Sumitomo Heavy Industries, Ltd.
1Q CONSOLIDATED FINANCIAL REPORTFor the Three-Month Period from April 1 to June 30, 2010

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

Consolidated Results for the First Quarter
Ended June 30, 2010

Summary of Consolidated Financial Results
For the First Quarter Ended June 30, 2010
Presented July 30, 2010

Sumitomo Heavy Industries, Ltd.
Listed exchanges

Tokyo Stock Exchange, Osaka Securities Exchange

Stock code

6302

Head officeTokyo

President

Yoshinobu Nakamura

URL

www.shi.co.jp

Inquiries

Hideo Oshima
General Manager, Corporate Communications Dept.

Telephone+81 3 6737 2333

Scheduled reporting date for quarterly reportAugust 6, 2010

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 2010 1Q Consolidated Results (April 1, 2010, to June 30, 2010)(1) Business Results(Units: millions of yen)First Quarter
April 1 to June 30, 2010

Previous First Quarter
April 1 to June 30, 2009

% change% change

109,145(13.9)

126,826(17.3)

Operating income

4,596

53.6

2,993

(80.7)

Ordinary income

3,888

40.2

2,774

(82.8)Net income

1,592

93.4

823

(91.3)Net sales

Net income per share (yen)

2.64

1.36

Fully diluted net income per share (yen)

--

--

2

Consolidated Results for the First Quarter
Ended June 30, 2010

(2) Financial Position(Units: millions of yen)
End of First Quarter
As of June 30, 2010

End of Previous Full YearAs of March 31, 2010

Total assets

589,520

610,087

Shareholders’ equity

252,303

254,153

41.1

40.0

401.52404.73Equity ratio (%)
Net assets per share (yen)Note:

Equity:Fiscal quarter ended June 30, 2010: 242,191 million yen
Fiscal year ended March 31, 2010 244,221 million yen

2. Dividends(Units: yen)
Year Ended March 31,
2010

Year Ended March 31,
2011

Year Ended March 31,
2011 (forecast)

Annual dividends per share--First quarter--

Second quarter

0.00

0.00

Third quarter----End of term

4.00

5.00

Annual dividends

4.00

5.00

Note:

Changes to dividend forecast for current quarter: None

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

Full Year
April 1, 2010, to March 31, 2011

Net sales

245,000% change(2.6)

540,000% change
4.6

Operating income

11,00033.8

36,00027.4

Ordinary income

8,500

17.2

32,00021.5

Net income

3,000

127.4

16,50024.2

Projected net income per share (yen)

4.97

Note:

Changes to consolidated forecasts for current quarter: None

3

27.35

Consolidated Results for the First Quarter
Ended June 30, 2010

4. Additional Notes(For further details, please see 2. Other Notes in the Supplementary Materials on page 8.)(1) Transfers of important subsidiaries during the fiscal period:

None

Newly consolidated:

None

Excluded from consolidation:

None

Note: Refers to movements of specified subsidiaries that have resulted from any changes to the range ofconsolidated entities during the current quarterly accounting period.
(2) Application of concise method on accounting procedure and special accounting procedures:

Yes

Note: Refers to whether any special accounting treatment or any simplified accounting treatment was usedduring the development of the quarterly consolidated financial statements.
(3) Changes in principles, procedures, and presentation of accounting treatment(i) Changes resulting from revisions to accounting standards, etc.:

Yes(ii) Changes other than (i):None

Note: Refers to changes to general rules and procedures, as well as to denotation methods for accounting
treatment in relation to the development of current quarter consolidated financial statements as referenced in
the section entitled, “Changes to Important Items that Form the Basis of the Development of the Quarterly
Consolidated Financial Statements”.
(4) Number of shares issued (common shares)(i) Number of shares issued at end of fiscal period (including treasury stock):
As of June 30, 2010
As of March 31, 2010

605,726,394 shares
605,726,394 shares(ii) Amount of treasury stock at end of fiscal period
As of June 30, 2010
As of March 31, 2010

2,540,165 shares
2,315,778 shares(iii) Average number of shares during fiscal period (cumulative quarterly period)
As of June 30, 2010
As of June 30, 2009

603,260,882 shares
603,461,351 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, please see (3) Qualitative Information
regarding Consolidated Earnings Forecast in the Supplementary Materials on page 8.

