Sumitomo Heavy Industries, Ltd.
CONSOLIDATED FINANCIAL REPORTFor the Full Year Ended March 31, 2010

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, 2010

Summary of Consolidated Financial Results
For the Full Year Ended March 31, 2010
Presented May 10, 2010

Sumitomo Heavy Industries, Ltd.
Listed exchanges

Tokyo Stock Exchange, Osaka Securities Exchange

Stock code

6302

Head officeTokyo

President

Yoshinobu Nakamura

URL

www.shi.co.jp

Inquiries

Hideo Oshima
General Manager, Corporate Communications Dept.

Telephone+81 3 6737 2333

Scheduled date of ordinary
shareholders’ meeting
Scheduled date of payment of cash
dividends
Scheduled date of securities reportfilingJune 29, 2010
June 30, 2010
June 29, 2010

1. FY 2010 Consolidated Results (April 1, 2009 to March 31, 2010)(1) Business Results(Units: millions of yen)
Current Full Term
April 1, 2009
to March 31, 2010

Previous Full Term
April 1, 2008
to March 31, 2009

% change% change

Net sales

516,165(19.7)

642,918(2.7)

Operating income

28,254(50.4)

56,940(26.8)

Ordinary income

26,333(47.6)

50,275(33.4)Net income

13,280(2.7)

13,649(68.2)

22.01

Net income per share (yen)

22.62

Fully diluted net income per share----

Return on equity (ROE, %)

5.6

5.9

Return on assets (%)

4.2

7.5

Ordinary income to net sales (%)

5.5

8.9

Note: Equity method investment profit and loss:
Fiscal year ended March 31, 2010: (22 million yen)
Fiscal year ended March 31, 2009: 755 million yen

2Consolidated Results for the Full Year
Ended March 31, 2010

(2) Financial Position(Units: millions of yen)
End of Current
Full YearAs of March 31, 2010

End of Previous
Full YearAs of March 31, 2009

Total assets

610,087

657,436

Net assets

254,153

238,697

40.0

34.8

404.73378.78Equity ratio (%)
Net assets per share (yen)Note: Equity:
Fiscal year ended March 31, 2010: 244,221 million yen
Fiscal year ended March 31, 2009: 228,581 million yen(3) Cash Flows(Units: millions of yen)
Current Full Year
April 1, 2009 to
March 31, 2010

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

Cash flows from operating activities

57,51334,676

Cash flows from investing activities(13,954)(35,924)

Cash flows from financing activities(26,686)

15,625

Cash and cash equivalents at period end

61,452

42,414

2. Dividends(Units: yen)
Year Ended March 31,
2009

Year Ended March 31,
2010

Year Ended March 31,
2011 (forecast)

Annual dividends per shareFirst quarter
Second quarter

--

--

--

6.00

0.00

0.00

Third quarter

--

--

--

End of term

0.00

4.00

5.00

Annual dividends

6.00

4.00

5.00

Total dividends (millions of yen)

3,621

2,414

Payout ratio (consolidated, %)

26.5

18.2

Net assets dividend yield(consolidated, %)

1.6

1.0

3

18.3

Consolidated Results for the Full Year
Ended March 31, 2010

3. FY 2011 Consolidated Forecasts (April 1, 2010 to March 31, 2011)(Units: millions of yen)
Second Quarter (Cumulative)
April 1, 2010 to Sept. 31, 2010

Full Year
April 1, 2010 to March 31,
2011

Net sales

245,000% change(2.6)

540,000% change
4.6

Operating income

11,00033.8

36,00027.4

Ordinary income

8,500

17.2

32,00021.5

Net income

3,000

127.4

16,50024.2

Projected net income per share (yen)

4.97

27.34

4. Additional Notes(1) Transfers of important subsidiaries during the fiscal period (moves of specific subsidiaries due to change in scope of
consolidation):
Yes
Newly consolidated: Sumitomo Construction Machinery (Tangshan) Co., Ltd. and one additional company
Excluded from consolidation: Sumitomo (S.H.I.) Construction Machinery Manufacturing Co., Ltd.

