Sumitomo Heavy Industries, Ltd.
3Q CONSOLIDATED FINANCIAL REPORTFor the Nine-Month Period from April 1 to December 31, 2011

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 Third Quarter
Ended December 31, 2011

Summary of Consolidated Financial Results
For the Third Quarter Ended December 31, 2011
Presented January 31, 2012

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 reporting date for quarterly reportFebruary 8, 2012

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 2011 3Q Consolidated Results (April 1, 2011, to December 31, 2011)(1) Business Results(Units: millions of yen)
Third Quarter
April 1 to December 31, 2011

Previous Third Quarter
April 1 to December 31, 2010

% change% change

Net sales

435,30717.9

369,196

2.7

Operating income

32,18827.1

25,333

93.9

Ordinary income

30,33332.0

22,98699.5

Net income

14,248(9.7)

15,773239.6

Net income per share (yen)Fully diluted net income per share (yen)

23.20

25.99

--

--

Note: Comprehensive Income
Fiscal quarter ended December 31, 2011:
Fiscal quarter ended December 31, 2010:

13,065 million yen (15.6%)
11,300 million yen (--%)

2

Consolidated Results for the Third Quarter
Ended December 31, 2011

(2) Financial Position(Units: millions of yen)
End of Third Quarteras of December 31, 2011

End of Previous Full Year
as of March 31, 2011

Total assets

650,391

626,829

Shareholders’ equity

275,950

269,380

42.0

42.6

Equity ratio (%)
Reference: Equity
Fiscal quarter ended December 31, 2011:
Fiscal year ended March 31, 2011:

272,860 million yen
267,326 million yen

2. Dividends(Units: yen)
Year Ended March 31,
2011

Year Ended March 31,
2012

Year Ended March 31,
2012 (forecast)

Annual dividends per share----

Second quarter

0.00

4.00

Third quarter----End of term

8.00

6.00

Annual dividends

8.00

10.00

First quarter

Note:

Changes from the most recent dividend forecast: None

3. FY 2011 Consolidated Forecasts (April 1, 2011, to March 31, 2012)(Units: millions of yen)
Full Year
April 1, 2010, to March 31, 2011

% change
Net sales

625,000

14.0

Operating income

46,0000.4

Ordinary income

43,500(1.7)

Net income

20,000(28.4)

Projected net income per share (yen)

32.59

Note:

Changes from the most recent consolidated forecast: Yes

3

Consolidated Results for the Third Quarter
Ended December 31, 2011

4. 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, 2011
As of March 31, 2011

614,527,405 shares
614,527,405 shares(ii) Amount of treasury stock at end of fiscal period
As of December 31, 2011
As of March 31, 2011

795,883 shares
122,181 shares(iii) Average number of shares during fiscal period (cumulative quarterly period)
As of December 31, 2011
As of December 31, 2010

614,029,472 shares
609,957,574 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 due to 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, see (3) Qualitative Information Regarding
Consolidated Earnings Forecast in the Supplementary Materials on page 8.

4Consolidated Results for the Third Quarter
Ended December 31, 2011

Supplementary Materials – Table of Contents

1. Qualitative Information Regarding Current Quarterly Consolidated Business Performance......6(1) Qualitative Information on Consolidated Business Performance ....................................................6(2) Qualitative Information on the Group’s Consolidated Financial Position.........................................7(3) Qualitative Information Regarding Consolidated Earnings Forecast...............................................8
2. Notes Regarding Summary Information (Others) ............................................................................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) Changes to Accounting Policies, Changes to Accounting Estimates, and Restatements ...............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 on Premise of a Going Concern .........................................................................................13(4) Notes Regarding Significant Fluctuations to Shareholders’ Equity ...............................................13(5) 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 .........................................................................16

