April 26, 2013
To Whom It May Concern:
Company
Representative::

CodeContact::Phone:

Sumitomo Heavy Industries, Ltd.
Shunsuke Betsukawa
President and Chief Executive
Officer6302
Tsuneyoshi Sato
General Manager, Corporate
Communications Department+81-3-6737-2333

Notice Regarding the Accounting of an Extraordinary Loss (Impairment Loss) and Revisions to the Earnings
Forecast
This is to notify that Sumitomo Heavy Industries, Ltd. (hereinafter referred to as the “Company”) has made a decision to post
an extraordinary loss (impairment loss) for the fiscal year ended March 2013 (April 1, 2012 to March 31, 2013). At the sametime, the Company has determined that it needs to revise the full-year earnings forecast for the fiscal year ended March 2013
(April 1, 2012 to March 31, 2013) from the figures announced previously on January 31, 2013. Details are as follows:DETAILS
1.

Extraordinary Loss
In the Ships segment, profitability has worsened as continuing sluggish conditions in maritime trade stemming from thestagnant global economy has resulted in the excess supply of new vessels, a decrease in demand for shipbuilding andconsequently a reduction in ship values. In addition, the future outlook for the business has deteriorated and evidence ofasset impairment has been verified mainly because of intense competition from shipbuilders based in emerging countries.
In consideration of the above conditions as well as the salvage potential of assets used in the Ships segment, theCompany has decided to post a JPY16.4 billion impairment loss on fixed assets as an extraordinary loss. Moreover, theCompany has also posted a JPY1.0 billion impairment loss on idle assets.

2.

Revisions to the Consolidated Earnings Forecast for the Period Ended March 2013
Revisions to the Full-Year Consolidated Earnings Forecast for the Period Ended March 2013
(April 1, 2012 to March 31, 2013)
Sales

Previously
Announced Forecast(A)Revised Forecast (B)Difference (B-A)% Difference
Reference – Actualsfrom Previous Period(ended March 2012)

Operating
IncomeOrdinary
Income600,000

32,00029,000585,000(15,000)(2.5)
624,100

31,000(1,000)(3.1)
47,13531,0002,000
6.9
44,619(Units: millions of yen)
Net Income
Net Incomeper Share(yen)13,00021.18

5,500(7,500)(57.7)
19,4928.96
31.753.

Reasons for the Revisions to the Earning Forecast
As compared to the previously announced full-year forecast dated January 31, 2013, a reduction in sales is projected inboth the Precision Machinery and Industrial Machinery segments. In terms of operating and ordinary income figures,conditions have worsened due to a decline in sales. However, this has been buffered by improvements in currency
exchange rates (i.e. a weakened Japanese Yen). Finally, due to need to post an extraordinary loss in the form of animpairment loss from the Ships segment, the full-year forecast for net income has been revised downwards frompreviously announced figures. In summary, the figures for sales, operating income, ordinary income and net income forthe period have been revised from the previously announced forecast.
Please note that there is no change to year-end dividend forecast.

Note: This document contains forward-looking statements regarding the future performance and operations of the Company
and its group affiliates. All such statements are based on rational judgments made by the Company with information that isobtainable at the time this document is published. Actual performance may vary from the published forecasts and outlooks
due to changes in a variety of factors.

END