(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(3) Number of shares issued (common shares)(i) Number of shares issued at end of fiscal period (including treasury stock):
As of March 31, 2010
As of March 31, 2009

605,726,394 shares
605,726,394 shares(ii) Number of treasury shares at end of fiscal period:
As of March 31, 2010
As of March 31, 2009

2,315,778 shares
2,259,483 shares

4Consolidated Results for the Full Year
Ended March 31, 2010

IV. Consolidated Financial Statements
1. Consolidated Balance Sheets(Units: millions of yen)
End of Full YearAs of March 31, 2009

End of Full YearAs of March 31, 2010

AmountAmountAssetsCash and deposits

44,68562,511

Notes and accounts receivable

155,664

131,893

Products

43,26034,408Works in progress

84,82670,071

Raw materials and stock

21,294

18,937

Deferred income taxes

7,631

8,632

Other

23,945

14,400Allowance for doubtful accounts(1,012)(1,073)

380,293339,780

Buildings and structures (net)49,98753,072

Machinery and transportation tools(net)

36,344

38,166

Land

115,909

115,971

Construction in progress

3,864

1,450

Other (net)

7,925

7,818

Tangible assets

214,028

216,477

Intangible assets

6,392

7,308

28,22730,398

145

79

Deferred income taxes

11,940

9,886

Other

17,875

7,733

Allowance for doubtful accounts(1,464)(1,574)56,722

46,523Fixed assets

277,143

270,308

Total assets

657,436

610,087

Current assets

Investment securities
Long-term loans

Investments and other assets

5Consolidated Results for the Full Year
Ended March 31, 2010

(Units: millions of yen)
End of Full YearAs of March 31, 2009

End of Full YearAs of March 31, 2010

AmountAmountLiabilities
Notes and accounts payable

136,090108,018

Short-term bank loans

34,17630,524

Commercial paper

24,000--Long-term loans due within one year

1,136

10,438

Corporate bonds redeemable within one
year

10,000--

Income tax payable

4,810

6,759

Advance payments received oncontracts

49,97740,971

Allowance for guaranteed construction

5,661

5,218

Other allowances

2,277

2,589

Other

34,25830,438302,385

234,954--

10,000Long-term debt due after one year

41,027

36,698

Employees’ severance and retirement
benefits

34,80832,426

237

235

Deferred income taxes on revaluation

32,211

32,211

Other

8,071

9,411

Long-term liabilities

116,353

120,981

Total liabilities

418,738

355,935

Common stock

30,87230,872

Capital surplus

20,50320,503Retained earnings

148,725

161,951

Treasury stock(1,471)(1,494)

Stockholders’ equity

198,629

211,831

Current liabilities
Bonds

Other allowances

Net assets

6

Consolidated Results for the Full Year
Ended March 31, 2010

End of Full YearAs of March 31, 2009

End of Full YearAs of March 31, 2010

AmountAmountUnrealized gains on securities

(547)

2,003

Loss on deferred hedge

1,945

1,125

Adjustment regarding pension
obligations of consolidated overseas
subsidiaries(3,008)(1,753)

Revaluation reserve for land

40,36040,386

Foreign currency translation adjustments(8,798)(9,370)Appraisal and translation differences

29,95232,390Minority interests

10,116

9,931

Total net assets

238,697

254,153

Liabilities and net assets

657,436

610,087

2. Consolidated Income Statements(Units: millions of yen)Previous Full Year
April 1, 2008 to
March 31, 2009

Current Full Year
April 1, 2009 to
March 31, 2010

AmountAmountNet sales

642,918

516,165

Cost of sales

503,072

412,751

Gross income

139,847

103,414Selling, general & administrative expenses

82,90775,160Operating income

56,94028,254

Interest income

268

183

Dividend income

912

1,039

Exchange gains

--

933

2,627

2,395

3,806

4,550

Interest expenses

1,611

1,940

Exchange losses

1,941

--

Other

6,919

4,530

Total non-operating expenses

10,471

6,471

Ordinary income

50,27526,333Non-operating income

Other
Total non-operating income
Non-operating expenses

7

Consolidated Results for the Full Year
Ended March 31, 2010

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

Current Full Year
April 1, 2009 to
March 31, 2010

AmountAmountExtraordinary gains
Gain on sale of securities

--

1,581

Income from subsidies

--

863

Total extraordinary gains

--

2,444

6,043

1,000

Loss on contracts

--

1,000

Environmental protection expenses

--

503

Goodwill amortization amount

4,932

--

Business restructuring expenses

2,019

--

Loss on impaired assets

1,904

--

Loss relating to violations of antitrust
laws

1,638

--

Total extraordinary losses

16,536

2,503

Income before income taxes

33,73926,274

Corporate income tax current

17,711

11,502

Corporate income tax deferred

979

382

Total corporate income taxes

18,69011,884

Minority interests

1,400

1,109

Net income

13,64913,280Extraordinary losses
Loss on devaluation of marketablesecurities

3. Consolidated Statements of Changes to Stockholders' Equity(Units: millions of yen)Previous Full Year
April 1, 2008 to March 31, 2009

