dividend forecast: None

3. FY 2019 Consolidated Forecasts (April 1, 2019, to March 31, 2020)(Units: millions of yen)
Full Year
April 1, 2019, to March 31, 2020

Net sales

905,000% change
0.2

Operating income

72,000(4.3)

Ordinary income

69,000(5.0)

Net income attributed to shareholders of the parent
company

46,0000.8

Projected net income per share (yen)375.43

Note:

Changes from the most recent consolidated forecast: None3

Consolidated Results for the First Quarter
Ended June 30, 2019

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:

Applicable(3) Changes to accounting policies, changes to accounting estimates, and restatements(i) Changes to accounting policies resulting from revisions to accounting standards, etc.:

Applicable(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 June 30, 2019
As of March 31, 2019122,905,481 shares
122,905,481 shares(ii) Amount of treasury stock at end of fiscal period
As of June 30, 2019
As of March 31, 2019

381,022 shares
379,953 shares(iii) Average number of shares during fiscal period (cumulative quarterly period)
As of June 30, 2019
As of June 30, 2018

122,524,923 shares
122,537,519 shares* The Quarterly Summary of Financial Results is not subject to the Quarterly Review by a certified public accountant or a
corporate auditor.
* 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 and outlook
because of a variety of factors. For information on the assumptions that form the basis of the earnings forecast anditems to note concerning the use of earnings forecasts, please see the Explanation of the Consolidated Earnings
Forecast and Other Forward-Looking Estimates in the Supplementary Materials on page 8.

4Consolidated Results for the First Quarter
Ended June 30, 2019

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. Quarterly Consolidated Financial Statements and Key Explanatory Notes .................................. 9(1) Quarterly Consolidated Balance Sheets ........................................................................................ 9(2) Consolidated Income Statements and Consolidated Statement of Comprehensive Income
Consolidated Income Statements ................................................................................................ 11
Consolidated Statement of Comprehensive Income .................................................................... 12(3) Notes regarding Consolidated Quarterly Financial Statements .................................................... 13(Notes on Premise of a Going Concern) ...................................................................................... 13(Notes regarding Significant Fluctuations to Shareholders’ Equity).............................................. 13(Application of Accounting Procedures Specific to Preparation of Quarterly Consolidated Financial
Statements) .............................................................................................................................. 13(Change in Accounting Policy) ................................................................................................... 13(Additional Information) .............................................................................................................. 13(Subsequent Events of Significant Importance) ........................................................................... 13
3. Supplementary Information ............................................................................................................. 15(1) Orders, Sales and Operating Income, and Balance of Orders by Segment ................................. 15(2) (Summary) Consolidated Cash Flows Statement......................................................................... 175

Consolidated Results for the First Quarter
Ended June 30, 2019

1. Qualitative Information regarding Current Quarterly Consolidated Business
Performance(1) Explanation of Business Performance
As for the business environment surrounding the Group during the first quarter of the current consolidated fiscal year underreview, companies took a slightly cautious approach to capital investments in Japan despite their robust and high-level
performance, and turning to overseas markets, the US economy recovered steadily but its manufacturing industry wasaffected by the trade issue and other factors while the Chinese economy showed a moderate slowdown. Due mainly tothese factors, the global machinery market entered a correction phase. In addition, the global economy is still lacking clarity
in its future direction mainly due to escalation of trade disputes between the US and China, ongoing geopolitical risks andthe continued appreciation of the yen.
In the face of this business environment, the Group promoted the Medium-Term Management Plan 2019, and proactively
pursued investments to drive growth through capital spending, research and development, etc., actively promoting CSR
measures and moving forward with other key initiatives.
Under these conditions, orders decreased in the Precision Machinery, Construction Machinery, Ships and Environmental
Facilities & Plants segments. On a consolidated basis, the Group posted an order figure of JPY191.8 billion, a 16%
decrease as compared to the same period last year (hereinafter referred to as the “previous term”). Sales increased in the
Machinery Components, Precision Machinery and Construction Machinery segments. In total, the Group posted a sales
figure of JPY204.2 billion, a 1% increase as compared to the previous term.
Turning to income, there was a decrease in all segments with the exception of Precision Machinery. As a result, operating
income was JPY13.5 billion, a 21% decrease as compared to the previous term, and ordinary income was JPY13.3 billion,
a 22% decrease as compared to the previous term. Quarterly net income attributable to the shareholders of the parent
company also decreased by 18% as compared to the previous term to finish at JPY8.9 billion.
With respect to improper inspections, etc. conducted in relation to products and services at the Company and other Group
companies as publicized in the previous term, we once again take this opportunity to deeply apologize for the greatinconvenience and anxieties caused to our shareholders. We take the incidents gravely and seriously and will implement
recurrence prevention measures in a reliable manner in the current fiscal year as well, striving to further strengthen our
quality management and compliance activities. By doing so, we will make every effort to restore confidence in the Group.
Conditions in each business segment of the Group were as follows:
1. Machinery Components
Demand for small-to-medium scale gear reducers decreased in Japan and Europe. However, Lafert Group companies(such as Lafert S.p.A.) were consolidated into the Group as subsidiaries and as a result, both orders and sales increased
as compared to the previous term. In actual figures, the segment received orders worth JPY34.1 billion, a rise of 11% ascompared to the previous term, and posted sales of JPY31.9 billion, a rise of 18% as compared to the previous term.
Further, the segment posted operating income of JPY1.9 billion.
2. Precision Machinery
With respect to plastics machinery, demand from the electric and electronic sector in China and from Japan and Europe
decreased, and as a result, both orders and sales decreased as compared to the previous term. As for other precision
machinery businesses, although demand for cryogenic equipment and semiconductor-related equipment showed positivity,
the total orders decreased. However, sales increased because there was a backlog of orders from the previous term. In
actual figures, the segment received orders worth JPY42.5 billion, a fall of 17% as compared to the previous term, andposted sales of JPY41.9 billion, a rise of 3% as compared to the previous term. Further, the segment posted operating
income of JPY3.4 billion.

