Sumitomo Heavy Industries, Ltd.
FIRST QUARTER CONSOLIDATED FINANCIAL REPORTFor the Three-Month Period from April 1 to June 30, 2013

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 First Quarter
Ended June 30, 2013

Summary of Consolidated Financial Results
For the First Quarter Ended June 30, 2013
Presented July 31, 2013

Sumitomo Heavy Industries, Ltd.
Listed exchanges

Tokyo Stock Exchange

Stock code

6302

Head officeTokyo

President

Shunsuke Betsukawa

URLwww.shi.co.jp

Inquiries

Tsuneyoshi Sato
General Manager, Corporate Communications Dept.

Telephone+81 3 6737 2333

Scheduled reporting date for quarterly reportAugust 7, 2013

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 2013 First Quarter Consolidated Results (April 1, 2013, to June 30, 2013)(1) Business Results(Units: millions of yen)First Quarter
April 1 to June 30, 2013

Previous First Quarter
April 1 to June 30, 2012

% change% change

120,057(17.9)

146,299

6.1

Operating income

1,341(84.8)

8,844(12.4)

Ordinary income

2,074(77.5)

9,220

(4.3)

600

(88.6)

5,276

52.3

Net sales

Net income
Net income per share (yen)

0.98

8.60

Fully diluted net income per share (yen)－－Note: Comprehensive income
Fiscal quarter ended June 30, 2013: 9,693 million yen (13.2%)
Fiscal quarter ended June 30, 2012: 8,560 million yen (28.8%)2

Consolidated Results for the First Quarter
Ended June 30, 2013

(2) Financial Position(Units: millions of yen)
End of First Quarter
As of June 30, 2013

End of Previous Full YearAs of March 31, 2013

Total assets

642,469

647,724

Total net assets

300,049

292,826

Equity ratio (%)

46.0

44.6

Reference: Equity
Fiscal quarter ended June 30, 2013: 295,668 million yen
Fiscal year ended March 31, 2013: 288,849 million yen

2. Dividends(Units: yen)
Year Ended March 31,
2013

Year Ended March 31,
2014

－

－

Year Ended March 31,
2014 (forecast)

Annual dividends per shareFirst quarter

3.00

4.00

Second quarter
Third quarter－－End of term

4.00

3.00

Annual dividends

8.00

6.00

Note:

Changes from the most recent dividend forecast: None

3. FY 2013 Consolidated Forecasts (April 1, 2013, to March 31, 2014)(Units: millions of yen)
Second Quarter (Cumulative)
April 1, 2013, to September 30,
2013

Full Year
April 1, 2013, to March 31, 2014

275,000% change(6.2)

600,000% change
2.4

Operating income

7,000(59.8)

30,000(4.1)

Ordinary income

6,000(63.8)

26,000(16.1)Net income

2,000(79.7)

14,000138.7

Projected net income per share (yen)

3.26

Net sales

Note:

Changes from the most recent consolidated forecast: None

3

22.81

Consolidated Results for the First Quarter
Ended June 30, 2013

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

None

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

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

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

None(4) Number of shares issued (common shares)(i) Number of shares issued at end of fiscal period (including treasury stock):
As of June 30, 2013
As of March 31, 2013

614,527,405 shares
614,527,405 shares(ii) Amount of treasury stock at end of fiscal period
As of June 30, 2013
As of March 31, 2013

874,342 shares
857,899 shares(iii) Average number of shares during fiscal period (cumulative quarterly period)
As of June 30, 2013
As of June 30, 2012

