Sumitomo Heavy Industries, Ltd.
SECOND QUARTER CONSOLIDATED FINANCIAL REPORTFor the Six-Month Period from April 1 to September 30, 2017

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 Second Quarter
Ended September 30, 2017

Summary of Consolidated Financial Results
For the Second Quarter Ended September 30, 2017
Presented October 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 report

November 8, 2017

Scheduled date of payment of cash dividends

December 1, 2017

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

Yes
Yes (for analysts)

1. FY 2017 Second Quarter Consolidated Results (April 1, 2017, to September 30, 2017)(1) Business Results(Units: millions of yen)
Second Quarter
April 1 to September 30, 2017

Previous Second Quarter
April 1 to September 30, 2016

% change% change

Net sales

355,31911.8

317,828(1.5)

Operating income

28,982

55.6

18,6201.4

Ordinary income

28,925

58.6

18,2388.5

Net income attributed to shareholders of the parent
company

19,76950.913,102

14.3

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

32.26

21.38

－

－

Note: Comprehensive income
Fiscal quarter ended September 30, 2017: 20,271 million yen, －%Fiscal quarter ended September 30, 2016: (5,244 million yen), (151.0%)

2

Consolidated Results for the Second Quarter
Ended September 30, 2017

(2) Financial Position(Units: millions of yen)
End of Second Quarter
As of September 30, 2017

End of Previous Full YearAs of March 31, 2017

Total assets

828,492

796,484

Total net assets

423,447

409,171

Equity ratio (%)

49.7

50.0

Reference: Equity
Fiscal quarter ended September 30, 2017: 411,404 million yen
Fiscal year ended March 31, 2017: 398,601 million yen

2. Dividends(Units: yen)
Year Ended March 31,
2017Year Ending March 31,
2018Year Ending March 31,2018 (forecast)

Annual dividends per shareFirst quarter
Second quarter

－

－

7.00

8.00

Third quarter－－End of term

9.00

40.00

Annual dividends

16.00

－

Note 1: Changes from the most recent dividend forecast: None
Note 2: The Company carried out a 5-to-1 reverse stock split for its common shares with an effective date of October 1,
2017. As such, the projected year-end dividend amount for the period ending March 2018 specified above takes
into account the reverse stock split. If the reverse stock split is not taken into account, the projected year-end
dividend for the period ending March 2018 would be JPY8.00, and the full-year dividend per share would total
JPY16.00.

3. FY 2017 Consolidated Forecasts (April 1, 2017, to March 31, 2018)(Units: millions of yen)
Full Year
April 1, 2017, to March 31, 2018

% change
Net sales

780,000

15.7

Operating income

60,00023.9

Ordinary income

59,00022.2

Net income attributed to shareholders of the parent
company

39,000

16.0

Projected net income per share (yen)318.24Note 1: Changes from the most recent consolidated forecast: Yes
Note 2: Please note that the reverse stock split has already been taken into account for the FY2017 net income per shareamount specified above in the consolidated financial forecast for the period ending March 2018. If the reverse
stock split is not taken into account, the FY2017 net income per share forecast for the period ending March 2018
would be JPY63.65.

3Consolidated Results for the Second Quarter
Ended September 30, 2017

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 September 30, 2017
As of March 31, 2017614,527,405 shares
614,527,405 shares(ii) Amount of treasury stock at end of fiscal period
As of September 30, 2017
As of March 31, 2017

1,782,130 shares
1,741,792 shares(iii) Average number of shares during fiscal period (cumulative quarterly period)
As of September 30, 2017
As of September 30, 2016

612,766,685 shares
612,855,233 shares* The Quarterly Summary of Financial Results is not subject to the Quarterly Review* Explanations and Other Special Items regarding the Pertinent Reasons for the Earnings Forecast
Earnings forecasts and outlooks concerning future financial results are believed to be reasonable based on
information available at the time of publication. Actual financial results may vary from the above forecast and outlook
because of a variety of factors. For information on the assumptions that form the basis of the earnings forecast anditems to note concerning the use of earnings forecasts, please see the Explanation of the Consolidated Earnings
Forecast and Other Forward-Looking Estimates in the Supplementary Materials on page 8.

