Sumitomo Heavy Industries, Ltd.
SECOND QUARTER CONSOLIDATED FINANCIAL REPORTFor the Six-Month Period from April 1 to September 30, 2015

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

Consolidated Results for the Second Quarter
Ended September 30, 2015

Summary of Consolidated Financial Results
For the Second Quarter Ended September 30, 2015
Presented October 29, 2015

Sumitomo Heavy Industries, Ltd.
Listed exchanges

Tokyo Stock Exchange

Stock code

6302

Head officeTokyo

President

Shunsuke Betsukawa

URLwww.shi.co.jp

Inquiries

Tsuneyoshi Sato
General Manager, Corporate Communications Dept.

Telephone+81 3 6737 2331

Scheduled reporting date for quarterly report

November 6, 2015

Scheduled date of payment of cash dividends

December 1, 2015

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

Yes
Yes (for analysts)

1. FY 2015 Second Quarter Consolidated Results (April 1, 2015, to September 30, 2015)(1) Business Results(Units: millions of yen)
Second Quarter
April 1 to September 30, 2015

Previous Second Quarter
April 1 to September 30, 2014

% change% change

Net sales

322,5175.3

306,329

12.2

Operating income

18,372(7.9)

19,946

138.3

Ordinary income

16,815(15.9)

20,001

155.4

Net income attributed to shareholders of the parent
company

11,458(6.7)

12,279263.7

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

18.69

20.03

－

－

Note: Comprehensive income
Fiscal quarter ended September 30, 2015: 10,272 million yen (57.8%)
Fiscal quarter ended September 30, 2014: 6,509 million yen (-65.1%)

2

Consolidated Results for the Second Quarter
Ended September 30, 2015

(2) Financial Position(Units: millions of yen)
End of Second Quarter
As of September 30, 2015

End of Previous Full YearAs of March 31, 2015

Total assets

761,821786,027

Shareholders’ equity

372,107

365,101

48.3

45.8

Equity ratio (%)
Reference: Equity
Fiscal quarter ended September 30, 2015: 367,652 million yen
Fiscal year ended March 31, 2015: 360,079 million yen

2. Dividends(Units: yen)
Year Ended March 31,
2015

Year Ended March 31,
2016

Year Ended March 31,
2016 (forecast)

Annual dividends per shareFirst quarter
Second quarter

Note:

－

－

5.00

7.00

Third quarter－－End of term

7.00

7.00

Annual dividends

12.00

14.00

Changes from the most recent dividend forecast: None

3. FY 2015 Consolidated Forecasts (April 1, 2015, to March 31, 2016)(Units: millions of yen)
Full Year
April 1, 2015, to March 31, 2016

% change
Net sales

690,000

Operating income

46,0000.0

Ordinary income

43,000(4.7)

Net income attributed to shareholders of the parent
company

27,000

10.9

Projected net income per share (yen)

44.05

Note:

Changes from the most recent consolidated forecast: Yes

3

3.4

Consolidated Results for the Second Quarter
Ended September 30, 2015

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.:

Yes(ii) Changes other than (i):None(iii) Changes to accounting estimates:None(iv) Restatements:

None(4) Number of shares issued (common shares)(i) Number of shares issued at end of fiscal period (including treasury stock):
As of September 30, 2015
As of March 31, 2015

614,527,405 shares
614,527,405 shares(ii) Amount of treasury stock at end of fiscal period
As of September 30, 2015
As of March 31, 2015

1,606,797 shares
1,495,994 shares(iii) Average number of shares during fiscal period (cumulative quarterly period)
As of September 30, 2015
As of September 30, 2014

612,973,689 shares
613,189,548 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 because of 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 the Explanation of theConsolidated Earnings Forecast and Other Forward-Looking Estimates in the Supplementary Materials on page8.