5

Consolidated Results for the Third Quarter
Ended December 31, 2011

1. Qualitative Information Regarding Current Quarterly Consolidated Business
Performance(1) Qualitative Information on Consolidated Business Performance
The Japanese economy for the year to date to the end of the third quarter of the fiscal year under review showed
continued signs of weakness, as the Great East Japan Earthquake that struck in March 2011 significantly impacted
manufacturing activity, and at the same time resulted in the sudden strengthening of the Japanese yen. In addition, theoverall global economy remained unstable as the implementation of inflationary controls in China, a country that drove
global economic growth, increased uncertainty. Moreover, the disruption of public sector finance and the financial
markets of developed regions, such as Europe and the United States, raised concerns about the effects on the real
economy.
Set against this economic backdrop, the Group made earthquake recovery efforts a top priority, and worked hard tonormalize production activities that were disrupted. As a result, on a year-to-date basis, orders increased across all
segments of the Group, with the exception of the Precision Machinery and Ships segments, to end at JPY 428.3 billion, a
14% increase compared to the same period last year (hereinafter referred to as the “previous term”). In terms of sales, allsegments of the Group posted improved results with the exception of Environmental Facilities & Plants. Consequently,
the Group posted total sales on a year-to-date basis of JPY 435.3 billion, an 18% increase from the previous term.
Turning to income, the compound effects of an increase in sales and cost-cutting resulted in the Group posting a
year-to-date operating income of JPY 32.2 billion, a 27% improvement from the previous term, and a year-to-dateordinary income of JPY 30.3 billion, a 32% improvement from the previous term. However, year-to-date quarterly net
income fell by 10% from the previous term to JPY 14.2 billion.
Conditions in each business segment of the Group were as follows:
1. Machinery Components
Expansion in emerging markets and the positive contribution made by European operations resulted in improvements
across almost all product models in the segment as compared to the previous term. Consequently, the segment as awhole posted figures for both orders and sales that were better than those for the previous term. In actual figures, thesegment received year-to-date orders worth JPY 73.2 billion (an increase of 29% from the previous term), and posted
year-to-date sales of JPY 69.2 billion (an increase of 28% from the previous term). Furthermore, the segment posted a
year-to-date operating income of JPY 3.1 billion.
2. Precision Machinery
With respect to plastic injection molding machines, the recovering trend in the European markets contributed to anincrease in both orders and sales for this product line. In other product areas, demand for medical devices fell. As aresult, year-to-date order figures for the segment as a whole decreased as compared to the previous term. On the other
hand, year-to-date sales figures improved from the previous term, mainly due to the abundance of orders that werecarried forward to the current period. In actual figures, the segment received year-to-date orders worth JPY 106.9 billion(a decrease of 4% from the previous term), and posted year-to-date sales of JPY 100.8 billion (an increase of 10% fromthe previous term). Furthermore, the segment posted a year-to-date operating income of JPY 8.1 billion.
3. Construction Machinery
The hydraulic excavator business saw an increase in both orders and sales, despite the fact that its supply chain was
disrupted due to the Great East Japan Earthquake. The construction crane business also posted improved orders andsales figures as the North American market showed signs of recovery. As a result, the segment as a whole received
year-to-date orders worth JPY 124.3 billion (an increase of 25% from the previous term) and posted year-to-date sales of
JPY 115.9 billion (an increase of 24% from the previous term). Furthermore, the segment posted a year-to-date
operating income of JPY 4.9 billion.

6

Consolidated Results for the Third Quarter
Ended December 31, 2011

4. Industrial Machinery
Orders for turbines trended positively as the level of capital investment made by overseas customers in the resourcesand energy sectors increased. At the same time, by prioritizing the response to earthquake recovery efforts, demand forthe segments’ materials handling products improved from the previous term. The segment also posted sales figures thatexceeded the previous term. In actual figures, the segment received year-to-date orders worth JPY 56.8 billion (anincrease of 17% from the previous term) and posted year-to-date sales of JPY 57.7 billion (an increase of 26% from theprevious term). Furthermore, the segment posted a year-to-date operating income of JPY 7.4 billion.
5. Ships
The ship market has continued to remain stagnant, and this is reflected in the lack of new orders received during theyear-to-date period under review as compared to orders for two vessels received in the previous term. With regard tosales, five vessels were delivered during the year-to-date period under review, which is one vessel more than theprevious term. Consequently, the segment received year-to-date orders worth JPY 5.7 billion (a decrease of 57% fromthe previous term), and posted year-to-date sales of JPY 40.3 billion (an increase of 34% from the previous term).
Furthermore, the segment posted a year-to-date operating income of JPY 7.8 billion.
6. Environmental Facilities & Plants
Orders increased as the energy plant business and water treatment plant business showed positive signs of growth. On
the other hand, sales decreased, mainly due to the weak order figures posted in the previous term. Consequently, thesegment received year-to-date orders worth JPY 55.0 billion (an increase of 36% from the previous term) and posted
sales of JPY 45.0 billion (a decrease of 6% from the previous term). Unfortunately, the decline in sales also led to thesegment posting a year-to-date operating loss of JPY 300 million.
7. Others
Both orders and sales figures showed improvement from the previous term. In actual figures, the segment received
year-to-date orders worth JPY 6.5 billion (an increase of 1% from the previous term) and posted year-to-date sales of
JPY 6.4 billion (an increase of 7% from the previous term). Furthermore, the segment posted a year-to-date operating
income of JPY 1.3 billion.