4Consolidated Results for the First Quarter
Ended June 30, 2010

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. Other Notes.........................................................................................................................................8(1) Changes Involving Important Subsidiaries......................................................................................8(2) Application of Simplified Accounting Methods and Special Accounting Procedure .........................8(3) Summary of Changes to Accounting Treatment Principles, Procedures, Presentation Methods,
and Other Items ..............................................................................................................................8(4) Summary of Key Events Related to the Premises of a Going Concern ..........................................9
3. Quarterly Consolidated Financial Statements ...............................................................................10(1) Quarterly Consolidated Balance Sheets .......................................................................................10(2) Quarterly Consolidated Income Statements..................................................................................12(3) Consolidated Cash Flows Statement ............................................................................................13(4) Notes on Premise of a Going Concern .........................................................................................14(5) Segment Information ....................................................................................................................14(6) Notes regarding Significant Fluctuations to Shareholders’ Equity.................................................16
4. Supplementary Information .............................................................................................................17(1) Orders, Sales, and Balance of Orders by Segment ......................................................................175

Consolidated Results for the First Quarter
Ended June 30, 2010

1. Qualitative Information regarding Current Quarterly Consolidated Business
Performance(1) Qualitative Information on Consolidated Business Performance
The Japanese economy during the first quarter of the current fiscal year saw a gentle recovery as exports to emerging
markets improved, especially to China, and the impact of measures to boost the economy took hold. At the same time,
emerging economies such as China continued their strong performance, further enhancing their presence on the global
stage. On the other hand, the developed economies of Europe and North America remained unstable due to the financial
uncertainty in Europe and the late recovery of markets in the United States.
Set against this economic backdrop, the Group adapted to changes in the operating environment by carrying out efforts
such as the acceleration of global growth with a focus on the ever-expanding emerging markets. As a result, orders
increased across all segments of the Group to end at JPY118.2 billion, a 39% increase as compared to the same quarter
from the previous year (hereinafter referred to as the “previous term”). In terms of sales, there was an increase in thePrecision Machinery and Construction Machinery segments, but other segments posted weaker results. Consequently,
the Group posted total sales of JPY109.1 billion, a 14% decrease as compared to the previous term.
Turning to income, despite a decline in sales, cost-cutting efforts took hold, and as a result, the Group posted an
operating income of JPY4.6 billion, an increase of 54% from the previous term, ordinary income of JPY3.9 billion, an
increase of 40% from the previous term, and a quarterly net income of JPY1.6 billion, an increase of 93% from theprevious term.
Conditions in each business segment are provided below:
Please note that from the current first quarter, the Group has adopted the “Accounting Standard for Disclosures about
Segments of an Enterprise and Related Information”. As a result, segment definitions have been amended from the past.
For further details, please refer to section (5) Segment Information on page 14. In addition, values for the previous term
have been reclassified and displayed according to the new segment categories.
1. Machinery Components
Orders across the entire segment improved as compared to the previous term as emerging markets, with a particularfocus on China, recovered, and demand for gear speed reducers designed for precision controls. as well as otherdevices. trended well in the domestic market. Consequently, the segment received orders worth JPY18 billion (anincrease of 19% from the previous term), and posted sales of JPY16.2 billion (a decrease of 4% from the previous term).
Operating income for the segment totaled JPY400 million.
2. Precision Machinery
Both orders and sales of plastic injection molding machines increased as markets in East Asia, in particular China,
recovered. In other product areas, demand for medical devices forged ahead while devices designed for thesemiconductor and electronics sectors exhibited a recovering trend. As a result, the segment as a whole was able toexceed the figures posted in the previous term for both orders and sales. In actual figures, the segment received orders
worth JPY37.1 billion (an increase of 100% from the previous term), and posted sales of JPY25.4 billion (an increase of
25% from the previous term). On a negative note, the segment also posted an operating loss of JPY500 million.
3. Construction Machinery
The hydraulic excavator business saw an increase in both orders and sales primarily as a result of the rapid expansion ofChinese markets. Profitability conditions also improved in this area. On the other hand, the late recovery of the US
market continued to weigh heavily on the construction crane business as both orders and sales waned. Consequently,
the segment received orders worth JPY31.6 billion (an increase of 21% from the previous term), and posted sales of
JPY28.8 billion (an increase of 10% from the previous term). Operating income for the segment totaled JPY1.1 billion.