4

Consolidated Results for the Second Quarter
Ended September 30, 2015

Supplementary Materials – Table of Contents
1. Qualitative Information regarding Current Quarterly Consolidated Business Performance ....... 6(1) Explanation of Business Performance ........................................................................................... 6(2) Explanation of the Group’s Consolidated Financial Position .......................................................... 7(3) Explanation of the Consolidated Earnings Forecast and Other Forward-Looking Estimates ......... 8
2. Notes regarding Summarized Information (Explanatory Notes) .................................................... 9(1) Changes Involving Important Subsidiaries during the Current Consolidated Year-to-Date Quarterly
Period ............................................................................................................................................. 9(2) Special Accounting Procedures Adopted during the Development of the Quarterly Consolidated
Financial Report.............................................................................................................................. 9(3) Changes to Accounting Policies, Changes to Accounting Estimates, and Restatements ............... 9
3. Quarterly Consolidated Financial Statements ............................................................................... 10(1) Quarterly Consolidated Balance Sheets ...................................................................................... 10(2) Consolidated Income Statements and Consolidated Statement of Comprehensive Income ........ 12
Consolidated Income Statements ................................................................................................ 12
Consolidated Statement of Comprehensive Income .................................................................... 13(3) Notes regarding Consolidated Quarterly Financial Statements .................................................... 13(Notes on Premise of a Going Concern) ...................................................................................... 13(Notes regarding Significant Fluctuations to Shareholders’ Equity).............................................. 13(Subsequent Events of Significant Importance) ........................................................................... 13
4. Supplementary Information ............................................................................................................. 14(1) Orders, Sales and Operational Profit, and Balance of Orders by Segment .................................. 14(2) (Summary) Consolidated Cash Flows Statement ......................................................................... 175

Consolidated Results for the Second Quarter
Ended September 30, 2015

1. Qualitative Information regarding Current Quarterly Consolidated Business
Performance(1) Explanation of Business Performance
The Japanese economy during the second quarter of the current consolidated fiscal year under review saw a softening of
the gentle recovery that was seen in the previous quarter due to several competing factors. For example, although theemployment and wage environment showed signs of improvement, this did not lead to a recovery in personal consumption
levels due to rising prices. Another example is in the area of capital investment where an improvement in the financial
performance of corporations resulted in an upwards trend but the pace of this trend was suppressed by stagnant export
levels. Outside of Japan, the Eurozone continued to indicate signs of a gentle recovery, while sustained recovery in the
U.S. market was undermined by slow growth in capital investment levels. Moreover, the slowdown of the Chinese economy
became more apparent, which also resulted in a slowdown in the pace of growth of other emerging market economies,
and increased the risk of weakened currencies. As a result, the condition of the overall global economy remained very
stagnant.
Under these conditions, orders increased in the Industrial Machinery and Precision Machinery segments while orders fellin the Ships and Construction Machinery segments. In overall terms, the Group posted an order figure of JPY356.3 billion,
a 3% decrease as compared to the same period last year (hereinafter referred to as the “previous term”). With regard tosales, all segments of the Group, in particular the Precision Machinery segment grew as compared to the previous term.
In total, the Group posted a figure of JPY322.5 billion, a 5% increase as compared to the previous term.
Turning to income, the Precision Machinery segment showed signs of improvement while profit levels fell in theConstruction Machinery segment. As a result, operating income was JPY18.4 billion, an 8% decrease as compared to theprevious term, and ordinary income was JPY16.8 billion, a 16% decrease as compared to the previous term. Quarterly net
income attributed to shareholders of the parent company also decreased by 7% as compared to the previous term to finishat JPY11.5 billion.
Conditions in each business segment of the Group were as follows:
1. Machinery Components
Despite a slowdown in the Chinese market, a strong showing from the domestic and North American markets resulted in
an increase in both orders and sales as compared to the previous term in this segment. In actual figures, the segment
received orders worth JPY54.0 billion, a gain of 5% as compared to the previous term, and posted sales of JPY52.3 billion,a gain of 8% as compared to the previous term. Further, the segment posted operating income of JPY3.6 billion.
2. Precision Machinery
With respect to plastics machinery, while the strong IT-related demand from the Asian markets slowed, the domestic,Eurozone and North American markets trended positively. Consequently, both orders and sales figures showed
improvements as compared to the previous term. In other product areas, while orders for the segment’s semiconductorrelated products fell as compared to the previous term, sales improved. In actual figures, the segment received orders
worth JPY75.0 billion, a gain of 4% as compared to the previous term, and posted sales of JPY75.5 billion, a gain of 7%
as compared to the previous term. Further, the segment posted operating income of JPY9.4 billion.
3. Construction Machinery
The hydraulic excavator business saw a drop in both orders and sales as compared to the previous term mainly due to thesignificant drop in demand from the Chinese market, and the slowdown in demand from the domestic market because
customers rushed to place orders in the previous fiscal year ahead of the implementation of new emission regulations. In
the mobile crane business, orders fell as compared to the previous term mainly due to the delayed recovery of oil-related
demand from the North American market, while sales increased. In actual figures, the segment received orders worth
JPY93.7 billion, a fall of 8% as compared to the previous term, and posted sales of JPY98.3 billion, a gain of 1% ascompared to the previous term. Further, the segment posted operating income of JPY2.2 billion.