(2) Qualitative Information on the Group’s Consolidated Financial Position
Total assets at the end of the current quarter under review (ended December 31, 2011) amounted to JPY 650.4 billion,
an increase of JPY 23.6 billion as compared to the end of the previous consolidated fiscal year. This was mainly due to
the JPY 700 million increase in cash and deposits, and the JPY 27.3 billion increase in inventory assets exceeding the
JPY 1.3 billion decrease in trade notes and accounts receivable and the JPY 5.9 billion decrease in investments andother assets from the end of the previous consolidated fiscal year.
Total liabilities rose to JPY 374.4 billion, an increase of JPY 17.0 billion as compared to the end of the previous
consolidated fiscal year. This was mainly due to the JPY 13.3 billion increase in trade notes and accounts payable aswell as the JPY 14.3 billion increase in the balance of interest-bearing liabilities exceeding the JPY 4.2 billion decrease inrevalued deferred tax liability.
Net assets amounted to JPY 276.0 billion, an increase of JPY 6.6 billion as compared to the end of the previous
consolidated fiscal year as the JPY 5.7 billion decrease in the foreign currency translation adjustment was offset by anincrease of JPY 8.1 billion in retained earnings and JPY 3.5 billion gain from the revaluation of land.
As a result of the above, the shareholders’ equity ratio fell by 0.6% from the end of the previous consolidated fiscal year
to finish at 42.0%.
(Cash Flow Condition)
Although the levels of both inventory assets and corporate income and other taxes rose, and the level of accounts
payable decreased, the level of accounts receivable fell, and quarterly net income before taxes and other adjustments
increased. As a result, cash flow from operating activities totaled JPY 10.2 billion, an increase of JPY 6.6 billion from theprevious term.

7Consolidated Results for the Third Quarter
Ended December 31, 2011

Cash flow used for investing activities totaled JPY 15.0 billion, an increase of JPY 2.2 billion from the previous term.
More specifically, while there was a reduction in the cash used to acquire shares of subsidiaries that resulted in a change
to their consolidated status, there was an increase in cash used to acquire fixed assets and a decrease in the cash
generated from the sale of marketable securities.
Cash for used for financing activities totaled JPY 6.1 billion, an increase of JPY 16.6 billion from the previous term, as
there was an increase in the amount of interest-bearing liabilities held.
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 totaled JPY 52.2 billion, an increase of JPY 500 million as compared to the end of the previous
consolidated fiscal year.

(3) Qualitative Information Regarding Consolidated Earnings Forecast
The following revisions have been made to the consolidated earnings forecast for the fiscal year ending March 31, 2012that were published on November 1, 2011.

Fiscal Year Ending March 2012
(Units: millions of yen)

% Difference(Reference)Previous Year
Results(15,000)(2.3)

548,015(8,000)(14.8)

45,80343,500(7,000)(13.9)

44,25328,00020,000(8,000)(28.6)

27,926

45.62

32.59

--

--

45.87

Previous
Forecast (A)Current
Forecast (B)Net sales

640,000

625,000

Operating income

54,00046,000Ordinary income

50,500Net income
Net income per share (yen)Difference(B - A)In regard to the future outlook, the impact of the rapidly strengthening Japanese yen, the slowdown of the Chinese
economy as a result of efforts by the government there to curb inflation, and the effect of the fiscal and financial market
turmoil in Europe and the United States on the real economy are all causes of concern.
Against this operating backdrop, the Company is projecting a lower sales figure for both the Precision Machinery andConstruction Machinery segments as compared to the previous forecast (announced on November 1, 2011). The
Company is also projecting lower operating income due to the negative impact of the decline in sales and the downward
pressure from the currency situation. Furthermore, with respect to the contract to construct an incinerated ash melting
facility for the City of Kyoto (contract value of JPY 10,867 million), a defect was discovered during the testing andcommissioning phase of the project. At present, the Company is formulating and evaluating several methods to repair thedefect. The current projections outlined in the above table take into account the additional construction costs and related
losses pertaining to the defect. Moreover, as a result of the government’s public announcement that it will reduce
corporate tax rates as part of its revisions to the tax system for the 2011 fiscal year, the Company is projecting a reversalof a portion of its deferred tax assets. This has also been incorporated into the revised projections.
Consequently, the figures for sales, operating income, ordinary income, and net income for the year ending March 31,
2012, have been revised downwards from the figures that were previously announced on November 1, 2011.
Note that from the fourth quarter of the current consolidated fiscal year, the following currency exchange rates are
assumed: USD 1 = JPY 77; EUR 1 = JPY 100.