6

Consolidated Results for the First Quarter
Ended June 30, 2010

4. Industrial Machinery
Orders for turbines and pumps trended positively as the level of capital improvements made by overseas customers in
the resources and energy sectors recovered. At the same time, demand for materials handling products from electricity
companies increased and this development had a positive impact on orders. Despite this, sales figures declined mainly
because of the weak order figures from the previous term. Consequently, the segment received orders worth JPY15.5
billion (an increase of 22% from the previous term), and posted sales of JPY15 billion (a decrease of 31% from theprevious term). Operating income for the segment totaled JPY2.6 billion.
5. Ships
Recovery in the ship market has been slow, and as a result, no new orders were received during the first quarter of theconsolidated fiscal year. In regard to sales, one vessel was handed over during the first quarter, a decline of two vessels
as compared to the previous term. Consequently, the segment received orders worth JPY1.1 billion (an increase of 65%
from the previous term), and posted sales of JPY8.8 billion (a decrease of 59% from the previous term). Operating
income for the segment totaled JPY1.0 billion.
6. Environmental Facilities & Plants
Although the domestic market for industrial power generation boilers in the energy plant business did not show signs ofimprovement, orders increased as demand for coke oven machinery was robust. On the other hand, sales figuresdeclined mainly due to the weak order figures from the previous term. Consequently, the segment received orders worth
JPY12.8 billion (an increase of JPY31% from the previous term), and posted sales of JPY13.3 billion (a decrease of
JPY28% from the previous term). The segment also posted an operating loss of JPY200 million.
7. Others
Orders and sales both declined as compared to the previous term. In actual figures, the segment received orders worth
JPY1.9 billion (a decrease of 8% from the previous term), and posted sales of JPY1.7 billion (a decrease of 16% from theprevious term). The segment also posted an operating loss of JPY200 million.

(2) Qualitative Information on the Group’s Consolidated Financial Position
Total assets at the end of the current quarter (ended June 30, 2010) amounted to JPY589.5 billion, a decrease of
JPY20.6 billion as compared to the end of the previous consolidated fiscal year. This was mainly due to the JPY14.9
billion decrease in cash and deposits, the JPY700 million decrease in tangible fixed assets, the JPY14 billion decrease intrade notes and accounts receivable, and the JPY5.4 billion decrease in investments and other assets.
Total liabilities also fell and amounted to JPY337.2 billion, a decrease of JPY18.7 billion as compared to the end of theprevious consolidated fiscal year. This was mainly due to the JPY10.3 billion decrease in interest-bearing liabilities
surpassing the JPY900 million increase in trade notes and accounts payable.
Net assets amounted to JPY252.3 billion, a decrease of JPY1.8 billion as compared to the end of the previous
consolidated fiscal year as retained earnings fell by JPY800 million and the loss on other marketable securities totaled
JPY1.9 billion.
Cash Flow Condition
Although the level of quarterly net income before taxes and other adjustments as well as accounts payable rose, thelevel of accounts receivable along with the level of inventory fell. In addition, payments of corporate and other taxes rose.
As a result, cash flow from operating activities totaled JPY3.5 billion, a decrease of JPY13 billion from the previous term.
Cash flow used for investing activities totaled JPY5.7 billion, an increase of JPY100 million from the previous term.
Specifically, there was a decrease in cash used to acquire fixed assets, while there was an increase in the cash used toacquire shares of subsidiaries that resulted in a change to their consolidated status.
Cash flow used for financing activities totaled JPY13.2 billion, an increase of JPY11.3 billion from the previous term, as
dividend payments were made and borrowings decreased.
As a result of the foregoing, the balance of cash and cash equivalents at the end of first quarter of the consolidated fiscal
year totaled JPY46.4 billion, a decrease of JPY15.1 billion as compared to the end of the previous consolidated fiscal
year.

7

Consolidated Results for the First Quarter
Ended June 30, 2010(3) Qualitative Information regarding Consolidated Earnings Forecast
No changes have been made to consolidated earnings forecast for the fiscal year ending March 2011 that was publishedwith the Summary of Consolidated Financial Results on May 10, 2010.

2. Other Notes(1) Changes Involving Important Subsidiaries
There are no applicable items.

(2) Application of Simplified Accounting Methods and Special Accounting ProcedureI.