6

Consolidated Results for the Second Quarter
Ended September 30, 2015

4. Industrial Machinery
In this segment, the material handling business was boosted by strong demand from the domestic shipbuilding sector,
while the turbine business was boosted by demand from the overseas power generation sector. Elsewhere in the segment,
the industrial equipment business successfully won an order for a proton cancer therapy equipment. As a result, orders
across the segment increased as compared to the previous term. Sales also improved as compared to the previous term
buoyed by the material handling business and the turbine business. In actual figures, the segment received orders worth
JPY47.5 billion, a gain of 29% as compared to the previous term, and posted sales of JPY34.9 billion, a gain of 4%ascompared to the previous term. Further, the segment posted operating income of JPY2.6 billion.
5. Ships
The segment received orders for two new vessels, a reduction of three vessels as compared to the previous term. With
regard to sales, one vessel was handed over, mirroring the one vessel that was handed over in the previous term. In actual
figures, the segment received orders worth JPY18.6 billion, a fall of 42% as compared to the previous term, and posted
sales of JPY13.0 billion, a gain of 13% as compared to the previous term. Further, the segment posted an operating lossof JPY0.0 million.
6. Environmental Facilities & Plants
Despite receiving orders for boilers from the overseas IPP (Independent Power Producers) sector and the domestic power
generation sector, overall orders in the energy plant business fell as compared to previous term, mainly due to low level oforders received. On the other hand, orders in the water treatment plant business increased as compared to the previous
term as a result of receiving an order on a large-scale refurbishment project. Sales also increased as compared to theprevious term as boiler-related construction projects for the power generation sector progressed further towards completion.
In actual figures, the segment received orders worth JPY63.0 billion, a fall of 5% as compared to the previous term, andposted sales of JPY42.7 billion, a gain of 6% as compared to the previous term. Further, the segment posted an operating
loss of JPY100 million.
7. OtherIn this segment, orders dropped while sales increased as compared to the previous term. In actual figures, the segment
received orders worth JPY4.4 billion, a fall of 19% as compared to the previous term, and posted sales of JPY5.7 billion,a gain of 48% as compared to the previous term. Further, the segment posted operating income of JPY700 million.