4Consolidated Results for the Second Quarter
Ended September 30, 2017

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. Quarterly Consolidated Financial Statements and Key Explanatory Notes ................................ 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 Operating Income, and Balance of Orders by Segment ................................. 14(2) (Summary) Consolidated Cash Flows Statement ......................................................................... 175

Consolidated Results for the Second Quarter
Ended September 30, 2017

1. Qualitative Information regarding Current Quarterly Consolidated Business
Performance(1) Explanation of Business Performance
During the second quarter of the current consolidated fiscal year under review, the domestic economy showed continued
signs of recovery as capital investment levels trended positively and personal consumption levels exhibited a gentle
increase. In overseas markets, the recovery of the US economy continued to progress strongly as personal consumption
levels increased, and capital investment levels showed gentle signs of recovery. Europe also continued to show signs ofa gentle economic recovery with increasing export levels and other factors. In China, the recovery in private-sector demandand export levels resulted in stable growth. Finally, emerging markets also showed steady levels of recovery as in-country
demand bounced back and exports to other developing countries increased. In overall terms, the global economy is in astate of gentle recovery. However, risks including future political and regulatory uncertainty as well as geopolitical concerns
specifically with regard to the Korean peninsula remain.
Under these conditions, orders increased across all segments of the Group with the exception of the Industrial Machinery,and Environmental Facilities and Plants segments. On a consolidated basis, the Group posted an order figure of JPY385.8
billion, a 15% increase as compared to the same period last year (hereinafter referred to as the “previous term”). Sales
also increased across all segments with the exception of the Industrial Machinery, and Environmental Facilities and Plants
segments. In total, the Group posted a sales figure of JPY355.3 billion, an increase of 12% as compared to the previous
term.
Turning to income, the drop in profits from the Industrial Machinery and Environmental Facilities and Plants segments wasoffset by increases from all other segments. As a result, operating income was JPY29.0 billion, a 56% increase ascompared to the previous term, and ordinary income was JPY28.9 billion, a 59% increase as compared to the previous
term. Quarterly net income attributable to the shareholders of the parent company also increased by 51% as compared tothe previous term to finish at JPY19.8 billion.
As published on June 26, 2017, the energy plant business of the Environmental Facilities and Plants segment made amove to acquire Amec Foster Wheeler plc’s (Head Office: United Kingdom; hereinafter referred to as “AFW”) circulating
fluidized bed (CFB) boiler business. In line with the acquisition, the share purchase of FW Energie B.V. (Head Office: The
Netherlands; hereinafter referred to as “FW”) was completed on June 23, 2017 (local time in the Netherlands), andsubsequently FW became a wholly-owned subsidiary of the Company. By acquiring the technology and know-how behind
AFW’s CFB boiler business, it will enable the Company to supply customers with more advanced technology, and expand
the business on a global scale.
Conditions in each business segment of the Group were as follows:
1. Machinery Components
The market for small-to-medium scale gear reducers in Japan, US, Europe and China showed robust growth, along withthe market for precision gear reducers for use in robotics. In addition, market conditions for large-scale gear reducers
showed signs of improvement. As a result, orders and sales increased as compared to the previous term. In actual figures,the segment received orders worth JPY56.1 billion, a rise of 11% as compared to the previous term, and posted sales of
JPY51.2 billion, a rise of 5% as compared to the previous term. Further, the segment posted operating income of JPY5.3
billion.
2. Precision Machinery
With respect to plastics machinery, strong market conditions in Europe and Japan along with an increase in demand fromthe electric and electronic sector in China resulted in an overall increase in orders and sales as compared to the previous
term. In other product areas, both orders and sales increased mainly due to the recovery in demand for cryogenic
equipment and semiconductor-related equipment. In actual figures, the segment received orders worth JPY86.5 billion, arise of 19% as compared to the previous term, and posted sales of JPY76.8 billion, a rise of 10% as compared to theprevious term. Further, the segment posted operating income of JPY7.8 billion.

