Sumitomo Heavy Industries, Ltd.
THIRD QUARTER CONSOLIDATED FINANCIAL REPORTFor the Nine-Month Period from April 1 to December 31, 2016

All financial information has been prepared in accordance with generally accepted accounting principles in Japan. This document
has been translated from the Japanese original as a guide to non-Japanese investors and contains forward-looking statements thatare based on management’s estimates, assumptions, and projections at the time of publication. A number of factors could cause
actual results to differ materially from expectations. Amounts shown in this financial statement have been rounded to the nearest
million yen.

Consolidated Results for the Third Quarter
Ended December 31, 2016

Summary of Consolidated Financial Results
For the Third Quarter Ended December 31, 2016
Presented January 31, 2017

Sumitomo Heavy Industries, Ltd.
Listed exchanges

Tokyo Stock Exchange

Stock code

6302

Head officeTokyo

President

Shunsuke Betsukawa

URLwww.shi.co.jp

Inquiries

Tsuneyoshi Sato
General Manager, Corporate Communications Dept.

Telephone+81 3 6737 2331

Scheduled reporting date for quarterly reportFebruary 6, 2017

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 2016 Third Quarter Consolidated Results (April 1, 2016, to December 31, 2016)(1) Business Results(Units: millions of yen)
Third Quarter
April 1 to December 31, 2016

Previous Third Quarter
April 1 to December 31, 2015

% change% change

Net sales

478,170(2.5)

490,428

5.1

Operating income

31,664

2.6

30,863(9.3)

Ordinary income

31,9388.5

29,438(14.7)Net income attributed to shareholders of the parent
company

23,79224.8

19,063(12.6)Net income per share (yen)Fully diluted net income per share (yen)

38.82

31.10

－

－

Note: Comprehensive income
Fiscal quarter ended December 31, 2016: 2,448 million yen (79.4%)
Fiscal quarter ended December 31, 2015: 11,893 million yen (51.0%)

2

Consolidated Results for the Third Quarter
Ended December 31, 2016

(2) Financial Position(Units: millions of yen)
End of Third Quarter
As of December 31, 2016

End of Previous Full YearAs of March 31, 2016

Total assets

731,276

782,859

Total net assets

374,741

382,817Equity ratio (%)

50.5

48.1

Reference: Equity
Fiscal quarter ended December 31, 2016: 369,430 million yen
Fiscal year ended March 31, 2016: 376,619 million yen

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

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

Annual dividends per share－－

Second quarter

7.00

7.00

Third quarter－－

First quarter

Note:

End of term

9.00

7.00

Annual dividends

16.00

14.00

Changes from the most recent dividend forecast: None

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

% change
Net sales

660,000(5.8)

Operating income

43,000(15.0)

Ordinary income

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

26,000(21.5)

Projected net income per share (yen)

42.43

Note:

Changes from the most recent consolidated forecast: None3

Consolidated Results for the Third Quarter
Ended December 31, 2016

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

None

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

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

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

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

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

1,724,142 shares
1,647,819 shares(iii) Average number of shares during fiscal period (cumulative quarterly period)
As of December 31, 2016
As of December 31, 2015

612,840,611 shares
612,950,818 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 Third Quarter
Ended December 31, 2016

Supplementary Materials – Table of Contents
1. Qualitative Information regarding Current Quarterly Consolidated Business Performance ....... 6(1) Explanation of Business Performance ........................................................................................... 6(2) Explanation of the Group’s Consolidated Financial Position .......................................................... 7(3) Explanation of the Consolidated Earnings Forecast and Other Forward-Looking Estimates ......... 8
2. Notes regarding Summarized Information (Explanatory Notes) .................................................... 9(1) Changes Involving Important Subsidiaries during the Current Consolidated Year-to-Date Quarterly
Period ............................................................................................................................................. 9(2) Special Accounting Procedures Adopted during the Development of the Quarterly Consolidated
Financial Report.............................................................................................................................. 9(3) Additional Information ..................................................................................................................... 9
3. Quarterly Consolidated Financial Statements ............................................................................... 10(1) Quarterly Consolidated Balance Sheets ...................................................................................... 10(2) Consolidated Income Statements and Consolidated Statement of Comprehensive Income ........ 12
Consolidated Income Statements ................................................................................................ 12
Consolidated Statement of Comprehensive Income .................................................................... 13(3) Notes regarding Consolidated Quarterly Financial Statements .................................................... 13(Notes on Premise of a Going Concern) ...................................................................................... 13(Notes regarding Significant Fluctuations to Shareholders’ Equity).............................................. 13(Subsequent Events of Significant Importance) ........................................................................... 13
4. Supplementary Information ............................................................................................................. 14(1) Orders, Sales and Operational Profit, and Balance of Orders by Segment .................................. 14(2) (Summary) Consolidated Cash Flows Statement ......................................................................... 165