Current Full Year
April 1, 2009 to March 31, 2010

Stockholders’ equity
Capital stock
Balance at end of previous period

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

20,52420,503

Fluctuation in the period
Total fluctuation in the period
Balance at end of period
Capital surplus
Balance at end of previous period8Consolidated Results for the Full Year
Ended March 31, 2010

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

Current Full Year
April 1, 2009 to March 31, 2010

Fluctuation in the period
Disposal of treasury stock

(21)

--

Total fluctuation in the period

(21)

--

20,50320,503

Balance at end of previous period

142,053

148,725

Increase or decrease based onchanges to accounting standards forforeign-domiciled subsidiaries

(409)

--

Dividends(6,639)--Net income

13,64913,280

Disposal of treasury stock

(3)

(2)

Difference from transfer ofrevaluation reserve for land

117

(26)

Increase from addition of
consolidated subsidiaries
accompanying changes in scopeof consolidation

--

578

Decrease from addition of
consolidated subsidiaries
accompanying changes in scopeof consolidation

--

(605)

Decrease from reduction of
consolidated subsidiaries
accompanying changes in scopeof consolidation

(44)

--

7,081

13,225

148,725

161,951(1,425)(1,471)

Acquisition of treasury stock

(112)

(28)

Disposal of treasury stock66

4

Total fluctuation in the period

(46)

(24)

(1,471)(1,494)

Balance at end of previous period

192,024

198,629

Increase or decrease based onchanges to accounting standards for

(409)

--

Balance at end of period
Earned surplus

Fluctuation in the period

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

9Consolidated Results for the Full Year
Ended March 31, 2010

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

Current Full Year
April 1, 2009 to March 31, 2010

foreign-domiciled subsidiaries
Fluctuation in the period
Dividends(6,639)--Net income

13,64913,280Acquisition of treasury stock

(112)

(28)

Disposal of treasury stock42

3

Difference from transfer ofrevaluation reserve for land

117

(26)

Increase from addition of
consolidated subsidiaries
accompanying changes in scopeof consolidation

--

578

Decrease from addition of
consolidated subsidiaries
accompanying changes in scopeof consolidation

--

(605)

Decrease from reduction of
consolidated subsidiaries
accompanying changes in scopeof consolidation

(44)

--

7,014

13,202

198,629

211,831

4,224

(547)

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

2,549

Total fluctuation in the period(4,771)

2,549

(547)

2,003

2,459

1,945

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
Loss on deferred hedge
Balance at end of previous period
Fluctuation in the period

10Consolidated Results for the Full Year
Ended March 31, 2010

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

Current Full Year
April 1, 2009 to March 31, 2010

Fluctuations other thanstockholders' equity in the period
(net)

(515)

(820)

Total fluctuation in the period

(515)

(820)

1,945

1,125

(999)

(3,008)Fluctuations other thanstockholders' equity in the period(net)(2,009)1,255

Total fluctuation in the period(2,009)1,255(3,008)(1,753)40,47740,360Fluctuations other thanstockholders' equity in the period
(net)

(117)

26

Total fluctuation in the period

(117)

26

40,36040,386(1,101)(8,798)Fluctuations other thanstockholders' equity in the period(net)(7,696)(572)

Total fluctuation in the period(7,696)(572)(8,798)(9,370)45,06029,952

Fluctuations other thanstockholders' equity in the period(net)(15,108)

2,438

Total fluctuation in the period(15,108)

2,438

Balance at end of period
Adjustment regarding pension obligationsof consolidated overseas 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

11Consolidated Results for the Full Year
Ended March 31, 2010

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

Balance at end of period

Current Full Year
April 1, 2009 to March 31, 2010

29,95232,3909,287

10,116

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

829

(185)

Total fluctuation in the period

829

(185)

10,116

9,931

246,371

238,697(409)--

Dividends(6,639)--Net income

13,64913,280Acquisition of treasury stock

(112)

(28)

Disposal of treasury stock42

3

Difference from transfer ofrevaluation reserve for land

117

(26)

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

--

578

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

--

(605)

Decrease from reduction of
consolidated subsidiaries
accompanying changes in scope of
consolidation

(44)

--

Fluctuations other than stockholders'equity in the period (net)(14,279)

2,254

Total fluctuation in the period(7,265)

15,455

238,697

254,153

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
Increase or decrease based on changes
to accounting standards forforeign-domiciled subsidiaries
Fluctuation in the period