613,657,498 shares
613,714,527 shares

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

4

Consolidated Results for the First Quarter
Ended June 30, 2013

Supplementary Materials – Table of Contents

1. Qualitative Information regarding Current Quarterly Consolidated Business Performance ...... 6(1) Explanation of Business Performance ............................................................................................. 6(2) Explanation of the Group’s Consolidated Financial Position ........................................................... 7(3) Explanation of the Consolidated Earnings Forecast and Other Forward-Looking Estimates ......... 8
2. Notes regarding Summarized Information (Other) ........................................................................... 8(1) Changes Involving Important Subsidiaries during the Current Consolidated Year-to-Date Quarterly
Period ............................................................................................................................................... 8(2) Special Accounting Procedures Adopted during the Development of the Quarterly Consolidated
Financial Report ............................................................................................................................... 8(3) Changes to Accounting Policies, Changes to Accounting Estimates, and Restatements ............... 8
3. Quarterly Consolidated Financial Statements .................................................................................. 9(1) Quarterly Consolidated Balance Sheets .......................................................................................... 9(2) Consolidated Income Statements and Consolidated Statement of Comprehensive Income .........11
Consolidated Income Statements....................................................................................................11
Consolidated Statement of Comprehensive Income ...................................................................... 12(3) Notes regarding Consolidated Quarterly Financial Statements ..................................................... 12(Notes on Premise of a Going Concern) ........................................................................................ 12(Notes regarding Significant Fluctuations to Shareholders’ Equity)............................................... 12(Subsequent Events of Significant Importance) ............................................................................. 12
4. Supplementary Information .............................................................................................................. 13(1) Orders, Sales and Operational Profit, and Balance of Orders by Segment .................................. 13(2) (Summary) Consolidated Cash Flows Statement .......................................................................... 155

Consolidated Results for the First Quarter
Ended June 30, 2013

1. Qualitative Information regarding Current Quarterly Consolidated Business
Performance(1) Explanation of Business Performance
The Japanese economy in the first quarter of the fiscal year under review remained unstable, as on one hand, there weresigns of optimism mainly because of the correction of the strong Japanese yen, whereas on the other, the level of capital
investment remained weak. Outside Japan, overall conditions remained uncertain, as any economic recovery seen in
portions of the U.S. market was dragged down by continuing stagnation in the eurozone and the slumping Chinese
economy.
Set against this economic backdrop, the Group focused on implementing structural reforms that aimed to improve
profitability, and executed strategies to increase competitiveness. As a result, orders increased across all segments of
the Group to end at JPY151.1 billion, a 22% gain as compared to the same period last year (hereinafter referred to as
the “previous term”). In terms of sales, the Group posted figures that were weaker than those of the previous term, withthe exception of the Machinery Components, Construction Machinery, and Other segments. In actual figures, sales
totaled JPY120.1 billion, an 18% decrease as compared to the previous term.
Turning to income, the impact of the fall in sales resulted in the Group posting an operating income figure of JPY1.3
billion, an 85% decline as compared to the previous term, and ordinary income of JPY2.1 billion, a 78% decline ascompared to the previous term. Quarterly net income also fell 89% as compared to the previous term to finish at JPY600
million.
Conditions in each business segment of the Group were as follows:
1. Machinery Components
In overseas markets, although conditions in the eurozone remained quite weak, other regional markets showed signs ofgrowth, and as a result, there was a rise in both orders and sales as compared to the previous term. In actual figures, thesegment received orders worth JPY23.8 billion, a 3% gain as compared to the previous term, and posted sales of
JPY21.7 billion, a 2% gain as compared to the previous term. Further, the segment posted an operating income of
JPY800 million.
2. Precision Machinery
With respect to plastics machinery, there was an increase in IT-related demand, and as a result, orders increased whilesales fell. In other product areas, although demand for the segment’s semiconductor-related products was weak, theoverall segment was able to post an increase in orders while sales fell. In actual figures, the segment received orders
worth JPY29.7 billion, a gain of 1% as compared to the previous term, and posted sales of JPY27.2 billion, a decrease of
14% as compared to the previous term. Further, the segment posted operating income of JPY400 million.
3. Construction Machinery
The hydraulic excavator business saw an increase in orders from domestic market as compared to the previous term.
However, sales figures fell for this product line. The mobile crane business posted gains in both orders and sales as
North American markets continued to show signs of recovery. As a result, the segment as a whole received orders worth
JPY50.8 billion, a gain of 30% as compared to the previous term, and posted sales of JPY39.9 billion, a gain of 2% ascompared to the previous term. Further, the segment posted operating income of JPY1.6 billion.
4. Industrial Machinery
Orders for turbines and pumps as well as material handling products increased as compared to the previous term, mainly
because of a rise in exports, a consequence of the weaker Japanese yen. On the other hand, sales fell as compared tothe previous term because of the low balance of orders carried over from previous years. In actual figures, the segment
received orders worth JPY21.2 billion, a gain of 21% as compared to the previous term, and posted sales of JPY15.4
billion, a decrease of 31% from the previous term. Further, the segment posted operating income of JPY100 million.