6

Consolidated Results for the First Quarter
Ended June 30, 2019

3. Construction Machinery
With regard to the hydraulic excavator business, due to factors such as a decline in demand from the ASEAN region, bothorders and sales decreased as compared to the previous term. As for the mobile crane business, although orders
decreased as compared to the previous term due to a decline in demand from the Japanese and North American markets,sales increased because there was a backlog of orders from the previous term. In actual figures, the segment received
orders worth JPY70.6 billion, a fall of 7% as compared to the previous term, and posted sales of JPY71.2 billion (unchanged
from the same period of the previous term). Further, the segment posted operating income of JPY5.8 billion.
4. Industrial Machinery
With respect to the material handling business, although orders increased due to strong demand from electric and steel
companies, sales decreased because of customer delivery dates for order backlog. As for other industrial machinery
businesses, although orders increased due to increased orders for industrial turbines, sales declined due to a decrease inorder backlog for forging presses and other products. In actual figures, the segment received orders worth JPY20.4 billion,a rise of 12% as compared to the previous term, and posted sales of JPY18.2 billion, a fall of 12% as compared to theprevious term. Further, the segment posted operating income of JPY0.6 billion.
5. Ships
The slowdown in market conditions continued in the Ships segment which meant that no orders for new vessels weresecured during the first quarter of the current fiscal year. In addition, no vessel was delivered during the first quarter of thecurrent fiscal year as compared to one vessel handed over in the previous term. In actual figures, the segment received
orders worth JPY4.4 billion, a fall of 34% as compared to the previous term, and posted sales of JPY9.5 billion, a fall of
2% as compared to the previous term. Further, the segment posted operating income of JPY0.6 billion.
6. Environmental Facilities & Plants
With regard to the energy plant business, unlike the same period of the previous term, the Group won no large project fora biomass-fueled power generation plant in Japan in the first quarter of the current fiscal year. As a result, both orders andsales decreased as compared to the previous term. In the water treatment plant business, orders increased as comparedto the previous term partly because the Group received orders for waste water treatment equipment and won wastematerial treatment equipment repair projects. However, sales dropped. In actual figures, the segment received orders
worth JPY17.8 billion, a fall of 59% as compared to the previous term, and posted sales of JPY30.0 billion, a fall of 7% ascompared to the previous term. Further, the segment posted an operating income of JPY0.9 billion.
7. Others
The others segment received orders worth JPY2.0billion, a rise of 16% as compared to the previous term, and posted
sales of JPY1.6 billion, a fall of 3% as compared to the previous term. Further, the segment posted operating income of
JPY0.3 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 first quarter of the current consolidated fiscal year under review (ended June 30, 2019)
amounted to JPY950.6 billion, a decrease of JPY3.5 billion as compared to the end of the previous consolidated fiscal
year. This was mainly due to an increase of JPY18.4 billion in inventory assets offsetting decreases of JPY18.3 billion intrade notes and accounts receivable and JPY6.7 billion in cash and deposits.
Total liabilities fell to JPY484.2 billion, a decrease of JPY4.9 billion as compared to the end of the previous consolidated
fiscal year. This was mainly due to a decrease of JPY6.9 billion in notes and accounts payable.
Net assets to JPY466.4 billion, an increase of JPY1.4 billion as compared to the end of the previous consolidated fiscal
year. This was mainly due to increase of JPY1.1 billion in retained earnings.
As a result of the above, the shareholders’ equity ratio increased by 0.3 points from the end of the previous consolidated
fiscal year to finish at 47.9%.

