Sumitomo Heavy Industries, Ltd.
1Q CONSOLIDATED FINANCIAL REPORTFor the Three-Month Period from April 1 to June 30, 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 First Quarter
Ended June 30, 2011

Summary of Consolidated Financial Results
For the First Quarter Ended June 30, 2011
Presented July 29, 2011

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 5, 2011

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 1Q Consolidated Results (April 1, 2011, to June 30, 2011)(1) Business Results(Units: millions of yen)First Quarter
April 1 to June 30, 2011

Previous First Quarter
April 1 to June 30, 2010

% change% change

Net sales

137,892

26.3

109,145(13.9)

Operating income

10,092

119.6

4,596

53.6

Ordinary income

9,631

147.7

3,888

40.2

Net income

3,464

117.6

1,592

93.4

Net income per share (yen)

5.64

2.64

Fully diluted net income per share (yen)----Note: Comprehensive Income
Fiscal quarter ended June 30, 2011:6,645 million yen (871.6%)
Fiscal quarter ended June 30, 2010: 684 million yen (--%)

2

Consolidated Results for the First Quarter
Ended June 30, 2011

(2) Financial Position(Units: millions of yen)
End of First Quarter
As of June 30, 2011

End of Previous Full YearAs of March 31, 2011

Total assets

626,183

626,829

Shareholders’ equity

272,344

269,380

43.0

42.6

Equity ratio (%)
Reference: Equity
Fiscal quarter ended June 30, 2011: 269,547 million yen
Fiscal year ended March 31, 2011: 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--First quarter

--

0.00

Second quarter

4.00

Third quarter----End of term

8.00

6.00

Annual dividends

8.00

10.00

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)
Second Quarter (Cumulative)
April 1, 2011, to Sept. 30, 2011

Full Year
April 1, 2011, to March 31, 2012

Net sales

294,000% change
16.7

630,000% change
15.0

Operating income

18,50013.5

54,00017.9

Ordinary income

16,50011.4

50,50014.1

Net income

9,000

13.6

30,000

7.4

Projected net income per share (yen)

14.65

Note:

Changes from the most recent consolidated forecast: None

3

48.83

Consolidated Results for the First Quarter
Ended June 30, 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 June 30, 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 June 30, 2011
As of March 31, 2011

132,836 shares
122,181 shares(iii) Average number of shares during fiscal period (cumulative quarterly period)
As of June 30, 2011
As of June 30, 2010

614,397,333 shares603,260,882 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, 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) ............................................................................8(1) Changes Involving Important Subsidiaries during the Current Consolidated Year-to-Date Quarterly
Period .............................................................................................................................................8(2) Special Accounting Procedures Adopted during the Development of the Quarterly Consolidated
Financial Report..............................................................................................................................8(3) Changes to Accounting Policies, Changes to Accounting Estimates and Restatements ................8
3. Quarterly Consolidated Financial Statements .................................................................................9(1) Quarterly Consolidated Balance Sheets .........................................................................................9(2) Consolidated Income Statements and Consolidated Statement of Comprehensive Income.........11
Consolidated Income Statements .................................................................................................11
Consolidated Statement of Comprehensive Income .....................................................................12(3) Notes on Premise of a Going Concern .........................................................................................12(4) Notes regarding Significant Fluctuations to Shareholders’ Equity.................................................12(5) Subsequent Events of Significant Importance ..............................................................................12
4. Supplementary Information .............................................................................................................13(1) Orders, Sales and Operational Profit, and Balance of Orders by Segment ..................................13(2) (Summary) Consolidated Cash Flows Statement .........................................................................15