(2) Explanation of the Group’s Consolidated Financial Position
1. Condition of Assets, Liabilities, and Net Assets
Total assets at the end of the second quarter of the current consolidated fiscal year under review (ended September 30,2015) amounted to JPY761.8 billion, a decrease of JPY24.2 billion as compared to the end of the previous consolidated
fiscal year. This was mainly due to the JPY7.7 billion decrease in trade notes and accounts receivable and the JPY30.0
billion decrease in marketable securities outstripping the JPY17.0 billion increase in inventory assets.
Total liabilities fell to JPY389.7 billion, a decrease of JPY31.2 billion as compared to the end of the previous consolidated
fiscal year. This was mainly due to decreases of JPY8.2 billion in trade notes and accounts payable, JPY11.6 billion in thebalance of interest-bearing liabilities, and JPY11.5 billion in current liabilities.
Net assets increased by JPY7.0 billion as compared to the end of the previous consolidated fiscal year to JPY372.1 billion.
This was mainly due to the JPY8.0 billion increase in retained earnings.
As a result of the above, the shareholders’ equity ratio improved by 2.5% from the end of the previous consolidated fiscal
year to finish at 48.3%.
2. Cash Flow Condition
Cash flow used for operating activities totaled JPY7.8 billion (as compared to an inflow of JPY31.9 billion in the previousterm). When broken down, the main components of the proceeds were JPY16.6 billion in quarterly net income before tax
and other adjustments, and the JPY8.8 billion reduction in trade receivables. The main sources of the outflow of cash were
the JPY17.2 billion increase in inventory assets and the JPY10.9 billion payment of corporate and other taxes.

7

Consolidated Results for the Second Quarter
Ended September 30, 2015

Cash flow used for investing activities totaled JPY8.2 billion, as compared to an outflow of JPY5.1 billion during the previous
term. This was mainly due to the JPY10.0 billion used to acquire fixed assets.
Cash flow used for financing activities totaled JPY17.5 billion, as compared to an outflow of JPY17.5 billion in the previous
term. The outflow of cash was mainly used to repay outstanding debts in the amount of JPY12.2 billion (after netting out
the inflow from debts repaid) and to make dividend payments in the amount of JPY4.3 billion.
As a result of the foregoing, the balance of cash and cash equivalents at the end of the second quarter of the current
consolidated fiscal year under review totaled JPY57.7 billion, a decrease of JPY32.7 billion as compared to the end of theprevious consolidated fiscal year.

(3) Explanation of the Consolidated Earnings Forecast and Other Forward-Looking Estimates
The consolidated earnings forecast for the full-year ending March 31, 2016 that was previously released in conjunction
with the Financial Report dated May 8, 2015 has been revised as follows:(Full-Year Ending March 31, 2016)(Units: millions of yen)Previous
Forecast(A)

Current
Forecast(B)

Increase or
Decrease(B-A)

Percent
Increase or
Decrease (%)

Previous Year
Performance(for reference)

Net sales

700,000

690,000(10,000)(1.4)

667,099

Operating income

52,50046,000(6,500)(12.4)

45,998

Ordinary income

50,00043,000(7,000)(14.0)

45,11330,00027,000(3,000)(10.0)

24,348

48.94

44.05

－

－

39.71

Net income attributed to shareholders of theparent company
Projected net income per share (yen)Sustained stagnant conditions are expected with regard to the future outlook of the global economy, mainly driven by theclear economic slowdown of the Chinese economy, and the subsequent slowdown in other emerging market economies,
as well as the increased risk of currency weakness.
Under this type of operating environment, operating income of the Construction Machinery segment (excavators) is
expected to worsen as compared to the previous forecast (released on May 8, 2015) due to the reduction in sales,
especially in China.
As a result of the above, the consolidated earnings forecast for the full-year ending March 31, 2016 that was previously
released on May 8, 2015 has been revised downwards with respect to net sales, operating income, ordinary income, andnet income attributed to shareholders of the parent company.
Please note that from the third quarter of the current consolidated fiscal year, the main exchange rates are assumed to be
USD1 = JPY120 and EUR1 = JPY135.

