Sumitomo Heavy Industries, Ltd.
CONSOLIDATED FINANCIAL REPORTFor the Six-Month Period from January 1 to June 30, 2024

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 Six-Month Period from January 1 to June 30, 2024

Summary of Consolidated Financial Results
For the Six-Month Period from January 1 to June 30, 2024 (Interim)
Presented August 7, 2024

Sumitomo Heavy Industries, Ltd.
Listed exchanges

Tokyo Stock Exchange

Stock code

6302

Head officeTokyo

President

Shinji Shimomura

URL

www.shi.co.jp

Inquiries

Yoshitaka Shimamura
General Manager, Corporate Communications Dept.

Telephone+81 3 6737 2332

Scheduled date for submitting semi-annual
reportScheduled date of payment of cash
dividends
Availability of supplementary explanations
for financial statement
Holding of meeting to explain financial
statement

August 8, 2024
September 2, 2024
Yes
Yes

1. FY2024 Second Quarter (Interim) Consolidated Results (January 1, 2024 to June 30,2024)(1) Business Results(Units: millions of yen)
1st half of fiscal year ending
December 31, 2024

1st half of fiscal year ended
December 31, 2023

% change% change

Net sales

520,3532.0

510,059―

Operating profit

33,3308.7

30,655―

Ordinary profit

33,8582.9

32,889―Profit attributable to owners of parent

23,5094.6

22,476―

Profit attributable to owners of parent ratio (yen)Fully diluted profit attributable to owners of parent ratio
Note 1: Comprehensive income:
1st half of fiscal year ending December 31, 2024
1st half of fiscal year ended December 31, 2023

193.26183.49――59,533 million yen, (22.0 %)48,786 million yen, (— %)Note 2: The Company has changed the closing date from March 31 to December 31 starting from the fiscal year ended
December 31, 2022.Due to this, a consolidation period differs between the first half of the fiscal year ended December 31,
2023 and the first half of the fiscal year ended December 31, 2022. Therefore, year-on-year change rates for the first halfof the fiscal year ended December 31, 2023 are not presented in this document.

2Consolidated Results for the Six-Month Period from January 1 to June 30, 2024

(2) Financial Position(Units: millions of yen)First half of fiscal year
ending December 31, 2024

End of Previous Full Year
December 31, 2023

1,256,801

1,200,857

Total net assets

667,407627,464

Equity ratio (%)

52.5

51.6

Total assets

Reference: Equity:
First half of fiscal year ending December 31, 2024
Fiscal year ended December 31, 2023:

660,278 million yen
619,771 million yen

2. Dividends(Unit: yen)
Year Ended December
31, 2023

Year Ending
December 31, 2024

Year Ending
December 31, 2024
(forecast)

Annual dividends per shareFirst quarter
Second quarter

―

―

60.00

60.00

Third quarter――End of term

60.00

65.00

Annual dividends

120.00125.00Note: Changes from the most recent dividend forecast: No

3. FY2024 Consolidated Forecasts (January 1, 2024 to December 31, 2024)(Units: millions of yen)

Full Year
January 1, 2024 to December 31,
2024% change
1,070,000(1.1)

Operating profit

65,000(12.6)

Ordinary profit

61,000(13.2)

Profit attributable to owners of parent

38,000

16.1

Net sales

316.18

Profit attributable to owners of parent ratio (yen)Note 1: Changes from the most recent dividend forecast: Yes

Note 2: At the Board of Directors meeting held on February 14, 2024, the Company passed a resolution regarding theacquisition of treasury shares. “Profit attributable to owners of parent ratio (yen)” in the Consolidated Forecasts section
reflects the impact of the acquisition of treasury shares.

3

Consolidated Results for the Six-Month Period from January 1 to June 30, 2024

Additional Notes(1) Significant changes in the scope of consolidation during the first half under review:
Newly consolidated:

Yes—

Excluded from consolidation: One company: (Company name) Sumitomo Heavy Industries PTC Sales Co., Ltd.
(2) Special accounting measures applied in the interim consolidated financial report:

Applicable(3) Changes to accounting policies, changes to accounting estimates, and retrospective restatements(i) Changes to accounting policies due to revisions to accounting standards: None(ii) Changes to accounting policies not otherwise stated in (i):None(iii) Changes to accounting estimates:None(iv) Retrospective restatements:

None(4) Number of shares issued (share capital)(i) Number of shares issued at end of fiscal period (including treasury shares):First half of fiscal year ending December 31, 2024
As of December 31, 2023

122,905,481 shares
122,905,481 shares(ii) Number of treasury shares at end of fiscal period:First half of fiscal year ending December 31, 2024
As of December 31, 2023

2,723,457 shares
418,174 shares(iii) Average number of shares during fiscal period (interim) :First half of fiscal year ending December 31, 2024
First half of fiscal year ended December 31, 2023

121,644,244 shares
122,493,313 shares*Treasury stock that is deducted to calculate the number of term-end treasury stock and the average number of shares
during the fiscal period includes shares of the Company held in the trust account related to the share delivery trust
established for the stock compensation plan for directors and others.
Summary of Financial Results for the Second Quarter (Interim) is not subject to review by a Certified Public Accountant oran Independent Auditor* 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 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 refer to the Explanation of the Consolidated Earnings Forecast and Other ForwardLooking Estimates in the Supplementary Materials section beginning on page 9.

4Consolidated Results for the Six-Month Period from January 1 to June 30, 2024

Supplementary Materials – Table of Contents
I.

Qualitative Information regarding Current Interim 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
9

II.

Interim Consolidated Financial Statements and Key Explanatory Notes................................. 10
1. Interim Consolidated Balance Sheets ........................................................................................ 10
2. Interim Consolidated Income Statements and Interim Consolidated Statement ofComprehensive Income ............................................................................................................... 13
Interim Consolidated Income Statements ................................................................................. 13
Interim Consolidated Statement of Comprehensive Income .................................................. 14
3. Interim Consolidated Cash Flows Statement ............................................................................ 14
4. Items of Special Note Concerning the Interim Consolidated Financial Statements ............. 16(Significant Events or Conditions that Question the Premise of a Going Concern) ............ 16(Application of Accounting Procedures Specific to Preparation of Interim Consolidated
Financial Statements) .................................................................................................................. 16(Notes regarding Significant Fluctuations to Shareholders’ Equity) ..................................... 16(Segment Information) ................................................................................................................. 16(Subsequent Events of Significant Importance) ....................................................................... 18

III. Supplemental Information.............................................................................................................. 195

Consolidated Results for the Six-Month Period from January 1 to June 30, 2024

I. Qualitative Information regarding Current Interim
Consolidated Business Performance
1. Explanation of Business Performance
Regarding the economic environment surrounding the Group for the first half under review, in Japan, capital investment
was on a gradual recovery trend mainly in the manufacturing industry, while some sectors showed a lack of strength, suchas signs of hesitancy observed in the semiconductor market’s recovery. Turning to overseas regions, the US economy saw
strong capital investment; however, Europe experienced an economic slowdown due to monetary tightening, and mainly
the UK and German economies continued to show signs of weakness. The Chinese economy experienced a continued
slowdown, triggered by a worsening real estate market. The recovery in production and consumption was weak, anddemand remained sluggish, impacting even Southeast Asia. In addition, risks (such as the issue between Russia andUkraine and the situation in the Middle East) persisted in the geopolitical landscape. Due primarily to these reasons, theeconomic outlook remained uncertain.
In this business environment, according to the “Medium-Term Management Plan 2026,” the Group aimed to increase
corporate value in a sustainable manner by solving social issues through products and services. Also, we moved forwardwith measures, such as expanding contribution to SDGs and strengthening initiatives for reducing negative environmental
impacts, as well as improving our earning capacity and capital efficiency and strengthening our efforts to explore new
businesses in order to develop a robust entity.
As a result, the Group’s orders amounted to JPY453.1 billion (down 12% from the same period of the previous fiscal year)
and sales increased by 2% as compared to the same period of the previous fiscal year to finish at JPY520.4 billion. In
terms of profitability, the Group posted operating profit of JPY 33.3 billion (up 9% from the same period of the previous
fiscal year) and ordinary profit of JPY 33.9 billion (up 3% from the same period of the previous fiscal year) and interim profit
attributable to owners of parent came to JPY 23.5 billion (up 5% from the same period of the previous fiscal year).
The situation by segment is described below.
(i) Mechatronics
For small-to-medium-sized gear reducers, the Chinese market continued to be sluggish. Regarding motors and inverters,
demand declined due to the impact from inventory adjustment by customers in Europe. Therefore, orders, sales andoperating profit all decreased.
As a result, orders decreased by 7% as compared to the same period of the previous fiscal year to finish at JPY98.7 billion,
while sales decreased by 6% as compared to the same period of the previous fiscal year to finish at JPY101.0 billion.
Further, the segment posted operating profit of JPY1.8 billion (down 68% from the same period of the previous fiscal year).
(ii) Industrial Machinery
For the plastics machinery business, orders, sales and operating profit all decreased due to a slowdown in demand forelectrical and electronics-related products in China and a continuation of sluggish investment in Europe.
For other businesses, orders decreased due to inventory adjustment and investment postponement by customers as aresult of a slowdown in the semiconductor market. However, both sales and operating profit increased partly because of asignificant backlog of orders.
As a result, orders decreased by 10% as compared to the same period of the previous fiscal year to finish at JPY126.4
billion, sales came to JPY131.1 billion, down 2% from the same period of the previous fiscal year , and operating profit
decreased by 19% as compared to the same period of the previous fiscal year to finish at JPY9.1 billion.
(iii) Logistics & Construction
In the hydraulic excavator business, orders decreased due partly to the absence of the previous fiscal year's surge inorders before the price revisions in Japan, and a reactionary drop from advanced orders in the US in the previous fiscal
year. However, sales increased partly due to foreign exchange gains, and operating profit also rose, due partly to theimpact of price revisions in Japan.