6

Consolidated Results for the First Quarter
Ended June 30, 2013

5. Ships
The segment received orders for two new vessels during the period under review, an improvement as compared to theprevious term, during which no orders were received. With regard to sales, one vessel was handed over during theperiod under review, which is one vessel fewer as compared to the previous term. In actual figures, the segment
received orders worth JPY9.2 billion, a gain of 379% as compared to the previous term, and posted sales of JPY2.9
billion, a decrease of 83% as compared to the previous term. Further, the segment posted an operating loss of JPY1.0
billion.
6. Environmental Facilities & Plants
Orders for the overall segment rose as the increase in orders for the water treatment plant business outstripped the fall inorders in the energy plant business. On the other hand, sales fell as compared to the previous term because of the lowbalance of orders carried over from previous years. In actual figures, the segment received orders worth JPY12.4 billion,a gain of 12% as compared to the previous term, and posted sales of JPY10.6 billion, a decrease of 20% as compared tothe previous term. Further, the segment posted an operating loss of JPY1.2 billion.
7. OtherIn this segment, both orders and sales figures rose as compared to the previous term. In actual figures, the segment
received orders worth JPY4.1 billion, a gain of 94% as compared to the previous term, and posted sales of JPY2.3 billion,a gain of 28% as compared to the previous term. Further, the segment posted operating income of JPY500 million.

(2) Explanation of the Group’s Consolidated Financial Position
1. Condition of Assets, Liabilities, and Net Assets
Total assets at the end of the quarter under review (ended June 30, 2013) amounted to JPY642.5 billion, a decrease of
JPY5.3 billion as compared to the end of the previous consolidated fiscal year. This was mainly due to the JPY7.3 billion
decrease in cash and deposits, and the JPY24.7 billion decrease in trade notes and accounts receivable outstripping the
JPY20.0 billion increase in inventory assets.
Total liabilities fell to JPY342.4 billion, a decrease of JPY12.5 billion as compared to the end of the previous consolidated
fiscal year. This was mainly due to the JPY3.9 billion decrease in trade notes and accounts payable, and the JPY12.0
billion decrease in the balance of interest-bearing liabilities, exceeding the JPY8.0 billion increase in advances received.
Net assets amounted to JPY300.0 billion, an increase of JPY7.2 billion as compared to the end of the previous
consolidated fiscal year. This was mainly due to the JPY8.2 billion increase in the foreign currency translation
adjustment.
As a result of the above, the equity ratio improved by 1.4% from the end of the previous consolidated fiscal year to finish
at 46.0%.
2. Cash Flow Condition
Cash flow from operating activities totaled JPY12.7 billion, as compared to an outflow of JPY1.1 billion in the previous
term, mainly because of an increase in trade receivables and a decrease in inventory assets.
Cash flow used for investing activities totaled JPY3.3 billion, a decrease of JPY600 million as compared to the previous
term. This was mainly due to a decrease in the cash used to acquire fixed assets.
Cash used for financing activities totaled JPY18.9 billion, an increase of JPY3.9 billion as compared to the previous term.
This was mainly due to the repayment of interest-bearing liabilities.
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 totaled JPY38.5 billion, a decrease of JPY8.0 billion as compared to the end of the previous
consolidated fiscal year.

7Consolidated Results for the First Quarter
Ended June 30, 2013

(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, 2014, which was
published along with the earnings summary on May 8, 2013.
From the second quarter of the current consolidated fiscal year, the following currency exchange rates are being
assumed: USD1 = JPY95; EUR1 = JPY125.

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

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

(3) Changes to Accounting Policies, Changes to Accounting Estimates, and Restatements
There are no applicable items.