7Consolidated Results for the First Quarter
Ended June 30, 2019

2. Cash Flow Condition
The increase in cash flow from operating activities was JPY13.6 billion (as compared to an increase in cash flow of JPY25.0
billion in the previous term). When broken down, the main components of the JPY31.9 billion reduction in trade receivables
and the proceeds were JPY13.3 billion in quarterly net income before tax and other adjustments. The main sources of theoutflow of cash were the JPY18.0 billion increase in inventory assets and the JPY11.7 billion payment of corporate andother taxes.
The decrease in cash flow as a result of investing activities was JPY8.9 billion (as compared to a decrease in cash flow of
JPY27.5 billion in the previous term). The main reason for the cash outflow was the JPY10.3 billion used to acquire property,
plant and equipment.
The decrease in cash flow as a result of financing activities was JPY10.8 billion (as compared to a decrease in cash flowof JPY6.2 billion in the previous term). The main reason for the cash outflow was the JPY7.4 billion used to pay dividends.
As a result of the foregoing, the balance of cash and cash equivalents at the end of the first quarter of the current
consolidated fiscal year under review totaled JPY64.7 billion, a decrease of JPY5.1 billion as compared to the end of theprevious consolidated fiscal year.

(3) Explanation of the Consolidated Earnings Forecast and Other Forward-Looking Estimates
No revisions have been made to the consolidated earnings forecast for the fiscal year ending March 31, 2020, which was
published along with the earnings summary on May 8, 2019.

8

Consolidated Results for the First Quarter
Ended June 30, 2019

2. Quarterly Consolidated Financial Statements and Key Explanatory Notes(1) Quarterly Consolidated Balance Sheets(Units: millions of yen)
End of Previous Fiscal YearAs of March 31, 2019

End of First Quarter
As of June 30, 2019

AmountAmountAssetsCash and deposits

73,58966,935

Notes and accounts receivable291,578

273,284

Inventory assets

189,045

207,483

Other

33,18534,843

Allowance for doubtful accounts(3,829)(3,730)583,568

578,816

Land

107,720

107,789

Other (net)140,556

145,663

Total tangible assets

248,276

253,451

Goodwill

24,04923,116

Other

41,022

37,95665,071

61,072

Other

62,45062,599Allowance for doubtful accounts(5,314)(5,354)

57,13657,246

Fixed assets

370,483

371,769

Total assets

954,051

950,585

Current assets

Total intangible assets

Investments and other assets

9Consolidated Results for the First Quarter
Ended June 30, 2019

(Units: millions of yen)
End of Previous Fiscal YearAs of March 31, 2019

End of First Quarter
As of June 30, 2019

AmountAmountLiabilities
Notes and accounts payable

188,069

181,123

Short-term bank loans

23,44423,750

Corporate bonds due within one year

10,00010,000Long-term loans due within one year

1,956

1,957

Commercial Paper

17,00015,000Allowance for guaranteed construction

13,33913,624

Other allowance amount

6,309

5,052

122,261

126,751

382,378

377,258

Bonds

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

10,912

10,643

154

154

Defined benefit liability

46,08245,965

Deferred income taxes on revaluation

20,713

20,713

Other

18,812

19,421

Total fixed liabilities

106,673

106,896

Total liabilities

489,051

484,155

Common stock

30,87230,872

Capital surplus

26,071

26,071Retained earnings

348,863

349,997

Treasury stock(1,048)(1,052)404,757

405,887

Unrealized gains on securities

3,871

3,508

Profit (loss) on deferred hedge

(318)

(49)

Revaluation reserve for land

40,82040,819Foreign currency translation adjustments

8,879

9,273

Re-measurement of defined benefit plans(4,542)(4,319)Total accumulated other comprehensive income