Consolidated Results for the Third Quarter
Ended December 31, 2016

1. Qualitative Information regarding Current Quarterly Consolidated Business
Performance(1) Explanation of Business Performance
During the third quarter of the current consolidated fiscal year under review, the domestic economy showed signs of agentle recovery as sales bottomed out in the corporate sector against a backdrop of several positive factors including areversal in the Japanese Yen strengthening that had started at the beginning of the fiscal year, a recovery in exports levels
as demand from overseas markets improved, and a rise in real-estate investments. With regard to personal consumption,
despite continued improvements in the employment and wage environment, the lack of growth in disposable income had
a dampening impact and as a result, levels did not show signs of positivity. On the corporate side, investments into laborsaving plant and equipment as well as updates to aging plant and equipment continued against a backdrop of problems
such as progressive dilapidation in facilities and labor shortages. In overall terms, however, a sense of cautiousness
prevailed in this area.
In overseas markets, the recovery of the US economy continued to progress as personal consumption levels remained
steady, and corporate performance showed signs of recovery. In Europe, also continued to show signs of a gentle
economic recovery with the corporate sector leading the way as demand increased and the Euro weakened. As for China,
investments in the public sector are propping up the economy for the time being. However, the burden of excessive debt
and surplus investments on privately-held companies is resulting in a further slowdown in the pace of investments in theprivate sector. Finally, the bottoming out of resource prices and exchange rate stability in other emerging markets has
resulted in improved economic conditions. In overall terms, the global economy is in a state of gentle decline, with astronger sense of opaqueness in its future direction mainly due to the risk of political uncertainty in the US and Europe aswell as the risk of a slowdown of the Chinese economy.
Under these conditions, orders decreased across all segments of the Group with the exception of the Ships, andEnvironmental Facilities and Plant segment. On a consolidated basis, the Group posted an order figure of JPY499.7 billion,
a 2% decline as compared to the same period last year (hereinafter referred to as the “previous term”). Sales increased in
the Industrial Machinery, Ships, and Environmental Facilities and Plant segments, while sales fell in all other segments. In
total, the Group posted a sales figure of JPY478.2 billion, a decrease of 2% as compared to the previous term.
Turning to income, the drop in profits from the Precision Machinery and Construction Machinery segments was offset byincreases from other segments. As a result, operating income was JPY31.7 billion, a 3% increase as compared to theprevious term, and ordinary income was JPY31.9 billion, an 8% increase as compared to the previous term. Quarterly net
income attributable to the shareholders of the parent company also increased by 25% as compared to the previous term
to finish at JPY23.8 billion.
Please note that with regard to the crawler crane business of the Construction Machinery segment, the Group agreed toacquire additional shares of Hitachi Sumitomo Heavy Industries Construction Crane Co., Ltd. from Hitachi Construction
Machinery Co., Ltd. (hereinafter referred to as “HCM”) on March 31, 2017 (as announced on December 27, 2016). This
move will change Hitachi Sumitomo Heavy Industries Construction Crane Co., Ltd. from an affiliated company accounted
for under the equity method to a consolidated subsidiary. The Group and HCM plan to continue to provide mutual support
to one another in the areas of providing sales channels, as well as technology/know-how, and work together to develop
their respective crawler crane business.
Conditions in each business segment of the Group were as follows:
1. Machinery Components
The market for small-to-medium scale gear reducers from the domestic, China and other Asian markets showed positivity,
whereas the market for large-scale models from both the domestic and overseas markets continued to show decline. As aresult, orders and sales declined as compared to the previous term. In actual figures, the segment received orders worth
JPY74.1 billion, a fall of 7% as compared to the previous term, and posted sales of JPY73.7 billion, a fall of 8% as comparedto the previous term. Further, the segment posted operating income of JPY6.8 billion.