Balance at end of period

12Consolidated Results for the Full Year
Ended March 31, 2010

4. Consolidated Cash Flows Statement(Units: millions of yen)Previous
Full Year
April 1, 2008 to
March 31, 2009

Current
Full Year
April 1, 2009 to
March 31, 2010

Cash flows from operating activities
Income before income taxes

33,73926,274

Depreciation

18,32019,725(9)(1,581)(Gain) loss on valuation of marketable securities

6,043

1,000

Goodwill amortization amount

4,932

--

Interest and dividend income(1,179)(1,222)

Interest expenses

1,611

1,940

(Increase) decrease in notes and accounts receivable

30,033

15,652(Increase) decrease in inventories(19,021)

27,977

Increase (decrease) in notes and accounts payable(25,368)(29,282)

Other

13,287

6,529

Subtotal

62,38767,012

Interest and dividend received

1,712

1,785

Interest expenses(1,615)(1,869)Payments for income taxes(27,807)(9,415)34,67657,513(Increase) decrease in time deposits

55

1,713

(Increase) decrease in securities

--

1,500

(28,073)(20,004)

Proceeds from sale of securities

1,045

1,485

Expenditures relating to the payment of contributed
capital to affiliated companies(4,511)(22)(Increase) decrease in short-term loans receivable

3,137

778

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

--

344

597

(35,924)(13,954)(Gain) loss on sale of marketable securities

Net cash provided by operating activities
Cash flows from investing activities

Acquisition costs associated with tangible and intangible
fixed assets

Other
Net cash used in investing activities

13

Consolidated Results for the Full Year
Ended March 31, 2010

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

Current
Full Year
April 1, 2009 to
March 31, 2010

Cash flows from financing activities
Net increase (decrease) in short-term loans

19,643(5,754)

Net increase (decrease) in commercial paper

6,000(24,000)

Proceeds from long-term debt

384

6,099

Repayments for long-term debt

(2,857)(1,137)

Income from the issuance of bonds--

10,000Costs associated with the redemption of bonds--(10,000)(6,628)(22)

Payment of dividends to minority stockholders(382)(1,004)

Other

(535)

(868)

Net cash used in financing activities

15,625(26,686)

Effect of exchange rate changes on cash and cash
equivalents(1,818)205

Net increase (decrease) in cash and cash equivalents

12,56017,079Cash and cash equivalents at beginning of year

29,87942,414--

1,942

Net decrease from the change in consolidated companies

(38)

--

Increase due to mergers and acquisitions

14

17

42,41461,452

Cash dividends paid

Increase due to new consolidated companies

Cash and cash equivalents at end of year

14Consolidated Results for the Full Year
Ended March 31, 2010

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

April 1, 2008 to
March 31, 2009
AmountApril 1, 2009 to
March 31, 2010%

AmountY/Y Change%

Mass-Produced Machinery

200,803

33.4

167,506

41.5(33,297)(16.6)

Environmental Protection Facilities,
Plants & Others

84,24014.0

64,041

15.9(20,199)(24.0)

Ship, Steel Structure & Other
Specialized Equipment

78,08013.0

11,525

2.9(66,555)(85.2)

Industrial Machinery

98,752

16.5

59,83414.8(38,918)(39.4)

Construction Machinery

138,78323.1

100,53124.9(38,251)(27.6)

Total

600,658

100.0

403,437

100.0(197,221)(32.8)

Sales(Units: millions of yen)Segment

April 1, 2008 to
March 31, 2009
AmountApril 1, 2009 to
March 31, 2010%

AmountY/Y Change%

Mass-Produced Machinery

227,22635.3

174,23133.7(52,995)(23.3)

Environmental Protection Facilities,
Plants & Others

92,625

14.4

77,19515.0(15,430)(16.7)

Ship, Steel Structure & Other
Specialized Equipment

79,602

12.4

76,45214.8(3,151)(4.0)

Industrial Machinery

84,31013.1

85,637

16.6

1,327

1.6

Construction Machinery

159,15424.8

102,650

19.9(56,504)(35.5)

Total

642,918100.0

516,165

100.0(126,753)(19.7)

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

April 1, 2008 to
March 31, 2009
AmountApril 1, 2009 to
March 31, 2010%

AmountY/Y Change%

Mass-Produced Machinery

71,85014.7

65,125

17.3(6,725)(9.4)

Environmental Protection Facilities,
Plants & Others

81,36616.6

68,212

18.1(13,154)(16.2)

Ship, Steel Structure & Other
Specialized Equipment

216,18444.2

151,25640.2(64,927)(30.0)

Industrial Machinery

104,616

21.4

78,81320.9(25,804)(24.7)

Construction Machinery

15,4273.1

13,308

3.5(2,119)(24.7)

Total

489,443

0.0

376,714100.0(112,728)(23.0)

15