48,711

49,233

Non-controlling interest

11,533

11,310Total net assets

465,001

466,430

Total liabilities and net assets

954,051

950,585

Other
Current liabilities

Allowance

Net assets

Total shareholders' equity

10Consolidated Results for the First Quarter
Ended June 30, 2019(2) Consolidated Income Statements and Consolidated Statement of Comprehensive Income
Consolidated Income Statements(Units: millions of yen)Previous First Quarter
April 1, 2018, to June 30,
2018

Present First Quarter
April 1, 2019, to June 30,
2019

AmountAmountNet sales

202,678

204,181

Cost of sales

152,851

156,592

Gross income

49,82747,589Selling, general & administrative expenses

32,614

34,058Operating income

17,214

13,531

Interest income

142

223

Dividend income

554

400

Other

630

598

1,325

1,221

Interest expense

238

247

Loss on foreign currency exchange

325

361

Other

931

804

Total non-operating expenses

1,495

1,412

Ordinary income

17,044

13,339Loss on impaired assets

104―

Total extraordinary losses

104―

Income before income taxes

16,94013,339Corporate income taxes

5,160

3,826

Net income

11,7809,513

Net income attributable to non-controlling interests

909

606

Net income attributed to shareholders of the parent
company

10,871

8,907

Non-operating income

Total non-operating income
Non-operating expenses

Extraordinary losses

11Consolidated Results for the First Quarter
Ended June 30, 2019

Consolidated Statement of Comprehensive Income(Units: millions of yen)Previous First Quarter
April 1, 2018, to June 30, 2018

Present First Quarter
April 1, 2019, to June 30, 2019

AmountAmount

Net income

11,780

9,513

Unrealized gains on securities

(433)

(362)

Profit (loss) on deferred hedge

(177)

267

(7,211)

415

Adjustment to retirement benefits

445

222

Amount applied for equity method
accounting of affiliates

3

2

Total other comprehensive income(7,373)

544

4,406

10,057

3,761

9,430

645

627

Other comprehensive income

Foreign currency translation adjustments

Comprehensive income(Breakdown)Comprehensive income relating toparent company shareholdings
Quarterly comprehensive income relating
to non-controlling interests

12Consolidated Results for the First Quarter
Ended June 30, 2019(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.

(Application of Accounting Procedures Specific to Preparation of Quarterly Consolidated Financial
Statements)(Calculation of tax expenses)
The effective tax rate expected to be imposed on pretax net income (after tax effect accounting) applicable to theconsolidated fiscal year in which the first quarter of the current consolidated fiscal year under review is included wasestimated based on reasonable assumptions, and tax expenses were calculated by multiplying the quarterly pretax net
income by the estimated effective tax rate.

(Change in Accounting Policy)(Application of Accounting Standard Codification (ASC) 606: Revenue from Contract with Customers)
At our overseas subsidiaries that have adopted US GAAP, ASC 606: Revenue from Contract with Customers has been
applied starting from the first quarter of the current consolidated fiscal year under review.
Due to this, when promised goods or services are transferred to customers, we recognize revenue in an amount thatreflects the consideration to which the entity expects to be entitled in exchange for those goods or services.
With regard to the application of such accounting standard, we have adopted a method where cumulative effects of theapplication are recognized on the start date of application in accordance with the transitional treatment, and such effects
were added to or deducted from retained earnings at the beginning of the first quarter of the current consolidated fiscal
year under review.
As a result, the amount of retained earnings at the beginning of the first quarter of the current consolidated fiscal year
under review decreased by JPY178 million. This change had a minimal impact on the results for the first quarter of thecurrent consolidated fiscal year under review.

(Application of IFRS 16 “Leases”)
At the Group’s subsidiaries that have adopted IFRS, IFRS 16 “Leases” (publicized in January 2016) (hereinafter referred
to as “IFRS 16”) has been applied starting from the first quarter of the current consolidated fiscal year under review. In
applying IFRS 16, the Group has adopted a method of recognizing cumulative effects of the application on the start dateof application, which is accepted as a transitional measure.
As for leases that the Group as lessee previously classified as operating leases by applying IAS 17, these leases wererecognized as right-of-use assets or lease liabilities on the start date of application.
In line with the application of the standard, other tangible assets, other current liabilities and other fixed liabilities in the
consolidated balance sheet increased by JPY2,684 million, JPY1,146 million and JPY1,538 million, respectively. In addition,
the portion of assets worth 2,830 million yen that was previously recorded as other intangible assets has also been included
in other tangible assets starting from the first quarter of the current consolidated fiscal year under review. This change hada minimal impact on the results for the first quarter of the current consolidated fiscal year under review.