6Consolidated Results for the Six-Month Period from January 1 to June 30, 2024

Turning to other businesses, the mobile crane business saw increases in orders, sales and operating profit due to strong
demand from both North America and Japan. Meanwhile, for the material handling system business, orders increased due
to large-scale projects for iron production and shipbuilding, but sales and operating profit remained unchanged year on
year because there was a limited number of projects that could be factored into sales in the current fiscal year.
As a result , orders across the segment decreased by 15% as compared to the same period of the previous fiscal year tofinish at JPY167.2 billion, while sales increased by 6% as compared to the same period of the previous fiscal year to finishat JPY196.2 billion. The segment posted an operating profit of JPY18.0 billion, a 46% increase as compared to the same
period of the previous fiscal year .
(iv) Energy & Lifeline
The energy plant business experienced a decline in orders due to fewer large-scale modification projects for power
generation facilities in Europe. However, variations in the progress of construction work led to an increase in sales, andoperating profit slightly decreased due to a rise in development costs.
For other businesses, orders decreased due partly to withdrawal from new shipbuilding business from FY2024, and sales
also decreased because there were few projects that could be factored into sales in the current fiscal year. However,operating profit saw an uptick, because of improved profit margins for individual projects.
As a result, orders across the segment decreased by 13% as compared to the same period of the previous fiscal year tofinish at JPY57.7 billion, while sales increased by 9% as compared to the same period of the previous fiscal year to finishat JPY88.8 billion. The segment posted an operating profit of JPY3.6 billion, a 860% increase as compared to the same
period of the previous fiscal year.
(v) Others
Orders increased by 7% as compared to the same period of the previous fiscal year to finish at JPY3.1 billion, sales
increased by 7% as compared to the same period of the previous fiscal year to finish at JPY3.3 billion, and operating profit
decreased by 1% to JPY0.9 billion from the same period of the previous fiscal year.

2. Explanation of the Group’s Consolidated Financial Position
1. Condition of Assets, Liabilities, and Net Assets
Total assets at the end of the first half of the current consolidated fiscal year under review (ended June 30, 2024) amounted
to JPY1,256.8 billion, an increase of JPY55.9 billion as compared to the end of the previous consolidated fiscal year. Thiswas mainly due to increases of JPY43.0 billion in inventory assets and JPY19.9 billion in tangible fixed assets as comparedto the end of the previous consolidated fiscal year, while notes and accounts receivable - trade and contract assets
decreased by JPY13.4 billion.
Total liabilities came to JPY589.4 billion, an increase of JPY16.0 billion as compared to the end of the previous consolidated
fiscal year. This was partly because interest-bearing liabilities increased by JPY33.4 billion, while notes and accounts
payable - trade decreased by JPY10.9 billion.
Net assets amounted to JPY667.4 billion, an increase of JPY39.9 billion as compared to the end of the previous
consolidated fiscal year. This was mainly due to increases of JPY35.5 billion and JPY16.2 billion in foreign currencytranslation adjustments and retained earnings, respectively, while net assets decreased by JPY10.0 billion due to theacquisition of treasury shares.
As a result of the above, the shareholders’ equity ratio increased by 0.9 point from the end of the previous consolidated
fiscal year to finish at 52.5%.