8Consolidated Results for the First Quarter
Ended June 30, 2013

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Units: millions of yen)
End of Previous Fiscal YearAs of March 31, 2013

End of First Quarter
As of June 30, 2013

AmountAmountAssetsCash and deposits

47,81440,563

Notes and accounts receivable

173,300

148,634

Inventory assets

139,217

159,264

Other

27,41428,454

Allowance for doubtful accounts(1,117)(1,023)

386,628

375,892Land

108,033

108,276

Other (net)102,619

105,397

Total tangible assets

210,652

213,673

7,765

8,226

7,765

8,226

Other

44,49746,364

Allowance for doubtful accounts(1,817)(1,686)42,67944,678Fixed assets

261,096266,577

Total assets

647,724

642,469

Current assets

Other
Total intangible assets

Investments and other assets

9Consolidated Results for the First Quarter
Ended June 30, 2013

(Units: millions of yen)
End of Previous Fiscal YearAs of March 31, 2013

End of First Quarter
As of June 30, 2013

AmountAmountLiabilities
Notes and accounts payable

113,575

109,663

Short-term bank loans

48,032

46,216Long-term loans due within one year

1,245

7,335

Commercial paper

10,000－Allowance

7,294

7,357

Other

62,87066,227243,014

236,798

Bonds

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

29,27022,957

Employees’ severance and retirement benefits

39,16939,77248

45

Deferred income taxes on revaluation

24,60824,608

Other

8,789

8,239

Long-term liabilities

111,883

105,622

Total liabilities

354,898

342,420

Common stock

30,87230,872

Capital surplus

23,78923,789Retained earnings

207,580

205,725

Treasury stock

(455)

(462)

Stockholders’ equity

261,786

259,924

Unrealized gains on securities

2,694

3,459

Profit (loss) on deferred hedge

(562)

(416)

Adjustment regarding pension obligations ofconsolidated overseas subsidiaries(3,808)(4,218)

Revaluation reserve for land

38,19738,197

Foreign currency translation adjustments(9,458)(1,279)Total accumulated other comprehensive income

27,06435,744

Minority interests

3,977

4,380

Total net assets

292,826

300,049

Liabilities and net assets

647,724

642,469

Current liabilities

Allowance

Net assets

10Consolidated Results for the First Quarter
Ended June 30, 2013

(2) Consolidated Income Statements and Consolidated Statement of Comprehensive Income
Consolidated Income Statements(Units: millions of yen)Previous First Quarter
April 1, 2012, to June 30,
2012

Present First Quarter
April 1, 2013, to June 30,
2013

AmountAmountNet sales

146,299

120,057

Cost of sales

115,200

95,307Gross income

31,09924,750

Selling, general & administrative expenses

22,25523,409Operating income

8,844

1,341

Interest income

8053

Dividend income

578

575

Other

899

1,455

1,556

2,082

Interest expense

498

533

Other

682

817

Total non-operating expenses

1,180

1,350

Ordinary income

9,220

2,074

Loss on impaired assets－

34

Loss on devaluation of marketable securities

580－

Total extraordinary losses

580

34

Income before income taxes

8,640

2,039

Corporate income taxes

3,265

1,343

Quarterly net income before income or loss
adjustments on minority interests

5,376

696

100

96

5,276

600

Non-operating income

Total non-operating income
Non-operating expenses

Extraordinary losses

Minority interests
Net income

11Consolidated Results for the First Quarter
Ended June 30, 2013

Consolidated Statement of Comprehensive Income(Units: millions of yen)Previous First Quarter
April 1, 2012, to June 30, 2012

Present First Quarter
April 1, 2013, to June 30, 2013

AmountAmount

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

5,376

696

Unrealized gains on securities

(929)

765

Profit (loss) on deferred hedge

315

153

Adjustment regarding pension
obligations of consolidated overseas
subsidiaries

(203)

(410)

Foreign currency translation adjustments

3,995

8,496

Amount applied for equity method
accounting of affiliates

6(7)

Total other comprehensive income

3,184

8,997

8,560

9,693

8,271

9,280

289

412

Other comprehensive income

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

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

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

12Consolidated Results for the First Quarter
Ended June 30, 2013

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

April 1, 2012, toJune 30, 2012

April 1, 2013, toJune 30, 2013

AmountAmountY/Y Change
Amount%Machinery Components

23,174

23,772598

2.6

Precision Machinery

29,44029,702262

0.9Construction Machinery

39,11550,766

11,651

29.8

Industrial Machinery

17,54821,186

3,639

20.7

Ships

1,923

9,215

7,292

379.2

Environmental Facilities & Plants

11,037

12,374

1,337

12.1

Other

2,107

4,094

1,987

94.3

Total

124,344

151,10926,765

21.5

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

April 1, 2012, toJune 30, 2012

April 1, 2013, toJune 30, 2013

Operational
ProfitSales

Y/Y Change

Operational
ProfitSales

Operational
ProfitSales

Machinery Components

21,161(128)