(Subsequent Events of Significant Importance)
On July 24, 2019, the Company issued the following unsecured bonds and received the proceeds on the same date.

13

Consolidated Results for the First Quarter
Ended June 30, 2019

1. Name:

Sumitomo Heavy Industries Limited Series 5 Unsecured Bond (with InterBond Pari Passu Clause)

2. Total issuance amount:

JPY10,000,000,000

3. Issuance price:

JPY100 per JPY100 of face value

4. Interest rate:

0.130% per annum

5. Redemption value:

JPY100 per JPY100 of face value

6. Redemption period and repayment
method:July 24, 2024 (bullet maturity amortization)

7. Purpose of loan:

Planned to be allocated as a part of funds for purchasing equipment by
March 202014

Consolidated Results for the First Quarter
Ended June 30, 2019

3. Supplementary Information(1) Orders, Sales and Operating Income, and Balance of Orders by Segment
Orders(Units: millions of yen)Segment

April 1, 2018, toJune 30, 2018

April 1, 2019, toJune 30, 2019

AmountAmountY/Y Change
Amount%Machinery Components

30,802

34,085

3,282

10.7

Precision Machinery

51,26642,527(8,738)(17.0)

Construction Machinery

75,62270,567(5,054)(6.7)

Industrial Machinery

18,18820,413

2,225

12.2

Ships

6,679

4,406

(2,273)(34.0)

Environmental Facilities & Plants

43,287

17,791(25,496)(58.9)

Others

1,730

2,015

284

16.4

Total

227,574

191,804(35,770)(15.7)

Sales and Operating Income(Units: millions of yen)Segment

April 1, 2018, toJune 30, 2018

April 1, 2019, toJune 30, 2019

Operating
IncomeSales

Y/Y Change

Operating
IncomeSales

Operating
IncomeSales

Machinery Components

27,0642,139

31,912

1,881

4,848

(259)

Precision Machinery

40,5773,227

41,923

3,441

1,347

214

Construction Machinery

70,957

6,559

71,151

5,792

193

(766)

Industrial Machinery

20,817

1,796

18,235644(2,582)(1,152)

Ships

9,600

1,062

9,452

621

(147)

(441)

Environmental Facilities & Plants

32,058

1,951

29,954886(2,105)(1,065)

Others

1,604

466

1,554

286

(51)

(180)

―

13

―

(21)

―

(34)

202,678

17,214204,181

13,531

1,503(3,683)Adjustments
Total

15

Consolidated Results for the First Quarter
Ended June 30, 2019

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

End of Previous Fiscal
Year
As of March 31, 2019

End of First Quarter
As of June 30, 2019

AmountAmountChangeAmount%Machinery Components

37,21539,3872,172

5.8

Precision Machinery

82,95083,554604

0.7Construction Machinery

72,91972,336

(584)

(0.8)

Industrial Machinery

95,96898,145

2,178

2.3

Ships

40,012

34,966(5,046)(12.6)

Environmental Facilities & Plants

271,413259,250(12,162)(4.5)

Others

1,418

1,879

461

32.5

Total

601,895

589,518(12,377)(2.1)

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

Main Products

Machinery Components

Power transmission and controls 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 machinery16

Consolidated Results for the First Quarter
Ended June 30, 2019(2) (Summary) Consolidated Cash Flows Statement(Units: millions of yen)Previous First Quarter
April 1, 2018, to June30, 2018

Present First Quarter
April 1, 2019, to June30, 2019

Income before income taxes

16,94013,339(3,601)

Depreciation

6,119

6,896

777

(Increase) decrease in notes and accounts
receivable

20,09531,863

11,768(Increase) decrease in inventories(14,325)(18,020)(3,695)

Increase (decrease) in notes and accounts
payable

6,508(7,222)(13,730)

Payments for income taxes(5,120)(11,660)(6,541)Other(5,187)(1,612)

3,575

25,03013,583(11,447)

Payments for purchases of property, plant,
and equipment(7,329)(10,349)(3,020)Other(20,185)

1,483

21,668(27,514)(8,865)

18,648279(2,259)(2,537)

Cash dividends paid

(5,345)(7,373)(2,028)Other(1,091)(1,122)(31)(6,157)(10,754)(4,596)

(922)

973

1,894

Cash and cash equivalents at beginning of period

85,503

69,776(15,728)

Cash and cash equivalents at end of period

75,94064,712(11,228)

Net cash provided by operating activities

Net cash used in investing activities
Net increase (decrease) in short-term loans

Net cash used in financing activities
Other

17

Y/Y Change