6

Consolidated Results for the Second Quarter
Ended September 30, 2017

3. Construction Machinery
With regard to the hydraulic excavator business, both orders and sales increased as compared to the previous term mainly
due to a rise in demand from the domestic and China markets. As for the mobile crane business, the recovery in demand
from the North American market as well as the impact from the subsidiarization of Hitachi Sumitomo Heavy Industries
Construction Crane Co., Ltd. resulted in an increase in both orders and sales as compared to the previous term. In actual
figures, the segment received orders worth JPY122.4 billion, a rise of 53% as compared to the previous term, and posted
sales of JPY125.6 billion, a rise of 41% as compared to the previous term. Further, the segment posted operating incomeof JPY8.3 billion.
4. Industrial Machinery
Although order levels for forging presses in the industrial machinery business increased, the same could not be said forthe material handling and turbine businesses. As a result, overall orders decreased as compared to the previous term.
Sales also fell as compared to the previous term as the increase for medical-related equipment in the industrial machinery
business was not able to offset declines in the material handling and turbine businesses. In actual figures, the segment
received orders worth JPY40.2 billion, a fall of 15% as compared to the previous term, and posted sales of JPY38.5 billion,a fall of 19% as compared to the previous term. Further, the segment posted operating income of JPY3.0 billion.
5. Ships
The slowdown in market conditions continued in the Ships segment which meant that no orders for new vessels weresecured during the current quarter under review, equaling the total from the previous term. On the other hand, three vessels
were delivered during the first half under review as compared to the two vessels delivered in the previous term. In actual
figures, the segment received orders worth JPY7.9 billion, which was approximately the same level as the previous term,and posted sales of JPY18.3 billion, a rise of 24% as compared to the previous term. Further, the segment posted operating
income of JPY2.0 billion.
6. Environmental Facilities & Plants
Despite an increase in demand for biomass-fueled power generation plants, orders in the energy plant business dropped
as compared to the previous term mainly due to declining demand for large-scale ash treatment plants. On the other hand,orders increased in the water treatment plant business mainly because of strong demand for the construction of new
facilities as well as refurbishment projects. In overall terms, the segment posted lower than previous term figures for orders.
Overall sales also fell as compared to the previous term as the increase in orders from the water treatment plant business
was not able to offset the decrease in the energy plant business. In actual figures, the segment received orders worth
JPY68.8 billion, a fall of 7% as compared to the previous term, and posted sales of JPY41.0 billion, a fall of 8% as comparedto the previous term. Further, the segment posted operating income of JPY1.6 billion.
7. Other
The Other segment received orders worth JPY3.8 billion, a rise of 1% as compared to the previous term, and posted salesof JPY3.9 billion, a rise of 1% as compared to the previous term. Further, the segment posted operating income of JPY1.1
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 second quarter of the current consolidated fiscal year under review (ended September 30,2017) amounted to JPY828.5 billion, an increase of JPY32.0 billion as compared to the end of the previous consolidated
fiscal year. This was mainly due to increases of JPY9.7 billion in inventory assets and JPY28.5 billion in goodwill offsetting
a decrease of JPY13.0 billion in notes and accounts receivable.
Total liabilities rose to JPY405.0 billion, an increase of JPY17.7 billion as compared to the end of the previous consolidated
fiscal year. This was mainly due to the increases of JPY19.0 billion in notes and accounts payable and JPY3.0 billion inadvances received offsetting the decrease of JPY11.4 billion in the balance of interest-bearing liabilities.
Net assets increased by JPY14.3 billion as compared to the end of the previous consolidated fiscal year to finish at
JPY423.4 billion. This was mainly due to the JPY14.4 billion increase in retained earnings.

