Review of Operations

Steel and Energy Products Business
Steel Products Sector/Steel Plates and Structures Sector/Wind Turbines Sector

Shell Flange Used for Pressure Chamber for
Nuclear Power Plant

105,000

J82 Wind Turbine System

Performance in fiscal 2011
Orders came to ¥78,068 million (US$949 million), a year-on-year

123,271

decrease of 21.0%. Orders for products for use in the electrical power
98,829Orders Received¥ million
140,000

Clad Steel Plate

generation industry (including nuclear power) decreased sharply
78,06870,000against the background of a worldwide reassessment of nuclear power

35,000policy, while orders for clad steel plates and pipes recorded a decline ona year-on-year comparison owing to the large-scale orders received in02011

2010

2012

fiscal 2010. Orders for pressure vessels for oil refineries, and for windturbine system equipment, also fell short of expectations.
year decrease of 7.0%. Although sales of clad steel plates and pipes

105,001

112,915

90,000

Sales came to ¥105,001 million (US$1,277 million), a year-on121,921

Sales¥ million
120,000

benefited from the posting of sales of large-scale orders received in theprevious year, and sales of products for the electrical power generation

60,000industry (including nuclear power) included those from orders received
in previous years, these factors were more than offset by a decline in

30,000sales of pressure vessels for oil refineries, and of wind turbine system
02010

2011

2012

equipment.
Operating income came to ¥11,517 million (US$140 million), a
year-on-year decrease of 54.0%. Despite implementing a range of costcutting measures, we were unable to counteract the adverse effects of anumber of factors, including a lower capacity utilization rate due to thedecrease in orders received, intensifying export competition caused by
the yen’s high exchange rate and a decline in the average selling price,
and a deterioration in the Company’s profitability owing to a change inthe product structure.

10Industrial Machinery Products Business
Plastics Machinery Sector/Other Machinery Sector

Polyolefin Extruder/Pelletizer

Large-Size All-Electric Injection Molding
Machine (24600kN)

Performance in fiscal 2011
Orders rose 2.7% year on year, to ¥118,858 million (US$1,446 mil-120,000lion). Although orders for laser annealing equipment declined due to118,858

84,15980,000115,699

Orders Received¥ million
160,000

Magnesium Alloy Injection Molding Machine(280t)

the fact that ordering negotiations were prolonged into the following
term, as well as other factors, growth was recorded in orders for plastic
production and processing machinery, notably film-forming equip-

40,000ment, and orders for plastic injection molding machines and other0

2011

2010

2012

machinery held firm.
Sales increased 16.7% to ¥113,959 million (US$1,386 million).
Growth was seen in sales of plastic production and processing machin-

77,35660,00097,66490,000ery such as pelletizers and twin-screw extruders, as well as ancillary

113,959

Sales¥ million
120,000

components and conversion work, and in sales of laser annealing
equipment, while sales of plastic injection molding machines held firm.
Operating income posted a sharp rise of 254.8%, to ¥11,542 million (US$140 million). This is attributable to increased sales, radical

30,000cost-cutting measures, and to steps taken by the Company to enhance
02010

20112012

its lineup of high-value-added products born out of a level of technological expertise that differentiates the Company from its rivals. Thesesteps were all the more necessary as a result of increasingly fierce pricecompetition caused by the strong yen.

11Review of Operations

Real Estate and Other Businesses
Regional Development

Business Office Development(Fuchu Intelligent Park)

Sales

3,000

Orders totaled ¥2,389 million (US$29(US$29 million) and operating income

2,407

1,000

2,349

2,000million), sales came to ¥2,407 million
2,402

2,389

2,354

2,000

Performance in fiscal 2011¥ million
4,000

3,000

2,412Orders Received¥ million
4,000

JSW Apartment Building Development(Fuchu, Tokyo)

amounted to ¥776 million (US$9million).

1,00002010

2011

2012

02010

2011

2012

Capital Expenditures
Capital expenditures for the reporting period totaled ¥8,256 million (US$100 million), with the majority spent on
installation, improvement and maintenance work on a variety of production facilities.
Details of capital expenditure by individual business segment are as follows.
In the Steel and Energy Products Business, capital expenditures totaled ¥6,238 million (US$75 million). This
expenditure consisted largely of investments in the construction of new buildings and equipment for the Special
Melting and Heat Treatment facilities, as well as in the upgrading of equipment at the Designing Center at theMuroran Plant.
In the Industrial Machinery Products Business, capital expenditures came to ¥1,896 million (US$23 million),primary as a result of investments in higher machine processing efficiency at our Hiroshima Plant.
In the Real Estate and Other Businesses, capital expenditure consisted primarily of the upgrading of facilities onreal estate for rental purposes, totaling ¥78 million (US$0.9 million).
Capital expenditures unallocable to individual segments came to ¥42 million (US$0.5 million).
12