6

Consolidated Results for the Third Quarter
Ended December 31, 2016

2. Precision Machinery
With respect to plastics machinery, although there was an increase in demand from the European markets, IT-related
investments in China and other markets fell, resulting in an overall drop in demand. As a result, both orders and sales fellas compared to the previous term. In other product areas, orders and sales increased mainly due to the recovery in demand
for semiconductor-related equipment. In actual figures, the segment received orders worth JPY108.0 billion, a fall of 7%
as compared to the previous term, and posted sales of JPY105.6 billion, a fall of 8% as compared to the previous term.
Further, the segment posted operating income of JPY10.6 billion.
3. Construction Machinery
Although the trend of falling demand from China looks to be bottoming out, demand for hydraulic excavators from othermarkets such as Japan and North America continued to fall. As a result, orders and sales for this product area fell ascompared to the previous term. In the mobile crane business, the continuing long-term slowdown of the North American
market resulted in a drop in both orders and sales as compared to the previous term. In actual figures, the segment received
orders worth JPY124.5 billion, a fall of 12% as compared to the previous term, and posted sales of JPY127.7 billion, a fallof 10% as compared to the previous term. Further, the segment posted operating income of JPY0.4 billion.
4. Industrial Machinery
In the material handling business, there was an increase in orders mainly due to the agreement to merge Mitsubishi Heavy
Industries’ industrial crane business into the Group. However, order levels fell in the industrial equipment business andturbine business. As a result, there was a drop in orders across the whole segment as compared to the previous term. In
terms of sales, steady progress was made to complete various material handling and industrial equipment projects, which
resulted in an increase as compared to the previous term. In actual figures, the segment received orders worth JPY63.5
billion, a fall of 8% as compared to the previous term, and posted sales of JPY71.6 billion, a gain of 23% as compared tothe previous term. Further, the segment posted operating income of JPY7.1 billion.
5. Ships
Although the slowdown in market conditions continues in the Ships segment, orders for two new vessels was secured
during the current quarter under review, equaling the total from the previous term. Also, three vessels were delivered ascompared to the delivery of one vessel in the previous term. In actual figures, the segment received orders worth JPY22.5
billion, a gain of 13% as compared to the previous term, and posted sales of JPY24.1 billion, a gain of 24% as comparedto the previous term. Further, the segment posted operating income of JPY0.8 billion.
6. Environmental Facilities & Plants
The energy plant business was able to secure an order for Japan’s largest biomass-fueled power generation plant as well
as a large-scale ash treatment plant. As a result, order levels increased as compared to the previous term. However, orders
fell in the water treatment plant business mainly because of a lack of orders for new large-scale refurbishment projects. In
actual figures, the segment received orders worth JPY101.0 billion, a gain of 27% as compared to the previous term, andposted sales of JPY69.8 billion, a gain of 2% as compared to the previous term. Further, the segment posted an operating
income of JPY4.4 billion.
7. OtherIn this segment, orders and sales both dropped as compared to the previous term. In actual figures, the segment received
orders worth JPY6.1 billion, a fall of 1% as compared to the previous term, and posted sales of JPY5.7 billion, a fall of 27%
as compared to the previous term. Further, the segment posted operating income of JPY1.5 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 third quarter of the current consolidated fiscal year under review (ended December 31, 2016)
amounted to JPY731.3 billion, a decrease of JPY51.6 billion as compared to the end of the previous consolidated fiscal
year. This was mainly due to decreases of JPY22.6 billion in cash and deposits, JPY14.4 billion in trade notes and accounts
receivable, JPY5.9 billion in tangible fixed assets, and JPY5.0 billion in marketable securities.

7

Consolidated Results for the Third Quarter
Ended December 31, 2016

Total liabilities fell to JPY356.5 billion, a decrease of JPY43.5 billion as compared to the end of the previous consolidated
fiscal year. This was mainly due to decreases of JPY11.6 billion in notes and accounts payable, and JPY13.3 billion in thebalance of interest-bearing liabilities.
Net assets fell by JPY8.1 billion as compared to the end of the previous consolidated fiscal year to finish at JPY374.7
billion. This was mainly due to the JPY23.3 billion decrease in the foreign currency translation adjustment account.
As a result of the above, the shareholders’ equity ratio improved by 2.4% from the end of the previous consolidated fiscal
year to finish at 50.5%.
2. Cash Flow Condition
The increase in cash flow from operating activities was JPY10.7 billion (as compared to a decrease in cash flow of JPY6.8
billion in the previous term). When broken down, the main components of the proceeds were JPY32.9 billion in quarterly
net income before tax and other adjustments, and the JPY15.0 billion in depreciation allowance. The main sources of theoutflow of cash were the JPY21.4 billion increase in inventory assets and the JPY12.7 billion payment of corporate andother taxes.
The decrease in cash flow as a result of investing activities was JPY14.7 billion (as compared to a decrease in cash flowof JPY11.3 billion in the previous term). The main reason for the cash outflow was the JPY16.8 billion used to acquire fixed
assets.
The decrease in cash flow as a result of financing activities was JPY18.5 billion (as compared to a decrease in cash flowof JPY16.3 billion in the previous term). The main reasons for the cash outflow were the JPY6.4 billion (net amount withcash inflow of loans) used to repay loans and the JPY9.8 billion used to pay dividends.
As a result of the foregoing, the balance of cash and cash equivalents at the end of the third quarter of the current
consolidated fiscal year under review totaled JPY41.3 billion, a decrease of JPY14.0 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, 2017, which was
published along with the earnings summary on October 31, 2016.