5

Consolidated Results for the First Quarter
Ended June 30, 2011

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 under review slowed significantly as production
activity as well as exports declined mainly due to the disruptions to the supply chain and the unstable supply of electricity
as a result of the Tohoku Region Earthquake that struck in March of this year. At the same time, the overall global
economy was unstable as the implementation of inflationary controls in China, which was the driving force behind global
economic growth, increased uncertainty. Moreover, the European debt crisis as well as the slow recovery of the US
economy left lingering doubts about the 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, orders increased across all segments of the Group withthe exception of Precision Machinery and Ships to end at JPY150.9 billion, a 28% increase from the same quarter of theprevious year (hereinafter referred to as the “previous term”). In terms of sales, all segments of the Group posted
improved results with the exception of Industrial Machinery and Environmental Facilities and Plant. Consequently, theGroup posted total sales of JPY137.9 billion, a 26% increase from the previous term.
Turning to income, the compounding effects of an increase in sales and efforts to cut costs resulted in the Group posting
an operating income figure of JPY10.1 billion, a 120% improvement from the previous term, ordinary income of JPY9.6
billion, a 148% improvement from the previous term, and quarterly net income of JPY3.5 billion, a 118% improvementfrom the previous term.
Conditions in each business segment of the Group are provided below:
1. Machinery Components
Expansion of the market in emerging markets as well as the contribution of its European operations resulted in
improvements across almost all models in the segment as compared to the previous term. Consequently, the segment
as a whole posted better than previous term figures for both orders and sales. In actual figures, the segment received
orders worth JPY24.2 billion (an increase of 34% from the previous term), and posted sales of JPY22.2 billion (anincrease of 37% from the previous term). Further, the segment posted an operating income of JPY1.2 billion.
2. Precision Machinery
With respect to plastics machinery, although demand from markets in East Asia, and in particular China, slowed, therecovery of the European markets resulted in an increase in both orders and sales for this product line. In other productareas, demand for medical devices fell. For this and other reasons, order figures for the segment as a whole declined ascompared to the previous term. On the other hand, sales figures showed improvements from the previous term mainly
due to the abundance of orders that were carried forward. In actual figures, the segment received orders worth JPY36.7
billion (a decrease of 1% from the previous term), and posted sales of JPY31.8 billion (an increase of 25% from theprevious term). Further, the segment posted an operating income of JPY2.3 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 Tohoku Region 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
orders worth JPY40.3 billion (an increase of 27% from the previous term) and posted sales of JPY34.7 billion (anincrease of 20% from the previous term). Further, the segment posted an operating income of JPY1.6 billion.

6

Consolidated Results for the First Quarter
Ended June 30, 2011

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 increased. At the same time, by prioritizing its response to earthquake recovery efforts,
demand for the segments’ materials handling products improved from the previous term. On the other hand, the segment
posted weaker sales figures as compared to the previous term. In actual figures, the segment received orders worth
JPY26.1 billion (an increase of 68% from the previous term) and posted sales of JPY13.9 billion (a decrease of 7% fromthe previous term). Further, the segment posted an operating income of JPY1.8 billion.
5. Ships
The ship market has continued to remain stagnant and this is reflected in the lack of new orders received during thecurrent quarter under review. This result was the same as the previous term where no new orders were received either.
With regard to sales, three vessels were handed over during the current quarter under review, an increase of two vessels
as compared to the previous term. Consequently, the segment received orders worth JPY1 billion (a decrease of 12%
from the previous term), and posted sales of JPY23.3 billion (an increase of 166% from the previous term). Further, thesegment posted an operating income of JPY4.8 billion.
6. Environmental Facilities & Plants
Orders increased as both the energy plant business and water treatment plant business showed positive signs of growth.
Sales on the other hand decreased mainly due to the weak order figures posted in the previous term. Consequently, thesegment received orders worth JPY20.6 billion (an increase of 61% from the previous term) and posted sales of JPY9.9
billion (a decrease of 26% from the previous term). Unfortunately, the decline in sales led to the segment posting an
operating loss of JPY2.1 billion.
7. Others
Both orders and sales showed improvements from the previous term. In actual figures, the segment received orders
worth JPY2.1 billion (an increase of 11% from the previous term) and posted sales of JPY2.1 billion (an increase of 18%
from the previous term). Further, the segment posted an operating income of JPY400 million.

(2) Qualitative Information on the Group’s Consolidated Financial Position
Total assets at the end of the current quarter under review (ended June 30, 2011) amounted to JPY626.2 billion, adecrease of JPY600 million as compared to the end of the previous consolidated fiscal year. This was mainly due to the
JPY11.9 billion decrease in notes and accounts receivable and the JPY2.7 billion decrease in investments and otherassets exceeding the JPY5.0 billion increase in cash and deposits and the JPY8.0 billion increase in inventory assets.
Total liabilities also fell to a figure of JPY353.8 billion, a decrease of JPY3.6 billion as compared to the end of theprevious consolidated fiscal year. On one hand, trade notes and accounts payable as well as the balance ofinterest-bearing liabilities increased by JPY4.6 billion and JPY1.1 billion, respectively, while on the other, the payment ofcorporate income and other taxes resulted in a reduction in the amount of corporate income taxes payable.
Net assets amounted to JPY272.3 billion, an increase of JPY3.0 billion as compared to the end of the previous
consolidated fiscal year as the JPY1.2 billion gain on other marketable securities and the JPY1.3 billion increase in theforeign currency translation adjustment had a positive effect.
Cash Flow Condition
Although payments of corporate income and other taxes rose and the level of inventory assets fell, the level of quarterly
net income before taxes and other adjustments as well as the level of accounts payable rose. As a result, cash flow fromoperating activities totaled JPY11.5 billion, an increase of JPY8.1 billion from the previous term.
Cash flow used for investing activities totaled JPY3.6 billion, a decrease of JPY2.1 billion from the previous term. Morespecifically, while there was an increase in cash used to acquire fixed assets and a decline in cash generated from thesale of marketable securities, there was also a reduction in the cash used to acquire shares of subsidiaries that resulted
in a change to their consolidated status.
Cash used for financing activities totaled JPY4.3 billion, a decrease of JPY8.9 billion from the previous term as there wasan increase in the balance of interest-bearing liabilities.

