Sumitomo Heavy Industries - For Shareholders and Investors

FY1998~FY2003 FY2004~FY2008

FY2004~FY2008

Summary of Income (for the year):
	FY2004	FY2005	FY2006	FY2007	FY2008	FY2008 Thousands of U.S. dollars (Note 1)
Net sales	¥521,310	¥551,339	¥600,256	¥660,769	¥642,918	$6,560,389
Cost of sales	407,512	434,904	464,071	505,366	503,072	5,133,383
Selling, general and administrative expenses	65,025	68,930	71,961	77,613	82,907	845,987
Research and development expenses	6,317	7,434	8,581	9,908	10,047	102,523
Operating income	48,773	47,505	64,224	77,790	56,940	581,018
EBITDA (Note 2) .	58,055	56,577	74,873	91,578	75,260	767,957
Net income (loss)	22,792	29,742	37,352	42,974	13,649	139,277
Cash Flows (for the year):
Cash flows from operating activities	¥45,451	¥50,023	¥56,789	¥29,096	¥34,676	$353,841
Cash flows from investing activities	(6,087)	(7,024)	(12,461)	(41,250)	(35,924)	(366,571)
Free cash flows (Note 3)	39,364	42,999	44,328	(12,154)	(1,247)	(12,730)
Cash flows from financing activities	(46,490)	(48,812)	(41,193)	(5,238)	15,625	159,442
Cash and cash equivalents at the end of year	49,108	43,644	47,523	29,879	42,414	432,798
Amounts per Share of Common Stock:
Net income (loss) (Note 5)	¥37.80	¥49.45	¥61.99	¥71.19	¥22.62	$0.23
Stockholders’ equity	227.90	279.02	338.95	392.80	378.78	3.87
Cash dividends	3.00	5.00	7.00	10.00	6.00	0.06
Financial Indexes:
Operating income margin	9.4	8.6	10.7	11.8	8.9
EBITDA margin	11.1	10.3	12.5	13.9	11.7
R&D expenses ratio to net sales	1.2	1.3	1.4	1.5	1.6
Return on assets (ROA)	4	5.1	6.2	6.3	2.1
Return on equity (ROE)	16.6	17.7	24	22.4	5.9
Stockholders’ equity ratio	24.1	29	34.1	34.9	34.8
Interest-bearing debt ratio	29.7	21.7	14.7	13.2	16.8
D/E ratio (Times)	1.2	0.7	0.4	0.4	0.4
ROIC (Note 6)	8.5	8.8	12.2	14	9.6
Investment in Plant and Equipment, and Others:
Capital expenditures	¥8,175	¥10,285	¥17,257	¥28,180	¥31,753	$324,008
Depreciation and amortization	9,282	9,072	10,649	13,788	18,320	186,939
Number of employees	11,149	11,319	12,561	14,408	14,984
Notes: 1. The U.S. dollar amounts have been translated, for convenience only, at ¥98=$1, the prevailing exchange rate on the Tokyo Foreign Exchange Market as of March 31, 2009. 2. EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) = Operating income + Depreciation and amortization 3. Free cash flows = Cash flows from operating activities + Cash flows from investing activities 4. Net assets are presented following enforcement of the new Japanese Corporate Law in 2006. Net assets comprise stockholders' equity as previously defined, plus minority interests and share subscription rights. 5. Net income per share of common stock is based on the weighted average number of shares outstanding in each year.
6. ROIC (Return on Invested Capital) =	(Operating income + Interest and dividend received) x 55% (= 1 - Effective tax rate)
6. ROIC (Return on Invested Capital) =	(Average of stockholders' equity + Average of interest-bearing debt)

FY1998~FY2003

Summary of Income (for the year):
	FY1998	FY1999	FY2000	FY2001	FY2002	FY2003
Net sales	¥554,488	¥566,668	¥513,753	¥517,138	¥481,289	¥482,765
Cost of sales	464,286	473,798	434,544	430,399	400,460	378,422
Selling, general and administrative expenses	80,572	80,162	71,724	72,564	63,616	64,112
Research and development expenses	8,983	12,206	8,688	6,777	5,800	6,263
Operating income	9,630	12,709	7,485	14,175	17,213	40,231
EBITDA (Note 2) .	23,800	26,910	20,402	26,078	29,322	50,344
Net income (loss)	(12,298)	(6,328)	(28,612)	1,650	2,688	16,262
Cash Flows (for the year):
Cash flows from operating activities	¥11,348	¥39,117	¥-16,957	¥38,808	¥29,499	¥75,775
Cash flows from investing activities	(9,050)	(1,969)	29,560	(3,343)	(1,074)	(7,929)
Free cash flows (Note 3)	2,298	37,148	12,603	35,465	28,425	67,846
Cash flows from financing activities	19,709	(48,765)	(21,403)	(32,785)	(22,116)	(56,666)
Cash and cash equivalents at the end of year	57,410	45,173	36,496	40,846	47,661	57,678
Amounts per Share of Common Stock:
Net income (loss) (Note 5)	¥-20.88	¥-10.74	¥-48.60	¥2.80	¥4.57	¥27.01
Stockholders’ equity	123.96	110.12	51.04	148.63	151.86	190.25
Cash dividends	-	3	-	-	-	-
Financial Indexes:
Operating income margin	1.7	2.2	1.5	2.7	3.6	8.3
EBITDA margin	4.3	4.7	4	5	6.1	10.4
R&D expenses ratio to net sales	1.6	2.2	1.7	1.3	1.2	1.3
Return on assets (ROA)	(1.7)	(1)	(4.9)	0.3	0.5	2.8
Return on equity (ROE)	(16.9)	(9.8)	(95.2)	1.9	3	14.2
Stockholders’ equity ratio	10.1	9.9	5.2	13.8	15.2	19.7
Interest-bearing debt ratio	53.5	52	55.9	46.4	46.5	37.2
D/E ratio (Times)	5.3	5.3	10.8	3.4	3.1	1.9
ROIC (Note 6)	1.6	1.9	1.3	2.3	2.6	6.5
Investment in Plant and Equipment, and Others:
Capital expenditures	¥14,763	¥12,606	¥14,305	¥15,549	¥14,406	¥10,562
Depreciation and amortization	14,170	14,201	12,916	11,902	12,118	10,112
Number of employees	13,840	13,748	12,411	12,457	11,777	11,282
Notes: 1. The U.S. dollar amounts have been translated, for convenience only, at ¥98=$1, the prevailing exchange rate on the Tokyo Foreign Exchange Market as of March 31, 2009. 2. EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) = Operating income + Depreciation and amortization 3. Free cash flows = Cash flows from operating activities + Cash flows from investing activities 4. Net assets are presented following enforcement of the new Japanese Corporate Law in 2006. Net assets comprise stockholders' equity as previously defined, plus minority interests and share subscription rights. 5. Net income per share of common stock is based on the weighted average number of shares outstanding in each year.
6. ROIC (Return on Invested Capital) =	(Operating income + Interest and dividend received) x 55% (= 1 - Effective tax rate)
6. ROIC (Return on Invested Capital) =	(Average of stockholders' equity + Average of interest-bearing debt)

Sumitomo Heavy Industries, Ltd. and Consolidated Subsidiaries

FY2004~FY2008

FY1998~FY2003