Simplified Accounting Methods• Method of calculating estimated bad debt write-offs in respect to general receivables
The ratio of bad debt write-offs used at the end of the previous fiscal year has been used.
• Valuation method for inventories
With regard to the calculation of inventories at the end of the first quarter, physical inventory has been
omitted, and calculations have been performed in a reasonable manner on the basis of the results ofphysical inventory for the previous consolidated fiscal year.
• Method of calculating unrealized profit/loss in respect of inventories
The profit/loss ratio used at the end of the previous consolidated fiscal year has been used.
• Method of calculating depreciation on fixed assets
For assets that are depreciated using the declining-balance method, calculations have been made byprorating the amount of depreciation for the consolidated fiscal year.
• Method of calculating deferred and accrued accounts
Estimates obtained by using a reasonable calculation method have been recorded.
• Method of calculating corporate income tax, etc., as well as deferred tax assets and deferred tax liability
Tax payments on corporate income tax are calculated in such a way that addition/subtraction items and tax
deduction items to be included are limited to important items only.
In determining the collectability of deferred tax assets, where no substantial changes have been identified in
the management environment or in temporary differences arising after the end of the previous consolidated
fiscal year, forecasts used for the previous consolidated fiscal year and tax planning have been used for
calculation.

II. Special Accounting Methods Used to Prepare the Consolidated Quarterly Financial Statements:
Not applicable(3) Summary of Changes to Accounting Treatment Principles, Procedures, Presentation Methods,
and Other Items
I.

Adoption of the “Accounting Standard for Equity Method Accounting of Investments” and the “Practical
Solution for the Unification of Accounting Policies Applied to Associated Companies Accounted for Using theEquity Method”
As of the first quarter of the current consolidated fiscal year, the Group has adopted the Accounting Standard
for Equity Method Accounting of Investments (Statement No. 16 of the Accounting Standards Board of Japan,
dated March 10, 2008) and the Practical Solution for the Unification of Accounting Policies Applied to
Associated Companies Accounted for Using the Equity Method (Practical Issues Task Force No. 24 of the
Accounting Standards Board of Japan, dated March 10, 2008). There is no impact to operating income,ordinary income, or quarterly net income before taxes and other adjustments as a result of this change.

8Consolidated Results for the First Quarter
Ended June 30, 2010

II. Adoption of the “Accounting Standard for Asset Retirement Obligations”
As of the first quarter of the current consolidated fiscal year, the Group has adopted the Accounting Standard
for Asset Retirement Obligations (Statement No. 18 of the Accounting Standards Board of Japan, dated March
31, 2008) and the Implementation Guidance on the Accounting Standard for Asset Retirement Obligations(Implementation Guidance No. 21 of the Accounting Standards Board of Japan, dated March 31, 2008).
Although the impact on operating income, ordinary income, and segment information is minimal, the Group
posted an extraordinary loss in the amount of JPY480 million for the first quarter as a result of applying the
Accounting Standard for Asset Retirement Obligations.
III. Adoption of the “Accounting Standard for Business Combinations”
As of the first quarter of the current consolidated fiscal year, the Group has adopted the Accounting Standard
for Business Combinations (Statement No. 21 of the Accounting Standards Board of Japan, dated December
26, 2008), the Accounting Standard for Consolidated Financial Statements (Statement No. 22 of the
Accounting Standards Board of Japan, dated December 26, 2008), the Partial Amendments to the AccountingStandard for Research and Development Costs (Statement No. 23 of the Accounting Standards Board ofJapan, dated December 26, 2008), the Revised Accounting Standard for Business Divestitures (Statement No.
7 of the Accounting Standards Board of Japan, with a revision date of December 26, 2008), the Revised
Accounting Standard for Equity Method of Accounting for Investments (Statement No. 16 of the AccountingStandards Board of Japan, with a revision date of December 26, 2008), and the Revised Guidance on
Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures(Guidance No. 10 of the Accounting Standards Board of Japan, with a revision date of December 26, 2008).

(4) Summary of Key Events Related to the Premises of a Going Concern
There are no applicable items.