2. Cash Flow Condition
Cash and cash equivalents at the end of the first half of the current consolidated fiscal year came to JPY100.3 billion, an
increase of JPY0.1 billion from the end of the previous consolidated fiscal year. Cash flows for the first half of the current
consolidated fiscal year and the factors contributing to increases or decreases in cash flows are as follows.

7

Consolidated Results for the Six-Month Period from January 1 to June 30, 2024

(Cash Flow from Operating Activities)
Cash flow from operating activities increased by JPY11.7 billion during the first half of the current consolidated fiscal year,
and declined by JPY9.2 billion year on year. This was mainly attributable to an expansion in the decrease of notes andaccounts payable and an increase in payments for income taxes, while an increase in inventory assets slowed down.
(Cash Flow from Investing Activities)
Cash flow from investing activities decreased by JPY23.8 billion during the first half of the current consolidated fiscal year,
and declined by JPY2.4 billion year on year. This was partly due to an increase in expenses for acquisition of tangible andintangible fixed assets.
(Cash Flow from Financing Activities)
Cash flow from financing activities increased by JPY8.6 billion during the first half of the current consolidated fiscal year,
and rose by JPY16.5 billion year on year. This was partly due to an increase in expenses for the acquisition of treasury
shares and an increase in interest-bearing debt.

8

Consolidated Results for the Six-Month Period from January 1 to June 30, 2024

3. Explanation of the Consolidated Earnings Forecast and Other Forward-Looking
Estimates
As indicated below, we have revised the consolidated earnings forecast for the fiscal year ending December 31, 2024 that
was announced in the financial report dated February 14, 2024.
(Full fiscal year ending December 31, 2024)

Net sales

OperatingprofitOrdinary profit(Units: millions of yen)
Profit attributable
Profit attributableto owners ofto owners ofparentparent ratio (yen)Previous forecast (A)1,110,000

70,00066,00041,000334.73

Revised forecast (B)1,070,000

65,00061,00038,000316.18(40,000)(5,000)(5,000)(3,000)

―

(3.6)

(7.1)

(7.6)

(7.3)

―

1,081,533

74,36770,25032,742267.30Difference (B-A)% Change(Reference) Resultsfor previous fiscal
year

Taking into account the impact of inventory adjustments by customers in North America and Europe, as well as a morethan-expected delay in the recovery of semiconductor-related market conditions, we have decided to revise downward ourprevious forecasts for net sales, operating profit, ordinary profit, and profit attributable to owners of the parent company.
For main exchange rates for the first half of the current consolidated fiscal year and onwards, we assume that 1 dollar =145 yen and 1 euro = 160 yen.

9Consolidated Results for the Six-Month Period from January 1 to June 30, 2024

II. Interim Consolidated Financial Statements and Key
Explanatory Notes
1. Interim Consolidated Balance Sheets(Units: millions of yen)
End of Full YearAs of December 31, 2023

End of Present First Half
As of June 30, 2024

AmountAmountAssetsCurrent assets
Cash and deposits

104,458

103,904

Notes and accounts receivable - tradeand contract assets

289,861

276,462

Inventory assets

321,086

364,109

Other

35,28037,495

Allowance for doubtful accounts(2,400)(2,270)Total current assets

748,285779,700

Land

111,169

112,382

Other (net)

218,837

237,571

Total tangible fixed assets

330,007349,953

Goodwill

19,312

20,332Other

26,30028,083

Total intangible fixed assets

45,612

48,415

Other

84,862

86,691

Allowance for doubtful accounts(7,909)(7,957)

Total investments and other assets

76,95378,734

452,572

477,101

1,200,857

1,256,801

Fixed assets
Tangible fixed assets

Intangible fixed assets

Investments and other assets

Total Fixed assets
Total assets

10Consolidated Results for the Six-Month Period from January 1 to June 30, 2024

(Units: millions of yen)
End of Full YearAs of December 31, 2023

End of Present First Half
As of June 30, 2024

AmountAmountLiabilities
Current liabilities
Notes and accounts payable - trade180,822