8

Consolidated Results for the Third Quarter
Ended December 31, 2016

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

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

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

9Consolidated Results for the Third Quarter
Ended December 31, 2016

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

End of Third Quarter
As of December 31, 2016

AmountAmountAssetsCash and deposits

65,804

43,213

Notes and accounts receivable

219,929

205,530

5,000―

Inventory assets

156,270

162,305

Other

47,67340,408

Allowance for doubtful accounts(1,674)(3,209)493,002448,247Land

108,285

107,648

Other (net)

119,484

114,201

Total tangible assets

227,769

221,849

11,21911,497

11,21911,497

Other

55,23954,838

Allowance for doubtful accounts(4,371)(5,156)50,86849,682

Fixed assets

289,857

283,029

Total assets

782,859

731,276

Marketable securities

Current assets

Other
Total intangible assets

Investments and other assets

10Consolidated Results for the Third Quarter
Ended December 31, 2016

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

End of Third Quarter
As of December 31, 2016

AmountAmountLiabilities
Notes and accounts payable

142,304

130,655

Short-term bank loans

42,70834,983Long-term loans due within one year

7,300

2,278

Reserve for Guaranteed Cost Construction
Contracts

9,092

8,816

Other Allowances

5,709

4,198

Other

87,806

77,068294,919

257,998

Bonds

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

8,224

7,718

160

153

Defined benefit liability

51,62346,480

Deferred income taxes on revaluation

21,02721,024Other

14,08913,162

Total fixed liabilities

105,123

98,537

Total liabilities

400,042356,535

Common stock

30,87230,872

Capital surplus

25,35425,267Retained earnings

265,588279,583

(861)

(901)

320,953334,820

Unrealized gains on securities

2,355

3,830

Profit (loss) on deferred hedge

(121)

(620)

Revaluation reserve for land

41,481

41,472Foreign currency translation adjustments

21,558(1,734)Re-measurement of defined benefit plans(9,607)(8,338)

Total accumulated other comprehensive income

55,667

34,610Non-controlling interest

6,197

5,311

Total net assets

382,817374,741

Total liabilities and net assets

782,859

731,276

Current liabilities

Allowance

Net assets

Treasury stock
Total shareholders' equity

11Consolidated Results for the Third Quarter
Ended December 31, 2016

(2) Consolidated Income Statements and Consolidated Statement of Comprehensive Income
Consolidated Income Statements(Units: millions of yen)Previous Third Quarter
April 1, 2015, to December
31, 2015

Present Third Quarter
April 1, 2016, to December
31, 2016

AmountAmountNet sales

490,428

478,170

Cost of sales

377,275

367,253

Gross income

113,153

110,916

Selling, general & administrative expenses

82,29079,252

Operating income

30,863

31,664

Interest income

361

314

Dividend income

1,020

1,439

Investment gain on equity method

1,349

1,404

Other

1,870

1,853

4,600

5,010

Interest expense

1,394

1,035

Loss on foreign currency exchange

1,113

546

Other

3,519

3,156

Total non-operating expenses

6,026

4,737

Ordinary income

29,43831,938

Income from amortization of prior service cost

―

1,038

Total extraordinary income

―

1,038

Loss on impaired assets

513

33

Compensation expenses

1,014

―

Total extraordinary losses

1,527

33

Income before income taxes

27,91032,942

Corporate income taxes

9,957

9,164

Net income

17,953

23,778Net income (or loss) attributable to non-controllinginterests(1,110)(14)

Net income attributed to shareholders of the parent
company

19,063

23,792Non-operating income

Total non-operating income
Non-operating expenses

Extraordinary income

Extraordinary losses

12Consolidated Results for the Third Quarter
Ended December 31, 2016

Consolidated Statement of Comprehensive Income(Units: millions of yen)
Present Third Quarter
April 1, 2016, to December 31,
2016

Previous Third Quarter
April 1, 2015, to December 31,
2015
Amount

Net income

Amount17,953

23,778

Unrealized gains on securities(1,508)

1,475

Profit (loss) on deferred hedge

215

(477)

Revaluation reserve for land

55―

(4,231)(23,575)

Adjustment to retirement benefits

(596)

1,263

Amount applied for equity method
accounting of affiliates

4

(16)

Total other comprehensive income(6,060)(21,331)

11,893

2,448

Comprehensive income relating toparent company shareholdings

13,0872,744

Comprehensive income relating to noncontrolling interests(1,194)(296)

Other comprehensive income

Foreign currency translation adjustments

Comprehensive income(Breakdown)(3) Notes regarding Consolidated Quarterly Financial Statements(Notes on Premise of a Going Concern)
There are no applicable items.

