Hitachi Construction Machinery

A: Major factors in FY12 were a sales decline in the lucrative mining machinery sector and a demand shift to smaller types of machine in China. In FY13, the “Mixed Account” is expected to improve, because demand is likely to recover in China, including that for mid- to large-machines.

A: We do not plan to revise selling prices due to foreign exchange fluctuations. We point out our high operation rates, and the safety and reliability of our products to our customers, by providing total solutions. We believe that profitability in FY13 will be at the same level as that of the previous year, even allowing for the foreign exchange impact and changes in regional and product mixes.

A: A one yen fluctuation against the US dollar and Euro would impact our annual operating income by 2 billion yen and 300 million yen, respectively. Also, a 0.1 yen fluctuation against the Chinese yuan would impact our annual operating income by 300 million yen.

A: There are signs of recovery in some types of machines including small machines. Full-term demand for hydraulic excavators in FY13 is estimated to be 51,000 units, an increase from 42,000 units in the previous year, reflecting the forecast that demand is likely to exceed that of the previous year after the summer in 2013.