21,690

766

529

894

Precision Machinery

31,741

2,622

27,235365(4,506)(2,257)

Construction Machinery

39,066

1,802

39,921

1,626

855

(176)

Industrial Machinery

22,0981,067

15,352125(6,747)

(943)

Ships

17,161

3,182

2,906

(956)

(14,255)(4,137)

Environmental Facilities & Plants

13,24040

10,608(1,194)(2,632)(1,234)

－

264

2,345

525

514

261

1,831

(5)

－

84

－

90

146,299

8,844

120,057

1,341(26,241)(7,503)

Other
Adjustments
Total

13

Consolidated Results for the First Quarter
Ended June 30, 2013

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

End of Previous Fiscal
Year
As of March 31, 2013

End of First Quarter
As of June 30, 2013

AmountAmountChangeAmount%Machinery Components

28,84130,923

2,082

7.2

Precision Machinery

40,58743,0542,467

6.1

Construction Machinery

25,86236,707

10,845

41.9

Industrial Machinery

77,686

83,520

5,834

7.5

Ships

10,796

17,105

6,309

58.4

Environmental Facilities & Plants

87,78989,554

1,765

2.0

Other

1,836

3,586

1,749

95.3

Total

273,397

304,450

31,052

11.4

The Group’s operating segments are categorized as follows:
Please note that on April 1, 2013, Sumitomo Heavy Industries Techno-Fort Co., Ltd. was merged into the Group by
absorption and integrated into the Group’s quantum equipment business. As a result, ion accelerators, medical machines
and equipment and plasma coating systems for FPDs, which were previously categorized under the Precision Machinery
segment, will now be categorized under the Industrial Machinery segment as of the beginning of the current consolidated
fiscal year. Any segment information published during the current consolidated fiscal year will therefore reflect these new
product classifications.

Businesses

Main Products

Machinery Components

Power transmission and control

Precision Machinery

Plastic injection molding machines, film forming machines, semiconductor
production equipment, laser processing systems, cryocoolers, precision
positioning equipment, precision forgings, control components, defense
equipment, machining tools

Construction Machinery

Hydraulic excavators, mobile cranes, road machinery

Industrial Machinery

Ion accelerators, medical machines and equipment, plasma coating systems for
FPDs, forging machines, material handling systems, logistics systems,
automated parking systems, turbines, pumps

Ships

Ships

Environmental Facilities & Plants

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

14

Consolidated Results for the First Quarter
Ended June 30, 2013(2) (Summary) Consolidated Cash Flows Statement(Units: millions of yen)Previous First Quarter
April 1, 2012, to June30, 2012

Present First Quarter
April 1, 2013, to June30, 2013

Y/Y Change

Income before income taxes

8,640

2,039

(6,601)

Depreciation

4,160

4,278

118

(Increase) decrease in notes andaccounts receivable

11,27335,46424,192(Increase) decrease in inventories(4,098)(14,154)(10,056)

Increase (decrease) in notes andaccounts payable(8,720)(6,996)

1,724

Payments for income taxes(10,673)(3,583)

7,090

Other

(1,725)(4,337)(2,612)

Net cash provided by operating activities(1,143)

12,711

13,855

Payments for purchases of property,
plant, and equipment(4,666)(3,967)

699

Proceeds from sale of securities

281

693

412

Other

567

19

(548)

(3,818)(3,256)563

Net increase (decrease) in short-term
loans(10,724)(16,277)(5,553)

Cash dividends paid

(3,266)(2,166)

1,100

(968)

(457)

511

(14,959)(18,900)(3,941)

Other

1,549

1,436

(113)

Cash and cash equivalents at beginning of
period72,376

46,476(25,900)

Cash and cash equivalents at end of period

54,004

38,467(15,537)

Net cash used in investing activities

Other
Net cash used in financing activities15