9Consolidated Results for the First Quarter
Ended June 30, 2010

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Units: millions of yen)
End of First Quarter
As of June 30, 2010

End of Previous Fiscal YearAs of March 31, 2010

AmountAmountAssetsCash and deposits

47,661

62,511

Notes and accounts receivable

117,906

131,893

Inventory assets

137,139

123,416

Other

24,05823,032

Allowance for doubtful accounts(1,132)(1,073)

325,632

339,780Land

116,061

115,971

Other (net)99,683

100,506

Total tangible assets

215,744

216,477

7,064

7,308

7,064

7,308

Other

42,69248,096

Allowance for doubtful accounts(1,613)(1,574)

41,07946,523Fixed assets

263,887

270,308

Total assets

589,520

610,087

Current assets

Other
Total intangible assets

Investments and other assets

10Consolidated Results for the First Quarter
Ended June 30, 2010

(Units: millions of yen)
End of First Quarter
As of June 30, 2010

End of Previous Fiscal YearAs of March 31, 2010

AmountAmountLiabilities
Notes and accounts payable

108,950

108,018

Short-term bank loans

20,20530,524Long-term loans due within one year

12,436

10,438

Income tax payable

1,391

6,759

Allowance

6,982

7,807

Other

70,27071,409220,234

234,954

Bonds

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

34,67936,698

Employees’ severance and retirement benefits

31,51232,426

237

235

Deferred income taxes on revaluation

32,211

32,211

Other

8,343

9,411

Long-term liabilities

116,982

120,981

Total liabilities

337,216355,935

Common stock

30,87230,872

Capital surplus

20,50320,503Retained earnings

161,129

161,951

Treasury stock(1,605)(1,494)

Stockholders’ equity

210,899

211,831

Unrealized gains on securities

149

2,003

Profit (loss) on deferred hedge

1,460

1,125

Adjustment regarding pension obligations ofconsolidated overseas subsidiaries(1,769)(1,753)

Revaluation reserve for land

40,38640,386

Foreign currency translation adjustments(8,934)(9,370)Appraisal and translation differences

31,29232,390Minority interests

10,113

9,931

Total net assets

252,303

254,153

Liabilities and net assets

589,520

610,087

Current liabilities

Allowance

Net assets

11Consolidated Results for the First Quarter
Ended June 30, 2010(2) Quarterly Consolidated Income Statements(Units: millions of yen)Previous First Quarter
April 1, 2009, to June 30,
2009

Present First Quarter
April 1, 2010, to June 30,
2010

AmountAmountNet sales

126,826

109,145

Cost of sales

104,104

86,343Gross income

22,72222,802

Selling, general & administrative expenses

19,72918,206

Operating income

2,993

4,596

Interest income

38

22

Dividend income

489

696

Profit on currency exchange

383

－

Other

485

501

1,394

1,219

Interest expense

460

408

Exchange losses

－

484

1,153

1,035

Total non-operating expenses

1,613

1,927

Ordinary income

2,774

3,888

Revenues from grants and subsidies

432－

Total extraordinary gains

432－

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

480

Total extraordinary losses－

480

Income before income taxes

3,206

3,408

Corporate income tax, current

1,451

599

Corporate income tax, deferred

781

1,033

Total corporate income taxes

2,232

1,632

Quarterly net income before income or loss
adjustments on minority interests

974

1,776

Minority interests

151

184

Net income

823

1,592

Non-operating income

Total non-operating income
Non-operating expenses

Other

Extraordinary gains

Extraordinary losses

12Consolidated Results for the First Quarter
Ended June 30, 2010

(3) Consolidated Cash Flows Statement(Units: millions of yen)Previous First Quarter
April 1, 2009, to June 30, 2009

Present First Quarter
April 1, 2010, to June 30, 2010

3,206

3,408

Depreciation

4,691

4,357

Interest and dividend income

(527)

(718)

Interest expenses

460

408

(Increase) decrease in notes and accounts
receivable

30,486

17,174(Increase) decrease in inventories

3,514(9,995)(22,137)

(571)

Other

519

(5,118)Subtotal

20,213

8,945

Interest and dividends received

1,039

704

Interest expenses

(287)

(367)

(4,508)(5,801)

16,456

3,482(Increase) decrease in time deposits

2,036

(229)

(Increase) decrease in securities

1,500

－

Payments for purchases of property, plant, andequipment(9,587)(3,467)

Proceeds from sale of securities

0358

Payments for acquisition of subsidiaries’ stock
accompanying changes in scope of consolidation－(2,608)

Other

403

202

(5,648)(5,745)

Net increase (decrease) in short-term loans(2,615)(10,520)