8

Consolidated Results for the Second Quarter
Ended September 30, 2015

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

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

(3) Changes to Accounting Policies, Changes to Accounting Estimates, and Restatements(Changes to Accounting Policies)
With regard to the “Revised Accounting Standards for Business Combination” (Accounting Standards Board of Japan(ASBJ) Accounting Standard – ASBJ Statement No. 21 dated September 13, 2013; hereinafter referred to as the “Revised
Business Combination Accounting Standards”), the “Revised Accounting Standard for Consolidated Financial Statements”(Accounting Standards Board of Japan (ASBJ) Accounting Standard – ASBJ Statement No. 22 dated September 13, 2013;
hereinafter referred to as the “Revised Consolidated Financial Statements Accounting Standards), and the “Revised
Accounting Standards for Business Divestitures” (Accounting Standards Board of Japan (ASBJ) Accounting Standard –ASBJ Statement No. 7 dated September 13, 2013; hereinafter referred to as the “Revised Business Divestitures AccountingStandards) have been adopted from the first quarter of the current consolidated fiscal year under review. Where control ofcertain subsidiaries continues under the new accounting standards, the differential change in equity of the Group isreported as additional paid-in capital. In addition, a change was made to account for acquisition-related costs as an
expense item in the consolidated fiscal year where such costs were incurred.
Further, with regard to business combinations executed after the beginning of the first quarter of the current consolidated
fiscal year under review, the allotted acquisition cost resulting from the provisional accounting of the item will now bereflected in the quarterly consolidated financial report for the quarter in which the business integration is completed.
Moreover, the way in which quarterly net income is denoted has been changed, and the term minority interest has beenchanged to non-controlling interests. In order to reflect such changes, the quarterly consolidated financial statements andthe full consolidated year financial statements for the previous second quarter and previous consolidated fiscal year havebeen reclassified.
From the second quarter of the current consolidated fiscal year under review, the purchase or sale of subsidiary sharesthat do not result in a change to the scope of consolidation has been included under the heading, “Cash Flow from
Financing Activities” in the quarterly consolidated cash flow statement. In addition, expenses associated with theacquisition of subsidiary shares that result in a change in the scope of consolidation as well as the expenses associatedwith the purchase or sale of subsidiary shares that do not result in a change to the scope of consolidation are now
categorized under the heading of “Cash Flow from Operating Activities”.
The implementation of the Revised Business Combination Accounting Standards has been carried out in accordance with
Article 58-2(4) of the Revised Business Combination Accounting Standards, Article 44-5(4) of the Revised Consolidated
Financial Statements Accounting Standards, and Article 57-4(4) of the Revised Business Divestitures AccountingStandards which allow for transitional treatment. The new standards have been adopted from the first quarter of the current
consolidated fiscal year under review and will be utilized on a go-forward basis.
Please note that the impact of this change to the quarterly consolidated financial statements for the second quarter of thecurrent consolidated fiscal year under review is negligible.

9Consolidated Results for the Second Quarter
Ended September 30, 2015

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Units: millions of yen)
End of Previous Fiscal YearAs of March 31, 2015

End of Second Quarter
As of September 30, 2015

AmountAmountAssetsCash and deposits

57,42354,708Notes and accounts receivable

194,916

187,210Marketable securities

35,0005,000

Inventory assets

153,835

170,882

Other

52,02852,804

Allowance for doubtful accounts(1,202)(1,129)492,000

469,475

Land

108,749

108,859

Other (net)

119,553

121,601

Total tangible assets

228,302230,460

9,333

9,252

9,333

9,252

Other

58,57655,781

Allowance for doubtful accounts(2,184)(3,148)56,392

52,633Fixed assets

294,027

292,346

Total assets

786,027

761,821

Current assets

Other
Total intangible assets

Investments and other assets

10Consolidated Results for the Second Quarter
Ended September 30, 2015

(Units: millions of yen)
End of Previous Fiscal YearAs of March 31, 2015

End of Second Quarter
As of September 30, 2015

AmountAmountLiabilities
Notes and accounts payable

140,436

132,190

Short-term bank loans

42,11039,360Long-term loans due within one year

15,201

12,121

Allowance

14,351

14,240Other

100,673

89,141

312,771

287,051

Bonds

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

16,333

10,571

203

204

Defined benefit liability

46,16245,486

Deferred income taxes on revaluation

22,29322,196Other

13,163

14,206

Total fixed liabilities

108,155

102,663

Total liabilities

420,926

389,714

Common stock

30,87230,872

Capital surplus

23,78923,789Retained earnings

239,815

247,791

(764)