8

Consolidated Results for the Third Quarter
Ended December 31, 2011

2. Notes Regarding Summary Information (Others)(1) Changes Involving Important Subsidiaries during the Current Consolidated Year-to-Date
Quarterly Period
There 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.

9Consolidated Results for the Third Quarter
Ended December 31, 2011

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Units: millions of yen)
End of Previous Fiscal Year
as of March 31, 2011

End of Third Quarteras of December 31, 2011

AmountAmountAssetsCash and deposits

52,48653,144

Notes and accounts receivable

155,267

153,965

Inventory assets

131,035

158,347

Other

27,54628,789(991)(1,008)365,342393,237

Land

117,157

116,267

Other (net)96,999100,349

Total tangible assets

214,156

216,616

6,936

6,046

6,936

6,046

Other

41,86735,829Allowance for doubtful accounts(1,472)(1,337)40,39534,492

Fixed assets

261,487

257,154

Total assets

626,829

650,391

Allowance for doubtful accounts
Current assets

Other
Total intangible assets

Investments and other assets

10Consolidated Results for the Third Quarter
Ended December 31, 2011

(Units: millions of yen)
End of Previous Fiscal Year
as of March 31, 2011

End of Third Quarteras of December 31, 2011

AmountAmountLiabilities
Notes and accounts payable

131,951

145,266

Short-term bank loans

21,50425,163Long-term loans due within one year

4,411

12,093－13,000Allowance

7,000

6,677

Other

77,641

72,935242,507275,135

Bonds

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

31,91821,874

Employees’ severance and retirement benefits

31,38030,954

208

138

Deferred income taxes on revaluation

31,83627,651

Other

9,600

8,689

Long-term liabilities

114,943

99,306

Total liabilities

357,450

374,441

Common stock

30,87230,872

Capital surplus

23,78923,789Retained earnings

188,047

196,190

(67)

(438)

242,641

250,412

Unrealized gains on securities

981

691

Profit (loss) on deferred hedge

960

1,026

Adjustment regarding pension obligations ofconsolidated overseas subsidiaries(1,978)(1,784)

Revaluation reserve for land

39,851

43,381

Foreign currency translation adjustments(15,129)(20,867)

Total accumulated other comprehensive income

24,68622,448

Minority interests

2,053

3,090

Total net assets

269,380

275,950

Liabilities and net assets

626,829

650,391

Commercial paper

Current liabilities

Allowance

Net assets

Treasury stock
Stockholders’ equity

11Consolidated Results for the Third Quarter
Ended December 31, 2011

(2) Consolidated Income Statements and Consolidated Statement of Comprehensive Income
Consolidated Income Statements(Units: millions of yen)Previous Third Quarter
April 1, 2010, to December 31,
2010

Present Third Quarter
April 1, 2011, to December 31,
2011

AmountAmountNet sales

369,196435,307

Cost of sales

288,288

340,183

Gross income

80,907

95,124

Selling, general & administrative expenses

55,57462,936

Operating income

25,33332,188Interest income

113

381

Dividend income

819

435

1,159

1,318

2,091

2,134

Interest expense

1,140

1,183

Other

3,297

2,806

Total non-operating expenses

4,438

3,989

Ordinary income

22,98630,333Gain from negative goodwill

3,437

－

Total extraordinary gains

3,437

－

Loss on devaluation of marketable securities

－

2,446

Loss on contracts

336

374

Loss on impaired assets

223

313

Financial impact due to the application of theaccounting standard for asset retirement
obligations

480－

Total extraordinary losses

1,038

3,133

Income before income taxes

25,384

27,200

Corporate income taxes

8,836

12,217

Quarterly net income before income or loss
adjustments on minority interests

16,54914,983776

735

15,773

14,248Non-operating income

Other
Total non-operating income
Non-operating expenses

Extraordinary gains

Extraordinary losses

Minority interests
Net income

12Consolidated Results for the Third Quarter
Ended December 31, 2011

Consolidated Statement of Comprehensive Income(Units: millions of yen)Previous Third Quarter
April 1, 2010, to December 31, 2010

Present Third Quarter
April 1, 2011, to December 31,
2011

AmountAmount

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

16,54914,983

Unrealized gains on securities(1,273)(290)