7

Consolidated Results for the First Quarter
Ended June 30, 2011

As a result of the foregoing, the balance of cash and cash equivalents at the end of the first quarter of the current
consolidated fiscal year totaled JPY56.5 billion, an increase of JPY4.8 billion as compared to the end of the previous
consolidated fiscal year.

(3) Qualitative Information regarding Consolidated Earnings Forecast
No changes have been made to consolidated earnings forecast for the fiscal year ending March 2012 that was publishedalong with the Summary of Consolidated Financial Results on May 9, 2011.
Further, please note that from the second quarter of the current consolidated fiscal year, the following currency exchange
rate is being forecast: USD1 = JPY80; EUR1 = JPY115.

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

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

(3) Changes to Accounting Policies, Changes to Accounting Estimates and Restatements
There are no applicable items.

8Consolidated Results for the First Quarter
Ended June 30, 2011

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

End of First Quarter
As of June 30, 2011

AmountAmountAssetsCash and deposits

52,48657,526

Notes and accounts receivable

155,267

143,329

Inventory assets

131,035

139,028

Other

27,54628,315(991)(1,098)365,342

367,099Land

117,157

117,761

Other (net)96,99996,910Total tangible assets

214,156

214,671

6,936

6,763

6,936

6,763

Other

41,86739,157

Allowance for doubtful accounts(1,472)(1,509)40,39537,649Fixed assets

261,487

259,083

Total assets

626,829

626,183

Allowance for doubtful accounts
Current assets

Other
Total intangible assets

Investments and other assets

9Consolidated Results for the First Quarter
Ended June 30, 2011

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

End of First Quarter
As of June 30, 2011

AmountAmountLiabilities
Notes and accounts payable

131,951

136,591

Short-term bank loans

21,504

24,587Long-term loans due within one year

4,411

2,421

Allowance

7,000

7,032

Other

77,641

68,682

242,507239,314

Bonds

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

31,91831,964

Employees’ severance and retirement benefits

31,38031,605

208

212

Deferred income taxes on revaluation

31,83631,756

Other

9,600

8,988

Long-term liabilities

114,943

114,525

Total liabilities

357,450

353,839

Common stock

30,87230,872

Capital surplus

23,78923,789Retained earnings

188,047

187,587

(67)

(73)

242,641

242,175

Unrealized gains on securities

981

2,231

Profit (loss) on deferred hedge

960

1,216

Adjustment regarding pension obligations ofconsolidated overseas subsidiaries(1,978)(2,006)

Revaluation reserve for land

39,851

39,735

Foreign currency translation adjustments(15,129)(13,803)

Total accumulated other comprehensive income

24,68627,372

Minority interests

2,053

2,797

Total net assets

269,380

272,344

Liabilities and net assets

626,829

626,183

Current liabilities

Allowance

Net assets

Treasury stock
Stockholders’ equity

10Consolidated Results for the First Quarter
Ended June 30, 2011

(2) Consolidated Income Statements and Consolidated Statement of Comprehensive Income
Consolidated Income Statements(Units: millions of yen)Previous First Quarter
April 1, 2010, to June 30,
2010

Present First Quarter
April 1, 2011, to June 30,
2011

AmountAmountNet sales

109,145

137,892

Cost of sales

86,343

106,603

Gross income

22,802

31,288Selling, general & administrative expenses

18,206

21,197

Operating income

4,596

10,092

Interest income

2237

Dividend income

696

302

Other

501

551

1,219

889

408

369

1,519

982

Total non-operating expenses

1,927

1,350

Ordinary income

3,888

9,631

Loss on devaluation of marketable securities

－

1,921

Loss on contracts－

260

Loss on impaired assets－

229

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

480－

Total extraordinary losses

480

2,410

Income before income taxes

3,408

7,220

Corporate income taxes

1,632

3,481

Quarterly net income before income or loss
adjustments on minority interests

1,776

3,740

184

276

1,592

3,464

Non-operating income

Total non-operating income
Non-operating expenses
Interest expense
Other

Extraordinary losses

Minority interests
Net income

11Consolidated Results for the First Quarter
Ended June 30, 2011

Consolidated Statement of Comprehensive Income(Units: millions of yen)Previous First Quarter
April 1, 2010, to June 30, 2010