7

Consolidated Results for the Second Quarter
Ended September 30, 2017

As a result of the above, the shareholders’ equity ratio fell by 0.3 points from the end of the previous consolidated fiscal
year to finish at 49.7%.
2. Cash Flow Condition
The increase in cash flow from operating activities was JPY45.0 billion (as compared to an increase in cash flow of JPY17.8
billion in the previous term). When broken down, the main components of the proceeds were JPY28.8 billion in quarterly
net income before tax and other adjustments, and the JPY25.7 billion reduction in notes and accounts receivables. The
main sources of the outflow of cash were the JPY11.5 billion increase in inventory assets and the JPY9.4 billion paymentof corporate and other taxes.
The decrease in cash flow as a result of investing activities was JPY25.2 billion (as compared to a decrease in cash flowof JPY10.1 billion in the previous term). The main reasons for the cash outflow was the JPY14.5 billion used to acquire theshares of subsidiaries associated with a change in the scope of consolidation and the JPY12.9 billion used to acquire fixed
assets.
The decrease in cash flow as a result of financing activities was JPY18.7 billion (as compared to a decrease in cash flowof JPY13.7 billion in the previous term). The main reasons for the cash outflow were the JPY11.4 billion (net amount withcash inflow of loans) used to repay loans and the JPY5.5 billion used to pay dividends.
As a result of the foregoing, the balance of cash and cash equivalents at the end of the second quarter of the current
consolidated fiscal year under review totaled JPY61.1 billion, an increase of JPY2.5 billion as compared to the end of theprevious consolidated fiscal year.

(3) Explanation of the Consolidated Earnings Forecast and Other Forward-Looking Estimates
The consolidated earnings forecast for the full-year ending March 31, 2018 that was previously released in conjunction
with the Financial Report dated May 9, 2017 has been revised as follows:(Full-Year Ending March 31, 2018)(Units: millions of yen)Previous
Forecast(A)

Current
Forecast(B)

Increase or
Decrease(B-A)

Percent
Increase or
Decrease (%)

Previous Year
Performance(for reference)

Net sales

710,000

780,000

70,0009.9

674,328

Operating income

51,00060,000

9,000

17.6

48,431

Ordinary income

49,00059,00010,00020.4

48,27432,00039,000

7,000

21.9

33,613261.11

318.24――274.24

Net income attributed to shareholders of theparent company
Projected net income per share (yen)Note

As previously announced, a 5-to-1 reverse stock split for common shares was carried out on October 1, 2017. The
quarterly net income per share figures in the above table are shown on a provisional basis as if the reverse stock
split was carried out at the beginning of the fiscal year.

The consolidated financial forecast for the period ending March 2018 that was previously published on May 9, 2017 has
been revised upwards for sales, operating income, ordinary income and quarterly net income attributable to theshareholders of the parent company due to several factors. These include the increase in demand seen in the hydraulicexcavator business, improving market conditions for small-to-medium scale gear reducers, precision gear reducers for use
in robotics, and plastics machinery, and the consolidation of the newly acquired boiler business.
Please note that from the third quarter of the current consolidated fiscal year, the main exchange rates are assumed to be
USD1 = JPY110 and EUR1 = JPY130.

8

Consolidated Results for the Second Quarter
Ended September 30, 2017

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.

9Consolidated Results for the Second Quarter
Ended September 30, 2017

3. Quarterly Consolidated Financial Statements and Key Explanatory Notes(1) Quarterly Consolidated Balance Sheets(Units: millions of yen)
End of Previous Fiscal YearAs of March 31, 2017

End of Second Quarter
As of September 30, 2017

AmountAmountAssetsCash and deposits

63,82063,537

Notes and accounts receivable242,459

229,447

Inventory assets

162,737

172,449

Other

42,366

43,848

Allowance for doubtful accounts(3,735)(3,877)

507,648

505,404

Land

107,762

108,021

Other (net)