Net increase (decrease) in commercial paper(4,000)－

Proceeds from long-term debt

5,000

－

Repayments for long-term debt

(9)

(9)

Cash dividends paid

(4)(2,130)

Payment of dividends for minority stockholders

(50)

(1)

Other

(189)

(520)

(1,866)(13,179)

Cash flows from operating activities
Income before income taxes

Increase (decrease) in notes and accounts
payablePayments for income taxes
Net cash provided by operating activities
Cash flows from investing activities

Net cash used in investing activities
Cash flows from financing activities

Net cash used in financing activities

13

Consolidated Results for the First Quarter
Ended June 30, 2010

Previous First Quarter
April 1, 2009, to June 30, 2009

Present First Quarter
April 1, 2010, to June 30, 2010

Effect of exchange rate changes on cash and cash
equivalents

675

341

Net increase (decrease) in cash and cash equivalents

9,616(15,101)

Cash and cash equivalents at beginning of year

42,41461,452

Increase due to new consolidated companies

1,942

－

17

－

53,99046,351

Increase due to merger and acquisition
Cash and cash equivalents at end of year(4) Notes on Premise of a Going Concern
There are no applicable items.

(5) Segment Information
1. Summary of Reporting Segments
The Group’s reporting segments are based on those units within the Group where separate financial information isavailable and where the Board of Directors of the Group periodically deliberates over matters such as the distribution ofmanagement resources and the financial performance of such segments.
The Group formulates a comprehensive international and domestic strategy for individual products and services for thehead office and for each consolidated subsidiary, and executes such strategies at the operating level. Consequently, theGroup comprises segments that are split by categories of products and services offered by the head office andconsolidated subsidiaries. More specifically, the six reporting segments of the Group are “Machinery Components”,“Precision Machinery”, “Construction Machinery”, “Industrial Machinery”, “Ships”, and “Environmental Facilities & Plants”.

Businesses

Main Products

Machinery Components

Power transmission and control

Precision Machinery

Plastic injection molding machines, film forming machines, semiconductor
production equipment, laser processing systems, cryogenic equipment,
precision XY stages, ion accelerators, 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,
automated parking systems, turbines, pumps

Ships

Ships

Environmental Facilities &PlantsBoilers, industrial waste treatment facilities, water and sewage treatment
systems, paper machines, pressure vessels, bridges

OthersReal estate, software

14

Consolidated Results for the First Quarter
Ended June 30, 2010

2. Information Regarding Net Sales and Profit (Loss) Conditions by Reporting Segment
Current First Quarter (April 1, 2010, to June 30, 2010)(Units: millions of yen)Segment
Item

A

B

C

D

E

F

16,18325,371

28,841

14,968

8,764

409

267

2

23

19

16,592

25,63828,843

14,991

8,784

407

(471)

1,121

2,626

951

Subtotal

Other

Total

H

G

Net sales(1) Sales to externalcustomers(2) Internal sales
betweensegments or
exchanges
Total
Segment profit (loss)

13,274 107,403

250

971

13,525 108,374
(214)

4,419

1,742 109,145

524

1,495

2,267 110,640
164

4,583

― 109,145(1495)―(1495) 109,145
13

4,596

Segments:
A: Machinery Components
B: Precision Machinery
C: Construction Machinery
D: Industrial Machinery
E: Ships
F: Environmental Facilities & Plants
G: Adjustments*
H: Value included on the quarterly consolidated income statement*Mainly due to the deletion of intersegment transactions

3. Information on Impairment Losses Relating to Fixed Assets and Goodwill by Reporting Segment
There are no items of importance to note for the consolidated first quarter figures.

Additional Information
As of the current first quarter consolidated fiscal period, the Group has adopted the Revised Accounting Standard forDisclosures about Segments of an Enterprise and Related Information (Statement No. 17 of the AccountingStandards Board of Japan, dated March 27, 2009) and the Implementation Guidance on the Accounting Standard forDisclosures about Segments of an Enterprise and Related Information (Implementation Guidance No. 20 of the
Accounting Standards Board of Japan, dated March 21, 2008).
Reference Information
The table below provides a summary of the values from the first quarter of the previous consolidated fiscal year for
all business segments as if they were displayed using the reporting segments used during the first quarter of thecurrent consolidated fiscal year.