169,962

Short-term loans payable

63,25868,651

Current portion of bonds payable

10,00010,000Current portion of long-term loans
payable

9,741

3,524

Provision for bonuses

7,753

7,079

Provision for construction warranties

12,164

12,516

Other provision amount

3,036

2,220

Other

129,555

119,771

Total current liabilities

416,329

393,723

Bonds payable

40,00060,000Long-term debt due after one year

39,23153,407

Defined benefit liability

33,83636,534

Deferred income taxes on revaluation

20,40820,408

161

168

Other

23,42825,154

Total fixed liabilities

157,064

195,671

573,393589,394

Capital stock

30,87230,872

Capital surplus

25,20325,203Retained earnings

433,579

449,735

Treasury shares(1,177)(11,200)

Total Shareholders' equity

488,476494,610

Valuation difference on available-for-salesecurities

6,951

7,973

Deferred gains or losses on hedges(956)(2,158)

Revaluation reserve for land

40,30740,307

Foreign currency translation adjustments

72,163

107,693

Fixed Liabilities

Provision amount

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income

11Consolidated Results for the Six-Month Period from January 1 to June 30, 2024

End of Full YearAs of December 31, 2023

End of Present First Half
As of June 30, 2024

AmountAmountRemeasurements of defined benefit
plans

12,831

11,854

Total accumulated other comprehensive
income131,295

165,668

7,693

7,130

627,464

667,4071,200,857

1,256,801

Non-controlling interests
Total net assets
Total liabilities and net assets

12Consolidated Results for the Six-Month Period from January 1 to June 30, 2024

2. Interim Consolidated Income Statements and Interim Consolidated Statement ofComprehensive Income
Interim Consolidated Income Statements(Units: millions of yen)Previous First Half
January 1, 2023 toJune 30, 2023

Present First Half
January 1, 2024 toJune 30, 2024

AmountAmountNet sales

510,059

520,353

Cost of sales

392,474

391,216Gross income

117,584

129,138

Selling, general and administrative expenses

86,92995,808Operating profit

30,65533,330Interest income

667

773

Dividend income

333

763

2,870

1,376

72

838

Other

1,431

1,160

Total non-operating profit

5,372

4,910

1,061

1,745

628

720

Other

1,449

1,916

Total non-operating expenses

3,139

4,381

32,88933,858

Impairment loss

304

375

Total extraordinary losses

304

375

Profit before income taxes

32,58433,482

Income taxes

9,900

9,102

Profit22,68524,380Interim profit attributable to non-controllinginterests

208

871

Interim profit attributable to owners of parent

22,47623,509Non-operating profit

Foreign exchange profit
Proceeds from sale of investment
securities

Non-operating expenses
Interest expenses
Patent related expenses

Ordinary profit
Extraordinary losses

13Consolidated Results for the Six-Month Period from January 1 to June 30, 2024

Interim Consolidated Statement of Comprehensive Income(Units: millions of yen)Previous First Half
January 1, 2023 toJune 30, 2023

Present First Half
January 1, 2024 toJune 30, 2024

AmountAmountProfit22,68524,380

Valuation difference on available-for-salesecurities

1,887

1,016

Deferred gains or losses on hedges(969)(1,202)25,87636,314

(696)

(981)

4

6

26,10135,15348,78659,53348,052

57,882733

1,651

Other comprehensive income

Foreign currency translation adjustments
Adjustment to retirement benefits
Share of other comprehensive income ofentities accounted for using equity
methodTotal other comprehensive income
Comprehensive income(Breakdown)Interim comprehensive income
attributable to owners of parent
Interim comprehensive income
attributable to non-controlling interests

3. Interim Consolidated Cash Flows Statement(Units: millions of yen)Previous First Half
January 1, 2023 toJune 30, 2023

Present First Half
January 1, 2024 toJune 30, 2024

Profit before income taxes

32,58433,482

Depreciation

17,542

18,644

Impairment loss

304

375

Valuation profit on investment securities

(72)

(838)

Interest and dividend income(1,000)(1,536)

Interest expenses

1,061

1,745

Increase (decrease) in reserve amount(1,160)(3,019)(Increase) decrease in notes and accounts receivable and contract
assets

14,231

20,811(Increase) decrease in inventories(33,428)(21,593)

Increase (decrease) in notes and accounts payable

Cash flows from operating activities(11,527)(22,159)

Other

5,123

(2,597)

Subtotal

23,65923,31514

Consolidated Results for the Six-Month Period from January 1 to June 30, 2024

Previous First Half
January 1, 2023 toJune 30, 2023

Present First Half
January 1, 2024 toJune 30, 2024

878

1,102

Interest expenses(1,157)(1,902)