119,979

123,579

Total tangible assets

227,741

231,600

Goodwill

1,982

30,480Other

13,261

15,731

15,243

46,211

Other

51,01750,852

Allowance for doubtful accounts(5,164)(5,574)45,85345,278Fixed assets

288,837

323,088

Total assets

796,484

828,492

Current assets

Total intangible assets

Investments and other assets

10Consolidated Results for the Second Quarter
Ended September 30, 2017

(Units: millions of yen)
End of Previous Fiscal YearAs of March 31, 2017

End of Second Quarter
As of September 30, 2017

AmountAmountLiabilities
Notes and accounts payable

147,318

166,319

Short-term bank loans

36,711

30,572Long-term loans due within one year

1,481

6,952

Commercial Paper

5,000

―

Allowance for guaranteed construction

9,609

13,234

Other allowance amount

3,711

3,027

Other

86,75593,985

290,585

314,091

Bonds

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

7,268

1,558

159

155

Defined benefit liability

44,85342,893

Deferred income taxes on revaluation

20,942

20,869Other

13,505

15,479Total fixed liabilities

96,72890,954

Total liabilities

387,313405,045

Common stock

30,87230,872

Capital surplus

25,26725,267Retained earnings

289,587

303,991

(915)

(948)

344,810359,182

Unrealized gains on securities

4,128

5,404

Profit (loss) on deferred hedge

320

179

Revaluation reserve for land

41,28941,146

Foreign currency translation adjustments

13,824

10,434Re-measurement of defined benefit plans(5,770)(4,941)

Total accumulated other comprehensive income

53,791

52,222

Non-controlling interest

10,57012,044

Total net assets

409,171423,447

Total liabilities and net assets

796,484

828,492

Current liabilities

Allowance

Net assets

Treasury stock
Total shareholders' equity

11Consolidated Results for the Second Quarter
Ended September 30, 2017(2) Consolidated Income Statements and Consolidated Statement of Comprehensive Income
Consolidated Income Statements(Units: millions of yen)Previous Second Quarter
April 1, 2016, to September
30, 2016

Present Second Quarter
April 1, 2017, to September
30, 2017

AmountAmountNet sales

317,828

355,319

Cost of sales

244,886

268,015Gross income

72,94187,304

Selling, general & administrative expenses

54,321

58,322

Operating income

18,62028,982

Interest income

214

245

Dividend income

537

590

1,910

1,639

2,660

2,474

Interest expense

735

517

Loss on foreign currency exchange

304

319

2,004

1,695

Total non-operating expenses

3,042

2,532

Ordinary income

18,23828,925

Loss on impaired assets

16

114

Total extraordinary losses

16

114

Income before income taxes

18,222

28,811

Corporate income taxes

5,402

8,002

Net income

12,82020,809Net income (or loss) attributable to non-controllinginterests

(282)

1,040

Net income attributed to shareholders of the parent
company

13,102

19,769Non-operating income

Other
Total non-operating income
Non-operating expenses

Other

Extraordinary losses

12Consolidated Results for the Second Quarter
Ended September 30, 2017

Consolidated Statement of Comprehensive Income(Units: millions of yen)Previous Second Quarter
April 1, 2016, to September 30,
2016

Present Second Quarter
April 1, 2017, to September 30,
2017

AmountAmount

Net income

12,82020,809Unrealized gains on securities

2

1,259

Profit (loss) on deferred hedge

2,049

(117)

―

7

(21,236)(2,508)Adjustment to retirement benefits

1,144

821

Amount applied for equity method
accounting of affiliates

(23)

1

Total other comprehensive income(18,064)(538)(5,244)

20,271(4,773)18,350

(471)

1,920

Other comprehensive income

Revaluation reserve for land
Foreign currency translation adjustments

Comprehensive income(Breakdown)Comprehensive income relating toparent company shareholdings
Comprehensive income relating to noncontrolling 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)
Consolidation of shares and other matters
At a Board of Directors meeting held on May 29, 2017, the board members of the Company agreed to propose a resolution
at the 121st Ordinary General Shareholders Meeting that was held on June 29, 2017 to carry out a reverse stock split of
the Company’s shares. At this Ordinary General Shareholders Meeting, the resolution passed and now the Company
executed a 5-to-1 reverse stock split of its common shares with an effective date of October 1, 2017.