15

Consolidated Results for the First Quarter
Ended June 30, 2010

Previous First Quarter (April 1, 2009, to June 30, 2009)(Units: millions of yen)Segment
Item

A

B

C

D

E

F

Subtotal

16,88820,343

26,287

21,552

21,212

718

293

3

38

40

17,606

20,637

26,29021,59021,252

18,601 125,975(922)(2,651)

72

3,455

1,386

1,311

Other

Total

H

G

Net sales(1) Sales to externalcustomers(2) Internal sales
betweensegments or
exchanges
Total
Segment profit (loss)

18,471 124,753

130

1,222

2,651

Segments:
A: Machinery Components
B: Precision Machinery
C: Construction Machinery
D: Industrial Machinery
E: Ships
F: Environmental Facilities & Plants
G: Adjustments*
H: Value included on the quarterly consolidated income statement*Mainly due to the deletion of intersegment transactions.

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

16

2,072 126,826

556

1,778

2,628 128,604
256

2,907

― 126,826(1,778)―(1,778) 126,826
86

2,993

Consolidated Results for the First Quarter
Ended June 30, 2010

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

Businesses

Previous First
Quarter
April 1, 2009, toJune 30, 2009First Quarter
April 1, 2010, toJune 30, 2010

Amount%Amount%Machinery Components

15,167

17.8

18,033

15.3

Precision Machinery

18,54721.8

37,147

Construction Machinery

26,17330.7

Industrial Machinery

12,783

Previous Fiscal Year
April 1, 2009, to
March 31, 2010

Y / Y Change%

Amount

%

2,866

18.9

61,421

15.2

31.4

18,600100.3

106,085

26.3

31,634

26.8

5,461

20.9

100,531

24.9

15.0

15,547

13.2

2,763

21.6

59,834

14.8

679

0.8

1,122

0.9

443

65.3

4,290

1.1

Environmental Facilities &Plants

9,776

11.5

12,796

10.8

3,020

30.9

62,550

15.5

Other

2,079

2.4

1,910

1.6

(168)

(8.1)

8,726

2.2

Total

85,203100.0

118,189

100.0

32,98638.7

403,437

100.0

Ships

Amount

Sales(Units: millions of yen)

Businesses

Previous First
Quarter
April 1, 2009, toJune 30, 2009First Quarter
April 1, 2010 toJune 30, 2010

Amount%Amount%Machinery Components

16,88813.3

16,183

14.8

Precision Machinery

20,34316.0

25,371

Construction Machinery

26,287

20.7

Industrial Machinery

21,552

Ships

Previous Fiscal Year
April 1, 2009, to
March 31, 2010

Y / Y Change%

Amount

%

(705)

(4.2)

69,040

13.4

23.3

5,028

24.7

105,191

20.4

28,841

26.4

2,555

9.7

102,650

19.9

17.0

14,968

13.7(6,584)(30.5)

85,637

16.6

21,212

16.7

8,764

8.0

(12,448)(58.7)

62,927

12.2

Environmental Facilities &Plants

18,471

14.6

13,27412.2(5,196)(28.1)

81,884

15.8

Other

2,072

1.7

1,742

1.6

(330)

(15.9)

8,835

1.7

Total

126,826100.0

109,145100.0(17,681)(13.9)

516,165

100.0

17AmountConsolidated Results for the First Quarter
Ended June 30, 2010

Balance of Orders Received(Units: millions of yen)

Businesses

End of Previous
Fiscal YearAs of March 31,
2010
Amount%End of First Quarter
As of June 30, 2010
Amount%End of Previous
First Quarter
As of June 30, 2009

ChangeAmount%Amount%Machinery Components

18,0804.8

19,930

5.2

1,850

10.2

24,481

5.4

Precision Machinery

47,044

12.5

58,82015.2

11,77625.0

45,404

10.0

Construction Machinery

13,067

3.5

15,859

4.1

2,792

21.4

16,147

3.6

Industrial Machinery

78,81320.9

79,391

20.6

578

0.7

97,660

21.6

Ships

142,72037.9

135,077

35.0(7,643)(5.4)

180,824

40.0

Environmental Facilities &Plants75,13020.0

74,652

19.4

(478)

(0.6)

85,935

19.0

Other

1,619

0.4

1,787

0.5

168

10.4

1,735

0.4

Total

376,472

100.0

385,516

100.0

9,044

2.4

452,186100.0

18