Profit (loss) on deferred hedge

529

62

Adjustment regarding pension
obligations of consolidated overseas
subsidiaries

103

194

Revaluation reserve for land

－

3,918

(4,562)(5,806)

Amount applied for equity method
accounting of affiliates

(47)

4

Total other comprehensive income(5,248)(1,918)11,30013,065

10,68012,398621

667

Other comprehensive income

Foreign currency translation adjustments

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

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

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

13Consolidated Results for the Third Quarter
Ended December 31, 2011

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

April 1, 2010, toDecember 31, 2010

April 1, 2011, toDecember 31, 2011

AmountAmountY/Y Change
Amount%Machinery Components

56,89773,17016,273

28.6

Precision Machinery

111,503106,928(4,575)(4.1)

Construction Machinery

99,307

124,303

24,99725.2

Industrial Machinery

48,34956,754

8,405

17.4

Ships

13,141

5,697(7,444)(56.6)

Environmental Facilities & Plants

40,43854,984

14,546

36.0

Others

6,410

6,495

85

1.3

Total

376,045428,332

52,287

13.9

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

April 1, 2010, toDecember 31, 2010

April 1, 2011, toDecember 31, 2011

Operational
ProfitSales

Operational
ProfitSales

Y/Y Change
Operational
ProfitSales

Machinery Components

54,1183,202

69,1893,052

15,071(150)

Precision Machinery

91,854

4,623

100,789

8,131

8,935

3,508

Construction Machinery

93,2004,476

115,864

4,917

22,664441

Industrial Machinery

45,786

7,273

57,711

7,380

11,924107

Ships

30,1193,216

40,319

7,772

10,201

4,556

Environmental Facilities & Plants

48,1091,575

45,018(291)(3,090)(1,866)

Others

6,010

953

6,416

1,256

407

304

―

15

―

(28)

―

(44)

369,196

25,333435,307

32,188

66,112

6,855

Adjustments
Total

14

Consolidated Results for the Third Quarter
Ended December 31, 2011

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

End of Previous FiscalYear
as of March 31, 2011

End of Third Quarteras of December 31, 2011

AmountAmountChangeAmount%Machinery Components

24,45628,437

3,981

16.3

Precision Machinery

64,67170,8106,139

9.5

Construction Machinery

22,50430,943

8,439

37.5

Industrial Machinery

85,627

84,671

(956)

(1.1)

Ships

96,022

61,400(34,622)(36.1)

Environmental Facilities & Plants

69,564

79,529

9,966

14.3

Others

1,942

2,020

79

4.1

Total

364,785

357,810(6,975)(1.9)

The Group’s operating segments are categorized as follows: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, ion accelerators, medical machines and equipment ,plasma coating systems for FPDs, precision forgings, control components,
defense equipment, machining tools

Construction Machinery

Hydraulic excavators, mobile cranes, road machinery

Industrial Machinery

Forging machines, material handling systems, logistics systems, automatedparking 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

15

Consolidated Results for the Third Quarter
Ended December 31, 2011(2) (Summary) Consolidated Cash Flows Statement(Units: millions of yen)Previous Third Quarter
April 1, 2010, toDecember 31, 2010

Present Third Quarter
April 1, 2011, toDecember 31, 2011

Income before income taxes

25,384

27,2001,816

Depreciation

13,234

12,997(237)(Increase) decrease in notes andaccounts receivable(9,956)

6,838

16,794(Increase) decrease in inventories(29,236)(30,359)(1,124)

Increase (decrease) in notes andaccounts payable

22,138

13,796(8,342)

Payments for income taxes(10,265)(16,713)(6,448)

Other(7,678)(3,575)

4,103

3,622

10,184

6,561(11,035)(16,176)(5,141)

631

1,400

769

(2,608)―2,608

Proceeds from sale of securities

452

143

(309)

Other

(267)

(358)

(91)

(12,829)(14,991)(2,163)

Net increase (decrease) in short-term
loans(6,760)14,432

21,192

Cash dividends paid

(2,413)(7,211)(4,797)

Other(1,321)(1,088)233(10,495)

6,133

16,628

(460)

(807)

(347)

Cash and cash equivalents at beginning of
period61,45251,700(9,752)

Cash and cash equivalents at end of period

41,292

52,21910,927

Net cash provided by operating activities
Payments for purchases of fixed assets
Proceeds from sale of fixed assets
Expenses related to the acquisition ofsubsidiaries that resulted in a change
to their consolidated status

Net cash used in investing activities

Net cash used in financing activities
Other

16

Y/Y Change