13

Consolidated Results for the Second Quarter
Ended September 30, 2017

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

April 1, 2016, toSeptember 30, 2016

April 1, 2017, toSeptember 30, 2017

AmountAmountY/Y Change
Amount%Machinery Components

50,651

56,128

5,477

10.8

Precision Machinery

72,75486,472

13,71818.9

Construction Machinery

80,159122,424

42,265

52.7

Industrial Machinery

47,30440,155(7,149)(15.1)

Ships

7,896

7,928

32

0.4

Environmental Facilities & Plants

74,02968,847(5,182)

(7.0)

Other

3,786

3,828

42

1.1

Total

336,579

385,781

49,202

14.6

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

April 1, 2016, toSeptember 30, 2016
Operating
IncomeSales

April 1, 2017, toSeptember 30, 2017

Y/Y Change

Operating
IncomeSales

Operating
IncomeSales

Machinery Components

48,9004,084

51,246

5,272

2,346

1,188

Precision Machinery

69,6387,167

76,815

7,768

7,177

601

Construction Machinery

88,796(665)

125,620

8,280

36,823

8,945

Industrial Machinery

47,514

4,534

38,4982,986(9,016)(1,548)

Ships

14,760575

18,250

2,024

3,490

1,450

Environmental Facilities & Plants

44,386

2,061

41,034

1,590(3,352)

(471)

Other

3,833

881

3,856

1,059

22

178

―

(16)

―

3

―

19

317,828

18,620355,319

28,98237,491

10,362Adjustments
Total

14

Consolidated Results for the Second Quarter
Ended September 30, 2017

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

End of Previous Fiscal
Year
As of March 31, 2017

End of Second Quarter
As of September 30,
2017

AmountAmountChangeAmount%Machinery Components

26,304

31,186

4,882

18.6

Precision Machinery

55,40365,060

9,657

17.4

Construction Machinery

53,26350,067(3,196)(6.0)

Industrial Machinery

95,06096,717

1,657

1.7

Ships

53,78043,458(10,322)(19.2)

Environmental Facilities & Plants

140,220

168,033

27,813

19.8

Other

1,589

1,561

(28)

(1.7)

Total

425,619456,081

30,462

7.2

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 Second Quarter
Ended September 30, 2017(2) (Summary) Consolidated Cash Flows Statement(Units: millions of yen)Previous Second
Quarter
April 1, 2016 to
September 30, 2016

Present Second
Quarter
April 1, 2017, toSeptember 30, 2017

Y/Y Change

Income before income taxes

18,222

28,811

10,588Depreciation

9,976

10,696

720(Increase) decrease in notes and accounts
receivable

20,29325,7405,447(Increase) decrease in inventories(9,924)(11,549)(1,626)

Increase (decrease) in notes and accounts
payable(6,624)

1,176

7,800

Payments for income taxes(9,664)(9,428)

236

Other

(4,508)

(398)

4,110

17,77145,04727,276(10,414)(12,859)(2,445)303(12,309)(12,612)(10,112)(25,168)(15,057)

Net increase (decrease) in short-term loans(6,979)(11,364)(4,385)

Cash dividends paid

(5,509)(5,509)

(0)

Other

(1,178)(1,800)(622)

Net cash used in financing activities(13,666)(18,672)(5,006)Other(3,985)(1,124)

2,861

Cash and cash equivalents at beginning of period

68,62561,017(7,608)Cash and cash equivalents at end of period

58,634

61,101

2,466

Net cash provided by operating activities
Payments for purchases of property, plant,
and equipment
Other
Net cash used in investing activities16