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

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

13Consolidated Results for the Third Quarter
Ended December 31, 2016

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

April 1, 2015, toDecember 31, 2015

April 1, 2016, toDecember 31, 2016

AmountAmountY/Y Change
Amount%Machinery Components

79,92874,093(5,834)(7.3)

Precision Machinery

115,913

107,980(7,932)(6.8)

Construction Machinery

141,094

124,500(16,595)(11.8)

Industrial Machinery

69,28363,477(5,806)

(8.4)

Ships

19,931

22,467

2,536

12.7

Environmental Facilities & Plants

79,795101,049

21,254

26.6

Other

6,200

6,124

(76)

(1.2)

Total

512,144499,690(12,454)(2.4)

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

April 1, 2015, toDecember 31, 2015
Operational
ProfitSales

April 1, 2016, toDecember 31, 2016

Y/Y Change

Operational
ProfitSales

Operational
ProfitSales

Machinery Components

80,2106,306

73,6896,806(6,521)

500

Precision Machinery

114,836

15,327

105,578

10,585(9,258)(4,743)

Construction Machinery

141,454

2,170

127,748357(13,706)(1,813)

Industrial Machinery

58,266

5,488

71,602

7,081

13,336

1,593

Ships

19,405(12)

24,059

834

4,654

846

Environmental Facilities & Plants

68,472475

69,782

4,429

1,310

3,955

Other

7,785

1,328

5,713

1,511

(2,072)

183

―

(219)

―

61

―

280

490,428

30,863478,170

31,664(12,258)

801

Adjustments
Total

14

Consolidated Results for the Third Quarter
Ended December 31, 2016

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

End of Previous Fiscal
Year
As of March 31, 2016

End of Third Quarter
As of December 31,
2016

AmountAmountChangeAmount%Machinery Components

25,912

26,316404

1.6Precision Machinery

45,60348,0052,403

5.3

Construction Machinery

27,32424,076(3,249)(11.9)

Industrial Machinery

115,138

107,013(8,125)

(7.1)

Ships

58,76557,173(1,592)(2.7)

Environmental Facilities & Plants

109,686

140,953

31,267

28.5

Other

1,939

2,351

411

21.2

Total

384,366

405,886

21,5205.6

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

Main Products

Machinery Components

Power transmission and control equipment

Precision Machinery

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

Construction Machinery

Hydraulic excavators, mobile cranes, road machinery

Industrial Machinery

Ion accelerators, medical machines and equipment, forging press machines,
material handling systems, logistics systems, automated parking systems,
turbines, pumps

Ships

Ships

Environmental Facilities & Plants

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

15

Consolidated Results for the Third Quarter
Ended December 31, 2016(2) (Summary) Consolidated Cash Flows Statement(Units: millions of yen)Previous Third Quarter
April 1, 2015, toDecember 31, 2015

Present Third Quarter
April 1, 2016, toDecember 31, 2016

Income before income taxes

27,91032,942

5,032

Depreciation

14,545

14,970425(Increase) decrease in notes and accounts
receivable(3,928)

2,676

6,604

(Increase) decrease in inventories(25,264)(21,387)3,876

Increase (decrease) in notes and accounts
payable(2,039)(2,428)(389)

Payments for income taxes(13,730)(12,684)

1,047

Other

(4,329)(3,413)916(6,835)

10,676

17,511(14,685)(16,764)(2,079)

3,394

2,064

(1,330)(11,290)(14,699)(3,409)Net increase (decrease) in short-term loans(6,357)(6,438)(82)

Cash dividends paid

(8,557)(9,770)(1,213)

Other(1,338)(2,302)(963)(16,252)(18,510)(2,258)(719)(4,832)(4,113)

Cash and cash equivalents at beginning of period

90,324

68,625(21,699)

Cash and cash equivalents at end of period

55,227

41,259(13,968)

Net cash provided by operating activities
Payments for purchases of property, plant,
and equipment
Other
Net cash used in investing activities

Net cash used in financing activities
Other

16

Y/Y Change