(839)

293,712

301,612

Unrealized gains on securities

5,437

3,611

Profit (loss) on deferred hedge(2,229)(2,069)

Revaluation reserve for land

40,476

40,775

Foreign currency translation adjustments

26,641

28,131Re-measurement of defined benefit plans(3,957)(4,408)

Total accumulated other comprehensive income

66,36766,040Non-controlling interest

5,022

4,455

Total net assets

365,101

372,107

Total liabilities and net assets

786,027

761,821

Current liabilities

Allowance

Net assets

Treasury stock
Total shareholders' equity

11Consolidated Results for the Second Quarter
Ended September 30, 2015

(2) Consolidated Income Statements and Consolidated Statement of Comprehensive Income
Consolidated Income Statements(Units: millions of yen)Previous Second Quarter
April 1, 2014, to September
30, 2014

Present Second Quarter
April 1, 2015, to September
30, 2015

AmountAmountNet sales

306,329

322,517

Cost of sales

236,766

249,553

Gross income

69,56372,965

Selling, general & administrative expenses

49,61654,593Operating income

19,946

18,372

Interest income

212

249

Dividend income

448

381

Investment gain on equity method

963

1,002

1,612

753

3,235

2,386

Interest expense

1,127

1,020

Other

2,054

2,922

Total non-operating expenses

3,181

3,943

Ordinary income

20,001

16,815

Loss on impaired assets

257

199

Total extraordinary losses

257

199

Income before income taxes

19,744

16,616

Corporate income taxes

7,117

5,827

Net income

12,627

10,789Net income (or loss) attributable to non-controllinginterests

348

(670)

Net income attributed to shareholders of the parent
company

12,27911,458Non-operating income

Other
Total non-operating income
Non-operating expenses

Extraordinary losses

12Consolidated Results for the Second Quarter
Ended September 30, 2015

Consolidated Statement of Comprehensive Income(Units: millions of yen)Previous Second Quarter
April 1, 2014, to September 30,
2014

Present Second Quarter
April 1, 2015, to September 30,
2015

AmountAmount

Net income

12,627

10,789Unrealized gains on securities

243(1,874)

Profit (loss) on deferred hedge

(852)

211

Revaluation reserve for land―

55

(5,588)

1,545

Adjustment to retirement benefits

82

(454)

Amount applied for equity method
accounting of affiliates(4)

2

Total other comprehensive income(6,118)

(516)

6,509

10,272

6,410

10,88798(614)

Other comprehensive income

Foreign currency translation adjustments

Comprehensive income(Breakdown)Comprehensive income relating toparent company shareholdings
Comprehensive income relating to noncontrolling interests(3) Notes regarding Consolidated Quarterly Financial Statements(Notes on Premise of a Going Concern)
There are no applicable items.

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

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

13Consolidated Results for the Second Quarter
Ended September 30, 2015

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

April 1, 2014, toSeptember 30, 2014

April 1, 2015, toSeptember 30, 2015

AmountAmountY/Y Change
Amount%Machinery Components

51,36054,033

2,673

5.2

Precision Machinery

71,91775,013

3,096

4.3

Construction Machinery

101,557

93,746(7,811)(7.7)

Industrial Machinery

36,97547,532

10,557

28.6

Ships

32,072

18,599(13,473)(42.0)

Environmental Facilities & Plants

66,25063,029(3,221)

(4.9)