Payments for income taxes(2,459)(10,815)

Net cash provided by operating activities

20,922

11,699(21,110)(24,077)

Cash flow from the sale of tangible and intangible fixed assets

701

56

Expenses associated with the acquisition of shares in affiliatedcompanies

(199)

―

Purchase of investment securities

(104)

(4)

Proceeds from the sale of investment securities

176

1,106

(Increase) decrease in short-term loans

(37)

(81)

Payments of loans receivable

Interest and dividends received

Cash flows from investing activities
Cash outflow due to the acquisition of tangible and intangible fixed
assets(517)(3,853)

Cash flow from loan recoveries

552

2,694

Other

(887)

349

(21,426)(23,811)Net increase (decrease) in short-term loans

6,978

1,206

Increase (decrease) in commercial papers(10,000)―

Proceeds from long-term debt

15,785

16,424

Repayments for long-term debt

(3,334)(8,974)―20,000Cash outflow due to redemption of corporate bonds payable(10,000)―

Cash dividends paid

(5,521)(7,336)

Payment of dividends to non-controlling stockholders(171)(1,133)Acquisition of treasury shares(17)(10,027)

Other(1,601)(1,584)

Net cash used in financing activities(7,882)8,575

Effect of exchange rate changes on cash and cash equivalents

1,338

3,612

Net increase (decrease) in cash and cash equivalents(7,048)77

Cash and cash equivalents at beginning of year

93,727100,235

Cash and cash equivalents at end of year

86,679100,312Net cash used in investing activities
Cash flows from financing activities

Proceeds from the issuance of corporate bonds

15

Consolidated Results for the Six-Month Period from January 1 to June 30, 2024

4. Items of Special Note Concerning the Interim Consolidated Financial Statements(Significant Events or Conditions that Question the Premise of a Going Concern)
There are no applicable items.

(Application of Accounting Procedures Specific to Preparation of Interim Consolidated Financial
Statements)(Calculation of tax expenses)
The effective tax rate expected to be imposed on pretax profit (after tax effect accounting) applicable to the consolidated
fiscal year in which the interim period under review is included was estimated based on reasonable assumptions, and tax
expenses were calculated by multiplying the interim pretax profit by the estimated effective tax rate.

(Notes regarding Significant Fluctuations to Shareholders’ Equity)(Acquisition of Treasury Shares)
According to a resolution adopted at the Board of Directors meeting held on February 14, 2024, the Company acquired
2,300,800 shares of treasury stock. As a result, the value of treasury shares rose by JPY10,022 million during the first halfof the current consolidated fiscal year, reaching JPY11,200 million at the end of the period. This increase also accounts
for factors such as changes in value due to the acquisition of fractional shares.
In addition, the acquisition of treasury shares based on such resolution was completed on June 20, 2024 (contractual
basis).
*Treasury stock as of the end of the first half of the current consolidated fiscal year includes shares of the Company heldin the trust account related to the share delivery trust established for the stock compensation plan for directors and others.

(Segment Information)
1. Summary of Reporting Segments
The Group’s reporting segments are based on those units within the Group where separate financial information is available
and where the Group’s Board of Directors periodically deliberates over such matters as the distribution of management
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 and consolidated
subsidiaries. More specifically, the four reporting segments of the Group are “Mechatronics”, “Industrial Machinery”,“Logistics & Construction”, and “Energy & Lifeline”.
Businesses

Main Products

Mechatronics

Power transmission, control equipment, motors, inverters, laser processing
systems, precision positioning equipment, control components

Industrial Machinery

Plastics machinery, film forming machines, cryogenic equipment, precision
forgings, semiconductor production equipment, ion accelerators, medical
machines and equipment, forging press machines, machining tools, airconditioning equipment, defense equipment

Logistics & Construction

Hydraulic excavators, mobile cranes, road machinery, material handlingsystems, logistics systems, automated parking systems

Energy & Lifeline

Private power generation facilities, boilers, air pollution control equipment,water and sewage treatment systems, turbines, pumps, pressure vessels,
mixing vessels, food processing machinery, ships

16

Consolidated Results for the Six-Month Period from January 1 to June 30, 2024

2. Information Regarding Net Sales, Profits, Assets, Liabilities, and Other Items by Reporting Segment
The first half of the previous consolidated fiscal year (January 1, 2023 to June 30, 2023)(Units: millions of yen)Segment