Present First Quarter
April 1, 2011, to June 30, 2011

AmountAmount

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

1,776

3,740

Unrealized gains on securities(1,872)

1,250

Profit (loss) on deferred hedge

381

256

Adjustment regarding pension
obligations of consolidated overseas
subsidiaries

(15)

(29)

Foreign currency translation adjustments

460

1,428

Amount applied for equity method
accounting of affiliates

(45)

0

Total other comprehensive income(1,092)

2,905

684

6,645

Comprehensive income relating to parent
company shareholdings

494

6,267

Comprehensive income relating tominority interests

190

378

Other comprehensive income

Comprehensive income(Breakdown)(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.

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

April 1, 2011 toJune 30, 2011

AmountAmountY/Y Change
Amount%Machinery Components

18,03324,171

6,138

34

Precision Machinery

37,147

36,692

(455)

(1.2)

Construction Machinery

31,63440,283

8,650

27.3

Industrial Machinery

15,54726,082

10,536

67.8

Ships

1,122

985

(137)

(12.2)

Environmental Facilities & Plants

12,796

20,606

7,810

61

Others

1,910

2,116

205

10.7

Total

118,189

150,936

32,747

27.7

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

April 1, 2010 toJune 30, 2010

April 1, 2011 toJune 30, 2011

Operational
ProfitSales

Y/Y Change

Operational
ProfitSales

Operational
ProfitSales

Machinery Components

16,183407

22,240

1,163

6,057

756

Precision Machinery

25,371(471)

31,824

2,346

6,453

2,818

Construction Machinery

28,841

1,121

34,687

1,638

5,846

517

Industrial Machinery

14,9682,626

13,9401,845(1,029)

(781)

Ships

8,764

951

23,282

4,816

14,5183,866

Environmental Facilities & Plants

13,274

(214)

9,863

(2,124)(3,411)(1,909)Others

1,742

164

2,055

416

313

251

―

13

―

(9)

―

(22)

109,145

4,596

137,892

10,092

28,747

5,495

Adjustments
Total

13

Consolidated Results for the First Quarter
Ended June 30, 2011

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

End of Previous Fiscal
Year
As of March 31, 2011

End of First Quarter
As of June 30, 2011

AmountAmountChangeAmount%Machinery Components

26,38528,316

1,931

7.3

Precision Machinery

66,13471,002

4,868

7.4

Construction Machinery

23,87529,471

5,596

23.4

Industrial Machinery

85,076

97,21912,142

14.3

Ships

96,77074,473(22,297)(23.0)

Environmental Facilities & Plants

69,81180,554

10,743

15.4

Others

1,942

2,002

61

3.1

Total

369,994

383,037

13,044

3.5

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,
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, agitation tanks, air conditioning equipment, foodprocessing machinery

14

Consolidated Results for the First Quarter
Ended June 30, 2011(2) (Summary) Consolidated Cash Flows Statement(Units: millions of yen)Previous First Quarter
April 1, 2010, to June30, 2010

Present First Quarter
April 1, 2011, to June30, 2011

Y/Y Change

Income before income taxes

3,408

7,220

3,812

Depreciation

4,357

4,246

(111)

(Increase) decrease in notes andaccounts receivable

17,17417,301

127(Increase) decrease in inventories(9,995)(5,715)

4,280

Increase (decrease) in notes andaccounts payable

(571)

2,022

2,593

Payments for income taxes(5,801)(11,117)(5,316)Other(5,091)(2,408)2,682

Net cash provided by operating activities

3,482

11,549

8,067

Payments for purchases of property,
plant, and equipment(3,467)(4,132)(665)

Expenses related to the acquisition ofsubsidiaries that resulted in a change
to their consolidated status(2,608)―2,608

Proceeds from sale of securities

358

38

(320)

Other

(27)

485

512

(5,745)(3,609)2,136

Net increase (decrease) in short-term
loans(10,529)352

10,881

Cash dividends paid

(2,130)(4,336)(2,207)

(521)

(344)

177

(13,179)(4,328)

8,852

341

1,154

813

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

Cash and cash equivalents at end of period

46,351

56,467

10,115

Net cash used in investing activities

Other
Net cash used in financing activities
Other

15