Other

5,414

4,389

(1,025)(18.9)

Total

365,545356,341(9,204)(2.5)

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

April 1, 2014, toSeptember 30, 2014
Operational
ProfitSales

April 1, 2015, toSeptember 30, 2015
Operational
ProfitSales

Y/Y Change
Operational
ProfitSales

Machinery Components

48,4083,439

52,332

3,567

3,924

129

Precision Machinery

70,815

6,582

75,483

9,385

4,668

2,802

Construction Machinery

97,7397,366

98,342

2,205

603(5,162)

Industrial Machinery

33,673

1,915

34,945

2,601

1,272

686

Ships

11,536(1,136)

13,003

(3)

1,467

1,132

Environmental Facilities & Plants

40,327818

42,737

(88)

2,410

(905)

Other

3,829

1,022

5,675

736

1,846

(286)

―

(60)

―

(31)

―

29

306,329

19,946

322,517

18,372

16,189(1,575)Adjustments
Total

14

Consolidated Results for the Second Quarter
Ended September 30, 2015

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

End of Previous Fiscal
Year
As of March 31, 2015

End of Second Quarter
As of September 30,
2015

AmountAmountChangeAmount%Machinery Components

31,571

33,272

1,701

5.4

Precision Machinery

50,06949,599

(470)

(0.9)

Construction Machinery

32,552

27,957(4,596)(14.1)

Industrial Machinery

94,030106,617

12,587

13.4

Ships

64,90470,4995,595

8.6

Environmental Facilities & Plants

115,342

135,634

20,292

17.6

Other

3,987

2,701

(1,286)(32.2)

Total

392,455

426,279

33,824

8.6

The Group’s operating segments are categorized as follows:Businesses

Main Products

Machinery Components

Power transmission and control equipment

Precision Machinery

Plastics machinery, film forming machines, semiconductor production
equipment, laser processing systems, cryogenic equipment, precision
positioning equipment, precision forgings, control components, defense
equipment, machining tools

Construction Machinery

Hydraulic excavators, mobile cranes, road machinery

Industrial Machinery

Ion accelerators, medical machines and equipment, plasma coating systems
for FPDs, forging press machines, material handling systems, logistics
systems, automated parking systems, turbines, pumps

Ships

Ships

Environmental Facilities & Plants

Private power generation facilities, boilers, industrial waste treatment facilities,
air pollution control equipment, water and sewage treatment systems, processequipment, pressure vessels, mixing vessels, air-conditioning equipment, foodprocessing machinery

15

Consolidated Results for the Second Quarter
Ended September 30, 2015(2) (Summary) Consolidated Cash Flows Statement(Units: millions of yen)Previous Second
Quarter
April 1, 2014 toSeptember 30, 2014

Present Second
Quarter
April 1, 2015, toSeptember 30, 2015

Y/Y Change

Income before income taxes

19,744

16,616(3,128)Depreciation

8,012

9,556

1,544

(Increase) decrease in notes and accounts
receivable

24,708

8,797(15,911)(Increase) decrease in inventories(14,506)(17,206)(2,700)6,779(8,846)(15,625)

Payments for income taxes(11,279)(10,928)

351

Other

(1,520)(5,760)(4,239)31,937(7,772)(39,709)

Payments for purchases of property, plant,
and equipment(7,446)(9,973)(2,528)

Other

2,338

1,817

(521)

(5,107)(8,156)(3,048)Net increase (decrease) in short-term loans(14,099)(12,249)

1,849

Cash dividends paid

(2,466)(4,290)(1,824)

(933)

(986)

(54)

(17,497)(17,526)

(29)

(978)

802

1,780

Cash and cash equivalents at beginning of period

76,41890,324

13,906

Cash and cash equivalents at end of period

84,772

57,672(27,101)

Increase (decrease) in notes and accounts
payableNet cash provided by operating activities

Net cash used in investing activities

Other
Net cash used in financing activities
Other

16