A

Item

B

C

D

Subtotal

Other1

E2

Total

F3

Net sales
Sales to externalcustomers

106,909 133,885 184,868

Internal sales between
segments or exchanges
Total

932

790

214

107,841 134,675 185,082

Segment profit

5,834

11,20812,331

81,348 507,010

352

2,289

81,700 509,299
371

29,744― 510,059

3,048 510,059

1,615(3,904) 510,059

4,664 513,962
900―(3,904)

3,904

30,64412

30,655

Segments:
A: Mechatronics
B: Industrial Machinery
C: Logistics & Construction
D: Energy & Lifeline
E: Adjustments
F: Value included on the Interim Consolidated Income Statement
Notes:
1. “Other” represents businesses that are not included in the reporting segments. This includes the Group’s real-estatebusinesses, software-related business, and other businesses.
2. The segment profit adjustment of JPY12 million is due to the deletion of intersegment transactions.
3. Segment profits have been adjusted as compared to the operating profit recorded in the Interim Consolidated Income
Statement.

The first half of the current consolidated fiscal year (January 1, 2024 to June 30, 2024)(Units: millions of yen)Segment
Item

A

B

C

D

Subtotal Other1

Total

E2

F3

Net sales
Sales to externalcustomers
Internal sales between
segments or exchanges
Total
Segment profit or loss

101,022 131,096 196,199

88,774

517,092

192

274

2,125

101,955 131,822 196,391

89,048519,216

3,559

32,426

933

1,838

726

9,051

17,978Segments:
A: Mechatronics
B: Industrial Machinery

17

3,262 520,353

1,732

3,857

4,994 524,210
951

33,377― 520,353(3,857)―(3,857) 520,353(47)

33,330Consolidated Results for the Six-Month Period from January 1 to June 30, 2024

C: Logistics & Construction
D: Energy & Lifeline
E: Adjustments
F: Value included on the Interim Consolidated Income Statement
Notes:
1. “Other” represents businesses that are not included in the reporting segments. This includes the Group’s real-estatebusinesses, software-related business, and other businesses.
2. The segment profit adjustment of minus JPY47 million is due to the deletion of intersegment transactions.
3. Segment profits have been adjusted as compared to the operating profit recorded in the Interim Consolidated Income
Statement.

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

18

Consolidated Results for the Six-Month Period from January 1 to June 30, 2024

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

Previous First Half
January 1, 2023 to June30, 2023
AmountPresent First Half
January 1, 2024 toJune 30, 2024%

AmountY/Y Change%

Amount%Mechatronics

105,705

20.6

98,712

21.8(6,993)(6.6)

Industrial Machinery

140,51027.4

126,37327.9(14,136)(10.1)

Logistics & Construction

197,16838.5

167,18736.9(29,980)(15.2)

Energy & Lifeline

66,36012.9

57,71412.7(8,645)(13.0)

Others

2,929

0.6

3,147

0.7

217

7.4

Total

512,671100.0

453,134

100.0(59,537)(11.6)(2) Sales and operating profit/loss(Units: millions of yen)Segment

Previous First Half
January 1, 2023 to June 30,
2023%

AmountPresent First Half
January 1, 2024 toJune 30, 2024
Amount%Y/Y Change

Amount%Mechatronics

106,90921.0

101,02219.4(5,887)(5.5)

Industrial Machinery

133,88526.3

131,09625.2(2,789)(2.1)

Logistics & Construction

184,86836.2

196,19937.7

11,331

6.1

Energy & Lifeline

81,34815.9

88,774

17.1

7,426

9.1

Others

3,048

0.6

3,262

0.6

214

7.0

Total

510,059

100.0

520,353

100.0

10,2952.0

19

Consolidated Results for the Six-Month Period from January 1 to June 30, 2024

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

End of
As of December 31, 2023
Amount%End of Present First Half
As of June 30, 2024
Amount%Y/Y Change
Amount%Mechatronics

95,353

12.4

93,04313.2(2,310)(2.4)

Industrial Machinery

184,161

23.8

179,43825.4(4,723)(2.6)

Logistics & Construction

261,42133.8

232,41032.9(29,011)(11.1)

Energy & Lifeline

230,40229.8

199,34228.3(31,060)(13.5)

Others

1,647

0.2

1,532

0.2

(115)

(7.0)

Total

772,984

100.0

705,765

100.0(67,219)(8.7)

20